Rolling Hills City Council
July 28, 2025

On June 23, 2025, this item was brought before the City Council and tabled for the next meeting.

Discussion:

On April 30, 2025, staff re-released a public notice of bid for Tennis Court Improvement Project, Job No. 2025-03 Request for Bid. On May 27, 2025, the City received one (1) sealed bid at the 2 pm Bid Closing as follows:

Bidder Address Base Bid Amount
Fidelity Builders, Inc. 1824 Oakwood Ave.,
Glendale, CA 91208
$713,861.25
Staff validated the bid received (Attachment A) and determined that Fidelity Builders, Inc. is the lowest responsive and responsible bidder. Staff, in discussion with the RHCA, has removed Allowance Item No. 3 from the attached bid breakdown (Attachment B) since landscaping work will not be required as a part of this project. Staff’s recommendation is to award the construction contract to Fidelity Builders, Inc. for $713,861.25 (including 2.5% Performance & Payment Bond Costs) and allocate an additional $69,645 as a 10% contingency for a total of $783,506.25.

ENVIRONMENTAL REVIEW
The approval of the construction contract to Fidelity Builders, Inc. is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines section 15301 [Class 1]. Class 1 applies to the operation, repair, maintenance, permitting, leasing, licensing or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Here, the project proposes to demolish existing improvements within the project area, grading and site preparation, installation of retaining wall, ADA/site improvements, and install foundation, plumbing and electrical undergrounding for the proposed Cabana building. None of these proposed improvements on the tennis courts and proposed cabana will expand the existing use of this site. Further, none of the exceptions outlined in State CEQA Guidelines section 15300.2 apply. Thus, the project fits within the Class 1 exemption, and no further environmental review is required.

Fiscal Impact:

The total not-to-exceed fee for Fidelity Builder, Inc. is $783,506.25 and includes a 10% contingency.

The City Council currently has a balance of approximately $279,301 appropriated in the Capital Improvement Fund for this project.

In 2024, the City Council approved $103,950 for construction management services, which included a 10% contingency. To date, the City has spent $11,496.50 on pre-construction consultation, leaving a balance for Construction Management / Project Closeout of $92,453.50. Assuming these costs are fully used, the City would have $186,847.50 remaining to execute construction.

As noted in the report's background section, to assist with the fiscal impact and in accordance with the existing lease agreement obligations with the RHCA, their board has agreed to cost-share 50% of the associated project expenses. The RHCA has currently allocated $400,000 towards the ADA component and would review /consider additional funding if required. The RHCA has also agreed to cost-share 50% of the ongoing associated Construction Management costs. A 50% cost-share is $398,432 ($437,980 with contingencies). Staff have prepared a spreadsheet (Attachment D) to illustrate the projected costs and funding mechanisms.

The City Attorney has prepared a Cost Sharing Agreement (Attachment E) between the City and RHCA.

Staff will return with a Budget Amendment Resolution transferring $158,679 from the General Fund Reserves for costs above what is already budgeted or will be provided by the RHCA. The usable portion of the General Fund Reserves balance is approximately $878,000. A transfer to complete the Tennis Court ADA project will leave a balance of $719,321.

Note: The City has approximately $2.65 million in contingency reserves per the City's financial policies.

Recommendation:

Approve as presented.

Attachments:

1. Attachment A - CL_BID_250527_TC_ADA_FidelityBuilders

2. Attachment B - CL_BID_250623_2025-03_TC_ADA_Project_BidBreakdownForm_F_A

3. Attachment C - CA_AGR_250728_FidelityBuildersInc_TC-ADA_2025-03_D

4. Attachment D - CL_BID_250728_2025-03_TC_ADA_Project_Costs_v2

5. Attachment E - CA_AGR_250728_RHCA_TC-ADA_CostSharing_D1

DETAILED BID BREAKDOWN FORM
Owner: City of Rolling Hills
Project Type: ADA City Project
Contractor: ____________________________________
1 Mobilization / Demobilization: All preparation required to construct the scope of work. Including, but not limited to:

Traffic Control, Exterior Dust Control, Temporary Dust Fence & Protection of Non-Work Areas, Debris Removal, Daily Cleaning & Final Cleaning, Safety, Hoisting, Materials Handling, etc.

Fidelity Builders Inc 1 Lump sum N/A $63,840.00
2 Construction Administration: All administrative work required to construct the scope of work. Including, but not limited to:

Construction Permitting, QA/QC, Meetings, Project Management, Project Schedule, 3-Week Look Ahead Schedules, Substantial Completion, and Final Completion Meetings, Submittals, RFIs, etc.

Building Permit Filing and Coordination By Contractor - Complete Contractor Statement and pick up Permit (fees related to permitting to be reimbursed to Contractor by Owner with no markup to Contractor) Fidelity Builders Inc 1 Lump sum N/A $13,200.00
$77,040.00
DEMOLITION / CONSTRUCTION (SITE IMPROVEMENTS) *Quantities provided are estimated and for bidding purposes only 1 Demolition/Removals: all existing improvements, utilities, structures within the limits of work shown on plans GR2301100001 necessary to construct the improvements as shown on all plans associated with this project. City requires construction and demolition (C&D) permit for hauling and recycling from third parties and has recycling requirements. The City’s franchise waste hauler, Republic Services, will take care of the C&D if they are used.

UBD Inc. 1 Lump sum N/A $58,800.00
2 GRADING:

A) Rough grading needed per Grading plans.

B) Install site drainage and erosion controls.

C) Fine grading prior to putback commencement.

El Camino Aphalt Corp. 1 Lump sum N/A $28,800.00
3 RETAINING WALL:

A) Install RetainIng Wall per Retaining Wall plans - BL2308170004 Hulk Enterprises 1 Lump sum N/A $24,000.00 4 PAVING:

A) Install new pavement at new ADA Van accessible parking space per Architectural plans.

B) Asphalt & Concrete Mix Designs & Batch Testing - For each type of asphalt and concrete to be used on the project, provide proposed mix designs and produce test batches showing compliance with City of Rolling Hills specifications.

C) Paint cross wallks per Architectural plans.

El Camino Aphalt Corp. 1 Lump sum N/A $62,205.00
5 ADA/SITE IMPROVEMENTS:

A) Install new ADA Van Parking space per plans plans. Striping, signage and painted ISA on pavement included. Refer to detail #17 and 18 on sheet A-602 of the Architectural plans.

B) Install new wheel stop at new ADA Van parking space per detail #8 on sheet A-602 of the Architectural plans.

C) Install new truncated domes at all ramp landings per detail #15 on sheet A-602 of the Architectural plans.

D) Install new ramps and pathways, concrete curbs, retaining wall/retaining curbs, and pavers per plans specs.

E) Install new hand rails, nosing and warning strips per details #3, 5, 8 and 15 on sheet A-603 of the Architectural plans.

F) Retaining Wall: ADA ramp (From Parking Area)
G) Retaining Wall: ADA ramp (Tennis Court Viewing Area) H) Install ADA Lighting
I) Landscape: Irrigation line sleeves
El Camino Aphalt Corp. / Hulk
Enterprises 1 Lump sum N/A $210,320.00
$384,125.00
ITEM
NUMBER ITEM DESCRIPTION INDICATE "SELF-PERFORMED"

OR NAME SUBCONTRACTOR QUANTITY UNIT OF

MEASURE UNIT COST
TOTAL: GRADING
www.bergemangroup.com

GENERAL CONDITIONS
INDICATE "SELF-PERFORMED"

OR NAME SUBCONTRACTOR ITEM DESCRIPTION ITEM NUMBER QUANTITY UNIT COST TOTAL COST UNIT OF MEASURE TOTAL: GENERAL CONDITIONS

TOTAL COST

DETAILED BID BREAKDOWN FORM
Owner: City of Rolling Hills
Project Type: ADA City Project
Contractor: ____________________________________ www.bergemangroup.com INDICATE "SELF-PERFORMED"

OR NAME SUBCONTRACTOR ITEM DESCRIPTION ITEM NUMBER QUANTITY UNIT COST TOTAL COST UNIT OF MEASURE CABANA (FOUNDATION & SUBSURFACE ONLY) *Quantities provided are estimated and for bidding purposes only 1 FOUNDATION:

A) Install all foundation plan components per plan specs.

B) Strip all forms and cleanup once concrete has cured.

C) Install all structural framing hardware that is embedded into the foundation for the Cabana and adjacent trellis per approved structural plans.

Hulk Enterprises 1 Lump sum N/A $103,195.00
2 ROUGH PLUMBING:

A) Installation of all rough plumbing/new utility stubs per specs on plans. SoCal Sewer & Water 1 Lump sum N/A $91,600.00 3 ROUGH ELECTRICAL:

A) Installation of all rough electrical per specs on plans.

