Agenda packet — San Rafael City Council, May 18, 2026 (part 1 of 2)

AGENDA

SAN RAFAEL CITY COUNCIL - MONDAY, MAY 18, 2026
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Webinar: https://tinyurl.com/city-council-2
Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 860-6190-5675#
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

How to participate in the meeting:
• You are welcome to come to the meeting and provide public comment in person. Each speaker will have 2-minutes to provide public comment per agenda item. • Submit your comments by email to [email protected] by 4:00 p.m. the day of the meeting.

If you experience technical difficulties during the meeting, please contact [email protected].

OPEN TIME FOR PUBLIC EXPRESSION – 10 MINUTES
Members of the public may speak to the City Council on items that are not on the agenda and are within the Council’s jurisdiction. Open Time for Public Expression happens twice during the meeting. At the beginning of the meeting, public comment is limited to a total of 10 minutes, with each speaker allowed up to 2 minutes. Open Time for Public Expression will be held again at the end of the meeting with no total time limit. Please note that, under state law, the City Council cannot discuss or take action on items that are not on the agenda.

CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

1. City Manager and Councilmember Reports:

CONSENT CALENDAR:

2. Consent Calendar Items:
a. Approval of Minutes
Approve Minutes of the Special Closed Session and Regular City Council Meetings of May 4, 2026 (CC)
Recommended Action - Approve Minutes as submitted
b. 770 Lindaro Street / 999 3rd Street (BioMarin San Rafael Campus) Final Adoption of Ordinance 2063: An Ordinance Adopting the First Amendment to the Development Agreement (DA26-001) Between the City and California Corporate Center Acquisition, LLC (Ordinance No. 1982) to Remove Requirements for Park and Conference 2 Room Access and Auxiliary Parking for General Public (APN 013-021-34, 35, 50, 51, 52, 53, 54 & 55) (CC)
Recommended Action – Final Adoption of Ordinance No. 2063 c. Organizational Conflict of Interest Policy for Design-Build Projects Resolution Establishing Organizational Conflict of Interest Policy for Design-Build Projects (CM)
Recommended Action – Adopt Resolution
d. 350 Merrydale Road Interim Shelter Design Services
Resolution Authorizing the City Manager to Execute an Amendment to a Professional Services Agreement with LCA Architects to Provide Design Services in the Amount Not to Exceed $71,236 for a Total Contract Amount of $351,986, and Authorizing a Supplemental Fiscal Year 2025-26 Budget Appropriation in the Amount of $71,236 Provided Through the Encampment Resolution Fund Round 3 Grant (Fund 283) (CM) Recommended Action – Adopt Resolution
e. Below Market Rate Rental Housing and Homeownership Program Administration Resolution Authorizing the City Manager to Enter into a Professional Services Agreement with Marin Housing Authority for Administration of the Below Market Rate Rental Housing and Homeownership Programs for Three Years in an Amount Not to Exceed $125,000 Per Year (CED)
Recommended Action – Adopt Resolution
f. City Quarterly Investment Report
Acceptance of City of San Rafael Quarterly Investment Report for the Quarter Ending March 31, 2026 (Fin)
Recommended Action – Accept report
g. San Rafael Canal Crossing Project
Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Mark Thomas & Company, Inc. to Provide Preliminary Design and Environmental Services for Canal Crossing Project in the Amount Not to Exceed $1,875,000, Which Includes $181,500 in Contingency Funds, and Authorizing a Supplemental Budget Appropriation in the Amount of $300,000 from the City Gas Tax Fund (206) (PW) Recommended Action – Adopt Resolution
h. Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project
Resolution Approving the Plans and Specifications for the Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project, City Project No. C441145610 (“Project”); Awarding and Authorizing the City Manager to Execute the Construction Agreement with Corcus Construction, Inc in the Amount of $363,850, and Authorizing the City Manager to Amend the Contract Amount Using Contingency Funds of $36,150 for a Total Not-To-Exceed Amount of $400,000 (PW) Recommended Action – Adopt Resolution
3 i. Marin Emergency Radio Authority
Resolution Authorizing the City Manager to Execute a Second Amendment to the Communications Site License Agreement with the Marin Emergency Radio Authority (MERA) (PW)
Recommended Action – Adopt Resolution
j. National Public Works Week Proclamation
Proclamation in Celebration of National Public Works Week, May 17-23, 2026 (PW) Recommended Action – Receive and file

PUBLIC HEARINGS

3. Public Hearings:
a. Military Equipment Annual Report and Renewal of Military Equipment Funding, Acquisition and Use Policy
Resolution Renewing the Ordinance Approving San Rafael Police Department Military Equipment Funding, Acquisition and Use Policy (Policy 706) (PD) Recommended Action – Adopt Resolution
b. Update to Park Impact Fee Programs and Nexus Study
i. Introduction of an Ordinance Amending Chapter 3.24, Entitled “Park and Recreation Facilities Fee,” and Chapter 15.09, Entitled “Park Dedication and In-Lieu Fees,” of the San Rafael Municipal Code; CEQA Determination: Exempt Pursuant to Public Resources Code Section 21065 and CEQA Guidelines Sections 15378, 15262, 15273, and 15061(b)(3)
Recommended Action – Introduce the Ordinance, waive further reading, and refer to it by title only
ii. Resolution Adopting the Park Nexus Study and Associated Park and Recreation Facilities Project List, Adopting Updated Charges for the Park and Recreation Facilities Fee, and Adopting Updated Park Dedication Requirements and Park Dedication and In-Lieu Fees; CEQA Determination: Not a Project Pursuant to Public Resources Code Section 21065; CEQA Guidelines Section 15378 and Exempt Pursuant to CEQA Guidelines Sections 15262, 15273, and 15061 (b)(3) (CED) Recommended Action – Adopt Resolution

OTHER AGENDA ITEMS

4. Other Agenda Items:
a. San Rafael Sanitation District Separation Agreement
Resolution Authorizing the Mayor to Execute a Separation Agreement Between the City of San Rafael and the San Rafael Sanitation District; CEQA Determination: Exempt Pursuant to CEQA Guidelines Sections 15061(B)(3) and 15378 (CM) Recommended Action – Adopt Resolution
b. Preliminary Citywide Proposed Budget for Fiscal Year 2026-27 Preliminary Citywide Proposed Budget and Proposed Capital Improvement Program for Fiscal Year 2026-27 (Fin)
Recommended Action – Receive report and provide direction to staff to inform preparation of the Final Proposed FY 2026-27 Budget for adoption at the City Council meeting of June 15, 2026
4 OPEN TIME FOR PUBLIC EXPRESSION CONTINUED
Members of the public may speak to the City Council on items that are not on the agenda and are within the Council’s jurisdiction. Please note that, under state law, the City Council generally cannot discuss or take action on items that are not on the agenda, unless there is an emergency or an urgent issue that came up after the agenda was posted. Each speaker may speak for up to two minutes. Comments should be respectful to the community.

ADJOURNMENT:

Any records relating to an agenda item, received by a majority or more of the Council less than 72 hours before the meeting, shall be available for inspection online and at City Hall, 1400 Fifth Avenue, and placed with other agendarelated materials on the table in front of the Council Chamber prior to the meeting. Sign Language interpreters may be requested by calling (415) 485-3066 (voice), emailing [email protected] or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. To request Spanish language interpretation, please submit an online form at https://www.cityofsanrafael.org/request-for-interpretation/.

Minutes subject to approval at the May 18, 2026 meeting

MINUTES

SAN RAFAEL CITY COUNCIL SPECIAL CLOSED SESSION
MONDAY, MAY 4, 2026 AT 5:30 P.M.

Third Floor Conference Room
1400 Fifth Avenue, San Rafael, CA 94901

Present: Councilmember Hill
Vice Mayor Kertz
Councilmember Llorens Gulati
Mayor Kate

Absent: Councilmember Bushey
Also Present: City Attorney Robert Epstein
Mayor Kate called the meeting to order at 5:30 p.m.

OPEN SESSION – THIRD FLOOR CONFERENCE ROOM
The Mayor will announce Closed Session items and invite public comment on agenda items. Each speaker will have two minutes to provide comments before the City Council convenes in Closed Session.

1. Mayor Kate announced Closed Session items.

Mayor Kate invited public comment; however, there were none.

CLOSED SESSION – THIRD FLOOR CONFERENCE ROOM

2. Closed Session:
a. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION, pursuant to Government Code Section 54956.9(d)(1)
Pimentel v. City of San Rafael et al. Marin County Superior Court Case No.

CV 0007787
ADJOURNMENT:

Mayor Kate adjourned the meeting at 5:48 p.m.
__________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2026
_____________________________________
KATE COLIN, Mayor

Minutes subject to approval at the May 18, 2026 meeting

MINUTES

SAN RAFAEL CITY COUNCIL - MONDAY, MAY 4, 2026
REGULAR MEETING AT 6:00 P.M.

San Rafael City Hall, Council Chambers
1400 Fifth Avenue, San Rafael, CA 94901
Watch Online:

Watch on Webinar: https://tinyurl.com/city-council-1
Watch on YouTube: www.youtube.com/cityofsanrafael
Listen by phone: (669) 444-9171
ID: 863-4489-1398#
This meeting will be held in-person. This meeting is being streamed to YouTube at www.youtube.com/cityofsanrafael.

If you experience technical difficulties during the meeting, please contact [email protected].

Present: Councilmember Hill
Vice Mayor Kertz
Councilmember Llorens Gulati
Mayor Kate

Absent: Councilmember Bushey
Also Present: Interim City Manager Paul Navazio
City Attorney Robert Epstein
City Clerk Lindsay Lara
Mayor Kate called the meeting to order at 6:01 p.m. and invited City Clerk Lindsay Lara to call the roll.

City Attorney Robert Epstein announced that no reportable action was taken in Closed Session.

Mayor Kate provided opening remarks which included gratitude to City Staff, tonight’s Proclamations on the Agenda, and a land acknowledgment.

City Clerk Lindsay Lara informed the community that the in-person meeting would also be recorded and streamed live to YouTube and through Zoom. She noted the two-minute timer for public comment and closed captioning on Zoom.

OPEN TIME FOR PUBLIC EXPRESSION – 10 MINUTES
• Ivan Glover addressed the City Council regarding a recent article in the Marin IJ regarding planning procedures.
• Al Vetere addressed the City Council regarding RIPA (Racial and Identity Profiling Act) and a recent experience he had walking around San Rafael.
2 CITY MANAGER AND COUNCILMEMBER REPORTS:
(including AB 1234 Reports on Meetings and Conferences Attended at City Expense)

1. City Manager and Councilmember Reports:

City Manager and Councilmember Reports:

Interim City Manager Paul Navazio provided the following announcements and updates:
• Police Chief Spiller and members of his Command Team to be in Washington DC next week to participate in a ceremony honoring a fallen San Rafael Township Night Watchman and Constable, Dennis Haley, who was killed in the line of duty in 1884. • May is National Water Safety Month – Free Water Safety Day at the Terra Linda Community Pool to be held Sunday, May 17, 1-4 p.m.

City Councilmember Reports:
• Vice Mayor Kertz reported on a Marin Wildfire Forum where the CWPP (Community Wildfire Prevention Plan) was reviewed and a Quail Hill Homeowners Association meeting. She expressed gratitude to the Library and Recreation Department, the Goldenaires and Age-Friendly San Rafael for their celebration for our 85 (and plus) community members. Also, she attended the Marin Community History Day at Boyd House.
• Councilmember Llorens Gulati reported on Earth Day and the Climate Week Forum and Open House, the Buckelew Rising Recovery Center Open House, a Marin Transit Board meeting, and a Marin Clean Energy Executive Committee meeting. • Councilmember Hill reported on the Buckelew Opening, an Economic Development & Housing Subcommittee meeting, a youth Townhall at the Marin Civic Center Board of Supervisors Chamber, and a Ritter Center Under the Stars event where Vice Mayor Kertz was awarded as the 2026 Community Impact Honoree. • Mayor Kate reported on Earth Day, a Federation of Neighborhoods and Point San Pedro Coalition listening session, Mayor Kate’s walkabouts, a Transportation Authority of Marin (TAM) meeting, and the Gun Safety Collaborative.

Mayor Kate invited public comment.

Speaker: Craig Murray
CONSENT CALENDAR:

Mayor Kate invited public comment.

Speakers: Sue Burrell, Laura Ackley and Amesha Wood (all of San Rafael Heritage), David Fonkalsrud, Fire Commission, Kyri McClellan, San Rafael Fire Foundation Mayor Kate provided comments regarding the Fire Foundation proclamation.

Vice Mayor Kertz moved and Councilmember Llorens Gulati seconded to approve the Consent Calendar.

AYES: Councilmembers: Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey

2. Consent Calendar Items:
3 a. Approval of Minutes
Approve Minutes of the Special Closed Session and Regular City Council Meetings of April 20, 2026 (CC)
Approved Minutes as submitted
b. Public Service Award 2026
Resolution of Appreciation to Recipient of the Richard P. O’Brien and Mary Ferrario O’Brien Public Service Award for 2026 (CC)
Adopted Resolution 15541
c. Solid Waste Collection Code Amendments Ordinance
Final Adoption of Ordinance 2062: An Ordinance Amending Chapter 9.19, Entitled “Solid Waste Collection and Disposal and Edible Food Recovery,” Chapter 11.04, Entitled “Encroachments in the Public Right-Of-Way,” and Chapter 12.260, Entitled “International Property Maintenance Code Amendments” of the San Rafael Municipal Code (CC) Final Adoption of Ordinance No. 2062
d. Citywide Records Management Program
Resolution Adopting a Records Management Program Policy; and Resolution Declaring Laserfiche as a Trusted System for the Management of Records and the Automation of Retention Requirements (CC)
Adopted Resolutions 15542 & 15543
e. Statement of Economic Interests Annual Filings
Accept a Report on Fair Political Practices Commission Form 700, Statement of Economic Interests, 2025 Annual Filings for Designated Employees and Consultants (CC) Accepted report
f. Workers’ Compensation Claims Management Services
Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Intercare Holdings Insurance Services, Inc. for Workers’ Compensation Third-Party Claims Administration Services in an Amount Not to Exceed $1,418,757 and Authorizing the City Manager to Execute All Necessary and Incidental Documents (HR) Adopted Resolution 15544
g. Management of Freitas Park Tennis Courts
Resolution Authorizing the City Manager to Enter into an Amended and Restated Joint Powers Agreement with Miller Creek School District for the Joint Use of School Facilities for Community Recreation Purposes (LR)
Adopted Resolution 15545
h. Lincoln Avenue from Second Street to Paloma Avenue Safety Improvements Project Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Parametrix, Inc. to Provide Design and Environmental Services for the Lincoln Avenue from Second Street to Paloma Avenue Safety Improvements Project in the Amount Not to Exceed $792,720 and Authorizing a Supplemental Budget Appropriation in the Amount of $567,720 from the City Gas Tax Fund (206) (PW)
Adopted Resolution 15546
4 i. Proclamations
Proclamations in Recognition of:
i. Small Business Week
ii. National Police Week
iii. Jewish American Heritage Month
iv. Public Service Recognition Week
v. Celebrate Older Americans Month
vi. San Rafael Fire Foundation
vii. Asian American, Native Hawai’ian, and Pacific Islander Heritage Month viii. Wildfire Preparedness Week
Received and filed
j. San Rafael Heritage Preservation Award for The Carnegie Library Receive and File San Rafael Heritage’s Preservation Award for The Carnegie Library (LR) Received and Filed
SPECIAL PRESENTATIONS:

3. Special Presentations:

Mayor Kate invited public comment; however, there was none. a. Presentation of Proclamation in Recognition of Mental Health Awareness Month in Marin County (CM)
Mayor Kate presented the proclamation to Rick Hess, National Alliance on Mental Illness, who provided comments.
b. Presentation of Resolution of Appreciation to Public Service Award Recipient (CC) Mayor Kate presented the proclamation to Karla Valdez, the 2026 Recipient of the Public Service Award, who provided comments.

Mayor Kate called a recess at 6:49pm, and called the meeting back to order at 7:00 p.m.

PUBLIC HEARINGS

4. Public Hearings:
a. 770 Lindaro Street / 999 3rd Street (BioMarin San Rafael Campus) Introduction of an Ordinance Adopting the First Amendment to the Development Agreement (DA26-001) Between the City and California Corporate Center Acquisition, LLC (Ordinance No. 1982) to Remove Requirements for Park and Conference Room Access and Auxiliary Parking for General Public (APN 013-021-34, 35, 50, 51, 52, 53, 54 & 55): CEQA Determination: Exempt Pursuant to 15061(b)(3) (CED) Director of Community and Economic Development Micah Hinkle introduced Consultant Planner Sean Kennings who presented the Staff Report.

Staff responded to questions from the City Council.

Mayor Kate invited public comment.

Speaker: Richard Falk
5 Councilmembers provided comments.

Vice Mayor Kertz moved and Councilmember Llorens Gulati seconded to introduce the Ordinance, waive further reading, and refer to it by title only.

AYES: Councilmembers: Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey
Introduced the Ordinance, waived further reading, and referred to it by title only The City Clerk read the title of the ordinance:

An Ordinance Adopting the First Amendment to the Development Agreement (DA26- 001) Between the City and California Corporate Center Acquisition, LLC (Ordinance No. 1982) to Remove Requirements for Park and Conference Room Access and Auxiliary Parking for General Public (APN 013-021-34, 35, 50, 51, 52, 53, 54 & 55) b. Community Development Block Grant (CDBG)
Resolution Recommending Community Development Block Grant (CDBG) Project Funding for the Fiscal Year 2026-2027 to the Marin County Board of Supervisors (CED) Councilmember Llorens Gulati recused herself from the Agenda Item due to a conflict of interest under the Political Reform Act, with her employment with Marin Center for Independent Living and left the Council Chambers at 7:19 p.m.

Housing Manager Alexis Captanian presented the Staff Report.

Staff (including Chris Miranda, Marin County Housing and Grants Division), responded to questions from the City Council.

Mayor Kate invited public comment; however, there were none.

Councilmembers provided comments.

Vice Mayor Kertz moved and Councilmember Hill seconded to adopt the Resolution recommending Community Development Block Grant (CDBG) Project Funding for the Fiscal Year 2026-2027 to the Marin County Board of Supervisors.

AYES: Councilmembers: Hill, Kertz & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey & Llorens Gulati
Adopted Resolution 15547
Councilmember Llorens Gulati returned to the Council Chambers at 7:34 p.m. c. Reporting on Vacant Positions
Compliance with Assembly Bill 2561 (2023-2024): Reporting on Vacancy Rates and Actions Taken to Address Vacancies in City Departments (HR) Human Resources Director Marissa Sanchez presented the Staff Report. 6 Mayor Kate invited public comment; however, there were none.

Councilmembers provided comments.

Vice Mayor Kertz moved and Councilmember Llorens Gulati seconded to receive the Staff Report providing an update on the City of San Rafael’s vacancy rates in compliance with Assembly Bill (AB) 2561.

AYES: Councilmembers: Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey
Received report

OTHER AGENDA ITEMS

5. Other Agenda Items:
a. Marinwood Community Services District and San Rafael Fire Departments Discuss Current Challenges and Future Opportunities for the Provision of Fire and Emergency Medical Services Through Amendments to the Current Shared Services Agreement, Transitioning to Future Contract for Services and Long-Term Comprehensive Regional Service Delivery Model; Authorize the City Manager or Designee to Negotiate Future Opportunities to Discuss (CM/FD) Interim City Manager Paul Navazio and Fire Chief Abraham Roman commented on the Item and introduced Battalion Chief Kyle Hamilton, Battalion Chief Jason Hatfield and Senior Management Analyst Thomas Wong who presented the Staff Report.

Staff (including Eric Dreikosen, Marinwood Community Services District) responded to questions from the City Council.

Mayor Kate invited public comment.

Speakers: David Fonkalsrud, Fire Commission, Name Withheld Councilmembers provided comments.

Vice Mayor Kertz moved and Councilmember Hill seconded to provide feedback and policy direction regarding a proposed operational and fiscal framework; and direct staff to continue negotiations with Marinwood CSD and return, as a first step, with a finalized Amended Service Agreement for Council consideration, and continued collaboration on the long-term goal of transitioning to a regional service delivery model.

AYES: Councilmembers: Hill, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey
Provided feedback and policy direction regarding a proposed operational and fiscal framework and directed staff to continue negotiations with Marinwood CSD and return, as a first step, with a finalized Amended Service Agreement for Council consideration, and continued collaboration on the long-term goal of transitioning to a regional service delivery model 7 OPEN TIME FOR PUBLIC EXPRESSION CONTINUED
• Richard Falk addressed the City Council regarding density bonus plan high-rise projects.

ADJOURNMENT:

Mayor Kate adjourned the meeting at 8:57 p.m. in memory of Marin County Superior Court Judge Faye D’Opal.
__________________________
LINDSAY LARA, City Clerk
APPROVED THIS _____DAY OF____________, 2026
_____________________________________
KATE COLIN, Mayor
4902-1445-3150 v1 1
ORDINANCE NO. 2063

AN ORDINANCE OF THE CITY OF SAN RAFAEL ADOPTING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT (DA26-001) BETWEEN THE CITY AND CALIFORNIA CORPORATE CENTER ACQUISITION, LLC (ORDINANCE NO. 1982) TO

REMOVE REQUIREMENTS FOR PARK AND CONFERENCE ROOM ACCESS AND AUXILIARY PARKING FOR THE GENERAL PUBLIC (APN 013-021-34, 35, 50, 51, 52, 53, 54 & 55)
WHEREAS, in February 1998, the San Rafael City Council adopted a Planned Development Zoning District (PD-1721) approving a Master Plan for the development of a 406,000 square foot office park on a 15.54-acre site located south of Second Street in Downtown San Rafael. Concurrent with this action, the City Council adopted Ordinance No. 1722 approving a Development Agreement with Fair, Isaac and Company, Inc. (the “Fair Issac DA”), the initial project developer, who was planning to be the single tenant for the office park. The Fair Issac DA included specific terms, conditions and requirements agreed to by both the City and Fair Isaac for a 10-year build-out of the “San Rafael Corporate Center” office park; and WHEREAS, in August 2000, the City Council adopted Ordinance No. 1755, approving the first amendment to the Fair Issac DA to approve changes in the property ownership (Equity Office) and to the development standards in order to accommodate multi-tenant use of the San Rafael Corporate Center. Since 2000, the office park ownership has changed and subsequent amendments to the Fair Issac DA were adopted to reflect the ownership changes; and WHEREAS, in December 2011, the City Council adopted Ordinance No. 1902, approving a second amendment to the Fair Issac DA for the San Rafael Corporate Center to expand the allowable land uses to include medical office and research and development; and WHEREAS, on October 10, 2018, BioMarin Pharmaceutical (BioMarin), in conjunction with Whistlestop/Eden Housing, submitted project applications to the City of San Rafael Community Development Department for a General Plan Amendment (GPA18-001), Zoning Text Amendment (ZO18-003), Planned Development (PD) Amendment (ZC18-002), Master Use Permit (UP18-034), Environmental and Design Review Permit (ED18-087), Development Agreement (DA19-001), Small Subdivision (S18-001), and Sign Program Amendment (SP18-18- 006) for the development of two 72-foot tall, four-story laboratory/research and development buildings, totaling 207,000 sq. ft., and a 67-unit, 70-foot tall, six-story senior center and affordable senior housing building on a 133,099 sq. ft. parcel at 999 3rd Street (the “Project”); and WHEREAS, the Development Agreement was requested by BioMarin to establish a 10- year time frame for the approvals and to freeze the development application and impact fees for a period of 10 years for the BioMarin component of the Project; and BioMarin has offered the City a series of public benefits as consideration for the Development Agreement; and WHEREAS, on January 28, 2020, the Planning Commission adopted Resolution No. 20- 06, recommending to the City Council approval of the proposed Development Agreement, with one modification, to not eliminate a condition of approval, previously imposed on the 755 Lindaro/Lincoln Garage expansion, requiring the creation of a pedestrian connection to SMART on the backside of the Lincoln Avenue garage, along the west side of Mahon Creek; and WHEREAS, the City of San Rafael and California Corporate Center Acquisition, LLC (CCCA) entered into a Development Agreement (BioMarin San Rafael Campus) dated effective as of April 23, 2020 (Ordinance 1982) (the “Agreement”) that permits the phased development and expansion of the 4902-1445-3150 v1 2
San Rafael Corporate Center (SRCC) located at 770 Lindaro Street and the 999 3rd Street property with laboratory/research and development buildings, vesting these approvals for 10 years; and WHEREAS, the procedures and requirements for reviewing and approving Development Agreements are prescribed by City Council Resolution No. 6089; and WHEREAS, on August 27, 2025, planning applications were filed by the California Corporate Center Acquisition, LLC, property owner, requesting an amendment to the Development Agreement for the BioMarin San Rafael Campus located at the intersection of Second Street and Lincoln Avenue to remove the requirements for public access to the Mahon Creek Park and conference rooms on the property and the requirement to provide temporary public parking and ancillary uses at the 999 3rd Street property; and WHEREAS, the City of San Rafael determined that the application was exempt from the further California Environmental Quality Act (CEQA) based on CEQA Guidelines Section 15061(b) (General Rule); and
WHEREAS, on April 14, 2026, the Planning Commission held a duly noticed public hearing to review and consider the proposed amendment to the Agreement and considered all oral and written public testimony and the written report of the Community Development Department; and
WHEREAS, the custodian of documents which constitute the record of proceedings upon which this decision is based, is the Community Development Department; and WHEREAS, the City Council makes the following findings, pursuant to City Council Resolution No. 6089, for approval of the Development Agreement and incorporated herein by reference:

Development Agreement Findings (DA26-001)

1. The First Amendment to the Agreement would be consistent with the objectives, policies, general land uses and programs specified in the General Plan 2040 in that the Agreement is consistent with the Downtown Mixed Use land use designation which includes the highest development intensities in the city, and contains a mix of housing, office, retail, service, and public land uses. The First Amendment to the Agreement is also consistent with the Downtown Precise Plan zoning district T5N 50/70 and Planned Development (PD1721) which allows the existing uses for the project involving no intensification of use.

2. The Agreement would be compatible with the uses authorized in the regulations prescribed for the T5N 50/70 zoning district and Planned Development (PD-1721) which allows Research and Development and Laboratory uses, and the First Amendment would not change or intensify the existing use, in that:

3. The First Amendment to the Agreement would be in conformity with the public convenience, general welfare and good land use practice in that it allows for the continued use of the BioMarin campus with minor modifications that will not affect the primary use of the property, including: a privately-owned public plaza (approximately 6,000 sq. ft.), pedestrian crossing safety improvements at adjacent intersections, and donation of funds for development of bike lanes. These public benefits would be consistent with other public benefit requirements for height bonuses for developments in the downtown area. 4902-1445-3150 v1 3

4. The First Amendment to the Agreement would not be detrimental to the health, safety and general welfare in that the project is exempt from the provisions of the California Environmental Quality Act (CEQA), as referenced herein, and the project would meet all applicable City development standards.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS:

DIVISION 1. Findings.

The City Council hereby determines and finds that all of the facts and statements contained in the recitals herein, and the findings of Planning Commission Resolution No. 26-03, adopted April 14, 2026, recommending to the City Council adoption of this Ordinance, are true and correct.

DIVISION 2. CEQA Determination.

The Council hereby finds that the First Amendment is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule), which provides that CEQA applies only to projects that have the potential for causing a significant effect on the environment.

The proposed Amendment involves removal of public access and parking requirements within an existing Development Agreement for a previously-approved and environmentally-reviewed project.

DIVISION 3. Approval of First Amendment to the Development Agreement.

The City Council hereby approves the First Amendment to the Development Agreement, between California Corporate Center Acquisition, LLC, and the City of San Rafael concerning the San Rafael Corporate Center project planned for the subject property at 999 3rd Street and the San Rafael Corporate Center Campus, a copy of which is attached hereto as Exhibit A and incorporated herein by reference and the Council authorizes the Mayor and the City Clerk to execute the First Amendment to the Development Agreement on behalf of the City and to take any other actions necessary to complete this transaction.

DIVISION 4. Publication; Effective Date.

This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published, and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California.

THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the day 4th day of May 2026, and was passed and adopted at a regular meeting of the San Rafael City Council on the 18th day of May 2026 by the following vote, to wit:
4902-1445-3150 v1 4
AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_______________
KATE COLIN, Mayor
Attest:
______________________
LINDSAY LARA, City Clerk
4913-7786-6140 v1 1

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94901
Attention: City Clerk
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The document is exempt from recording fees per Government Code § 27383 and Building Homes & Jobs Trust Fund Fee
per Government Code § 27388.1(a)(2)(D).

FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
BioMarin San Rafael Campus
This First Amendment to the Development Agreement ("First Amendment") is entered into as of _________, 2026 (the “First Amendment Effective Date”), by and between the City of San Rafael, a California charter city ("City"), and California Corporate Center Acquisition, LLC, a Delaware limited liability company (“CCCA” or "Developer"). City and Developer may each be referred to as a “Party,” and collectively as the “Parties.”

R E C I T A L S
Developer and City enter into this Agreement on the basis of the following facts, understandings and intentions, and the following recitals are a substantive part of this Agreement:

A. City and Developer entered into that certain Development Agreement (BioMarin San Rafael Campus) dated effective as of April 23, 2020 (the “Agreement”) concerning the development of nine parcels of land comprising approximately 18.59 acres in the Downtown area of the City commonly known as the San Rafael Corporate Center located at 781-791 Lincoln Avenue and 999 3rd Street, San Rafael, Assessor Parcel Numbers 013-021-34, 35, 50, 51, 52, 53, 54 & 55, defined in the Agreement as the “Property” and shown on Exhibit A attached hereto.

B. The Parties agree to modify the Development Agreement pursuant to Government Code Sections 65867 and 65868, San Rafael Municipal Code Section 14.16.100, and City Council Resolution No. 6089 adopted on April 20, 1981, in order to remove terms related to public access to the Park Area and the Conference Facility, and the City’s use of the Temporary Public Parking Parcel.

C. On April 14, 2026, the Planning Commission, after duly noticed public hearing, recommended approval of this First Amendment. On ___________, 2026 after duly noticed public hearing, the City Council introduced its Ordinance _________ approving this First Amendment and authorizing its execution and adopted that Ordinance __________ on _________2026.

Ordinance ____________ became effective on ____________, 2026. 4913-7786-6140 v1 2

A G R E E M E N T
NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promises, obligations and covenants contained herein, Parties hereby agree as follows:

1. Defined Terms. Capitalized terms used herein and not otherwise defined, shall have the meaning set forth in the Agreement.

2. Amendment of Agreement. The Agreement is hereby amended to remove Sections

4.9, 5.2, and 5.3 in their entirety.

3. Interpretation. This First Amendment shall be interpreted to give each of the provisions their plain and fair meaning. The section headings used herein are solely for convenience and shall not be used to interpret this Agreement. The Parties acknowledge that this First Amendment is the product of negotiation and compromise on the part of both Parties, and the Parties agree, that since all have participated in the negotiation and drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its plain and fair meaning as a whole, as if all Parties had prepared it.

4. Integration. This First Amendment, together with the Agreement, constitutes the entire understanding and agreement between the Parties with respect to the subject matter contained herein.

5. Inconsistencies. In the case of any conflict or inconsistency between the provisions hereof and the terms of the Agreement, the provisions of this First Amendment shall control.

6. Status of Agreement. Except as modified by this First Amendment, the terms and provisions of the Agreement shall remain in full force and effect.

6. Counterparts. This First Amendment may be signed in counterparts by the Parties hereto and shall be the binding agreement of the Parties upon execution by each of them of one or more copies hereof.

8. Recording. Concurrent with the execution of this First Amendment, the Parties shall cause this First Amendment to be recorded in the official records of Marin County.

9. Authority. Each of the persons signing this First Amendment hereby represents and warrants that he or she is fully authorized to sign this First Amendment on behalf of the Party for which they are signing.
4913-7786-6140 v1 3
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the First Amendment Effective Date.

CITY
CITY OF SAN RAFAEL, a California Charter City
By:

Name:

Title: City Manager
Approved as to form:

By:

Name: _________________________________
Title: City Attorney
Attest:

By:

Name: _________________________________
Title: City Clerk

DEVELOPER

CALIFORNIA CORPORATE CENTER

ACQUISITION, LLC,
a Delaware limited liability company
By:

Name:

Title:

Acknowledgment

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

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

WITNESS my hand and official seal.

Signature (Seal)
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

Acknowledgment

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

WITNESS my hand and official seal.

SUMMARY OF ORDINANCE NO. 2063

AN ORDINANCE OF THE CITY OF SAN RAFAEL ADOPTING THE FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT (DA26-001) BETWEEN THE

CITY AND CALIFORNIA CORPORATE CENTER ACQUISITION, LLC (ORDINANCE NO. 1982) TO REMOVE REQUIREMENTS FOR PARK AND CONFERENCE ROOM ACCESS AND AUXILIARY PARKING FOR THE GENERAL PUBLIC (APN 013-021- 34, 35, 50, 51, 52, 53, 54 & 55)
This Summary concerns a proposed Ordinance of the City Council of the City of San Rafael, designated as Ordinance No.2063 regarding the Development Agreement between the City and the California Corporate Acquisition LLC (BioMarin). Ordinance No. 2063 is scheduled for adoption by the San Rafael City Council at its regular meeting of May 18, 2026. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1).

SUMMARY OF AMENDMENT TO MUNICIPAL CODE
This Ordinance would amend the Development Agreement between the City and California Corporate Acquisition, LLC, which was originally approved by Ordinance No. 1982. The City of San Rafael and BioMarin (California Corporate Center Acquisition, LLC, a Delaware limited liability company) entered into a Development Agreement (BioMarin San Rafael Campus) dated effective as of April 23, 2020 (Ordinance 1982) (the "Agreement") that permits the phased development and expansion of the San Rafael Corporate Center (SRCC) located at 770 Lindaro Street and the 999 3rd Street property with laboratory/research and development buildings, vesting these approvals for 10 years. BioMarin Pharmaceutical Inc. (BioMarin) is the parent company of CCCA.

The proposed amendment to the Agreement removes certain public access and parking requirements that are no longer operationally feasible or necessary. Specifically, the Amendment would eliminate: (1) the requirement for public access to the Mahon Creek Park area on the main campus (Agreement Section 5.2); (2) the requirement for public access to conference facilities (Agreement Section 5.3); and (3) the obligation to provide temporary public parking and ancillary uses at the 999 3rd Street property (Agreement Section 4.9).

For a complete copy of the text of the Ordinance amending the Municipal Code, please contact the City Clerk’s Office at [email protected] or by phone at (415) 485-3066. Copies of the Ordinance containing this Municipal Code amendment are also available for public review at the San Rafael City Clerk’s office, 1400 Fifth Avenue, 2nd Floor, Room 209, Monday through Thursday from 9:00 a.m. to 4:00 p.m., and on Fridays by appointment only.
/s/______________________
LINDSAY LARA, City Clerk
San Rafael City Clerk
Dated: 5/8/2026
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 2.c
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: John Stefanski
Assistant City Manager
City Manager Approval: ______________
TOPIC: ORGANIZATIONAL CONFLICT OF INTEREST POLICY FOR DESIGN-BUILD

PROJECTS
SUBJECT: RESOLUTION ESTABLISHING ORGANIZATIONAL CONFLICT OF INTEREST

POLICY FOR DESIGN-BUILD PROJECTS
RECOMMENDATION:

Adopt the resolution establishing a Conflict-of-Interest Policy covering design-build projects.

BACKGROUND:

At the April 6, 2026, meeting, the City Council authorized staff to proceed with a Progressive DesignBuild project delivery approach for the Measure P-funded new library and community center at Albert Park.

There are three statutes in the California Public Contract Code (sections 22162(c), 22171.5, and 22185.2) that allow for design-build/progressive design-build project delivery methods. Each requires the City to establish an organizational conflict-of-interest policy. Such a policy governs the ability of consultants or contractors to participate as a design-build entity or join a design-build team. It sets the parameters by which they would be prohibited from participating.

