San Marino City Council
February 25, 2022

CITY OF SAN MARINO

CITY COUNCIL AGENDA
Susan Jakubowski, Mayor www.cityofsanmarino.org
Steve Talt, Vice Mayor (626) 300-0700 Phone
Steven W. Huang, DDS, Council Member (626) 300-0709 Fax Gretchen Shepherd Romey, Council Member City Hall Council Chamber Ken Ude, Council Member 2200 Huntington Drive
Marcella Marlowe, Ph.D., City Manager San Marino, CA 91108

ADJOURNED MEETING

OF THE SAN MARINO CITY COUNCIL
FRIDAY, FEBRUARY 25, 2022 AT 8:30 A.M.

SAN MARINO CENTER
1800 HUNTINGTON DRIVE
SAN MARINO, CA 91108
The City of San Marino appreciates your attendance. Citizens’ interest provides the Council with valuable information regarding issues of the community.

Regular meetings are held on the 2nd Wednesday of every month at 6:00 p.m. Typically, adjourned meetings are held on the last Friday of every month at 8:30 a.m.

In compliance with the Americans with Disabilities Act, any person with a disability who requires a reasonable modification or accommodation in order to participate in a meeting should contact the City Clerk via email at [email protected] or by phone at (626) 300-0705 prior to the meeting for assistance.

PURSUANT TO ASSEMBLY BILL (AB) 361
Members of the City Council may teleconference into the meeting without noticing each teleconference location from which a member will be participating in a public meeting.

CORONAVIRUS DISEASE (COVID-19) ADVISORY
To protect both staff, our constituents, and elected officials, members of the public must follow the State and County Health Department’s current Health Officer Orders, which require wearing a mask indoors. Given the seriousness of COVID-19, you are encouraged to watch or listen to the meeting from home, or provide input electronically, if you do not feel comfortable attending in person.

CITY COUNCIL AGENDA – FEBRUARY 25, 2022 PAGE 2 OF 4
How to participate in the meeting from home:
1) Via Computer for Video Streaming:

Website: https://us02web.zoom.us/j/89702533880
Meeting ID: 897 0253 3880
2) Via Phone for Audio Only:

Phone Number: (669) 900-9128
Meeting ID: 897 0253 3880
Submit Public Comments via email:

Email: [email protected]
How to offer public comment from home:
1) Public comment will be accepted by email to [email protected] until 3:00 p.m. the day before the meeting, to be read by the City Clerk during public comment.

Lengthy public comment may be summarized in the interest of time. Any comments received after 3:00 p.m. will be included in the public comment record but will not be read at the meeting.
2) Public comment will be accepted electronically via the zoom.us teleconference module during the meeting. Zoom comments will be taken after the in-person comments.

CALL TO ORDER

PLEDGE OF ALLEGIANCE
ROLL CALL: Council Member Huang, Council Member Shepherd Romey, Council Member Ude, Vice Mayor Talt, and Mayor Jakubowski

POSTING OF AGENDA
The agenda is posted 72 hours prior to each regular meeting at the following locations: City Hall, 2200 Huntington Drive, the Crowell Public Library, 1890 Huntington Drive, and the Stoneman Building, 1560 Pasqualito Drive. The agenda is also posted on the City’s website:
http://www.cityofsanmarino.org.

PUBLIC COMMENTS
The City welcomes public input. Members of the public may address the City Council by completing a public comment card and giving it to the City Clerk prior to the meeting. At this time, the public may address the City Council on items that are not on the agenda. Pursuant to state law, the City Council may not discuss or take action on issues not on the meeting agenda (Government Code Section 54954.2). The Mayor reserves the right to place limits on duration of comments. Staff may be asked to follow up on such items.

CITY COUNCIL AGENDA – FEBRUARY 25, 2022 PAGE 3 OF 4

NEW BUSINESS

1. SELECTION OF FY 2022-23 BUDGET PRIORITY INITIATIVES
Recommendation: Staff recommends that the City Council engage in a discussion and give direction on which priority initiatives they would like staff to incorporate into the City’s Fiscal Year 2022-23 work plan and budget.

2. APPROVAL OF RESOLUTION NO. R-22-05 TO AMEND CITYWIDE

FINANCIAL POLICIES
Recommendation: Staff recommends that the City Council adopt Resolution No. R-22-05 amending the Citywide Financial Policies.

3. APPROVAL OF THE CALIFORNIA EMPLOYERS’ PENSION PREFUNDING

TRUST (CEPPT) PARTICIPATION AGREEMENT WITH CALPERS WITH A ONE-TIME CONTRIBUTION OF $1,000,000

Recommendation: Staff recommends that the City Council (1) approve Resolution No. R-22- 07 approving the CEPPT Participation Agreement with CalPERS for the City to participate in the CEPPT, (2) approve Resolution No. R-22-08 authorizing certain positions in the City to request disbursements from the CEPPT Trust, (3) authorize staff to file the necessary forms with CalPERS, and (4) make a one-time contribution of $1,000,000 to open the CEPPT Section 115 Trust with CalPERS.

4. AWARD OF THE MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM AGREEMENT TO MARIPOSA TREE MANAGEMENT, INC., WITH FISCAL YEAR 2021-22 (YEAR 1) CONTRACT AMOUNT OF $229,195 WITH A TOTAL 7-YEAR ESTIMATED CONTRACT VALUE OF $3,050,931
Recommendation: Staff recommends that the City Council award the multi-year tree maintenance and planting program agreement to Mariposa Tree Management, Inc., with the fiscal year 2021-22 (Year 1) contract amount of $229,195 with subsequent contract fiscal years contingent on an appropriation by the City Council, with the City Manager being authorized to execute the agreement on behalf of the City, as well as two one year contract extension subject to City Council appropriation and satisfactory performance.

5. APPROVAL OF A TEMPORARY CONTRACT HIRING PROGRAM FOR THE

POLICE DEPARTMENT
Recommendation: Staff recommends that the City Council approve the Temporary Contract Police Hiring Program for the next three years and allocate funding from General Fund Reserves each month as needed, not to exceed $130,000 with approval by the City Manager following approval by the City Attorney.

CITY COUNCIL AGENDA – FEBRUARY 25, 2022 PAGE 4 OF 4

CLOSED SESSION

6. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
The City Council is meeting with respect to one (1) matter of existing litigation against the City.

Case name: Justin Mi v. City of San Marino
LASC Case No.: 21STCP01830

7. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)
The City Council is meeting with respect to two (2) matters of significant exposure to litigation against the City.

WRITTEN COMMUNICATIONS OR PUBLIC WRITINGS DISTRIBUTED
This is an opportunity to announce any written communications pertaining to the City received by members of the City Council. All public writings distributed by the City of San Marino to at least a majority of the City Council regarding any item on this agenda will be made available at the Public Counter at City Hall located at 2200 Huntington Drive, San Marino, California 91108, and will also be included in the public agenda packet that will available for review at the City Council meeting.

PUBLIC COMMENTS

FUTURE AGENDA ITEMS

ADJOURNMENT
Dated: February 17, 2022 CHRISTINA BAKER
Posted: February 18, 2022 CITY CLERK

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
• Engaged and Connected Residents
• Efficient, Responsive, and Effective City Services
• Fiscally Responsible and Transparent City Government

BACKGROUND
In 2018, the City Manager began a partnership with two Council Members (Ken Ude and Susan Jakubowski), selected by their peers to be Budget & Finance Liaisons, to overhaul the municipal budgeting process in San Marino to be more transparent and efficient. The Staff Budget Team consists of the City Manager, Finance Director Paul Chung and his staff, and Community Engagement Manager Nicole Cuadras. Since that first year, we are delighted to have continued our partnership with Budget Liaisons Mayor Jakubowski and Council Member Ude.

The budget process in San Marino typically begins at the last meeting in January in a given year; our goal is to adopt the budget by the last meeting in May. The continuous improvements made over the years have yielded successfully adopted budgets on an annual basis, with the previous year’s budget being adopted on May 28, 2021, well in advance of the beginning of the next fiscal year on July 1.

As per the schedule provided in Attachment 1, the City Council engaged in a brainstorming session at the January 28, 2022, City Council meeting. In this brainstorming, Council members offered possible operating budget Priority Initiatives and noted which Capital Improvement Program (CIP) projects they would like to see prioritized. The operational suggestion list from that brainstorm is the focus of today’s discussion. All CIP brainstormed items will be included in the CIP-specific budget sessions in March.

DISCUSSION

In addition to the City Council brainstorming session on January 28, staff has gathered Priority Initiative input in various ways: a community survey (promoted heavily in the City Manager’s TO: Mayor and City Council
FROM: Marcella Marlowe, Ph.D., City Manager
BY: Nicole Cuadras, Community Engagement Manager
DATE: February 25, 2022
SUBJECT: SELECTION OF FY 2022-23 BUDGET PRIORITY INITIATIVES Susan Jakubowski, Mayor
Steve Talt, Vice Mayor
Steven W. Huang, DDS, Council Member
Gretchen Shepherd Romey, Council Member
Ken Ude, Council Member

Weekly Briefing), on social media, and at several speaking engagements. We also held targeted brainstorming sessions with the City Club, the Chinese Club of San Marino, and the Monthly Town Hall meeting on February 7, 2022. Finally, staff also added our ideas to the final list.

A compilation of all brainstormed items is included here as Attachment 2. For each of San Marino’s eight Critical Success Factors, there is a list of the applicable brainstorm items, along with a very brief summary of each item.

Today, the City Council will select which of the possible Priority Initiatives to include in the draft budget proposals, which will then be considered again in April. Today’s selections are not final:
when the budget proposals are presented in April, the Council may reconsider their inclusion.

FISCAL IMPACT AND PROCUREMENT REVIEW
This report possesses no fiscal impact and requires no procurement review.

LEGAL REVIEW
The City Attorney’s office has reviewed this staff report and approved it as to form.

RECOMMENDATION
Staff recommends that the City Council engage in a discussion and give direction on which priority initiatives they would like staff to incorporate into the City’s Fiscal Year 2022-23 work plan and budget.

ATTACHMENTS

1. FY 2022-23 Budget Calendar

2. FY 2022-23 Priority Initiative Brainstormed List

Last Updated January 7, 2022
BUDGET CALENDAR – FY 2022-23
Potential FY 2022-23 Priority Initiatives January 28 (F) • Council will offer feedback on which future CIP items are most desirable, adding any new suggestions • Council will brainstorm new Operational Priority Initiatives for the 8 Critical Success Factors • Community engagement between January 21 and February 11 to gain input on additional potential priority initiatives
FY 2021-22 Midyear Review, Five Year Financial Forecast, and February 9 (W) FY 2022-23 Projections

• Presentation of the FY 2021-22 midyear report, Five Year Financial Forecast (General Fund and CIP), revenue and expenditure projections for FY 2022-23, and updated long term financial projection(s) Selection of FY 2022-23 Priority Initiatives February 25 (F) • Council will receive brief (1-2 sentences) summaries of all proposed items • Council will select priority initiatives for the next year • (CIP Presented to Public Safety Commission and Other Commissions/Boards, as appropriate) Capital Improvement Plan (CIP) Presentation March 18 & 25 (F) • Detailed discussion with Council related to CIP (equipment and infrastructure at different meetings) • (Draft operational budgets shared with appropriate Commissions/Boards for feedback) Preliminary Operating Budget Study Session April 22 & 29 (F) • Departments will present Programs, Goals, and Metrics • Council will offer comment and adjustments
City Manager’s Proposed Budget and Capital Improvement Plan May 27 (F) • Presentation of the proposed budget and CIP
• Either adoption by Council or final adjustments
Final Budget & CIP Adoption - Only If Needed June 8 or 24 (TBD)

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List of All Proposed Priority Initiatives

ENGAGED AND CONNECTED RESIDENTS
Resident Handbook/Mailers
To make residents aware of pertinent City Information, a quarterly mailer would go out to all residents.

These mailers would highlight City processes and services available to residents such as planning and building application processes, all things tree-related, reporting options to notify the City of needed services, etc. This would be accomplished with a quarterly 6-8 page mailer with a different focus each quarter. The cost of design software, printing, and mailing such a document would be about $40,000 - $60,000.

Youth Civic Academy
A Youth Civic Academy would allow upper-high school students a chance to learn more about the City and get involved in their community. The program could span over a school year and include presentations from City staff, attendance at Council Meetings, and input on various City initiatives. This would allow students interested in making a difference in their community to have a place at the table without reconfiguring any Boards, Commissions, or Task Force groups. This initiative could run from $5,000 to as much as the Council would want to invest in transportation, programming, and marketing.

Wayfinding Package for Lacy Park
Besides regulatory signage, Lacy Park does not have wayfinding signage to assist park patrons in locating their picnic site or other amenities such as restroom locations, exits, etc. Aesthetic signage respecting Lacy Park’s heritage would enhance the user experience and update park rules and safety guidelines. The estimated cost to hire a designer and fabricate signage is $20,000 - $40,000.

Expand Translation to Spanish
There has been an increased need for literature translated into Spanish for Community Development customers. Several processes would be conducted more efficiently if brochures were available in Spanish.

A recommended budget addition would be $30,000 for outsourced translation.

EFFICIENT, RESPONSIVE, AND EFFECTIVE CITY SERVICES
Accredited Public Works Agency
Accreditation provides a means of formally verifying and recognizing compliance with the recommended practices outlined in the American Public Works Association Public Works Management Practices Manual and objectively evaluating, verifying, and recognizing compliance with best management practices and improving accountability and operations. This activity would improve responsiveness and service delivery, and quality. Estimated cost is $1,000 - $5,000.

Full-Service Tree Consultation Services
This item would provide residents with at-cost personalized arboreal consultation, including on-site inspection, tree valuation, and condition assessment. Estimated cost per consultation request is $1,000 - $2,500 if contracted-out. If the services are provided in-house, additional staff would be necessary.

Water Conservation Plan
A water conservation enforcement plan (enforcement plan) allows for effective code enforcement of landscape watering and outdoor water use restrictions to address the current water crisis in the State.

The enforcement plan can include higher fines than the current ones and increased community engagement. The enforcement plan will require an additional full-time staff person and an electric vehicle.

Cost estimates = full time employee $85,000 + electric vehicle $37,000 (including insurance and maintenance). Total project estimate $122,000.

Citywide Strategic Plan Update
The City Council and Executive Team engaged in a strategic planning process in the Spring of 2018, just after the new Council Members were seated and the new City Manager arrived. Spring 2023 will mark five years since the development of that plan and associated priorities. There is also a municipal election in November 2022, which could result in up to three new Council Members. Updating the strategic plan would be an excellent tool to refocus the City if there are new policymakers elected, and offer an opportunity for a new Council to team build. Depending on who is selected to facilitate the process, the cost is likely to be approximately $25,000.

SAFE COMMUNITY
Reduction in Speed Programs
The San Marino Police Department has been incorporating traffic safety programs funded by the State of California Office of Traffic Safety Grant. In an effort to bolster more traffic safety programming, an additional Speed Trailer would be requested for the FY 22-23 budget. The speed trailer has been effective and strongly supported by the community. We anticipate initiating the motor officer deployment this fiscal year and rigorously enforcing traffic laws, primarily speed-related violations. The cost estimate for this item is $12,200 for the new speed trailer.

Stormwater Pollution Prevention Ordinance
Although the City has a stormwater ordinance, it requires updating to allow staff to enforce the state and federal regulations protecting stormwater quality from pollutants draining off construction sites. This will reduce pollution in our drainage washes and protect the aquatic environment. A public information campaign would be included in the estimated $5,000 - $10,000 expense.

No Smoking Ordinance for Public Parks
In response to public concern about the effects of secondhand smoke, staff will research and consider an ordinance amendment to expand the areas where smoking is prohibited to include public parks and greenways, schools, sidewalks, walkways, curbs, and gutters. The ordinance would consist of an updated definition of “smoking” such as combustion of any cigar, cigarette, pipe, or similar article, using any form of tobacco, nicotine, or combustible substance; inhaling or exhaling upon, vaporizing, or otherwise using any electronic smoking device. This item would be a shift in policy and does not have a cost estimate aside from staff time dedicated to putting this together. Staff is already working on this item and will likely bring it forward whether the Council selects it as a Priority Initiative or not; however, since it may not be complete prior to the beginning of FY 2022-23, the Council is welcome to still select it as a Priority Initiative for next year.

Purchase Emergency Preparedness Kits
After an emergency, residents may need to survive on their own for several days. Being prepared means having your food, water, and other supplies to last for several days. A disaster supplies kit is a collection of essential items that residents’ households may need in an emergency. The City of San Marino, as part of our disaster preparedness programming offers emergency kits to senior residents that attend the Fire Department’s preparedness training. The kits provided by the City to residents are approximately $100 each. In the past, the City has purchased 100 kits for residents. The kits were very popular with senior residents. The total cost for the program is $10,000.

WELL-MAINTAINED INFRASTRUCTURE
Improve Admissions Booth at Lacy Park
The existing admissions booth is unheated, poorly ventilated, has limited visibility, and looks very un-LacyPark-like. Replacing it with a new and suitable structure would enhance the park entrance and provide improved working conditions for the weekend park attendant. The estimated cost to design and construct is $10,000 - $25,000.

Renovate Parks and Public Works Facilities at Lacy Park and City Hall The existing facilities at Lacy Park and City Hall are from the 1930s and require updated electrical, plumbing, heating/cooling, safety, and communication systems. A renovation will improve staff efficiency and provide safer working conditions. The estimated cost for design is $25,000 - $50,000. Construction could be as low as $1,000,000 given site and architectural challenges.

Funding Implementation of Police Department Utilization Study The space utilization and needs assessment study is expected to be completed this summer. The next step would be to move into the design phase based on the study’s outcome. The estimated cost for design activities is $120,000 - $600,000, contingent on the option selected by the City Council. Construction could be as low as $1,000,000 for a basic renovation to over $6,000,000 for a new facility.

ATTRACTIVE, COMPLEMENTARY BUSINESS DISTRICT
Economic Development Program
Our current program is not achieving the goals of the Council since we have been unable to find the right opportunities for partnership. This is critical because a successful program will grow the City’s tax base through strategic planning and partnerships with key stakeholders and the private sector. Given the stalling of this program, an expert in the field of economic development would be helpful to determine the City’s needs, infrastructure, and strategy to develop a successful program. The total project estimate is $85,000 for consulting services. We believe that there is enough funding proposed in the economic development contractual services budget to cover most, if not all, of this cost, and it would give the City a clear plan of action to pursue.

INVITING AND RELEVANT CITY FACILITIES
Green Action Plan
The goal of the City’s Climate Action and Adaptation Plan (CAAP) would be to develop policies and programs to reduce reliance on fossil fuels with co-benefits of cleaning up the air, provide cost savings to residents, and build resiliency during climate-change-induced, extreme heat events, wildfires, and other risks. Cost estimates = CAAP $150,000-$180,000 + Environmental Review $40,000-$150,000. Total project estimate $190,000 - $330,000. In addition, adoption of a CAAP will have a cost impact to residents and businesses through requirements and programs regulating new construction, remodel/retrofitting, and other operational activities. Additionally, the CAAP could potentially have significant cost implications to the City budget, such as determining if additional or contract staff is required to be budgeted to manage the programs contained within the CAAP.

Community Garden
A community garden is land where plants are grown and maintained by a group of individuals from the community and may produce food for individual consumption or sale, may be designed for beautification of the community, and may be used for educational purposes. A study ($5,000 if performed by a consultant or 80 staff hours if done in-house) would be needed to define the location, size, and operating parameters before proceeding with construction.

BEAUTIFUL, PRESERVED,

SINGLE-FAMILY RESIDENTIAL NEIGHBORHOODS
Vacancy Tax
The City Council has expressed interest in pursuing a tax on vacant properties within the City. We know that such a tax would require a vote. Staff actually recommends that the Council not select this item as a priority initiative, because any action to place this item on the November 2022 ballot would need to take place prior to the beginning of FY 2022-23. Because the Council has already expressed its interest in this tax, staff, in conjunction with the City Attorney’s Office, is already working on this issue and would expect a decision to be reached before this budget goes into effect.

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
• Efficient, Responsive, and Effective City Services
• Fiscally Responsible and Transparent City Government

BACKGROUND
The City of San Marino adopted its Citywide Financial Policies in November 2017 via Resolution No. R-17-25 which articulated financial policies contained within the City’s financial statements and the San Marino Municipal Code (SMMC). These policies were updated on May 9, 2018 as part of Resolution No. R-18-08 based on recommendations of the Strategic Financial Planning Committee as well as government finance best practices tailored for San Marino.

DISCUSSION
Staff is proposing revisions to the Citywide Financial Policies to incorporate new government best practices as well as to allow Finance staff to continue to pursue funding alternatives for unfunded liabilities that continue to escalate as related to our pension and other postemployment benefits (OPEB).

The two proposed changes are as follows:
• Section 1a was updated to change the amount of General Fund Reserves to be maintained at approximately 30% of General Fund revenues, rather than 40% as previously noted in Resolution No. R-18-08. The City historically maintained a high reserve, but maintaining a high reserve is not a prudent use of fiscal funds. The City can lower our reserve to a practical level while also having the fiscal capability to invest into supporting additional CIP projects and paying down unfunded obligations such as pension costs and Other Post-Employment Benefits. Staff believes this will provide a better return on TO: Mayor and City Council
FROM: Marcella Marlowe, Ph.D., City Manager
BY: Paul Chung, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: February 25, 2022
SUBJECT: APPROVAL OF RESOLUTION NO. R-22-05 TO AMEND CITYWIDE

FINANCIAL POLICIES
Susan Jakubowski, Mayor
Steve Talt, Vice Mayor
Steven W. Huang, DDS, Council Member
Gretchen Shepherd Romey, Council Member
Ken Ude, Council Member

investment. The table below provides two scenarios regarding maintaining a 40% reserve versus 30% reserve:

Table 1 – Maintaining 40% (current policy) Reserve
Table 2 – Maintaining 30% (proposed policy) Reserve
The tables above provide the net fiscal impact regarding the remaining surplus that can be transferred to the CIP Fund depending on the reserve levels. If the City Council approves the lowering of the reserve level from 40% to 30%, it will provide an additional $3 million to be transferred to the CIP Fund.

Furthermore, a General Fund Reserve level of 30% still exceeds the Government Finance Officers Association’s (GFOA) recommendation “of no less than two months (or 16.7%) of regular General Fund operating revenues or regular General Fund operating expenditures. The choice of revenues or expenditures as a basis of comparison may be dictated by what is more predictable in a government’s particular circumstances.” For the City of San Marino, revenues are a more predictable source of comparison. Property tax revenues have grown 5% on average the past five fiscal years and is 69% of the overall City’s revenues.

The second requirement was added that the City should contribute additional funding to the General Fund Reserves each year equal to 1.25% of annual General Fund operating reserves. This was a recommendation from the Strategic Financial Planning Committee in 2018 (Attachment 3) and was implemented, but never added to the Financial Policies.

Staff is proposing to add this language to the updated Citywide Financial Policies. This policy provides additional operating reserves to support the General Fund. If the City Council approves the staff recommendation, the total reserve will be 31.25%. • Section 1d was updated to add language for periodic transfers from accumulated General Fund Reserves to pay down unfunded pension or OPEB liabilities. As of June 30, 2021, the net pension liability is $35,674,715 while the OPEB liability is $8,020,865. The City Council would still approve all transfers that are recommended similar to the transfers to $ 15,649,107 Reserves at 6/30/21
(370,549.44) Less 1.25% of annual reserve contribution
(11,857,582.00) Less 30% reserve balance per fiscal policy $ 3,420,976 Surplus Transfer to CIP Fund
$ 15,649,107 Reserves at 6/30/21
(370,549.44) Less 1.25% of annual reserve contribution
(8,893,186.50) Less 30% reserve balance per fiscal policy $ 6,385,371 Surplus Transfer to CIP Fund

the Capital Projects Fund that are done annually. The amended policy just formally permits the action.

FISCAL IMPACT & PROCUREMENT REVIEW
There is no fiscal impact as a result of adoption of this Resolution. There may be fiscal impacts to actions taken by Council in accordance with these policies.

Procurement review is not applicable to this report.

LEGAL REVIEW
The City Attorney’s office has reviewed and approved as to form.

RECOMMENDATION
Staff recommends the Council approve the above-mentioned changes to the Citywide Financial Policies. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to adopt Resolution No. R-22-05 amending the Citywide Financial Policies.”

ATTACHMENTS

1. Resolution No. R-22-05 Adopting Citywide Financial Policies

2. Resolution No. R-18-08 Adopting Citywide Financial Policies

3. Summary of Recommendations from Strategic Financial Planning Committee

4. Fund Balance Guidelines for the General Fund from Government Finance Officers Association (GFOA)

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RESOLUTION NO. R-22-05

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

MARINO, CALIFORNIA ADOPTING CITYWIDE FINANCIAL POLICIES WHEREAS, the City Council of the City of San Marino, California and Resolution No.

R-18-08 articulates the City’s fundamental financial policies.

WHEREAS, the City’s financial policies should be periodically reviewed with intention to modify, add or delete policies as the City’s financial management evolves and as conditioned by relevant law and best practices.

WHEREAS, this Resolution repeals and replaces Resolution No. R-18-08.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MARINO, CALIFORNIA, DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:

SECTION 1. General Fund Reserves –
a. The City shall maintain General Fund Reserves (Unassigned Fund Balance) at approximately 30% of General Fund revenues and contribute additional funding each year equal to 1.25% of annual General Fund operating revenues. b. One-time revenues (including the use of reserves) should only be used for one-time expenditures, such as the purchase of capital equipment or specific infrastructure projects. General Fund reserves should only be used to cover unanticipated/unplanned expenditures or revenue shortfalls due to economic cycles. c. If reserves are used, the City shall begin rebuilding the reserve balance as quickly as practical. Rebuilding may take place over a two- to three-year timeframe. d. Periodic transfers from accumulated General Fund Reserves shall be transferred to the Capital Projects Fund and the Capital Equipment Fund when appropriate for the execution of projects and acquisitions. Periodic transfers from accumulated General Fund Reserves shall also be transferred to a Section 115 Trust to pay down unfunded pension or other postemployment benefits (OPEB) liabilities.

SECTION 2. Annual Budget Adoption -- The annual budget is adopted by the City Council by at least June 30 of each fiscal year, and includes proposed expenditures and the means of financing them. The annual budget provides for the general operations of the City and, as appropriate, its near-term and long-term capital project and capital acquisition needs.

CITY OF SAN MARINO RESOLUTION NO. R-22-05
PAGE 2 OF 5
SECTION 3. Appropriations and Budget Authority -- The City Council approves total budgeted appropriations and any amendments to appropriations throughout the fiscal year. This “appropriated budget” covers substantially all City expenditures. Actual expenditures may not exceed budgeted appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between the operating accounts of any department, and between departments.

The City Council is authorized to transfer and amend capital projects and capital acquisition budgets.

SECTION 4. Financial Reporting – The City shall publish, no less than quarterly, financial reports adequate to inform the City Council on the financial condition of the City.

SECTION 5. Long-Range Financial Planning – The City shall publish as a component of its annual budget a long-range projection for General Fund activities and operations.