B) Providing Title 24 specs on all materials used (As necessary) Integral Electrical Engineering 1 Lump sum N/A $34,490.00 $229,285.00
$690,450.00

2.50%
$17,261.25
Contingency 10% $69,045.00
$776,756.25
120 days
1 Subgrade compaction testing El Camino Aphalt Corp. 1 EA $0.00 $2,400.00 2 Special Inspections as required by City of Rolling Hills. Fidelity Builders Inc 1 EA $0.00 $3,600.00 3 Existing Landscape repairs and replacements. Bennett Landscape 1 Lump sum N/A $0.00 $6,000.00

2.50%
$150.00
Contingency 10% $600.00
$6,750.00
$783,506.25

UNIT COST TOTAL COST ITEM
NUMBER ITEM DESCRIPTION INDICATE "SELF-PERFORMED" OR NAME SUBCONTRACTOR QUANTITY UNIT OF MEASURE

TOTAL PROJECT CONSTRUCTION COSTS
TOTAL: STRUCTURAL
ITEM DESCRIPTION INDICATE "SELF-PERFORMED"

OR NAME SUBCONTRACTOR QUANTITY UNIT OF

MEASURE UNIT COST TOTAL COST

GRAND TOTAL

GRAND TOTAL PROJECT CONSTRUCTION COSTS W/ ALTERNATES, ALLOWANCES AND PERFORMANCE & PAYMENT BONDS WITH CONTINGENCY

ALLOWANCES

PROJECT TOTALS

TOTAL PROJECT CONSTRUCTION COSTS
Performance & Payment Bond Percentage (%)
Performance & Payment Bond Cost ($$)

TOTAL PROJECT CONSTRUCTION COSTS W/ PERFORMANCE & PAYMENT BONDS WITH CONTINGENCY ALLOWANCES Performance & Payment Bond Percentage (%)
Performance & Payment Bond Cost ($$) OF ALLOWANCES

TOTAL ALLOWANCES COSTS W/ PERFORMANCE & PAYMENT BONDS AND CONTINGENCY

TOTAL WORKING DAYS TO COMPLETE PROJECT
ITEM
NUMBER

CONTRACT AGREEMENT
This Construction Agreement (“Agreement”) is made and entered into as of the date executed by the Mayor and attested to by the City Clerk, by and between Fidelity Builders, Inc. (hereinafter referred to as "CONTRACTOR") and the City of Rolling Hills, California, a municipal corporation (hereinafter referred to as "CITY").

R E C I T A L S
A. Pursuant to the Notice Inviting Sealed Bids for Tennis Court ADA Improvement Project No. 2025-03 (Project”), bids were received, publicly opened, and declared on the date specified in the notice; and
B. On July 28, 2025, City’s City Council declared CONTRACTOR to be the lowest responsible bidder and accepted the bid of CONTRACTOR; and C. The City Council has authorized the Mayor to execute a written contract with CONTRACTOR for furnishing labor, equipment and material for the No. 2025-03, Tennis Court ADA Improvement Project in the City of Rolling Hills.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, it is agreed:

1. GENERAL SCOPE OF WORK: CITY agrees to engage CONTRACTOR and CONTRACTOR agrees to furnish all necessary labor, tools, materials, for the Project in the City of Rolling Hills. The work shall be performed in accordance with the Plans and Specifications dated April 30, 2025 (the “Specifications”) on file in the office of the City Clerk and in accordance with bid prices set forth in CONTRACTOR’S Bid Proposal and in accordance with the instructions of the City.

2. INCORPORATED DOCUMENTS TO BE CONSIDERED COMPLEMENTARY:

The contract documents for the aforesaid project shall consist of all the documents and exhibits in the Request for Bid and all referenced specifications, details, standard drawings, and appendices; together with this Agreement and all required bonds, insurance certificates, permits, notices and affidavits; and also, including any and all addenda or supplemental agreements clarifying, amending, or extending the work contemplated as may be required to insure its completion in an acceptable manner. All of the provisions of said contract documents are made a part hereof as though fully set forth herein. This contract is intended to require a complete and finished piece of work and anything necessary to complete the work properly and in accordance with the law and lawful governmental regulations shall be performed by CONTRACTOR whether set out specifically in the contract or not.

Should it be ascertained that any inconsistency exists between the aforesaid documents and this written agreement, the provisions of this Agreement shall govern. Collectively, these contract documents constitute the complete agreement

between CITY and CONTRACTOR and supersede any previous agreements or understandings.

3. COMPENSATION: CONTRACTOR agrees to receive and accept the prices set forth in its Bid Proposal of seven hundred eighty-three thousand, five hundred and six dollars and twenty-five cents ($783,506.25) as full compensation (inclusive of a 10% contingency fee) for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contract documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.

4. TIME OF PERFORMANCE: CONTRACTOR agrees to complete the work within 120 working days from the date of the notice to proceed. By signing this Agreement, CONTRACTOR represents to CITY that the contract time is reasonable for completion of the work and that CONTRACTOR will complete such work within the contract time.

5. LIQUIDATED DAMAGES: In accordance with Government Code section 53069.85, it is agreed that CONTRACTOR will pay to CITY the sum of be $1000/day for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, CONTRACTOR agrees CITY may deduct that amount from any money due or that may become due CONTRACTOR under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.

6. SUBSTITUTION OF SECURITIES: Pursuant to section 22300 of the Public Contract Code of the State of California, CONTRACTOR may request CITY to make retention payments directly to an escrow agent or may substitute securities for any money withheld by CITY to ensure performance under the contract. At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with CITY or with a state or federally chartered bank as the escrow agent who shall return such securities to CONTRACTOR upon satisfactory completion of the contract. Deposit of securities with an escrow agent shall be subject to a written agreement substantially in the form provided in section 22300 of the Public Contract Code.

7. PREVAILING WAGES AND CALIFORNIA LABOR LAWS.

Pursuant to Labor Code §§ 1720 et seq., and as specified in 8 California Code of Regulations § 16000 (“Prevailing Wage Laws”), CONTRACTOR must pay its

workers prevailing wages. It is CONTRACTOR’s responsibility to interpret and implement any prevailing wage requirements, and CONTRACTOR agrees to pay any penalty or civil damages resulting from a violation of the prevailing wage laws.

CONTRACTOR shall defend, indemnify and hold the CITY, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

CONTRACTOR and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.

In accordance with Labor Code § 1773.2, copies of the prevailing rate of per diem wages are available upon request from CITY’s Engineering Division or the website for State of California Prevailing wage determination at http://www.dir.ca.gov/DLSR/PWD. CONTRACTOR must post a copy of the prevailing rate of per diem wages at the job site.

CITY directs CONTRACTOR’s attention to Labor Code §§ 1777.5, 1777.6 and 3098 concerning the employment of apprentices by CONTRACTOR or any subcontractor.

Labor Code § 1777.5 requires CONTRACTOR or subcontractor employing tradesmen in any apprenticeship occupation to apply to the joint apprenticeship committee nearest the site of the public works project and which administers the apprenticeship program in that trade for a certificate of approval. The certificate must also fix the ratio of apprentices to journeymen that will be used in the performance of the contract. The ratio of apprentices to journeymen in such cases will not be less than one to five except:

When employment in the area of coverage by the joint apprenticeship committee has exceeded an average of 15 percent in the 90 days before the request for certificate, or
When the number of apprentices in training in the area exceeds a ratio of one to five, or
When the trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis state-wide or locally, or Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.

When CONTRACTOR provides evidence that CONTRACTOR employs registered apprentices on all of his contracts on an annual average of not less than one apprentice to eight journeymen.

CONTRACTOR is required to make contributions to funds established for the administration of apprenticeship programs if CONTRACTOR employs registered apprentices or journeymen in any apprenticeable trade on such contracts and if other contractors on the public works site are making such contributions.

CONTRACTOR and any subcontractor must comply with Labor Code §§ 1777.5 and 1777.6 in the employment of apprentices.

Information relative to apprenticeship standards, wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex-officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.

The CONTRACTOR or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.

CONTRACTOR and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of CONTRACTOR in the manner provided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, CONTRACTOR shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such CONTRACTOR must comply with this section.

Should noncompliance still be evident after such 10-day period, CONTRACTOR shall, as a penalty to CITY, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on CONTRACTOR.

The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.

By executing this Contract, CONTRACTOR verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subcontractors and sub-subcontractors to comply with the same.

8. LEGAL HOURS OF WORK: Eight (8) hours of labor shall constitute a legal day's work for all workmen employed in the execution of this contract, and CONTRACTOR and any subcontractor under it shall comply with and be governed by the laws of the State of California having to do with working hours set forth in Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California as amended.

CONTRACTOR shall forfeit, as a penalty to City, twenty-five dollars ($25.00) for each laborer, workman or mechanic employed in the execution of the contract, by him or any subcontractor under it, upon any of the work hereinbefore mentioned, for each calendar day during which the laborer, worker or mechanic is required or permitted to labor more than eight (8) hours in any one calendar day or 40 hours in any one calendar week in violation of the Labor Code.

9. PUBLIC WORKS CONTRACTOR REGISTRATION: Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations (DIR). No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the DIR to perform public work.

Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

10. LABOR COMPLIANCE AND STOP ORDERS: This Project is subject to compliance monitoring and enforcement by the DIR. It shall be CONTRACTOR’s sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the DIR against CONTRACTOR or any subcontractor that affect CONTRACTOR’s performance of Work, including any delay, shall be CONTRACTOR’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered CONTRACTOR caused delay subject to any applicable liquidated damages and shall not be compensable by the CITY.

CONTRACTOR shall defend, indemnify and hold CITY, its officials, officers,

employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against CONTRACTOR or any subcontractor.

11. DEBARMENT OF CONTRACTORS AND SUBCONTRACTORS: Contractors or subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform work on a public project pursuant to Labor Code section 1777.1 or 1777.7. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract. Any public money that is paid, or may have been paid to a debarred subcontractor by a contractor on the Project shall be returned to the CITY. CONTRACTOR shall be responsible for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the project.

12. LABOR/EMPLOYMENT SAFETY: CONTRACTOR shall comply with all applicable laws and regulations of the federal, state, and local government, including Cal/OSHA requirements and requirements for verification of employees’ legal right to work in the United States
CONTRACTOR shall maintain emergency first aid treatment for its employees which complies with the Federal Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.), and California Code of Regulations, Title 8, Industrial Relations Division 1, Department of Industrial Relations, Chapter 4.

CONTRACTOR shall ensure the availability of emergency medical services for its employees in accordance with California Code of Regulations, Title 8, Section 1512.

