San Clemente City Council
June 20, 2023

VI. LATE CHARGES
The late payment of any invoiced amount by a contracting entity will cause the County to incur costs not contemplated by the County/contracting entity agreement, the exact amount of such cost will be extremely difficult to ascertain. Such costs include, but are not limited to, costs such as administrative follow-up and processing of delinquent notices, increased accounting costs, etc.

Late charges will be assessed in the following situations:

Over-the-counter payments will be assessed a late charge if any payment is not received by the County by the payment due date.

Payments transmitted to the County via
meter mark will be assessed a late charge if any payment is not received by the County by the payment due date plus one day.

Payments transmitted to the County via the U.S. Mail that have a U.S. Post Office postmark dated after the payment due date will be assessed a late charge.

The late charge assessed in each of these situations shall be three-quarters of one percent (0.75%) of the payment due and unpaid plus $100.00 for late payments made within 30 days of the payment due date. An additional charge of three-quarters of one percent (0.75%) of said payment shall be added for each additional 30-day period that the payment remains unpaid. Late charges shall be added to the payment and invoiced to the contracting entity in accordance with this policy.

VII. COLLECTIONS
Any invoice remaining unpaid 90 days after the invoice date shall be referred to the AuditorController for subsequent collection action, such as deduction from contracting entity moneys on deposit with the County Treasurer in accordance with Government Code Section 907 and any other applicable provision of law. Non-payment of invoices and applicable late charges will constitute a breach of contract for which the County retains all legal remedies including termination of the contract.

VIII. DISCOUNT FOR EARLY PAYMENT
Any payment received by the County from a contracting entity 20 days or more before the payment due date shall be entitled to a discount of one-quarter of one percent (0.25%). If the contracting entity takes a discount, and the payment is received by the County less than 20 days before the payment due date, County staff shall immediately notify the contracting entity by telephone that the discount should not have been taken and that the balance is due by the original payment due date.

If the balance is not received by the County in accordance with the dates as specified in Section VII, applicable late charges shall be calculated on the balance due. 37 the U.S. Mail that have the payer's postage

IX. DEFERRED REVENUE
At fiscal year end, any portion of revenue invoiced (not necessarily received) during the fiscal year being closed out that represents charges or prepayment for materials and/or services for the upcoming fiscal year shall be reclassified from a revenue account to a deferred revenue account (liability). In the new fiscal year the deferred revenue shall be reclassified to a revenue account. (EXAMPLE: On June 1, 19X1, a city is invoiced $48,000 which represents charges for the 12-month period June 1, 19X1 to May 31, 19X2. The amount to be reclassified to deferred revenue would be $44,000, representing 11/12ths of the total amount. In July 19X1, the $44,000 would be reclassified to revenue.) Reclassification entries shall be made by Auditor-Controller Agency Accounting units, or for those agencies/departments/districts without such a unit, the agency/department/district shall notify the Auditor-Controller of the amounts to be reclassified.

X. COST RECOVERY
All County agencies/department/districts shall include all costs of providing contracted services in contract rates. Including all direct costs, allocated indirect costs such as departmental and County (CWCAP) overhead, and cost of capital financing.

XI. EXISTING CONTRACTS
Billing terms and provisions contained in existing contracting entity agreements (existing as of the date this policy is approved by the Board of Supervisors) shall remain in effect for the life of the contract. However, when these existing contracts are renegotiated, they shall contain the billing provisions as set forth in this policy.

XII. DEVIATIONS FROM POLICY
Deviations from this policy shall be approved by the Board of Supervisors. Proposed deviations by agencies/departments/districts shall be submitted to the CEO for concurrence in advance of filing an Agenda Item Transmittal (AIT) with the Clerk of the Board. The CEO, or his/her designee, shall advise the agency/department/district of approval or disapproval of the proposed deviations. If a County agency/department/district submits a contract to the Board of Supervisors for approval, and the billing provisions in the contract deviate from this policy, the agency/department/district shall specifically advise the Board of Supervisors in the AIT of the deviation, the reason for the
relative thereto.

38 deviation, and of the CEO's recommendation
5/7/2020 Rev.

ATTACHMENT

POLICY FOR DISTRIBUTION OF FORFEITED AND SEIZED ASSETS

BACKGROUND
The Orange County Sheriff’s Department provides contract law enforcement services to cities in Orange County. Because of the increased likelihood that contracted patrol or investigation personnel may become involved in significant narcotic seizures, which could affect law enforcement services provided by the Sheriff’s Department to contract cities, the following policy is in effect.

CONTRACTED PATROL AND INVESTIGATION OFFICERS
When assets (cash or property) are seized in CITY by contracted patrol or investigation personnel, and subsequently forfeited to COUNTY’s Sheriff Department, hereinafter referred to as “SHERIFF”, the forfeited assets shall be shared with CITY as set forth below, for the purpose of augmenting law enforcement services in CITY, subject to guidelines by the forfeiting agency of such sharing and use of forfeited assets. A portion of forfeited assets may be retained by SHERIFF, to pay for departmental expenses not recovered through law enforcement contracts.

In such cases, pursuant to the forfeiting agency’s guidelines, SHERIFF shall apply to the forfeiting agency for the return of a share of assets. In his application, SHERIFF shall specify the percentage of shared assets returned to SHERIFF that will be used to augment law enforcement services in CITY and the use of said assets by CITY.

In those cases in which assets are seized within CITY by personnel assigned to CITY pursuant to this Agreement, without the involvement of other law enforcement personnel, and in which the seizure is a result solely of activities self-initiated by SHERIFF personnel assigned to CITY or initiated by said personnel in response to calls for service within CITY, SHERIFF shall apply to have all of the assets used to augment CITY law enforcement services.

In those cases in which SHERIFF personnel assigned to CITY pursuant to this Agreement play an ancillary role in a seizure or in which other law enforcement personnel are involved in a seizure, SHERIFF shall determine the percentage of the total forfeited assets for which he will apply to augment CITY’s law enforcement services. This determination will be based on the circumstances of the seizure, including the pro-rata involvement of all personnel, including those assigned to CITY.

Each seizure will be evaluated on an individual and independent basis, and said evaluations will be available for review to CITY’s manager. Examples of those incidents which would be evaluated as set forth in this section include situations in which a contract patrol deputy provides uniformed backup at a SHERIFF’s Narcotic Bureau search warrant location or in which contract investigators participate in the service of a search warrant that was initiated by non-contract law enforcement personnel.

Assets (cash or property) that are returned to SHERIFF by the forfeiting agency with the understanding that they will be used to augment CITY law enforcement services shall be used by CITY and SHERIFF only for such purposes. If the forfeiting agency attaches additional or more specific conditions to the use of said assets, CITY and SHERIFF shall also abide by those conditions. SHERIFF and CITY’s manager shall determine the specific use of said assets within the conditions imposed by the forfeiting agency. 39 E
40 ATTACHMENT F
RESOLUTION NO. 21-11

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SAN CLEMENTE, CALIFORNIA,

AUTHORIZING THE ORANGE COUNTY SHERIFF'S

DEPARTMENT TO COLLECT ITS UPDATED FEE

FOR THE TRAFFIC VIOLATOR APPREHENSION

PROGRAM IN THE CITY OF SAN CLEMENTE
WHEREAS, the Orange County Sheriff-Coroner ("the Sheriff') has instituted a Traffic Violator Apprehension Program designed to reduce vehicle accidents caused by unlicensed drivers and drivers whose licenses are suspended and to educate the public about the requirements of the Vehicle Code and related safety issues with regard to driver licensing, vehicle registration, vehicle operation, and parking; and WHEREAS, the Sheriff operates the Traffic Violator Apprehension Program in the unincorporated areas of Orange County and in cities (such as the City of San Clemente) that contract for the Sheriffs law enforcement services; and WHEREAS, operating the Traffic Violator Apprehension Program on an area-wide basis without regard to jurisdictional boundaries between the County and contract cities serves the public purpose of the City because drivers routinely cross jurisdictional boundaries, making an area-wide approach to reduction of traffic accidents and driver education most effective in preventing traffic accidents in all participating jurisdictions; and
WHEREAS, on March 28, 2000, the Orange County Board of Supervisors adopted Resolution No. 00-96, which established fees for the Traffic Violator Apprehension Program that are applicable in unincorporated areas of the County. The fees established by County Resolution No. 00-96 address the Sheriffs administrative costs relating to the removal, impound, storage, or release of properly impounded vehicles; and WHEREAS, on August 2, 2000, the San Clemente City Council adopted Resolution No. 00-54, which authorized the Sheriff to collect fees in the City in connection with the Traffic Violator Apprehension Program in amounts identical to the County's fees as set forth in County Resolution No. 00-96; and
WHEREAS, the Board of Supervisors has established an interest-earning, budgeted special revenue fund, called the "Traffic Violator Fund" and designated as Fund 138, to be controlled by the Sheriff; and
WHEREAS, the Board of Supervisors has directed that proceeds from the Traffic Violator Apprehension Program fees be deposited into the Traffic Violator Fund; and WHEREAS, the Board of Supervisors has directed that funds from the Traffic Violator Fund must be used to reimburse the Sheriff for the administrative costs associated with the removal, storage, impound, and release of vehicles in accordance with the California Vehicle Code ("Vehicle Code"); and
55452 0 11 00\33755780.1
' 41 i
Resolution No. 21-11 Page 2
WHEREAS, the Sheriff impounds vehicles removed from highways, public property, and private property in the unincorporated areas of the County and in contract cities pursuant to the following authority under the Vehicle Code:

Vehicle Code Section and Impound Ground
14602.6 Suspended, revoked or unlicensed driver/30-day hold 22651 (a) Unattended vehicle on bridge
22651 (d) Vehicle blocking driveway
22651 (e) Vehicle blocking fire hydrant
22651 (f) Vehicle blocking freeway
22651 (h) (1) Driver arrested
22651 (h) (2) Order of suspension or revocation pursuant to section 13388 22651 (i) (1) Multiple parking citations
22651 0) Lack of vehicle registration
22651 (k) Parking over seventy-two hours
22651 (I) Parking in a construction zone
22651 (m) Violation of special events restriction
22651 (n) No parking zone
22651 (o) (1) Vehicle registration is incorrect, falsified or expired by more than six months
22651 (p) Driver unlicensed or license suspended
22651 (r) Vehicle blocking another vehicle
22651 (t) Notice to appear/illegal amber lights
22651 (u) Acting as a car dealer without a license or temporary permit 22651 (v) Illegally letting stand a mobile billboard advertisement 22651 (w) Second or subsequent violation of an ordinance 22655.3 Removal for investigation (fleeing in violation of section 2800.1 or 2800.2)
55452.0 I I 00\33755780. 1
(
i
i
i
\__
L-~-------------------------------
42 .. ----
------·---·--·------
Resolution No. 21-11 Page 3
22655.5
22655.5
22669
(a) Vehicle was used as the means of committing a public offense (b) Vehicle is evidence of crime
Abandoned vehicle
WHEREAS, Vehicle Code section 22850.5 authorizes the City Council, by resolution, to establish a fee equal to the administrative costs relating to the removal, impound, storage, or release of properly impounded vehicles; and WHEREAS, over 20 years have passed since the Board of Supervisors · first established the Traffic Violator Apprehension Program fees in County Resolution No. 00- . 96; and
WHEREAS, a cost study prepared in 2020 by the Sheriff demonstrated a need to update the County's Traffic Violator Apprehension Program fees. The Sheriff's cost study determined that the Sheriff's administrative costs relating to the removal, impound, storage, or release of vehicles properly impounded under the Vehicle Code is $144.00 per removal; and
WHEREAS, on November 17, 2020, the Board of Supervisors adopted an updated Traffic Violator Apprehension Program fee of $144.00 per removal; and WHEREAS, consistent with the City's authority under Vehicle Code section 22850.5, the Sheriff has requested that the City update its Traffic Violator Apprehension fees to match the County's new fee of $144.00 per removal; WHEREAS, the City Council desires to update the Traffic Violator Apprehension Program fee to match the County and further desires for the Sheriff to continue to collect the fee on behalf of the City. Continuing with such a practice will ensure that persons whose vehi<::les are impounded, rather than the public as a whole, will bear the administrative costs of such impounds; and
WHEREAS, Vehicle Code section 22850.5 imposed the following restrictions on the' imposition of this administrative fee:
a) The fee may only be imposed on the registered owner or the agents of that owner and may not include any vehicle towed under an abatement program or sold at a lien sale pursuant to Sections 3068.1 to 3074, inclusive, of, and Section 22851 of, the Civil Code unless the sale is sufficient in amount to pay the lienholder's total charges and proper administrative costs; and b) Any charges shall be collected by the local or state authority only from the registered owner or an agent of the registered owner; and c) The charges shall be in addition to any other charges authorized or imposed pursuant to this code; and
55452.0 1100\33755780.1
43 Resolution No. 21 -11 Page 4
d) The fee does not include any administrative costs associated with conducting a hearing or appeal relating to the removal, impound, storage, or release of a vehicle; and '
WHEREAS, in addition to the limitations set forth above, it is also unfair to impose the administrative fee authorized by Vehicle Code section 22850.5 in the following circumstances: 1) when the vehicle was left because it became inoperable while being drive, if the owner makes good faith attempts promptly to remove the vehicle from location where it is not permitted, 2) when the vehicle was stolen, 3) when the vehicle was left by an ill or injured driver, and 4) when it is demonstrated to the satisfaction of the Sheriff or ' his/her designee that neither the registered owner of the vehicle nor his/her agent, if any, was at fault in creating the circumstances leading to the .impounding of the vehicle; and WHEREAS, a notice of public hearing with respect to the proposed new Traffic Violator Apprehension Program fee provided herein was given according to law; and WHEREAS, a public hearing pertaining to the new Traffic Violator Apprehension Program fee was held on May 4, 2021 ; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE,

CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:

SECTION 1. The recitals above are true and correct and are hereby adopted as findings, as if fully set forth herein.

SECTION 2. The City Council finds that in accordance with the California Environmental Quality Act ("CEQA") and the CEQA Guidelines, the adoption of this Resolution is exempt from CEQA-pursuant to Public Resources Code section 21080 (b)(8) and Sections 15061(b)(3) and 15273(a)(1 ) of Title 14 of the Califorri.ia Code of Regulations because CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Here, this Resolution does not undertake any project that has the potential for causing a significant effect on the environment as the Resolution simply authorizes the Orange County Sheriffs Department to collect its updated operating cost-recovery fee for the removal, impoundment, and storage of vehicles for specified Vehicle Code violations.

SECTION 3. That on May 4, 2021, the administrative fee indicated below shall become effective for the removal, impound, storage, or release of vehicles properly impounded after removal from locations in the City in accordance with or on account of provisions of the Vehicle Code listed below:

A fee of $144.00 for each removal of a vehicle in accordance with or on account of violation of Vehicle Code sections:
14602.6 Suspended, revoked o~ unlicensed driver/30-day hold 55452.01100\33755780.1
\.
(
I
I
44 Resolution No. 21-11
22651 (a) Unattended vehicle on bridge
22651 (d) Vehicle blocking driveway
22651 (e) Vehicle blocking fire hydrant
22651 (f) Vehicle blocking freeway
22651 (h) (1) Driver arrested
22651 (h) (2) Order of suspension or revocation pursuant to section 13388 22651 (i) (1) Multiple parking citations
22651 G) Lack of vehicle registration
22651 (k) Parking over seventy-two hours
22651 (I) Parking in a construction zone
22651 (m) Violation of special events restriction
22651 (n) No parking zone

22651 (o) (1) Vehicle registration is incorrect, falsified or expired by more than six months
22651 (p) Driver unlicensed or license suspended
22651 (r) Vehicle blocking another vehicle
22651 (t) Notice to appear/illegal amber lights
22651 (u) Acting as a car dealer without a license or temporary permit 22651 (v) Illegally letting stand a mobile billboard advertisement 22651 (w) Second or subsequent violation of an ordinance 22655.3 Removal for investigation (fleeing in violation of section 2800.1 or 2800.2)
22655.5 (a) Vehicle was used as the means of committing a public offense 22655.5 (b) Vehicle is evidence of crime
22669 Abandoned vehicle
55452.01 100\33755780.1
45 Resolution No. 21-11 Page 6
SECTION 4. The Sheriff is authorized to collect the fee established herein, on behalf of the City, at the time of release of vehicles that are subject to the fee.

SECTION 5. The fee established herein shall only be imposed on the registered owner or the agent of the owner of the impounded vehicle, shall not include any vehicle towed under an abatement program or sold at a lien sale pursuant to Sections 3068.1 to 3074, inclusive of, and Section 22851 of, the Civil Code unless the sale is sufficient in amount to pay the lienholder's total charges and proper administrative costs.

SECTION 6. The fee established herein shall be collected only from the registered owner or an agent of the registered owner and that said fee is in addition to any other charges authorized or imposed pursuant to the Vehicle Code.

SECTION 7. The fee established herein complies with Vehicle Code section 22850.5 (b)(4) as the cost study conducted by the Sheriff that supports the $144.00 per removal fee did not include administrative costs for conducting a hearing or appeal related to the removal, impound, storage, or release of a vehicle .

SECTION 8. The Sheriff shall not impose the fee established herein in any of the following circumstances: (a) when the vehicle was left because it became inoperable while being driven, if the owner made good faith attempts promptly to remove the vehicle from a location where it was not permitted: (b) when the vehicle was stolen; (c) when the vehicle was left by an ill or injured driver; or (d) when it is demonstrated to the satisfaction of the Sheriff or his/her designee that neither the registered owner of the vehicle nor his/her agent, if any, was at fault in creating the circumstances leading to the impounding of the vehicle.

SECTION 9. A registered owner or an agent of a registered owner who believes he/she/they are exempt from the fee established herein under any of the criteria listed in Section 8 above may apply in writing for a waiver of the fee and shall present such supporting information or documentation, as the Sheriff may request, to the City's Administrative _ Sergeant. Upon the presentation of a written application for waiver of said fee, together with such supporting documentation as may be requested by the Sheriff, the Administrative Sergeant or his/her designee shall determine promptly whether the applicant meets the criteria for a waiver of the fee and if so, shall waive the fee.

SECTION 10. Until further order of the City Council, the Sheriff is directed to deposit the proceeds of the fee established herein into Traffic Violator Fund in the County Treasury. Proceeds from the Traffic Violator Fund shall be used in conformance with the County's restrictions for the same as well as in conformance with any applicable ( provisions set forth in the City's agreement with the County for the Sheriff's law enforcement services.

SECTION 11 . Until further order of the City Council, the Board of Supervisors is authorized to carry forward in the Traffic Violator Fund and accumulate any balance of proceeds of fees imposed by this Resolution that remains at the end of a fiscal year, as long as such fee proceeds will be used for the purposes provided herein. · 55452.01 I 00\33755780. 1
46 R sol tio 1 P ge
SE Tl N is es lut n pe e s s ution No. 0 -5 .

PASSED, APPROVED, D ADOPTED this 4th dayof_---'M'----"-='rv _ , 2021.

ATTEST:

STATE OF CALIFORNIA \
C U -,y . F RA G ) §
c~y. F ,; ,N .:lrME T
I, OA\N'~ BAAQf-, Ct, C1erk othe City of San Clemente, Ca'lifomia, do hereby certify that R ol io·. No -1, 11. __ '&! ad te· at re'. fa me , ,in of · e ty . ou iii · th Ci J of San Clemente held on the_ 4th_. _ day of_ _ ..Jv1iQ'.. _ _ _ _1 _ ~2L _, b th fo wi v e:

AYES:

NOES:

DUNCAN, rERGUSON, JAMES, MAYOR WARD
NONE

N' BL CK

OCSD BUDGET USE ONLYR E Q U E S T CE R TI F ICA T I ON A P P R O V A L S

ORANGE COUNTY SHERIFF-CORONER

TRAFFIC VIOLATOR APPREHENSION PROGRAM

CONTRACT CITY
Participating City Request to Purchase From the TVA in FY Date

APPLICABILTY

QUANTITY ITEM DESCRIPTION TO TVA PROGRAM ESTIMATED COST

THE CITY CERTIFIES THAT THE EQUIPMENT PURCHASED BY CITY AND TO BE REIMBURSED BY PROGRAM FUNDS

WILL BE USED FOR ITS ENTIRE USEFUL LIFE EXCLUSIVELY FOR THE PURPOSES OF THE TRAFFIC VIOLATOR

APPREHENSION PROGRAM
CITY MANAGER REQUEST: Printed Name
Signature: DATE
Recommended For Approval

CITY POLICE SERVICES CHIEF MANAGER TVA PROGRAM

ORANGE COUNTY SHERIFF-CORONER DEPARTMENT ATTACHMENT G
47 11/19/20
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

ATTACHMENT H

CITY OF SAN CLEMENTE

LICENSING
ORDINANCE NO. 1704

MASSAGE ESTABLISHMENTS
48 49
ORDINANCE. NO. 1704

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF SAN CLEMENTE, CALIFORNIA AMENDING
CHAPTER 17.28 .. 185 OF THE SAN CLEMENTE

MUNICIPAL CODE (RELATING TO MASSAGE
. ESTABLISHMENTS) AND FINDING THE ORDINANCE

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT .

WHEREAS, on August 18, 2020, the City Council unanimously approved the first reading of Ordinance No. 1702 , an ordinance amending Title 5 (Business Licenses and Regulatrons) and 17 (Zoning) of the San Clemente Municipal Code (Zoning Amendment 20~069) to deter human trafficking activity, clarify existing provisions, and correct erroneous text with · respect to massage establishments in the City of San · Clemente (the 11Massage Establishment Amendment Ordinance"); and , WHEREAS, on September 1, 2020, the City Council. waived the second reading of and unanimously approved for publication • and Implementation the Massage Establishment Amendment Ordinance; and
WHEREAS, on September 1, 2020, the City Council held a duly noticed public hearing on two supplemental' amendments to Chapter 17,28.185 with respect to regulation of the operation of massage establishments that further promote the health and safety goals .of preventing and deterring prostitution and human trafficking in the City of San Clemente, and. considered evidence. presented by City staff and other interested parties; and · ·
WHEREAS, Senate Bill 1193, approved by the Governor on September 24f 2012, and codified as California Civil Code § 52.6, requires, among other businesses, massage establishments to post a notice containing information related to slavery and · human trafficking in a conspicuous place near the entrance of the establishment or in a place in clear view of the public and employees where similar notices are customarily posted; and
V\(HEREAS, the San Clemente Municipal Code does not, but should, eontain a provision adopting the requirements of Senate BIii 1193 as they pertarn to massage establishrnents; and .

WHEREAS, the City Council recognizes that illegal activities. such as pandering or prostitution occur where customers who patronize massage establishments· believe they are anonymous; and
WHEREAS, the City Council believes that requiring operators. of massage establishments to retain a record of customers' names and addresses and dates and times of patr6_nage would deter customers, operators, and therapists from engaging in 1 50
Ordinance No. 1704 Page2
any illicit activity.

NOW, THEREFORE, the City Council. of the City of San Clemente does ordain as follows:·
· Section 1: The recitals above, as well as· those set forth in Ordinance No . .1ZQ2., are each incorporated by.reference and adopted as findings by 1he City Council.

Section 2: Pursuant to CEQA Guidelines Sections 15378(b)(2) and 15378(d)(5), these supplemental amendments are not a "project" within the meaning of the State CEQA Guidelines, because they rel.ate to ongoing administrative activities and organizational activities of government that will not result in direct or indirect physical changes in the environment. No further environmental review is required. l@mloo.~; Chapter 17.28.185 of the San Clemente Municipal Code is hereby amended to read as follows:· ·
••section 17.28.185 - Massage Establishments.

D. Facility Requirements.

2. Anti .. Human Trafficking Notice.. The noti.ce developed by the Department of· Justice and found at https:/loag.ca~.dov/human-traffi.ck:ing/model~notice, of tf size no. smaller than eight and one-half inches by 11 inches in s.ize, shall be posted in .

English, Spanish,· and Viefnamese in the customer waiting room so as to be visible to all people entering the establishment1 as well as in every private massage room.

E. Op.erational Requirements.
14, Every massage establishment shall keep a written reco.rd of the date and hour of each treatment administered,. the name and telephone number of _each patron, the name of th.e massage therapist or massage practitioner administering treatment, and the type of treatment admintstered, to be recorded on a patron release form. In addition, every massage. establishment shall obtain and retain (and every patron shall provide) a copy of the patron's drive.r's license or other state-Issued photo identification at the time of a patron's first visit to the massage establishment. If. a patron refuses to provide his/her photo identification for pho~ocopying by the operator, the operator shall refuse service to the patron.

Such records shall be open to inspection by officials charged with enforcement of this section as authorized by the law or court order, •if n~ces~ary. Such -records 2 51
Ordinance No. 1704 Page 3
shall be kept on the premises of the massage establishment for a period of two years."
Section 4: The City Clerk shall certify to the adoption of this ordinance and cause it, or a summary of it, to be published once within fifteen (15) days of adoption in a newspaper of general circulation printed and published within the City of San Clemente, and shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with California Government Code section 36933.

Section 5; If any provision of this ordinance or its application to any person or circumstance is held invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this ~xtent, the provisions of this resolution ~re severable. The City Council declares-that it would have adopted this resolution Irrespective of the invalidity of any portion thereof.

Section 6; The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council's findings and determinations are based are located at City Hall, 910 Calle Negocio, San Clemente, CA 92672.

APPROVED AND ADOPTED this 15th day of _-'S=e=p=te=m=b...::.cer=----• 2020 ATTEST:
/ / Ci}y Clerk of the City of
{ San Clemente, California
3 Mayor Pro Tern oft e City of
San Clemente, California
52 Ordinance No. 1704 Page 4

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss,

CITY OF SAN CLEMENTE )
I, JOANNE BAADE, City Clerk of the City of San Clemente, California, hereby certify that Ordinance No. 1704 having been regularly introduced at the meeting of September 1, 2020 , was again introduced, the reading in full thereof unanimously waived, and duly passed and adopted at a regular meeting of the City Council held on the 15th day of September , 2020 , and said ordinance was adopted by the following vote: ·
A YES: HAMM, JAMES, WARD, MAYOR PRO TEM FERGUSON
NOES: NO E
ABSENT: NONE
IN WITNESS WHEREOF, I have hereunto s~t my hand and affixed the official seal of the City of San Clemente, California, this ;;g-711 day of {)c;,.7, , .,joJ.O ' . ity of
nte, California

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 6/20/2023 Agenda Item: 10D
Department: City Manager
Prepared By Andy Hall, City Manager
Elizabeth Mitchell, City Attorney
Subject:

WITHDRAWAL OF RESOLUTION OF NECESSITY WITH RESPECT TO OPEN SPACE PROPERTY LOCATED SOUTHEAST OF AVENIDA PICO, ASSESSOR’S PARCEL NUMBERS 688 -011-01 AND 688-011-02
Summary:

Before the City Council is the withdrawal of Resolution No. 20-27, the resolution of necessity adopted in connection with the intent to acquire by eminent domain the open space property located Southeast of Avenida Pico, Assessor’s Parcel Numbers 688-011-01 and 688-011-02.

Background:

On April 21, 2020, the City Council adopted Resolution No. 20-27 (Attachment 2), declaring that “the acquisition of two undeveloped open space parcels located southeast of Avenida Pico, Assessor’s Parcel Numbers 688-011-01 and 688-011-02 (‘Property’), by eminent domain is necessary for use consistent with the property’s general plan and zoning designation, including open space preservation, habitat conservation and mitigation banking (‘Project’).” Subsequent to adoption of Resolution 20-27, on July 31, 2020, the City filed with the Orange County Superior Court a complaint in eminent domain titled “City of San Clemente v. Emergency Shelter Coalition, et al.” (case number 30-2020-01153535-CU-EI-CXC) the purpose of which was to acquire the Property through the use of eminent domain for the Project. In conjunction with the filing of the complaint in eminent domain, a Notice of Pendency of Action (Lis Pendens) was filed and recorded against the Property on August 17, 2020 with the Orange County Recorder’s Office and the deposit of probable just compensation for the value of the Property was made with the California State Treasurer.

Since the adoption of Resolution 20-27, circumstances have changed regarding the feasibility of the Project including, but not limited to, the source and availability of funding for the Project. More specifically, State legislation that could have secured the source of funds for the proposed mitigation bank in its entirety was vetoed by the Governor last year. The possibility of securing needed funds for the Project is now unknown. Without project funding, the possibility of implementing the Project is impossible and withdrawal of the Resolution of Necessity is appropriate.

Council Options:
· Adopt Resolution No. 23-59, withdrawing Resolution of Necessity 20-27 for the acquisition by eminent domain of two undeveloped open space parcels located Southeast of Avenida Pico, Assessor’s Parcel Numbers 688-011-01 and 688-011-02; authorizing staff with dismiss the complaint in eminent domain, withdraw the Notice of Pendency of Action (Lis Pendens) and CITY OF SAN CLEMENTE Page 1 of 2 Printed on 6/15/2023
powered by Legistar™ 1
Meeting Date: 6/20/2023 Agenda Item: 10D
complaint in eminent domain, withdraw the Notice of Pendency of Action (Lis Pendens) and seek release of the funds on deposit with the California State Treasurer. · Adopt Resolution No. 23-59 with modifications.
· Continue the item and provide staff with alternative direction on the Project. · Do not adopt Resolution No. 23-59.

Fiscal Impact:

Costs of exposure to litigation expenses, attorney’s fees and costs.

Environmental Review/Analysis:

Not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation

1. Withdraw Resolution of Necessity 20-27;

2. Authorize and direct staff to withdraw the Notice of Pendency of Action (Lis Pendens) and seek the release of the funds on deposit with the California State Treasurer; and

3. Authorize and direct staff to take those actions that are necessary and proper in connection with dismissal of the eminent domain action and to accomplish the purpose and intent of the Resolution in a timely and expeditious fashion.

Attachment:

1. Resolution No. 23-59

2. Resolution No. 20-27
Notification:

None.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 6/15/2023
powered by Legistar™ 2
ATTACHMENT 1
4884-3491-3897 v1
RESOLUTION NO. 23-59

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, DECLARING THE
WITHDRAWAL OF RESOLUTION OF NECESSITY 20-27

FOR THE ACQUISITION BY EMINENT DOMAIN OF TWO

UNDEVELOPED OPEN SPACE PARCELS LOCATED
SOUTHEAST OF AVENIDA PICO, ASSESSOR’S PARCEL
NUMBERS 688-011-01 AND 688-011-02
WHEREAS, on April 21, 2020, the City Council of the City of San Clemente adopted Resolution No. 20-27, attached to this Resolution as Exhibit A, declaring that “the acquisition of two undeveloped open space parcels located southeast of Avenida Pico, Assessor’s Parcel Numbers 688-011-01 and 688-011-02 (‘Property’), by eminent domain is necessary for use consistent with the property’s general plan and zoning designation, including open space preservation, habitat conservation and mitigation banking (‘Project’);” and
WHEREAS, subsequent to adoption of Resolution 20-27, on July 31, 2020 the City filed with the Orange County Superior Court a complaint in eminent domain titled “City of San Clemente v. Emergency Shelter Coalition, et al.” (case number 30-2020-01153535-CUEI-CXC) the purpose of which was to acquire the Property through the use of eminent domain for the Project; and
WHEREAS, in conjunction with the filing of the complaint in eminent domain, a Notice of Pendency of Action (Lis Pendens) was filed and recorded against the Property on August 17, 2020 with the Orange County Recorder’s Office; and
WHEREAS, the deposit of probable just compensation for the value of the Property was made with the California State Treasurer on August 27, 2020; and WHEREAS, due to changed circumstances, including, but not limited to, the source and availability of funding for the Project, the City Council desires to withdraw Resolution of Necessity 20-27; and
WHEREAS, the City Council desires to halt efforts to pursue the Project for which Resolution of Necessity 20-27 was adopted, making the eminent domain action filed in furtherance of the Project no longer necessary.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve, find and determine as follows:

Section 1. That the foregoing recitals are true and correct and are incorporated herein.
3 Resolution No. 23-59 Page 2
4884-3491-3897 v1
Section 2. That Resolution of Necessity 20-27, attached hereto as Exhibit A and incorporated herein by this reference, is hereby withdrawn because the Project is no longer feasible given the lack of funding for the Project, which therefore demonstrates that the public convenience, necessity, and the best interests of the residents of the City of San Clemente will be served by a withdrawal of the Resolution, dismissal of the complaint in eminent domain and abandonment of the Project at this time.

Section 3. That staff is authorized and directed to withdraw the Notice of Pendency of Action (Lis Pendens) and seek the release of the funds on deposit with the California State Treasurer.

Section 4. That staff is authorized and directed to take those actions that are necessary and proper in connection with dismissal of the eminent domain action and to accomplish the purpose and intent of this Resolution in a timely and expeditious fashion.

Section 5. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, 2023.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
4 Resolution No. 23-59 Page 3
4884-3491-3897 v1

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-59 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
5 ATTACHMENT 2
6 (
l
. RESOLUTION NO, 20-27 _ ,
A RESOLUTION OF THE CITY. COUNCIL OF THE CITY OF SAN
CLEME;NTE, CALIFORNIA, _DECLARING THAT THE ACQUISITION OF 1WO

UNDEVELOPED OPEN SPACE PARCELS LOCATED SOUTHEAST OF
AVENIDA PICO, ASSESSOR'S PARCEL NUMBERS 688-011M01 AND 688-- 011..02, BY EMINENT DOMAIN IS NECESSARY FOR USE CONSISTENT

WITH THE PROPERTY'S GENERAL PLAN AND ZONING DESIGNATION, INCLUDIN.G OPEN SPACE PRE_SERVATION, HABITAT CONSERVATION

AND MITIGATION BANKING
WHEREAS, the City of San Clemente (icity'') proposes to acquire fee ·and easement interests in certain real property located along Avenida Pico adjacent to the Rancho San Clemente Business Park, Assessor's Parcel Nos. 68S--.011--01 and saa .. 011--02 eProparty") by eminent domain for use consistent with the property's general plan and zoning designation, Including preservation of open space, habitat -oonservatlo.n and mitigation banking ("Project") pursuant to the authority granted to the City by Government Code sectfon 37350.5 and Code of Civil Procedure se.ctions 1240,040, 1240.110, and 1240..120; and ·
WHEREAS, pursuant to COde of. Civil Procedure section 1245.235, the City scheduled a public hearing for April 7, 2020 at 8:00 p.m, at the City Council Chambers located at 910 .Calle Negoclo, San Clemente, CA 92672, and gave to each person whose property is to be .acquired and whose name and address appears on the· last equalized· county aS8e$sment roll, notice and a reasonable opportunity to appear at said. hearing and be heard on the matters refe·rred to In Code of Clvll Procedure .section 1240.030i and WHEREAS, said hearing has been held by the City and each person whose property Is to be acquired by eminent domain wae afforded the opportunity to be heard on said ... . ·matters; and ... .. . . . ....... - . . . . .. .. . . . . -. ... .. . . . . . .... - ....... . . ... . . ... . . -- . .. . . .