ANALYSIS:

The proposed Organizational Conflict-of-Interest Policy (Attachment 2) establishes the parameters under which a firm would be prohibited from participating as a design-build entity or joining a design-build team on a City project. Specifically, a firm is prohibited from participating if it is currently under contract with the City to manage or administer the Project, is performing oversight of the design-build team on behalf of the City or another stakeholder, has a prior contract with the City that expressly excludes it from participation, or would otherwise violate Government Code section 1090 or other applicable conflict-ofinterest laws. The Policy will be incorporated by reference into all design-build or progressive designbuild project solicitation documents and contracts.

Disclosure obligations under the Policy are ongoing. Any firm responding to a solicitation must make full written disclosure of any known or potential conflict of interest at the time of proposal submission — SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
including conflicts involving proposed subconsultants and subcontractors — and must disclose all prior work performed in connection with the Project. Once a contract is awarded, the successful firm must continue to monitor and disclose any conflicts that arise during project execution. If a conflict is discovered post-award and the firm is found to have been aware of it prior to award, the City may terminate the contract for material breach. Resolution of all conflict-of-interest determinations rests solely with the City, which retains the discretion to evaluate proposed mitigation measures and decide whether a firm may continue in the procurement process. Council adoption of this Policy satisfies the Public Contract Code requirement for the new library & community center at Albert Park Project and will apply to all future City design-build and progressive design-build projects.

COMMUNITY OUTREACH:

On February 23, 2026, the Measure P Subcommittee received a presentation regarding the project delivery method for the new library and community center at Albert Park. On April 6, 2026, the City Council also received a similar presentation and authorized staff to proceed with the Progressive DesignBuild project delivery method.

FISCAL IMPACT:

There is no fiscal impact associated with the adoption of the conflict-of-interest policy.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Approve the staff’s recommended action

2. Adopt resolution with modifications.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

Adopt the resolution establishing a Conflict-of-Interest Policy covering design-build projects.

ATTACHMENTS:

1. Resolution

2. Exhibit A to the Resolution: Organizational Conflict of Interest Policy RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ADOPTING AN

ORGANIZATIONAL CONFLICT OF INTEREST POLICY FOR DESIGN-BUILD PROJECTS WHEREAS, California Public Contract Code sections 22162(c), 22171.5, and 22185.2 authorize the use of design-build and progressive design-build project delivery methods and require the City to establish an organizational conflict-of-interest policy as a condition of using such delivery methods; and
WHEREAS, the proposed Organizational Conflict-of-Interest Policy establishes the parameters under which consultants or contractors would be prohibited from participating as a design-build entity or joining a design-build team on City projects, consistent with Government Code section 1090 and other applicable conflict-of-interest laws; and WHEREAS, adoption of the Policy will satisfy the requirements of the California Public Contract Code and apply to all City design-build and progressive design-build projects; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael that the Organizational Conflict-of-Interest Policy for Design-Build Projects, attached hereto as Exhibit A and incorporated herein by reference, is hereby adopted.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 18th day of May 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_____________________
Lindsay Lara, City Clerk

EXHIBIT A

SAN RAFAEL

ORGANIZATIONAL CONFLICT-OF-INTEREST POLICY

COVERING DESIGN-BUILD PROJECTS
Purpose
The purpose of this organizational conflict-of-interest policy is to establish guidelines, consistent with applicable law and as required under California Public Contract Code sections 22162(c), 22171.5 and 22185.2, regarding the ability of consultants or contractors (collectively, “Firm”) to submit a proposal as a design-build entity, or to join a design build team, relating to progressive design-build projects or design-build projects (“Design-Build Project”) for the City of Rafael (“City”).

Policy
Firm will not be allowed to participate as a design-build entity or to join a design-build team if, without limitation, any of the following is true (each a “conflict-of-interest”):
• Firm is under contract with City to manage or administer the Design-Build Project; • Firm is under contract with any other entity or stakeholder to perform oversight of the design-build team for City on the Design-Build Project; • Firm has performed work on a previous contract with City that expressly excludes them from participating as a design-build entity or joining a design-build team on the Design-Build Project;
• Firm would violate Government Code section 1090, including, but not limited to, Government Code section 1097.6;
• Firm would violate any other applicable federal or state conflict-of-interest rules and regulations; or
• Firm has a conflict of interest not listed in this policy that City, in its sole discretion, determines exists.

Firm’s Obligations
Any Firm responding to a request for qualifications or request for proposals for a DesignBuild Project shall make a full written disclosure to City in the response documents regarding the facts and circumstances of a conflict-of-interest or a potential conflict-ofinterest and shall have a continuing obligation to do so during the Design-Build Project.

Firm shall also disclose all work previously performed in relation to the Design-Build Project. These required disclosures include those of the Firm’s proposed consultants and contractors.

Firm shall follow all applicable federal and state conflict-of-interest rules and regulations including, without limitation, the California Political Reform Act, California Government Code Section 1090, the federal Copeland “Anti-Kickback” Act and federal conflict-ofinterest rules set forth in any grant or loan agreements executed by the City. Federal conflict-of-interest rules and regulations shall only apply when the Design-Build Project receives federal funding.

Conflict-of-Interest Issues
Resolution of a conflict-of-interest issue is at the sole discretion of City. If a Firm determines that a conflict-of-interest or potential conflict-of-interest exists (including those of its proposed consultants and contractors), it must disclose this to City. The disclosure may or may not disqualify a Firm from being awarded a contract. Firm shall propose measures to avoid, neutralize, or mitigate each conflict-of-interest. City, in its sole discretion, shall determine whether the proposed measures are sufficient to overcome the conflict-of-interest and whether Firm may continue with the procurement process.

Once a contract is awarded, the successful Firm has an ongoing obligation to monitor and disclose any conflict-of-interest or potential conflict-of-interest (including those of its consultants and contractors). City has a right to ongoing enforcement of this policy. If a conflict-of-interest is discovered after award, Firm will make an immediate and full written disclosure to City that includes a description of the action that Firm has taken or proposes to take to avoid or mitigate such conflicts. If a conflict-of-interest is determined to exist and Firm was aware of the conflict-of-interest prior to award of the contract and did not disclose the conflict-of-interest, City may terminate the contract with Firm for material breach.

This policy shall be incorporated by reference into and included as part of all City DesignBuild Project requests for qualifications or requests for proposals, and all City DesignBuild Project contracts. This policy shall not constitute a limitation on the obligations of Firm in relation to any organizational conflict-of-interest. ____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.d
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: April Miller, Public Works Director
John Stefanski, Assistant City Manager
City Manager Approval: _________
TOPIC: 350 MERRYDALE ROAD INTERIM SHELTER DESIGN SERVICES SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT

TO A PROFESSIONAL SERVICES AGREEMENT WITH LCA ARCHITECTS TO PROVIDE DESIGN SERVICES IN THE AMOUNT NOT TO EXCEED $71,236 FOR A TOTAL CONTRACT AMOUNT OF $351,986, AND AUTHORIZING A SUPPLEMENTAL FISCAL YEAR 2025-26 BUDGET APPROPRIATION IN THE AMOUNT OF $71,236 PROVIDED THROUGH THE ENCAMPMENT RESOLUTION FUND ROUND 3 GRANT (FUND 283)
RECOMMENDATION:

Staff recommends that the City Council adopt the resolution authorizing the City Manager to execute an amendment to a professional services agreement with LCA Architects to provide design services in the amount not to exceed $71,236 for a total contract amount of $351,986, and authorizing a supplemental fiscal year 2025-26 budget appropriation in the amount of $71,236 provided through the Encampment Resolution Fund Round 3 Grant (Fund 283).

BACKGROUND:

On November 17, 2025, the City Council took a series of actions to advance the City’s response to homelessness and enable the development of an interim shelter at 350 Merrydale Road. These actions included declaring a shelter crisis pursuant to Government Code section 8698 et seq.; adopting an urgency ordinance and introducing a related ordinance establishing local standards and procedures for homeless shelters; authorizing the City Manager to negotiate and execute an $8 million grant agreement and affordable housing agreement with the County of Marin; and authorizing the acquisition of the property at 350 Merrydale Road for use as an interim shelter followed by permanent affordable housing.

With these approvals in place, the project has transitioned into its implementation phase. The interim shelter is intended to serve up to 70 individuals over time in 65 units on a temporary basis and requires coordinated site preparation, utility service upgrades, permitting, and construction activities to be completed within a defined timeframe. Advancing this work involves multiple City departments, external consultants, utility providers, and construction contractors, as well as sequencing tasks that must occur in parallel to maintain the project schedule.

ANALYSIS:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
On February 17, 2026, the City Council authorized an amendment to the LCA Architects professional services agreement to design the interim shelter project. In addition, the City Council authorized an amendment to the service provider, FS Global, on April 20, 2026. After discussions between the design team and service provider, it was determined that the structures that FS Global is planning to lease to the city needed to be designed by a licensed architect and structural engineer. Since FS Global and its manufacturer Connex do not provide these services, city staff asked LCA Architects to provide a proposal to add this scope to their contract.

COMMUNITY OUTREACH:

A list of the city’s extension community engagement activities related to the 350 Merrydale Road Interim Shelter Project can be found on the city’s project website. Additional information on the website, based on feedback from engagement efforts, includes updates to the Good Neighbor Policy, Resident Code of Conduct, and project FAQs.

The proposed professional services agreement supports the implementation of the interim shelter project as refined through community engagement and is consistent with the site design, services, and operational framework shared with the community.

FISCAL IMPACT:

The recommendation in this staff report will authorize an amendment to the LCA contract in an amount not to exceed $71,236 for a total contract value of $351,986, which will be funded by a supplemental appropriation from the City’s Encampment Resolution Fund Round Three Grant (Fund 283) in the amount of $71,236.

ENVIRONMENTAL REVIEW:

In adopting Resolution Nos. 15480 and 15479, the City Council previously found that the purchase of the real property located at 350 Merrydale for the purposes of an interim shelter and long-term permanent affordable housing was exempt from environmental review under the California Environmental Quality Act.

OPTIONS:

The City Council has the following options to consider in this matter:

1. Adopt the resolution as presented.

2. Adopt resolution with modifications.

3. Direct staff to return with more information.

If any option is selected besides option 1, there will likely be a delay to the opening date of the interim housing project.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. LCA Amendment to PSA
RESOLUTION NO.

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO A

PROFESSIONAL SERVICES AGREEMENT WITH LCA ARCHITECTS TO PROVIDE DESIGN SERVICES IN THE AMOUNT NOT TO EXCEED $71,236 FOR A TOTAL CONTRACT AMOUNT OF $351,986, AND AUTHORIZING A SUPPLEMENTAL FISCAL YEAR 2025-26 BUDGET APPROPRIATION IN THE AMOUNT OF $71,236 PROVIDED THROUGH THE ENCAMPMENT RESOLUTION FUND ROUND 3 GRANT (FUND 283)
WHEREAS, On November 17, 2025, the San Rafael City Council took a series of actions to advance the City’s response to homelessness, including declaring a Shelter Crisis pursuant to Government Code section 8698 et seq.; adopting local standards and procedures for homeless shelters; authorizing the City Manager to negotiate and execute an $8 million grant agreement and affordable housing agreement with the County of Marin; and authorizing the acquisition of the property located at 350 Merrydale Road for use as an interim shelter followed by permanent affordable housing; and WHEREAS, with these approvals in place, the 350 Merrydale Road Interim Shelter Project has transitioned from planning and entitlement into implementation, requiring coordinated site preparation, utility upgrades, permitting, and construction activities to be completed within a defined timeframe; and WHEREAS, the City previously entered into a professional services agreement with LCA Architects to provide design services for the project, and staff have determined that a second amendment to that agreement is necessary to include the design of the interim shelter units provided by FS Global and constructed by Connex required for permitting and construction of the interim shelter project; and WHEREAS, the proposed amendment to the professional services agreement with LCA Architects would increase the total contract amount to $351,986, inclusive of the original contract amount; and
WHEREAS, the proposed amendment to the professional services agreement with LCA Architects support implementation of the interim shelter project as refined through community engagement and are consistent with the site design, services, and operational framework shared with the community; and
WHEREAS, Funds for the professional services agreement and amendment are available from the Encampment Resolution Fund Round 3 Grant.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael hereby:

1. Authorizes the City Manager to execute an amendment to the Professional Services Agreement with LCA Architects to provide full design services for the 350 Merrydale Road Interim Shelter Project, increasing the total contract amount to $351,986, in substantially the form presented to the City Council.

2. Authorizes the City Manager to make non-substantive modifications to the agreements as necessary, subject to approval as to form by the City Attorney.

3. Authorizes a supplemental Fiscal Year 2025-26 budget appropriation of $71,236 from available funds provided through the Encampment Resolution Fund Round 3 Grant (Fund 283).

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on Monday, the 18th day of May 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

Lindsay Lara, City Clerk

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.e
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Alexis Captanian,
Housing Manager
City Manager Approval: ______________
TOPIC: BELOW MARKET RATE RENTAL HOUSING AND HOMEOWNERSHIP PROGRAM

ADMINISTRATION
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A

PROFESSIONAL SERVICES AGREEMENT WITH MARIN HOUSING AUTHORITY

FOR ADMINISTRATION OF THE BELOW MARKET RATE RENTAL HOUSING AND

HOMEOWNERSHIP PROGRAMS FOR THREE YEARS IN AN AMOUNT NOT TO EXCEED $125,000 PER YEAR
RECOMMENDATION:

Staff recommends that the City Council adopt the resolution authorizing the City Manager to enter into a professional services agreement with the Marin Housing Authority for administration of the below market rate rental housing and homeownership programs for three years in an amount not to exceed $125,000 per year.

BACKGROUND:

The San Rafael General Plan 2040 contains provisions for the construction and preservation of both affordable ownership and rental housing units in San Rafael. To ensure compliance with City affordable housing policies, the City has contracted with the Marin Housing Authority for many years to administer the City’s Below Market Rate (BMR) Ownership and Rental Housing Programs. Through this partnership, the City benefits from Marin Housing Authority’s expertise in housing management and compliance. To continue monitoring existing and future BMR units, the City needs to initiate a new professional services agreement with Marin Housing Authority.

On February 17, 2026, Marin Housing Authority presented a program update to the City Council Housing and Economic Development Subcommittee, including Mayor Kate Colin and Councilmember Eli Hill, describing the current and projected unit portfolio, the services that Marin Housing provides, who the program serves, and how it has evolved based on changes in the housing market and other factors.

ANALYSIS:

This new agreement with Marin Housing Authority will include administrative duties for both the BMR Rental and Ownership Housing Programs for a term of three years (2025-2028).

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
BMR Homeownership Program
Under the agreement, the Marin Housing Authority services include coordination with the City and developer on the initial pricing and sale of each BMR unit, full resale services, annual compliance monitoring, and case-by-case enforcement to address violations. The annual cost is $850 per homeownership unit. The program currently includes 111 homeownership units across 22 complexes.

The number of homeownership units is not projected to increase over the term of the agreement due to limited ownership projects in the City’s development pipeline and the expiration of affordability restrictions on some older units in the portfolio. The affordability term varies by unit age, with some older units having a term of just 30 years. More recent BMR homeownership units have terms of 55 years or in perpetuity.

The City has not previously recovered costs for the homeownership program; however, going forward, the Marin Housing Authority will include a fee for new BMR homeowners to help recover costs of compliance monitoring and administration.

BMR Rental Program
Under the agreement, the Marin Housing Authority will monitor developments with BMR units, calculate and update allowable income schedules, review tenant income certifications, answer questions from renters and landlords, bill and collect monitoring and certification fees, and ensure compliance with affordable housing program requirements. The program currently includes approximately 750 rental units across 42 complexes. The number of BMR rental units in the portfolio is projected to increase based on the City’s development pipeline; however, most of the anticipated BMR units are in market-rate developments, which pay an annual monitoring fee.

The City will pay $25 per rental unit for 100% affordable housing projects that are deed-restricted through an award from the City’s Affordable Housing Trust Fund. Under California state law, cities are not permitted to charge a local compliance monitoring fee on 100% affordable housing developments that are already subject to a regulatory monitoring agreement with the state.

Staff proposes a not-to-exceed cap of $125,000 per year to provide sufficient funding for the administration and monitoring of both programs.

FISCAL IMPACT:

The cost of the proposed agreement over the three-year term is not to exceed $125,000 per year. The agreement will be funded through the Housing Division’s General Fund budget. For Fiscal Year 2025- 2026, these services will be funded through the Housing Division’s existing budget.

OPTIONS:

The City Council has the following options to consider in this matter:

1. Adopt the resolution;

2. Adopt the resolution with modifications;

3. Direct staff to return with more information; or

4. Take no action.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt the resolution authorizing the City Manager to enter into a professional services agreement with the Marin Housing Authority for the administration of the below market rate rental housing and homeownership programs for three years in an amount not to exceed $125,000 per year.

ATTACHMENTS:

1. Resolution

2. Professional Services Agreement

Page 1 of 2 ends

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY

MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH MARIN HOUSING

AUTHORITY FOR ADMINISTRATION OF THE BELOW MARKET RATE RENTAL HOUSING AND HOMEOWNERSHIP PROGRAMS FOR THREE YEARS IN AN AMOUNT NOT TO EXCEED $125,000

PER YEAR
WHEREAS, the City of San Rafael General Plan contains policies to encourage affordable housing units for very low-, low- and moderate-income households in residential projects; and WHEREAS, the City of San Rafael provides grants and loans to affordable housing projects from the City’s Affordable Housing Trust Fund; and
WHEREAS, such affordable units provided by developers to comply with the General Plan or funded through the Affordable Housing Trust Fund are known as Below Market Rate Housing (“BMR”) units, and each developer of a BMR unit executes enforceable restrictions so that both ownership and rental units remain affordable over time; and
WHEREAS, for many years, the City of San Rafael has hired Marin Housing Authority to administer the City’s BMR Ownership and Rental Housing Programs; and WHEREAS, the City of San Rafael desires to assure that the existing and future BMR units will remain as a housing resource for future generations by allocating funds for the management of the BMR Ownership and Rental Housing Programs; and
WHEREAS, the Community and Economic Development Department (“CED”) wishes to initiate a new professional services agreement with Marin Housing to ensure the administration and monitoring of existing and future BMR units for a three-year term; and WHEREAS, for this professional services agreement with Marin Housing Authority, CED will fund the cost of monitoring BMR units in affordable rental housing projects and ownership BMR units, as well as the cost of enforcement services, from the Housing Division General Fund budget; and WHEREAS, Marin Housing Authority will bill and collect the Annual Monitoring Fee from property owners to cover the cost of monitoring BMR units in market-rate residential rental projects; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael authorizes the City Manager or their designee to execute a professional services agreement with Marin Housing Authority for Fiscal Year 2025-2026 through Fiscal Year 2027-2028 in an amount not to exceed $125,000 per year.

FURTHER RESOLVED, that the City Council further authorizes the City Manager or their designee to utilize funding already appropriated to the Community and Economic Development Department to fund any work performed under the above-referenced professional services agreement in Fiscal Year 2025-2026; and
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday, the 18th day of May 2026, by the following vote, to wit:

Page 2 of 2 ends

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

LINDSAY LARA, City Clerk

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.f
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Paul Navazio, Interim City Manager City Manager Approval: _________ TOPIC: CITY QUARTERLY INVESTMENT REPORT
SUBJECT: ACCEPTANCE OF CITY OF SAN RAFAEL QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDING MARCH 31, 2026
RECOMMENDATION:

Accept the investment report for the quarter ending March 31, 2026, as presented.

BACKGROUND:

Under the State of California Government Code Section 53601 and the City’s investment policy, last approved by the City Council on June 17, 2024, staff provides the City Council with a quarterly report on the City's investment activities and liquidity. The report includes the cost of each investment, the interest rates (yield), maturity dates, and market value.

The City invests some of its pooled funds in the Local Agency Investment Fund (LAIF), a State-run investment pool. Beginning in March 2014, the City incorporated an investment strategy that added purchases of securities outside of LAIF with the assistance of an investment advisor. The City’s current investment advisor is Chandler Asset Management.

ANALYSIS:

As of March 31, 2026, the City’s Treasury consisted of investments with a total market value of $110,454,514 consisting of $59,017,282 in the City’s primary Local Agency Investment Fund (LAIF) account and $51,437,232 in externally managed investments (which includes $893,500 of Pt. San Pedro Assessment District bonds). An additional $9,570,579 represents cash balances in the City’s various operating bank accounts, including Westamerica Bank ($8,227,410), Bank of the Marin ($888,263), and Bank of Montreal ($454,906).

As of March 31, 2026, the weighted-average yield on the portfolio was 3.99% which results from an effective yield of 3.78% for the City’s investments in the Local Agency Investment Fund and a yield of

4.34% for the externally managed investments. The overall return on the total portfolio for the quarter ending March 31, 2026, was 4%, with a weighted average maturity of 1 years, and compares favorably SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
to the benchmark (1-3 Year Treasury Index) of 3.81%. The City’s investment portfolio maintains strong diversification and all investments comply with the City’s investment policy and California Government Code.

Economic Outlook:

As broadly anticipated, the Federal Open Market Committee (FOMC) meeting ended with policymakers again holding the target range at 3.50 – 3.75% as the Committee voted 11-1 to leave the benchmark rate unchanged. Treasury yields exhibited considerable first-quarter volatility as the Iran conflict injected energy-driven inflation fears into a market grappling with sticky core prices.

The City will continue to watch market trends and refine its investment strategy, as appropriate, to improve the investment portfolio’s performance while ensuring its primary goals of preservation of principal, liquidity, and yield.

The attachments include:

1. Quarterly Investment Portfolio Report

2. Historical Activity by Quarter summarizing the City’s investments

3. The City’s Investment Report from Chandler Asset Management for the period ending March 31, 2026, which includes a listing of all holdings and transaction activity details for the reporting period FISCAL IMPACT:

No financial impact occurs by accepting the report. The City continues to meet the priority investment principles - safety, liquidity, yield, and diversification. The portfolio is still conservatively invested, and sufficient liquidity exists to meet daily operating and capital project requirements for the next six months.

As defined for this report, operating funds exclude cash held with fiscal agents to pay bond principal and interest.

RECOMMENDED ACTION:

Accept the investment report for the quarter ending March 31, 2026, as presented. Microsoft Teams ATTACHMENTS:

Attachments:

1. Attachment 1: Quarterly Investment Portfolio Report

2. Attachment 2: Historical Activity by Quarter Report

3. Attachment 3: Chandler Asset Management – Investment Report: Period Ending March 31, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY’S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE CITY HAS

SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT SIX-MONTH PERIOD.

Paul Navazio
Interim City Manager
% Yield
LAIF $ 58,450,124 99.0% 3.82%
Cash (Receivable) $ 567,158 1.0% 0.00%
Total Internally Managed $ 59,017,282 53.4%
Weighted Average Yield 3.78%
Days
Effective Average Duration - Internal 1
Weighted Average Maturity - Internal 1
% Yield
Money Market Fund $ 1,498,497 2.9% 3.29%
Treasury Securities $ 17,435,147 33.9% 4.07%
Instrumentality Securities $ 4,857,791 9.4% 4.30%
Corporate Notes $ 14,162,362 27.5% 4.71%
Asset-Backed $ 4,135,055 8.0% 4.66%
Cash (Receivable) $ 1,609 0.0% 0.00%
Commercial Paper $ 1,472,355 2.9% 3.82%
CMO $ 5,723,823 11.1% 4.30%
Supranational $ 1,257,093 2.4% 4.34%
Pt. San Pedro Assessment District $ 893,500 1.7% 5.25%
Total Externally Managed $ 51,437,232 46.6%
Weighted Average Yield 4.34%
Years
Effective Average Duration - External 1.70
Weighted Average Maturity - External 2.13
Total Portfolio Assets % Yield
LAIF $ 58,450,124 52.9% 3.82%
Money Market Fund $ 1,498,497 1.4% 3.29%
Treasury Securities $ 17,435,147 15.8% 4.07%
Instrumentality Securities $ 4,857,791 4.4% 4.30%
Corporate Notes $ 14,162,362 12.8% 4.71%
Asset-Backed $ 4,135,055 3.7% 4.66%
Cash (Receivable) $ 568,766 0.5% 0.00%
Commercial Paper $ 1,472,355 1.3% 3.82%
CMO $ 5,723,823 5.2% 4.30%
Supranational $ 1,257,093 1.1% 4.34%
Pt. San Pedro Assessment District $ 893,500 0.8% 5.25%
Total Portfolio Assets $ 110,454,514 100.0%
Weighted Average Yield 3.99%
Years
Effective Average Duration - Total 0.86
Weighted Average Maturity - Total 1.00
Based on Market Values
March 31, 2026
City of San Rafael
Quarterly Investment Portfolio Report
Externally Managed Assets
Internally Managed Assets
LAIF

99.0%
Cash
(Receivable)

1.0%
Money Market
Fund

2.9%
Treasury
Securities

33.9%
Instrumentality
Securities

9.4%
Corporate Notes

27.5%
Asset-Backed

8.0%
Cash
(Receivable)

0.0%
Commercial
Paper

2.9%
CMO

11.1%
Supranational

2.4% Pt. San Pedro
Assessment
District

1.7%
LAIF

52.9%
Money Market
Fund

1.4%
Treasury
Securities

15.8%
Instrumentality
Securities

4.4%
Corporate Notes

12.8%
Asset-Backed

3.7%
Cash
(Receivable)

0.5%
Commercial
Paper

1.3%
CMO

5.2%
Supranational

1.1%
Pt. San Pedro
Assessment
District

0.8%
Attachment 1
Internally Managed Assets % Return % Return % Return % Return LAIF 58,450,124 $ 99.04% 3.82% 60,863,383 $ 98.8% 4.31% 67,213,508 $ 99.1% 4.57% 60,496,038 $ 98.9% 4.57% Cash (Receivable) 567,158 $ 0.96% 0.00% 709,073 $ 1.2% 0.00% 609,268 $ 0.9% 0.00% 692,545 $ 1.1% 0.00% Total Internally Managed 59,017,282 $ 53.4% 61,572,456 $ 55.5% 67,822,776 $ 58.3% 61,188,583 $ 55.7% Weighted Average Yield 3.78% 4.26% 4.53% 4.52%
Externally Managed Assets % Return % Return % Return % Return Cash 1,609 $ 0.00% 0.00% 4,688 $ 2,131 $ 0.0% 0.00% 1,427 $ 0.0% 0.00% Commercial Paper 1,472,355 $ 2.86% 3.82% 748,555 $ 1.5% 5.43% 739,604 $ 1.5% 0.00%Money Market Fund 1,498,497 $ 2.91% 3.29% 832,503 $ 1.7% 219,455 $ 0.5% 4.49% 1,110,193 $ 2.3% 4.49% Treasury Securities 17,435,147 $ 33.90% 4.07% 16,320,849 $ 33.0% 15,615,384 $ 32.1% 3.80% 15,268,781 $ 31.3% 3.80% Instrumentality Securities 4,857,791 $ 9.44% 4.30% 7,943,011 $ 16.1% 9,016,594 $ 18.6% 4.42% 9,099,833 $ 18.7% 4.42% Corporate Notes 14,162,362 $ 27.53% 4.71% 12,550,651 $ 25.4% 11,848,951 $ 24.4% 4.82% 11,999,405 $ 24.6% 4.82% Asset Backed 4,135,055 $ 8.04% 4.66% 4,833,808 $ 9.8% 5,194,081 $ 10.7% 4.84% 5,432,707 $ 11.2% 4.84% Negotiable CD - $ 0.0% 0.00% - $ 0.0% 0.00% - $ 0.0% 0.00% - $ 0.0% 0.00% Collateralized Mortgage Obligations (CMO) 5,723,823 $ 11.13% 4.30% 4,802,670 $ 9.7% 4,125,160 $ 8.5% 4.44% 3,849,645 $ 7.9% 4.44% Supranational 1,257,093 $ 2.44% 4.34% 1,250,601 $ 2.5% 939,586 $ 1.9% 4.53% 315,102 $ 0.6% 4.53% Municipal/Assessment District 893,500 $ 1.74% 5.25% 893,500 $ 1.8% 893,500 $ 1.8% 5.25% 893,500 $ 1.8% 5.25% Total Externally Managed 51,437,232 $ 46.57% 49,432,281 $ 44.5% 48,603,397 $ 41.7% 48,710,196 $ 44.3% Weighted Average Yield 4.34% 4.51% 4.31% 4.32%
Years Years Years Years
Effective Average Duration - External 1.7 1.84 1.84 1.84Weighted Average Maturity - External 2.13 2.22 2.22 2.22 Total Portfolio Assets % Return % Return % Return % Return LAIF 58,450,124 $ 52.92% 3.82% 60,863,383 $ 54.8% 4.31% 67,213,508 $ 57.73% 4.57% 60,496,038 $ 55.0% 4.57% Cash 568,766 $ 0.51% 0.00% 713,761 $ 0.6% 611,399 $ 0.53% 0.00% 693,972 $ 0.6% 0.00% Commercial Paper 1,472,355 $ 1.33% 3.82% 748,555 $ 0.64% 5.43% 739,604 $ 0.7% 5.43%Money Market Fund 1,498,497 $ 1.36% 3.29% 832,503 $ 0.7% 3.95% 219,455 $ 0.19% 4.49% 1,110,193 $ 1.0% 4.49% Treasury Securities 17,435,147 $ 15.78% 4.07% 16,320,849 $ 14.7% 4.24% 15,615,384 $ 13.41% 3.80% 15,268,781 $ 13.9% 3.80% Instrumentality Securities 4,857,791 $ 4.40% 4.30% 7,943,011 $ 7.2% 4.34% 9,016,594 $ 7.74% 4.42% 9,099,833 $ 8.3% 4.42% Corporate Notes 14,162,362 $ 12.82% 4.71% 12,550,651 $ 11.3% 4.87% 11,848,951 $ 10.18% 4.82% 11,999,405 $ 10.9% 4.82% Asset Backed 4,135,055 $ 3.74% 4.66% 4,833,808 $ 4.4% 4.83% 5,194,081 $ 4.46% 4.84% 5,432,707 $ 4.9% 4.84% Collateralized Mortgage Obligations (CMO) 5,723,823 $ 5.18% 4.30% 4,802,670 $ 4.3% 4.44% 4,125,160 $ 3.54% 4.44% 3,849,645 $ 3.5% 4.44% Supranational 1,257,093 $ 1.14% 4.34% 1,250,601 $ 1.1% 4.31% 939,586 $ 0.81% 4.53% 315,102 $ 0.3% 4.53% Municipal/Assessment District 893,500 $ 0.81% 5.25% 893,500 $ 0.8% 5.25% 893,500 $ 0.77% 5.25% 893,500 $ 0.8% 5.25% Total Portfolio Assets 110,454,514 $ 100% 111,004,737 $ 100% 116,426,173 $ 100.00% 109,898,779 $ 100.0% Weighted Average Yield 3.99% 4.37% 4.44% 4.43%
Years Years Years Years
Effective Average Duration - Total 0.86 0.80 0.81 0.81Weighted Average Maturity - Total 1 0.96 0.97 0.97 March 31, 2026
Attachment 2
March 31, 2025
City of San Rafael
Historical Activity-By Quarter
December 31, 2024 September 30, 2024

INVESTMENT REPORT
City of San Rafael | As of March 31, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. 1-,,a CHANDLER " '-- ASSET MANAGEMENT

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
1 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

ECONOMIC UPDATE
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▪
▪
▪
March payrolls rebounded by 178,000 after February’s revised 133,000 decline, but the war in Iran and its disruption of the Strait of Hormuz have pushed crude oil above $112, injecting a potential inflationary shock into an economy contending with sticky core prices above 3%.

The Federal Reserve has held the funds rate at 3.50–3.75% and is signaling a cautionary stance, keeping open the option of delaying cuts if oil‑related inflation proves persistent rather than transitory. As the data flow normalizes, the Chandler team anticipates additional yield curve steepening as the Federal Reserve gradually guides the policy rate toward a more neutral range. The Federal Reserve’s March dot plot still projects one cut this year, yet the Iran-driven energy shock has narrowed the path toward easing.

The Federal Reserve’s March 2026 FOMC meeting ended with policymakers again holding the target range at 3.50%–3.75%, as the Committee maintained its pause following three late‑2025 rate cuts. Governor Stephen Miran dissented in favor of an additional quarter‑point reduction, while Christopher Waller joined the majority, tipping the vote 11–1 to leave the benchmark rate unchanged.

Meanwhile, President Trump’s nomination of Kevin Warsh to succeed Jerome Powell as chair has hit a roadblock after a Republican senator vowed to block Warsh’s confirmation amid the Justice Department’s ongoing probe of the central bank.

Treasury yields exhibited considerable first-quarter volatility as the Iran conflict injected energy-driven inflation fears into a market grappling with sticky core prices. At March month-end, the 2-year yield stood at 3.79%, up 32 basis points year-to-date, the 10-year at

4.32%, and the 30-year at 4.86%. The 2-year to 10-year spread narrowed to 52 basis points, reflecting pronounced flattening as short rates rose faster than longer maturities. One year ago, that spread stood near 32 basis points, providing context on normalization since the 2022 through 2024 yield curve inversion. The 3-month to 10-year spread was approximately 64 basis points at March month-end.

ECONOMIC UPDATE
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-400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
March nonfarm payrolls rose by 178,000, a decisive reversal from February’s revised 133,000 decline that had been distorted by a Kaiser Permanente strike affecting over 30,000 healthcare workers and severe winter weather. Healthcare contributed 76,000 positions as striking nurses returned, while construction and leisure rebounded from weather-induced troughs. The unemployment rate edged lower to 4.3%, though partly from a labor force reduction rather than a hiring acceleration. Meanwhile, the underemployment rate edged up to 8.0% from

7.9% in February. Average hourly earnings rose 0.2% over the month and 3.5% year over year—the slowest annual pace since May 2021.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
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--
~ -
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average In Thousands (000's)
Job openings fell to 6.9 million in February from a revised 7.2 million in January, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. The ratio of openings to unemployed workers slipped to 0.9, reinforcing the gradual rebalancing of demand and supply. Hires decreased to 4.8 million, the lowest since April 2020, suggesting employers have grown selective about adding headcount.

Quits were little changed at 3 million. The data reflects a labor market consistent with the Federal Reserve’s characterization of a no-hire, no-fire environment.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
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2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Retail gasoline prices climbed steeply in March following the escalation of the U.S.-Iran conflict and the closure of the Strait of Hormuz.

According to AAA, the national average reached $4.06 per gallon by month-end, an increase exceeding a dollar from $2.98 on February 26.

Diesel prices reached $5.49 as tight global distillate supplies compounded the disruption. Cushing WTI crude settled at $101.38 per barrel on March 31, while Dated Brent closed at $126.97, producing a spread of roughly $25.60, the widest in more than five years. The gap reflects the disproportionate impact of shipping disruptions on internationally benchmarked crude relative to domestic supply bolstered by Strategic Petroleum Reserve releases.
6 _L____ --- __ ____J L
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- --:__ __ ____.~

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator
YOY % Change
PCE Core Deflator
YOY % Change
Fed Target
YOY (%) Change
Consumer Price Index (CPI) for March surged 0.9%, the highest monthly rate since June 2022, and was up 3.3% on an annual basis primarily due to spikes in energy and airfare prices. Notably, Core CPI was little changed with a monthly increase of 0.2% and an annual rise of 2.6% as costs for services and other goods remained subdued. Personal Consumption Expenditures (PCE) were little changed in February, with the headline PCE Price Index up 0.4% month-over-month and 2.8% year-over-year. The Fed’s preferred metric, Core PCE, which excludes food and energy, rose 0.4% during the month and 3.0% from February of 2025.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
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0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
The Conference Board’s Consumer Confidence Index edged up to 91.8 in March from 91.0 in February, a second consecutive gain that nonetheless sits well below the all-time peak of 144.7 from early 2000. The Present Situation component rose 4.6 points to 123.3 on favorable assessments of business and labor conditions, while the Expectations Index slipped 1.7 points to 70.9. Inflation expectations climbed to their highest since August 2025, reflecting tariff passthrough and elevated gasoline prices. February retail sales rebounded 0.6% from January, with stronger auto and broad-based discretionary spending offsetting January’s weather- and vehicle-related weakness; the control group also advanced 0.5%, signaling firmer underlying consumer demand. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
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-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Chicago Fed National Activity Index (CFNAI) fell to ‑0.11 in February, following a positive revision to 0.20 in January. The index’s three‑month moving average edged up to ‑0.01 from ‑0.02 the prior month. Production and employment related indicators turned negative in February, while sales, orders, and inventories also remained in negative territory. The personal consumption and housing categories slipped modestly but stayed in positive territory. The Conference Board’s Leading Economic Index (LEI) declined 0.1% in January, an improvement from ‑0.2% in December, with consumer expectations and building permits the largest drags on the index. On a year‑over‑year basis, the LEI fell 3.8%, continuing to signal slower economic growth heading into 2026. Notably, the latest LEI data do not yet reflect the impact of the war in Iran.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
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0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts rose 7.2% in January to an annualized pace of 1.487 million units, including 935,000 single-family and 552,000 multifamily starts. The January S&P Cotality Case-Shiller 20-City Composite posted a 1.18% year-over-year gain, continuing deceleration from December’s revised 1.43% annual increase. Inflation again outpaced home price appreciation, extending the erosion of real housing returns that began in the second half of 2025. The Freddie Mac 30-year fixed mortgage rate climbed to 6.46% as of April 2, its fifth consecutive weekly rise, reversing progress made when rates dipped below 6% in February. Higher borrowing costs and elevated prices continue to constrain affordability.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
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40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
The Institute for Supply Management’s Manufacturing Index rose to 52.7 in March from 52.4, the fastest factory expansion since August 2022 and a third consecutive month above 50. Production accelerated to 55.1 from 53.5, though new orders decelerated to 53.5 from 55.8.

