Agenda packet — Mayor and City Council, March 19, 2025 (part 1 of 2)

Mayor and City Council of the City of San Bernardino Page 1

CITY OF SAN BERNARDINO
AGENDA
FORTHE

REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO,

MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR

AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN

BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT

AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE

HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO

ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, MARCH 19, 2025
3:30 PM CLOSED SESSION 5:00 PM OPEN SESSION
NORMAN F. FELDHEYM CENTRAL LIBRARY • 555 W 6TH STREET • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez Helen Tran Dr. Treasure Ortiz
COUNCIL MEMBER, WARD 1 COUNCIL MEMBER, WARD 7
MAYOR
Sandra Ibarra Bill Gallardo
COUNCIL MEMBER, WARD 2 INTERIM CITY MANAGER
Juan Figueroa Sonia Carvalho
MAYOR PRO TEM, WARD 3 CITY ATTORNEY
Fred Shorett Genoveva Rocha
COUNCIL MEMBER, WARD 4 CITY CLERK
Kim Knaus
COUNCIL MEMBER, WARD 5
Mario Flores
COUNCIL MEMBER, WARD 6
Welcome to a meeting of the Mayor and City Council of the City of San Bernardino

PLEASE VIEW THE LAST PAGES OF THE AGENDA FOR PUBLIC

COMMENT OPTIONS, OR CLICK ON THE FOLLOWING
LINK: TINYURL.COM/MCCPUBLICCOMMENTS
PLEASE CONTACT THE CITY CLERK'S OFFICE (909) 3845002 TWO

WORKING DAYS PRIOR TO THE MEETING FOR ANY REQUESTS FOR

REASONABLE ACCOMMODATIONS
To view PowerPoint presentations, written comments, or any revised documents for this meeting date, use this link: tinyurl.com/agendabackup.

Select the corresponding year and meeting date folders to view documents.

Mayor and City Council of the City of San Bernardino Page 2

CALL TO ORDER
Attendee Name
Council Member, Ward 1 Theodore Sanchez
Council Member, Ward 2 Sandra Ibarra
Mayor Pro Tem, Ward 3 Juan Figueroa
Council Member, Ward 4 Fred Shorett
Council Member, Ward 5 Kim Knaus
Council Member, Ward 6 Mario Flores
Council Member, Ward 7 Dr. Treasure Ortiz
Mayor Helen Tran
Interim City Manager Bill Gallardo
City Attorney Sonia Carvalho
City Clerk Genoveva Rocha
3:30 P.M.

CLOSED SESSION PUBLIC COMMENT
CLOSED SESSION Pg.13
A) CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1):
i. Jose Alvarado, et al. v. City of San Bernardino, et al., United States District Court Case No. 5:24cv00088
ii. Dennis Houser v. City of San Bernardino, Workers’ Compensation Case No.ADJ15488028
iii. Thomas Shank v. City of San Bernardino, Workers’ Compensation Case No.

ADJ15724149; ADJ15724051; ADJ16655896; ADJ15724050; ADJ13174538; ADH11237727; ADJ39990589; ADJ1710432; ADJ39990589; ADJ153836; AND ADJ4205384
iv. Sherry, Vasilis v. City of San Bernardino, Workers’ Compensation Case No.

ADJ18537573; ADJ18191924; ADJ14378758; and ADJ7270414
v. Michael Paluzzi v. City of San Bernardino, Workers’ Compensation Case No.

ADJ16428063; and ADJ16428064
vi. Ronel Newton v. City of San Bernardino, Workers’ Compensation Case No.

ADJ16142895; and ADJ12116625
vii. City of San Bernardino v. Arrowhead Lodge No. 896 et al., San Bernardino Superior Court, Case No. CIVSB2221041.

B) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION SIGNIFICANT EXPOSURE TO LITIGATION (Pursuant to Government Code Section 54956.9(d)(2)):

Two (2) Cases
Mayor and City Council of the City of San Bernardino Page 3 C) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): One (1) Case D) PUBLIC EMPLOYEE PERFORMANCE EVALUATION PROCESS (Pursuant to Government Code Section 54957)
Titles: City Attorney, City Clerk
E) PUBLIC EMPLOYEE APPOINTMENT (Pursuant to Government Code Section 54957)
Titles: City Manager (Meet with Recruiter)
Appointment of Interim City Clerk
F) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6):

Agency Designated Representative: City Manager or Designee Employee Organization: General Unit – Teamsters Local 1932, Management Confidential Group – SBCMA, Mid Management Unit – Teamsters Local 1932, Police Dispatch Unit – SBPDA, San Bernardino Police Civilian Association – AFSCME Local 4710, Police Management Unit – PMA and Police Safety Unit – SBPOA
5:00 P.M.

INVOCATION AND PLEDGE OF ALLEGIANCE

CLOSED SESSION REPORT

PRESENTATIONS

1. Proclamation for National Senior Games Week in the City of San Bernardino – March 1723, 2025 (All Wards) Pg.15

2. Certificate of Recognition for Aquinas Boys Basketball Division 3A CIF Champions (Ward 4) Pg.17

3. Animal Services Department Projects and Programs Update (All Wards) Pg.18

CITY MANAGER UPDATE

PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA Mayor and City Council of the City of San Bernardino Page 4

CONSENT CALENDAR

4. Approval to allocate $600,000 from the General Fund for a Rapid Rehousing Program in partnership with the Salvation Army (All Wards) Pg.19 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve Resolution No. 2025265 to amend the FY 2024/2025 Operating Budget, authorizing the allocation of $600,000 from the General Fund’s fund balance for Rapid Rehousing Services.

2. Approve The Salvation Army as the singlesource provider for Rapid Rehousing Services, based on their expertise and established infrastructure.

3. Authorize the City Manager or designee to execute a Professional Services Agreement (PSA) with The Salvation Army for the Rapid Rehousing Program, including any necessary amendments, extensions, or related documents.

5. Right of Entry Agreement with BNSF Railway Company (Ward 1 and 6) Pg.160 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Right of Entry Agreement with BNSF Railway Company; and authorize the City Manager to execute the Right of Entry Agreement in order to carry out certain maintenance and improvement obligations related to the BNSF Ono Lead Track Extension Project Completion Agreement.

6. Approval of Commercial and Payroll Disbursements and Purchase Card Transactions for December 2024 (All Wards) Pg.309
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for December 2024.

7. Receive and File the City’s Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2024 (All Wards) Recommendation: Pg.406
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file City’s Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2024.

8. Authorize a Lease Agreement with Mobile Modular Management Corporation for the Verdemont Community Center for a Total Amount Not to Exceed $47,825.95 (Ward 5) Recommendation: Pg.680
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Authorize the City Manager to enter into a new agreement with Mobile Modular Management Services for the lease and extension of the Verdemont Community Center (temporary) building for a period of 12 months at a monthly cost not to exceed $1,944.47.

2. Authorize the Director of Finance and Management Services to issue an annual purchase order to Mobile Modular Management Corporation in the amount of $47,825.95 with four option years to be exercised at the City’s discretion for the lease agreement. This amount includes $24,492.31 for payment of prioryear monthly leasing fees incurred due to staff oversight resulting from personnel turnover.

Mayor and City Council of the City of San Bernardino Page 5

9. Award an Agreement to Resource Environmental, Inc. to Demolish and Abate the property located at 796 E. 6th Street to prepare the site for construction of the future Navigation Center for a Total Amount Not to Exceed $177,200 (Ward 1) Pg.720 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Authorize the City Manager or designee to approve the award of an agreement with Resource Environmental, Inc., in the amount of $177,200 for abatement of hazardous materials and demolition of the existing School of Hope buildings; and,

2. Authorize the Director of Finance and Management Services to approve contingencies in the amount of $35,440 for unforeseen conditions that may arise during the abatement or demolition processes, for a total not to exceed budget of $212,640.00; and,

3. Authorize the City Manager or designee to execute all documents with Resource Environmental, Inc.; and,

4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

10. Award of Construction Agreement to Prestige Paving Company Inc., for the RePaving of the Ruben Campos Community Center Parking Lot for a Total Amount Not to Exceed $292,993.27 (Ward 1) Pg.830
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino California;

1. Approve the award of a Construction Agreement with Prestige Paving Company Inc., in the amount of $244,161.06 for the RePaving of the Ruben Campos Community Center Parking Lot (Project); and

2. Authorize construction contingencies, construction management, and administrative costs in the total amount of $48,832.21 for construction of the project; and

3. Authorize the City Manager or designee to execute all documents with Prestige Paving Company Inc.; and

4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project; and

5. Find the Project exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines § 15302 (“Replacement or Reconstruction”).

Mayor and City Council of the City of San Bernardino Page 6

11. Approval of Task Order Number 002 to Rick Engineering for a total amount not to exceed $70,260 for Design Services on the Pepper Street Storm Drain from Lynwood Drive South to Piedmont Drive (Lynwood Drive Storm Drain) (Ward 4) Recommendation: Pg.984
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2025266:

1. Approving Task Order Number 002 with Rick Engineering Company, Inc,. in the amount of $58,550.00 for Storm Drain design services for Pepper Street Storm Drain from Lynwood Drive South to Piedmont Drive (Lynwood Drive Storm Drain) Project; and

2. Authorizing design contingencies, project management, and administrative costs in the amount of $11,710.00; and

3. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 Capital Improvement Plan by reallocating $70,260.00 from the Storm Drain Upgrade project to the Pepper Street Storm Drain from Lynwood Drive South to Piedmont Drive (Lynwood Drive Storm Drain) Project; and

4. Authorizing the City Manager or designee to execute an all documents necessary for the Task Order with Rick Engineering Company; and

5. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

12. Approval of Task Order Number 003 with Rick Engineering for Design Services for Baldridge Canyon Drive Storm Improvements (Pleasant Hill Drive Storm Drain) from Baldridge Canyon Drive to Drainage Channel for a Total Amount Not to Exceed $126,060 (Ward 4) Pg.1002
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2025267:

1. Approving Task Order Number 003 with Rick Engineering Company, Inc,. in the amount of $57,300.00 for design services for Baldridge Canyon Drive Storm Improvements (Pleasant Hill Drive Storm Drain) from Baldridge Canyon Drive to Drainage Channel (Project); and

2. Authorizing design contingencies, project management, and administrative costs in the amount of $11,460.00; and

3. Authorizing the Interim Director of Finance and Management Services to amend the FY 2024/25 Capital Improvement Plan by reallocating $68,760.00 from the Storm Drain Upgrade project to the Baldridge Canyon Drive Storm Improvements (Pleasant Hill Drive Storm Drain) from Baldridge Canyon Drive to Drainage Channel project; and

4. Authorizing the City Manager or designee to execute an all documents necessary for the Task Order with Rick Engineering Company; and

5. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

Mayor and City Council of the City of San Bernardino Page 7

DISCUSSION

13. Fiscal Year 2024/25 MidYear Financial Update (All Wards) Pg.1019 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California receive and file the Fiscal Year 2024/25 MidYear Financial Update.

ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS

14. Establishing a Homelessness Initiatives Community Committee (All Wards) Pg.1032

MAYOR & CITY COUNCIL UPDATES/REPORTS ON CONFERENCES & MEETINGS

ADJOURNMENT
The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on April 02, 2025 at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California 92410.

Closed Session will begin at 4:00 p.m. and Open Session will begin at 5:00 p.m.

Mayor and City Council of the City of San Bernardino Page 8

CERTIFICATION OF POSTING AGENDA
I, Telicia Lopez, CMC, Chief Deputy City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the March 19, 2025, Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City's bulletin board located at 201 North "E" Street, San Bernardino, California, 92410, at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California, and on the City's website sbcity.org on Friday, March 14, 2025.

I declare under the penalty of perjury that the foregoing is true and correct.

Telicia Lopez
Telicia Lopez, CMC, Chief Deputy City Clerk
Mayor and City Council of the City of San Bernardino Page 9 NOTICE:

In accordance with Resolution No. 201889 adopted by the Mayor and City Council on March 21, 2018, the following are the rules set forth for Public Comments and Testimony:

Public Comments and Testimony:

Rule 1. Public comment shall be received on a first come, first served basis. If the presiding officer determines that the meeting or hearing may be lengthy or complicated, the presiding officer may, in his or her discretion, modify these rules, including the time limits stated below.

Rule 2. All members of the public who wish to speak shall fill out a speaker' s reservation card and turn in the speaker reservation card to the City Clerk prior to the time designated on the agenda. Comments will be received in the order the cards are turned in to the City Clerk. Failure of a person to promptly respond when their time to speak is called shall result in the person forfeiting their right to address the Mayor and City Council.

Rule 3. The presiding officer may request that a member of the public providing comment audibly state into the microphone, if one is present, his or her name and address before beginning
comment. If that person is representing a group or organization the presiding officer may request that the speaker identify that group or organization, including that group or organization' s Address.

Rule 4. Notwithstanding the provisions of Rule 2 and 3 above, a person shall not be required to provide their name or address as a condition of speaking.

Mayor and City Council of the City of San Bernardino Page 10 Rule 5. Time Limits:

5.01 Each member of the public shall have a reasonable time, not to exceed three ( 3) minutes per meeting, to address items on the agenda and items not on the agenda but within the subject matter jurisdiction of the Mayor and City Council.

5.02 Notwithstanding the time limits set forth in subsection 5. 01 above, any member of the public desiring to provide public testimony at a public hearing shall have a reasonable time, not to exceed ( 3) minutes, to provide testimony during each public hearing.

Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A threeminute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to "share" his/her three minutes with any other member of the public.

Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made.

The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code.

Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed.

Mayor and City Council of the City of San Bernardino Page 11 ALTERNATE MEETING VIEWING METHOD:

If there are any technicalissues withthelivestream orrecordingfrom the main agendaportalor if you requirean optionwith ClosedCaptioning,you may view themeetingfrom thefollowinglocation (TV3). https://reflectsanbernardino.cablecast.tv/CablecastPublicSite/watch/1?channel=6

PUBLIC COMMENT OPTIONS
Please use ONE of the following options to provide a public comment:

Written comments can be emailed to [email protected]. Written public comments received up to 2:00 p.m. on the day of the meeting (or otherwise indicated on the agenda)will be provided to the Mayor and City council and made part of the meeting record. Written public commentswillnot be read aloudbycitystaff. Written correspondence canbe accessedby the publiconline at tinyurl.com/agendabackup .

Attendthe meeting in person and fill out a speaker slip. Please note that the meeting Chair decides the cutoff time for public comment, and the time may vary per meeting. If you wish to submit your speaker slip in advance of the meeting, please submit your request to speak using the form on the followingpage: tinyurl.com/mccpubliccomments. Anyrequests to speak submitted electronically after the 2:00 p.m. deadline will not be accepted.

Please note: messages submitted via email and this page are only monitored from the publicationof the final agendauntil the deadline to submit public comments. Please contact theCity Clerk at 909-384-5002 or [email protected] assistance outside of this timeframe. Written correspondence submittedafter the deadlinewill be providedto the Mayorand CityCouncilat thefollowing regular meeting.

MEETING TIME
NOTE: Pursuant to Resolution No.2024-029,adoptedby theMayorand City Council on February 21, 2024:
“Section 3. All meetings are scheduled to terminate at 10:00P.M. on the same day it began.At 9:00 P.M.,the Mayorand City Council shall determine which of the remaining agenda items can be considered and acted upon prior to 10:00P.M.and will continue all other items on which additional time is required until a future Mayor and City Council meeting. Amajority vote of the Council is required to extend a meeting beyond 10:00P.M.to discuss specified items.” ,yygg
considered and acted upon prior to 10:00 P.M. and will continue all other items on which additional time is required until a future Mayor and City Council meeting. A majority vote of the Council is required to extend a meeting beyond 10:00 P.M. to discuss specified items.” Mayor and City Council of the City of San Bernardino Page 12 This page intentionally left blank.

CLOSED SESSION
City of San Bernardino
Request for Council Action
Date: March 19, 2025
Honorable Mayor and City Council Members
Sonia Carvalho, City Attorney
City Attorney
Closed Session
To:

From:

Department:

Subject:

A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1):
i) Jose Alvarado, et al. v. City of San Bernardino, et al., United States District Court Case No. 5:24-cv-00088
ii) Dennis Houser v. City of San Bernardino, Workers’ Compensation Case No.

ADJ15488028
iii) Thomas Shank v. City of San Bernardino, Workers’ Compensation Case No.

ADJ15724149; ADJ15724051; ADJ16655896; ADJ15724050; ADJ13174538; ADH11237727; ADJ39990589; ADJ1710432; ADJ39990589; ADJ153836; AND ADJ4205384
iv) Sherry, Vasilis v. City of San Bernardino, Workers’ Compensation Case No.

ADJ18537573; ADJ18191924; ADJ14378758; and ADJ7270414
v) Michael Paluzzi v. City of San Bernardino, Workers’ Compensation Case No.

ADJ16428063; and ADJ16428064
vi) Ronel Newton v. City of San Bernardino, Workers’ Compensation Case No.

ADJ16142895; and ADJ12116625
vii) City of San Bernardino v. Arrowhead Lodge No. 896 et al., San Bernardino Superior Court, Case No. CIVSB2221041.

B) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION SIGNIFICANT EXPOSURE TO LITIGATION (Pursuant to Government Code Section 54956.9(d)(2)): Two (2) Cases
C) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): One (1) Packet Page. 13
Case
D) PUBLIC EMPLOYEE PERFORMANCE EVALUATION PROCESS (Pursuant to Government Code Section 54957)
Titles: City Attorney, City Clerk
E) PUBLIC EMPLOYEE APPOINTMENT (Pursuant to Government Code Section 54957)
Titles: City Manager (Meet with Recruiter)
Appointment of Interim City Clerk
F) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6):

PRESENTATIONS
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Helen Tran, Mayor
Department: Mayor's Office
Subject: Proclamation for National Senior Games Week in the City of San Bernardino – March 17-23, 2025 (All Wards)

Packet Page. 15

A PROCLAMATION OF

THE MAYOR AND CITY COUNCIL
PROCLAIMING MARCH 17 – 23, 2025, AS

NATIONAL SENIOR GAMES WEEK

IN THE CITY OF SAN BERNARDINO
WHEREAS, active aging and the promotion of health and well-being for our senior citizens are vital components of a thriving community; and
WHEREAS, the National Senior Games provides an inspiring platform for individuals aged 50 and older to engage in athletic competition, foster social connections, and showcase the benefits of lifelong physical activity; and
WHEREAS, the 2025 National Senior Games will be held in Des Moines, Iowa, from July 24th to August 4th, bringing together senior athletes from across the nation to celebrate fitness, competition, and camaraderie; and
WHEREAS, every year, over 100,000 individuals aged 50 and older participate in Senior Games events nationwide, challenging ageist stereotypes and demonstrating the physical, mental, and social benefits of active aging; and
WHEREAS, Senior Games Month is a time to recognize and celebrate the dedication, sportsmanship, and achievements of senior athletes who inspire our community to stay active and healthy; and
WHEREAS, during National Senior Games Week, observed from March 17 - 23, 2025, communities across the nation will highlight the importance of Senior Games and encourage more older adults to engage in sports and physical activities suitable to their abilities; NOW, THEREFORE, BE IT RESOLVED THAT the Mayor and the City Council of San Bernardino do hereby proclaim March 17 – 23, 2025, as National Senior Games Week in the City of San Bernardino and encourage all residents to celebrate the achievements of our senior athletes and consider participating in the upcoming National Senior Games.

WE URGE THE COMMUNITY TO:

Join in the nationwide celebration of Senior Games athletes and events from March 17-23, 2025.

Support and cheer on our local senior athletes representing our community at the National Senior Games.

Promote active aging by encouraging individuals aged 50 and older to stay physically active and explore sports opportunities.

Spread awareness about the benefits of Senior Games and encourage participation in future events.

Recognize and honor the dedication, perseverance, and sportsmanship of senior athletes.

Presented on the 19th day of March 2025
Packet Page. 16

PRESENTATIONS
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Council Member Dr. Treasure Ortiz
Department: Council Office
Subject: Certificate of Recognition for Aquinas Boys Basketball Division 3A CIF Champions (Ward 4)
Packet Page. 17

PRESENTATIONS
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Kris Watson, Director of Animal Services
Department: Animal Services
Subject: Animal Services Department Projects and Programs Update (All Wards)
Packet Page. 18

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
Gabriel Elliott, Director of Community Development &
Housing
Department: Community Development & Housing
Subject: Approval to allocate $600,000 from the General Fund for a Rapid Rehousing Program in partnership with the
Salvation Army (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve Resolution No. 2025-265 to amend the FY 2024/2025 Operating Budget, authorizing the allocation of $600,000 from the General Fund’s fund balance for Rapid Rehousing Services.

2. Approve The Salvation Army as the single-source provider for Rapid Rehousing Services, based on their expertise and established infrastructure.

Executive Summary
Packet Page. 19
The City of San Bernardino proposes allocating $600,000 from the City’s General Fund to establish a Rapid Rehousing Program in partnership with the Salvation Army. Rapid Rehousing will provide financial assistance, housing navigation, and case management services to at least 70 households experiencing homelessness. The initiative aims to accelerate housing transitions and reduce the risk of individuals and families returning to homelessness by leveraging the Salvation Army's expertise and established infrastructure. The program aligns with the City’s strategic objectives to combat homelessness, decrease reliance on temporary shelter programs, and support long-term housing stability for unhoused residents.

Background
On September 4, 2024, the Mayor and City Council reaffirmed the Homelessness State of Emergency, emphasizing the City’s commitment to addressing homelessness through innovative and sustainable strategies. Subsequently, the City’s Motel Voucher Program experienced increased participation due to the resumption of encampment clean-ups, further straining temporary housing resources.

Staff have identified Rapid Rehousing as a best practice approach and critical intervention tool to transition individuals and families from motels into permanent housing. The Salvation Army was selected as the sole provider based on its proven track record, existing outreach framework, and ability to deliver immediate results under the proposed $600,000 allocation.

The funding allocation and service agreement will enable The Salvation Army to:
• Provide direct financial assistance, including rental support, utility deposits, and security deposits.
• Deliver case management services focused on housing navigation and selfsufficiency planning. • Maintain compliance with federal, state, and local regulations through robust reporting and performance tracking systems.

Discussion
The City is establishing a new Rapid Rehousing (RRH) Program to address the urgent need for permanent housing solutions and alleviate pressure on the City’s homelessness resources. This citywide initiative is designed to enhance pathways to stable housing for unhoused residents by providing rental assistance and supportive services that promote long-term stability.

This Rapid Rehousing initiative will be solely funded by General Funds in the amount of $600,000. Rapid rehousing represents a cost-effective, evidence-based approach to transitioning individuals and families experiencing homelessness into permanent housing while providing critical support services to ensure long-term stability.

The Salvation Army’s current role as the City’s sole homeless outreach provider uniquely positions it to implement this program effectively and efficiently. Its established expertise in Rapid Rehousing, demonstrated through successful partnerships in cities such as San Diego, Moreno Valley, and Redlands, ensures seamless integration with the City’s Packet Page. 20
existing homeless outreach services.

Additionally, their familiarity with the local unhoused population, particularly individuals engaged in the City’s Motel Voucher Program, equips The Salvation Army to quickly identify and support eligible participants. Without leveraging The Salvation Army’s Packet Page. 21
established framework, individuals would face prolonged stays in motels, reduce available resources for new participants, and exacerbate the City’s homelessness crisis.

The $600,000 in Rapid Rehousing Funds will go towards program administration and implementation covering the following core components:

Administration (10% of Budget)
Administrative Costs
o Eligible Activities: Allowable costs for program administration, capped at 10% of the total program budget.
o Required Documentation: Itemized records or invoices for administrative expenditures.
o Billing Frequency: Monthly
Case Management and Support Services:
o Housing navigation, including landlord engagement and addressing rental barriers.
o Individualized self-sufficiency planning to support long-term housing retention.

Program Metrics and Outcomes:
o Serve at least 70 households, prioritizing individuals and families currently residing in motels or experiencing literal homelessness. o Achieve a minimum 85% success rate in transitioning participants to permanent housing.
o Reduce recidivism rates through targeted supportive services.

Reconciliation Reporting
o Required Reporting:
▪ Services delivered during the billing period, including housing placements, financial assistance, and supportive services provided to participants.
▪ Expenditures are categorized by eligible activities, such as rent, security deposits, and utility assistance.

Implementation (90% of Budget)
Rental Assistance:
o Eligible Activities: Payments for rent on behalf of participants transitioning to permanent housing for up to six months.
o Required Documentation: Copies of rental agreements, payment receipts, or proof of direct payments to landlords.
o Billing Frequency: Monthly
o Funding to assist participants in meeting eligibility requirements for rental agreements
Security Deposits
o Eligible Activities: One-time payments for security deposits to secure housing. o Required Documentation: Proof of payment for deposits (e.g., receipts, transaction records).

Packet Page. 22
o Billing Frequency: Monthly.

Utility Assistance
o Eligible Activities: Payments for utility deposits.
o Required Documentation: Invoices or payment receipts from utility companies. o Billing Frequency: Monthly
Rapid rehousing will only be utilized for those with income (i.e., work, entitlements, pensions, VA benefits) who can sustain themselves after rapid rehousing services have ended. A Single Source Justification substantiated the Salvation Army’s expertise and capacity to implement this program. Immediate action is essential to meet the City’s obligations under the Homelessness State of Emergency and maintain motel room availability for new participants. If approved by the Council, this program is set to terminate on December 31, 2026, which is the sunset of the ARPA funding used to pay the Salvation Army for Homeless Street Outreach. If the program proves successful, staff will search for other available funds to renew the program.

The Agreement with The Salvation Army is being brought forward for the Mayor and City Council’s approval in accordance with Section 3.04.010 D.3. of the City’s Municipal Code (Attachment 3) and Section V (e) of the City’s Purchasing Policy (Attachment 4). As outlined in both the Municipal Code and Purchasing Policy, a purchase that is otherwise approved by the action of the Mayor and City Council in a public meeting is exempt from the City’s Purchasing Policy.
2021-2025 Strategic Targets and Goals
This program directly supports Strategic Target No. 3: Improved Quality of Life by reducing homelessness and its associated impacts, enhancing access to permanent housing solutions, and promoting community well-being through targeted service delivery.

Fiscal Impact
This initiative will allocate $600,000 from the General Fund for FY 2024/2025 to support Rapid Rehousing Services, including rental subsidies, supportive services, case management, and administrative costs.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve Resolution No. 2025-265 to amend the FY 2024/2025 Operating Budget, authorizing the allocation of $600,000 from the General Fund, fund balance for Rapid Rehousing Services.

2. Approve The Salvation Army as the single-source provider for Rapid Rehousing Services, based on their expertise and established infrastructure.

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Attachments
Attachment 1 Rapid Rehousing PSA with The Salvation Army Attachment 2 Resolution No. 2025-265
Attachment 3 Municipal Code Chapter 3
Attachment 4 Purchasing Policy
Ward:

All Wards
Synopsis of Previous Council Actions:

February 1, 2023 Mayor and City Council approved a Homelessness State of Emergency Declaration.

December 6, 2023 Mayor and City Council approved a Motel Voucher Program and authorized Professional Service
Agreements with motel operators to provide interim
shelter.

September 4, 2024: The Mayor and City Council reaffirmed the Homelessness State of Emergency, focusing on
addressing homelessness through innovative
strategies and expanding resources.

December 18, 2024 Mayor and City Council approved a Professional Service Agreement with the Salvation Army for
homeless outreach services.
. .

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PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO

AND THE SALVATION ARMY
(RAPID REHOUSING/GENERAL FUND $600K)
This Agreement is made and entered into as of March 19, 2025, by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City”), and The Salvation Army, a California nonprofit corporation with its local place of business at 925 West 10th Street, San Bernardino, CA (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.”

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

RAPID REHOUSING SERVICES (hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

D. The Consultant agrees to assist individuals and families experiencing homelessness or at risk of homelessness in accessing appropriate supportive services, including but not limited to: rapid rehousing assistance, relocation and stabilization services, temporary and permanent housing solutions, and other essential services that promote housing stability and independent living. The Consultant will also facilitate connections to available federal, state, local, and private resources for eligible individuals within the City of San Bernardino, in accordance with the Scope of Work attached hereto as Exhibit A and incorporated herein by this reference.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

AGREEMENT

1. Incorporation of Recitals and Effective Date. The recitals above are true and correct and are hereby incorporated herein by this reference. The Effective Date shall be that date after this Agreement is both approved by the City Council and fully executed by the Parties.

2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A” and incorporated herein by this Packet Page. 25
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reference.

3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement.

4. Compensation.
a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B” attached hereto and incorporated herein by this reference.
b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of Six Hundred Thousand Dollars ($600,000.) This amount is to cover all related costs, and the City will not pay any additional fees or expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to the City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time provided for completion of tasks. Reimbursement shall only be provided for those expenses identified in Exhibit “B”. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.
c. The reimbursement process for the Rapid Rehousing program is designed to ensure compliance with federal and state regulations, transparency in the use of allocated funds, and alignment with the approved budget categories, as outlined in 2 CFR Part 200. All expenses must adhere to the federal principles of allowability (§200.403), allocability (§200.405), and reasonableness (§200.404), ensuring that costs are necessary, directly benefit the program, and are justifiable based on prevailing market conditions.

5. Method of Disbursement.
a. Requests for disbursements by Consultant shall be made by Consultant sending to the City, not more frequently than monthly, commencing on or before the 10th day of each month, a detailed invoice in a form specified and approved by the City, attached hereto and incorporated herein as Exhibit “C”.

Such schedule may be modified with the approval of the City. The City shall distribute funds in monthly installments, as requested by Consultant, in arrears, in order to compensate Consultant for the provision of Consultant’s services under this Agreement.

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b. Consultant has the ability to adjust line-item amounts in the Budget with the prior written approval of the City’s Director of the Community Development and Housing Department, so long as the total budget amount does not increase.

3. Payment
a. Payment is subject to the receipt and approval of such invoices and monthly activity reports, as hereinafter more fully set forth below under Level of Accomplishments and Homeless Management Information System, with the final payment being due and payable upon the receipt of an invoice and report for the last month of the term of this AGREEMENT and the City’s approval thereof, which invoice and report shall be due on or before the 15th day of the month following the expiration of the term of this AGREEMENT. The City shall pay such invoices within forty-five (45) days after receipt thereof, provided the City is satisfied that such expenses have been incurred within the scope of this AGREEMENT and that the Consultant is in compliance with the terms and conditions of this AGREEMENT. The forty-five (45) day period will discontinue if the reimbursement request is determined to be incomplete and the forty-five timeline will restart once the remaining required elements have been submitted. b. Failure to provide any of the required documentation and reporting will cause the City to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the City.

4. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
a. Adjustments. No retroactive price adjustments will be considered.

Additionally, no price increases will be permitted during the first year of this Agreement, unless agreed to by City and Consultant in writing, and approved by the City Council.

5. Term. This Agreement shall commence on the Effective Date and continue through December 31, 2026.

6. Maintenance of Records; Audits.
a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date.

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b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.

7. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term.

8. Levels of Accomplishment – Goals and Performance Measures The Consultant shall be responsible for accomplishing the levels of performance as set forth in the Scope of Work (Exhibit A) and report such measures monthly to the City. If the Consultant estimates such goals will not be met, the Consultant is to contact the City, at which time the City will determine if any adjustments to the agreement is appropriate.

9. General Conditions.
a. The Consultant, in accordance with 24 CFR § 576.400(f), must ensure that data on all persons served and all activities are entered into the applicable community-wide HMIS in the area in which those persons and activities are located, or with the express knowledge and written consent of the CITY, a comparable database, in accordance with HUD’s standards on participation, data collection, and reporting under a local HMIS.

1. HMIS Agency Agreement. The Consultant shall have an agreement in place with the HMIS lead agency to participate in the regionally established HMIS system. A copy of the Consultant agreement with the HMIS lead agency shall be delivered to the CITY. In the case of Domestic Violence service providers or other agencies prohibited from entering data into HMIS, documentation from the HMIS lead agency certifying that the Consultant is using a comparable database shall be delivered to the CITY. The "HMIS lead agency" is the County of San Bernardino Community Development and Housing Agency, which is located at 385 N. Arrowhead Ave., 3rd Floor, San Bernardino, California (909-387-4700).

2. HMIS Interagency Data Sharing Agreement. The Consultant shall enter into an Interagency Data Sharing Agreement with the HMIS Lead Agency where the Consultant agrees to share HMIS data with other funded agencies regarding clients that are served, unless prohibited by law. A copy of such agreement shall be delivered to the CITY.

3. HMIS Data Input. Consultant must enter data directly into the HMIS system and adhere to all implementation guidelines developed under Packet Page. 28
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the Continuum of Care. HMIS Participation includes, but is not limited to, the input of all programmatic and client data and the generation of all mandated monthly, quarterly and close-out reports. Subrecipient must input client data no more than forty-eight (48) hours after the date of program entry. Services rendered to clients must be entered into HMIS within forty-eight (48) hours from date of services. All clients who exit the program must have updated status in HMIS within forty-eight (48) hours of the actual exit date.
b. The Consultant shall conduct initial evaluations to determine the eligibility of individuals or families for homelessness assistance and the types and amounts of assistance needed to regain stability in permanent housing. These evaluations must comply with centralized or coordinated assessment requirements, the CITY's written standards, and relevant County, State, or Federal guidelines for homeless assistance programs. Re-evaluations for homelessness prevention and rapid rehousing assistance must also adhere to these standards. Evaluations and re-evaluations must be documented in accordance with the CITY’s Homelessness Assistance Written Standards and broader state and federal policies.
c. If a program participant violates program requirements, the Consultant may terminate the assistance in accordance with a formal process established by the CONSULTANT that recognizes the rights of individuals affected, in accordance with 24 CFR § 576.402.
d. The Consultant certifies that shelters and housing supported by homelessness-related funds and utilized by beneficiaries will conform to all applicable County, State, and Federal standards, including those established under 24 CFR § 576.403 and other relevant policies.

10. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Consultant’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 services); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety. b. Should a Force Majeure Event occur, the non-performing Party shall, Packet Page. 29
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within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay.
c. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

11. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

12. Standard of Care. Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. Consultant’s performance shall conform in all material respects to the requirements of the Scope of Work and meet the Key Performance Indicators, attached hereto as Exhibit “B” and incorporated herein by this reference.

13. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City.

14. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business.

15. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall Packet Page. 30
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constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

19. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.

20. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured
The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City.
(ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:

Insurance Services Office Commercial General Liability
coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
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(1) Premises/Operations Liability
(2) Products/Completed Operations Liability
(3) Aggregate Limits that Apply per Project
(4) Explosion, Collapse and Underground (UCX)
exclusion deleted
(5) Contractual Liability with respect to this Contract (6) Broad Form Property Damage
(7) Independent Consultants Coverage
(i) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(ii) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(iii) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured.
c. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. d. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.

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(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. b. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. c. Privacy/Network Security (Cyber)
At all times during the performance of the work under this Agreement, the Consultant shall maintain privacy/network security insurance for: (1) privacy breaches, (2) system breaches, (3) denial or loss of service, and the (4) introduction, implantation or spread of malicious software code, in a form and with insurance companies acceptable to the City.

Agreement:
d. Minimum Policy Limits Required
(i) The following insurance limits are required for the Combined Single Limit
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Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal
injury, and property damage
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage
Employer’s Liability $1,000,000 per occurrence
Professional Liability $1,000,000 per claim and aggregate (errors and omissions)
Cyber Liability $250,000 per occurrence and
aggregate
(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement.
e. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. f. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance Packet Page. 34
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and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. g. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or
companies with a current A.M. Best's rating of no less than A: VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
h. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is Packet Page. 35
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canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. i. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

16. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project, or this Agreement, including without limitation the payment of all damages, expert witness fees, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. Consultant’s indemnification obligation shall survive the expiration or earlier termination of this Agreement. b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to the extent which the Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant in the performance of the services or this Agreement, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

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17. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

18. Verification of Employment Eligibility. By executing this Agreement, Consultant 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 subconsultants and sub-subconsultants to comply with the same.

19. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California.

20. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days’ written notice to Consultant.

In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the Packet Page. 37
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event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.

26. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement.

27. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction.

28. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect.

29. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

30. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.

31. Organization. Consultant shall assign Steven Pinckney as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.

32. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above.

33. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof:

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CITY:

City of San Bernardino
Vanir Tower
Attention: Cassandra Searcy
Deputy Director of Housing & Homelessness
290 North D Street
San Bernardino, CA 92401
With Copy To:

City of San Bernardino
Vanir Tower
Attention: City Attorney
290 North D Street
San Bernardino, CA 92401
CONSULTANT:

The Salvation Army San Bernardino
Attention: Steven Pinckney
Business Administrator
925 West 10th Street, San
Bernardino, CA, 92411

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21. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.

22. Equal Opportunity Employment. Consultant 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 non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

23. Entire Agreement. This Agreement, including all exhibits attached hereto, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement.

24. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect.

25. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

26. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance.

No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

27. Time of Essence. Time is of the essence for each and every provision of this Agreement.

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28. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

29. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. The City Manager is authorized to execute any amendments in order to extend the term and/or amend the scope of this Agreement. Any proposed amendments to increase the amount of compensation under this Agreement must be approved by the City Council.

30. City’s Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.

31. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

32. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement.

33. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement.

34. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO

AND THE SALVATION ARMY
(RAPID REHOUSING SERVICES)
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF SAN BERNARDINO THE SALVATION ARMY
APPROVED BY:

Bill Gallardo
Interim City Manager
Date:

ATTESTED BY:

Signature
Steven Pinckney
Name
Business Administrator
Title
Date:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
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EXHIBIT A

SCOPE OF SERVICES
The Salvation Army Rapid Re-Housing (RRH) Program
Program Overview
The Salvation Army’s Rapid Re-Housing (RRH) Program is a critical intervention designed to address and mitigate homelessness within the City of San Bernardino. The program’s core mission is to provide immediate, targeted support to individuals and families, enabling them to transition into permanent housing while fostering long-term stability. By integrating financial assistance, intensive case management, and tailored supportive services, the RRH Program not only reduces homelessness but also prevents recidivism by addressing the root causes of instability.

The program operates in alignment with the City of San Bernardino’s broader homelessness initiatives, ensuring that resources are leveraged effectively to create a seamless and sustainable pathway to housing solutions.

Core Program Components

1. Financial Assistance
The program offers direct financial support to eligible participants to facilitate their transition into stable housing. Assistance is provided on a case-by-case basis, ensuring flexibility to meet diverse needs while adhering to program guidelines.

Financial assistance may include:
o Utility Deposits or Monthly Assistance: Payments are made directly to utility providers to establish or maintain essential services, removing barriers to housing access.
o Security Deposits and Move-In Costs: One-time payments are issued directly to landlords to cover upfront costs associated with securing housing. o Monthly Rental Support: Rent payments are provided directly to landlords to assist participants in maintaining housing stability during their initial transition period. Financial assistance is offered on a flexible basis, ranging from one (1) to six (6) months, depending on the individual needs and circumstances of each participant.

2. Case Management and Support Services
The RRH Program includes robust case management and supportive services to address both immediate and long-term housing stability needs. Services include:

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c. Housing Navigation: Assist participants in identifying and securing suitable, affordable housing options. This includes engaging landlords and addressing barriers such as credit history or prior evictions. d. Self-Sufficiency Planning: Working closely with participants to develop individualized, long-term plans for financial independence and housing retention. This includes employment support, financial literacy training, and access to other supportive resources.

1. Program Integration
The RRH Program is designed to operate in close alignment with the City of San Bernardino’s existing housing and homelessness initiatives. This integration ensures a coordinated approach to homelessness prevention and reduction. Key integration strategies include:
o Leveraging partnerships with local stakeholders, including landlords, service providers, and community organizations.
o Utilizing the Homeless Management Information System (HMIS) to track outcomes, ensure data-driven decision-making, and avoid duplication of services.
o Adopting a Housing First approach, focusing on immediate housing placement without preconditions, followed by supportive services tailored to individual needs.

Metrics and Outcomes

1. Projected Reach
The RRH Program aims to assist at least 70 households within the City of San Bernardino, prioritizing individuals and families experiencing literal homelessness or fleeing unsafe living conditions.

2. Average Length of Support
The duration of financial and supportive assistance is designed to be flexible, adapting to the unique needs of each participant. While assistance typically spans a maximum of six (6) months, the program accommodates variations based on participant progress and specific barriers to stability.

3. Program Success Metrics
o Percentage of participants who transition to permanent housing within the support period.
o Percentage of households maintaining permanent housing after program exit.

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e. Reduction in barriers to housing stability as identified during case management.

Regular performance reviews and reporting through HMIS ensure accountability, transparency, and continuous improvement.

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EXHIBIT B

SCHEDULE OF CHARGES
The Rapid Re-Housing program, supported by a $600,000 allocation, will strictly adhere to all applicable federal laws, statutes, and regulations, including but not limited to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). The approved budget categories and rate schedule are structured to ensure the effective and efficient allocation of resources while maintaining full compliance with federal regulatory requirements.

All expenses must align proportionally with the approved rate schedule and budget categories to maintain compliance with federal guidelines and the specific terms of this agreement. This ensures funds are utilized effectively for eligible activities supporting Rapid Re-Housing outcomes.

Approved Budget Categories and Rate Schedule

1. Rental Assistance
o Eligible Activities: Payments for rent on behalf of participants transitioning to permanent housing.
o Required Documentation: Copies of rental agreements, payment receipts, or proof of direct payments to landlords.
o Billing Frequency: Monthly.

2. Security Deposits
o Eligible Activities: One-time payments for security deposits to secure housing.
o Required Documentation: Proof of payment for deposits (e.g., receipts, transaction records).
o Billing Frequency: Monthly.

3. Utility Assistance
o Eligible Activities: Payments for utility deposits.
o Required Documentation: Invoices or payment receipts from utility companies.
o Billing Frequency: Monthly.

4. Administrative Costs
o Eligible Activities: Allowable costs for program administration, capped at 10% of the total program budget.
o Required Documentation: Itemized records or invoices for administrative expenditures.
o Billing Frequency: Monthly.

5. Reconciliation Reporting
o Required Reporting:
▪ Services delivered during the billing period, including housing placements, financial assistance, and supportive services provided to participants.
▪ Expenditures categorized by eligible activities, such as rent, security deposits, and utility assistance.

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(i) Cumulative grant expenditures to date, demonstrating alignment with the approved budget and rate schedule.
j. Submission Requirements:
(i) Must be submitted in the format specified by the grantor agency. (ii) Include a certification of accuracy and compliance as required under §200.415.
(iii) Demonstrate adherence to all State and Federal policies governing Rapid Re-Housing programs.

Federal and State Cost Principles Compliance
All expenditures must adhere to the following principles under 2 CFR Part 200:
• Allowable Costs (§200.403): Costs must be necessary, reasonable, and explicitly permitted under the grant agreement and applicable State and Federal policies for Rapid Re-Housing.
• Allocable Costs (§200.405): Expenditures must directly support the Rapid ReHousing program’s objectives and be proportional to the benefits received. • Reasonable Costs (§200.404): Costs must reflect prudent judgment, costeffectiveness, and alignment with program goals.

Reconciliation Reporting
To ensure transparency and compliance, monthly invoices must include a Reconciliation Report detailing:
• Services delivered during the billing period, including housing placements, financial assistance, and supportive services provided to participants. • Expenditures categorized by eligible activities, such as rent, security deposits, and utility assistance.
• Cumulative grant expenditures to date, demonstrating alignment with the approved budget and rate schedule.

Submission Requirements:

All invoices and reconciliation reports must:
• Be submitted in the format specified by the grantor agency. • Include a certification of accuracy and compliance, as required under §200.415. • Demonstrate adherence to all State and Federal policies governing Rapid ReHousing programs.

Documentation and Retention Requirements
To maintain accountability and prepare for audits, the following documentation requirements will be enforced:

1. Retention Period:

All financial records, supporting documentation, and program reports must be retained for a minimum of 3-5 years, in accordance with the grant terms and applicable regulations.

2. Internal Compliance Reviews:

Conduct periodic internal reviews to ensure adherence to 2 CFR Part 200, relevant Packet Page. 47
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State policies, and Rapid Re-Housing program requirements.

3. Audit Preparedness:

Maintain all records in an organized and accessible manner to facilitate potential audits and ensure full compliance with State and Federal guidelines.

The Rapid Rehousing Program is designed to provide critical assistance to individuals experiencing homelessness by facilitating their transition into stable, permanent housing.

The program emphasizes flexibility to accommodate the unique challenges and circumstances faced by the clients it serves, acknowledging that each case requires tailored solutions to ensure successful placement and sustained housing stability. By covering essential costs such as rental assistance, security deposits, and utility support, the program mitigates immediate financial barriers that often prevent individuals from exiting homelessness.

Moreover, the inclusion of administrative costs, capped at 10%, ensures efficient program management while maintaining accountability and compliance with funding requirements.

The program's Housing First approach prioritizes immediate housing placement without preconditions, recognizing the foundational role of stable housing in addressing the broader issues associated with homelessness. This flexibility and adaptability are key to meeting the needs of diverse clients and achieving the overarching goal of long-term housing stability.

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EXHIBIT C

REIMBURSEMENT REQUEST
Exhibit C serves as the official reimbursement request framework for the Rapid Rehousing Program for FY 2024-2025. It is designed to ensure compliance with federal, state, and local regulations while maintaining alignment with the approved budget categories outlined in Exhibit B (Rate Schedule). The exhibit includes the Reimbursement Coversheet, which facilitates accurate monthly billing, detailed documentation, and transparent financial reporting, ensuring that all reimbursement requests meet the program’s standards.

Reimbursement Coversheet
Each reimbursement request must include a completed reimbursement cover sheet containing the following key details:
• Consultant Name: The legal name of the organization requesting reimbursement. • Agreement Number: The unique contract number assigned by the CITY. • Reporting Period (Month/Year): The specific period for which reimbursement is being requested.
• Invoice Number: A unique identifier for tracking the reimbursement request. • Total Amount Requested: The total amount being requested for reimbursement. • Certification Statement: Signed by an authorized representative, certifying that all submitted expenses comply with the agreement terms and federal regulations.

The Reimbursement Coversheet Template is included as part of this exhibit. Additionally, the CITY will provide the Consultant with an Excel sheet preformatted with the required fields. This Excel sheet should be used to document the requested reimbursement details comprehensively and electronically.

Monthly Billing and Documentation Requirements
Reimbursement requests must be submitted on a monthly basis and must include supporting documentation for all eligible activities. The documentation requirements are as follows:

1. Supportive Services
o Receipts, invoices, or contracts for services provided.

2. Financial Assistance
o Rental Assistance: Copies of rental agreements, payment receipts, or proof of direct payments to landlords.
o Security Deposits: Proof of payment for deposits (e.g., receipts, transaction records).
o Utility Assistance: Invoices or payment receipts from utility companies.

3. Administrative Costs
o Itemized records or invoices for administrative expenditures, ensuring adherence to the 10% cap on program administration.

4. Reconciliation Reporting
o Documentation must include a detailed Reconciliation Report that outlines:
▪ Services delivered during the billing period, including housing placements, financial assistance, and supportive services.

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(ii) Expenditures categorized by eligible activities to ensure alignment with the approved budget.
(iii) Cumulative grant expenditures to date to demonstrate compliance with federal and state guidelines.

Submission Requirements
• Reimbursement requests and accompanying documentation must be submitted in the format specified by the grantor agency.
• Each submission must include a certification of accuracy and compliance, as required under §200.415 of the Uniform Administrative Requirements.

All submitted expenses must adhere to the budget categories outlined in Exhibit B and must include detailed supporting evidence such as payroll records, receipts, invoices, and other relevant documentation.

Review and Approval Process
All reimbursement requests will be subject to review by the CITY to ensure accuracy, alignment with budget categories, and compliance with program guidelines. Incomplete or noncompliant submissions may result in delays or denial of reimbursement. It is the Consultant’s responsibility to address any deficiencies in the submission promptly.

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CITY OF SAN BERNARDINO
RAPID REHOUSING PROGRAM FISCAL YEAR 2024-2025

SUBGRANTEE PAYMENT REQUEST
Agency Name: Date: Address: Phone: 909-888-4880
Invoice No.: Purchase Order: Period Covered: Account #
Invoice Amount:

APPROVED FUNDING BUDGET AMOUNT (AWARDED)

CURRENT AMOUNT REQUESTED FOR REIMBURSEMENT

TOTAL REQUESTED

TO DATE - INCL CURRENT
REMAINING BALANCE $ 600,000.00 $ - $ 600,000.00
$ - $ - $ - $ -
$ 600,000.00 $ - $ - $ - $ 600,000.00 Rounding Error -
Signature of Preparer Email Date Print Name of Authorized Supervisor, Executive Director, or Board Member Signature of Authorized Supervisor, Executive Director, or Board Member Date For City Use Only: Date Invoice Received Date Reviewed #1 Date Invoice Revised Date Reviewed #2 Review by: Date Reviewed - Final Invoice Approved by: Invoice Amount Approved
The undersigned herby certified that the expenditures identified on the Subgrantee Payment Request are true and correct, and that said expenditures were incurred and paid within period stated on this invoice, in accordance with the agreement identified herein. Evidence of all payments (bills and/or receipts and check copies) for each of the expenditures listed is attached hereto.

TOTAL PAYMENT REQUEST THIS INVOICE $ - TOTAL

THE SALVATION ARMY
925 W. 10TH STREET SAN BERNARDINO, CA 92411
ELIGIBLE ACTIVITY Rapid Rehousing and Supportive Services Packet Page. 51
Resolution No. 2025-265
Resolution No. 2025-265
March 19, 2025

Page 1 of 3 ends

RESOLUTION NO. 2025-265

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO AMEND THE
FISCAL YEAR 2024/2025 OPERATING BUDGET AND
ALLOCATE $600,000 IN GENERAL FUNDS TO BE USED

FOR RAPID REHOUSING
WHEREAS, San Bernardino Municipal Code Section 2.46.050(A) designates the City Manager as the Director of Emergency Services ("Director"); and WHEREAS, in conjunction with the State's directives to combat homelessness and address the housing crisis, the City of San Bernardino ("City") has designated significant resources to address homelessness in the City, but the threat to life and property remains at stake beyond the control of the services, personnel, equipment, and facilities of this City, requiring the combined forces of other political subdivisions to combat this crisis; and WHEREAS, the City has, at any given time, approximately 1,417 people experiencing homelessness Citywide; and
WHEREAS, the City has established homeless outreach services to assist unhoused residents with comprehensive services designed to connect individuals to appropriate resources and services; and
WHEREAS, the City has established a Motel Voucher Program to provide interim housing for unhoused residents to safely recover and connect to community resources; and WHEREAS, the City would like to expand its homeless outreach to include Rapid Rehousing, which would assist those who have income but are experiencing homelessness and residing in shelters or motels with financial assistance associated with the procurement of housing.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Mayor and City Council hereby authorize the Director of Finance and Management Services to amend the FY 2024/2025 Operating Budget and allocate General Funds for Rapid Rehousing in the amount not exceeding $600,000.

SECTION 3. CEQA. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no Packet Page. 52
Resolution No. 2025-265
Resolution No. 2025-265
March 19, 2025

Page 2 of 3 ends

possibility that the activity in question may significantly affect the environment, the activity is not subject to CEQA.

SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 5. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 19th day of March 2025.

Helen Tran, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney
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Resolution No. 2025-265
Resolution No. 2025-265
March 19, 2025

Page 3 of 3 ends

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2025-265, adopted at a regular meeting held on the 19th day of March 2025 by the following vote:

Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
KNAUS _____ _____ _______ _______
FLORES _____ _____ _______ _______
ORTIZ _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino on this 19th day of March 2025.

Genoveva Rocha, CMC, City Clerk
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager;
Kenneth Chapa, Director of Economic Development
Department: Economic Development
Subject: Right of Entry Agreement with BNSF Railway Company (Ward 1 and 6)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Right of Entry Agreement with BNSF Railway Company; and authorize the City Manager to execute the Right of Entry Agreement in order to carry out certain maintenance and improvement obligations related to the BNSF Ono Lead Track Extension Project Completion Agreement.

Executive Summary
The Right of Entry Agreement will allow BNSF Railway Company to enter onto Cityowned property and public right-of-way for the purpose of fulfilling the terms of the Ono Lead Track Extension Project Completion Agreement associated with Real Property Street Vacation No. 15.30-434. The permitted uses will include access to and across the various segments of land to allow for improvements to be completed as well as the temporary storing of construction materials and equipment. The Agreement will automatically terminate three years from the date of commencement.

Background
BNSF Railway Company intends to install a fourth lead track extending BNSF’s San Bernardino Intermodal Facility lead track to the two existing Ono Storage Sidings.

Expanding the storage sidings involves the installation of track components and facilities within and along approximately 4.3 miles of the existing corridor, generally from the BNSF overpass at State Street/University Parkway to the Intermodal Facility at W 5th Street on the south. These storage sidings are used to temporarily store freight cars and trains, allowing for the loading and unloading of cargo while limiting interruption of service from other trains accessing the same line. The City of San Bernardino and BNSF Railway Company memorialized the future improvements Packet Page. 160
associated with Street Vacation 15.30-434 via a Completion Agreement.

On June 1, 2022, the City certified the Environmental Impact Report, while also approving the associated Mitigated Monitoring and Reporting Program. These actions approved Resolution No. 2022-103, also known as Real Property Street Vacation No.

15.30-0434, which vacated portions of “I” and “J” Streets. The Right of Entry Agreement will provide the mechanism for the completion of the required improvements associated with Street Vacation No. 15.30-434; thus, satisfying the terms and conditions of the Completion Agreement.

Discussion
The Lead Track Project is not intended to increase train capacity, but would close the gap between the two existing Ono Storage Sidings, creating a continuous lead track and improving the flow of trains in and out of the San Bernardino Intermodal Facility.

The impacted areas, attached herein as Exhibit A, consist of the following areas:
• T101: Portions of Cajon Blvd south of Medical Center Drive to construct guard rail • T102: Portions of Cajon Blvd south of Mt Vernon Ave to construct guard rails and to install storm drainage
• T103: A portion of the southeast intersection of Cajon Blvd and Highland Ave to install drainage
• T104: A portion along Massachusetts Ave to construct security fencing and storm drainage
• T105: The corner of W 17th Street and N J Street to construct a sound wall • T106: Portions of W Evans Street, W 15th Street, Magnolia Ave West, W 14th Street, and North I Street to install utilities and street realignment • T107: A portion along Baseline Street to construct security fencing and storm drainage
• T108: Portions of W 11th Street to install utilities and street realignment and portions of W Olive Street and W 10th Street to install utilities and street realignment • T109: A portion of W 9th Street to construct security fencing and storm drain trench and a portion of W 8th Street and W 7th Street to install utilities and street realignment
• T110: A portion from W 6th Street through W 5th Street to construct security fencing These improvements are required to fulfill the terms of the Completion Agreement (Exhibit B) associated with the City of San Bernardino Street Vacation No. 15.30-434, also known as the ”I” Street BNSF Ono Lead Track Extension Project, approved by the Mayor and City Council on July 27, 2022, via Resolution No. 2022-103. 2021-2025 Strategic Targets and Goals
Authorizing the Right of Entry Agreement with BNSF Railway Company aligns with Key Target No. 2b: Evaluate operations and performance, investment in resources, technology, and tools to continually improve organizational efficiency and effectiveness. The improvements completed under the terms of the Completion Packet Page. 161
Agreement will provide added safety measures for area residents, improve utility infrastructure, and reduce noise pollution through the installation of sound barrier walls.

Fiscal Impact
There is no General Fund impact associated with this action.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Right of Entry Agreement with BNSF Railway Company; and authorize the City Manager to execute the Right of Entry Agreement in order to carry out certain maintenance and improvement obligations related to the BNSF Ono Lead Track Extension Project Completion Agreement.

Attachments
Attachment 1 - Right of Entry Agreement, Exhibits A & B Attachment 2 - Resolution No. 2022-103 (Street Vacation No. 15.30-434) Ward:

First Ward; Sixth Ward
Synopsis of Previous Council Actions:

June 1, 2022 The Mayor and City Council approved Street Vacation No. 15.30- 434, outlining the Completion Agreement terms associated with the “I” Street BNSF Ono Lead Project Street Vacation.

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
C. Jeannie Fortune, Interim Director of Finance & Management Services
Department: Finance & Management Services
Subject: Approval of Commercial and Payroll Disbursements and Purchase Card Transactions for December 2024
(All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for December 2024.

Executive Summary
This action is to approve the commercial and payroll disbursements. This is regular business of the Mayor and City Council ensuring that the City pays vendors, employees, and the retirement system timely, accurately and with full transparency for the community.

Background
Completed commercial and payroll disbursement registers are submitted to the Mayor and City Council for approval. This happens on a regular basis, typically every meeting for the most recently completed disbursement registers.

The detailed warrant registers are available on the City Website and are updated weekly by the Finance Department. The registers may be accessed by copying the following link into an internet browser:
https://sbcity.org/city_hall/finance/warrant_register
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Discussion
2021-2025 Strategic Targets and Goals
Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Improved Operational & Financial Capacity by creating a framework for spending decisions.

Fiscal Impact
Amounts noted in the disbursement registers have no further fiscal impact. Amounts were paid consistent with existing budget authorization and no further budgetary impact is required.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino approve the commercial and payroll disbursements for December 2024.

Attachments
Attachment 1 Payroll Summary Report for December 2024
Attachment 2 Commercial checks & Payroll Register #30
Attachment 3 Commercial checks & Payroll Register #31
Attachment 4 Commercial checks & Payroll Register #32
Attachment 5 Commercial checks & Payroll Register #33
Attachment 6 Commercial checks & Payroll Register #34
Attachment 7 Commercial checks & Payroll Register #35
Attachment 8 Commercial checks & Payroll Register #36
Attachment 9 Commercial EFT Registers #1730-1733
Attachment 10 Commercial EFT Registers #1734-1743
The following check registers are being presented for approval:

December 5, 2024 2024/25 (Register #30) $2,073,767.13
December 12, 2024 2024/25 (Register #31) $1,884,580.12
December 16, 2024 2024/25 (Register #32) $10,000.00
December 19, 2024 2024/25 (Register #33) $2,822,135.48
December 19, 2024 2024/25 (Register #34) $8,990.00
December 20, 2024 2024/25 (Register #35) $69,708.90
December 20, 2024 2024/25 (Register #36) $22,806.50
Total commercial check demands: $6,891,988.13
The following Electronic Funds Transfer (EFT) registers presented for approval:

December 26, 2024 2024/25 (Register #1730-1733) $10,999,467.00 Dec 6, 2024 - Dec 31, 2024 2024/25 (Register #1734-1743) $2,937,834.26 Total commercial EFT demands: $13,937,301.26
Purchasing Card Charges:

December 2024 $63,816.00
Total Purchasing Card Charges: $63,816.00
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Attachment 11 Purchasing Card Charges for December 2024 Ward:

All Wards
Synopsis of Previous Council Actions:

N/A
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
C. Jeannie Fortune, Interim Director of Finance & Management Services
Department: Finance & Management Services
Subject: Receive and File the City’s Annual Comprehensive Financial Report (ACFR) and Popular Annual
Financial Report (PAFR) for the Year Ended June 30,
2024 (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file City’s Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2024.

Executive Summary
Pursuant to California law, each year, the City has an independent audit conducted of its financial statements and related internal control procedures. The audit for the fiscal year ended June 30, 2024 has been completed and the Annual Financial Report issued by the City’s auditor, Rogers, Anderson, Malody and Scott, LLP (RAMS).

Background
The information in the ACFR is designed to be used by potential investors and rating agencies, and the language throughout is technical, making for dry reading material.

As a result, in an effort to provide the City of San Bernardino community with more transparent and accessible financial information, the Finance department is completing the City’s Popular Annual Financial Report (PAFR) for FY 2023/24. The PAFR is an abbreviated version of the City’s annual report designed to communicate the financial performance of the City more effectively to the community. The objective of the PAFR is to simplify the information in the ACFR and better inform the public about the overall financial condition of the City without the heavy use of technical accounting terms or excessive detail. The FY2023/24 PAFR will be posted to the City’s website in both Spanish and English. Copies will also be available at the libraries.