WHEREAS, the City may not adopt a resolution of necessity pursuant to Code of Civil Procedure section.1240.040; and
WHEREAS, the City Is lead agency for the Project pursuant to Publlo Reeource$ Code~ section 21067: and
WHEREAS, . in accordance w~h the state Guidelines for Implementation of the California Environmental Quality Act (11CEQA") (15 Cal. Code Regs., §§ 16000 et seq.:
ustate CEQA Guldellnes1
~, the City has reviewed the Project to detem,ine Whether It is project subject to CEQA; and
WHERl:AS, for the reasons set forth below, and In accordance with Public Resources Code, section 21065 and state CEQA Guldelines, section 16378, the City detemilnes that the Project Is not an activity subject-to CEQA and no further environmental review of the Project is necessary; and
55452,01100\3212117:U
7 -------····--··--···-.... -----···
Resolution No. 20-27 Page2
WHEREAS, In the alternative, and tf the Project Is deemed to be an activity subject to CEQA by a court of competent jurisdiction, the City determines .that the Project Is exempt from CEQA pursuant to State CEQA Guidelines, section 15308 and for that reason also no further environmental review of the Project Is necessary.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Clemente as follows:

Section 1, · CEQA .compliance, Ac:cording to State CEQA Guidelines, section 15060, the City has reviewed the ProJect and based on all of the _infonnation In the record, as well es testlmony and documentation presented to ~he City Council before and at the public hearing on April 7, 2020, the City Councll hereby finds that the Project Is not an activity subject to CEQA. Speclfically, the City Council finds that the Project will not cause either a direct physical change in the environment or a reasonably foreseeable Indirect physical change in the environment. (Pub. Resources Code, § 21065; state CEQA Guidelines, § 15378.} The Project would result In a mere change in title to the Property . . The. City Intends to maintain the property In Its current state and subject to the existing General Pran and Zoning designations, which are for open space and conservation purposes. The Ctty has no ll')tentton of developing the Property or otherwise Improving the Property except as to maintain it In accordance with the standards. that otherwise apply to responsible maintena11ce of open space and conservation property. The City Intends to extend a conservation easement over the property, as the property is nearly completely surrounded by land that is under. and within an established conservation easement area in the City. As -such, there Is no posslbility that the project will lead to a change in the physical environment - either directly or indirectly - and this action is thus not subject to CEqA.

Furthennore, the City Councll hereby finds that the activity Is covered by the common sense exemption that CEQA applies only-to projects, which have the potential for causing a stgnlfiaint effect on the environment. (state CEQA Guidelines,§ 15061(b)(3).) There is no possibility that the City's acquisition of the Property may have a significant effect on the environment Toe Project results in a mere change ·in title and will assure that the Property Is maintained and preserved In accordance with the open space and conservation General Plan and Zoning designations that apply to the site. By acquiring the Property; the City can insure that the Property Is preserved and protected as an essential piece of the City's natural resources. For this- reason alone, the project is not subject to .CEQA.

In the altemative1 if the Project were an activity subject to CEQA (the City Council does not concede that it is by making this finding)i" the City Councll hereby finds that the proposed Project is categorically exempt from CEQA review pursuant to state CEQA Guidelines, section 16308. Specifically, the Project is an action by the City Council, the body responsible for m~intalnfng and preserving open space and oonsen1ation land within the City, to assure the maintenance, restoration, enhancement, or protection of the environment. This action involves procedures for the protection of the environment, namely that the property wlll be covered by a ronservation easement and the Project will assure that the City's existing open space protection$ In Measure V are honored. The Project does not Involve any construction and the City has no Intent of developing or otherwise using the Property for a purpose other then open space end conservation; For these reason~, the proposed Project is an activity by the City Council to protect the environment and it is exempt from CEQA review on this basis.

To the extent that the City Council relies on the Class 3 categorical exemption In SS4S1.01100\3282lt73.3
,·
\
8 {
I
Resolution No. 20-27 Page 3
State CEQA Guidellnes1 section 163081 the City Councll hereby further finds that - based on the entire record before it .... none of the exceptions to the categorical exemptions, contained in State CEQA Guidelines, sectl"on 16300.2, applies. Specifically, the City Council hereby finds that: (1) the proposed project Is not located In a particularly sensttive environment such that the exception In subdivision (a) of State CEQA Guidelines, section 16300,2 applies; (2) the cumulative Impact of .successive projects of the same type (an acquisition of title to this Property) in the same place (this site) over time Is .not significant because the change in title does not result in physical change to the environment either directly or Indirectly; (3) there is no posslblUty that the activity will have a significant effect on the environment due to unusual circumstances- because the·re are no unusual· circumstances surrounding t~is Project; (4) the Project wlll not result in damage to soe11ic resources but Instead would protect scenic resources and open space within the City; (5) the Property Is not on a list complied pursuant to Government Code, section 66962.5; and (6) the Project wlll not cause a substantial adverse change In the significance of an historical resource.
-Therefore, the proposed Project is not subject to further environmental review under CEQA. -
Section 2. Notice and !::le.aring Compliance, The City has provided notice of this· hearing as required by Coda. of Civil Procedure section 1245.235.

Section 3, Public Use. The public use for which the real property Is to be acquired for use consistent with the property's general plan and zoning designatton, including preservation of open space, habitat conservation and mitigation banking ("Project'). The City Is authorized to acq·u1re by eminent domain property necessary for such a purpose in accordance with Government Code section 37360.5 and Code of Civil Procedure sections 1240 . .0401 1240.110, and 1240.120.
_Section 4. Description of Property.

The subject property Is generally described as two undeveloped open space parcels totaling approximately 10 acres reportedly owned by EMERGENCY SHELTER COALITION, lo.ca1ed . .Qr:i tbe .$PU.tb~-~-Eii.t PPrdJ:3t Qf. Av~.nlda .Pl@1 .. 11djaceot. to_ ttie Rancho. San .. Clemente ..

Business Park, In the City of San Clemente, California, and ldentffied as a portion of Assessors Parcel Numbers 688"011,.01 and 688--011-02. Attached hereto as EXhibit 1 are the legal description and map of the real property interests required for the Project, which . describe the general location of the property to be acquired in fee and as easement Interests with sufficient detail for reasonable identification.

Section 5. Findings. The City hereby finds and detemllnes the following:
a. The publlc Interest and necessity require the proposed Project; and b. The proposed Project is planned or located in the·ntanner that will be the most compatible with the greatest public g_ood and least private injury: and c. The Project Is necessary for the proposed Project: and d. The offer required by Government Code section 7267.2 was made, Section 6. Condemnation for a Compatible Use. Some or all of the real property to be acquired Is subject to easements and rlghts~of-way appropriated to existing public uses, The legal descriptions of these easements and rights-of~way are on file with the City 5545Z.Oll00\3282ll73.3
9 Resolution No. 20-27 Page4
and describe the general location and extent of the easements and rights-of-way with sufficient detail for reasonable Identification. The proposed use is a compatible use and will not unreasonably interfere with or impair the continuance of the public use now existing or reasonably expected to exist In the future. The City Is authorized to acquire the property subject to such existing public uses pursuant to Code of Civil Procedure section 1240.51 O.

Section 7. Further Activities. Best Best & Krieger LLP ("BBK"), as City Attorney to the City, is hereby authorized to acquire the described real property in the name of and on behalf of the City by eminent domain. BBK is further authorized to institute and prosecute such legal proceedings as may be required. BBK may take such steps as may be authorized and required by law, and make such deposits as may be required, to permit the City to take possession of and use said real property at the earliest possible time. BBK is further authorized to correct any errors or to make or· agree to non-material changes in the legal description of the real property that is deemed necessary for the conduct of the condemnation action, or any other proceedings or transactions required to acquire the _ subject real property. ·
Section 8. Location of Documents. The administrative record for the Project is maintained at City Hall located at 910 Calle Negocio, San Clemente, CA 92673. The City Clerk is the custodian of records.

Section 9. Notice of Exemption. The City Council hereby authorizes and directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption for the proposed Rroject.

PASSED1 ADOPTED and signed this 21st day of April , 2020.

Mayor of the City of
San Clemente, California San Clemente, California
55452,01100\32821173.3
10 Resolution No. 20-27 Page 5

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, JOANNE BAADE, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 20-27 was adopted at a regular meeting of the City Council of the City of San Clemente held on the 21st day of April 2020 , by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this 21 S-1-- day of trpd \ , ?pw .

C Y CL RK of the City of
an Clemente, California
11 Resolution No. 20-27
55452,01100\32821173,3
EXHIBIT 1
[LEGAL DESCRIPTION]
Page6
\1
12 Resolution No. 20-27 Page7
EXHIBIT "1"
AlJ.., '!'HAT CERTAIN REAL PROPBRTY SITUATED lN THB CITY OF SAN CLEMENTE, COUNTY OF ORANGB, STATB OF CALIFORN.IA, DBSCR1BBD AS FOLLOWS:

LOT A OF TRACT NO. 12124, lN TIIB ClTY OF SAN CLEMENTE, COUNTY OF ORANGE, STATE O:F CALlPORNJA, A SHOWN ON A MAP RECORDED !N' B.QQK.532 ~ 1 TO 10 INCLUSIVE OF MISCELLANEOUS MAPS CERTIFICATES OF CORRECTION RECORDED JANUARY 31, 1985 AS INSTRUMENT NO, 35-35963 OF OFFICIAL RECORDS AND FEBRUARY "14, 1985 AS INSTRUMENT NQ, 85-53979 OF OFFICIAL @CORDS.

EXCEPT THBRBFROM ANY AND ALL OIL, OIL RIOlITS, MINERALS, MINERAL RIGHTS, NATURAL OAS RIGHTS AND O'JHER HYDROCARBON BY WHATSOEVER NAME KNOWN, GEO'l'HBRMAL HEAT AND ALL PRODUCTS PEJ.UVED FROM ANY OF THE FOREGOING, THAT MAY BE WfflIIN OR UNDER TllB PROPERTY, 'I'OOBTHim.

WITH THE PERPETUAL RIGHT OF DRILLING, MINING, B.XPLORING AND OPBRA.TINO 'IHERBFOR AND STORINO J'.N AND REMOVING 'IRE SAMB FROM PROPERTY, AS MORB PARTICULARLY SET FORTI-I AND PROVIDED lN THAT CERTAIN DOCUMENT RECORDED FEBRUARY 13, 1987 AS J,NSTRUMBNT NO. 8782426 OF OFF1CJAL RECORDS
.,.A...,ss..,.es...,so...,r's ... P...,ar .... ae .... 1 .... N...,um,...b=e...,.r:_............,6.,..8-R--0l=l~-o-1 and 688-011-02 .55452.01100\'!2821173,3
13 Resolution No. 20-27 Page 8
P9 i «1 ~Ir,·~~~ 1 MIIIJilt. ~ltt:114

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 6/20/2023 Agenda Item: 10E
Department: City Clerk
Prepared By Laura Campagnolo, City Clerk
-
Subject:

REVIEW OF AGENDA TEMPLATE AND POLICY AND PROCEDURE 1201-11 - CITY COUNCIL MEETING AND OPERATING PROCEDURES (PROPOSED UPDATE PURSUANT TO COUNCIL’S DIRECTION OF JUNE 6, 2023) WITH CONSIDERATION OF REMOVAL OF ORAL COMMUNICATIONS PART 2 AND EXPLANATION OF STAFF COMMUNICATIONS Summary:

At the regular City Council meeting of June 6, 2023, Council agendized review of Policy 1201-11 - City Council Meeting and Operating Procedures, specifically as it relates to removal of the Oral Communications Part 2 section of the agenda.

Oral Communications Part 2
Council revised the agenda template at its meeting of March 15, 2022 to remove Oral Communications part 2, and then subsequently added Oral Communications part 2 back into the agenda template at its meeting of August 16, 2022. Currently, the agenda template allows for Oral Communications Part 1 and Part 2, with members of the public only being allowed the opportunity to speak once under either Oral Communications Part 1 or Part 2.

Oral Communications Part 1 allows 30 minutes for speakers to give their presentations. If Oral Communications Part 1 takes longer than 30 minutes, the remainder of the speakers are given the opportunity to speak under Oral Communications Part 2.

Staff did an informal poll of south Orange County cities and noted that most cities do not have an Oral Communications Part 2 on their agenda. One neighboring City has Oral Communications Continued, which provides for speakers that were not able to give their comments during the first Oral Communications due to reaching the 30 minute time limit, the opportunity to speak at the end of the meeting. The Mayor in that City also has the discretion to allow for additional speakers.

Staff Communications
Staff Communications is on the agenda to allow Staff to provide updates to Council on items that 1) do not require action and/or 2) items that came to the attention of Staff after the agenda was published. One recent example of the need for this arose in connection with Casa Romantica. When an item like Staff Communications is not on the agenda, these types of items would typically be updated during the City Manager’s report at the end of the agenda.

CITY OF SAN CLEMENTE Page 1 of 2 Printed on 6/14/2023
powered by Legistar™ 1
Meeting Date: 6/20/2023 Agenda Item: 10E
Council Options:
· Receive and file the Administrative Report.
· Direct the City Clerk to remove Oral Communications Part 2 from the City Council meeting agenda template and update Policy and Procedure 1201-11. · Make other updates to Policy and Procedure 1201-11.
· Continue the item and direct staff to provide additional information. · Take no action.

Fiscal Impact:

None.

Environmental Review/Analysis:

This is not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation
If Council determines to remove Oral Communications Part 2 from the City Council Meeting agenda template, direct the City Clerk to update the City Council meeting agenda template and Policy and Procedure 1201-11 (City Council Meeting and Operating Procedures).

Attachment:

1. Proposed Revised Policy and Procedure 1201-11 with removal of the reference to Oral Communications Part 2.

2. Proposed agenda template with the removal of Oral Communications Part 2.

Notification:

None.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 6/14/2023
powered by Legistar™ 2

POLICY AND PROCEDURE
Subject: City Council Meeting
and Operating
Procedures
(Parliamentary Procedures,
Due Process, Mayor/Mayor
Pro Tempore, Council
Correspondence, Meetings,
Agendas, and Minutes)
Index: City Council
Number: 1201-11
Effective
Date:

February 7, 2023 Prepared City Clerk
By:

Supersedes: Policy and Procedures 1201-
1 (Mayor and Mayor Pro
Tempore); 1201-2 (Meetings
of the City Council); 1201-3
(Order of Business and
Preparation of Minutes);
1201-4 (Council
Approved
By:

City Council
Correspondence and
Agenda); 1201-5 (Rules of
Debate, Decorum, Voting
Requirements & Procedures);
1202-2 Management/
Streamlining of City Council
Meetings); and 1201-11 (City
Council Meeting and
Operating Procedures)

1.0 PURPOSE:

To establish policies for City Council meetings and operations, including parliamentary procedures, due process, election/roles of Mayor and Mayor Pro Tern, agendas, and the preparation of minutes.

2.0 ORGANIZAT/ONS AFFECTED:

City Council
City Commissions and Committees*
*Note: Except as otherwise noted throughout this Policy, this Policy shall a/so apply to the City's Commissions and Committees. In applying this Policy to City Commissions and Committees, the term "Council" shall be interpreted to mean the name of the City Commission or Committee, the term "Mayor" shall be interpreted to mean "Chairperson", the term "Mayor Pro Tempore shall be interpreted to mean "Vice Chair': the term "Manager" shall be interpreted to mean "Director", and the Attachment 1
3

term "City Clerk" shall be interpreted to mean the staff member responsible for providing support to the Commission/Committee.

3.0 REFERENCES:

The Ralph M. Brown Act, GC Section 54950, et seq.

4.0 POLICY:

4.1 Parliamentary Procedures and Due Process

4.1.1 The proceedings of the City Council shall be guided under the latest revised edition of "Rosenberg's Rules of Order," on all matters pertaining to parliamentary procedure, but no ordinance, resolution, proceeding or other action of the City Council shall be invalidated or the legality thereof otherwise affected by the failure or omission to observe or follow such rules. In the event of a discrepancy between Rosenberg's Rules of Order and this Policy and Procedure, this Policy and Procedure shall prevail.

4.1.2 The Mayor, with assistance from the City Attorney, is designated as the parliamentarian for City Council meetings. The City Clerk shall assist in the City Attorney's absence. Any member of the City Council or the public (pursuant to process below) may raise a point of order and/or seek the City Attorney's input on parliamentary issues, which shall then be considered by the Mayor. The City Council may override any parliamentary decision of the Mayor with a majority vote. The Mayor may interpret and apply but not amend these policies.

Points of order may be raised at any time by City Councilmembers.

Points of order may be raised by members of the public in connection with their opportunity to speak on agenda items pursuant to Section

4.4.6. The Mayor (or chair) shall rule on the point of order and/or request clarification of the law from the City Attorney and then decide and rule. If the point of order is denied by the Mayor or chair, the person making the point of order may seek a vote of the entire Council or body, which decision shall be final.

Members of the public wishing to raise points of order after their opportunity to speak may submit those points of order in writing prior to the adjournment of the meeting. Items so submitted shall be presented for consideration by the City Council in connection with its approval of the minutes of that meeting pursuant to Section

4.6 hereof. At that time the Mayor and City Council will review and decide the point of order raised and determine whether it warrants scheduling and noticing of that item for reconsideration. 4

4.1.3 It shall be understood that a member of the City Council or prospective member of the City Council may, in the course of seeking elective office, be asked to state positions on general issues that may eventually come before the Council at a later date. This policy shall in no way impair that Councilmember's right to consider the issue and vote as he/she determines is appropriate.

4.1.4 Ex parte communications are communications received outside of Council meetings or hearings. When the Council acts in a legislative role (for example, to adopt general plan or zoning amendments or to adopt ordinances), Councilmembers are permitted to draw upon nearly all observations and considerations they receive inside and outside the Council meeting. On the other hand, when acting in a quasi-adjudicatory role (hearing permits, revocations, and similar non-legislative decisions), the Council, as fact-finder, should limit its consideration of facts to those presented at the hearing, where all sides have the opportunity to hear and rebut testimony given by all participants. To this end, Councilmembers should avoid receiving or gathering information that might otherwise influence its consideration of the written record and any other testimony it hears through the formal hearing process, or at least disclose their receipt of that information.

4.2 Election of Mayor and Mayor Pro Tempore and Roles of Those Offices

4.2.1 At the first Regular City Council meeting in December of each year, the Council shall elect from its members a Mayor and Mayor Pro Tempore. The new Mayor and Mayor Pro Tempore shall assume office immediately upon election. (Note: Commissions and Committees shall elect from its members a Chairperson and Vice Chair at its first regular meeting occurring after Council completes its annual appointment process for Commission and Committee members and those members assume office.) The process for electing Mayor and Mayor Pro Tempore and for electing
Commission and Committee Chairs and Vice-Chairs shall be as follows:

4.2.1.1 The nomination/election of the Mayor or Chair is conducted by the City Clerk or staff. Once the new Mayor or Chair is elected, that member of the Council or body immediately presides and conducts the vote on Mayor Pro Tempore orVice-Chair.

4.2.1.2 The method of nomination in this respect is an "open nomination" solely by and from within the membership of the presently-seated City Council or City body. Nomination cannot be accepted from members of the public.
5

4.2.1.3 No "second" is required for nomination, although sometimes one or more members will "second" a nomination to indicate endorsement.

4.2.1.4 In no event may any one member nominate more persons than there are offices to fill in the respective selection.

4.2.1.5 When it appears that no one else wishes to make a nomination, the chair of the meeting asks one (1) final time if there are additional nominations. If there is a no response, the chatr then declares..."the nomination for Mayor or Mayor Pro Tempore, Chair or Vice-Chair as applicable is closed. "

4.2.1.6 It is unnecessary to have a motion to officially close the nomination; yet, if such a motion is made, that motion then requires an affirmative 213rd vote of the members present [4 or 5]. After nominations are closed, a majority vote is required to re-open it.

4.2.1.7 Nominees are voted on in the order in which they are nominated.

As soon as one of the nominees receives a majority vote of those members present in the voting, the Mayor or Chair then declares that person elected to that respective office, and no vote is taken on the remaining nominee(s).

4.2.1.8 Rounds of voting shall continue in succession until one nominee is elected.

4.2.2 The Mayor and Mayor Pro Tempore shall serve a one-year term at the pleasure of the Council majority.

4.2.3 The Mayor shall act as the primary spokesperson and official representative of the City Council, unless such responsibility is delegated by the Mayor, or otherwise assigned by a majority of the City Council.

4.2.4 The Mayor shall preside at all regular, adjourned regular, special and emergency meetings of the City Council, including joint meetings with commissions and committees and closed sessions.

4.2.5 The Mayor shall execute all official City documents, warrants and correspondence approved by the City Council.

4.2.6 The Mayor is authorized to issue proclamations, commendations and certificates of recognition, which may be presented at Council meetings under Special Presentations. The total time allotted to Special Presentations should, if possible, be limited to 15 minutes per meeting. (This section does not apply to Commissions or Committees.)
6

4.2.7 Nothing in this section is intended to suggest that the office of Mayor possesses formal powers or authority in excess of other members of the City Council; rather, the person serving as Mayor is to be recognized as the chairperson of the Council.

4.2.8 The Mayor Pro Tempore shall serve and perform the functions of the Mayor in the absence of the Mayor. If both the Mayor and Mayor Pro Tempore are absent from a City Council meeting, the Council members present shall select a Councilmember from those members present to perform the functions of Mayor at that particular meeting.

4.3 City Council Correspondence

4.3.1 The City Manager, or his/her designee, is authorized to open and examine all mail or other written communications addressed to the City Council as a body, but shall not open correspondence addressed to an individual Councilmember without their express authorization.

4.3.2 The City Manager may take action, or direct that action be taken, on issues or requests that do not require Council action. The City Manager shall inform Council when actions are taken on matters of significance or that are likely to be of interest to the City Council.

4.4 City Council Meetings

4.4.1 The date, time and location of Regular Meetings of the City Council shall be established by resolution. At 11:00 p.m. at each meeting, the City Council, by majority vote, will determine whether to continue the meeting or adjourn.

4.4.2 At all meetings of the City Council, a majority of the Council members shall constitute a quorum for the transaction of business. In the event less than a quorum of the City Council is present, the City Clerk shall adjourn the meeting (which may include adjourning to an Adjourned Regular Meeting), post a Notice of Adjournment, and prepare minutes that reflect that the meeting was adjourned due to lack of a quorum.

4.4.3 The City Clerk, or Mayor, shall announce an agenda item before discussion on that item commences.

4.4.4 Each person desiring to address the Council is requested to submit to the City Clerk a speaker form. After being called upon by the Mayor, the speaker may proceed to the podium. The speaker may 7

state for the record his/her name and city of residence, but shall not be required to do so.

Members of the public may speak for three (3) minutes and project applicants and appellants (including members of an applicant's or appellant's project presentation team, when applicable) may speak for a combined total of ten (10) minutes on agenda items. At Council's request where Council is acting in a fact-finding or hearing capacity, the Mayor may grant additional time (unless overruled by a majority of Councilmembers present) to speakers on agenda items.

Speakers will be called to the podium once Staff concludes its presentation of an item and before Council begins its deliberations.

Speaker cards will not be accepted once deliberations have commenced.

Speakers on non-agenda items may speak for three (3) minutes during the oral communications - public forum portion of the meeting.

The time that a speaker devotes to responding to Council inquiries shall not be deducted from their allotted speaker time.

4.4.5 Members of the public may not assign their speaker time to another person.

4.4.6 The purpose of addressing the City Council is to communicate formally with the City Council regarding matters that relate to City Council business or citizen concerns within the subject matter jurisdiction of the City Council. Persons addressing the City Council on an agenda item shall confine their remarks to the matter under consideration by the City Council. Speakers may be asked to clarify how their comments relate to the matter at hand. Speakers may address the entire Council or individual Councilmembers, and, if allowed by the Mayor or chair, City staff.

4.4.7 Once recognized, members of the public shall not be interrupted when speaking unless to be called to order by the Mayor to: (i) curtail extraordinary repetition, (ii) curtail speech that is irrelevant to the City Council's subject matter jurisdiction, (iii) explain how his or her speech relates to the City's subject matter jurisdiction, or (iv) address some other point of order. If a speaker is interrupted to be called to order, the speaker shall cease speaking until the question of order is determined, and if in order, he or she shall be permitted to proceed, with additional time allotted for the time taken to determine the question of order.
8

4.4.8 In order to avoid repetitious presentations, whenever any group of persons wishes to address the Council with the same message, it shall be proper for the Mayor to request that a spokesperson be chosen by the group to represent the group's position. Speakers shall not, however, be required to abide by such a request.

4.4.9 To expedite Council meetings, Councilmembers are encouraged to contact Staff prior to Council meetings to obtain answers to questions and to obtain clarifications as needed.

4.4.10 Staff shall compose Administrative Reports in a clear and concise manner. Staff shall strive to write reports in a manner that can be easily understood by persons that do not have training in the report's subject matter.

4.4.11 Staff presentations at Council meetings are to be condensed to the briefest extent possible, while still providing a basic overview of the issue under consideration. Staff is encouraged to refrain from reiterating issues previously addressed in the Administrative Report.

However, Staff engaged in such communications shall not use these opportunities to communicate with the members of the City Council the comments or position of any other member of the City Council on City Council business.

4.4.12 Members of the public shall not engage in conduct that disrupts, disturbs, or otherwise impedes the orderly conduct of the City Council meeting. Any person who so disrupts the meeting is subject to removal from the meeting.

Prior to removing anyone from a City meeting, the Mayor (or other designated chair) shall: (i) notify the person that he/she is in violation of this Section 4.4.12, (ii) specify the specific behavior giving rise to that conclusion; (iii) explain all grounds for the belief that the person's conduct is in violation of law/policy and why such conduct subjects the person to expulsion; and (iv) notify the person that if the conduct continues he/she will be removed. The person receiving such notification shall be asked if he/she understands the conclusion but shall not be required to accept it.

Members of the public receiving notice of disruption pursuant to this section shall have the right, prior to being removed from the meeting, to ask the Mayor to consult with the City Attorney on the grounds for expulsion, and to submit a point of order on the grounds for expulsion. The City Council may override this decision pursuant to Section 4.1.2. The City Attorney shall have a duty to inform the Mayor (or other designated chair) and the public if the City Attorney believes that the Mayor's action is in violation of applicable law. 9

4.4.13 Motions must be seconded in order to proceed to a vote.

4.5 City Council Agendas

4.5.1 With the exception of items added to a City Council agenda pursuant to Section 4.5.4 of this Policy, the City Manager and Mayor in conference shall be responsible for determining items to appear on City Council meeting agendas.

4.5.2 The standard template for City Council agendas shall be established by Council by majority vote. The City Manager shall have the authority to reorganize the template on a case-by-case basis if he/she believes that a variation in the normal order of business is appropriate.

4.5.3 Councilmembers may agendize items to enable them to "report out" on matters relating to their own activities, including activities pertinent to their Council-appointed positions on regional commissions, committees and boards, provided the report is informational only. If Council action is being sought, the process defined in Section 4.5.4 of this Policy shall be followed.

4.5.4 Two members of the City Council may propose at a Council meeting that an item be agendized for future Council discussion, consideration, and/or action. Subject to notice and hearing requirements, the item shall be agendized for a future meeting and noticed as required by law. Items agendized pursuant to this section shall appear on an agenda under the New Business portion of the agenda and the names of the Councilmembers who agendized the item shall be included with the item description. Staff Reports will only be prepared if a minimum of three members of the City Council vote affirmatively at a Council meeting to direct Staff to prepare a report.

4.5.5 Notwithstanding Sections 4.5.1 and 4.5.4 of this Policy, the process to review, appeal, or otherwise "call up" decisions by the Planning Commission or other subordinate City bodies shall be subject to the requirements of the San Clemente Municipal Code.

4.5.6 Notwithstanding Section 4.5.4, a proposal to reconsider any action taken by the City Council may be raised only at the same meeting or the next regularly scheduled meeting of the City Council after the action is taken and may be raised only by one of the
Councilmembers who voted with the prevailing side. Additionally, the motion to reconsider may only be made by one of the
Councilmembers who voted with the prevailing side.
10

4.5.7 The City Clerk shall be responsible for the preparation of Council meeting agendas and shall cause copies to be posted on the City Hall bulletin board(s) and City website. Regular and Adjourned Regular Meeting agendas shall be posted within the posting time requirements as set forth in State law. In the case of special meetings, agendas shall be posted as soon as practical, but in no event less than the posting time requirements as set forth in State law.

4.5.8 Consent Calendar items shall be comprised of items that are expected to be noncontroversial. Unless an item is removed from the Consent Calendar by a member of the Council, staff, or the public for separate discussion and action, the Consent Calendar may be acted upon by one motion.

4.5.9 The City Council may waive the reading in full of all Resolutions and Ordinances. The reading of Resolution titles shall be optional. The reading of Ordinance titles shall not be waived.

4.5.10 Members of the public may address Council concerning matters within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, during the Oral Communications portion of the agenda. Speakers may address Council once during either Oral Communications Part 1 or Part 2. Speakers shall be allotted 3 minutes in which to give his or her presentation.

4.6 City Council Minutes

4.6.1 The City Clerk shall have exclusive responsibility for the preparation of the minutes.

4.6.2 The minutes of City Council meetings shall be submitted to Council for approval/modification at a City Council meeting. Any direction for modifications to the City Council minutes shall only be made upon a majority vote of the City Council.

4.6.3 Minutes shall be prepared in brief concise form, in what are commonly referred to as "action minutes". Action minutes memorialize what was done at a meeting, as opposed to what was said at a meeting. An exception to this guideline is that a brief summarization of comments provided to Council by the public are to be included in the minutes. Additionally, the identity of Councilmembers who make motions, second motions, and cast votes on motions are to be included in the minutes.

4.6.4 Unless the reading of the minutes of a City Council meeting is ordered by a majority of the Council, such minutes may be 11

approved without reading if the City Clerk has previously furnished each Councilmember with a copy thereof.

4.6.5 The approved minutes shall be executed by the Mayor and City Clerk upon approval by the City Council and shall constitute the official record of the City Council meeting.

4.6.6 The City Clerk shall enter the original executed minutes into the official records of the City as a permanent document.

4.7 Closed Sessions

4.7.1 The City Council may hold closed sessions during duly-noticed Council meetings on issues authorized by State law.

4.7.2 A City Commission or Committee may hold closed sessions during duly-noticed meetings of its body on issues authorized by State law, the City Council, and the City Attorney.

4.7.3 No member of the City Council, employee of the City, or any person present during a closed session shall disclose to any other person the content or substance of discussion or action which took place during the session, unless a majority vote of the Council authorizes such disclosure.

4.7.4 Closed sessions shall be limited to members of the City Council, City Manager, City Attorney and/or City legal counsel, as well as staff members and experts designated by the City Manager or City Attorney to attend portions of Closed Sessions relating to specific issues, as permitted by law.

4.7.5 To the extent possible, the public will be notified prior to the time that the City Council recesses to closed session as to whether or not a public announcement of action is anticipated following the Closed Session.

4.7.6 Where potential plaintiffs and defendants have manifested or communicated their awareness of facts and circumstances and a legal theory connecting those facts and circumstances to potential litigation involving the City, those facts and circumstances, together with (i) the identity of potential parties or (ii) related documentation, shall be disclosed prior to a closed session to discuss anticipated litigation, in accordance with GC 54956.9.

4.8 Nomination and Vote on City Council Appointments to City Commissions and Committees
12

4.8.1 Council votes on appointments to City Commission and Committees shall be according to the procedure for election of Mayor and Mayor Pro Tempore set forth in Section 4.2 above.
13

CITY OF SAN CLEMENTE
DATE City Council
Regular Meeting Agenda
5:00 p.m. - Closed Session
6:00 p.m. - Business Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Council Chambers
Mayor Duncan
Mayor Pro Tem Knoblock
Councilmember Cabral
Councilmember Enmeier
Councilmember Loeffler
Information concerning City Council Meeting protocols and procedures is contained at the end of this agenda.

RULES FOR ADDRESSING COUNCIL
• Members of the public may address the City Council on matters within the jurisdiction of the City of San Clemente.
• If you wish to address Council, please complete one of the blue speaker cards located at the entrance to the Council Chambers and turn it in to the City Clerk or Deputy City Clerk. • Persons wishing to address Council concerning an agendized item will be invited to address Council during the time that Council is considering that particular agenda item . Persons wishing to address Council concerning a non-agendized issue will be invited to address Council during the “Oral Communications” portion of the meeting. • When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation. Please limit your presentation to three minutes.

MISSION STATEMENT
The City of San Clemente, in partnership with the community we serve, will foster a tradition dedicated to:

Maintaining a safe, healthy atmosphere in which to live, work and play; Guiding development to ensure responsible growth while preserving and enhancing our village character, unique environment and natural amenities; Providing for the City’s long-term stability through promotion of economic vitality and diversity…
Resulting in a balanced community committed to protecting what is valued today while meeting tomorrow’s needs.

