Santa Maria City Council
June 20, 2023

CITY COUNCIL AGENDA

CITY OF SANTA MARIA, CALIFORNIA

Tuesday, June 20, 2023, 5:30 p.m.

Oral Comments during the meeting:

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*All written correspondence will be distributed to Councilmembers and attached to the associated meeting agenda (under Public Comment or Agenda Item); however, submissions received after the deadline will not be processed until the following day.

How to watch the meeting from home:

Comcast Channel 23 - Live during the meeting, and rebroadcast on Thursday at 9:00 a.m. after the meeting and again on Tuesday at 5:30 p.m. the following week.

1. Live Webcast - Online from the Agenda Center & Meetings Portal (select meeting date) or at https://video.isilive.ca/santamaria/live.html. Note - When no meeting is streaming, the window will read "Searching for live stream."

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3. start of the meeting. There is a delay of about 15-30 seconds with both the Live Webcast and YouTube Live Stream.

Zoom Meeting Portal - Registration is required (link above) even for observing the meeting.4.

American Disability Act Accommodations:

Any member of the public who needs accommodations should email the City Clerk’s Office at [email protected] or call 805-925-0951 x2306. The City Clerk’s Office will use its best efforts to provide reasonable accommodation by request at least 48 hours ahead of the meeting.

1. INVOCATION

2. PLEDGE OF ALLEGIANCE

3. CALL TO ORDER
ROLL CALL: Councilmember Aguilera-Hernandez, Councilmember Cordero, Councilmember Escobedo, Councilmember Soto, and Mayor Patino

4. PROCLAMATIONS

4.a Proclamation – Recreation and Parks Month, July 2023 Present a Proclamation recognizing July 2023 as Recreation and Parks Month in the City of Santa Maria.

4.b Proclamation – Juneteenth Independence Day – June 19, 2023 Present a Proclamation recognizing June 19, 2023, as Juneteenth Independence Day in the City of Santa Maria.

5. PUBLIC COMMENT PERIOD
(NOT TO EXCEED A TOTAL OF 15 MINUTES)
The City Council values your input. Instructions are provided above (page 1) for communicating with the City Council. Individual speakers are limited to three minutes or as directed by the Mayor.

6. CONSENT CALENDAR
The following routine items are presented for City Council approval without discussion as a single agenda item in order to expedite the meeting. The Consent Calendar is approved by roll call vote with one motion. These items are discussed only on request of Councilmembers. Members of the public may speak on Consent Calendar items during the Public Comment Period.

SHOULD A COUNCILMEMBER WISH TO DISCUSS OR DISAPPROVE ANY ITEM, it must be dropped from the blanket motion of approval and considered as a separate item.

RECOMMENDATION:

Adopt the Consent Calendar as submitted.

6.a CITY MANAGER/CITY CLERK DEPARTMENT

6.a.1 Ordinances and Resolutions
RECOMMENDATION:

Waive the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.

6.a.2 Approval of Minutes
RECOMMENDATION:

Approve the Minutes of the regular City Council meeting of June 6, 2023.

6.a.3 Request to Cancel the July 4, 2023, City Council Meeting The City Council will consider approving the cancellation of the regular City Council meeting scheduled on July 4, 2023.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution cancelling the regular City Council meeting scheduled on July 4, 2023.

6.b FINANCE DEPARTMENT

6.b.1 Payment of Warrants
RECOMMENDATION:

Order ratified subject to having been certified as being in conformity with the budget and having been approved for payment by the Director of Finance.

6.b.2 Payment of Payroll
RECOMMENDATION:

Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

6.b.3 2023 Investment Policy
The City Council will consider the annual Investment Policy for which the primary objectives are for the safety, liquidity, and yield of the City’s investment activities.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution approving the City of Santa Maria’s 2023 Investment Policy.

6.c PUBLIC WORKS DEPARTMENT

6.c.1 FY 2023-2024 Road Maintenance and Rehabilitation Account Project List for Senate Bill 1, The Road Repair and Accountability Act of 2017 The City Council will consider a Road Maintenance and Rehabilitation

Account Project List for Fiscal Year 2023-2024.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution approving a Road Maintenance and Rehabilitation Account Project List to be funded by the Road Repair and Accountability Act of 2017, Senate Bill 1, and incorporated into Fiscal Year 2023-2024 budget.

6.c.2 Award of Bid for Phase I of Enos Ranch Project, Bid No. 2023/06 The City Council will consider awarding the bid for the construction Phase I of the Enos Ranch Project, Bid No. 2023/06 to The J.F. Will Company Inc., in the amount of $390,044.70.

Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 – Existing facilities (operation, repair, maintenance, leasing, etc.) of the California Environmental Quality Act State Guidelines because the scope of work to be conducted is an existing public facility with negligible expansion of the existing uses.

RECOMMENDATION:

Adopt a Resolution awarding the bid and approving an agreement with The J.F. Will Company, Inc., Phase I of the Enos Ranch Project, Bid No. 2023/06.

6.c.3 Award of Professional Services Agreements for Municipal Improvements Job- Order Pavement Repairs
The City Council will consider awarding Professional Services Agreements for Municipal Improvements Job-Order Pavement Repairs to V. Lopez Jr. & Sons, Inc., Main Line Engineering Construction, Inc., and to R. Burke Corporation to provide additional resources to repair and replace hot-mixed asphalt on existing street segments and emergency repairs, as deemed necessary.

Environmental Notice: The City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

RECOMMENDATION:

1.  Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job-Order Pavement Repairs to V. Lopez Jr. & Sons, Inc.

RECOMMENDATION:

2. Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job-Order

Pavement Repairs to Main Line Engineering Construction, Inc.

RECOMMENDATION:

3.  Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job-Order Pavement Repairs to R. Burke Corporation.

6.d RECREATION & PARKS DEPARTMENT

6.d.1 Adoption of Engineer’s Reports and Intent to Levy and Collect the 2023 – 2024 Landscape Assessments
The City Council will consider the annual Engineer’s Reports for the City’s Landscape Maintenance Districts and Special Benefit Zones, and set the public hearing to consider the annual Districts’ assessments.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

1.  Adopt a Resolution approving the Engineer’s Reports for the 2023-24 Landscape Maintenance Districts and Special Benefit Zones assessment proceedings.

RECOMMENDATION:

2. Adopt a Resolution declaring the intent to levy and collect the landscape maintenance assessments for Fiscal Year 2023-24, and setting a Public Hearing for July 18, 2023, to consider the proposed assessments for the Landscape Maintenance Districts and 19 Special Benefit Zones.

6.d.2 Agreement with the California Conservation Corps for use of the Newlove Neighborhood Center
The City Council will consider approving an Agreement with the California Conservation Corps (CCC) for use of a portion of the Newlove Neighborhood Center to locate their Santa Maria CCC programs in exchange for 3,000 annual hours of crew work.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution approving an agreement with the California Conservation Corps granting the use of the Newlove Neighborhood Center.

6.e UTILITIES DEPARTMENT

6.e.1 Second Amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority
The City Council will consider an amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority (“CCWA”) to facilitate

water management strategies for increasing the reliability of State Water through water storage activities for the benefit of CCWA member agencies.

Environmental Notice: The activity is not a “Project” as defined under Section 15378(b)(5) and the “common sense” exemption under Section 15061(b)(3) of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(2) and (3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution authorizing the execution of the Second Amendment to the Joint Exercise of Powers Agreement Creating the Central Coast Water Authority.

6.e.2 Agreement for Services for Operations and Management of the Santa Maria Regional Landfill Recycling Park
The City Council will consider approving an agreement for services with Santa Maria Area Recycling Terminal, LLC for an estimated annual cost of $1,300,000 to operate and manage the Santa Maria Regional Landfill Recycling Park.

Environmental Notice: The Project was adequately covered in the previously adopted Santa Maria Regional Landfill Site Facility Permit Final Second Supplemental Environmental Impact Report (SCH#92031045).

RECOMMENDATION:

Adopt a Resolution approving an Agreement for Services with Santa Maria Area Recycling Terminal, LLC for operations and management of the Santa Maria Regional Landfill Recycling Park.

7. PRESENTATIONS

7.a Pavement Management Update 2023
The City Council will receive a presentation on City roadway condition and maintenance programs.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Receive presentation and file.

8. REGULAR BUSINESS
ORDER OF PROCEEDINGS FOR REGULAR BUSINESS ITEMS:

Council Agenda Report to be given.

Questions from the City Council.

Written communications/Public input.

City Council discussion and action.

8.a Amendments to the Previously Adopted 2023-24 City Budget (Second Year of the Approved Two-Year Budget)
The City Council will consider making amendments to the 2023-24 mid-cycle City

Budget and receive two presentations on two Citywide initiatives: Smart City, Safe City and Neighborhood Connect.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

1.  Adopt a Resolution approving amendments to the 2023-24 mid-cycle City Budget.

RECOMMENDATION:

2.  Provide policy direction to staff on the launching of two Citywide initiative programs: Smart City, Safe City, and Neighborhood Connect.