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Discussion
The ACFR contains three sections:

1. Introductory Section

2. Financial Section
a. Independent Auditor’s Report
b. Management’s Discussion and Analysis
c. Basic Financial Statements and Notes to the Basic Financial Statements d. Required Supplementary Information
e. Combining Financial Statements and Schedules

3. Statistical Section
As the Financial Section comprises the majority of the report, each subsection is detailed below:
a.) Independent Auditor’s Report
The auditor’s opinion for a financial statement is most typically an “Unmodified” or “clean” opinion. This implies two things - 1) the auditors were able to perform all the required tests of the accounts and, 2) the financial statements present fairly, in all material respects, the financial position of the City’s opinion units. For FY2023/24, all of the City’s funds received an Unmodified (“clean”) opinion. b.) Management’s Discussion and Analysis
This section provides a narrative overview and analysis of the basic financial statements and its components. Management’s Discussion and Analysis also discusses financial highlights for the year ended June 30, 2024 for all major funds, General Fund budgetary highlights, and summarized information on capital assets and long-term debt.
c.) Basic Financial Statements
Within the Basic Financial Statement, there are three sections:
i. Government-wide Financial Statements
a. These statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The government-wide financial statements present information about (1) the functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) and (2) activities that are intended to recover all or a significant portion of their costs through user fees and charges (businesstype activities). The governmental activities of the City include general government, public safety, streets, culture and recreation, community Packet Page. 407
development, and community services. The business-type activities of the City predominantly relate to the activity of the Water department. ii. Fund Financial Statements
a. A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
b. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
c. The City maintains various enterprise funds to report the business-type activities of the Water Fund, Sewer Fund, Sewer Collection Fund, and Integrated Waste Fund. The City also maintains various internal service funds, which are an accounting device used to accumulate and allocate costs internally among the City’s various functions.
d. Fiduciary funds account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government-wide financial statements because the resources of those funds are not available to support the City’s programs.
iii. Notes to the Basic Financial Statements
a. The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
d.) Required Supplementary Information (RSI). This section contains budgetary information for the General Fund and other major governmental funds, schedules related to changes in the City’s net pension liability and OPEB liability, and schedules of pension and OPEB contributions.
e.) Combining Financial Statements and Schedules. This section contains combining schedules for the Non-Major Governmental Funds and Internal Service Funds, as well as budget to actual comparisons for all other governmental funds with an adopted budget for FY 2023/24.

In addition to the Annual Comprehensive Financial Report (ACFR), the independent Packet Page. 408
auditor issues other related documents, which are summarized below:
• Audit Overview Letter (Attachment 2)
Discusses the auditor’s responsibilities under Government Auditing Standards and any significant issues encountered during the audit that warrant disclosure.

Although the auditors identified significant risks: management’s override of internal controls over financial reporting, and revenue recognition, these risks are presumptive in most audits. The auditors also noted no matters of management override of controls or deviations from generally accepted accounting principles.

None of the misstatements detected as a result of the audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. • Internal Control & Compliance Report (Attachment 3)
The Internal Control & Compliance Report identifies any material internal control deficiencies that impact the financial statements. The auditors did not identify any deficiencies in internal control that were considered to be material weaknesses.

The results of the tests performed on Compliance and Other Matters by the City auditors resulted in an instance of noncompliance that is required to be reported under Government Auditing Standards.
2024-001 – Credit Card Transaction Approvals is part of the Internal Control and Compliance Report that lists the cause, effect and City management’s response and corrective action to be taken.

Fiscal Year 2023/24 PAFR
As explained above, the PAFR provides an overview of the City’s financial position, the results of select funds, significant assets, and outstanding debt structure in a manner that is easy to understand. The PAFR is prepared primarily from detailed information contained in the City’s audited ACFR and discusses the following areas: Overview of the City and Government, About San Bernardino, Financial Highlights, the City’s Financial Position, Assets, and Debt.
2021-2025 Strategic Targets and Goals
Receive and file the City’s Annual Comprehensive Financial Report (ACFR) for the Year Ended June 30, 2024 aligns with Key Target No. 1: Improved Financial and Operational Capacity. Financial.

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Fiscal Impact
There is no fiscal impact associated with the receiving and filing the City’s Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the City’s Annual Comprehensive Financial Report (ACFR) and Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2024.

Attachments
Attachment 1 – City of San Bernardino Annual Comprehensive Financial Report (ACFR) for the Year Ended, June 30, 2024
Attachment 2 – Audit Overview Letter
Attachment 3 – Internal Control and Compliance Report
Attachment 4 - Popular Annual Financial Report (PAFR) for the Year Ended, June 30, 2024
Ward:

All Wards
Synopsis of Previous Council Actions:

N/A
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
Ernesto Salinas, Interim Director of Parks and Recreation & Operations and Forestry
Department: Parks, Recreation & Community Services
Subject: Authorize a Lease Agreement with Mobile Modular Management Corporation for the Verdemont Community
Center for a Total Amount Not to Exceed $47,825.95
(Ward 5)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

2. Authorize the Director of Finance and Management Services to issue an annual purchase order to Mobile Modular Management Corporation in the amount of $47,825.95 with four option years to be exercised at the City’s discretion for the lease agreement. This amount includes $24,492.31 for payment of prior-year monthly leasing fees incurred due to staff oversight resulting from personnel turnover.

Executive Summary
The Parks and Recreation Department is requesting approval to enter into a new lease agreement with Mobile Modular for the modular building that currently serves as the Verdemont Community Center for a period of one year with four optional years. Additionally, a purchase order is requested to pay for the new lease and overdue amounts that will keep the City’s account in good standing order. As a result of high staff turnover, the previous lease agreement expired, and invoices remained unpaid. Parks staff desires to correct these issues with the appropriate process of Council notification and proper procurement and finance director approval. This Packet Page. 680
lease agreement will be funded through Public Work’s Facilities.

Background
The Parks and Recreation Department focuses on community engagement and provides services and programming to its residents city-wide through several avenues. One of the main avenues of engaging our residents is through programming, services, and outreach offered at our community and senior centers which are located city wide. Annually, staff estimates participation rates of more than 32,000 attendees and/or participants for all (non-event) programs combined. These participants include senior citizens and children along with those with adaptive needs.

Located in the Fifth Ward at Al Guhin Park, the Verdemont Community center offers programming for seniors, provides after school activities, hosts special events, provides youth enrichment activities, outdoor recreation, and offers cooking classes to list a few.

The current modular building was established in 2018 and is meant to serve as temporary building until such time a permanent structure is erected as part of the City’s capital improvement project program. It consists of four rooms along with a restroom in a 60’ x 24’ structure that features an ADA access ramp.

Discussion
In late 2024, staff was alerted to overdue payments for the Verdemont Community Center building from Mobile Modular. The notice was received as part of invoices inadvertently forwarded to the Animal Shelter facilities’ modular rentals project. Upon review, staff determined several of those invoices were not part of the Animal Shelter modular project and collaborated with Finance to determine a course of action for payment. During this process, staff discovered the lease agreement for the modular building and ADA ramp at Verdemont Community center had lapsed and a proper purchase order had not been established.

In consultation with Legal, staff determined that the proper course of action to correct this oversight was to notify Council and seek their approval for the new lease with four-year options as is required by the City’s procurement policies. It is important to note that the original lease agreement was established in 2018 and set monthly payments at approximately $1,604. A lease extension was then set in 2021 when the original 2018 contract expired but the proper procurement process was not followed as, cumulatively, the amount of the overall contract (entire timeframe) exceeded the threshold for department-level approval. Additionally, a lease extension was not pursued. Payments continued to be made monthly as the monthly threshold appeared below the threshold for Council approval; however, current Parks and Recreation staff recognized this error and is now seeking to correct it by notifying Council and requesting approval for a new purchase order that pays the overdue amount and the new lease agreement with four option years.

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In an effort to remain in good standing with Mobile Modular and to continue the use of the Verdemont Community Center modular building, staff is requesting Council approval of these actions. Approving them will allow for the uninterrupted continuation of vital community programing and events for our residents in the Fifth Ward. Should this not be approved, the City may be subjected to additional fees and repossession of the facility. Establishing an alternative temporary facility in that area will also create lengthy delays and disrupt programming.

The term of the proposed lease agreements shall be from April 1, 2025, to April 1, 2026 with four option years to be exercised at the City’s discretion at the expiration of the first term.
2021-2025 Strategic Targets and Goals
This action aligns with Key Strategic Target and Goal #3: Improved Quality of Life by ensuring consistent and stable community programing for our residents and youth. It will ensure uninterrupted services at the center.

Fiscal Impact
Though the Verdemont Community Center is a Parks and Recreation facility, this agreement is funded by Public Work’s Fleet and Facilities Division budget. There is sufficient funding programmed in their current budget.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

2. Authorize the Director of Finance and Management Services to issue an annual purchase order to Mobile Modular Management Corporation in the amount of $47,825.95 with four option years to be exercised at the City’s discretion for the lease agreement. This amount includes $24,492.31 for payment of prior-year monthly leasing fees incurred due to staff oversight resulting from personnel turnover.

Attachments
Attachment 1 Lease Agreement – City of SB * Mobile Modular Attachment 2 Mobile Modular Original Lease Agreement and Extension 2021 Ward:

Ward 5
Synopsis of Previous Council Actions:

None.

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- 1 -

CITY OF SAN BERNARDINO

LEASE AGREEMENT
This Lease Agreement (“Lease”) is made and entered into on this 19th day of March, 2025 by and between the CITY OF SAN BERNARDINO, a charter city and municipal corporation (“City”), and MOBILE MODULAR, A corporation (“Lessor”). City and Lessor may be referred to in this Lease individually as “Party” or collectively as “Parties.”

RECITALS
A. Lessor is the owner of certain real property located at 3365 Little League Drive, in the City of San Bernardino, County of San Bernardino, State of California (“the Property”), more particularly described in Exhibit “A”, attached hereto and incorporated herein by reference.

B. Upon the terms and conditions set forth hereinafter, Lessor desires to lease the Property (the “Leased Premises”) to City, and City desires to lease the Leased Premises from Lessor for the purpose of serve as a temporary location for the Verdemont Community Center.

AGREEMENT

1. Term. The term of this Lease shall commence on April 1st 2025 (“Commencement Date”).

The lease provided herein shall continue for a period of ONE year, ending on April 1st 2026. After expiration of the term under this Lease, and in the case where City has not vacated the Leased Premises prior to expiration, tenancy shall continue on a month-to-month basis, under the same terms and conditions under this Lease, until either party terminates this Lease in accordance with Section 20 herein.

1.1 Renewal Option. City has an option to extend this Lease for FOUR additional term(s) of ONE YEAR (“Extended Term”). To exercise the option, City must provide written notice to Lessor at least ninety (90) days before the end of the Initial Term.

2. Payments.

2.1 Base Lease Payments. City shall pay to Lessor, as rent, a sum not to exceed $1,944.47 per month (the “Base Lease Payment”). The first lease payment shall be due on April 1st, 2025, and shall be prorated to reflect City’s occupancy for a fractional calendar month. Subsequent lease payments shall be due and payable on the first day of each calendar month.

2.2 Additional Rent. Commencing on the first anniversary of the date Packet Page. 683
- 2 -
City is obligated to pay rent under this Lease, and continuing on each subsequent anniversary during the term of this Lease, the Base Lease Payments may be increased no more than ten percent (10%).

2.3 Base Lease Payment for Extended Term. The Base Lease Payment for the first year of the Extended Term shall be equal to no more than ten percent (10%) increase over the amount of the Base Lease Payment in the preceding year. Each year thereafter throughout the Extended Term, the Base Lease Payment shall increase by no more than ten (10%) over the Base Lease Payment amount in the preceding year.

2.4 Overdue Payments for Prior Lease. The table below reflects overdue payments which the City will pay in order to meet it’s prior obligations with the vendor.

Doc# Date Total Due
UNKW 3/31/25 2,505.36 2,505.36
UNKW 2/28/25 2,505.36 2,505.36
2671337 01/29/25 2,505.36 2,505.36
2659622 12/30/24 2,505.36 2,505.36
2647278 11/30/24 2,505.36 2,505.36
2636380 10/31/24 2,505.36 2,505.36
2624271 10/01/24 2,505.36 2,505.36
2612918 09/01/24 2,505.36 2,505.36
2600043 08/02/24 2,505.36 2,505.36
2587918 07/03/24 1,944.07 1,944.07
Total 24,492.31

3. Use. City shall: i) observe and comply with all local, state, and federal laws and regulations, including any City, County and State restrictions, laws and ordinances affecting the Leased Premises or occupancy thereof; ii) not commit any waste or suffer any waste to be committed on the Leased Premises; and iii) only use the Leased Premises for one or more permitted uses, as defined herein.

3.1 Permitted Uses. For purposes of this Lease, only uses complying with all local, state, and federal laws and regulations, including applicable zoning and land use controls, shall be permitted uses.

4. Common Areas. Lessor shall use reasonable diligence to maintain or cause to be maintained the Common Areas, Building Common Areas. Lessor shall operate, manage, equip, light, repair and maintain the Common Areas for their intended purpose. City, its agents, customers, employees and invitees shall have the nonexclusive right in common with the Lessor and all others to whom Lessor has granted or may hereafter grant rights to use the Common Areas subject to such reasonable rules Packet Page. 684
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and regulations as Lessor may from time to time impose.

5. Discrimination. City herein covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the requirement that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, use, occupancy, tenure, or enjoyment of the premises, nor shall the City itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of City, lessees, sublessees, or vendees in the premises herein leased.

6. Utilities. City shall make all arrangements for and pay for its own telephone services, including all facsimile and internet services if required. All other utilities, including but not limited to gas, electricity, water, heat, light, power, and trash collection, and all connection charges for said utilities, other than for telephone service, shall be paid by Lessor.

7. Possessory Interest Tax.

7.1 Lease Subject to Possessory Interest Tax. City hereby recognizes and understands that this Lease may create a possessory interest subject to property taxation, and that City may be subject to the payment of property taxes levied on such interest. Any such imposition of a possessory interest tax shall be a tax liability of City solely, notwithstanding any provision of this Lease to the contrary. In addition, City shall pay any personal property taxes that may become due for equipment, fixtures, inventory, or other personal property installed, maintained, or present in the Leased Premises.

7.2 Payment of Possessory Interest Tax. City shall promptly notify Lessor of any possessory interest tax imposed against City’s interest in the Leased Premises, and shall provide Lessor with a copy of any bill or assessment imposing the possessory interest tax. Lessor shall remit to the taxing agency the amount of the possessory interest tax imposed against City, shall promptly notify City in writing of the payment, and City shall pay Lessor the amount paid by Lessor within 45 days of receiving Lessor’s notice. City’s failure to timely pay Lessor this amount shall constitute a material breach of this Lease.

8. Repairs and Maintenance.

8.1 Obligations of City. City shall, at City’s expense, maintain, repair and replace, and keep in good and safe condition, all portions of the Leased Premises not required to be maintained, repaired or replaced by Lessor as provided in Section

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8.2 Obligations of Lessor. Lessor shall, at Lessor’s expense, maintain, repair and replace, and keep in a good and safe condition (i) the roof, foundation, exterior walls and all structural components of the Property and the Leased Premises; (ii) the plumbing, electrical wiring and systems, heating, ventilating and air conditioning systems, except for routine maintenance or repair of such items solely within the Leased Premises; and (iii) the Common Areas.

9. Disclaimer and Warranties. Lessor guarantees and warrants that: (1) Lessor owns the Premises; (2) Lessor has full authority to execute and enter into this Lease and consummate the transaction contemplated herein; (3) there are no leases, licenses or occupancy agreements binding upon the Property; (4) the Property is not subject to any pending litigation nor has Lessor received notice of any threatened litigation, environmental or condemnation proceeding which would adversely affect the Property or the transaction contemplated here; (5) to the best of Lessor’s actual knowledge, the Property is free from environmental hazards and (6) the Leased Premises and Common Areas comply with applicable covenants and restrictions of record, building codes, ordinances, or statutes in effect at the Commencement Date of this Lease.

10. Delay in Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Leased Premises to City by the commencement date of this Lease, as specified in Section 1 of this Lease. If, despite these efforts, Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease.

City shall not, however, be obligated to pay rent or perform its other obligations until it receives possession of the Leased Premises. If possession is not delivered within sixty (30) days after the Commencement Date, City may, at its option, by notice in writing within ten (10) days after the end of such 30 day period, cancel this Lease, in which event the parties shall be discharged from all obligations hereunder.

11. Damage or Destruction of Premises. If during the term of this Lease, any portion of the Leased Premises shall be damaged by fire or other catastrophic cause, so as to render such portion of the Leased Premises untenable, the obligations under this Lease may be suspended while such portion of the Leased Premises remains untenable. In the event of such damage, City shall give Lessor notice of such untenable conditions and the Lessor shall elect in its sole discretion, whether to repair the Leased Premises or to cancel this Lease with respect thereto. It shall notify City in writing of its election within thirty (30) days after service of notice by City. In the event that Lessor elects not to repair the Leased Premises or portion thereof, this Lease shall be deemed canceled as of the date the damage occurred with respect to the applicable portion(s).

12. Alterations, Additions and Improvements. City may make alterations, improvements or additions in, on or about any of the Leased Premises. City shall, at its sole cost and expense, obtain all permits and entitlements required for such improvements.

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shall at once become a part of the realty and belong to Lessor. However, Lessor, at its own expense, may require City to remove any alterations, fixtures, or other tenant improvements prior to vacating the Leased Premises.

12.2 City shall keep the Leased Premises free from any liens arising out of any work performed, materials furnished or obligations incurred by City, and City shall be responsible for the removal of any such liens and all costs to remove same. Failure to remove any such liens within thirty (30) calendar days of written request by Lessor shall constitute a default of this Lease.

12.3 At its election, but without having any obligation to do so, Lessor may pay such liens not so removed by City and City shall, within ten (10) days following the receipt of written request from Lessor, reimburse Lessor for all such costs incurred by Lessor with respect to the removal of such liens.

13. Access by Lessor. Lessor reserves for itself and any of its designated Agents the right to enter the Leased Premises as follows:
(i) on an occasional basis, at all reasonable times after giving City 24 hours’ advance written or oral notice, to post notice of non-responsibility, to conduct any environmental audit of City’s use of the Leased Premises, to repair, alter or improve any part of the Property, building systems or Leased Premises, and or any other lawful purpose; and
(ii) on an emergency basis without notice whenever Lessor believes that emergency access is required. Lessor shall have the right to use any means that it deems proper to open doors in an emergency in order to obtain access to any part of the Leased Premises, and any such entry shall not be construed or deemed to be a forcible or unlawful entry into or a detainer of, the Leased Premises, or an eviction, actual or constructive, of City from the Premises or any portion thereof.

14. Indemnity. Lessor agrees to indemnify, defend and hold City, its elected officials, and all other officers, employees, consultants and agents of City harmless from any claims, judgments, damages, penalties, fines, costs, liabilities (including sums paid in settlement of claims), or loss including attorneys' fees, consultant fees and expert witness fees which arise as a result of any negligent acts or omissions or willful misconduct of Lessor in connection with the Leased Premises

15. Hazardous Materials Prohibited. The use, generation, storage or disposal of Hazardous Materials on the Leased Premises is strictly prohibited, and any such use, generation, storage, or disposal shall result in a default and termination of this Lease.

For the purpose of this Section, Hazardous Materials shall include, without limitation, substances defined as “hazardous substances”, “hazardous materials”, “toxic substances”, “hazardous wastes”, “extremely hazardous wastes”, or “restricted hazardous wastes”, or stated to be known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. sections 9601, et seq; the Hazardous Materials Packet Page. 687
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Transportation Act, 49 U.S.C. sections 1801, et seq; the Resource Conservation and Recovery Act, 42 U.S.C. sections 6901, et seq; the Federal Water Pollution Control Act, 33 U.S.C. sections 1317, et seq; sections 25115, 25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; or any substances so defined or stated in any of the regulations adopted and publications promulgated pursuant to said laws as they may be amended from time to time.

16. Insurance. Lessor and City shall comply with their respective insurance obligations required by applicable law by means of self-insurance or insurance deductibles.

17. Attorneys’ Fees. Should any action or proceeding be commenced to enforce the provisions provided in this Lease, or should any litigation be commenced between the parties to this Lease concerning the Property or the Leased Premises, this Lease, or the rights and duties of either in relation thereto, the prevailing party in such litigation shall be entitled, in addition to such other relief as may be granted as the result of said litigation, to a reasonable sum for its attorneys’ fees.

18. Assignment and Subletting. City may sublet all or part of the Leased Premises if sublessee’s use conforms to the allowed uses outlined in Section 3.1 of this Lease.

19. Termination. Without limiting its ability to seek other remedies, either at law or in equity, either party may terminate this Lease and all of the obligations herein, at its option, upon the other party’s breach of any of its obligations under this Lease and failure to cure such breach within thirty (30) days after receipt of written notice from the non-breaching party or, if such cure cannot be completed within thirty (30) days, the breaching party’s failure to commence such cure within thirty (30) days after its receipt of written notice and thereafter failing to diligently prosecute such cure to completion.

In addition to the foregoing, upon expiration of the Lease term provided in Section 1 of this Lease either party may terminate this Lease by providing the other party with ninety (90) days’ prior written notice of said wish to terminate. Said notice shall be sent via certified mail, return receipt requested, to the location specified in Section 25 of this Lease, and shall be deemed accepted upon delivery.

20. Default.

20.1 Any of the following events or occurrences shall constitute a material breach of this Lease by City, and shall constitute an event of default. (a) A default by City in the payment when due of any rent or other sum payable under this Lease and the continuation of this default for ten (10) or more days after notice of the default from Lessor, provided that if City has failed two (2) or more times in any twelve (12) months to pay any rent or other sum when due and notice of this default has been given by Lessor in each instance, no further notice shall be required after such instances until the expiration of twelve (12) months in which all rental and other sums payable under this Lease have Packet Page. 688
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been paid on or before the date due;
(b) Abandonment, vacation, or surrender of the Leased Premises by City without Lessor’s prior written consent (failure to occupy and/or operate the Leased Premises for ten (10) consecutive days shall be deemed an abandonment and vacation (unless at least ten (10) days before failing to occupy or operate the Leased Premises City gives Lessor written notice that City intends to continue using the Leased Premises and will continue maintaining the Leased Premises while it is vacant), or the dispossession of City from the Leased Premises (other than by Lessor by process of law or otherwise); (c) The failure by City to perform any other obligation under this Lease, if the failure has continued for a period of thirty (30) days after Lessor demands in writing that City cure the failure. If, however, by its nature, the failure cannot be cured within thirty (30) days, City may have a longer period as is necessary to cure the failure, but this is conditioned upon City’s promptly commencing to cure within the ten (10) day period and thereafter diligently completing the cure. (d) The failure by Lessor to perform any other obligation under this Lease, if the failure has continued for a period of thirty (30) days after City demands in writing that Lessor cure the failure. If, however, by its nature, the failure cannot be cured within thirty (30) days, Lessor may have a longer period as is necessary to cure the failure, but this is conditioned upon Lessor’s promptly commencing to cure within the ten (10) day period and thereafter diligently completing the cure.
(e) The bankruptcy or insolvency of City, a transfer by City in fraud of creditors, an assignment by City for the benefit of creditors, or the commencement of proceedings of any kind by or against City under the Federal Bankruptcy Act or under any other insolvency, bankruptcy, or reorganization act, unless City is discharged from voluntary proceedings within ninety (90) days; or (f) Notices given under this Section shall specify the alleged default and the applicable Section(s), and shall demand performance as provided under the applicable Section(s) or pay the amount that is in arrears, as the case may be, within the applicable period of time, or quit the premises.

21. Notice. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, return receipt requested, telegraphed, delivered or sent by telex, telecopy or cable and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if mailed, three (3) business days after the date of posting by the United States post office, (iii) if given by telegraph or cable, one (1) business day after the date delivered to the telegraph company with charges prepaid.

To City: City of San Bernardino
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Vanir Tower, 290 North D Street
San Bernardino, California 92401
Attn: Bill Gallardo, Interim City Manager
To Lessor Mobile Modular Management Corporation
11450 Mission Blvd
Mira Loma, CA 91752
Attn: Maira Munez
Notice of change of address shall be given by written notice in the manner detailed in this Section. Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request or communication sent.

22. Compliance with Laws. City shall comply with all applicable Federal, State and local laws, regulations and standards that are or may become applicable to City’s occupancy and/or activities on the Leased Premises. The judgment of any court of competent jurisdiction, or the admission of City in a proceeding brought against it by any governmental entity, that City has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between the Lessor and the City and shall constitute grounds for declaration of default, material breach, forfeiture, and termination of this Lease by Lessor.

23. Cumulative Remedies. No remedy or election contained herein shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

24. Signs. All signs and graphics of every kind visible from public view corridors, or the exterior of the Property will be subject to Lessor’s prior written approval, and will be subject to any applicable governmental laws, and ordinances and in conformance with Lessor’s design standards.

25. Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

26. Captions. Any captions to, or headings of, the sections or subsections of this Lease are solely for the convenience of the parties hereto, are not a part of this Lease, and shall not be used for the interpretation or determination of the validity of this Lease or any provision hereof.

27. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Lease shall not be deemed to confer any rights upon, nor obligate any of the parties thereto, to any person or entity other than the parties hereto.

28. Amendment of Lease. The terms of this Lease may not be modified or amended except by an instrument in writing executed by each of the parties hereto.

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29. Waiver. The waiver or failure to enforce any provision of this Lease shall not operate as a waiver of any future breach of any such provision or any other provision hereof.

30. Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State of California. Venue shall be the County of San Bernardino

31. Fees and Other Expenses. Except as otherwise provided herein, each of the parties shall pay its own fees and expenses in connection with this Lease, including any permit or license fees which City may be required to obtain pursuant to its occupancy.

32. Authority to Execute Lease. Lessor and City warrant that the individuals who have signed this Lease have the legal power, right and authority to enter into this Lease so as to bind each party for whom they sign to perform as provided herein.

33. Successors and Assigns. This Lease shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto.

34. Incorporation of Recitals. Each and all of the Recitals to this Lease are incorporated by reference as though fully set forth herein.

35. Entire Agreement. This Lease supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between City and Lessor as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to any employees, officer, agent or representative of either party shall be of any effect unless it is in writing and executed by the party to be bound thereby.

36. Severability. If any portion of this Lease is declared by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Lease shall continue in full force and effect.

37. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.

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SIGNATURE PAGE TO LEASE AGREEMENT BETWEEN CITY OF SAN

BERNARDINO AND MOBILE MODULAR MANAGEMENT CORPORATION
IN WITNESS WHEREOF, the Parties have executed this Lease as of the date first written above.

CITY OF SAN BERNARDINO
APPROVED BY:

Bill Gallardo
Interim City Manager
ATTESTED BY:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney
LESSOR
Signature
Name
Title
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EXHIBIT A

LAYOUT OF MOBILE MODULAR UNITS
UNITS 4137-8 60’x24’ – Carpeting With ADA Restrooms
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: William J. Gallardo, Interim City Manager
Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Award an Agreement to Resource Environmental, Inc. to Demolish and Abate the property located at 796 E.
6th Street to prepare the site for construction of the
future Navigation Center for a Total Amount Not to
Exceed $177,200 (Ward 1)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

3. Authorize the City Manager or designee to execute all documents with Resource Environmental, Inc.; and,

4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

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Executive Summary
The city will be constructing a Homeless Navigation Center, to be located at the former School of Hope site, located at 796 East 6th Street in San Bernardino. The Homeless Navigation Center is designed to provide emergency shelter and wrap-around services for the City’s unhoused population. The existing complex of buildings and hazardous materials will need to be demolished and removed to prepare the site for the proposed new construction. The City secured proposals from Resource Environmental, Inc., to perform the abatement and demolition. Funds for this work will be available from the existing fund balances within the Public Works Department FY24-25 budget.

Background
The School of Hope site is a formerly active school site that provided a variety of services to special needs students from the mid-1980s until 2022. The property was deemed no longer needed by the School District and was subsequently transferred to the City Municipal Water Department in 2022. The site consists of a u-shaped complex of classrooms and administrative buildings around a central internal courtyard area. Over the last several years, the site has experienced increased vandalism and trespassing, as well as a significant increase of graffiti and illegal dumping. To the west is Palm Field, an active City Park site and to the east is Santa Clause Incorporated, a not-for-profit services agency.

In 2022, the City, through the San Bernardino Municipal Water Department, contracted with L. Y. Environmental, Inc., of Redlands, California to conduct a comprehensive asbestos and lead base paint survey of the existing buildings as a precursor to demolition of the site. Two surveys were completed, and asbestos was identified in various locations within the building. Copies of the two reports are included as Attachment 3.

The City acquired the property from the Water Department in 2023 for use as the Navigation Center site. Scoping and design work commenced in mid-September 2023, resulting in the award of design and fabrication of the modular buildings for the Navigation Center by Mandeville Modular, and general construction management and inspection by CREDE Construction Advisory at the November 20, 2024 Mayor and City Council meeting. The City anticipates the development and release of the actual construction bid documents by June 2025.

Discussion
In order to expedite the site preparation, the City solicited abatement and demolition proposals from Resource Environmental, Inc. on a selected source basis. Resource Environmental previously conducted the demolition of the Carousel Mall, and ancillary buildings for the City, and recently completed the demolition of the former County of San Bernardino Hall of Records building on Third Street. Resource Environmental is knowledgeable regarding the various requirements associated with lead and asbestos (hazardous materials) abatement, as well as the efficient demolition of various structures.

Staff solicited and received two separate proposals for the abatement of the hazardous materials on site in the amount of $94,700 and the physical demolition of the existing Packet Page. 721
buildings down to the foundations in the amount of $82,500. The proposals were originally solicited in November 2024 and were revised for January 13, 2025. Copies of the two proposals dated January 13, 2025, are included as Attachment 2.

Staff requested that the City Attorney review the proposals in order to ensure that they complied with the Homeless Emergency Order allowing the City to expedite the various acquisition of goods and services and determined that the award of this agreement does fall under the Emergency Order as it relates to the need to expedite the provision of homeless services within the City. The City Manager, subsequently, determined that the award of these two proposals to the same company exceeded their purchasing authority and therefore requested that this be presented for award to the Mayor and City Council for their consideration and approval. A Contract for Construction has been determined to be the best agreement; the Contract is included as Attachment 1.