CALIFORNIA ENVIRONMENTAL QUALITY ACT
The California Environmental Quality Act (“CEQA”) is the state law that requires the City to evaluate and document the potential environmental consequences of discretionary decision. (See, California Public Resources Code Sections 21000-21189.3; and the “CEQA Guidelines” at California Code of Regulations Title 14, Division 6, Chapter 3, Sections 15000-15387). For each item that requires a CEQA determination by the City Council, there is a reference to that determination on this agenda, and more information regarding the CEQA analysis is included in the documents that accompany this agenda. To the extent that City staff determines that particular items are not subject to CEQA, there will be no indication of a CEQA action on this agenda.

Attachment 2
14 -
City Council Regular Meeting Agenda

CLOSED SESSION (5:00 P.M.)
BUSINESS MEETING (6:00 P.M.)

CALL TO ORDER
INVOCATION – PLEDGE OF ALLEGIANCE

ROLL CALL

1. Special Presentations

2. Oral Communications
Members of the audience who wish to address Council on matters that are within the jurisdiction of the City of San Clemente, but not separately listed on the agenda, may do so during the Oral Communications portion of the meeting.. A total time limitation of 30 minutes is allocated for Oral Communications, with each speaker being allotted 3 minutes in which to give his or her presentation. Speaker order is determined by the order in which speaker cards are provided to the City Clerk or Deputy City Clerk at the meeting.

Speakers that cannot be accommodated during Oral Communications will be invited to address Council during Oral Communications (Continued), which if it occurs, will be taken up after item Item No. 10. When invited by the Mayor, please step to the podium, and if you wish, state your name and the City in which you reside, and make your presentation.

Subject to very limited exceptions, Council is not permitted to discuss or take action on items that do not appear on the agenda.

3. Motion waiving reading in full of all Resolutions and Ordinances

4. Consideration of agendizing items requiring immediate action Any items agendized will be considered under New Business, unless otherwise determined by a majority vote of the City Council.

5. Closed Session Report - City Attorney

6. Staff Communications

7. Consent Calendar
All items listed on the Consent Calendar are considered to be routine and will be enacted by one motion without discussion unless Council, Staff, or the public requests removal of an item for separate discussion and action.

A. City Council Minutes
Staff Recommendation:

B. Commission/Committee Minutes
Staff Recommendation:

Receive and file the following:
15 City Council Regular Meeting Agenda

C. Warrant Register
Payroll Register

8. Public Hearings
The Public Hearing process includes a staff presentation, a presentation by the applicant not to exceed ten (10) minutes, and public testimony (not to exceed three minutes per speaker). Following closure of the Public Hearing, the City Council will respond to questions raised during the hearing, discuss the issues, and act upon the matter by motion.

9. Unfinished Business

10. New Business

11. Future Agenda Items

12. Reports
A. Commissions and Committees
B. Council Subcommittee Updates
C. Council Members
D. City Attorney
E. City Manager

13. Adjournment
The next Regular Council Meeting is scheduled to take place on [DATE]. Closed Session will begin at 5:00 p.m. and the Regular Business Meeting will begin at 6:00 p.m. The meeting will take place in the Council Chambers, located at 910 Calle Negocio, 2nd Floor, San Clemente.

Items to be Considered at a Future Meeting
Tentative Meeting Date: Agenda Item
16 City Council Regular Meeting Agenda

CITY COUNCIL MEETING PROCEDURES

PRESENTATION OF WRITTEN MATERIALS TO COUNCIL
In order to ensure that Councilmembers have adequate time to consider written materials concerning agenda items, it is strongly recommended that such materials be submitted to the City Clerk by noon the date preceding the Council meeting.

MEETINGS RECORDED AND TELEVISED
City Council meetings are broadcast live and are replayed periodically on Cox Communications Local Access Channel 854. Meetings are also available for live-stream or post meeting viewing from the City’s website. Meetings are also recorded via audio CD and/or DVD and retained as a City record in accordance with the City’s records retention schedule.

USE OF ELECTRONIC VISUAL AIDS BY PUBLIC AT MEETINGS
To allow staff adequate time to confirm software compatibility, individuals wishing to utilize electronic visual aids to supplement their oral presentations at the meeting, must submit the electronic files to the City Clerk by no later than 12:00 p.m. on the day of the meeting. Only compatible electronic formats will be permitted to be used on City audio/visual computer equipment. Staff makes no guarantee that such material will be compatible, but will use its best efforts to accommodate the request.

LENGTH OF MEETINGS
At 11:00 p.m., the City Council will determine which of the remaining agenda items can be considered and acted upon at this meeting and will continue all other agenda items to a future meeting.

AMERICANS WITH DISABILITIES ACT
Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the City Clerk at (949) 361-8200. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting.

COMMUNICATION DEVICES
To minimize meeting distractions and sound system interference, please be sure all personal communication devices are turned off or on silent mode.

MEETING SCHEDULE
Regular Council Meetings are held on the first and third Tuesdays of each month in the Council Chambers, located at 910 Calle Negocio, 2nd floor, San Clemente. Closed Session are considered at 5:00 p.m. and the Business Meeting begins at 6:00 p.m. Additional meetings of the City Council may be called as needed.

AGENDAS, ADMINISTRATIVE REPORTS AND SUPPLEMENTAL WRITTEN MATERIALS Agendas and Administrative Reports are available for review and/or copying at the City Clerk’s Department as soon as agendas are posted, by accessing the City’s website at www.san-clemente.org. An “Inspection Copy” of agenda materials is also located at the entrance to the Council Chambers during meetings for public review. All written material distributed to a majority of the Council after the original agenda packet was distributed is available for public inspection in the City Clerk’s Department, located at 910 Calle Negocio, San Clemente, during normal business hours.

The City Clerk’s Department offers an agenda packet subscription service free of charge. If you wish to receive email copies of City Council agendas, which include hyperlinks to staff reports and other back-up material, register at http://san-clemente.org/enotification.
17 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 6/20/2023 Agenda Item: 10F
Department: City Manager
Prepared By Andy Hall, City Manager
-
Subject:

CONSIDERATION OF LETTER OF SUPPORT - THE HELPER ACT (HOMES FOR EVERY LOCAL PROTECTOR, EDUCATOR AND RESPONDER) - BILL H.R. 3170 AND S. 1514 Summary:

The HELPER Act is a bipartisan federal bill that, if passed, would support police and corrections officers, firefighters, EMTs and paramedics, and preK-12 teachers by providing a VA-style home loan program. A HELPER loan would provide 100% financing and eliminate monthly mortgage insurance payments for a first-time home purchase. In addition to making housing more affordable for these public servants, it would serve as an incentive that would assist in recruiting and retaining these critical workers.

Although the HELPER Act did not pass last Congress, it has been reintroduced in both the House (H.R. 3170) and Senate (S. 1514) with bipartisan support.

Council Options:
· Authorize the Mayor to execute the letter of support for the HELPER Act. · Request that Staff return to Council with additional information. · Take no action.

Fiscal Impact:

None.

Environmental Review/Analysis:

This item is not a project under CEQA.

Recommended Actions:

Staff Recommendation
Approve, and authorize the Mayor to execute a letter in support of the HELPER Act and direct Staff to send the letter.

Attachment:

1. Letter Supporting the HELPER Act

2. H.R. 3170 Bill Text

3. S. 1514 Bill Text
CITY OF SAN CLEMENTE Page 1 of 2 Printed on 6/15/2023
powered by Legistar™ 1
Meeting Date: 6/20/2023 Agenda Item: 10F
Notification:

Interested parties as outlined in the letter of support.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 6/15/2023
powered by Legistar™ 2
City Hall ● 910 Calle Negocio, San Clemente CA 92673 ● (949) 361-8200 ● www.san-clemente.org

OFFICE OF THE MAYOR

AND CITY COUNCIL
Chris Duncan
Mayor
Steve Knoblock
Mayor Pro Tem
Victor Cabral
Mark Enmeier
Rick Loeffler

CITY MANAGER
Andy Hall
910 Calle Negocio
San Clemente, CA 92673
Phone: (949) 361-8200
“The Spanish Village
by the Sea”
June 20, 2023
The Honorable Kevin McCarthy The Honorable Chuck Schumer Speaker of the House Majority Leader
United States House of Representatives United States Senate Washington, D.C. 20515 Washington, D.C. 20510
The Honorable Hakeem Jeffries The Honorable Mitch McConnell Democratic Leader Republican Leader
United States House of Representatives United States Senate Washington, D.C. 20515 Washington, D.C. 20510
Dear Speaker McCarthy, Majority Leader Schumer, Leader Jeffries, and Leader McConnell:

On behalf of the City of San Clemente, I am honored to write in strong support of S.1514 and H.R.3170, the Homes for Every Local Protector, Educator, and Responder (HELPER) Act, introduced by U.S. Senators Marco Rubio (R-FL), John Ossoff (D-GA), Sherrod Brown (D-OH), Raphael Warnock (D-GA), Robert Menendez (D-NJ), Catherine Cortez Masto (D-NV), and Richard Blumenthal (D-CT) and U.S. Representatives John Rutherford (R-FL) and Bonnie Watson Coleman (DNJ).

The HELPER Act would create a home loan program within the Federal Housing Administration to help our law enforcement officers, firefighters, EMTs, paramedics, and preK-12 teachers (“first responders”) by making homeownership more affordable. Too often, our civil servants struggle to afford their first home. Because of his, we are writing in support of the HELPER Act, which would help our civil servants access the housing they need to serve their communities.

First responders dedicate their lives to protecting and serving their fellow Americans. The COVID-19 pandemic has only made clearer the ongoing challenges that these brave first responders face. It is time we honor them for their service. To that end, the HELPER Act program will function similarly to the home loan program managed by the Department of Veterans Affairs. Managed by the Federal Housing Administration, it will allow law enforcement officers, fire fighters, EMTs, paramedics, and preK-12 teachers to obtain a low-interest, fully insured home loan with no down payment and no monthly mortgage insurance costs for a first-time home purchase.

Our nation’s first responders have demonstrated their unwavering commitment to their communities. Even amidst a deadly pandemic, these heroes have served without hesitation. We believe they have earned access to affordable housing so that they can provide for their families and continue to serve their communities. We hope you will join the City of San Clemente in support of the HELPER Act, and we CELEBRATING 90 YEARS OF INCORPORATION
Attachment 1
3 an
---Clemente

_______________________________
Kathleen Ward
Mayor, City of San Clemente
look forward to working with you on this important matter.

Sincerely,
_______________________
Chris Duncan
Mayor
City of San Clemente
4 Attachment 2
5 AUTHENTICATED~ US. COVERNM ENT

INFORMATION
GPO
118TH CONGRESS H R 3170 1ST SESSION
• •
To amend the National Housing Act to establish a mortgage insurance program for first responders, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES
MAY 10, 2023
Mr. RUTHERFORD (for himself and Mrs. WATSON COLEMAN) introduced the following bill; which was referred to the Committee on Financial Services A BILL
I
To amend the National Housing Act to establish a mortgage msurance program for first responders, and for other
purposes.
1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Homes for Every Local
5 Protector, Educator, and Responder Act of 2023" or the 6 "HELPER Act of 2023".
7 SEC. 2. FHA MORTGAGE INSURANCE PROGRAM FOR MORT8 GAGES FOR FIRST RESPONDERS. 9 Section 203 of the National Housing Act (12 U.S.C.
10 1709) is amended by adding at the end the following:
6 2
1 "(z) FHA MORTGAGE INSURANCE PROGRAM FOR
2 MORTGAGES FOR FIRST RESPONDERS.-
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
"(l) DEFINITIONS.-In this subsection:
"(A) FIRST RESPONDER-The term 'first
responder' means an individual who is, as attested by the individual- •HR 8170 lli
" ( i) (I) employed full-time by a law enforcement agency of the Federal Government, a State, a Tribal government, or a unit of general local government; and
"(II) in carrying out such full-time
employment, sworn to uphold, and make
arrests for violations of, Federal, State,
county, township, municipal, or Tribal
laws, or authorized by law to supervise
sentenced criminal offenders or individuals
with pending criminal charges;
"(ii) employed full-time as a firefighter, paramedic, or emergency medical technician by a fire department or emergency medical services responder unit of the Federal Government, a State, a Tribal
government, or a unit of general local government; or
7 3
1 "(iii) employed as a full-time teacher
2 by a State-accredited public school or pri3 vate school that provides direct services to 4 students m grades pre-kindergarten
5 through 12.
6 "(B) FIRST-TIME H0MEBUYER.-The term
7 'first-time homebuyer' has the meaning given
8 the term in section 104 of the Cranston-Gon9 zalez National Affordable Housing Act ( 42 10 u.s.c. 12704).
11 "(C) STATE.-The term 'State' has the
12 meaning given the term in section 201.
13 "(D) TRIBAL G0VERNMENT.-The term
14 'Tribal government' means the recognized gov15 erning body of any Indian or Alaska Native 16 tribe, band, nation, pueblo, village, community,
17 component band, or component reservation, in18 dividually identified (including parenthetically) 19 in the list published most recently pursuant to
20 section 104 of the Federally Recognized Indian
21 Tribe List Act of 1994 (25 U.S.C. 5131).
22 "(2) AUTH0RITY.-The Secretary may, upon
23 application by a mortgagee, insure any mortgage eli24 gible for insurance under this subsection to an eligi25 ble mortgagor and, upon such terms and conditions •HR 3170 m
8 4
1 as the Secretary may prescribe, make commitments
2 for the insurance of such mortgages prior to the
3 date of their execution or disbursement.
4 "(3) MORTGAGE TERMS; MORTGAGE INSURANCE
5 PREMIUM.-
6 "(A) TERMS.-
7 "(i) IN GENERAL.-A mortgage m8 sured under this subsection shall9 "(I) be made to an eligible mort10 gagor; 11 "(II) comply with the reqmre12 ments established under paragraphs 13 (1) through (7) of subsection (b); and
14 "(III) be used only to15 "(aa) purchase or repair a 16 I -family residence, including a 1-
17 family dwelling unit in a condo18 mini um project, to serve as a 19 principal residence of the mort20 gagor, as attested by the mort21 gagor; or 22 "(bb) purchase a principal
23 residence of the mortgagor, as at24 tested by the mortgagor, which 25 IS-
•HR 3170 m
9 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
•HR 3170 Ill
5 '' (AA) a manufactured
home to be permanently affixed to a lot that is owned
by the mortgagor and titled
as real property; or
"(BB) a manufactured
home and a lot to which the
home will be permanently
affixed that is titled as real
property.
"(ii) No DOWN PAYMENT.-Notwithstanding any provision to the contrary in the matter following subsection (b)(2)(B)
with respect to first-time homebuyers-
'' (I) the Secretary may insure
any mortgage that involves an original
principal obligation (including allowable charges and fees and the premium pursuant to subparagraph (B) of this paragraph) in an amount not
to exceed 100 percent of the appraised
value of the property involved; and
"(II) the mortgagor of a mortgage described in subclause (I) shall not be required to pay any amount, in
10 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 •HR 3170 m
6 cash or its equivalent, on account of
the property.
"(B) MORTGAGE INSURANCE PREMIUM.-
" (i) UP-FRONT PREMIUM.-The Secretary shall establish and collect an insurance premium in connection with mortgages insured under this subsection that is a percentage of the original insured principal obligation of the mortgage amount, which shall be collected at the time and in
the manner provided under subsection
(c)(2)(A), except that the premiums collected under this subparagraph- " (I) may be in an amount that
exceeds 3 percent of the amount of
the original insured principal obligation of the mortgage; and '' (II) may be adjusted by the
Secretary from time to time by increasing or decreasing such percentages as the Secretary considers necessary, based on the performance of mortgages insured under this subsection and market conditions.· 11 7
1 "(ii) PROIDBITION OF MONTHLY PRE2 MIUMS.-A mortgage insured under this 3 subsection shall not be subject to a month4 ly insurance premium, including a pre5 mium under subsection (c)(2)(B). 6 " ( 4) ELIGIBLE MORTGAGORS.-The mortgagor
7 for a mortgage insured under this subsection shall,
8 at the time the mortgage is executed9 "(A) be a first-time home buyer; 10 "(B) have completed a program of housing
11 counseling provided through a housing coun12 seling agency approved by the Secretary; 13 "(C) as attested by the mortgagor14 "(i) be employed as a first responder; 15 "(ii) have been16 "(I) employed as a first re17 sponder for not less than 4 of the 5 18 years preceding the date on which the
19 mortgagor submitted an application to
20 insure the mortgage under this sec21 tio~&
22 "(II) released from employment
23 as a first responder due to an occupa24 tion-connected disability resulting 25 from such duty or employment;
•HR 3170 1H
12 8
1 "(iii) be in good standing as a first re2 sponder and not on probation or under in3 vestigation for conduct that, if determined 4 to have occurred, is grounds for termi5 nation of employment; 6 "(iv) in good faith intend to continue
7 as a first responder for not less than 1
8 year following the date of closing on the
9 mortgage; and
10 "(v) have previously never been the
11 mortgagor under a mortgage insured under
12 this subsection;
13 "(D) meet such requirements as the Sec14 retary shall establish to ensure that insurance 15 of the mortgage represents an acceptable risk to
16 the Mutual Mortgage Insurance Fund; and
17 "(E) meet such underwriting requirements
18 as the Secretary shall establish to meet actu -
19 arial objectives identified by the Secretary,
20 which may include avoiding a positive subsidy
21 rate or complying with the capital ratio require22 ment under section 205(f)(2). 23 "(5) AUTHORIZATION OF APPROPRIATIONS.-
24 There is authorized to be app:ropriated to carry out 25 the program under this subsection-
•HR 3170 Ill
13 9
1 "(.A) $660,000 for fiscal year 2024, to re2 main available until expended; and 3 "(B) $160,000 for each of fiscal years
4 2025 through 2030, to remain available until
5 expended.
6 "(6) REAUTHORIZATION REQUIRED.-The au7 thority to enter into new commitments to insure 8 mortgages under this subsection shall expire on the
9 date that is 5 years after the date on which the Seel O retary first makes available insurance for mortgages 11 under this subsection.".
0 •HR 3170 ill
Attachment 3
14 AUTHENTICATE~ U.S, OOVE.RNMENT

INFORMATION
OPO
118TH CONGRESS
1ST SESSION S.1514
To amend the National Housing Act to establish a mortgage insurance program for first responders, and for other purposes.

IN THE SENATE OF THE UNITED STATES
MAY 10, 2023
II
Mr. RUBIO (for himself, Mr. OsSOFF, Mr. BROWN, Mr. WARNOCK, Mr.

MENENDEZ, Ms. CORTEZ MAsTO, and Mr. BLUMENTHAL) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To amend the National Housing Act to establish a mortgage msurance program for first responders, and for other
purposes.
1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Homes for Every Local
5 Protector, Educator, and Responder Act of 2023" or the 6 "HELPER Act of 2023".
15 2
1 SEC. 2. FHA MORTGAGE INSURANCE PROGRAM FOR MORT2 GAGES FOR FIRST RESPONDERS. 3 Section 203 of the National Housing Act (12 U.S.C.
4 1709) is amended by adding at the end the following:
5 "(z) FHA MORTGAGE INSURANCE PROGRAM FOR
6 MORTGAGES FOR FIRST RESPONDERS.-
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
•S 1514 IS
"(1) DEFINITIONS.-In this subsection:
"(A) FIRST RESPONDER.-The term 'first
responder' means an individual who is, as attested by the individual- " ( i) (I) employed full-time by a law enforcement agency of the Federal Government, a State, a Tribal government, or a unit of general local government; and
"(II) in carrying out such full-time
employment, sworn to uphold, and make
arrests for violations of, Federal, State,
county, township, municipal, or Tribal
laws, or authorized by law to supervise
sentenced criminal offenders or individuals
with pending criminal charges;
"(ii) employed full-time as a firefighter, paramedic, or emergency medical technician by a fire department or emergency medical services responder unit of the Federal Government, a State, a Tribal
16 3
1 government, or a unit of general local gov2 ernment; or 3 "(iii) employed as a full-time teacher
4 by a State-accredited public school or pri5 vate school that provides direct services to 6 students m grades pre-kindergarten
7 through 12.
8 '' (B) FIRST-TIME HOMEBUYER.-The term
9 'first-time homebuyer' has the meaning given
10 the term in section 104 of the Cranston-Gon11 zalez National Affordable Housing Act ( 42 12 u.s.c. 12704).
13 "(C) STATE.-The term 'State' has the
14 meaning given the term in section 201.
15 "(D) TRIBAL GOVERNMENT.-The term
16 'Tribal government' means the recognized gov17 erning body of any Indian or Alaska Native 18 tribe, band, nation, pueblo, village, community,
19 component band, or component reservation, in20 dividually identified (including parenthetically) 21 in the list published most recently pursuant to
22 section 104 of the Federally Recognized Indian
23 Tribe List Act of 1994 (25 U.S.C. 5131).
24 "(2) AUTHORITY.-The Secretary may, upon
25 application by a mortgagee, insure any mortgage eli- •S 1514 IS
17 4
1 gible for insurance under this subsection to an eligi2 ble mortgagor and, upon such terms and conditions 3 as the Secretary may prescribe, make commitments
4 for the insurance of such mortgages prior to the
5 date of their execution or disbursement.
6 "(3) MORTGAGE TERMS; MORTGAGE INSURANCE
7 PREMIUM.-
8 "(A) TERMS.-
9 "(i) IN GENERAL.-A mortgage ml O sured under this subsection shall11 "(I) be made to an eligible mort12 gagor; 13 "(II) comply with the reqmre14 ments established under paragraphs 15 (1) through (7) of subsection (b); and
16 '' (III) be used only to17 "(aa) purchase or repair a 18 I-family residence, including a 1-
19 family dwelling unit in a condo20 minium project, to serve as a 21 principal residence of the mort22 gagor, as attested by the mort23 gagor; or 24 "(bb) purchase a principal
25 residence of the mortgagor, as at-
•S 1514 IS
18 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 •S 1514 IS
5 tested by the mortgagor, which
IS-
'' (AA) a manufactured
home to be permanently affixed to a lot that is owned
by the mortgagor and titled
as real property; or
"(BB) a manufactured
home and a lot to which the
home will be permanently
affixed that is titled as real
property.
"(ii) No DOWN PAYMENT.-Notwithstanding any provision to the contrary in the matter following subsection (b)(2)(B)
with respect to first-time homebuyers-
'' (I) the Secretary may insure
any mortgage that involves an original
principal obligation (including allowable charges and fees and the premium pursuant to subparagraph (B) of this paragraph) in an amount not
to exceed 100 percent of the appraised
value of the property involved; and
19 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
•S 1514 IS
6 '' (II) the mortgagor of a mortgage described in subclause (I) shall not be required to pay any amount, in
cash or its equivalent, on account of
the property.
"(B) MORTGAGE INSURANCE PREMIUM.-
" (i) UP-FRONT PREMIDM.-The Secretary shall establish and collect an insurance premium in connection with mortgages insured under this subsection that is a percentage of the original insured principal obligation of the mortgage amount, which shall be collected at the time and in
the manner provided under subsection
(c)(2)(A), except that the premiums collected under this subparagraph- " (I) may be in an amount that
exceeds 3 percent of the amount of
the original insured principal obligation of the mortgage; and "(II) may be adjusted by the
Secretary from time to time by increasing or decreasing such percentages as the Secretary considers necessary, based on the performance of 20 7
1 mortgages insured under this sub2 section arid market conditions. 3 "(ii) PROHIBITION OF MONTHLY PRE4 MIUMS.-A mortgage insured under this 5 subsection shall not be subject to a month6 ly insurance premium, including a pre7 mium under subsection (c)(2)(B). 8 " ( 4) ELIGIBLE MORTGAGORS.-The mortgagor
9 for a mortgage insured under this subsection shall,
10 at the time the mortgage is executed11 "(A) be a first-time homebuyer; 12 "(B) have completed a program of housing
13 counseling provided through a housing coun14 seling agency approved by the Secretary; 15 "(C) as attested by the mortgagor16 "(i) be employed as a first responder; 17 "(ii) have been18 "(I) employed as a first re19 sponder for not less than 4 of the 5 20 years preceding the date on which the
21 mortgagor submitted an application to
22 insure the mortgage under this sec23 tion; or
24 "(II) released from employment
25 as a first responder due to an occupa-
•S 1514 IS
21 1
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 8
tion-connected disability resulting
from such duty or employment;
"(iii) be in good standing as a first responder and not on probation or under investigation for conduct that, if determined to have occurred, is grounds for termination of employment; "(iv) in good faith intend to continue
as a first responder for not less than 1
year following the date of closing on the
mortgage; and
"(v) have previously never been the
mortgagor under a mortgage insured under
this subsection;
"(D) meet such requirements as the Secretary shall establish to ensure that insurance of the mortgage represents an acceptable risk to
the Mutual Mortgage Insurance Fund; and
"(E) meet such underwriting requirements
as the Secretary shall establish to meet actuarial objectives identified by the Secretary, which may include avoiding a positive subsidy
rate or complying with the capital ratio requirement under section 205(f)(2). •S 1514 IS
22 9
1 "(5) AUTHORIZATION OF APPROPRIATIONS.-
2 There is authorized to be appropriated to carry out
3 the program under this subsection4 "(A) $660,000 for fiscal year 2024, to re5 main available until expended; and 6 "(B) $160,000 for each of fiscal years
7 2025 through 2030, to remain available until
8 expended.
9 "(6) REAUTHORIZATION REQUIRED.-The au10 thority to enter into new commitments to insure 11 mortgages under this subsection shall expire on the
12 date that is 5 years after the date on which the Sec13 retary first makes available insurance for mortgages 14 under this subsection.".
0 •S 1514 IS

AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 6/20/2023 Agenda Item: 10G
Department: Public Works
Prepared By Jonathan Lightfoot, Economic Development Officer Subject:

GREEN LINE TROLLEY UPDATE AND CONSIDERATION OF RESOLUTION 23-60

AUTHORIZING THE CITY MANAGER TO EXECUTE A SUPPLEMENTAL CONTRACT BETWEEN

LAZ PARKING CALIFORNIA LLC AND THE CITY OF SAN CLEMENTE FOR TROLLEY

SERVICES ON THE GREEN LINE AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION 15301) OF THE STATE CEQA GUIDELINES Summary:

The City operated a temporary pilot for a new trolley route between the pier and San Clemente State Beach in the months of March through May 2023. The Green Line served 9,313 rides during its operation, averaging to 19 rides per hour, which is nearly double the ridership goal of Orange County Transportation Authority (OCTA) for Project V local transit programs. The pilot was funded exclusively by the City as the route and time of operations are not within the scope of the City’s Project V grant and cooperative agreement with the OCTA. The pilot provided valuable ridership data that will be used to support the City's request for expanded grant funding under OCTA's 2023 call for Project V applications. The pilot used two trolleys until Memorial Day weekend, when those vehicles returned to their normal duties servicing the Blue Line, running between the Outlets at San Clemente and the Dana Point connection at Camino de Estrella. The City Council requested information and options regarding potential resumption of service along the Green Line Route during the summer.

Alternatives are further discussed within the Council Options section of this report.

Background:

The City Trolley Program is funded through a Measure V grant (“OC Go”) from OCTA. OCTA reimburses the City for 90% of operational costs within the allotted annual grant amounts. The standard schedule of services in the grant agreement includes daily Trolley operations between Memorial Day weekend and the final weekend in September on both the red line (downtown) and blue line (Dana Point). The Trolley did not operate in 2020 due to the Covid-19 pandemic. Services were phased in during 2021 as pandemic guidelines allowed. Because of the periods of nonoperation, OCTA revised the grant Cooperative Agreement to allow for carryover use of grant funds to provide cities with additional flexibility. The City received approval from OCTA to extend its operation of the Red Line services beyond the normal summer season in 2021, 2022, and 2023.

In December of 2022, the City Council authorized a temporary pilot route of the Green Line trolley, servicing south San Clemente. This pilot route is not covered by the City’s grant and cooperative agreement with OCTA in the Project V program; therefore, the route’s operations were funded out of the General Fund. At the City Council meeting on June 6, 2023, the City Council requested options CITY OF SAN CLEMENTE Page 1 of 3 Printed on 6/15/2023
powered by Legistar™ 1
Meeting Date: 6/20/2023 Agenda Item: 10G
for continuation of the Green Line Trolley.

Discussion:

Trolley staffing is provided by LAZ Parking California, LLC (“LAZ”). LAZ is willing to augment their current services with the City to include an extension of the Green Line, but will need a couple of weeks to schedule staffing for the operations. The City would need to rent two standard white shuttles in order to continue this service since the Trolleys are obligated to return to the Blue Line route between the Outlets and Dana Point. This additional service would be funded by the General Fund, not reimbursable under the Project V grant, and would cost $100 per service hour, including the loaner shuttles. To cover summer operations, two shuttles would be needed, operating for 72 hours each per week. The cost to operate the Green Line continuation would be $14,400 per week, or about $245,000 for the full summer season. These costs would not be reimbursable under the Project V Grant, so a supplemental general fund appropriation would be required.

Should the Council desire to resume Green Line Trolley operations, staff recommends a direct selection of LAZ as the service provider. City Council Policy 201-2-8, Selection of General Services Consultants and Contractors, allows for exemptions to the standard bidding procedures to allow for direct selection of contractors in situations where such selection is in the public interest. LAZ already operates the existing trolley routes; LAZ would be able to staff the additional route and provide rental vehicles by July; and LAZ already has familiarity with the City and OCTA’s operating and reporting requirements of OCTA’s Project V, Local Transit Programs. For these reasons, a direct selection of LAZ is appropriate in this instance.

City staff anticipates applying for OCTA’s upcoming call for grants in the new round of funding for Project V. If the City is successful, additional grant funding may be available to support the Green Line or other expanded services beginning in July of 2024.

Council Options:
· Adopt Resolution 23-60 authorizing the City Manager to prepare and execute a supplemental contract with LAZ Parking to return the Green Line to service, operating daily to reflect the Red and Blue Line trolley operations and finding the project exempt from CEQA. This would cost $14,400 per week, or $201,600 to operate July through September. · Modify and adopt Resolution 23-60 authorizing the City Manager to prepare and execute a supplemental contract with LAZ Parking to return the Green Line to service, operating on weekends only, Fridays through Sundays, $6,400 per week, or $89,600 to operate weekends only during July through September.
· Make other modifications to and adopt Resolution 23-60. · Continue the Item with direction for staff to provide additional information. · Provide direction to the City Manager to take specific actions. · Deny the Resolution and continue to operate with only the Blue and Red Line service during the 2023 summer season, requiring no supplemental funding from the General Fund.

CITY OF SAN CLEMENTE Page 2 of 3 Printed on 6/15/2023
powered by Legistar™ 2
Meeting Date: 6/20/2023 Agenda Item: 10G
Fiscal Impact:

The Council would need to appropriate additional funds, at the rate of $100 per service hour, in order to initiate additional service on the Green Line route during the summer of 2023.

Environmental Review/Analysis:

The original agreement with LAZ Parking was previously found to be categorically exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities, 14 CCR §15301). The proposed contract is likewise categorically exempt because it involves the use of existing roadways and transit stops to provide additional local transit options, and there is no possibility of a direct or reasonably foreseeable indirect effect on the environment.

Recommended Actions:

Staff Recommendation
Staff recommends that the City Council adopt Resolution 23-60, which would:

1. Determine that the project is categorically exempt from CEQA pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities, 14 CCR §15301);

2. Authorize the City Manager to prepare and execute a supplemental contract with LAZ Parking California, LLC to return the Green Line to service, operating daily with a contract amount not to exceed $201,600; and

3. Appropriate the necessary supplemental funds into account # 021-808-43690 (Other Professional Services) for operations of the Green Line trolley during the summer of 2023.

Attachment:

1. Resolution No. 23-60
Notification:

San Clemente Chamber of Commerce and San Clemente Downtown Business Association CITY OF SAN CLEMENTE Page 3 of 3 Printed on 6/15/2023
powered by Legistar™ 3
Attachment 1
4884-5845-1562 v1
RESOLUTION NO. 23-60

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO PREPARE AND EXECUTE A CONTRACT

WITH LAZ PARKING CALIFORNIA, LLC TO CONTINUE

EXPANDED GREEN LINE TROLLEY OPERATIONS,
APPROPRIATING $201,600 FOR FUNDING AND FINDING

THE PROJECT CATEGORICALLY EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION
15301) OF THE STATE CEQA GUIDELINES
WHEREAS, the City of San Clemente Mission Statement states, “… Maintaining a safe, healthy atmosphere in which to live, work and play…”; and WHEREAS, the City Council has determined it is in the best interest of the community to execute a contract to continue expanded local transit services in the City; and WHEREAS, LAZ Parking California, LLC (“LAZ”) operates the existing Project V Local Transit Trolley program in the City of San Clemente; and WHEREAS, City Council Policy 201-2-8, Selection of General Services Consultants and Contractors, allows for exemptions to the standard bidding procedures to allow for direct selection of contractors in situations where such selection is in the public interest; and WHEREAS, selection of LAZ will allow for expanded trolley operations for the duration of the summer season, which has already begun; and WHEREAS, LAZ has unique knowledge of the City’s transit program and is familiar with the oversight of the Orange County Transportation Authority (OCTA) and the reporting requirements of OCTA; and
WHEREAS, it would be infeasible to operate one trolley system with multiple distinct operators, which would cause scheduling and integration problems for the ongoing trolley services in San Clemente; and
WHEREAS, direct selection of LAZ to continue expanded local transit services in the City from July through September, 2023 is in the public interest.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:

Section 1.

The above recitals are considered findings by the City Council and incorporated into the body of this resolution.
4 Resolution No. 23-60 Page 2
4884-5845-1562 v1
Section 2.

This project is determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15301 (Class 1: Existing Facilities, 14 CCR §15301) because it involves the use of existing roadways and transit stops to provide additional local transit options, and there is no possibility of a direct or reasonably foreseeable indirect effect on the environment.