9. REPORT BY CITY MANAGER

10. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB1234

REPORTS)

11. ADJOURNMENT

PLEASE NOTE:

The next regular meeting of the City Council will be held on July 18, 2023, at 5:30 p.m. The deadline for submitting items for the July 18th meeting is July 5th.

City Council Meetings are televised live on Comcast cable television channel 23 and are rebroadcast at 9:00 a.m. on the next Thursday and on the following Tuesday at 5:30 p.m.

Council Meeting videos are also available for viewing on the City’s website. Your attendance at this public meeting may result in the recording and broadcast of your image and/or voice.

If you challenge a determination made on a matter on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described on this agenda, or in written correspondence to the city council at, or prior to, the public hearing.

CITY COUNCIL MEETING INFORMATION AND PROCESS:

This agenda is prepared and posted pursuant to Government Code Section 54954.2. By listing a topic on this agenda, the City Council has expressed its intent to discuss and act on each item. In addition to any action identified in the summary description of each item, the action that may be taken by the City Council shall include: a referral to staff with specific requests for information; continuance; specific direction to staff concerning the policy or mission of the item; discontinuance of consideration; authorization to enter into negotiations and execute agreements pertaining to the item; adoption or approval; and disapproval. Items not on the agenda may not be discussed or acted upon except under emergency circumstances. (Government Code Section 54954.2).

Copies of the staff reports or other documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk and available for public inspection during City Hall business hours the Friday before the meeting. Any written correspondence or documents provided to a majority of the City Council after distribution of the Agenda will

also be available for public inspection in the Office of the City Clerk. If requested, the agenda and supporting documents shall be made available in alternative formats to persons with a disability. The City Clerk’s Office will answer any questions regarding the agenda.

Materials related to an item on this agenda submitted after distribution of the agenda packet will also be available with the agenda material for public inspection during normal business hours in the City Clerk’s Office, 110 E. Cook Street, Santa Maria. Subject to the ability to post the documents prior to the meeting, such documents will also be available on the City’s meetings website portal for the current City Council meeting at https://cityofsantamaria.org/meetings.

The City of Santa Maria welcomes orderly participation at its meetings from all members of the public. Orderly participation means speaking only on items of City business or on subjects within the City’s control. Though the City Council wants to hear your concerns and values your input, it is inappropriate to defame, yell, use profane language, interrupt, or disrupt the meeting. All cellular telephones are to be turned off or set to vibrate, and signs are not to be displayed in a manner that violates the rights of others or prevents others from watching or fully participating in the Council meeting. Pursuant to Government Code Section 36813, the Mayor is authorized to prohibit such conduct, up to and including ordering anyone that disrupts the meeting to be removed from the City Council Chambers.

To receive reasonable accommodation under the Americans with Disabilities Act during the meeting, please notify the City Clerk’s office of your needs during business hours at least 48 hours in advance of the meeting (typically before 3 p.m. on the Thursday before the meeting). The Office of the City Clerk is located at 110 East Cook Street in Santa Maria; telephone (805) 925-0951, extension 2307. The City will give primary consideration to your request in providing assistance. Examples of assistance may include exhibits in large-sized format, use of assisted listening equipment, use of the California Relay Service, texting by cellular phone, or the services of a live interpreter.

Assisted listening equipment can also be used for interpretation by Spanish-only speaking persons. To allow the City to coordinate and request a Spanish interpreter from the volunteer corps, contact the Office of the City Clerk by 1:00 p.m. on Monday before the meeting.

Equipo también puede ser utilizado para la asistencia de interpretación para esas personas que solamente hablan español. Para permitirle a la Ciudad que coordine y solicite un interprete de un grupo de voluntarios, llame al (805) 925-0951 extensión 2307 a la 1:00 de la tarde el lunes antes de la junta.

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Recreation and Parks

SUBJECT: Proclamation – Recreation and Parks Month, July 2023

Present a Proclamation recognizing July 2023 as Recreation and Parks Month in the City of Santa Maria.

BACKGROUND:

Since 1985, Americans have commemorated Recreation and Parks Month in July aiming to foster robust, healthy, and resilient communities by harnessing the potential of recreation and parks. This month also serves as a tribute to the dedicated efforts of over 160,000 full-time park and recreation professionals, in addition to the countless part-time, seasonal workers, and volunteers. Their unwavering commitment ensures the upkeep of the nation's local, state, and community parks.

DISCUSSION:

The City observes "Recreation and Parks Month" as a means to appreciate the invaluable role of recreation and leisure services in fostering a united community. Extensive research has demonstrated that the social advantages of recreation play a pivotal role in cultivating a society characterized by pride and self-sufficiency. By offering parks, open spaces, and safeguarded natural environments, recreation actively contributes to the environmental well-being of our community. Moreover, studies have highlighted the economic merits of investing in parks and recreation services, including improved health outcomes, incentives for business growth and relocation, and a notable reduction in the costly ramifications of vandalism and criminal activities.

Attachment: Proclamation

City of Santa Maria
Santa Maria, California
Proclamation

WHEREAS, the City of Santa Maria recognizes the importance of recreation and parks as an integral part of the community; and

WHEREAS, recreation and parks promote health and wellness, provide opportunities to spend time in nature, improving mental health, cognitive performance, and alleviating illnesses such as depression, attention deficit disorders, and Alzheimer’s; and

WHEREAS, recreation and parks encourage physical activities by p roviding spaces for popular sports, hiking trails, swimming pools, and many other activities designed to promote active lifestyles; and

WHEREAS, recreation and park programming and education activities, such as out- of-school time programming, youth sports, and environmental education, are critical to childhood development; and

WHEREAS, recreation and parks increases a community’s economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction.

NOW THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria, hereby recognize July 2023 as:

“RECREATION AND PARKS MONTH”

in the City of Santa Maria and encourage residents and community members to partake in recreation and parks activities and enjoy the array of opportunities within the City’s parks, facilities, and recreation programs.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 20th day of June 2023.

Alice M. Patino, Mayor

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Chief Deputy City Clerk

SUBJECT: Proclamation – “Juneteenth Independence Day” – June 19, 2023

Present a Proclamation recognizing June 19, 2023, as Juneteenth Independence Day in the City of Santa Maria.

BACKGROUND:

In honor of Black ancestors, to celebrate freedom, and showcase Black joy and culture on the Central Coast, Santa Barbara County Cities will celebrate Juneteenth from June 16 – 23, 2023.

NAACP Santa Barbara and the Santa Maria -Lompoc NAACP invite everyone to participate in annual Juneteenth events where community members unite to celebrate the liberation of enslaved African Americans in the United States. For more information on the festivities, go to santamarialompocnaacp.org or juneteenthsb.org.

The community events will also honor local Black artists, performers, and organizations and provide free food, dancing, and singing.

Attachment: Proclamation

City of Santa Maria
Santa Maria, California
Proclamation

WHEREAS, news of the end of chattel slavery did not reach the frontier areas of the United States, in particular the State of Texas, until months after the conclusion of the Civil War, more than two and a half years after President Abraham Lincoln issued the Emancipation Proclamation on “rebellious states,” on January 1, 1863; and

WHEREAS, Union troops, led by General Gordon Granger, entered Galveston, Texas on June 19, 1865, issuing General Order Number Three, which ordered enslaved African people in Texas to be free and stated that “this involves an absolute equality of personal rights and rights of property between former enslavers and enslaves;” and

WHEREAS, chattel slavery still continued in Union border states of Kentucky and Deleware, which was abolished by the ratification of the 13th Amendment to the US constitution in December of 1865; and

WHEREAS, Juneteenth allows us to celebrate the freeing of enslaved people and reflect on the condition of the lives of their descendants in our present day.

NOW, THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria, hereby recognize June 19, 2023, as:

“JUNETEENTH INDEPENDENCE DAY”

in the City of Santa Maria , and encourage all residents to use this time to learn about the legacy of Black peoples in the City of Santa Maria, County of Santa Barbara, State of California, and United States of America.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused t he Seal of the City of Santa Maria to be affixed hereto this 20th day of June 2023.

___________________________________
Alice M. Patino, Mayor

1 CITY COUNCIL MEETING MINUTES CITY OF SANTA MARIA, CALIFORNIA

June 6, 2023, 5:30 p.m.