CONTRACTOR shall submit the Illness and Injury Prevention Program and a Project site specific safety program to CITY prior to beginning Work at the Project site. CONTRACTOR shall maintain a confined space program that meets or exceeds the CITY Standards. CONTRACTOR shall adhere to CITY’s lock out tag out program

13. TRAVEL AND SUBSISTENCE PAY: CONTRACTOR agrees to pay travel and subsistence pay to each worker needed to execute the work required by this Agreement as such travel and subsistence payments are defined in the applicable collective bargaining agreements filed in accordance with Labor Code Section 1773.8.

14. CONTRACTOR'S LIABILITY: The City of Rolling Hills and its officers, agents and employees ("Indemnitees") shall not be answerable or accountable in any manner for any loss or damage that may happen to the work or any part thereof, or for any of the materials or other things used or employed in performing the work; or for injury or damage to any person or persons, either workers or employees of CONTRACTOR, of its subcontractors or the public, or for damage to adjoining or

other property from any cause whatsoever arising out of or in connection with the performance of the work. CONTRACTOR shall be responsible for any damage or injury to any person or property resulting from defects or obstructions or from any cause whatsoever.

To the fullest extent permitted by law, CONTRACTOR will indemnify Indemnities against and will hold and save Indemnitees harmless from any and all actions, claims, damages to persons or property, penalties, obligations or liabilities that may be asserted or claimed by any person, firm, entity, corporation, political subdivision, or other organization arising out of or in connection with the work, operation, or activities of CONTRACTOR, its agents, employees, subcontractors or invitees provided for herein, whether or not there is concurrent passive negligence on the part of City. In connection therewith:
a. CONTRACTOR will defend any action or actions filed in connection with any such claims, damages, penalties, obligations or liabilities and will pay all costs and expenses, including attorneys' fees, expert fees and costs incurred in connection therewith. b. CONTRACTOR will promptly pay any judgment rendered against CONTRACTOR or Indemnitees covering such claims, damages, penalties, obligations and liabilities arising out of or in connection with such work, operations or activities of CONTRACTOR
hereunder, and CONTRACTOR agrees to save and hold the
Indemnitees harmless therefrom.
c. In the event Indemnitees are made a party to any action or proceeding filed or prosecuted against CONTRACTOR for damages or other claims arising out of or in connection with the work, operation or activities hereunder, CONTRACTOR agrees to pay to
Indemnitees and any all costs and expenses incurred by
Indemnitees in such action or proceeding together with reasonable attorneys' fees.

Contractor's obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of City under any provision of this agreement, to the extent required by Civil Code section 2782, Contractor shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City.

So much of the money due to CONTRACTOR under and by virtue of the contract as shall be considered necessary by City may be retained by City until disposition has been made of such actions or claims for damages as aforesaid.

It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California. This indemnity provision shall survive the termination of the Agreement and is in addition to any other rights or remedies which Indemnitees may have under the law.

This indemnity is effective without reference to the existence or applicability of any insurance coverage which may have been required under this Agreement or any additional insured endorsements which may extend to Indemnitees.

CONTRACTOR, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the CONTRACTOR regardless of any prior, concurrent, or subsequent passive negligence by the Indemnitees.

15. THIRD PARTY CLAIMS. In accordance with Public Contract Code § 9201, CITY will promptly inform CONTRACTOR regarding third-party claims against CONTRACTOR, but in no event later than ten (10) business days after CITY receives such claims. Such notification will be in writing and forwarded in accordance with the “Notice” section of this Agreement. As more specifically detailed in the contract documents, CONTRACTOR agrees to indemnify and defend the City against any third-party claim.

16. WORKERS COMPENSATION: In accordance with California Labor Code Sections 1860 and 3700, CONTRACTOR and each of its subcontractors will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, CONTRACTOR, by signing this contract, certifies as follows: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

17. INSURANCE: CONTRACTOR shall procure and maintain for the duration of the Agreement, and for 1 year thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the CONTRACTOR, its agents, representatives, employees, or subcontractors.

a. Minimum Scope and Limit of Insurance. Coverage shall be at least as broad as:
i. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
ii. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.
iii. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. iv. Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.
v. Professional Liability (if Design/Build), with limits no less than $2,000,000 per occurrence or claim, and $2,000,000 policy aggregate. vi. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
vii. If the contractor maintains broader coverage and/or higher limits than the minimums shown above, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by CONTRACTOR.

Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. b. Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, either: the CONTRACTOR shall obtain coverage to reduce or eliminate such self-insured retentions as respects the CITY, its officers, officials, employees, and volunteers; or the CONTRACTOR shall provide a financial guarantee satisfactory to the CITY guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or CITY.

c. Other Insurance Provisions. The insurance policies are to contain, or be endorsed to contain, the following provisions:
i. The CITY, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONTRACTOR including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by or on behalf of the CONTRACTOR. General liability coverage can be provided in the form of an endorsement to the CONTRACTOR’s insurance (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
ii. For any claims related to this project, the CONTRACTOR’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the CITY, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, or volunteers shall be excess of the CONTRACTOR’s insurance and shall not contribute with it. iii. Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the CITY.
d. Builder’s Risk (Course of Construction) Insurance.
i. CONTRACTOR may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the CITY as a loss payee as their interest may appear.
ii. If the Project does not involve new or major reconstruction, at the option of the CITY, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery, and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the CITY’s site.
e. Claims Made Policies. If any coverage required is written on a claims-made coverage form:
i. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work. ii. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract work.

iii. If coverage is cancelled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective, or start of work date, the CONTRACTOR must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.
iv. A copy of the claims reporting requirements must be submitted to the CITY for review.
v. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.
f. Acceptability of Insurers. Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best rating of no less than A: VII, unless otherwise acceptable to the CITY.
g. Waiver of Subrogation. CONTRACTOR hereby agrees to waive rights of subrogation which any insurer of CONTRACTOR may acquire from CONTRACTOR by virtue of the payment of any loss. CONTRACTOR agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its employees, agents and subcontractors.
h. Verification of Coverage. CONTRACTOR shall furnish the CITY with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to CITY before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the CONTRACTOR’s obligation to provide them. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time. i. Subcontractors. CONTRACTOR shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and CONTRACTOR shall ensure that CITY is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13. j. Special Risks or Circumstances. CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances.

18. ASSIGNMENT: This contract is not assignable nor the performance of either party's duties delegable without the prior written consent of the other party. Any attempted or purported assignment or delegation of any of the rights of obligations of either party without the prior written consent of the other shall be void and of no force and effect.

19. INDEPENDENT CONTRACTOR: CONTRACTOR is and shall at all times remain as to the CITY, a wholly independent contractor. Neither the CITY nor any of its agents shall have control of the conduct of CONTRACTOR or any of CONTRACTOR'S employees, except as herein set forth. CONTRACTOR shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of CITY.

20. TAXES: CONTRACTOR is responsible for paying all retail sales and use, transportation, export, import, special or other taxes and duties applicable to, and assessable against any work, materials, equipment, services, processes and operations incidental to or involved in this contract. CONTRACTOR is responsible for ascertaining and arranging to pay them. The prices established in the contract shall include compensation for any taxes CONTRACTOR is required to pay by laws and regulations in effect at the bid opening date.

21. LICENSES: CONTRACTOR represents and warrants to CITY that it has all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required of CONTRACTOR to practice its profession.

CONTRACTOR represents and warrants to CITY that CONTRACTOR shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, insurance, and approvals which are legally required of CONTRACTOR to practice its profession.

Contractors are required by law to be licensed and regulated by the Contractors’ State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within five (5) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California 95826.

22. RECORDS: CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Agreement and such other records as may be deemed necessary by CITY or any authorized representative, and will be retained for four years after the expiration of this Agreement. All such records shall be made available for inspection or audit by CITY at any time during regular business hours.

23. SEVERABILITY: If any portion of these contract documents are declared by a court of competent jurisdiction to be invalid or unenforceable, then such portion will

be deemed modified to the extent necessary in the opinion of the court to render such portion enforceable and, as so modified, such portion and the balance of this Agreement will continue in full force and effect.

24. WHOLE AGREEMENT: This Agreement supersedes any and all other agreements either oral or written, between the parties and contains all of the covenants and agreements between the parties pertaining to the work of improvements described herein. Each party to this contract acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statements or promise not contained in this contract shall not be valid or binding. Any modifications of this contract will be effective only if signed by the party to be charged.

25. AUTHORITY: CONTRACTOR affirms that the signatures, titles, and seals set forth hereinafter in execution of this Agreement represent all individuals, firm members, partners, joint ventures, and/or corporate officers having a principal interest herein. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. This Agreement may be modified by written amendment. CITY’s city manager may execute any such amendment on CITY’s behalf.

26. NOTICES: All notices permitted or required under this Agreement shall be in writing, and shall be deemed made when delivered to the applicable party’s representative as provided in this Agreement. Additionally, such notices may be given to the respective parties at the following addresses, or at such other addresses as the parties may provide in writing for this purpose. Such notices shall be deemed made when personally delivered or when mailed forty-eight (48) hours after deposit in the U.S. mail, first-class postage prepaid, and addressed to the party at its applicable address.

CITY OF ROLLING HILLS
2 Portuguese Bend Rd.

Rolling Hills, CA 90274
Attention: Christian Horvath, Project Manager
CONTRACTOR:

Fidelity Builders, Inc.
1824 Oakwood Ave.

Glendale, CA 91208
Attention: Narek Halablian

27. DISPUTES: Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, nonbinding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.

Claims: For purposes of this Section, “Claim” means a separate demand by CONTRACTOR, after a change order duly requested in accordance with the terms of this Contract has been denied by the CITY, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of CONTRACTOR pursuant to the Contract, or (C) an amount the payment of which is disputed by the CITY. A “Claim” does not include any demand for payment for which CONTRACTOR has failed to provide notice, request a change order, or otherwise failed to follow any procedures contained in the Contract Documents. Claims governed by this Section may not be filed unless and until CONTRACTOR completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and CONTRACTOR’s request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than fourteen (14) days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim.