Section 3.

The City Manager is hereby authorized and directed to prepare and execute a contract for services with LAZ Parking Inc. to return the Green Line to service, operating daily to reflect the Red and Blue Line trolley operations from July through September, 2023 in the City of San Clemente in an initial amount not to exceed (emphasis added) $201,600 in a form acceptable to the City Attorney that can be modified as needed in the City Manager’s discretion (with the exception of the not to exceed amount).

Section 4.

The contract shall indicate the specific services to be provided, but in general, the transit services are intended to augment the existing Project V Trolley program.

Section 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this 20th day of June, 2023.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California

5 Resolution No. 23-60 Page 3
4884-5845-1562 v1

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-60 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
6 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 6/20/2023 Agenda Item: 10H
Department: Public Works
Prepared By Ryan Kim, Senior Civil Engineer - Traffic
Subject:

CONSIDERATION OF PARKING MODIFICATIONS ON SOUTH EL CAMINO REAL AND AVENIDA

SAN LUIS REY, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION 15301) OF THE STATE CEQA GUIDELINES Summary:

The purpose of this report is to present the findings and recommendations regarding proposed changes to the parking restrictions on South El Camino Real and Avenida San Luis Rey. The proposed changes aim to improve the safety and efficiency of the traffic flow in the area, as well as accommodate the needs of the residents and businesses. Staff hand delivered notices to the residents within 300 feet of the subject area to inform them that the City Council would consider the subject matter at this meeting.

Background:

Per the City’s adopted Traffic Code, no parking is allowed along the entire curb frontage of South El Camino Real between Avenida Santa Inez to Avenida San Luis Rey. Currently, only portions of South El Camino Real along this block are marked as red curb, and vehicles have been utilizing the street parking for several years. On Avenida San Luis Rey, there is also a red curb on the south side from the end of curb return to 6 feet east. In addition, there is a 24-minute parking zone from 9 AM to 7 PM daily for 80 feet on Avenida San Luis Rey between South El Camino Real and the alley behind the commercial market Primo Foods. The alley has NO PARKING signs on both sides. San Luis Ray Park, on Avenida San Luis Rey 300 feet east of South El Camino Real, has public parking spaces available from 6 AM to 10 PM daily. (See Attachment 1.) The parking situation on South El Camino Real and Avenida San Luis Rey, has been a concern for both residents and businesses. Primo Foods, a grocery store at 2801 South El Camino Real, has requested Public Works review modifications to the parking restrictions to accommodate its customers. A resident has also requested some changes to improve traffic flow and pedestrian safety.

Discussion:

Staff recommends the following parking modifications in the area:

CITY OF SAN CLEMENTE Page 1 of 3 Printed on 6/15/2023
powered by Legistar™ 1
Meeting Date: 6/20/2023 Agenda Item: 10H

1. Reduction of the red curb on South El Camino Real between Avenida San Luis Rey and Avenida Santa Inez to 50 linear feet;

2. Installation of 60 linear feet of green curb for 20-minute limited term parking on South El Camino Real;

3. Installation of 40 linear feet of red curb at the northeast corner of Calle Del Comercio and Avenida San Luis Rey;

4. Installation of 80 linear feet of green curb for 20-minute limited term parking on the south side of Avenida San Luis Rey between South El Camino Real and the alley; and Reduce the limited term parking from 24 minutes to 20 minutes for the 80 linear feet of curb on the south side of Avenida San Luis Rey between South El Camino Real and the alley.

In addition to the proposed parking modifications that require City Council approval, staff has issued work orders for the following measures to be implemented. (See Attachment 3.) These measures do not require formal authorization by City Council:

1. Repaint the existing 6-foot red curb, which has faded over time on the south side of Avenida San Luis Rey from the end of curb return to east;

2. Place two (2) SAN LUIS REY PARK - PUBLIC PARKING signs on Avenida San Luis Rey to provide wayfinding to the nearby public park and its parking lot. The signs are consistent with other City directional wayfinding signage; and

3. Post one (1) NO PARKING IN ALLEY sign on the alley behind Primo to avoid traffic obstruction.

The proposed parking modifications were reviewed by the Planning Commission on June 7, 2023.

The item was unanimously recommended by the Planning Commission for City Council approval with discussion that staff should continue to monitor the area parking and implement additional solutions if other measures could be determined. The Planning Commission also discussed having staff monitor the area and inform Police Services if issues of noncompliance are an ongoing issue.

Council Options:
· Adopt Resolution No. 23-61, approving the parking modification as shown on Attachment 2 and finding the project categorically exempt from CEQA. · Adopt Resolution No. 23-61 with modifications.
· Continue the item and direct staff to provide additional information. · Do not adopt Resolution No. 23-61 and deny the request for parking modifications.

CITY OF SAN CLEMENTE Page 2 of 3 Printed on 6/15/2023
powered by Legistar™ 2
Meeting Date: 6/20/2023 Agenda Item: 10H
Fiscal Impact:

Yes. The minor cost for painting the curbs and installing new signage (approximately $1000) is available in the City Maintenance Department’s Street Sign Replacement Program, Project No. 21306.

Environmental Review/Analysis:

The Planning Commission and staff recommend that the City Council determine this action to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.

Recommended Actions:

Staff Recommendation
Planning Commission and Staff recommend that the City Council approve Resolution No. 23-61, which would take the following actions:

1. Find the project categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines;

2. Approve the parking modifications as illustrated in Attachment 2 of the Administrative dated June 6, 2023;

3. Appropriate the required funds (approximately $1,000) from the Street Sign Replacement Project No. 21306; and

4. Request Police Services to consider increasing parking enforcement near the intersection of South El Camino Real and Avenida San Luis Rey.

Attachment:

1. Location Map

2. Proposed Measures

3. Work Order Improvements

4. Resolution No. 23-61
Notification:

Staff hand delivered notices to the residents within 300 feet of the subject area to inform them that the City Council would discuss the subject matter at this meeting.

CITY OF SAN CLEMENTE Page 3 of 3 Printed on 6/15/2023
powered by Legistar™ 3
4 ATTACHMENT 1
I I I
I I 0
(.)
/ ~I I 0::
w w
0:: I I ~ I0 0 ....J
01 N
I --.J (.) (.')
z vi z
I~
vi ....J S2 - a::: ~I I w Al
'- '-
Al <( >-
<{ N a.. w 0 " " X 'c Al --.J (.) (.) I I ~ vi 0:: ::J
~ I
(J1 w CD en ::::s:::=
[DI ....J ::::> - 0:: I a..
s II (.) ::J <{
en
II N ....J a..
w II --.J
w z II vi X --.J <{ 0:: II
II en LL 11 1:J g «ouR

LC') II N
--.J PARKING I II vi - II <O !i!JMINlITT J • a 201 501 .v {;l 'v, .. t "'- A 1- -- / AVE. SAN LUIS REY
-...... ,!§ ,-\ w r- ' , ~
~ ~ \ M,INUTE /
...

C)
C
Q) -
X
X
X
~ --~ I IG
~ ~)
c-1'-1i-o;~,h
I.
1 l g PARKING
:. I l 9AM" 7PM .. Ill I
. I - .. I ~ I
I I
I I :

I
I ~
I
I I
I I
N
co
0 I vi
I
N
I co
0 <O
I
I
I ~
I
I

CITY OF SAN CLEMENTE
910 Calle Negocio
San Clemente, CA 92673
https://www.san-clemente.org
LEGEND:
■■■■ - EXISTING RED CURB/ NO-PARKING
..&.. - EXISTING PARKING RESTRICTION SIGN
>-
w a - EXISTING OCTA BUS STOP ....J
....J
<{
\...

AVE.SANTAINEZ
'\ ,

LOCATION MAP
S. EL CAMINO REAL AT AVE. SAN LUIS REY

EXISTING PARKING
5 I I
I
'I
~I I w
0:: I
01 z I~
-
~I
<{ < " (..) I
~ I [DI s
w Cl)
w <
0::

LL
LO I
- J
{;l 1- -- /
I
I
I
I
I
I
I
I
N
--.J
vi
vi
N Al --.J '-" vi
(J1
II
II N
II --.J
II vi
--.J
II
II 11 1;1 II N
--.J II vi
II <O
a
'v, ,--
N
co
0 vi
I R N
co
0 <O
r:t «DUR

PARKING

WJMINUTI
2,.~.so
..I
.v
t
ATTACHMENT 2
0 (..)
0::
w
~ I0 0 ....J
(..) (.')
z
....J S2
a::: w Al
'- '-
Al <( >-
a.. w 0 " " (.) 0:: ::J w CD Cl) ::::s:::=
....J ::::>
a.. - 0::
(..) :J <{
....J a..
z
<{
Cl)
· \~
~ "'- A
>-
w
....J
....J
<{
AVE. SAN LUIS REY
LEGEND:
--• - PROPOSED RED CURB/ NO-PARKING
- PROPOSED PROPOSED GREEN CURB/

PARKING RESTRICTION -
"20 MINUTE PARKING 9 AM TO 7 PM"
.&. - PROPOSED PARKING RESTRICTION SIGN -
"20 MINUTE PARKING 9 AM TO 7 PM"
■ ■ ■ ■ EXISTING RED CURB/ NO-PARKING
.&. - EXISTING PARKING RESTRICTION SIGN aEXISTING OCTA BUS STOP AVE.SANTAINEZ
... g>--------.-----------------------------------1 Cl) - I ~~"" CITY OF SAN CLEMENTE '8 1-.. , · • i 910 Calle Negocio ~ 1 0 ~ San Clemente, CA 92673 S. EL CAMINO REAL AT AVE. SAN LUIS REY J c-1'-1i-o;~,h https:llwww.san-clemente.org PROPOSED MEASURES ci, '-------'-------------...... -----------------.....1

LOCATION MAP
6 I
<
~ I s
w
w
0::

LL
LO I
...

I
~I
w
0:: I
01 z
-
~I
<t::
()I
[d 1
Cl)
el
N
--.J
vi
vi
N
--.J
vi
(J1
N
--.J
vi
--.J
N
--.J
vi
<O
N
co
0 vi
I
N
co
0 <O
0 0
0::
w
~
0 0
.....J
w
0 w
.....J
0 ATTACHMENT 3
AVE. SAN LUIS REY
lg
(.')
z
S2
a:::
<(
a..
(.)
::J
CD
::::>
a..
ru
0::

Cl) ~ - 0::
:::J <t::
.....J a..
z
<t::

Cl)
>-
w .....J LEGEND:
.....J <t:: - -REPAINT FADED RED CURB
..L, - INSTALL PARKING GUIDE SIGN
..I.. -INSTALL ADDITIONAL "NO-PARKING IN ALLEY"

SIGN ON EXISTING SIGN POST
AVE. SANTAINEZ
gi...,_ __________________________________ ____
Cl)

CITY OF SAN CLEMENTE
910 Calle Negocio
San Clemente, CA 92673
https://www.san-clemente.org
S. EL CAMINO REAL AT AVE. SAN LUIS REY
WOR~ORDEREDIMPROVEMENTS
ATTACHMENT 4
4878-8526-2954 v1
RESOLUTION NO. 23-61

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AMENDING MASTER
TRAFFIC RESOLUTION NO. 1846, ESTABLISHING ‘NO
PARKING AREAS’ AND ‘RESTRICTED PARKING AREAS’

ON EL CAMINO REAL AND AVENIDA SAN LUIS REY, AND

FINDING THE PROJECT CATEGORICALLY EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
UNDER CLASS 1 (EXISTING FACILITIES, 14 CCR SECTION
15301) OF THE STATE CEQA GUIDELINES
WHEREAS, the City has received complaints related to parking conditions on South El Camino Real and Avenida San Luis Rey; and
WHEREAS, the City has reviewed the parking locations and the City desires to improve safety and traffic conditions in the area; and
WHEREAS, the City of San Clemente Planning Commission (“Planning Commission”), at its regular meeting of June 7, 2023, made a recommendation to the City of San Clemente City Council (“City Council”) to approve the parking modifications at the locations listed below; and
WHEREAS, the City Council has considered the recommendation by the Planning Commission, the information provided by City staff and any information provided by the public at or before the June 20, 2023 City Council meeting, and City Council now wishes to implement the recommended parking modifications.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:

Section 1. That the above recitals are true and correct.

Section 2. That the project is categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of minor alteration of existing public structures, facilities or topographical features, involving negligible or no expansion of existing or former use and there is no possibility of a direct or foreseeably indirect effect on the environment.

Section 3. That the Master Traffic Resolution No. 1846, Section 23, entitled “No Parking Areas”, is hereby amended by modifying subsection 23.e-54 to read as follows:

23.e-54 El Camino Real, South, east side, from the southeast curb return at its intersection with Avenida San Luis Rey, in a southerly direction for a distance of 50 feet.

Section 4. That the Master Traffic Resolution No. 1846, Section 23, entitled “No 7 Resolution No. 23-61 Page 2
4878-8526-2954 v1
Parking Areas”, is hereby amended by adding subsection:

23.s-7a San Luis Rey, Avenida, north side, from the beginning of the northeast curb return at Calle Del Comercio in a northerly direction of 40 feet.

Section 5. That the Master Traffic Resolution No. 1846, Section 28, entitled “Restricted Parking Areas”, is hereby amended by modifying subsection 28.s-1a to read as follows:

28.s-1a San Luis Rey, Avenida, on the south side, between South El Camino Real easterly to the alley, parking shall be limited to 20 minutes between the hours of 9:00 a.m. and 7:00 p.m.

Section 6. That the Master Traffic Resolution No. 1846, Section 28, entitled “Restricted Parking Areas”, is hereby amended by adding subsection:

28.e-5 El Camino Real, South, east side, from a point 50 feet south of the southeast Avenida San Luis Rey curb return for a distance of 60 feet southerly, parking shall be limited to 20 minutes between the hours of 9:00 a.m. and 7:00 p.m.

Section 7. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of ____________________, _______.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of
San Clemente, California San Clemente, California
8 Resolution No. 23-61 Page 3
4878-8526-2954 v1

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, Laura Campagnolo, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-61 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
9 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 6/20/2023 Agenda Item: 10I
Department: City Manager
Prepared By Andy Hall, City Manager
-
Subject:

CONSIDERATION OF RESOLUTION 23-62 AUTHORIZING THE CITY MANAGER TO EXECUTE A

CONTRACT BETWEEN ALLIED UNIVERSAL SECURITY SERVICES AND THE CITY OF SAN

CLEMENTE FOR SECURITY SERVICES
Summary:

On June 6, 2023, during deliberations in relation to the FY 23-24 budget, the City Council directed staff to prepare a contract for consideration by the City Council with Allied Universal Security Services (Allied). If adopted as proposed, the contract would include two teams consisting of two officers working 12-hour shifts, as determined by the City Manager, for a period of six months. On or before the end of the six-month period, the City Manager will provide an update to the City Council to determine if the contract will be extended. Additionally, the services provided by Allied may be modified through a written agreement between the parties.

Discussion:

The City Council has been exploring a variety of options to improve the safety and family environment in the beach areas and tourism based commercial areas of the City. Following a series of interviews with private security firms, the City Council selected Allied as the preferred provider of security services. During the budget deliberations, the City Council directed staff to prepare and present a contract with Allied to provide two teams consisting of two officers working 12-hour shifts seven days per week for a period of six months. Attached to this report is the proposed contract for consideration by the City Council. A summary of the costs is provided below:

The initial Billing Rates for the Services shall be as follows:

Wage Bill Rate Overtime/Holidays
Patrol Officer $22.00/HR $31.46 $47.19
Supervisor $24.00/HR $34.32 $51.48
Vehicle $1,700/month total cost/vehicle (vehicle, fuel, insurance and maintenance) Heliaus* $189/month/unit (camera and GPS units)
Standard Officers: 276 HPW** (184 HPW ST, 92 HPW OT) $10,129/week*** Supervisor: 60 CITY OF SAN CLEMENTE Page 1 of 2 Printed on 6/15/2023
powered by Legistar™ 1
Meeting Date: 6/20/2023 Agenda Item: 10I
HPW (40 HPW ST, 20 HPW OT) $2,402/week
2 Vehicles $1,700/vehicle/month $3,400/month
2 Heliaus Units: $189/Unit / month $378
*Software platform
**Hours Per Week
***Weekly estimates may vary due to holidays or changes made to the deployment schedule.

Council Options:
-
· Adopt Resolution 23-62 authorizing the City Manager to prepare and execute an agreement with Allied Universal Security Services to provide security services for the City of San Clemente.
· Modify and adopt Resolution 23-62.
· Continue the Item with direction for staff to provide additional information. · Provide specific action to the City Manager.
· Deny the resolution and provide specific direction.

Fiscal Impact:

If approved as proposed, the monthly cost would be $53,902 per month, not to exceed six months without further authorization by the City Council. The funding will be allocated from the General Fund Emergency Reserve.

Environmental Review/Analysis:

Not a “project” under the California Environmental Quality Act.

Recommended Actions:

Staff Recommendation
Adopt Resolution 23-62 authorizing the City Manager to prepare and execute an agreement with Allied Universal Security Services to provide security services for the City of San Clemente.

Attachment:

Resolution No. 23-62
Notification:

None.

CITY OF SAN CLEMENTE Page 2 of 2 Printed on 6/15/2023
powered by Legistar™ 2
Attachment 1
RESOLUTION NO. 23-62

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN CLEMENTE, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO PREPARE AND EXECUTE A CONTRACT

BETWEEN ALLIED UNIVERSAL SECURITY SERVICES

AND THE CITY OF SAN CLEMENTE FOR SECURITY

SERVICES
WHEREAS, the City of San Clemente Mission Statement states, “… Maintaining a safe, healthy atmosphere in which to live, work and play…”; and WHEREAS, the City Council has determined it is in the best interest of the community to execute a contract to obtain security services to better implement the provisions of the adopted laws, ordinances and resolutions of the City; and WHEREAS, Allied Universal Security Services Inc. has unique skills and abilities to provide assistance to the City to help the Orange County Sheriff’s Department and the City’s Code Compliance Division enforce the existing laws, ordinances and resolutions of the City of San Clemente.

NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:

Section 1.

The above recitals are considered findings by the City Council and incorporated into the body of this resolution.

Section 2.

The City Manager is hereby directed to establish a contract for services in an initial amount not to exceed (emphasis added) $350,000 during a six month period in a form approved by the City Attorney that can be modified as needed in the City Manager’s discretion (with the exception of the not to exceed amount) with Allied Universal Security Services to provide security services in the City of San Clemente.

Section 3.

The contract shall indicate the specific services to be provided, but in general, the security services are intended to augment the capacity of the Orange County Sheriff’s Department and the City of San Clemente Code Compliance Division in the enforcement of existing laws, ordinances, resolutions and provisions of the San Clemente Municipal Code.

Section 4.

The City Manager is instructed to provide an update to the City Council approximately 60 days after the services under the contract have commenced to determine the effectiveness of the additional security services and to direct the City Manager to terminate or extend the contract for a specified period of time.

Section 5. The City Clerk shall certify to the passage and adoption of this resolution 3 Resolution No. 23-62 Page 2
and enter it into the book of original resolutions.

PASSED AND ADOPTED this 20
th day of June, 2023.

ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-62 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:

AYES:

NOES:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
4 AGENDA REPORT

CITY OF SAN CLEMENTE
City Council Meeting
910 Calle Negocio
2nd Floor
San Clemente, California
www.san-clemente.org
Meeting Date: 6/20/2023 Agenda Item: 10J
Department: Public Works
Prepared By Kiel Koger, Public Works Director/City Engineer Subject:

CONSIDERATION OF A RESOLUTION RATIFYING AN EMERGENCY CONSTRUCTION CONTRACT WITH ALLIANCE DIVERSIFIED ENTERPRISES, INC. AND FIRST AMENDMENT

THERETO FOR TEMPORARY EMERGENCY SLOPE STABILIZATION REPAIRS AT CASA ROMANTICA FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $350,000 AND

APPROPRIATING FUNDING THEREFORE
Summary:

A landslide on April 27, 2023 necessitated an emergency response to ensure that more damage was not caused to a condominium building and railroad tracks adjacent to the failed slope. Before the City Council is the ratification of an emergency construction contract previously approved by the City Manager to protect public health and safety and prevent or mitigate an emergency entered into with Alliance Diversified Enterprises, Inc. and a first amendment thereto for the emergency slope stabilization repairs performed at Casa Romantica. The proposed resolution also appropriates funding for the expenditures.

Background:

Some coastal bluff movement at Casa Romantica was initially witnessed on April 16, 2023. Staff hired a local geotechnical engineering firm (LGC) to immediately start tracking the affected areas to find the extent of the movement and officially entered into an agreement with them on April 24, 2023.

The movement was being monitored daily when the slope failed on April 27, 2023. The landslide deposited debris and soil near the railroad tracks below the site to the west and against the condominium building to the north.

The City asked a contractor who specializes in this type of emergency work (Alliance Diversified Enterprises, Inc.) to mobilize as soon as possible to begin work. ADEI mobilized on Friday, May 12, 2023 to start the repairs under the supervision of LGC. The initial emergency work was completed on June 2, 2023 and included removing the large knob of soil at the north end of the landslide area to reduce the chance of more material sliding down on the railroad tracks or against the condominium building. Some soil was excavated and hauled off site and additional soil was placed against the vertical slope nearest the Casa Romantica building to temporarily stabilize that slope. Debris and soil was also removed from the condominium building to relieve pressure. After completion of the initial work, the slope started moving again on the morning of June 3rd and more reshaping and regrading of the slope was necessary and occurred on June 3 through 4. The slope moved again the morning of June 5th and no additional work has occurred since. More permanent work will be needed to secure the west side of the Casa Romantica property and building as well as the entire slope in the future. That work will be performed under a different contract and brought to the City Council in the near future. The City has worked closely with OCTA and Metrolink on coordination of these activities and the California Coastal Commission was notified on May 11, 2023 of the immediate emergency CITY OF SAN CLEMENTE Page 1 of 3 Printed on 6/15/2023
powered by Legistar™ 1
Meeting Date: 6/20/2023 Agenda Item: 10J
and the California Coastal Commission was notified on May 11, 2023 of the immediate emergency action needed to stabilize the slope.

Council Options:
· Adopt Resolution No. 23-63, ratifying an emergency construction contract with Alliance Diversified Enterprises, Inc. and approving a first amendment for temporary emergency slope stabilization repairs at Casa Romantica for a total contract amount not to exceed $350,000 and appropriate funding therefore.
· Modify and adopt Resolution No. 23-63.
· Continue the item with direction to provide additional information.

Fiscal Impact:

Yes. The original emergency temporary slope stabilization repairs included excavation, grading, compaction and shoring estimated at $200,000. Due to uncertainty of the work and unforeseen site conditions, including excess groundwater and constantly shifting soil, an amendment to the contract is needed to increase the original estimate amount from $200,000 to $350,000. All work was performed by force account (time and materials) due to the uncertain conditions at the site. This work is proposed to be funded by a supplemental appropriation from the General Fund unassigned fund balance in the amount of $350,000 to Account Number # 001-481-43470-000-23502 (Casa Romantica Stabilization).

Environmental Review/Analysis:

Under the State CEQA Guidelines, an emergency is defined as a sudden, unexpected occurrence, involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to life, health, property, or essential public services and includes fire, flood, earthquake, or other soil or geologic movements, as well as such occurrences as riot, accident or sabotage. This work meets the definition of an emergency. Before proceeding, staff determined that the project qualified for an exemption pursuant to Section 15269(c) of the State CEQA Guidelines as specific actions necessary to prevent or mitigate an emergency. The California Coastal Commission was notified on May 11, 2023 of the immediate emergency action needed to stabilize the slope.

Recommended Actions:

Staff Recommendation
Staff recommends that the City Council adopt Resolution No. 23-63, which would:

1. Make a finding that an emergency exists due to the potential failure of an existing slope and that the situation requires immediate action to prevent or mitigate impairment to property and public services that might otherwise occur if required to incur delays attributed to the typical engineering analysis and competitive bidding process;

2. Declare that the public interest and necessity demand the immediate expenditure of public funds to safeguard public health and safety;
CITY OF SAN CLEMENTE Page 2 of 3 Printed on 6/15/2023
powered by Legistar™ 2
Meeting Date: 6/20/2023 Agenda Item: 10J

3. Approve a supplemental appropriation in the amount of $350,000 to Account Number 001-481 -43470-000-23502 from the General Fund unassigned fund balance;

4. Ratify a Construction Contract and approve Amendment No. 1 with Alliance Diversified Enterprises, Inc. on a time and materials basis for up to $350,000 for the emergency temporary slope stabilization repairs at Casa Romantica.

Attachment:

1. Location Map

2. Construction Contract

3. Amendment 1 to the Construction Contract

4. Resolution No. 23-__
Notification:

OCTA/Metrolink, Casa Romantica, Reef Gate HOA
CITY OF SAN CLEMENTE Page 3 of 3 Printed on 6/15/2023
powered by Legistar™ 3

VIA MECHA ARENOSO LN LINDA LN
S. ALAMEDA LN CORONADO LN

CORTO LN
N. ALAMEDA

STA ANA LN

ENCINO LN

CORONA LN

ACEBO LN

AVE CABRILL

AVE SEVILLE
A. T. & S. F. R. R.

PACIFIC OCEAN
COMM. CENTER

SANTA AVE BAR

AVE DEL MAR
LN.

AVE CABRILLO
AVE. VICTORIA Casa Romantica Landslide
Attachment 1

NOT TO SCALE

PROJECT

LOCATION
4 910 Calle Negocio, Suite 100
San Clemente, CA 92673
Tel (949) 361-6100
Fax (949) 361-8316
Attachment 2
5 CITY OF SAN CLEMENTE CONSTRUCTION CONTRACT

CASA ROMANTICA SLOPE STABILIZATION REPAIR

1. PARTIES AND DATE,
This Contract is made and entered Into this __ day of May, 2023 by and between the City of San Clemente, a public agency of the State of California C'City") and Alliance Diversified Enterprises, Inc., a California corporation with its principal place of business at 665 Opper Street, Escondido, CA 92029 ("Contractor"). City and Contractor are sometimes individually referred to as "Party" and collectively as "Parties" in this Contract.

2. RECITALS.

2.1 City. City ls a· public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.

2.2 Contractor. Contractor desires to perform and assume responsibility for the provision of certain construction services required by the City on the terms and conditions set forth in this Contract. Contractor represents that it is duly licensed and experienced In providing shoring, slope stabilization and excavation/grading related construction services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the services In the State of California. The following license classifications are required for this Project: Class A- General Engineering.

2.3 Prolect. City desires to engage Contractor to render such services for the Casa Romantica Slope Stabilization Repairs ("Project") as set forth in this Contract.

2.4 Project Documents & · Certifications. Contractor has obtained, . and delivers ·concurrently herewith, a performance bond, a payment bond, and all Insurance documentation, as required by the Contract.

3. TERMS

3.1 Incorporation of Documents. This Contract includ.es and hereby Incorporates in full by reference the following documents, lndudlng all exhibits, drawings, specifications and documents therein, and attachments and addenda thereto:
• Services/Schedule (Exhibit "N)
• Plans and Specifications (Exhibit •s•) - NIA
• Special Conditions (Exhibit •c11)
• Contractor's Certificate Regarding Workers' Compensation (Exhibit "D") • Public Works Contractor Registration Certification (Exhibit "E") • Payment and Performance Bonds (Exhibit "F")
• Federal Requirements (Exhibit "G")- NIA
• Insurance Requirements (Exhibit "H)
55452;015 I 0\32977834.2
6 3.2 Contractor's Basic Obligation: Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the Project, Including all structures and facilities necessary for the Project or described in the Contract (hereinafter sometimes referred to as the 'Work"), for a Total Contract Price as specified pursuant to this Contract. All Work shall be subject to, and performed in accordance with the above referenced documents, as well as the exhibits attached hereto and Incorporated herein by reference. The plans and specifications for the Work are further described In Exhibit "B" attached hereto and incorporated herein by this reference. Special Conditions, if any, relating to the Work are described in Exhibit "C" attached hereto and incorporated herein by this reference.

3.2.1 Change in Scope of Work. Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion is approved In writing by a change order executed by the City. Should Contractor request a change order due to unforeseen circumstances affecting the performance of the Work, such request shall be made within five (5) business days of the date such circumstances are discovered or shall waive, its right to request a change order due to such circumstances. If the Parties cannot agree on any change in price required by such change in the Work, the City may direct the Contractor to proceed With the performance of the change on a time and materials basis.

3.2.2 Substitutionsl"Or Equal". Pursuant to Public Contract Code Section 3400(b), the City may make a finding that designates certain products, things, or services by specific brand or trade name. Unless speclflcally designated in this Contract, whenever any material, proc;E;l~s. or article Is indicated or specified by grade, patent, or proprietary name or by name of manufacturer, such Specifications shall be deemed to be used · for the purpose of facilitating the description of the material, process or article desired and shall be deemed to be followed by the words "or equal.•
Contractor may, unless otherwise stated, offer for substitution any material, process or article which shall be substantially equal or better In every respect to that so Indicated or specified in this Contract. However, the City may have adopted certain uniform standards for certain materials, processes and articles. Contractor shall submit requests, together with substantiating data, for substitution of any "or equal" material, process or article no later than thirty-five (35) days after award of the Contract. To facilitate the construction schedule and sequencing, some requests m~y need to be submitted before thirty-five (35) days after award of Contract. Provisions regarding submission of "or equal• requests shall not in any way authorize an extension of time for performance of this Contract. If a proposed "or equal" substitution request is rejected, Contractor shall be responsible for providing the specified material, process or article.

The burden of proof as to the equality of any material, process or article shall rest with Contractor.

The City has the complete and sole discretion to determine if a material, process or article Is an "or equal• material, process or article that may be substituted. Data required to substantiate requests for substitutions of an "or equal" material, process or article data shall include a signed affidavit from Contractor stating that, and describing how, the substituted "or equal" material, process or article Is equivalent to that specified In every way except as listed on the affidavit. Substantiating data shall include any and all Illustrations,· specifications, and other relevant data including catalog information which describes the requested substituted "or equal" material, process or article, and substantiates that it Is an "or equal" to the material, process or article. The substantiating data must also include information regarding the durablllty and llfecycle SS4S2.0ISI0\32977834.2
7 cost of the requested substituted "or equal" material, process or article. Fallure to submit all the required substantiating data, including the signed affidavit, to the City in a timely fashion will result in the rejection of the proposed substitution.

Contractor shall bear all of the City's costs associated with the review of substitution requests. Contractor shall be responsible for all costs related to a substituted 1 'or
equal" material, process or article. Contractor Is directed to the Special Conditions (if any) to review any findings made pursuant to Public Contract Code section 3400.

3.3 Period of Performance.

3.3.1 Contract Time. Contractor shall perform and complete all Work under this Contract within 10 working days on a time and materials basis, beginning the effective date of the Notice to Proceed ("Contract Time"). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the City.

Such schedules or milestones may be Included as part of Exhibits "A" or "B" attached hereto, or may be provided separately In writing to Contractor ..
3,3.2 Force Majeure. Neither City nor Contractor-shall be considered in default of this Contract for delays In performance caused by circumstances beyond the reasonable control of the non .. performing party. For purposes of this Contract, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; pandemics or epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. Should such circumstances occur, the non~ performing party shall, within a reasonable time of being prevented from performing, glve written notice to th.e other party describing the circumstances preventing continued performance and the efforts being made to ·resume performance of this Contract. Contractor's exclusive remedy in the event of delay covered under this section shall be an extension of the Contract Time.

3.3.3 Liquidated Damages,

3.4 Standard of Performance: Performance of Employees. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline In the State Qf California. Contractor represents and maintains that it is s.kllled In the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are l.egally required to perform the Work, Including any required business license, and that such ltcenses and approvals shall be maintained throughout the term of this C.ontract. As provided for in the Indemnification provisions of this Contract, Contractor shall perform, at Its own cost and expense and without reimbursement from the City, any work necessary to correct errors or omissions which are caused solely by Contractor's failure to comply with the standard of care provided for herein. Any employee who is determined by the City to be uncooperative, Incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work Ip a manner consistent with the terms and conditions of this Agreement and acceptable to the City. shall be promptly removed from the Project by Contractor and shall not be r~employed on the Work.

SS4S2.01Sl002917834.2
8 3.5 Control and Payment of Subordinates: Contractual Relationship. City retains Contractor on an independent contractor basis and Contractor is not an employee of City. Any additronal personnel performing the work governed by this Contract on behalf of Contractor shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Contract and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers' compensation insurance.

3.6 City's Basic Obligation. City agrees to engage and does hereby engage Contractor as an Independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance by Contractor of the services and obligations required by this Contract, the below~ referenced compensation In accordance with compensation provisions set forth In the Contract.

3.7 Compensation and Payment.

3.7.1 Amount of Compensation. As consideration for performance of the Work required herein, City agrees to pay Contractor a Total Contract Price not to exceed Two Hundred Thousand Dollars ($200,000.00) The work will be done by force account (time and materials) under the direction of the Public Works Director/City Engineer.

3.7.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30) or less calendar days, City will arrahge for payment of the Total Contract Price upon completion and approval by City of the Work. If the Work is scheduled for completion in more than thirty (30) calendar days, City will pay Contractor on a mc;mthly basis as provided for herein.

On or· before the fifth (5th) day of each month, Contractor shall submit to the City an Itemized application for payment In the format supplied by the City indicating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which Is required by this Contract and such other documentation as the City may require. The Contractor shall certify that the Work for which payment is requested has been done and that the materials listed are stored where Indicated. Contractor may be required to furnish a detailed schedule of values upon request of the City and In such detail and form as the City shall request, showing the quantities, unit prices, overhead, profit, and all other expenses Involved in order to provide a basis for determining the amount of progress payments.