City Hall Council Chambers
110 East Cook Street
Santa Maria

Roll Call: Mayor Alice Patino (remote participation per AB 2449 "Just Cause" Rule), Councilmember Maribel Aguilera-Hernandez, Councilmember Mike Cordero, Councilmember Carlos Escobedo, Councilmember Gloria Soto

Staff Present: City Manager Jason Stilwell, City Attorney Thomas Watson, Interim Fire Chief Bradley Dandridge, Director of Public Works Brett Fulgoni, Assistant City Manager Andrew Hackleman, Director of Finance Mary Harvey, Library Director Dawn Jackson, Chief Human Resources Officer Linda Le (remote), Chief Information Officer Jeffrey Marecic, Director of Recreation & Parks Alex Posada, Chief of Police Marc Schneider, Director of Utilities Shad Springer, Chief Deputy City Clerk Rhonda White, Deputy City Clerk Beth Cleary, Business Program Leader Alexandra Valadez, Principal Planner Frank Albro

_____________________________________________________________________

1. INVOCATION
Pastor Scott Campbell with South Valley Church gave the Invocation.

2. PLEDGE OF ALLEGIANCE
Councilmember Cordero led the Pledge of Allegiance.

3. CALL TO ORDER
Mayor Pro Tem Aguilera -Hernandez announced that Spanish interpretation services were available, and Mr. Antonio Bravo was the interpreter for the evening.

Chief Deputy City Clerk White announced that Mayor Patino would participate remotely pursuant to AB 2449, the new Brown Act remote participation rules. The announcement included that Mayor Patino must 1) participate with both audio and video technology; 2 ) provide a brief statement for “Just Cause” participation; and 3) announce if there were any persons 18 years of age or older present in the room with her, and if so, their relationship to her. Additionally, Mayor Patino could only utilize the “Just Cause” participation rule one additional time during the 2023 calendar year, as only two times per year are allowed per State law. All votes would be taken by roll call vote.

2 Mayor Patino announced that she was participating remotely due to a care -giving need in her family and that there was no one present with her that was 18 years or older.

Mayor Patino convened the meeting and called the meeting to order at 5:35 p.m.

4. PROCLAMATIONS
There were no Proclamations.

5. PUBLIC COMMENT PERIOD
Chief Deputy City Cl erk White announced that one written communication was received relating to Item 6.b.1 (Airport Land Use Compatibility Plan) on the Consent Calendar from Susan Bryant expressing neighborhood and proposed housing concerns which both are directly under two o f the approach paths at the airport. She also cited safety and noise issues with the continued cargo flights and military jet-pilot training.

There were no requests to speak.

6. CONSENT CALENDAR
Responding to Councilmember Escobedo's question on Item 6. e.1 (Grant Agreement with Santa Barbara County Air Pollution Control District), Director of Public Works Fulgoni indicated that the goal of the grant is to support the City's transition to a fully electric vehicle fleet.

Councilmember Escobedo commented th at Santa Maria would be the second in the nation to have a fully electric bus fleet.

Consent Calendar Items 6.a.1 through 6.e.2 were approved as presented, including the adoption of Resolution Nos. 2023 -87, 2023-88, 2023-89, and 2023 -90. The recorded vote appears with each item below.

Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Adopt the Consent Calendar as submitted.

Motion carried unanimously

6.a CITY MANAGER/CITY CLERK DEPARTMENT

6.a.1 Ordinances and Resolutions
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Waive the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.

3 Motion carried unanimously

6.a.2 Approval of Minutes
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Approve the Minutes of the regular City Council meeting of May 16, 2023.

Motion carried unanimously

6.b COMMUNITY DEVELOPMENT DEPARTMENT

6.b.1 Santa Barbara County Association of Government 2023 Airport Land Use Compatibility Plan Action: Adopted as Resolution No. 2023-87
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Adopt a Resolution recognizing the Santa Barbara County Association of Governments’ 2023 Airport Land Use Compatibility Plan.

Motion carried unanimously

6.c FINANCE DEPARTMENT

6.c.1 Payment of Warrants
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Order ratified subjec t to having been certified as being in conformity with the budget and having been approved for payment by the Director of Finance.

Motion carried unanimously

6.c.2 Payment of Payroll
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

Motion carried unanimously

4 6.d POLICE DEPARTMENT

6.d.1 Military Equipment Use Annual Report 2022-2023
Action: Adopted as Resolution No. 2023-88
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Adopt a Resolution approving the Annual Military Equipment Use Report 2022 -2023, including the acquisition of additional equipment and renewing Ordinance No. 2022 -03, adopting a Military Equipment Use Policy in compliance with Assembly Bill 481.

Motion carried unanimously

6.e PUBLIC WORKS DEPARTMENT

6.e.1 Grant Agreement with Santa Barbara County Air Pollution Control District for the 2022 Clean Air Grants Infrastructure Program
Action: Adopted as Resolution No. 2023-89
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Adopt a Resolution approving a grant agreement with the Santa Barbara County Air Pollution Control District for the 2022 Clean Air Grants Infrastructure Program for the construction of a City Fleet Electric Vehicle charging station.

Motion carried unanimously

6.e.2 Proposed Summary Vacation of a Portion of a Public Utility Easement at 1075 East Betteravia Road
Action: Adopted as Resolution No. 2023-90
Moved by: Councilmember Aguilera-Hernandez
Seconded by: Councilmember Escobedo
Adopt a Resolution summarily vacating a portion of an existing public utility easement over Lot 18 of Enos Ranchos Final Map, Tract 6000.

Motion carried unanimously

7. PRESENTATIONS

7.a American Rescue Plan Act (ARPA) – June 2023 Update

5 The City Council r eceived a presentation by Assistant City Manager Hackleman as detailed in the Council Agenda Report. He presented an update on the American Rescue Plan Act of 2021 (ARPA) projects and the actions taken by the City to advance projects consistent with City Council ARPA strategic priorities.

Laurie Tamura spoke in favor of expanding upon the Knudsen Improvement Project, stating that there is more work to be done in that area to move toward development. Ms. Tamura thanked City staff for their work on the admin istration of ARPA and requested that public input be solicited for further allocation of funds.

In response to Councilmember Aguilera -Hernandez's question, City Manager Jason Stilwell mentioned that additional ARPA money is currently allocated for contingency on existing projects, but that the City Council could decide on reallocating those funds to accommodate public input and the possibility of allocating more funding for the Knudsen Project.

8. REPORT BY CITY MANAGER
City Manager Stilwell reported that the next regular City Council meeting would be held on June 20, 2023. Items on the agenda would include cancellation of July 4th regular City Council meeting, Mid - Cycle Budget to include presentations of Smart City/Safe City and Neighborhood Connect, and a Pavement Management Update.

9. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB1234 REPORTS) Councilmember Cordero reported that he attended the Memorial Ceremony hosted by the Santa Maria Police Department, an interview with Dan Payne for the Pe rforming Arts Center Feasibility Study, Santa Maria Fire Department Golf Tournament, Central Coast Water Authority Meeting, Memorial Day Event at the Santa Maria Cemetery, Veterans' Ceremony at Santa Maria Elks, REACH Meeting, Broadband Digital Service Mee ting, Elected Leaders Forum on Homelessness, and Santa Maria Elks Rodeo Parade.

Councilmember Escobedo reported that he attended the Memorial Ceremony hosted by the Santa Maria Police Department, the Public Works Department Celebration, he was a Guest Spe aker at the Civic Engagement Presentation for the Parent Institute of Quality Education, Meet and Greet with Elks Rodeo Event, Por Vida Event by One Community Action, and Elks Rodeo Parade.

Councilmember Aguilera-Hernandez reported that she attended the B en Heighes Show, the Memorial Ceremony hosted by the Santa Maria Police Department, SBCAG Meeting, the West Coast Kustoms Dinner and Cruise Night Event, REACH Annual Appreciation Event, Elks Rodeo Parade, and Bradley Square Residents Meeting.

Councilmember Soto reported that she attended a meeting with Public Works.

Mayor Patino reported that she attended the Mayor's Teen Council's Museum and Excursions, West Coast Kustoms Car Show, and a meeting with Pictsweet and other businesses on Betteravia Road.

10. ADJOURNMENT

6 There being no further business before the City Council, Mayor Patino declared the City Council meeting adjourned at 6:17 p.m.

_________________________
Rhonda M. White, Chief Deputy City Clerk

_________________________
Alice M. Patino, Mayor

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Chief Deputy City Clerk

SUBJECT: Request to Cancel the July 4, 2023, City Council Meeting

Description:

The City Council will consider approving the cancel lation of the regular City Council meeting scheduled on July 4, 2023.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution cancelling the regular City Council meeting scheduled on July 4, 2023.

BACKGROUND:

Section 2-1.01 of the Santa Maria Municipal Code sets the time, day, and place for holding City Council meetings to discuss items of City business. The Council has the authority to cancel meetings due to lack of a quorum or lack of business items.

DISCUSSION:

While many cities go “dark” for a meeting or two during the summer months or holiday season, the Santa Maria City Council has always met on the first and third Tuesday of each month with no pre-determined scheduled breaks.