The prices subindex leaped to 78.3 from 70.5, reflecting elevated energy costs, metals tariffs, and Iran-related supply disruptions.

Employment remained in contraction at 48.7. The Services Index eased to 54.0 in March from 56.1 in February but still posted its 21st consecutive month of expansion. The expansion was mainly from an increase in prices, amid higher oil and fuel costs. With both measures above the 50 threshold, ISM data point toward a resilient if cost-pressured economy.

Source: Institute for Supply Management

SURVEY BASED MEASURES
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--------' \:,_ ________________________ -=====================!..._ I I \ I ,_ ..

Components of GDP 3/25 6/25 9/25 12/25

0.4% 1.7% 2.3% 1.3%

3.8% -2.7% 0.0% 0.4%
-4.7% 4.8% 1.6% -0.2%
-0.4% -0.4% 0.2% -1.2%

0.2% 0.3% 0.2% 0.2%
-0.6% 3.8% 4.4% 0.5%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment) -2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce The third and final estimate of real gross domestic product (GDP) showed fourth-quarter growth revised down to 0.5% from the initial 1.4% estimate. The slowdown from 4.4% in the third quarter primarily reflected a sharp pullback in government spending, as the federal government shutdown weighed on activity. The Bureau of Labor Statistics expects statistical distortions will persist into the spring due to data collection disruptions. Personal Consumption Expenditures also declined across both goods and services.

GROSS DOMESTIC PRODUCT (GDP)
12 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve left its benchmark interest rate unchanged in March, keeping the target range at 3.50% to 3.75% following three late‑2025 rate cuts that were justified by signs of softening in the labor market. The Federal Open Market Committee minutes showed some participants supported two-sided language on future rate direction given the upside risks to inflation and downside risks to employment being elevated. However, policymakers have grown wary of potential inflationary pressures stemming from tariffs, the war in Iran, and the ensuing spike in commodity prices. The Federal Reserve now projects just one rate cut in 2026, even as inflation expectations rise. The Committee also reaffirmed its December decision to halt balance sheet runoff and to reinvest principal and interest payments from its securities holdings, signaling a continued emphasis on maintaining ample reserves and supporting orderly market functioning.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
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Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Mar-26
Dec-25
Mar-25
Yield (%)
At March month-end, the 2-year Treasury yield stood at 3.79%, down approximately 9 basis points from one year ago, while the 10-year finished at 4.32%, roughly 11 basis points higher year-over-year. The spread between the two narrowed to 52 basis points, wider by 20 basis points year-over-year. The prior 2-year to 10-year inversion from July 2022 through August 2024 was historically long. The average spread since 2005 is approximately 95 basis points, suggesting the current slope sits well below its long-run norm. The 3-month to 10-year spread stood near 64 basis points at March month-end.

BOND YIELDS
14 . . . . ... .. ·
. . ..
' ..
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ACCOUNT PROFILE
15 1-,,a CHANDLER " '-- ASSET MANAGEMENT

OBJECTIVES
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 16 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

STATEMENT OF COMPLIANCE
San Rafael Cons | Account #11047 | As of March 31, 2026 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV; ABS, CMO, & MBS) 20.0 9.0 Compliant
Max Maturity (Years) 5.0 3.2 Compliant
Min Rating (AA- by 1; A- Issuer by 1) 0.0 0.0 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; ABS, CMO & MBS) 20.0 9.0 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1; A- Issuer by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max Amount Issuer (MV) 2.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NONNEGOTIABLE CD/TD)
Max % (MV; CDs & NCDs) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 1.3 Compliant
Max % Issuer (MV) 5.0 0.9 Compliant
Max Maturity (Days) 270 181 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 12.9 Compliant
Max % Issuer (MV) 5.0 0.6 Compliant
17 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

STATEMENT OF COMPLIANCE
San Rafael Cons | Account #11047 | As of March 31, 2026 Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV; CDs & NCDs) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 4.4 Compliant
Max Maturity (Years) 5 1 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 58.5 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 10.0 1.4 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1; A- Issuer by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max Maturity (Years) 5 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV; CDs & NCDs) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 or A- by 1) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SRI PROHIBITED INVESTMENTS
Prohibited Investments - Energy 0.0 0.0 Compliant
18 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

STATEMENT OF COMPLIANCE
San Rafael Cons | Account #11047 | As of March 31, 2026 Rules Name Limit Actual Compliance
Status Notes

SUPRANATIONAL OBLIGATIONS
Max % (MV) 15.0 1.1 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 15.9 Compliant
Max Maturity (Years) 5 4 Compliant
19 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

PORTFOLIO CHARACTERISTICS
City of San Rafael | Account #11045 | As of March 31, 2026 Benchmark* 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 1.85 2.13 2.19
Average Modified Duration 1.76 1.79 1.87
Average Purchase Yield 4.32% 4.40%
Average Market Yield 3.81% 4.00% 3.74%
Average Quality** AA+ AA AA
Total Market Value 50,892,652 50,690,209
*Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

SECTOR DISTRIBUTION
City of San Rafael | Account #11045 | As of March 31, 2026 Sector as a Percentage of Market Value
Sector 03/31/2026 12/31/2025
US Treasury 34.50% 39.89%
Corporate 28.02% 27.07%
Agency CMBS 11.32% 12.24%
Agency 9.61% 9.71%
ABS 8.18% 6.86%
Money Mkt Fd 2.96% 1.71%
Comm Paper 2.91% --
Supras 2.49% 2.52%
21 50%
25%
0% US Treasury Corporate AgencyCMBS Agency
■ 03/31/2026
ABS Money Mkt Fd
■ 12/31/2025
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
Comm Paper Supras

ISSUERS
City of San Rafael | Account #11045 | As of March 31, 2026 Issuer Investment Type % Portfolio
United States US Treasury 34.50%
Federal Home Loan Mortgage Corp Agency CMBS 11.32%
Farm Credit System Agency 6.58%
Federal Home Loan Banks Agency 3.03%
First American Govt Oblig Fund Money Mkt Fd 2.96%
Mitsubishi UFJ Financial Group, Inc. Comm Paper 1.94%
International Bank for Recon and Dev Supras 1.87%
Honda Auto Receivables Owner Trust ABS 1.36%
Eli Lilly and Company Corporate 1.21%
Bank of Montreal Corporate 1.20%
The Home Depot, Inc. Corporate 1.20%
Bank of America Corporation Corporate 1.18%
Alphabet Inc. Corporate 1.18%
Toyota Motor Corporation Corporate 1.17%
The Toronto-Dominion Bank Corporate 1.15%
Caterpillar Inc. Corporate 1.10%
National Rural Utilities Cooperative Corporate 1.09%
PACCAR Inc Corporate 1.09%
Prologis, Inc. Corporate 1.08%
State Street Corporation Corporate 1.05%
BNY Mellon Corp Corporate 1.03%
Hyundai Auto Receivables Trust ABS 1.00%
PepsiCo, Inc. Corporate 1.00%
American Honda Finance Corporation Corporate 0.99%
Chase Issuance Trust ABS 0.98%
Amazon.com, Inc. Corporate 0.98%
The Goldman Sachs Group, Inc. Corporate 0.98%
Realty Income Corporation Corporate 0.98%
Morgan Stanley Corporate 0.98%
American Express Credit Master Trust ABS 0.98%
22 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

ISSUERS
City of San Rafael | Account #11045 | As of March 31, 2026 Issuer Investment Type % Portfolio
Mizuho Financial Group, Inc. Comm Paper 0.97%
JPMorgan Chase & Co. Corporate 0.96%
Deere & Company Corporate 0.85%
U.S. Bancorp Corporate 0.84%
American Express Company Corporate 0.80%
Toyota Auto Receivables Owner Trust ABS 0.78%
Visa Inc. Corporate 0.77%
BMW Vehicle Lease Trust ABS 0.75%
Public Service Enterprise Group Corporate 0.66%
Salesforce, Inc. Corporate 0.65%
Wells Fargo & Company Corporate 0.64%
International Finance Corporation Supras 0.61%
Abbvie Inc. Corporate 0.61%
Bank of America Credit Card Trust ABS 0.60%
Mercedes-Benz Auto Lease Trust ABS 0.50%
John Deere Owner Trust ABS 0.46%
BMW Vehicle Owner Trust ABS 0.38%
Target Corporation Corporate 0.36%
Deere & Company ABS 0.33%
Merck & Co., Inc. Corporate 0.26%
Mercedes-Benz Auto Receivables Trust ABS 0.04%
Cash Cash 0.00%
TOTAL 100.00%
23 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

QUALITY DISTRIBUTION
Rating 03/31/2026 12/31/2025
AAA 12.16% 10.12%
AA 56.15% 61.86%
A 22.56% 23.89%
BBB 2.61% 0.99%
A-1 2.89% --
NA 3.62% 3.14%
Rating 03/31/2026 12/31/2025
Aaa 12.56% 10.02%
Aa 58.19% 64.07%
A 22.61% 22.74%
P-1 2.89% --
NA 3.75% 3.17%
Rating 03/31/2026 12/31/2025
AAA 16.69% 15.81%
AA 56.61% 60.34%
A 10.06% 10.51%
NA 16.65% 13.34%
City of San Rafael | Account #11045 | As of March 31, 2026 S&P Rating Moody’s Rating Fitch Rating
24 100%
75%
50%
25%
O% AAA AA A BBB A-1 NA
■ 03/31/2026 ■ 12/31/2025 ■ 03/31/2026 ■ 12/31/2025
AAA
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

AA A NA
■ 03/31/2026 ■ 12/31/2025
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 7.7% 8.0% 12.0% 32.3% 23.7% 12.3% 4.0% 0.0% 0.0% ICE BofA 1-3 Year US Treasury & Agency Index 0.0% 0.0% 4.0% 57.9% 38.1% 0.0% 0.0% 0.0% 0.0%

DURATION DISTRIBUTION
City of San Rafael | Account #11045 | As of March 31, 2026 Portfolio Compared to the Benchmark
25 20%
0% 0-.25 .25-.5 .5-1 1-2
■ City of San Rafael
2-3 3-4 4-5
■ ICE BofA 1-3 Year US Treasury & Agency Index
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
5-7 7+

INVESTMENT PERFORMANCE
City of San Rafael | Account #11045 | As of March 31, 2026 Total Rate of Return: Inception | 02/01/2023
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception City of San Rafael 0.42% 4.20% 4.91% 4.64% 4.68%
Benchmark 0.29% 3.75% 4.59% 4.05% 4.12%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-3 Year US Treasury & Agency Index 26 6%
4%
2%
0% 3 Months 12 Months 2 Years
Total Return
3 Years 5 Years
■ Benchmark
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
10 Years Since Inception

HISTORICAL AVERAGE PURCHASE YIELD
City of San Rafael | Account #11045 | As of March 31, 2026 Purchase Yield as of 03/31/26 = 4.32%
27 5.00%

4.00%

3.00%

2.00%

1.00%
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

PORTFOLIO CHARACTERISTICS
San Rafael Reporting | Account #11046 | As of March 31, 2026 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.82% 3.98%
Average Market Yield 3.82% 3.98%
Average Quality** AAA AAA
Total Market Value 59,017,282 59,318,906
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 28 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

SECTOR DISTRIBUTION
San Rafael Reporting | Account #11046 | As of March 31, 2026 Sector as a Percentage of Market Value
Sector 03/31/2026 12/31/2025
LAIF 100.00% 100.00%
29 ■ 03/31/2026 ■ 12/31/2025
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

CONSOLIDATED INFORMATION
30 1-,,a CHANDLER " '-- ASSET MANAGEMENT

PORTFOLIO CHARACTERISTICS
San Rafael Cons | Account #11047 | As of March 31, 2026 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 0.98 1.00
Average Modified Duration 0.83 0.86
Average Purchase Yield 4.05% 4.17%
Average Market Yield 3.91% 3.87%
Average Quality** AA AA
Total Market Value 109,909,934 110,009,115
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 31 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

SECTOR DISTRIBUTION
San Rafael Cons | Account #11047 | As of March 31, 2026 Sector as a Percentage of Market Value
Sector 03/31/2026 12/31/2025
LAIF 53.63% 53.96%
US Treasury 16.00% 18.37%
Corporate 12.99% 12.46%
Agency CMBS 5.25% 5.64%
Agency 4.46% 4.47%
ABS 3.79% 3.16%
Money Mkt Fd 1.37% 0.79%
Comm Paper 1.35% --
Supras 1.15% 1.16%
32 75%
50%
25%
0% LAIF US Treasury Corporate AgencyCMBS
■ 03/31/2026
Agency ABS Money Mkt Fd
■ 12/31/2025
,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
Comm Paper Supras

PORTFOLIO HOLDINGS
33 1-,,a CHANDLER " '-- ASSET MANAGEMENT

HOLDINGS REPORT
City of San Rafael | Account #11045 | As of March 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
43815JAC7 HAROT 2023-1 A3 5.04
04/21/2027 11,603.18 02/16/20235.09%
11,601.02
11,602.63
100.12

4.12%
11,616.73

16.24 0.02%

14.10 Aaa/NA
AAA

1.06 0.12
58768PAC8 MBART 2022-1 A3 5.21
08/16/2027 22,357.67 02/15/20235.03%
22,472.95
22,369.24
100.14

4.27%
22,387.85

51.77 0.04%

18.61 Aaa/AAA
NA

1.38 0.14
89239HAD0 TAOT 2022-D A3 5.3 09/15/2027 77,187.06 02/10/2023

4.86%
78,097.63
77,321.03
100.33

4.07%
77,442.78
181.82

0.15%
121.75
Aaa/NA
AAA

1.46 0.26
47800CAC0 JDOT 2023 A3 5.01 11/15/2027 230,300.83 --

3.66%
230,887.90
230,401.05
100.29

4.10%
230,961.33
512.80

0.46%
560.28
Aaa/NA
AAA

1.63 0.29
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 113,028.34 05/17/20245.73%
113,015.12
113,021.83
100.53

4.12%
113,627.05
267.25

0.22%
605.22
Aaa/NA
AAA

1.80 0.42
891941AD8 TAOT 2023-B A3 4.71 02/15/2028 119,832.61 10/03/2023

5.68%
117,459.37
118,816.07
100.29

4.05%
120,176.29
250.85

0.24%
1,360.22
Aaa/NA
AAA

1.88 0.41
05592XAD2 BMWOT 2023-A A3 5.47
02/25/2028 26,015.95 07/11/20235.47%
26,011.34
26,014.05
100.51

4.01%
26,148.14

23.72 0.05%
134.09
NA/AAA
AAA

1.91 0.33
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 276,881.17 12/07/20235.10%
281,023.57
278,511.86
100.87

4.23%
279,287.55
436.09

0.55%
775.69
Aaa/NA
AAA

2.22 0.55
096912AD2 BMWLT 2025-1 A3 4.43
06/26/2028 125,000.00 06/03/20254.82%
124,997.25
124,997.98
100.33

4.16%
125,413.38

92.29 0.25%
415.40
NA/AAA
AAA

2.24 1.06
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 495,000.00 09/07/2023

5.23%
494,862.79
494,932.56
100.54

3.99%
497,685.38
1,135.20

0.98%
2,752.81
NA/AAA
AAA

2.46 0.44
02582JKD1 AMXCA 2023-3 A 5.23 09/15/2026 490,000.00 09/12/2023

5.29%
489,978.10
489,996.65
100.58

3.98%
492,837.59
1,138.98

0.98%
2,840.94
NA/AAA
AAA

0.46 0.44
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 255,000.00 10/08/20254.32%
254,999.29
254,999.40

99.87 4.11%
254,655.75
168.73

0.50%
(343.65)
NA/AAA
AAA

2.49 1.26
05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 300,000.00 02/20/2024

4.88%
301,125.00
300,258.14
100.64

3.98%
301,909.20
664.00

0.60%
1,651.06
Aaa/NA
AAA

0.63 0.60
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 166,919.64 06/04/20245.18%
166,894.29
166,903.99
100.66

4.30%
168,019.31
144.11

0.33%
1,115.31
Aaa/AAA
NA

2.91 0.70
437921AD1 HAROT 252 A3 4.15 10/15/2029 155,000.00 04/29/2025

4.15%
154,982.69
154,986.19
100.07

4.14%
155,101.37
285.89

0.31%
115.18
Aaa/NA
AAA

3.54 1.43
44935XAD7 HART 2025-B A3 4.36 12/17/2029 185,000.00 06/03/2025

4.36%
184,983.30
184,986.28
100.38

4.15%
185,698.01
358.49

0.37%
711.73
NA/AAA
AAA

3.71 1.49
34 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 140,000.00 01/13/20263.97%
139,972.24
139,973.58

99.43 4.24%
139,199.06
244.53

0.28%
(774.52)
Aaa/NA
AAA

3.79 2.04
47787DAD3 JDOT 2026 A3 3.87 08/15/2030 170,000.00 03/10/2026

4.49%
169,969.88
169,970.14

99.41 4.16%
168,990.54
237.58

0.33%
(979.60)
Aaa/NA
AAA

4.38 2.28
89240KAD0 TAOT 2026-A A3 3.86 09/15/2030 200,000.00 01/13/2026

4.13%
199,982.96
199,983.66

99.34 4.22%
198,676.20
343.11

0.39%
(1,307.46)
Aaa/AAA
NA

4.46 2.03
43815CAD0 HAROT 2026-1 A3 3.78
09/23/2030 245,000.00 02/10/20263.03%
244,960.97
244,961.95

99.17 4.20%
242,969.20
257.25

0.48%
(1,992.75)
Aaa/NA
AAA

4.48 2.15
448981AD2 HART 2026-A A3 3.79 02/18/2031 325,000.00 02/10/2026

4.30%
324,978.06
324,978.56

99.15 4.20%
322,252.78
547.44

0.64%
(2,725.79)
NA/AAA
AAA

4.89 2.24
4,133,255.72 100.15 4,135,055.48 8.18% 2.60
Total ABS 4,129,126.46 4.66% 4,129,986.86 4.11% 7,358.13 5,068.62 1.05 AGENCY
3130AWGR5 FEDERAL HOME LOAN BANKS

4.375 06/12/2026 525,000.00 06/28/20234.43%
524,165.25
524,944.30
100.11

3.77%
525,565.95
6,954.43

1.04%
621.65
Aa1/AA+
AA+

0.20 0.20
3133EPSW6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 08/14/2026 560,000.00 08/09/20234.58%
558,712.00
559,841.35
100.22

3.88%
561,211.84
3,290.00

1.11%
1,370.49
Aa1/AA+
AA+

0.37 0.36
3130AXU63 FEDERAL HOME LOAN BANKS

4.625 11/17/2026 500,000.00 12/18/20234.23%
505,325.00
501,151.08
100.54

3.74%
502,709.50
8,607.64

0.99%
1,558.42
Aa1/AA+
AA+

0.63 0.61
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 1,000,000.00 04/24/20244.84% 990,700.00
996,865.07
100.67

3.80%
1,006,672.00
625.00

1.99%
9,806.93
Aa1/AA+
AA+

0.99 0.96
3133ERMB4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 07/23/2027 750,000.00 07/18/20244.26% 749,767.50
749,898.51
100.63

3.75%
754,745.25
6,020.83

1.49%
4,846.74
Aa1/AA+
AA+

1.31 1.26
3133ERNP2 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 08/06/2027 1,000,000.00 08/19/20243.92% 1,002,290.00
1,001,042.26
100.33

3.74%
1,003,331.00
6,111.11

1.99%
2,288.74
Aa1/AA+
AA+

1.35 1.29
3130ATUS4 FEDERAL HOME LOAN BANKS 4.25
12/10/2027 500,000.00 05/15/20233.66%
512,310.00
504,558.17
100.71

3.81%
503,555.50
6,552.08

1.00%
(1,002.67)
Aa1/AA+
AA+

1.70 1.60
4,843,269.75 100.47 4,857,791.04 9.61% 0.99
Total Agency 4,835,000.00 4.30% 4,838,300.73 3.78% 38,161.09 19,490.31 0.95

AGENCY CMBS
35 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137F1G44 FHMS K-065 A2 3.243 04/25/2027 450,000.00 06/08/2023

4.39%
431,736.33
445,197.23

99.19 3.89%
446,357.25
1,216.13

0.88%
1,160.02
Aa1/AA+
AAA

1.07 0.95
3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 346,310.30 04/18/2024

5.06%
327,168.54
339,119.48

98.99 3.91%
342,816.38
899.54

0.68%
3,696.89
Aa1/AA+
AAA

1.24 1.05
3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 240,000.00 06/08/2023

4.34%
229,940.63
236,755.69

98.87 3.99%
237,280.80
648.80

0.47%
525.11
Aaa/AA+
AA+

1.40 1.28
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 482,893.09 06/09/2023

4.41%
460,295.20
475,291.98

98.74 3.97%
476,802.36
1,282.48

0.94%
1,510.38
Aa1/AAA
AA+

1.49 1.39
3137FETN0 FHMS K-073 A2 3.35 01/25/2028 670,000.00 05/24/2023

4.34%
643,932.81
660,051.88

98.74 4.02%
661,535.22
1,870.42

1.31%
1,483.34
Aa1/AA+
AAA

1.82 1.63
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 780,000.00 05/24/2023

4.65%
765,679.69
773,938.96

99.37 4.07%
775,078.98
2,502.50

1.53%
1,140.02
Aa1/AA+
AAA

2.15 1.95
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 350,000.00 11/21/2024

4.53%
342,070.31
344,967.24

99.41 4.08%
347,943.05
1,137.50

0.69%
2,975.81
Aa1/AA+
AAA

2.40 2.22
3137FJZ93 FHMS K-084 A2 3.78 10/25/2028 500,000.00 09/08/2025

3.76%
499,472.66
499,568.11

99.11 4.08%
495,553.00
1,575.00

0.98%
(4,015.11)
Aaa/AA+
AA+

2.57 2.35
3137FK4M5 FHMS K-085 A2 4.06 10/25/2028 300,000.00 02/19/2026

3.69%
302,156.25
302,074.54

99.76 4.08%
299,268.60
1,015.00

0.59%
(2,805.94)
Aaa/AA+
AA+

2.57 2.36
3137FKSH0 FHMS K-086 A2 3.859 11/25/2028 350,000.00 10/23/2025

3.67%
351,257.81
351,080.57

99.27 4.09%
347,452.00
1,125.54

0.69%
(3,628.57)
Aaa/AA+
AA+

2.65 2.43
3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 650,000.00 03/26/2025

4.37%
627,656.25
633,485.05

98.08 4.09%
637,513.50
1,853.58

1.26%
4,028.45
Aa1/AAA
AA+

2.91 2.66
3137FLYV0 FHMS K-092 A2 3.298 04/25/2029 450,000.00 12/11/2025

3.82%
442,195.31
442,883.58

97.64 4.09%
439,393.95
1,236.75

0.87%
(3,489.63)
Aa1/AA+
AAA

3.07 2.80
3137FMTY8 FHMS K-094 A2 2.903 06/25/2029 225,000.00 06/21/2024

4.65%
207,764.65
213,927.65

96.37 4.10%
216,827.78
544.31

0.43%
2,900.12
Aa1/AA+
AAA

3.24 2.96
Total Agency CMBS 5,794,203.39 4.30%
5,631,326.44
5,718,341.97

98.79 4.04%
5,723,822.86
16,907.55

11.32%
5,480.89

2.19 1.99
CASH
CCYUSD Receivable 1,608.53 -- 1,608.53
1,608.53

1.00 1,608.53

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
36 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Cash 1,608.53
1,608.53
1,608.53

1.00 1,608.53

0.00 0.00%

0.00 0.00

0.00 COMMERCIAL
PAPER
60710WHS6 Mizuho Bank, Ltd., New York
Branch 08/26/2026 500,000.00 03/16/20263.90%
491,382.50
492,180.42

98.39 4.02%
491,926.50

0.00 0.97%
(253.92)
P-1/A-1
NA

0.41 0.49
62479MJU8 MUFG Bank, Ltd., New York
Branch 09/28/2026 1,000,000.00 01/26/20263.78%
974,990.00
981,550.00

98.04 3.99%
980,428.00

0.00 1.94%
(1,122.00)
P-1/A-1
NA

0.50 0.58
Total Commercial
Paper 1,500,000.00 3.82%
1,466,372.50
1,473,730.42

98.16 4.00%
1,472,354.50

0.00 2.91%
(1,375.92)

0.47 0.55

CORPORATE
74340XBK6 PROLOGIS LP 3.25 10/01/2026 550,000.00 01/16/2024

4.53%
532,240.50
546,707.21

99.47 4.33%
547,086.65
8,937.50

1.08%
379.44
A2/A
NA

0.50 0.49
63743HFM9

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.8
02/05/2027
550,000.00
01/25/2024

4.75%
550,792.00
550,207.48
100.43

4.27%
552,378.20
4,106.67

1.09%
2,170.72
A2/AA0.85

0.74 857477CL5 STATE STREET CORP 4.993
03/18/2027 525,000.00 03/13/20244.99%
525,000.00
525,000.00
100.68

4.26%
528,592.58
946.59

1.05%
3,592.58
Aa3/A
AA0.960.85
06406RBQ9 BANK OF NEW YORK MELLON
CORP 4.947 04/26/2027 350,000.00 04/19/20235.26%
350,497.00
350,011.34
100.03

4.66%
350,106.75
7,454.85

0.69%

95.41 Aa3/A
AA1.070.07
14913UAL4 CATERPILLAR FINANCIAL SERVICES
CORP 5.0 05/14/2027 550,000.00 05/13/20245.01%
549,818.50
549,932.31
100.97

4.10%
555,337.20
10,465.28

1.10%
5,404.89
A2/A
A+

1.12 1.06
74456QBS4 PUBLIC SERVICE ELECTRICAND
GAS CO 3.0 05/15/2027 337,000.00 04/18/20234.48%
318,673.94
331,956.02

98.71 4.19%
332,650.68
3,819.33

0.66%
694.66
A1/A
NA

1.12 1.08
437076DB5 HOME DEPOT INC 4.875
06/25/2027 600,000.00 06/20/20244.92%
599,208.00
599,674.52
100.96

4.06%
605,787.60
7,800.00

1.20%
6,113.08
A2/A
A

1.24 1.10
532457CP1 ELI LILLY AND CO 4.15 08/14/2027 305,000.00 08/12/2024

4.18%
304,752.95
304,887.19
100.13

4.05%
305,384.00
1,652.51

0.60%
496.80
Aa3/A+
NA

1.37 1.23
24422EXZ7 JOHN DEERE CAPITAL CORP 4.65
01/07/2028 425,000.00 01/06/20254.66%
424,872.50
424,924.64
100.91

4.10%
428,884.93
4,611.25

0.85%
3,960.28
A1/A
A+

1.77 1.67
37 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
89115A2M3 TORONTO-DOMINION BANK 5.156
01/10/2028 575,000.00 07/12/20235.29%
571,929.50
573,785.65
101.27

4.40%
582,305.95
6,670.58

1.15%
8,520.30
A2/AAA1.78

1.66 756109AU8 REALTY INCOME CORP 3.65
01/15/2028 500,000.00 04/10/20234.87%
474,240.00
490,312.23

98.82 4.34%
494,123.00
3,852.78

0.98%
3,810.77
A3/ANA1.79

1.70 06051GGF0 BANK OF AMERICA CORP 3.824
01/20/2028 600,000.00 07/12/20235.89%
567,738.00
592,624.40

99.50 5.06%
597,008.40
4,525.07

1.18%
4,384.01
A1/AAA1.81

0.78 46647PEA0 JPMORGAN CHASE & CO 5.04
01/23/2028 200,000.00 01/17/20244.99%
200,292.00
200,079.13
100.51

4.64%
201,014.40
1,904.00

0.40%
935.27
A1/A
AA1.820.78
06368LGV2 BANK OF MONTREAL 5.203
02/01/2028 600,000.00 09/05/20235.48%
593,520.00
597,295.97
101.50

4.34%
608,998.80
5,203.00

1.20%
11,702.83
A2/AAA1.84

1.65 02665WFX4 AMERICAN HONDA FINANCE
CORP 4.55 03/03/2028 500,000.00 03/06/20254.60%
499,255.00
499,521.07

99.96 4.57%
499,787.50
1,769.44

0.99%
266.43
A3/BBB+
NA

1.93 1.82
00287YDY2 ABBVIE INC 4.65 03/15/2028 305,000.00 02/18/2025

4.70%
304,594.35
304,739.77
100.91

4.16%
307,776.42
630.33

0.61%
3,036.64
A2/ANA1.96

1.77 79466LAQ7 SALESFORCE INC 4.5 03/15/2028 330,000.00 03/12/2026

4.37%
330,800.25
330,778.65
100.03

4.48%
330,085.14
742.50

0.65%
(693.51)
A2/A+
NA

1.96 1.85
90331HPS6 US BANK NA 4.73 05/15/2028 425,000.00 05/12/2025

4.88%
425,000.00
425,000.00
100.36

4.47%
426,545.30
7,594.28

0.84%
1,545.30
A2/A+
A+

2.12 1.06
58933YBH7 MERCK & CO INC 4.05 05/17/2028 130,000.00 05/08/2023

4.07%
129,894.70
129,955.22
100.12

3.99%
130,152.49
1,959.75

0.26%
197.27
Aa3/A+
NA

2.13 1.92
87612EBU9 TARGET CORP 4.35 06/15/2028 180,000.00 06/05/2025

4.35%
179,998.20
179,998.68
100.47

4.12%
180,837.54
2,305.50

0.36%
838.86
A2/A
A

2.21 1.98
61744YAK4 MORGAN STANLEY 3.591
07/22/2028 500,000.00 08/10/20235.87%
465,070.00
483,677.39

98.82 4.14%
494,122.50
3,441.38

0.98%
10,445.11
A1/AA+2.31

1.25 89236TFT7 TOYOTA MOTOR CREDIT CORP

3.65 01/08/2029 600,000.00 01/07/20263.96%
594,768.00
595,164.22

98.44 4.25%
590,638.80
5,049.17

1.17%
(4,525.42)
A1/A+
A+

2.77 2.58
46647PEU6 JPMORGAN CHASE & CO 4.915
01/24/2029 280,000.00 01/16/20254.92%
280,000.00
280,000.00
100.85

4.43%
282,384.76
2,561.26

0.56%
2,384.76
A1/A
AA2.821.71
92826CAY8 VISA INC 3.8 02/12/2029 390,000.00 02/03/2026

3.84%
389,551.50
389,571.14

99.39 4.03%
387,628.41
2,017.17

0.77%
(1,942.73)
Aa3/AANA2.87

2.67 023135DC7 AMAZON.COM INC 4.0
03/13/2029 500,000.00 03/11/20264.02%
499,680.00
499,685.55

99.49 4.18%
497,472.50
1,000.00

0.98%
(2,213.05)
A1/AA
AA2.952.75
713448FX1 PEPSICO INC 4.5 07/17/2029 500,000.00 07/16/2024

4.52%
499,490.00
499,664.00
100.96

4.18%
504,805.50
4,625.00

1.00%
5,141.50
A1/A+
NA

3.30 2.94
38 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 405,000.00 07/21/20254.35%
405,000.00
405,000.00

99.93 4.41%
404,710.83
3,475.36

0.80%
(289.17)
A2/AA3.30

2.15 38141GD27 GOLDMAN SACHS GROUP INC

4.153 10/21/2029 500,000.00 10/15/20254.14%
500,180.00
500,153.39

99.07 4.54%
495,334.50
9,228.89

0.98%
(4,818.89)
A2/BBB+
A

3.56 2.35
06406RCG0 BANK OF NEW YORK MELLON
CORP 4.026 01/22/2030 170,000.00 01/14/20264.09%
170,000.00
170,000.00

99.00 4.36%
168,298.30
1,311.81

0.33%
(1,701.70)
Aa3/A
AA3.812.61
95000U4D2 WELLS FARGO & CO 4.182
01/23/2030 325,000.00 01/15/20264.18%
325,000.00
325,000.00

99.11 4.49%
322,120.50
2,567.28

0.64%
(2,879.50)
A1/BBB+
A+

3.82 2.60
532457CV8 ELI LILLY AND CO 4.75 02/12/2030 300,000.00 02/10/2025

4.75%
300,066.00
300,050.81
101.81

4.24%
305,436.60
1,939.58

0.60%
5,385.79
Aa3/A+
NA

3.87 3.41
69371RT71 PACCAR FINANCIAL CORP 4.55
05/08/2030 545,000.00 05/05/20254.59%
544,155.25
544,306.99
100.67

4.37%
548,655.86
9,850.12

1.09%
4,348.87
A1/A+
NA

4.10 3.64
02079KAW7 ALPHABET INC 4.1 11/15/2030 600,000.00 11/13/2025

4.04%
601,566.00
601,448.09

99.32 4.26%
595,909.80
9,908.33

1.18%
(5,538.29)
Aa2/AA+
NA

4.63 4.10
Total Corporate 14,152,000.00 4.71%
14,007,644.14
14,101,113.06
100.08

4.32%
14,162,362.37
143,926.55

28.02%
61,249.31

2.25 1.82

MONEY MARKET
FUND
31846V807 FIRST AMER:TRS OBG Y 1,498,497.04 --

3.29%
1,498,497.04
1,498,497.04

1.00 3.29%
1,498,497.04

0.00 2.96%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 1,498,497.04 3.29%
1,498,497.04
1,498,497.04

1.00 3.29%
1,498,497.04

0.00 2.96%

0.00 0.00

0.00 SUPRANATIONAL
45950KDD9 INTERNATIONAL FINANCE CORP

4.5 07/13/2028 305,000.00 07/06/20234.53%
304,661.45
304,845.46
101.47

3.82%
309,470.69
2,973.75

0.61%
4,625.23
Aaa/AAA
NA

2.28 2.14
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
650,000.00
12/17/2024

4.32%
637,513.50
640,835.21
100.04

3.86%
650,234.00
11,544.00

1.29%
9,398.79
Aaa/AAA
NA

3.54 3.22
459058LR2

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
295,000.00
03/14/2025

4.20%
293,946.85
294,164.29
100.81

3.90%
297,388.62
371.82

0.59%
3,224.33
Aaa/AAA
NA

3.97 3.63
39 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Supranational 1,250,000.00 4.34%
1,236,121.80
1,239,844.95
100.57

3.86%
1,257,093.31
14,889.57

2.49%
17,248.36

3.34 3.05

US TREASURY
91282CBW0 UNITED STATES TREASURY 0.75
04/30/2026 500,000.00 01/12/20234.46%
443,595.43
498,641.42

99.76 3.70%
498,818.00
1,574.59

0.99%
176.58
Aa1/AA+
AA+

0.08 0.08
9128286X3 UNITED STATES TREASURY 2.125
05/31/2026 500,000.00 01/12/20234.31%
465,958.71
498,346.17

99.72 3.78%
498,623.50
3,561.13

0.99%
277.33
Aa1/AA+
AA+

0.17 0.16
91282CCJ8 UNITED STATES TREASURY 0.875
06/30/2026 500,000.00 01/12/20234.42%
443,595.43
495,987.03

99.29 3.74%
496,457.00
1,099.79

0.98%
469.97
Aa1/AA+
AA+

0.25 0.25
91282CHY0 UNITED STATES TREASURY 4.625
09/15/2026 900,000.00 09/25/20234.81%
895,429.69
899,296.55
100.39

3.75%
903,495.60
1,922.89

1.79%
4,199.05
Aa1/AA+
AA+

0.46 0.45
91282CJC6 UNITED STATES TREASURY 4.625
10/15/2026 500,000.00 10/19/20235.05%
494,218.75
498,956.09
100.45

3.77%
502,261.00
10,673.08

0.99%
3,304.91
Aa1/AA+
AA+

0.54 0.52
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 625,000.00 06/26/20244.50%
627,148.44
625,872.87
100.94