3.7.3 Prompt Payment. City shall review and pay all progress payment requests in accordance with the provisions set forth In Section 20104.50 of the California Public Contract Code. However, no progress payments will be made for Work not completed In accordance with this Contract. Contractor shall comply with all applicable laws, rules and regulations relating to the proper payment of its employees, subcontractors, suppliers or others.

3.7.4 Contract Retentions. From each approved progress estimate, five percent (5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All Contract retention shall be released and paid to Contractor and subcontractors pursuant to California Public Contract Code Section 7107.

3.7.5 Other Retentions. In addition to Contract retentions, the City may deduct from each progress payment upon written notice to Contractor and Contractor's failure within three (3) business days to commence and continue to cure or perform with diligence and S5452.0 IS 10\32977834.2
9 promptness, an amount necessary to protect City from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by the City in performing any of Contractor's obligations under the Contract which Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) unsatisfactory prosecution of the Work by Contractor; (6) failure of Contractor to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by City during the prosecution of the Work; (7) any sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Contract; and (8) any other sums which the City is entitled to recover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such claims.

3.7.6 Substitutions for Contract Retentions. In accordance with California Public Contract Code Section 22300, the City will permit the substitution of securities for any monies 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 in California as the escrow agent, and thereafter the City shall then pay such monies to Contractor as they come due. Upon satlsf actory completion of the Contract, the securities shall be returned to Contractor. For purposes of this Section and Section 22300 of the Public Contract Code, the term "satisfactory completion of the contract" shall mean the time the City has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement used for the purposes of this Section shall be in the form provided by the City.

3.7.7 Title to Work. As security for partial, progress, or other payments, title to Work for which such payments are made shall pass to the City at the time of payment. To the extent that title has not previously been vested in the City by reason of payments, full title shall pass to the City at delivery of the Work at the destination and time specified In this Contract. Such transferred title shall in each case be good, free and clear from any and all security interests, liens, or other encumbrances. Contractor promises and agrees that It will not pledge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply with the Contract, and shall not relieve Contractor of responsibility for any toss of or damage arising from any lien, security interest, charge or claims upon or against said items resulting solely from Contractor and consistent with the terms and conditions of this Agreement.

3.7.8 Labor and Material Releases. Contractor shall furnish City with labor and material releases from all subcontractors performing work on, or furnishing materials for, the Work governed by this Contract prior to final payment by City.

3.7.9 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 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 "public works" and •maintenance" projects. Since the Services are being performed as part of 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. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the 554S2.0 IS I 0\32977834.2
10 commencement of this Contract upon request. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to Interested parties upon request, and shall post copies at Contractor's principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.
3,7.10 Apprenticeable Crafts. When Contractor employs workmen in an apprentlceable craft or trade, Contractor shall comply with the provisions of Section 1777 .5 of the California Labor Code with respect to the employment of properly registered apprentices upon public works. The primary responsiblllty for compliance with said section for all apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777 .5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.

3.7.11 Hours,ofWork. Contractor Is advised that eight (8) hours labor constitutes a legal day's work. Pursuant to Section 1813 of the California Labor Code,. Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker Is permitted to work more than eight (8) hours in any one calendar day and forty {40) hours In any one calendar week, except when payment for overtime Is made at not less than one and one-half (1-1/2) times the basic rate for that worker.

3. 7.12 Payroll Records. Contractor and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor In the manner provided In Labor Code section 1776. In the event of noncompliance with the requirements of this. section, Contractor shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such Contractor must comply with this section. Should noncompliance still be evident after such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compllance Is effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the. Labor Commissioner. Upon the request of the Division of Apprenticeship Stanclards or the DMsion of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor.

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

3.7.13 Contragtor and Subcontractor Registration., Pursuant to Labor Code sections 1725 .. S and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter Into a contract to perform public work must be registered with the Department of Industrial Relations. No btd will be accepted nor any contract entered Into without proof of the contractor's and subcontractors' current registration with the Department of Industrial SS452.Cil510\32977834.2
11 Relations to petiorm public work. Contractor is directed to review, fill out and execute the Public Works Contractor Registration Certification attached hereto as Exhibit "E" prior to contract execution. 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.

3.7.14 Labor Compliance: Stop Orders. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor's sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor's petiormance 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 liabilfty arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.8 Performance of Work: Jobslte Obligations.

3.8.1 Water Quality Management and Compliance.

3.8.1.1 Water Quality Management and Compliance. 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 of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code§§ 13000-14950); local ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term Is used in the Porter-Cologne Water Quality Control Act, to any ground or surf ace water In the State. ·

3.8.1.2 Compliance with the Statewide Construction General Permit. Contractor shall comply with all conditions of the most recent iteration of the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Construction Activity, issued by the California State Water Resources Control Board ("Permit"). It shall be Contractor's sole responsibility to file a Notice of Intent and procure coverage under the Permit for all construction activity which results In the disturbance of more than one acre of total land area or which is part of a larger common area of development or sale. Prior to Initiating work., Contractor shall be solely responsible for preparing and Implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring, implementing and complying with the provisions of the Permit and the SWPPP, Including the standard provisions, and monitoring and reporting requirements as required by the Permit. The Permit requires the SWPPP to be a "living document" that changes as necessary to meet the conditions and requirements of the job site as It progresses through difference phases of construction and is subject to different weather conditions. It shall be Contractor's sole responsibility to update the SWPPP as necessary to address conditions at the project site.

3.8.1.3 Other Water Quality Rules Regulations and Policies.

Contractor shall comply with the lawful requirements of any applicable municipality, drainage City, SS4S2.0ISI0\32977834.2
12 or local agency 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.

3.8.1.4 Cost of Compliance. [Intentionally omitted].

3.8.1.5 Liability for Non-Compliance. Failure to comply with the Permit Is a violation of federal and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to defend, Indemnify and hold harmless the City and its officials, officers, employees, volunteers and agents for any alleged violations. In addition, City may seek damages from Contractor for any delay in completing the Work in accordance with the Contract, if such delay Is caused by or related to Contractor's failure to comply with the Permit. ·

3.8.1.6 Reservation of Right to Defend. City reserves the right to defend any enforcement action brought against the City for Contractor's failure to comply with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to reimburse the City for the costs (including the City's attorney's fees) associated with, any settlement reached between the City and the relevant enforcement entity.

3.8.1. 7 Training. In addition to the standard of performance requirements set forth rn paragraph 3.4, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them without Impacting water quality In violation of the laws, regulations and policies described in paragraph 3.8.1. Contractor further warrants that it, Its employees and subcontractors will receive adequate training, as detennined by City, regarding the requirements of the laws, regulations and policies described in paragraph 3.8.1 as they may relate to the Work provided under this Agreement. Upon request, City will provide the Contractor with a list of training programs that meet the requirements of this-paragraph.

3.8.2 ~- Contractor shall execute and maintain Its work so as to avoid injury or damage to any person or· property. Contractor shall comply with the requirements of the specifications relating to safety measures applicable In particular operations or kinds of work. In carrying out its Work, Contractor shall at all times be In compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary pre~utlons for the safety of employees appropriate to the nature of the Work and the conditions under which the Work is to be performed. Safety precautions as applicable shall include, but shall not be limited to, adequate life protection and lifesaving equipment; adequate illumination for underground and night operations; instructions in accident prevention for all employees, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the proper inspection and maintenance of all safety measures. Furthermore, Contractor shall prominently display the names and telephone numbers of at least two medical doctors practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.

SS4S2.0I.S 10\32977834,2
13 3.8.3 Laws and Regulations. Contractor shall keep Itself fully Informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Work. If Contractor observes that the·drawings or specifications are at variance with any law, rule or regulation, it shall promptly notify the City In writing. Any necessary changes shall be made by written change order. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law appllcable to the public contracts of a municipality are a part of this C.ontract to the same extent as though set forth herein and will be complied with. Contractor shall defend, Indemnify and hold City, its officials, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Contract, from any claim or liability arising out of any failure or alleged failure to comply with such laws1 rules or regulations.

3.8.4 Permits and Licenses. Contractor shall be responsible for securing City permits and licenses necessary to perform the Work described herein, including, but not limited to, any required business license. While Contractor will not be charged a fee for any City permits, Contractor shall pay the City's business license fee, if any. Any inellglble contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777. 7 may not perform work on this Project.

3.8.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of i::lnY trench or trenches five (5) feet or more in <;lepth, Contractor shall comply with all applicable provisions of the California Labor Code, including Section 6705. To this end, Contractor shall submit for City's review and approval a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.

3.8.6 Hazardous Materials and Differing Conditions. As required by California Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any conditions, notify City of: (1) any material discovered In excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class Ill disposal site; (2) subsurface or latent physical conditions at the site differing from those indicated by City; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ordinarily encountered in such contract work. Upon notification, City shall promptly investigate the conditions to determine whether a change order Is appropriate.

In the event of a dispute, Contractor shall not be excused from any scheduled ·completion date and shall proceed with all Work to be performed under the Contract, but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.

3.8.7 Underground Utility Facilities. To the extent required by Section 4215 of the California Government Code, City shall compensate Contractor for the costs of: (1) locating and repairing damage to underground utility f:aclllties not caused by the failure of Contractor to exercise reasonable care; (2) removing or relo.cating underground utility facilities not indicated in the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall SS452,0 I 51.0\32977834.2
14 not be assessed liquidated damages for delay caused by failure of City to provide for removal or relocation of such utility facilities.

3.8.8 Air Quality. 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 California Air Resources Board (GARB). Although GARB limits and requirements are more broad, Contractor shall specifically be aware of their application to "portable equipment", which definition is considered by GARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by GARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.

3.8.9 State Recycling Mandates. Contractor shall comply with State Recycling Mandates. Any recyclable materials/debris collected by the contractor that can be feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.

3.9 Completion of Work. When Contractor determines that it has completed the Work required herein, Contractor shall so notify City in writing and shall furnish all labor and material releases required by this Contract. City shall thereupon inspect the Work. If the Work is not acceptable to the City, the City shall Indicate to Contractor in writing the specific portions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a reinspection by the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which City may be authorized or directed by law to retain.

Payment of retention proceeds due to Contractor shall be made in accordance with Section 7107 of the California Public Contract Code.

3.1 O Claims: Government Code Claim Compliance.

3.10.1 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 Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.

3.10.2 Claims. For purposes of this Section, "Claim" means a separate demand by the Contractor, after a change order duly requested in accordance with the terms of this Contract has been denied by the City, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an amount the payment of which is disputed by the City. A "Claim" does not include any demand for payment for which the Contractor has failed to provide notice, request a change order, or otherwise failed to follow any procedures contained In the Contract Documents. Claims governed by this Section may not be filed unless and until the Contractor completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and Contractor's request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than fourteen (14) days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim. The. Claim shall be submitted in writing to 5545201510\32977834.2
15 the City and shall include on its first page the following in 16 point capital font: "THIS IS A CLAIM." Furthermore, the claim shall include the documents necessary to substantiate the claim. Nothing in this Section Is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to compensation or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.

3.10.3 Supporting Documentation. The Contractor shall submit all claims in the following format:

3.10.3.1 Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made

3.10.3.2 3.10.3.3

3.10.3.4 3.10.3.5

3.10.3.6 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
Chronology of events and correspondence
Analysis of claim merit
Analysis of claim cost
Time Impact analysis in CPM format

3.10.3.7 If Contractor's claim is based in whole or in part on an allegation of errors or omissions in the Drawings or Specifications for the Project, Contractor shall provide a summary of the percentage of the claim subject to design errors or omissions and shall obtain a certificate of merit in support of the claim of design errors and omissions.

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

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

3.10.4.1 If City needs approval from Its governing body to provide the Contractor a written statement identifying the disputed portion and the undlsputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to 55452.01510\329778:34.2
16 extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, City shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

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

3.10.4.3 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.

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

3.10.6 Mediation. Within 10 business days following the conclusion of the meet and confer conference, If the claim or any portion of the claim remains In dispute, City shall provide the Contractor a written st~tement identifying -the portion of the claim that remains In dispute and the p9rtlon that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after City issues its written statement. Any disputed portion of the claim, as Identified by the Contractor In writing, shall be submitted to nonblnding mediation, with City and the Contractor sharing the associated costs equally. City and Contractor shall mutually agree to a mediator within 1 0 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.

3.10.6.1 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. ·

3.10.6.2 For purposes of this section, mediation _ includes any nonbindlng 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 tlmeframes in this section.

3.10.6.3 Unless otherwise agreed to by 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. ·

3.10.6.4 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.
554S2,0 I SI 0\32971834.2
17 3.1 O. 7 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 91 O) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time 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 or mediation.

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

3.10.8.1 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 these procedures.. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the. submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.

3.10,8.2 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 pertai_ning to judicial arbitration. ·

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

3.10,9 Government Code Claims. In addition to any arid all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City. A Government Code claim must be flied no earlie.r 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 unless a new unrelated claim arises after the Government Code claim Is submitted.

3. 10.10 Non-Waiver. City's failure to respond to a claim from the Contractor within the time periods described In this Section or to otherwise meet the time requirements of this $ection shall result in the claim being deemed rejected in its entirety. City's failure to respond shall not waive City's rights to any subsequent procedures for the resolution of disputed claims. 13 SS4S2.01510\32977834.2
18 3.11 Loss and Damage. Except as may otherwise be limited by law and subject to the provisions set forth in 3.12.3 herein, Contractor shall be responsible for all loss and damage which may arise out of the nature of the Work agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered In the prosecution of the Work until the same is fully completed and accepted by City. In the event of damage proximately caused by an Act of God1 as defined by Section 7105 of the Public Contract Code, the City may terminate this Contract pursuant to Section 3.17 .3.

3.12 Indemnification.

3.12.1 Scope of Indemnity, To the fullest extent permitted by law, Contractor shall defend (with counsel reasonably approved by City), indemnify and hold the City, its officials, 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 negligence or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor's services under this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys' fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor's indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, Injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the City or tt:ie City's agents, servants, or independent contractors who are directly responsible to the City, or for defects in design furnished by those persons.

3.12.2 Additional Indemnity Obligatjons. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or Its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding arising from Contractor's indemnity provisions set forth In section 3.12.1 herein.

Contractor shall also reimburse City for the cost of any settlement paid by City or Its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall Include payment for City's attorney's fees and costs, Including expert witness fees. Contractor shall reimburse City and its officials, employees, agents and authorized volunteers, for any and all legal expenses and costs Incurred by each of them In connection therewith or in enforcing th~ Indemnity herein provided. Contractor's obligation to Indemnify shall not be restricted to insurance proceeds, If any, received by the City, Its officials, employees, agents and authorized volunteers.

3.12.3 City Indemnity Obligations. To the fullest extent permitted by law, City shall defend (with counsel reasonably approved by Contractor), indemnify and hold the Contractor, its officials, employees, agents and authorized volunteers (collectively "Contractor lndemnitees") 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 the landslide which gave rise to the Work of Contractor under thi.s Agreement and the services provided by Contractor herein, any alleged acts, errors or omissions; or willful misconduct of City, Its officials, officers, employees, subcontractors, consultants or agents related thereto, including such claims of the property owner, adjacent property owners and/or the Claims related to the railroad and its related 14 55452.0 IS 10\32977834,2
19 or affiliated entities, including without limitation the payment of all consequential damages, expert witness fees and attorneys' fees and other related costs and expenses, except to the extent caused by the negligence or willful misconduct of Contractor lndemnitees. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, City's indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the Contractor or the Contractor's agents, servants, or independent contractors who are directly responsible to the Contractor', or for defects in design furnished by those persons.

3.12.4 Both acknowledge and agree that to the fullest extent permitted by law, their respective duty to defend is broader than the duty to indemnify under the above provision. Depending on the claim, the defense obligation may include an obligation to provide independent defense counsel in any form or at any stage of an action or proceeding, whether or not liability is established. An allegation or determination that persons or entities other than the indemnifying party are responsible for the claim does not relieve the indemnifying party from its separate and distinct obligation to defend even if the indemnifying party or any third parties assert that liability is caused in part by the negligence or willful misconduct of the indemnified parties. If it is finally adjudicated that liability was caused by the negligence or willful misconduct of the indemnified party, the indemnifying party may submit a claim to the Indemnified party for reimbursement of reasonable attorneys' fees and defense costs in proportion to the parties' comparative liability.

3.13 · Insurance. Contractor agrees to procure and maintain, at Contractor's expense all insurance specified in Exhibit "H" attached hereto and by this reference incorporated herein.

Contractor shall require all subcontractors to carry the same policies and limits of insurance that the Contractor is required to maintain, unless otherwise approved in writing by the City.

3.14 Bond Requirements.

3. 14.1 Payment Bond. If required by law or otherwise specifically requested by City In Exhibit "C" attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Payment Bond in an amount required by the City and in a form provided or approved by.the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.14.2 Performance Bond. If specifically requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Performance Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.14.3 Bond Provisions. Should, in City's sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the effected bond within (ten) 1 0 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Contract until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the Total Contract Price Is increased in accordance with the Contract, Contractor shall, upon request of the City, cause the amount of the bond to be 15 S5452.0 I 5 I0\32977834.2
20 increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. If Contractor fails to furnish any required bond, the City may terminate the Contract for cause.

3.14.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualifled if it Is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.15 Warranty. Contractor warrants all Work under the Contract (which for purposes of this Section shall be deemed to Include unauthorized work which has not been removed and any non-conforming materials incorporated into the Work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated Into the Work, whichever is later) after the date offinal acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Work or non-conformance of the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the tenns of the warranty at Its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency.

In addition, Contractor shall, at Its sole cost and expense, repair and replace any portions of the Work damaged by its defective Work or which becomes damaged in the course of repairing or replacing defective Work. For any Work so 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. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necess1;1ry to gain access, shall be the sole responsibility of Contractor.

All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the Work, whethe'r express or Implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, If necessary, on behalf of the City. In the event that Contractor fails to perform Its obligations under this Section, or under any other warranty or guaranty under this contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-confonning 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 upon demand.

3.16 Employee/Labor Certifications.
· 3.16.1 Contractor's Labor Certification. By its signature hereunder, Contractor certifies that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the perfonnance of the Work. A certification fonn for this purpose, which is attached to this Contract as Exhibit MD" and Incorporated herein by reference, shall be executed si·multaneously with this Contract.

3.16.2 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be 16 .SS452.0 IS 10\329778:W.2
21 limited to, all activities related to Initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

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

3.17 General Provisions.

3.17.1 City's Representative. The City hereby designates the General Manager, or his or her designee, to act as Its representative for the performance of this Contract ("City's Representative"). City's Representative shall have the power to act on behalf of the City for all purposes under this Contract. Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee.

3.17 .2 Contractor's Representative. Before starting the Work, Contractor shall subml.t in writing the name, qualifications and experience of its proposed representative who shall be subject to the review and approval of the City ("'Contractor's Representative"). Following approval by the City, Contractor's Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Contract. Contractor's Representative shall supervise and direct the Work, using his best skill and attention, and shall be responsible for all construction means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Contract. Contractor's Representative shall devote full time to the Project and either he or his designee, who shall be acceptable lo the City, shall be present at the Work site at all times that any Work Is In progress and at any time that any employee or subcontractor of Contractor is present at the Work site. Arrangements for responsible supervision, acceptable to the City, shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor's Representative, Contractor shall provide the information specified above and obtain the City's written approval.

3.17.3 Termination. This Contract may be terminated by City at any time, either with our without cause, by giving Contractor three (3) days advance written notice. In the event of termination by City for any reason other than the fault of Contractor, City shall pay .Contractor for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, City may upon two (2) business days written notice from City and failure of Contractor to commence and continue correction of such breach with diligence and promptness, terminate the Contract, may reduce payment to Contractor in the amount necessary to offset City's resulting damages, and may pursue any other available recourse against Contractor. Contractor may not terminate this Contract except for cause, In the event this Contract is termihated in whole or in part as provided, City may procure, upon such terms and In such manner as It may determine appropriate, services similar to those terminated. Further, if this Contract Is terminated as provided, City may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by Contractor In connection with its performance of this Contract.

3.17.4 Contract Interpretation. Should any question arise regarding the meaning or Import of any of the provisions of this Contract or written or oral instructions from City, the matter shall be referred to City's Representative, whose decision shall be binding upon Contractor. 17 55452.0ISI0\12977834.2
22 Any notice so given shall be considered received by the other Party three (3) days after deposit in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.17.7 Time of Essence. Time is of the essence to all Parties to this Agreement in the performance of this Contract.

3.17.8 Assignment Forbidden. Contractor shall not, either voluntarily or by action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by Contractor herein without the prior written consent of City. If Contractor attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, City may, at Its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to Contractor or its assignee or transferee.

3.17.9 No Third Party Beneficiaries. There are no Intended third party beneficiaries of any right or obligation assumed by the Parties.

3.17.10 Laws, Venue, and Attorneys' Fees. 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 Orange, State of California.

3.17.11 Counterparts. This Contract may be executed in counterparts, each of which shall constitute an original.

3.17.12 Suc.cessors. The Parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.

3.17.14 Solicitation. Contractor maintains and warrants that It has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Contract. Further, Contractor 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 Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to terminate this Contract without liability.

3.17.15 Conflict of Interest. Contractor maintains and warrants that It has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, 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 Contract, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Contract, or obtain any present or anticipated material benefit arising therefrom. In addition, Contractor agrees to file, or to cause its employees or subcontractors to file, a Statement of Economic Interest with the City's Filing Officer as required under state law In the performance of the Work.
19 55452.0 IS I 0\32977834:2
23 3.17.16 Certification of License.

3.17 .16.1 Contractor certifies that as of the date of execution of this Contract, Contractor has a current contractor's license of the classification indicated below under Contractor's signature.

3.17 .16,2 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 .0.

Box 26000, Sacramento, California 95826.

3.17 .17 Authority to Enter Contract. Each Party warrants that the individuals who have signed this Contract have the legal power, right and authority to make this Contract and bind each respective Party.

3.17.18 Entire Contract; Modification. This Contract contains the entire • agreeme·nt of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Contract may only be modified by a writing signed by both Parties.

3.17.19 Non-Waiver. None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

3.17 .20 City's Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project or other projects.

3.17.21 Federal Provisions. When funding for the Services Is provided, in whole or in part, by an agency of the federal government, Contractor shall also fully and adequately comply with the provisions Included in Exhibit "G" (Federal Requirements) attached hereto and incorporated herein by reference ("Federal Requirements"). With respect to any conflict between such Federal Requirements and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control. [SIGNATURES ON NEXT PAGE]
20 SS4S2.0l SI 0\32977834.2
24 IN WITNESS WHEREOF, the parties hereto have caused Lhis Agreement to be duly execut d on the respective dates set forth opposite of their signatures.

ATTEST:

CITY CLERI( of the City of
San Clemente, California
APPROVED AS TO FORM:

CITY OF SAN ;J;mrz;,11
By: __ ~~--~--------
Andy f-Iall, City Manager
Dated: _____ 0 ,,,...,,, __
--- -=J
~ ___ , 2023
;!&=~Cf~
lfuz; eth A. Mitchell, City Attorney

APPROVED AS TO AV AILABTLITY
OF FIJNDIN~-
/;W~
,
Finance Authorization
A;{nce Diver fied Ente1prises, Inc.

By: Joan Gren! e
Its: Chief Executive Officer/Secretary
Dated: b/2'1 /2 , 2023
55452.01510\32977834.2
y: Evan Grenke
Its: Chief Financial Officer
Dated:S - d- d-- _,, 2023
21 25
S5452.01.'i I 0\32977834;2
EXHIBIT "A"

SERVICES/ SCHEDULE
22 26
55452.01510\32977834.2
EXHIBIT "B"

PLANS AND SPECIFICATIONS

NOT APPLICABLE
-23-
27 ARTICLE 1. BONDS
EXHIBIT "C"

SPECIAL CONDITIONS
As soon as possible and in any event within 24 hours of starting work, the Contractor shall deliver to the City four identical counterparts of the Performance Bond and Payment Bond on the forms supplied by the City and included as Exhibit "F" to the Contract. The surety supplying the bond must be an admitted surety Insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the City. The Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total Contract Price.
-24-
55452.01510\32977834.2
28 EXHIBIT "D"

WORKERS COMPENSATION INSURANCE CERTIFICATION

WORKERS' COMPENSATION DECLARATION
1 hereby affirm under penalty of pe1:jury one of the following declarations:
(ONE OF THE BOXES BELOW MUST BE CHECI(ED)
r have and will maintain a certificate of consent from the California Labo I' Commission to self~insure for workers' compensation, as provided for by Section 3700 of theLabot· Code, for the performance of the work to be performed under this contract.

I have and will maintain workers' compensation insurance, as 1·equired by Section 3700 of the Labor Code, for the performance of the work to be performed under this · contract. My workers' compensation insurance carrier and policy number are:

Carrier US Insurance Services, LLC
PolicyNumber_C_5_1_26_8_3_4_9 _____________ _
I I ce1tify that, in the performance of the work under this Agreement, I shall not employ any person in any manner so as to become subject to the workers' compensation laws of California, and I hereby agree to indemnify, defend, and hold harmless the City of San Clemente and all of its officials, employees, and agents from and against any and all claims, liabilities, and losses relating to personal injury or death, economic losses, and prnperty damage al'ising out of my failure to provide such worker's compensation insurance. I further agree that, if J should become subject to the workers' compensation provisions of Section 3700 of the. Labor Code, I shall forthwith comply with those provisions.

WARNING: FAILURE TO SECURE WORKERS' COMPENSATION COVERAGE IS

UNLAWFUL, AND SHALL SUBJECT AN EMPLOYER TO CRIMINAL PENAL TIES AND CIVIL FINES UP TO ONE HUNDRED THOUSAND DOLLARS ($100,000), IN

ADDITION TO THE COST OF COMPENSATION, DAMAGES AS PROVIDED FOR IN SECTION 3706 OF THE LABOR CODE, INTEREST, AND ATTORNEY'S FEES. - 25 - S.5452.0 I 510\32977834.2
29 Dated: 5/22/2023 ,20 __
Consult~
By: Nancy Lund
Office Manager
Title
665 Opper St. Escondido, CA 92029
Address
-26-
55452.0 I 5 I0\329TT834.2
30 EXHIBIT "E"

PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See h!!Q://www.dir.ca.gov/PublicWorks/PublicWorks.html for additional information.

No bid will be accepted nor any contract entered into without proof of the contractor's and subcontractors' current registration with the Department of Industrial Relations to perform public work.

Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relatlons. 1
Name of Contractor: Alliance Diversified Enterprises, Inc.

DIR Registration Number:_1_oo_o_0_1_0_48_1 ______ _
DIR Registration Expiration:_6_/3_0_/2_0_2_5 ______ _
Small Project Exemption: __ Yes or __ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further acknowledges:
• Contractor shall maintain a current DIR registration for the duration of the project. • Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project. • Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non'"r onsive.

Name and Title Nancy Lund Office Manager
Dated 5/22/2023
1 rfthe Project is exempt from the contractor registration requirements pursuant to the small project exemption under Labor Code Sections 1725.5 and 1771.1, please mark "Yes• in response to "Small Project Exemption.•
-27 - 55452.01510\32977834.2
31 EXHIBIT "F"

PAYMENT AND PERFORMANCE BONDS
- 28 - S54S2.0lS I 0\32977834.2
32 PERFORMANCE BOND
l<NOW ALL PERSONS BY THESE PRESENTS:

Bond # 5070931
Premium: $2,880
THAT WHEREAS, the City of San Clemente (hereinafter referred to as "City") has awarded to Amance Diversified Enterprises, Inc., (hereinafter referred to as the "Contractor") an agreement for Casa Romantica §!ope StabilizaUgn Repair (hereinafter referred to as the "Pl'Oject"). ·
WHEREAS, the work to be performed by the Contractor Is more particularly set forth in the Contract Documents for the Project dated _______ , (hereinafter referred to as "Contract Documents"), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor Is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

Alliance Diversified
NOW, THEREFORE, we, Enterprlses, Inc. the undersigned Contractor and Great American Insurance Company as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City In the sum of two hundred thousand & 0011 oo DOLLARS, ($ 200.000.00 ), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, Jointly and severally, firrnly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or Its heirs, executors, administrators, successors or assigns, shall In aU things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on Us part, to be kept and performed at the time and in the manner therein specified, and In all respects according to their intent and meaning; and shall faithfully fulfill all obligations Including the one-year guarantee of all materials and workmanship; and shall Indemnify and save harmless the City, its officers and agents, as stipulated In said Contract Documents, then this obligation shall become null and void; otherwise It shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for In the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time If Contractor shall fall to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City's rights or the Contractor or Surety's obligations under the Contract, law or equity, Including, but not limited to, California Code of Civil Procedure section 337.15.

Whenever Contractor shall be, and is declared by the City to be, In default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City's option:
-29-
S$4S2.0ISI0\32977834.2
33 ('l) Tal<e over and complete the Project in accorchnce witl1 all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surely and the City, and mal<e available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of tile con tract price, including other costs and damages for which Surety may be liable. The term "balance of the contract price" as used in thi s paragraph shall mean Ille total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant lo the Contract Documents.
(3) Permit the City lo complete tile Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay tile cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term "balance of the contract price" as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to th e Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of ?efault by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the Cily, when declaring the Contractor in default, notifies Surely of the City's objection to Contractor's further participation in the completion of the Project.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this 25th day of May , 2023).
(Corporate Seal) Alliance Diversified Enterprises, Inc.

Title JP • IJp
- 30 - 55452.0 I 510\32977834.2
34 Great America Insurance Company
(Corporate Seai)
By ...,C,=r----------.:!=-.c...:::.'-""~------
Spen
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority altached.
(Attach Attorney-in-Fact Certificate) Title Attorney-In-Fact/ Spencer Flake The rate of premium on this bond is $ 14.4 per thousand. he total amount of premium charges, $~2= 88=0~.o=o~--------- (The above must be filled in by corporate attorney.)

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety) Great American Insurance Company - Bond Claims (Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety and
Agent or Representative for service
of process in California)
P.O. Box 2119
Cincinnati OH 45201
Culbertson Insurance Services, Inc.
5500 E. Santa Ana Canyon Rd. #201
Anaheim, CA 92807
Surety: (714) 740-2400
Agent: (714) 921-0530
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
- 31 - 55452.0ISI0\329"/7834.2
35 Notary Acknowledgment
A notary public or other oHicer completing this certificate verifies only the Identity of the individual who signed the document to which this certificate is attached, ana not the truthfulness, accuracy, or validity of that document.
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 capaclty(ies), and that by his/her/their slgnature(s) on the instrument the person{s), or the entity upon behalf of which the person(s) acted, executed the Instrument.

I certlry under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct.

OPTIONAL
Though the lnfonuatJon below Is not required by law, it may prove valuable lo persons relylng on the document and could prewnt fraudulent removal end reattachment of this fom1 lo anolhor document.

CAPACITY CLAIMED BY SIGNER
D Individual
□ Corporate Officer
D Partner(s)
o Attorney-In-Fact
D Trustee(s)
D Guardian/Conservator
Other:

Signer Is representing:

Name Of Person(s) Or
4875-3807-1395 v4
S$4S2,0I SI 0\12977834.2
D Limited
D General

DESCRIPTION OF ATTACHED DOCUMENT
TIiie or Type of
Number or
Date of
Stgner(s) Other Than Named Aooolc
- 32 -
36 ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only tl,e identity of the individual who signed the document to which this ceriificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of Orange
On 5/25/2023 before me, Heather Willis, Notary Public
(insert name and title of the officer)
personally appeared _S_p_e_n~c_e_r~F_la_k_e ____________________ _ 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 PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

HEATHER WILLIS
WITNESS my hand and official seal. COMM. #2334057 (I)
NOTARY PUBLIC· CALIFORNIA~
ORANGE COIJNW _.

Signature -~M-=='-"'Y1...,t&<"""'-- 1 .....J."""Jiik: c....=;; • '-'-'-''--. __ _ l,IY COW,! EXPiRES SEPIEIIOER 25. 2024 I uvooooVQL
(Seal)
37 GREAT AMERICA!\! INSURANCE COMPANY®
Administrative Office: 30"1 E 4TI-I STREET e CINCINNATI, 01-110 45202 513-369-5000 The number of persons authorized by
th is power of attorney is not more than FIVE
No. 0 20942

POWER OF ATTORNEY
FAX 5"13-723-2740
KNOW ALL MEN BYTTTES!i: PllESIJ:NTS: That the GR EAT AMERICAN INSURANCE COMPANY, a corporal ion organi zed nncl ex isting under llll(f by virlue oflhe laws of the State of Ohio, docs hereby nomi nate, couslitulc nml appoint lhe person or pe rsrn1 s uamert below, ench indivichmlly if ntorc than one is nnrncd, its tr\le ;1ml lnwfu l at1urncy-i 11 -fac1, for it and in its name, pince and stead to exec\lle un bchalfof lhc said Co111 p11uy, ns surety, 011 y one! nil bonds, undertaki ngs and co111rnc1s of surelyship, or other written obligations in the nah1r~ thereof; provided lhnl the liability of lhc s.1 id Company 011 any such bond, u11 derlnki 11g or contrncl of surelyship executed under this au thority shall nol exceed lhc Ii mil slated below.

DAVID L. CULBERTSON
CHARLES L. FLAl<E
SPENCER FLAl<E
Name HEATI-IER WILLIS

LEXIE SI-IERWOOD
Address
ALL OF

ANAHEIM,
CALIFOliNIA
Umit or Power
ALL
$·I 00,000,000.00
This Power of Attorney revokes all previous powers issued on behalfofthc ntlorncy(s)-in-fact uamed above. fN WITNESS WHEREOF the GREAT AMERfCAN fNSURANCE COMPANY hns cnused these presents lo lie signed and allestcd by its appropriate officers and its corporate seal herennto affixed th is 0TH day of SEPTEMBER , 2020 Anes< ~'-- t:. ]t GREATAM£RICA"}f!;J77ilWJS
;fssistanf Secre.tmJ'
STATE OF OHIO, COUNTY OF HAMILTON - ss: MARKVICARIO(877-377-24os) On this 8TH day of SEPTEMBER , 2020 , before me personnlly appeared MARK VICJ\R.1O, to me known, boing duly sworn, deposes and says that he resides in Cincinnati, Ohio, that he is a Divisional Senior Vice President of the Bond Divisiou of Great American Insurance Cu111pa11y, the Company described in and wlticb executed lhe above instmmc11t; Uiat he knows the seal ofU1c said Company; that the seal affixed Lo Lhe said instrument is such corporate seal; thal it was so nffixcd by authority ufhis o-tlice under lhc By-Laws of said Company, and that be signed his name thereto by like authority.