Due to the July 4th holiday being scheduled at the s ame time a Council meeting is scheduled, staff is recommending that the City Council cancel the first meeting in July and address any items that arise between now and then at the July 18, 20 23, Council meeting.

Fiscal Considerations
There is no foreseeable impact as a result of this agenda item.

Impact to the Community
While the public will not have the ability to bring concerns to the City Council on July 4, 2023, due to the cancellation of the meeting, Councilmembers and staff remain available

2 by email or telephone to address residents’ concerns during the regular business days prior to the holiday and thereafter.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, CANCELLING THE
REGULAR CITY COUNCIL MEETING ON JULY 4, 2023

WHEREAS, the City Council meets on a regular schedule twice a month , on the first and third Tuesdays; and

WHEREAS, the City Council has the authority to cancel meetings when necessary; and

WHEREAS, it has been determined that the conflicting Independence Day holiday warrants the cancellation of the July 4, 2023, City Council meeting.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Maria that the July 4, 2023, City Council meeting is cancelled.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 20th day of June 2023.

Mayor
ATTEST:

Chief Deputy City Clerk

APPROVED AS TO FORM:

By:

City Attorney

APPROVED AS TO CONTENT:

By:

Department Director

By:

City Manager

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Finance

SUBJECT: 2023 Investment Policy

Description:

The City Council will consider the annual Investment Policy for which the primary objectives are for the safety, liquidity, and yield of the City’s investment activities.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution approving the City of Santa Maria’s 2023 Investment Policy.

BACKGROUND:

California Government Code Section 53646 requires the Treasurer or Chief Fiscal Officer to annually submit a written Investment Policy to the City Council at a public meeting.

Typically, the investment policy is updated for changes in regulations and pres ented to the City Council every June.

Senate Bill 1489 (SB 1489), also known as the Local Government Omnibus Act of 2022, was passed and made a number of changes to Code Sections 53601 and 53646 , including several that impact the investment of public funds and the reporting practices of public agencies. On December 20, 2022, the City Council approved the amended 2022 Investment Policy that incorporated SB 1489 changes effective January 1, 2023.

DISCUSSION:

The Investment Policy incorporates objectives a nd policies from a variety of notable sources such as the California Municipal Treasurers' Association, the California Association of County Treasurers and Tax Collectors, the California Society of Municipal Finance Officers, the State of California Local Agency Investment Fund (LAIF), and Joint Powers Authority (Local Government Investment Pools).

The City’s Investment Policy:

1. Appoints the Director of Finance as the Investment Officer of the City; and

2. Assigns responsibility for investments to the Investment Officer; and

2 3. Establishes an Investment Oversight Committee consisting of the City Manager, Director of Finance, City Attorney, and a City Councilmember; and

4. Defines the investment objectives as:
a. Safety: Safety of principal is the foremost objective of the investment program; and
b. Liquidity: The funds of the City shall be maintained liquid enough to meet all anticipated requirements; and
c. Yield and Average Market Rate of Return: After considering safety and liquidity, the investment program shall seek a market-average rate of return; and
d. Diversification: The portfolio shall be sufficiently diversified to avoid unreasonable risk; and
e. Prudence: Sets standards to be used by the Investment Officer as "prudent investor" (Government Code Section 53600.3); and
f. Public Trust: All participants in the investment process are custodians of public funds and trust.

5. Requires that the City Treasurer submit a monthly investment report to the City Council; and

6. Authorizes and defines the suitable investments for City funds; and

7. Requires that a written system of internal controls be designed to prevent losses from fraud, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by investment officers of the City; and

8. Requires that the Investment Policy be annually reviewed by the City’s Investment Oversight Committee and submitted to the City Council for adoption.

The Investment Policy indicates that the types of authorized investments are those types of investments allowed in Government Code Section 53600.3, and limited to:

1. LAIF; and

2. Obligations of the Federal or State government; and

3. Certificates of Deposit; and

4. Bankers' Acceptances/Commercial Paper; and

5. Money Market Mutual Funds; and

6. Medium-term Corporate Notes; and

7. California and California Local Agency Municipal Obligations; and

8. Supranationals; and

9. Joint Powers Authority (Local Government Investment Pools).

In addition to the investments listed above, government statutes authorize the use of other investment instruments, such as reverse repurchase agreements and derivatives; however, the Investment Officer is not authorized to purchase or use reverse repurchase agreements or derivatives in any form. Reverse repurchase agreements constitute short- term borrowing using securities as collateral. Derivatives are contracts whose value is tied to the price of some other asset, such as stocks, bonds, commodities, or currencies.

Based on consultation with the City’s asset management advisor, the PFM Group, staff recommends no changes to the 2023 Investment Policy.

3 Investment Oversight Committee
The members of the Investment Oversight Committee have reviewed the policy and recommend that the City Council approve the 2023 Investment Policy as presented.

Fiscal Considerations
There are no direct costs associated with the Investment Policy. Investments are earning a fair market rate of return. Issues of safety and liquidi ty of funds comply with the Investment Policy.

Impact to the Community
Adherence to the provisions of the Investment Policy will continue to provide for the safe investment of public funds. The policy authorizes conservative investments and provides a framework for a "buy and hold" philosophy, as opposed to that of a "market trader."

ATTACHMENT A – Memorandum dated June 1, 2023 (The PFM Group)_2023-06-20

1 June 1, 2023

Memorandum

To: Mary Harvey, Director of Finance
Angie Hernandez, Revenue Manager
City of Santa Maria

From: Monique Spyke, Managing Director
PFM Asset Management LLC

Re: Investment Policy Review

PFM Asset Management LLC has completed its review of the City of Santa Maria’s (“the City”) 2023 Investment Policy (the “Policy”). The Policy is well written and in compliance with the sections of the California Government Code (the “Code”). Furthermore, no changes were made to the Code since the Policy’s last review that require any changes to the Policy.

Please let us know if you have any questions and if you would like to schedule a call to discuss our review further. Thank you.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA, CALIFORNIA, APPROVING THE CITY OF SANTA MARIA’S 2023 INVESTMENT POLICY

WHEREAS, the City Council of the City of Santa Maria has directed the City’s Investment Officer to annually submit an Investment Policy to the City Council; and

WHEREAS, the Investment Policy has been reviewed by the City Council.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1) Approves and adopts t he City of Santa Maria’s 2023 Investment Policy (Exhibit A); and

2) Authority for implementation and oversight responsibility of the 202 3 Investment Policy is delegated to the City’s Investment Officer; and

3) The Chief Deputy City Clerk is hereby au thorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria on this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

Exhibit A: 2023 City Investment Policy
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

EXHIBIT A
City of Santa Maria
2023 Investment Policy

I. INTRODUCTION
It is the goal of the City of Santa Maria (City) to invest public funds in a manner that will provide maximum security, adequate liquidity, and sufficient yield, while meeting the daily cash flow demand of the City and conforming to all statutes and regulations governing the investment of public funds. The 2023 Investment Policy (Policy) identifies the formal policies and procedures that comprise good cash management and a secure short-term investment program.

II. SCOPE
This investment policy applies to all the financial assets of the City. These funds are accounted for in the City’s audited Annual Comprehensive Financial Report. If the City should invest funds on behalf of another agency and, if that agency does not have an investment policy, the City’s Policy shall govern the agency’s investments.

A. Pooling of Funds – Except for cash that may be restricted, the City shall consolidate cash balances from all funds to maximize investment earnings. Investment income shall be allocated to various funds in accordance with generally accepted accounting principles.

B. Funds Included by the Policy –
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Trust and Agency Funds
Any new fund created by City Council unless specifically exempted

C. Funds Excluded from the Policy – The investment of bond proceeds, which are administered by a third -party fiscal agent, will be subject to the conditions and restriction of bond documents and are not governed by this Policy.

III. GENERAL OBJECTIVES
The primary objectives, in priority order, of the City’s investment activities are safety, liquidity, and yield.

A. Safety: Preservation of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective shall be to mitigate credit risk and interest rate risk. To attain this objective, the City shall diversify its investments by investing funds among several financial institutions and a variety of securities offering independent returns.

City of Santa Maria - 2023 Investment Policy Page 2 of 11

B. Liquidity: The City’s investment portfolio shall remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated without requiring a sale of securities. Since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets. Emphasis shall be on marketable securities with low sensitivity to market risk. A portion of the portfolio may be placed in money market mutual funds or LAIF which offer same-day liquidity for short-term funds.

C. Yield (Return on Investment): The investment portfolio shall be designed with the objective of attaining a market -average rate of return throughout budgetary and economic cycles, commensurate with the City's risk constraints, the liquidity characteristics of the portfolio, State and local laws, and ordinances or resolutions that restrict investments. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core of investments is limited to relatively low-risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STANDARDS OF CARE

A. Prudence: The standard of prudence to be used by City investment officials shall be the "Prudent Investor Standard" in that a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims.