Because of the process of soliciting and awarding this Agreement, the City Attorney has determined that restricted funds (i.e. Federal or State grant funds) may not be used for these activities, therefore available fund balance within the Public Works Department will be used to fund the $212,640.00 proposed. The initial cost for the abatement and demolition provided by Resource Environmental, Inc. is $177,200. Staff is requesting authorization of an additional 20% contingency in the amount of $35,440 to address an undiscovered or unanticipated costs identified during the abatement and demolition process that were not readily identifiable during either the site assessment or job walk. 2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No. 3a: Improved Quality of Life – reduce the burden of the unsheltered through engagement, collaboration, and partnerships with other entities.

Fiscal Impact
Funds in the amount of $212,640 will be allocated from the existing General Fund balance within the Public Works Department for this project. As previously stated, restricted grant funds may not be used for this service, due to the process used for acquiring the services, as determined by the City Attorney.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

2. Authorize the Director of Finance and Management Services to approve contingencies in the amount of $35,440 for unforeseen conditions that may arise Packet Page. 722
during the abatement or demolition processes, for a total not to exceed budget of $212,640.00; and,

1. Authorize the City Manager or designee to execute all documents with Resource Environmental, Inc.; and,

2. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

Attachments
Attachment 1 Contract for Construction with Resource Environmental, Inc.

Attachment 2 Resource Environmental, Inc., Proposals for Hazard Materials Abatement and Demolition
Attachment 3 Comprehensive Asbestos and Lead Based Paint Surveys (Two Documents Ward
Ward 1
Synopsis of Previous Council Actions
None
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CONTRACT FOR CONSTRUCTION
This Contract for Construction (“Contract”), is made and entered into this 19th day of March, 2025 by and between the CITY OF SAN BERNARDINO, with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401, sometimes hereinafter called the “City” and Resource Environmental, sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:

ARTICLE 1. SCOPE OF WORK.

The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:

Abatement of Hazardous Materials and the Demolition of the former School of Hope Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

Scope of Work shall be as set forth in Contractor’s Proposals for Abatement, dated January 13, 2025 and Demolition, dated January 13, 2025, and included as attachments 1 and 2 to this Contract.

ARTICLE 2. TIME FOR COMPLETION.

Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 45 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE.

The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Hundred Seventy-Seven Thousand, Two Hundred Dollars ($ 177,200.00). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages.

Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $50.00 for each and every calendar day of delay beyond Packet Page. 724
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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, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.

The “Contract Documents” include the following:

Contract for Construction
Approved and fully executed Change Orders
Permits
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. 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.

ARTICLE 7. INDEMNIFICATION.

Contractor shall provide indemnification and defense as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES.

Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.

ARTICLE 9. FALSE CLAIMS.

Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties Packet Page. 725
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pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
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IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

CITY OF SAN BERNARDINO
By:

WILLIAM J. GALLARDO
Interim City Manager
ATTEST:

By:

Genoveva Roche City Clerk, CMC
APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney
Resource Environmental,
[IF CORPORATION, TWO SIGNATURES,

PRESIDENT OR VICE PRESIDENT AND
SECRETARY OR TREASURER REQUIRED]
By:

Its:

Printed Name:

By:

Its:

Printed Name:
____________________________________
Contractor’s License Number and
Classification
____________________________________
DIR Registration Number
(CONTRACTOR’S SIGNATURE MUST BE

NOTARIZED AND CORPORATE

SEAL AFFIXED, IF APPLICABLE)

END OF CONTRACT
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER
 Individual

DESCRIPTION OF ATTACHED DOCUMENT
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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GENERAL CONDITIONS
ARTICLE 1 -TERMS; DEFINITIONS

1.1 Defined Terms
A. Whenever used in the Contract Documents and printed with initial capital letters, the terms listed below will have the meanings indicated which are applicable to both the singular and plural thereof. In addition to terms specifically defined below, terms with initial capital letters in the Contract Documents include references to identified articles and paragraphs, and the titles of other documents or forms.

1. Act of God – An earthquake of magnitude of 3.5 or higher on the Richter scale or a tidal wave.

2. Addenda -- Written or graphic instruments issued prior to the submission of Bids which clarify, correct, or change the Contract Documents.

3. Additional Work -- New or unforeseen work will be classified as “Additional Work” when the Engineer determines that it is not covered by the Contract.

4. Applicable Laws -- The laws, statutes, ordinances, rules, codes, regulations, permits, and licenses of any kind, issued by local, state or federal governmental authorities or private authorities with jurisdiction (including utilities), to the extent they apply to the Work.

5. Bid -- The offer or proposal of a Bidder submitted on the prescribed form setting forth the prices and other terms for the Work to be performed.

6. Bid Guarantee -- The Bid Bond, cashier’s check, or certified check to be made by the Bidder, which is to accompany the Bid as a guaranty of good faith to enter into a written contract.

7. Bidder -- The individual or entity who submits a Bid directly to the City.

8. Change Order (“CO”) -- A document that authorizes an addition, deletion, or revision in the Work or an adjustment in the Contract Price or the Contract Times, issued on or after the Effective Date of the Contract, in accordance with the Contract Documents and in the form contained in the Contract Documents.

9. Change Order Request (“COR”) -- A request made by the Contractor for an adjustment in the Contract Price and/or Contract Times as the result of a Contractor-claimed change to the Work. This term may also be referred to as a Change Order Proposal (“COP”), or Request for Change (“RFC”).

10. City’s Representative – The Public Works Director, and acting through properly authorized agents, such as the Engineer or such other agents acting within the scope of the particular duties entrusted to them. Also sometimes referred to as the “City’s Representative” or “Representative” in the Contract Documents. The terms the City and Owner may be used interchangeably
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a. Claim -- A demand or assertion by the City or Contractor seeking an adjustment of Contract Price or Contract Times, or both, or other relief with respect to the terms of the Contract. A demand for money or services by a third party is not a Claim. b. Contract -- The entire integrated written agreement between the City and Contractor concerning the Work. “Contract” may be used interchangeably with “Agreement” in the Contract Documents. The Contract supersedes prior negotiations, representations, or agreements, whether written or oral, and includes all Contract Documents. c. Contract Documents -- The documents listed in Section 00 52 13, Article 5 of the Contract for Construction. Some documents provided by the City to the Bidders and Contractor, including but not limited to reports and drawings of subsurface and physical conditions are not Contract Documents.
d. Contract Price -- Amount to be paid by the City to the Contractor as full compensation for the performance of the Contract and completion of the Work, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs.
e. Contract Time -- The number of days or the dates stated in the Contract Documents to:
achieve defined milestones, if any; and to complete the Work so that it is ready for final payment.
f. Contractor -- The individual or entity with which the City has contracted for performance of the Work.
g. Contractor’s Designated On-Site Representative -- The Contractor’s Designated On-Site Representative will be identified by the Contractor and shall not be changed without prior written consent of the City.
h. Critical Supply Shortage -- An unusual shortage in materials that is (a) supported by documented proof that Contractor made every effort to obtain such materials from all available sources; (b) such shortage is due to the fact that such materials are not physically available from single or multiple sources or could have been obtained only at exorbitant prices entirely inconsistent with current and standard rates taking into account the quantities involved and the usual industry practices in obtaining such quantities; and (c) such shortages and the difficulties in obtaining alternate sources of materials could not have been known or anticipated by Contractor at the time it submitted its bid or entered the Contract. Market fluctuations in prices of materials, whether or not resulting from a Force Majeure Event, does not constitute a Critical Supply Shortage.
i. Daily Rate -- The Daily Rate stipulated in the Contract Documents as full compensation to the Contractor due to the City’s unreasonable delay to the Project that was not contemplated by the parties.
j. Day -- A calendar day of 24 hours measured from midnight to the next midnight. k. Defective Work -- Work that is unsatisfactory, faulty, or deficient; or that does not conform to the Contract Documents; or that does not meet the requirements of any Packet Page. 730
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inspection, reference standard, test, or approval referenced in the Contract Documents.
l. Demobilization -- The complete dismantling and removal by the Contractor of all of the Contractor’s temporary facilities, equipment, and personnel at the Site. m. Drawings -- That part of the Contract Documents prepared by of the Engineer of Record which graphically shows the scope, extent, and character of the Work to be performed by Contractor.

Shop Drawings and other Contractor Submittals are not Drawings as so defined. n. Effective Date of the Contract -- The date indicated in the Contract on which it becomes effective, but if no such date is indicated, it means the date on which the Contract is signed and delivered by the last of the two parties to sign and deliver. o. Engineer -- Whenever not qualified, shall mean the City Engineer or the Engineer authorized to act for and in behalf of the City, acting either directly or through properly authorized agents, such agents acting severally within the scope of the particular duties entrusted to them. p. Force Majeure Event -- 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 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; (5) strikes and other organized labor action occurring at the 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; and (6) a Critical Supply Shortage. 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.
q. Hazardous Waste -- The term “Hazardous Waste” shall have the meaning provided in Section 104 of the Solid Waste Disposal Act (42 U.S.C. § 6903) as amended from time to time, or any substance or material identified as hazardous under any state or federal statute governing handling, disposal and/or cleanup of any such substance or material, whichever is more restrictive.
r. Holiday – Holidays occur on:

New Year’s Day - January 1
President’s Day – Third Monday in February
Memorial Day - Last Monday in May
Independence Day - July 4
Labor Day - First Monday in September
Veteran’s Day - November 11
Thanksgiving Day - Fourth Thursday in November
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Friday after Thanksgiving
Christmas Eve – December 24
Christmas Day - December 25
Day After Christmas – December 26
New Year’s Eve – December 31
If any Holiday listed above falls on a Saturday, Saturday and the preceding Friday are both Holidays. If the Holiday should fall on a Sunday, Sunday and the following Monday are both Holidays.
s. Notice of Award -- The written notice by the City to the Successful Bidder stating that upon timely compliance by the Successful Bidder with the conditions precedent listed therein, the City will sign and deliver the Contract.
t. Notice of Completion -- The form which may be executed by the City constituting final acceptance of the Project.
u. Notice to Proceed -- A written notice given by the City to Contractor fixing the date on which the Contractor may proceed with the Work and when Contract Times will commence to run. v. Project -- The total construction of which the Work to be performed under the Contract Documents may be the whole, or a part.
w. Record Drawings – The record set of as-builts prepared by the Contractor during the Work in accordance with the requirements of the General Conditions. x. Recyclable Waste Materials -- Materials removed from the Site which are required to be diverted to a recycling center rather than an area landfill. Recyclable Waste Materials include, but are not limited to, asphalt, concrete, brick, concrete block, and rock. y. Sample -- A physical example furnished by the Contractor to illustrate materials, equipment or workmanship; to establish standards by which the Work will be judged. z. Schedule of Submittals -- A schedule, prepared and maintained by Contractor, of required submittals and the time requirements to facilitate scheduled performance of related construction activities.
aa. Shop Drawings -- All drawings, diagrams, illustrations, schedules, and other data or information which are specifically prepared or assembled by or for Contractor and submitted by Contractor to illustrate some portion of the Work.
bb. Site -- Lands or areas indicated in the Contract Documents as being furnished by the City upon which the Work is to be performed, including rights-of-way and easements for access thereto, and such other lands furnished by the City which are designated for the use of Contractor.
cc. Specifications -- That part of the Contract Documents consisting of written requirements for materials, equipment, systems, standards and workmanship as Packet Page. 732
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applied to the Work, and certain administrative requirements and procedural matters applicable thereto.
dd. Stop Payment Notice -- A written notice as defined in Civil Code section 8044. ee. Subcontractor -- An individual or entity other than a Contractor having a contract with any other entity than the City for performance of any portion of the Work at the Site. ff. Submittal -- Written and graphic information and physical samples prepared and supplied by the Contractor demonstrating various portions of the Work. gg. Successful Bidder -- The responsible Bidder submitting a responsive Bid to whom the City makes an award.
hh. Supplier -- A manufacturer, fabricator, supplier, distributor, material man, or vendor having a direct contract with Contractor or with any Subcontractor to furnish materials or equipment used in the performance of the Work or to be incorporated in the Work. ii. Underground Facilities -- All underground pipelines, conduits, ducts, cables, wires, manholes, vaults, tanks, tunnels, or other such facilities or attachments, and any encasements containing such facilities, including those that convey electricity, gases, steam, liquid petroleum products, telephone or other communications, cable television, water, wastewater, storm water, other liquids or chemicals, or traffic or other control systems. jj. Unit Price Work -- Work to be paid for on the basis of unit prices as provided by the Contractor in its Bid or as adjusted in accordance with the Contract Documents. kk. Warranty -- A guarantee provided to the City by the Contractor that the Work will remain free of defects and suitable for its intended use for the period required by the Contract Documents or the longest period permitted by the law of this state, whichever is longer. ll. Work -- The entire construction or the various separately identifiable parts thereof required to be provided under the Contract Documents. Work includes and is the result of performing or providing all labor, services, and documentation necessary to produce such construction, and furnishing, installing, and incorporating all materials and equipment into such construction, all as required by the Contract Documents.

1.2 Terminology.

A. The words and terms below are not defined but, when used in the Contract Documents, have the indicated meaning.

1. The word “furnish,” when used in connection with services, materials, or equipment, shall mean to supply and deliver said services, materials, or equipment to the Site (or some other specified location) ready for use or installation and in usable or operable condition.

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mm. The word “install,” when used in connection with services, materials, or equipment, shall mean to put into use or place in final position said services, materials, or equipment complete and ready for intended use.
nn. The words “perform” or “provide,” when used in connection with services, materials, or equipment, shall mean to furnish and install said services, materials, or equipment complete and ready for intended use.
oo. Regardless of whether “furnish,” “install,” “perform,” or “provide” is used in connection with services, materials, or equipment, an obligation of Contractor is implied.

B. Unless stated otherwise in the Contract Documents, words or phrases that have a well-known technical or construction industry or trade meaning are used in the Contract Documents in accordance with such recognized meaning.

ARTICLE 2 -PRELIMINARY MATTERS

2.1 Delivery of Contract Documents
A. Within ten (10) Days after receipt of the Notice of Award and before the City will execute the Contract, the Contractor shall furnish and file with the City a signed Contract and the necessary Performance Bond, Payment Bond, and Certificates of Insurance and Endorsements, as well as any other documents specified in the Contract Documents.

2.2 Bonds
A. Not applicable.

2.3 Evidence of Insurance
A. Prior to commencing any Work but no later than ten (10) Days after receipt of the Notice of Award, the Contractor shall submit or cause to be submitted any and all Certificates of Insurance and Endorsements, showing that the Contractor has the required insurance, to the attention of the City. Such insurance is to be provided at the sole cost and expense of the Contractor. No Work shall be performed until all of the required insurance has been received and approved.

2.4 Execution of the Contract
A. Upon receipt of the required Contract Documents, the City will execute the Contract, establishing the Effective Date of the Contract.

2.5 Contractor’s Failure to Perform
A. Should Contractor fail to comply with timelines provided above, the City shall retain the right to enforce and collect on the Contractor’s Bid Guarantee, rescind award to the Contractor and award the Contract to the next lowest responsive, responsible bidder as determined by the City. If the City elects to accept bonds and insurance submitted late, the Contract Times will begin to run as of the date stated in the Notice Packet Page. 734
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to Proceed. However, the number of days beyond the original ten (10) Days it took to receive the properly executed Contract and related items may be deducted from the Contract Times.

B. Commencement of Contract Times; Notice to Proceed

1. The City will not issue a Notice to Proceed until after the Effective Date of the Contract. Work shall commence within ten (10) Days of the date stated in the Notice to Proceed. The Contract Times begin to run on the date specified in the Notice to Proceed. No Work shall be done at the Site prior to the issuance of the Notice to Proceed.

C. Copies of Documents

1. Contractor will be furnished, free of charge, five (5) copies of the Contract Documents. Additional copies may be obtained at cost of reproduction. Contractor shall maintain a clean, undamaged set of Contract Documents, including Submittals, at the Project site.

D. Substitution Requests, Schedule of Submittals, and Schedule

1. Substitution Requests. Within fifteen (15) Days after Notice of Award (unless otherwise specified in the Contract Documents), Contractor shall provide all substitution requests as further described in Section 00 72 00, Article 6.5.

2. Schedule of Submittals. Within five (5) Days after the issuance of the Notice of Proceed (unless otherwise specified in the Contract Documents), Contractor shall submit to the City a Schedule of Submittals that conforms with the requirements of Section 00 72 00, Article 5.21.

3. Schedule. Within ten (10) days after the issuance of the Notice of Proceed (unless otherwise specified in the Contract Documents), the Contractor shall submit a construction schedule that conforms with the requirements of Section 00 72 00, Article 8.2.

E. Preconstruction Conference; Designation of Authorized Representatives.

1. Before any Work at the Site is started, a conference attended by the City, Contractor, Engineer, and others as appropriate will be held to establish a working understanding among the parties as to the Work and to discuss the schedules referred to herein, procedures for handling Submittals and Shop Drawings, processing applications for payment, and maintaining required records.

2. At this conference the City and Contractor each shall designate, in writing, a specific individual to act as its authorized representative with respect to the services and responsibilities under the Contract. Such individuals shall have the authority to transmit instructions, receive information, render decisions relative to the Contract, and otherwise act on behalf of each respective party.

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2.10 Subcontractor Mobilization Meeting.

A. Prior to the start of each major Subcontractor’s Site Work, the Contractor, the involved Subcontractor, and Engineer shall attend a pre-start meeting to discuss the schedule, coordination, procedures, and other administrative issues.

2.11 Authority of Board; Engineer
A. The Board has the final authority in all matters affecting the Work. Within the scope of the Contract, the Engineer has the authority to enforce compliance with the Contract Documents. The Contractor shall promptly comply with instructions from the Engineer.

B. The decision of the Engineer is final and binding on all questions relating to:

1. quantities;

2. acceptability of material, equipment, or work;

3. execution, progress or sequence of work;

4. interpretation of the Plans, Specifications, or other Contract Documents; and

5. Any other areas specifically identified in the Contract Documents or under the law.

C. Compliance with instructions from the Engineer shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board.

2.12 Mobilization
A. When a Bid item is included in the Bid Schedule for mobilization, the costs of Work in advance of construction operations and not directly attributable to any specific bid item will be included in the progress estimate. When no bid item is provided for mobilization payment for such costs will be deemed to be included in the other items of the Work.

B. Payment for mobilization based on the lump sum provided in the Bid Schedule, shall constitute full compensation for all such Work. No payment for mobilization will be made until all of the listed items have been completed to the satisfaction of the Engineer. The scope of the Work included under mobilization shall include, but shall not be limited to, the following principal items:

1. Obtaining and paying for all bonds, insurance, and permits.

2. Moving on to the Project Site of all Contractor’s plant and equipment required for the first month’s operations.

3. Installing temporary construction power, wiring, and lighting facilities, as applicable.

4. Establishing fire protection system, as applicable.

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a. Developing and installing a construction water supply, as applicable. b. Providing and maintaining the field office trailers for the Contractor, if necessary, and the Engineer (if specified), complete, with all specified furnishings and utility services. c. Providing on-site sanitary facilities and potable water facilities as specified per Cal-OSHA and these Contract Documents.
d. Furnishing, installing, and maintaining all storage buildings or sheds required for temporary storage of products, equipment, or materials that have not yet been installed in the Work. All such storage shall meet manufacturer’s specified storage requirements, and the specific provisions of the specifications, including temperature and humidity control, if recommended by the manufacturer, and for all security.
e. Arranging for and erection of Contractor’s work and storage yard. f. Posting all OSHA required notices and establishment of safety programs per Cal-OSHA. g. Full-time presence of Contractor’s superintendent at the job Site as required herein. h. Submittal of construction schedule as required by the Contract Documents.

ARTICLE 2 -CONTRACT DOCUMENTS; INTENT

2.2 Examination of Drawings, Specifications, and Site of Work A. Examination of Contract Documents; Site. Before commencing any portion of the Work, Contractor shall again carefully examine all applicable Contract Documents, the Project Site, and other information given to Contractor as to materials and methods of construction and other Project requirements. Contractor shall immediately notify the Engineer of any potential error, inconsistency, ambiguity, conflict, or lack of detail or explanation. If Contractor performs, permits, or causes the performance of any Work which is in error, inconsistent or ambiguous, or not sufficiently detailed or explained, Contractor shall bear any and all resulting costs, including, without limitation, the cost of correction. In no case shall the Contractor or any Subcontractor proceed with Work if uncertain as to the applicable requirements.

B. Additional Instructions. After notification of any error, inconsistency, ambiguity, conflict, or lack of detail or explanation, the Engineer will provide any required additional instructions, by means of drawings or other written direction, necessary for proper execution of Work.

C. Quality of Parts, Construction and Finish. All parts of the Work shall be of the best quality of their respective kinds and the Contractor must use all diligence to inform itself fully as to the required construction and finish.

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D. Contractor’s Variation from Contract Document Requirements. If it is found that the Contractor has varied from the requirements of the Contract Documents including the requirement to comply with all Applicable Laws, the Engineer may at any time, before or after completion of the Work, order the improper Work removed, remade or replaced by the Contractor at the Contractor’s expense.

2.3 Intent of Contract Documents
A. The Contract Documents are complementary; what is required by any one will be binding as if required by all. It is the intent of the Contract Documents to describe a functionally complete Project (or part thereof) to be constructed in accordance with the Contract Documents. Any labor, documentation, services, materials, or equipment that reasonably may be inferred from the Contract Documents or from prevailing custom or trade usage as being required to produce the indicated result will be provided whether or not specifically called for, at no additional cost to the City.

B. The Contractor shall furnish, unless otherwise provided in the Contract Documents, all materials, implements, machinery, equipment, tools, supplies and labor necessary to the prosecution and completion of the Project.

C. Clarifications and interpretations of the Contract Documents shall be issued by the Engineer as provided in these General Conditions.

D. If utilities to equipment/fixtures are not shown but are necessary to operate the equipment/fixtures, the utilities service installation is considered to be part of the Work. The implied Work will conform to the appropriate sections of the Contract Documents.

E. Organization of the Contract Documents into divisions, sections, and articles, and arrangement of drawings shall not control the Contractor in dividing Work among Subcontractors or in establishing the extent of Work to be performed by any trade.

2.4 Reference Standards.

A. Standards, Specifications, Codes, Laws, and Regulations.

1. Reference to federal specifications, federal standards, other standards, specifications, manuals, or codes of any technical society, organization, or association, or to Applicable Laws, whether such reference be specific or by implication, shall mean the standard, specification, manual, code, or Applicable Laws in effect at the time of opening of Bids (or on the Effective Date of the Contract if there were no Bids), except as may be otherwise specifically stated in the Contract Documents.

2. No provision of any such standard, specification, manual, or code, or any instruction of a Supplier, shall be effective to change the duties or responsibilities of the City, Contractor, or any of their Subcontractors, consultants, agents, or employees, from those set forth in the Contract Documents. No such provision or instruction shall be effective to assign to the City, or any of their officers, directors, Packet Page. 738
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members, partners, employees, agents, consultants, or subcontractors, any duty or authority to supervise or direct the performance of the Work or any duty or Packet Page. 739
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authority to undertake responsibility inconsistent with the provisions of the Contract Documents.

F. Reporting and Resolving Discrepancies; Order of Precedence.

1. Reporting Discrepancies.
a. The Contract Documents are intended to be fully cooperative and complementary. Before undertaking each part of the Work, Contractor shall carefully study and compare the Contract Documents and check and verify pertinent figures therein and all applicable field measurements. Contractor shall promptly report in writing to the City any conflict, error, ambiguity, or discrepancy which Contractor discovers, should have discovered, or has actual knowledge of, and shall obtain a written interpretation or clarification from the City before proceeding with any Work affected thereby. If, during the performance of the Work, Contractor discovers any conflict, error, ambiguity, or discrepancy within the Contract Documents, or between the Contract Documents and (i) any Applicable Law, (ii) any standard, specification, manual, or code, or (iii) any instruction of any Supplier, then Contractor shall promptly submit a written Request for Information (RFI) to the City. Contractor shall not proceed with the Work affected thereby (except in an emergency) until an amendment or supplement to the Contract Documents has been issued by one of the methods indicated in the Contract Documents, and any Work performed by Contractor before receipt of an amendment or supplement shall be at Contractor’s own risk.

2. Order of Precedence.
a. In case of conflicts between the Contract Documents, the order of precedence shall be as follows:
i. Permits from other agencies as may be required by law ii. Change Orders, most recent first
iii. Contract
iv. Addenda, most recent first
v. Special Conditions
vi. Specifications
vii. Construction Plans and Drawings(Contract Drawings) viii. General Conditions
ix. Instructions to Bidders
x. Notice Inviting Bids
xi. Contractor’s Bid (Bid Forms)
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l. Standard Specifications for Public Works Construction “Greenbook” latest edition (Sections 1-9 Excluded)
m. Applicable Local Agency Standards and Specifications n. Standard Drawings
o. Reference Documents

3. With reference to the Drawings the order of precedence shall be as follows:
a. Figures govern over scaled dimensions
b. Detail drawings govern over general drawings
c. Addenda/Change Order drawings govern over Drawings
d. Contract Drawings govern over Standard Drawings
e. Contract Drawings govern over Shop Drawings

4. Notwithstanding the orders of precedence established above, in the event of conflicts, the higher standard, higher quality and most expensive shall always apply.

2.6 Amending and Supplementing Contract Documents.

A. The Contract Documents may be amended to provide for additions, deletions, and revisions in the Work or to modify the terms and conditions thereof only by Change Order or written amendment to the Contract duly executed by the parties.

B. The requirements of the Contract Documents may be supplemented, and minor variations and deviations in the Work may be authorized at no cost to the City, by one or more of the following ways:

1. The City’s review of a Submittal, Shop Drawing, Sample or substitution request without exception (subject to the provisions of the Contract Documents); or

2. The City’s issuance of a response to an RFI.

C. However, no review or RFI response will reduce or modify the Contractor’s obligation to fully satisfy and comply with the requirements of the Contract Documents.

2.7 Reuse of Documents.

A. Contractor and any Subcontractor or Supplier shall not:

1. have or acquire any title to or ownership rights in any of the Drawings, Specifications, or other documents (or copies of any thereof) prepared by or bearing the seal of Engineer of Record or its consultants, including electronic media editions; or
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b. reuse any such Drawings, Specifications, other documents, or copies thereof on extensions of the Project or any other project without written consent of the City and Engineer of Record and specific written verification or adaptation by Engineer of Record.

B. The prohibitions of this Article will survive final payment, or termination of the Contract. Nothing herein shall preclude Contractor from retaining copies of the Contract Documents for record purposes.

ARTICLE 3 -INDEMNIFICATION; INSURANCE

3.1 Indemnification
A. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against:

1. Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers.

2. Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements.

3. Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor;

4. Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party.

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B. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782.

C. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article.

2.5 Insurance
The Contractor shall obtain, and at all times during performance of the Work of Contract, maintain all of the insurance described in this Article. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required hereunder. Contractor shall not allow any Subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this Article. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Contract for cause. Contractor shall furnish the City with original certificates of insurance and endorsements effective coverage required by this Contract on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms acceptable to the City. All certificates and endorsements must be received and approved by the City before Work commences.

A. Additional Insureds; Waiver of Subrogation. The City, its officials, officers, employees, agents and authorized volunteers shall be named as Additional Insureds on Contractor’s All Risk policy and on Contractor’s and its subcontractors’ policies of Commercial General Liability and Automobile Liability insurance using, for Contractor’s policy/ies of Commercial General Liability insurance, ISO CG forms 20 10 and 20 37 (or endorsements providing the exact same coverage, including completed operations), and, for subcontractors’ policies of Commercial General Liability insurance, ISO CG form 20 38 (or endorsements providing the exact same coverage). Notwithstanding the minimum limits set forth in this Contract for any type of insurance coverage, all available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as Additional Insureds hereunder. All insurance coverage maintained or procured pursuant to this Contract shall be endorsed to waive subrogation against the City, its officers, officials, agents, employees or volunteers or shall specifically allow Contractor - or others providing insurance evidence in compliance with these specifications - to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. Copies of these waivers shall be submitted to the City prior to commencement of work.

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B. Workers’ Compensation Insurance. The Contractor shall provide workers’ compensation insurance for all of the employees engaged in Work under this Contract, on or at the Site, and, in case of any sublet Work, the Contractor shall require the subcontractor similarly to provide workers’ compensation insurance for all the latter’s employees as prescribed by State law. Any class of employee or employees not covered by a subcontractor’s insurance shall be covered by the Contractor’s insurance. In case any class of employees engaged in work under this Contract, on or at the Site, is not protected under the Workers’ Compensation Statutes, the Contractor shall provide or shall cause a subcontractor to provide, adequate insurance coverage for the protection of such employees not otherwise protected. The Contractor is required to secure payment of compensation to his employees in accordance with the provisions of section 3700 of the Labor Code.

The Contractor shall file with the City certificates of his insurance protecting workers.

Company or companies providing insurance coverage shall be acceptable to the City, if in the form and coverage as set forth in the Contract Documents.

C. Employer’s Liability Insurance. Contractor shall provide Employer’s Liability Insurance, including Occupational Disease, in the amount of at least one million dollars ($1,000,000.00) per person per accident. Contractor shall provide the City with a certificate of Employer’s Liability Insurance. Such insurance shall comply with the provisions of the Contract Documents. The policy shall be endorsed, if applicable, to provide a Borrowed Servant/Alternate Employer Endorsement and contain a Waiver of Subrogation in favor of the City.

D. Commercial General Liability Insurance. Contractor shall provide “occurrence” form Commercial General Liability insurance coverage at least as broad as the most current ISO CGL Form 00 01, including but not limited to, premises liability, contractual liability, products/completed operations, personal and advertising injury which may arise from or out of Contractor’s operations, use, and management of the Site, or the performance of its obligations hereunder. The policy shall not contain any exclusion contrary to this Contract including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 39); or (2) cross-liability for claims or suits against one insured against another. Policy limits shall not be less than $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Defense costs shall be paid in addition to the limits.

1. Such policy shall comply with all the requirements of this Article. The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Contractor from liability in excess of such coverage, nor shall it limit Contractor’s indemnification obligations to the City, and shall not preclude the City from taking such other actions available to the City under other provisions of the Contract Documents or law.

2. All general liability policies provided pursuant to the provisions of this Article shall comply with the provisions of the Contract Documents.