SECTION 6. Encumbrance Accounting Systems -- Encumbrance accounting, under which purchase order, contracts and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation, shall be employed as an extension of formal budgetary in the Governmental Fund Types during the year. However, at year-end, all appropriations lapse. Accordingly, encumbrances are cancelled. Encumbrances can be re-appropriated as part of the following year’s budget by action of the City Council.

Encumbrances are not included in reported expenditures.

SECTION 7. GAAP Requirements -- Budgets for the general, special revenue and capital projects funds are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP). Accordingly, actual revenues and expenditures can be compared with related budget amounts without any significant reconciling items. The debt service fund is monitored through the use of appropriate bond indentures; therefore no formal budget is required for this fund and, accordingly, a budgetary comparison may not be required for these funds.

SECTION 8. The Gann Limit -- Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. The City shall calculate and publish its annual Gann Limit as a component of the annual budgeting process.

SECTION 9. Capital Assets -- The City will capitalize assets and equipment with individual minimum value of $5,000 or greater.

SECTION 10. Investment Policy – The City shall at all times maintain compliance with the California Government Code with respect to the content and function of its Investment Policy. The Investment Policy shall be reviewed by the City Treasurer and adopted by the City Council each fiscal year.

CITY OF SAN MARINO RESOLUTION NO. R-22-05
PAGE 3 OF 5
SECTION 11. Investment Reporting – The City Treasurer shall render and review monthly reports to the City Council which shall include all reportable elements specified in the City’s Investment Policy.

SECTION 12. Procurement and Purchasing – The City shall maintain a Procurement Policy and organize its acquisition and accounting procedures to achieve compliance with all terms of the Procurement Policy.

SECTION 13. Long-Term Liabilities – The City shall evaluate long-term liabilities (debt borrowings, compensated absences, claims and judgments, CalPERS pensions, annual other postemployment benefits, etc.) on a case-by-case basis with appropriate deference to the short- and long-term cash requirements implicit to the liabilities. When resources are adequate, the City shall establish a Debt Management Policy that modifies this Section.

SECTION 14. Capital Planning – The City shall publish with its annual budget a longrange capital improvement program, identifying, at a project level, sources of current and future funding. When resources are adequate, the City shall establish Capital Planning Policies that take into account the City’s unique organizational characteristics including the services we provide, how the services are structured, and the complete depiction of our external environment. The City shall exploit all external options to pay for portions of its infrastructure needs. We will endeavor to avoid capital project funding sourced solely from City dollars.

SECTION 15. Annual Audit – The City shall publish its annual financial statements, prepared in coordination with its external auditors, by at least December 31 of each fiscal year.

The financial statements shall be presented to the City Council at a public meeting, and implications discussed, each year. The City shall endeavor to achieve audits with minimal auditor “findings.” The City shall swiftly and thoroughly respond, at every level of institutional function, to audit “significant deficiencies.”
SECTION 16. Cost Recovery – The City shall employ the principles and practices of cost recovery for services in a manner consistent with generally accepted cost of services and cost allocation best practices.

SECTION 17. Risk Management – The City shall maintain a vibrant risk management program in order to effectively plan for and mitigate the effects of known and unknown risk and liability. The City shall evaluate joint-powers risk pooling arrangements, pursuant to the California Government Code; arrange and administer programs for effective and efficient selfinsurance; appropriately purchase excess insurance and reinsurance; and arrange for appropriate insurance for property and other lines of coverage.

SECTION 18. Grants Management – The City shall establish a Grants Management Policy that most efficiently coordinates the various elements of grant applications; grant awards; grant spending and reimbursement; interim and final financial and narrative reporting; and grant closure.

CITY OF SAN MARINO RESOLUTION NO. R-22-05
PAGE 4 OF 5
SECTION 19. Corporate Technology – The City shall endeavor to maintain corporate and user-based technology necessary to maintain appropriate organizational function.

SECTION 20. Pension Obligations – The City shall not prepay its pension obligations by issuing pension obligation bonds: this is the equivalent of paying off one debt with another debt. The City shall not accelerate its pension payments by making annual contributions higher than annual payments required by CalPERS. The City shall pay the minimum annual contributions required by CalPERS.

PASSED, APPROVED AND ADOPTED, at a Regular Meeting of the City Council of the City of San Marino, California, on this 25th day of February, 2022. ______________________________

SUSAN JAKUBOWSKI, MAYOR
ATTEST:
__________________________________

CHRISTINA BAKER, CITY CLERK

CITY OF SAN MARINO RESOLUTION NO. R-22-05
PAGE 5 OF 5

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SAN MARINO )
I, Christina Baker, City Clerk of the City of San Marino, California, hereby certify that Resolution No R-22-05 was adopted by the City Council of the City of San Marino at a Regular Meeting held on the 25th day of February, 2022, and that the same was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________

CHRISTINA BAKER, CITY CLERK

CITY OF SAN MARINO

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Attachment 2 Page 23 of 348
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Attachment 3 Page 27 of 348
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2/2/22, 2:56 PM Fund Balance Guidelines for the General Fund https://www.gfoa.org/materials/fund-balance-guidelines-for-the-general-fund In the context of financial reporting, the term fund balance is used to describe the net position of governmental funds calculated in accordance with generally accepted accounting principles (GAAP). Budget professionals commonly use this same term to describe the net position of governmental funds calculated on a government’s budgetary basis.1 While in both cases fund balance is intended to serve as a measure of the financial resources available in a governmental fund; it is essential that differences between GAAP fund balance and budgetary fund balance be fully appreciated.

1. GAAP financial statements report up to five separate categories of fund balance based on the type and source of constraints placed on how resources can be spent (presented in descending order from most constraining to least constraining): nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance.2 The total of the amounts in these last three categories (where the only constraint on spending, if any, is imposed by the government itself) is termed unrestricted fund balance. In contrast, budgetary fund balance, while it is subject to the same constraints on spending as GAAP fund balance, typically represents simply the total amount accumulated from prior years at a point in time.

BEST PRACTICES
Fund Balance Guidelines for the
General Fund
Governments should establish a formal policy on the level of unrestricted fund balance that should be maintained in the general fund for GAAP and budgetary purposes.

Attachment 4 Page 29 of 348
2/2/22, 2:56 PM Fund Balance Guidelines for the General Fund https://www.gfoa.org/materials/fund-balance-guidelines-for-the-general-fund

2. The calculation of GAAP fund balance and budgetary fund balance sometimes is complicated by the use of sub-funds within the general fund. In such cases, GAAP fund balance includes amounts from all of the subfunds, whereas budgetary fund balance typically does not.

3. Often the timing of the recognition of revenues and expenditures is different for purposes of GAAP financial reporting and budgeting. For example, encumbrances arising from purchase orders often are recognized as expenditures for budgetary purposes, but never for the preparation of GAAP financial statements.

The effect of these and other differences on the amounts reported as GAAP fund balance and budgetary fund balance in the general fund should be clarified, understood, and documented.

It is essential that governments maintain adequate levels of fund balance to mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stable tax rates.  In most cases, discussions of fund balance will properly focus on a government’s general fund. Nonetheless, financial resources available in other funds should also be considered in assessing the adequacy of unrestricted fund balance in the general fund.

GFOA recommends that governments establish a formal policy on the level of unrestricted fund balance that should be maintained in the general fund for GAAP and budgetary purposes.3 Such a guideline should be set by the appropriate policy body and articulate a framework and process for how the government would increase or decrease the level of unrestricted fund balance over a specific time period.4In particular, governments should provide broad guidance in the policy for how resources will be directed to replenish fund balance  should the balance fall below the level prescribed.

Appropriate Level.  The adequacy of unrestricted fund balance in the general fund should take into account each government’s own unique circumstances. For example, governments that may be vulnerable to natural disasters, more dependent on a volatile revenue source, or potentially subject to cuts in state aid and/or federal grants may need to maintain a higher level in the unrestricted fund balance.  Articulating these risks in a fund balance policy makes Attachment 4 Page 30 of 348
2/2/22, 2:56 PM Fund Balance Guidelines for the General Fund https://www.gfoa.org/materials/fund-balance-guidelines-for-the-general-fund it easier to explain to stakeholders the rationale for a seemingly higher than normal level of fund balance that protects taxpayers and employees from unexpected changes in financial condition. Nevertheless, GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures.5 The choice of revenues or expenditures as a basis of comparison may be dictated by what is more predictable in a government’s particular circumstances.6 Furthermore, a government’s particular situation often may require a level of unrestricted fund balance in the general fund significantly in excess of this recommended minimum level. In any case, such measures should be applied within the context of long-term forecasting, thereby avoiding the risk of placing too much emphasis upon the level of unrestricted fund balance in the general fund at any one time. In establishing a policy governing the level of unrestricted fund balance in the general fund, a government should consider a variety of factors, including:

1. The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of unrestricted fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile);

2. Its perceived exposure to significant one-time outlays (e.g., disasters, immediate capital needs, state budget cuts);

3. The potential drain upon general fund resources from other funds, as well as, the availability of resources in other funds;

4. The potential impact on the entity’s bond ratings and the corresponding  increased cost of borrowed funds;

5. Commitments and assignments (i.e., governments may wish to maintain higher levels of unrestricted fund balance to compensate for any portion of unrestricted fund balance already committed or assigned by the government for a specific purpose).  Governments may deem it appropriate to exclude from consideration resources that have been committed or assigned to some other purpose and focus on unassigned fund balance, rather than on unrestricted fund balance.

Attachment 4 Page 31 of 348
2/2/22, 2:56 PM Fund Balance Guidelines for the General Fund https://www.gfoa.org/materials/fund-balance-guidelines-for-the-general-fund Use and Replenishment.

The fund balance policy should define conditions warranting its use, and if a fund balance falls below the government’s policy level, a solid plan to replenish it. In that context, the fund balance policy should:

1. Define the time period within which and contingencies for which fund balances will be used;

2. Describe how the government’s expenditure and/or revenue levels will be adjusted to match any new economic realities that are behind the use of fund balance as a financing bridge;

3. Describe the time period over which the components of fund balance will be replenished and the means by which they will be replenished.

Generally, governments should seek to replenish their fund balances within one to three years of use.  Specifically, factors influencing the replenishment time horizon include:

1. The budgetary reasons behind the fund balance targets;

2. Recovering from an extreme event;

3. Political continuity;

4. Financial planning time horizons;

5. Long-term forecasts and economic conditions;

6. External financing expectations.

Revenue sources that would typically be looked to for replenishment of a fund balance include nonrecurring revenues, budget surpluses, and excess resources in other funds (if legally permissible and there is a defensible rationale).  Year-end surpluses are an appropriate source for replenishing fund balance.

Unrestricted Fund Balance Above Formal Policy Requirement.  In some cases, governments can find themselves in a position with an amount of unrestricted fund balance in the general Attachment 4 Page 32 of 348
2/2/22, 2:56 PM Fund Balance Guidelines for the General Fund https://www.gfoa.org/materials/fund-balance-guidelines-for-the-general-fund fund over their formal policy reserve requirement even after taking into account potential financial risks in the foreseeable future.  Amounts over the formal policy may reflect a structural trend, in which case governments should consider a policy as to how this would be addressed.  Additionally, an education or communication strategy, or at a minimum, explanation of large changes in fund balance is encouraged. In all cases, use of those funds should be prohibited as a funding source for ongoing recurring expenditures.

Notes:

1. For the sake of clarity, this recommended practice uses the terms GAAP fund balance and budgetary fund balance to distinguish these two different uses of the same term.

2. These categories are set forth in Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

3. Sometimes restricted fund balance includes resources available to finance items that typically would require the use of unrestricted fund balance (e.g., a contingency reserve). In that case, such amounts should be included as part of unrestricted fund balance for purposes of analysis.

4. See Recommended Practice 4.1 of the National Advisory Council on State and Local Budgeting governments on the need to "maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees because of temporary revenue shortfalls or unpredicted one-time expenditures" (Recommended Practice 4.1).

5. In practice, a level of unrestricted fund balance significantly lower than the recommended minimum may be appropriate for states and America’s largest governments (e.g., cities, counties, and school districts) because they often are in a better position to predict contingencies (for the same reason that an insurance company can more readily predict the number of accidents for a pool of 500,000 drivers than for a pool of fifty), and because their revenues and expenditures often are more diversified and thus potentially less subject to volatility.

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2/2/22, 2:56 PM Fund Balance Guidelines for the General Fund https://www.gfoa.org/materials/fund-balance-guidelines-for-the-general-fund

6. In either case, unusual items that would distort trends (e.g., one-time revenues and expenditures) should be excluded, whereas recurring transfers should be included.

Once the decision has been made to compare unrestricted fund balance to either revenues and/or expenditures, that decision should be followed consistently from period to period.

This best practice was previously titled Appropriate Level of Unrestricted Fund Balance in the General Fund.

Board approval date: Wednesday, September 30, 2015
Attachment 4 Page 34 of 348

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
• Efficient, Responsive, and Effective City Services
• Fiscally Responsible and Transparent City Government

BACKGROUND
The City of San Marino is a member of the California Public Employee Retirement System (CalPERS) pension system. As such, the City is subject to CalPERS’s funding policies, investment projections and actual performance, and actuarial assumptions – each of which impacts the level of funding commitment that is required on an annual basis and the level of unfunded liability that is carried by the City. Over the past decade, pension costs (both annual and long-term liabilities) have increased. In the efforts to rein in pension costs, the State passed the Public Employees’ Pension Reform Act (“PEPRA”) which created new pension formulas that would be applied across all CalPERS member jurisdictions to new employees; the old formulas would apply only to employees and retirees who had already vested in the system (“classic” employees). The budgetary impacts of PEPRA will become more tangible in a decade or two.

Meanwhile, pension costs continue to rise.

Since 2003, the Unfunded Accrued Liability (UAL) has grown, resulting primarily from CalPERS’ recognition that its discount rate (i.e. rate of expected return on investment) is overly optimistic. The UAL increases when CalPERS’ actual investment performance does not meet expectations. City obligations also increase when CalPERS decides to reduce its discount rate, as it did during the three-year period of Fiscal Year 2018-19 to 2020-21, with reductions from

7.5% to 6.8%.

TO: Mayor and City Council
FROM: Marcella Marlowe, Ph.D., City Manager
BY: Paul Chung, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: February 25, 2022
SUBJECT: APPROVAL OF THE CALIFORNIA EMPLOYERS’ PENSION

PREFUNDING TRUST (CEPPT) PARTICIPATION AGREEMENT

WITH CALPERS WITH A ONE-TIME CONTRIBUTION OF
$1,000,000
Susan Jakubowski, Mayor
Steve Talt, Vice Mayor
Steven W. Huang, DDS, Council Member
Gretchen Shepherd Romey, Council Member
Ken Ude, Council Member

Staff worked together with the City Council Finance Liaisons (Mayor Jakubowski and Council Member Ude) and City Treasurer Han to strategize on the best financial option to tackle rising pension costs and the best utilization of the City’s cash on hand. On January 26, 2022, Finance staff met with members of the CalPERS team, the Finance Liaisons, the City Treasurer and some of the prior members of the Strategic Financial Planning Committee to discuss the option to open an IRS Section 115 Trust for the pension program.

DISCUSSION
CalPERS has established a program called the California Employers’ Pension Prefunding Trust (CEPPT), which is an IRS Section 115 Trust set up for the sole purpose of receiving employer contributions that will pay for pension costs. This program has been around since 2019 with $72.2 million in assets under management and has over 59 participants including cities, counties, school districts, and special districts. Section 115 Trusts are used by cities and counties to reserve funds against pension liabilities. Funds can be transferred from a Section 115 Trust to pay for pension costs; they cannot be used for other purposes.

Overall, the City has been in a strong fiscal condition due to the strength in property tax revenues and the prudent fiscal decisions the City Council has implemented over the years. The City continues to keep high reserves, much higher than most agencies, which range from 20- 25%. The City’s investment policy keeps the City’s cash and investments safe and liquid, but the return on investments is limited. Opening up a CEPPT Section 115 Trust with CalPERS provides additional leverage to increase the City’s return on investments, while maintaining safety and liquidity. Another benefit would be that the City’s overall finances will improve, as pre-funding the pension costs will lower the overall pension liability, improving the City’s overall balance sheet.

The Finance Liaisons and City Treasurer recommend that the City Council authorize the establishment of a Section 115 Trust with CalPERS for the CEPPT program. Furthermore, it is recommended that the Council seed this Trust with $1M in initial funding from available budgetary reserves.

On April 27, 2018, the Strategic Financial Planning Committee provided their findings and recommendations regarding the City’s financial condition, pension obligations, and infrastructure needs (Attachment I). One of the committee’s recommendations was for the City to not accelerate its pension payments by making annual payments higher than Annual Required Payments based upon CalPERS’ invoice. This was the correct decision, as the accelerated pension payments would not have improved the City’s financials, as the UAL has grown due to the performance of CalPERS discount rate. Staff’s recommendation to open up an IRS Section 115 Trust does not go against the Strategic Financial Planning Committee’s recommendation as the increased revenues earned over Local Agency Investment Fund (LAIF) investment can be used to pay ongoing annual pensions costs

Why should the City open an IRS Section 115 Trust?
The City would have total financial control of the Section 115 Trust. At this time, staff is recommending a one-time contribution to open the Section 115 Trust. There is no required annual funding amount. The City can make deposits into the Trust as funds become available to the City. If funds are deposited, they can be withdrawn in later years to assist with financing future pension contribution payments. Additional benefits are provided below:
• Higher-yielding investments
The CEPPT program has averaged 6.21% yield since inception. With higher yield, the City would benefit from the effects of compounding interest. While the City’s general reserves are invested in LAIF, there is more flexibility in how Section 115 Trust funds can be invested. The chart below provides a diagram of the City’s initial investment of $1,000,000 over 5 years in CEPPT (CalPERS) versus LAIF:
• Reduce unfunded liabilities and future contributions
The CEPPT program provides the City the ability to utilize the interest earned to pay the annual contribution and unfunded pension liability. • Improve financial reporting outcomes
The City’s financials will improve, as the City will be setting aside additional funds to pay down the pension obligation.
• CalPERS low administrative fee of 25 basis points (0.25%) CalPERS CEPPT program is the largest provider of Section 115 Trusts with the lowest Administrative Fee at 25 basis points. CalPERS will not invoice the City separately for their service; the agency would debit the cost out of the interest earned.

CEPPT does come with risk in that it would be more prone to market and economic volatility compared to the City’s current investment in LAIF or US Treasury investments. Also, the IRS Section 115 Trust is irrevocable, meaning the investment can be only utilized for pension costs and not to pay for other unforeseen costs.

Decision by City Council
If Council decides to approve the $1M contribution, staff recommends utilizing the excess cash from FY 2020-21 of $3.4M ($5.4M if the fiscal policy was approved to reduce operating reserves from 40% to 30%) to fund the one-time contribution to fund the CEPPT. If Council approves the $1M contribution, the excess cash would decrease the amount that would be able to be transferred to the Capital Projects Fund. Staff will be coming back to Council at the March 9, 2022 City Council Meeting regarding the surplus funds being transferred to the Capital Projects Funds which will include any changes the Council approves today.

Staff believes opening up a CEPPT IRS Section 115 Trust with CalPERS is fiscally prudent and will secure a healthy financial future for the City.

FISCAL IMPACT & PROCUREMENT REVIEW
As stated above, if the City opens up a CEPPT Section 115 Trust, the one-time contribution deposit into the CEPPT will earn interest, thus decreasing the amount of pension contributions to be deposited by the City in future years. The fiscal impact will be $1,000,000 for CEPPT, which will be paid out of the excess cash the City Council could transfer to the Capital Investment Program (CIP) fund. If the City decides to open the CEPPT Section 115 Trust, it would be recorded as an asset to the City’s financials and it would reduce the City’s overall Pension liability. The status and performance of the CEPPT Section 115 Trust will be included with the Quarterly Status Report to City Council.

This report requires no procurement review.

LEGAL REVIEW
The City Attorney’s office has reviewed and approved as to legal form.

RECOMMENDATION
Staff recommends that that the City Council approve Resolution No. R-22-07 and Resolution No. R-22-08 approving the forms necessary for the City to participate in the CEPPT and authorize staff to file the necessary forms with CalPERS. If Council agrees with staff’s recommendation, an appropriate motion would be:
“I move to (1) approve Resolution No. R-22-07 approving the CEPPT Participation Agreement with CalPERS for the City to participate in the CEPPT, (2) approve Resolution No. R-22-08 authorizing certain positions in the City to request disbursements from the CEPPT Trust, (3) authorize staff to file the necessary forms with CalPERS, and (4) make a one-time contribution of $1,000,000 to open the CEPPT Section 115 Trust with CalPERS.”

ATTACHMENTS

1. Strategic Financial Planning Committee Findings and Recommendations Report

2. Resolution No. R-22-07

3. Resolution No. R-22-08

4. Delegation of Authority to Request Disbursements California Employers’ Pension Prefunding Trust (CEPPT)

5. California Employers’ Pension Prefunding Trust (CEPPT) Certification of Funding Policy

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April 27, 2018
TO: Honorable Mayor and Members of the City Council
FROM: Strategic Financial Planning Committee
SUBJECT: Findings and Recommendations Regarding the City’s Financial Condition, Pension Obligations and Infrastructure Needs

BACKGROUND
At the City Council meeting of March 8, 2017, the City Council was presented a memorandum by the Interim City Manager, subject matter, “Long Term Strategic Financial Plan”. In the memorandum, it stated, “The City of San Marino is facing two major ongoing financial burdens – the California Public Employees Retirement System (CalPERS) unfunded liability and the City’s aging infrastructure.” The memorandum goes on to describe in a little more detail the problem of each and ultimately recommends “the formation of a Long Term Strategic Financial Planning Ad Hoc Committee of the City Council, appoint advisors that include the City Treasurer, City Manager, Finance Director, and two members of the community selected by the Ad Hoc Committee and confirmed by the City Council.” This Committee has become known as the “Strategic Financial Planning Committee (Committee).

After listening to the discussion and having separate conversations with several City Council Members, the Interim City Manager, and the current City Manager, there was a consistent direction for this Committee which is described below. The core task at hand, however, was to develop a long term financial plan for the City in order for it to address its pension and infrastructure needs. To do this, the Committee focused on the following areas:

1. Cash Flow Projection: Develop a multi-year financial forecast/cash flow projection.

For future planning purposes this forecast should be at least a five year forward looking document; however, for illustrative purposes as it relates to this Committee, should project out 20 to 30 years to reflect the future pension payments for the City’s unfunded pension liabilities. This forecast includes currently known revenues as well as any known or anticipated projected expenses, including projected pension and infrastructure funding requirements. It also incorporates the potential loss of the public safety tax when it is scheduled to sunset at the end of fiscal year 2020.

2. City General Fund Reserves: Gain a better understanding of the City’s financial condition and make a determination as to an adequate reserve level, both in the shortterm and long-term. Make a recommendation to the City Council as to an appropriate reserve level. This could be one “Citywide” reserve to cover fluctuations in operating revenues, general liability or workers’ compensation claims and fluctuating pension payments or individual reserves designated for specific purposes. Either way, the reserve level(s) would be established by the City Council as City policy and could be modified in the future as appropriate. Should current reserve funds be made available to

ATTACHMENT I

fund current funding requirements, it must be recognized as a one-time source and used to fund one-time expenditures versus ongoing operations.

3. Infrastructure: Make a recommendation on the best way to approach the aging infrastructure that balances the best quality (standard) infrastructure at the lowest (affordable) cost. This should include a recommendation for an acceptable standard for City streets, for example set a goal for an average rating. In addition, a recommendation should include the timing for bringing the streets up to the proposed standards, any immediate needs that should be addressed and incorporated into the Cash Flow Projections.

4. Growing Pension Costs: Review the City’s projected future pension costs, explore options regarding plan adjustments/changes and make a recommendation on what the city should contribute to CalPERS annually to cover both the “normal cost” and the “unfunded liability”.

Assumptions
Findings and recommendations, especially the development of the Financial Outlook, were based on a series of assumptions and information presented to the Committee. These include, but are not limited to:

1. Year-over-year revenue growth and in most case expenditure growth was upon five years of historical financial information obtained from City records.

2. The current Public Safety Property Tax expires at the end of fiscal year 2020. This revenue source was removed from future projections beginning in fiscal year 2021.

3. Growth in pension payments to CalPERS is based upon projections received from the City’s outside actuary. No payments in addition to the projected minimum requirements are built into the Outlook.

4. Recommended funding for streets and pavement improvements are based upon a condition assessment study completed by NCE on behalf of the City.

5. Suggested funding for facilties, sewers and sidewalks is based upon a February 2017 staff report that was presented to the City Council. These number will need to be updated as new information is obtained.

6. Funding for a number of known projects are not included in the Outlook. These include Stoneman, San Marino Center, other possible capital equipment needs, etc.

7. Based upon prior City Council action, the City will establish an operating reserve. Current reserves in excess of that being recommended by the Committee will be transferred to the Capital Improvement Fund.

FINDINGS AND RECOMMENDATIONS
A summary of the Committee’s recommendations can be found in Attachment 1.

General City Financial Condition
The City of San Marino is facing a number of challenges similar to most other California cities with rising pension costs and the desire to address its deferred infrastructure needs. Unlike most cities, however, San Marino is starting from a stronger financial position, with current reserve levels being approximately 85%-90% of annual operating revenues. The building of

these reserves occurred over a number of years and was primarily aided by having the Public Safety Property Tax in place, not spending money on necessary infrastructure improvements, and under estimating annual revenues.

When establishing an adequate reserve level, cities tend to look at a variety of factors which predominantly focus on the stability/predictability of both revenues and expenditures. In San Marino’s case, the City relies heavily on property taxes as its primary source of funding (approximately 60%), which is not subject to much fluctuation during various economic cycles.

Cities that rely more heavily on sales tax and other economically driven tax revenues are impacted more when the economy slows down. The pressure on the City’s finances are predominantly threefold: 1) rising pension costs, 2) the desire to better fund its infrastructure program (streets, facilities, sewer system, and sidewalks), and 3) the loss of the public safety property tax which is set to expire in 2020. Presently, this tax generates approximately $3.2 million annually which, if not extended, will reduce the City’s annual revenue by this amount with no specifically identified reduction in expenses.

The Committee reviewed several years of historical financial information, tied this information back to the City’s audited Comprehensive Annual Financial Reports, and then used the past trends to project the growth to the City’s revenues and expenditures for the next 30 years. The Committee recognizes that the reliability of the accuracy of these projections diminish the further out the projections go; however, Committee members wanted to show what happens to the City’s budget and reserves once the Public Safety Property Tax expires and the projected increases to the City’s pension payments are realized as the result in changes to CalPERS assumptions and methodologies. Finally, built into the City’s Financial Forecast is a suggested funding level to more adequately maintain the City’s infrastructure.

The results of this have been incorporated into Attachment 2, San Marino Multi-Year Financial Outlook.

Recommendation:

It is recommended that the City prepare an annual Multi-Year Financial Outlook that includes at least two years of historical information and five years of forward looking projections and that this Outlook be presented to the City Council prior to the submittal of the City’s annual budget.

Preferably the Outlook would be presented in the fall of each year and would serve as the guiding document for the preparation of the subsequent year’s annual budget.