This "Prudent Investor Standard" shall be applied in the context of managing an overall portfolio. City investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectation are reported in a timely fashion, and appropriate action is taken to control adverse developments. It is the City's full intent, at the time of purchase, to hold all investments until maturity to ensure the return of all invested principal dollars.

B. Public Trust, Ethics, and Conflict of Interest: All participants in the investment process shall act as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degr ee of professionalism that is worthy of the public trust.

Officers and employees involved in the City investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or that could impair their ability to make impartial investment decisions. City employees and investment officials shall disclose any material financial interest in financial institutions that conduct business within the jurisdiction and shall further disclose any personal financial/investment positions that could be

City of Santa Maria - 2023 Investment Policy Page 3 of 11

related to the performance of the City immediately to the City Manager of Santa Maria and annually to the Fair Political Practices Commission. City employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City.

V. DELEGATION OF AUTHORITY (GOVERNMENT CODE #53607)

A. Investment Officer: Authority to manage the City’s investment program is delegated to the Director of Finance, as the Investment Officer. Management responsibility for the investment program, which includes the investment, reinvestment, sale, or exchange of securities, is entrusted to the Investment Officer who shall establish and adhere to written procedures, which will comply with all sections of the Government Code of the State of California. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Treasury Manager is authorized to conduct investment -related activities, under the supervision of the Investment Officer, on behalf of the City. The Investment Officer may also delegate the day-to-day placement of investments to an SEC-registered investment advisor.

The investment advisor shall make all investment decisions and transactions in strict accordance with the Government Code of the State of California and this Policy.

B. Investment Oversight Committee: The City has an Investment Oversight Committee, consisting of the City Manager, the Director of Finance, the City Attorney, and a City Councilmember, or their designee. The purpose of the Investment Oversight Committee is to:

1) Review the investment practices used by the Investment Officer for compliance with the Policy and written procedures; and
2) Analyze the monthly Treasurer's Report for adherence to established guidelines; and
3) Advise City Council of any deviations from guidelines or any practices deemed to be imprudent for a public agency.

VI. INTERNAL CONTROLS
The Investment Officer is responsible for establishing and maintaining a system of written internal controls. These controls may be annually reviewed with an independent external auditor who will notify the City Council if there is a material non-compliance with the policies and procedures.

The internal controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent action by employees and officers of the City. The internal structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognized that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. Controls deemed most important include control of collusion; separation of duties; separating transaction authority from accounting and recordkeeping; custodial safekeeping; clear delegation of authority; written confirmation of telephone transactions; minimizing the number of authorized investment officials; documentation of transactions; and code of ethics standards. Page 29 of 442
City of Santa Maria - 2023 Investment Policy Page 4 of 11

Timely bank reconciliations will be completed to ensure proper handling of all transactions. On a monthly basis, the City’s investment portfolio and all related transactions will be reviewed and balanced to appropriate general ledger accounts by the Department of Finance.

VII. REPORTING
The Investment Officer shall submit investment reports to the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program. Based on the discretion of the Director of Finance, the City’s SEC-registered investment advisor may from time to time perform one or more of the following functions: confirm that the portfolio is in compliance with the Government Code of the State of California; present an evaluation of the portfolio and investment strategy recommendations; and provide any other information that may be helpful in the review of the portfolio.

Required elements of the monthly report:

A. Monthly Reporting to City Council:

The Investment Officer shall submit to City Council, within 45 days following the end of the month, an i nvestment report that summarizes all securities in the portfolio. The report shall be prepared by the Treasury Manager or the Investment Officer’s designee. The report shall include:

1) Type of investment/issuer.
2) Date of maturity.
3) Cost of the security.
4) Current market value of securities with maturity in excess of 12 months. 5) Rate of interest of securities.
6) List of monthly portfolio transactions
7) A statement that the portfolio is in compliance with the Policy or a discussion of any non-compliant investments.
8) A statement that sufficient monies are available to meet the City’s expenditure requirements for the next six months or an explanation of any cash shortfall.

B. Statement of Investment Policy
The Statement of Investment Policy shall be annually reviewed and submitted to the City Council for adoption by resolution. This is to ensure the Policy's consistency with the overall objectives of preservation of principal, liquidity of yield, and its relevance to current law and financial and economic trends. Any amendments to this Policy shall be forwarded to City Council for approval.

City of Santa Maria - 2023 Investment Policy Page 5 of 11

VIII. AUTHORIZED INVESTMENT INSTRUMENTS FOR THE CITY

The City shall be governed by the California Government Code, Sections 53600 et seq (Code). If the Code is amended to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to the changes in the revised Code, provided that the changes are not specifically prohibited by the City’s Policy. The City shall be required to present those changes in the annual review of the Policy and to incorporate the new legislation within the Policy.

No more than five percent of the City’s funds may be deposited with or invested in securities issued by any one corporate, financial, or municipal issuer with the exception of the U.S. Treasury, federal agency institutions, government-sponsored enterprises, supranationals, and investment pools such as LAIF and money market mutual funds.

For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity. A security purchased in accordance with this Policy shall not have a forward settlement date exceeding 45 days from the time of investment.

Rating requirements and percentage limitations, where indicated, apply at the time of purchase. In the event a security held by the City is subject to a rating change that brings it below the minimum specified rating requirement, the Investment Officer shall notify the Investment Oversight Committee of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the ratings change, prognosis for recovery or further ratings changes, and the market price of the security.

The following investment instruments are authorized for purchase in accordance with the provisions of Section 53601 et seq of the California Government Code:

U.S. Treasury Instruments
As authorized in Government Code 53601(b), the City may invest in United States treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There are no portfolio limitations on this type of investment.

Government Agency Issues
As authorized in Government Code Section 53601(f), the City may invest in Federal agency or United States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, such as Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), and Federal Farm Credit Bank (FFCB). There are no portfolio limitations on this type of investment.

California and California Local Agency Municipal Obligations Obligations of the State of California or any local agency within the state as authorized in Government Code Section 53601(c) and 53601(e), including bonds payable solely out of reve nues from a revenue -producing property owned, controlled, or operated by the state or any local agency or by a department, board, Page 31 of 442 City of Santa Maria - 2023 Investment Policy Page 6 of 11

agency, or authority of the state or any local agency. In addition, these securities shall be rated in a rating category of “A ” or its equivalent or higher by a nationally recognized statistical rating organization (NRSRO). Purchase of California and California local agency municipal obligations, together with other state municipal obligations, may not exceed 30 percent of the City's investment portfolio.

Other State Municipal Obligations
Registered treasury notes or bonds of any of the other 49 United States in addition to California, as authorized in Government Code Section 53601(d), including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California (Government Code section 53601[d]). In addition, these secu rities shall be rated in a rating category of “A” or its equivalent or higher by a NRSRO. Purchase of other state municipal obligations, together with California and California local agency municipal obligations, may not exceed 30 percent of the City's investment portfolio.

Bankers' Acceptances
As authorized in Government Code Section 53601(g), the City may invest in bankers' acceptances, otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank the short-term paper of which is rated in a rating category of “A-1” or its equivalent or higher by a NRSRO.

Purchases of Bankers' Acceptances may not exceed 180 days maturity or 40 percent of the portfolio. Additionally, no more than 5 percent of the portfolio may be invested in Bankers' Acceptances with any one commercial bank.

Commercial Paper
As authorized in Government Code Section 53601(h), the City may invest in commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO.

The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2):

(1) The entity meets the following criteria: (A) is organized and operating in the United States as a general corporation, (B) has total assets in excess of five hundred million dollars ($500,000,000), and (C) has debt other than commercial paper, if any, that is rated “A” or its equivalent or higher by a NRSRO.

(2) The entity meets the following criteria: (A) is organized within the United States as a special purpose corporation, trust, or limited liability company, (b) has program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond, and (C) has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

Purchases of commercial paper may not exceed 270 days maturity. Effective until January 1, 2026, investment in commercial paper shall not exceed 40 percent of

City of Santa Maria - 2023 Investment Policy Page 7 of 11

the City’s portfolio. After January 1, 2026, investment in commercial paper shall not exceed 25 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in any one issuer’s commercial paper.

Negotiable Certificates of Deposit (NCD)
As authorized in Government Code Section 53601(i), the City may invest in negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a Federal association (as defined by Section 5102 of the Financial Code), a state or Federal credit union, or by a state or Federally licensed branch of a foreign bank; provided that the senior debt obligations of the issuing institution are rated in a rating category of “A” or its equivalent or higher by a NRSRO.

Purchases of negotiable certificates of deposit may not exceed 30 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in any one issuer’s negotiable certificates of deposit.