The Claim shall be submitted in writing to the CITY and shall include on its first page the following in 16 point capital font: “THIS IS A CLAIM.” Furthermore, the claim shall include the documents necessary to substantiate the claim. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to compensation or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.

Supporting Documentation: The CONTRACTOR shall submit all claims in the following format:

Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made
List of documents relating to claim:

Specifications
Drawings
Clarifications (Requests for Information)
Schedules
Other

Chronology of events and correspondence
Analysis of claim merit
Analysis of claim cost
Time impact analysis in CPM format
If CONTRACTOR’s claim is based in whole or in part on an allegation of errors or omissions in the Drawings or Specifications for the Project, CONTRACTOR shall provide a summary of the percentage of the claim subject to design errors or omissions and shall obtain a certificate of merit in support of the claim of design errors and omissions.

Cover letter and certification of validity of the claim, including any claims from subcontractors of any tier, in accordance with Government Code section 12650 et seq.

City’s Response. Upon receipt of a claim pursuant to this Section, CITY shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide CONTRACTOR a written statement identifying what portion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 days after the public entity issues its written statement.

If CITY needs approval from its governing body to provide the CONTRACTOR a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, CITY shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45- day period, or extension, expires to provide CONTRACTOR a written statement identifying the disputed portion and the undisputed portion.

Within 30 days of receipt of a claim, CITY may request in writing additional documentation supporting the claim or relating to defenses or claims CITY may have against the CONTRACTOR. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of CITY and the CONTRACTOR.

CITY’s written response to the claim, as further documented, shall be submitted to CONTRACTOR within 30 days (if the claim is less than $50,000, within 15 days) after receipt of the further documentation, or within a period of time no greater than that taken by CONTRACTOR in producing the additional information or requested documentation, whichever is greater.

Meet and Confer. If the CONTRACTOR disputes CITY’s written response, or CITY fails to respond within the time prescribed, the CONTRACTOR may so notify CITY, in writing, either within 15 days of receipt of CITY’s response or within 15 days of CITY’s failure to

respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, CITY shall schedule a meet and confer conference within 30 days for settlement of the dispute.

Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, CITY shall provide the CONTRACTOR a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after CITY issues its written statement. Any disputed portion of the claim, as identified by CONTRACTOR in writing, shall be submitted to nonbinding mediation, with CITY and CONTRACTOR sharing the associated costs equally. CITY and CONTRACTOR shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing unless the parties agree to select a mediator at a later time.

If the Parties cannot agree upon a mediator, each Party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.

For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the Parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

Unless otherwise agreed to by CITY and CONTRACTOR in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.

The mediation shall be held no earlier than the date CONTRACTOR completes the Work or the date that CONTRACTOR last performs Work, whichever is earlier.

All unresolved claims shall be considered jointly in a single mediation unless a new unrelated claim arises after mediation is completed.

Procedures After Mediation. If following the mediation, the claim or any portion remains in dispute, CONTRACTOR must file a claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time CONTRACTOR submits his or her written claim pursuant to subdivision (a) until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation.

Civil Actions. The following procedures are established for all civil actions filed to resolve claims subject to this Section:

Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of these procedures. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.

If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.

In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party.

Government Code Claims. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, CONTRACTOR must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the CITY. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by CONTRACTOR. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, CONTRACTOR shall be barred from bringing and maintaining a valid lawsuit against the CITY. A Government Code claim must be filed no earlier than the date the work is completed or the date CONTRACTOR last performs work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted.

Non-Waiver. CITY’s failure to respond to a claim from CONTRACTOR within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the claim being deemed rejected in its entirety. CITY’s failure to respond shall not waive CITY’s rights to any subsequent procedures for the resolution of disputed claims.

28. NON-DISCRIMINATION: Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such nondiscrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. A violation of this section exposes CONTRACTOR to the penalties provided for in Labor Code Section 1735.

29. TERMINATION: This Contract may be terminated by CITY at any time, either with or without cause, by giving CONTRACTOR three (3) days advance written notice.

In the event of termination by CITY for any reason other than the fault of CONTRACTOR, CITY shall pay CONTRACTOR for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, CITY may terminate the Contract immediately without notice, may reduce payment to CONTRACTOR in the amount necessary to offset CITY’s resulting damages, and may pursue any other available recourse against CONTRACTOR.

CONTRACTOR may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, CITY may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Further, if this Contract is terminated as provided, CITY may require CONTRACTOR to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by CONTRACTOR in connection with its performance of this Contract.

30. ANTI-TRUST CLAIMS: This provision shall be operative if this Contract Agreement is applicable to California Public Contract Code Section 7103.5. In entering into this Contract Agreement to supply goods, services or materials, Contractor hereby offers and agrees to assign to the Agency all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract Agreement. This assignment shall be made and become effective at the time the Agency tender final payment to Contractor, without further acknowledgment by the Parties.

31. NO THIRD-PARTY BENEFICIARY: This Contract and every provision herein is for the exclusive benefit of the Contractor and the City and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of the Contractor’s or the City’s obligations under this Contract.

32. TIME IS OF ESSENCE: Time is of the essence for each and every provision of the Contract Documents.

33. FORCE MAJEURE: If CONTRACTOR is delayed in the performance or progress of the work by a Force Majeure Event, then the CONTRACTOR shall be entitled

to a time extension, as provided in the contract documents, when the work stopped is on the critical path and shall not be charged liquidated damages. Such a noncompensable adjustment shall be CONTRACTOR’s sole and exclusive remedy for such delays and the CONTRACTOR will not receive an adjustment to the contract price or any other compensation. Contractor must submit a timely request in accordance with the requirements of the contract documents. A Force Majeure Event shall mean an event that materially affects a party’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the work); (4) pandemics, epidemics or quarantine restrictions; and (5) strikes and other organized labor action occurring at the project site and the effects thereof on the work, only to the extent such strikes and other organized labor action are beyond the control of CONTRACTOR and its subcontractors, of every tier, and to the extent the effects thereof cannot be avoided by use of replacement workers. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority.

34. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE: Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.

35. ACCEPTANCE OF FACSIMILE SIGNATURES: The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature.

36. GOVERNING LAW: This Agreement shall be governed by the laws of the State of California, and exclusive venue for any action involving this Contract will be in Los Angeles County.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement with all the formalities required by law on the respective dates set forth opposite their signatures.

State of California
CONTRACTOR'S License No. __

CONTRACTOR

___________ By:____________________________________________ Date TITLE

CITY OF ROLLING HILLS, CALIFORNIA
By: _____________________________________________
Date JEFF PIEPER, MAYOR
ATTEST:

By: ____________________________________________
Date CHRISTIAN HORVATH, CITY CLERK
CONTRACTOR'S Business Phone 818-679-8059
Emergency Phone at which CONTRACTOR can be reached at any time:
( )
APPROVED AS TO FORM:
_______________________________________________________________

NICOLAS PAPAJOHN, CITY ATTORNEY

Date

AGREEMENT OF INDEMNIFICATION

AND HOLD HARMLESS AND WAIVER OF SUBROGATION AND CONTRIBUTION

TENNIS COURT ADA IMPROVEMENT PROJECT
PROJECT NO. 2025-03
Contract/Agreement/License/Permit No. or description:

Indemnitor(s) (list all names):

To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, to defend, protect, indemnify, and hold harmless the City of Rolling Hills and its respective elected officials, officers, attorneys, agents, employees, volunteers, successors, and assigns (collectively “Indemnitees”) from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively “Liabilities”), arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or omission of Indemnitor or any of its officers, agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to the above-referenced contract, agreement, license, or permit (the “Agreement”) or the performance or failure to perform any term, provision, covenant, or condition of the Agreement, including this indemnity provision. This indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence. This indemnity provision shall survive the termination of the Agreement and is in addition to any other rights or remedies which Indemnitees may have under the law.

Payment is not required as a condition precedent to an Indemnitee’s right to recover under this indemnity provision, and an entry of judgment against an Indemnitee shall be conclusive in favor of the Indemnitee’s right to recover under this indemnity provision.

Indemnitor shall pay Indemnitees for any attorney fees and costs incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to encompass (a) Indemnitees’ sole negligence or willful misconduct to the limited extent that the underlying Agreement is subject to Civil Code 2782(a), or (b) the contracting public agency’s active negligence to the limited extent that the underlying Agreement is subject to Civil Code 2782(b). This indemnity is effective without reference to the existence or applicability of any insurance coverages which may have been required under the Agreement or any additional insured endorsements which may extend to Indemnitees.

Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to

activities or operations performed by or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees.

Accountants, attorneys, or other professionals employed by Indemnitor to defend Indemnitees shall be selected by Indemnitees.