3.82%
630,859.38
8,497.17

1.25%
4,986.51
Aa1/AA+
AA+

1.21 1.15
91282CLG4 UNITED STATES TREASURY 3.75
08/15/2027 650,000.00 06/11/20253.96%
647,207.03
648,237.69

99.88 3.84%
649,187.50
3,030.04

1.28%
949.81
Aa1/AA+
AA+

1.38 1.32
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 750,000.00 12/18/20234.06%
751,669.92
750,661.44
100.41

3.84%
753,076.50

84.53 1.49%
2,415.06
Aa1/AA+
AA+

1.50 1.44
91282CLQ2 UNITED STATES TREASURY 3.875
10/15/2027 500,000.00 11/15/20244.29%
494,394.53
497,030.84
100.06

3.83%
500,312.50
8,942.31

0.99%
3,281.66
Aa1/AA+
AA+

1.54 1.45
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 1,000,000.00 02/06/20233.84%
1,001,445.31
1,000,516.53
100.07

3.83%
1,000,703.00
9,741.02

1.98%
186.47
Aa1/AA+
AA+

1.75 1.66
91282CMF5 UNITED STATES TREASURY 4.25
01/15/2028 750,000.00 01/27/20254.24%
750,292.97
750,177.08
100.71

3.83%
755,302.50
6,691.99

1.49%
5,125.42
Aa1/AA+
AA+

1.79 1.70
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 525,000.00 10/17/20243.91%
519,934.57
521,966.88

99.61 3.81%
522,928.88
6,378.61

1.03%
962.00
Aa1/AA+
AA+

2.17 2.04
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 750,000.00 03/12/20244.22%
743,496.09
746,598.91
100.42

3.80%
753,135.00
7,541.44

1.49%
6,536.09
Aa1/AA+
AA+

2.25 2.11
91282CJA0 UNITED STATES TREASURY 4.625
09/30/2028 500,000.00 10/19/20234.95%
492,968.75
496,447.41
101.91

3.81%
509,570.50

63.18 1.01%
13,123.09
Aa1/AA+
AA+

2.50 2.34
40 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 600,000.00 10/17/20243.92%
596,039.06
597,406.68

99.80 3.83%
598,804.80
5,656.08

1.18%
1,398.12
Aa1/AA+
AA+

2.75 2.56
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 700,000.00 06/11/20253.99%
703,335.94
702,631.74
100.83

3.83%
705,824.00

78.89 1.40%
3,192.26
Aa1/AA+
AA+

3.00 2.80
91282CEM9 UNITED STATES TREASURY 2.875
04/30/2029 750,000.00 09/18/20243.51%
729,931.64
736,593.29

97.22 3.84%
729,141.00
9,053.87

1.44%
(7,452.29)
Aa1/AA+
AA+

3.08 2.88
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 600,000.00 05/21/20254.08%
603,796.88
603,002.07
101.21

3.85%
607,265.40
6,410.22

1.20%
4,263.33
Aa1/AA+
AA+

3.25 2.98
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 650,000.00 09/26/20243.56%
651,955.08
651,356.28

99.23 3.87%
645,023.60
2,048.91

1.28%
(6,332.68)
Aa1/AA+
AA+

3.42 3.17
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 550,000.00 12/09/20253.70%
546,111.33
546,424.66

98.80 3.87%
543,382.95

52.60 1.08%
(3,041.71)
Aa1/AA+
AA+

3.50 3.26
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 600,000.00 12/11/20244.09%
600,820.31
600,601.90
100.82

3.88%
604,921.80
10,392.27

1.20%
4,319.90
Aa1/AA+
AA+

3.59 3.25
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 650,000.00 04/17/20253.90%
652,996.09
652,423.43
100.36

3.90%
652,336.10

71.04 1.29%
(87.33)
Aa1/AA+
AA+

4.00 3.66
91282CGZ8 UNITED STATES TREASURY 3.5
04/30/2030 600,000.00 07/23/20253.91%
589,429.69
590,953.61

98.48 3.91%
590,859.60
8,817.68

1.17%
(94.01)
Aa1/AA+
AA+

4.08 3.71
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 600,000.00 12/09/20253.74%
606,328.13
605,894.11
100.34

3.91%
602,038.80
8,043.96

1.19%
(3,855.31)
Aa1/AA+
AA+

4.17 3.75
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 750,000.00 08/27/20253.74%
754,394.53
753,866.60

99.83 3.92%
748,740.00
4,816.99

1.48%
(5,126.60)
Aa1/AA+
AA+

4.33 3.93
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 750,000.00 09/16/20253.58%
751,347.66
751,201.64

98.77 3.93%
740,800.50
2,364.13

1.47%
(10,401.14)
Aa1/AA+
AA+

4.42 4.02
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 700,000.00 11/10/20253.70%
697,757.81
697,933.87

98.75 3.93%
691,277.30

69.33 1.37%
(6,656.57)
Aa1/AA+
AA+

4.50 4.11
Total US Treasury 17,450,000.00 4.07%
17,255,599.77
17,419,026.77

99.92 3.84%
17,435,146.70
127,677.71

34.50%
16,119.93

2.47 2.29
Total Portfolio 50,610,435.42 4.32%
50,073,695.69
50,420,450.32

96.94 4.00%
50,543,731.82
348,920.61
100.00%
123,281.50

2.13 1.79
Total Market Value +
Accrued 50,892,652.44
41 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

HOLDINGS REPORT
San Rafael Reporting | Account #11046 | As of March 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 567,157.61 -- 567,157.61
567,157.61

1.00 567,157.61

0.00 0.96%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 567,157.61
567,157.61
567,157.61

1.00 567,157.61

0.00 0.96%

0.00 0.00

0.00 LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 58,450,124.06 --3.82%
58,450,124.06
58,450,124.06

1.00 3.82%
58,450,124.06

0.00 99.04%

0.00 NA/NA
NA

0.00 0.00
Total LAIF 58,450,124.06 3.82%
58,450,124.06
58,450,124.06

1.00 3.82%
58,450,124.06

0.00 99.04%

0.00 0.00

0.00 Total Portfolio 59,017,281.67 3.82%
59,017,281.67
59,017,281.67

1.00 3.82%
59,017,281.67

0.00 100.00%

0.00 0.00

0.00 Total Market Value +
Accrued 59,017,281.67
42 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

TRANSACTIONS
43 1-,,a CHANDLER " '-- ASSET MANAGEMENT

TRANSACTION LEDGER
City of San Rafael | Account #11045|01/01/2026 Through 03/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 01/08/2026 89236TFT7 600,000.00

TOYOTA MOTOR
CREDIT CORP 3.65
01/08/2029

99.128 3.96% (594,768.00) 0.00 (594,768.00) 0.00
Purchase 01/21/2026 89240KAD0 200,000.00 TAOT 2026-A A3 3.86 09/15/2030 99.991 4.13% (199,982.96) 0.00 (199,982.96) 0.00 Purchase 01/21/2026 58770YAD3 140,000.00 MBALT 2026-A A3 3.93 01/15/2030 99.980 3.97% (139,972.24) 0.00 (139,972.24) 0.00 Purchase 01/22/2026 06406RCG0 170,000.00

BANK OF NEW YORK
MELLON CORP 4.026
01/22/2030
100.000 4.09% (170,000.00) 0.00 (170,000.00) 0.00
Purchase 01/23/2026 95000U4D2 325,000.00 WELLS FARGO & CO

4.182 01/23/2030 100.000 4.18% (325,000.00) 0.00 (325,000.00) 0.00 Purchase 01/27/2026 62479MJU8 1,000,000.00
MUFG Bank, Ltd.,
New York Branch
09/28/2026

97.499 3.78% (974,990.00) 0.00 (974,990.00) 0.00
Purchase 02/12/2026 92826CAY8 390,000.00 VISA INC 3.8
02/12/2029 99.885 3.84% (389,551.50) 0.00 (389,551.50) 0.00 Purchase 02/18/2026 448981AD2 325,000.00 HART 2026-A A3 3.79 02/18/2031 99.993 4.30% (324,978.06) 0.00 (324,978.06) 0.00 Purchase 02/18/2026 43815CAD0 245,000.00 HAROT 2026-1 A3 3.78 09/23/2030 99.984 3.03% (244,960.97) 0.00 (244,960.97) 0.00 Purchase 02/24/2026 3137FK4M5 300,000.00 FHMS K-085 A2 4.06 10/25/2028 100.719 3.69% (302,156.25) (778.17) (302,934.42) 0.00 Purchase 03/13/2026 023135DC7 500,000.00 AMAZON.COM INC 4.0 03/13/2029 99.936 4.02% (499,680.00) 0.00 (499,680.00) 0.00 Purchase 03/13/2026 79466LAQ7 165,000.00 SALESFORCE INC 4.5 03/15/2028 100.214 4.38% (165,353.10) 0.00 (165,353.10) 0.00 Purchase 03/13/2026 79466LAQ7 165,000.00 SALESFORCE INC 4.5 03/15/2028 100.271 4.35% (165,447.15) 0.00 (165,447.15) 0.00 Purchase 03/17/2026 60710WHS6 500,000.00
Mizuho Bank, Ltd.,
New York Branch
08/26/2026

98.277 3.90% (491,382.50) 0.00 (491,382.50) 0.00
Purchase 03/18/2026 47787DAD3 170,000.00 JDOT 2026 A3 3.87 08/15/2030 99.982 4.49% (169,969.88) 0.00 (169,969.88) 0.00 Total Purchase 5,195,000.00 (5,158,192.61) (778.17) (5,158,970.78) 0.00 44 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

DISPOSITIONS
Maturity 01/15/2026 91282CGE5 (1,000,000.00)

UNITED STATES
TREASURY 3.875
01/15/2026
100.000 4.13% 1,000,000.00 0.00 1,000,000.00 0.00
Maturity 02/28/2026 91282CBQ3 (500,000.00)

UNITED STATES
TREASURY 0.5
02/28/2026
100.000 3.50% 500,000.00 0.00 500,000.00 0.00
Maturity 03/31/2026 91282CKH3 (1,000,000.00)

UNITED STATES
TREASURY 4.5
03/31/2026
100.000 4.96% 1,000,000.00 0.00 1,000,000.00 0.00
Total Maturity (2,500,000.00) 2,500,000.00 0.00 2,500,000.00 0.00 Sale 01/08/2026 89236TDR3 (600,000.00)

TOYOTA MOTOR
CREDIT CORP 3.2
01/11/2027

99.362 4.57% 596,172.00 9,440.00 605,612.00 3,852.09
Sale 01/13/2026 3137BVZ82 (700,000.00) FHMS K-063 A2 3.43 01/25/2027 99.539 4.53% 693,652.23 796.75 694,448.98 3,674.79 Sale 03/12/2026 00440EAV9 (500,000.00) CHUBB INA HOLDINGS LLC 3.35 05/03/2026 99.894 5.09% 499,470.00 6,002.08 505,472.08 600.67 Sale 03/12/2026 17275RBQ4 (550,000.00) CISCO SYSTEMS INC

4.8 02/26/2027 100.792 4.82% 554,356.00 1,173.33 555,529.33 4,434.84 Total Sale (2,350,000.00) 2,343,650.23 17,412.16 2,361,062.39 12,562.39 TOTAL
DISPOSITIONS (4,850,000.00) 4,843,650.23 17,412.16 4,861,062.39 12,562.39 45 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

TRANSACTION LEDGER
San Rafael Reporting | Account #11046|01/01/2026 Through 03/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 01/15/2026 90LAIF$00 448,595.51
Local Agency
Investment Fund State
Pool

1.000 3.93% (448,595.51) 0.00 (448,595.51) 0.00
Total Purchase 448,595.51 (448,595.51) 0.00 (448,595.51) 0.00 TOTAL
ACQUISITIONS 448,595.51 (448,595.51) 0.00 (448,595.51) 0.00

DISPOSITIONS
Sale 02/28/2026 90LAIF$00 (880,137.08)
Local Agency
Investment Fund State
Pool

1.000 3.86% 880,137.08 0.00 880,137.08 0.00
Total Sale (880,137.08) 880,137.08 0.00 880,137.08 0.00 TOTAL
DISPOSITIONS (880,137.08) 880,137.08 0.00 880,137.08 0.00 46 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

IMPORTANT DISCLOSURES
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Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

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LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yieldsrepresent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 47 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-3 Yr US Treasury & Agency
Index
The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 48 ,-._,.. CHANDLER ~ , • • ASSET MANAGEMENT
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.g
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller, Public Works Director
John Thomas, Senior Project Manager
City Manager Approval: __________
TOPIC: SAN RAFAEL CANAL CROSSING PROJECT
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH MARK THOMAS & COMPANY, INC.

TO PROVIDE PRELIMINARY DESIGN AND ENVIRONMENTAL SERVICES FOR CANAL CROSSING PROJECT IN THE AMOUNT NOT TO EXCEED $1,875,000, WHICH INCLUDES $181,500 IN CONTINGENCY FUNDS, AND AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF $300,000 FROM THE CITY GAS TAX FUND (206)
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a Professional Services Agreement with Mark Thomas & Company, Inc. (Mark Thomas) to provide preliminary design and environmental services for the Canal Crossing Project (the “Project”) in the amount not to exceed $1,875,000 which includes $181,500 in contingency funds and authorizing a supplemental budget appropriation in the amount of $300,000 from the City Gas Tax Fund (206).

BACKGROUND:

The Canal Crossing Project aims to provide a non-motorized bicycle and pedestrian crossing bridge between the Canal Neighborhood and destinations north of San Rafael Creek. A new crossing would provide connectivity within a highly developed active transportation network in central Marin County. The bridge project has been identified in multiple planning documents, including the Citywide Bicycle and Pedestrian Plan, Canal Community Based Transportation Plan, and the General Plan/ Downtown Precise Plan.

The feasibility study report will identify and compare potential bridge options, provide a conceptual plan, identify potential environmental impacts, present preliminary engineering considerations, and estimate costs for construction and ongoing operation and maintenance of a movable bridge. The project team will engage with key stakeholders to gather feedback to incorporate into the feasibility analysis and planning process.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
The Project has received funding through the Active Transportation Program (ATP) to perform a feasibility study, environmental assessment, and preliminary design. In addition, if the project is deemed feasible, the City will receive additional funding to support the project's design. When Caltrans authorized the funding, the City had not yet identified an exact location for the bridge. However, in November 2025, the City acquired the property at 620 Canal Street, which is ideally situated for the bridge's southern landing. As part of the acquisition funding, the property was designated as future parkland, and the project scope has been refined to include the development and integration of the bridge and the park.

Due to rising project costs over time, the complexity of bridge options, and the incorporation of the park into the project, staff anticipate a significant gap between current grant funding and project design costs.

The City and design team are committed to pursuing grant opportunities for the combined bridge and park project to close this gap before the design phase begins. To proceed with the feasibility study, which includes environmental and permitting, the City will commit additional funding from the Transportation Authority of Marin (TAM) Measure AA to augment this phase of the Project. The budget for the project will include contingency funds that will allow the City to incorporate the park into the Project to streamline permitting, environmental, and necessary studies. In addition to seeking grant funding for the final design of the full project scope, the city is actively pursuing grant funding for the planning, outreach, and preliminary design of the park elements.

On April 7, 2025, the City Council adopted a resolution authorizing the City Manager to execute a Program Supplement Agreement with the Department of Transportation (Caltrans) for $1,575,000 in Active Transportation Program (ATP) funds for a Feasibility study, Preliminary Engineering, and Environmental (PAED) phase of this Project.

ANALYSIS:

The City released a Request for Proposals (RFP) for this Project on March 7, 2026, and received three proposals from qualified firms. After reviewing the proposals, all firms were invited to participate in a video conference interview hosted by representatives from Public Works, City Managers, and Library and Recreation on April 21, 2026. Selection of the qualified firm was based on criteria specified in the RFP, including, but not limited to, completeness of the proposal, understanding of the project scope of work, relevant experience and success in similar projects, familiarity with state procedures, and experience and quality of the project team.

The selection committee found Mark Thomas and its sub-consultants to be the most qualified consultant team for this Project.

The recommended Professional Services Agreement (PSA) with Mark Thomas will provide professional services associated with the Project, including project management, preliminary engineering and background research, feasibility study, and environmental compliance and permitting. City staff reviewed Mark Thomas’ fee proposal and found it to be complete and within industry standards.

At the time of this Staff Report, the City has only received an obligation from the ATP for the Project Approval and Environmental Document (PA&ED) phase of the Project. Additional obligations for the Plans, Specifications, and Estimates (PS&E) phase of the Project will be completed by the City in accordance with state guidelines. Mark Thomas will complete no PS&E work without the express written approval of the City.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
FISCAL IMPACT:

The recommendations in this staff report will authorize the PSA with Mark Thomas in an amount not to exceed $1,875,000, including contingency funds of $181,500 to complete the preliminary design, feasibility study, and environmental (PA&ED) work for the Project.

Appropriations in the amount of $1,575,000 for the PA&ED phases of the Project were included in the Fiscal Year 2025-26 Budget, approved by City Council on June 2, 2025, as part of the capital improvement program budget (Gas Tax – Fund 206). Funding for the appropriations is being provided through an Active Transportation Program (ATP) grant in the amount of $1,575,000 and does not require a local match. The remaining $300,000 for the PA&ED phases will need to be appropriated from the Measure AA Gas Tax fund balance.

The remaining grant funds for the PS&E phase will be utilized at a later stage, following completion of the PA&ED phases and upon receipt of construction obligation authorization from Caltrans.

OPTIONS:

The City Council has the following options to consider in this matter:

1. Adopt the resolution as presented.

2. Do not adopt the resolution and provide direction to staff.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. Draft Professional Services Agreement with Mark Thomas & Company, Inc.

RESOLUTION NO.

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH MARK THOMAS & COMPANY, INC. TO PROVIDE

PRELIMINARY DESIGN AND ENVIRONMENTAL SERVICES FOR CANAL CROSSING PROJECT IN THE AMOUNT NOT TO EXCEED $1,875,000, WHICH INCLUDES $181,500 IN

CONTINGENCY FUNDS, AND AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF $300,000 FROM THE CITY GAS TAX FUND (206) WHEREAS, the City of San Rafael (“City”) advertised and solicited a Request for Proposals (RFP) in accordance with the City’s Municipal code released on March 7, 2026, for the project entitled:
“San Rafael Canal Crossing Project”
City Project No. C441147210
the Department of Public Works received three proposals; and WHEREAS, staff reviewed the proposals and identified Mark Thomas & Company, Inc. (Mark Thomas) to be the most qualified firm; and
WHEREAS, the cost proposal from Mark Thomas was found to be complete and within industry standards; and
WHEREAS, the project has received funding through the Active Transportation Program (ATP) to perform a preliminary engineering, feasibility study, and environmental (PA&ED) for the project; and
WHEREAS, funding in the amount of $1,575,000 to support the recommended Agreement is provided within the Fiscal Year (FY) 2025-26 budget appropriations (Canal Crossing Project – Gas Tax Fund 206); and
WHEREAS, supplemental budget appropriations are requested to support the remaining costs associated with completing the PA&ED of the Canal Crossing Project, to be funded through the available balance within the Transportation Authority of Marin Measure AA (Gas Tax - Fund 206).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:

1. The City Manager is hereby authorized to execute a Professional Services Agreement with Mark Thomas to provide preliminary design and environmental services for the Canal Crossing Project in the amount not to exceed $1,875,000, in a form approved by the City Attorney and authorizing supplemental budget appropriations from the Gas Tax fund.

2. The Director of Public Works or designee is hereby authorized to take any and all such actions as may be necessary to accomplish the purpose of this resolution.

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_____________________
Lindsay Lara, City Clerk

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 2.h
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Adeel Shaikh, Junior Engineer
April Miller, Public Works Director
City Manager Approval: __________
TOPIC: LARGE TRASH CAPTURE DEVICE INSTALLATION: SR-129 (REDWOOD HIGHWAY) AND SR-143 (ROSSI PUMP STATION) PROJECT
SUBJECT: RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS FOR THE LARGE TRASH CAPTURE DEVICE INSTALLATION: SR-129 (REDWOOD HIGHWAY) AND SR-143 (ROSSI PUMP STATION) PROJECT, CITY PROJECT NO. C441145610 (“PROJECT”); AWARDING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

Staff recommends that the City Council adopt the above-referenced resolution to move forward with construction of the Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project, City Project No. C441145610 (“Project”).

BACKGROUND:

The State Water Resources Control Board (Water Board) requires the City of San Rafael to install, operate, and maintain State-certified Full Capture System devices that capture all trash 5 millimeters or greater in size from defined Priority Land Use (“PLU”) areas. PLU areas include all industrial, commercial, mixed-use, high-density residential, and public transportation station areas.

On August 19, 2024, the City Council authorized the City Manager to enter into a Professional Services Agreement with Schaaf & Wheeler Consulting Civil Engineers (S&W) in the amount of $476,565, and with BKF Engineers (BKF) in the amount of $421,300 to provide design services for large trash capture devices.

On April 20, 2026, the City Council authorized the City Manager to execute a first amendment to the professional services agreement with S&W for additional design services associated with the large trash capture device projects, increasing the total not-to-exceed amount under the agreement to $915,236.

Additionally, a first amendment to the professional services agreement with BKF was executed on April 20, 2026, decreasing the total not-to-exceed amount under the agreement to $288,775.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
On April 6, 2026, the funding agreement between the City and the County of Marin was amended to include $8.76 million in California Department of Transportation (Caltrans) Cooperative Agreement funding for the construction of the large trash capture device projects, including SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station).

ANALYSIS:

The Project plans and specifications were finalized in March 2026. On March 6, 2026, the Project was advertised in accordance with San Rafael’s Municipal Code Chapter 11.50. The plans and specifications, deemed reasonable by the City Engineer, are available at the Department of Public Works.

At the bid opening on April 8, 2026, the following bids were received and read aloud:

Name of Bidder Bid Total
Corcus Construction, Inc $363,850.00
Maggiora & Ghilotti, Inc. $375,555.00
Ghilotti Bros., Inc. $381,000.00
SR Diversified, LLC $425,128.00
CATS 4U INC $507,424.00
W.R. Forde Associates, Inc. $748,350.00
The construction bids were reviewed by Public Works staff, and the low bid of $363,850 from Corcus Construction, Inc was found to be both responsive and responsible.

City staff recommends awarding the construction agreement to Corcus Construction, Inc., in the amount of $363,850 and recommends that the City Council authorize a construction contingency of $36,150, approximately 10%, for a total of $400,000. Staff do not anticipate significant scope changes for the Project; however, the contingency will provide some financial assurance for unforeseen conditions.

The Public Works Director or designee would be authorized to issue any change order to the contract within the total contingency amount. The Construction Agreement (Attachment 2) is in a form approved by the City Attorney.

COMMUNITY OUTREACH:

The bid was publicly advertised through BidExpress. A notice inviting bids was posted in the Marin Independent Journal on March 12, 2026. Future public outreach will include mailing a notice to residents located within the project limits describing the project and its impacts.

ENVIRONMENTAL DETERMINATION:

In May 2025, a notice of exemption (NOE) was filed with the County of Marin and the State Clearinghouse for the Project for categorical exemption based on existing facilities (CEQA Guidelines § 15301).

FISCAL IMPACT:

The recommendation in this staff report will authorize the construction contract with Corcus Construction in an amount not to exceed $400,000.

The City Council approved appropriations for the Project in the amount of $906,710 in the Fiscal Year (FY) 2024-25 Budget and $585,000 in the FY 2025-26 Budget, for a total appropriations amount of $1,491,710 for design and construction of the Project. The FY 2025-26 Budget and carry-over of available unencumbered FY 2024-25 appropriations were approved by the City Council on June 2, 2025, and September 2, 2025, respectively. An additional $238,663 will be reallocated to this Project from the SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Kerner Pump Station Trash Capture project (Project No. C441138710), which no longer needs the funding for completion.

After the reallocation of funds, the Project will have $526,362 available for construction, which is sufficient to cover the costs of the recommended action in this staff report. No additional appropriations are being requested for this construction contract.

OPTIONS:

The City Council has the following options to consider relating to this item:

1. Adopt the resolution as presented.

2. Do not adopt the resolution and provide further direction to staff.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt the above-referenced resolution to move forward with the construction of the Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project, City Project No. C441145610 (“Project”).

ATTACHMENTS:

1. Resolution

2. Draft Formal Construction Contract with Corcus Construction, Inc RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING THE PLANS AND SPECIFICATIONS FOR THE LARGE TRASH CAPTURE DEVICE INSTALLATION: SR-129 (REDWOOD HIGHWAY) AND SR-143 (ROSSI PUMP STATION) PROJECT, CITY PROJECT NO.

C441145610 (“PROJECT”); AWARDING AND AUTHORIZING THE CITY MANAGER TO EXECUTE

THE CONSTRUCTION AGREEMENT WITH CORCUS CONSTRUCTION, INC IN THE AMOUNT OF $363,850, AND AUTHORIZING THE CITY MANAGER TO AMEND THE CONTRACT AMOUNT USING CONTINGENCY FUNDS OF $36,150 FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $400,000 WHEREAS, on the 8th day of April 2026, pursuant to due and legal notice published in the manner provided by law, inviting sealed bids or proposals for the work hereinafter mentioned, as more fully appears from the Affidavit of Publication thereof on file in the office of the City Clerk of the City of San Rafael, California, the City Clerk of said City did publicly open, examine, and declare all sealed bids or proposals for doing the following work in said City, to wit:
“Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project”
City Project No. C441145610
(hereinafter referred to as the “Project”) in accordance with the plans and specifications, therefore, on file in the office of the Department of Public Works; and
WHEREAS, the bid of $363,850 from Corcus Construction, Inc, at the unit prices stated in its bid, was and is the lowest bid for said work and said bidder is the lowest responsible bidder; and WHEREAS, staff has recommended an additional 10% of the bid price for a contingency in the amount of $36,150, resulting in a total not-to-exceed contract amount of $400,000; and WHEREAS, a notice of exemption was filed with the County of Marin and the State Clearinghouse on May 23, 2025, for the Project for categorical exemption pursuant to CEQA Guideline 15301; and WHEREAS, funding in the amount of $1,491,710 has previously been approved for this Project through the fiscal year (FY) 2024-25 and FY 2025-26 budgets; and WHEREAS, an additional $238,663 shall be reallocated to City Project No. C441145610 from the Kerner Pump Station Trash Capture project (Project No. C441138710), which was previously appropriated from the Gas Tax (Fund 206) and the Stormwater Fund (Fund 205) and is no longer needed to complete that project; and
WHEREAS, after the reallocation of funds, the Project has $526,362 of remaining funds available for construction; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:

1. The foregoing recitals are true and correct.

2. The plans and specifications for the Project, which are on file in the Department of Public Works, are hereby approved.

3. The bid of Corcus Construction, Inc is hereby accepted at the unit prices stated in its bid.

4. The City Manager is authorized and directed to execute the contract for the Project, in a form approved by the City Attorney, with Corcus Construction, Inc, for the bid amount stated in its bid, and is authorized to execute any amendment(s) up to the construction contingency amount of $36,150 (approximately 10% of the contract value) for a total not-to-exceed contract amount of $400,000.

5. The Director of Public Works or designee is hereby authorized to take any and all such actions and make changes as may be necessary to accomplish the purpose of this resolution.

I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 18th day of May 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

Lindsay Lara, City Clerk
Large Trash Capture Device Installation 2022 Form CONTRACT C441145610 Page 1
Contract
This public works contract (“Contract”) is entered into by and between the City of San Rafael (“City”) and Corcus Construction (“Contractor”), for work on the Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project (“Project”).

The parties agree as follows:

1. Award of Contract. In response to the Notice Inviting Bids, Contractor has submitted a Bid Proposal to perform the Work to construct the Project. On __________________, City authorized award of this Contract to Contractor for the amount set forth in Section 4, below.

2. Contract Documents. The Contract Documents incorporated into this Contract include and are comprised of all of the documents listed below. The definitions provided in Article 1 of the General Conditions apply to all of the Contract Documents, including this Contract.

2.1 Notice Inviting Bids;

2.2 Instructions to Bidders;

2.3 Addenda, if any;

2.4 Bid Proposal and attachments thereto;

2.5 Contract;

2.6 Payment and Performance Bonds;

2.7 General Conditions;

2.8 Special Conditions;

2.9 Project Plans and Specifications;

2.10 Change Orders, if any;

2.11 Notice of Potential Award;

2.12 Notice to Proceed; and

3. Contractor’s Obligations. Contractor will perform all of the Work required for the Project, as specified in the Contract Documents. Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, supplies, tools, equipment, transportation, onsite facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to diligently prosecute and complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents.

4. Payment. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor $363,850 (“Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with the payment provisions in the General Conditions.

5. Time for Completion. Contractor will fully complete the Work for the Project, meeting all requirements for Final Completion, within 40 working days from the commencement date given in the Notice to Proceed (“Contract Time”). By signing below, Contractor expressly waives any claim for delayed early completion.

6. Liquidated Damages. As further specified in Section 5.4 of the General Conditions, if Contractor fails to complete the Work within the Contract Time, City will assess liquidated damages in the amount of $3,600 per day for each day of unexcused delay in achieving Large Trash Capture Device Installation 2022 Form CONTRACT C441145610 Page 2
Final Completion, and such liquidated damages may be deducted from City’s payments due or to become due to Contractor under this Contract.

7. Labor Code Compliance.

7.1 General. This Contract is subject to all applicable requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages, working hours and workers’ compensation insurance, as further specified in Article 9 of the General Conditions.

7.2 Prevailing Wages. This Project is subject to the prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification or type of worker needed to perform the Work, including employer payments for health and welfare, pension, vacation, apprenticeship and similar purposes. Copies of these prevailing rates are available online at http://www.dir.ca.gov/DLSR.

7.3 DIR Registration. City may not enter into the Contract with a bidder without proof that the bidder and its Subcontractors are registered with the California Department of Industrial Relations to perform public work pursuant to Labor Code § 1725.5, subject to limited legal exceptions.

8. Workers’ Compensation Certification. Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ 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 on this Contract.”

9. Conflicts of Interest. Contractor, its employees, Subcontractors and agents, may not have, maintain or acquire a conflict of interest in relation to this Contract in violation of any City ordinance or requirement, or in violation of any California law, including Government Code § 1090 et seq., or the Political Reform Act, as set forth in Government Code § 81000 et seq. and its accompanying regulations. Any violation of this Section constitutes a material breach of the Contract.

10. Independent Contractor. Contractor is an independent contractor under this Contract and will have control of the Work and the means and methods by which it is performed. Contractor and its Subcontractors are not employees of City and are not entitled to participate in any health, retirement, or any other employee benefits from City.

11. Notice. Any notice, billing, or payment required by or pursuant to the Contract Documents must be made in writing, signed, dated and sent to the other party by personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF file. Notice is deemed effective upon delivery, except that service by U.S. Mail is deemed effective on the second working day after deposit for delivery. Notice for each party must be given as follows:

City:

City of San Rafael
Department of Public Works
111 Morphew Street
San Rafael, CA 94901
Attn: Adeel Shaikh, Junior Engineer
[email protected]
Large Trash Capture Device Installation 2022 Form CONTRACT C441145610 Page 3
Contractor:

Name: Corcus Construction
Address: 1592 Union St, #476
City/State/Zip: San Francisco, CA 94123
Phone: 415-298-4537
Attn: Noel Gallagher
Email: [email protected]

12. General Provisions.

12.1 Assignment and Successors. Contractor may not assign its rights or obligations under this Contract, in part or in whole, without City’s written consent. This Contract is binding on Contractor’s and City’s lawful heirs, successors and permitted assigns.

12.2 Third Party Beneficiaries. There are no intended third party beneficiaries to this Contract.

12.3 Governing Law and Venue. This Contract will be governed by California law and venue will be in the Marin County Superior Court, and no other place. Contractor waives any right it may have pursuant to Code of Civil Procedure § 394, to file a motion to transfer any action arising from or relating to this Contract to a venue outside of Marin County, California.

12.4 Amendment. No amendment or modification of this Contract will be binding unless it is in a writing duly authorized and signed by the parties to this Contract.

12.5 Integration. This Contract and the Contract Documents incorporated herein, including authorized amendments or Change Orders thereto, constitute the final, complete, and exclusive terms of the agreement between City and Contractor.

12.6 Severability. If any provision of the Contract Documents is determined to be illegal, invalid, or unenforceable, in whole or in part, the remaining provisions of the Contract Documents will remain in full force and effect.

12.7 Iran Contracting Act. If the Contract Price exceeds $1,000,000, Contractor certifies, by signing below, that it is not identified on a list created under the Iran Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person engaging in investment activities in Iran, as defined in the Act, or is otherwise expressly exempt under the Act.

12.8 Authorization. Each individual signing below warrants that he or she is authorized to do so by the party that he or she represents, and that this Contract is legally binding on that party. If Contractor is a corporation, signatures from two officers of the corporation are required pursuant to California Corporation Code § 313.

The parties agree to this Contract as witnessed by the signatures below:

Large Trash Capture Device Installation 2022 Form CONTRACT C441145610 Page 4
CITY: Approved as to form:
s/_______________________________ s/__________________________________ PAUL NAVAZIO, Interim City Manager ANDREA VISVESHWARA,
Chief Assistant City Attorney
Date: ___________________________ Date: ______________________________ Attest:
s/_______________________________
LINDSAY LARA, City Clerk
Date: ___________________________
CONTRACTOR: ___________________________________________________ Business Name
s/_______________________________ Seal:
_________________________________
Name, Title
Date: ____________________________
Second Signature (See Section 12.8):
s/_______________________________
_________________________________
Name, Title
Date: ____________________________
___________________________________________________
Contractor’s California License Number(s) and Expiration Date(s)

END OF CONTRACT
General Info
Total:
$363,850.00
Number
Large Trash Capture Devices: SR-129
(Redwood Highway) and SR-143 (Rossi Pump
Station)
Deadline
04/08/2026 03:00 PM PDT
Vendor
Corcus Construction
Submitted
04/08/2026 02:29 PM PDT
Signed by
Noel Gallagher Account Holder Noel
Gallagher
Opened
04/08/2026 03:01 PM PDT By
[email protected]
Description
The project aims to install trash capture devices at two locations in San Rafael: Redwood Highway (near Las Gallinas Ave) and Rossi Pump Station.

Engineer's Estimate: $412,000
Allows zero unit prices and labor
No
Allows negative unit prices and labor
No

ATTACHMENT LIST
Plans.pdf (11.3 MB)
Specifications and Contract Documents.pdf (7.25 MB)
Addendum #01.pdf (2.15 MB)
Addendum #02.pdf (2.05 MB)

BID PROPOSAL
(“Bidder”) *
Corcus Construction, Inc.
hereby submits this Bid Proposal to the City of San Rafael (“City”) for the above-referenced project (“Project”) in response to the Notice Inviting Bids and in accordance with the Contract Documents referenced in the Notice.

Page 1 of 8 ends

1. Base Bid. Bidder proposes to perform and fully complete the Work for the Project as specified in the Contract Documents, within the time required for full completion of the Work, including all labor, materials, supplies, and equipment and all other direct or indirect costs including, but not limited to, taxes, insurance and all overhead for the following price (“Base Bid”):
$: *
$363,500.00

2. Addenda. Bidder agrees that it has confirmed receipt of or access to, and reviewed, all addenda issued for this Bid. Bidder waives any claims it might have against the City based on its failure to receive, access, or review any addenda for any reason. Bidder specifically acknowledges receipt of the following addenda (click "+" to add addenda. Type "N/A" if no addenda have been issued):

Addendum #: *
1 Addendum Date: *
4/2/2026

3. Bidder’s Certifications and Warranties. By signing and submitting this Bid Proposal, Bidder certifies and warrants the following:

3.1 Examination of Contract Documents. Bidder has thoroughly examined the Contract Documents and represents that, to the best of Bidder’s knowledge, there are no errors, omissions, or discrepancies in the Contract Documents, subject to the limitations of Public Contract Code§ 1104.