Deposit Placement Services
Deposits placed through a deposit placement service that meets the requirements of Government Code Section 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of each deposit shall at all times be insured by federal deposit insurance. The maximum term for deposits made through placement services shall be five years. Deposit placement services may not exceed 30 percent of the City’s portfolio.

Medium-Term Corporate Notes
As authorized in Government Code Section 53601(k), the City may invest in medium- term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States provided such notes are rated in a rating category of “A” or its equivalent or higher by a NRSRO.

Purchases of medium-term corporate notes may not exceed 30 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in the notes of any one issuer.

Asset-backed Securities
As authorized in Government Code Section 53601(o), the City may invest in any mortgage pass-through securities, collateralized mortgage obligations, mortgage- backed or other pay-through bonds, equipment lease-backed certificates, consumer receivable pass-through certificates, and consumer receivable-backed bonds, with a maximum remaining settle of five years or less. Securities shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO.

Purchases of asset -backed securities may not exceed 20 percent of the City’s portfolio. Additionally, no more than 5 percent of the portfolio may be invested in the notes of any one issuer.

City of Santa Maria - 2023 Investment Policy Page 8 of 11

Local Agency Investment Fund (LAIF)
As authorized in Government Code Section 16429.1, the City may invest in the LAIF.

The City may invest up to the maximum as permitted by the LAIF Investment Advisory Board.

Mutual Funds and Money Market Funds
As authorized in Government Code Section 53601(l), the City may invest in shares of beneficial interest issued by diversified management companies. There are a number of other qualifications and restrictions regarding these allowable investments which are outlined in section 53601(l) of the Government Code.

Purchase of mutual funds or money market mutual funds may not exceed 20 percent of the City’s portfolio. No more than 10 percent of the City’s portfolio may be invested in any one mutual fund. A thorough investigation of mutual funds and money market funds is required prior to investing, and on a continual basis.

Supranationals
As authorized in Government Code Section 53601(q), the City may invest in United States dollar-denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank, with a maximum remaining maturity of five years o r less, and eligible for purchase and sale within the United States. Securities shall be rated in a rating category of “AA” or its equivalent or higher by a NRSRO.

Purchases of supranational securities may not exceed 30 percent of the City’s portfolio.

Any State of California legislative action that further restricts allowable maturities, investment types, or percentage allocations will be incorporated into the City’s Policy and supersede any and all previous applicable language.

Joint Powers Authority (Local Government Investment Pools) Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:

(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

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Prohibited Investments
As per Government Code Section 53601.6, the City shall not invest in inverse floaters, range notes, or mortgage-derived, interest-only strips, or in any security that could result in zero -interest accrual if held to maturity, except as provided in the subsequent paragraph.

Notwithstanding the prohibitions stated in the above paragraph, effective January 1, 2021, the City may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rat es.

The City may hold these instruments until their maturity dates. Securities described in this paragraph shall remain in effect only until January 1, 2026, and as of that date is repealed.

IX. MATURITIES
To the extent possible, the City will attempt to match the investments with anticipated cash flow requirements. Where there is no specified maturity limitation on an investment, no investment shall be made in any security, which at the time of the investment, has a term remaining to maturity in excess of five years, unless the City Council has granted express authority to make that investment no less than three months prior to the investment.

Investment Limitations: Security purchases and holdings should be maintained within statutory limits imposed by the Government Code. The City’s Policy may be more restrictive than Government Code. Current City limits are shown below:

Sector
Sector
Limit

Issuer Limit
Maturity
Limit
U.S. Treasuries 100% N/A 5 years*
Federal Agencies 100% N/A 5 years*
Municipal Obligations 30% 5% 5 years*
Bankers' Acceptances 40% 5% 180 days
Commercial Paper 40% 5% 270 days
Negotiable Certificates of
Deposit 30%
5%

5 years*
Deposit Placement Service 30% $250,000** 5 years
Medium-Term Notes 30% 5% 5 years*
Asset-backed Securities 20% 5% 5 years*
LAIF N/A*** N/A
Mutual Funds/Money Market
Funds

20%
10% per fund for mutual
funds only

N/A
Supranationals 30% N/A 5 years*
Joint Powers Authority/LGIP 100% N/A N/A
*Maximum term unless expressly authorized by City Council. **Principal and accrued interest limit per each certificate of deposit. ***Limit set by LAIF Governing Board, not Government Code.

City of Santa Maria - 2023 Investment Policy Page 10 of 11

X. BANKS AND QUALIFIED SECURITIES DEALERS
If a third-party investment advisor is authorized to conduct investment transactions on the City’s behalf, the investment advisor may use its own list of approved broker/dealers and financial institutions for investment purposes. The investment advisor’s approved list must be made available to City upon request.

For any investment transactions conducted by the Investment Officer or the Treasury Manager on behalf of the City, the Investment Officer and Treasury Manager shall comply with the following requirements:

In selecting financial institutions for the deposit or investment of City’s funds, the Investment Officer shall consider the creditworthiness of institutions. The Investment Officer shall continue to monitor financial institutions' credit characteristics and financial history throughout the period in which the City’s funds are deposited or invested.

The City shall transact business only with banks, savings and loans, and broker/dealers.

The broker/dealers should be primary dealers regularly reporting to the New York Federal Reserve Bank or regional brokers, who have complied with the City’s broker/dealer certification process. The Investment Officer will be limited to actively conducting business with no more than three broker/dealers.

On an annual basis, the Investment Officer shall send a copy of the current Policy to all broker/dealers approved to do business with the City. Confirmation of receipt of this Policy shall be considered evidence that the dealer understands the City’s investment policies and intends to sell the City only appropriate investments authorized by this Policy.

XI. PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cy cles, commensurate with the investment risk constraints and the cash flow needs. The City will measure the portfolio’s performance against a market benchmark that is commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

XII. RISK TOLERANCE
The City recognizes that investment risks can result from issuer defaults, market price changes, or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control risk. Investment managers are expected to display prudence in the selection of securities as a way to minimize default risk. No individual investment transaction shall be undertaken which jeopardizes the total capital position of the overall portfolio. The Investment Officer shall periodically establish guidelines and strategies to control risks of default, market price changes, and illiquidity.

In addition to these general policy considerations, the following specific policies will be strictly observed:

City of Santa Maria - 2023 Investment Policy Page 11 of 11

1) All transactions will be executed on a delivery versus payment basis.

2) A competitive bid process, when practical, will be used to place all investment purchases, other than those that are classified as "new issue" securities.

3) Any State of California legislative action that further restricts allowable maturities, investment types, or percentage allocations will be incorporated into the City’s Policy and supersede any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Officer, until the maturity date to avoid an unnecessary loss.

XIII. SAFEKEEPING AND CUSTODY
Securities purchased from broker/dealers shall be held in a third -party custodian/safekeeping account. Said securities shall be held in a manner that establishes the governmental entity's right of ownership.

All securities owned by the governmental entity shall be held by a third party except the collateral for time deposits in banks and savings and loans. Collateral for time deposits in savings and loans is held by the Federal Home Loan Bank or an approved Agent of Depository. The collateral for time deposits in banks should be held in the entity's name in the bank's Trust Department, or alternately, in the Federal Reserve Bank.

XIV. INVESTMENT POOLS
A thorough investigation of the pool/fund is required prior to investing, and on a continual basis.

Glossary of Investment Terms Page 1 of 4

GLOSSARY OF INVESTMENT TERMS

Asset-Backed Securities: Bonds created from various types of consumer debt. Returns on these securities come from customer payments on their outstanding loans. The primary types of asset-backed securities are mortgages, home equity loans, auto loans, leases, credit card receivables, and student loans.

Annual Comprehensive Financial Report (ACFR): The official financial annual report for the City. The ACFR includes government wide financial statements, governmental fund financial statements, proprietary fund financial statements, and custodial fund financial statements prepared in conformity with government accepted accounting principles. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section.

Bond Proceeds: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These monies are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

Broker: Someone who brings buyers and sellers together and is compensated for the service.

Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.

Commercial Paper: Short-term unsecured promissory note with a fixed maturity issued by companies to raise short-term cash.

Credit Risk: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, by buying and selling for his/her own account.

Delivery Versus Payment: There are two methods of delivery of securities: 1) delivery versus payment; and 2) delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Diversification: Dividing investment funds among a variety of security types by sector, maturity, and quality ratings offering independent returns.

Glossary of Investment Terms Page 2 of 4

Federal Home Loan Banks (FHLB): Government-sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banks services to member commercial banks, thrift institutions, credit unions, and insurance companies.

Federal National Mortgage Association (FNMA): FNMA is a Federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed- rate mortgages.