In the event there is more than one person or entity named in the Agreement as an Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument shall be joint and several.
“Indemnitor”
Name Name
By: By:

TC-ADA Project Funding (rounded)
All Costs 10%
Contingency
ConstructionTotal
including contingencies
Pre-Con Amount*
Paid by City to date
Construction Balance
including contingencies
Fidelity Builders $713,861 $69,645 $783,506 $0 $783,506 Bergeman Group $94,500 $9,450 $103,950 $11,497 $92,454
Richie-Bray $7,000 $7,000
Alan Palermo $9,203 $9,203
Totals $824,564 $79,095 $887,456 $27,699 $875,960
50% Construction
Cost-share
without contingencies
50% Construction
Cost-share
including contingencies
RHCA $398,432 $437,980
50% Construction
Cost-share
including contingencies
Current CIP
Allocation
(2023)
Pre-Con
Expended to date*
Remaining CIP
Project Funds
Shortfall
Requiring General Fund
Reserve contribution
City $437,980 $307,000 $27,699 $279,301 $158,679
* Note: remaining CIP amount is inclusive of Bergeman pre-con costs to date, Richie-Bray pre-con costs of $7,000 and Alan Palermo pre-con costs of $9,202.50 through recent Bid process

CITY OF ROLLING HILLS

COST SHARING AGREEMENT
This Cost Sharing Agreement (“Agreement”) is made and executed as of this 28th day of July, 2025, by and between the City of Rolling Hills (“City”), a municipal corporation, and Rolling Hills Community Association of Rancho Palos Verdes (“RHCA”), a California non-profit corporation. City and RHCA are sometimes referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS
WHEREAS, City’s tennis courts, located at Portuguese Bend Road and Palos Verdes Drive North (“Tennis Courts”), are operated and managed by RHCA pursuant to a Lease Agreement between City and RHCA, dated May 14, 2018 (“Lease”); and WHEREAS, repairs need to be made to the Tennis Courts, including demolition of certain existing improvements, grading and site plan preparation, installation of a retaining wall, ADA/site improvements, and installing foundation, plumbing and electrical for future use (“Project”); and
WHEREAS, after public notice, City received a bid for the Project from Fidelity Builders, Inc. to perform the Project work for a base bid amount of $713,861.25; and WHEREAS, on July 28, 2025, the City Council awarded the construction contract to Fidelity Builders, Inc. as the lowest responsive and responsible bidder; and WHEREAS, the RHCA board has agreed to contribute 50% of the Project cost, consistent with prior board action and the terms of Section 9(a)(vi) of the Lease; and WHEREAS, the Parties desire to memorialize their understanding of the cost sharing arrangement for completion of the Project.

NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, the Parties hereto agree as follows:

AGREEMENT

1. Incorporation of Recitals
The above recitals are true and correct and are incorporated herein.

2. Scope of Work
The Scope of Work for the Project is provided for in more detail in the Contractor’s Agreement, attached hereto as Exhibit “A” and incorporated herein by reference.

3. Project Costs
The Total Project Costs shall be shared equally by the Parties, consistent with Section 9(a)(vi) of the Rolling Hills Lease Agreement, dated May 14, 2018. As a result, fifty percent (50%) of costs for the Project are to be paid for by City and fifty percent (50%) of costs are to be paid for by RHCA. The current total cost for the Project is estimated to be Seven Hundred Thirteen Thousand, Eight Hundred Sixty-One Dollars and TwentyFive Cents ($713,861.25.) plus an additional Eighty-Three Thousand and Three Dollars ($83,003.00) for the Bergeman Group’s Construction Management Services. a) Proportional Share
Based on the total estimated project costs and the parties' understanding of costsharing, City shall be responsible for approximately Three Hundred Ninety-Eight Thousand Four Hundred Thirty-Two Dollars ($398,432) of the Project costs, while RHCA shall be responsible for approximately Three Hundred Ninety-Eight Thousand Four Hundred Thirty-Two Dollars ($398,432).
b) RHCA Payment of Costs
RHCA shall pay City Three Hundred Ninety-Eight Thousand Four Hundred ThirtyTwo Dollars ($398,432) within ten (10) days of written demand from City. In the event that the actual costs of the Project exceed the anticipated costs set forth above, RHCA shall be responsible for payment of 50% of the increased actual costs. Payment for the increased costs shall be made within ten (10) days of written demand from City supported by an invoice or change order identifying the increased costs. Payment collected from RHCA and not expended during the term of the Agreement shall be refunded to RHCA.

4. Term and Termination.

This Agreement shall become effective as of the day and year first above written and shall remain operative and effective until the Project has been completed, accepted, and paid for. This Agreement may be terminated at any time upon mutual consent of the Parties. This Agreement may also be terminated by either Party after 30- day written notice by certified mail, deemed complete on the third business day following deposit with the United States Postal Service:

If to City:

Rolling Hills City Hall
2 Portuguese Bend Road
Rolling Hills, CA 90274

Attn: Karina Ban͂ales, City Manager
If to RCHA:

Rolling Hills Community Association
1 Portuguese Bend Road
Rolling Hills, CA 90274
Attn: Kristen Raig

5. Agreement to Cooperate.

The Parties agree to mutually cooperate in order to help ensure that the Project is successfully completed.

6. General Provisions
(a) Representations and Warranties. The Parties and signatories each represent and warrant that the individuals signing below are duly authorized to bind their respective principals to the terms of this Agreement. The individuals signing below also represent and warrant that they have obtained all necessary approvals and have the authority to bind their respective principals to the terms of this Agreement. In the event that any of the representations and/or warranties herein are breached or any of the representations and/or warranties contained in this subparagraph prove false, the breaching/misrepresenting Party hereby agrees to defend, indemnify, and hold the other Party harmless from all damages, loss, liability, costs, and attorneys’ fees resulting from said breach/misrepresentation.
(b) Assignment. This Agreement may not be assigned by any Party, either in whole or in part, without prior written consent of the other Parties. (c) Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
(d) Binding Effect of Agreement. The terms, conditions, and provisions of this Agreement are binding upon, and shall inure to the benefit of, all Parties and to their executors, administrators, heirs, successors, assigns, predecessors, transferees, representatives, principals, agents, officers, directors, and employees. (e) Further Acts. The Parties shall perform any acts and execute any documents consistent with the terms and conditions of this Agreement that may be needed, desired, or required to effectuate the terms, conditions, and provisions hereof. (f) Arbitration. The Parties agree that any claim, dispute or controversy arising out of, or relating to, this Agreement, or the breach thereof, shall be resolved through final and binding arbitration administered by the American Arbitration Association (“AAA”) in accordance with AAA’s applicable arbitration rules, and judgment on the award rendered

by the arbitrator(s) may be entered in any Los Angeles County court having jurisdiction thereof.
(g) Attorneys’ Fees. In the event any claim is brought upon this Agreement to enforce its terms, each Party shall be responsible for its own attorneys’ fees and costs. (h) Consultation with Legal Counsel. The Parties represent that they have consulted legal counsel prior to the execution of this Agreement and have executed this Agreement with full knowledge of its meaning and effect. (i) Entire Agreement. This Agreement constitutes the entire and only agreement between the Parties with reference to the subject matter herein and supersedes any prior agreement, oral or written, with respect thereto. (j) Drafting of Agreement. This Agreement shall not be construed in favor of, or against, any party by reason of the extent to which any party or its counsel participated in the drafting of this Agreement.
(k) Not a Joint Venture or Joint Powers Authority. The Parties intend by this Agreement to establish only an agreement for provision of reimbursement and apportionment of costs for the Project, and do not intend to create a joint powers agency, partnership, joint venture, or joint enterprise of any kind. (l) Waiver, Modification, Amendment. No provision of this Agreement may be waived unless in writing and signed by both Parties hereto. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein. This Agreement may be modified or amended only by a written agreement executed by both of the Parties hereto.
(m) Electronically Transmitted Signatures; Electronic Signatures. A manually signed copy of this Agreement which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Agreement for all purposes. This Agreement may be signed using an electronic signature.
(n) Counterparts. This Agreement may be executed in separate counterparts, the whole of which shall constitute a binding agreement. Facsimile signatures and email/PDF signatures, when received, shall have the same force and effect as original signatures.

WHEREFORE, the undersigned, having read the foregoing Agreement and fully understanding and agreeing to its terms, hereby execute this Agreement and make it effective as of the day and year first above written.

THE CITY OF ROLLING HILLS ROLLING HILLS COMMUNITY

ASSOCIATION
By By
Karina Bañales Kristen Raig
City Manager Manager
Date Date
APPROVED AS TO FORM: APPROVED AS TO FORM:

By By

EXHIBIT “A”
CONTRACTOR’S AGREEMENT

Item: 12.C.

Meeting Date: 7/28/2025
To: City Council
From: Samantha Crew, Management Analyst
Thru: Karina Bañales, City Manager
Subject: Authorize the City Manager to Sign a Letter of Support for the Palos Verdes Peninsula Mass Care and Evacuation Plan Grant Application Background:

The four cities of the Palos Verdes Peninsula, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, and Palos Verdes Estates, face a variety of significant hazard risks. Over half of the Peninsula lies within a moderate, high, or very high Fire Hazard Severity Zone, and the area is impacted by active earthquake fault lines and ongoing land movement. These risks are further intensified by limited ingress/egress routes, equestrian communities, and a higher-than-average population of older adults.

The Palos Verdes Peninsula (PVP) cities are once again joining forces to enhance regional emergency preparedness. A Peninsula-wide Evacuation and Mass Care Plan has been identified as a strategic goal for 2026 by the Peninsula Public Safety Committee, in recognition of the need for a coordinated approach to large-scale emergency response. After researching funding opportunities to support the development of the plan, a potential grant through Cal Fire has been identified. The City of Rancho Palos Verdes, serving as the lead agency, will be submitting the formal grant application and is requesting participation from the City of Rolling Hills in this collaborative effort.

Discussion:

The Palos Verdes Peninsula Mass Care and Evacuation Plan will provide clear protocols for public information, evacuation and repopulation procedures, safe refuge areas, mass care and shelter operations, and coordination across jurisdictions. It will also identify vulnerable populations, evaluate evacuation route limitations, and explore mitigation strategies to strengthen community readiness.

As outlined in the draft letter of support (Attachment A), the plan aims to reduce the time required during an emergency to reach consensus on critical issues and will serve as a critical planning tool for all four cities. The final deliverables include a formal plan, stakeholder and community engagement, and a Peninsula-wide exercise to test the plan's effectiveness. To date, the City of Rolling Hills Estates has submitted a letter of support (Attachment B) for the project, which is attached to this report for reference.

Importantly, Rancho Palos Verdes staff have clarified that no local funding match is required to participate. Instead, in-kind staff time dedicated to participating in the planning process would serve as the City's contribution.