Reserves
The City is currently maintaining reserves in excess of 85% of annual operating revenues.

While not a bad position to be in, the City is tying up resources that could be used for other priorities. Given the general stability of the City’s revenues, this level is higher than necessary to meet fluctuations in the City’s future revenues. The actual determination of the appropriate level of General Fund reserves is a policy decision. The Government Finance Officers Association (GFOA) recommends that reserve levels be directly related to the degree of uncertainty the local government faces. The greater the uncertainty, the greater the financial resources necessary. Past experience should be used as a guide, with particular attention being paid to: predictability of revenues and volatility of expenditures, the exposure (perceived or real) to significant one-time outlays (e.g., disasters, immediate capital needs, state budget 3 of 9 Page 43 of 348
cuts, etc.), the diversity of the revenue base, consistent operating surpluses/occasional or frequent operation deficits, and uneven cash flows, requiring short-term borrowing.

Another factor influencing the size of a city’s General Fund Reserve relates to the number of reserve it maintains. If there is one citywide reserve to cover both operating needs and revenue fluctuations as well as other liabilities such as claims against the city or workers’ compensation claims, then the reserve should be higher. If, on the other hand, a city were to maintain separate reserves for specific obligations, then the reserve could be smaller.

Regardless of the size of the reserve, reserves are meant to meet unanticipated or unplanned needs and should be treated as a one-time/short term funding source. If a city needs to tap into its reserves which results in a reserve balance falling below the adopted policy, the policy should include guidelines as to the acceptable period of time the reserve balance should be rebuilt. Typically this would be over several years, depending upon how much of the reserves were used.

Recommendation:

1. Direct staff to prepare a written reserve policy for City Council approval with the following principals incorporated into the policy:
a. Establish a single General Fund Operating Reserve instead of multiple specific purpose reserves.
b. Maintain a Reserve balance at approximately 40% of the City’s annual operating revenues. This currently represents $11 million of the City’s $24.2 million reserve balance.
c. In order to maintain this reserve level, the City Council should contribute additional funding each year equal to 1.25% of annual operating revenues. d. One-time revenues (includes the use of reserves) should only be used for one-time expenditures such as the purchase of capital equipment or specific infrastructure projects. Operating reserve balances should only be used to cover unanticipated/ unplanned expenditures or revenue shortfalls due to economic cycles. e. If reserves are used, the City should begin rebuilding the reserve balance as quickly as practical which may mean over a two to three year timeframe. f. The current reserve balance in excess of $11 million should be transfer to the Capital Improvement Fund prior to the end of the current fiscal year to be available for projects beginning in fiscal year 2019.

Pension Obligations and Other Post Employment Benefits
As of June 30, 2016, the City’s unfunded liability as calculated by CalPERS was $28.8 million.

This was comprised of an actuarial accrued liability (AAL) of $106 million, offset by $77.2 million in Plan assets. The $28.8 million figure is the one the City needs to focus on, since it comes from CalPERS and will be the basis for your annual payments. In the past, the City was provided with a $92 million unfunded liability based upon a calculation of the Standford Group.

While the Committee did not focus much attention on this number, a general conclusion on why there is a big difference between the Stanford number and CalPERS is the assumed earnings rate on investments used by each organization. CalPERS is assuming 7.75%, while the Stanford Group is probably using a 2% to 3% earnings rate. 4 of 9 Page 44 of 348
The Committee met with the City’s pension consultant to explore options to either reduce or eliminate this liability, including ways to exit the Plan and perhaps implement a defined contribution plan. After much discussion and some angst, the Committee came to the conclusion that exiting CalPERS was not a viable option. Given the contract between CalPERS and the City and the current interpretation of State law by the California Supreme Court, it would be too costly and/or very impractical to leave the Plan and establish some other retirement option. Also, you cannot close thePlan to new hires, while leaving existing employees in CalPERS. In addition, of the $106 million in AAL, $65.2 million represents benefits already earned by former City employees who have retired. While a portion of the Plan assets would asset some of this liability, it is a liability that the City would be responsible for regardless of what it decided to do for current and past employees who have not yet retired.

In order to provide the City Council with a more accurate financial picture regarding the impact the $28.8 million liability will have on future City budgets, the City’s pension consultant provided project payments to CalPERS over the next 30 years or until the current unfunded liability is paid. These figures have been built into the Financial Outlook, along with the final six year of debt service payments related to an earlier decision to pre-fund a portion of the City’s pension liability.

The Committee also discussed the option of pre-paying this liability through the issuance of a Pension Obligation Bond (POB) or paying more than the annual minimum payment to CalPERS and came to the conclusion that the City should not issue POBs or pay more than the minimum required.

Regarding Other Post-Employment Benefits (OPEB), the Committee discussed paying off the City’s current $221,000 unfunded liability and concluded that it should not.

Recommendations:

1. The City should not prepay its $221,000 unfunded OPEB liability.

2. The City should not prepay its pension payments by issuing Pension Obligation Bonds (POBs) to pay off this debt with another debt.

3. Each year the City receives an invoice/rate from CalPERS. A portion of this rate is to pay for the Normal Costs (the cost of the pension benefit earned that year) and a portion is to pay down the $28.8 million unfunded liability. The Committee recommends that the City not accelerate its pension payments by making annual payments higher than Annual Required Payments based upon CalPERS’ invoice.

Infrastructure/Capital Spending Plan
As with most cities, San Marino has deferred adequately funding the maintenance of its infrastructure. This includes streets, sidewalks, facilities, and sewer. In February of 2017, then City staff presented a report discussing the City’s infrastructure needs and proposed funding requirements. Current staff could not find documentation/files supporting this information and wanted an independent review of the information. Staff only had time to complete the street conditions analysis for the Committee. The results of this analysis were presented with several funding level options to consider. With respect to the other three infrastructure areas, the Committee decided to include the suggested funding levels that were including in the February 2017 report in the Financial Outlook. These numbers, however, have not been confirmed by the current City Manager or Public Works Director and a separate analysis should be completed as 5 of 9 Page 45 of 348
quickly as possible. In addition, it should be noted that there was a discussion regarding Stoneman, but no conclusion or recommendation was made due to limited information regarding its present condition. As such, the financial information incorporated in the Financial Outlook does not include special funding for Stoneman improvements.

Recommendations:

1. Like an annual budget which spells out the City’s operational spending priorities, the City should prepare a capital improvement spending plan that identifies and prioritizes the City’s infrastructure needs. This plan should:
a. cover multiple years,
b. identify the projects to be funded,
c. the funding source, if known, for each project, and
d. the year in which the project will move forward

2. Regarding street improvements, the City should appropriate $3.5 million per year for the next 14 years in order to bring all streets up to a satisfactory level. Beginning in year 15, this level of funding could be reduced to approximately $640,000 annually in order to maintain the City streets. These figures are in today’s dollars and may need to be adjusted in the future for inflation.

3. The City should complete condition assessments of its facilities, sewer system and sidewalks to determine adequate funding levels in order to bring them up to acceptable standards.

4. The City should exlore external options to pay for a portion of its infrastructure needs.

Funding should not all come from City dollars. There are county, state and federal funds available, along with other potential third grants.

Conclusion
The City is currently in a good financial position with good reserves and fairly stable and predictable revenues. Even with this, there are headwinds the City must be prepared to address. The first related to the increasing pension payments. After discussing various options, the Committee concluded that it would be extremely expensive for the City to exit the Plan and thus the City will have to make room in its future budgets to cover this cost. The second headwind is the expiration of the Public Safety Tax beginning in fiscal year 2021. But for that, it would appear that the City could manage the projected growth on operating expenses as well as the growth in pension payments.

The ability to adequately fund the City’s infrastructure needs is the third headwind. While refined numbers for facilities, sewer system and sidewalk repairs are not available, current information suggests that the City would need $4.73 million annually to “adequately” fund its infrastructure needs and begin catching up on its deferred maintenance. This number would drop significantly beginning in fiscal year 2032. The challenge is how to pay for these improvements. Some options for the City to consider include:

1. Reducing costs elsewhere in the City’s budget (approximately $5 million annually)

2. Seeking third party funding for some of the capital projects

3. Issuing long-term debt to pay for projects that have a long-term useful life

4. Lowering expectations and do not fund infrastructure improvements at the suggested level

5. Asking residents to support an extension of the current special tax.

Each of these options should be considered and discussed, even if some are ultimately rejected by the City Council.

Finally, the current City reserves (approximately $25 million) are healthy and larger than they need to be to still provide a level of financial comfort. The Committee is recommending a 40% of annual operating revenues reserve level which would start at $11 million and be adjusted each year as revenues grow or decline. Whether the City needs to start at the recommended 40% level or build up to it over the next several years and use a larger portion of the current reserves to begin funding infrastructure projects is an additional decision for the City Council.

Attachments

1. Summary of Recommendations

2. San Marino Multi-Year Financial Outlook

3. Charts Prepared by Council Member Ude

Attachment 1

SUMMARY OF RECOMMENDATIONS
General Financial Conditions

1. It is recommended that the City prepare an annual Multi-Year Financial Outlook that includes at least two years of historical information and five years of forward looking projections and that this Outlook be presented to the City Council prior to the submittal of the City’s annual budget. Preferably the Outlook would be presented in the fall of each year and would serve as the guiding document for the preparation of the subsequent year’s annual budget.

Reserves

2. Direct staff to prepare a written reserve policy for City Council approval with the following principals incorporated into the policy:
a. Establish a single General Fund Operating Reserve instead of multiple specific purpose reserves.
b. Maintain a Reserve balance at approximately 40% of the City’s annual operating revenues. This currently represents $11 million of the City’s $24.2 million reserve balance.
c. In order to maintain this reserve level, the City Council should contribute additional funding each year equal to 1.25% of annual operating revenues. d. One-time revenues (includes the use of reserves) should only be used for one-time expenditures such as the purchase of capital equipment or specific infrastructure projects. Operating reserve balances should only be used to cover unanticipated/ unplanned expenditures or revenue shortfalls due to economic cycles. e. If reserves are used, the City should begin rebuilding the reserve balance as quickly as practical which may mean over a two to three year timeframe. f. The current reserve balance in excess of $11 million should be transfer to the Capital Improvement Fund prior to the end of the current fiscal year to be available for projects beginning in fiscal year 2019.

Pension Obligations and Other Post Employment Benefits

1. The City should not prepay its $221,000 unfunded OPEB liability.

2. The City should not prepay its pension payments by issuing Pension Obligation Bonds (POBs) to pay off this debt with another debt.

3. Each year the City receives an invoice/rate from CalPERS. A portion of this rate is to pay for the Normal Costs (the cost of the pension benefit earned that year) and a portion is to pay down the $28.8 million unfunded liability. The Committee recommends that the City not accelerate its pension payments by making annual payments higher than Annual Required Payments based upon CalPERS’ invoice.

Infrastructure/Capital Spending Plan

1. Like an annual budget which spells out the City’s operational spending priorities, the City should prepare a capital improvement spending plan that identifies and prioritizes the City’s infrastructure needs. This plan should:
a. cover multiple years,
b. identify the projects to be funded,
c. the funding source, if known, for each project, and
d. the year in which the project will move forward

2. Regarding street improvements, the City should appropriate $3.5 million per year for the next 14 years in order to bring all streets up to a satisfactory level. Beginning in year 15, this level of funding could be reduced to approximately $640,000 annually in order to maintain the City streets. These figures are in today’s dollars and may need to be adjusted in the future for inflation.

3. The City should complete condition assessments of its facilities, sewer system and sidewalks to determine adequate funding levels in order to bring them up to acceptable standards.

4. The City should exlore external options to pay for a portion of its infrastructure needs.

Funding should not all come from City dollars. There are county, state and federal funds available, along with other potential third grants.

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RESOLUTION NO. R-22-07

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

MARINO, CALIFORNIA APPROVING AN AGREEMENT AND

ELECTION TO PREFUND EMPLOYER CONTRIBUTIONS TO A

DEFINED BENEFIT PENSION PLAN THROUGH CALPERS
WHEREAS, the City provides pension benefits to employees and currently funds its pension expenses on a " pay-as-you-go" basis; and
WHEREAS, the City desires to prefund employer contributions by establishing a defined benefit pension plan trust account, which would allow the City to invest its pension assets in higher-yielding investments; and
WHEREAS, in order to establish a defined benefit pension plan trust account with CalPERS, the City must approve entering into an agreement with CalPERS entitled "Agreement and Election of City of San Marino to Prefund Employer Contributions to a Defined Benefit Pension Plan."

NOW, THEREFORE, THE SAN MARINO CITY COUNCIL RESOLVES, FINDS AND DETERMINES AS FOLLOWS:

SECTION 1. The City Manager or his/her designee is authorized to execute the Agreement and Election of the City of San Marino to Prefund Employer Contributions to a Defined Benefit Pension Plan through CalPERS, a copy of which is attached to this resolution as Exhibit A.

SECTION 2. The City Manager or his/her designee is authorized to take any additional actions necessary to participate in the CalPERS CEPPT program.

SECTION 3. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 25th day of February, 2022. ______________________________

SUSAN JAKUBOWSKI, MAYOR
ATTEST:
_______________________

CHRISTINA BAKER

CITY CLERK

CITY OF SAN MARINO RESOLUTION NO. R-22-07
PAGE 2 OF 2

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SAN MARINO )
I, CHRISTINA BAKER, City Clerk of the City of San Marino, California, hereby certify that Resolution No. R-22-07 was adopted by the City Council of the City of San Marino at a Regular Meeting held on the 25th day of February, 2022, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________

CHRISTINA BAKER

CITY CLERK

RESOLUTION NO. R-22-08

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

MARINO, CALIFORNIA APPROVING AN AGREEMENT AND

ELECTION TO PREFUND EMPLOYER CONTRIBUTIONS TO A

DEFINED BENEFIT PENSION PLAN THROUGH CALPERS
WHEREAS, the City of San Marino (“City” or “Employer”) desires to prefund employer contributions by establishing a defined benefit pension plan trust account, which would allow the City to invest its pension assets in higher-yielding investments; and WHEREAS, concurrently with the adoption of this resolution, the City Council also adopted a resolution authorizing the establishment of a defined benefit pension plan trust account with CalPERS and approving an agreement in connection therewith;

NOW, THEREFORE, THE SAN MARINO CITY COUNCIL RESOLVES, FINDS AND DETERMINES AS FOLLOWS:

SECTION 1. Pursuant to Government Code Section 53621, the City Council hereby delegates to the incumbent that is serving as City Treasurer the authority to invest or to reinvest funds deposited into the defined benefit pension plan trust to fund the payment of employer pension contributions, or to sell or exchange securities purchased for that purpose, including the City Treasurer’s selection of the investment strategy for the City’s defined benefit pension plan trust for implementation by a CalPERS plan fiduciary, provided, that in accordance with Government Code Section 53622, the City Treasurer shall discharge its duties with respect to the investment of such funds as follows:

A. Solely in the interest of, and for the exclusive purposes of providing benefits to, participants in the City’s pension plan, minimizing employer contributions thereto, and defraying reasonable expenses of administering the plan.

B. With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims.

C. Shall diversify the investments of the funds so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so.

SECTION 2. The City Council hereby delegates to the incumbents that are serving as City Manager and Finance Director the authority to request on behalf of Employer disbursements from the City’s Pension Prefunding Trust and to certify as to the purpose for which the disbursed funds will be used; provided, in accordance with Government Code Section 53622, funds deposited into the Pension Prefunding Trust shall only be held for the purpose of providing

CITY OF SAN MARINO RESOLUTION NO. R-22-08
PAGE 2 OF 3
benefits to participants in the City’s pension plan and defraying reasonable expenses of administering that plan.

SECTION 3. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 25th day of February, 2022. ______________________________

SUSAN JAKUBOWSKI, MAYOR
ATTEST:
_______________________

CHRISTINA BAKER

CITY CLERK

CITY OF SAN MARINO RESOLUTION NO. R-22-08
PAGE 3 OF 3

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SAN MARINO )
I, CHRISTINA BAKER, City Clerk of the City of San Marino, California, hereby certify that Resolution No. R-22-08 was adopted by the City Council of the City of San Marino at a Regular Meeting held on the 25th day of February, 2022, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________

CHRISTINA BAKER

CITY CLERK

THIS PAGE LEFT BLANK INTENTIONALLY

California Public Employees’ Retirement System
California Employers’ Pension Prefunding Trust (CEPPT)
400 Q Street, Sacramento, CA 95811
www.calpers.ca.gov
Delegation of Authority to Request Disbursements
California Employers’ Pension Prefunding Trust
(CEPPT)

RESOLUTION
OF THE
(GOVERNING BODY)
OF THE
(NAME OF EMPLOYER)
The
(GOVERNING BODY)
delegates to the incumbents
in the positions of
(TITLE)
and
(TITLE)
, and/or
(TITLE)
authority to request on behalf of the
Employer disbursements from the Pension Prefunding Trust and to certify as to the purpose for which the disbursed funds will be used.

By
Title
Revised 07/2019
Date
Witness

THIS PAGE LEFT BLANK INTENTIONALLY

California Public Employees’ Retirement System
California Employers’ Pension Prefunding Trust (CEPPT)
400 Q Street, Sacramento, CA 95811
www.calpers.ca.gov
California Employers’ Pension Prefunding Trust (CEPPT)

CERTIFICATION OF FUNDING POLICY
EMPLOYER NAME: ________________________________________________________________ SECTION I: CEPPT Asset Allocation Strategy Selection
As the employer, I certify that my agency chooses the following CEPPT asset allocation strategy (select one):

CEPPT Asset Allocation
Strategy
10 Year Expected
Rate of Return
Expected Volatility
(Standard Deviation)
Strategy 1 5.0% 8.2%
Strategy 2 4.0% 5.2%
Concurrent
Enrollment
- -
SECTION II: Contributions and Reimbursements
As the employer, I certify that we intend to make CEPPT contributions and request eligible reimbursements in the following manner:

Contributions:

We intend to make an initial contribution of $___________________ on or around _____________. (MM/YYYY)
For fiscal year ending June 30, ______we intend to contribute the estimated following amount(s) in:
(YYYY)
Strategy 1: $______________________ and/or
Strategy 2: $______________________
For fiscal year ending June 30, ______ we intend to contribute the estimated following amount(s) in:
(YYYY)
Strategy 1: $______________________ and/or
Strategy 2: $______________________

California Public Employees’ Retirement System
California Employers’ Pension Prefunding Trust (CEPPT)
400 Q Street, Sacramento, CA 95811
www.calpers.ca.gov
California Employers’ Pension Prefunding Trust (CEPPT)

CERTIFICATION OF FUNDING POLICY
Reimbursements:

During the two years period identified above, do you intend to seek a reimbursement? Yes
No
If you answered yes:

For fiscal year ending June 30, _______ we intend to seek an approximate reimbursement of $_________________. (YYYY)
For fiscal year ending June 30, _______ we intend to seek an approximate reimbursement of $_________________. (YYYY)
COMMENTS:

www.calpers.ca.gov
We understand we will be asked to provide information to CalPERS as required to facilitate compliance with Governmental Accounting Standards Board (GASB) reporting requirements and we agree to provide this information to CalPERS on a timely basis.

We understand that CEPPT will be reported in aggregate as a fiduciary fund for CalPERS reporting.

CEPPT assets will not be reported under GASB 67/68.

We understand that the cash flow information provided in Section II are estimated amounts and is being used for CEPPT asset management purposes. There is no implied commitment to contribute or reimburse.

Employer Name
Printed Name of Person Signing the Form
Title of Person Signing the Form
Signature Date
Designated Employer Contact Name
California Public Employees’ Retirement System
California Employers’ Pension Prefunding Trust
(CEPPT)
400 Q Street, Sacramento, CA 95811
California Employers’ Pension Prefunding Trust (CEPPT)

CERTIFICATION OF FUNDING POLICY
Title of Designated Employer Contact
Phone # Email Address

California Public Employees’ Retirement System
California Employers’ Pension Prefunding Trust
(CEPPT)
400 Q Street, Sacramento, CA 95811
www.calpers.ca.gov
California Employers’ Pension Prefunding Trust (CEPPT)

CERTIFICATION OF FUNDING POLICY
This page provides instructions to complete each section of the Certification of Pension Funding Policy.

SECTION I: CEPPT Asset Allocation Strategy Selection
Your CEPPT assets will be invested using the asset allocation strategy checked here. Each strategy has a different assumed 10 year expected rate of return and risk profile.

SECTION II: Contributions and Reimbursements
Here we ask you to indicate how you expect to make contributions to, and seek reimbursement from, the trust. All contributions are voluntary and never required. This section is for informational purpose.

There is no implied commitment to contribute or reimburse. Information provided is intended for investment forecast and asset management purposes.

STRATEGIC PLAN CRITICAL SUCCESS FACTORS
• Efficient, Responsive, and Effective City Services
• Safe Community
• Well-Maintained Infrastructure
• Fiscally Responsible and Transparent City Government
• Beautiful, Preserved, Single-Family Neighborhoods

BACKGROUND
The City’s tree inventory consists of over 11,000 trees. Of these, the 10,000 City street trees have been maintained on a set cycle of 4 years for hardwood trees and annually for all palms. The nearly 900 trees in Lacy Park have historically not been on a regular maintenance cycle, and likewise for the trees located in City facilities.

When the 2018 tree pruning agreement with Mariposa Landscaping completed early this fiscal year, the Department took the opportunity to update the agreement and enhance the services necessary to meet the service level expectations of residents and the City Council such as increasing the quantity of trees annually replaced, consistently watering young trees, and performing safety pruning on low hanging branches to clear fire apparatus.

The City’s urban forester consulted with neighboring cities that recently updated their tree maintenance documents to glean from them the current best tree management/maintenance practices and incorporate those into the bid documents. This took more time than originally anticipated due to the research effort and the new bidding documents and contract specifications from the City Attorney that staff had to become familiar with and incorporate into our TO: Mayor and City Council
FROM: Marcella Marlowe, Ph.D., City Manager
BY: Michael Throne, PE, Director of Parks and Public Works/City Engineer DATE: February 25, 2022
SUBJECT: AWARD OF THE MULTI-YEAR TREE MAINTENANCE AND

PLANTING PROGRAM AGREEMENT TO MARIPOSA TREE
MANAGEMENT, INC., WITH FISCAL YEAR 2021-22 (YEAR 1)
CONTRACT AMOUNT OF $229,195 WITH A TOTAL 7-YEAR
ESTIMATED CONTRACT VALUE OF $3,050,931
Susan Jakubowski, Mayor
Steve Talt, Vice Mayor
Steven W. Huang, DDS, Council Member
Gretchen Shepherd Romey, Council Member
Ken Ude, Council Member

contracting process. In the interim period, however, Mariposa performed tree maintenance on a limited and month-to-month basis.

The new and expanded scope of work includes normalized street, parks and facility tree pruning, service request tree pruning, crown raising, palm tree pruning, tree removals, stump removals, tree planting, tree root pruning, tree watering, crew rental (used when trees are too large for the Department to handle), emergency/call-out crew rental, certified arborist consulting services, and updating the existing City tree inventory database.

The anticipated service start date for a new agreement is March 1, 2022 and the agreement term is 5 years with the possibility of up to two, one-year extensions contingent on satisfactory performance. Year 1 (this fiscal year) will be limited to work that can be accomplished between March 1 and June 30 using the funds remaining in the operating budget. Years 2 (FY 2022-23) through 5 (FY 2025-26), and any subsequent option years will be full contract years and would require budget approval.

DISCUSSION
On February 3, 2022, a bid opening for the project was conducted. Four bids were received ranging from $414,845 to $708,500. Mariposa Tree Management, Inc., was the lowest bidder and their references were checked for satisfactory performance. A summary of the bids received is shown below.

VENDOR BID AMOUNT
Mariposa Tree Management, Inc. $414,845
North Star Landscape Care $493,260
West Coast Arborists, Inc. $637,650
Four Seasons Landscaping $708,500
2018 Mariposa Landscaping Agreement
(FY 2021-22 budget)
$264,000

FISCAL IMPACT & PROCUREMENT REVIEW
As illustrated below, the estimated total 7-year contract value is $3,050,931 including the extensions. Each contract year, commencing in Year 3, the unit prices from the original bid schedule may increase up to 5 percent maximum (with no limit on decrease) per year reflecting the percent change in the Construction Cost Index (CCI) between March and March of each year. The CCI is calculated from data reported by Engineering News-Record, a nationallyrecognized compiler of cost data for over 100 years. Year 1 (the current fiscal year) is a partial year and Year 2 (FY 2022-23) and beyond would be full years of the contract. Consequently, as the unit prices are adjusted from March to March, there will be no cost adjustment necessary for Year 2. Beginning in March 2023, each year could be adjusted as shown in the table.

ESTIMATED 7-YEAR CONTRACT VALUE
Contract Year Contract Value
Year 1 (FY 2021-22) $229,195 (partial work at bid unit price) Year 2 (FY 2022-23) $414,845 (Year 1 full bid) (contingent on FY 2021-22 operating budget appropriation)
Year 3 (FY 2023-24) $435,587 Estimated (Year 2 contract value + 5%) (contingent on appropriation)
Year 4 (FY 2024-25) $457,366 Estimated (Year 3 contract value + 5%) (contingent on appropriation)
Year 5 (FY 2025-26) $480,234 Estimated (Year 4 contract value + 5%) (contingent on appropriation)
Year 6-Extension (FY 2026-27) $504,246 Estimated (Year 5 contract value + 5%) (contingent on appropriation)
Year 7-Extension (FY 2027-28) $529,458 Estimated (Year 6 contract value + 5%) (contingent on appropriation)
Estimated 7-Year Contract Value including
Extensions
$3,050,931
The agreement provides for two, one-year extensions (for a total of 7 years) subject to satisfactory performance by the Contractor and appropriations by the City Council.

The Department followed the purchasing ordinance for contracts exceeding $30,000 and advertised the work for 30-days. As part of the annual budget process, the City Council has the flexibility to increase, decrease, or eliminate the budget for this work. Tree maintenance and planting for Year 2 (FY 2022-23) is contingent on an appropriation by the City Council of a budget for Year 2 of $414,845. No additional appropriation is needed for Year 1 at this time.

LEGAL REVIEW
The City Attorney has reviewed this staff report and approved as to form.

RECOMMENDATION
Staff recommends the City Council accept the bids and award the multi-year tree maintenance and planting program agreement to Mariposa Tree Management, Inc. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to award the multi-year tree maintenance and planting program agreement to Mariposa Tree Management, Inc., with the fiscal year 2021-22 (Year 1) contract amount of $229,195 with subsequent contract fiscal years contingent on an appropriation by the City Council, with the

City Manager being authorized to execute the agreement on behalf of the City, as well as two one year contract extensions subject to City Council appropriation and satisfactory performance.”