Internal Controls: An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurances that these objectives are met. The concept of reasonable assurance recognized that 1) the cost of a control should not exceed the benefits likely to be derived, and 2) the valuation of costs and benefits require estimates and judgments by management. Internal controls should address the following points:

 Control of collusion – Collusion is a situation where two or more employees are working in conjunction to defraud the employer.
 Separation of transaction authority from accounting and record keeping – By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved.  Custodial safekeeping – Securities purchased from any bank or dealer including appropriate collateral (as defined by State law) shall be placed with an independent third party for custodial safekeeping.
 Written confirmation of transactions for investments and wire transfers – Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures.

Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and if a reasonable size can be done at those quotes.

Local Agency Investment Fund (LAIF): Chapter 730, Statues of 1976 of the State of California, established the LAIF. The LAIF enables local governmental agencies to remit money not required for immediate needs to the State Treasurer for the purpose of investment. In order to derive the maximum rate of return possible, the State Treasurer has elected to invest these monies with State monies as a part of the Pooled Money Investment Account. Each local governmental unit has the exclusive determination of the length of time its money will be on deposit with the State Treasurer. At the end of each calendar quarter, all earnings derived from investments are distributed by the State Controller to the participating government agencies in proportion to each agency’s respective amounts deposited in the LAIF and the length of time such amounts remained therein. Prior to the distribution, the State’s cost of administering the program is deducted from the earnings.

Glossary of Investment Terms Page 3 of 4

The California Government Code states that monies placed for deposit in LAIF are in trust in the custody of the State Treasurer and cannot be borrowed or be withheld from the City. Further, the right of the City to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any State official or agency based upon the State’s failure to adopt a budget by July 1 of each new fiscal year.

Local Government Investment Pool (LGIP): An investment by local governments in which their money is pooled as a method for managing local funds.

Market Risk: This is the risk that the value of a security will rise or decline as a result of changes in market conditions.

Market Value: The current price at which a security is trading and could presumably be purchased or sold at that particular point in time.

Maturity: The date upon which the principal or stated value of a financial obligation is due and payable.

Medium-Term Corporate Notes: All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States, or by depository institutions licensed by the United States or any state and operating within the United States.

Money Market Mutual Fund: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers’ acceptances, and Federal funds).

Mutual Fund: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by Securities and Exchange Commission (SEC) disclosure guidelines.

Nationally Recognized Statistical Ratings Organization: (source: SEC) Credit rating agencies registered with the SEC are known as nationally recognized statistical rating organizations. As of April 13, 2012, there were ten firms registered as nationally recognized statistical rating organizations:

A.M. Best Company, Inc.

DBRS Ltd.

Egan-Jones Rating Company
Fitch, Inc.

Japan Credit Rating Agency, Ltd.

Kroll Bond Rating Agency, Inc. (f/k/a LACE Financial Corp.) Moody’s Investors Service, Inc.

Rating and Investment Information, Inc.

Realpoint LLC
Standard & Poor’s Ratings Services

Glossary of Investment Terms Page 4 of 4

Negotiable Certificates of Deposit: Fixed deposit certificate that may be negotiated (traded) to a third party. The institution issuing the certificate promises to pay face value plus accrued interest at maturity or semi-annually if maturity is over one year.

Portfolio: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

Primary Dealer: A group of government securities dealers who submit daily reports of market activity and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker/dealers, banks, and a few unregulated firms.

Principal: (1) The value or par value of a debt instrument; (2) one who acts as a dealer buying and selling for his own account.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Safekeeping Service: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vault for protection and security.

Supranationals: International financial institutions that are generally established by agreements among nations, with member nations contributing capital and participating in management. Supranational bonds finance economic and infrastructure development and support environmental protection, poverty reduction, and renewable energy around the globe.

Treasury Bills: Short-term U.S. government non -interest bearing discounted debt securities with maturities of no longer than one year and issued in minimum denominations of $10,000. Auctions of three-month and six-month bills are weekly, while auctions of one- year bills are monthly. The yields on these bills are monitored closely in the money markets for signs of interest rate trends.

Yield: The current rate of return on an investment security generally expressed as a percentage of the security’s current price.

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Public Works

SUBJECT: FY 2023-2024 Road Maintenance and Rehabilitation Account Project List for Senate Bill 1, The Road Repair and Accountability Act of 2017

Description:

The City Council will consider a Road Maintenance and Rehabilitation Account Project List for Fiscal Year 2023-2024.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution approving a Road Maintenance and Rehabilitation Account Project List to be funded by the Road Repair and Accountability Act of 2017 , Senate Bill 1, and incorporated into Fiscal Year 2023-2024 budget.

BACKGROUND:

The Road Repair and Accountability Act of 2017, Senate Bill 1 (SB-1), was passed by the State Legislature and signed into law by the Governor in April 2017. The purpose of the bill is to help State and local agencies address transportation funding shortfalls. SB-1 has generated revenue through increases in gas tax, vehicle registration fees, and fees on zero-emission vehicles.

One of the major components of SB -1 is the Road Maintenance and Rehabilitation Account (RMRA), which is the revenue stream set as ide for the maintenance and rehabilitation of roadways. SB -1 is expected to generate over $5 billion annually at full implementation, $1.5 billion of which will be distributed to local agencies and counties through the RMRA. The City of Santa Maria is proj ected to receive $2, 663,292 in revenues from the RMRA for Fiscal Year (FY) 2023-2024, an increase of $320,569 from the FY 2022-2023 allocation.

SB-1 includes accountability and transparency provisions to enable local residents to remain aware of the projects proposed to be funded by SB-1 in their area. As part of these provisions, it is a requirement for local agencies to adopt project lists before the start of every fiscal year. The project list must include all projects proposed to receive funding from the RMRA. The required list includes a description and the location of each proposed

2 project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. Per the requirements of SB -1, the list must be approved by the City Council through Resolution and sent to the California Transportation Commission (CTC) no later than July 1, 2023, in order to be eligible for RMRA funding next fiscal year.

The primary focus of the RMRA is maintenance of the existing infrastructure within the City’s rights-of-way. Other transportation funding sources, such as Gas Tax, Measure A, Local Surface Transportation Program, Growth Mitigation, and other grant programs are available for capital expenditures through the normal budget process.

On June 21, 2022, the City Council approved the RMRA project list for FY 2022-2023, which was then submitted to the CTC as required. The list included two pavement maintenance and rehabilitation projects. These projects were assigned a total of $2,892,696 in the FY 2022-2023 budget, which was the remaining fund balance plus the projected amount to be received from the RMRA program. Staff recommended to include these projects on the RMRA list due to their eligibility for RMRA funds and based on analysis thr ough the City’s Pavement Management Program (PMP). The previously approved projects for FY 2022-2023 were:

1. Arterial Dig Out and Overlay Project, Bid 2022-03

This project consisted of pavement repairs on East Alvin Avenue, East Battles Road, South College Drive, South Depot Street, Skyway Drive, and West Stowell Road. The pavement quality of the noted roadways needed extensive maintenance with East Alvin Avenue, South College Drive, and East Battles Road bearing the most damage. As a result, those roadways also received an overlay.

Project Status: The project was completed in December 2022. The final project cost was $3,328,625. The total amount of SB-1 funds utilized on this project was $829,376.

2. Annual Surface Seal Street Maintenance Project, Bid 2022-05

This consisted of placing a chip seal, slurry seal, or other surface treatments for pavement preservation and installation of pavement markings on various City streets in the City of Santa Maria.

Project Status: This project was completed in February of 2023. The final project cost was $2,611,433. The total amount of SB -1 funds used on this project was $1,436,478.

DISCUSSION:

Staff has identified one new pavement rehabilitation project to utilize RMRA funding in FY 2023-2024. This project is identified as the Roadway Rehabilitation Project. The project has been identified through use of the City’s PMP in coordination with staff’s field

3 inspections and recommendations. Staff’s recommendation is to include this project on the RMRA list due to the eligibility for RMRA funds and the ability to be completed within the next fiscal year.

SB-1 RMRA Funded Projects for FY 2023-2024:

1. Roadway Rehabilitation Project (FY 2023-2024 and prior year remaining funds)

A detailed description of the projects is included in the Resolution.

Approval of the Resolution will allow the City to submit the new project to the CTC before the July 1st deadline and remain eligible for another year of SB-1 funding. The benefit of increased revenue from SB-1 is that it will allow the City to utilize existing budgeted funds to rehabilitate additional roadways this fiscal year that would have been otherwise delayed.

This action does not preclude the City from utilizing these funds for other eligible roadway maintenance projects in FY 2023-2024. This action meets the requirements of the RMRA program. In FY 2023-2024, if the City chooses to utilize these funds for projects that are not listed, they will need to submit updated reports to the CTC at the end of the year, as required by the program.