The development of a coordinated Mass Care and Evacuation Plan for the Peninsula addresses a critical need and supports the City’s ongoing efforts to enhance emergency preparedness.

Staff recommends that the City Council authorize the City Manager to sign the letter of support for this collaborative initiative and to participate in the development of the plan if funding is awarded.

Fiscal Impact:

None
Recommendation:

Approve as presented.

Attachments:

1. CL_AGN_250728_CC_LetterofSupportEvacPlan

2. CL_AGN_250728_CC_RollingHillsEstatesLetterofSupport

3. CL_AGN_250728_CALFIRE_Scope of Work_RegionalEvacPlanGrant

City of Rolling Hills INCORPORATED JANUARY 24, 1957
2 PORTUGUESE BEND ROAD
ROLLING HILLS, CA 90274
(310) 377-1521
FAX (310) 377-7288
July 23, 2025
California Climate Investments
1001 I St.

Sacramento, CA, 95814
Subject: Support Letter for the Palos Verdes Peninsula Mass Care and Evacuation Plan grant application
To whom it may concern:

On behalf of the City of Rolling Hills, please accept this letter of support for the City of Rancho Palos Verdes’ grant application for the Palos Verdes Peninsula Mass Care and Evacuation Plan.

The Palos Verdes Peninsula faces numerous hazard risks, with over half of the Peninsula located in a moderate, high, or very high Fire Hazard Severity Zone, multiple earthquake fault lines threatening the region, and ongoing land movement severely damaging homes, roads, and infrastructure, including a vital evacuation route for the Peninsula, Palos Verdes Drive South. These risks are exasperated by limited egress/ingress routes on the Peninsula, several equine communities hosting dozens to hundreds of horses, and a high percentage of the population that is aged 65 and over as compared with the national average.

The Palos Verdes Peninsula Mass Care and Evacuation Plan (Plan) will ensure that the four cities on the Peninsula — Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, and Rolling Hills Estates — are ready to respond in coordination with one another and their regional partners to an emergency that requires evacuations and/or mass care and shelter operations. The Plan will help reduce the time required during an emergency to reach consensus on issues such as public alerts and information, sharing of resources, and response operations, by addressing these issues before an emergency takes place, providing coordination protocols; clearly defining roles and responsibilities; and mapping vulnerabilities and resources in the area. Further, the Plan will help the cities identify potential mitigation strategies to address vulnerabilities and evacuation route limitations. Finally, the functional

exercise and subsequent training opportunities included in this project will further improve Peninsula-wide collaboration and city staff response capabilities.

The four Peninsula cities work well together but all have limited staff and budgets that make it difficult to develop a Peninsula Mass Care and Evacuation Plan in house.

The funds from the wildfire prevention program grant will allow the cities to hire a consultant to write and exercise the Plan in a timely manner. Having this coordination complete before an emergency occurs ensures a quick, efficient and coordinated response that will positively impact public safety for the 67,000 residents, 46,000 workers, and countless visitors to the Peninsula.

Thank you for your time and consideration.

Sincerely,

CITY MANAGER

Scope of Work
Project Name: Palos Verdes Peninsula Mass Care and Evacuation Plan Project Tracking Number: 25-WP-78922274
Project Description: The four Palos Verdes Peninsula Cities of Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills and Rolling Hills Estates are seeking to develop a Mass Care and Evacuation Plan to enable a fully integrated, pre-planned,, coordinated, and mutually agreed upon emergency evacuation and mass care and shelter plan. For this project a consultant will be hired to work with the four cities and their stakeholders to develop the plan. The plan will include guidance on coordination and communication between the cities, response agencies, stakeholders, and community during emergency requiring evacuations and/or mass care and shelter servicesoperations, such as a wildfire or earthquake. This will include a clear coordination protocol for public information and joint messaging templates, a description of each involved organization's roles and responsibilities, and solidification of the processes and protocols for evacuation, repopulation, safe refuge, and mass care and shelter operations. Finally, the plan will outline city, peninsula, and regional resources that can support mass care and/or evacuation efforts, including transit, feeding, sanitation, and sheltering services, refuge areas, temporary evacuation points, emergency facilities, animal care, and communication tools. As part of this planning effort, areas of vulnerability and potential mitigation strategies for evacuation route limitations will be examined, along with identification of transportation and facility needs, including additional support for those requiring assistance evacuating themselves and/or large animals. Public engagement will occur throughout the plan development both as a source of input and public education; this outreach should include installation of street signs clearly indicating zone locations and directions to the nearest designated Safe Refuge Area and Temporary Evacuation Point. The project will conclude with a peninsula wide emergency exercise, testing the plan, and finalization/approval by all four city councils.

Primary Activity Type: Wildfire Prevention Planning
Describe the geographic scope of the project, including the communities that will benefit, and an estimate of the number of structures within the project area.

The Palos Verdes Peninsula has a unique physiography, formed over millions of years of submerging and lifting from the Pacific Ocean. Once an island, the Peninsula is nine miles wide

by four miles deep, now rises above the Los Angeles Basin, with the highest elevation at 1480 feet. The terrain of much of the planning area is rolling hills, steep slopes, canyons, and coastal bluffs. Several active park sites and an extensive amount of preserved natural open space and passive parkland, particularly along the Peninsula’s coastline, provide the majority of recreational resources for residents. The Palos Verdes Peninsula is made up of four cities: Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, and Palos Verdes Estates as well as the unincorporated community of Westfield/Academy Hill. The Palos Verdes Peninsula is bounded on the north by Torrance, on the south and west by the Pacific Ocean; and on the east by Lomita and San Pedro (Los Angeles). The Palos Verdes Peninsula has a total population of about 67,067 (PVE 13,434, RPV 42,030, RH 1,513, RHE 8,169 and the unincorporated areas of the Peninsula 1,921) The Palos Verdes Peninsula includes an area of approximately 17.78 square miles (PVE 4.77 sq mi RPV 13.6 sq mi, RH 3.0 sq mi and RHE 4.18 sq mi). The Peninsula has about 25,000 housing units ( PVE 5,017, RPV 16,497, RHE 3184, RH 700). There are also 21 schoolschools on the peninsula, 4 city halls, 2 college campuses, a salvation army campus, 3 library facilities, 6 LA County Fire Department Stations, and 1 police station (PVEPD has their own police department, while the other 3 cities contract with the County Sherriff's Department, with the station housed in the City of Lomita), and 6 LA County Fire Department Stations.

Describe how the project will assess the risks to residents, structures and prioritize projects to reduce this risk over time.

As part of the peninsula Mass Care and Shelter Plan, the hired consultant will review potential vulnerabilities within the area, including the access and functional limitations of residents and transportation and evacuation route limitations. The plan will provide procedures for helping address vulnerabilities and recommend additional mitigation projects to strengthen evacuation and mass care capabilities for the whole community.

This plan will also examine the vulnerability and capacity of structures within the area to understand potential mass care and shelter needs and identify structures that could be used as Safe Refuge Areas, Emergency Facilities, and Temporary Evacuation Areas.

Does the proposed plan add or build upon previous wildfire prevention planning efforts in the general project area?
The Mass Care and Evacuation Plan, builds off the Peninsula wide Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) (in development with the projected completion being March 2026), which examines hazard risk and mitigation strategies for all hazards on the peninsula. and the Emergency Operations Plan (EOP) for each of the four cities, which provides the basic guidelines and procedures for all hazard city emergency management.

The Mass Care and Evacuation Plan will build off the MJHMP's hazard risk identification and

mitigation strategies, and expand on EOP basic procedures focusing on mass care and evacuation operations.

Identify a diverse group of key stakeholders, including local, state, and federal officials where appropriate, to collaborate with during the planning process. Discuss how the project proponent plans to engage with these targeted stakeholders.

The plan will include departments and city management from all four cities on the Palos Verdes Peninsula, the Palos Verdes Estates Police Department, the Los Angeles County Sheriff's Department, The Los Angeles County Fire Department, various County of Los Angeles Departments (Office of Emergency Services, Public Works, Social Services, Animal Care and Control, etc.) the American Red Cross, local utility companies (SCE, SCG, Cal Water, etc.), local community groups and organizations (PVP CERT, RPV EPC, RPV CHOA, PVE Cares, etc.), California Department of Transportation, PVPUSD, Palos Verdes Library District, local assisted living facilities, multi unitmulti-unit properties, Area G DMAC and neighboring cities, and any other stakeholders that are identified throughout the plan development.

Describe the pathways for community involvement that will be incorporated in the planning process.

The plan development will include community engagement throughout the process.

Updates will be provided at city council meetings at the commencement of the plan development. Once the initial plan draft is developed and stakeholder feedback is incorporated, the consultant will conduct community meetings to gather input on the plan in person, along with sharing a virtual copy of the plan draft for feedback on the cities' websites, social media, newsletters, reports, and listservs, through Alert South Bay and the PVP Ready website (currently used to push the know your zone campaign), through local media, including RPVtv and local newspapers, via Bulletin Boards and banners, and at local community meetings and events (ex. HOA meetings, EPC meetings, Peninsula Prep Expo, etc.). When the plan is finalized, additional community outreach will be conducted to educate residents about the plan and their role in disaster readiness, using the same communication methods listed above.

Discuss the location of the project in relation to areas of moderate, high, or very high fire hazard severity zone as identified by the latest Fire and Resource Assessment Program maps. *
With its many steep canyons and open scrub-covered hillsides, the Palos Verdes Peninsula area has always been vulnerable to the hazards associated with brush fires. About half of the peninsula is designated as a very high fire hazard severity zone; with all 4 cities having

at least a segment of their community in the medium, high, and very high fire hazard severity zone classifications.

Describe the geographic proximity of the project to structures at risk to damage from wildfire in the WUI. *
Due to the peninsula relative isolation from the rest of Los Angeles County cities, it is not considered part of the wildland urban interface; though its isolation intensifies the need for evacuation and mass care planning.