3.2 Examination of Project Site. Bidder has had the opportunity to examine the Project site and local conditions at the Project location.

3.3 Bidder Responsibility. Bidder is a responsible bidder, with the necessary ability, capacity, experience, skill, qualifications, workforce, equipment, and resources to perform or cause the Work to be performed in accordance with the

Page 2 of 8 ends

Contract Documents and within the Contract Time.

3.4 Responsibility for Bid. Bidder has carefully reviewed this Bid Proposal and is solely responsible for any errors or omissions contained in its completed Bid. All statements and information provided in this Bid Proposal and enclosures are true and correct to the best of Bidder’s knowledge.

3.5 Nondiscrimination. In preparing this Bid, the Bidder has not engaged in discrimination against any prospective or present employee or Subcontractor on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status.

3.6 Iran Contracting Act. If the Contract Price exceeds $1,000,000, Bidder is not identified on a list created under the Iran Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person engaging in investment activities in Iran, as defined in the Act, or is otherwise expressly exempt under the Act.

4. Award of Contract. By signing and submitting this Bid Proposal, Bidder agrees that if Bidder is awarded the Contract for the Project, within ten days following issuance of the Notice of Award to Bidder, Bidder will do all of the following:

4.1 Execute Contract. Enter into the Contract with City in accordance with the terms of this Bid Proposal, by signing and submitting to City the Contract prepared by City using the form included with the Contract Documents;

4.2 Submit Required Bonds. Submit to City a payment bond and a performance bond, each for 100% of the Contract Price, using the bond forms provided and in accordance with the requirements of the Contract Documents; and

4.3 Insurance Requirements. Submit to City the insurance certificate(s) and endorsement(s) as required by the Contract Documents.

This Bid Proposal is hereby submitted on [Date] *
4/2/2026
s/ *
Noel Gallagher
Name and Title *
Noel Gallagher - Vice President
s/ *
Thomas Breen

Page 3 of 8 ends

Name and Title *
Thomas Breen - President
Company Name *
Corcus Construction
License #, Expiration Date, and Class *
1107281, 7/31/2027, Class A
Address *
1592 Union St, #476
DIR Registration # *
1001090381
City, State, Zip *
San Francisco, CA 94123
Phone *
(415) 298-4537
Contact Name *
Noel Gallagher
Contact Email *
[email protected]

END OF BID PROPOSAL

BID SCHEDULE - DIRECTIONS
This Bid Schedule must be completed electronically and included with the Electronic Bid Proposal. Pricing must be provided for each Bid Item as indicated. The lump sum or unit cost for each item must be inclusive of all costs, whether direct or indirect, including profit and overhead. The sum of all amounts entered in the “Extended Total Amount” column must be identical to the Base Bid price entered in Section 1 of the Bid Proposal form.

AL = Allowance LF = Linear Foot CF = Cubic Feet LS = Lump Sum CY = Cubic Yard SF = Square Feet EA = Each TON = Ton (2000lbs)
LB = Pounds

Page 4 of 8 ends

BID SCHEDULE
$363,850.00
Bid Item No. Item
Description Est Qty. Unit Unit Cost Extension
1 MOBILIZATION &

DEMOBILIZATIO
N (10%)

1.00 LS $36,000.00 $36,000.00
2 CONSTRUCTION
SITE

MANAGEMENT
(2%)

1.00 LS $7,200.00 $7,200.00
3 WATER

POLLUTION

CONTROL

1.00 LS $5,000.00 $5,000.00
4 DEWATERING
AND

STORMWATER

MANAGEMENT

10.00 DAY $350.00 $3,500.00
5 SIGNS AND

TRAFFIC

CONTROL

1.00 LS $9,000.00 $9,000.00
6 SITE

PREPARATION,

CLEARING &

GRUBBING

1.00 LS $14,500.00 $14,500.00
7 EXCAVATION &
REMOVAL 21.00 CY $250.00 $5,250.00
8 ROCK RIP RAP 4.00 CY $850.00 $3,400.00
9 CONCRETE PAD 1.00 LS $55,000.00 $55,000.00
10 CONCRETE
WEIR 1.00 LS $6,500.00 $6,500.00
11 18"-DIAMETER X
15' LONG

RADIAL SCREEN

2.00 EA $30,000.00 $60,000.00
12 FLAT PANEL
SCREENS 1.00 LS $85,000.00 $85,000.00
13 STRUCTURAL
SUPPORT 1.00 LS $65,000.00 $65,000.00
Total: $363,850.00

Page 5 of 8 ends

Bid Item No. Item
Description Est Qty. Unit Unit Cost Extension
SYSTEM
14 LANDSCAPE
IMPROVEMENTS 1.00 LS $8,500.00 $8,500.00
Total: $363,850.00

SUBCONTRACTOR LIST - INSTRUCTIONS
For each Subcontractor that will perform a portion of the Work in an amount in excess of one-half of 1% of the bidder’s total Contract Price,[1] the bidder must list a description of the Work, the name of the Subcontractor, its California contractor license number, the location of its place of business, its DIR registration number, and the portion of the Work that the Subcontractor is performing based on a percentage of the Base Bid price. [1] For street or highway construction this requirement applies to any subcontract of $10,000 or more.

SUBCONTRACTOR LIST
Description Of Work Subcontractor Name California Contractor License Number
Rebar Install Camblin Steel 218839
Location Of Business Dir Reg No. Percent Of Work
Roseville, CA 1000003852 2.2

NON-COLLUSION DECLARATION

TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID
The undersigned declares:

Page 6 of 8 ends

I am the *
Vice-President
of: *
Corcus Construction, Inc.
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 directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or to refrain from bidding. 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.

This declaration is intended to comply with California Public Contract Code § 7106 and Title 23 U.S.C § 112.

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], *
4/2/2026
[city] *
San Francisco
[state] *
California
✓ I agree that my digital or electronic signature applies to this form
*
Name *
Noel Gallagher
Bid Security
As a guarantee that, if awarded the Contract, Bidder will perform its obligations under Section 4 above, Bidder is enclosing bid security in the amount of ten percent of its maximum bid amount in one of the following forms (select one). Upload a scan of the paper bid security.

Page 7 of 8 ends

Within ten calendar days following City’s issuance of the Notice of Award to the apparent low bidder, the bidder must submit original hardcopies of the payment and performance bonds to City as specified in the Contract Documents using the bond forms included in the Contract Documents.

Guarantee Method *
Paper Bid Security, Cashier's
Check, or Certified Check:

Paper Bid Security, Cashier's Check, or Certified Check:

Confirmation: *
A bid security, using the Bid Security form included with the Contract Documents, payable to City and executed by a surety licensed to do business in the State of California.

REQUIRED DOCUMENTS LIST
Name Omission Terms Submitted
File
Paper Bid Security, Certified Check, or Cashier's
Check
Uploaded Copy/Scan
I am verifying my bid security electronically. Bid Bond Scan - Corcus.pdf
1 Required Document

Page 8 of 8 ends

Large Trash Capture Device Installation 2022 Form PAYMENT BOND C441145610 Page 5
Payment Bond
The City of San Rafael (“City”) and Corcus Construction (“Contractor”) have entered into a contract for work on the Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project (“Project”). The Contract is incorporated by reference into this Payment Bond (“Bond”).

1. General. Under this Bond, Contractor as principal and ____________________________, its surety (“Surety”), are bound to City as obligee in an amount not less than $_________________, under California Civil Code § 9550 et seq., to ensure payment to authorized claimants. This Bond is binding on the respective successors, assigns, owners, heirs, or executors of Surety and Contractor.

2. Surety’s Obligation. If Contractor or any of its Subcontractors fails to pay a person authorized in California Civil Code § 9100 to assert a claim against a payment bond, any amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Contract, or any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of Contractor and its Subcontractors under California Unemployment Insurance Code § 13020 with respect to the work and labor, then Surety will pay the obligation.

3. Beneficiaries. This Bond inures to the benefit of any of the persons named in California Civil Code § 9100, so as to give a right of action to those persons or their assigns in any suit brought upon this Bond. Contractor must promptly provide a copy of this Bond upon request by any person with legal rights under this Bond.

4. Duration. If Contractor promptly makes payment of all sums for all labor, materials, and equipment furnished for use in the performance of the Work required by the Contract, in conformance with the time requirements set forth in the Contract and as required by California law, Surety’s obligations under this Bond will be null and void. Otherwise, Surety’s obligations will remain in full force and effect.

5. Waivers. Surety waives any requirement to be notified of alterations to the Contract or extensions of time for performance of the Work under the Contract. Surety waives the provisions of Civil Code §§ 2819 and 2845. City waives the requirement of a new bond for any supplemental contract under Civil Code § 9550. Any notice to Surety may be given in the manner specified in the Contract and delivered or transmitted to Surety as follows:

Attn: _____________________________________________________ Address: _________________________________________________ City/State/Zip: _____________________________________________ Phone: ___________________________________________________ Email: ___________________________________________________

6. Law and Venue. This Bond will be governed by California law, and venue for any dispute pursuant to this Bond will be in the Marin County Superior Court, and no other place.

Surety will be responsible for City’s attorneys’ fees and costs in any action to enforce the provisions of this Bond.
[Signatures are on the following page.]
Large Trash Capture Device Installation 2022 Form PAYMENT BOND C441145610 Page 6

7. Effective Date; Execution. This Bond is entered into and is effective on _____________.

SURETY:
___________________________________
Business Name
s/__________________________________ ______________________________ Date
___________________________________
Name, Title
(Attach Acknowledgment with Notary Seal and Power of Attorney) CONTRACTOR:
___________________________________
Business Name
s/__________________________________ ______________________________ Date
___________________________________
Name, Title
APPROVED BY CITY:
s/ __________________________________ ______________________________ ROBERT F. EPSTEIN, City Attorney Date

END OF PAYMENT BOND
Large Trash Capture Device Installation 2022 Form PERFORMANCE BOND C441145610 Page 7
Performance Bond
The City of San Rafael (“City”) and Corcus Construction (“Contractor”) have entered into a contract for work on the Large Trash Capture Device Installation: SR-129 (Redwood Highway) and SR-143 (Rossi Pump Station) Project (“Project”). The Contract is incorporated by reference into this Performance Bond (“Bond”).

1. General. Under this Bond, Contractor as principal and ___________________________, its surety (“Surety”), are bound to City as obligee for an amount not less than $__________________ to ensure Contractor’s faithful performance of its obligations under the Contract. This Bond is binding on the respective successors, assigns, owners, heirs, or executors of Surety and Contractor.

2. Surety’s Obligations. Surety’s obligations are co-extensive with Contractor’s obligations under the Contract. If Contractor fully performs its obligations under the Contract, including its warranty obligations under the Contract, Surety’s obligations under this Bond will become null and void. Otherwise, Surety’s obligations will remain in full force and effect.

3. Waiver. Surety waives any requirement to be notified of and further consents to any alterations to the Contract made under the applicable provisions of the Contract Documents, including changes to the scope of Work or extensions of time for performance of Work under the Contract. Surety waives the provisions of Civil Code §§ 2819 and 2845.

4. Application of Contract Balance. Upon making a demand on this Bond for completion of the Work prior to acceptance of the Project, City will make the Contract Balance available to Surety for completion of the Work under the Contract. For purposes of this provision, the Contract Balance is defined as the total amount payable by City to Contractor as the Contract Price minus amounts already paid to Contractor, and minus any liquidated damages, credits, or backcharges to which City is entitled under the terms of the Contract.

5. Contractor Default. Upon written notification from City of Contractor’s termination for default under Article 13 of the Contract General Conditions, time being of the essence, Surety must act within the time specified in Article 13 to remedy the default through one of the following courses of action:

5.1 Arrange for completion of the Work under the Contract by Contractor, with City’s consent, but only if Contractor is in default solely due to its financial inability to complete the Work;

5.2 Arrange for completion of the Work under the Contract by a qualified contractor acceptable to City, and secured by performance and payment bonds issued by an admitted surety as required by the Contract Documents, at Surety’s expense; or

5.3 Waive its right to complete the Work under the Contract and reimburse City the amount of City’s costs to have the remaining Work completed.

6. Surety Default. If Surety defaults on its obligations under the Bond, City will be entitled to recover all costs it incurs due to Surety’s default, including legal, design professional, or delay costs.

7. Notice. Any notice to Surety may be given in the manner specified in the Contract and sent to Surety as follows:

Large Trash Capture Device Installation 2022 Form PERFORMANCE BOND C441145610 Page 8
Attn: _____________________________________________________ Address: _________________________________________________ City/State/Zip: _____________________________________________ Phone: ___________________________________________________ Fax: _____________________________________________________ Email: ___________________________________________________

8. Law and Venue. This Bond will be governed by California law, and venue for any dispute pursuant to this Bond will be in the Marin County Superior Court, and no other place.

Surety will be responsible for City’s attorneys’ fees and costs in any action to enforce the provisions of this Bond.

9. Effective Date; Execution. This Bond is entered into and effective on ______________________.

END OF PERFORMANCE BOND
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General Conditions
Article 1 - Definitions
Definitions. The following definitions apply to all of the Contract Documents unless otherwise indicated, e.g., additional definitions that apply solely to the Specifications or other technical documents. Defined terms and titles of documents are capitalized in the Contract Documents, with the exception of the following (in any tense or form): “day,” “furnish,” “including,” “install,” “work day” or “working day.”
Allowance means a specific amount that must be included in the Bid Proposal for a specified purpose.

Article, as used in these General Conditions, means a numbered Article of the General Conditions, unless otherwise indicated by the context.

Change Order means a written document duly approved and executed by City, which changes the scope of Work, the Contract Price, or the Contract Time.

City means the municipality which has entered into the Contract with Contractor for performance of the Work, acting through its City Council, officers, employees, City Engineer, and any other authorized representatives.

City Engineer means the City Engineer for City and his or her authorized delegee(s).

Claim means a separate demand by Contractor for a change in the Contract Time or Contract Price, that has previously been submitted to City in accordance with the requirements of the Contract Documents, and which has been rejected by City, in whole or in part; or a written demand by Contractor objecting to the amount of Final Payment.

Contract means the signed agreement between City and Contractor for performing the Work required for the Project, and all documents expressly incorporated therein.

Contract Documents means, collectively, all of the documents listed as such in Section 2 of the Contract, including the Notice Inviting Bids; the Instructions to Bidders; addenda, if any; the Bid Proposal, and attachments thereto; the Contract; the Notice of Potential Award and Notice to Proceed; the payment and performance bonds; the General Conditions; the Special Conditions; the Project Plans and Specifications; any Change Orders; and any other documents which are clearly and unambiguously made part of the Contract Documents. The Contract Documents do not include documents provided “For Reference Only,” or documents that are intended solely to provide information regarding existing conditions.

Contract Price means the total compensation to be paid to Contractor for performance of the Work, as set forth in the Contract and as may be amended by Change Order or adjusted for an Allowance. The Contract Price is not subject to adjustment due to inflation or due to the increased cost of labor, material, supplies or equipment following submission of the Bid Proposal.

Contract Time means the time specified for complete performance of the Work, as set forth in the Contract and as may be amended by Change Order.

Contractor means the individual, partnership, corporation, or joint-venture that has signed the Contract with City to perform the Work.

Day means a calendar day unless otherwise specified.

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Design Professional means the licensed individual(s) or firm(s) retained by City to provide architectural, engineering, or electrical engineering design services for the Project. If no Design Professional has been retained for this Project, any reference to Design Professional is deemed to refer to the Engineer.

DIR means the California Department of Industrial Relations.

Drawings has the same meaning as Plans.

Engineer means the City Engineer for the City of San Rafael and his or her authorized delegees.

Excusable Delay is defined in Section 5.3(B), Excusable Delay.

Extra Work means new or unforeseen work added to the Project, as determined by the Engineer in his or her sole discretion, including Work that was not part of or incidental to the scope of the Work when the Contractor’s bid was submitted; Work that is substantially different from the Work as described in the Contract Documents at bid time; or Work that results from a substantially differing and unforeseeable condition.

Final Completion means Contractor has fully completed all of the Work required by the Contract Documents to the City’s satisfaction, including all punch list items and any required commissioning or training, and has provided the City with all required submittals, including the instructions and manuals, product warranties, and as-built drawings.

Final Payment means payment to Contractor of the unpaid Contract Price, including release of undisputed retention, less amounts withheld or deducted pursuant to the Contract Documents.

Furnish means to purchase and deliver for the Project.

Government Code Claim means a claim submitted pursuant to California Government Code § 900 et seq.

Hazardous Materials means any substance or material identified now or in the future as hazardous under any Laws, or any other substance or material that may be considered hazardous or otherwise subject to Laws governing handling, disposal, or cleanup.

Including, whether or not capitalized, means “including, but not limited to,” unless the context clearly requires otherwise.

Inspector means the individual(s) or firm(s) retained or employed by City to inspect the workmanship, materials, and manner of construction of the Project and its components to ensure compliance with the Contract Documents and all Laws.

Install means to fix in place for materials, and to fix in place and connect for equipment.

Laws means all applicable local, state, and federal laws, regulations, rules, codes, ordinances, permits, orders, and the like enacted or imposed by or under the auspices of any governmental entity with jurisdiction over any of the Work or any performance of the Work, including health and safety requirements.

Non-Excusable Delay is defined in Section 5.3(D), Non-Excusable Delay.

Plans means the City-provided plans, drawings, details, or graphical depictions of the Project requirements, but does not include Shop Drawings.

Project means the public works project referenced in the Contract.

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Project Manager means the individual designated by City to oversee and manage the Project on City’s behalf and may include his or her authorized delegee(s) when the Project Manager is unavailable. If no Project Manager has been designated for this Project, any reference to Project Manager is deemed to refer to the Engineer.

Recoverable Costs is defined in Section 5.3(F), Recoverable Costs.

Request for Information or RFI means Contractor’s written request for information about the Contract Documents, the Work or the Project, submitted to City in the manner and format specified by City.

Section, when capitalized in these General Conditions, means a numbered section or subsection of the General Conditions, unless the context clearly indicates otherwise.

Shop Drawings means drawings, plan details or other graphical depictions prepared by or on behalf of Contractor, and subject to City acceptance, which are intended to provide details for fabrication, installation, and the like, of items required by or shown in the Plans or Specifications.

Specialty Work means Work that must be performed by a specialized Subcontractor with the specified license or other special certification, and that the Contractor is not qualified to selfperform.

Specifications means the technical, text specifications describing the Project requirements, which are prepared for and incorporated into the Contract by or on behalf of City, and does not include the Contract, General Conditions or Special Conditions.

Subcontractor means an individual, partnership, corporation, or joint-venture retained by Contractor directly or indirectly through a subcontract to perform a specific portion of the Work.

The term Subcontractor applies to subcontractors of all tiers, unless otherwise indicated by the context. A third party such as a utility performing related work on the Project is not a Subcontractor, even if Contractor must coordinate its Work with the third party.

Technical Specifications has the same meaning as Specifications.

Work means all of the construction and services necessary for or incidental to completing the Project in conformance with the requirements of the Contract Documents.

Work Day or Working Day, whether or not capitalized, means a weekday when the City is open for business, and does not include holidays observed by the City.

Worksite means the place or places where the Work is performed, which includes, but may extend beyond the Project site, including separate locations for staging, storage, or fabrication.

Article 2 - Roles and Responsibilities

2.1 City.
(A) City Council. The City Council has final authority in all matters affecting the Project, except to the extent it has delegated authority to the Engineer. (B) Engineer. The Engineer, acting within the authority conferred by the City Council, is responsible for administration of the Project on behalf of City, including authority to provide directions to the Design Professional and to Contractor to ensure proper and timely completion of the Project. The Engineer’s decisions are final and Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 12
conclusive within the scope of his or her authority, including interpretation of the Contract Documents.
(C) Project Manager. The Project Manager assigned to the Project will be the primary point of contact for the Contractor and will serve as City’s representative for daily administration of the Project on behalf of City. Unless otherwise specified, all of Contractor’s communications to City (in any form) will go to or through the Project Manager. City reserves the right to reassign the Project Manager role at any time or to delegate duties to additional City representatives, without prior notice to or consent of Contractor.
(D) Design Professional. The Design Professional is responsible for the overall design of the Project and, to the extent authorized by City, may act on City’s behalf to ensure performance of the Work in compliance with the Plans and Specifications, including any design changes authorized by Change Order. The Design Professional’s duties may include review of Contractor’s submittals, visits to any Worksite, inspecting the Work, evaluating test and inspection results, and participation in Project-related meetings, including any pre-construction conference, weekly meetings, and coordination meetings. The Design Professional’s interpretation of the Plans or Specifications is final and conclusive.

2.2 Contractor.
(A) General. Contractor must provide all labor, materials, supplies, equipment, services, and incidentals necessary to perform and timely complete the Work in strict accordance with the Contract Documents, and in an economical and efficient manner in the best interests of City, and with minimal inconvenience to the public. (B) Responsibility for the Work and Risk of Loss. Contractor is responsible for supervising and directing all aspects of the Work to facilitate the efficient and timely completion of the Work. Contractor is solely responsible for and required to exercise full control over the Work, including the construction means, methods, techniques, sequences, procedures, safety precautions and programs, and coordination of all portions of the Work with that of all other contractors and Subcontractors, except to the extent that the Contract Documents provide other specific instructions. Contractor’s responsibilities extend to any plan, method or sequence suggested, but not required by City or specified in the Contract Documents. From the date of commencement of the Work until either the date on which City formally accepts the Project or the effective date of termination of the Contract, whichever is later, Contractor bears all risks of injury or damage to the Work and the materials and equipment delivered to any Worksite, by any cause including fire, earthquake, wind, weather, vandalism or theft. (C) Project Administration. Contractor must provide sufficient and competent administration, staff, and skilled workforce necessary to perform and timely complete the Work in accordance with the Contract Documents. Before starting the Work, Contractor must designate in writing and provide complete contact information, including telephone numbers and email address, for the officer or employee in Contractor’s organization who is to serve as Contractor’s primary representative for the Project, and who has authority to act on Contractor’s behalf. A Subcontractor may not serve as Contractor’s primary representative.
(D) On-Site Superintendent. Contractor must, at all times during performance of the Work, provide a qualified and competent full-time superintendent acceptable to City, and assistants as necessary, who must be physically present at the Project site while any aspect of the Work is being performed. The superintendent must have full authority to act and communicate on behalf of Contractor, and Contractor will be bound by the Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 13
superintendent’s communications to City. City’s approval of the superintendent is required before the Work commences. If City is not satisfied with the superintendent’s performance, City may request a qualified replacement of the superintendent. Failure to comply may result in temporary suspension of the Work, at Contractor’s sole expense and with no extension of Contract Time, until an approved superintendent is physically present to supervise the Work. Contractor must provide written notice to City, as soon as practicable, before replacing the superintendent.
(E) Standards. Contractor must, at all times, ensure that the Work is performed in an efficient, skillful manner following best practices and in full compliance with the Contract Documents and Laws and applicable manufacturer’s recommendations.

Contractor has a material and ongoing obligation to provide true and complete information, to the best of its knowledge, with respect to all records, documents, or communications pertaining to the Project, including oral or written reports, statements, certifications, Change Order requests, or Claims.
(F) Meetings. Contractor, its project manager, superintendent and any primary Subcontractors requested by City, must attend a pre-construction conference, if requested by City, as well as weekly Project progress meetings scheduled with City. If applicable, Contractor may also be required to participate in coordination meetings with other parties relating to other work being performed on or near the Project site or in relation to the Project, including work or activities performed by City, other contractors, or other utility owners.
(G) Construction Records. Contractor will maintain up-to-date, thorough, legible, and dated daily job reports, which document all significant activity on the Project for each day that Work is performed on the Project. The daily report for each day must include the number of workers at the Project site; primary Work activities; major deliveries; problems encountered, including injuries, if any; weather and site conditions; and delays, if any.

Contractor will take date and time-stamped photographs to document general progress of the Project, including site conditions prior to construction activities, before and after photographs at offset trench laterals, existing improvements and utilities, damage and restoration. Contractor will maintain copies of all subcontracts, Project-related correspondence with Subcontractors, and records of meetings with Subcontractors. Upon request by the City, Contractor will permit review of and/or provide copies of any of these construction records.
(H) Responsible Party. Contractor is solely responsible to City for the acts or omissions of any Subcontractors, or any other party or parties performing portions of the Work or providing equipment, materials or services for or on behalf of Contractor or the Subcontractors. Upon City’s written request, Contractor must promptly and permanently remove from the Project, at no cost to City, any employee or Subcontractor or employee of a Subcontractor who the Engineer has determined to be incompetent, intemperate or disorderly, or who has failed or refused to perform the Work as required under the Contract Documents.
(I) Correction of Defects. Contractor must promptly correct, at Contractor’s sole expense, any Work that is determined by City to be deficient or defective in any way, including workmanship, materials, parts or equipment. Workmanship, materials, parts or equipment that do not conform to the requirements under the Plans, Specifications and every other Contract Document, as determined by City, will be considered defective and subject to rejection. Contractor must also promptly correct, at Contractor’s sole expense, any Work performed beyond the lines and grades shown on the Plans or established by City, and any Extra Work performed without City’s prior written approval. If Contractor fails to correct or to take reasonable steps toward correcting defective Work within five days following notice from City, or within the time specified in City’s notice to correct, City Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 14
may elect to have the defective Work corrected by its own forces or by a third party, in which case the cost of correction will be deducted from the Contract Price. If City elects to correct defective Work due to Contractor’s failure or refusal to do so, City or its agents will have the right to take possession of and use any equipment, supplies, or materials available at the Project site or any Worksite on City property, in order to effectuate the correction, at no extra cost to City. Contractor’s warranty obligations under Section 11.2, Warranty, will not be waived nor limited by City’s actions to correct defective Work under these circumstances. Alternatively, City may elect to retain defective Work, and deduct the difference in value, as determined by the Engineer, from payments otherwise due to Contractor. This paragraph applies to any defective Work performed by Contractor during the one-year warranty period under Section 11.2.
(J) Contractor’s Records. Contractor must maintain all of its records relating to the Project in any form, including paper documents, photos, videos, electronic records, approved samples, and the construction records required pursuant to paragraph (G), above. Project records subject to this provision include complete Project cost records and records relating to preparation of Contractor’s bid, including estimates, take-offs, and price quotes or bids.
(1) Contractor’s cost records must include all supporting documentation, including original receipts, invoices, and payroll records, evidencing its direct costs to perform the Work, including, but not limited to, costs for labor, materials and equipment. Each cost record should include, at a minimum, a description of the expenditure with references to the applicable requirements of the Contract Documents, the amount actually paid, the date of payment, and whether the expenditure is part of the original Contract Price, related to an executed Change Order, or otherwise categorized by Contractor as Extra Work. Contractor’s failure to comply with this provision as to any claimed cost operates as a waiver of any rights to recover the claimed cost.
(2) Contractor must continue to maintain its Project-related records in an organized manner for a period of five years after City’s acceptance of the Project or following Contract termination, whichever occurs first. Subject to prior notice to Contractor, City is entitled to inspect or audit any of Contractor’s records relating to the Project during Contractor’s normal business hours. The record-keeping requirements set forth in this subsection 2.2(J) will survive expiration or termination of the Contract.
(K) Copies of Project Documents. Contractor and its Subcontractors must keep copies, at the Project site, of all Work-related documents, including the Contract, permit(s), Plans, Specifications, Addenda, Contract amendments, Change Orders, RFIs and RFI responses, Shop Drawings, as-built drawings, schedules, daily records, testing and inspection reports or results, and any related written interpretations. These documents must be available to City for reference at all times during construction of the Project.

2.3 Subcontractors.
(A) General. All Work which is not performed by Contractor with its own forces must be performed by Subcontractors. City reserves the right to approve or reject any and all Subcontractors proposed to perform the Work, for reasons including the subcontractor’s poor reputation, lack of relevant experience, financial instability, and lack of technical ability or adequate trained workforce. Each Subcontractor must obtain a City business license before performing any Work.

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(B) Contractual Obligations. Contractor must require each Subcontractor to comply with the provisions of the Contract Documents as they apply to the Subcontractor’s portion(s) of the Work, including the generally applicable terms of the Contract Documents, and to likewise bind their subcontractors. Contractor will provide that the rights that each Subcontractor may have against any manufacturer or supplier for breach of warranty or guarantee relating to items provided by the Subcontractor for the Project, will be assigned to City. Nothing in these Contract Documents creates a contractual relationship between a Subcontractor and City, but City is deemed to be a third-party beneficiary of the contract between Contractor and each Subcontractor. (C) Termination. If the Contract is terminated, each Subcontractor’s agreement must be assigned by Contractor to City, subject to the prior rights of any surety, but only if and to the extent that City accepts, in writing, the assignment by written notification, and assumes all rights and obligations of Contractor pursuant to each such subcontract agreement.
(D) Substitution of Subcontractor. If Contractor requests substitution of a listed Subcontractor under Public Contract Code § 4107, Contractor is solely responsible for all costs City incurs in responding to the request, including legal fees and costs to conduct a hearing, and any increased subcontract cost to perform the Work that was to be performed by the listed Subcontractor. If City determines that a Subcontractor is unacceptable to City based on the Subcontractor’s failure to satisfactorily perform its Work, or for any of the grounds for substitution listed in Public Contract Code § 4107(a), City may request removal of the Subcontractor from the Project. Upon receipt of a written request from City to remove a Subcontractor pursuant to this paragraph, Contractor will immediately remove the Subcontractor from the Project and, at no further cost to City, will either (1) self-perform the remaining Work to the extent that Contractor is duly licensed and qualified to do so, or (2) substitute a Subcontractor that is acceptable to City, in compliance with Public Contract Code § 4107, as applicable.

2.4 Coordination of Work.
(A) Concurrent Work. City reserves the right to perform, have performed, or permit performance of other work on or adjacent to the Project site while the Work is being performed for the Project. Contractor is responsible for coordinating its Work with other work being performed on or adjacent to the Project site, including by any utility companies or agencies, and must avoid hindering, delaying, or interfering with the work of other contractors, individuals, or entities, and must ensure safe and reasonable site access and use as required or authorized by City. To the full extent permitted by law, Contractor must hold harmless and indemnify City against any and all claims arising from or related to Contractor’s avoidable, negligent, or willful hindrance of, delay to, or interference with the work of any utility company or agency or another contractor or subcontractor.
(B) Coordination. If Contractor’s Work will connect or interface with work performed by others, Contractor is responsible for independently measuring and visually inspecting such work to ensure a correct connection and interface. Contractor is responsible for any failure by Contractor or its Subcontractors to confirm measurements before proceeding with connecting Work. Before proceeding with any portion of the Work affected by the construction or operations of others, Contractor must give the Project Manager prompt written notification of any defects Contractor discovers which will prevent the proper execution of the Work. Failure to give notice of any known or reasonably discoverable defects will be deemed acknowledgement by Contractor that the work of others is not defective and will not prevent the proper execution of the Work. Contractor must also promptly notify City if work performed by others, including work or activities performed by City’s own forces, is operating to hinder, delay, or interfere with Contractor’s timely Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 16
performance of the Work. City reserves the right to backcharge Contractor for any additional costs incurred due to Contractor’s failure to comply with the requirements in this Section 2.4.

2.5 Submittals. Unless otherwise specified, Contractor must submit to the Engineer for review and acceptance, all schedules, Shop Drawings, samples, product data, and similar submittals required by the Contract Documents, or upon request by the Engineer.

Unless otherwise specified, all submittals, including Requests for Information, are subject to the general provisions of this Section, as well as specific submittal requirements that may be included elsewhere in the Contract Documents, including the Special Conditions or Specifications. The Engineer may require submission of a submittal schedule at or before a pre-construction conference, as may be specified in the Notice to Proceed. (A) General. Contractor is responsible for ensuring that its submittals are accurate and conform to the Contract Documents.
(B) Time and Manner of Submission. Contractor must ensure that its submittals are prepared and delivered in a manner consistent with the current City-accepted schedule for the Work and within the applicable time specified in the Contract Documents, or if no time is specified, in such time and sequence so as not to delay the performance of the Work or completion of the Project.
(C) Required Contents. Each submittal must include the Project name and contract number, Contractor’s name and address, the name and address of any Subcontractor or supplier involved with the submittal, the date, and references to applicable Specification section(s) and/or drawing and detail number(s).
(D) Required Corrections. If corrections are required, Contractor must promptly make and submit any required corrections as specified in full conformance with the requirements of this Section, or other requirements that apply to that submittal. (E) Effect of Review and Acceptance. Review and acceptance of a submittal by City will not relieve Contractor from complying with the requirements of the Contract Documents. Contractor is responsible for any errors in any submittal, and review or acceptance of a submittal by City is not an assumption of risk or liability by City. (F) Enforcement. Any Work performed or any material furnished, installed, fabricated or used without City’s prior acceptance of a required submittal is performed or provided at Contractor’s risk, and Contractor may be required to bear the costs incident thereto, including the cost of removing and replacing such Work, repairs to other affected portions of the Work or material, and the cost of additional time or services required of City, including costs for the Design Professional, Project Manager, or Inspector. (G) Excessive RFIs. A RFI will be considered excessive or unnecessary if City determines that the explanation or response to the RFI is clearly and unambiguously discernable from the Contract Documents. City’s costs to review and respond to excessive or unnecessary RFIs may be deducted from payments otherwise due to Contractor.

2.6 Shop Drawings. When Shop Drawings are required by the Specifications or requested by the Engineer, they must be prepared according to best practices at Contractor’s expense. The Shop Drawings must be of a size and scale to clearly show all necessary details. Unless otherwise specified by City, Shop Drawings must be provided to the Engineer for review and acceptance at least 30 days before the Work will be performed.

If City requires changes, the corrected Shop Drawings must be resubmitted to the Engineer for review within the time specified by the Engineer. For all Project components Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 17
requiring Shop Drawings, Contractor will not furnish materials or perform any Work until the Shop Drawings for those components are accepted by City. Contractor is responsible for any errors or omissions in the Shop Drawings, shop fits and field corrections; any deviations from the Contract Documents; and for the results obtained by the use of Shop Drawings. Acceptance of Shop Drawings by City does not relieve Contractor of Contractor’s responsibility.

2.7 Access to Work. Contractor must afford prompt and safe access to any Worksite by City and its employees, agents, or consultants authorized by City; and upon request by City, Contractor must promptly arrange for City representatives to visit or inspect manufacturing sites or fabrication facilities for items to be incorporated into the Work.

2.8 Personnel. Contractor and its Subcontractors must employ only competent and skillful personnel to perform the Work. Contractor and its Subcontractor’s supervisors, security or safety personnel, and employees who have unescorted access to the Project site must possess proficiency in English sufficient to read, understand, receive, and implement oral or written communications or instructions relating to their respective job functions, including safety and security requirements. Upon written notification from the Engineer, Contractor and its Subcontractors must immediately discharge any personnel who are incompetent, disorderly, disruptive, threatening, abusive, or profane, or otherwise refuse or fail to comply with the requirements of the Contract Documents or Laws, including Laws pertaining to health and safety. Any such discharged personnel may not be reemployed or permitted on the Project in any capacity without City’s prior written consent.