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c. All general liability policies shall be written to apply to all bodily injury, including death, property damage, personal injury, owned and non-owned equipment, blanket contractual liability, completed operations liability, explosion, collapse, under-ground excavation, removal of lateral support, and other covered loss, however occasioned, occurring during the policy term, and shall specifically insure the performance by Contractor of that part of the indemnification contained in these General Conditions relating to liability for injury to or death of persons and damage to property.
d. If the coverage contains one or more aggregate limits, a minimum of 50% of any such aggregate limit must remain available at all times; if over 50% of any aggregate limit has been paid or reserved, the City may require additional coverage to be purchased by Contractor to restore the required limits. Contractor may combine primary, umbrella, and as broad as possible excess liability coverage to achieve the total limits indicated above. Any umbrella or excess liability policy shall include the additional insured endorsement described in the Contract Documents.
e. All policies of general liability insurance shall permit and Contractor does hereby waive any right of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss.

B. Automobile Liability Insurance. Contractor shall provide Automobile Liability Insurance at least as broad as ISO CA 00 01 (Any Auto) in the amount of, at least, one million dollars ($1,000,000) per accident for bodily injury and property damage.

Such insurance shall provide coverage with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by Contractor or for which Contractor is responsible, in a form and with insurance companies acceptable to the City. All policies of automobile insurance shall permit and Contractor does hereby waive any right of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss.

C. Privacy/Network Security (Cyber). Not required.

D. Aviation and/or Drone Liability. If Contractor shall utilize drones as part of the Work, Contractor shall provide Aviation and/or Drone Liability Insurance, in a form and with insurance companies acceptable to City, in the amount of, at least, one million dollars ($1,000,000) per occurrence limit. Such insurance shall provide coverage for bodily injury and property damage.

E. Contractor’s Pollution Liability Coverage. Contractor shall provide pollution liability insurance in an amount not less than $1,000,000 per occurrence and $2,000,000 aggregate.

F. Contractor shall require all tiers of Subcontractors working under this Contract to provide the insurance required under this Article unless otherwise agreed to in writing by the City. Contractor shall make certain that any and all Subcontractors hired by Contractor are insured in accordance with this Contract. If any Subcontractor’s coverage does not comply with the foregoing provisions, Contractor Packet Page. 745
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shall indemnify and hold the City harmless from any damage, loss, cost, or expense, including attorneys’ fees, incurred by the City as a result thereof.

3. Notwithstanding the minimum limits set forth in this Contract for any type of insurance coverage, if Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

4. Form and Proof of Carriage of Insurance
a. Any insurance carrier providing insurance coverage required by the Contract Documents shall be admitted to and authorized to do business in the State of California unless waived, in writing, by the City’s Risk Manager. Carrier(s) shall have an A.M. Best rating of not less than an A:VII. Insurance deductibles or self-insured retentions must be declared by the Contractor.

At the election of the City the Contractor shall either 1) reduce or eliminate such deductibles or self-insured retentions, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. If umbrella or excess liability coverage is used to meet any required limit(s) specified herein, the Contractor shall provide a “follow form” endorsement satisfactory to the City indicating that such coverage is subject to the same terms and conditions as the underlying liability policy. b. Each insurance policy required by this Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced or cancelled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its officials, officers, agents, employees, and volunteers.
c. The Certificates(s) and policies of insurance shall contain or shall be endorsed to contain the covenant of the insurance carrier(s) that it shall provide no less than thirty (30) days written notice be given to the City prior to any material modification or cancellation of such insurance.

In the event of a material modification or cancellation of coverage, the City may terminate the Contract or stop the Work in accordance with the Contract Documents, unless the City receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage’s set forth herein and the insurance required herein is in full force and effect. Contractor shall not take possession, or use the Site, or commence operations under this Contract until the City has been furnished original Certificate(s) of Insurance and certified original copies of endorsements or policies of insurance including all endorsements and any and all other attachments as required in this Article. The original endorsements for each policy and the Certificate of Insurance shall be signed by an individual authorized by the insurance carrier to do so on its behalf. d. The Certificate(s) of Insurance, policies and endorsements shall so covenant and shall be construed as primary, and the City’s insurance and/or deductibles and/or Packet Page. 746
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self-insured retentions or self-insured programs shall not be construed as contributory.
e. The City reserves the right to adjust the monetary limits and types of insurance coverages during the term of this Contract including any extension thereof if, in the City’s reasonable judgment, the amount or type of insurance carried by the Contractor becomes inadequate. f. Contractor shall report to the City, in addition to the Contractor’s insurer, any and all insurance claims submitted by the Contractor in connection with the Work under this Contract. g. Products/completed operations coverage shall extend a minimum of three years after the project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officers, officials, agents employees, and volunteers shall be included as insureds under the policy.

ARTICLE 3 -CONTRACTOR RESPONSIBILITIES; REGULATORY REQUIREMENTS

3.2 Applicable Laws
A. Contractor shall give all notices required by and shall comply with all Applicable Laws applicable to the performance of the Work. Except where otherwise expressly required by Applicable Laws, neither the City nor the City’s Representative shall be responsible for monitoring Contractor’s compliance with any Applicable Laws. If Contractor performs any Work knowing or having reason to know that it is contrary to Applicable Laws, Contractor shall bear all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to such Work.

3.3 Permits and Licenses
A. Permits and licenses necessary for prosecution of the Work shall be secured and paid for by Contractor, including, but not limited to, excavation permit, for plumbing, mechanical and electrical work and for operations in or over public streets or right of way under jurisdiction of public agencies other than the City, unless otherwise specified in the Contract Documents.

B. The Contractor shall arrange and pay for all off-site inspection of the Work related to permits and licenses, including certification, required by the specifications, drawings, or by governing authorities, except for such off-site inspections delineated as the City’s responsibility pursuant to the Contract Documents.

C. Before acceptance of the Work, the Contractor shall submit all licenses, permits, certificates of inspection and required approvals to the City.

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5.3 Taxes
A. Contractor shall pay all sales, consumer, use, and other similar taxes required to be paid in accordance with the Applicable Laws of the place of the Project which are applicable during the performance of the Work. In accordance with Revenue and Taxation Code section 107.6, the Contract Documents may create a possessory interest subject to personal property taxation for which Contractor will be responsible.

5.4 Traffic Control
A. Traffic control plans, if required, shall be prepared at Contractor’s expense. Traffic control shall be performed at Contractor’s expense in accordance with the requirements of the City and/or the local agency with jurisdiction. Costs for traffic control plans, implementation of traffic control, or traffic signal services required by the City shall be included in the Contractor’s Bid.

B. All warning signs and safety devices used by the Contractor to perform the Work shall conform to the requirements contained in the State of California, Department of Transportation’s current edition of “Manual of Traffic Controls for Construction and Maintenance Work Zones” or to the requirements of the local agency. The Contractor shall also be responsible for all traffic control required by the agency having jurisdiction over the Project on the intersecting streets. Contractor must submit a traffic control plan to the agency having jurisdiction over the Project for approval prior to starting Work.

C. The Contractor’s representative on the site responsible for traffic control shall produce evidence that he/she has completed training acceptable to the California Department of Transportation for safety through construction zones. All of the streets in which the Work will occur shall remain open to traffic and one lane of traffic maintained at all times unless otherwise directed by the agency of jurisdiction.

Businesses and residences adjacent to the Work shall be notified forty-eight (48) hours in advance of closing of driveways. The Contractor shall make every effort to minimize the amount of public parking temporarily eliminated due to construction in areas fronting businesses. No stockpiles of pipe or other material will be allowed in traveled right-of-ways after working hours unless otherwise approved by the Engineer.

5.5 Safety
A. Contractor shall be solely responsible for all safety precautions and programs in connection with the Work. Such responsibility does not relieve Subcontractors of their responsibility for the safety of persons or property in the performance of their work, nor for compliance with applicable safety laws. Contractor shall comply with all Applicable Laws relating to the safety of persons or property, or to the protection of persons or property from damage, injury, or loss; and shall erect and maintain all necessary safeguards for such safety and protection. Contractor shall notify owners of adjacent property and of Underground Facilities and other utility owners when prosecution of the Work may affect them, and shall cooperate with them in the protection, removal, relocation, and replacement of their property.

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B. The Contractor shall maintain emergency first aid treatment for his 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. The Contractor shall ensure the availability of emergency medical services for its employees in accordance with California Code of Regulations, Title 8, Section 1512. The Contractor shall submit an Illness and Injury Prevention Program and a Project Site specific safety program to the City prior to beginning Work. Contractor shall maintain a confined space program that meets or exceeds the City’s standards. Contractor needs to make themselves aware of the City’s safety policies and procedures, and shall meet or exceed all City standards in areas where the City must enter to perform inspections.

C. Hazard Communication Programs. Contractor shall be responsible for coordinating any exchange of material safety data sheets or other hazard communication information required to be made available to or exchanged between or among employers at the Site in accordance with Applicable Laws.

3.4 Hazardous Materials
A. The City shall not be responsible for any Hazardous Waste brought to the site by the Contractor. If the Contractor: (i) introduces and/or discharges a Hazardous Waste onto the site in a manner not specified by the Contract Documents; and/or (ii) disturbs a Hazardous Material identified in the Contract Documents, the Contractor shall hire a qualified remediation contractor at Contractor’s sole cost to eliminate the condition as soon as possible. Under no circumstance shall the Contractor perform Work for which it is not qualified. The City, in its sole discretion, may require the Contractor to retain at Contractor’s cost an independent testing laboratory.

B. If the Contractor encounters a Hazardous Waste which may cause foreseeable injury or damage, Contractor shall immediately: (i) secure or otherwise isolate such condition; (ii) stop all Work in connection with such material or substance (except in an emergency situation); and (iii) notify the City (and promptly thereafter confirm such notice in writing).

C. Subject to Contractor’s compliance with this Article 5.6(B), the City shall verify the presence or absence of the Hazardous Waste reported by the Contractor, except as qualified under Article 5.6(A) and Article 5.6(B) in the event such material or substance is found to be present, verify that the levels of the hazardous material are below OSHA Permissible Exposure Levels and below levels which would classify the material as a state of California or federal hazardous waste. When the material falls below such levels, Work in the affected area shall resume upon direction by the City.

D. Contractor shall indemnify and hold harmless the City from and against claims, damages, losses and expenses, arising from a Hazardous Waste on the Project Site, if such Hazardous Waste exceeded OSHA Permissible Exposure Levels or levels which would classify the material as a state of California or federal hazardous waste, and was either i) shown on the Contract Documents or information available to bidders; or (ii) brought to the site by Contractor. Nothing in this paragraph shall Packet Page. 749
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obligate the Contractor to indemnify the City in the event of the sole or active negligence or willful misconduct of the City, its officers, agents, or employees.

G. Sanitary Facilities.

1. Contractor shall provide sanitary temporary toilet buildings and hand washing facilities for the use of all workers. All toilets and hand washing facilities shall comply with local codes and ordinances. Toilets shall be placed inside sealed secondary containment devices installed on a flat, level surface. Accumulated liquids in the secondary containment devices shall be properly removed and legally disposed without spillage onto the ground. Toilets shall be kept supplied with toilet paper and shall have workable door fasteners. Toilets and hand washing facilities shall be serviced no less than once weekly and shall be present in a quantity of not less than 1 per 20 workers as required by Cal/OSHA regulations. The toilets and hand washing facilities shall be maintained in a sanitary condition at all times. Use of toilet and hand washing facilities in the Work under construction shall not be permitted.

Any other sanitary facilities required by Cal/OSHA shall be the responsibility of the Contractor.

H. Dust Control

1. Contractor, at its expense, shall maintain all excavations, embankments, haul roads, permanent access roads, plant sites, waste disposal areas, borrow areas, and all other work areas free from dust. Industry accepted methods of dust control suitable for the area involved, such as sprinkling, chemical treatment, light bituminous treatment or similar methods, will be permitted.

I. Air Pollution Control

1. Contractor shall comply with all air pollution control rules, regulations, ordinances and statutes. All containers of paint, thinner, curing compound, solvent or liquid asphalt shall be labeled to indicate that the contents fully comply with the applicable material requirements.

2. Without limiting the foregoing, Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the Air Quality Management District with jurisdiction over the Project and/or California Air Resources Board (CARB). Contractor shall specifically be aware of the application of these limits and requirements to "portable equipment", which definition includes any item of equipment with a fuel-powered engine. Contractor shall indemnify the City against any fines or penalties imposed by the air quality management district, CARB, or any other governmental or regulatory agency for its violations of Applicable Laws as well as those of its subcontractors or others for whom Contractor is responsible under its indemnity obligations provided for in the Contract Documents.

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5.10 Water Quality Management and Compliance
A. Storm, surface, ground, nuisance, or other waters may be encountered at various times during construction of the Work. The Contractor hereby acknowledges that it has investigated the risk arising from such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising therefrom.

B. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions regulating discharges of storm water; the Federal Water Pollution Control Act (33 U.S.C. § 13000 et seq.); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000- 14950); and any and all regulations, policies, or permits issued pursuant to any such authority. These include, but are not limited to California State Water Resources Control Board Order Number 2009-0009-DWQ (NPDES Permit No. CAS000002), as amended by Order Numbers 2010-0014-DWQ, 2012-0006-DWQ, and any subsequent amendment to or renewal thereof, State Water Resources Control Board Order No. 2013-0001-DWQ (NPDES Order No. CAS000004), Santa Ana Regional Water Quality Control Board No. R8-2010-0036 (NPDES No. CAS618036), and any amendment or renewal thereof.

C. Contractor shall comply with all conditions of the State Water Resources Control Board (“State Water Board”) National Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for Discharges of Storm Water Runoff Associated with Construction Activity (“Construction General Permit”) for all construction activity which results in the disturbance of in excess of one acre of total land area or which is part of a larger common area of development or sale.

Contractor shall comply with the lawful requirements of the City, and any other applicable municipality, drainage district, or other local agency with jurisdiction over the location where the Work is to be conducted, regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.

D. Unless otherwise specified in the Special Conditions or other portion of the Contract Documents, the City has not prepared a Storm Water Pollution Prevention Plan (“SWPPP”) or other storm water compliance plan for the Project Site. Contractor shall be responsible for filing the Notice of Intent (“NOI”) and for obtaining coverage under the Construction General Permit. This includes filing all necessary documentation including the Permit Registration Documents (“PRDs”) through the Stormwater Multiple Applications and Report Tracking System (“SMARTS”); preparing and implementing a SWPPP for the Work site; implementing all other provisions, and monitoring and reporting requirements required by the Construction General Permit; and providing a Qualified SWPPP Developer (“QSD”) and Qualified SWPPP Practitioner (“QSP”), as necessary for all Work site activities, including but not limited to preparation and submittal of all reports, plans, inspections, and monitoring information in compliance with the Construction General Permit. All submittals shall be coordinated with the City’s Legally Responsible Person and Authorized Signatory as those terms are defined in the Construction General Permit.

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document may be submitted to the State Water Board or implemented on the Project site, it must first be reviewed and approved by the City and/or City’s designee.

Contractor shall include all costs of compliance with specified requirements in the Contract Price.

3. The City retains the right to develop its own documentation for the Project site, including but not limited to the SWPPP, and in the alternative may require Contractor to adopt and implement portions of the City developed SWPPP. The City expressly reserves the right to procure coverage under the Construction General Permit for the Work site if Contractor fails to draft satisfactory PRDs or SWPPP or otherwise fails to proceed in a manner that complies with the requirements of the Construction General Permit. The City additionally reserves the right to hire additional contractors to maintain compliance at the Work site. Whether Contractor has adequately maintained compliance with the Construction General Permit shall be the City’s sole determination. Any costs incurred by the City in procuring coverage under the Construction General Permit, or drafting and/or implementing a SWPPP for the Work site shall be paid by Contractor.

4. Notwithstanding the above, for those Work sites where construction activity results in the disturbance of less than one acre of total land area and/or do not need coverage under the Construction General Permit, the Contractor shall be responsible for preparing and implementing an Erosion and Sediment Control Plan in accordance with State Water Resources Control Board Order No. 2013-0001- DWQ (NPDES Order No. CAS000004) and any amendment to or renewal thereof.

5. Failure to comply with the Construction General Permit, laws, regulations, and ordinances listed in this Article is a violation of federal and state law.

Notwithstanding any other indemnity contained in these Contract Documents, Contractor agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, fees, costs, expenses, or losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the Permit, laws, regulations, and ordinances listed above, arising out of or in connection with the Work, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers.

6. The City reserves the right to defend any enforcement action or civil action brought against the City for Contractor’s failure to comply with any applicable water quality law, regulation, or policy. Contractor hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and any relevant enforcement entity.

3.5 Environmental Quality Protection
A. The Contractor shall comply with all requirements of applicable federal, state, and local environmental rules and regulations. Any infractions of said rules and regulations by the Contractor during the term of the Contract, which result in penalties, will be the responsibility of the Contractor. The City operates under a number of environmental permits issued by various agencies. If due to an action, Packet Page. 752
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inaction, or negligence by the Contractor, the City becomes subject to noncompliance penalties, the cost of such penalties shall be borne by the Contractor.

7. The Contractor shall exercise care to preserve the natural landscape and vegetation, and shall conduct operations so as to prevent unnecessary destruction, scarring, or defacing of the natural surroundings in the vicinity of the Work.

Movement of crews and equipment within the rights-of-way and over routes provided for access to the Work shall be performed in a manner to prevent damage to property. When no longer required, construction roads shall be restored to original contours. Upon completion of the Work, and following removal of construction facilities and required cleanup, land used for construction purposes and not required for the completed installation shall be scarified and regraded, as required, so that all surfaces are left in a condition that will facilitate natural revegetation, provide for proper drainage, and prevent erosion.

8. If, in the performance of the Work, evidence of the possible occurrence of any Federally listed threatened or endangered plant or animal is discovered, the Contractor shall notify the City Representative immediately, giving the location and nature of the findings. Written confirmation of the evidence, location and nature of the findings shall be forwarded to City within two (2) Days. The Contractor shall immediately cease all construction activities in the immediate area of the discovery to the extent necessary to protect the endangered plant or animal. If directed by the City Representative, Contractor will refrain from working in the immediate area, suspend the Work in its entirety, or alter its performance to ensure full compliance with all applicable permits, laws and regulations. Any City directed changes to the Work as a result of a siting will be pursuant to the Contract Documents. Any costs or delays incurred by City or the Contractor due to unreasonable or false notification of an endangered plant or animal will be borne by the Contractor.

9. If, in the performance of the Work, Contractor should unearth cultural resources (for example, human remains, animal bones, stone tools, artifacts and/or midden deposits) through excavation, grading, watering or other means, the Contractor shall notify the construction/archeological monitor and/or the City Representative immediately, giving the location and nature of the findings. Written confirmation of the evidence, location and nature of the findings shall be forwarded to the construction/archeological monitor and/or City within two (2) Days. The Contractor shall immediately cease all construction activities in the immediate area of the discovery to the extent necessary to protect the cultural resource. If directed by the City Representative, Contractor will refrain from working in the immediate area, suspend the Work in its entirety, or re-sequence and/or alter its performance to ensure full compliance with all applicable permits, laws and regulations. Should the presence of cultural resources be confirmed, the Contractor will assist the City Representative and the construction/archeological monitor in the preparation and implementation of a data recovery plan. The Contractor shall provide such cooperation and assistance as may be necessary to preserve the cultural resources for removal or other disposition. Any City directed changes to the Work as a result of the cultural resource will be pursuant to the Contract Documents. Should Contractor, without permission, injure, destroy, excavate, appropriate, or remove any cultural resource on or adjacent to the Site, it will be subject to disciplinary action, arrest and penalty under applicable law. The Contractor shall be principally Packet Page. 753
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responsible for all costs of mitigation and/or restoration of cultural resources related to the unauthorized actions identified above. Contractor shall be required to pay for unauthorized damage and mitigation costs to cultural resources (historical and archeological resources) as a result of unauthorized activities that damage cultural resources and shall indemnify City pursuant to the Contract Documents.

J. Excessive Noise

1. Contractor shall use only such equipment on the Work and in such state of repair so that the emission of sound therefrom is within the noise tolerance level of that equipment as established by Cal/OSHA. Contractor shall comply with the most restrictive of the following: (1) local sound control and noise level rules, regulations and ordinances and (2) the requirements contained in these Contract Documents, including hours of operation requirements.

2. No internal combustion engine shall be operated on the Project without a muffler of the type recommended by the manufacturer. Should any muffler or other control device sustain damage or be determined to be ineffective or defective, the Contractor shall promptly remove the equipment and shall not return said equipment to the job until the device is repaired or replaced. Said noise and vibration level requirements shall apply to all equipment on the job or related to the job, including but not limited to, trucks, transit mixers or transit equipment that may or may not be owned by the Contractor.

K. Diversion of Recyclable Waste Material

1. In compliance with the applicable City’s waste reduction and recycling efforts, Contractor shall divert all Recyclable Waste Materials to appropriate recycling centers as required for compliance with the local jurisdiction’s waste diversion ordinances. Contractor will be required to submit weight tickets and written proof of diversion with its monthly progress payment requests. Contractor shall complete and execute any certification forms required by the City or other applicable agencies to document Contractor’s compliance with these diversion requirements. All costs incurred for these waste diversion efforts shall be the responsibility of the Contractor.

L. Inspector’s Field Office.

1. If required by the City, the Contractor shall be responsible for providing the inspector’s field office. The office shall be a substantial waterproof construction with adequate natural light and ventilation by means of stock design windows. Door shall have a key type lock or padlock clasp. The office shall have heating and air conditioning and shall be equipped with a telephone, a telephone answering machine, an ability to connect to the internet, and a fax machine at Contractor’s expense. The field office shall be provided within 20 Days of the Notice to Proceed.

2. A table satisfactory for the study of plans and two chairs shall be provided by Contractor. Contractor shall provide and pay for adequate electric lights, local telephone service, and adequate heat and air conditioning for the field office until authorized removal.

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5.15 Contractor’s Supervision.

A. Contractor shall continuously keep at the Project site, a competent and experienced full-time Project superintendent acceptable to the City. Superintendent must be able to proficiently speak, read and write in English and shall have the authority to make decisions on behalf of the Contractor. Contractor shall continuously provide efficient supervision of the Project.

5.16 Workers.

A. Contractor shall at all times enforce strict discipline and good order among its employees. Contractor shall not employ on the Project any unfit person or any one not skilled in the Work assigned to him or her.

B. Any person in the employ of the Contractor whom the City may deem incompetent or unfit shall be dismissed from the Work and shall not be employed on this Project.

5.17 Independent Contractors.

A. Contractor shall be an independent contractor for the City and not an employee.

Contractor understands and agrees that it and all of its employees shall not be considered officers, employees, or agents of the City and are not entitled to benefits of any kind normally provided employees of the City, including but not limited to, state unemployment compensation or workers’ compensation. Contractor assumes full responsibility for the acts and omissions of its employees or agents related to the Work.

5.18 Verification of Employment Eligibility.

A. By executing the 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, sub-subcontractors and consultants to comply with the same. Each person executing this Contract on behalf of Contractor verifies that he or she is a duly authorized officer of Contractor and that any of the following shall be grounds for the City to terminate the Contract for cause: (1) failure of the Contractor or its Subcontractors, sub-subcontractors or consultants to meet any of the requirements provided for in this Article; (2) any misrepresentation or material omission concerning compliance with such requirements; or (3) failure to immediately remove from the Work any person found not to be in compliance with such requirements.

5.19 Labor.

A. Hours of Work

1. As provided in Article 3 (commencing at section 1810), Chapter 1, Part 7, Division 2 of the Labor Code, Contractor stipulates that eight (8) hours of labor shall constitute a legal day’s work. The time of service of any worker employed at any time by the Contractor or by any subcontractor on any subcontract under this Contract upon the Work or upon any part of the Work contemplated by this Packet Page. 755
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Contract is limited and restricted to eight (8) hours during any one calendar day and 40 hours during any one calendar week, except as hereinafter provided.

Notwithstanding the provisions herein above set forth, work performed by employees of Contractor in excess of eight (8) hours per day, and 40 hours during any one week, shall be permitted upon this public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than one and onehalf times the basic rate of pay. a. The Contractor and every Subcontractor shall keep an accurate record showing the name of and actual hours worked each calendar day and each calendar week by each worker employed in connection with the Work or any part of the Work contemplated by this Contract.

The record shall be kept open at all reasonable hours to the inspection of the City and to the Division of Labor Law Enforcement, Department of Industrial Relations of the State of California.
b. The Contractor shall pay to the City a penalty of twenty-five dollars ($25.00) for each worker employed in the execution of this Contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any calendar day and 40 hours in any one calendar week in violation of the provisions of Article 3 (commencing at section 1810), Chapter 1, Part 7, Division 2 of the Labor Code. c. Any work necessary to be performed after regular working hours, or on Saturdays and Sundays or other holidays, shall be performed without additional expense to the City. d. If Contractor gives notice of an inspection pursuant to the Contract Documents, the City will provide inspection during normal working hours from 7:00 a.m. to 3:30 p.m. Monday through Friday. Requested inspections before or after this time will be charged to the Contractor as reimbursable inspection time. Inspections on weekends requires two (2) Days’ notice for review and approval. Upon written request and approval the 8.5 hour working day may be changed to other limits subject to city/county ordinance. e. It shall be unlawful for any person to operate, permit, use, or cause to operate any of the following at the Project Site, other than between the hours of 7:00 a.m. to 5:00 p.m., Monday through Friday, with no Work allowed on City-observed Holidays, unless otherwise approved by the City:
i. Powered Vehicles
ii. Construction Equipment
iii. Loading and Unloading Vehicles
iv. Domestic Power Tools
B. Payroll Records; Labor Compliance

1. Pursuant to Labor Code section 1776, Contractor and all subcontractors shall maintain weekly certified payroll records, showing the names, addresses, Social Packet Page. 756
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Security numbers, work classifications, 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 them in connection with the Work under this Contract. Contractor shall certify under penalty of perjury that records maintained and submitted by Contractor are true and accurate. Contractor shall also require Subcontractor(s) to certify weekly payroll records under penalty of perjury.
f. In accordance with Labor Code section 1771.4, the Contractor and each Subcontractor shall furnish the certified payroll records directly to the Department of Industrial Relations (“DIR”) on the specified interval and format prescribed by the DIR, which may include electronic submission. Contractor shall comply with all requirements and regulations from the DIR relating to labor compliance monitoring and enforcement. 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.
g. 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 the 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. h. The payroll records described herein shall be certified and submitted by the Contractor at a time designated by the City. The Contractor shall also provide the following:
i. A certified copy of the employee’s payroll records shall be made available for inspection or furnished to such employee or his or her authorized representative on request.
ii. A certified copy of all payroll records described herein shall be made available for inspection or furnished upon request of the DIR.
i. Unless submitted electronically, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement (“DLSE”) of the DIR or shall contain the same information as the forms provided by the DLSE.
j. Any copy of records made available for inspection as copies and furnished upon request to the public or any public agency, the City, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement shall be marked or obliterated in such a manner as to prevent disclosure of an individual's name, address and social security number. The name and address of the Contractor awarded the Contract or performing the Contract shall not be marked or obliterated.

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k. In the event of noncompliance with the requirements of this Article, the Contractor shall have ten (10) Days in which to comply subsequent to receipt of written notice specifying in what respects the Contractor must comply with this Article. Should noncompliance still be evident after such 10-day period, the Contractor shall pay a penalty of one hundred dollars ($100.00) to the City for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payment then due.
l. The responsibility for compliance with this Article shall rest upon the Contractor.

C. Prevailing Rates of Wages

1. The Contractor is aware of the requirements of Labor Code sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. Since this Project involves an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. The Contractor shall obtain a copy of the prevailing rates of per diem wages at the commencement of this Contract from the website of the Division of Labor Statistics and Research of the Department of Industrial Relations located at www.dir.ca.gov. In the alternative, the Contractor may view a copy of the prevailing rate of per diem wages which are on file at the City’s Administration Office and shall be made available to interested parties upon request. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to perform work on the Project available to interested parties upon request, and shall post copies at the Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and authorized volunteers free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or allege failure to comply with the Prevailing Wage Laws.

2. The Contractor shall forfeit as a penalty to the City not more than Two Hundred Dollars ($200.00), pursuant to Labor Code section 1775, for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or craft in which such worker is employed for any public work done under the Contract by it or by any Subcontractor under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.

3. Contractor shall post, at appropriate conspicuous points on the Project Site, a schedule showing all determined general prevailing wage rates and all authorized deductions, if any, from unpaid wages actually earned.

D. Public Works Contractor Registration
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m. Pursuant to Labor Code sections 1725.5 and 1771.1, the Contractor and its Subcontractors must be registered with the DIR prior to the execution of a contract to perform public works.

By entering into this Contract, Contractor represents that it is aware of the registration requirement and is currently registered with the DIR. Contractor shall maintain a current registration for the duration of the Project. Contractor shall further include the requirements of Labor Code sections 1725.5 and 1771.1 in any subcontract and ensure that all Subcontractors are registered at the time this Contract is entered into and maintain registration for the duration of the Project. 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.

E. Employment of Apprentices

1. Contractor and all Subcontractors shall comply with the requirements of Labor Code sections 1777.5 and 1777.6 in the employment of apprentices.

2. 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.

3. Knowing violations of Labor Code section 1777.5 will result in forfeiture not to exceed one hundred dollars ($100.00) for each calendar day of non-compliance pursuant to Labor Code section 1777.7.

F. Nondiscrimination/Equal Employment Opportunity

1. Pursuant to Labor Code section 1735 and other applicable provisions of law, the Contractor and its Subcontractors shall not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or any other classifications protected by law on this Project. The Contractor will take affirmative action to insure that employees are treated during employment or training without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or any other classifications protected by law.

G. Debarment of Contractors and Subcontractors

1. 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. The Contractor shall be responsible for the payment Packet Page. 759
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of wages to workers of a debarred subcontractor who has been allowed to work on the Project.

M. Subcontracts.

1. Contractor agrees to bind every Subcontractor to the terms of the Contract Documents as far as such terms are applicable to Subcontractor’s portion of the Work. Contractor shall be as fully responsible to the City for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by its subcontractors, as Contractor is for acts and omissions of persons directly employed by Contractor. Nothing contained in these Contract Documents shall create any contractual relationship between any subcontractor and the City.