SUSAN A KOHORST
Hotary Publ\c
State of Ohio
My Comm. Expires
May 18, 2025
This Power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors ofGreatAmericnn Insurance Company by unanimous written consent dated June 9, 2008.

RESOLVED: Thal rhe Divisional Pre,1·ide11t, the several Divisional Se11iol" Vice Pl"esidents, Divisional Vice Preside11rs and Divisunal ,/1,·sislcml Vice Preside111s, or any one of 1he111, be and hereby is authorized, fiw11 time to lime, lo appoint one or 1110/"e A ttomeys-ill-Facl to exec11le 011 behalf of rhe Company, as surety, any a11d all bonds, u11dertaki11gs a11d contracts ofsuretyship, or other writ/en obligatio11s i11 the 11a111re thereof to prescribe their re.,pective duties cmd tl,e respective limits of their authority; and to revoke a11y such appoillfment at a11y time.

RESOLVED FURTHER: Tl1al the Company seal and the signature of m1y of the aforesaid o_fficers and a11y Secrerwy or Assis tam SecretmJ1 of tlie Company may be affixed by facsimile lo any powe,- of a/lomey or ce,-tificate of either give11 for the exerntio11 of any bond, undertaking, contract of :mretyship, or other writte11 obliga!io11 in the nature thereof. suc/1 signature a11d seal when .fo used being hereby adopled by the Company as rhe original signalUre of .rncl1 officer and the original seal of the Company, to be valid a11d bi11di11g upon /he Company with Ifie samr: farce and effect as though mammlly affixed.

CERTIFICATION
I, STEPHEN C. BERAHA, Assistant Secretary of Great American Insurance Company, do hereby ccrti fy that the foregoiug Power of Attorney and the Resolutions of the Board of Directors of June 9, 2008 have not been revoked and are now in full force and effect.

Signed and sealed this 25th day of May 2023
4'--t:. :E _____ _ A:tsislmrl Sec1r!lmy
S1029AH (03/20)
38 PAYMENT BOND
l<NOW ALL. MEN BY THESE PRESENTS That
Bond# 5070931
Premium: Included in
Performance Bond·
WHEREAS, the City of San Clemente (heroinafler designated as the "City"), by action lal<en or a resolution passed _______ , 20_has awarded to Alliance Diversified Enterprises, Inc. hereinafter designated as the "Principal," a contract for the work described as follows:
__ C'-"a""""'s-'-a;....;.R.... o ___ m ___a=n'"""tc..cic ..... a-'S'-'-lo...,p"'"'e.......;;.S=ta=b=il=iz=at=io=n..:....:....:R=e=pa=i.,__r ______ (the "Project"); and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated ________ ("Contract Documents"), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal Is required to furnish a bond in connection with said contract; providing that If said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used In, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and Its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and Great American Insurance Company as Surety, are held and firmly bound unto the City in the penal sum of two hundred thousand & 00/100 _______ Dollars ($200,000.00 ) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or sureties will pay for the same, In an amount not exceeding the sum herein above specified.

This bond shall Inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns In any suit brought upon this bond.

It Is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of Improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or - 33 - .SS4.S2.0l.s lO\J2977834.2
39 subsequent in the bond attempting to limit the rigl1t of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking lo recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumst,rnccs shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but tlie sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition , alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this 25th day of May , 2023 .
(Corporate Seal) Alliance Diversified Enterprises, Inc.

Title _vf---=----~-=-------- - Great American Insurance Company (Corporate Seal) Surety
By ~
Title Attorney-In-Fact I Spencer Flake
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
- 34 - 55452.01510\32977834.2
40 Notary Acknowledgment
A notary public or other ofricei· completing this certificate verifies only the Identity of the individual who signed tho document lo which this certificate Is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNI~ , {)
COUNTY OF S.AN ./,) I 'F
On l{Ay e me, -r--'----''-----'-"?+r,..,._'--L_JA. __ __,_ __ , Notary Public, personally appeare& _.::1...w~::._,ji...:::::;i,rp~!!&!~------+-' ho 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 )1 and that by his/her/their slgnature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

HAHCY A. LUND
Notary Public · ulifo,ni•
San Di"° County
Though the /11fom1atlon below Is not required by law, II may prove valuable to porsons relying 011 the document and could prevent fraudulent removal and reattachment of this fom1 to another document.

CAPACll"Y CLAIMED BY SIGNER
a Individual
a Corporate Orflcer
a Partner(s)
D Attorney-In-Fact
0 Trustee(s)
□ Guardian/Conservator
Other:

Signer is representing:

Name or Person(s) or
4860-7008-9059 v1
SS S2.0 IS I 0\3297713 .2
D Limited
□ General

DESCRIPTION OF ATTACHED DOCUMENT
Title or Type or
Number or
Date or
Slgner(s) Other Than Named /VxNe
- 35-
41 ACKNOWLEDGMENT
A notary public 01· 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 Orange
on 5/ 25/ 2023 before me, Heather Willis, Notary Public ----------- (insert name and title of the officer) personally appeared _ S_p_e_n_c_e_r _Fla__k_e ___________________ _ 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 PENAl.:TY OF PERJURY under the laws of the State of California that tl1e foregoing paragraph is true and correct.