Article 3 - Contract Documents

3.1 Interpretation of Contract Documents.
(A) Plans and Specifications. The Plans and Specifications included in the Contract Documents are complementary. If Work is shown on one but not on the other, Contractor must perform the Work as though fully described on both, consistent with the Contract Documents and reasonably inferable from them as being necessary to produce the indicated results. The Plans and Specifications are deemed to include and require everything necessary and reasonably incidental to completion of the Work, whether or not particularly mentioned or shown. Contractor must perform all Work and services and supply all things reasonably related to and inferable from the Contract Documents. In the event of a conflict between the Plans and Specifications, the Specifications will control, unless the drawing(s) at issue are dated later than the Specification(s) at issue. Detailed drawings take precedence over general drawings, and large-scale drawings take precedence over smaller scale drawings. Any arrangement or division of the Plans and Specifications into sections is for convenience and is not intended to limit the Work required by separate trades. A conclusion presented in the Plans or Specifications is only a recommendation. Actual locations and depths must be determined by Contractor’s field investigation. Contractor may request access to underlying or background information in City’s possession that is necessary for Contractor to form its own conclusions. (B) Duty to Notify and Seek Direction. If Contractor becomes aware of a changed condition in the Project, or of any ambiguity, conflict, inconsistency, discrepancy, omission, or error in the Contract Documents, including the Plans or Specifications, Contractor must promptly submit a Request for Information to the Engineer and wait for a response from City before proceeding further with the related Work. The RFI must notify City of the issue and request clarification, interpretation or direction. The Engineer’s clarification, interpretation or direction will be final and binding on Contractor. If Contractor proceeds with the related Work before obtaining City’s response, Contractor will be responsible for any resulting costs, including the cost of correcting any incorrect or Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 18
defective Work that results. Timely submission of a clear and complete RFI is essential to avoiding delay. Delay resulting from Contractor’s failure to submit a timely and complete RFI to the Engineer is Non-Excusable Delay. If Contractor believes that City’s response to an RFI justifies a change to the Contract Price or Contract Time, Contractor must perform the Work as directed, but may submit a timely Change Order request in accordance with the Contract Documents. (See Article 5 and 6.) (C) Figures and Dimensions. Figures control over scaled dimensions. (D) Technical or Trade Terms. Any terms that have well-known technical or trade meanings will be interpreted in accordance with those meanings, unless otherwise specifically defined in the Contract Documents.
(E) Measurements. Contractor must verify all relevant measurements in the Contract Documents and at the Project site before ordering any material or performing any Work, and will be responsible for the correctness of those measurements or for costs that could have been avoided by independently verifying measurements. (F) Compliance with Laws. The Contract Documents are intended to comply with Laws and will be interpreted to comply with Laws.

3.2 Order of Precedence. Information included in one Contract Document but not in another will not be considered a conflict or inconsistency. Unless otherwise specified in the Special Conditions, in case of any conflict or inconsistency among the Contract Documents, the following order of precedence will apply, beginning from highest to lowest, with the most recent version taking precedent over an earlier version:
(A) Change Orders;
(B) Addenda;
(C) Contract;
(D) Notice to Proceed;
(E) Attachment B – Federal Contract Requirements (only if used); (F) Special Conditions;
(G) General Conditions;
(H) Payment and Performance Bonds;
(I) Specifications;
(J) Plans;
(K) Notice of Potential Award;
(L) Notice Inviting Bids;
(M) Attachment A – Federal Bidding Requirements (only if used); (N) Instructions to Bidders;
(O) Contractor’s Bid Proposal and attachments;
(P) the City’s standard specifications, as applicable; and (Q) Any generic documents prepared by and on behalf of a third party, that were not prepared specifically for this Project, such as the Caltrans Standard Specifications or Caltrans Special Provisions.

3.3 Caltrans Standard Specifications. Any reference to or incorporation of the Standard Specifications of the State of California, Department of Transportation (“Caltrans”), including “Standard Specifications,” “Caltrans Specifications,” “State Specifications,” or “CSS,” means the most current edition of Caltrans’ Standard Specifications, unless otherwise specified (“Caltrans Standard Specifications”), including the most current amendments as of the date that Contractor’s bid was submitted for this Project. The following provisions apply to use of or reference to the Caltrans Standard Specifications or Special Provisions:

Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 19
(A) Limitations. The “General Provisions” of the Caltrans Standard Specifications, i.e., sections 1 through 9, do not apply to these Contract Documents with the exception of any specific provisions, if any, which are expressly stated to apply to these Contract Documents.
(B) Conflicts or Inconsistencies. If there is a conflict or inconsistency between any provision in the Caltrans Standard Specifications or Special Provisions and a provision of these Contract Documents, as determined by City, the provision in the Contract Documents will govern.
(C) Meanings. Terms used in the Caltrans Standard Specifications or Special Provisions are to be interpreted as follows:
(1) Any reference to the “Engineer” is deemed to mean the City Engineer. (2) Any reference to the “Special Provisions” is deemed to mean the Special Conditions, unless the Caltrans Special Provisions are expressly included in the Contract Documents listed in Section 2 of the Contract. (3) Any reference to the “Department” or “State” is deemed to mean City.

3.4 For Reference Only. Contractor is responsible for the careful review of any document, study, or report provided by City or appended to the Contract Documents solely for informational purposes and identified as “For Reference Only.” Nothing in any document, study, or report so appended and identified is intended to supplement, alter, or void any provision of the Contract Documents. Contractor is advised that City or its representatives may be guided by information or recommendations included in such reference documents, particularly when making determinations as to the acceptability of proposed materials, methods, or changes in the Work. Any record drawings or similar final or accepted drawings or maps that are not part of the Contract Documents are deemed to be For Reference Only. The provisions of the Contract Documents are not modified by any perceived or actual conflict with provisions in any document that is provided For Reference Only.

3.5 Current Versions. Unless otherwise specified by City, any reference to standard specifications, technical specifications, or any City or state codes or regulations means the latest specification, code or regulation in effect at the time the Contract is signed.

3.6 Conformed Copies. If City prepares a conformed set of the Contract Documents following award of the Contract, it will provide Contractor with two hard copy (paper) sets and one copy of the electronic file in PDF format. It is Contractor’s responsibility to ensure that all Subcontractors, including fabricators, are provided with the conformed set of the Contract Documents at Contractor’s sole expense.

3.7 Ownership. No portion of the Contract Documents may be used for any purpose other than construction of the Project, without prior written consent from City. Contractor is deemed to have conveyed the copyright in any designs, drawings, specifications, Shop Drawings, or other documents (in paper or electronic form) developed by Contractor for the Project, and City will retain all rights to such works, including the right to possession.

Article 4 - Bonds, Indemnity, and Insurance

4.1 Payment and Performance Bonds. Within ten days following issuance of the Notice of Potential Award, Contractor is required to provide a payment bond and a performance bond, each in the penal sum of not less than 100% of the Contract Price, and each Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 20
executed by Contractor and its surety using the bond forms included with the Contract Documents.
(A) Surety. Each bond must be issued and executed by a surety admitted in California. If an issuing surety cancels the bond or becomes insolvent, within seven days following written notice from City, Contractor must substitute a surety acceptable to City.

If Contractor fails to substitute an acceptable surety within the specified time, City may, at its sole discretion, withhold payment from Contractor until the surety is replaced to City’s satisfaction, or terminate the Contract for default.
(B) Supplemental Bonds for Increase in Contract Price. If the Contract Price increases during construction by five percent or more over the original Contract Price, Contractor must provide supplemental or replacement bonds within ten days of written notice from City pursuant to this Section, covering 100% of the increased Contract Price and using the bond forms included with the Contract Documents.

4.2 Indemnity. To the fullest extent permitted by law, Contractor must indemnify, defend, and hold harmless City, its Council, officers, officials, employees, agents, volunteers, and consultants (individually, an “Indemnitee,” and collectively the “Indemnitees”) from and against any and all liability, loss, damage, claims, causes of action, demands, charges, fines, costs, and expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in bidding or performing the Work or in failing to comply with any obligation of Contractor under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. This indemnity requirement applies to any Liability arising from alleged defects in the content or manner of submission of Contractor’s bid for the Contract.

Contractor’s failure or refusal to timely accept a tender of defense pursuant to this Contract will be deemed a material breach of the Contract. City will timely notify Contractor upon receipt of any third-party claim relating to the Contract, as required by Public Contract Code § 9201. Contractor waives any right to express or implied indemnity against any Indemnitee. Contractor’s indemnity obligations under this Contract will survive the expiration or any early termination of the Contract.

4.3 Insurance. No later than ten days following issuance of the Notice of Potential Award, Contractor must procure and provide proof of the insurance coverage required by this Section in the form of certificates and endorsements acceptable to City. The required insurance must cover the activities of Contractor and its Subcontractors relating to or arising from the performance of the Work, and must remain in full force and effect at all times during the period covered by the Contract, through the date of City’s acceptance of the Project. All required insurance must be issued by a company licensed to do business in the State of California, and each such insurer must have an A.M. Best’s financial strength rating of “A” or better and a financial size rating of “VIII” or better. If Contractor fails to provide any of the required coverage in full compliance with the requirements of the Contract Documents, City may, at its sole discretion, purchase such coverage at Contractor’s expense and deduct the cost from payments due to Contractor, or terminate the Contract for default. The procurement of the required insurance will not be construed to limit Contractor’s liability under this Contract or to fulfill Contractor’s indemnification obligations under this Contract.
(A) Policies and Limits. The following insurance policies and limits are required for this Contract, unless otherwise specified in the Special Conditions:
(1) Commercial General Liability (“CGL”) Insurance: The CGL insurance policy must be issued on an occurrence basis, written on a comprehensive general Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 21
liability form, and must include coverage for liability arising from Contractor’s or its Subcontractor’s acts or omissions in the performance of the Work, including contractor’s protected coverage, contractual liability, products and completed operations, and broad form property damage, with limits of at least $2,000,000 per occurrence and at least $4,000,000 general aggregate. The CGL insurance coverage may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or umbrella policies, provided each such policy complies with the requirements set forth in this Section, including required endorsements. (2) Automobile Liability Insurance: The automobile liability insurance policy must provide coverage of at least $2,000,000 combined single-limit per accident for bodily injury, death, or property damage, including hired and non-owned auto liability.
(3) Workers’ Compensation Insurance and Employer’s Liability: The workers’ compensation and employer’s liability insurance policy must comply with the requirements of the California Labor Code, providing coverage of at least $1,000,000 or as otherwise required by the statute. If Contractor is self-insured, Contractor must provide its Certificate of Permission to Self-Insure, duly authorized by the DIR.
(4) Pollution Liability Insurance: The pollution liability insurance policy must be issued on an occurrence basis, providing coverage of at least $2,000,000 for all loss arising out of claims for bodily injury, death, property damage, or environmental damage caused by pollution conditions resulting from the Work. (5) Builder’s Risk Insurance: The builder’s risk insurance policy must be issued on an occurrence basis, for all-risk or “all perils” coverage on a 100% completed value basis on the insurable portion of the Project for the benefit of City. (B) Notice. Each certificate of insurance must state that the coverage afforded by the policy or policies will not be reduced, cancelled or allowed to expire without at least 30 days written notice to City, unless due to non-payment of premiums, in which case ten days written notice must be made to City.
(C) Waiver of Subrogation. Each required policy must include an endorsement providing that the carrier will waive any right of subrogation it may have against City. (D) Required Endorsements. The CGL policy, automobile liability policy, pollution liability policy, and builder’s risk policy must include the following specific endorsements:
(1) The City, including its Council, officials, officers, employees, agents, volunteers and consultants (collectively, “Additional Insured”) must be named as an additional insured for all liability arising out of the operations by or on behalf of the named insured, and the policy must protect the Additional Insured against any and all liability for personal injury, death or property damage or destruction arising directly or indirectly in the performance of the Contract. The additional insured endorsement must be provided using ISO form CG 20 10 11 85 or an equivalent form approved by the City.
(2) The inclusion of more than one insured will not operate to impair the rights of one insured against another, and the coverages afforded will apply as though separate policies have been issued to each insured.

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(3) The insurance provided by Contractor is primary and no insurance held or owned by any Additional Insured may be called upon to contribute to a loss. (4) This policy does not exclude explosion, collapse, underground excavation hazard, or removal of lateral support.
(E) Contractor’s Responsibilities. This Section 4.3 establishes the minimum requirements for Contractor’s insurance coverage in relation to this Project, but is not intended to limit Contractor’s ability to procure additional or greater coverage. Contractor is responsible for its own risk assessment and needs and is encouraged to consult its insurance provider to determine what coverage it may wish to carry beyond the minimum requirements of this Section. Contractor is solely responsible for the cost of its insurance coverage, including premium payments, deductibles, or self-insured retentions, and no Additional Insured will be responsible or liable for any of the cost of Contractor’s insurance coverage.
(F) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions that apply to the required insurance (collectively, “deductibles”) in excess of $100,000 are subject to approval by the City’s Risk Manager, acting in his or her sole discretion, and must be declared by Contractor when it submits its certificates of insurance and endorsements pursuant to this Section 4.3. If the City’s Risk Manager determines that the deductibles are unacceptably high, at City’s option, Contractor must either reduce or eliminate the deductibles as they apply to City and all required Additional Insured; or must provide a financial guarantee, to City’s satisfaction, guaranteeing payment of losses and related investigation, claim administration, and legal expenses. (G) Subcontractors. Contractor must ensure that each Subcontractor is required to maintain the same insurance coverage required under this Section 4.3, with respect to its performance of Work on the Project, including those requirements related to the Additional Insureds and waiver of subrogation, but excluding pollution liability or builder’s risk insurance unless otherwise specified in the Special Conditions. A Subcontractor may be eligible for reduced insurance coverage or limits, but only to the extent approved in writing in advance by the City’s Risk Manager. Contractor must confirm that each Subcontractor has complied with these insurance requirements before the Subcontractor is permitted to begin Work on the Project. Upon request by the City, Contractor must provide certificates and endorsements submitted by each Subcontractor to prove compliance with this requirement. The insurance requirements for Subcontractors do not replace or limit the Contractor’s insurance obligations.

Article 5 - Contract Time

5.1 Time is of the Essence. Time is of the essence in Contractor’s performance and completion of the Work, and Contractor must diligently prosecute the Work and complete it within the Contract Time.
(A) General. Contractor must commence the Work on the date indicated in the Notice to Proceed and must fully complete the Work in strict compliance with all requirements of the Contract Documents and within the Contract Time. Contractor may not begin performing the Work before the date specified in the Notice to Proceed. (B) Authorization. Contractor is not entitled to compensation or credit for any Work performed before the date specified in the Notice to Proceed, with the exception of any schedules, submittals, or other requirements, if any, that must be provided or performed before issuance of the Notice to Proceed.

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(C) Rate of Progress. Contractor and its Subcontractors must, at all times, provide workers, materials, and equipment sufficient to maintain the rate of progress necessary to ensure full completion of the Work within the Contract Time. If City determines that Contractor is failing to prosecute the Work at a sufficient rate of progress, City may, in its sole discretion, direct Contractor to provide additional workers, materials, or equipment, or to work additional hours or days without additional cost to City, in order to achieve a rate of progress satisfactory to City. If Contractor fails to comply with City’s directive in this regard, City may, at Contractor’s expense, separately contract for additional workers, materials, or equipment or use City’s own forces to achieve the necessary rate of progress. Alternatively, City may terminate the Contract based on Contractor’s default.

5.2 Schedule Requirements. Contractor must prepare all schedules using standard, commercial scheduling software acceptable to the Engineer, and must provide the schedules in electronic and paper form as requested by the Engineer. In addition to the general scheduling requirements set forth below, Contractor must also comply with any scheduling requirements included in the Special Conditions or in the Technical Specifications.
(A) Baseline (As-Planned) Schedule. Within ten calendar days following City’s issuance of the Notice to Proceed (or as otherwise specified in the Notice to Proceed), Contractor must submit to City for review and acceptance a baseline (as-planned) schedule using critical path methodology showing in detail how Contractor plans to perform and fully complete the Work within the Contract Time, including labor, equipment, materials and fabricated items. The baseline schedule must show the order of the major items of Work and the dates of start and completion of each item, including when the materials and equipment will be procured. The schedule must also include the work of all trades, reflecting anticipated labor or crew hours and equipment loading for the construction activities, and must be sufficiently comprehensive and detailed to enable progress to be monitored on a day-by-day basis. For each activity, the baseline schedule must be dated, provided in the format specified in the Contract Documents or as required by City, and must include, at a minimum, a description of the activity, the start and completion dates of the activity, and the duration of the activity. (1) Specialized Materials Ordering. Within five calendar days following issuance of the Notice to Proceed, Contractor must order any specialized material or equipment for the Work that is not readily available from material suppliers.

Contractor must also retain documentation of the purchase order date(s). (B) City’s Review of Schedules. City will review and may note exceptions to the baseline schedule, and to the progress schedules submitted as required below, to assure completion of the Work within the Contract Time. Contractor is solely responsible for resolving any exceptions noted in a schedule and, within seven days, must correct the schedule to address the exceptions. City’s review or acceptance of Contractor’s schedules will not operate to waive or limit Contractor’s duty to complete the Project within the Contract Time, nor to waive or limit City’s right to assess liquidated damages for Contractor’s unexcused failure to do so.
(C) Progress Schedules. After City accepts the final baseline schedule with no exceptions, Contractor must submit an updated progress schedule and three-week lookahead schedule, in the format specified by City, for review and acceptance with each application for a progress payment, or when otherwise specified by City, until completion of the Work. The updated progress schedule must: show how the actual progress of the Work as constructed to date compares to the baseline schedule; reflect any proposed changes in the construction schedule or method of operations, including to achieve Project milestones within the Contract Time; and identify any actual or potential impacts Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 24
to the critical path. Contractor must also submit periodic reports to City of any changes in the projected material or equipment delivery dates for the Project. (1) Float. The progress schedule must show early and late completion dates for each task. The number of days between those dates will be designated as the “float.” Any float belongs to the Project and may be allocated by the Engineer to best serve timely completion of the Project.
(2) Failure to Submit Schedule. Reliable, up-to-date schedules are essential to efficient and cost-effective administration of the Project and timely completion. If Contractor fails to submit a schedule within the time periods specified in this Section, or submits a schedule to which City has noted exceptions that are not corrected, City may withhold up to ten percent from payment(s) otherwise due to Contractor until the exceptions are resolved, the schedule is corrected and resubmitted, and City has accepted the schedule. In addition, Contractor’s failure to comply with the schedule requirements in this Section 5.2 will be deemed a material default and a waiver of any claims for Excusable Delay or loss of productivity arising during any period when Contractor is out of compliance, subject only to the limits of Public Contract Code § 7102. (D) Recovery Schedule. If City determines that the Work is more than one week behind schedule, within seven days following written notice of such determination, Contractor must submit a recovery schedule, showing how Contractor intends to perform and complete the Work within the Contract Time, based on actual progress to date. (E) Effect of Acceptance. Contractor and its Subcontractors must perform the Work in accordance with the most current City-accepted schedule unless otherwise directed by City. City’s acceptance of a schedule does not operate to extend the time for completion of the Work or any component of the Work, and will not affect City’s right to assess liquidated damages for Contractor’s unexcused delay in completing the Work within the Contract Time.
(F) Posting. Contractor must at all times prominently post a copy of the most current City-accepted progress or recovery schedule in its on-site office. (G) Reservation of Rights. City reserves the right to direct the sequence in which the Work must be performed or to make changes in the sequence of the Work in order to facilitate the performance of work by City or others, or to facilitate City’s use of its property. The Contract Time or Contract Price may be adjusted to the extent such changes in sequence actually increase or decrease Contractor’s time or cost to perform the Work.
(H) Authorized Working Days and Times. Contractor is limited to working Monday through Friday, excluding holidays, during City’s normal business hours, except as provided in the Special Conditions or as authorized in writing by City. City reserves the right to charge Contractor for additional costs incurred by City due to Work performed on days or during hours not expressly authorized in the Contract Documents, including reimbursement of costs incurred for inspection, testing, and construction management services.

5.3 Delay and Extensions of Contract Time.
(A) Notice of Delay. If Contractor becomes aware of any actual or potential delay affecting the critical path, Contractor must promptly notify the Engineer in writing, regardless of the nature or cause of the delay, so that City has a reasonable opportunity to mitigate or avoid the delay.

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(B) Excusable Delay. The Contract Time may be extended if Contractor encounters “Excusable Delay,” which is an unavoidable delay in completing the Work within the Contract Time due to causes completely beyond Contractor’s control, and which Contractor could not have avoided or mitigated through reasonable care, planning, foresight, and diligence, provided that Contractor is otherwise fully performing its obligations under the Contract Documents. Grounds for Excusable Delay may include fire, natural disasters including earthquake or unusually severe weather, acts of terror or vandalism, epidemic, unforeseeable adverse government actions, unforeseeable actions of third parties, encountering unforeseeable hazardous materials, unforeseeable site conditions, or suspension for convenience under Article 13. The Contract Time will not be extended based on circumstances which will not unavoidably delay completing the Work within the Contract Time based on critical path analysis. (C) Weather Delays. A “Weather Delay Day” is a Working Day during which Contractor and its forces, including Subcontractors, are unable to perform more than 40% of the critical path Work scheduled for that day due to adverse weather conditions which impair the ability to safely or effectively perform the scheduled critical path Work that day.

Adverse weather conditions may include rain, saturated soil, and Project site clean-up required due to adverse weather. Determination of what constitutes critical path Work scheduled for that day will be based on the most current, City-approved schedule.

Contractor will be entitled to a non-compensable extension of the Contract Time for each Weather Delay Day in excess of the normal Weather Delay Days within a given month as determined by reliable records, including monthly rainfall averages, for the preceding ten years (or as otherwise specified in the Special Conditions or Specifications). (1) Contractor must fully comply with the applicable procedures in Articles 5 and 6 of the General Conditions regarding requests to modify the Contract Time. (2) Contractor will not be entitled to an extension of time for a Weather Delay Day to the extent Contractor is responsible for concurrent delay on that day.
(3) Contractor must take reasonable steps to mitigate the consequences of Weather Delay Days, including prudent workforce management and protecting the Work, Project Site, materials, and equipment.
(D) Non-Excusable Delay. Delay which Contractor could have avoided or mitigated through reasonable care, planning, foresight and diligence is “Non-Excusable Delay.” Contractor is not entitled to an extension of Contract Time or any compensation for NonExcusable Delay, or for Excusable Delay that is concurrent with Non-Excusable Delay.

Non-Excusable Delay includes delay caused by:
(1) weather conditions which are normal for the location of the Project, as determined by reliable records, including monthly rainfall averages, for the preceding ten years;
(2) Contractor’s failure to order equipment and materials sufficiently in advance of the time needed for completion of the Work within the Contract Time; (3) Contractor’s failure to provide adequate notification to utility companies or agencies for connections or services necessary for completion of the Work within the Contract Time;
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(4) foreseeable conditions which Contractor could have ascertained from reasonably diligent inspection of the Project site or review of the Contract Documents or other information provided or available to Contractor; (5) Contractor’s failure, refusal, or financial inability to perform the Work within the Contract Time, including insufficient funds to pay its Subcontractors or suppliers;
(6) performance or non-performance by Contractor’s Subcontractors or suppliers;
(7) the time required to respond to excessive RFIs (see Section 2.5(G)); (8) delayed submission of required submittals, or the time required for correction and resubmission of defective submittals;
(9) time required for repair of, re-testing, or re-inspection of defective Work; (10) enforcement of Laws by City, or outside agencies with jurisdiction over the Work; or
(11) City’s exercise or enforcement of any of its rights or Contractor’s duties pursuant to the Contract Documents, including correction of defective Work, extra inspections or testing due to non-compliance with Contract requirements, safety compliance, environmental compliance, or rejection and return of defective or deficient submittals.
(E) Compensable Delay. Pursuant to Public Contract Code § 7102, in addition to entitlement to an extension of Contract Time, Contractor is entitled to compensation for costs incurred due to delay caused solely by City, when that delay is unreasonable under the circumstances involved and not within the contemplation of the parties (“Compensable Delay”). Contractor is not entitled to an extension of Contract Time or recovery of costs for Compensable Delay that is concurrent with Non-Excusable Delay.

Delay due to causes that are beyond the control of either City or Contractor, including Weather Delay Days, discovery of Historic or Archeological Items pursuant to Section

7.18, or the actions or inactions of third parties or other agencies, is not Compensable Delay, and will only entitle Contractor to an extension of time commensurate with the time lost due to such delay.
(F) Recoverable Costs. Contractor is not entitled to compensation for Excusable Delay unless it is Compensable Delay, as defined above. Contractor is entitled to recover only the actual, direct, reasonable, and substantiated costs (“Recoverable Costs”) for each working day that the Compensable Delay prevents Contractor from proceeding with more than 50% of the critical path Work scheduled for that day, based on the most recent progress schedule accepted by City. Recoverable Costs will not include home office overhead or lost profit.
(G) Request for Extension of Contract Time or Recoverable Costs. A request for an extension of Contract Time or any associated Recoverable Costs must be submitted in writing to City within ten calendar days of the date the delay is first encountered, even if the duration of the delay is not yet known at that time, or any entitlement to the Contract Time extension or to the Recoverable Costs will be deemed waived. In addition to complying with the requirements of this Article 5, the request must be submitted in compliance with the Change Order request procedures in Article 6 below. Strict compliance with these requirements is necessary to ensure that any delay or consequences of delay may be mitigated as soon as possible, and to facilitate cost- Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 27
efficient administration of the Project and timely performance of the Work. Any request for an extension of Contract Time or Recoverable Costs that does not strictly comply with all of the requirements of Article 5 and Article 6 will be deemed waived. (1) Required Contents. The request must include a detailed description of the cause(s) of the delay and must also describe the measures that Contractor has taken to mitigate the delay and/or its effects, including efforts to mitigate the cost impact of the delay, such as by workforce management or by a change in sequencing. If the delay is still ongoing at the time the request is submitted, the request should also include Contractor’s plan for continued mitigation of the delay or its effects.
(2) Delay Days and Costs. The request must specify the number of days of Excusable Delay claimed or provide a realistic estimate if the duration of the delay is not yet known. If Contractor believes it is entitled to Recoverable Costs for Compensable Delay, the request must specify the amount and basis for the Recoverable Costs that are claimed or provide a realistic estimate if the amount is not yet known. Any estimate of delay duration or cost must be updated in writing and submitted with all required supporting documentation as soon as the actual time and cost is known. The maximum extension of Contract Time will be the number of days, if any, by which an Excusable Delay or a Compensable Delay exceeds any concurrent Non-Excusable Delay. Contractor is entitled to an extension of Contract Time, or compensation for Recoverable Costs, only if, and only to the extent that, such delay will unavoidably delay Final Completion. (3) Supporting Documentation. The request must also include any and all supporting documentation necessary to evidence the delay and its actual impacts, including scheduling and cost impacts with a time impact analysis using critical path methodology and demonstrating the unavoidable delay to Final Completion. The time impact analysis must be submitted in a form or format acceptable to City.
(4) Burden of Proof. Contractor has the burden of proving that: the delay was an Excusable or Compensable Delay, as defined above; Contractor has fully complied with its scheduling obligations in Section 5.2, Schedule Requirements; Contractor has made reasonable efforts to mitigate the delay and its schedule and cost impacts; the delay will unavoidably result in delaying Final Completion; and any Recoverable Costs claimed by Contractor were actually incurred and were reasonable under the circumstances.
(5) Legal Compliance. Nothing in this Section 5.3 is intended to require the waiver, alteration, or limitation of the applicability of Public Contract Code § 7102. (6) No Waiver. Any grant of an extension of Contract Time, or compensation for Recoverable Costs due to Compensable Delay, will not operate as a waiver of City’s right to assess liquidated damages for Non-Excusable Delay. (7) Dispute Resolution. In the event of a dispute over entitlement to an extension of Contract Time or compensation for Recoverable Costs, Contractor may not stop Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work. Contractor’s sole recourse for an unresolved dispute based on City’s rejection of a Change Order request for an extension of Contract Time or compensation for Recoverable Costs is to comply with the dispute resolution provisions set forth in Article 12 below.

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5.4 Liquidated Damages. It is expressly understood that if Final Completion is not achieved within the Contract Time, City will suffer damages from the delay that are difficult to determine and accurately specify. Pursuant to Public Contract Code § 7203, if Contractor fails to achieve Final Completion within the Contract Time due to Contractor’s NonExcusable Delay, City will charge Contractor in the amount specified in the Contract for each calendar day that Final Completion is delayed beyond the Contract Time, as liquidated damages and not as a penalty. Any waiver of accrued liquidated damages, in whole or in part, is subject to approval of the City Council or its authorized delegee. (A) Liquidated Damages. Liquidated damages will not be assessed for any Excusable or Compensable Delay, as set forth above.
(B) Milestones. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents. (C) Setoff. City is entitled to deduct the amount of liquidated damages assessed against any payments otherwise due to Contractor, including progress payments, Final Payment, or unreleased retention. If there are insufficient Contract funds remaining to cover the full amount of liquidated damages assessed, City is entitled to recover the balance from Contractor or its performance bond surety. (D) Occupancy or Use. Occupancy or use of the Project in whole or in part prior to Final Completion does not constitute City’s acceptance of the Project and will not operate as a waiver of City’s right to assess liquidated damages for Contractor’s Non-Excusable Delay in achieving Final Completion.
(E) Other Remedies. City’s right to liquidated damages under this Section applies only to damages arising from Contractor’s Non-Excusable Delay or failure to complete the Work within the Contract Time. City retains its right to pursue all other remedies under the Contract for other types of damage, including damage to property or persons, costs or diminution in value from defective materials or workmanship, costs to repair or complete the Work, or other liability caused by Contractor.

Article 6 - Contract Modification

6.1 Contract Modification. Subject to the limited exception set forth in subsection (D) below, any change in the Work or the Contract Documents, including the Contract Price or Contract Time, will not be a valid and binding change to the Contract unless it is formalized in a Change Order, including a “no-cost” Change Order or a unilateral Change Order. Changes in the Work pursuant to this Article 6 will not operate to release, limit, or abridge Contractor’s warranty obligations pursuant to Article 11 or any obligations of Contractor’s bond sureties.
(A) City-Directed Changes. City may direct changes in the scope or sequence of Work or the requirements of the Contract Documents, without invalidating the Contract.

Such changes may include Extra Work as set forth in subsection (C) below, or deletion or modification of portions of the Work. Contractor must promptly comply with City-directed changes in the Work in accordance with the original Contract Documents, even if Contractor and City have not yet reached agreement as to adjustments to the Contract Price or Contract Time for the change in the Work or for the Extra Work. Contractor is not entitled to extra compensation for cost savings resulting from “value engineering” pursuant to Public Contract Code § 7101, except to the extent authorized in advance by City in writing, and subject to any applicable procedural requirements for submitting a proposal for value engineering cost savings.

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(B) Disputes. In the event of a dispute over entitlement to or the amount of a change in Contract Time or a change in Contract Price related to a City-directed change in the Work, Contractor must perform the Work as directed and may not delay its Work or cease Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work, including the Work in dispute. Likewise, in the event that City and Contractor dispute whether a portion or portions of the Work are already required by the Contract Documents or constitute Extra Work, or otherwise dispute the interpretation of any portion(s) of the Contract Documents, Contractor must perform the Work as directed and may not delay its Work or cease Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work, including the Work in dispute, as directed by City. If Contractor refuses to perform the Work in dispute, City may, acting in its sole discretion, elect to delete the Work from the Contract and reduce the Contract Price accordingly, and self-perform the Work or direct that the Work be performed by others. Alternatively, City may elect to terminate the Contract for convenience or for cause. Contractor’s sole recourse for an unresolved dispute related to changes in the Work or performance of any Extra Work is to comply with the dispute resolution provisions set forth in Article 12, below.
(C) Extra Work. City may direct Contractor to perform Extra Work related to the Project. Contractor must promptly perform any Extra Work as directed or authorized by City in accordance with the original Contract Documents, even if Contractor and City have not yet reached agreement on adjustments to the Contract Price or Contract Time for such Extra Work. If Contractor believes it is necessary to perform Extra Work due to changed conditions, Contractor must promptly notify the Engineer in writing, specifically identifying the Extra Work and the reason(s) the Contractor believes it is Extra Work. This notification requirement does not constitute a Change Order request pursuant to Section

6.2, below. Contractor must maintain detailed daily records that itemize the cost of each element of Extra Work, and sufficiently distinguish the direct cost of the Extra Work from the cost of other Work performed. For each day that Contractor performs Extra Work, or Work that Contractor contends is Extra Work, Contractor must submit no later than the following Working Day, a daily report of the Extra Work performed that day and the related costs, together with copies of certified payroll, invoices, and other documentation substantiating the costs (“Extra Work Report”). The Engineer will make any adjustments to Contractor’s Extra Work Report(s) based on the Engineer’s records of the Work. When an Extra Work Report(s) is agreed on and signed by both City and Contractor, the Extra Work Report(s) will become the basis for payment under a duly authorized and signed Change Order. Failure to submit the required documentation by close of business on the next Working Day is deemed a full and complete waiver for any change in the Contract Price or Contract Time for any Extra Work performed that day. (D) Minor Changes and RFIs. Minor field changes, including RFI replies from City, that do not affect the Contract Price or Contract Time and that are approved by the Engineer acting within his or her scope of authority, do not require a Change Order. By executing an RFI reply from City, Contractor agrees that it will perform the Work as clarified therein, with no change to the Contract Price or Contract Time. (E) Remedy for Non-Compliance. Contractor’s failure to promptly comply with a City-directed change is deemed a material breach of the Contract, and in addition to all other remedies available to it, City may, at its sole discretion, hire another contractor or use its own forces to complete the disputed Work at Contractor’s sole expense, and may deduct the cost from the Contract Price.

6.2 Contractor Change Order Requests. Contractor must submit a request or proposal for a change in the Work, compensation for Extra Work, or a change in the Contract Price or Contract Time as a written Change Order request or proposal.

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(A) Time for Submission. Any request for a change in the Contract Price or the Contract Time must be submitted in writing to the Engineer within ten calendar days of the date that Contractor first encounters the circumstances, information or conditions giving rise to the Change Order request, even if the total amount of the requested change in the Contract Price or impact on the Contract Time is not yet known at that time. If City requests that Contractor propose the terms of a Change Order, unless otherwise specified in City’s request, Contractor must provide the Engineer with a written proposal for the change in the Contract Price or Contract Time within five working days of receiving City’s request, in a form satisfactory to the Engineer. (B) Required Contents. Any Change Order request or proposal submitted by Contractor must include a complete breakdown of actual or estimated costs and credits, and must itemize labor, materials, equipment, taxes, insurance, subcontract amounts, and, if applicable, Extra Work Reports. Any estimated cost must be updated in writing as soon as the actual amount is known.
(C) Required Documentation. All claimed costs must be fully documented, and any related request for an extension of time or delay-related costs must be included at that time and in compliance with the requirements of Article 5 of the General Conditions.

Upon request, Contractor must permit City to inspect its original and unaltered bidding records, subcontract agreements, subcontract change orders, purchase orders, invoices, or receipts associated with the claimed costs.
(D) Required Form. Contractor must use City’s form(s) for submitting all Change Order requests or proposals, unless otherwise specified by City. (E) Certification. All Change Order requests must be signed by Contractor and must include the following certification:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Change Order request are true and correct. Contractor warrants that this Change Order request is comprehensive and complete as to the Work or changes referenced herein, and agrees that any known or foreseeable costs, expenses, or time extension requests not included herein, are deemed waived.”

6.3 Adjustments to Contract Price. The amount of any increase or decrease in the Contract Price will be determined based on one of the following methods listed below, in the order listed with unit pricing taking precedence over the other methods. Markup applies only to City-authorized time and material Work, and does not apply to any other payments to Contractor. For Work items or components that are deleted in their entirety, Contractor will only be entitled to compensation for those direct, actual, and documented costs (including restocking fees), reasonably incurred before Contractor was notified of the City’s intent to delete the Work, with no markup for overhead, profit, or other indirect costs.
(A) Unit Pricing. Amounts previously provided by Contractor in the form of unit prices, either in a bid schedule or in a post-award schedule of values pursuant to Section

8.1, Schedule of Values, will apply to determine the price for the affected Work, to the extent applicable unit prices have been provided for that type of Work. No additional markup for overhead, profit, or other indirect costs will be added to the calculation. (B) Lump Sum. A mutually agreed upon, all-inclusive lump sum price for the affected Work with no additional markup for overhead, profit, or other indirect costs.

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(C) Time and Materials. On a time and materials basis, if and only to the extent compensation on a time and materials basis is expressly authorized by City in advance of Contractor’s performance of the Work and subject to any not-to-exceed limit. Time and materials compensation for increased costs or Extra Work (but not decreased costs or deleted Work), will include allowed markup for overhead, profit, and other indirect costs, calculated as the total of the following sums, the cumulative total of which may not exceed the maximum markup rate of 15%:
(1) All direct labor costs provided by the Contractor, excluding superintendence, project management, or administrative costs, plus 15% markup; (2) All direct material costs provided by the Contractor, including sales tax, plus 15% markup;
(3) All direct plant and equipment rental costs provided by the Contractor, plus 15% markup;
(4) All direct additional subcontract costs plus 10% markup for Work performed by Subcontractors; and
(5) Increased bond or insurance premium costs computed at 1.5% of total of the previous four sums.