ATTACHMENTS

1. Bid proposal from Mariposa Tree Management, Inc.

2. Contract documents for the multi-year tree maintenance and planting program

CITY OF SAN MARINO

MULTI-YEAR TREE MAINTENANCE

AND PLANTING PROGRAM

NOTICE INVITING BIDS
AND

PLANS AND SPECIFICATIONS

PROJECT NO. 52-4150
Prepared By:

City of San Marino
Office of the City Engineer
Parks and Public Works Department
2200 Huntington Drive, San Marino, California 91108
(626) 300-0765
[email protected]

INCLUDING ALL ADDENDA
BIDS DUE 10:00 AM JANUARY 27FEBRUARY 3,
2022 [ADDENDUM #2]
Plans and Specifications Issued December 22, 2021
This is a Prevailing Wage Project Under the Laws of the State of California

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Multi-year Tree Maintenance and Planting Program
Prj. No. 52-4150

TABLE OF CONTENTS

NOTICE INVITING BIDS

INSTRUCTIONS TO BIDDERS
BIDDER’S PROPOSAL INCLUDING BID SCHEDULE

GENERAL PROVISIONS
Section 1 – Terms, Definitions, Abbreviations, and Symbols Section 2 - Scope of the Work
Section 3 – Control of the Work
Section 4 - Control of Materials
Section 5 – Legal Relations and Responsibilities
Section 6 – Prosecution and Progress of the Work
Section 7 – Measurement and Payment
Section 8 – Intentionally Omitted
Section 9 – Miscellaneous
Special Provisions

TECHNICAL SPECIFICATIONS

APPENDICES
Appendix 1 – Agreement
Appendix 2 - Certified Payroll Forms
Appendix 3 - Close-out Documents
Appendix 4 - City of San Marino Street Tree Policy
Appendix 5 – Public Tree Pruning Area Map

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NIB - 1 Prj. No. 52-4150

CITY OF SAN MARINO

NOTICE INVITING BIDS

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
PUBLIC NOTICE IS HEREBY GIVEN that the City of San Marino hereinafter referred to as the Agency, invites sealed bids for the above stated Project and will receive such bids in the office of the City Clerk, City Hall, 2200 Huntington Drive, San Marino, California 91108 up to the time of 10:00 a.m., on Thursday, January 27February 3, 2022 at which time they will be publicly opened at City Council chambers inside City Hall. Bids received after the time and date for the bid opening will not be accepted and shall be returned unopened. [Addendum #2]
The work to be done is described in these Bid and Contract Documents for the above stated Project.

The general Scope of Work is as follows:

DESCRIPTION AND LOCATION OF WORK
The City of San Marino is requesting proposals from suitably qualified contractors that have demonstrated experience in providing tree maintenance and planting services to local governments and who can provide the best possible tree care to maintain the City’s lush urban forest at the level expected by the residents, City Council, City staff, and visitors to the community.

The City tree inventory consists of over 11,000 trees. Of these, the 10,000 City street trees have been maintained on a set cycle of four years for hardwood trees and annually for all palms. The nearly 900 Lacy Park trees have historically not been on a regular maintenance cycle, and likewise for the trees located in City facilities.

The anticipated service start date for a new agreement is March 1, 2022 and the agreement term is 5 years with the possibility of up to 2, one-year extensions.

The scope of work generally includes: street and parks tree pruning, service request tree pruning, tree crown raising, palm tree pruning, tree removals, stump removals, tree planting, tree root pruning, tree watering, crew rental, emergency/call-out crew rental, ISA certified arborist consulting, and adding or updating GPS data and documentation of street, park, open space, facility, and other City trees to the existing City tree inventory database.

Contractor shall furnish labor, material, equipment, services, transportation, fuel and specialized skills to perform work involved in the Project.

GENERAL
In conformance with State of California Assembly Bill 2036 complete bid sets will be available electronically, at no cost, at https://pbsystem.planetbids.com/portal/22759/portalhome. It shall be the responsibility of the prospective bidders to download and print the bid documents for review and bid preparation, as well as to obtain any addenda and responses to pre-bid requests for clarification that have been provided by the Agency. Bidders shall also check the website for addenda which will be posted no later than 72 hours prior to the bid opening. Each addendum will include a

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conformation sheet indicating receipt of the addendum. This sheet must be signed and included with the bid for each addendum issued. Bids, which do not include the confirmation sheet(s) for each addendum, if any, may be rejected.

The Agency does not warrant, represent, or guarantee the accuracy, completeness, or adequacy of information provided from any third party source. The Agency shall not be responsible or liable in any way whatsoever for any loss or damages of whatever kind, nature, or scope, including, but not limited to, time, money or goodwill arising from errors, inaccuracies, or omissions in any documents and/or information retrieved from any third party source.

Prospective bidders are encouraged to review the official version of all documents upon which they plan to rely. For a complete set of bid documents or the applicable RFP, all interested parties are directed to The Agency’s website at www.CityofSanMarino.org or accessing https://pbsystem.planetbids.com/portal/22759/portal-home.

A Pre-Bid Conference will held for this project at 9 AM Tuesday January 1125, 2022. Lacy Park and City street parkways are open daily for self-guided inspection. A Zoom meeting link will be provided no later than 5 business days before through the PlanetBid.com webpage for the project. [Addendum #1 modified by Addendum #2]
Bids shall be written clearly and legibly in ink in conformance with the Instruction to Bidders. All bids shall be submitted to the Agency’s front desk in a sealed envelope plainly marked on the outside with “SEALED BID FOR MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM - DO NOT OPEN WITH REGULAR MAIL”.

If using Federal Express or other such service for bid submittal, the contents of the submittal must be noted on the outside of that envelope as stated above.

Each bid must be accompanied a certified or cashier’s check payable to the City of San Marino, or a satisfactory bid bond executed by the bidder and an acceptable surety, in an amount equal to ten percent (10%) of the total aggregate bid amount. The successful bidder will be required to furnish and pay for performance and payment bonds acceptable to the Agency.

The Contractor to whom the Contract is awarded, and any subcontractor under such Contractor, shall hereby ensure that minority and women business enterprises will be afforded full opportunity to submit bids for subcontracts. Further, there shall be no discrimination in employment practices on the basis of race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, age, or sex in compliance with Government Code 12990.

Attention is directed to the provisions of the Bid and Contract Documents, which require retention from payments to the Contractor to secure performance under the Contract. Pursuant to California Public Contract Code Section 22300, and at the request and expense of the Contractor to whom the contract is awarded, acceptable securities (securities listed in Government Code Section 16430, bank or savings and loan, certificates of deposit, interest bearing demand deposit accounts or standby letters of credit) equivalent to the retention amount shall be permitted in substitution of money withheld by the Agency to ensure performance under the Contract. Such securities shall be deposited with the Agency or with a California or Federally chartered bank or savings and loan as escrow agent who shall return such securities, along with any interest thereon, to the Contractor upon satisfactory completion and acceptance of the Work by the Agency.

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The successful Bidder must comply with all prevailing wage laws applicable to the Project. Pursuant to Section 1773 of the Labor Code, the general prevailing wage rates in the county, or counties, in which the work is to be done have been determined by the Director of the California Department of Industrial Relations. These wages set forth in the General Prevailing Wage Rates for this project are available at the California Department of Industrial Relations’ Internet web site at https://www.dir.ca.gov/oprl/DPreWageDetermination.htm
In accordance with the provisions of the California Labor Code, contractors or subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform work on a public project pursuant to Section 1777.1 or Section 1777.17 of the California Labor Code. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract. Any public money that is paid or may have been paid to a debarred subcontractor by a contractor on the Project shall be returned to the Agency. The Contractor shall be responsible for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the Project.

The Agency reserves the right to reject any or all bids, to waive any irregularity(ies), and to take all bids under advisement for a period of sixty (60) calendar days after the date the bids are publicly opened. All costs incurred by bidders as a result of preparing bids under this Notice Inviting Bids shall be the sole responsibility of each bidder. This Notice Inviting Bids neither creates nor imposes any obligation upon the Agency to enter into a contract.

Liquidated damages are required by law and will apply to the Project in accordance with the Special Provisions.

Bidder shall be a licensed contractor pursuant to the Business and Professions Code and shall be licensed in the appropriate classification(s) of contractor’s license(s), for the work bid upon, and shall maintain the license throughout the duration of the Contract. Bidders must possess a current State of California C61/D-49 and C-27 Contractor’s License or a combination of Specialty Contractor’s Licenses sufficient to cover all of the work to be performed by the prime contractor. Agency will accept bids only from Bidders that (along with all subcontractors listed in the bid) are currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. Subject to Labor Code Sections 1771.1(c) and (d), any Bid from an unregistered Bidder or that includes an unregistered subcontractor shall be returned and not considered; provided that if Bidder is a joint venture (Business & Professions Code Section 7029.1) or if federal funds are involved in the Contract (Labor Code Section 1771.1(a)), Agency may accept a non-complying Bid provided that Bidder and all listed subcontractors are registered at the time of contract award.

This is a 5-year contract with up to 2, 1-year extensions.

Information and Questions: All questions and request for information must be submitted in writing no later than Monday January 24, 2022 and by email to [email protected]. Responses will be available on the project’s www.PlanetBid.com page:
https://pbsystem.planetbids.com/portal/22759/portal-home.

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BY ORDER OF
December 22, 2021
Michael W. Throne, PE, City Engineer

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INSTRUCTIONS TO BIDDERS

1. AVAILABILITY OF CONTRACT DOCUMENTS
Contract Documents may be obtained from the Agency at the location(s) and at the time(s) indicated in the Notice Inviting Bids. Any charge for the Contract Documents is stated in the Notice Inviting Bids.

The official version of all Contract Documents, which include plans, Instructions to Bidders, General Conditions, Special Provisions, bid documents, sample contract documents, certified payroll documents, close-out documents, any other appendices, attachments or exhibits (if any), and addendum (if any) shall be on the Agency’s website at www.PlanetBids.com. It shall be the Bidder’s responsibility to thoroughly review the Contract Documents prior to submitting a bid. Referenced standards, codes, regulations and other materials may not be available on the website. It shall be the Bidder’s responsibility to find sources for all such references.

The Agency shall also make the Contract Documents available for review in electronic form at one or more plan rooms at no charge, as required by Public Contract Code section 20103.7. Please Note:

Prospective Bidders who choose to review the Contract Documents at a plan room must contact the Agency to obtain the required Contract Documents if they decide to submit a bid. The Agency, does not warrant, represent, or guarantee the accuracy, completeness, or adequacy of information provided from any third party source, including any plan room. The Agency shall not be responsible or liable in any way whatsoever for any loss or damages of whatever kind, nature, or scope, including, but not limited to, time, money or goodwill arising from errors, inaccuracies, or omissions in any documents and/or information retrieved from any third party source.

The Agency does not assume any liability or responsibility based on any defective or incomplete copying, excerpting, scanning, faxing, downloading or printing of the Bid Documents.

2. EXAMINATION OF CONTRACT DOCUMENTS AND WORK SITE
Bidders shall be solely responsible for examining the Project work site and the Contract Documents, including any addenda issued during the bidding period, and for informing themselves with respect to local labor availability, means of transportation, necessity for security, laws and codes, local permit requirements, wage scales, local tax structure, contractors’ licensing requirements, availability of required insurance, and other factors that could possibly affect the Work. Bidders are responsible for consulting the standards referenced in the Contract Documents. Bidders shall be solely responsible for their failure to inspect the Project work site and to examine the Contract Documents and inform themselves, shall proceed at their sole risk, and no relief for error or omission will be given except as required under State law. Each Bidder shall identify any and all ambiguity(ies), inconsistency(ies),clarification(s) and/or necessary additional information regarding the Contract Documents and Project work prior to preparing its bid.

Each prospective Bidder is responsible for fully acquainting itself with conditions of the Site (which may include more than one location) and those relating to construction of the Work, fully understanding the facilities, difficulties and restrictions which may affect the cost or effort required to complete the Work.

By submitting a bid the Bidder certifies that:
a) The Bidder has carefully examined the Project Site, has taken steps to obtain all information concerning site conditions and is familiar with all conditions (including information that the Agency

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made available to all Bidders during the bid process, costs and physical conditions) affecting the performance of the Work, and
b) The Bidder has carefully examined the Project work and Contract Documents and its Bid, and affirmatively represents that the Project work, Contract Documents and its Bid contain no significant error, inconsistency or omission and the Bidder has requested additional information and clarification from the Agency in writing with respect to any such error(s), inconsistency(ies), ambiguity(ies), conflict(s) or omission and has received such information and clarification from the Agency, and c) The Bid and Contract Documents are sufficient to have enabled the Bidder to determine the cost and duration of the Work and to enter into the Contract and the Bid and Contract Documents are sufficient to construct the Work in accordance with all applicable laws, statutes, buildings codes and regulations and otherwise to fulfill the Bidder’s obligations under the Contract, and d) The Bidder has requested each Subcontractor to carefully examine the Project Site, information concerning Site conditions, and Bid and Contract Documents with respect to the portion of the Work to be performed by such Subcontractor and that each Subcontractor has certified to the Bidder that such Subcontractor requires no additional information or clarification to perform the portion of the Work to be performed by such Subcontractor except as may have been requested in writing by the Bidder and to which the Agency has responded.
e) That any deficiencies, ambiguities, conflicts, omissions or errors remaining in the Contract Documents at bid time have been considered in Bidder’s costs of performing the work and are including within the total Bid amount, and that Bidder will build and deliver the project as defined in the Contract Documents as whole and complete project within the contract time and cost.

3. ESTIMATED QUANTITIES OF WORK OR MATERIAL
To the extent provided, the quantities of work or material stated in the unit price items of the Bidding Sheet(s) are supplied only to give an indication of the general scope of work. The Agency does not expressly or by implication agree that the actual amount of work or material will correspond therewith.

The Agency reserves the right to increase or decrease the quantity amount of any unit price item of the work by an amount up to and including 25 percent of any bid item(s), or to omit portions of such work as may be deemed necessary or expedient by the Engineer without a change in the unit price. See General Provisions and Specifications for exceptions to the 25% limit, if applicable.

The Agency reserves the right to eliminate any item of work in its entirety in accordance with the General Provisions.

4. INTERPRETATION OF CONTRACT DOCUMENTS & REQUESTS FOR

CLARIFICATION
The Bidder shall interpret the Contract Documents as a whole and inseparable. The Contract Documents are complementary and cooperative. Anything specified in the written documents and not shown on the plans, or shown on the plans and not specified in the Contract Documents shall be as though shown on or specified in both. Discrepancies, conflicts, ambiguities, omissions and errors from any part of the Contract Documents shall immediately be brought to the attention of the Agency by submission of a written Request for Clarification. Any Request for Clarification must be sent electronically via the City’s PlanetBids.com webpage no later than the date specified in the Notice Inviting Bids. The Bidder shall be

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responsible for the prompt delivery of the request. The Agency may or may not respond to Bidder’s requests for clarification.

5. ADDENDA
The Agency reserves the right to revise the Contract Documents prior to the bid opening date. Revisions, if any, shall be made by written addenda. Any response by the Agency to a request for clarification to the Contract Documents will be made by written addendum and will be posted on the Agency’s website. If a Bidder has provided the Agency with their email address at a pre-bid meeting and requested electronic notification, the Agency will endeavor to send addenda electronically to the email addresses provided but makes no representation or warranty that Bidder will receive electronic notification; it is the Bidders sole responsibility to obtain any and all addenda. Any and all addenda shall be issued no later than 72 hours prior to the date and time fixed for the opening of bids. Failure of any Bidder to receive any addenda shall not relieve such Bidder from any obligations imposed by such addenda. All addenda so issued shall become part of the Contract Documents. Failure by the Bidder to include addenda in its bid may render the bid non-responsive and result in its rejection.

Pursuant to Public Contract Code section 4104.5, if the Agency issues an Addendum which includes material changes to the Work less than 72 hours prior to the deadline for submission of bids, the Agency will extend the deadline for submission of bids. The Agency may determine, in its sole discretion, whether an Addendum warrants postponement of the bid submission date.

It shall be the responsibility of all prospective Bidders to ensure that they have received any and all addenda. Each addendum will include a confirmation sheet indicating receipt of the addendum. This sheet must be signed and included with the bid for each addendum issued. Bids which do not include the confirmation sheet(s) for each addendum, if any, may be rejected as non-responsive at the sole discretion of the Agency.

6. ADDITIVE, DEDUCTIVE AND ALTERNATIVE BIDS
If an additive and/or alternate bid schedule is called for in the Contract Documents, the lowest bid will be determined on the basis of the base bid schedule(s) only unless otherwise specified in the Notice Inviting Bids or by Addenda if issued to supersede the Notice Inviting Bids on this specific issue.

For a Contract where a deductive bid schedule is called for, the lowest bid will be determined by the total of all bid schedules including the deductive bid schedule(s).

The time required for completion of the additive/deductive or alternate bid items/schedules has been factored into the Contract Time and no additional time will be allowed for performing any of the alternate bid items unless the Contract Documents address this issue specifically and allow for more or less time based on the additive/deductive and/or alternative bids. Regardless of whether the additive/deductive or alternates bid items will be considered in determining the low bid, the Agency may elect to include any or none of the additive/deductive or alternate bid items/schedules, or to otherwise add or remove certain work from the scope of Work. Accordingly, each Bidder must ensure that each bid item contains a proportionate share of profit, overhead and other costs and expenses, which will be incurred by the Bidder for the Project.

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7. WORK BY BIDDER’S OWN FORCES
It is the intention and requirement of the Agency to award a contract only to a Bidder who will perform with such Bidder’s own forces (those who are in direct employment of the Bidder’s organization) at least 50 percent (50%) of the work, exclusive of items designated on the Bid Schedule by the Agency as specialty items, if any. The percentage of work which will not be performed by a Bidder’s own forces will be determined by adding the dollar value of all contracts shown on the List of Subcontractors in the Bid Forms (excluding the dollar amount of the specialty bid items), and dividing this total by the Bidder’s Total Bid Amount (excluding the dollar amount of Specialty bid items).

The requirement for the Contractor to perform at least 50% of the contract work with its owns forces will be waived only for contracts where only a “B” License is required for the prime contractor.

8. LISTING OF SUBCONTRACTORS
The Bidder shall comply with the Subletting and Subcontracting Fair Practices Act, California Public Contract Code Section 4100 et seq. (“Subcontracting Act”). Any references in these Bid and Contract Documents to the requirements of the Subcontracting Act are for the Bidder’s reference, and shall not limit the Contractor’s obligations under law.

The Bidder shall set forth in the List of Subcontractors, of the Bid Forms:
a) The name, address, phone number, license number, Department of Industrial Relations registration number, the place of business of each subcontractor who will perform work, provide labor, or render service to the Bidder on or about the construction of the Work for this Project, or a subcontractor licensed by the State of California who, under subcontract to the Bidder, specially fabricates and installs a portion of the work or improvement according to these Bid and Contract Documents, in an amount in excess of one-half (½) of one percent (1%) of the Bidder’s total bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half (½) of one percent (1%) of the Bidder’s total bid or ten thousand dollars ($10,000), whichever is greater. b) The portion of the work that each listed subcontractor described in item (a) above shall perform.

The Bidder shall list only one subcontractor for each portion of the Work as is defined by the Bidder in the List of Subcontractors section of the Bid Schedule. Partial submittal or failure to include all required information regarding subcontractors may preclude the full analysis and review of the Bid and may be cause to disqualify the Bid as non-responsive.

At the preconstruction meeting, Contractor shall submit a copy of all listed subcontractor(s)’ bids and subcontracts.

9. DEBARMENT OF CONTRACTORS AND SUBCONTRACTORS
In accordance with the provisions of the California Labor Code, Contractors and subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform to work on a public project pursuant to Section 1777.1 or Section 1777.7 of the California Labor Code. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract. Any public money that is paid to a debarred subcontractor by

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the Contractor shall be returned to the Agency. The successful Bidder, as Contractor, shall be responsible for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the Project.

10. PREVAILING WAGES
The Bidder shall refer to Section 5-3 LABOR of the Special Provisions and Appendix 3 for all prevailing wage requirements.

The Agency HAS NOT obtained from the Director of the Department of Industrial Relations the general prevailing rate of per diem wages in the locality in which this work is to be performed for each craft or type of worker needed to execute the Contract. These rates may be obtained online at http://www.dir.ca.gov/dlsr. Bidders are advised that a copy of these rates must be posted by the successful Bidder at the job site(s).

No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

11. COMPLETION OF BID FORMS
Bids shall only be prepared using originals or copies of the Bid Forms included in the Contract Documents, Appendix 1 and all addenda. The use of Bid Forms other than clear and correct photocopies of those provided by the Agency may be rejected by the Agency in its sole discretion as non-responsive.

Bidders shall fill in all blank spaces (including inserting “N/A” where applicable) and initial all interlineations, alterations, or erasures to the Bid Forms. Bidders shall not delete, modify, nor supplement the printed matter on the Bid Forms nor make substitutions thereon. USE OF BLACK OR BLUE INK, INDELIBLE PENCIL OR A TYPEWRITER TO COMPLETE ALL BID FORMS IS REQUIRED. Deviations in the Bid Form may be rejected by the Agency as non-responsive.

The signature of all persons signing the bid proposal shall be in longhand by an individual clearly authorized to bind the Bidder Company. The Bidder shall provide evidence that the individual(s) signing the Bid Forms are authorized to bind the legal entity of the Bidder. The notarization does not constitute such proof unless the legal entity of the Bidder is an individual.

12. SUBCONTRACTOR BIDS
Bidders shall include a copy of all bids by subcontractors listed in the bid documents as part of the bid package. The Agency may reject any bid as non-responsive that does not include copies of all listed subcontractor bids.

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13. NOTARY PUBLIC
All signatures on the bid form, bid bond, Non-collusion Affidavit, the Contract and both required surety bond forms shall be notarized on each document.

14. BID GUARANTEE
Bids shall be accompanied by a certified check or a cashier’s check made payable to the order of the Agency, or a bid bond payable to the Agency and executed by the Bidder as principal and surety as obligor, in an amount equal to at least ten percent (10%) of the amount bid. The bond and Surety qualifications shall be in conformance with the General Provisions. Personal sureties and unregistered surety companies are unacceptable. Said check, or bond shall be given as a guarantee that the Bidder will enter a contract if awarded the work, and shall provide the required payment and performance bonds and insurance certificates and in case of within five (5) working days after being requested to do so by the Agency.

Refusal or failure to enter into said contract and provide the required documents may be result in forfeiture of the Bidder’s bid guarantee or bond to the Agency and the Agency may award the contract to another Bidder, or may call for new bids. A bid received and not accompanied by such certified check, cashier’s check, or approved bond will be considered non-responsive and rejected.

15. PENALTY FOR COLLUSION
If at any time it is found that the person, firm, or corporation to whom the Contract has been awarded, has, in presenting any bid or bids, colluded with any other party or parties, then the Contract so awarded shall be null and void, and the Agency may advertise for new bids and contract for such work. The Contractor and the Contractor’s sureties shall be liable to the Agency for all loss or damage, which the Agency may suffer thereby.

16. SUBMISSION OF SEALED BIDS
No oral or telegraphic modifications will be considered.

Bids may be mailed, sent by overnight delivery, delivered by messenger, or personally delivered to the office of the City Clerk located at in City Hall, 2200 Huntington Drive, San Marino, California 91108 in such manner to ensure receipt of the Bid on or before the day and hour set for the opening of bids in the Notice Inviting Bids. The bid shall be enclosed in a sealed envelope bearing the title of the project, the name of the Bidder, the date/hour of the opening, and the appropriate State Contractors license designation, which the Bidder holds. If by commercial carrier the sealed bid must be in a sealed box or envelope and the following shall be clearly legible marked on the outside of the sealed box or envelope, “SEALED BID FOR THE MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM PROJECT - DO NOT OPEN WITH REGULAR MAIL”
It is the sole responsibility of the Bidder to see that their bid is received at the proper time. Any bids received after the scheduled closing time for receipt of bids shall not be opened and will be rejected. Late bids will be made available for the Bidder to retrieve up to 7 days after the bid opening. If the Bidder does not retrieve the late bid after 7 days, it will be disposed of by the Agency.

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17. AGENCY PHONES WILL NOT BE AVAILABLE TO BIDDERS ON BID DAY Agency does not represent or warranty that any telephone service will be made available to prospective Bidders. It is the sole responsibility of the Bidder to make arrangements for any communications on Bid day.

18. PUBLIC OPENING OF BIDS
Bids shall be opened and read publicly and the aggregate bid of each Bidder shall be declared at the time and place indicated in the Notice Inviting Bids of these Contract Documents. Bidders or their authorized agents are invited to be present. The apparent low Bid amount and Bidder will be announced on the basis of how the bids shall be compared as stated in the Notice to Bidders or superseding Addenda. The Agency will subsequently evaluate Bid responsiveness, Bidder qualifications and responsibility, and any other matters Agency deems necessary to determine the lowest responsive and responsible bidder in accord with the Contract Documents.

19. BID RESULTS
To obtain bid results, either attend the bid opening or check the city website or the project page on PlanetBid.com. Bid results will not be provided over the telephone.

20. QUALIFICATIONS OF BIDS
After the bids are publicly opened, the Agency shall review all bids for responsiveness to these Instructions to Bidders, Bid Forms, and applicable law, compare the bids to the Engineer’s Estimate for value and to verify a balanced bid. After the lowest monetary and responsive Bidder has been determined, the Agency will review the Bidder in order to determine whether it is the lowest responsible Bidder. The term “responsible” is defined by California law, but generally means that the Bidder is able to demonstrate: (1) the capacity to perform the Work required by these Contract Documents with respect to financial strength, resources available, and experience; and (2) its integrity and trustworthiness to complete performance of the Work in accordance with the Contract Documents.

The Agency will make its determination of responsibility based upon information submitted by the Bidder contained in the Bid Forms and interviews with previous agencies, clients, design professionals, or subcontractors with whom the Bidder has worked.

The Agency in its absolute discretion reserves the right to reject any or all bids, and to waive any informalities or minor irregularities in any Bid. The Agency may require Bidders to submit additional or clarifying information. A bid shall not be binding upon the Agency until after the Contract is signed by both the Contractor and the Agency and delivered to the Bidder by the Agency’s authorized representative.

21. DISQUALIFICATION OF BIDDERS
There are several reasons that the Agency may disqualify a Bidder. Some of the more common reasons Bidders are disqualified include, but are not limited to:
a) Bidder submits or has a financial interest in more than one bid. However, a person, firm, corporation or other entity that has submitted a proposal to a Bidder, or that has quoted prices of materials to a Bidder, is not thereby disqualified from submitting a proposal or quoting prices to other Bidders

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submitting a bid to the Agency. No person, firm, corporation, or other entity may submit a proposal to a Bidder, or quote prices of materials to a Bidder, when also submitting a prime bid for the Work. b) Submittal of unbalanced bids in which the prices for some items are out of proportion to the prices for other items of work.
c) Lack of responsibility as shown by past work judged from the standpoint of workmanship and progress.
d) Uncompleted projects of similar scope and size or poor safety record, which, in the judgment of the Agency, might hinder or prevent the prompt completion of additional work if awarded. e) For being in arrears on existing contracts, history of claims, in litigation with the Agency, or having defaulted on a previous contract.
f) Lack of competency as revealed by the financial statements or statements of experience, plant, and equipment.
g) Lack of financial strength based on, but not limited to, financial statements, available resources, bonding capacity, or available insurance.
h) Evidence of collusion among Bidders.
i) Modification of a Bid Form.
j) Submittal of an incomplete bid and/or failure to include all required information either of which precludes full analysis and review of said Bid and/or which precludes meaningful comparison of the Bid with other bids received by the Agency.