Does the project include any matching funds from other funding sources or any in-kind contributions that are expected to extend the impact of the proposed project? * The four peninsula cities will provide staff liaisons to support the plan development and will seek to create mitigation and readiness projects identified through the plan (ex. street signage, strengthening of Safe Refuge Areas, etc.). Further, emergency management staff in the cities will work together to update the plan every 5 years and as neededneeded, due to new data and lessons learned from recenter emergencies and exercises.

Describe plans for external communications during the life of the project to keep the effected community informed about the goals, objectives and progress of the project.

Activities such as planned press releases, project signage, community meetings, and field tours are encouraged. *
Community meetings, the cities' websites, social media, newsletters, reports, and listservs, Alert South Bay, the PVP Ready website, interviews and press releases through local media, Bulletin Boards and banners, and discussions at local community meetings and events (ex. HOA, EPC, & City Council Meetings , Peninsula Prep Expo, etc.) will all be used throughout the plan development process to keep the community informed, educate them about emergency evacuations and mass care operations, and gather community input.

Describe any plans to maintain the project after the grant period has ended. * The plan will be updated every 5 years by the four cities and as needed when new data is presented and/or after exercises and real emergencies.

Does the proposed project work with other organizations or agencies to address fire hazard reduction at the landscape level? *
While the plan doesn't directly work to reduce fire hazard at the landscape level; the plan will identify and recommend projects to help reduce fire hazard, including those at the landscape level.

Discuss the anticipated timeline for the project. Make sure to take seasonal restrictions into account. *
Upon award of the grant (goal to begin work in 2026) the project will take between 12 and 16 months to complete.

Verify the expected timeframes to complete the project will fall under the required completion dates depending on the source of the funds awarded. * The project will be complete before the deadline of February 15, 2029.

Using bullets, list the milestones that will be used to measure the progress of the project. *
• RFP for Consultant
• Hire Consultant
• Develop Core Planning Team and larger stakeholder list • Create a Plan Template and meeting timeline
• First Community Meeting
• Write First Draft with core planning team
• Stakeholder engagement
• Complete Second Draft using stakeholder feedback
• Second Community Meeting to gather community feedback • Create exercise and modify plan based on feedback
• Test Plan through exercise
• Complete third plan draft and send for final review by core planning team • Finalize Plan and send to city council for approval
• Publish approved plan
Using bullets, list the measurable outcomes (i.e. project deliverables) that will be used to measure the project’s success. *
• Completion of a peninsula wide Mass Care and Evacuation Plan • Completion of a peninsula wide Evacuation and Mass Care Operations Exercise • Hosting ofHosting at least 3 community meetings
• Engagement of at least 10 regional stakeholders in plan development If applicable, how will the requirements of the California Environmental Quality Act (CEQA) be met? *
Not Applicable

List any existing forest or land management plans; Conservation Easements; Covenant, Conditions & Restrictions (CC&R’s); matters related to zoning; use restrictions, or other factors that can or will limit the wildfire prevention proposed activity? *
None
Describe any previous experience the project proponent has with similar projects.

Include a list of recent past projects the proponent has successfully completed if applicable. Project applicant or manager having no previous experience with similar projects should discuss any past experiences that may help show a capacity to successfully complete the project being proposed. This may include partnering with a more experienced organization that can provide project support. * The project manager has experience supporting the development of a Countywide Mass Transportation and Evacuation Plan for the County of Monterey, along with experience updating and developing numerous plans including, Multi-Jurisdictional Hazard Mitigation Plans, a Community Resilience Plan, and Donation and Volunteer Management Plan, an Electrical Power Disruption Plan, and a Public Information and Warning Plan. Additionally, the project manager has experience hosting multiple exercises related to mass care and/or evacuations and has engaged in about a dozen Emergency Operations Center activations, including multiple wildfire emergencies that required mass care and evacuation operations. Finally, the project manager works closely with the local fire and law departmentsdepartments, and the other 3 peninsula cities, building off their experience as well.

Identify who will be responsible for tracking project expenses and maintaining project records in a manner that allows for a full audit trail of any awarded grant funds. * The Project Manager will work with the Rancho Palos Verdes Ffinance department toDepartment to track project expenses and records.

Explain how the grant funds, if awarded, will be spent to support the goals and objectives of the project. If equipment grant funds are requested, explain how the equipment will be utilized and maintained beyond the life of the grant. * The grant funds will solelywill be used to hire a consultant to develop the plan and run an exercise to test the plan.

Are the costs for each proposed activity reasonable for the geographic area where they are to be performed? Identify any costs that are higher than usual and explain any

special circumstances within the project that makes these increased costs necessary to achieve the goals and objectives of the project. *
The costs are reasonable for the geographic area.

Is the total project cost appropriate for the size, scope, and anticipated benefit of the project? *
Yes, the project cost is much smaller than the benefit the increased coordination and planning will have on ensuring public safety during evacuations and mass care operations.

Using bullets please list each object category amount that you are requesting and the detail of how that would support meeting the grant objectives. * • Consultant for plan development for 12 to 16 months - $200,000 Does your project include the purchase of capital equipment (more than $5,000 per item)? *
No
How will the project/activity reduce Greenhouse Gas emissions? * This project will not directly reduce greenhouse gas emissions, however planning for safe refugee areas can reduce unnecessary traffic congestion during evacuations, which can help reduce greenhouse gas emissions.

Item: 14.A.

Meeting Date: 7/28/2025
To: City Council
From: Samantha Crew, Management Analyst
Thru: Karina Bañales, City Manager
Subject: Receive and File a Public Safety and Emergency Preparedness Update Background:

Rolling Hills is deeply committed to building a safe, prepared, and resilient community through a variety of ongoing public safety and emergency preparedness initiatives. This dedication is reflected in strong partnerships with emergency service providers, neighboring Peninsula cities and regional agencies, all working together to protect residents and enhance the City's overall readiness.

To keep the community informed and engaged, the City provides regular updates on its preparedness efforts to the City Council and the public. By keeping residents informed and engaged, the goal is to empower individuals and households to take an active role in their own emergency planning. Through shared knowledge and coordinated action, Rolling Hills continues to strengthen its ability to respond to emergencies and foster a more resilient and united community.

Discussion:

This monthly Public Safety Report is intended to keep the City Council and residents informed of ongoing initiatives, recent activities, and upcoming priorities related to disaster readiness, emergency response, and overall public safety. By providing regular updates, the report offers a clear and timely overview of the City’s efforts to strengthen its preparedness and response capabilities. In addition to serving as a communication tool, the report functions as an official record of the City’s progress in implementing safety-related programs and initiatives. It documents key actions taken, partnerships developed, training activities conducted, and resources allocated, while also highlighting the City’s proactive approach to protecting the community in the face of evolving risks and challenges.

Cal OES Voluntary Buyout Program
The City of Rolling Hills continues to explore participation in the Cal OES Voluntary Buyout Program, which provides eligible homeowners the option to relocate from properties affected by ongoing hazards. Properties acquired through the program would be converted into permanently protected open space and deed-restricted to prevent future development. This strategy is aimed at reducing long-term risk in vulnerable areas and advancing the City’s broader goal of enhancing community resilience. Currently, Cal OES is conducting a benefit-cost analysis (BCA) for interested homeowners to determine eligibility for the program. This essential step assesses the long-term cost-effectiveness

of acquiring and removing properties located in hazard-prone areas. Cal OES is expected to provide a status update on the BCA results in early August, after which the City will engage with participating homeowners to discuss potential next steps.

The City remains committed to supporting residents throughout this process and will continue to work closely with Cal OES to ensure clear communication and effective coordination. Once eligibility is determined, staff will bring the item back to the City Council, seeking a recommendation on how to proceed.

Cal OES Datacasting Receiver Pilot Program
The City of Rolling Hills is pleased to participate in the California Office of Emergency Services (Cal OES) Datacasting Receiver Pilot Program, an innovative initiative designed to enhance earthquake early warning capabilities. As part of this program, Rolling Hills will receive two advanced earthquakealerting receivers and two antennas at no cost. These devices use a secure U.S. Geological Survey (USGS) signal transmitted through local public television stations to deliver GPS-specific earthquake alerts in under one second.

While these devices are not intended to replace the existing Wireless Emergency Alerts (WEA) system, they serve as a valuable supplemental tool, providing critical seconds of lead time for personnel to take protective action. In the event of seismic activity, these rapid alerts will enable City staff and Emergency Operations Center (EOC) personnel to immediately Drop, Cover, and Hold On, an essential advantage for those in key emergency response roles. The pilot program will run through December 31, 2025. During this period, participating cities are asked to provide monthly feedback to Cal OES to help evaluate the system’s effectiveness. At the conclusion of the pilot, Rolling Hills will be permitted to retain the equipment permanently, with no future maintenance or subscription fees required.

Cal OES has expressed its long-term goal of eventually making these receivers available to residents across California.

Re-Energization - SoCalGas
SoCalGas has begun restoring natural gas service in Rancho Palos Verdes (RPV). Restoration started on July 10 along Exultant Drive, and as of July 21, service has been restored to three homes in the Seaview neighborhood. Work is ongoing on Admirable and Dauntless Drives for eligible homes.

Once work in Seaview is complete, restoration will proceed to the Portuguese Bend Beach Club and then to the City of Rolling Hills. Rolling Hills residents will begin receiving calls in the coming weeks to prepare for reconnection. To assist with this process, SCE has posted an informational sheet on its website and staff has included it as attachment A.

Southern California Edison (SCE)
SCE has restored power to all residents who requested service, with the exception of one household that remains offline pending final permit approvals. Some residents have chosen to remain off the grid or delay reconnection by personal preference. Recently, SCE mailed a notice outlining its long-term plan to address infrastructure challenges linked to land movement on the Palos Verdes Peninsula.