6.4 Unilateral Change Order. If the parties dispute the terms of a proposed Change Order, including disputes over the amount of compensation or extension of time that Contractor has requested, the value of deleted or changed Work, what constitutes Extra Work, or quantities used, City may elect to issue a unilateral Change Order, directing performance of the Work, and authorizing a change in the Contract Price or Contract Time for the adjustment to compensation or time that the City believes is merited. Contractor’s sole recourse to dispute the terms of a unilateral Change Order is to submit a timely Claim pursuant to Article 12, below.

6.5 Non-Compliance Deemed Waiver. Contractor waives its entitlement to any increase in the Contract Price or Contract Time if Contractor fails to fully comply with the provisions of this Article. Contractor will not be paid for unauthorized Extra Work.

Article 7 - General Construction Provisions

7.1 Permits, Fees, Business License, and Taxes.
(A) Permits, Fees, and City Business License. Contractor must obtain and pay for all permits, fees, or licenses required to perform the Work, including a City business license. Contractor must cooperate with and provide notifications to all government agencies with jurisdiction over the Project, as may be required. Contractor must provide City with copies of all records of permits and permit applications, payment of required fees, and any licenses required for the Work.
(B) Taxes. Contractor must pay for all taxes on labor, material and equipment, except Federal Excise Tax to the extent that City is exempt from Federal Excise Tax.

7.2 Temporary Facilities. Contractor must provide, at Contractor’s sole expense, any and all temporary facilities for the Project, including an onsite staging area for materials and equipment, a field office, sanitary facilities, utilities, storage, scaffolds, barricades, walkways, and any other temporary structure required to safely perform the Work along with any incidental utility services. The location of all temporary facilities must be Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 32
approved by the City prior to installation. Temporary facilities must be safe and adequate for the intended use and installed and maintained in accordance with Laws and the Contract Documents. Contractor must fence and screen the Project site and, if applicable, any separate Worksites, including the staging area, and its operation must minimize inconvenience to neighboring properties. Additional provisions pertaining to temporary facilities may be included in the Specifications or Special Conditions. (A) Utilities. Contractor must install and maintain the power, water, sewer and all other utilities required for the Project site, including the piping, wiring, internet and wifi connections, and any related equipment necessary to maintain the temporary facilities. (B) Removal and Repair. Contractor must promptly remove all such temporary facilities when they are no longer needed or upon completion of the Work, whichever comes first. Contractor must promptly repair any damage to City’s property or to other property caused by the installation, use, or removal of the temporary facilities, and must promptly restore the property to its original or intended condition.

7.3 Noninterference and Site Management. Contractor must avoid interfering with City’s use of its property at or adjacent to the Project site, including use of roadways, entrances, parking areas, walkways, and structures. Contractor must also minimize disruption of access to private property in the Project vicinity. Contractor must coordinate with affected property owners, tenants, and businesses, and maintain some vehicle and pedestrian access to their residences or properties at all times. Temporary access ramps, fencing or other measures must be provided as needed. Before blocking access to a private driveway or parking lot, Contractor must provide effective notice to the affected parties at least 48 hours in advance of the pending closure and allow them to remove vehicles.

Private driveways, residences and parking lots must have access to a roadway during non-Work hours.
(A) Offsite Acquisition. Unless otherwise provided by City, Contractor must acquire, use and dispose of, at its sole expense, any Worksites, licenses, easements, and temporary facilities necessary to access and perform the Work. (B) Offsite Staging Area and Field Office. If additional space beyond the Project site is needed, such as for the staging area or the field office, Contractor may need to make arrangements with the nearby property owner(s) to secure the space. Before using or occupying any property owned by a third party, Contractor must provide City with a copy of the necessary license agreement, easement, or other written authorization from the property owner, together with a written release from the property owner holding City harmless from any related liability, in a form acceptable to the City Attorney. (C) Traffic Management. Contractor must provide traffic management and traffic controls as specified in the Contract Documents, as required by Laws, and as otherwise required to ensure public and worker safety, and to avoid interference with public or private operations or the normal flow of vehicular, bicycle, or pedestrian traffic.

7.4 Signs. No signs may be displayed on or about City’s property, except signage which is required by Laws or by the Contract Documents, without City’s prior written approval as to size, design, and location.

7.5 Project Site and Nearby Property Protections.
(A) General. Contractor is responsible at all times, on a 24-hour basis and at its sole cost, for protecting the Work, the Project site, and the materials and equipment to be incorporated into the Work, until the City has accepted the Project, excluding any exceptions to acceptance, if any. Except as specifically authorized by City, Contractor Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 33
must confine its operations to the area of the Project site indicated in the Plans and Specifications. Contractor is liable for any damage caused by Contractor or its Subcontractors to the Work, City’s property, the property of adjacent or nearby property owners and the work or personal property of other contractors working for City, including damage related to Contractor’s failure to adequately secure the Work or any Worksite. (1) Subject to City’s approval, Contractor will provide and install safeguards to protect the Work; any Worksite, including the Project site; City’s real or personal property and the real or personal property of adjacent or nearby property owners, including plant and tree protections.
(2) City wastewater systems may not be interrupted. If the Work disrupts existing sewer facilities, Contractor must immediately notify City and establish a plan, subject to City’s approval, to convey the sewage in closed conduits back into the sanitary sewer system. Sewage must not be permitted to flow in trenches or be covered by backfill.
(3) Contractor must remove with due care, and store at City’s request, any objects or material from the Project site that City will salvage or reuse at another location.
(4) If directed by Engineer, Contractor must promptly repair or replace any property damage, as specified by the Engineer. However, acting in its sole discretion, City may elect to have the property damage remedied otherwise, and may deduct the cost to repair or replace the damaged property from payment otherwise due to Contractor.
(5) Contractor will not permit any structure or infrastructure to be loaded in a manner that will damage or endanger the integrity of the structure or infrastructure.
(B) Securing Project Site. After completion of Work each day, Contractor must secure the Project site and, to the extent feasible, make the area reasonably accessible to the public unless City approves otherwise. All excess materials and equipment not protected by approved traffic control devices must be relocated to the staging area or demobilized. Trench spoils must be hauled off the Project site daily and open excavations must be protected with steel plates. Contractor and Subcontractor personnel may not occupy or use the Project site for any purpose during non-Work hours, except as may be provided in the Contract Documents or pursuant to prior written authorization from City. (C) Unforeseen Conditions. If Contractor encounters facilities, utilities, or other unknown conditions not shown on or reasonably inferable from the Plans or apparent from inspection of the Project site, Contractor must immediately notify the City and promptly submit a Request for Information to obtain further directions from the Engineer.

Contractor must avoid taking any action which could cause damage to the facilities or utilities pending further direction from the Engineer. The Engineer’s written response will be final and binding on Contractor. If the Engineer’s subsequent direction to Contractor affects Contractor’s cost or time to perform the Work, Contractor may submit a Change Order request as set forth in Article 6 above.
(D) Support; Adjacent Properties. Contractor must provide, install, and maintain all shoring, bracing, and underpinning necessary to provide support to City’s property and adjacent properties and improvements thereon. Contractor must provide notifications to adjacent property owners as may be required by Laws. See also, Section 7.15, Trenching of Five Feet or More.

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(E) Notification of Property Damage. Contractor must immediately notify the City of damage to any real or personal property resulting from Work on the Project. Contractor must immediately provide a written report to City of any such property damage in excess of $500 (based on estimated cost to repair or replace) within 24 hours of the occurrence.

The written report must include: (1) the location and nature of the damage, and the owner of the property, if known; (2) the name and address of each employee of Contractor or any Subcontractor involved in the damage; (3) a detailed description of the incident, including precise location, time, and names and contact information for known witnesses; and (4) a police or first responder report, if applicable. If Contractor is required to file an accident report with another government agency, Contractor will provide a copy of the report to City.

7.6 Materials and Equipment.
(A) General. Unless otherwise specified, all materials and equipment required for the Work must be new, free from defects, and of the best grade for the intended purpose, and furnished in sufficient quantities to ensure the proper and expeditious performance of the Work. Contractor must employ measures to preserve the specified quality and fitness of the materials and equipment. Unless otherwise specified, all materials and equipment required for the Work are deemed to include all components required for complete installation and intended operation and must be installed in accordance with the manufacturer’s recommendations or instructions. Contractor is responsible for all shipping, handling, and storage costs associated with the materials and equipment required for the Work. Contractor is responsible for providing security and protecting the Work and all of the required materials, supplies, tools and equipment at Contractor’s sole cost until City has formally accepted the Project as set forth in Section 11.1, Final Completion. Contractor will not assign, sell, mortgage, or hypothecate any materials or equipment for the Project, or remove any materials or equipment that have been installed or delivered.
(B) City-Provided. If the Work includes installation of materials or equipment to be provided by City, Contractor is solely responsible for the proper examination, handling, storage, and installation in accordance with the Contract Documents. Contractor must notify City of any defects discovered in City-provided materials or equipment, sufficiently in advance of scheduled use or installation to afford adequate time to procure replacement materials or equipment as needed. Contractor is solely responsible for any loss of or damage to such items which occurs while the items are in Contractor’s custody and control, the cost of which may be offset from the Contract Price and deducted from any payment(s) due to Contractor.
(C) Intellectual Property Rights. Contractor must, at its sole expense, obtain any authorization or license required for use of patented or copyright-protected materials, equipment, devices or processes that are incorporated into the Work. Contractor’s indemnity obligations in Article 4 apply to any claimed violation of intellectual property rights in violation of this provision.

7.7 Substitutions.
(A) “Or Equal.” Any Specification designating a material, product, or thing (collectively, “item”) or service by specific brand or trade name, followed by the words “or equal,” is intended only to indicate the quality and type of item or service desired, and Contractor may request use of any equal item or service. Unless otherwise stated in the Specifications, any reference to a specific brand or trade name for an item or service that is used solely for the purpose of describing the type of item or service desired, will be deemed to be followed by the words “or equal.” A substitution will only be approved if it is a true “equal” item or service in every aspect of design, function, and quality, as Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 35
determined by City, including dimensions, weight, maintenance requirements, durability, fit with other elements, and schedule impacts.
(B) Request for Substitution. A post-award request for substitution of an item or service must be submitted in writing to the Engineer for approval in advance, within the applicable time period provided in the Contract Documents. If no time period is specified, the substitution request may be submitted any time within 35 days after the date of award of the Contract, or sufficiently in advance of the time needed to avoid delay of the Work, whichever is earlier.
(C) Substantiation. Any available data substantiating the proposed substitute as an equal item or service must be submitted with the written request for substitution.

Contractor’s failure to timely provide all necessary substantiation, including any required test results as soon as they are available, is grounds for rejection of the proposed substitution, without further review.
(D) Burden of Proving Equality. Contractor has the burden of proving the equality of the proposed substitution at Contractor’s sole cost. City has sole discretion to determine whether a proposed substitution is equal, and City’s determination is final.

(E) Approval or Rejection. If the proposed substitution is approved, Contractor is solely responsible for any additional costs or time associated with the substituted item or service. If the proposed substitution is rejected, Contractor must, without delay, install the item or use the service as specified by City.
(F) Contractor’s Obligations. City’s approval of a proposed substitution will not relieve Contractor from any of its obligations under the Contract Documents. In the event Contractor makes an unauthorized substitution, Contractor will be solely responsible for all resulting cost impacts, including the cost of removal and replacement and the impact to other design elements.

7.8 Testing and Inspection.
(A) General. All materials, equipment, and workmanship used in the Work are subject to inspection and testing by City at all times and locations during construction and/or fabrication and at any Worksite, including at shops and yards as well as at the Project site. All manufacturers’ application or installation instructions must be provided to the Inspector at least ten days prior to the first such application or installation. Contractor must, at all times, make the Work available for testing or inspection. Neither City’s inspection or testing of Work, nor its failure to do so, operate to waive or limit Contractor’s duty to complete the Work in accordance with the Contract Documents. (B) Scheduling and Notification. Contractor must cooperate with City in coordinating the inspections and testing. Contractor must submit samples of materials, at Contractor’s expense, and schedule all tests required by the Contract Documents in time to avoid any delay to the progress of the Work. Contractor must notify the Engineer no later than noon of the Working Day before any inspection or testing and must provide timely notice to the other necessary parties as specified in the Contract Documents. If Contractor schedules an inspection or test beyond regular Work hours, or on a Saturday, Sunday, or recognized City holiday, Contractor must notify the Engineer at least two Working Days in advance for approval. If approved, Contractor must reimburse City for the cost of the overtime inspection or testing. Such costs, including the City’s hourly costs for required personnel, may be deducted from payments otherwise due to Contractor.

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(C) Responsibility for Costs. City will bear the initial cost of inspection and testing to be performed by independent testing consultants retained by City, subject to the following exceptions:
(1) Contractor will be responsible for the costs of any subsequent tests which are required to substantiate compliance with the Contract Documents, and any associated remediation costs.
(2) Contractor will be responsible for inspection costs, at City’s hourly rates, for inspection time lost because the Work is not ready or Contractor fails to appear for a scheduled inspection.
(3) If any portion of the Work that is subject to inspection or testing is covered or concealed by Contractor prior to the inspection or testing, Contractor will bear the cost of making that portion of the Work available for the inspection or testing required by the Contract Documents, and any associated repair or remediation costs.
(4) Contractor is responsible for properly shoring all compaction test sites deeper than five feet below grade, as required under Section 7.15 below. (5) Any Work or material that is defective or fails to comply with the requirements of the Contract Documents must be promptly repaired, removed, replaced, or corrected by Contractor, at Contractor’s sole expense, even if that Work or material was previously inspected or included in a progress payment. (D) Contractor’s Obligations. Contractor is solely responsible for any delay occasioned by remediation of defective or noncompliant Work or material. Inspection of the Work does not in any way relieve Contractor of its obligations to perform the Work as specified. Any Work done without the required inspection(s) will also be subject to rejection by City.
(E) Distant Locations. If required off-site testing or inspection must be conducted at a location more than 100 miles from the Project site, Contractor is solely responsible for the additional travel costs required for testing and/or inspection at such locations. (F) Final Inspection. The provisions of this Section 7.8 also apply to final inspection under Article 11, Completion and Warranty Provisions.

7.9 Project Site Conditions and Maintenance. Contractor must at all times, on a 24-hour basis and at its sole cost, maintain the Project site and staging and storage areas in clean, neat, and sanitary condition and in compliance with all Laws pertaining to safety, air quality, and dust control. Adequate toilets must be provided, and properly maintained and serviced for all workers on the Project site, located in a suitably secluded area, subject to City’s prior approval. Contractor must also, on a daily basis and at its sole cost, remove and properly dispose of the debris and waste materials from the Project site. (A) Air Emissions Control. Contractor must not discharge smoke or other air contaminants into the atmosphere in violation of any Laws. (B) Dust and Debris. Contractor must minimize and confine dust and debris resulting from the Work. Contractor must abate dust nuisance by cleaning, sweeping, and immediately sprinkling with water excavated areas of dirt or other materials prone to cause dust, and within one hour after the Engineer notifies Contractor that an airborne nuisance exists. The Engineer may direct that Contractor provide an approved waterspraying truck for this purpose. If water is used for dust control, Contractor will only use Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 37
the minimum necessary. Contractor must take all necessary steps to keep waste water out of streets, gutters, or storm drains. See Section 7.19, Environmental Control. If City determines that the dust control is not adequate, City may have the work done by others and deduct the cost from the Contract Price. Contractor will immediately remove any excess excavated material from the Project site and any dirt deposited on public streets. (C) Clean up. Before discontinuing Work in an area, Contractor must clean the area and remove all debris and waste along with the construction equipment, tools, machinery, and surplus materials.
(1) Except as otherwise specified, all excess Project materials, and the materials removed from existing improvements on the Project site with no salvage value or intended reuse by City, will be Contractor’s property.
(2) Hauling trucks and other vehicles leaving the Project site must be cleaned of exterior mud or dirt before traveling on City streets. Materials and loose debris must be delivered and loaded to prevent dropping materials or debris. Contractor must immediately remove spillage from hauling on any publicly traveled way.

Streets affected by Work on the Project must be kept clean by street sweeping. (D) Disposal. Contractor must dispose of all Project debris and waste materials in a safe and legal manner. Contractor may not burn or bury waste materials on the Project site. Contractor will not allow any dirt, refuse, excavated material, surplus concrete or mortar, or any associated washings, to be disposed of onto streets, into manholes or into the storm drain system.
(E) Completion. At the completion of the Work, Contractor must remove from the Project site all of its equipment, tools, surplus materials, waste materials and debris, presenting a clean and neat appearance. Before demobilizing from the Project site, Contractor must ensure that all surfaces are cleaned, sealed, waxed, or finished as applicable, and that all marks, stains, paint splatters, and the like have been properly removed from the completed Work and the surrounding areas. Contractor must ensure that all parts of the construction are properly joined with the previously existing and adjacent improvements and conditions. Contractor must provide all cutting, fitting and patching needed to accomplish that requirement. Contractor must also repair or replace all existing improvements that are damaged or removed during the Work, both on and off the Project site, including curbs, sidewalks, driveways, fences, signs, utilities, street surfaces and structures. Repairs and replacements must be at least equal to the previously existing improvements, and the condition, finish and dimensions must match the previously existing improvements. Contractor must restore to original condition all property or items that are not designated for alteration under the Contract Documents and leave each Worksite clean and ready for occupancy or use by City. (F) Non-Compliance. If Contractor fails to comply with its maintenance and cleanup obligations or any City clean up order, City may, acting in its sole discretion, elect to suspend the Work until the condition(s) is corrected with no increase in the Contract Time or Contract Price, or undertake appropriate cleanup measures without further notice and deduct the cost from any amounts due or to become due to Contractor.

7.10 Instructions and Manuals. Contractor must provide to City three copies each of all instructions and manuals required by the Contract Documents, unless otherwise specified. These must be complete as to drawings, details, parts lists, performance data, and other information that may be required for City to easily maintain and service the materials and equipment installed for this Project.

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(A) Submittal Requirements. All manufacturers’ application or installation instructions must be provided to City at least ten days prior to the first such application.

The instructions and manuals, along with any required guarantees, must be delivered to City for review.
(B) Training. Contractor or its Subcontractors must train City’s personnel in the operation and maintenance of any complex equipment or systems as a condition precedent to Final Completion, if required in the Contract Documents.

7.11 As-built Drawings. Contractor and its Subcontractors must prepare and maintain at the Project site a detailed, complete and accurate as-built set of the Plans which will be used solely for the purpose of recording changes made in any portion of the original Plans in order to create accurate record drawings at the end of the Project. (A) Duty to Update. The as-built drawings must be updated as changes occur, on a daily basis if necessary. City may withhold the estimated cost for City to have the as-built drawings prepared from payments otherwise due to Contractor, until the as-built drawings are brought up to date to the satisfaction of City. Actual locations to scale must be identified on the as-built drawings for all runs of mechanical and electrical work, including all site utilities installed underground, in walls, floors, or otherwise concealed. Deviations from the original Plans must be shown in detail. The exact location of all main runs, whether piping, conduit, ductwork or drain lines, must be shown by dimension and elevation. The location of all buried pipelines, appurtenances, or other improvements must be represented by coordinates and by the horizontal distance from visible aboveground improvements. (B) Final Completion. Contractor must verify that all changes in the Work are depicted in the as-built drawings and must deliver the complete set of as-built drawings to the Engineer for review and acceptance as a condition precedent to Final Completion and Final Payment.

7.12 Existing Utilities.
(A) General. The Work may be performed in developed, urban areas with existing utilities, both above and below ground, including utilities identified in the Contract Documents or in other informational documents or records. Contractor must take due care to locate identified or reasonably identifiable utilities before proceeding with trenching, excavation, or any other activity that could damage or disrupt existing utilities.

This may include excavation with small equipment, potholing, or hand excavation, and, if practical, using white paint or other suitable markings to delineate the area to be excavated. Except as otherwise provided herein, Contractor will be responsible for costs resulting from damage to identified or reasonably identifiable utilities due to Contractor’s negligence or failure to comply with the Contract Documents, including the requirements in this Article 7.
(B) Unidentified Utilities. Pursuant to Government Code § 4215, if, during the performance of the Work, Contractor discovers utility facilities not identified by City in the Contract Documents, Contractor must immediately provide written notice to City and the utility. City assumes responsibility for the timely removal, relocation, or protection of existing main or trunkline utility facilities located on the Project site if those utilities are not identified in the Contract Documents. Contractor will be compensated in accordance with the provisions of the Contract Documents for the costs of locating, repairing damage not due to Contractor’s failure to exercise reasonable care, and removing or relocating utility facilities not indicated in the Plans or Specifications with reasonable accuracy, and for equipment on the Project necessarily idled during such work. Contractor will not be Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 39
assessed liquidated damages for delay in completion of the Work, to the extent the delay was caused by City’s failure to provide for removal or relocation of the utility facilities.

7.13 Notice of Excavation. Contractor must comply with all applicable requirements in Government Code §§ 4216 through 4216.5, which are incorporated by reference herein.

Government Code § 4216.2 requires that, except in an emergency, Contractor must contact the appropriate regional notification center, or Underground Services Alert, at least two working days, but not more than 14 calendar days, before starting any excavation if the excavation will be conducted in an area that is known, or reasonably should be known, to contain subsurface installations. Contractor may not begin excavation until it has obtained and submitted to Engineer an inquiry identification number from Underground Services Alert.

7.14 Trenching and Excavations of Four Feet or More. As required by Public Contract Code § 7104, if the Work includes digging trenches or other excavations that extend deeper than four feet below the surface, the provisions in this Section apply to the Work and the Project.
(A) Duty to Notify. Contractor must promptly, and before the following conditions are disturbed, provide written notice to City if Contractor finds any of the following conditions:
(1) Material that Contractor believes may be a hazardous waste, as defined in § 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with the provisions of existing Laws;
(2) Subsurface or latent physical conditions at the Project site differing from those indicated by information about the Project site made available to bidders prior to the deadline for submitting bids; or
(3) Unknown physical conditions at the Project site of any unusual nature, materially different from those ordinarily encountered and generally recognized as inherent in work of the character required by the Contract Documents. (B) City Investigation. City will promptly investigate the conditions and if City finds that the conditions materially differ from those indicated, apparent, or reasonably inferred from information about the Project site made available to bidders, or involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the Work, City will issue a Change Order. (C) Disputes. In the event that a dispute arises between City and Contractor regarding any of the conditions specified in subsection (B) above, or the terms of a Change Order issued by City, Contractor will not be excused from completing the Work within the Contract Time, but must proceed with all Work to be performed under the Contract. Contractor will retain any and all rights provided either by the Contract or by Laws which pertain to the resolution of disputes between Contractor and City.

7.15 Trenching of Five Feet or More. As required by Labor Code § 6705, if the Contract Price exceeds $25,000 and the Work includes the excavation of any trench or trenches of five feet or more in depth, a detailed plan must be submitted to City for acceptance in advance of the excavation. The detailed plan must show the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation. If the plan varies from the shoring system standards, it must be prepared by a California registered civil or structural engineer. Use of a shoring, Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 40
sloping, or protective system less effective than that required by the Construction Safety Orders is prohibited.

7.16 New Utility Connections. Except as otherwise specified, City will pay connection charges and meter costs for new permanent utilities required by the Contract Documents, if any. Contractor must notify City sufficiently in advance of the time needed to request service from each utility provider so that connections and services are initiated in accordance with the Project schedule.

7.17 Lines and Grades. Contractor is required to use any benchmark provided by the Engineer. Unless otherwise specified in the Contract Documents, Contractor must provide all lines and grades required to execute the Work. Contractor must also provide, preserve, and replace if necessary, all construction stakes required for the Project. All stakes or marks must be set by a California licensed surveyor or a California registered civil engineer. Contractor must notify the Engineer of any discrepancies found between Contractor’s staking and grading and information provided by the Contract Documents.

Upon completion, all Work must conform to the lines, elevations, and grades shown in the Plans, including any changes directed by a Change Order.

7.18 Historic or Archeological Items.
(A) Contractor’s Obligations. Contractor must ensure that all persons performing Work at the Project site are required to immediately notify the Project Manager, upon discovery of any potential historic or archeological items, including historic or prehistoric ruins, a burial ground, archaeological or vertebrate paleontological site, including fossilized footprints or other archeological, paleontological or historical feature on the Project site (collectively, “Historic or Archeological Items”). (B) Discovery; Cessation of Work. Upon discovery of any potential Historic or Archeological Items, Work must be stopped within an 85-foot radius of the find and may not resume until authorized in writing by City. If required by City, Contractor must assist in protecting or recovering the Historic or Archeological Items, with any such assistance to be compensated as Extra Work on a time and materials basis under Article 6, Contract Modification. At City’s discretion, a suspension of Work required due to discovery of Historic or Archeological Items may be treated as Excusable Delay pursuant to Article 5, or as a suspension for convenience under Article 13.

7.19 Environmental Control. Contractor must not pollute any drainage course or its tributary inlets with fuels, oils, bitumens, acids, insecticides, herbicides or other harmful materials.

Contractor must prevent the release of any hazardous material or hazardous waste into the soil or groundwater, and prevent the unlawful discharge of pollutants into City’s storm drain system and watercourses as required below. Contractor and its Subcontractors must at all times in the performance of the Work comply with all Laws concerning pollution of waterways.
(A) Stormwater Permit. Contractor must comply with all applicable conditions of the State Water Resources Control Board National Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for Discharges of Stormwater Runoff Associated with Construction Activity (“Stormwater Permit”). (B) Contractor’s Obligations. If required for the Work, a copy of the Stormwater Permit is on file in City’s principal administrative offices, and Contractor must comply with it without adjustment of the Contract Price or the Contract Time. Contractor must timely and completely submit required reports and monitoring information required by the conditions of the Stormwater Permit. Contractor also must comply with all other Laws Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 41
governing discharge of stormwater, including applicable municipal stormwater management programs.

7.20 Noise Control. Contractor must comply with all applicable noise control Laws. Noise control requirements apply to all equipment used for the Work or related to the Work, including trucks, transit mixers or transient equipment that may or may not be owned by Contractor.

7.21 Mined Materials. Pursuant to the Surface Mining and Reclamation Act of 1975, Public Resources Code § 2710 et seq., any purchase of mined materials, such as construction aggregate, sand, gravel, crushed stone, road base, fill materials, and any other mineral materials must originate from a surface mining operation included on the AB 3098 List, which is available online at:
ftp://ftp.consrv.ca.gov/pub/omr/AB3098%20List/AB3908List.pdf.

Article 8 - Payment

8.1 Schedule of Values. Prior to submitting its first application for payment, Contractor must prepare and submit to the Project Manager a schedule of values apportioned to the various divisions and phases of the Work, including mobilization and demobilization. If a Bid Schedule was submitted with Contractor’s bid, the amounts in the schedule of values must be consistent with the Bid Schedule. Each line item contained in the schedule of values must be assigned a value such that the total of all items equals the Contract Price.

The items must be sufficiently detailed to enable accurate evaluation of the percentage of completion claimed in each application for payment, and the assigned value consistent with any itemized or unit pricing submitted with Contractor’s bid. (A) Measurements for Unit Price Work. Materials and items of Work to be paid for on the basis of unit pricing will be measured according to the methods specified in the Contract Documents.
(B) Deleted or Reduced Work. Contractor will not be compensated for Work that City has deleted or reduced in scope, except for any labor, material or equipment costs for such Work that Contractor reasonably incurred before Contractor learned that the Work could be deleted or reduced. Contractor will only be compensated for those actual, direct and documented costs incurred, and will not be entitled to any mark up for overhead or lost profits.

8.2 Progress Payments. Following the last day of each month, or as otherwise required by the Special Conditions or Specifications, Contractor will submit to the Project Manager a monthly application for payment for Work performed during the preceding month based on the estimated value of the Work performed during that preceding month. (A) Application for Payment. Each application for payment must be itemized to include labor, materials, and equipment incorporated into the Work, and materials and equipment delivered to the Project site, as well as authorized and approved Change Orders. Each payment application must be supported by the unit prices submitted with Contractor’s Bid Schedule and/or schedule of values and any other substantiating data required by the Contract Documents.
(B) Payment of Undisputed Amounts. City will pay the undisputed amount due within 30 days after Contractor has submitted a complete and accurate payment application, subject to Public Contract Code § 20104.50. City will deduct a percentage from each progress payment as retention, as set forth in Section 8.5, below, and may withhold additional amounts as set forth in Section 8.3, below.

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8.3 Adjustment of Payment Application. City may adjust or reject the amount requested in a payment application, including application for Final Payment, in whole or in part, if the amount requested is disputed or unsubstantiated. Contractor will be notified in writing of the basis for the modification to the amount requested. City may also deduct or withhold from payment otherwise due based upon any of the circumstances and amounts listed below. Sums withheld from payment otherwise due will be released when the basis for that withholding has been remedied and no longer exists. (A) For Contractor’s unexcused failure to perform the Work as required by the Contract Documents, including correction or completion of punch list items, City may withhold or deduct an amount based on the City’s estimated cost to correct or complete the Work.
(B) For loss or damage caused by Contractor or its Subcontractors arising out of or relating to performance of the Work or any failure to protect the Project site, City may deduct an amount based on the estimated cost to repair or replace. (C) For Contractor’s failure to pay its Subcontractors and suppliers when payment is due, City may withhold an amount equal to the total of past due payments and may opt to pay that amount separately via joint check pursuant to Section 8.6(B), Joint Checks. (D) For Contractor’s failure to timely correct rejected, nonconforming, or defective Work, City may withhold or deduct an amount based on the City’s estimated cost to correct or complete the Work.
(E) For any unreleased stop notice, City may withhold 125% of the amount claimed. (F) For Contractor’s failure to submit any required schedule or schedule update in the manner and within the time specified in the Contract Documents, City may withhold an amount equal to five percent of the total amount requested until Contractor complies with its schedule submittal obligations.
(G) For Contractor’s failure to maintain or submit as-built documents in the manner and within the time specified in the Contract Documents, City may withhold or deduct an amount based on the City’s cost to prepare the as-builts. (H) For Work performed without Shop Drawings that have been accepted by City, when accepted Shop Drawings are required before proceeding with the Work, City may deduct an amount based on the estimated cost to correct unsatisfactory Work or diminution in value.
(I) For fines, payments, or penalties assessed under the Labor Code, City may deduct from payments due to Contractor as required by Laws and as directed by the Division of Labor Standards Enforcement.
(J) For any other costs or charges that may be withheld or deducted from payments to Contractor, as provided in the Contract Documents, including liquidated damages, City may withhold or deduct such amounts from payment otherwise due to Contractor.

8.4 Early Occupancy. Neither City’s payment of progress payments nor its partial or full use or occupancy of the Project constitutes acceptance of any part of the Work.

8.5 Retention. City will retain five percent of the full amount due on each progress payment (i.e., the amount due before any withholding or deductions pursuant to Section 8.3, Adjustment of Payment Application), or the percentage stated in the Notice Inviting Bids, whichever is greater, as retention to ensure full and satisfactory performance of the Work.

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Contractor is not entitled to any reduction in the rate of withholding at any time, nor to release of any retention before 35 days following City’s acceptance of the Project. (A) Substitution of Securities. As provided by Public Contract Code § 22300, Contractor may request in writing that it be allowed, at its sole expense, to substitute securities for the retention withheld by City. Any escrow agreement entered into pursuant to this provision must fully comply with Public Contract Code § 22300 and will be subject to approval as to form by City’s legal counsel. If City exercises its right to draw upon such securities in the event of default pursuant to section (7) of the statutory Escrow Agreement for Security Deposits in Lieu of Retention, pursuant to subdivision (f) of Public Contract Code § 22300 (“Escrow Agreement”), and if Contractor disputes that it is in default, its sole remedy is to comply with the dispute resolution procedures in Article 12 and the provisions therein. It is agreed that for purposes of this paragraph, an event of default includes City’s rights pursuant to these Contract Documents to withhold or deduct sums from retention, including withholding or deduction for liquidated damages, incomplete or defective Work, stop payment notices, or backcharges. It is further agreed that if any individual authorized to give or receive written notice on behalf of a party pursuant to section (10) of the Escrow Agreement are unavailable to give or receive notice on behalf of that party due to separation from employment, retirement, death, or other circumstances, the successor or delegee of the named individual is deemed to be the individual authorized to give or receive notice pursuant to section (10) of the Escrow Agreement.
(B) Release of Undisputed Retention. All undisputed retention, less any amounts that may be assessed as liquidated damages, retained for stop notices, or otherwise withheld pursuant to Section 8.3, Adjustment of Payment Application, will be released as Final Payment to Contractor no sooner than 35 days following recordation of the notice of completion, and no later than 60 days following acceptance of the Project by City’s governing body or authorized designee pursuant to Section 11.1(C), Acceptance, or, if the Project has not been accepted, no later than 60 days after the Project is otherwise considered complete pursuant to Public Contract Code § 7107(c).

8.6 Payment to Subcontractors and Suppliers. Each month, Contractor must promptly pay each Subcontractor and supplier the value of the portion of labor, materials, and equipment incorporated into the Work or delivered to the Project site by the Subcontractor or supplier during the preceding month. Such payments must be made in accordance with the requirements of Laws pertaining to such payments, and those of the Contract Documents and applicable subcontract or supplier contract. (A) Withholding for Stop Notice. Pursuant to Civil Code § 9358, City will withhold 125% of the amount claimed by an unreleased stop notice, a portion of which may be retained by City for the costs incurred in handling the stop notice claim, including attorneys’ fees and costs, as authorized by law.
(B) Joint Checks. City reserves the right, acting in its sole discretion, to issue joint checks made payable to Contractor and a Subcontractor or supplier, if City determines this is necessary to ensure fair and timely payment for a Subcontractor or supplier who has provided services or goods for the Project. As a condition to release of payment by a joint check, the joint check payees may be required to execute a joint check agreement in a form provided or approved by the City Attorney’s Office. The joint check payees will be jointly and severally responsible for the allocation and disbursement of funds paid by joint check. Payment by joint check will not be construed to create a contractual relationship between City and a Subcontractor or supplier of any tier beyond the scope of the joint check agreement.

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8.7 Final Payment. Contractor’s application for Final Payment must comply with the requirements for submitting an application for a progress payment as stated in Section

8.2, above. Corrections to previous progress payments, including adjustments to estimated quantities for unit priced items, may be included in the Final Payment. If Contractor fails to submit a timely application for Final Payment, City reserves the right to unilaterally process and issue Final Payment without an application from Contractor in order to close out the Project. For the purposes of determining the deadline for Claim submission pursuant to Article 12, the date of Final Payment is deemed to be the date that City acts to release undisputed retention as final payment to Contractor, or otherwise provides written notice to Contractor of Final Payment or that no undisputed funds remain available for Final Payment due to offsetting withholdings or deductions pursuant to Section 8.3, Adjustment of Payment Application. If the amount due from Contractor to City exceeds the amount of Final Payment, City retains the right to recover the balance from Contractor or its sureties.

8.8 Release of Claims. City may, at any time, require that payment of the undisputed portion of any progress payment or Final Payment be contingent upon Contractor furnishing City with a written waiver and release of all claims against City arising from or related to the portion of Work covered by those undisputed amounts subject to the limitations of Public Contract Code § 7100. Any disputed amounts may be specifically excluded from the release.

8.9 Warranty of Title. Contractor warrants that title to all work, materials, or equipment incorporated into the Work and included in a request for payment will pass over to City free of any claims, liens, or encumbrances upon payment to Contractor.

Article 9 - Labor Provisions

9.1 Discrimination Prohibited. Discrimination against any prospective or present employee engaged in the Work on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status is strictly prohibited.

Contractor and its Subcontractors are required to comply with all applicable Laws prohibiting discrimination, including the California Fair Employment and Housing Act (Govt. Code § 12900 et seq.), Government Code § 11135, and Labor Code §§ 1735, 1777.5, 1777.6, and 3077.5.