22. WITHDRAWAL OF BID
Any proposal may be withdrawn prior to the hour and date for Bid Opening set forth in the Notice Inviting Bids, provided that a request in writing, executed by the Bidder or his duly authorized representative, for the withdrawal of such proposal, is filed with the Agency. The withdrawal of a proposal shall not prejudice the right of a Bidder to file a new proposal. Any request to withdraw a bid after bid opening must be made in accordance with Public Contract Code section 5100 et seq. and must be submitted in writing within five (5) working days, excluding Saturdays, Sundays and State holidays, specifying in detail how the mistake was made. Whether a bid is allowed to be withdrawn under PCC section 5100 et eq. shall be at the Agency’s sole discretion.

23. REJECTION OF BIDS
The Agency, in its absolute discretion, reserves the right to reject any or all bids, and to waive any informalities or minor irregularities in the Bids. Bids may be rejected if they show any alterations of form, additions not called for, conditional bids, incomplete bids, erasures or irregularities of any kind or if the confirmation of addenda and required supplemental information set forth in the bid forms are not submitted with the bid.

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24. BID PROTEST PROCEDURE
Any bid protest relating to the form or content of the Bid, or in connection with the Contract Documents or responses to requests for clarification, or directly or indirectly concerning the Project must be submitted in writing to the Agency’s Procurement Officer at the Finance Department, 2200 Huntington Drive, San Marino, California 91108 at least 10 business days before the initial date set for the bid opening.

Any Bidder who submits a bid without making a protest shall be deemed to have waived any objection to the form or content of the Bid, in connection with the Contract Documents, responses to requests for clarification, and directly or indirectly concerning the Project not previously stated in writing.

Submitted bids will be made available for review upon written request of any Bidder.

Bidders may file a “bid protest” of any Bid(s) with the Agency’s Procurement Officer at the Finance Department, 2200 Huntington Drive, San Marino, California 91108. The bid protest must satisfy all of the following requirements:

A. Be filed in writing not later than 5:00 p.m. on the fifth business day after the bid opening date; B. Clearly identify the specific alleged irregularity or other basis for the bid protest; C. Specify, in detail, the factual and legal grounds for the bid protest; and D. Include all relevant supporting documentation with the bid protest at time of filing.

If the bid protest does not meet all of these requirements, the Agency may reject it without further review.

If the bid protest is timely and complies with all of the above requirements, the Agency’s Procurement Manager, or other designated Agency staff member, shall review the bid protest, any response from the challenged Bidder, and all other relevant information. The Agency may at its discretion prepare a response to the bid protest. Agency staff may make recommendations to the awarding authority to consider, accept, or reject any bid protest(s) in connection with the award of the contract for the Project.

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STANDARD SPECIFICATIONS
The 2021 version of the “Standard Specifications for Public Works Construction” published by BNI Publications (the “Greenbook” or “SSPWC”) and all amendments thereto will serve as the standard specifications for the project, except as modified herein by these Special Provisions.

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 1
The undersigned hereby proposes to furnish any and all labor, materials, and equipment for the MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM PROJECT NO. 52-4150, and appurtenant work in connection therewith, said work to be done and materials to be furnished in strict conformity with the Contract Documents, including but not limited to the Notice Inviting Bids, Instructions to Bidders, every Addendum, plans, specifications, General Conditions, Special Provisions, General Provisions, Greenbook 2018 as amended and supplemented, technical references, all other referenced documents, all codes, permit conditions and regulations, for the total amount(s) and any unit prices and additive/deductive items shown on this proposal.

The undersigned has examined the location of the proposed work and all local and physical conditions and challenges presented by the Project site, is familiar with the plans, specifications, Contract Documents (particularly as delineated above) and the requirements of the Public Works Contract, and also understands that the Project shall be completely constructed in turn-key condition acceptable to the Owner within the Project time requirements for the price of the proposal, including all fees and sales and/or use tax upon any materials so furnished, including any unit prices and additive/deductive items. The undersigned has also carefully checked all of the figures given and understands that the Agency will not be responsible for any errors or omissions on the part of the undersigned in submitting this proposal.

Contractor confirms that his/her/its bid is submitted with respect to the changes to the Contract and/or Contract Documents included in all addenda issued by the Owner.

In addition to reaffirming that the changes and information contained in the addenda have been integrated into their proposal, Contractor acknowledges receipt of Addenda No.(s)_______________________.

The undersigned has examined the current State of California schedule of prevailing wage rates for the types of work to be done on this project (and the Davis-Bacon Act if the Agency uses federal funds for the Project) and agrees to pay not less than these rates.

The undersigned hereby proposes to furnish any and all labor, materials, and equipment for the MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM PROJECT NO. 52-415 and appurtenant work in connection therewith, said work to be done and materials to be furnished in strict conformity with the Contract Documents, including but not limited to the Notice Inviting Bids, Instructions to Bidders, every Addendum, plans, specifications, General Conditions, Special Provisions, General Provisions, Greenbook 2018 as amended and supplemented, technical references, all other referenced documents, all codes, permit conditions and regulations, for the total amount(s) and any unit prices and additive/deductive items shown on this proposal.

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Addendum 5 Issued 1-27-2022 BP - 2

BID SCHEDULE

UNIT RATE BID FORM

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-415
Bid Item Quantity Unit Unit Cost Item Total

1. Maintenance pruning (0 to 6-in Dia. Std. Height) 275 Each per year

2. Maintenance pruning (7 to 12-in Dia. Std. Height) 275 Each per year

3. Maintenance pruning (13 to 18-in Dia. Std.

Height) 275 Each per year

4. Maintenance pruning (19 to 24-in Dia. Std.

Height) 275 Each per
year

5. Maintenance pruning (25 to 30-in Dia. Std.

Height) 275 Each per
year

6. Maintenance pruning (31 to 36-in Dia. Std.

Height) 275 Each per year

7. Maintenance pruning (greater than 36-in Dia. Std.

Height) 275 Each per year

8. Maintenance pruning - Palms 900 Each per
year

9. Prune to reduce or restore - in grid area 10 Trees per year

10. Prune to raise - outside of grid area 50 Trees per
year

11. Remove tree including stump grinding 100 Each per
year

12. Root pruning 10 Each per
year

13. Plant tree 120 Each per
year

14. Crew rental 80 Crew hr
per year

15. Spread mulch 200 Cubic
yards per

16. Tree inventory system 1 Lump
sum per

BASE BID TOTAL PER YEAR
******************************************************** END OF BASE BID ITEMS*******

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Addendum 4 Issued 1-26-2022 BP - 3
BASE BID TOTAL (in words) _______________________________________________________ Contractor's Initials ____________
In the event of a variation between the unit price and extended total, the unit price will be used and the corrected extension will be considered as the amount bid. If the bid is illegible and cannot be reconciled it will be considered non-responsive and will not be considered for award.

If an additive and/or alternate bid schedule is called for in the Contract Documents, the lowest bid will be determined on the basis of the base bid schedule(s) only unless otherwise specified in the Notice Inviting Bids or by Addenda if issued to supersede the Notice Inviting Bids on this specific issue.

For a Contract where a deductive bid schedule is called for, the lowest bid will be determined by the total of all bid schedules including the deductive bid schedule(s).

Regardless of whether the additive/deductive or alternates bid items will be considered in determining the low bid, the Agency may elect to include any or none of the additive/deductive or alternate bid items/schedules, or to otherwise add or remove certain work from the scope of Work. Accordingly, Contractor warrants that each bid item contains a proportionate share of profit, overhead and other costs and expenses, which will be incurred by the Contractor for the Project.

If equal low bids are received from responsible and responsive bidders the selection shall be made by drawing lots, or other similar random blind method selected by the Agency. If only one responsive bid is received from a responsible bidder the award shall not be made unless the price can be determined to be reasonable based on an analysis by the Agency. The Agency’s determination as to the reasonableness of any such bid shall be final.

The Agency reserves the right to reject any or all bids, to waive any irregularity(ies), and to take all bids under advisement for a period of 60 calendar days after the date the bids are publicly opened. Bidder acknowledges that all costs incurred as a result of preparing the proposal shall be the sole responsibility of Bidder. The Notice Inviting Bids and Instructions to Bidders does not create or impose any obligation upon the Agency to enter into a contract.

All bids received shall be recorded on an abstract (tabulation) of bids, and then made available for public inspection within two business days of bid opening.

The quantities listed in the bid proposal are provided to give a general indication of the scope of the work and for the comparison of bids. No warranty is made, either expressed or implied, that the actual quantities of work to be done will correspond therewith. Item numbers followed by “(S)” are designated as specialty items which will not be included towards the calculation of minimum of 50 percent of work to be performed by Contractor’s own forces.

By signing and submitting this bid the Contractor confirms that they are familiar with the work site and all existing conditions that may affect their work and that they have read and agree to all the terms, conditions and requirements contained or referenced herein or in the Contract Documents and that all the aforementioned has been included in the bid prices listed above, including items of work that may not have a specific pay line item and that there shall be no additional costs to the Agency.

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Addendum 4 Issued 1-26-2022 BP - 4
WARNING: If an addendum or addenda have been issued by the Agency and not noted above as being received by the bidder, this Bid may be rejected.

Complete the following:

Legal name of the business, DIR Reg. and Contractor License Nos.

Business Type (Corporation, Partnership, Sole Proprietor) DBA (if any)
Name and title of the owner
Name and title of second partner or officer
Business Address
Telephone number
Facsimile number
Name and Email address of primary contact
Company web address

Signature of Bidder Date Signature of Bidder Date

Print name and title Print name and title
(If the Bidder is a corporation two signatures of corporate officers are required.)

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Addendum 4 Issued 1-26-2022 BP - 5

SHEET DELETED FROM DOCUMENT

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 6

CERTIFICATE REGARDING CONTRACTOR'S LICENSE

1. Contractor is required to possess one of the following State Contractor's License:

State of California C61/D-49 and C-27 Contractor’s License

2. A failure to (1) possess the required license, (2) truthfully set forth the following information, and/or (3) execute this Certificate may render the proposal nonresponsive and permit the City to reject the proposal. (Business and Professions Code Section 7028.15)

3. Contractor declares, under penalty of perjury, that he/she/it possesses the required Contractor's license(s) which:
a. Bears the license number(s):
b. Expires on:

Signature of Bidder Date Signature of Bidder Date

Print name and title Print name and title
(If the Bidder is a corporation two signatures of corporate officers are required.) This required license determination has been made by the Agency. Any Contractor holding a different license who feels he is qualified to bid on this work must so advise the Agency at least 7 days prior to the bid opening. The Agency may conduct a review of the contemplated work to re-evaluate the required license determination. The Agency may in its sole discretion maintain or change the required license determination; Agency’s decision as to the required license will be final.

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 7

BID SECURITY FORM FOR CHECK
NOTE: THE FOLLOWING FORM SHALL BE USED IN THE CASE OF CHECK ACCOMPANYING BID Accompanying this proposal is a Certified Check or Cashier’s Check payable to the order of the City of San Marino hereinafter referred to as "Agency", for _________________________________dollars [in words] ($_____________________________), this amount being 10 percent of the total amount of the bid. This check shall be returned to the undersigned only if either of the following occurs:

A. If said Bid shall be rejected by the Agency;

B. If said Bid shall be accepted by the Agency and the Undersigned shall execute and deliver a Contract in the form attached hereto (properly completed in accordance with said Bid) and shall furnish bonds required for his/her/its faithful performance of said Contract and for the payment of all persons performing labor or furnishing materials in connection therewith, and shall in all other respects perform the Contract created by acceptance of said Bid.

Otherwise, said check shall become the property of the Agency.

Said check shall also become the property of the Agency if the Undersigned shall withdraw his/her/its bid within the period of 60 calendar days after the date set for the opening thereof, unless otherwise required by law, and notwithstanding the award of the Contract to another bidder.

Signature of Bidder Date Signature of Bidder Date

Print name and title Print name and title
(If the Bidder is a corporation, two signatures of corporate officers are required.)

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 8

BID SECURITY FORM FOR BOND
KNOW ALL BY THESE PRESENTS:

That the undersigned
,
(Name of Contractor)
as Principal and the undersigned as Surety are held and firmly bound unto Owner, CITY OF SAN MARINO, a political subdivision of the State of California, as obligee, in the penal sum of Dollars ($ ) lawful money
of the United States of America being at least ten percent (10%) of the aggregate amount of said Principal’s base Bid, for the payment of which, well and truly to be made, we bind ourselves, our successors, executors, administrators, and assigns, jointly and severally, firmly by these presents.

WHEREAS, said Principal is submitting a Bid for the Multi-year Tree Maintenance and Planting Program Project.

THE CONDITION OF THIS OBLIGATION IS SUCH that if the Bid submitted by the said Principal be accepted and the Contract be awarded to said Principal and said Principal shall within the required periods enter into the Contract so awarded and provide the required Construction Performance Bond, Construction Labor and Material Payment Bond, insurance certificates, and all other endorsements, forms, and documents required under the Instructions to Bidders, then this obligation shall be void, otherwise to remain in full force and effect.

IN WITNESS WHEREOF, the above bounden parties have executed this instrument this ______ day of ______________________________, 20__.
(Month)
(Corporate Seal) By
Principal
By
Surety
(Corporate Seal) By

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 9

NON-COLLUSION AFFIDAVIT
PUBLIC CONTRACT CODE SECTION 7106

NON-COLLUSION DECLARATION TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID The undersigned declares:

I am the ______________________ of _________________, the party making the foregoing bid.

The bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation. The bid is genuine and not collusive or sham. The bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid.

The bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder. All statements contained in the bid are true. The bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.

Any person executing this declaration on behalf of a bidder that is a corporation, partnership, joint venture, limited liability company, limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does execute, this declaration on behalf of the bidder.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on _____________[date], at _____________[city], _______________[state].

Signature of Bidder Date Signature of Bidder Date

Print name and title Print name and title
(If the Bidder is a corporation, two signatures of corporate officers are required.)

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 10
CONTRACTOR’S REFERENCE LIST
Attach to this bid a list of three 3 projects in the past 5 years on which the bidder and his subcontractor(s) have successfully constructed and completed projects with the same type (elements), size and complexity of work. The Agency Engineer will make the final determination of whether the projects listed here are of the same type, size and complexity as this project.

Failure of bidder to supply sufficient documentation of similar tree maintenance and planting experience shall be considered grounds for a non-responsive bid and, at the Agency’s discretion, said bid will be disqualified.

Project Name:

Contract Price: Date of Completion:

Name, Address, and Telephone Number of Owner's Representative:

Project Name:

Contract Price: Date of Completion:

Name, Address, and Telephone Number of Owner's Representative:

Project Name:

Contract Price: Date of Completion:

Name, Address, and Telephone Number of Owner's Representative:
(Attach additional pages as necessary)

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 11

DESIGNATION OF SUBCONTRACTORS
Name of
Subcontractor and
Location of Place of
Business
Description of Work Subcontractor’s
License No.

DIR Registration
Number
(Bidder to attach additional sheets if necessary)
(PUBLIC CONTRACT CODE §4100 ET SEQ.)

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 12

BIDDER CERTIFICATIONS

TO BE EXECUTED BY ALL BIDDERS AND SUBMITTED WITH BID
The undersigned Bidder certifies to Owner as set forth in sections 1 through 9, below.

1. STATEMENT OF CONVICTIONS
By my signature hereunder, I hereby swear, under penalty of perjury, that no more than one final, unappealable finding of contempt of court by a Federal Court has been issued against Bidder within the past two years because of failure to comply with an order of a Federal Court or to comply with an order of the National Labor Relations Board.

2. CERTIFICATION OF WORKER’S COMPENSATION INSURANCE
By my signature hereunder, as the Contractor, I certify that I am aware of the Labor Code Section 3700, which requires every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract.

Please note that the submittal of this certificate does not relieve Contractor from complying with all of the insurance requirements of the Public Works Agreement and Contract Documents.

3. CERTIFICATION OF PREVAILING WAGE RATES AND RECORDS
By my signature hereunder, as the Contractor, I certify that I am aware of Labor Code Section 1773, which requires the payment of prevailing wage on public projects. Contractor and any subcontractors under the Contractor shall comply with Labor Code Section 1776 regarding wage records, and with Labor Code Section 1777.5 regarding the employment and training of apprentices. Contractor is responsible to ensure compliance by any and all subcontractors performing work under this Contract.

4. CERTIFICATION OF COMPLIANCE WITH PUBLIC WORKS CHAPTER OF

LABOR CODE
By my signature hereunder, as the Contractor, I certify that I am aware of Labor Code Sections 1777.1 and 1777.7 Code, and Contractor and Subcontractors are eligible to bid and work on public works projects.

5. CERTIFICATION OF NON-DISCRIMINATION
By my signature hereunder, as the Contractor, I certify that there will be no discrimination in employment with regard to race, color, religion, gender, sexual orientation, age or national origin; that all federal, state, and local directives and executive orders regarding non-discrimination in employment will be complied with; and that the principal of equal opportunity in employment will be demonstrated positively and aggressively.

6. CERTIFICATION OF NON-DISQUALIFICATION
By my signature hereunder, as the Contractor, I swear, under penalty of perjury, that the below indicated Bidder, any officer of Bidder, or any employee of Bidder who has a proprietary interest in such Bidder, has never been disqualified, removed, or otherwise prevented from bidding on, or completing a Federal, State, or local government project because of a violation of law or safety regulation, except as

BIDDER'S PROPOSAL

MULTI-YEAR TREE MAINTENANCE AND PLANTING PROGRAM
PROJECT NO. 52-4150
Issued 12-22-21 BP - 13
indicated on the separate sheet attached hereto entitled “Previous Disqualifications.” If a statement of “Previous Disqualifications” is attached, please explain the circumstances.

7. CERTIFICATION OF ADEQUACY OF CONTRACT AMOUNT
By my signature hereunder, as the Contractor, pursuant to Labor Code Section 2810(a), I certify that, if awarded the Contract based on the undersigned’s Bid, the Contract will include funds sufficient to allow the Contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided. I understand that Owner will be relying on this certification if it awards the Contract to the undersigned.

8. CERTIFICATION REGARDING DIR CONTRACTOR / SUBCONTRACTOR

REGISTRATION
By my signature hereunder, as the Contractor, I certify that Contractor, and all listed Subcontractors are the subject of current and active contractor registrations pursuant to Division 2, Part 7, Chapter 1 (commencing with section 1720) of the California Labor Code. Contractor’s registration number is [please complete] _____________________. Subcontractors’ registration numbers are as indicated in “Designation of Subcontractors.”

9. CERTIFICATION REGARDING PREQUALIFICATION INFORMATION Not applicable for this project.

BIDDER:

Signature of Bidder Date Signature of Bidder Date

Print name and title Print name and title
(If the Bidder is a corporation, two signatures of corporate officers are required.)

PAGE INTENTIONALLY BLANK

Multi-year Tree Maintenance and Planting Program Project No. 52-4150 Issued 12-22-21 GP - 1 Prj. No. 52-4150

PART ONE

GENERAL PROVISIONS
PART ONE, GENERAL PROVISIONS, OF THE 2021 GREENBOOK IS REPLACED IN ITS ENTIRETY WITH THE FOLLOWING SECTIONS 1 THROUGH 9 WHICH IS INCORPORATED INTO THE CONTRACT DOCUMENTS AND SHALL APPLY TO THE PROJECT WORK.

SECTION 1 - TERMS, DEFINITIONS, ABBREVIATIONS AND SYMBOLS 1-1 GENERAL. Unless otherwise stated, the words directed, required, permitted, ordered, instructed, designated, considered necessary, prescribed, approved, acceptable, satisfactory, or words of like meaning, refer to actions, expressions, and prerogatives of the Engineer. 1-2 TERMS AND DEFINITIONS
Addendum - Written or graphic instrument issued prior to the opening of Bids which clarifies, corrects, or changes the Contract Documents. The term “Addendum” shall include bulletins and all other types of written notices issued to potential bidders prior to opening of the Bids.

Agency - The legal entity for which the Work is being performed.

Agreed Price - The cost for new or unforeseen work, or for adjustments in the Contract Unit Price for changes in the character of the work as specified herein, established by mutual agreement between the Contractor and the Agency.

Agreement - See Contract.

Assessment Act Contract - A Contract financed by special assessments authorized under a State Act or procedural ordinance of a City or County.

AASHTO Designations - The latest revised Specifications of the American Association of State Highway and Transportation Officials.

Base - A layer of specified material of planned thickness placed immediately below the pavement or surfacing.

Bid - The offer or proposal of the Bidder submitted on the prescribed form setting forth the prices for the Work.

Bidder - Any individual, firm, partnership, corporation, or combination thereof, submitting a Bid for the Work, acting directly or through a duly authorized representative.

Board - The officer or body constituting the awarding authority of the Agency.

Bond - Bid, performance, or payment bond or other instrument of security.

Caltrans - The State of California Department of Transportation.

Cash Contract - A Contract financed by means other than special assessments.

Multi-year Tree Maintenance and Planting Program Project No. 52-4150 Issued 12-22-21 GP - 2 Prj. No. 52-4150
Certificate of Compliance - A written document signed and submitted by a supplier or manufacturer that certifies that the material or assembled material supplied to the Work site conforms to the requirements of the Contract Documents.

Change Order - A written order to the Contractor signed by the Agency directing an addition, deletion, or revision in the Work, or an adjustment in the Contract Price or the Contract time issued after the effective date of the Contract. A Change Order may or may not also be signed by the Contractor.

Code - The terms Government Code, Labor Code, etc., refer to codes of the State of California.

Contract - The written agreement between the Agency and the Contractor covering the Work.

Contract Documents - The Contract, Addenda, notice inviting bids, instructions to bidders; Bid (including documentation accompanying the Bid and any post-bid documentation submitted prior to the Notice of Award), Appendices, Exhibits, the Bonds, permits from jurisdictional regulatory agencies, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Change Orders, Bulletins and Supplemental Agreements.

Contractor - The individual, partnership, corporation, joint venture, or other legal entity having a Contract with the Agency to perform the Work. In the case of work being done under a permit issued by the Agency, the permittee shall be construed to be the Contractor. The term “prime contractor” shall mean the Contractor.

Contract Price - The total amount of money for which the Contract is awarded.

Contract Unit Price - The amount stated in the Bid for a single unit of an item of work.

County – County of Los Angeles
County Sealer - The Sealer of Weights and Measures of the county in which the Contract is awarded.

Days - Days shall mean consecutive calendar days unless otherwise specified in the Special Provisions.

Department - Where the word Department appears in the Standard Specifications, it shall mean the City of San Marino Parks and Public Works Department
Disputed Work - Work in which the Agency and the Contractor are in disagreement.

Electrolier - Street light assembly complete, including foundation, standard, mast arm, luminaire, etc.

Extra Work - New or unforeseen work not covered by a Contract Unit Price or Stipulated Unit Price.

Engineer - The Chief Engineer of the Agency, Director of Public Works, or other person designated by the Board, acting either directly or through authorized agents.

Federal – United States of America.

Multi-year Tree Maintenance and Planting Program Project No. 52-4150 Issued 12-22-21 GP - 3 Prj. No. 52-4150
House Connection Sewer - A sewer, within a public street or right-of-way, proposed to connect any parcel, lot, or part of a lot with a mainline sewer.

Luminaire - The lamp housing including the optical and socket assemblies (and ballast if so specified).

Mast Arm - The structural member, or bracket, which, when mounted on a Standard, supports the luminaire.

Modification - Includes Change Orders and Supplemental Agreements. A Modification may only be issued after the effective date of the Contract.

Notice of Award - The written notice by the Agency to the successful Bidder stating that upon its compliance with the required conditions, the Agency will execute the Contract.

Notice to Proceed - A written notice given by the Agency to the Contractor fixing the date on which the Contract time will start.

Owner - The City of San Marino.

Person - Any individual, firm, association, partnership, corporation, trust, joint venture, or other legal entity.

Plans - The drawings, profiles, cross sections, Standard Plans, working drawings, and shop drawings, or reproductions thereof, approved by the Engineer, which show the location, character, dimensions, or details of the Work.

Private Contract - Work subject to Agency inspection, control, and approval, involving private funds, not administered by the Agency.

Proposal - See Bid.

Reference Specifications - Those bulletins, standards, rules, methods of analysis or testing, codes, and specifications of other agencies, engineering societies, or industrial associations referred to in the Contract Documents. These shall refer to the latest edition, including amendments in effect and published at the time of advertising the Contract or issuing the permit, unless specifically referred to by edition, volume, or date.

Roadway - The portion of a street reserved for vehicular use.

Service Connection - All or any portion of the conduit cable or duct including meter, between a utility distribution line and an individual consumer.

Service Lateral Connection - The interface of the House Connection Sewer with the host pipe.

Sewer - Any conduit intended for the reception and transfer of sewage and fluid industrial waste.

Shop Drawings - Drawings showing details of manufactured or assembled products proposed to be incorporated into the Work.

Multi-year Tree Maintenance and Planting Program Project No. 52-4150 Issued 12-22-21 GP - 4 Prj. No. 52-4150
Special Provisions - Additions and revisions to the Standard Specifications setting forth conditions and requirements peculiar to the Work.

Specifications - Standard Specifications, Reference Specifications, Special Provisions, and specifications in Change Orders or Supplemental Agreements between the Contractor and the Board.

Standard - The shaft or pole used to support street lighting luminaires, traffic signal heads, mast arms, etc.

Standard Plans - Details of standard structures, devices, or instructions referred to on the Plans or in the Specifications by title or number.

Standard Specifications - The Standard Specifications for Public Works Construction (SSPWC), the “Greenbook”.

State - State of California.

Stipulated Unit Price - Unit prices established by the Agency in the Contract Documents.

Storm Drain - Any conduit and appurtenances intended for the reception and transfer of storm water.

Street - Any road, highway, parkway, freeway, alley, walk, or way.

Subbase - A layer of specified material of planned thickness between the base and the subgrade.

Subcontractor - An individual, firm, or corporation having a direct contract with the Contractor or with any other Subcontractor for the performance of a part of the Work.

Subgrade - For roadways, that portion on which pavement, surfacing, base, subbase, or a layer of other material is placed. For structures, the soil prepared to support a structure.

Supervision - Supervision, where used to indicate supervision by the Engineer, shall mean the performance of obligations, and the exercise of rights, specifically imposed upon and granted to the Agency in becoming a party to the Contract. Except as specifically stated herein, supervision by the Agency shall not mean active and direct superintendence of details of the Work.

Supplemental Agreement - A written amendment of the Contract Documents signed by the Agency and the Contractor.

Surety - Any individual, firm, or corporation, bound with and for the Contractor for the acceptable performance, execution, and completion of the Work, and for the satisfaction of all obligations incurred.

Utility - Tracks, overhead or underground wires, pipeline, conduits, ducts, structures, sewers, or storm drains owned, operated, or maintained in or across a public right of way or private easement.

Work - That which is proposed to be constructed or done under the Contract or permit, including the furnishing of all labor, materials, equipment, and services.