The letter describes a Tension Relief Strategy scheduled to begin in early fall 2025, which includes the installation of specialized devices that reduce tension in power lines, helping the electrical system better withstand minor earth shifts. These devices, used alongside upgrades like taller poles and covered conductors, are only suitable for areas where land movement has remained at or below pre2023 levels. SCE will provide updated schedules as the project develops, and some temporary traffic impacts are expected during construction (Attachment B).

Potential Siren System Expansion

At the May 12 City Council meeting, staff was directed to work with HQE and the Rolling Hills Community Association (RHCA) to identify alternative locations for additional emergency siren poles based on HQE’s coverage studies. Since then, staff has worked with HQE and RHCA to identify six potential locations across three coverage gap areas. From these six sites, one location in each area will be selected, resulting in three new installations. As part of this process, staff has contacted residents whose properties are considered ideal for placement. Outreach has included phone calls, emails, and on-site meetings. Site visits are being conducted to provide information, answer questions, and address concerns. Additional outreach will continue as the project moves forward.

Staff is awaiting DigAlert’s determinations for all six proposed sites. Once confirmed, staff will present the preferred locations to the RHCA Board, complete any additional site visits, and provide a formal presentation to the City Council, which will include detailed coverage maps and site-specific considerations. Staff will return with detailed information as the project advances.

Brush Clearance and Zone 0 Update
Annual brush clearance inspections were completed in June 2025 by the Los Angeles County Fire Department. While Zone 0 (0–5 feet from structures) is not yet enforceable, residents were encouraged to maintain this area in a “lean and green” condition. Assistant Fire Chief Kane will attend the August 11 City Council meeting to provide a brief presentation on the outcomes of this year’s inspections.

Peninsula Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) City staff continue to actively participate in bi-weekly coordination meetings for the Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) alongside consultant Black & Veatch and representatives from the neighboring Peninsula cities. Currently, staff are focused on developing the Rolling Hills-specific annex, which outlines local vulnerabilities and mitigation strategies. The next Planning Committee meeting is scheduled to take place virtually on September 10 from 9:00 a.m. to 11:00 a.m. This meeting will bring together key stakeholders and the core planning team, including staff from all four Peninsula jurisdictions. Residents are welcome to attend and observe the planning process. To request the meeting link, please contact [email protected].

Prepared Peninsula Expo - October 26, 2025
Staff have begun planning for the annual Prepared Peninsula Expo, a regional event dedicated to promoting emergency preparedness and resilience across the Palos Verdes Peninsula. This collaborative effort brings together local cities, first responders, utility providers, and community organizations to provide residents with valuable information, resources, and hands-on demonstrations related to disaster readiness. The Expo serves as an important opportunity for community engagement, offering attendees practical tools and guidance to help them prepare for a wide range of emergencies. Planning efforts are now underway to ensure another successful and informative event.

Genasys Evacuation System Tabletop Exercise
On August 21, 2025, City staff will participate in a regional tabletop exercise focused on testing the Genasys evacuation system within Area G jurisdictions. Designed to enhance regional preparedness and strengthen coordination among emergency response agencies, the exercise will evaluate the effectiveness of the Genasys system in evacuation scenarios. Participants will include key public safety personnel such as police, fire, and emergency management representatives. Genasys is a mass notification and protective communications system that delivers clear, targeted alerts and instructions during emergencies, including evacuation orders, to help ensure timely action and public safety.

Fiscal Impact:

None.

Recommendation:

Receive and File
Attachments:

1. Attachment A - SCG_PV_Restoriation_Readiness_Flyer_7-25

2. Attachment B - CL_AGN_250728_CC_PVP_TensionReliefStrategy_RH_F

Are You Restoration Ready?
Restoration Readiness Checklist:
• Account Verification
- Customers can contact SoCalGas at 800-228-7377 to verify their account information (if customers have not already been contacted by SoCalGas).

SoCalGas will contact customers at a later time to schedule an appointment. • Appliance Conversion (If Applicable)
- Have a qualified professional safely disconnect the propane system from the converted appliance(s) for safe operation and compliance with manufacturer specifications. • Propane Supply Disconnection (If Applicable)
- Have a qualified professional safely disconnect the propane system from the converted appliance(s).
- Ensure the natural gas line has its own dedicated piping that is not connected to any propane system.
• Professional Inspection (Recommended)
- Have a qualified professional inspect the natural gas houseline system to confirm it is safe and ready for service (no leaks).

SoCalGas Will Contact You When We Are Ready to Restore Service:
• SoCalGas will contact customers via the information provided in the customer’s account file to schedule an appointment when we are ready to restore service.

Residential Restoration Process
• A SoCalGas technician will perform a leak test on the customer’s natural gas houseline. • If no leaks are found on the houseline, the technician will provide service and a safety check to all connected natural gas appliances.
• If leaks are found, the gas meter will be left off until the houseline is repaired by a qualified professional.

Additional Restoration Information:
• An adult over the age of 18 must be present during restoration. • To restore service, SoCalGas must have access to the customer’s meter and the residence interior to check the functionality of natural gas appliances. • This process will take one to two hours.
• Pets must be confined behind a solid partition while SoCalGas employees are working on the premises.
• Customers should never attempt to restore or turn on natural gas service themselves.

©2025 Southern California Gas Company. All copyright and trademark rights reserved. J078 555OCC 0725 Stay Safe
To keep customers and employees safe, please remember these safety tips:
• Authorized SoCalGas employees will be in uniform with our company logo. • All SoCalGas employees on company business are required to carry a SoCalGas ID badge. • SoCalGas employees will never ask for payments during these reconnection home visits. • To verify the authenticity of anyone claiming to be a representative of SoCalGas, ask for identification or call us at 1-800-427-2200 or 1-800-342-4545 for Spanish-language customer service or visit socalgas.com/SafeAccess.

For more information, please visit socalgas.com/PVLandMovement.

For customer service inquiries, please contact us at 1-877-238-0092 or email us at [email protected].

If you suspect a natural gas leak, please don’t wait - call us immediately at 1-800-427-2200.

All restoration plans are dependent upon minimal land movement rates. Restoration efforts are provisional and based on localized conditions at each property. Increased land movement may necessitate future temporary shutoffs of natural gas service to homes to promote public safety.

Dear Valued Customer,

As part of our ongoing efforts to enhance the resiliency and reliability of our electrical infrastructure, Southern California Edison will be installing an innovative solution — Tension Relief Strategy — in certain areas of the Palos Verdes Peninsula.ௗௗ

The Tension Relief Strategy represents a proactive, state-of-the-art approach to addressing environmental challenges on the peninsula. These devices can relieve tension in the conductor, providing increased ability for expansion of the distance between poles in the event of slight land movements. By accommodating slight shifts in the land, the devices help the infrastructure remain intact and functional. Tension relief devices work in conjunction with other elements of the strategy, such as covered conductor and taller poles, to create a multi-faceted solution for grid resiliency. This strategy is intended to lower risks associated with downed wires while also increasing the overall resilience of SCE’s electrical infrastructure in areas like the peninsula that are prone to land movement.

While innovative, the usefulness of this engineering solution is limited because the devices can only expand a certain amount. As such, it is not a viable solution for all areas of the peninsula, but rather it is intended for areas that see a continued, sustained reduction in land movement at or below rates that were experienced prior to 2023.ௗௗ ௗௗ
What to Expect
The project to install the necessary equipment to implement the Tension Relief Strategy will require work to be performed by SCE and telecommunication utilities in your area. We anticipate this work to begin in early fall 2025. As the dates become more firm, we will send another communication with the update. SCE crews will be working in the area, so there might be traffic and delays. We will make every effort to minimize any inconvenience and appreciate your understanding and cooperation as we work to restore power in the area.

How to Stay Informed
If you have questions or need assistance, please call the SCE customer service team at 1- 800-250-7339 Monday through Friday, 7 a.m.-7 p.m., or Saturdays, 8 a.m.-5 p.m.

To learn more about tension relief, visit the SCE FAQ on sce.com/pvplandslide.

Jeremy Califano
Jeremy Califano, PE, PMP
Senior Manager, Project Management
Southern California Edison

Item: 14.B.

Meeting Date: 7/28/2025
To: City Council
From: Christian Horvath, Assistant to the City Manager / City Clerk Thru: Karina Bañales, City Manager
Subject: Receive and file a Verbal Update on the status of the Traffic Commission Vacancy and Appointment
Background:

None.

Discussion:

None.

Fiscal Impact:

None.

Recommendation:

Receive and file.

Attachments:

None

Item: 15.A.

Meeting Date: 7/28/2025
To: City Council
From: Nicolas Papajohn, City Attorney
Thru: Karina Bañales, City Manager
Subject: Conference with legal counsel - existing litigation Government Code Section 54956.9(d)(1) the City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the city in the litigation. (3 cases) a. Name of case: Connie Andersen, et al. V. California Water Company, et al. (Seaview case) Case No.: 24STCV20953 b. Name of case: City of Rolling Hills v. SCE CPUC docket no. C.24-10-008 c. Name of case: City of Rolling Hills v. SoCalGas CPUC docket no.

C.24-10-009
Background:

None.

Discussion:

None.

Fiscal Impact:

None.

Recommendation:

None.

Attachments:

None

Item: 15.B.

Meeting Date: 7/28/2025
To: City Council
From: Nicolas Papajohn, City Attorney
Thru: Karina Bañales, City Manager
Subject: Conference with legal counsel - initiation of litigation a closed session will be held, pursuant to Government Code Section 54956.9(c) and (d)(4) regarding the decision of whether to initiate litigation (1 case)
Background:

None.

Discussion:

None.

Fiscal Impact:

None.

Recommendation:

None.

Attachments:

None