9.2 Labor Code Requirements.
(A) Eight Hour Day. Pursuant to Labor Code § 1810, eight hours of labor constitute a legal day’s work under this Contract.
(B) Penalty. Pursuant to Labor Code § 1813, Contractor will forfeit to City as a penalty, the sum of $25.00 for each day during which a worker employed by Contractor or any Subcontractor is required or permitted to work more than eight hours in any one calendar day or more than 40 hours per calendar week, except if such workers are paid overtime under Labor Code § 1815.
(C) Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code § 1777.5, which is fully incorporated by reference.
(D) Notices. Pursuant to Labor Code § 1771.4, Contractor is required to post all job site notices prescribed by Laws.

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9.3 Prevailing Wages. Each worker performing Work under this Contract that is covered under Labor Code §§ 1720 or 1720.9, including cleanup at the Project site, must be paid at a rate not less than the prevailing wage as defined in §§ 1771 and 1774 of the Labor Code. The prevailing wage rates are on file with the City and available online at http://www.dir.ca.gov/dlsr. Contractor must post a copy of the applicable prevailing rates at the Project site.
(A) Penalties. Pursuant to Labor Code § 1775, Contractor and any Subcontractor will forfeit to City as a penalty up to $200.00 for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. Contractor must also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.
(B) Federal Requirements. If this Project is subject to federal prevailing wage requirements in addition to California prevailing wage requirements, Contractor and its Subcontractors are required to pay the higher of the currently applicable state or federal prevailing wage rates.

9.4 Payroll Records. Contractor must comply with the provisions of Labor Code §§ 1771.4, 1776, and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for monthly electronic submission of payroll records to the DIR.
(A) Contractor and Subcontractor Obligations. Contractor and each Subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct; and (2) Contractor or the Subcontractor has complied with the requirements of Labor Code §§ 1771, 1811, and 1815 for any Work performed by its employees on the Project.
(B) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to City, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.
(C) Enforcement. Upon notice of noncompliance with Labor Code § 1776, Contractor or Subcontractor has ten days in which to comply with the requirements of this section. If Contractor or Subcontractor fails to do so within the ten-day period, Contractor or Subcontractor will forfeit a penalty of $100.00 per day, or portion thereof, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Contractor.

9.5 Labor Compliance. Pursuant to Labor Code § 1771.4, the Contract for this Project is subject to compliance monitoring and enforcement by the DIR.

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Article 10 - Safety Provisions

10.1 Safety Precautions and Programs. Contractor and its Subcontractors are fully responsible for safety precautions and programs, and for the safety of persons and property in the performance of the Work. Contractor and its Subcontractors must at all times comply with all applicable health and safety Laws and seek to avoid injury, loss, or damage to persons or property by taking reasonable steps to protect its employees and other persons at any Worksite, materials and equipment stored on or off site, and property at or adjacent to any Worksite.
(A) Reporting Requirements. Contractor must immediately notify the City of any death, serious injury or illness resulting from Work on the Project. Contractor must immediately provide a written report to City of each recordable accident or injury occurring at any Worksite within 24 hours of the occurrence. The written report must include: (1) the name and address of the injured or deceased person; (2) the name and address of each employee of Contractor or of any Subcontractor involved in the incident; (3) a detailed description of the incident, including precise location, time, and names and contact information for known witnesses; and (4) a police or first responder report, if applicable. If Contractor is required to file an accident report with a government agency, Contractor will provide a copy of the report to City.
(B) Legal Compliance. Contractor’s safety program must comply with the applicable legal and regulatory requirements. Contractor must provide City with copies of all notices required by Laws.
(C) Contractor’s Obligations. Any damage or loss caused by Contractor arising from the Work which is not insured under property insurance must be promptly remedied by Contractor.
(D) Remedies. If City determines, in its sole discretion, that any part of the Work or Project site is unsafe, City may, without assuming responsibility for Contractor’s safety program, require Contractor or its Subcontractor to cease performance of the Work or to take corrective measures to City’s satisfaction. If Contractor fails to promptly take the required corrective measures, City may perform them and deduct the cost from the Contract Price. Contractor agrees it is not entitled to submit a Claim for damages, for an increase in Contract Price, or for a change in Contract Time based on Contractor’s compliance with City’s request for corrective measures pursuant to this provision.

10.2 Hazardous Materials. Unless otherwise specified in the Contract Documents, this Contract does not include the removal, handling, or disturbance of any asbestos or other Hazardous Materials. If Contractor encounters materials on the Project site that Contractor reasonably believes to be asbestos or other Hazardous Materials, and the asbestos or other Hazardous Materials have not been rendered harmless, Contractor may continue Work in unaffected areas reasonably believed to be safe, but must immediately cease work on the area affected and report the condition to City. No asbestos, asbestos-containing products or other Hazardous Materials may be used in performance of the Work.

10.3 Material Safety. Contractor is solely responsible for complying with § 5194 of Title 8 of the California Code of Regulations, including by providing information to Contractor’s employees about any hazardous chemicals to which they may be exposed in the course of the Work. A hazard communication program and other forms of warning and training about such exposure must be used. Contractor must also maintain Safety Data Sheets (“SDS”) at the Project site, as required by Laws, for materials or substances used or consumed in the performance of the Work. The SDS will be accessible and available to Contractor’s employees, Subcontractors, and City.

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(A) Contractor Obligations. Contractor is solely responsible for the proper delivery, handling, use, storage, removal, and disposal of all materials brought to the Project site and/or used in the performance of the Work. Contractor must notify the Engineer if a specified product or material cannot be used safely. (B) Labeling. Contractor must ensure proper labeling on any material brought onto the Project site so that any persons working with or in the vicinity of the material may be informed as to the identity of the material, any potential hazards, and requirements for proper handling, protections, and disposal.

10.4 Hazardous Condition. Contractor is solely responsible for determining whether a hazardous condition exists or is created during the course of the Work, involving a risk of bodily harm to any person or risk of damage to any property. If a hazardous condition exists or is created, Contractor must take all precautions necessary to address the condition and ensure that the Work progresses safely under the circumstances.

Hazardous conditions may result from, but are not limited to, use of specified materials or equipment, the Work location, the Project site condition, the method of construction, or the way any Work must be performed.

10.5 Emergencies. In an emergency affecting the safety or protection of persons, Work, or property at or adjacent to any Worksite, Contractor must take reasonable and prompt actions to prevent damage, injury, or loss, without prior authorization from the City if, under the circumstances, there is inadequate time to seek prior authorization from the City.

Article 11 - Completion and Warranty Provisions

11.1 Final Completion.
(A) Final Inspection and Punch List. When the Work required by this Contract is fully performed, Contractor must provide written notification to City requesting final inspection. The Engineer will schedule the date and time for final inspection, which must include Contractor’s primary representative for this Project and its superintendent. Based on that inspection, City will prepare a punch list of any items that are incomplete, missing, defective, incorrectly installed, or otherwise not compliant with the Contract Documents.

The punch list to Contractor will specify the time by which all of the punch list items must be completed or corrected. The punch list may include City’s estimated cost to complete each punch list item if Contractor fails to do so within the specified time. The omission of any non-compliant item from a punch list will not relieve Contractor from fulfilling all requirements of the Contract Documents. Contractor’s failure to complete any punch list item within the time specified in the punch list will not waive or abridge its warranty obligations for any such items that must be completed by the City or by a third party retained by the City due to Contractor’s failure to timely complete any such outstanding item.
(B) Requirements for Final Completion. Final Completion will be achieved upon completion or correction of all punch list items, as verified by City’s further inspection, and upon satisfaction of all other Contract requirements, including any commissioning required under the Contract Documents and submission of all final submittals, including instructions and manuals as required under Section 7.10, and complete, final as-built drawings as required under Section 7.11, all to City’s satisfaction. (C) Acceptance. The Project will be considered accepted upon City Council action during a public meeting to accept the Project, unless the Engineer is authorized to accept Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 48
the Project, in which case the Project will be considered accepted upon the date of the Engineer’s issuance of a written notice of acceptance. In order to avoid delay of Project close out, the City may elect, acting in its sole discretion, to accept the Project as complete subject to exceptions for punch list items that are not completed within the time specified in the punch list.
(D) Final Payment and Release of Retention. Final Payment and release of retention, less any sums withheld pursuant to the provisions of the Contract Documents, will not be made sooner than 35 days after recordation of the notice of completion. If Contractor fails to complete all of the punch list items within the specified time, City may withhold up to 150% of City’s estimated cost to complete each of the remaining items from Final Payment and may use the withheld retention to pay for the costs to selfperform the outstanding items or to retain a third party to complete any such outstanding punch list item.

11.2 Warranty.
(A) General. Contractor warrants that all materials and equipment will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials. Contractor further warrants that the Work will be free from material defects not intrinsic in the design or materials required in the Contract Documents. Contractor warrants that materials or items incorporated into the Work comply with the requirements and standards in the Contract Documents, including compliance with Laws, and that any Hazardous Materials encountered or used were handled as required by Laws. At City’s request, Contractor must furnish satisfactory evidence of the quality and type of materials and equipment furnished. Contractor’s warranty does not extend to damage caused by normal wear and tear, or improper use or maintenance.
(B) Warranty Period. Contractor’s warranty must guarantee its Work for a period of one year from the date of Project acceptance (the “Warranty Period”), except when a longer guarantee is provided by a supplier or manufacturer or is required by the Specifications or Special Conditions. Contractor must obtain from its Subcontractors, suppliers and manufacturers any special or extended warranties required by the Contract Documents.
(C) Warranty Documents. As a condition precedent to Final Completion, Contractor must supply City with all warranty and guarantee documents relevant to equipment and materials incorporated into the Work and guaranteed by their suppliers or manufacturers.
(D) Subcontractors. The warranty obligations in the Contract Documents apply to Work performed by Contractor and its Subcontractors, and Contractor agrees to be coguarantor of such Work. (E) Contractor’s Obligations. Upon written notice from City to Contractor of any defect in the Work discovered during the Warranty Period, Contractor or its responsible Subcontractor must promptly correct the defective Work at its own cost. Contractor’s obligation to correct defects discovered during the Warranty Period will continue past the expiration of the Warranty Period as to any defects in Work for which Contractor was notified prior to expiration of the Warranty Period. Work performed during the Warranty Period (“Warranty Work”) will be subject to the warranty provisions in this Section 11.2 for a one-year period that begins upon completion of such Warranty Work to City’s satisfaction.

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(F) City’s Remedies. If Contractor or its responsible Subcontractor fails to correct defective Work within ten days following notice by City, or sooner if required by the circumstances, City may correct the defects to conform with the Contract Documents at Contractor’s sole expense. Contractor must reimburse City for its costs in accordance with subsection (H), below.
(G) Emergency Repairs. In cases of emergency where any delay in correcting defective Work could cause harm, loss or damage, City may immediately correct the defects to conform with the Contract Documents at Contractor’s sole expense. Contractor or its surety must reimburse City for its costs in accordance with subsection (H), below. (H) Reimbursement. Contractor must reimburse City for its costs to repair under subsections (F) or (G), above, within 30 days following City’s submission of a demand for payment pursuant to this provision. If City is required to initiate legal action to compel Contractor’s compliance with this provision, and City is the prevailing party in such action, Contractor and its surety are solely responsible for all of City’s attorney’s fees and legal costs expended to enforce Contractor’s warranty obligations herein, in addition to any and all costs City incurs to correct the defective Work.

11.3 Use Prior to Final Completion. City reserves the right to occupy or make use of the Project, or any portions of the Project, prior to Final Completion if City has determined that the Project or portion of it is in a condition suitable for the proposed occupation or use, and that it is in its best interest to occupy or make use of the Project, or any portions of it, prior to Final Completion.
(A) Non-Waiver. Occupation or use of the Project, in whole or in part, prior to Final Completion will not operate as acceptance of the Work or any portion of it, nor will it operate as a waiver of any of City’s rights or Contractor’s duties pursuant to these Contract Documents, and will not affect nor bear on the determination of the time of substantial completion with respect to any statute of repose pertaining to the time for filing an action for construction defect.
(B) City’s Responsibility. City will be responsible for the cost of maintenance and repairs due to normal wear and tear with respect to those portions of the Project that are being occupied or used before Final Completion. The Contract Price or the Contract Time may be adjusted pursuant to the applicable provisions of these Contract Documents if, and only to the extent that, any occupation or use under this Section actually adds to Contractor’s cost or time to complete the Work within the Contract Time.

11.4 Substantial Completion. For purposes of determining “substantial completion” with respect to any statute of repose pertaining to the time for filing an action for construction defect, “substantial completion” is deemed to mean the last date that Contractor or any Subcontractor performs Work on the Project prior to City acceptance of the Project, except for warranty work performed under this Article.

Article 12 - Dispute Resolution

12.1 Claims. This Article applies to and provides the exclusive procedures for any Claim arising from or related to the Contract or performance of the Work. (A) Definition. “Claim” means a separate demand by Contractor, submitted in writing by registered or certified mail with return receipt requested, for a change in the Contract Time, including a time extension or relief from liquidated damages, or a change in the Contract Price, when the demand has previously been submitted to City in accordance with the requirements of the Contract Documents, and which has been Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 50
rejected or disputed by City, in whole or in part. A Claim may also include that portion of a unilateral Change Order that is disputed by the Contractor. (B) Limitations. A Claim may only include the portion of a previously rejected demand that remains in dispute between Contractor and City. With the exception of any dispute regarding the amount of money actually paid to Contractor as Final Payment, Contractor is not entitled to submit a Claim demanding a change in the Contract Time or the Contract Price, which has not previously been submitted to City in full compliance with Article 5 and Article 6, and subsequently rejected in whole or in part by City. (C) Scope of Article. This Article is intended to provide the exclusive procedures for submission and resolution of Claims of any amount and applies in addition to the provisions of Public Contract Code § 9204 and § 20104 et seq., which are incorporated by reference herein.
(D) No Work Delay. Notwithstanding the submission of a Claim or any other dispute between the parties related to the Project or the Contract Documents, Contractor must perform the Work and may not delay or cease Work pending resolution of a Claim or other dispute, but must continue to diligently prosecute the performance and timely completion of the Work, including the Work pertaining to the Claim or other dispute. (E) Informal Resolution. Contractor will make a good faith effort to informally resolve a dispute before initiating a Claim, preferably by face-to-face meeting between authorized representatives of Contractor and City.

12.2 Claims Submission. The following requirements apply to any Claim subject to this Article:
(A) Substantiation. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Article 12 and must include all of the documents necessary to substantiate the Claim including the Change Order request that was rejected in whole or in part, and a copy of City’s written rejection that is in dispute.

The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Contract Documents, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all known or estimated labor, materials, taxes, insurance, and subcontract, or other costs.

Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each component of claimed cost. Any Claim for an extension of time or delay costs must be substantiated with a schedule analysis and narrative depicting and explaining claimed time impacts.
(B) Claim Format and Content. A Claim must be submitted in the following format:
(1) Provide a cover letter, specifically identifying the submission as a “Claim” submitted under this Article 12 and specifying the requested remedy (e.g., amount of proposed change to Contract Price and/or change to Contract Time). (2) Provide a summary of each Claim, including underlying facts and the basis for entitlement, and identify each specific demand at issue, including the specific Change Order request (by number and submittal date), and the date of City's rejection of that demand, in whole or in part.
(3) Provide a detailed explanation of each issue in dispute. For multiple issues included within a single Claim or for multiple Claims submitted concurrently, separately number and identify each individual issue or Claim, and include the following for each separate issue or Claim:

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a. A succinct statement of the matter in dispute, including Contractor’s position and the basis for that position;
b. Identify and attach all documents that substantiate the Claim, including relevant provisions of the Contract Documents, RFIs, calculations, and schedule analysis (see subsection (A), Substantiation, above);
c. A chronology of relevant events; and
d. Analysis and basis for claimed changes to Contract Price, Contract Time, or any other remedy requested.
(4) Provide a summary of issues and corresponding claimed damages. If, by the time of the Claim submission deadline (below), the precise amount of the requested change in the Contract Price or Contract Time is not yet known, Contractor must provide a good faith estimate, including the basis for that estimate, and must identify the date by which it is anticipated that the Claim will be updated to provide final amounts.
(5) Include the following certification, executed by Contractor’s authorized representative:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Claim submittal are true and correct. Contractor warrants that this Claim submittal is comprehensive and complete as to the matters in dispute, and agrees that any costs, expenses, or delay not included herein are deemed waived.”
(C) Submission Deadlines.
(1) A Claim disputing rejection of a request for a change in the Contract Time or Contract Price must be submitted within 15 days following the date that City notified Contractor in writing that a request for a change in the Contract Time or Contract Price, duly submitted in compliance with Article 5 and Article 6, has been rejected in whole or in part. A Claim disputing the terms of a unilateral Change Order must be submitted within 15 days following the date of issuance of the unilateral Change Order. These Claim deadlines apply even if Contractor cannot yet quantify the total amount of any requested change in the Contract Time or Contract Price. If the Contractor cannot quantify those amounts, it must submit an estimate of the amounts claimed pending final determination of the requested remedy by Contractor.
(2) With the exception of any dispute regarding the amount of Final Payment, any Claim must be filed on or before the date of Final Payment or will be deemed waived.
(3) A Claim disputing the amount of Final Payment must be submitted within 15 days of the effective date of Final Payment, under Section 8.7, Final Payment. (4) Strict compliance with these Claim submission deadlines is necessary to ensure that any dispute may be mitigated as soon as possible, and to facilitate cost-efficient administration of the Project. Any Claim that is not submitted within the specified deadlines will be deemed waived by Contractor.

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12.3 City’s Response. City will respond within 45 days of receipt of the Claim with a written statement identifying which portion(s) of the Claim are disputed, unless the 45-day period is extended by mutual agreement of City and Contractor or as otherwise allowed under Public Contract Code § 9204. However, if City determines that the Claim is not adequately substantiated pursuant to Section 12.2(A), Substantiation, City may first request in writing, within 30 days of receipt of the Claim, any additional documentation supporting the Claim or relating to defenses to the Claim that City may have against the Claim.
(A) Additional Information. If additional information is thereafter required, it may be requested and provided upon mutual agreement of City and Contractor. If Contractor’s Claim is based on estimated amounts, Contractor has a continuing duty to update its Claim as soon as possible with information on actual amounts in order to facilitate prompt and fair resolution of the Claim.
(B) Non-Waiver. Any failure by City to respond within the times specified above will not be construed as acceptance of the Claim, in whole or in part, or as a waiver of any provision of these Contract Documents.

12.4 Meet and Confer. If Contractor disputes City’s written response, or City fails to respond within the specified time, within 15 days of receipt of City’s response or within 15 days of City’s failure to respond within the applicable 45-day time period under Section 12.3, respectively, Contractor may notify City of the dispute in writing sent by registered or certified mail, return receipt requested, and demand an informal conference to meet and confer for settlement of the issues in dispute. If Contractor fails to notify City of the dispute and demand an informal conference to meet and confer in writing within the specified time, Contractor’s Claim will be deemed waived. (A) Schedule Meet and Confer. Upon receipt of the demand to meet and confer, City will schedule the meet and confer conference to be held within 30 days, or later if needed to ensure the mutual availability of each of the individuals that each party requires to represent its interests at the meet and confer conference. (B) Location for Meet and Confer. The meet and confer conference will be scheduled at a location at or near City’s principal office. (C) Written Statement After Meet and Confer. Within ten working days after the meet and confer has concluded, City will issue a written statement identifying which portion(s) of the Claim remain in dispute, if any.
(D) Submission to Mediation. If the Claim or any portion remains in dispute following the meet and confer conference, within ten working days after the City issues the written statement identifying any portion(s) of the Claim remaining in dispute, the Contractor may identify in writing disputed portion(s) of the Claim, which will be submitted for mediation, as set forth below.

12.5 Mediation and Government Code Claims.
(A) Mediation. Within ten working days after the City issues the written statement identifying any portion(s) of the Claim remaining in dispute following the meet and confer, City and Contractor will mutually agree to a mediator, as provided under Public Contract Code § 9204. Mediation will be scheduled to ensure the mutual availability of the selected mediator and all of the individuals that each party requires to represent its interests. If there are multiple Claims in dispute, the parties may agree to schedule the mediation to address all outstanding Claims at the same time. The parties will share the costs of the mediator and mediation fees equally, but each party is otherwise solely and separately Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 53
responsible for its own costs to prepare for and participate in the mediation, including costs for its legal counsel or any other consultants.
(B) Government Code Claims.
(1) Timely presentation of a Government Code Claim is a condition precedent to filing any legal action based on or arising from the Contract. Compliance with the Claim submission requirements in this Article 12 is a condition precedent to filing a Government Code Claim.
(2) The time for filing a Government Code Claim will be tolled from the time Contractor submits its written Claim pursuant to Section 12.2, above, until the time that Claim is denied in whole or in part at the conclusion of the meet and confer process, including any period of time used by the meet and confer process. However, if the Claim is submitted to mediation, the time for filing a Government Code Claim will be tolled until conclusion of the mediation, including any continuations, if the Claim is not fully resolved by mutual agreement of the parties during the mediation or any continuation of the mediation.

12.6 Tort Claims. This Article does not apply to tort claims and nothing in this Article is intended nor will be construed to change the time periods for filing tort-based Government Code Claims.

12.7 Arbitration. It is expressly agreed, under Code of Civil Procedure § 1296, that in any arbitration to resolve a dispute relating to this Contract, the arbitrator’s award must be supported by law and substantial evidence.

12.8 Burden of Proof and Limitations. Contractor bears the burden of proving entitlement to and the amount of any claimed damages. Contractor is not entitled to damages calculated on a total cost basis, but must prove actual damages. Contractor is not entitled to speculative, special, or consequential damages, including home office overhead or any form of overhead not directly incurred at the Project site or any other Worksite; lost profits; loss of productivity; lost opportunity to work on other projects; diminished bonding capacity; increased cost of financing for the Project; extended capital costs; nonavailability of labor, material or equipment due to delays; or any other indirect loss arising from the Contract. The Eichleay Formula or similar formula will not be used for any recovery under the Contract. The City will not be directly liable to any Subcontractor or supplier.

12.9 Legal Proceedings. In any legal proceeding that involves enforcement of any requirements of the Contract Documents, the finder of fact will receive detailed instructions on the meaning and operation of the Contract Documents, including conditions, limitations of liability, remedies, claim procedures, and other provisions bearing on the defenses and theories of liability. Detailed findings of fact will be requested to verify enforcement of the Contract Documents. All of the City’s remedies under the Contract Documents will be construed as cumulative, and not exclusive, and the City reserves all rights to all remedies available under law or equity as to any dispute arising from or relating to the Contract Documents or performance of the Work.

12.10 Other Disputes. The procedures in this Article 12 will apply to any and all disputes or legal actions, in addition to Claims, arising from or related to this Contract, including disputes regarding suspension or early termination of the Contract, unless and only to the extent that compliance with a procedural requirement is expressly and specifically waived by City. Nothing in this Article is intended to delay suspension or termination under Article

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Article 13 - Suspension and Termination

13.1 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct Work in accordance with the Contract Documents, including non-compliance with applicable environmental or health and safety Laws, City may immediately order the Work, or any portion of it, suspended until the circumstances giving rise to the suspension have been eliminated to City’s satisfaction. (A) Notice of Suspension. Upon receipt of City’s written notice to suspend the Work, in whole or in part, except as otherwise specified in the notice of suspension, Contractor and its Subcontractors must promptly stop Work as specified in the notice of suspension; comply with directions for cleaning and securing the Worksite; and protect the completed and in-progress Work and materials. Contractor is solely responsible for any damages or loss resulting from its failure to adequately secure and protect the Project.
(B) Resumption of Work. Upon receipt of the City’s written notice to resume the suspended Work, in whole or in part, except as otherwise specified in the notice to resume, Contractor and its Subcontractors must promptly re-mobilize and resume the Work as specified; and within ten days from the date of the notice to resume, Contractor must submit a recovery schedule, prepared in accordance with the Contract Documents, showing how Contractor will complete the Work within the Contract Time. (C) Failure to Comply. Contractor will not be entitled to an increase in the Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents.
(D) No Duty to Suspend. City’s right to suspend the Work will not give rise to a duty to suspend the Work, and City’s failure to suspend the Work will not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents.

13.2 Suspension for Convenience. City reserves the right to suspend, delay, or interrupt the performance of the Work in whole or in part, for a period of time determined to be appropriate for City’s convenience. Upon notice by City pursuant to this provision, Contractor must immediately suspend, delay, or interrupt the Work and secure the Project site as directed by City except for taking measures to protect completed or inprogress Work as directed in the suspension notice, and subject to the provisions of Section 13.1(A) and (B), above. If Contractor submits a timely request for a Change Order in compliance with Articles 5 and 6, the Contract Price and the Contract Time will be equitably adjusted by Change Order pursuant to the terms of Articles 5 and 6 to reflect the cost and delay impact occasioned by such suspension for convenience, except to the extent that any such impacts were caused by Contractor’s failure to comply with the Contract Documents or the terms of the suspension notice or notice to resume. However, the Contract Time will only be extended if the suspension causes or will cause unavoidable delay in Final Completion. If Contractor disputes the terms of a Change Order issued for such equitable adjustment due to suspension for convenience, its sole recourse is to comply with the Claim procedures in Article 12.

13.3 Termination for Default. City may declare that Contractor is in default of the Contract for a material breach of or inability to fully, promptly, or satisfactorily perform its obligations under the Contract.
(A) Default. Events giving rise to a declaration of default include Contractor’s refusal or failure to supply sufficient skilled workers, proper materials, or equipment to perform the Work within the Contract Time; Contractor’s refusal or failure to make prompt Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 55
payment to its employees, Subcontractors, or suppliers or to correct defective Work or damage; Contractor’s failure to comply with Laws, or orders of any public agency with jurisdiction over the Project; evidence of Contractor’s bankruptcy, insolvency, or lack of financial capacity to complete the Work as required within the Contract Time; suspension, revocation, or expiration and nonrenewal of Contractor’s license or DIR registration; dissolution, liquidation, reorganization, or other major change in Contractor’s organization, ownership, structure, or existence as a business entity; unauthorized assignment of Contractor’s rights or duties under the Contract; or any material breach of the Contract requirements.
(B) Notice of Default and Opportunity to Cure. Upon City’s declaration that Contractor is in default due to a material breach of the Contract Documents, if City determines that the default is curable, City will afford Contractor the opportunity to cure the default within ten days of City’s notice of default, or within a period of time reasonably necessary for such cure, including a shorter period of time if applicable. (C) Termination. If Contractor fails to cure the default or fails to expediently take steps reasonably calculated to cure the default within the time period specified in the notice of default, City may issue written notice to Contractor and its performance bond surety of City’s termination of the Contract for default. (D) Waiver. Time being of the essence in the performance of the Work, if Contractor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond within seven calendar days from the date of the notice of termination pursuant to paragraph (C), City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety will be jointly and severally liable for any additional cost incurred by City to complete the Work following termination, where “additional cost” means all cost in excess of the cost City would have incurred if Contactor had timely completed Work without the default and termination. In addition, City will have the right to immediate possession and use of any materials, supplies, and equipment procured for the Project and located at the Project site or any Worksite on City property for the purposes of completing the remaining Work.
(E) Compensation. Within 30 days of receipt of updated as-builts, all warranties, manuals, instructions, or other required documents for Work installed to date, and delivery to City of all equipment and materials for the Project for which Contractor has already been compensated, Contractor will be compensated for the Work satisfactorily performed in compliance with the Contract Documents up to the effective date of the termination pursuant to the terms of Article 8, Payment, subject to City’s rights to withhold or deduct sums from payment otherwise due pursuant to Section 8.3, and excluding any costs Contractor incurs as a result of the termination, including any cancellation or restocking charges or fees due to third parties. If Contractor disputes the amount of compensation determined by City, its sole recourse is to comply with the Claim Procedures in Article 12, by submitting a Claim no later than 30 days following notice from City of the total compensation to be paid by City. (F) Wrongful Termination. If Contractor disputes the termination, its sole recourse is to comply with the Claim procedures in Article 12. If a court of competent jurisdiction or an arbitrator later determines that the termination for default was wrongful, the termination will be deemed to be a termination for convenience, and Contractor’s damages will be strictly limited to the compensation provided for termination for convenience under Section 13.4, below. Contractor waives any claim for any other damages for wrongful termination including special or consequential damages, lost Large Trash Capture Device Installation 2022 Form GENERAL CONDITIONS C441145610 Page 56
opportunity costs, or lost profits, and any award of damages is subject to Section 12.8, Burden of Proof and Limitations.

13.4 Termination for Convenience. City reserves the right, acting in its sole discretion, to terminate all or part of the Contract for convenience upon written notice to Contractor. (A) Compensation to Contractor. In the event of City’s termination for convenience, Contractor waives any claim for damages, including for loss of anticipated profits from the Project. The following will constitute full and fair compensation to Contractor, and Contractor will not be entitled to any additional claim or compensation:
(1) Completed Work. The value of its Work satisfactorily performed as of the date notice of termination is received, based on Contractor’s schedule of values and unpaid costs for items delivered to the Project site that were fabricated for incorporation in the Work;
(2) Demobilization. Demobilization costs specified in the schedule of values, or if demobilization costs were not provided in a schedule of values pursuant to Section 8.1, then based on actual, reasonable, and fully documented demobilization costs; and
(3) Termination Markup. Five percent of the total value of the Work performed as of the date of notice of termination, including reasonable, actual, and documented costs to comply with the direction in the notice of termination for convenience, and demobilization costs, which is deemed to cover all overhead and profit to date.
(B) Disputes. If Contractor disputes the amount of compensation determined by City pursuant to paragraph (A), above, its sole recourse is to comply with the Claim procedures in Article 12, by submitting a Claim no later than 30 days following notice from City of total compensation to be paid by City.

13.5 Actions Upon Termination for Default or Convenience. The following provisions apply to any termination under this Article, whether for default or convenience, and whether in whole or in part.
(A) General. Upon termination, City may immediately enter upon and take possession of the Project and the Work and all tools, equipment, appliances, materials, and supplies procured or fabricated for the Project. Contractor will transfer title to and deliver all completed Work and all Work in progress to City. (B) Submittals. Unless otherwise specified in the notice of termination, Contractor must immediately submit to City all designs, drawings, as-built drawings, Project records, contracts with vendors and Subcontractors, manufacturer warranties, manuals, and other such submittals or Work-related documents required under the terms of the Contract Documents, including incomplete documents or drafts.
(C) Close Out Requirements. Except as otherwise specified in the notice of termination, Contractor must comply with all of the following:
(1) Immediately stop the Work, except for any Work that must be completed pursuant to the notice of termination and comply with City’s instructions for cessation of labor and securing the Project and any other Worksite(s). (2) Comply with City’s instructions to protect the completed Work and materials, using best efforts to minimize further costs.

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(3) Contractor must not place further orders or enter into new subcontracts for materials, equipment, services or facilities, except as may be necessary to complete any portion of the Work that is not terminated. (4) As directed in the notice, Contractor must assign to City or cancel existing subcontracts that relate to performance of the terminated Work, subject to any prior rights, if any, of the surety for Contractor’s performance bond, and settle all outstanding liabilities and claims, subject to City’s approval. (5) As directed in the notice, Contractor must use its best efforts to sell any materials, supplies, or equipment intended solely for the terminated Work in a manner and at market rate prices acceptable to City.
(D) Payment Upon Termination. Upon completion of all termination obligations, as specified herein and in the notice of termination, Contractor will submit its request for Final Payment, including any amounts due following termination pursuant to this Article

13. Payment will be made in accordance with the provisions of Article 8, based on the portion of the Work satisfactorily completed, including the close out requirements, and consistent with the previously submitted schedule of values and unit pricing, including demobilization costs. Adjustments to Final Payment may include deductions for the cost of materials, supplies, or equipment retained by Contractor; payments received for sale of any such materials, supplies, or equipment, less re-stocking fees charged; and as otherwise specified in Section 8.3, Adjustment of Payment Application. (E) Continuing Obligations. Regardless of any Contract termination, Contractor’s obligations for portions of the Work already performed will continue and the provisions of the Contract Documents will remain in effect as to any claim, indemnity obligation, warranties, guarantees, submittals of as-built drawings, instructions, or manuals, record maintenance, or other such rights and obligations arising prior to the termination date.

Article 14 - Miscellaneous Provisions

14.1 Assignment of Unfair Business Practice Claims. Under Public Contract Code § 7103.5, Contractor and its Subcontractors agree to assign to City all rights, title, and interest in and to all causes of action it may have under section 4 of the Clayton Act (15 U.S.C. § 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 Contract or any subcontract. This assignment will be effective at the time City tenders Final Payment to Contractor, without further acknowledgement by the parties.

14.2 Provisions Deemed Inserted. Every provision of law required to be inserted in the Contract Documents is deemed to be inserted, and the Contract Documents will be construed and enforced as though such provision has been included. If it is discovered that through mistake or otherwise that any required provision was not inserted, or not correctly inserted, the Contract Documents will be deemed amended accordingly.

14.3 Waiver. City’s waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of the Contract Documents will not be effective unless it is in writing and signed by City. City’s waiver of any breach, failure, right, or remedy will not be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless specified in writing by City.

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14.4 Titles, Headings, and Groupings. The titles and headings used and the groupings of provisions in the Contract Documents are for convenience only and may not be used in the construction or interpretation of the Contract Documents or relied upon for any other purpose.

14.5 Statutory and Regulatory References. With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that bids were due.

14.6 Survival. The provisions that survive termination or expiration of this Contract include Contract Section 11, Notice, and subsections 12.1, 12.2, 12.3, 12.4, 12.5, and 12.6, of Section 12, General Provisions; and the following provisions in these General Conditions:

Section 2.2(J), Contractor’s Records, Section 2.3(C), Termination, Section 3.7, Ownership, Section 4.2, Indemnity, Article 12, Dispute Resolution, and Section 11.2, Warranty.

END OF GENERAL CONDITIONS
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 2.i
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller,
Director of Public Works
City Manager Approval: ______________
TOPIC: MARIN EMERGENCY RADIO AUTHORITY
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND

AMENDMENT TO THE COMMUNICATIONS SITE LICENSE AGREEMENT WITH THE

MARIN EMERGENCY RADIO AUTHORITY (MERA)
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a second amendment to the Communications Site License Agreement (“Agreement”) with the Marin Emergency Radio Authority (MERA).

BACKGROUND:

MERA is a countywide radio communications system that provides integrated communications across Marin County. In February 2001, the City Council approved entering into the Agreement with MERA permitting the installation of telecommunications facilities on City property atop Dollar Hill. The approval included the issuance of a 1) Environmental and Design Review Permit (ED00-53) and 2) Use Permit (UP00-43), subject to conditions. The installation included upgrading the existing 16 communication sites to MERA’s Next Generation Radio Communication System.

In March 2020, the City Council approved the execution of the first amendment to the Agreement with MERA, allowing upgrades to its radio communications system. The upgrades included improved capabilities during daily service and critical emergencies. The approval also included the integration of new sites where public and private telecommunications facilities already existed. Telecommunication facility infrastructure included towers, microwave dishes, antennas, a radio shelter, and emergency power generators.

ANALYSIS:

The proposed request is for consideration of the second amendment to the Agreement with MERA to allow changes to its terms and conditions. Specifically, the proposed amendment would modify the Agreement’s Section 3 ”Commencement Date and Term”.

The original Agreement was approved on February 5, 2001, noting the Agreement would continue for a period of five years (2006), with options to extend. Since that time, the Agreement has been extended for four (4) additional five (5) year terms to 2026 as permitted under the Agreement. Section 3, Paragraph SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
A of the proposed second amendment establishes the Agreement's “original term” from February 5, 2001, through February 1, 2031.

No other substantive changes are proposed in the second amendment to the Agreement with MERA.

Under the second amendment and subject to conditions specified therein, the Licensee (MERA) retains the right to extend the Agreement for four (4) additional five (5) year terms.

Staff recommends that the City Council approve the resolution and authorize the City Manager to execute the second amendment to the Agreement with MERA for emergency communications service.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

OPTIONS:

The City Council has the following options to consider relating to this matter:

1. Adopt a resolution authorizing the City Manager to execute a second amendment to the Site Communications Site License Agreement with MERA.

2. Do not adopt the resolution and provide direction to staff.

RECOMMENDED ACTION:

ATTACHMENTS:

1. Resolution

2. Exhibit 1 to Resolution: Second Amendment to the Agreement

3. First Amendment to the Agreement

4. Original Agreement

Page 1 of 1 ends

San Rafael City CouncilMay 18, 2026

San Rafael City Council
May 18, 2026