2. The City reserves the right to accept all subcontractors. The City’s acceptance of any Subcontractor under this Contract shall not in any way relieve Contractor of its obligations in the Contract Documents.

3. Prior to substituting any Subcontractor listed in the Bid Forms, Contractor must comply with the requirements of the Subletting and Subcontracting Fair Practices Act pursuant to California Public Contract Code section 4100 et seq.

N. Work Site.

1. Limitation of Use of Site and Other Areas. Rights-of-way, easements, or rights-ofentry for the Work will be provided by the City. Unless otherwise specified in the Special Provisions, the Contractor shall make arrangements, pay for, and assume all responsibility for acquiring, using, and disposing of additional work areas and facilities temporarily required. The Contractor shall indemnify and hold the City harmless from all claims for damages caused by such actions. Contractor shall confine construction equipment, the storage of materials and equipment, and the operations of workers to the Site and other areas permitted by Applicable Laws, and shall not unreasonably encumber the Site and other areas with construction equipment or other materials or equipment. Contractor shall assume full responsibility for any damage to any such land or area, or to City or occupant thereof, or of any adjacent land or areas resulting from the performance of the Work.

2. Site Maintenance. During the progress of the Work, Contractor shall keep the Site and other areas free from accumulations of waste materials, rubbish, and other debris. Removal and disposal of such waste materials, rubbish, and other debris shall conform to Applicable Laws. The Contractor shall furnish trash bins for all debris from construction. All debris shall be placed in trash bins daily. Forms and false-work that are to be re-used shall be stacked neatly concurrently with their removal. Forms and false-work that are not to be re-used shall be disposed of concurrently with their removal.

3. Cleaning. Prior to Completion of the Work, Contractor shall clean the Site and make it ready for utilization by the City. At the completion of the Work Contractor shall remove from the Site all tools, appliances, construction equipment and machinery, and surplus materials and shall restore to original condition all property not designated for alteration by the Contract Documents.

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5.22 Utility Usage.

A. All temporary utilities, including but not limited to electricity, water, gas, and telephone, used on the Work shall be furnished and paid for by Contractor.

Contractor shall provide necessary temporary distribution systems, including meters, if necessary, from distribution points to points on the Work where the utility is needed. Upon completion of the Work, Contractor shall remove all temporary distribution systems. Contractor shall provide necessary and adequate utilities and pay all costs for water, electricity, gas, oil, and sewer charges required for completion of the Work, including but not limited to startup and testing required in the Contract Documents. All permanent meters installed shall be listed in the Contractor’s name until the Work is accepted. For Work to be performed in existing City facilities, Contractor may use the City’s existing utilities, provided such use is reasonable under the circumstances. If Contractor uses the City utilities, it will not need to compensate the City for reasonably consumption of utilities, but Contractor will be responsible for any excessive, unreasonable or wasteful utility usage. Amounts due the City under this section may be deducted from progress payments.

5.23 Protection of Work and Property.

A. The Contractor shall digitally record video and take photographs of the Project site and adjacent improvements in a manner and quality that clearly depicts the existing condition of the Project Site and adjacent improvements immediately prior to the start of Work (minimum 1080p video and 4MP photo). All videos and photographs shall be date and time stamped. The Contractor shall submit the video and photos in digital format on a memory stick before the commencement of Work, along with a map outlining the route and locations of the videos and/or photographs. The Contractor shall be responsible for all damages to persons or property that occur as a result of the Work. Contractor shall be responsible for the proper care and protection of all materials delivered and Work performed until completion and final acceptance by the City. All Work shall be solely at the Contractor’s risk.

B. Contractor shall adequately protect adjacent property from settlement or loss of lateral support as necessary. Contractor shall comply with all applicable safety laws and building codes to prevent accidents or injury to persons on, about, or adjacent to the Project site where Work is being performed. Contractor shall erect and properly maintain at all times, as required by field conditions and progress of work, all necessary safeguards, signs, barriers, lights, and watchmen for protection of workers and the public, and shall post danger signs warning against hazards created in the course of construction.

C. Contractor shall provide such heat, covering, and enclosures as are necessary to protect all Work, materials, equipment, appliances, and tools against damage by weather conditions.

D. Contractor shall take adequate precautions to protect existing sidewalks, curbs, pavements, utilities, and other adjoining property and structures, and to avoid damage thereto, and Contractor shall repair any damage thereto caused by the Work operations. Contractor shall:

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a. Enclose the working area with a substantial barricade, and arrange work to cause minimum amount of inconvenience and danger to the public.
b. Provide substantial barricades around any shrubs or trees indicated to be preserved. c. Deliver materials to the Site over a route designated by the City. d. Provide any and all dust control required and follow the applicable air quality regulations as appropriate. If the Contractor does not comply immediately with a notice from the City or a public agency responsible for air quality, the City shall have the authority to provide dust control and deduct the cost from payments to the Contractor. e. Confine Contractor’s apparatus, the storage of materials, and the operations of its workers to limits required by law, ordinances, permits, or directions of the City. Contractor shall not unreasonably encumber the Site with its materials.
f. Take care to prevent disturbing or covering any survey markers, monuments, or other devices marking property boundaries or corners. If such markers are disturbed by accident, they shall be replaced by a civil engineer or land surveyor acceptable to the City, at no cost to the City. g. Ensure that existing facilities, fences and other structures are all adequately protected and that, upon completion of all Work, all facilities that may have been damaged are restored to a condition acceptable to the City.
h. Preserve and protect from injury all buildings, pole lines and all directional, warning and mileage signs that have been placed within the right-of-way. i. At the completion of work each day, leave the Work and the Site in a clean, safe condition. j. Comply with any stage construction and/or traffic handling plans. Access to residences and businesses shall be maintained at all times, except with the City’s written approval. Any request for approval to reduce or restrict access to residences and business must be submitted to the City at least seven (7) Days in advance, and the City may issue or withhold approval in its sole discretion.

H. These precautionary measures will apply continuously and not be limited to normal working hours. Full compensation for the work involved in the protection and preservation of life, safety and property as above specified shall be considered as included in the prices paid for the various contract items of Work, and no additional allowance will be made therefor.

I. Should damage to persons or property occur as a result of the Work, Contractor shall promptly notify the City, in writing. Contractor shall be responsible for proper investigation, documentation, including video or photography, to adequately memorialize and make a record of what transpired. The City shall be entitled to inspect and copy any such documentation, video, or photographs.

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G. Contractor shall maintain all investigation documentation including video and/or photographs for a minimum of four (4) years following completion of the Project.

3.6 Emergencies.

A. In emergencies affecting the safety or protection of persons or the Work or Property at the Site or adjacent thereto, the Contractor, without special instruction or authorization from the City or the Engineer, is obligated to act to prevent threatened damage, injury or loss. The Contractor shall give the Engineer prompt written notice if the Contractor believes that any significant changes in the Work or variations from the Contract Documents have been caused thereby.

ARTICLE 4 -SUBSURFACE AND PHYSICAL CONDITIONS; UTILITIES

4.1 Soils Investigations.

A. When a soils investigation report for the Site is available, such report is provided for informational purposes only. Any information obtained from such report as to subsurface soil condition, or to elevations of existing grades or elevations of underlying rock, is approximate only and is not guaranteed. Contractor acknowledges that any soils investigation report (including any borings) was prepared for purposes of design only and Contractor is required to examine the Site before submitting its Bid and must make whatever tests it deems appropriate to determine the condition of the soil.

4.2 Ownership of Site Materials Found.

A. The title to water, soil, rock, gravel, sand, minerals, timber and any other materials developed or obtained in the excavation or other operations of Contractor or any of its Subcontractors in the performance of the Contract, and the right to use said items in carrying out the Contract, or to dispose of same, is hereby expressly reserved by the City. Neither Contractor nor any of its Subcontractors nor any of their representatives or employees shall have any right, title, or interest in said materials, nor shall they assert or make any claim thereto. Contractor will, as determined by the City’s Representative, be permitted to use in the Work without charge, any such materials which meet the requirements of the Contract Documents, provided the City shall have the right to use or consume these materials without payment to a third party.

4.3 Existence of Utilities at the Work Site.

A. Existing Utilities

1. The location of known existing utilities and pipelines are shown on the Plans in their approximate locations. However, nothing herein shall be deemed to require the City to indicate the presence of existing service laterals or appurtenances whenever the presence of such utilities on the site of the project can be inferred from the presence of other visible facilities, such as buildings, cleanouts, meter and junction boxes, on or adjacent to the Site of the Project.

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k. The City will assume the responsibility for the timely removal, relocation, or protection of existing main or trunk line utility facilities located on the Project site if such utilities are not identified by the City in the Contract Documents or which cannot reasonably be inferred from the presence of other visible facilities.

B. Utility Location

1. It shall be the Contractor’s responsibility to determine the exact location and depth of all utilities, including service connections, which have been marked by the respective utility owners and which the Contractor believes may affect or be affected by the Contractor’s operations. The Contractor shall not be entitled to additional compensation nor time extensions for work necessary to avoid interferences nor for repair to damaged utilities if the Contractor does not expose all such existing utilities as required by this Article.

2. The locating of utilities shall be in conformance with Government Code Section 4216 et seq. except for the City’s utilities located on the City’s property and not on public right-of-way.

3. A “High Priority Subsurface Installation” is defined in Government Code Section 4216 (j) as “high-pressure natural gas pipelines with normal operating pressures greater than 415kPA gauge (60psig) or greater than six inches nominal pipe diameter, petroleum pipelines, pressurized sewage pipelines, high-voltage electric supply lines, conductors, or cables that have a potential to ground of greater than or equal to 60kv, or hazardous materials pipelines that are potentially hazardous to workers or the public if damaged.”

4. A “Subsurface Installation” is defined in Government Code Section 4216 (s) as “any underground pipeline, conduit, duct, wire, or other structure, except nonpressurized sewer lines, nonpressurized storm drains, or other nonpressurized drain lines.”

5. Pursuant to Government Code Section 4216.2 the Contractor shall contact the appropriate regional notification center at least two (2) working days but not more than 14 Days before performing any excavation. The date of the notification shall not count as part of the two-working-day notice. Before notifying the appropriate regional notification center, the Contractor shall delineate the area to be excavated. The Contractor shall request that the utility owners conduct a utility survey and mark or otherwise indicate the location of their service. The Contractor shall furnish to the Engineer written documentation of its contact(s) with the regional notification center prior to commencing excavation at such locations.

6. After the utility survey is completed, the Contractor shall commence “potholing” or hand digging to determine the actual location of the pipe, duct, or conduit and in accordance with Government Code Section 4216.4 if the excavation within the “tolerance zone” of a subsurface installation. The Engineer shall be given notice prior to commencing potholing operations. The Contractor shall uncover all piping and conduits, to a point one (1) foot below the pipe, where crossings, interferences, or connections are shown on the Drawings, prior to trenching or excavating for any pipe or structures, to determine actual elevations. New pipelines shall be laid to Packet Page. 764
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such grade as to clear all existing facilities, which are to remain in service for any period subsequent to the construction of the run of pipe involved. l. The Contractor's attention is directed to the requirements of Government Code Section 4216.2 (c) which provides: “When the excavation is proposed within 10 feet of a high priority subsurface installation, the operator of the high priority subsurface installation shall notify the excavator of the existence of the high priority subsurface installation to set up an onsite meeting prior to the legal excavation start date and time or at a mutually agreed upon time to determine actions or activities required to verify the location and prevent damage to the high priority subsurface installation. As part of the meeting, the excavator shall discuss with the operator the method and tools that will be used during the excavation and the information the operator will provide to assist in verifying the location of the subsurface installation. The excavator shall not begin excavating until after the completion of the onsite meeting.” The Contractor shall notify the Engineer in advance of this meeting.

C. Utility Relocation and Repair

1. If interferences occur at locations other than those indicated in the Contract Documents with reasonable accuracy, the Contractor shall notify the Engineer in writing. The Engineer will supply a method for correcting said interferences in accordance with the responsibilities of this section and Government Code Section 4215. To the extent any delay is caused thereby, Contractor shall submit a notice of delay within five (5) Days of discovery of the circumstances giving rise to the delay in accordance with Article 9.1 Change Orders and Time Extensions.

2. Care shall be exercised by the Contractor to prevent damage to adjacent existing facilities and public or private works; where equipment will pass over these obstructions, suitable planking shall be placed. If high priority subsurface installations are damaged and the operator cannot be contacted, the Contractor shall call 911 emergency services.

3. The City will compensate the Contractor for the costs of locating and repairing damage not due to the failure of the Contractor to exercise reasonable care, and for removing or relocating such main or trunk line utility facilities not indicated in the Contract Documents with reasonable accuracy, and for the cost of equipment on the Project necessarily idled during such work. The payment for such costs will be made as provided in Article 9.1 Change Orders and Time Extensions. The Contractor shall not be assessed liquidated damages for delay in completion of the Project, when such delay is caused by the failure of the City or utility company to provide for removal or relocation of such utility facilities. Requests for extensions of time arising out of utility relocation or repair delays shall be filed in accordance with Article 9.1 Change Orders and Time Extensions and Article 9.3 Time for Completion and Liquidated Damages.

4. The public utility, where it is the owner of the affected utility, shall have the sole discretion to perform repairs or relocation work or permit the Contractor to do such repairs or relocation work at a reasonable price. The right is reserved to the City and the owners of utilities or their authorized agents to enter upon the Work area Packet Page. 765
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for the purpose of making such changes as are necessary for the rearrangement of their facilities or for making necessary connections or repairs to their properties.

The Contractor shall cooperate with forces engaged in such work and shall conduct its operations in such a manner as to avoid any unnecessary delay or hindrance to the work being performed by such forces and shall allow the respective utilities time to relocate their facility.
m. When the Contract Documents indicate that a utility is to be relocated, altered or constructed by others, the City will conduct all negotiations with the utility company and the work will be done at no cost to the Contractor, unless otherwise stipulated in the Contract Documents. n. Temporary or permanent relocation or alteration of utilities desired by the Contractor for its own convenience shall be the Contractor’s responsibility and it shall make arrangements and bear all costs for such work.

D. Construction at Existing Utilities

1. Where the Work to be performed crosses or otherwise interferes with water, sewer, gas, or oil pipelines; buried cable; or other public or private utilities, the Contractor shall perform construction in such a manner so that no damage will result to either public or private utilities. It shall be the responsibility of the Contractor to determine the actual locations of, and make accommodates to maintain, all utilities.

2. Before any utility is taken out of service, permission shall be obtained by the Contractor from the owner. The owner, any impacted resident or business owner and the City Representative will be advised of the nature and duration of the utility outage as well as the Contractor’s plan for providing temporary utilities if required by the owner. The Contractor shall be liable for all damage which may result from its failure to maintain utilities during the progress of the Work, and the Contractor shall indemnify City as required by the Contract Documents from all claims arising out of or connected with damage to utilities encountered during construction; damages resulting from disruption of service; and injury to persons or damage to property resulting from the negligent, accidental, or intentional breaching of utilities.

3. Unless otherwise called for by the Contract Documents, the cost of all material, equipment, and labor required to complete this work, shall be included in Contractor’s bid and distributed in the schedule of pay Items. No additional compensation shall be made to the Contractor for this work.

4.4 Trenches
A. Trenches Five Feet or More in Depth.

1. Contractor shall submit to the Engineer at the preconstruction meeting, a detailed plan showing the design of shoring, bracing, sloping or other provisions to be made for worker protection from hazards of caving ground during the excavation of any trench or trenches five feet or more in depth. If such plan varies from shoring system standards established by the Construction Safety Orders of the California Packet Page. 766
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Code of Regulations, Department of Industrial Relations, the plan shall be prepared by a California registered civil or structural engineer. The plan shall not be less effective than the shoring, bracing, sloping, or other provisions of the Construction Safety Orders, as defined in the California Code of Regulations. The Contractor shall designate in writing the “competent person” as defined in Title 8, California Code of Regulations, who shall be present at the Work Site each day that trenching/excavation is in progress. The “competent person” shall prepare and provide daily trenching/excavation inspection reports to the Engineer.

Contractor shall also submit a copy of its annual California Occupational Safety and Health Administration (Cal/OSHA) trench/excavation permit.

4. Excavations Deeper than Four Feet.
a. If the Work involves excavating trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly within three (3) Days, and before the excavation is further disturbed, notify the City in writing of any of the following conditions:
i. Material that the Contractor believes may be material that is hazardous waste, as defined in section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law.
ii. Subsurface or latent physical conditions at the site differing from those indicated.
iii. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract. b. The City shall promptly investigate the conditions, and if it finds that the conditions do so materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the Work, shall issue a Change Order under the procedures described in Article 9.1 Change Orders and Time Extensions.
c. In the event that a dispute arises between the City and the Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the Work, the Contractor shall not be excused from any scheduled completion date provided for by the Contract, but shall proceed with all Work to be performed under the Contract. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the parties.

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ARTICLE 10. PROSECUTION OF THE WORK
A. Contractor’s Means and Methods.

1. Contractor is solely responsible for the means and methods utilized to perform the Work. In no case shall the Contractor’s means and methods deviate from commonly used industry standards.

B. Construction Schedule.

1. General Requirements. The schedule shall be prepared in a Critical Path Method (“CPM”) format and in an electronic scheduling program acceptable to the City and as specified in the Contract Documents. Contractor shall deliver the schedule and all updates to the City in both paper and electronic form. The electronic versions shall be in the format and include all data used to prepare the schedule. Copies are not acceptable.

2. Schedule. The receipt or approval of any schedules by the City shall not in any way relieve the Contractor of its obligations under the Contract Documents. The Contractor is fully responsible to determine and provide for any and all staffing and resources at levels which allow for good quality and timely completion of the Project.

Contractor’s failure to incorporate all elements of Work required for the performance of the Contract or any inaccuracy in the schedule shall not excuse the Contractor from performing all Work required for a completed Project within the specified Contract Time. If the required schedule is not received by the time the first payment under the Contract is due, Contractor shall not be paid until the schedule is received, reviewed and accepted by the City.

3. Schedule Contents. The schedule shall allow enough time for inclement weather.

The schedule shall indicate the beginning and completion dates of all phases of construction; critical path for all critical, sequential time related activities; and “float time” for all “slack” or “gaps” in the non-critical activities. The schedule shall include appropriate time allowances and constraints for submittals, items of interface with Work performed by others, and specified construction, start-up and performance tests. All float shall be owned by the Project. Schedules indicating early or late completion shall not modify or have any effect on the Contract Time, regardless of whether the schedules are reviewed and/or accepted by the City. For purposes of determining Liquidated Damages, the Contract Time shall control and may only be altered by a duly authorized Change Order.

4. Schedule Updates. Contractor shall continuously update its construction schedule.

Contractor shall submit an updated and accurate construction schedule to the City:
(1) prior to the start of construction, if there are any changes to the initial schedule; (2) with each progress payment request; and (3) whenever requested to do so by the City. The City may withhold progress payments or other amounts due under the Contract Documents if Contractor fails to submit an updated and accurate construction schedule. Upon the City’s request, Contractor shall submit any schedules or updates to the City in the native electronic format of the software used to create the schedule. Contractor shall also submit schedules showing a two-week detailed look-ahead at weekly meetings conducted with the City. The two-week lookPacket Page. 768 Abatement of Hazardous Materials and the Demolition
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ahead schedule shall clearly identify all staffing and other resources which in the Contractor’s judgment are needed to complete the Work within the Contract Time, and it shall clearly state the number of staff to be used on each daily segment of the Work.

5. Acceptance. Acceptance of the schedules by the City will not impose on responsibility for accuracy, for sequencing, scheduling, or progress of the Work, or compliance with the Contract Documents. Acceptance will not interfere with or relieve Contractor from Contractor’s full responsibility therefor.

6. Recovery Schedule.
a. Should any of the following conditions exist, City may require Contractor to prepare, at no extra cost to City, a plan of action and a recovery schedule for completing the Work and achieving all contractual milestones within the allotted Contract Time:
i. The Contractor's monthly progress report indicates delays that are, in the opinion of City, of sufficient magnitude that City questions the Contractor's ability to complete the Work;
ii. The schedule shows the Contractor to be thirty (30) or more days behind the critical path at any time during construction;
iii. The Contractor desires to make changes in the logic or the planned duration of future activities of the schedule which, in the opinion of City, are major in nature.
b. The recovery schedule shall include proposed revisions to the Construction Schedule, demonstrating how Contractor intends to achieve all contractual milestones including Contract completion within the allotted Contract Time. The submittal shall include a narrative describing the actions planned by the Contractor to recover the schedule. c. Contractor shall submit the Recovery Schedule within seven (7) Days of City’s request. If Contractor asserts that City is responsible for the delay, failure to submit the recovery schedule within seven (7) Days of City’s request, will be considered a concurrent delay event attributable to Contractor, and Contractor shall only be entitled to non-compensable adjustments to Contract Times. If Contractor is responsible for the delay, this provision will not limit or affect Contractor's liability and failure to submit the recovery schedule with seven (7) Days of City’s request may result in City withholding progress payments or other amounts due under the Contract Documents.
d. Contractor is responsible for all costs associated with the preparation and execution of the recovery schedule, including any necessary recovery actions, which may include, but are not limited to, assignment of additional labor, and/or equipment, shift or overtime work, expediting of submittals or deliveries, overlapping of activities or sequencing changes to increase activity concurrence. Regardless of whether City directs Contractor to prepare a recovery schedule Packet Page. 769
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pursuant to this Section, Contractor shall promptly undertake appropriate action at no additional cost to City to recover the schedule whenever the current construction schedule shows that the Contractor will not achieve a milestone and/or complete the Work within the allotted Contract Time.

C. Time for Completion and Liquidated Damages

1. Time for Completion. The time for completion set forth in Article 2 of the Contract for Construction shall commence: (1) on the date stated in the Notice to Proceed, or (2) if the Notice to Proceed does not specify a commencement date, then on the date of the Notice to Proceed and shall be completed by Contractor in the time specified in the Contract Documents. The City is under no obligation to consider early completion of the Project; and the Contract completion date shall not be amended by the City’s receipt or acceptance of the Contractor’s proposed earlier completion date. Any difference in time between the Contractor’s early completion and the Contract Time shall be considered a part of the Project float. Contractor shall not be entitled to compensation, and the City will not compensate Contractor, for delays which impact early completion. Contractor shall not, under any circumstances, receive additional compensation from the City (including but not limited to indirect, general, administrative or other forms of overhead costs) for the period between the time of earlier completion proposed by the Contractor and the Contract completion date.

2. Liquidated Damages. If the Work is not completed within the Contract Time(s), it is understood that the City will suffer damage. In accordance with Government Code section 53069.85 and Public Contract Code section 7102, being impractical and infeasible to determine the amount of actual damage, it is agreed that Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum stipulated in the Contract for each calendar day of delay until the Work is fully completed. Contractor and its surety shall be liable for any liquidated damages. Any money due or to become due the Contractor may be retained to cover liquidated damages.

3. Inclement Weather. Contractor shall abide by the Engineer’s determination of what constitutes inclement weather. Time extensions for inclement weather shall only be granted when the Work stopped during inclement weather is on the critical path of the Project schedule. Contractor shall not be entitled to reverse liquidated damages for time extensions resulting from inclement weather.

4. Extension of Time. Contractor’s entitlement to an extension of the Contract Time is limited to a City-caused extension of the critical path, reduced by the Contractor’s concurrent delays, and established by a proper time impact analysis. Contractor shall not be charged liquidated damages because of any delays in completion of the Work due to unforeseeable causes beyond the control and without the fault or negligence of Contractor (or its Subcontractors or Suppliers). The City shall ascertain the facts and extent of delay and grant extension of time for completing the Work when, in its judgment, the facts justify such an extension. Contractor shall not be entitled to an adjustment in the Contract Times for delays within the control of Contractor. Delays attributable to and within the control of a Subcontractor or Supplier shall be deemed to be delays within the control of Contractor.

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E. Reverse Liquidated Damages. Consistent with Public Contract Code Section 7102, Contractor will be compensated for damages incurred due to unreasonable delays to the critical path for which the City is responsible. The parties agree that determining Contractor’s exact delay damages are and will continue to be impracticable and extremely difficult. As such, for each calendar day in excess of the time for completion set forth in Article 2 of the Contract for Construction, the City shall pay to the Contractor the sum stipulated in the Contract per day. Such amount shall constitute the only payment allowed for any City-caused delays and shall necessarily include all overhead, all profits, all administrative costs, all bond costs, all labor, materials, equipment and rental costs and any other costs, expenses and fees incurred or sustained as a result of such delays. Contractor shall not be entitled to reverse liquidated damages for any change in the Work in which Contractor is compensated for overhead and profit through a change in Unit Price Work or a Change Order resulting in a lump sum or allowed mark-up for the additional Work.

The amount of reverse liquidated damages shall be reduced by Contractor’s concurrent delays.

F. Force Majeure. In accordance with subparagraphs “D” and “E” above, the Contractor shall not be charged liquidated damages, and the City shall not be responsible, for any delays resulting from a Force Majeure Event. If a delay to the critical path results from a Force Majeure Event, the Contractor will be entitled to a time extension but will not receive an adjustment to the Contract Price or any other compensation. Such a non-compensable adjustment shall be Contractor’s sole and exclusive remedy for such delays.

G. No Damages for Reasonable Delay. The City’s liability to Contractor for delays for which the City is responsible shall be limited to only an extension of time unless such delays were unreasonable under the circumstances. In no case shall the City be liable for any costs which are borne by the Contractor in the regular course of business, including, but not limited to, home office overhead and other ongoing costs. Damages caused by unreasonable City delay shall be based on actual costs only, no proportions or formulas shall be used to calculate any delay damages.

H. Procedure for Time Extensions and Delay Damages. Contractor shall not be entitled to any extension of time or any reverse liquidated damages unless Contractor properly notices the delay and adjustment to compensation and requests a Change Order in accordance with Article 9.1 Change Orders and Time Extensions.

Contractor’s failure to timely and fully comply with the Change Order procedures in the Contract Documents shall constitute a waiver of Contractor’s right to a time extension or reverse liquidated damages.

3.7 Contractor’s Responsibility for Work.

A. Until the acceptance of the Work by the Engineer as evidenced in writing, it shall be under the charge and care of the Contractor. The Contractor shall take every necessary precaution against injury or damage to any part thereof by the action of the elements or from any cause whether arising from the execution or non-execution of the Work. The Contractor shall rebuild, repair, restore and make good at its own expense all injuries or damages to any portion of the Work before its completion and acceptance. In the event of damage proximately caused by an Act of God, as Packet Page. 771
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defined by Section 7105 of the Public Contract Code, the City will pay for repair or restoration to damaged Work in excess of 5% of the total Bid.

D. Occupancy.

1. The City reserves the right to occupy or utilize any portion of the Work at any time before completion, and such occupancy or use shall not constitute acceptance of any part of Work covered by this Contract. This use shall not relieve the Contractor of its responsibilities under the Contract.

E. Securities for Money Withheld

1. Pursuant to section 22300 of the Public Contract Code of the State of California, Contractor may request the City to make retention payments directly to an escrow agent or may substitute securities for any money withheld by the City to ensure performance under the contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the 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.

F. The City’s Right to Suspend/Terminate the Contract

1. Suspension of Work by the City
a. The City may, at its sole option, decide to suspend at any time the performance of all or any portion of the Work by notice in writing to Contractor. Such notice of suspension of Work will designate the amount and type of plant, labor, and equipment to be committed to the Project during the period of suspension. Contractor shall use its best efforts to utilize its plant, labor, and equipment in such a manner as to minimize costs associated with suspension. b. Upon receipt of any such notice, Contractor shall, unless the notice requires otherwise:
i. Immediately discontinue Work on the date and to the extent specified in the notice;
ii. Place no further orders or subcontracts for material, services, or facilities with respect to suspended Work other than to the extent required in the notice;
iii. Promptly make every reasonable effort to obtain suspension upon terms satisfactory to the City’s Representative of all orders, subcontracts, and rental agreements to the extent they relate to performance of Work suspended; and
iv. Continue to protect and maintain the Work including those portions on which Work has been suspended.

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c. Except as provided by this Article, as full and complete compensation for such suspension, Contractor shall be granted an adjustment in the Contract Price based on a negotiated daily rate that reflects the Contractor’s actual costs associated with the demobilized condition of the Site and an extension of the Contract Times equal to the number of days performance of Work is suspended; provided, however, that no adjustment of Contract Price or extension of Contract Times shall be granted if the suspension results from Contractor's non-compliance with the requirements of the Contract.

B. Termination for Cause by the City:

1. In the sole estimation of the City, if the Contractor refuses or fails to prosecute the Work or any separable part thereof with such diligence as will insure its completion within the time specified by the Contract Documents, or any extension thereof, or fails to complete such Work within such time, or if the Contractor should be adjudged a bankrupt, or if it should make a general assignment for the benefit of its creditors, or if a receiver should be appointed on account of its insolvency, or the Contractor or any of its subcontractors should violate any of the provisions of this Contract, the City may serve written notice upon the Contractor and its surety of the City's intention to terminate this Contract. This notice of intent to terminate shall contain the reasons for such intention to terminate this Contract, and a statement to the effect that the Contractor's right to perform this Contract shall cease and terminate upon the expiration of ten (10) Days unless such violations have ceased and arrangements satisfactory to the City have been made for correction of said violations.

2. After expiration of the ten (10) Day period, the City may terminate the Contract by providing a Notice of Termination to the Contractor. The City may take over and complete the Work by any method it may deem appropriate, including enforcement of the Project performance bond. Contractor and its surety shall be liable to the City for any excess costs or other damages incurred by the City to complete the Work. If the City takes over the Work, the City may, without liability for so doing, take possession of and utilize in completing the Work such materials, appliances, plant, and other property belonging to the Contractor as may be on the Site.

3. Upon termination, Contractor shall not be entitled to receive any further payment from the City, except for Work which was duly performed prior to the effective date of the Notice of Termination. Contractor shall submit an invoice for final payment within thirty (30) Days of the effective date of the Notice of Termination. The City may withhold from final payment up to 150% of any disputed amounts, including any amounts which may be necessary to repair defective Work, complete unfinished Work, or are otherwise occasioned by Contractor’s failure to perform its duties under the Contract.