Multi-year Tree Maintenance and Planting Program Project No. 52-4150 Issued 12-22-21 GP - 5 Prj. No. 52-4150
Working Day - Any day within the period between the date of the start of the Contract time as specified in 6-1 and the date of field acceptance of the Work by the Engineer, other than:
a) Saturday,
b) Sunday,
c) any day designated as a holiday by the Agency,
d) any other day designated as a holiday in a Master Labor Agreement entered into by the Contractor or on behalf of the Contractor as an eligible member of a contractor association, e) any day the Contractor is prevented from working at the beginning of the workday for cause as specified herein, or
f) any day the Contractor is prevented from working during the first 5 hours with at least 60 percent of the normal work force for cause as specified herein.

Working Drawings - Drawings showing details not shown on the Plans which are required to be designed by the Contractor.
1-3 ABBREVIATIONS
1-3.1 General. The abbreviations are applicable to these Standard Specifications and the Special Provisions. Additional abbreviations shall be as specified on the Plans or in the Special Provisions. 1-3.2 Common Usage
Abbreviation Word or Words
ABS...........................Acrylonitrile Butadiene Styrene ADA.........................Americans with Disabilities Act of 1990 (Public Law 101-336, 104 Sat. 1990, 42 USC 12101-12213 (as amended))
APC..........................Air Placed Concrete
ARHM......................Asphalt Rubber Hot Mix
ARAM......................Asphalt Rubber and Aggregate Membrane BMPs........................ Best Management Practices
CAB.......................... Crushed Aggregate Base
CAP A...................... Corrugated Aluminum Pipe Arch CAP.......................... Corrugated Aluminum Pipe
CBR.......................... California Bearing Ratio
CCFRPM................. Centrifugally Cast Fiberglass Reinforced Plastic Mortar CCR ......................... California Code of Regulations CCTV ...................... Closed Circuit TV
CHDPE.................... Corrugated High Density Polyethylene CIP............................ Cast Iron Pipe
CIPCP ...................... Cast-In-Place Concrete Pipe CIPP ......................... Cured-In-Place Pipe
CLSM ....................... Controlled Low Strength Material CMB......................... Crushed Miscellaneous Base CRM......................... Crumb Rubber Modifier
CRUMAC ............... Crumb Rubber Modified Asphalt Concrete CRUMAC-GG....... Crumb Rubber Modified Asphalt Concrete Gap Graded CQS ......................... Cationic Quick-Setting

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CRS .......................... Cationic Rapid-Setting
CSP........................... Corrugated Steel Pipe
CSEP......................... Confined Space Entry Plan CSP A....................... Corrugated Steel Pipe Arch CSP........................... Corrugated Steel Pipe
CSS ........................... Cationic Slow-Setting
CT............................. California Test
DIP ............................Ductile Iron Pipe
GG............................ Gap-Graded
HC............................ House Connection
HDPE....................... High Density Polyethylene
HRWRA.................. High Range Water Reducing Admixture LS .............................. Lump Sum
MC............................Medium Curing
Min............................Minimum
MSDS .......................Material Safety Data Sheet
MUTCD..................Manual on Uniform Traffic Control Devices NA ............................Not Applicable
OD ........................... Outside Diameter
P A V........................ Pressure Aging Vessel
PCC.......................... Portland Cement Concrete
PE.............................. Polyethylene
PG............................. Performance Graded
PLI............................. Pounds Per Linear Inch PMB.......................... Processed Miscellaneous Base PRCB........................ Precast Reinforced Concrete Box PVC.......................... Polyvinyl Chloride
RC............................. Rapid Curing
R ................................ Resistance Value
RA............................. Reclaimed Aggregates
RAC .........................Recycled Asphalt Concrete
RAP ..........................Reclaimed Asphalt Pavement RCP ..........................Reinforced Concrete Pipe
RPPCC.....................Reclaimed Plastic Portland Cement Concrete RTFO.......................Rolling Thin Film Oven
RW...........................Reclaimed Water
SAPPA...................... Structural Aluminum Plate Pipe Arch SAPP......................... Structural Aluminum Plate Pipe SC............................. Slow Curing
SCMs........................ Supplementary Cementitious Materials SDR. ......................... Standard thermoplastic pipe dimension ratio (ratio of pipe O.D. to minimum wall thickness)
SE .............................. Sand Equivalent
SG............................. Specific Gravity
SI ............................... International System of Units (Metric) SLC........................... Service Lateral Connection SS .............................. Slow-Setting
SSPPA....................... Structural Steel Plate Pipe Arch SSPP.......................... Structural Steel Plate Pipe

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SWPPP..................... Storm Water Pollution Prevention Plan TCP ..........................Traffic Control Plan
TRMAC...................Tire Rubber Modified Asphalt Concrete TTC..........................Temporary Traffic Control
U.S.C........................ United States Code
U.S. ........................... United States
VCP ..........................Vitrified clay pipe
VTCSH ....................Vehicle Traffic Controls Signal Heads WATCH .................Work Area Traffic Control Handbook WTAT.....................Wet Track Abrasion Test
X ............................... By
1-3.3 Institutions
Abbreviation Word or Words
AASHTO ................American Association of State Highway and Transportation Officials AISC.........................American Institute of Steel Construction ANSI.........................American National Standards Institute AREA .......................American Railway Engineering Association ASTM.......................American Society for Testing and Materials AWPA.....................American Wood Preservers Association AWS.........................American Welding Society
AWWA...................American Water Works Association EIA ............................ Electronic Industries Alliance EPA ........................... Environmental Protection Agency ETL ........................... Electrical Testing Laboratories FCC.......................... Federal Communications Commission GRI ........................... Geosynthetic Research Institute IEEE........................... Institute of Electrical and Electronics Engineers IMSA......................... International Municipal Signal Association ITE ............................ Institute of Transportation Engineers NEMA......................National Electrical Manufacturers Assn.

RUS ..........................Rural Utilities Service
SCE........................... Southern California Edison UL............................. Underwriters’ Laboratories Inc. 1-4 UNITS OF MEASURE
1-4.1 General. The U.S. Standard Measures, also referred to as the U.S. Customary System, is the principal measurement system in these Specifications and shall be used for construction, unless otherwise specified in the Special Provisions. The International System of Units, also referred to as SI or the metric system, is included in parenthesis. U.S. Standard Measures units may not be exactly equivalent to the SI units in parenthesis. If SI is specified for use in the Contract Documents, then all values used for construction shall be the SI units shown in parenthesis. Certain material specifications and test requirements contained herein use SI units specifically and U.S. Standard Measures have not been included in those circumstances.

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Reference is also made to ASTM E380 for definitions of various units of the SI system and a more extensive set of conversion factors.
1-4.2 Units of Measure and Their Abbreviations
U.S. Customary Unit Equal To SI Unit
(Abbreviations) (Abbreviations)
I mil (= 0.001 inch) ........................................................... 25.4 micrometer (/lm) 1 inch ................................................................................... 25.4 millimeter (mm) 1 inch ................................................................................... 2.54 centimeter (cm) 1 foot (ft) ............................................................................ 0.3048 meter (m) 1 yard (yd).......................................................................... 0.9144 meter (m) 1 mile (mi) .......................................................................... 1.6093 kilometer (km) 1 square foot (ft2) ............................................................. 0.0929 square meter (m2) 1 square yard (yd2) ........................................................... 0.8361 square meter (m2) 1 cubic foot (ft3) ................................................................ 0.0283 cubic meter (m3) 1 cubic yard (yd3) .............................................................. 0.7646 cubic meter (m3) 1 acre................................................................................... 0.4047 hectare (ha) 1 U.S. gallon (gal) .............................................................. 3.7854 Liter (L) 1 fluid ounce (fl. oz) ......................................................... 29.5735 milliliter (mL) 1 pound mass (lb) (avoirdupois).................................... 0.4536 kilogram (kg) 1 ounce mass (oz)............................................................. 0.02835 kilogram (kg) 1 Ton (= 2000 lb avoirdupois)....................................... 0.9072 Tonne (= 907 kg) 1 Poise................................................................................. 0.1 pascal . second (Pa . s) 1 centistoke (cs)................................................................ 1 square millimeters per second (mm2/s) 1 pound force (lbf)............................................................ 4.4482 Newton (N) 1 pounds per square inch (psi)...................................... 6.8948 Kilopascal (kPa) 1 pound force per foot (lbf/ft)....................................... 1.4594 Newton per meter (N/m) 1 foot-pound force (ft-Ibf) .............................................. 1.3558 Joules (J) 1 foot-pound force per second (ft-Ibf) ........................ 1.3558 Watt (W) 1 part per million (ppm).................................................. 1 milligram/liter (mg/L) Temperature Units and Abbreviations
Degree Fahrenheit (oF): Degree Celsius (°C):
°f = (1.8 x °C) + 32 °C = (°F - 32)/1.8
SI Units (abbreviation) Commonly Used in Both Systems
1 Ampere (A)
1 Volt (V)
1 Candela (cd)
1 Lumen (lm)
1 second (s)
Common Metric Prefixes
kilo (k) ...........................................................................................103 centi (c).........................................................................................10-2 milli (m).........................................................................................10-3 micro (μ) .......................................................................................10-6

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nano (n).........................................................................................10-9 pico (p ).........................................................................................10-12 1-5 SYMBOLS
% ..........................Percent
, ...........................Feet or minutes
“ ..........................Inches or seconds
1 ..........................Number
/ ...........................per or (between words) o ...........................Degree x ..........................Times
1-7 AWARD AND EXECUTION OF THE CONTRACT. Award and execution of the Contract shall be as provided for in the Special Provisions, Instructions to Bidders, and Notice Inviting Bids.

The Agreement shall be signed in triplicate by the Agency and the Contractor.

Execution of the Agreement by the Contractor is a representation that the Contractor has visited the Project Site(s), become familiar with the local conditions under which the Work is to be performed, and has correlated personal observations with the requirements of the Contract Documents.

The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work. The Bid and Contract Documents are complementary, and what is required by any one shall be as binding as if required by all. Work not covered in the Bid and Contract Documents will not be required unless it is consistent therewith and is reasonably inferable therefrom as being necessary to produce the intended results. Words used in the Bid and Contract Documents, which have a well-known technical or trade meaning are used in accordance with such meanings. Abbreviations and symbols listed in Sections 1-3 and 1-5, together with others in general use, are applicable to the Bid and Contract Documents.

The organization of the Specifications into sections and the arrangement of Plans shall not control the Contractor in dividing the Work among Subcontractors or in establishing the extent of Work to be performed by any trade.

The intent of the Bid and Contract Documents is to prescribe the details for construction and completion of the Work in accordance with the terms of the Contract. Where Bid and Contract Documents describe portions of the Work in general terms, but not in complete detail, it is understood that only the best general practice is to prevail and that only materials and workmanship of the first quality are to be used.

Contractor is responsible for means and methods of construction using best practices in order to accomplish the construction and completion of the Work.

Any discrepancies between Bid and Contract Documents and conditions of the Site, or in the layout given by stakes, points or instructions, discovered by the Contractor shall be promptly brought to the attention of the Agency by written notice. Work done after such discovery, until authorized by the Agency, will be done at the Contractor’s risk.

In general, Specifications indicate qualities of materials and workmanship and Plans indicate dimensions, locations, quantities and details of construction. Figured dimensions take precedence over scaled

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measurements. Detailed Drawings and Specifications take precedence over general Drawings and Specifications. Supplementary details and instructions, approved revisions of later date and addenda take precedence over original documents, information and earlier addenda. In the event of ambiguity or conflict in indicated quantity or in quality, the greater quantity and the better quality shall govern.

The Contractor and each subcontractor shall have or obtain a valid City business license prior to the start of work. 1-7.1 Review of Bid and Contract Documents. The Contractor certifies that (i) the Contractor has carefully examined the Project Site, has taken steps to obtain all information concerning Site conditions and is familiar with all conditions that are observable, could be known by reasonable inference or through diligent research (including information that the Agency made available to all bidders during the bid process, costs and physical conditions) affecting the performance of the Work; (ii) the Contractor has carefully examined the Bid and Contract Documents and the Bid and Contract Documents either (a) contain no significant error, ambiguity, conflict, inconsistency or omission or (b) the Contractor has requested additional information and clarification from the Agency in writing with respect to any such error, ambiguity, conflict, inconsistency or omission and has received such information and clarification from the Agency; (iii) the Bid and Contract Documents are sufficient to have enabled the Contractor to determine the cost and duration of the Work and to enter into the Contract and the Bid and Contract Documents are sufficient to construct the Work in accordance with all applicable laws, statutes, buildings codes and regulations and otherwise to fulfill the Contractor’s obligations under the Contract; and (iv) the Contractor has requested each Subcontractor to carefully examine the Project Site, information concerning Site conditions, and Bid and Contract Documents with respect to the portion of the Work to be performed by such Subcontractor and that each Subcontractor has certified to the Contractor that such Subcontractor requires no additional information or clarification to perform the portion of the Work to be performed by such Subcontractor except as may have been requested in writing by the Contractor and to which the Agency has responded.

The Contractor shall not be liable to the Agency for any damage relating to any errors, inconsistencies, or omissions in the Bid and Contract Documents, except where the Contractor recognized or should have recognized such errors, ambiguities, conflicts, inconsistencies, or omissions and failed to report such errors, ambiguities, conflicts, inconsistencies or omissions to the Agency. The Contractor shall perform no portion of the Work at any time without Bid and Contract Documents, or where required, approved shop drawings, product data or samples for such portion of the Work.

To the extent provided, the quantities given in the Bid and Contract Documents are approximate only, being given as a basis for the comparison of bids and the Agency does not, expressly or by implication, warrant or agree that the actual quantities will correspond therewith. The Agency reserves the right to increase or decrease the amount of any class or portion of the Work, or to omit or delete portions of the Work, as may be deemed necessary or advisable by the Agency.

Information and test results which the Agency made available for review were for the convenience of bidders only and making such information and test results available is not to be construed in any way as a waiver of this section. The Agency does not guarantee that such information and test results are accurate and assumes no responsibility whatsoever as to their accuracy or their interpretation. 1-7.1.1 Penalty for Collusion. If, at any time, it is found that the Contractor has, in presenting any bid or bids, colluded with any other party or parties, then the Contract shall be null and void, and the Contractor and the Contractor’s sureties shall be liable for loss or damage which the Agency may suffer thereby, and the Agency may advertise for new bids for the Work.

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1-7.1.2 Award of Contract. The proposals will be compared on the basis of the unit cost for each item listed in the proposal, and on the total of all base bid items. If the contract is awarded it will be to the lowest responsible bidder whose proposal complies with all the requirements prescribed and described herein for comparison purposes.

A Responsive bid is one that meets all the requirements of the advertisement and proposal. A Responsible bidder is one who is physically organized and equipped with the financial ability to undertake and complete the contract.

Reasons to reject a bid as “nonresponsive” include, but are not limited to:
• Failure to sign the bid
• Failure to furnish the required bid bond
• Failure to include a unit bid price for each item
• Failure to include a total amount for the bid
• Failure to prepare the bid in ink
• Failure to submit a completed addenda certification statement • Failure to submit a Non-Collusion Affidavit
• Failure to commit to the achievement of the DBE contract goals or demonstrate good faith efforts to do so
• Inclusion of conditions or qualifications not provided for in the specifications • Submission of a materially unbalanced bid
Reasons to deem a bidder “not responsible” include but are not limited to:
• Failure to meet the local agency’s qualification requirements, or • Past unsatisfactory performance that may involve quality of workmanship, safety, supervision, timeliness, false claims, compliance with contract requirements, compliance with local, state of federal regulations, or
• Debarment by any governmental agency, or
• Failure to provide adequate proof of sufficient financial resources to execute and complete the project considering the Contractor’s entire work load when requested, or • Failure to provide evidence of qualified personnel that will supervise the project when requested, or • Such award, if made, will be within sixty days after the opening of the proposals. All proposals will be compared on the basis of the Engineer’s Estimate of the quantities of work to be done. The contractor shall submit to the Agency, when requested and prior to the award of the contract, a financial statement that indicates the contractor’s ability to perform the project. 1-7.1.3 Execution of Contract. The Agency will mail the contract to the successful bidder. The Contract shall be signed by the successful bidder in triplicate counterpart and returned, together with the contract bonds and insurance certificates, within ten (10) working days from mailing the Contract to the contractor. No contract shall be binding upon the Agency until it has been completely executed by the contractor and the Agency.

Failure to execute a Contract and file acceptable bonds and insurance certificates as provided herein within the time limit above is just cause for the annulment of the award and the forfeiture of the bid

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security. The Agency reserves the right to require complete, certified copies of all required insurance policies, including endorsements, at any time.
1-7.1.4 Document Ownership. Once the Contractor has received any compensation for the Work performed, all electronic or hard copy documents, e.g., original plans, studies, sketches, drawings, computer printouts and files, and specifications prepared in connection with or related to the Work shall be the property of Agency. The Agency’s ownership of these documents includes use of, reproduction or reuse of, and all incidental rights, whether or not the item of the Work for which they were prepared has been performed. Additionally, Contractor shall provide Agency with all bid preparation materials, including but not limited to spreadsheets, takeoffs, cost estimating programs and data, schedules and look aheads, and subcontractor proposals, agreements and change order requests. 1-7.1.5 Successor’s Obligations. All grants, covenants, provisions and claims, rights, powers, privileges and abilities contained in the Contract Documents shall be read and held as made by and with, and granted to and imposed upon, the Contractor and the Agency and their respective heirs, executors, administrators, successors, and assigns.
1-7.1.6 Waiver of Legal Rights. The failure of the Agency to insist, in any one or more instances, upon the performance of any provision of the Contract, or to exercise any right therein, shall not be construed as a waiver or relinquishment of such provisions or rights. Any waiver of any breach of this contract shall not be held to be a waiver of any other or subsequent breach.

Any waiver issued by the Agency of any provision of the Contract shall only be effective if issued in writing by the Agency and shall be specific, shall apply only to the particular matter concerned and not to other similar or dissimilar matters.
1-7.1.7 Requests for Information (RFI). If the work to be done is not sufficiently detailed or explained in the Contract Documents, the Contractor shall submit in writing a request to the Engineer for further explanations. Questions related to the Work shall be addressed to the Engineer for the Engineer’s decision pursuant to 3-4, “AUTHORITY OF THE BOARD AND THE ENGINEER.” 1-7.1.8 Headings. All section headings are for convenience only and shall not affect the interpretation of this contract.
1-7.1.9 Cumulative Remedies. The duties and obligations imposed by this contract and the rights and remedies available hereunder to the Parties hereto, and, in particular but without limitation, the warranties, guarantees and obligations imposed upon the Contractor by this contract and all of the rights and remedies available to Agency thereunder; are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies imposed or available by Laws or Regulations, by special warranty or guarantee or by other provisions of the Contract Documents. 1-7.1.101 Written Notice. Notices to the Contractor shall be in writing and shall be deemed to have been fully served if delivered in person at the Project Site or Contractor’s address shown in the agreement, sent by registered or certified mail to the Contractor’s address shown in the Agreement.

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Notices to the Agency shall be in writing and shall be deemed to have been fully served if delivered in person at or sent by registered or certified mail to:

City Engineer
Parks and Public Works Department
City of San Marino
2200 Huntington Drive
San Marino, California 91106
Either party may change its address for notices by delivery of written notice of the change in conformance with this section
1-7.2 CONTRACT BONDS. Before execution of the Contract, the Bidder shall file surety bonds with the Agency to be approved by the Board in the amounts and for the purposes noted below. Bonds issued by a surety who is listed in the latest version of US. Department of Treasury Circular 570, who is authorized to issue bonds in California, and whose bonding limitation shown in said circular is sufficient to provide bonds in the amount required by the Contract shall be deemed to be approved unless specifically rejected by the Agency. Bonds from all other sureties shall be accompanied by all of the documents enumerated in the Code of Civil Procedure, Section 995.660 a). The Bidder shall pay all bond premiums, costs, and incidentals.

Each bond shall incorporate, by reference, the Contract and be signed by both the Bidder and the Surety.

The signature of the authorized agent of the Surety shall be notarized.

The Bidder shall provide two (2) good and sufficient surety bonds:

The “Payment Bond” (Material and Labor Bond) shall be for not less than 100 percent of the Contract Price, to satisfy claims of material suppliers and mechanics and laborers employed by it on the Work. The bond shall be maintained by the Contractor in full force and effect until the performance of the Contract is accepted by the Agency and until all claims for materials and labor are paid, and shall otherwise comply with the Civil Code.

The “Performance Bond” shall be for 100 percent of the Contract Price to guaranty faithful performance of all work, within the time prescribed, in a manner satisfactory to the Agency, and that all materials and workmanship will be free from original or developed defects. Upon Agency’s acceptance of the Project work, Agency may at its sole discretion allow a substitute Performance Bond in an estimated amount to cover any repair, reconstruction or rework that may be required during any applicable warranty periods plus any attorneys’ fees and costs in enforcing the obligations secured by the bond. Under no circumstances shall Contractor be relieved from its obligations to properly perform the requirements of the Contract and Contract Documents in accord with best practices in a good and workmanlike fashion.

The bond must remain in effect until the end of all warranty periods set forth in the Contract Documents.

The Performance and Payment Bonds shall provide for payment of attorney fees and costs incurred by Agency in enforcing the obligations secured by the bond.

Should any bond become insufficient, the Contractor shall renew the bond within 10 days after receiving notice from the Agency.

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Should any surety at any time be unsatisfactory to the Agency, notice to that effect will be given to the Contractor. No further payments shall be deemed due or will be made under the Contract until a new surety qualifies and is accepted by the Agency.

Changes in the Work or extensions of time, made pursuant to the Contract, shall in no way release the Contractor or the Surety from its obligations. As a condition of providing a bond for this project the Surety waives any notice requirements of such changes in work or extensions of time.

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SECTION 2 – SCOPE OF THE WORK
2-1 WORK TO BE DONE. The work to be performed under this Contract shall consist of furnishing all plant, tools, equipment, materials, machinery, supplies and manufactured articles, and for furnishing all transportation, services, including fuel, power and water and essential communications, and the performance of all labor, work or other operations required for the fulfillment of the Contract, in strict accordance with the specifications, schedules and drawings, all of which are made a part hereof, and including such detailed sketches as may be furnished by the Engineer from time to time during the construction in explanation of said drawings.

The work shall be complete, and all work material and services not expressly called for in the specifications, or not shown on the drawings which may be necessary for complete and proper construction to carry out the Contract in good faith, shall be performed, furnished and installed by the Contractor at no increase in cost to the Agency.
2-2 PERMITS. The Contractor shall obtain and pay for all costs incurred for permits necessitated by its operations such as, but not limited to, those permits required for encroachment in the public right of way, building, construction, excavation, plumbing, electrical, mechanical, night work, overload, blasting, and demolition.
2-2.1 Licenses. The contractor and subcontractors shall obtain and pay costs incurred for all licenses as required by their operations, including municipal business license(s). 2-2.2 Agency Permits. The Contractor must obtain and pay for all business taxes, permits, and fees required for constructing the Project and licenses and inspections necessary for the proper execution and completion of the Work unless specified otherwise in the Contract Documents.

The contractor shall obtain and pay costs incurred for all Permits from adjoining agencies such as but not limited to Caltrans for encroachment or traffic control permits, MTS for work adjacent to rail lines necessitated by his operations, Cal-OSHA, etc., (if required).

The Environmental Quality Act of 1970 (Chapter 1433, Stats. 1970), as amended, may be applicable to permits, licenses, and other authorizations, which the Contractor must obtain from agencies in connection with performing the Work of the Contract. The Contractor shall comply with the provisions of said statutes in obtaining such permits, licenses, and other authorizations and they shall be obtained in sufficient time to prevent delays to the Work.
2-2.4 Payment. Except as specified herein or provided for elsewhere in these Special Provisions as being included in specific contract items of work, compliance with the provisions of Section 2-2, shall be considered as included in the various contract items of work to which such regulations are applicable and no additional compensation shall be made therefore. Further, the enforcement of any requirements of the permits mentioned above during the performance of the Work shall not be the basis for any additional compensation.
2-3 RIGHT-OF-WAY. Rights-of-way, easements, or rights-of-entry for the Work will be provided by the Agency. Unless otherwise specified in the Special Provisions, the Contractor shall make arrangements, pay for, and assume all responsibility for acquiring, using, and disposing of additional work areas and facilities temporarily required. The Contractor shall indemnify and hold the Agency harmless from all claims for damages caused by such actions.

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The Contractor shall confine operations to the areas shown unless special arrangements are otherwise made with individual property owners. The Contractor shall obtain a written release from the property owner and provide a copy of said release to the Agency for any special arrangements made with property owners prior to any action relating to the special arrangement is taken by the Contractor. Furthermore, the Contractor shall conduct operations in accordance with any other provisions and shall observe any restrictions contained in these Special Provisions or as directed by the Engineer concerning work on private property.
2-4 COOPERATION AND COLLATERAL WORK. The Engineer may award contract extensions for delays caused by utilities or third parties at the sole discretion of the Engineer. No additional compensation will be made for such delays. If the Contractor receives damages form a third party for delays to the project by third parties the Agency will not grant a time extension to the project. 2-5 THE CONTRACTOR’S EQUIPMENT AND FACILITIES
2-5.1 General. The Contractor shall furnish and maintain in good condition all equipment and facilities as required for the proper execution and inspection of the Work.

The Contractor shall provide and maintain enclosed toilets for the use of employees engaged in the Work.

These accommodations shall be maintained in a neat and sanitary condition, and regularly pumped out. 2-5.2 Temporary Utility Services. The Contractor shall make all arrangements necessary for the provision of temporary utility services necessary for its own use during performance of the Work. The Contractor shall not draw water from any fire hydrant (except to extinguish a fire), without obtaining a permit from the water utility owner and the Agency.

All costs associated with procuring and use of temporary utility services shall be considered incidental to the items of work that they are associated with and there shall be no additional costs to the Agency.

The use of utilities from sources other than utility companies is strictly prohibited without prior written approval from the Engineer and the owner from which the utilities will be drawn. The Contractor shall also provide a written release from the property owner absolving the Agency from any and all responsibility in connection with storage of materials or equipment on said property. The Agency must approve the form and content of any release.

The Contractor shall contact California American Water Company to obtain a construction water meter and to determine all terms, costs, conditions and regulations imposed on the Contractor for use thereof.

The Contractor shall pay all costs associated with procuring and providing water for construction. 2-5.2.1 Contractor’s Yard. The Contractor shall be solely responsible for yard site procurement, security, and liability. The yard shall be fenced, lighted and locked. A guard dog shall not utilized at the yard.

Stockpile of material and equipment storage locations shall be selected by the Contractor subject to approval by the Engineer. When any material or equipment is to be stored outside the highway or street right-of-way or other Agency property, the Contractor shall first obtain a written permit from the property owner on whose property the storage is to be made.

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The Contractor shall file with the Engineer said permit or a certified true copy thereof, together with a written release from the property owner absolving the Agency from any and all responsibility in connection with storage of materials or equipment on said property. The Agency must approve the form and content of any release.

The Contractor shall leave all storage areas in a neat clean condition, satisfactory to the Engineer and in accordance with the provisions of storage permits set by owner.

Full compensation for complying with the requirements of this Provision shall be considered as included in the Contract price paid for various items of work and there shall be no additional costs to the Agency.