WITNESS my hand and official seal. HEATHER WILLIS
COMM. # 2334057 W
' NOTARY PUBLIC · CALIFORNIA~
ORANGE COUMTl' ~
Signature_~~~~-~--~~-·-=~--- · (Seal)
~~~,, t.\Y COMM EXPIRES SEP!Etwen 25, 2024
42 GREA: AMERICAN INSURANCE COMPANY®
Administrative Office: 301 E 4TH S REET (D CINCINNATI, OHIO 45202 Cl 513-369-5000 The number of persons authorized by
I his power of attorney is not more lhan FIVE
No. 0 20942

POWER OF ATTORNEY
FAX 513-723-2740
KNOW ALL MEN BVTfffiSE PRESENTS: That lhe GR.EAT AMERICAN INSURANCE CO!vTT'ANY, n corporation organized and existing under nnd by virtue of the laws of lhe State of Ohio, does hereby nomiuale, cons1i1u1e 1md appoinl lhe person or µersous 11 ,11ned below, ench individually if more than one is n:11 necl, ils t111 c and lmvfill nttorney-in-facl, for ii and in its n:1111 ·, pl.ice and sleacl to cxcc11tc on l>chalr of the sa id Company, as surely, any nnd all bouds, unclcrtnkings and contracts of suretyship, or olher written obligations in the nnturc lhcr.:of; provided lhilt the liability of the said Company on any such bond, nndertnkiug or contrnct or surctyship executed under I his authority shall nol exceed the limit stntcd below.

DAVID L. CULBERTSOM
CHARLES L. FLAl<E
SPENCER FLAl(E
Name

HEATH ER WILLIS

LEXIE SHERWOOD
Address
ALL OF

ANAHEIM,

CALIFORNIA
Limil of Power
ALL
$100,000,000.00
This Power of Attorney revokes nll previous powers issued on behalf of the attorney(s)-i11 -fac1 named above.

TN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to lie signed and attested by its approprialc officers and its corporntc seal liercunto atlixed this 8TH day of SEPTEMBER , 2020 A<>e,< ~(_ e. ~-
GREATAME~CA"}ff ;[p~
Assisla111 Secrntmy /Jii•isiomrl Senior Vir.e Prc.sidaut STATE OF OHIO, COUNTY OF HAMIL TON • ss: MARK VICARIO (077-377-2405) On this 8TH day of SEPTEMBER , 2020 , before me personally appcnrcd MARK VICARIO, to me known, being du ly sworn, deposes and says lhat he resides in Cincinnati, Ohio, that he is a Divisional Senior Vice President of the Bond Division of Great American lnsw·ance Company, the Company described in and which executed the above instnuuent; that he knows the seal of the said Company; Lhal the seal affixed Lo the said instrument is such co111orale seal; that it was so affixed by authority of his office under the By-Laws of said Company, and Lhal he signed his 1u1111e thereto by like authority.

SUSAH A K0H0RST
Notary Public
State of Ohio
My Comm. Expire-.

May 18, 2025
This Power of Attorney is granted by authority oft he following resolutions adopted by the Board of Directors of Great American lnsurnnce Company by unanimous writte11 consent dated June 9, 2008 .

RESOLVED: That the Divisional President. the several Divisional Senior Vice Presidents, Divisional Vice Presidents and Diviso11a/ Assisrcmt Vice Presidents, or any one of them, be and hereby is authorized, fi-0111 time lo time, to appoint one or more Attomeys-in-Fact to execute on behalf of the Company. as surety, auy and afl bonds, 1111dertaki11gs and co11tracls of suretyship, or other wriueu ohligations in the nature thereof; to prescribe their respective d111ies and the respective limits of their authority; and to revoke any such appoi11lme11t at any lime.

RESOLVED FURTHER: That rhe Company seal and the signature of m1y of the aforesaid officers cmd cmy SecrefWJ' or Assistant SecretmJ• of the Company 1110)' be affixed by facsimile to any power of attomey or certificate of either given for the execution of any bond, 1111dertaking, co11trnct of.rnretysl,ip, or other 1111"ifle11 obligatio11 in the nature thereof. such signature mu/ seal when so used being hereby adopted by the Compcmy as the original signature of such officer and the original seal of the Compm1y, to be valid and bi11di11gupo11 the Company with the same force and effecl as though 111m111al/y alfi.ted.

CERTIFICATION
I, STEPHEN C. BERA HA, Assistant Secretary of Great American Insurance Company, do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of June 9, 2008 have not been revoked and are now in full force and effect.

Signed and sealed this 25th day of May 2023
$1029AH (03/20)
43 NOT APPLICABLE
554S2.01510\32977834.2
EXHIBIT "G"

FEDERAL REQUIREMENTS
-36-
44 EXHIBIT "H"

INSURANCE REQUIREMENTS

3.13 Insurance.

3.13.1 Time for Compliance. Contractor shall not commence work under this Contract until It has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract as required In section 1.1.12 of this agreement.

3.13.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Contract for work to be performed hereunder, and without limiting the indemnity provisions of the Contract, the Contractor, · in partial performance of its obligations under such Contract, shall procure and maintain in full force. and effect during the term of the Contract the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Contractor agrees to amend, supplement or endorse the policies to do so. (A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, and shall be no less than $2,000,000 per occurrence and no less than $4,000,000 in the general aggregate. Defense costs shall be paid In addition to the limits.

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; or (3) contain any other exclusion contrary to the Contract.
(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering •Any Auto" (Symbol 1 ), or the exact equivalent, covering bodily Injury and property damage for all activities shall be in an amount of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.
(D) Builder's Risk Insurance ["All Risk"]: The City has obtained Builder's Risk ["All Risk"] extended coverage Insurance for the Project. Contractor shall NOT procure Builder's Risk rAII Risk•] insurance for this Project, and shall NOT Include the cost of sald coverage in its bid price/the Contract Price.
(E) Contractors Pollution LlabUity: Contractors Pollution Liability Insurance covering all of the Contractor's operations to Include onsite and offsite coverage for bodily injury (including death and mental anguish), property damage, defense costs and cleanup costs with limits not less than $2,000,000 per loss and $4,000,000 total all losses. The policy shall contain no endorsements or provisions limiting contractual liability or coverage for cross liability of claims or suits by one Insured against another. If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Contract and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Contract. - 37 - 55452,01510\32977834.2
45 3.13.3 Endorsements. Required insurance policies shall contain the following provisions, or Contractor shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability and Contractor's Pollution Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Contract.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Contractor; or (4) contain any other exclusions contrary to the terms of purposes of this Contract. For all policies of Commercial General Liability insurance, Contractor shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10} days shall be allowed for non-payment of premium. (B) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (C) Workers' Compensation:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents and volunteers.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30} day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

3.13.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability, Automobile Liability insurance (if required) shall be primary and any other insurance, deductible, or self-Insurance maintained by the City, its officials, officers, employees agents or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.13.5 Waiver of Subrogation. All policies of Commercial General Liability, Automobile Liability Insurance (If required) shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents, and 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 City, and shall require similar written express waivers and Insurance clauses from each of its subcontractors. - 38 - SS452.0 IS I 0\329n834.2
46 3.13.6 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention in excess of $5,000 must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-Insured retention.

3.13.7 Evidence of Insurance. The Contractor, concurrently with the execution of the Contract, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with · all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on Its behalf. At least fifteen ( 15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, and not replaced immediately so as to avoid a lapse in the required coverage, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.13.8 Failure to Maintain Coverage. In the event any policy of insurance required under this Contract does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, 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 Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract, effective upon notice.

3.13.9 Acceptability of Insurers. 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 authorized to transact 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.

3.13.10 Enforcement of Contract Provisions (non estoppal), Contractor acknowledges and agrees that actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.13.11 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

3.13.12 Insurance for Subcontractors. Contractor shall include all Subcontractors as additional insureds under the Contractor's policies, or the Contractor shall be responsible for causing Subcontractors to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, Its officials, officers, employees, agents and volunteers as additional insureds to the Subcontractor's policies. All policies of Commercial General Liability insurance provided by Subcontractors shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13. Contractor shall not allow any Subcontractor to commence work until it has received satisfactory evidence of Subcontractor's compliance with all insurance SS4S2.0I SI 0\32977834.2
47 requirements under this Contract, to the extent applicable. The Contractor shall provide satisfactory evidence of compliance with this section upon request of the City. -40-
5545201510\32977834.2
48 ALLIDIV-01 JULIET
ACORD" CERTIFICATE OF LIABILITY INSURANCE I

DATE (MMIDDIYYYY)
~- 5/11/2023
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder isan ADDITIONAL INSURED, the pollcy(les) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieli of such endorsement(s).

PRODUCER ~ffif:'CT
Snaf p & Associates Insurance Services, LLC
383 Camino Del Rio, N. ste. 310 r:c?,N~o,Ext): (619) 908-3100 J Ft~, No):(619) 908-3110 San Diego, CA 92108 l~~s: Service~snappins.com
INSURERISl AFFORDING COVERAGE NAIC#
1NSURERA :Champlain Soecialty Insurance Company 16834
INSURED 1NsuRERa :American summit Insurance Company 19623 Alliance Diversified Enterprises, Inc. INSURER c : Crum & Forster Soecialtv Ins Co 44520 6650pper st 1NSURERO :Mt. Hawley Insurance co. 37974
Escondido, CA 92029 1NsuRERE, Lloyds of London 15792
INSURERF:

COVERAGES CERTIFICATE NUMBER· REVISION NUMBER·

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQJIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHONN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR TYPE OF INSURANCE AUDL SUBR LTR POLICY NUMBER ,:~~~ l,t~ji!,~ LIMITS INSD Wl/0 A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 - ~ CLAIMS-MADE 0 OCCUR ~~~~%J9E~~~~ence 1 100,000 X CSARCGL000202101 4/3/2023 4/3/2024 $ - 10,000 MED EXP (Any one pers~n) $ - PERS.ONAL &ADV INJJRY $ 1,000,000 - GENIL AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000;000 =7 POLICY [!] ~Bf □ LOC PRODUCTS• COMP/OP AGG $ 2,000,000 OTHER: $
B ~OMO BILE LIABILITY &i~~~~\;if INGLE LIMIT $ 1,000,000 ~
X ANY ALTO X MCA001000155500 10/5/2022 10/5/2023 BODILY INJJRY (Peroerson) $ Ow-JED - SCHEDULED ~
ALTOS ONLY ~
ALTOS BODILY INJJRY {Per acclden!l $
~ ~.Af'soNLY ~ ~roiWJI9 !P~~~~d\ht1'°'MAGE $
$
C UMBRELLA LIAB ~OCCUR EACH OCCURRENCE $ 5,000,000
-X EXCESSLIAB CLAIMS-MADE ~E0123393 4/3/2023 4/3/2024 5,000,000 AGGREGATE $ DED I X I RETEf<TION $ 0 $
WORKERS COMPENSATION l~f~TUTE I I OTHAND EMPLOYERS' LIABILITY ER YIN

ANY PROPRIETORIPARTNERIEXECLJTIVE
□ NIA EL EACH ACCIDENT $ OFFICEJIMEMBE.fi EXQ.UDED7 (Mand Ory in N ) E.L. DISEASE- EA EMPLOYEE $ If yes, describe under DESCRIPTION OF OPERATIONS below E.l, DISEASE- POLICY LIM ff $ D Pollution Liability EGL0010622 4/25/2023 4/25/2024 Occ/Agg 2,000,000 E Motor Truck Cargo B0831TR22180194 2/3/2023 2/3/2024 Cargo 250,000 DESCRIPTION. OF OPERATIONS I LOCATIONS I VEHCLES (ACORD 101, Addltionlll Remarks Schedule, may bt attached If more space Is required) Re: Operations of the mmed insured sull;ect to the terms and conditions of the policy. Los Angeles County Metropolitan Trans. Auth., Burlington Northem Santa Fe Corp., Orange Courty TrlUlsportation Authority, Union Pacific Railroad Company, Riverside County TrlUlsportation Commission, National Railroad Passenger Corp., San Bernardino County Transportlliion Authority, and Ventura County Transportation Commission and their subsidiaries, officlals,and employees are named as adcitional insured on a primary non-contributory basis with respects to the General Liability and Auto policy per the attached endorsements. Waiv• of subrogation applies with respects to the General Liability and Auto policy per the attached endorsements. 30" days' notice of cancellation, 10" day.s• notice of.cancellation in the event of nonpayment of premium.

CERTIFICATE HOLDER CANCELLATION
SH.OULD ANY 01' THE ABOVE Dl!SCRIIS~ POUC:ll!S BE CANCl!LLl!D Hl'OllE Southern Callfornla. Regional Rall Authority (SCRRA) THE EXPIRA.TlON DATE THEREOF, NOTICE WILL ISE DELIVl!RED IN ACCORDANCE WITl'I THE POU CY PROVISIONS.
2700 Melbourne Ave
Pomona; CA 91767
I
ACORD25 (2016/03)
AUTHORIZED.REPRESENTATIVE
~
.
@ 1988~2015 ACORD CORPORATION. All rights reserved,
The ACORD name and logo are reg h.tered marks of ACORD
49 4/6/2023
THIS ENDORSEMENT CHANGES/MODIFIES THE POLICY. PLEASE READ IT CAREFULLY.

AMENDMENT OF LIMITS • DESIGNATED CONSTRUCTION PROJECT(S)

GENERAL AGGREGATE LIMIT
This endorseme·nt changes/modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM
(If no entry appears herein, Information required to complete this endorsement will be shOwn ln the Declarations as applicable to this endorsement.)
$CHEDULE OF DESIGNATED CON$TRUCTION PROJECT($)
MS requtred by written contract signed by both parties and the insured contract is exea.rted pria- to any toss
A. For all sums which the insured becomes legally obligated to pay as damages caused by "occurrences• under COVEFIAGE A BODILY INJURY 4ND PROPERTY DAMAGE LIABILITY (SECTION I .. COVERAGES), which can be attributed only to ongoing operations at a single designated oonstruotiOn project shown in the Schedule above:

1. A separate Designated Construction Project Gener.al Aggregate Limit applies to each designated construction project, and that limit ls equal to the amount shown In the Declarations of this policy.

2. Subject to the Total Policy Aggregate Limit, the Designated Construction ProJeotGeneral Aggregate Limit Is the most we will pay for the sum of all damages under COVERAGE A, except damages because of "bodily injury" or •property damage• included In the •prOOJots-completed operations hazard," regardless of the number of:
a. Insureds;
b. Clair:ns made or •su1ts• brought; or
c. Persons or organizations making claims or bringing "suits."

3. Any payments made under COVERAGE A for damages shall rel:IUce the Designatoo Construotlon Project General Aggregate Limit for that deslgn•ated construction project. Subject to the Polley Aggregate Limit, such payments shall not reduce the General Aggregate Limit shown in the Declarations nor shall they reduce any other Designated Construction Project General Aggregate Limit for any other designated construction project shown in the Schedule above.

4. The limits shown in the Declarations for Each Occurrence continue to apply. However,.instead of being subject to the General Aggregate Limit shown In the Declarations, such limits will be subject to the applicable Designated Construction Project General Aggregate Limit and the Total Policy Aggregate Limit.

B. For all sums which the insured becomes legally obligated to pay as damages caus.ed by ·occurrences• under COVERAGE A BODIL y INJURY AND PROPERTY DAMAGE LIABIUTY (SECTION I - COVERAGES), whioh cannot be attributed only to ongoing operations at a single. designated oonstructlon project shown In. the :Schedule above: · ·

1. Any payments mad.e under COVERAGE Mor·damages shall reduce the amo.unt available under the General Aggregate Limit.or the Procaicts-C.ompleted Operations Aggregate Umlt, whichever ls .applk:able; and

2. Suoh payments shall riot reduce any Designated Construction Projeet General .Aggregate Limit

3. Such payments wlll reduce the Polley Aggregate. Limit.

Cl$ CGl. SCX11 12 15 Page 1 of 2
CIS CGL 8001.rpt
50 4/6'2023
c. When coverage for llabillty arising ol:11 of the "products-completed operations hazard" Is provided, any payments for damage.s because of "bOdlly Injury" or "property damage• included In the "products-completed operatic)ns hazard" will reduce the Products-Completed Operations Aggregate Limit, and not reduce the General Aggregate Llmlt or the Designated Location General Aggregate Limit or the Total Polley Aggregate Limit.

D. The Total Policy Aggregate Limit scheduled in the Declarations of this policy is the most we will pay for the sum of: (a) all damages co11ered under this poficy and falling within the sched.Jled Designated Location(s) General Aggregate. Limits described in Paragraph A. of this endorsement; .and, (b) all damages covered under this policy and falling within the General Aggregate Limit, as described in Paragraph .B. of this endorsement and as set forth in the provisions of Limits of Insurance (SECTION Ill) not otherwise modified by this endorsement The Total Polley Aggregate Limit applies regardless of the sums indicated in the Decl.aratlons for any General Aggregate Limit, or Designated Locatlon(s} General Aggregate Limit, as applicable to all locatlons(s) set forth in the Schedule above. The Total Policy Aggregate Limit applies colleclively, rather than separately, to all of your scheduled locatlOns. The Total Polley Aggregate Limit Is not reduced by payments for damages ooverect under this policy and falling within the "products-completed operations hazard," but such payments will reduce the Prod0cts• Completed Operations Aggregate Limit, as described in Paragraph C. of this endorsement E. For the purposes of this endorsement, DEFINITIONS (SECTION V) Is amended by the addltl.on of the f.ollowlng definition:
"Location" means prenilSes Involving the same or connecting Jots, or premises whose connection Is interrupted only by a street, roadway, waterway or right-of-way of a railroad. · F. The provisions of LIMITS OF INSURANCE (SECTION Ill} not .otherwise modified by this endorsement shall continue to apply as stipulated.

ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.

This endo.rsement Is attached to and forms a part of the Policy as listed in the Declarations Page or Deolaratlons Extension .Schedule, effective on the Inception date of the Polley unless otherwise stated hereln. (The followtng information is reql.!ired only when thls endorsement is issued sl.!bsequent to preparation of the Polley.) Endorsement effective date: 0410312028
Named Insured:

OIS CGL 8(X!)112 15
Polley No;,: E;n<lorl:!ement No.;
CSABCGL00020•2101
Authorized Represen.tatlv~,-· ____________ __
·Page2 of 2
CIS CGL 8001.1pl
51 POLICY NUMBER: CSAR-CGL-0002021 - 01 COMMERCIAL GENERAL LIABILITY CG20100704
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS - SCHEDULED PERSON OR

ORGANIZATION
This endorsement modifies insurance provided under the following:

COMMERCIAL. GENERAL LIABILITY COVERAGE PART

SCHEDULE
Name Of Additional Insured Person(s.)
Or Organization(s): Location(s) Of Covered Operations
Blanket where required by written contract signed by both Arry location where required by written contract parties and the insured contract is executed prior to arry signed by both parties and the insured contract is loss executed prior to any loss
Information reauired to comolete this Schedule if not shown above, will be shown in the Declarations.

A. Section II - Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule., but only
with respect to liability for "bodily injury", "property damage" or "personal and advertising injury''
caused, in whole or in part, by:

1. Your acts or omissions; or
2; The acts or omissions of those acting on your
behalf;
in the 'performance of your ongoing operations for
the additional insured(s) at the location(s) designated above.

B. With respect to the insurance afforded to these
additional insureds, the following additional exclusions apply:

This insurance does not apply to "bodily injury'' or
"property damage" occurring after:

1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance
or repair&) to be performed by or on behalf of
the additional insured(s) at the location of the
covered operafions has been completed; or

2. That portion of ''your work" out of which the
injury or damage arises has been put to its intended use by any person or organization other than .another :contractor or subcontractor engaged in performing operations·for a princfpal as a part of th~ same project.

CG 20100704 @ ISO Prope.rties, Inc., 2004 Page 1 of1 . □ Print [)ate: 41612025:
52 Print li)ate: 41612023
POLICYNUMBERCSAR..CGL-0002O21 • 01 COMMERCIAL GENERAL LIABILITY CG20370413
THIS ENDORSEMENT CHANGES THE POLICY~ PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS - COMPLETED OPERATIONS
This endorsement modifies Insurance provided under the following:

COMMERCIAL GENERAL LIABILrrY COVERAGE PART
PRODUCTS/COMPLEfEDOPERATIONS LIABILITY COVE-RAGE PART

SCHEDULE
Name Of Additional Insured Person(s)
or oraanlzatlon<sl Locano.n And Descript.lon Of ComDleted Oneratlons Blanket where required bywritten co.ntract signed by Any location where required by writte.n contract signed both l)art!es and the insured contr•act Is executed prior PY bOth :Parties and the insured contract Is executed toanyloss pl'ior to any loss
tnfonnatlOn reauired to :comblett this Schedule, if not shown at,o,ve, wilt be shown in the Deolaratl.o'ns.

A.• Secllon I - Who Is An haired 'Is amended to, · · lnolude· as an additional ·insured the persontS) or organizatlon(s) shown ln the Schedule, but only
wl.th respect to liability for "bodUy injury• of
"property damage" caus.ed,. In whole or in part, by
"your work" at the location designated and
described In the Schedule. of this endorsement
.~ormed for that additional Insured and
Included in the "products-completed operations
.hazard".

Hc:,wever:

1. The· Insurance afforded ·to ,su·ch additionaJ
Insured only applie.& to the ettent permitted
by law;arid .

2. If coverage. provided to the additional Insured
is required by a contract or agreement; the
insurance afforded to such additional insured
will no.t be brqader than that which you :are
required by the contract or agreement to
provlde for such additional Insured.
a. With respect to the insurance .afforq• to these
addlttonal Insureds~ the fblloWlng Is added to
Section JU - Limits Of lnsuoiirtce:

If coverage provided to the addltio.nal Insured is
required by a contract or agreement, the most we
will pay on behalf of the additional Insured is the
amount of insurance:

1. Required by the contract or agreement; or
.2 •. Avallable under the . .applicable Limits of
Insurance shown ·in the Declatath>ns;
•whichever Is less.

Tti:ls endorsement shall not increase the applicable
Limits of lnsurtince shown in the Declaratipns.

CG20370413 @ lns:uranc~. Sentices Of:flc;:e,. Inc., 2ott Page 1 of1 53 THIS ENDORSEMENT CHANGES/MODIFIES THE POLICY. PLEASE READ IT CAREFULLY.

PRIMARY AND NON-CONTRIBUTING INSURANCE
This endorsement changes/modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE FORM

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM
To the extent that this insurance is afforded to any additional insured under this policy, SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS, 4. other Insurance, is deleted in its entirety and replaced with the. following condition:

4. other Insurance
If all of the other insurance permits contribution by equal shares, we will follow this method unless the insured is required by written contract signed by both parties, to provide insurance that is primary and non. contributory, and the "insured contract'' is .executed prior to any loss. 1/vhere required by .a written contract signed by both parties, this insurance will be primary arid non.contributing only when and to the extent as required by that contract. However, under the contributory approaeh each insurer contributes equal amounts until it has paid its applicable. limit of insurance or none of the loss remains, whichever comes first.

If any ofthe other .insurance does not permit contrib:ution by equal shares, we will contribute by limits. Under this method, each insurer's share Is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers.

ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.

This endorsement is attached to and forms a part. of the Policy as listed in fhe Declarations Page or Declarations Extension Schedule, effective on the in.caption date of the Policy 1mless.otherwise stated herein. · (The following information is required only when this endorsement is issued subsequent to preparation of the P<:>licy.) Endorsement effective. date: 0410312023
Named Insured:

CIS CGL 40261215
Print Qate: 418/2.0~3
PolioyNo.: .

OSARC.GL000202101
Endorsement No.:

Authorized Representative ______________ _
54 Print Oat,: 41612023
POLICY NUMBER: CSAR-CGL-0002021 - 01 COMMERCIAL GENERAL LIABILITY CG 24040509

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:

COMME.RCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE
Name Of Person Or Organization: As required by written contract signed by both parties and the Insured contract is executed prior to any loss Information reauired to comolete this Schedule, if not shown above, will be shown in the Declarations.

The following is added to Paragraph 8. Transfer Of
Rights Of Recovery Against Others To Us of
Section IV - Conditions:

We waive any right of recovery we may have against
the person or organi2a.tion shown in the Schedule
above because of payments we make for injury or
damage arising out of yaur ongoing operations or
•your work" done under a contract with that person
or organization and Included in the "products•
completed operations hazard", This waiver applies
only to the person or organl2ation shown in the
Schedule above. ·
CG 24040509 @ Insurance Services Offlc:e, Inc., 2008 Page 1 of 1 C 55 THIS ENDORSEMENT CHANGES THE POLICY - PLEASE READ IT CAREFULLY.

BLANKET ADDITIONAL INSURED ENDORSEMENT

PRIMARY
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
With respect to SECTION II - LIABILITY COVERAGE only, Who is An Insured is amended to include as an Additional Insured any person(s) or organization(s) whom you are required to add to this policy as an Additional Insured under a written agreement in effect or becoming effective during the policy period. This insurance applies only to "bodily injury" and "property damage" that occurs subsequent to execution of the written agreement and subsequent to the issuance of a certificate of insurance indicating such person(s) or organization(s) as Additional lnsured(s).

The insurance provided hereby to the Additional lnsured(s) is limited as follows:

1. The coverage afforded hereby to such Additional Insured is limited to imputed liability specifically resulting from the conduct of the Named Insured for which the Additional Insured was held liable.

2. The limits of insurance applicable to the insurance afforded hereby are those specified in the written agreement or in the Declarations or Schedules of this policy, whichever is less. The limits of insurance applicable to the insurance afforded hereby are inclusive and not in addition to the limits of insurance shown in the Declarations or Schedules of this policy.

3. Any coverage provided under this endorsement for any Additional Insured will never be broader than coverage provided to any Named Insured.

Any other policy terms, conditions, limitations, exclusions, and definitions apply to this endorsement.

WIC AUTO 0013 CW (10 17) Page 1 of 1
"Includes copyrighted material of Insurance Services Office, Inc. with Its permission" 56 THIS ENDORSEMENT CHANGES THE POLICY - PLEASE READ IT CAREFULLY.

BLANKET WAIVER OF SUBROGATION
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
We agree to waive any and all subrogation claims or rights of recovery against any person(s) or organization(s) if there is an executed written agreement with that person(s) or organization(s) which requires a Waiver of Subrogation Clause from the Named Insured, except for "losses" which are due in whole or part to the negligence or errors and omissions of such person(s) or organization(s).

All other terms and conditions of the policy remain unchanged.

WIC AUTO CW 0014 (10/17) "Includes copyrighted material of Insurance Services Office, Inc. with its permission" Page 1 of 1 57 AC~•
ALLIOIV-01 JULIET

CERTIFICATE OF LIABILITY INSURANCE I OA'TE (MM/DIYVYVY) ~ 5/11/2023
THIS CERTIFICATE I.S ISSUED AS A MAT'Tl:R OF INFORMATION ONLYANDCONFERS·NO RIGH1$UPON THE CERTIFICATE HOLDER. THIS CERTIFI.CATE DOES NOTAFFIRMATlVELY O.R. NEGATIVELY AMEND, EXTEND O.R ALTER THE COVERAGE AFFORDED BYTHEPOLICIES BELOW; .THIS· CERTIFICATE OF INSURANCE DOES NOT CON.S11TUTE A CONTRACT BElWEEN THE ISSUING'INSURER(S), AUTHORIZED REPR·ESENTATIVE OR PRODUCER, AND TliE CERTIFICATE HOLDER. .

IMPORTANT: ,If the certfflcate holder ls an ADDITIONAL INSURED, the pollcy(les) ml,!st have ADDIT10NAL INSURED provlsions or be endorsed.

If SUBROGATION I.S WAIVED, subject to the terms and conditions of the pollcy, certajn pollcles may require an endorsement. A statement on this certificate cl88s not confer rights to the certificate holder in lieu of such endorsement(s), PRODUCER, A21™1CT
Snac~ & Associates Insurance SerYices, i.LC r~~:o, Extj; (619) 908-3100 I r~a. No):(619) 908-3110 383 Camino Del Rio, N. ste. 310 San Diego, CA 9210.8 lolr•l=•s· Service@snappins;com
INSURER(S) AFFORDING COWRAGEi NAIC.#
INSURER.A :.Chamolain Snecialtv lnsurane~ comoanv 16834 INSURED 1NsuRE11a :American summit Insurance Comoanv 19623 Allraoce. Diversified. Ent•prises, .Inc. JI\ISURER-c::CNm &Forster Soeclalt:v Ins co. ~20 6,6,5 ·()pp•· $1: 1NSLiaeaoiMt. Haw1- Insurance co. 37974 Escon,dldo; CA92029 INtk:iRERE : ;U(WdS of London 15792 .INSURERF:

COVERAGES CERTIFICATE NUMBER· REVISION NUMBER·
TH IS IS TO Cl:RTIFY THAT THE POLICIES OF INSURANCE LISTED BELON HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD

INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOOUMENT WITH RESPECT TO WHICH THIS CERTIFICATE .MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHQMI MAY HAVE BEEN REDUC.ED BY PAID CLAIMS.

INSR TYPEOF ~CE ~ '~ POLICY l!L'MBER POLICVEFF i:~lo~ LIMITS LlR A X COMMERCli\l:. GENERAL LIABILllY
~E
$ 1,000,080
LJ CLAIMSCMADE 0 OCa.JR X: X ~RCGLOOOZ02101 "3/.2023 4/3/2024 ED $ 100.000. ,-.~~-·\" - ,u.o:oo MEO EXP /Anu one Denio;Cll $ - PERSONAL &ADV ifilJJRY $ 1,uuu.uuu - 2,000.000, GEN.'L AGGREGATE LIMIT APPLIES PER: GENEAALAGGREGATE $ ~ P~LICY [Kl ~8f □ LOC PRODUCTS -COMP/OP AGG $ 2,0uu,QOO :OTHER: $
B ~OMOBILE ~IAEIILITY fE~M,,~~~~~INGLELIMIT $ 1,000,000 X ANYAUTO X X A$.CA001000155500 1,0/5/2022 10/5/2023 B00.ILY· INJJRY {P~roersonl $ - O'i\tlED - SCHEDULED AUTOS ONLY - AUTOS BODILY INJJRY IPtr aooldentl $
- ffloNLY - ~r(5§~~ l'JW~'ftf'~GE $
$
C -UMBRELLA LIAB MOCOJR Ff!r.M :OCCURRENCE s 5,000,000 - X SE0.123393 413/2023 4i3/2024 5,000~0.QO :EllCESSJ.IAB, CLAIMS-MADE AGGREGATE $ 'DEO IX ri~e:t'ENTION$ 0 $
WO~m·¢0MP~115'N l~Zr11TE I l~JHAND PLOVERS' ABIL TY Y/N ANY f'ROf'RfETOFil~TN-ER/EXECVfl VE □ N/A E.L. EACH ACCIDENT $
OFFl1JIMtilf · O..U.DED7 (Man ory n l E.L. DISEASE- EA EMPLOYEE $ If yes, describe 'under
DESCRIPTION OF OPERATIONS below E.L. DISl=A~Ei-POLICY· LIMff $ D Pollution Llablllty EGL0010622 4/25/2023 4/25/2024 Occ/Agg 2,000,000 E Motor Tr:uc!< Cargo B0831TR22180194 2/3/2023 2/3/2024 Carg.o 250,000 DESCRIPTION ot=·OP~TIONSI LOCATIONS IV&ICLES !ACORD1Di, Addlllonal Remark1 Sc:hedul•, ·m~ IMiltla.Chtlf If more space la reqlll~ . . . Re: Opm:ationsc,f the nimed inswed .w(>iec:Uo the ,tarms and conditions ofhl policy. City of San Clemente, its dais, offl.~s, ilmployees, agents, m,d · vofu,teers .. nilmed as ilidditional inswed on a.primary non-contribUtory basis. w.ith respects to the General Uability ·ilnd .. Al'ia pciliCl:Y per the attached endorsemem. Waiver of .slibragation 'llpPlies w.ith respects.to thil General Uabllity and Auto policy p.er the attached endorsements. 30"' days' notice of • caricellaaon, 10" dilys'notice of canciellelion in the event of nonpiiyrnent of prenium

CERTIFICATE HOLDER CANCELLATION
SHOULD ANY Of' THE ASOVI DISCRIBED POLICIES BE CANCl!lLLEI) BEFORE City of San Clemente THE EXPIRATION' DATE 1HEREOF, NOTICE WIL~ BE DEUVl!llED IN ACCORDANC:EwiTH.THIPOUCY'PROVISIONS. . . . , .

Attn: Klel Koger
910 Calle Negoclo
San Clemente, CA 92873 Al/THORIZED .REPREIIENTATIYE
ACORD 25 (2016/03)
l ~ @ 198B-2015 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are reg.istered marks. of ACORD 58 4/6/2023
THIS ENDORSEMENT-OHANGES/MODIRES THE POLICY. PLEASE READ IT CAREFULI,. Y.

AMENDMENT OF LIMITS - DESIGNATED CONSTRUCTION PROJECT(S)

GENERAL AGGREGATE LIMIT
Thi$ endorsement change!!/modlfles Insurance provided under the follciWlng:

COMMERCIAL GENERAL LIABILITY· COVERAGE FORM
t;ltno· entty appears herein, ltlfQr.rn.atlon required to complet&th1S endorsement w1u be shoWn In the OectaratlOns as applicable to this endorsement'.)
$CHEDU,LE OF DESIGNATED CQN$TRUCTiON PROJECTtSl
As required by written contract signed by both parties end the Insured contract is executed prior to any loss
A. For all sums Which the Insured becomes legally obllg11tecfte .,- as·-ctamage.s caus,:,d ~ "oQ::otrences• under COVERAGE A BODILY iNJURY 4ND PROPl:ftTY D.QIAGE LIABlUTV (SECTION I - COVERAGES), whlch can .be attrlbUted only to ongoing operatlOns at a single deslgnate.d o.onstructlon project shown In the Sehedule above:

1. A separate Designated Con.structlon Project General Aggregate, Llrtt'rt applies. to each ~signated construction project, and that limit ls.,equal to the amount shown In the Decl.aratlons of this policy.

2. Subject to the Total Pollqy Aggr~l:!,te Limit, the Designatec1Conetruotion Project G81'1er:al Agg~egate Limit is the most we will pay t.or the sum of·all damages under COVERAGE , except damages beeause of "bodity injury" or"pr.oper,y <la.mag..-lnCluded in Die "pro(lJots--cpmpl1:1ted Opef'illtlons hazard,• reigardleSS Of thia number ot:
a. Insureds;_
b. Claims made or "suits" brought; or
c. Persons or organlzatlo11s making .claims or bringing "$uits;"

3. Any payments madt under COVl;RAGE A for damages .shal.1 redi.lce the Designated' Cons\ruotloi'r Project General Aggregate Limit for that designated construction project Subject to the .Policy Aggregate Limit, such payments. shall not reduce the General Aggregate Limit ,shown 1n the Declarations nor •l:lall ti.,.y recluce any other Designated con.struetlon Project General Aggregate Limit tor any other designated construotlon project shown in the Schedule above,
4, The limits shown lri the Declarations for Each Occurrence continue Io apply. Hawever, instead of being subject to the Ge~ral Aggnigate Ltrnlt shown In the Decla,atloJ:181 such limits Will be subject lt> the applicable Designated Construction Prc,ject General AggrEQate: Urnlt and the "Total Policy Aggregate· Llli'llt.

B. For all sums which tha Insured becomes legally obligated. to pay as damages caused· &, "Occurrences· under QOVERAGE A BODILY INll,IAY AND PROPERTY DAMAGE LlABIUTY {SECTJON I - COVERAGES), which cannotbe. attrlluted only to ongoing operalfons ac· a single designated constructlon prQJect. shoWn In the Schedule Eibove: -

1. Any payments made under COVERAGE A for damages shall reduce the amount avallable under the G'eneral Aggregate Umlt.or the Products-Completed Operations Aggregate Limit, whlehever ls .applloable; and

2. Such payments shall not reduce any Designated C-onstruotion Project General AgQregate Limit

3. Such payments will reduce the Policy Aggregate Limit.

CIS CGL 80()11:Z-·15. Page:f of2
CIS CGL 8001.rpt
59 4/6/'2023
c. Wien coverage for llabillty arising out of the ·products•completed operations hazard" Is provided, any payments for dama~s because of "bodily Injury" or "property damage• Included in the "products--completed operations hazard" will reduce the Products-Completed Operations A99regate Limit, and not reduce the General Aggregate Limit or the Designated Looatlon General Aggregate Limit or the Total Policy Aggregate Limit.

D. The Total Policy Aggregate Limit scheduled in the Declarations of this policy is the most we wlll pay for the sum of: (a) all damages covered under this poRcy and falling within the sched.Jled Designated Location(s) General Aggregate Limits described in Paragraph A. d this endorsement; and, (b) atl damages covered under this polloy and falling within the Geaeral Aggregate Limit, as described in Paragraph B. of this endorsement and as set forth in the ptovislons of Llmlts of Insurance (SECTION Ill) not otherwise modified by this endorsement THe Total Policy Aggregate Limit applies regardless of the st.nils indic.ated in the Declarations tor any General Aggregate Limit, or Designated .. Location(s) General Aggregate Umlt, as applicable to all tocatlons(s) set forth in the Schedule above. The Total Policy Aggregate Limit applies collectiVely, rather than separately, to all of your scheduled locations. The Total Polley Aggregate Llmlt ts not reduced by payments for damages covered un~r this policy and falling within the "products-completed operations hazard.," but such payments will reduce the Products· Completed Operations Aggregate Limit, as described in Paragraph C. of this eadorsement.

E. For the porposes of this endorsement, DERNITIONS (SECTION V) ts amended by the addltton of the following definition:
"Looatlon• means premises Involving the same or connecfing lots, or premises whose connection Is. interrupte(j only by a stree~ roadway, waterway or rlght-<>f·way of a railr0iiCt F. The provisions of LIMITS OF INSURAt«:E (SECTION Ill) not otherwise modified by this endorsement shall · CQntinue to apply as stipulated,
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.

This endorsement. 1s attached to and forms a part of the Polley as listed in the Declarations Page or DeclaraUons Extension .Schedule, effective on the Inception date of the Poltoy unless otherwise stated herein. (ThefollOWing information ls required only when this endorsement is Issued subsequent to preparation of the Polley.) Endclreeinent e.ffeotlve date: 04/03/2023
Named Insured:

CIS OOL80011215
Polley No.: EriCIO~ement No.;
OSAROGL000202101
Authorized Represenuu1-.,e._. ____________ _
Page2of 2
CIS CGL 8001.rpt
60 POLICY NUMBER: CSAR..cGL,-OQD202·1 - 01 COMMERCIAL GENERAL LIABILITY CG201007 04
THIS ENDORSEMENT :CHANGES THE POLICY. PLEASE READ JT CARE:FULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS - SCHEDULED PERSON OR

ORGANIZATION
Thfs l!!ndo·rsJameht modifies ilisurance ;provided undet the fbliowlt1g·:

COMMERCIAL GENERAL LIABILITY COVERAGE PART . . .

SCHEDULE
Name.Of AdditionalJnsured Person(s)
Or Organizationrsl: Location(s.) Of Coi.,ered 0Derations Blanket where required by written contract signed by both Any location where required by written contract parties and the insured contract is ·executed prior to any signed by both parties and the insured contract is toss ,executed:pnorto any loss
l.nformation reauired to comolete this Schedule if not shown above will be shown in the. De.clarations.

A. Section H - Who Is . An: Insured Is amended to
Include as an additional ln9ured the person(s) or
organization(s) shown in the S,chedule, but only
With r:e,~t to liabilitv for "t)Qdily inJ4ry', "property damagi" or "personal a:nd · aavertising injury"
caused, inwhole or in part, by:
1, Your acts or omissi.ons; or
2; The a.cts .or omissions .of those acting on your
.b.ehalf;
in the performance of your ongol17g operations for
the .additional insured(s) at the l.oca.tlon(s) designated ~bove, ,B. With: respect to the. insurance afforded to these
,additional insureds, the fb,llowlng additional exolusiom;:~'pply: · This lrisurance does not apply to 11bodily Injury' or
''ptp¢erty dama9e" occurrlr1g,_,after:

1. All work, fnciuding materials, parts or equipment furnished in conMeotlon with such work, on the project ( other than siervice, maintenance
or repairs) to be performed ,QY or on behalf of
the additional insured($) at the location of the
covered operations has been completed; or

2. That portion of ''your work'' out .of which the
l'njury or damage arises has been put to its intended use by any person or organization other than arl()the.r :contractor or subcontractor ·engag,ed fn pelfa:rrtting operations· for ,a principal as a part of th~ same project. ·
CG20100704 ClSOPrope:rties, Inc., 2004 Pag.e1 of1
Print Oat.: 41612023
□
61 Print Date: 41612023
POLICY NUMBER: CSAR~CGL-0002021 - 01 COMMERCIAL GENERAL LIABILITY . CG 20370413 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT' CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR
CONTR.ACTORS - COMPLETED OPERATIONS
This ~rdo~ement modifies Insurance provided under the following:.

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABIUTY COVERAGE PART

SCHEDULE
Name Of Additional Insured Person(s)
or Oraanlzatlon(al Locatl'o.n And Dascrlpt.ion Of eomDleted Oneratlons Blanket where required by written. contract signed by Any location where required by written contract signed both l)llrtles and the insured cOAtract Is 1J)(ecuted prior by both parties and the insured contract Is executed toanyross prier to anf loss
lnformttio11 r~ired to comDlete this Schedufe, it not san above. wm be shown in the Dtolatatlons.

A.. Section I - Wtto Is An Insured is amended to
·. lnclu~e as an addiliona} tnsur"1 the person{s) or
or;anltation(s) .shown In the Schedule, but only
With respect to. liabillty for 'bodily injury" or
"property damage• caused, in who.la or in part, by
"your work" a,t the location .(ieslgnated and
described in the Sehedul& ot this endorsement
P$r:formed for that additional insured and -Included in the "products~comp.leted operations .haZal'd".

Howe•:

1. The Insurance afforded to such additional
Insured onry applies· to lhe sMtent permitted t>y law;and .. . .

2. ff cover.age provided to the additional Insured.
is required by a contract or agreement, the
insurance afforded to such additional Insured
will not be broader than that which you are
required by the contract or agreement to
provide fo.r such additional insured.

B_. \Nith respect to the insurance affc;;n:;led to these addltional lns.ureds, the fotrowtng is added to
·Section Ill - Umtts Of Insurance:

If' coverage provided to the additional insured is
requlrecl l:>y a contract or agreem.en,t the most we
will pay on behalf of the additional Insured is the
amount of insurance:

1. Required by the contract or agreement; or
2, Available und.er the applicable Limits -of
l'nsurance shown in the Delaflllio.ns;
whichever is less.
•nils endorsemeni shall not increase the applicable
Limits of Insurance shown in the Declarations.

CG :20 37 D4 13 e Insurance serv1c.e.s Office, Inc., 2012 62 THIS ENDORSEMENT CHANGES/MODIFIES THE POLICY. PLEASE READ IT CAREFULLY.

PRIMARY AN:O NON-CONTRIBUTING INSURANCE
This endorsement changes/modifies insurance provided under the folloWing:

COMMERC.IAL GENERAL LIABILITY COVERAGE FORM

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE FORM
To. · the ,extent that this insurance is afforded to any addib'onal insured under this policy; :$EC'TION IV - C~Mll!~~CIAL GEI\IERAL LIABILITY CONDITIONS, 4. otl;ler.lr,isil~l"l;C~, is deleted in its e.titii'ety and ~placed with the following .condition:

4. other rnsurance•
If all of the other insurance pe.rmits contribution by e.qual shares, we Will follow th1s metltod 1.mless the insured is required by written contract signed by both parties, to provide insurance that is primar-y and noncontributory, and the "insured contract" is .executed prk>r. to any loss. Vv'here requ_ired by a written contract isigned by both parties, this insurance Will be prlmaty and hon~contributing only When and to the extent as required by that contract However, under the contributory approach each insurer contributes equal ~mqunts until it h~s. pijid ~ apJ:>Ucable limit (I insuran~ ~ npne qt the loss remains,. Whichever .co~ first.

If any of the other insut:ance does not permit contribution by equal shares, we will contribute by lirrits. Under this method, each, lnsurel'$ ehate Is based on the fatlo of Its applicable Jirriit of Insurance- :to the total applicable limits of lnsuranoe of a1I insurers.

ALL OTHER TERMS AND CONDITIONS OF THE .POLICY REMAIN UNCHANGED.

This endorsement is attached to and forms a part. of the Polley as listed in the Declarations Page or Declarations &tension 'Schedule, effective ori tt)e inception date of the PQllcy umessJrtherwise stated herein; (The folloWing information is required only when this endorsement is issued subsequent to preparation of the Policy,) Endorsement effective. d~te: 04IOS/2023
Named Insured:

CIS CGL 40261215
Print Pete: 416/2023
PoUcyNQ .. :
0SA~CGL000202101
End()rsement No. :

Authorized Representative. _____________ _
63 Print D11te: 41612023
POLICY NUMBER: CSAR-CGL-0002021 - 01 COMMERCIAL GENERAL LIABILITY CG 24040509

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE
Name Of Person Or Organization: As ~equired by written contract signed by both parties and the insured contract is executed prior to any loss Information reaulred to comolete this Schedule, if not shown above, will be shown in the Declarations.

The following is added to Paragraph 8. Transfer Of
Rights Of Recovery Against Others To Us of
Section IV - Conditions:

We waive any right of recovery we may have against
the person or organization shown in the Schedule
above because of payments we make for injury or
damage arising out of your ongoing operations or
'your work" done under a contract with that person
or organization and included In the "products•
completed operations hazard~, This waiver applies
only to the person or organization shown in the
Schedule above.

CG 24 0405 09 ® Insurance Services Office, Inc., 2008 Page 1 of 1 C 64 THIS ENDORSEMENT CHANGES THE POLICY - PLEASE READ IT CAREFULLY.

BLANKET ADDITIONAL INSURED ENDORSEMENT

PRIMARY
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
With respect to SECTION II - LIABILITY COVERAGE only, Who is An Insured is amended to include as an Additional Insured any person(s) or organization(s) whom you are required to add to this policy as an Additional Insured under a written agreement in effect or becoming effective during the policy period. This insurance applies only to "bodily injury" and "property damage" that occurs subsequent to execution of the written agreement and subsequent to the issuance of a certificate of insurance indicating such person(s) or organization(s) as Additional lnsured(s).

The insurance provided hereby to the Additional lnsured(s) is limited as follows:

1. The coverage afforded hereby to such Additional Insured is limited to imputed liability specifically resulting from the conduct of the Named Insured for which the Additional Insured was held liable.

2. The limits of insurance applicable to the insurance afforded hereby are those specified in the written agreement or in the Declarations or Schedules of this policy, whichever is less. The limits of insurance applicable to the insurance afforded hereby are inclusive and not in addition to the limits of insurance shown in the Declarations or Schedules of this policy.

3. Any coverage provided under this endorsement for any Additional Insured will never be broader than coverage provided to any Named Insured.

Any other policy terms, conditions, limitations, exclusions, and definitions apply to this endorsement.

WIC AUTO 0013 CW (10 17) Page 1 of 1
"Includes copyrighted material of Insurance Services Office, Inc. with its permission" 65 THIS ENDORSEMENT CHANGES THE POLICY - PLEASE READ IT CAREFULLY.

BLANKET WAIVER OF SUBROGATION
This endorsement modifies insurance provided under the following:

BUSINESS AUTO COVERAGE FORM

MOTOR CARRIER COVERAGE FORM
We agree to waive any and all subrogation claims or rights of recovery against any person(s) or organization(s) if there is an executed written agreement with that person(s) or organization(s) which requires a Waiver of Subrogation Clause from the Named Insured, except for "losses" which are due in whole or part to the negligence or errors and omissions of such person(s) or organization(s).

All other terms and conditions of the policy remain unchanged.

WIC AUTO CW 0014 (10/17) "Includes copyrighted material of Insurance Services Office, Inc, with Its permission" Page 1 of 1 66 A&Rtf CERTIFICATE OF LIABILITY INSURANCE I DATE (MM/DDIYYYY) Acd#: 2526419 5/11/2023
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the pollcy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the pollcy, certain policies may require an endorsement A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s), PRODUCER ~~~--· USI Insurance Services, LLC rA~~.t .. _.,, 844-290-4908 If~ Nol: 2502 N Rocky Point Drive E-MAJL [email protected] Tampa, FL 33607 ADDRESS:

INSURER(S) AFFORDING COVERAGE NAIC#
INSURER A : Acs American Insurance Co. 22887
INSURED INSURERB: Barrett Bualn- Servk:H, Inc.

LJC/F ALLIANCE DIVERSIFIED ENTERPRISES, INC. INSURERC:
666 OPPER STREET INSURERD: ESCONDIDO, CA 92029
INSURERE:

INSURERF:

COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT 'MTH RESPECT TO \/1/HICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHO\NN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR TYPE OF INSURANCE l~g!'~ ~~ POLICY EFF
LTR POLICY NUMBER l=~~l LIMITS
COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ -
~ CLAIMS-MADE □ OCCUR ~Re"Gi;;'eJl/i:':~~I - $
- MED EXP (Any one person) $
PERSONAL & ADV INJURY $ -
GEN'LAGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ Fl POLICY □ 18,:' □ LOC PRODUCTS· COMP/OP AGG $ OTHER: $
AUTOMOBILE LIABILITY (E~~~~~ti'""'GLE LIMIT $ f-- ANY AUTO BODILY INJURY (Per person) $ f-- OWNED - SCHEDULED BODILY INJURY (Per accident) $ f-- AUTOS ONLY - AUTOS HIRED NON-OWNED ri,~~PAMAGE $ f-- AUTOS ONLY - AUTOS ONLY $
UMBRELLA LIAB HOCCUR EACH OCCURRENCE $ f--
EXCESSUAB CLAIMS-MADE AGGREGATE $
DED I I RETENTION$ $
WORKERS COMPENSATION X I :~~TUTE I I ~iHAND EMPLOYERS' LIABILITY Y/N

A ANY PROPRIETOR/PARTNER/EXECUTIVE
□ N/A X C51268349 10/1/2022 10/1/2023 E.L. EACH ACCIDENT $ 2,000,000 OFFICER/MEMBER EXCLUDED?
(Mandatory In NH) EL. DISEASE -EA EMPLOYEE $ 2,000,000
~~;~~r~~ ~f~PERATIONS below EL. DISEASE -POLICY LIMIT $ 2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Addlllonal Remarks Schedule, may 1111 tdlached If more space Is required) Polley Stats = CA
Waiver of Subrogation In favor of certificate holder when required by writtan contract

CASA ROMANTICA SLOPE STABILIZATION REPAIR
30-Day Notice of cancellation
~1 0 days notice of cancellation in the event of nonpayment of premium.

CERTIFICATE HOLDER CA NC ELLA TION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City Of San Clemente THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED ATTN: Kiel Koger, Public Works Director/City Engineer IN ACCORDANCE WITH THE POLICY PROVISIONS. 910 Calle Negoclo
San Clemente, CA 92673 AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015
~i.,..c.a..

ACORD
~
CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD
67 Workers' Compensation and Employers' Liability Policy Named Insured
Barrett Business Services, Inc.

UC/F ALLIANCE DIVERSIFIED ENTERPRISES, INC.
665 OPPER STREET
ESCONDIDO, CA 92029
Policy Period
10/1/2022 TO 10/1/2023
Issued By (Name of the Insurance Company)
Ace American Insurance Co.

Endorsement Number
Policy Number
Symbol: WLR Number: C51268349
Effective Date of Endorsement
5/11/2023
Insert the policy number. The remainder of the Information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.

This endorsement changes the POlicv to which it is attached and is effective on the date issued unless otherwise stated.

CALIFORNIA WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT This endorsement applies only to the insurance provided by the policy because California is shown in Item

3.A. of the Information Page.

We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule, but this waiver applies only with respect to bodily injury arising out of the operations described in the Schedule, where you are required by a written contract to obtain this waiver from us.

You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.

Schedule

1. ( ) Specific Waiver
Name of person or organization:
(X) Blanket Waiver
Any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver.

2. Operations:

ALL CALIFORNIA OPERATIONS

3. Premium:

The premium charge for this endorsement shall be 1.0 percent of the California premium developed on payroll in connection with work performed for the above person(s) or organization(s) arising out of the operations described.

4. Minimum Premium: $0
Authorized Agent
WC 90 03 75 (05/18)
Attachment 3
4875-7521-8538 v1

CITY OF SAN CLEMENTE
AMENDMENT No. 1 TO

EMERGENCY CONSTRUCTION CONTRACT
PROJECT: CASA ROMANTICA SLOPE STABILIZATION REPAIR

THIS AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
(hereinafter “Amendment”), dated _________, 2023 for identification purposes, is made and entered into by and between the CITY OF SAN CLEMENTE, a municipal corporation, hereinafter designated as "City", and ALLIANCE DIVERSIFIED ENTERPRISES, INC., hereinafter designated as "Contractor."

RECITALS
WHEREAS, City and Contractor are the parties to that certain Emergency Construction Contract dated , 2023, hereinafter referred to as the “Contract”, wherein Contractor agreed to provide certain services to the City as set forth therein; and WHEREAS, the parties desire to amend the Agreement to provide for changes and/or modifications to the not to exceed compensation amount.

AMENDMENT
NOW, THEREFORE, the parties hereto do mutually agree that the Contract shall be amended as follows:

1. Section 3.7.1 (Amount of Compensation) of the Contract shall be amended such that Contractor’s compensation for all work performed in accordance with this Agreement, shall be increased by $150,000, from $200,000, for the not to exceed total contract price of $350,000.

2. Section 3.3.1 (Contract Time) of the Contract shall be amended such that the contract time shall be extended from 10 working days to 30 working days.

3. Exhibit A (Services/Schedule) to the Contract shall be amended by adding the following: “All work will be performed as directed by the Public Works Director and LGC consultants. All work is to be compensated on a time and materials basis at the CalTrans force account rates, which are located at:
https://dot.ca.gov/-/media/dotmedia/programs/construction/documents/equipment-rental-rates-and-laborsurcharge/book_2023.pdf” 68 CASA ROMANTICA SLOPE STABILIZATION REPAIRS
(ALLIANCE DIVERSIFIED ENTERPRISES, INC)
4875-7521-8538 v1 2

4. Except as expressly set forth in this Amendment, the Contract shall remain in full force and effect and is hereby ratified and reaffirmed.

SIGNATURES. The individuals executing this Amendment represent and warrant that they have the right, power, legal capacity and authority to enter into and to execute this Amendment on behalf of the respective legal entities of the CONSULTANT and the CITY.

IN WITNESS WHEREOF, the parties hereto being duly authorized on behalf of their respective entities to execute this Amendment, do hereby agree to the covenants contained in the Agreement, including this Amendment, and have caused this Amendment to be executed by setting hereunto their signatures on the dates set forth below.

CITY OF SAN CLEMENTE
By:

ATTEST: Andy Hall, City Manager
Dated: , 2023
CITY CLERK of the
City of San Clemente,
California
APPROVED AS TO FORM:

Elizabeth A. Mitchell, City Attorney

APPROVED AS TO

AVAILABILITY OF
FUNDING:

Finance Authorization

CONSULTANT
Alliance Diversified Enterprises, Inc. Alliance Diversified Enterprises, Inc.

By: Joan Grenke By: Evan Grenke
Its: Chief Executive Officer/Secretary Its: Chief Financial Officer Dated: , 2023 Dated: , 2023
69 ATTACHMENT 4
4867-7187-8250 v1
RESOLUTION NO. 23-63

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN CLEMENTE, CALIFORNIA, RATIFYING AN

EMERGENCY CONSTRUCTION CONTRACT WITH
ALLIANCE DIVERSIFIED ENTERPRISES, INC. AND

FIRST AMENDMENT THERETO FOR TEMPORARY

EMERGENCY SLOPE STABILIZATION REPAIRS AT

CASA ROMANTICA FOR A TOTAL CONTRACT AMOUNT
NOT TO EXCEED $350,000 AND APPROPRIATING

FUNDING THEREFORE
WHEREAS, a landslide on April 27, 2023 necessitated an emergency response to ensure that more damage was not caused to a condominium building and railroad tracks adjacent to the failed slope; and
WHEREAS, in order to protect public health and safety and prevent or mitigate an emergency, City staff asked a contractor who specializes in this type of emergency work (Alliance Diversified Enterprises, Inc.) to mobilize as soon as possible to begin work in which they did on Friday, May 12, 2023 to start the repairs under the supervision of LGC; and
WHEREAS, the initial emergency work was completed on June 2, 2023 and included removing the large knob of soil at the north end of the landslide area to reduce the chance of more material sliding down on the railroad tracks or against the condominium building; and
WHEREAS, some soil was excavated and hauled off site and additional soil was placed against the vertical slope nearest the Casa Romantica building to temporarily stabilize that slope. Debris and soil was also removed from the condominium building to relieve pressure; and
WHEREAS, after completion of the initial work, the slope started moving again the morning of June 3rd and more reshaping and regrading of the slope occurred on June 3 through 4, 2023; and
WHEREAS, before proceeding with the work, staff determined that the project qualified for an exemption pursuant to Section 15269(c) of the State CEQA Guidelines as specific actions necessary to prevent or mitigate an emergency; and WHEREAS, the California Coastal Commission was notified on May 11, 2023 of the immediate emergency action needed to stabilize the slope; and

WHEREAS, the City Manager executed an emergency construction contract with Alliance Diversified Enterprises, Inc. for the original emergency temporary slope stabilization repairs including excavation, grading, compaction and shoring estimated at $200,000; and
70 Resolution No. 23-63 Page 2
4867-7187-8250 v1
WHEREAS, due to uncertainty of the work and unforeseen site conditions, including excess groundwater and constantly shifting soil, an amendment to the contract is needed to increase the original estimate amount from $200,000 to $350,000 for the emergency temporary slope stabilization repairs at Casa Romantica.

NOW, THEREFORE, the City Council of the City of San Clemente hereby resolves as follows:

SECTION 1. That the foregoing recitals are true and correct and incorporated herein as findings.

SECTION 2. That an emergency exists due to the potential failure of an existing slope and that the situation requires immediate action to prevent or mitigate impairment to property and public services that might otherwise occur if required to incur delays attributed to the typical engineering analysis and competitive bidding process.

SECTION 3. That the public interest and necessity demand the immediate expenditure of public funds to safeguard public health and safety.

SECTION 4. That the emergency construction contract with Alliance Diversified Enterprises, Inc. previously executed by the City Manager is hereby ratified.

SECTION 5. That the City Manager is authorized and directed to execute a first amendment emergency construction contract with Alliance Diversified Enterprises, Inc. for temporary emergency slope stabilization repairs at Casa Romantica for a contract amount not to exceed $350,000 in substantially the same form as attached to this resolution as Exhibit A and incorporated herein.

SECTION 6. That a supplemental appropriation in the amount of $350,000 to Account Number 001-481-43470-000-23502 from the General Fund unassigned fund balance is hereby approved.

SECTION 7. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. 71 Resolution No. 23-63 Page 3
4867-7187-8250 v1
PASSED AND ADOPTED this _____ day of June, 2023.
_______________________
Mayor of the City of
San Clemente, California
ATTEST:
__________________________
CITY CLERK of the City of
San Clemente, California
72 Resolution No. 23-63 Page 4
4867-7187-8250 v1

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-63 was adopted at a regular meeting of the City Council of the City of San Clemente held on _______ day of May 2023, by the following vote:

AYES:

NOES:

ABSENT:
_______________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney
73 ATTACHMENT 2
4858-4606-9611 v1
RESOLUTION NO. 23-54

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF SAN CLEMENTE, CALIFORNIA, AWARDING A

MAINTENANCE SERVICES AGREEMENT TO

POWERCLEAN FOR DOWNTOWN PRESSURE

WASHING, AUTHORIZING THE CITY MANAGER TO

EXECUTE A THREE YEAR AGREEMENT WITH TWO
OPTION ONE YEAR RENEWALS AT A COST OF $66,950

ANNUALLY AND FINDING THE PROJECT

CATEGORICALLY EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) UNDER
CLASS 1 (EXISTING FACILITIES, 14 CCR 15301) OF THE

CEQA GUIDELINES
WHEREAS, Section 995(b)(1)(C) of Title 22 of the California Code of Regulations prohibits the use of potable water for washing sidewalks, driveways, buildings, structures, patios, parking lots, or other hard surfaced areas, except in cases where health and safety are at risk; and
WHEREAS, the City’s hardscape surfaces in the downtown T-Zone area are heavily used by the public for a variety of legal and illegal activities, some of which include the deposit, accidental or intentional, of waste materials, including biological hazardous materials, onto City property, which causes a risk to public health and safety if not cleaned up in a timely fashion; and
WHEREAS, wishes to providinge monthly pressure washing services in the downtown T-Zone area is necessary due to the health and safety risk associated with not conducting that cleaning; and
WHEREAS, the City’s current agreement with Dave Ausmus, dba Powerclean sunsets on June 30, 2023; and
WHEREAS, staff advertised a Request for Proposal on the electronic bidding program, Planet Bids, in May 2023; and
WHEREAS, four proposals were received in response to the RFP in May 2023 and Powerclean was the lowest responsive and responsible bidder with an annual cost of $66,950 for a three-year total of $200,850.

NOW, THEREFORE, the City Council of the City of San Clemente hereby resolves as follows:

SECTION 1. That the foregoing recitals are true and correct and incorporated herein as findings.

Resolution No. 23-54 Page 2
4858-4606-9611 v1
SECTION 2. That this project is categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines because it consists of ongoing maintenance of existing City facilities involving negligible or no expansion of existing or former use and with no direct or foreseeable indirect effect on the environment.

SECTION 3. That a Maintenance Services Agreement for downtown pressure washing services is hereby awarded to Powerclean for a three-year contract term with the option of two one-year extensions for a potential total agreement of five years.

SECTION 4. That the City Manager is authorized and directed to execute a Maintenance Services Agreement with Powerclean for a three-year contract term with the option of two additional one-year extensions to be exercised in the City Manager’s discretion, for a potential total agreement of five years, at an amount not to exceed $66,950 per year, in a form substantially similar to that presented to City Council on June 20, 2023.

SECTION 5. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED this _____ day of June, 2023.
_______________________
Mayor of the City of
San Clemente, California
ATTEST:
__________________________
CITY CLERK of the City of
San Clemente, California
Resolution No. 23-54 Page 3
4858-4606-9611 v1

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §

CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 23-54 was adopted at a regular meeting of the City Council of the City of San Clemente held on _______ day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:
_______________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
_________________________
Elizabeth A. Mitchell, City Attorney

p. 1
4879-8556-1707 v2

MASTER SECURITY PROFESSIONAL SERVICE AGREEMENT
FULL LEGAL NAME OF SECURITY PROVIDER (“Allied Universal”): Universal Protection Service, LP d/b/a Allied Universal Security Services, for itself and on behalf of its wholly-owned subsidiaries and affiliates which may provide service hereunder within certain states FULL LEGAL NAME OF CLIENT (“Client”): The City of San Clemente, California By signing below by their duly authorized representatives, Client and Allied Universal agree to be legally bound to the Agreement, General Terms and Conditions and Exhibits attached hereto, which form a binding and enforceable part of this Agreement as of the day and year first written below (“Commencement Date”).

CLIENT: The City of San Clemente California UNIVERSAL PROTECTION SERVICE, LP d/b/a Allied Universal Security Services
By: ______________________
Name: Andy Hall
Title: City Manager
Address for Notices:
910 Calle Negocio, San Clemente, CA 92673
By: __________________________
Name: Steve Claton
Title: President, Southwest Region
Address for Notices:
__450 Exchange, Irvine, CA 92602___
Fax: ____________________ Fax: N/A

GENERAL TERMS AND CONDITIONS
The term of this Agreement shall be for a maximum period of one (1) years beginning on July 10, 2023 (“Commencement Date”) (“Initial Term”). This Agreement may only be extended with the approval of Client’s City Council. Either party may terminate this agreement during initial term by providing the other party thirty (30) days’ notice of intent to terminate said Agreement.

Allied Universal shall provide security professional services (the “Services”) in the amount, for the times and at the location(s) set forth in Exhibit A. Services provided in Exhibit A may be terminated by either party for non-performance by the other party upon thirty (30) days’ written notice to the non-performing party. The non-performing party shall have the opportunity to cure the non-performance within that thirty-day period. Either party may terminate Exhibit A and/or this Agreement (if there is no existing work hereunder) for any reason at any time upon thirty (30) days’ written notice to the other party.

Client shall pay Allied Universal for the performance of the Services and any other products and/or services provided by Allied Universal hereunder at the rates (“Billing Rates”) and other charges set forth in Exhibit A or otherwise payable hereunder without deduction or set-off. The billing and payment terms will be contained in Exhibit A. Client shall be deemed to accept all invoices submitted to Client if it does not notify Allied Universal in writing of any disputes within ninety (90) days of the invoice date. Unless stated otherwise in Exhibit A, the Billing Rates set forth in Exhibit A are valid for the first twelve (12) months of the Agreement, thereafter they will be increased annually, effective as of the anniversary date of the Commencement Date, in an amount equal to the greater of (i) the percentage increase determined pursuant to subsection C.3. below and (ii) three percent (3%).

A. Scope of Services

1. Allied Universal agrees to provide the Services in a professional and diligent manner. Allied Universal does not warrant or guarantee that the Services constitute complete security at Client’s location(s) so as to prevent any incident, loss, theft, damage or injury (including death). Client agrees that Allied Universal has not provided any consultation services regarding what may or may not be the proper levels of security staffing, or the methods of security provided.

2. Client may request a change in the Services. Such requested changes will be communicated in writing and will be effective only upon Allied Universal’s written approval which Allied Universal will not unreasonably decline.

However, in no event will a refusal by Allied Universal to approve requested changes constitute a breach of this Agreement or otherwise constitute nonperformance by Allied Universal of this Agreement. The parties acknowledge and agree that Exhibit A solely governs Allied Universal’s duties at Client’s location(s).

3. The purpose of any inspection at Client’s location(s) by Allied Universal is solely to assist Client with its loss control program. The safe maintenance of Client’s premises and operations and equipment on those premises and the avoidance of unsafe conditions and practices is the sole responsibility of Client.

B. Independent Contractor / Personnel

1. Allied Universal is responsible for the hiring, training and supervision of all security professionals assigned by Allied Universal to Client’s location(s).

Client shall not direct or supervise security officers or change the instructions or supervision given to the security professionals by Allied Universal, including but not limited to requiring Allied Universal personnel to use force and/or restraints.

2. In addition to the Services set forth in Exhibit A attached hereto, and in addition to any general or routine training provided by Allied Universal to its security professionals, Allied Universal shall provide each of its employees assigned to Client’s location(s) with Client requested additional training at the costs set forth in Exhibit A.

3. Allied Universal shall provide uniforms for all assigned personnel. Allied Universal will maintain these uniforms in good condition at Allied Universal’s sole cost and expense unless otherwise provided in Exhibit A. Equipment and non-standard uniforms required by Client will be provided as mutually agreed upon and at a cost mutually agreed upon in writing. Allied Universal’s personnel will not be required to carry weapons of any kind, unless otherwise expressly set forth herein.

4. Security professionals assigned to Client’s location(s) are employees of Allied Universal, which is acting as an independent contractor. Allied Universal will pay all compensation due and owing to its employees and all required payroll taxes and withholdings.

p. 2
4879-8556-1707 v2

5. Allied Universal is entitled to assign personnel to Client’s location(s) in full compliance with applicable equal opportunity, civil rights and other employment laws/regulations. Upon reasonable written notice, Client shall have the right to request in writing that any of Allied Universal’s employees whose performance it finds to be unacceptable be removed from its location(s); provided reasons for such request do not violate applicable law.

6. Client acknowledges that Allied Universal has spent considerable time and expense in recruiting and training its employees. As such, Client agrees that it will not employ, as a security professional or in any related capacity, directly or indirectly, including employment through a successor security contractor, any person who has been employed by Allied Universal in a supervisory capacity and assigned to Client’s location for a period of one hundred and eighty (180) days following the last date of that person’s employment with Allied Universal. In the event of a breach of this provision, Client shall pay Allied Universal the average weekly billing for such employee for four (4) months as liquidated damages together with all legal fees and other costs arising from the breach of this provision.

7. Persons performing services under this Agreement for Allied Universal are employees of Allied Universal and shall under no circumstances be considered to be employees of Client for any purpose and shall not be entitled to receive any compensation or benefits from Client of any kind or nature whatsoever, except for Client’s payment to Allied Universal under this Agreement. In the event that any of Allied Universal’s officers, employees, agents, subcontractors, representatives or other persons providing services on Allied Universal’s behalf under this Agreement (collectively “Allied Universal’s Personnel”) claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS of the Client, Allied Universal shall indemnify, defend (with counsel acceptable to Client), and hold harmless Client for the payment of any employer and employee contributions for PERS benefits on behalf of Allied Universal’s Personnel as well as for payment of any penalties and interest on such contributions which would otherwise be the responsibility of the Client.

8. Notwithstanding any other agency, state or federal policy, rule, regulation, law, or ordinance to the contrary, Allied Universal’s Personnel providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation and benefit including but not limited to eligibility to enroll in PERS as an employee of Client and entitlement to any contributions to be paid by Client for employer contributions and/or employee contributions for PERS benefits.

9.The payment made to Allied Universal pursuant to this Agreement shall be the full and complete compensation to which Allied Universal and Allied Universal’s Personnel are entitled for performance of any work under this contract. Neither Allied Universal nor Allied Universal’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the Client. The Client will not make any federal or state tax withholdings on behalf of Allied Universal.

The Client shall not be required to pay any workers’ compensation insurance on behalf of Allied Universal.

10.Allied Universal agrees to defend (with counsel acceptable to Client), indemnify and hold harmless the Client for and against any obligation, claim, suit, or demand for tax, retirement contribution, including any contribution to PERS, Social Security, salary, or wages, overtime payment, or workers’ compensation payment which the Client may be required to make on behalf of Allied Universal or Allied Universal’s Personnel for work done under this Agreement.

C. Billing

1. The Billing Rates do not include the direct bill items (“Direct Bill Item(s)”), if any, expressly identified as such in Exhibit A, which shall be invoiced and paid by Client to Allied Universal in accordance with the payment terms herein. Notwithstanding anything contained herein to the contrary, Allied Universal may pass through any increase in any and all of the costs of any and all Direct Bill Items when incurred or accrued upon prior notice to Client, and Client shall reimburse Allied Universal for such costs.

Allied Universal shall not accrue any Direct Bill Items without prior written approval of the Client.

2. The parties agree any wage rates, annual/monthly/weekly billing estimates, or wage estimates included Exhibit A, any other addenda, any pricing sheet, RFP submission, and/or other document are for demonstration purposes only and will not have any impact on the Billing Rates, the amount Client agrees to pay, or on the wages Allied Universal pays its employees.

3. In the event that Allied Universal experiences an increase in its costs resulting from any change, whether or not anticipated, in: (1) Federal, state, provincial, territorial, or local taxes, levies, or required withholdings imposed or assessed on amounts payable to and/or by Allied Universal hereunder or by or in respect of Allied Universal to its personnel; (2) Federal, state, provincial, territorial, or local minimum wage rates, mandated paid time off and/or sick leave, changes in overtime wage regulations, uniform maintenance expenses or other required employee allowances, licensing fees and/or requirements, or wage, medical, welfare and other benefit costs under collective bargaining agreements; (3) costs related to insurance and/or workers’ compensation; and/or (4) costs related to medical and/or welfare benefits and other requirements, including without limitation costs incurred by Allied Universal pursuant to applicable federal, state and/or local law, including, without limitation “Healthcare Reform Legislation Costs” (as defined below), the Billing Rates shall be increased by a percentage equal to the percentage increase in Allied Universal’s costs resulting from the items set forth in this paragraph. Allied Universal will provide Client at least sixty (60) days’ prior notice of such change in the Billing Rates.

4. [Reserved.]

5. “Healthcare Reform Legislation Costs” means the costs and/or assessments incurred by Allied Universal in respect of employee medical and/or welfare benefits and other requirements under the Patient Protection and Affordable Care Act of 2010 and the related statutes and regulations.

6. Unless otherwise expressly stated herein, Allied Universal’s fees and charges do not include any sales, use, excise or similar taxes, levies or duties (“Taxes”). Client is responsible for paying for all such Taxes in respect of Allied Universal’s Services or in respect of amounts payable by Client hereunder. If Allied Universal has the legal obligation to pay or collect Taxes for which Client is responsible under this section, the appropriate amount shall be promptly paid by Client to Allied Universal unless Client provides Allied Universal with either a valid and current tax exemption certificate or direct pay certificate, authorized by the appropriate taxing authority.

7. Client agrees to pay Allied Universal one and one-half percent (1.5 %) per month interest or such maximum amount as permitted by law, whichever is less, on any invoice not paid by its due date. In the event that legal action is required to collect on any past-due invoiced amount owed to Allied Universal by Client under this Agreement, Client agrees to pay to Allied Universal the costs and attorneys’ fees incurred by Allied Universal in such action.

D. Physical and Intellectual Property

1. Client recognizes and acknowledges that in performing its duties under this Agreement, Allied Universal may install and/or utilize proprietary software (hereinafter “Proprietary Software”), a valuable, special and unique asset of Allied Universal and/or third parties. This Proprietary Software is and will remain the sole and exclusive property of Allied Universal and/or those applicable third parties.

2. Client further agrees that materials developed, generated, or produced pursuant to this Agreement, including but not limited to Post Orders, security plans, emergency plans, diagrams, reports, and writings, both internal and external (hereinafter collectively, “Work Product”), may include the proprietary information of Allied Universal and will remain the sole and exclusive property of Allied Universal. Client and Client’s personnel will have no proprietary interest in the Work Product. Client acknowledges that it will not share such Work Product with any third party and any Work Product in Client’s possession shall be returned to Allied Universal upon termination or expiration of this Agreement. The provisions of this paragraph shall not apply to documents that are required to be disclosed or retained pursuant to applicable law.

p. 3
4879-8556-1707 v2

3. Any property, equipment or supplies furnished by Allied Universal to its personnel in performance of the Services described in this Agreement shall remain the property of Allied Universal and shall be returned to Allied Universal promptly at the expiration or termination of this Agreement.

4. Allied Universal represents and warrants that it is the owner of the Proprietary Software that the Proprietary Software does not infringe on the intellectual property rights of any third parties.

E. Insurance and Indemnification

1. Allied Universal shall maintain Workers’ Compensation coverage for its security professionals and personnel assigned to Client’s location(s) at limits imposed by statute, including Employer Liability coverage.

2. Allied Universal shall maintain for its own protection and benefit and that of the Client, to the extent of the Client’s rights as an additional insured as set forth in Section 3.A.i of Exhibit B, various other policies of insurance, including Commercial General Liability coverage, for its performance of the Services at Client’s location(s), which shall meet the standards specified in Exhibit B hereto, which is incorporated fully by this reference.

3. Allied Universal shall maintain Automobile Liability insurance for its employees’ operation of Allied Universal’s owned, leased and non-owned vehicles. However, to the extent that Client requires Allied Universal employees to drive Client’s vehicles in performance of the Services, Client agrees to carry Automobile Liability insurance for those vehicles with bodily injury and property damage limits of One Million Dollars ($1,000,000.00).

Such insurance will be primary for any loss or damage occurring to Client vehicles operated by Allied Universal employees in performance of the Services, and under no circumstances shall Allied Universal indemnify or defend Client or Client’s insurer for losses that occur or arise out of Allied Universal’s operation of Client-owned vehicles.

4. Client agrees that Allied Universal is not an insurer of Client’s operations, personnel or facilities. Except as provided elsewhere in this Agreement, Client assumes all risk of loss, physical damage and personal injury at its operations, to its personnel and/or facilities or any other property resulting from fire, theft or other casualty, and Client waives any right of recovery and its insurers’ right of subrogation against Allied Universal for any loss or damage resulting from any such occurrence.

5. Allied Universal will protect, defend (with counsel acceptable to Client), hold harmless and indemnify Client, its officials, officers, directors, professionals, agents, employees, volunteers and representatives from and against all claims, actions, proceedings, liabilities, damages, losses, costs and expenses (including reasonable attorney’s fees) (the “Losses”) asserted against Client and resulting from the performance of the Services provided under this Agreement, provided such Losses (1) are caused solely by the grossly negligent failure of Allied Universal to perform the Services, or by other grossly negligent actions or omissions in the performance of the Services by Allied Universal, or through the willful misconduct or unlawful activity of Allied Universal, or by Allied Universal’s breach of any term of this Agreement; (2) are not caused in any way through the negligence, willful misconduct or unlawful activity of Client or otherwise resulting from Allied Universal’s compliance with specific direction from Client; and/or (3) do not actually or allegedly arise out of an Allied Universal employee taking a Legally Mandated Coverage Break(s) (as defined herein). Allied Universal’s obligations under this paragraph shall not extend to first party losses sustained by Client, or other benefits or insurance provided by Client to its employees, including but not limited to medical, disability, and workers compensation benefits.

6. Notwithstanding anything contained in this Agreement to the contrary, should Allied Universal be found liable for any Losses hereunder for any reason, the sole and exclusive remedy of Client in any situation, whether in contract or tort, or otherwise, shall be limited to Client’s actual and direct damages, and shall in no event exceed $1,000,000.00, such amount to be inclusive of any defense costs.

7. Client shall protect, defend, hold harmless and indemnify Allied Universal, its respective successors and assigns, and its directors, professionals and employees from and against all Losses asserted against Allied Universal arising out of incidents or occurrences taking place or arising at Client’s location provided that any such Losses: a) occur due to Allied Universal’s compliance with Client’s specific directions and requests (including but not limited to directions and requests in Section B.1 and Section B.5); b) occur during Legally Mandated Coverage Break(s); and/or c) are: (1) attributable to bodily injury, sickness, disease or death or to damage to tangible property; and, (2) are not caused in any way through the negligence, willful misconduct or unlawful activity of Allied Universal, or the failure of Allied Universal to perform the Services.

8. Under no circumstances will either party be liable to the other, or any other person or entity, for consequential, incidental, indirect or punitive damages, or for lost profits.

9. Each party shall give written notice to the other party of any of its Losses or potential Losses arising out of the Services within sixty (60) days following notification of the occurrence giving rise to such Losses or potential Losses.

No action to recover any Loss shall be instituted or maintained against any party unless notice of such Loss shall have been given by the other party in the manner and form set forth herein. No action to recover for any Loss shall be instituted or maintained against either party unless instituted not later than twelve (12) months following notification of the occurrence giving rise to such Loss, or such earlier period as may be required under applicable law.

F. Compliance with Laws

1. Some or all of the physical security guard services identified in this Agreement could be designated as a Qualified Anti-terrorism Technology (“QATT”) under the Support Anti-terrorism by Effective Technologies (SAFETY”) Act of 2002, 6 U.S.C. §§ 441-444, as amended. Where this QATT has been deployed in defense against, response or recovery from an act of terrorism, as that latter term is defined under the SAFETY Act (as herein defined), Allied Universal and Client agree to waive all claims against each other, including their professionals, directors, agents or other representatives, arising out of the manufacture, sale, use or operation of the QATT, and further agree that each is responsible for losses, including business interruption losses, that its sustains, or for losses sustained by its own employees resulting from an activity arising out of such act of terrorism. This provision shall apply throughout the term of this Agreement, unless Allied Universal should cease to have SAFETY Act coverage for these Services for any reason.

2. Both parties shall, at their own cost and expense, comply in full with all applicable federal, state, provincial, and local statutes, laws, ordinances, rules regulations, orders, licenses, permits or fees (“Governmental Regulations”) applicable to its operations and its performance under this Agreement, including without limitation, (i) environmental laws, (ii) laws relating to accessibility by and accommodation of handicapped persons, (iii) employment and labor laws, and (iv) laws relating to discrimination of any type of manner.

Client shall notify Allied Universal in writing as soon as practical of any inquiry, notice, subpoena, lawsuit, or other evidence of an investigation by any public agency or the commencement of any judicial or administrative litigation, or arbitration proceedings with respect to Allied Universal’s operations at the property and/or performance under this Agreement. Should Allied Universal be issued a citation or other sanction because of conditions on the premises created by others, Client shall pay and will be responsible for the fine. The foregoing shall include, but not be limited to, all applicable health, safety, and labor standards.

3. Under no circumstances will either party indemnify the other party for Workers’ Compensation claims or for fulfilling independent statutory duties the other party owes to third parties or its employees.

G. Miscellaneous

1. This Agreement represents the entire agreement and understanding of the parties concerning the subject matter herein and replaces any and all previous agreements, understandings, representations, discussions or offers. No modification to this Agreement shall be effective unless in writing and executed by both parties and delivered to each respective party hereto.

2. A written waiver by either party of any of the terms or conditions of this Agreement shall not be deemed or construed to be a waiver of such term or condition for the future or of any subsequent breach of the Agreement. The failure to enforce a particular provision of this Agreement shall not constitute a waiver of such provision or otherwise prejudice Allied Universal’s right to

p. 4
4879-8556-1707 v2
enforce such provision at a later time.

3. This Agreement is entered into solely for the mutual benefit of the parties hereto and no benefits, rights, duties or obligations are intended or created by this Agreement as to any third parties.

4. Each party further warrants and represents that this Agreement has been executed by a duly authorized individual.

5. This Agreement and all matters collateral hereto shall by governed by the laws of the state or province wherein the Services are to be provided without reference to its choice of law provisions.

6. If any of the terms or provisions of this Agreement are ruled to be invalid or inoperative, all the remaining terms and provisions shall remain in full force and effect.

7. This Agreement may be executed in one or more counterparts, each of which shall constitute one and the same Agreement. The parties agree that this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission or delivered by scanned image (e.g. .pdf or .tiff file) as an attachment to email.

8. Allied Universal shall not be responsible for additional expenses and costs incurred by it or Client to provide Services pursuant to this Agreement as a result of unusual circumstances including, but not limited to, strikes, riots, revolutions, wars, military actions, fires, floods, droughts, natural disasters, pandemics, active shooter events, snow storms, blizzards or other inclement weather, accidents, insurrections, lockouts or other acts of God, perils of the sea, stoppage of labor, or other events considered as “Force Majeure”, or by any other unavoidable cause beyond Allied Universal’s reasonable control if Allied Universal informs Client of such additional expenses or costs in advance and Client instructs Allied Universal to proceed with performance.

All such additional expenses shall be documented in an amendment to this Agreement and shall be the responsibility of Client as an additional charge invoiced and paid by Client as it is incurred, pursuant to the terms of the Billing section set forth above. Additionally, to the extent that Allied Universal is unable to perform, or is delayed in performing, the Services due to a Force Majeure event, such nonperformance or delayed performance is not a breach of this Agreement nor cause for Client’s termination of this Agreement.

9. Either party may assign this Agreement to an affiliate, meaning an entity controlling, controlled by or under common control with the party. Except as permitted in this section, neither party may assign, delegate or subcontract this Agreement without the prior written consent of the other. Any attempted assignment without prior written consent shall be voided. Notwithstanding the foregoing, in the event either party attempts to assign this Agreement, it shall remain liable hereunder after such assignment.

10. Any notice required or permitted hereunder shall be in writing and shall be delivered either in person, by nationally recognized overnight delivery service or by certified or registered mail, postage prepaid, addressed to the parties at the address shown in the opening paragraph (or as may be directed by a party in the future by written notice).

11. In connection with the negotiation, execution and performance of this Agreement, each party acknowledges that it has been and will be provided with confidential business information of the other party and confidential and personally identifiable information of the other party’s employees or third parties or other information that is protected by law (“Confidential Information”). Each party will exercise reasonable commercial efforts to protect and preserve the confidentiality of Confidential Information, including at a minimum those methods and procedures it uses to protect its own confidential information. A party shall not be required to preserve the confidentiality of Confidential Information to the extent it becomes public other than through the action or inaction of the party, or disclosure is required by law. If either is required by law or at the specific request of the other party to disclose information belonging to the other, the party requesting disclosure shall indemnify the other party, its respective successors and assigns, and its officials, officers, directors, professionals, agents, representatives, volunteers and employees from and against all Losses asserted against the other arising out of said disclosure.

12. The parties further acknowledge and agree that to the extent Allied Universal has assumed insurance, defense and indemnification obligations hereunder, such obligations shall not apply to any work performed by Allied Universal at the specific direction of Client, or work performed by Allied Universal that is not specifically set forth on an Exhibit A. Notwithstanding anything to the contrary provided herein or in any other direction (oral or written), Allied Universal and Client agree that in no event shall Allied Universal employees be required to undertake any duty that could potentially expose themselves to unreasonable risk or harm. At all times, each party represents and warrants that the policies and requirements Allied Universal and its employees are requested and/or required to adhere to by such party are lawful.

13. For the avoidance of doubt, any duties contrary to and/or in excess of the Services set forth in Exhibit A, shall be agreed upon by the parties in writing in advance. In the event that there are any post orders, directives, or other specification documents of any type (“Post Orders”), they shall not form any part of this Agreement, they are not incorporated into this Agreement and are not a novation or modification or expansion of the duties set forth in this Agreement. Further, if there is any conflict between the provisions of this Agreement and any other documents, this Agreement shall control. Under no circumstances shall the Post Orders expand the liabilities of the parties toward each other or any third party.

14. Client acknowledges and agrees that the continuity of Services is subject to interruption for mandatory, paid rest periods or unpaid meal periods or other breaks as required by applicable law, during which time security professionals must be relieved of all duties, including without limitation to the requirement to remain “on call” (“Legally Mandated Break Period(s)”). Services at the locations set forth in an Exhibit A will be interrupted and such locations will not be secured during such time that security professionals are on Legally Mandated Break Periods and Client has not agreed to pay for sufficient relief coverage (“Legally Mandated Coverage Break(s))”). Allied Universal acknowledges that it is Allied Universal’s sole responsibility to ensure that Legally Mandated Break Period(s) are taken as required by law, and shall defend (with counsel acceptable to Client), indemnify and hold harmless the Client from and against any Losses arising out of or related to the failure or alleged failure of any Allied Universal Personnel to take a Legally Mandated Break Period(s).

15. The duties and responsibilities of Allied Universal are specifically set forth herein. Client acknowledges that Client alone has chosen the number of security professionals and type of services, e.g., armed, unarmed, to be provided under the Agreement; that Allied Universal has informed Client that additional security professionals and/or services are available at an additional cost; and that Client has elected not to avail itself of additional security professionals or services at this time unless mutually agreed upon in writing.

16. The following provisions shall survive expiration or termination of this Agreement for any reason: A.1; A.3; B.1; B.4; B.5; B.6; B.7; B.8; B.9; B.10; C; D; E; F and G.

4879-8556-1707 v2
Exhibit A p.1

EXHIBIT A
to Master Services Agreement Between
Allied Universal
and
_The City of San Clemente, California_
This Exhibit A is intended to incorporate the terms and conditions of the Master Security Professional Service Agreement between Universal Protection Service, LP, d/b/a Allied Universal Security Services (“Allied Universal”) and the City of San Clemente, CA (“Client”) dated _June 16, 2023 (the “Agreement”). The term of this Exhibit A shall be for a period of _1_ years beginning on July 10, 2023 and the defined terms “Commencement Date” and “Initial Term” shall flow from said date. This Exhibit A will automatically continue thereafter on a month to month basis until all existing work hereunder is completed or terminated in accordance with its terms.

LOCATIONS FOR SECURITY SERVICES
Location
Specify for
each
location:

Armed
Unarmed
Schedule of Coverage Hours

1. North Beach City Parking Lot area, Metrolink
platform, and firepit / beach area on City Beach
immediately adjacent to parking lot, and restroom
facilties.

Unarmed Two (2) two (2) man teams per day.

Teams shall be deployed as needed
between the two City locations. Random
patrol pattern.

TBD
12 hour
shifts per
team per
day.

2. Pier Bowl area including Pier Bowl parking lot,
Pier, Metrolink platform area, Park Semper Fi,
park area adjacent to parking area, and restrooms
adjacent to the Pier.

Unarmed
Description of Services:

The Services Allied Universal will provide Client pursuant to this Agreement are:
• Educate, inform, and compel visitors to comply with City laws regarding loitering, smoking, drug or tobacco use, or any other unruly or illegal activity at the designated City locations. Detailed post orders shall be developed and tailored to meet the needs of the City of San Clemente and shall be mutually agreed upon prior to initial deployment. • All criminal activity or visible hazards observed will be reported to City while on post. • Any unusual, hostile, or criminal incidents will be reported to the City via a designated City contact. Incident reports shall be filed electronically with a copy forwarded to the designated City representative,. The security professional creating the report will be available to explain the incident report during their shift.

The location(s), day(s) and time(s) listed in this Exhibit A may not be altered by Client, unless mutually agreed upon in a writing signed by the parties.

The scope of services does not include any structures, parking lots, appurtenances, or nearby areas not specifically listed herein.

By signing below by their duly authorized representatives, Client and Allied Universal agree to be legally bound to the Agreement, General Terms and Conditions, this Exhibit A and all Schedules attached hereto, which form a binding and enforceable part of this Agreement as of the Commencement Date above.

BILLING RATES
4879-8556-1707 v2
Exhibit A p.2
The initial Billing Rates for the Services shall be as follows:

Wage Bill Rate Overtime/Holidays
Patrol Officer $22.00/HR $31.46 $47.19
Supervisor $24.00/HR $34.32 $51.48
Vehicle $1,700/month total cost/vehicle (includes vehicle, fuel, insurance and all maintenance) Heliaus $189/month/unit
Officers will be deployed 7 days per week in two (2) two (2) man teams on 12 hour shifts. Total deployment of 4 officers per day.

Shift start times to be determined.

As part of the deployment team, 1 officer will be a designated Field Supervisor. This individual will work 5 days per week, 12 hours per shift for a total of 60 hours per week.

Costs:

Standard Officers: 276 HPW (184 HPW Straight time, 92 HPW OT) $10,129/week* Supervisor: 60 HPW (40 HPW Straight time, 20 HPW OT) $2,402/week* 2 Vehicles $1,700/vehicle/month $3,400/month for the vehicles 2 Heliaus Units: $189/Unit / month $378/month for the Heliaus Guard Tour / Reporting units

*weekly estimates may vary due to holidays or changes made to the deployment schedule.

1. ADDITIONAL BILLING TERMS EXTRA SERVICE REQUESTS. Requests received with less than 5 business days’ notice will be billed at the overtime rate. The overtime rate for such additional services will continue to apply until this Agreement is amended in writing to provide for the increase in base hours.

2. A labor strike or other emergency situation that creates a working environment for security professionals that is more hazardous than the normal condition under this Agreement will be cause to negotiate a temporary billing rate for modified services.

3. Allied Universal shall be compensated for all time including preparation, travel to/from, and actual time spent in any court of law, judicial, quasi-judicial or other proceeding, mediation, deposition, arbitration to which Allied Universal is subpoenaed or agrees to appear, arising out of, or relating to, this Agreement at the rate of: $125.00 per hour, for director or manager and $65.00 per hour for all other employees in addition to reasonable costs and expenses incurred. This paragraph will survive the termination of this Agreement.

4. Client understands and agrees that by ordering and receiving the HELIAUS Technology Platform which may include all or some of the HELIAUS Mobile and HELIAUS Portal components (the “HELIAUS Services”) from Allied Universal, Client agrees to the HELIAUS Software-as-a-Service (SaaS) Terms in full (“the HELIAUS Terms”), and same shall solely govern the provision of the HELIAUS Services; provided, however, the invoicing, payment, and billing terms for the HELIAUS Services shall be governed by this Agreement. The Parties acknowledge and agree that the HELIAUS Services are otherwise separate and distinct from the Services under this Agreement, and that any use or non-use of the HELIAUS Services shall not expand the Allied Universal scope of Services and/or liability hereunder. The HELIAUS Terms may be found at www.aus.com/service-terms and by signing the Agreement Client acknowledges receipt and agrees to the HELIAUS Terms. “HELIAUS” is a service mark of Allied Universal.

CLIENT: UNIVERSAL PROTECTION SERVICE, LP d/b/a
Allied Universal Security Services
By: ______________________
Name: Andy Hall
Title: City Manager
Address for Notices:
910 Calle Negocio, San Clemente, CA 92673
By: __________________________
Name: Steve Claton
Title: President Southwest Region
Address for Notices:
__450 Exchange, Irvine, CA 92602_______
Fax: ____________________ Fax: ___________________________

EXHIBIT B

INSURANCE REQUIREMENTS
4879-8556-1707 v2
Exhibit A p.3
1 Time for Compliance. Allied Universal shall not commence work under this Agreement until it has provided evidence satisfactory to the Client that it has secured all insurance required under this section. In addition, Allied Universal shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the Client that the subconsultant has secured all insurance required under this section.
2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Allied Universal, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Allied Universal agrees to amend, supplement or endorse the policies to do so. (A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the substantial equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the substantial equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined single limit for each occurrence. ). (C) Workers' Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident; $1,000,000 disease each employee; and $1,000,000 disease policy limit. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Allied Universal’s profession with limits of not less than $1,000,000 per claim. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. Coverage may be combined with the Commercial General Liability limits.
3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Allied Universal shall provide endorsements on forms approved by the Client to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(i) Additional Insured: The Client, its officials, officers, employees, agents, and volunteers shall be covered as additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement to the extent of Allied Universal’s obligations under Section E.5 of the Agreement and up to the amount of the damage cap set forth in Section E.6 of the Agreement. Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; or (3) contain any other exclusions contrary to the terms of this Agreement. Coverage for additional insureds may be provided by a blanket endorsement that covers additional insureds where required by written contract. For all policies of Commercial General Liability insurance, Allied Universal shall provide endorsements in the form of ISO CG 20 10 12 19 and ISO CG 20 37 12 19 (or endorsements providing substantially similar coverage) to effectuate this requirement. (ii) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Client except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability: Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Client except ten (10) days shall be allowed for non-payment of premium. 4 Professional Liability (Errors & Omissions):
(A) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Client except ten (10) days shall be allowed for non-payment of premium. (B) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend. 4879-8556-1707 v2
Exhibit A p.4
5 Workers' Compensation: Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Client except ten (10) days shall be allowed for non-payment of premium. 6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the Client, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions. 7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall specifically allow Allied Universal or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Allied Universal hereby waives its own right of recovery against the Client, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants. 8 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention greater than $5,000 must be disclosed to the Client and shall protect the Client, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention. 9 Evidence of Insurance. Allied Universal, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the Client, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the Client for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. Upon renewal of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the Client. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Allied Universal shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the Client evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. 10 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, Client has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Client will be promptly reimbursed by Allied Universal or Client will withhold amounts sufficient to pay premium from Allied Universal payments. In the alternative, Client may cancel this Agreement effective upon notice. 11 Acceptability of Insurers. 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 authorized to transact 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. 12 Enforcement of Agreement Provisions (non estoppel). Allied Universal acknowledges and agrees that actual or alleged failure on the part of the Client to inform Allied Universal of non-compliance with any requirement imposes no additional obligation on the Client nor does it waive any rights hereunder.
13 Requirements Not Limiting. Requirement of minimum limits contained in this Appendix is not intended as a limitation on limits,. 14 Insurance for Subconsultants. Allied Universal shall include all subconsultants engaged in any work for Allied Universal relating to this Agreement as additional insureds under Allied Universal's policies, or the Allied Universal shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the Client, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Allied Universal’s subconsultants performing work relating to this Agreement shall be endorsed to name the Client, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Allied Universal shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. Allied Universal shall provide satisfactory evidence of compliance with this section upon request of the Client.