C. Termination for Convenience by the City:

1. The City may terminate performance of the Work called for by the Contract Documents in whole or, from time to time, in part, upon ten (10) Days written notice if the City determines that a termination is in the City's interest.

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d. The Contractor shall terminate all or any part of the Work upon delivery to the Contractor of a Notice of Termination specifying that the termination is for the convenience of the City, the extent of termination, and the effective date of such termination. e. After receipt of Notice of Termination, and except as directed by the City's Representative, the Contractor shall, regardless of any delay in determining or adjusting any amounts due under this termination for convenience clause, immediately proceed with the following obligations:
i. Stop Work as specified in the Notice.
ii. Complete any Work specified in the Notice of Termination in a least cost/shortest time manner while still maintaining the quality called for under the Contract Documents.
iii. Leave the property upon which the Contractor was working and upon which the facility (or facilities) forming the basis of the Contract Document is situated in a safe and sanitary manner such that it does not pose any threat to the public health or safety.
iv. Terminate all subcontracts to the extent that they relate to the portions of the Work terminated.
v. Place no further subcontracts or orders, except as necessary to complete the continued portion of the Contract.
vi. Submit to the City's Representative, within ten (10) Days from the effective date of the Notice of Termination, all of the usual documentation called for by the Contract Documents to substantiate all costs incurred by the Contractor for labor, materials and equipment through the effective date of the Notice of Termination. Any documentation substantiating costs incurred by the Contractor solely as a result of the City's exercise of its right to terminate this Contract pursuant to this clause, which costs the contractor is authorized under the Contract documents to incur, shall: (1) be submitted to and received by the Engineer no later than 30 Days after the effective date of the Notice of Termination; (2) describe the costs incurred with particularity; and (3) be conspicuously identified as “Termination Costs occasioned by the City's Termination for Convenience.” If the City rejects any costs, Contractor shall be deemed to waive the rejected costs unless Contractor files a Claim within thirty (30) Days of the rejection pursuant to Article 9.2.
vii. Contractor shall be entitled to receive only the amounts payable under this Article, and Contractor specifically waives any claim for any other amounts or damages, including, but not limited to, any claim for consequential damages or lost profits. The provisions in this Article are in addition to and not in limitation of any other rights or remedies available to the City.

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f. Termination of the Contract shall not relieve surety of its obligation for any just claims arising out of or relating to the Work performed.
g. Notwithstanding any other provision of this Article, when immediate action is necessary to protect life and safety or to reduce significant exposure or liability, the City may immediately order Contractor to cease Work on the Project until such safety or liability issues are addressed to the satisfaction of the City or the Contract is terminated. h. If the City terminates Contractor for cause, and if it is later determined that the termination was wrongful, such default termination shall automatically be converted to and treated as a termination for convenience. In such event, Contractor shall be entitled to receive only the amounts payable under this section, and Contractor specifically waives any claim for any other amounts or damages, including, but not limited to, any claim for consequential damages or lost profits.

3.8 Completion and Acceptance of Work
A. Final Inspection. Upon written notice from Contractor that the entire Work is complete, the Engineer will promptly make a final inspection with the City and Contractor and will notify Contractor in writing of all particulars in which this inspection reveals that the Work is incomplete or defective. Contractor shall immediately take such measures as are necessary to complete such Work or remedy such deficiencies.

B. Final Acceptance. The acceptance of the Work on behalf of the City will be made by the Engineer. Such acceptance by the City shall not constitute a waiver of defects. After Contractor has, in the opinion of the Engineer, satisfactorily completed all corrections identified during the final inspection and has delivered, in accordance with the Contract Documents, all maintenance and operating instructions, schedules, guarantees, bonds, certificates or other evidence of insurance, certificates of inspection, Record Documents, and other documents required by the Contract Documents, the City shall execute a Notice of Completion, constituting final acceptance and completion of the Project, except as may be expressly noted.

3.9 Warranty and Guaranty of Work.

A. Contractor hereby warrants that materials and Work shall be completed in conformance with the Contract Documents and that the materials and Work provided will fulfill the requirements of this Warranty. Contractor hereby agrees to repair or replace, at the discretion of the City, any or all Work that may prove to be defective in its workmanship, materials furnished, methods of installation or fail to conform to the Contract Document requirements together with any other Work which may be damaged or displaced by such defect(s) within a period of one (1) year (or as otherwise indicated in the Contract Documents or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Work, whichever is later) from the date of the Notice of Completion of the Project without any expense whatever to the City, ordinary wear and tear and unusual abuse and neglect excepted. Contractor shall be required to promptly repair or replace defective equipment or materials, at Contractor’s option. All costs associated with Packet Page. 775
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such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor.

2. For any Work so corrected, Contractor’s obligation hereunder to correct defective Work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected Work. The reinstatement of the one (1) year warranty shall apply only to that portion of work that was corrected. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. In the event of Contractor’s failure to comply with the above-mentioned conditions within ten (10) Days after being notified in writing of required repairs, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder immediately upon demand.

3. In addition to the warranty set forth in this Article, Contractor shall obtain for the City all warranties that would be given in normal commercial practice and assign to the City any and all manufacturer’s or installer’s warranties for equipment or materials not manufactured by Contractor and provided as part of the Work, to the extent that such third-party warranties are assignable and extend beyond the warranty period set forth in this Article. Contractor shall furnish the City with all warranty and guarantee documents prior to final acceptance of the Project by the City as required.

4. When specifically indicated in the Contract Documents or when directed by the Engineer, the City may furnish materials or products to the Contractor for installation.

In the event any act or failure to act by Contractor shall cause a warranty applicable to any materials or products purchased by the City for installation by the Contractor to be voided or reduced, Contractor shall indemnify the City from and against any cost, expense, or other liability arising therefrom, and shall be responsible to the City for the cost of any repairs, replacement or other costs that would have been covered by the warranty but for such act or failure to act by Contractor.

5. The Contractor shall remedy at its expense any damage to City-owned or controlled real or personal property.

6. The City shall notify the Contractor, in writing, within a reasonable time after the discovery of any failure, defect, or damage. The Contractor shall within ten (10) Days after being notified commence and perform with due diligence all necessary Work. If the Contractor fails to promptly remedy any defect or damage, the City shall have the right to replace, repair or otherwise remedy the defect, or damage at the Contractor’s expense.

7. In the event of any emergency constituting an immediate hazard to health, safety, property, or licensees, when caused by Work of the Contractor not in accordance with the Contract requirements, the City may undertake at Contractor’s expense, and without prior notice, all Work necessary to correct such condition.

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H. Acceptance of Defective Work.

1. If, instead of requiring correction or removal and replacement of defective Work, the City prefers to accept it, the City may do so. Contractor shall pay all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) attributable to the City’s evaluation of and determination to accept such defective Work and for the diminished value of the Work. If any acceptance of Defective Work occurs prior to release of the Project retention, a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work, and the City shall be entitled to an appropriate decrease in the Contract Price, reflecting the diminished value of Work and all costs incurred by the City. If the acceptance of defective occurs after release of the Project retention, an appropriate amount will be paid by Contractor to the City.

I. The City May Correct Defective Work

1. If Contractor fails within a reasonable time after written notice from the City to correct Defective Work, or to remove and replace rejected Work as required by the City, or if Contractor fails to perform the Work in accordance with the Contract Documents, or if Contractor fails to comply with any other provision of the Contract Documents, the City may, after seven (7) Days written notice to Contractor, correct, or remedy any such deficiency.

2. In connection with such corrective or remedial action, the City may exclude Contractor from all or part of the Site, take possession of all or part of the Work and suspend Contractor’s services related thereto, take possession of Contractor’s tools, appliances, construction equipment and machinery at the Site, and incorporate in the Work all materials and equipment stored at the Site or for which the City has paid Contractor but which are stored elsewhere. Contractor shall allow the City, and the agents, employees, other contractors, and consultants of each of them, access to the Site to enable the City to exercise the rights and remedies to correct the Defective Work.

3. All claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) incurred or sustained by the City correcting the Defective Work will be charged against Contractor, and a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work; and the City shall be entitled to an appropriate decrease in the Contract Price. Such claims, costs, losses and damages will include but not be limited to all costs of repair, or replacement of work of others destroyed or damaged by correction, removal, or replacement of defective Work.

4. If the Change Order is executed after all payments under the Contract have been paid by the City and the Project Retention is held in an escrow account as permitted by the Contract Documents, Contractor will promptly alert the escrow holder, in writing, of the amount of Retention to be paid to the City. If the Change Packet Page. 777
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Order is executed after release of the Project retention, an appropriate amount will be paid by Contractor to the City. Contractor shall not be allowed an extension of the Contract Times because of any delay in the performance of the Work attributable to the City correcting Defective Work.

8. Nothing in the warranty or in the Contract Documents shall be construed to limit the rights and remedies available to the City at law or in equity, including, but not limited to, Code of Civil Procedure section 337.15.

ARTICLE 4 -CHANGE ORDERS; DISPUTE RESOLUTION

4.2 Change Orders and Time Extensions
All changes to the Contract, including compensation increases and time extensions, shall be through a written Change Order in accordance with this Article. The City, without invalidating the Contract, may order changes in the Work consisting of additions, deletions or other revisions, and Contractor’s compensation and the time for completion shall be adjusted accordingly. Whenever any change is made as provided for herein, such change shall be considered and treated as though originally included in the Contract, and shall be subject to all terms, conditions, and provisions of the original Contract. Contractor shall not be entitled to claim or bring suit for damages, whether for loss of profits or otherwise, on account of any decrease or omission of any item or portion of Work to be done. No dispute, disagreement, or failure of the parties to reach agreement on the terms of the Change Order shall relieve the Contractor from the obligation to proceed with performance of the Work, including Additional Work, promptly and expeditiously.

Any alterations, extensions of time, Additional Work, or any other changes may be made without securing consent of the Contractor’s surety or sureties.

A. Change in Contract Procedures

1. City Directive. The City may direct changes in the Work by delivering a written directive. To the extent the work directive results in a change to compensation or time, Contractor must timely request a Change Order and comply with all Change Order procedures in accordance with this Article. Notwithstanding issuance of a work directive, Contractor’s failure to timely request a Change Order shall constitute a waiver by Contractor of any adjustment to compensation or time extension for Work performed under the directive. The City shall not be liable to Contractor for Work performed or omitted by Contractor in reliance on verbal orders.

2. Contractor’s Notice of Change/Delay. If Contractor intends to initiate a Change Order Request, then Contractor shall provide the City with written notice of the underlying facts and circumstances that gave rise to the proposed change within the following times:
a. If due to unknown subsurface or latent physical conditions, within three (3) days from the discovery date or prior to the alterations of the conditions, whichever is earlier.
b. If due to a Force Majeure Event, as soon as reasonably practicable under the conditions, which shall be no longer than three (3) days from the date the Packet Page. 778
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Contractor discovers that the Force Majeure Event gives rise to a change, unless that the conditions are such that notice within three (3) days is not possible or practicable.
i. If due to any other matter that may involve an adjustment to the Contract Time or the Contract Price, within seven (7) days from the discovery date.

To be considered valid and complete, the notice of change/delay shall include a general statement of the circumstances giving rise to the notice of change/delay and a reasonable order of magnitude estimate of the additional costs and/or time. If the circumstances give rise to both a cost adjustment and time extension, Contractor shall submit the notice of change and notice of delay concurrently.

3. Request for Change in Compensation and/or Extension of Time. Contractor shall submit a Change Order Request for any adjustment to Contractor’s compensation and/or any extension of time. The Change Order Request shall be made prior to incurring any expense and within fourteen (14) Days from either Contractor’s notice of change/delay or the City’s directive ordering the change. The Change Order Request shall include all of the following information (unless inapplicable to the change):
a. A detailed description of the circumstances giving rise to the request;
b. A complete itemized cost proposal, including itemized pricing for first tier Subcontractors;
c. Supporting documentation for all costs;
d. A time impact analysis showing the impact of the delay to the critical path to completion;
e. If any added costs or information cannot be determined at the time of the Change Order Request, the reason the costs or information cannot be determined at the time; and
f. Certification to the accuracy of the Change Order Request under penalty of perjury.

The time impact analysis shall be in the critical path method format and shall show the sequencing of all critical and non-critical new activities and/or activity revisions affected by the delay, with logic ties to all affected existing activities noted on the schedule.

The City may demand, and Contractor shall provide, any additional information supporting the Change Order Request, including but not limited to native electronic format version of schedules and time impact analyses. Contractor shall provide the requested additional information within five (5) Days of the request.

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For any costs or information that cannot be determined at the time Contractor submits the Change Order Request, Contractor shall submit to the City notice of the costs or information and all supporting documentation within five (5) Days of when the costs or other information become subject to determination.
b. City’s Final Decision on Change Order; Ordered Changes. If the City denies the Change Order Request or disagrees with the proposal submitted by Contractor, it will notify the Contractor, and the City will provide its opinion of the appropriate price and/or time extension.

If no agreement can be reached, the City shall have the right to order the Work performed on a time and materials basis or to issue a unilateral Change Order setting forth the City’s determination of the reasonable additions or savings in costs and time attributable to the extra or deleted work. The City shall also have the right to order changes in the Work to be performed promptly by the Contractor on a time and materials basis or to issue a unilateral Change Order setting forth the City’s determination of the reasonable additions or savings in costs and time attributable to the extra or deleted work. The City’s determination shall become final and binding if the Contractor fails to submit a Claim in writing to the City within fourteen (14) Days of the issuance of the unilateral Change Order, disputing the terms of the unilateral Change Order and providing such supporting documentation for its position as the City may reasonably require.
c. Contractor’s Waiver of Further Relief. CONTRACTOR’S FAILURE TO PROVIDE A

COMPLETE AND TIMELY NOTICE OF CHANGE/DELAY AND/OR CHANGE ORDER

REQUEST, OR TO COMPLY WITH ANY OTHER REQUIREMENT OF THIS ARTICLE,

SHALL CONSTITUTE A WAIVER BY CONTRACTOR OF THE RIGHT TO A CONTRACT

ADJUSTMENT ON ACCOUNT OF SUCH CIRCUMSTANCES AND A WAIVER OF ANY

RIGHT TO FURTHER RECOURSE OR RECOVERY BY REASON OF OR RELATED TO

SUCH CHANGE BY MEANS OF THE CLAIMS DISPUTE RESOLUTION PROCESS OR BY

ANY OTHER LEGAL PROCESS OTHERWISE PROVIDED FOR UNDER APPLICABLE LAWS.

Contractor recognizes and acknowledges that timely submission of a formal written notice of change/delay and Change Order Request, whether or not the circumstances of the change may be known to the City or available to the City through other means, is not a mere formality but is of crucial importance to the ability of the City to promptly identify, prioritize, evaluate and mitigate the potential effects of changes. Any form of informal notice, whether verbal or written (including, without limitation, statements in requests for information, statements in Submittals, statements at any job meeting or entries on monthly reports, daily logs or job meeting minutes), that does not strictly comply with the formal requirements of this Article, shall accordingly be insufficient.
d. Change Order Format
i. A Change Order signed by the Contractor indicates the Contractor's agreement therewith, including any adjustment in compensation or extension of time, and Packet Page. 780
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the full and final settlement of all costs (direct, indirect and overhead) related to the Work authorized by the Change Order.
ii. The City may designate the forms to be used for notices, requests, and Change Orders. If so designated, Contractor may only use such forms. Contractor shall not reserve a right to assert impact costs, extended job site costs, extended overhead, constructive acceleration and/or actual acceleration beyond what is stated in the Change Order. No Claims shall be allowed for impact, extended overhead costs, constructive acceleration and/or actual acceleration due to a multiplicity of changes and/or clarifications. The Contractor may not change or modify the City’s Change Order form in an attempt to reserve additional rights.

B. Determining Adjustments to Compensation.

1. Limitation on Costs. Contractor shall not be entitled to any compensation for Work subject to a Change Order except as expressly set forth in this Article. The markup added in instances of Additional Work shall constitute the entire amount of profit, any mark-ups, any field or home office overhead costs, including personnel, equipment or office space, any materials, or any costs of equipment idle time for such Work.

2. Unit Price Change Orders. When the actual quantity of a Unit Price Work item varies from the Bid Schedule, compensation for the change in quantity will be calculated by multiplying the actual quantity by the unit price. This calculation may result in either an additive or deductive Change Order. Bid items included on the Bid Schedule may be deducted from the Work in their entirety without any negotiated extra costs. Because Unit Price Work includes overhead and profit as determined by Contractor at the time of its Bid submission, no mark up or deduction for overhead and profit will be allowed.

3. Lump Sum Change Orders. Whenever possible, any changes affecting compensation shall be in a lump sum mutually agreed by the Contractor and the City.

4. Time and Materials Change Orders. The City may direct the Contractor to proceed with the Additional Work with payment to be made on the basis of actual cost of the labor and materials required to complete the Additional Work. If the Project is federally funded, a time and materials Change Order shall only be issued after a determination that no other Change Order is suitable and the Change Order shall include a ceiling price that the Contractor exceeds at its own risk.

5. Federally Funded Projects. For any change in price to the Contract, general and administrative expenses shall be negotiated and must conform to the cost principles set forth under at 2 C.F.R. Part 200, subpart E, and profit shall be negotiated as a separate element of the cost. To establish a fair and reasonable profit, consideration must be given to the complexity of the Additional Work to be performed, the risk borne by the Contractor, the Contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

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e. Allowed Costs. Estimates for lump sum quotations and accounting for time-and-material work shall be limited to direct expenditures necessitated specifically by the change and shall be segregated as follows:
i. Labor. The costs of labor will be the actual cost for wages prevailing locally for each craft or type of worker at the time the Additional Work is done, plus employer payments of payroll taxes and insurance, health and welfare, pension, vacation, apprenticeship funds, and other direct costs resulting from federal, state or local laws, as well as assessment or benefits required by lawful collective bargaining agreements. The use of a labor classification which would increase the Additional Work cost will not be permitted unless the Contractor establishes the necessity for such additional costs. Labor costs for equipment operators and helpers shall be reported only when such costs are not included in the invoice for equipment rental.
ii. Materials. The cost of materials reported shall be at the lowest current price at which such materials are locally available in the quantities involved, plus sales tax, freight and delivery. Materials costs shall be based upon supplier or manufacturer’s invoice.
iii. Tool and Equipment Use. Regardless of ownership, the rates to be used in determining equipment use shall not exceed listed rates prevailing locally at equipment rental agencies, or distributors, at the time the work is performed.

The Contractor shall furnish cost data supporting the establishment of the rental rate. The rental rate to be applied for use of each items of equipment shall be the rate resulting in the least total cost to the City for the total period of use. The City shall the make the final determination as to an equitable rental rate for the equipment. No payment will be made for the use of small tools, which have a replacement value of $1,000 or less.

1. The rental time to be paid for equipment shall be the time the equipment is in productive operation on the Additional Work being performed.

Rental time will not be allowed while equipment is inoperative due to breakdowns.

2. All equipment shall, in the opinion of the City, be in good working condition and suitable for the purpose for which the equipment is to be used. Equipment with no direct power unit shall be powered by a unit of at least the minimum rating recommended by the manufacturer.

3. Before construction equipment is used on any Additional Work, the Contractor shall plainly stencil or stamp an identifying number thereon at a conspicuous location, and shall furnish to the City, in duplicate, a description of the equipment and its identifying number.

4. When hourly rates are listed, any part of an hour less than 30 minutes of operation shall be considered to be 1/2-hour of operation, and any part of an hour greater than 30 minutes will be considered one hour of operation. When daily rates are listed, any part of a day less than 4 hours operation shall be considered to be 1/2-day of operation.

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d. Allowed Mark-up. The allowed mark-up for any and all overhead (including supervision and home and field office costs) and profit on work added to the Contract shall be determined in accordance with the following provisions:
(i) “Net Cost” is defined as the actual costs of labor, materials and tools and equipment only, excluding overhead and profit. The costs of applicable insurance and bond premium will be reimbursed to the Contractor and Subcontractors at cost only, without mark-up.

Contractor shall provide the City with documentation of the costs, including but not limited to payroll records, invoices, and such other information as the City may reasonably request.
(ii) For Work performed by the Contractor’s forces the allowed mark-up shall not exceed fifteen (15%) percent of labor costs, ten percent (10%) of material costs, and ten percent (10%) of the cost of tools and equipment use.
(iii) For Work performed by a Subcontractor, the added cost for overhead and profit shall not exceed fifteen percent (15%) of the Subcontractor’s Net Cost of the Work to which the Contractor may add up to five percent (5%) of the Subcontractor’s Net Cost.
(iv) For Work performed by a sub-subcontractor, the added cost for overhead and profit shall not exceed fifteen percent (15%) of the subsubcontractor’s Net Cost for Work to which the Subcontractor and Contractor may each add up to an additional five percent (5%) of the Net Cost of the lower tier subcontractor.
(v) No additional mark-up will be allowed for lower tier subcontractors, and in no case shall the added cost for overhead and profit payable by the City exceed twenty-five percent (25%) of the Net Cost as defined herein, of the party that performs the Work.
(vi) Calculation of the mark-up will be subject to the limitations above and to calculation as further detailed in (b)(B)(5) above.
e. Documentation of Time-and-Material Costs.
(i) T&M Daily Sheets. Contractor must submit timesheets, materials invoices, records of equipment hours, and records of rental equipment hours to the City’s for an approval signature each day that Work is performed on a time-and-material basis. The Engineer’s signature on time sheets only serves as verification that the Work was performed and is not indicative of the City’s agreement to Contractor’s entitlement to the cost.
(ii) T&M Summary Sheet. Contractor shall submit a T&M Summary Sheet, which shall include total actual costs, within five (5) Days following completion of Additional Work on a time-and-material basis.

Contractor’s total actual cost shall be presented in a summary table in Packet Page. 783
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an electronic spreadsheet file by labor, material, equipment, and any other costs, along with documentation supporting the costs.

Contractor’s failure to submit the T&M Summary Sheet within five (5) Days of completion of the Additional Work will result in Contractor’s waiver for any reimbursement of any costs associated with the Additional Work.
iv. Excluded Costs. The following costs or any other home or field office overhead costs, all of which are to be considered administrative costs covered by the Contractor’s mark-up, shall not be allowed costs and shall not be included in any lump sum proposals or time-and-materials invoices:

1. Overhead Cost. Payroll costs and other compensation of Contractor’s officers, executives, principals, general managers, engineers, architects, estimators, attorneys, auditors, accountants, purchasing and contracting agents, timekeepers, clerks, and other personnel employed by Contractor whether at the Site or in Contractor’s principal office or any branch office, material yard, or shop for general administration of the Work;

2. Office Expenses. Expenses of Contractor’s principal and branch offices;

3. Capital Expenses. Any part of Contractor’s capital expenses, including interest on Contractor’s capital employed for the Additional Work and charges against Contractor for delinquent payments;

4. Negligence. Costs due to the negligence of Contractor or any Subcontractor or Supplier, or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable, including without limitation the correction of Defective Work, disposal of materials or equipment wrongly supplied, and making good any damage to property;

5. Small Tools. Cost of small tools valued at less than $1,000 and that remain the property of Contractor;

6. Administrative Costs. Costs associated with the preparation of Change Orders (whether or not ultimately authorized), cost estimates, or the preparation or filing of Claims;

7. Anticipated Lost Profits. Expenses of Contractor associated with anticipated lost profits or lost revenues, lost income or earnings, lost interest on earnings, or unpaid retention;

8. Home Office Overhead. Costs derived from the computation of a “home office overhead” rate by application of the Eichleay, Allegheny, burden fluctuation, or other similar methods;
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9. Special Consultants and Attorneys. Costs of special consultants or attorneys, whether or not in the direct employ of Contractor, employed Packet Page. 785
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for services specifically related to the resolution of a Claim, dispute, or other matter arising out of or relating to the performance of the Additional Work.

10. Other. Other overhead or general expense costs of any kind and the cost of any item not specifically and expressly included in the Contract Documents; including but not limited to: submittals, drawings, field drawings, shop drawings, including submissions of drawings; field inspection; general superintendence; computer services; reproduction services; salaries of project engineer, superintendent, timekeeper, storekeeper, and secretaries; janitorial services; small tools, incidentals and consumables; temporary on-site facilities (offices, telephones, high speed internet access, plumbing, electrical power, lighting; platforms, fencing, water); surveying; estimating; protection of work; handling and disposal fees; final cleanup; other incidental work; related warranties; insurance and bond premiums.

11. Compliance with Federal Cost Principles. If the Project is federally funded, any costs that are not allowable, reasonable and allocable to the Project, under generally accepted accounting principles and the applicable federal requirements.

4.3 Procedure for Resolving Claims.

Contractor shall timely comply with any and all requirement of the Contract Documents pertaining to notices and requests for changes to the Contract Time or Contract Price, including but not limited to all requirements of Article 9.1, as a prerequisite to filing any claim governed by this Article. The failure to timely submit a notice of delay or notice of change, or to timely request a change to the time for completion or Contractor’s compensation, or to timely provide any other notice or request required herein shall constitute a waiver of the right to further pursue the claim under the Contract or at law.

A. Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding 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 Article is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code.

This Article shall be construed to be consistent with all applicable law, including but not limited to these statutes.

B. Claims. For purposes of this Article, “Claim” means a separate demand by the Contractor for:

1. An adjustment to the time for completion including, without limitation, for relief from damages or penalties for delay assessed by the City;
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f. Payment by the City of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled; or g. An amount the payment of which is disputed by the City.

A “Claim” does not include any demand for payment for which the Contractor has failed to provide notice, request a Change Order, or otherwise failed to follow any procedures contained in the Contract Documents.

C. Filing Claims. Claims governed by this Article may not be filed unless and until the Contractor completes any and all requirements of the Contract Documents pertaining to notices and requests for changes to the Contract Time or Contract Price, and Contractor’s request for a change has been denied in whole or in part.

Claims governed by this Article must be filed no later than thirty (30) 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 words in 16 point capital font: “THIS IS A CLAIM.” The Claim shall include the all information and documents necessary to substantiate the Claim, including but not limited to those identified below. Nothing in this Article is intended to extend the time limit or supersede notice requirements otherwise provided by Contract Documents. Failure to follow such contractual requirements shall bar any Claims or subsequent proceedings for compensation or payment thereon.

D. Documentation. The Contractor shall submit all Claims in the following format:

1. Summary description of Claim including basis of entitlement, merit and amount of time or money requested, with specific reference to the Contract Document provisions pursuant to which the Claim is made

2. List of documents relating to Claim:
a. Specifications
b. Drawings
c. Clarifications (Requests for Information)
d. Schedules
e. Other

3. Chronology of events and correspondence

4. Narrative analysis of Claim merit

5. Analysis of Claim cost, including calculations and supporting documents Packet Page. 787
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h. Time impact analysis in the form required by the Contract Documents or, if the Contract Documents do not require a particular format, CPM format, if an adjustment of the Contract Time is requested
E. City’s Response. Upon receipt of a Claim pursuant to this Article, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 Days, shall provide the 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 City issues its written statement.

1. If the 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 City’s 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, the City shall have up to three (3) Days following the next duly publicly noticed meeting of the City’s governing body after the 45-Day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

2. Within 30 Days of receipt of a Claim, the City may request in writing additional documentation supporting the Claim or relating to defenses or Claims the 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 the City and the Contractor. The City’s written response to the Claim, as further documented, shall be submitted to the 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 the Contractor in producing the additional information or requested documentation, whichever is greater.

F. Meet and Confer. If the Contractor disputes the City’s written response, or the City fails to respond within the time prescribed, the Contractor may so notify the City, in writing, either within 15 Days of receipt of the City’s response or within 15 Days of the City’s failure to respond within the time prescribed, respectively, and demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, the City shall schedule a meet and confer conference within 30 Days for settlement of the dispute.

G. 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, the 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 the City issues its written statement. Any disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The public entity 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.

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i. 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. j. For purposes of this Article, 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 Article. k. Unless otherwise agreed to by the City and the 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.
l. The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the 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.

H. Procedures After Mediation. If following the mediation, the Claim or any portion remains in dispute, the 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 prior to initiating litigation.

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 the 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.

I. Civil Actions. The following procedures are established for all civil actions filed to resolve Claims of $375,000 or less:

1. 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 this Contract. 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.

2. 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 Packet Page. 789
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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.

9. Government Code Claim Procedures.
a. This Article does not apply to tort claims and nothing in this Article is intended nor shall be construed to change the time periods for filing tort claims or actions specified by Chapter 1 (commending with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.5 of Title 1 of the Government Code.
b. In addition to any and all requirements of the Contract Documents pertaining to notices of and requests for adjustment to the Contract Time, Contract Price, or compensation or payment for Additional Work, disputed Work, construction claims and/or changed conditions, the Contractor must comply with the claim procedures set forth in Government Code Section 900, et seq. prior to filing any lawsuit against the City.
c. 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 adjustment of the Contract Time or Contract Price for Additional Work, disputed Work, construction claims, and/or changed conditions have been followed by Contractor. If Contractor does not comply with the Government Code claim procedure or the prerequisite contractual requirements, Contractor may not file any action against the City. d. A Government Code claim must be filed no earlier than the date the Work is completed or the date the Contractor last performs Work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved Claims known to Contractor or that should reasonably by known to Contractor excepting only new unrelated Claims that arise after the Government Code claim is submitted.

10. Non-Waiver. The City’s failure to respond to a Claim from the Contractor within the time periods described in this Article or to otherwise meet the time requirements of this Article shall result in the Claim being deemed rejected in its entirety, and shall not constitute a waiver of any rights under this Article.

ARTICLE 5 - MEASUREMENT; PAYMENT

5.2 Cost Breakdown.

A. Lump Sum Work.

1. Contractor shall furnish on forms approved by the City within ten (10) Days of the Notice to Proceed, a schedule of values allocating the entire Contract Price to the various portions of the Work and prepared in such a form and supported by such data to substantiate its accuracy as the Engineer may require. This schedule of Packet Page. 790
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values, unless objected to by the Engineer, shall be used as a basis for reviewing the Contractor’s applications for payment. Contractor shall submit the schedule of values prior to submitting its first application for payment, and the City will not issue any payment until it receives and approves the schedule of values.