2.5.3 Crushing and Screening Operations. Unless otherwise specified in the Special Provisions, the establishment and operation of portable screens and crushers will not be allowed on or adjacent to the Work site.
2-5.4 Haul Routes. Unless otherwise specified in the Special Provisions, haul routes shall be determined by the Contractor.
2-6 CHANGES REQUESTED BY THE CONTRACTOR
2-6.1 General. Changes in the Plans and Specifications, requested in writing by the Contractor, which do not materially affect the Work and which are not detrimental to the Work or to the interests of the Agency, may be granted by the Engineer. Nothing herein shall be construed as granting a right to the Contractor to demand acceptance of such changes. Any such changes shall not be effective or allowed until the Engineer has issued a signed change order or bulletin. 2-6.2 Payment for Changes Requested by the Contractor. If such changes are allowed by the Agency, they shall be made at a reduction in cost to the Agency to reflect the time and cost savings achieved by the Contractor. Agency and Contractor shall agree to the amount of such deductive changes prior to any work being performed or relieved from performance. Under no circumstances shall such changes result in additional costs to the Agency.
2-7 CHANGES INITIATED BY THE AGENCY
2-7.1 General. The Agency may change the Plans, Specifications, character of the work, or quantity of work provided the total arithmetic dollar value of all such changes, both additive and deductive, does not exceed 25 percent of the Contract Price. Should it become necessary to exceed this limitation, the change shall be by written Supplemental Agreement between the Contractor and Agency, unless both parties agree to proceed with the change by Change Order.

Change Orders shall be in writing and state the dollar value of the change or establish the method of payment, any adjustment in the Contract time of completion, and when negotiated prices are involved, shall provide for the Contractor’s signature indicating acceptance. Change Orders shall include all direct and indirect costs and time impacts including but not limited to profits and extended home office overhead associated with the changes contemplated in the Change Order. 2-9 CHANGED CONDITIONS. The Contractor shall not be entitled to the payment of any additional compensation for any act, or failure to act, by the Engineer, including failure or refusal to issue a change order, or for the happening of any event, thing, occurrence, or other cause, unless the Contractor shall

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have first given the Engineer due written notice of potential claim as hereinafter specified. The written notice of potential claim for changed conditions shall be submitted by the Contractor to the Engineer upon their discovery and prior to the time that the Contractor performs any work giving rise to the potential claim and under no circumstances greater than 24 hours from the time of the discovery of the changed condition by Contractor. The Contractor’s failure to give timely written notice of potential claim for changed conditions to the Agency upon their discovery, and before they are disturbed, shall constitute a waiver of all claims in connection therewith.

No action will be taken by the Contractor that may be the subject of an extra claim by the Contractor without written direction and approval of the Engineer.

The Contractor shall provide the Agency with a written document containing a description of the particular circumstances giving rise to the potential claim, the reasons for which the Contractor believes additional compensation may be due and nature of any and all costs involved within FIVE (5) working days of the date of service of the written notice of potential claim for changed conditions. Verbal notifications are not allowed.

The potential claim shall include the following certification relative to the California False Claims Act, Government Code Sections 12650-12655.
“The undersigned certifies that the above statements are made in full cognizance of the California False Claims Act, Government Code sections 12650-12655. The undersigned further understands and agrees that this potential claim, unless resolved, must be restated as a claim in response to the Agency’s proposed final estimate in order for it to be further considered.” By: Title:

Date:

Company Name:

The Contractor’s estimate of costs may be updated when actual costs are known. The Contractor shall submit substantiation of its actual costs to the Engineer within ten (10) working days after the affected work is completed. Failure to do so shall be sufficient cause for denial of any claim subsequently filed on the basis of said notice of potential claim.

Extra work that follows a changed condition must be documented and confirmed daily with the Engineer’s representative. Failure to provide daily accounting at the end of each day to the Engineer’s representative shall constitute a waiver of any claim for the work of that day. Failure to give the Engineer 24 hour notice of this work so it may be observed, documented and inspected shall constitute a waiver of any claim for the work of that day.

It is the intention of this section that differences between the parties arising under and by virtue of the Contract be brought to the attention of the Engineer at the earliest possible time, but no later than that which is required herein, in order that such matters may be settled, if possible, or other appropriate action may be promptly taken.

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Compliance with this section shall not be required as a prerequisite to notice provisions in Section 6-3.2 Contract Time Accounting, nor to any claim that is based on differences in measurement or errors of computation as to contract quantities.
2-10 DISPUTED WORK. If the Contractor and the Agency are unable to reach agreement, the Agency may direct the Contractor to proceed with the Disputed Work. Payment shall be as later determined by mediation or arbitration, if the Agency and Contractor agree thereto, or as fixed in a court of law.

Although not to be construed as proceeding under 7-4, the Contractor shall keep and furnish records of Disputed Work to the Engineer in accordance with 7-4.
2-10.1 DISPUTE RESOLUTION PROCEDURES
2-10.2 Informal Dispute Resolution. Prior to proceeding with mandatory mediation the contractor shall attempt to resolve all disputes informally through the Agency’s chain of command, to and including the most senior executive.

Public Contract Code Section 9204 specifies provisions on resolving contract claims of any size, and Public Contract Code Section 201014, et seq., specifies required provisions on resolving contract claims less than $375,000. Those statutes constitute a part of this Contract. In the event any other Contract provision violates such statutes, the applicable statute controls.

Public Contract Code Section 9204 applies to a separate demand by Contractor for (1) a time extension, (2) payment or money or damages arising from Work done by or on behalf of Contractor arising under the Contract Documents and payment of which is not otherwise expressly provided for or the Claimant is not otherwise entitled to, or (3) an amount the payment of which is disputed by Agency.

Upon receipt of a Claim the Agency shall conduct a reasonable review of the Claim and within 45 days, shall provide Contractor with a written statement identifying what portion of the claim is disputed and what portion is undisputed. Should Agency take no action on the Claim within 45 days of submission, it shall be deemed denied.

If the Contractor disputes Agency’s response to its Claim, including a failure to respond, it may submit via registered mail or certified mail, return receipt requested, a written demand for an informal conference to meet and confer for settlement of the issues in dispute. Agency shall schedule such a meet and confer conference within 30 days for settlement of the dispute. Within ten (10) days of the meet and confer conference Agency shall provide Contractor with a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. If the Contractor disputes Agency’s statement it shall inform Agency and they shall mutually agree to a mediator within 10 business days of the written statement.

Agency shall pay the undisputed portions of the Claim within 60 days of the issuance of a written statement identifying an undisputed portion.

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2-10.3 Mandatory Mediation. Any disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the Agency and the claimant sharing the associated costs equally. The Agency and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a q(ualified 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. Mediation shall be held before the Judicial Arbitration and Mediation Service (“JAMS”).

In the event JAMS is no longer in business and there is no comparable successor, then the parties shall agree upon another mediator. If the parties cannot agree upon another mediator, then a single neutral mediator shall be appointed pursuant to Section 1281.6 of the Code of Civil Procedure substituting the term “mediator” for “arbitrator.”
If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to applicable procedures outside this section.

For claims under $375,000, unless the parties agree otherwise in writing, mediation pursuant to these provisions shall excuse the mediation obligation under Public Contracting Code section 20104.4(a).

The parties may mutually agree, in writing, to waive the mediation requirements of this subsection and proceed to the commencement of a civil action.

Failure by the Agency to respond to a Claim from a Contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A Claim that is denied by reason of the public entity’s failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the claimant.

Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.

If a Subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against the Agency because privity of contract does not exist, the Contractor may present to the Agency a claim on behalf of a Subcontractor or lower tier subcontractor. A Subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a claim for work which was performed by the Subcontractor or by a lower tier subcontractor on behalf of the Subcontractor. The Subcontractor requesting that the Claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the Contractor shall notify the Subcontractor in writing as to whether the Contractor presented the claim to the Agency and, if the original Contractor did not present the claim, provide the Subcontractor with a statement of the reasons for not having done so.
2-10.4 Conduct of Mediation Sessions

1. Mediation hearings will be conducted in an informal manner and discovery will not be allowed.

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2. The discussions, statements, or admissions will be confidential to the proceedings, subject to all applicable evidentiary and mediation privileges including but not limited to Evidence Code § 1152, et seq., and will not be used for any other purpose as it relates to the party’s legal position. The parties may agree to exchange any information they deem necessary.

3. Both parties must have an authorized representative attend the mediation. Each representative must have the authority to recommend entering into a settlement; provided however that in the case of the Agency any recommended settlement is contingent upon the approval of Agency’s city council or governing board. Either party may have attorney(s), witnesses or expert(s) present. Either party may request a list of witnesses and notification whether attorney(s) will be present.

4. Any resultant agreements from mediation must be documented in writing. Mediation results and documentation, by themselves, must be “non-binding” and inadmissible for any purpose in any legal proceeding, unless such admission is otherwise agreed upon, in writing, by both parties. Mediators must not be subject to any subpoena or liability and their actions must not be subject to discovery. 2-10.5 Claim Certification Requirements. If the claim seeks an increase in the Contract Price, the Contract Time, or both, the Contractor shall submit with the claim an affidavit certifying that:
a) The claim is made in good faith and covers all costs and delays to which the Contractor is entitled as a result of the event(s) giving rise to the claim;
b) The amount claimed accurately reflects the adjustments in the Contract Price, the Contract Time, or both to which the Contractor believes it is entitled; and c) All supporting costs and pricing data are current, accurate, complete, and represent the best of the Contractor’s knowledge and belief.

The claim shall include the following certification relative to the California False Claims Act, Government Code Sections 12650-12655.
“The undersigned certifies that the above statements are made in full cognizance of the California False Claims Act, Government Code sections 12650-12655. The undersigned further understands and agrees that this potential claim, unless resolved, must be restated as a claim in response to the Agency’s proposed final estimate in order for it to be further considered.” By: Title:

Date:

Company Name:

The Contractor shall ensure that the affidavit is executed by an official who has the authority to legally bind Contractor.
2-10.6 Work Continuance. Unless otherwise agreed between the Agency and the Contractor in writing, the Contractor shall carry on the Work and maintain its progress during any dispute and the Agency shall continue to make payments to the Contractor for matters not in dispute in accordance with the Bid and Contract Documents.

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2-10.7 Mandatory Assistance. If a third party dispute or litigation, or both, arises out of, or relates in any way to the Services provided under this contract, upon the Agency’s request, the Contractor agrees to assist in resolving the dispute or litigation. The Contractor assistance includes, but is not limited to, providing professional consultations, attending mediations, arbitrations, depositions, trials or any event related to the dispute resolution, litigation, or both. 2-10.8 Attorney Fees Related To Mandatory Assistance. In providing the Agency with dispute or litigation assistance, the Contractor and or Subcontractors or their agents, officers, and employees may incur expenses and or costs. The Contractor agrees that any attorney fees and costs it may incur are not reimbursable.
2-10.9 Compensation for Mandatory Assistance. In its sole discretion, the Agency may choose to reimburse the Contractor for reasonable fees and expenses incurred by the Contractor for any required assistance rendered in accordance with “Mandatory Assistance” as Extra Work. The Agency in its sole discretion shall determine whether these fees and expenses were necessary due to the conduct of or failure to act by the Contractor or Subcontractors or their respective agents, officers, and employees. If the Agency determines that the basis of the dispute or litigation in which these fees and expenses were incurred were the result of the conduct of or failure to act by the Contractor or Subcontractors or their respective agents, officers, and employees, in part or in whole, the Agency shall be entitled to be reimbursed for any payments made for these fees and expenses.

Reimbursement may be through any legal means necessary, including the Agency’s withholding of payment. 2-10.10 Costs Relating To Weather Damage. The Contractor shall have no claims against the Agency for damages to any elements of the project resulting from the action of the elements, weather or nature. If, however, in the opinion of the Engineer, Contractor has made all reasonable efforts to protect the Work, Contractor may be granted a reasonable extension of Contract Time to make proper repairs, renewals, and replacements of Work in accordance with Section 6, “PROSECUTION AND PROGRESS OF THE WORK.”

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SECTION 3 - CONTROL OF THE WORK
3-1 ASSIGNMENT. No Contract or portion thereof may be assigned without consent of the Board, except that the Contractor may assign money due or which will accrue to it under the Contract. If given written notice, such assignment will be recognized by the Board to the extent permitted by law. Any assignment of money shall be subject to all proper withholdings in favor of the Agency and to all deductions provided for in the Contract. All money withheld, whether assigned or not, shall be subject to being used by the Agency for completion of the Work, should the Contractor be in default.

The Agency and the Contractor, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party hereto and to the partners, successors, assigns and legal representatives of such other party with respect to all covenants, agreements and obligations contained in the Bid and Contract Documents.
3-1.1 Assignment to Awarding Body. In accordance with §7103.5(b) of the California Public Contract Code (A.B. 3416), Contractor and Subcontractors must conform to the following requirements:

1. In entering into a public works contract or a Subcontract to supply goods, services, or materials pursuant to a public works contract, Contractor or Subcontractor offer and agree to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under §4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with §16700) of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the public works contract or the Subcontract.

2. This assignment must be made and become effective at the time the awarding body tenders to you, without further acknowledgment by the Parties.
3-1.2 Contractor Indebtedness. Indebtedness incurred for any cause in connection with this work must be paid by the Contractor, and the Agency is hereby relieved at all times from any indebtedness or claim other than payments under terms of the contract and the Contractor will indemnify and hold harmless the Agency and its officers and employees from any loss, demand, damages, claims or actions arising from or in connection with said indebtedness.
3-2 Self-Performance. The Contractor shall perform, with its own organization, Contract work amounting to at least 50 percent of the Contract Price except that any designated “Specialty Items” may be performed by subcontract and the amount of any such “Specialty Items” so performed will be deducted from the Contract Price before computing the amount required to be performed by the Contractor with its own organization. “Specialty Items” will be identified by the Agency in the Bid or in the Special Provisions. Where an entire item is subcontracted, the value of work subcontracted will be based on the Contract Unit Price. When a portion of an item is subcontracted, the value of work subcontracted will be based on the estimated percentage of the Contract Unit Price. This will be determined from information submitted by the Contractor, and subject to approval by the Engineer.

The requirement for the Contractor to perform at least 50% of the contract work with its own forces will be waived only for contracts where only a “B” License is required for the prime contractor.

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3-3 SUBCONTRACTORS
3-3.1 General. The Contractor agrees to bind in writing all Subcontractors and materials suppliers to the terms of the Bid and Contract Documents.

Contractor shall submit a copy of all listed subcontractor bids with their bid package.

Each Bidder shall comply with Chapter 4 of the Public Contract Code including Sections 4100 through 4113.

The Bidder shall set forth in the Bid, pursuant to 4104:
“(a) (1) The name, the location of the place of business, the California contractor license number, and public works contractor registration number issued pursuant to Section 1725.5 of the Labor Code of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the work or improvement, or a subcontractor licensed by the State of California who, under subcontract to the prime contractor, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of 1 percent of the prime contractor’s total bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the prime contractor’s total bid or ten thousand dollars ($10,000), whichever is greater. (2) An inadvertent error in listing the California contractor license number or public works contractor registration number provided pursuant to paragraph (1) shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive if the corrected contractor’s license number is submitted to the public entity by the prime contractor within 24 hours after the bid opening and provided the corrected contractor’s license number corresponds to the submitted name and location for that subcontractor.
(3) (A) Subject to subparagraph (B), any information requested by the officer, department, board, or commission concerning any subcontractor who the prime contractor is required to list under this subdivision, other than the subcontractor’s name, location of business, the California contractor license number, and the public works contractor registration number, may be submitted by the prime contractor up to 24 hours after the deadline established by the officer, department, board, or commission for receipt of bids by prime contractors.
(B) A state or local agency may implement subparagraph (A) at its option.” “b) The portion of the work which will be done by each such subcontractor under this act. The prime contractor shall list only one subcontractor for each such portion as is defined by the prime contractor in his or her bid.”
If the Contractor fails to specify a Subcontractor, or specifies more than one Subcontractor for the same portion of the Work to be performed under the Contract (in excess of one-half of I percent of the Contractor’s total Bid), the Contractor shall be qualified to perform that portion itself, and shall perform that portion itself, except as otherwise provided in the Code.

Pursuant to Section 4107, no Contractor whose Bid is accepted shall substitute any person as a Subcontractor in place of a Subcontractor listed in the Bid, except for the causes and by the procedures established in Section 4107.5. This section provides procedures to correct a clerical error in the listing of a Subcontractor.

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Section 4110 provides that a Contractor violating any of the provisions of Chapter 4 violates the Contract and the Board may exercise the option either to cancel the Contract or assess the Contractor a penalty in an amount of not more than 10 percent of the subcontract involved, after a public hearing.

Subcontractors shall be qualified, sufficiently experienced, and appropriately licensed, and specifically qualified where required by the contract documents.

No subcontract releases the Contractor from the Contract, lessens Contractor’s responsibility for timely completing the Project work in accord with best construction practices, or relieves the Contractor of its responsibility for a subcontractor’s work.

If the Contractor violates Public Contract Code § 4100 et seq., the Agency may exercise the remedies provided under Public Contract Code § 4110. The Agency may refer the violation to the Contractors State License Board as provided under Public Contract Code § 4111.

By an appropriate written agreement, the Contractor shall require each Subcontractor, to the extent of the Work to be performed by the Subcontractor, to be bound to the Contractor by the terms of the Bid and Contract Documents, and to assume toward the Contractor all the obligations and responsibilities which the Contractor, by the Bid and Contract Documents, assumes toward the Agency, except for the provisions of Section 5-4, Contractor’s Insurance, Section 5-4.1, Policies, paragraphs (i), (ii), and (iii) of these General Provisions relating to the limits of insurance coverage. The limits of insurance coverage for liability and business auto policies required by the Contractor from each Subcontractor shall be determined by the Contractor.

Each subcontract shall include an indemnity agreement in the form of Section 5-9, Indemnification, in favor of the Agency and its respective employees and agents. The Subcontractors shall name the parties described in Section 5-4.3, Endorsements, as additionally insured, but only with respect to work done by, for, or on behalf of the named insures, in any liability insurance policies maintained by the Subcontractors.

Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that Agency is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13.

The Contractor-Subcontractor agreements shall preserve and protect the rights of the Agency under the Bid and Contract Documents with respect to the Work to be performed by the Subcontractor so that the subcontracting thereof will not prejudice such rights, and shall allow to the Subcontractor, unless specifically provided otherwise in the Contractor -Subcontractor agreement, the benefit of all rights, remedies and redress against the Contractor that the Contractor, by these Documents, has against the Agency.

Where appropriate, the Contractor shall require each Subcontractor to enter into similar agreements with their sub-Subcontractors. The Contractor shall make available to each proposed Subcontractor, prior to the execution of the subcontract, copies of the Bid and Contract Documents to which the Subcontractor will be bound by this Section and identify to the Subcontractor any terms and conditions of the proposed subcontract which may be at variance with the Bid and Contract Documents. Each Subcontractor shall similarly make copies of such Bid and Contract Documents available to their sub-Subcontractors.

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The Contractor shall be fully responsible for the acts and omissions of the Contractor’s Subcontractors, and of persons either directly or indirectly employed by them, as the Contractor is for the acts and omissions of persons directly employed by the Contractor.

When a portion of the Work subcontracted by the Contractor is not being performed in a manner satisfactory to the Agency, the Agency shall notify the Contractor and shall inform the Contractor of the deficiencies in the Subcontractor’s execution of the Work. If the Subcontractor fails to correct such deficiencies within five (5) days after Contractor’s receipt of notification from the Agency, the Contractor shall cause the Subcontractor to be removed immediately from the Work.

Each Subcontractor and materials supplier shall agree in writing to be bound by and submit any disputes under its contract for resolution in accordance with the dispute resolution provisions set forth in the sections addressing claims for damages.

The Contractor shall require each Subcontractor and materials supplier to agree in writing to utilize any reserve gate set aside, at the Agency’s election, for use by the Subcontractor, its suppliers and employees, or the materials supplier. Contractor shall require each Subcontractor and materials supplier to agree in writing to perform its obligations under this Contract notwithstanding the presence of pickets, labor protests, and/or strike activities at the reserve gate.

Each subcontractor must have an active and valid State contractor’s license with a classification appropriate for the work to be performed (Bus & Prof Code, § 7000 et seq.).

Contractor shall not use a debarred subcontractor; a current list of debarred contractors is available at the Department of Industrial Relations’ Web site. However, Contractor is responsible for making sure that all of its subcontractors are properly licensed and not disbarred. 3-3.2 Suppliers List. The Contractor warrants that it has listed all Suppliers known to the Contractor at the time of Award on the Agency provided forms contained in the Contract Documents. If other Suppliers are required, that were not listed by the Contractor prior to Award, the Contractor shall let the supply subcontract in accordance with a competitive bidding process performed at the Contractor’s expense.
3-3.3 Subcontractor List. The listing of Subcontractors provided by the Contractor, in compliance with the “Subletting and Subcontracting Fair Practices Act” (Public Contract Code §§4100-4114, inclusive), shall not be modified without the prior written approval of the Agency.

If at any time after Award of the Contract the Contractor identifies a need for additional Subcontractor services, the Contractor shall immediately request in writing the Agency’s consent. The request shall include a justification, a description of the work, and an estimate of the costs for the services. The Agency shall make the sole and final determination as to the acceptance of the addition or substitution on any subcontractor. There shall be no adjustment to the contract price in the event Contractor identifies a need for additional Subcontractor services, regardless of whether the Agency approves or denies the request.
3-3.5 Status of Subcontractors. The Contractor shall give personal attention to the fulfillment of the Contract. The Contractor shall keep the Work under its control.

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Subcontractors shall be considered employees of the Contractor, and the Contractor shall be responsible for their work.
3-3.6 Subcontract Requirements. The Contractor shall incorporate these specifications in its Subcontracts to the extent of the Work to be performed by such Subcontractor.

The Contractor shall obtain or require that each Subcontractor obtain insurance policies in accordance with section 5-4, “INSURANCE” which shall be kept in full force and effect during Work on this project and for the duration of this contract.

In any dispute between the Contractor and the Subcontractor the Agency shall not be made a party to any judicial or administrative proceeding to resolve the dispute.

The Subcontractors must be qualified and sufficiently experienced. You must ensure that your Subcontractors are appropriately licensed for the duration of the Work that is performed under the Subcontracts. In the event the Subcontractor is not properly licensed, you must cease payment to the Subcontractor for all work performed when the Subcontractor was not properly licensed. You must return to the Agency any payment you made to a Subcontractor for work performed when the Subcontractor was not licensed.

Where the Contract Documents require that a particular product be installed or applied by an applicator approved by the manufacturer, Contractor shall ensure the Subcontractor or Supplier employed for such work is approved by the manufacturer and provide proof of such approval upon request of Agency. 3-4 AUTHORITY OF THE BOARD AND THE ENGINEER. The Board has the final authority in all matters affecting the Work. Within the scope of the Contract, the Engineer has the authority to enforce compliance with the Contract Documents. The Contractor shall promptly comply with instructions from the Engineer.

The decision of the Engineer is final and binding on all questions relating to:
a) quantities;
b) acceptability of material, equipment, or work;
c) execution, progress or sequence of work; and
d) interpretation of the Plans, Specifications, or other Contract Documents. e) Any other areas specifically identified in the Contract Documents or under the law.

Compliance with instructions from the Engineer shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board.
3-5 INSPECTION. The Work is subject to inspection and approval by the Engineer. The Contractor shall notify the Engineer before noon at least one working day before inspection is required. Work shall be done only in the presence of the Engineer, unless otherwise approved. Any work done without proper inspection will be subject to rejection. The Engineer and any authorized representatives shall at all times have access to the Work during its construction at shops and yards and while in storage, as well as to the Work site. The Contractor shall provide every reasonable facility for ascertaining that the materials and workmanship are in accordance with these Specifications. Inspection of the Work shall not relieve the Contractor of the obligation to fulfill all conditions of the Contract and the Project Documents.

Contractor is solely responsible for completing the Project work using best construction practices in a good and workmanlike fashion.

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Defective work, unsuitable material(s) and equipment may be rejected notwithstanding and regardless of the fact that such defective work, unsuitable materials and equipment may or may not have been previously inspected by the Agency’s Representative or that payment therefore has been included in an estimate for payment. Any defective work, unsuitable material(s) and equipment shall be replaced immediately to original contract specifications and any other improvements damaged as a results such replacement shall be repaired to as good or better condition. All such work shall be done at Contractor’s expense, and there shall be no costs to the Agency.

All costs of inspection and testing performed during overtime work by the Contractor, which is allowed solely for the convenience of the Contractor shall be borne by the Contractor. The Agency shall have the authority to deduct the cost of all such inspection and testing from any partial payments otherwise due to the Contractor. The value of services rendered for these purposes shall be at full cost recovery rates. 3-5.1 Inspection by Other Agencies and Utilities. Whenever any part of the Work to be performed is under the jurisdiction or control or is to be paid for, in whole or in part, by another public subdivision, entity, jurisdiction or utility company, such Work shall be subject to inspection and approval by the proper officials of such entities or jurisdictions, and it must pass inspection, in addition to Agency inspection, and such other inspections as may be otherwise provided for in the Bid and Contract Documents.

The Contractor shall schedule separate preconstruction meetings for each agency or utility prior to commencing work within their jurisdiction.

The Contractor is solely responsible for requesting and coordinating such inspections. 3-6 THE CONTRACTOR’S REPRESENTATIVE. Before starting the Work, the Contractor shall designate in writing a representative who shall have complete authority to act on behalf of and obligate the Contractor. An alternative representative may be designated as well. The representative or alternate shall be present at the Work site whenever work is in progress or whenever actions of the elements necessitate its presence to take measures necessary to protect the Work, persons, or property. Any order or communication given to this representative shall be deemed delivered to the Contractor. A joint venture shall designate only one representative and alternate. In the absence of the Contractor or its representative, instructions or directions may be given by the Engineer to the superintendent or person in charge of the specific work to which the order applies. Such order shall be complied with promptly and referred to the Contractor or its representative.

In order to communicate with the Agency, the Contractor’s representative, superintendent, or person in charge of specific work shall be able to speak, read, and write the English language.

The Engineer may deduct the value of superintendence (value shall be determined by the reasonable cost of provide and a superintendent, transportation and communication) from amounts due to the Contractor for any partial or complete failure to provide superintendence to the Project. 3-6.1 Project Meetings. Your representatives e.g., field supervisor, superintendent, and project manager, must attend weekly and other scheduled construction meetings as required by the Engineer. If any of your staff cannot attend, you must notify the Engineer a minimum of 24 hours in advance, prior to the start of the scheduled meeting. If you do not provide the required notification, you must pay for the costs of the Agency’s staff, Consultants, or both that attend. You will be charged a minimum of 2 hours

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of the Engineer’s time plus the time of the Agency’s other employees or representatives that attend the meeting at full cost recover rates.
3-7 CONTRACT DOCUMENTS.
3-7.1 General. The Contractor shall keep at the Work site a copy of the Plans and Specifications and will provide the Engineer with access at all times.

The Plans, Specifications, Contract Documents, reference materials, codes and regulations shall govern the Work. The Contract Documents are intended to be complementary and cooperative. Anything specified in the Specifications and not shown on the Plans, or shown on the Plans and not specified in the Specifications, shall be as though shown on or specified in both.