11. Unit Price Work.
a. Where the Contract Documents provide that all or part of the Work is to be Unit Price Work, initially the Contract Price will be deemed to include for all Unit Price Work an amount equal to the sum of the unit price for each separately identified item of Unit Price Work multiplied by the estimated quantity of each item as indicated in the Contract. The estimated quantities of items of Unit Price Work are not guaranteed and are solely for the purpose of comparison of Bids and determining an initial Contract Price. Each unit price will be deemed to include an amount considered by Contractor to be adequate to cover Contractor’s overhead and or profit for each separately identified item.
b. Unless otherwise specified, payment will be based on the actual quantities of Work as verified and approved by the Engineer, based on the price per unit as set forth in the Bid. c. The City or Contractor may initiate a Change Order or Change Order Request to adjust the Contract Price in accordance with Contractor Documents based on actual quantities of Unit Price Work. The City or Contractor may make a claim for an adjustment in the Unit Price in accordance with the Contract Documents if:
i. the quantity of any item of Unit Price Work performed by Contractor differs by twenty-five percent (25%) or more from the estimated quantity of such item indicated in the Contract; and
ii. there is no corresponding adjustment with respect to any other item of Work; and
iii. Contractor believes that Contractor is entitled to an increase in unit price as a result of having incurred additional expense or the City believes that the City is entitled to a decrease in unit price and the parties are unable to agree as to the amount of any such increase or decrease.

5.3 Progress Estimates and Payment.

A. By the tenth (10th) Day of the following calendar month, Contractor shall submit to Engineer a payment request which shall set forth in detail the value of the Work done for the period beginning with the date Work was first commenced and ending on the end of the calendar month for which the payment request is prepared. Contractor shall include an adjusted list of actual quantities, verified by the Engineer, for unit price items listed, if any, in the Bid. Contractor shall include any amount earned for authorized Additional Work. Contractor shall certify under penalty of perjury, that all cost breakdowns and periodic estimates accurately reflect the Work on the Project.

B. From the total thus computed, a deduction shall be made in the amount of five percent (5%) for retention, except where the City has adopted a finding that the Work Packet Page. 791
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done under the Contract is substantially complex, and then the amount withheld as retention shall be the percentage specified in the Notice Inviting Bids. From the remainder a further deduction may be made in accordance with Section C below.

The amount computed, less the amount withheld for retention and any amounts withheld as set forth below, shall be the amount of the Contractor’s payment request.

12. The City may withhold a sufficient amount or amounts of any payment or payments otherwise due to Contractor, as in its judgment may be necessary to cover:
a. Payments which may be past due and payable for just claims against Contractor or any Subcontractors for labor or materials furnished in and about the performance of work on the Project under this Contract.
b. Defective work not remedied.
c. Failure of Contractor to make proper payments to his Subcontractor or for material or labor. d. Completion of the Contract if there is a reasonable doubt that the Work can be completed for balance then unpaid.
e. Damage to another contractor or a third party.
f. Amounts which may be due the Count for claims against Contractor. g. Failure of Contractor to keep the Record Drawings up to date. h. Failure to provide update on construction schedule as required herein. i. Site cleanup.
j. Failure to comply with Contract Documents.
k. Liquidated damages.
l. Legally permitted penalties.

13. The City may apply such withheld amount or amounts to payment of such claims or obligations at its discretion with the exception of subsections (C)(1), (3), and (5) of this Article, which must be retained or applied in accordance with applicable law. In so doing, the City shall be deemed the agent of Contractor and any payment so made by the City shall be considered as a payment made under contract by the City to Contractor and the City shall not be liable to Contractor for such payments made in good faith. Such payments may be made without prior judicial determination of claim or obligations. The City will render Contractor a proper accounting of such funds disbursed on behalf of Contractor.

14. Upon receipt, the Engineer shall review the payment request to determine whether it is undisputed and suitable for payment. If the payment request is determined to be unsuitable for payment, it shall be returned to Contractor as soon as practicable but not later than seven (7) Days after receipt, accompanied by a document setting Packet Page. 792
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forth in writing the reasons why the payment request is not proper. The City shall make the progress payment within 30 Days after the receipt of an undisputed and properly submitted payment request from Contractor, provided that a release of liens and claims has been received from the Contractor pursuant to Civil Code section 8132. The number of days available to the City to make a payment without incurring interest pursuant to this paragraph shall be reduced by the number of Days by which the Engineer exceeds the seven (7) Day requirement.

15. A payment request shall be considered properly executed if funds are available for payment of the payment request and payment is not delayed due to an audit inquiry by the financial officer of the City.

16. The City shall have the right to adjust any estimate of quantity and to subsequently correct any error made in any estimate for payment.

5.4 Final Acceptance and Payment
A. Following the City’s acceptance of the Work, the Contractor shall submit to the City a written statement of the final quantities of unit price items for inclusion in the final payment request. The City shall have the right to adjust any estimate of quantity and to correct any error made in any estimate for payment.

B. When the Work has been accepted there shall be paid to Contractor a sum equal to the Contract Price less any amounts previously paid Contractor and less any amounts withheld by the City from Contractor under the terms of the Contract. The final five percent (5%), or the percentage specified in the Notice Inviting Bids where the City has adopted a finding of substantially complete, shall not become due and payable until as required by Public Contract Code section 7107. If the Contractor has placed securities with the City as described herein, the Contractor shall be paid a sum equal to one hundred percent (100%) of the Contract Price less any amounts due the City under the terms of the Contract.

C. Unless Contractor advises the City in writing prior to acceptance of the final five percent (5%) or the percentage specified in the Notice Inviting Bids where the City has adopted a finding of completion, or the return of securities held as described herein, said acceptance shall operate as a release to the City of all claims and all liability to Contractor for all things done or furnished in connection with this Work and for every act of negligence of the City and for all other claims relating to or arising out of this Work. If Contractor advises the City in writing prior to acceptance of final payment or return of the securities that there is a dispute regarding the amount due the Contractor, the City may pay the undisputed amount contingent upon the Contractor furnishing a release of all undisputed claims against the City with the disputed claims in stated amounts being specifically excluded by Contractor from the operation of the release. No payments, however, final or otherwise, shall operate to release Contractor or its sureties from the Faithful Performance Bond, Labor and Material Payment Bond, or from any other obligation under this Contract.

D. In case of suspension of the Contract any unpaid balance shall be and become the sole and absolute property of the City to the extent necessary to repay the City any excess in the cost of the Work above the Contract Price.

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E. Final payment shall be made no later than 60 Days after the date of acceptance of the Work by the City or the date of occupation, beneficial use and enjoyment of the Work by the City including any operation only for testing, start-up or commissioning accompanied by cessation of labor on the Work, provided that a release of liens and claims has been received from the Contractor pursuant to Civil Code section 8136.

In the event of a dispute between the City and the Contractor, the City may withhold from the final payment an amount not to exceed 150% of the disputed amount.

F. Within ten (10) Days from the time that all or any portion of the retention proceeds are received by Contractor, Contractor shall pay each of its Subcontractors from whom retention has been withheld each Subcontractor’s share of the retention received. However, if a retention payment received by Contractor is specifically designated for a particular Subcontractor, payment of the retention shall be made to the designated Subcontractor if the payment is consistent with the terms of the subcontract.

ARTICLE 6 - MISCELLANEOUS

6.2 Patents.

A. Contractor shall hold and save the City, officials, officers, employees, and authorized volunteers harmless from liability of any nature or kind of claim therefrom including costs and expenses for or on account of any patented or unpatented invention, article or appliance manufactured, furnished or used by Contractor in the performance of this Contract.

6.3 Document Retention & Examination
A. In accordance with Government Code section 8546.7, records of both the City and the Contractor shall be subject to examination and audit by the State Auditor General for a period of three (3) years after final payment.

B. Contractor shall make available to the City any of the Contractor’s other documents related to the Project immediately upon request of the City.

C. In addition to the State Auditor rights above, the City shall have the right to examine and audit all books, estimates, records, contracts, documents, bid documents, subcontracts, and other data of the Contractor (including computations and projections) related to negotiating, pricing, or performing the modification in order to evaluate the accuracy and completeness of the cost or pricing data at no additional cost to the City, for a period of four (4) years after final payment.

6.4 Notice.

A. All notices shall be in writing and either served by personal delivery or mailed to the other party. Written notice to the Contractor shall be addressed to Contractor’s principal place of business unless Contractor designates another address in writing for service of notice. Notice to the City shall be addressed to the City as designated in the Notice Inviting Bids unless the City designates another address in writing for service of notice. Notice shall be effective upon receipt or five (5) Days after being Packet Page. 794
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sent by first class mail, whichever is earlier. Notice given by facsimile shall not be effective unless acknowledged in writing by the receiving party.

G. Notice of Third Party Claims

1. Pursuant to Public Contract Code section 9201, the City shall provide the Contractor with timely notification of the receipt of any third-party claims relating to the Contract.

The City is entitled to recover reasonable costs incurred in providing such notification.

H. State License Board Notice

1. 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 four (4) 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.

I. Assignment of Contract

1. Contractor shall not assign, transfer, convey, sublet or otherwise dispose of the rights or title of interest of any or all of this contract without the prior written consent of the City. Any assignment or change of Contractor’s name of legal entity without the written consent of the City shall be void. Any assignment of money due or to become due under this Contract shall be subject to a prior lien for services rendered or material supplied for performance of Work called for under the Contract Documents in favor of all persons, firms, or corporations rendering such services or supplying such materials to the extent that claims are filed pursuant to the Civil Code, the Code of Civil Procedure or the Government Code.

J. Change In Name And Nature Of Contractor’s Legal Entity.

1. Should a change be contemplated in the name or nature of the Contractor’s legal entity, the Contractor shall first notify the City in order that proper steps may be taken to have the change reflected on the Contract and all related documents. No change of Contractor’s name or nature will affect the City’s rights under the Contract, including but not limited to the bonds.

K. Prohibited Interests

1. No City official or representative who is authorized in such capacity and on behalf of City to negotiate, supervise, make, accept, or approve, or to take part in negotiating, supervising, making, accepting or approving any engineering, inspection, construction or material supply contract or any subcontract in connection with construction of the project, shall be or become directly or indirectly interested financially in the Contract.

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10.9 Controlling Law
A. Notwithstanding any subcontract or other contract with any subcontractor, supplier, or other person or organization performing any part of the Work, this Contract shall be governed by the law of the State of California excluding any choice of law provisions.

10.10 Jurisdiction; Venue
A. Contractor and any subcontractor, supplier, or other person or organization performing any part of the Work agrees that any action or suits at law or in equity arising out of or related to the bidding, award, or performance of the Work shall be maintained in the Superior Court of San Bernardino County, California, and expressly consent to the jurisdiction of said court, regardless of residence or domicile, and agree that said court shall be a proper venue for any such action.

10.11 Cumulative Remedies.

A. The duties and obligations imposed by these General Conditions and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to any or all of them which are otherwise imposed or available by Applicable Laws, by special warranty or guarantee, or by other provisions of the Contract Documents.

The provisions of this Article will be as effective as if repeated specifically in the Contract Documents in connection with each particular duty, obligation, right, and remedy to which they apply.

10.12 Survival of Obligations.

A. All representations, indemnifications, warranties, and guarantees made in, required by, or given in accordance with the Contract Documents, as well as all continuing obligations indicated in the Contract Documents, will survive final payment, completion, and acceptance of the Work or termination or completion of the Contract or termination of the services of Contractor.

10.13 Headings.

A. Article and paragraph headings are inserted for convenience only and do not constitute parts of these General Conditions.

10.14 Assignment of Antitrust Actions
A. In accordance with §7103.5(b) of the California Public Contract Code, Contractor and Subcontractors must conform to the following requirements:

1. In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, Contractor or Subcontractor offer and agree to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under §4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with §16700) of Part 2 of Packet Page. 796
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Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. a. This assignment must be made and become effective at the time the awarding body tenders to Contractor, without further acknowledgment by the parties.

6.5 All Legal Provisions Included
A. Contractor shall give all notices and comply with all federal, state and local laws, ordinances, rules and regulations bearing on conduct of work as indicated and specified by their terms. References to specific laws, rules or regulations in this Contract are for reference purposes only, and shall not limit or affect the applicability of provisions not specifically mentioned. If Contractor observes that drawings and specifications are at variance therewith, he shall promptly notify City in writing and any necessary changes shall be adjusted as provided for in this Contract for changes in Work. If Contractor performs any Work knowing it to be contrary to such laws, ordinances, rules and regulations, and without such notice to City, he shall bear all costs arising therefrom.

B. Contractor shall be responsible for familiarity with the Americans with Disabilities Act (“ADA”) (42 U.S.C. § 12101 et seq.). The Work will be performed in compliance with ADA laws, rules and regulations. Contractor shall comply with the Historic Building Code, including, but not limited to, as it relates to the ADA, whenever applicable.

C. Contractor acknowledges and understands that, pursuant to Public Contract Code section 20676, sellers of "mined material" must be on an approved list of sellers published pursuant to Public Resources Code section 2717(b) in order to supply mined material for this Contract.

D. No City official or representative who is authorized in such capacity and on behalf of City to negotiate, supervise, make, accept, or approve, or to take part in negotiating, supervising, making, accepting or approving any engineering, inspection, construction or material supply contract or any subcontract in connection with construction of the Work, shall be or become directly or indirectly interested financially in the Contract.

E. All provisions of law required to be inserted in the Contract or Contract Documents pursuant to any Applicable Laws shall be and are inserted herein. If through mistake, neglect, oversight, or otherwise, any such provision is not herein inserted or inserted in improper form, upon the application of either party, the Contract or Contract Documents shall be changed by City, at no increase in Contract Price or extension in Contract Times, so as to strictly comply with the Applicable Laws and without prejudice to the rights of either party hereunder
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L. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature
ARTICLE 7 -– FLEET COMPLIANCE

7.2 To the extent applicable, Contractor, shall comply, and shall ensure all subcontractors comply, with all requirements of the most current version of the California Air Resources Board (“CARB”) including, without limitation, all applicable terms of Title 13, California Code of Regulations Division 3, Chapter 9 and all pending amendments (“Regulation”).

7.3 Throughout Project, and for three (3) years thereafter, Contractor shall make available for inspection and copying any and all documents or information associated with Contractor’s and subcontractors’ fleet including, without limitation, the CRCs, fuel/refueling records, maintenance records, emissions records, and any other information the Contractor is required to produce, keep or maintain pursuant to the Regulation upon two (2) calendar days’ notice from the City.

7.4 Contractor shall be solely liable for any and all costs associated with complying with the Regulation as well as for any and all penalties, fines, damages, or costs associated with any and all violations, or failures to comply with the Regulation. Contractor shall defend, indemnify and hold harmless the City, its officials, officers, employees and authorized volunteers free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Regulation.

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Award of Construction Agreement to Prestige Paving Company Inc., for the Re-Paving of the Ruben Campos
Community Center Parking Lot for a Total Amount Not to
Exceed $292,993.27 (Ward 1)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino California;

1. Approve the award of a Construction Agreement with Prestige Paving Company Inc., in the amount of $244,161.06 for the Re-Paving of the Ruben Campos Community Center Parking Lot (Project); and

2. Authorize construction contingencies, construction management, and administrative costs in the total amount of $48,832.21 for construction of the project; and

3. Authorize the City Manager or designee to execute all documents with Prestige Paving Company Inc.; and

4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project; and

5. Find the Project exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines § 15302 (“Replacement or Reconstruction”).

Executive Summary
Awarding the agreement for the re-paving of the Ruben Campos Community Center parking lot will ensure the continued usability and safety of the facility’s exterior infrastructure. The agreement will allow the City to issue Prestige Paving Company Inc., a Notice to Proceed, initiating the process for demolition and resurfacing of the Packet Page. 830
parking lot. The scope of work includes demolition of existing pavement, grading, repaving, striping, and improvements to ADA-compliant parking spaces and pathways.

The project will be funded from budget allocated under Measure S.

Background
The Ruben Campos Community Center, located at 1717 5th Street, San Bernardino, CA 92411, serves as a cornerstone of community engagement, offering a variety of programs and services that cater to residents of all ages. The facility includes a spacious multi-purpose room, designated areas for senior citizens and recreational activities, and provides programs such as Arts & Crafts, Nutrition Education, and Homework Help. The center is a vital hub for the community, serving low- and moderate-income individuals through various initiatives.

As part of ongoing improvements to the facility, the City has undertaken necessary upgrades, including HVAC system replacements, restroom fixture upgrades, gym flooring enhancements, and ADA-compliant access improvements. These facility upgrades underscore the importance of maintaining the surrounding infrastructure, particularly the parking lot, which has significantly deteriorated. The current state of the parking lot poses accessibility challenges and safety concerns for visitors. The repaving of the parking lot is essential to complement the recent facility enhancements and ensure compliance with ADA standards while improving usability for the community.

On June 2, 2021 the Mayor and City Council reviewed and approved funding for this project, which was adopted as part of the FY 2021-22 budget under Measure S, with an allocated budget of $625,000. This funding was allocated to address the needed improvements to the facility, including the Ruben Campos Community Center parking lot.

Discussion
The proposed project includes the full demolition and resurfacing of the parking lot at the Ruben Campos Community Center. The existing pavement has reached the end of its useful life and requires reconstruction to restore proper functionality. The scope of work involves removing the deteriorated pavement, grading and preparing the subbase, installing new asphalt paving, and striping parking spaces to meet current standards, including designated ADA-compliant parking stalls. In addition, improvements will be made to the accessibility pathways to better comply with ADA requirements. Necessary drainage adjustments will also be incorporated to prevent water pooling and ensure long-term durability of the pavement.

Staff recommends authorizing the City Manager or their designee to execute all necessary documents with Prestige Paving Company and to manage the project, including the expenditure of contingency funds if needed. These actions are necessary to ensure the successful completion of Ruben Campos Community Center asphalt paving project, which will provide valuable community engagement opportunities at this park. The recommended actions are aimed at facilitating the Packet Page. 831
timely and efficient progress of this project.

The project was advertised for public bidding on December 19, 2024, on PlanetBids.

Eleven sealed bids were received and opened on January 21, 2025. The total base bid plus additive alternate prices are as follows:

Staff has reviewed all bid packages and determined that Prestige Paving Company Inc., of La Mirada, CA, submitted the lowest responsible and responsive bid and met all project requirements. The total cost for the project is estimated at $292,993.27, including the construction contract, contingencies, and administrative costs.

Funding for this project was adopted on July 1, 2021, under Measure S as part of the budget adoption process, with an allocated budget of $625,000. Of this amount, $292,993.27 is needed for the construction and repaving of the asphalt, leaving a remaining balance of $332,006.73 for future expenses or additional project needs.

Environmental Impact
The Project is categorically exempt from the California Environmental Quality Act Budget
Ruben Campos Communtiy Center
Improvement Budget $625,000.00
Asphalt Paving Project Total Cost $292,993.27
Remaining Budget for Ruben Campos
Communtiy Center Improvements $332,006.73
Bid
Lowest Bid $244,161.06
Contingency & Administrative Cost $48,832.21
Total Construction Cost $292,993.27
Bidder City Bid
Prestige Paving Company La Mirada, CA $244,161.06
All American Asphalt Corona, CA $251,935.95
Onyx Paving Company Anaheim, CA $262,000.00
Century Paving La Mirada, CA $263,197.19
Matich Corporation San Bernardino, CA $281,976.00
NPG Inc. Perris, CA $286,483.01
DM Contracting Inc. Colton, CA $300,974.62
S. Christensen Engineering Apple Valley, CA $310,988.63 Pave West Inc. Artesia, CA $355,767.00
Hardy & Harper Inc. Lake Forest, CA $370,000.00
Asphalt Fabric and Engineering Signal Hill, CA $477,040.50 Packet Page. 832
(“CEQA”) pursuant to State CEQA Guidelines Section 15302, Replacement or Reconstruction (“Class 2”). The Class 2 exemptions allow for the replacement or reconstruction of existing structures or facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Here, the Project involves minor improvements and reconstructing the park facilities located on the same site.

The City has also considered whether the proposed Project is subject to any exception to the Class 2 exemption, as set forth in State CEQA Guidelines section 15300.2. No exception applies for the following reasons:
a) The location exception only applies to Class 3, 4, 5, 6, and 11 exemptions, none of which are being utilized here.
b) The proposed Project would not result in any significant cumulative impacts on the environment. The cumulative impacts exception does not apply because the Project has no
incrementally significant impacts on the environment.
c) A categorical exemption may be subject to an exception where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual
circumstances. The proposed Project does not involve any unusual circumstances and has no potential to result in a significant impact on the environment.
d) Under the “scenic highways” exception, a categorical exemption may be subject to an exception where the project may result in damage to scenic resources within a highway officially
designated as a state scenic highway. The exception does not apply here as the Project would not damage any scenic
resources within a state scenic highway.

e) The Project is not located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code. f) The Project site does not contain a historical resource. 2021-2025 Strategic Targets and Goals
Authorizing this agreement aligns with Key Target No. 3: Improved Quality of Life. The completion of this project will improve safety, accessibility, and functionality of the community center’s parking facilities, benefiting all visitors.

Fiscal Impact
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The project will be funded through Measure S, which was adopted as part of the City’s budget on July 1, 2021, with an allocation of $625,000. There is sufficient budget within the department’s FY24-25 CIP budget to fund this agreement.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino California:

1. Approving the award of a Construction Agreement with Prestige Paving Company Inc., in the amount of $244,161.06 for the Re-Paving of the Ruben Campos Community Center Parking Lot (Project); and

2. Authorizing construction contingencies, construction management, and administrative costs in the total amount of $48,832.21 for construction of the project; and

3. Authorizing the City Manager or designee to execute all documents with Prestige Paving Company Inc.; and

4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project; and

5. Finding the Project exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines § 15302 (“Replacement or Reconstruction”).

Attachments
Attachment 1 Agreement with Prestige Paving Company Inc.

Attachment 2 Bid Tabulation
Attachment 3 Bid Proposal
Attachment 4 Location Map
Ward:

Ward 1
Synopsis of Previous Council Actions:

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: March 19, 2025
To: Honorable Mayor and City Council Members
From: Bill Gallardo, Interim City Manager
Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Approval of Task Order Number 002 to Rick
Engineering for a total amount not to exceed $70,260
for Design Services on the Pepper Street Storm Drain
from Lynwood Drive South to Piedmont Drive
(Lynwood Drive Storm Drain) (Ward 4)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2025-266:

2. Authorizing design contingencies, project management, and administrative costs in the amount of $11,710.00; and

3. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 Capital Improvement Plan by re-allocating $70,260.00 from the Storm Drain Upgrade project to the Pepper Street Storm Drain from Lynwood Drive South to Piedmont Drive (Lynwood Drive Storm Drain) Project; and

4. Authorizing the City Manager or designee to execute an all documents necessary for the Task Order with Rick Engineering Company; and

5. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

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Executive Summary:

Approving the task order with Rick Engineering for storm drain design services for Pepper Street Storm Drain from Lynwood Drive South to Piedmont Drive will address drainage issues, improve water flow management, and enhance the area’s infrastructure. This task order aligns with the City’s commitment to maintaining and upgrading essential infrastructure, ensuring the safety and well-being of residents, and allowing the project to proceed on schedule as part of ongoing improvements to the City's stormwater management system. This Task Order is being issued through an existing pre-approved on-call list, and the design services will be funded by the Storm Drain Construction fund.

Background
The Lynwood Drive Storm Drain project, located along the Pepper Street Storm Drain, extends from Lynwood Drive South to Piedmont Drive. This project aims to address critical stormwater management concerns in the affected area, which includes portions of Lynwood Drive, Piedmont Drive, and surrounding neighborhoods. The existing storm drain system along this corridor has been facing operational challenges due to aging infrastructure, undersized drainage capacity, and inadequate flow management, which have contributed to frequent flooding issues during heavy rain events. The project’s design services will focus on updating the storm drain system to ensure proper flow, improve drainage efficiency, and mitigate flooding risks within this area. The project's scope includes detailed engineering assessments and design services that will address the technical and geographic constraints, including limited available space for infrastructure improvements, and ensuring that the upgraded system meets both current and future needs for the surrounding community.

For clarity and consistency, this report will refer to the project as the Lynwood Drive Storm Drain project, which is the commonly recognized term in related documentation and discussions.

The Storm Drain Upgrade is an ongoing initiative aimed at addressing various stormwater management needs throughout the city. The project fund is used to support the completion of storm drain improvements, upgrades, and maintenance, including efforts such as the Lynwood Drive Storm Drain project. As of the current period, the Storm Drain Upgrade project has an available balance of approximately $1,853,580.84. This fund is utilized to support projects like the one being proposed, ensuring the city's storm drain infrastructure is effectively managed and enhanced.

This project is funded with the use of Development Impact Fees (DIF). The fees are charged on new development projects to fund the necessary infrastructure and public services required by the growth. These fees are typically used for the construction and improvement of roads, parks, schools, and other essential facilities. However, DIF funds are restricted to being used only for the purposes for which they were collected, ensuring they directly benefit from the development areas that generate them.

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On November 16, 2022, the Mayor and City Council approved the award of fiveyear On-Call Services Agreements with various engineering firms to provide a broad range of professional services to the city. These agreements allow the City to streamline procurement processes and efficiently engage qualified firms as needed for specific projects. Rick Engineering is one of the approved on-call services providers.

On June 26, 2024, the Mayor and City Council adopted Resolution No. 2024-142, approving and adopting the City of San Bernardino’s Operating Budget and Capital Improvement Plan for Fiscal Years 2024/25 and 2025/26. This resolution sets the framework for the City’s strategic priorities, which include enhancing infrastructure and addressing critical needs within the community. The approval of the Capital Improvement Plan ensures that necessary projects, such as the storm drain improvements at Lynwood Drive, receive the appropriate funding and resources to proceed in alignment with the City’s long-term planning goals.

Discussion
The project aims to address the management of natural spring water in the area while maintaining the integrity of existing stormwater flows. The spring water, which begins on the west side of Pepper Street, approximately 200 feet north of Lynwood Drive and North Pepper Street intersection, has created challenges for the local drainage system.

To mitigate this, the project involves constructing about 500 linear feet of storm drain along Pepper Street to divert the spring water into an existing catch basin at the end of the Pepper Street cul-de-sac. The design will include a drop inlet system and potentially reconstructing an under-sidewalk curb drain to effectively manage the additional flow. City staff requested proposals from pre-approved on-call engineering consultants to provide a solution for this diversion. The proposal request outlined the need for a comprehensive plan, including engineering design, surveys, and coordination with utility providers to ensure that the design avoids conflicts and is appropriately sized for the increased flow. Proposals were evaluated based on technical approach, experience, and cost to identify the most qualified vendor for the project.

City staff requested design proposals from on-call engineering consultants for the project. The City received one proposal included in the table below.

In the proposal request, vendors were asked to provide a detailed plan to divert the existing water flow from the spring water. The scope of work outlined in the proposal included all necessary engineering and design efforts to manage the diversion of this water flow, with the expectation that all relevant information for the project would be Proposals
Rick Engineering Riverside, CA
IMEG Pasadena, CA
Hernandez, Kroone & Associates San Bernardino, CA
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provided in the attached documentation. The proposals received are evaluated based on their technical approach, experience, and cost to ensure the selection of the bestsuited vendor for the task.

Staff have reviewed the proposals and recommend Rick Engineering Company of Riverside, California to complete the design for this project. The proposal demonstrated a clear understanding of the project needs and includes a competitive price of $58,550.00. Additional funds are recommended for design contingencies, project management, and administrative costs in the amount of $11,710.00 The total cost of design, design contingencies, project management, and administrative costs is $70,260.00.

At the close of the last fiscal year, the funding balance for the Storm Drain Upgrade project was $1,548,098.54. After allocating funds for the Hill & Acacia Storm Drain and 19th Street Storm Drain projects, the remaining balance for the Storm Drain Upgrade was $1,346,188.54. This fiscal year, the funding balance for the project has increased to $1,853,580.84, due to an additional budget allocation of $500,000.00 approved during the fiscal year budget adoption.

The Storm Drain Upgrade project typically funds similar drainage improvement projects, and creating a separate capital improvement project will streamline project management and administrative processes. This proposed allocation will not impact any other ongoing storm drain projects. The current balance of $1,853,580.84 reflects the increased budget, with $70,260.00 designated for the Lynwood Drive Storm Drain project and $68,760.00 allocated for the Pleasant Hill Storm Improvements project, leaving a total remaining balance of $1,714,560.84 in the Storm Drain Upgrade. Please note that this balance is pending approval by the Mayor and City Council (MCC) on March 19, 2025.

The table below shows the project balance after both storm drain projects are adopted:

Design Cost
Design Fee $58,550.00
Contingency $11,710.00
Total Design Cost $70,260.00
Project Balance
Storm Drain Upgrade $1,853,580.84
Lynwood Drive Storm Drain $70,260.00
Pleasant Hill Storm Improvements $68,760.00
Remaining Budget for Storm Drain Upgrade $1,714,560.84
*Pending March 19, 2025 MCC Approval
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2021-2025 Strategic Targets and Goals
This project is consistent with Key Strategic Target and Goal No. 1: Improved Operational & Financial Capacity – Minimize risk and litigation exposure. Approval of this design services will result in public improvements being constructed that minimize property damage and health risks through upgrading the existing drainage system.

Fiscal Impact
There is no General Fund impact associated with this action. The fiscal impact for this item is $70,260.00. Fiscal Year 2024/25 CIP Budget will be amended by transferring $70,260.00 from the Storm Drain Upgrade project to the Lynwood Drive Storm Drain Project.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2025-266:

2. Authorizing design contingencies, project management, and administrative costs in the amount of $11,710.00; and

4. Authorizing the City Manager or designee to execute all documents necessary for the Task Order with Rick Engineering Company; and

5. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

Attachments
Attachment 1 Resolution 2025-266
Attachment 2 Task Order Number 002 with Rick Engineering Company Attachment 3 Location Map
Ward:

Fourth Ward
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Synopsis of Previous Council Actions:

June 26, 2024 Mayor and City Council adopted Resolution No. 2024-142 approving and adopting the City of San Bernardino’s Operating Budget and Capital Improvement Plan for Fisal Years 2024/25 and 2025/26.

November 16, 2022 Mayor and City Council approved award of a five-year On-Call Services Agreements with various engineering firms.

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Resolution No. 2025-266
Resolution 2025-266
March 19, 2025

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Mayor and City CouncilMarch 19, 2025

Mayor and City Council
March 19, 2025