The Plans shall be supplemented by such working drawings and shop drawings as are necessary to adequately control the Work.

The Contractor shall, upon discovering any error or omission in the Plans or Specifications, immediately call it to the attention of the Engineer in writing. If the Contractor fails to inform the Engineer in writing of any ambiguity, conflict, error or omission contained within the Contract Documents, any costs incurred by the contractor or additional future costs resulting from the Contractor’s action or inaction shall be borne solely by the Contractor and there shall be no cost to the Agency. 3-7.2 Precedence of the Contract Documents. If there is a conflict between any of the Contract Documents, the documents highest in precedence shall control. The precedence shall be as follows:
1) Permits of other agencies as may be required by law. 2) Change Orders and Supplemental Agreements; whichever occurs last. 3) Contract/Agreement
4) Addenda
5) Bid Schedule
6) Project Special Provisions
7) Project Plans
8) Agency Standard Drawings
9) Utility Standard Drawings
10) Regional Standard Drawings
11) Regional Supplement
12) “Greenbook 2021” Standard Specifications for Public Works Construction (excepted as specifically modified herein)
13) Reference Specifications
Detail drawings shall take precedence over general drawings.

Other controlling drawings and codes:

STANDARD SPECIFICATIONS/CODES are the most current edition at the time of bidding.

1. Standard Specifications for Public Works Construction (Greenbook) and all Regional Supplements.

2. Manual for Uniform Traffic Control Devices for the State of California (Current edition).

3. State of California Mechanical, Electrical and Plumbing Codes.

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4. All local utilities’ standards, regulations and codes.

STANDARD DRAWINGS are the most current at the time of bidding.

1. Agency’s Standard Drawings and supplements.

2. State of California Mechanical, Electrical and Plumbing Codes related drawings.

3. All local utilities’ standard drawings.

4. State and Federal Standard Drawings.
3-8 SUBMITTALS.
3-8.1 General. Anything required to be provided by the Contractor to the Agency for review, acceptance or approval is a submittal. Submittals shall be provided, at the Contractor’s expense as required by the Contract Documents, or when requested by the Engineer when needed to ensure consistency, quality, function, conformance, durability, compatibility or any other reason deemed necessary by the Engineer. The Agency shall provide an initial submittal review and one re-review for each resubmittal. The cost of all additional re-reviews for each submittal shall be paid for by the Contractor.

The Agency may deduct the costs of the additional re-reviews from any monies owed to the Contractor.

Materials shall not be furnished or fabricated, or shall any work for which submittals are required be performed, before the required submittals have been reviewed and accepted without exception by the Engineer. Review or acceptance of the submittals by the Engineer shall not relieve the Contractor from responsibility for ambiguities, conflicts, errors, omissions, or deviations from the Contract Documents, unless Contractor specifically calls each ambiguities, conflicts, errors, omissions, or deviations to the attention of the Engineer both in the letter of transmittal and on the submittal. The Contractor shall be responsible for the correctness of the submittals. Work or materials that are incorporated into the work that differ from those required in the Contract Documents that were not approved with such proper written notice from Contractor shall be removed and replaced with the specified item at the Contractor’s expense.

The Contractor shall allow a minimum of 20 working days for review of submittals unless otherwise specified in the Special Provisions. A letter of transmittal shall accompany each submittal.

Prior to the start of work the Contractor shall prepare and deliver to the Engineer a log of submittals that indicates all required submittals, and for each:
a) Estimated delivery date of the submittal.
b) Last day submittal can be delivered to keep the project schedule (factor in response time and resubmittal/response time).

Unless otherwise stated in the Contract Documents, the Contractor shall deliver all submittals in pdf format to the Engineer. Such submittals shall be returned in pdf format. Some submittals may require material samples or hard copy of the submittal packages at the discretion of the Engineer. In such cases the hard copy and/or material samples shall be delivered to City Hall or the Project site as directed by the Engineer, this is in addition to and not in lieu of, uploading the transmittals and accompanying documents, including pictures of the material samples delivered, via email.

Each submittal shall be consecutively numbered (e.g. 1.0, 2.0, 3.0, etc.). Resubmittals shall be labeled with the original submittal number followed by an ascending decimal designation (e.g. the label ‘4.1’ would

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indicate the first resubmittal for submittal number 4). Each sheet of each submittal shall be consecutively numbered. Each set of shop drawings and submittals shall be accompanied by a letter of transmittal on the Contractor’s letterhead. The Letter of transmittal shall contain the following:

1. Project title and project number.

2. Number of complete sets.

3. Contractor’s certification statement.

4. Specification section number(s) pertaining to material submitted for review.

5. Submittal number (Submittal numbers shall be consecutive including subsequent submittals for the same materials.)

6. Table of Contents describing the contents of the submittal.

7. Identification of deviations from the contract documents.

The Contractor shall subscribe to and shall place the following certification on all submittals:
“I hereby certify that the (equipment, material) shown and marked in this submittal is that proposed to be incorporated into this Project, is in compliance with the Contract Documents, can be installed in the allocated spaces, and is submitted for approval.”
By: Title:

Date:

Company Name:
3-8.2 Working Drawings. Working Drawings shall be of a size and scale to clearly show all necessary details. The Contractor shall confirm the scale of the drawings with the Engineer prior to preparation and submittal. Contractor agrees that Working Drawing Submittals processed by the Engineer are not Change Orders.

Pdf copies shall be submitted. If no revisions are required, Engineer will stamp submittal and a scan will be returned to the Contractor. If revisions are required, the Engineer will return a scan with identified corrections. Upon acceptance, the Engineer will provide a scanned copy.

Working Drawings are required in the subsections shown in Table 3-8.2(A):

TABLE 3-8.2 (A)
Item Subsection
No. Title Subject
1 7-8.6.3 Water Pollution Control Storm Water Pollution Prevention Plan 2 7-10.2.2 Work Area Traffic Control Traffic Control Plan Working Drawings listed above as Items 1 shall be prepared by a Civil Engineer registered by the State of California. Item 1 may also be prepared by a Traffic Engineer registered by the State of California. 3-8.3 Shop Drawings. Contractor agrees that Shop Drawing Submittals processed by the Engineer are not Change Orders. The purpose of Shop Drawing Submittals by the Contractor is to demonstrate to the Engineer that the Contractor understands the design concept, that he demonstrates his understanding

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by indicating which equipment and material he intends to furnish and install, and by detailing the fabrication and installation methods he intends to use.

Shop drawings shall include complete fabrication, assembly, foundation, and installation drawings for the complete assembly of the system with all components, equipment, and parts, each with an assigned number corresponding to the system manufacturer’s parts list. Shop drawings shall also show construction details for each component and piece of equipment.

When submitted for the Engineer’s review, Shop Drawings shall bear the Contractor’s certification that the Contractor has reviewed, checked, and approved the Shop Drawings and that they are in conformance with the requirements of the Contract Documents.
3-8.4 Supporting Information. Supporting information is information required by the Contract Documents for the purposes of administration of the Contract, analysis for verification of conformance with the Specifications, the operation and maintenance of a manufactured product or system to be constructed as part of the Work, and other information as may be required by the Engineer. Six copies of the supporting information shall be submitted to the Engineer prior to the start of the Work unless otherwise specified in the Contract Document or directed by the Engineer. Supporting information for systems shall be bound together and include all manufactured items for the system. If resubmittal is not required, 3 copies will be returned to the Contractor. Supporting information shall consist of the following and is required unless otherwise specified in the Special Provisions.

The following submittals are required prior to the start of work:

1. 24-hour emergency contact information.

2. Name and contact information of the company contact and superintendent who is authorized to legally bind the Contractor.

3. List of all subcontractors regardless of percentage of work to be performed.

4. Construction schedule

5. Public notifications

6. Digital photo documentation of the project site and adjacent areas.

7. Corner Records of all survey monuments tie-out in or near the work area (if surveying is to be provided by the Contractor).

8. Specifications and certifications for each material or item to be used on the project.

9. List of all equipment to be employed on the project.

10. Traffic control plans.

11. Certified payroll documents set up documents.

12. Illness and Injury Prevention Program Plan

13. Certificates of Compliance for materials and equipment to be used.

14. Schedule of Values

15. Construction Schedule

16. All permits and contractor licenses

17. Business licenses

18. Confined Space Entry Program and Shoring Plan, (if required)

19. Cut sheet/shop drawings, manufacturer’s brochures, technical bulletins and reports, specifications, diagrams for all products to be used on the project

20. Plans, schematics, drawings and engineering calculations as required per the contract documents and/or permitting

21. SWPPP (if required)

22. Controller cabinet wiring diagrams (if any)

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23. Data, including, but not limited to, catalog sheets, manufacturer’s brochures, technical bulletins, specifications, diagrams, product samples, and other information necessary to describe a system, product or item. This information is required for irrigation systems, street lighting systems, and traffic signals, and may also be required for any product, manufactured item, or system.

24. Other submittals as described herein, referenced or described in referenced materials, or as requested by the Engineer
The following submittals are required during the work:

25. Superintendent’s daily report, which shall include:
a. Name, work classification and hours of each worker
b. Equipment make and model and character of use (use or idle hours). c. Work accomplished

26. Certificates of compliance for products delivered.

27. Incident reports

28. Photo documentation

29. Schedule updates

30. Material tickets

31. Product samples and mock-ups.

32. Schedule of Values reflecting percentage of completion with progress payment requests

33. Certified payroll documents

34. Interim as-built drawings

35. Other submittals as described herein, referenced or described in referenced materials, or as requested by the Engineer
The following submittals are required at the completion of work:

36. Notice that work is complete

37. Warranties/Guarantees

38. User Manuals

39. As-built plans

40. Close-out documents

41. Other submittals as described herein, referenced or described in referenced materials, or as requested by the Engineer
3-8.4.1 Record Drawings (Red-line As-built drawings). The Contractor shall continuously maintain (2) two identical sets of accurate and legible as-built plans on sets of contract drawings of all work which occurs during construction. The contractor shall record the exact location by dimension, and exact depth, by elevation, of all underground lines, valves, plugged tees, capped ends, and all other underground facilities. The Contractor shall record, by dimension and/or scale drawings, all wiring, conduits and pull boxes as actually installed. All information necessary to maintain and/or service any concealed work shall be noted on these record drawings.

In preparing as-built plans, the Contractor shall show dimensions from two permanent points, such as building corners, curbs, sidewalks, walls, etc. Changes to any of the following items shall be shown on the as-built plans as well as any other items or improvements, including but not limited to, previously unknown utilities discovered during the course of work, all items installed within the contractor’s scope of work (including work added by change order and/or field order) as deemed necessary by the Engineer:

Curbs, sidewalks or other fixed permanent improvements
Changes in elevations per grading plan

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Street light installations
Water meters
Sewer laterals
Connections to existing water sources
Routing of irrigation main, lateral lines and control wires Control valves
Quick couplers
Backflow prevention devices
Gate valves
Controllers
Such records shall be kept up to date with all entries checked by the Engineer before the work is buried or covered up.

One set of as-builts shall be maintained at the job site at all times. The other set shall be provided to the Engineer monthly, a minimum of 5 working days prior to the last working day for the month for review.

As-Builts record drawing will be reviewed when the Contractor submits periodic application for payment in order to verify the accuracy and timeliness of recording the actual construction conditions. If the Contractor’s “As Built” documentation is not submitted or is not satisfactory to the Engineer, this deficiency may be cause to delay approval of the periodic or final payment applications until the deficiencies are satisfactorily resolved.

Upon completion of the work (but prior to acceptance of the work), Contractor shall deliver to the Agency two sets of complete “As Built” record drawings.

If the Contractor fails to keep adequate As-Built Drawings and/or does not deliver the two sets upon completion of the work, the Engineer may take any and all measures necessary to create proper and acceptable As-Built drawings through any means the Engineer deems appropriate including hiring qualified third parties. All costs incurred by the Agency to develop and produce As-Built drawings shall be deducted from amounts due to the Contractor.

As-built plans for other agencies participating in the Project shall be provided in format and substance and at review intervals pursuant to their individual requirements. It shall be the responsibility of the Contractor to contact those agencies for their requirements.

See additional requirements within the Contract Documents (if any). 3-8.4.2 Payment. Payment for all costs associated with the keeping and processing of As-Builts, including As-builts for other agencies, shall be included in the various line items of work, and no additional compensation shall be made to Contractor.
3-9 SUBSURFACE DATA. The Agency does not represent that the referenced documents show or indicate all the conditions that will be encountered in performing the Work. The Agency represents only that the reports of explorations and tests show the conditions encountered at the particular locations and at the particular times they were obtained. The Bidders and other users of the data are cautioned that interpretations and conclusions contained in the documents were formulated for design purposes only and were based on work performed in such a way as to expressly provide information required for design.

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All soil and test hole data, ground water elevations, and soil analyses shown on the Plans or included in the Special Provisions apply only at the location of the test holes and to the depths indicated. Soil test reports, if any, are available for inspection at the office of the Engineer. Additional subsurface exploration may be performed by the Contractor at their expense and upon approval by the Agency.

The indicated groundwater elevation is that which existed on the date specified in the data. It is the Contractor’s responsibility to determine and allow for the groundwater elevation on the date(s) the Work is performed. The Contractor shall assume that there will be a difference in groundwater elevations between what is shown in soil boring logs and what is actually encountered during construction. Changes or differences in groundwater elevation will not be considered as a basis for Changed Conditions per section 2-9 or Extra Work per section 7-4.
3-10 SURVEYING
3-10.1 Survey Service
The Contractor shall hire and pay for the services of a Surveyor to perform all work necessary for establishing control, construction staking, records research and all other surveying work necessary to construct the work, provide surveying services as required herein, and provide surveying, drafting and other professional services required to satisfy the requirements of the Land Surveyors Act. 3-10.2 Submittal of Surveying Data
All surveying data submittals shall conform to the requirements herein. The Contractor shall submit two copies of grade sheets to the Engineer prior to commencing work in the area affected by the grade sheets.

The Contractor shall submit field notes for all surveying required herein to the Engineer within ten days of performing the survey when requested. All surveying field notes, grade sheets and survey calculations shall be submitted in bound form on 215 mm by 280 mm (81/2” by 11”) paper or electronic format. The field notes, calculations and supporting data shall be clear and complete. Supporting data shall include all maps, affidavits, plats, field notes from earlier surveys and all other evidence used by the Surveyor to determine the location of the monuments set. The field notes and calculations will be labeled with name of the Surveyor, the party chief, the field crewmembers and the author of the field notes or calculations.

They shall be annotated with the date of observation or calculation, be numbered with consecutive page numbers and shall be readable without resort to any electronic aid, computer program or documentation for any computer program. The field notes shall be prepared in conformance with the CALTRANS “Surveys Manual”. The Contractor through its Licensed Land Surveyor will, at its cost and in accordance with Business and Professions Code Section 8771, file a Corner Record or a Record of Survey referencing survey monuments subject to disturbance in the Office of the County Surveyor. The recording will take place twice i.e., prior to the start of construction and prior to the Completion. The corner records for tying out the survey monuments shall be delivered to the Engineer prior to the commencement of work.

If it is found that no monuments and/or benchmarks will be disturbed during the course of this contract then a letter from a Licensed Land Surveyor certifying to that condition prior to the start of work will be submitted to the Engineer.
3-10.3 Survey Requirements
Stakes shall be set at offsets approved by the Engineer at no greater intervals than specified in TABLE 3-

10.3(A) as measured along the project stationing. Stakes shall be set to show the location and grade of future curbs adjacent to traffic signal locations where the curb is not being built as a part of this contract.

Staking and marking shall be completed by the Surveyor before the start of construction in the area marked. Permanent monuments shall be set in kind to the monument replaced or as shown on plan and

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marked with the registration number of the Surveyor. Habitat mitigation sites and other areas to be preserved that are shown on the plans shall be staked and flagged prior to the start of any other activities within the limits of the work.

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TABLE 3.10.3(A)

MINIMUM SURVEY REQUIREMENTS FOR CONSTRUCTION STAKING
Feature Staked Stake
Description

Centerline or Parallel to
Centerline Spacing, 
Lateral Spacing
, 
Setting Tolerance
(Within)
Street
Centerline
Standard A
Monument
Riv. Co. Ord.
461 Section
21 ≤300m (1000’), Street
Intersections, Begin and end
of curves, only when shown
on the plans
On street
centerline
7 mm (0.02’) Horizontal,
also see section 2-9.2.1
herein
Clearing Lath in soil,
painted line
on PCC &
AC surfaces
lath - Intervisible, ≤ 15m
(50’) on tangents
& ≤ 7.5m (25’) on curves,
Painted line - continuous
at clearing line 0.3 m (1’) Horizontal
Slope RP + Marker
Stake
Intervisible and ≤ 15m (50’) Grade Breaks
& ≤7.6 m (25’)
30 mm (0.1’) Vertical &
Horizontal
Fence RP + Marker
Stake
≤ 60 m (200’) on tangents,
≤ 15m (50’) on curves when
R≥ 300m (1000’) & 7.5m
(25’) on curves when R≤
300m (1000’)
N/A
( constant
offset)
30 mm (0.1’) Horizontal
Rough Grade
Cuts or Fills ≥
10 m (33’)
RP + Marker
Stake
≤ 15m (50’) N/A 30 mm (0.1’) Vertical &
Horizontal
Final Grade
(includes top of:

Basement soil,
subbase and
base)
RP + Marker
Stake, Bluetop in grading
area
≤ 15 m (50’) on tangents &
curves when R≥ 300m
(1000’) & ≤ 7.5m (25’) on
curves when R ≤ 300m
(1000’)
≤6.7 m (22’) 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
Asphalt
Pavement Finish
Course
RP, paint on
previous
course
≤ 7.5m (25’) or as per the
intersection grid points
shown on the plan
whichever provides the
denser information
edge of
pavement,
paving pass
width, crown
line & grade
breaks
10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
Drainage
Structures, Pipes
& similar
Facilities, 
RP + Marker
Stake
Intervisible & ≤ 7.5m (25’),
beginning and end, BC & EC
of facilities, Grade breaks,
Alignment breaks, Junctions,
Inlets & similar facilities,
Risers & similar facilities
(except plumbing), Skewed
cut-off lines
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical

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Curb RP + Marker
Stake
≤ 7.5m (25’), BC & EC, at
¼∆, ½∆ & ¾∆ on curb
returns & at beginning &
end
( constant
offset)
10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
Traffic Signal  Vertical locations shall be
based on the ultimate
elevation of curb and
sidewalk
Signal Poles &
Controller 
RP + Marker
Stake
at each pole & controller
location
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
Junction Box  RP + Marker
Stake
at each junction box
location
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
Conduit  RP + Marker
Stake
≤ 15 m (50’) on tangents &
curves when R≥ 300m
(1000’) & ≤ 7.5m (25’) on
curves when R ≤ 300m
(1000’) or where grade ≤

0.30%
as appropriate 10 mm (3/8”) Horizontal
& when depth cannot be
measured from existing
pavement 7 mm (1/4”)
Vertical
Minor Structure

RP + Marker
Stake + Line
Stake
for catch basins: at
centerline of box, ends of
box & wings & at each end
of the local depression 
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
(when vertical data
needed)
Abutment Fill RP + Marker
Stake + Line
Stake
≤ 15 m (50’) & along end
slopes & conic transitions
as appropriate 30 mm (0.1’) Vertical &
Horizontal
Wall  RP + Marker
Stake + Line
Point +Guard
Stake
≤ 15 m (50’) and at
beginning & end of: each
wall, BC & EC, layout line
angle points, changes in
footing dimensions &/or
elevation & wall height
as appropriate 7 mm (1/4”) Horizontal &
7 mm (1/4”) Vertical
Major Structure

Footings, Bents,
Abutments &
Wingwalls
RP + Marker
Stake + Line
Point +Guard
Stake
3 m to 10 m (10’ to 33’) as
required by the Engineer,
BC & EC, transition points
& at beginning & end.

Elevation points on footings
at bottom of columns
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
Superstructures RP 3 m to 10 m (10’ to 33’)
sufficient to use string lines,
BC & EC, transition points
& at beginning & end.

Elevation points on footings
at bottom of columns
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical

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Miscellaneous 
Contour
Grading 
RP + Marker
Stake
≤ 15 m (50’) along contour
line
30 mm (0.1’) Vertical &
Horizontal
Utilities ,  RP + Marker
Stake
≤ 15 m (50’) on tangents &
curves when R≥ 300m
(1000’) & ≤ 7.5m (25’) on
curves when R ≤ 300m
(1000’) or where grade ≤

0.30%
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical
Channels, Dikes
& Ditches 
RP + Marker
Stake
intervisible & ≤ 30 m (100’),
BC & EC of facilities, Grade
breaks, Alignment breaks,
Junctions, Inlets & similar
facilities
as appropriate 30 mm (0.1’) Horizontal
& 7 mm (1/4”) Vertical
Signs  RP + Marker
Stake + Line
Point +Guard
Stake
At sign location Line point 30 mm (0.1’) Vertical &
Horizontal
Subsurface
Drains 
RP + Marker
Stake
intervisible & ≤ 15m (50’),
BC & EC of facilities, Grade
breaks, Alignment breaks,
Junctions, Inlets & similar
facilities, Risers & similar
facilities
as appropriate 30 mm (0.1’) Horizontal
& 7 mm (1/4”) Vertical
Overside Drains

RP + Marker
Stake
longitudinal location At beginning &
end
30 mm (0.1’) Horizontal
& 7 mm (1/4”) Vertical
Markers  RP + Marker
Stake
for asphalt street surfacing
≤ 15 m (50’) on tangents &
curves when R≥ 300m
(1000’) & ≤ 7.5m (25’) on
curves when R ≤ 300m
(1000’).

At marker
location(s)
7 mm (1/4”) Horizontal
Railings &
Barriers 
RP + Marker
Stake
At beginning & end and ≤
15 m (50’) on tangents &
curves when R ≥ 300m
(1000’) & ≤ 7.5m (25’) on
curves when R ≤ 300m
(1000’)
at railing &
barrier
location(s)
10 mm (3/8”) Horizontal
& Vertical
AC Dikes  RP + Marker
Stake
At beginning & end as appropriate 30 mm (0.1’) Horizontal & Vertical
Box Culverts 3 m to 10 m (10’ to 33’) as
required by the Engineer,
BC & EC, transition points
& at beginning & end.

Elevation points on footings
& at invert
as appropriate 10 mm (3/8”) Horizontal
& 7 mm (1/4”) Vertical

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Pavement
Markers
RP 60 m (200’) on tangents,
15m (50’) on curves when R
≥ 300m (1000’) & 7.5m
(25’) on curves when R ≤
300m (1000’) For PCC
surfaced streets lane cold
joints will suffice
at pavement
marker
location(s)
7 mm (1/4”) Horizontal
 Staking for feature may be omitted when adjacent marker stakes reference the offset and elevation of those features and the accuracy requirements of the RP meet the requirements for the feature  Reference points shall be sufficiently durable and set securely enough to survive with accuracy intact throughout the installation & inspection of the features or adjacent facilities for which they provide control. RP means reference point for the purposes of this table  Perpendicular to centerline.
 Some features are not necessarily parallel to centerline but are referenced thereto  Multi-plane surfaced features shall be staked so as to provide line & grade information for each plane of the feature
 ≥ means greater than, or equal to, the number following the symbol. ≤ means less than, or equal to, the number following the symbol.
 The cut datum for storm drainage & sanitary sewer pipes & similar structures shall be their invert. The cut datum for all other utilities shall be the top of their pipe or conduit.

TABLE 3-10.3(B)

SURVEY STAKE COLOR CODE FOR CONSTRUCTION STAKING
* Flagging and marking cards, if used.
3-10.4 Line and Grade
All work shall conform to the lines, elevations, and grades shown on the Plans.

Three consecutive points set on the same slope shall be used together so that any variation from a straight grade can be detected. Any such variation shall be reported to the Engineer. In the absence of such report, Type of Stake Description Color*
Horizontal
Control
Coordinated control points, control lines, control reference points, centerline, alignments, etc.

White/Red
Vertical Control Bench marks White/Orange
Clearing Limits of clearing Yellow/Black
Grading Slope, intermediate slope, abutment fill, rough grade, contour grading, final grade, etc.

Yellow
Structure Bridges, sound and retaining walls, box culverts, etc. White Drainage, Sewer,
Curb
Pipe culverts, junction boxes, drop inlets, headwalls, sewer lines, storm drains, slope protection, curbs, gutters, etc.

Blue
Right-of-Way Fences, R/ W lines, easements, property monuments, etc. White/Yellow Miscellaneous Signs, railings, barriers, lighting, etc. Orange

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the Contractor shall be responsible for any error in the grade of the Work. Grades for underground conduits will be set at the surface of the ground. The Contractor shall transfer them to the bottom of the trench Finished surfaces in all cases shall conform to the lines, grades, cross-sections and dimensions shown on the approved Bid and Contract Documents. Deviations from the approved documents and working drawings shall in all cases be determined and authorized in writing by the City. 3-10.5 Payment for Survey
Payment for work performed to satisfy the requirements of Sections 3-10.1 through 3-10.2 shall be included in the actual bid items requiring the survey work unless a specific bid item for survey has been provided and no additional payment shall be made therefore. Extension of unit prices for extra work shall include full compensation for attendant survey work and no additional payment will be made therefore.

Payment for the replacement of disturbed monuments and the filing of records of survey and/or corner records, including filing fees, shall be incidental to the work necessitating the disturbance of said monuments and no additional payment will be made therefore. 3-11 ADVERTISING. The names, addresses and specialties of Contractors, Subcontractors, architects, or engineers may be displayed on removable signs. The size and location shall be subject to the Engineer’s approval.

Commercial advertising matter shall not be attached to or painted on the surfaces of buildings, fences, canopies, or barricades. Any advertisement referring to the Agency as a user of a product, material, or service by Contractor or any Subcontractor and Supplier is expressly prohibited without the Agency’s prior written approval.
3-12 WORK SITE MAINTENANCE
3-12.1 General. Throughout all phases of construction, including suspension of the Work, and until acceptance of the Project by the Engineer the Contractor shall keep the Work site clean and free from rubbish and debris. Rubbish and debris collected on the Work site shall only be stored in roll-off, enclosed containers prior to disposal. Stockpiles of such will not be allowed.

When required by the Special Provisions, the Contractor shall provide a self-loading motorized street sweeper equipped with a functional water spray system. The sweeper shall clean all paved areas within and adjacent to the work site and all paved haul routes at least once each working day.

The Contractor shall ensure there is no spillage along haul routes. Any such spillage shall be removed immediately and the area cleaned. The Contractor’s haul routes shall also be kept free from dirt, rubbish, and unnecessary obstruction resulting from the Contractor’s operations.

Disposal of all rubbish and surplus materials shall be off the Project Site, at the Contractor’s own expense, and in accordance with all federal, state and local codes, regulations and ordinances governing locations and methods of disposal.

Should the Contractor fail to keep the Work site free from rubbish and debris, the Engineer may suspend the Work until the condition is corrected, or cause the work to be done by others and deduct all costs for such work from amounts due to the Contractor. No additional compensation or time will be allowed as a result of such suspension.