Future RMRA project lists to be recommended for approval by the City Council will be selected from the capital improvement program budget plan for roadway maintenance currently being developed by staff as part of its PMP. The anticipated funding projections will support the orderly development, and improvement to other City infrastructure such as pedestrian and bicycle facilities, underground utilities, and drainage.

Alternative(s)
The recommended action is to approve the SB-1 RMRA Project List for FY 2023-2024.

The alternative to the recommended action would be for the City Council to direct staff to revise the project list to include alternate locations. Per the requirements of SB -1, the project list must be app roved by the City Council by Resolution and sent to the CTC no later than July 1, 2023. Delaying the approval may jeopardize the City’s eligibility for timely receipt of funds.

Fiscal Considerations
Approval of the Resolution will make the City eligible t o submit its request to the CTC to receive SB-1 apportionment revenues for FY 2023-2024. CTC will review submittals from all agencies in California and adopt project lists at its meeting in August 2023.

Impact to the Community
The community will benefit b y receiving transportation revenues that will be used to improve the streets of Santa Maria.

4 Other Agency Review
There was no review by any outside agencies. Staff will be submitting the approved list to the CTC.

ATTACHMENTS
Attachment A - Projected FY23-24 Revenues_2023-06-20
Attachment B - Projected FY22-23 Revenues_2023-06-20

ATTACHMENT A
Local Streets and Roads - Projected FY2023-24 Revenues
Based on State Dept of Finance statewide revenue projections Estimated May 2023 TOTAL Road Mntnc
Sec2103 (5) Sec2105 (3) Sec2106 (3) Sec2107 (3) Sec2107.5 (4) HUTA Rehab Acct TOTALHighway Users Tax Acct (HUTA)(1) Streets & Highways Code

SAN MATEO COUNTY
ATHERTON 64,672 43,797 31,882 52,532 2,000 194,884 169,161 364,044 BELMONT 260,552 176,449 113,907 211,642 6,000 768,550 681,513 1,450,063 BRISBANE 44,958 30,447 23,626 36,519 1,000 136,551 117,596 254,146 BURLINGAME 289,530 196,074 126,041 235,181 6,000 852,825 757,309 1,610,134 COLMA 13,498 9,141 10,452 10,964 1,000 45,055 35,305 80,360 DA
LY CITY 971,494 657,910 411,615 789,130 10,000 2,840,149 2,541,092 5,381,242 EAST PALO ALTO 278,320 188,482 121,347 226,075 6,000 820,225 727,989 1,548,214 FOSTER CITY 312,171 211,407 135,522 253,572 6,000 918,672 816,531 1,735,203 HALF MOON BAY 108,899 73,748 50,402 88,457 3,000 324,506 284,842 609,348 HILLSBOROUGH 105,397 71,377 48,935 85,613 3,000 314,322 275,683 590,004 MENLO PARK 316,432 214,293 137,307 257,033 6,000 931,065 827,678 1,758,743 MILLBRAE 216,112 146,354 95,297 175,544 5,000 638,308 565,274 1,203,582 PACIFICA 358,352 242,681 154,861 291,084 6,000 1,052,979 937,326 1,990,304 PORTOLA VALLEY 41,123 27,849 22,020 33,404 1,000 125,396 107,564 232,960 REDWOOD CITY 773,373 523,739 328,652 628,199 7,500 2,261,463 2,022,876 4,284,339 SAN BRUNO 407,758 276,139 175,549 331,215 6,000 1,196,662 1,066,553 2,263,214 SAN CARLOS 284,851 192,905 124,082 231,380 6,000 839,219 745,072 1,584,292 SAN MATEO 979,684 663,456 415,045 795,782 10,000 2,863,966 2,562,513 5,426,479 SOUTH SAN FRANCISCO 614,013 415,818 261,919 498,753 7,500 1,798,003 1,606,044 3,404,048 WOODSIDE 49,183 33,307 25,395 39,951 2,000 149,836 128,645 278,482

SANTA BARBARA COUNTY
BUELLTON 47,710 32,310 21,092 38,754 2,000 141,865 124,793 266,658 CARPINTERIA 121,869 82,531 46,415 98,992 3,000 352,807 318,766 671,573 GOLETA 302,888 205,120 108,228 246,032 6,000 868,268 792,251 1,660,519 GUADALUPE 79,152 53,603 31,828 64,294 2,000 230,877 207,035 437,912 LOMPOC 411,269 278,517 145,236 334,067 6,000 1,175,089 1,075,736 2,250,826 SANTA BARBARA 810,383 548,803 281,522 658,262 7,500 2,306,469 2,119,681 4,426,151 SANTA MARIA 1,018,213 689,548 352,490 827,079 10,000 2,897,330 2,663,292 5,560,622 SOLVANG 53,917 36,513 23,211 43,796 2,000 159,437 141,028 300,465 18 May 2023 CaliforniaCityFinance.com Page 13 of 16

ATTACHMENT B
Local Streets and Roads - Projected FY2022-23 Revenues
Based on State Dept of Finance statewide revenue projections Estimated May 2023 TOTAL Road Mntnc
Sec2103 (5) Sec2105 (3) Sec2106 (3) Sec2107 (3) Sec2107.5 (4) HUTA Rehab Acct Highway Users Tax Acct (HUTA)(1) Streets & Highways Code TOTAL

SAN MATEO COUNTY
ATHERTON 56,988 40,695 29,928 48,693 2,000 178,304 148,799 327,103 BEL
MONT 229,593 163,952 106,034 196,175 6,000 701,753 599,482 1,301,236 BRISBANE 39,616 28,290 22,268 33,850 1,000 125,025 103,441 228,466 BU
RLINGAME 255,127 182,186 117,293 217,993 6,000 778,600 666,155 1,444,755 COLMA 11,894 8,493 10,044 10,163 1,000 41,594 31,056 72,650 DA
LY CITY 856,060 611,312 382,263 731,457 10,000 2,591,092 2,235,232 4,826,324 EAST PALO ALTO 245,250 175,133 112,938 209,553 6,000 748,873 640,364 1,389,238 FOSTER CITY 275,079 196,433 126,091 235,040 6,000 838,642 718,249 1,556,891 HALF MOON BAY 95,960 68,525 47,111 81,992 3,000 296,588 250,557 547,145 H
ILLSBOROUGH 92,874 66,321 45,751 79,356 3,000 287,301 242,500 529,801 ME
NLO PARK 278,834 199,115 127,746 238,248 6,000 849,943 728,054 1,577,997 MILLBRAE 190,433 135,988 88,768 162,715 5,000 582,904 497,235 1,080,139 PACIFICA 315,773 225,493 144,034 269,811 6,000 961,110 824,504 1,785,614 PORTOLA VALLEY 36,237 25,877 20,778 30,962 1,000 114,854 94,617 209,471 R
EDWOOD CITY 681,480 486,644 305,285 582,288 7,500 2,063,197 1,779,391 3,842,588 SAN BRUNO 359,307 256,581 163,230 307,009 6,000 1,092,127 938,176 2,030,303 SAN CARLOS 251,005 179,242 115,476 214,470 6,000 766,193 655,391 1,421,585 SAN MATEO 863,277 616,465 385,445 737,623 10,000 2,612,810 2,254,075 4,866,884 SOUTH SAN FRANCISCO 541,055 386,367 243,368 462,302 7,500 1,640,592 1,412,732 3,053,324 WOODSIDE 43,339 30,948 23,909 37,031 2,000 137,227 113,161 250,388 S

ANTA BARBARA COUNTY
BUELLTON 42,041 30,021 19,916 35,922 2,000 129,900 109,772 239,672 CA
RPINTERIA 107,388 76,686 43,412 91,757 3,000 322,243 280,398 602,641 GO
LETA 266,899 190,592 100,765 228,051 6,000 792,307 696,891 1,489,198 GUADALUPE 69,747 49,806 29,878 59,595 2,000 211,027 182,115 393,142 LO
MPOC 362,401 258,790 135,104 309,652 6,000 1,071,947 946,255 2,018,202 SANTA BARBARA 714,092 509,932 261,556 610,153 7,500 2,103,234 1,864,544 3,967,779 SANTA MARIA 897,228 640,709 327,403 766,633 10,000 2,641,973 2,342,723 4,984,696 SOLVANG 47,510 33,927 21,883 40,595 2,000 145,915 124,053 269,968 18 May 2023 CaliforniaCityFinance.com Page 13 of 16

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,

CALIFORNIA, APPROVING A ROAD MAINTENANCE AND REHABILITATION

ACCOUNT PROJECT LIST TO BE FUNDED BY THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017, SENATE BILL 1, AND INCORPORATED INTO FISCAL YEAR 2023-2024 BUDGET

WHEREAS, Senate Bill 1 (SB-1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017), was passed by the legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and

WHEREAS, SB-1 includes accountability and transparency provisions that ensure residents of the City are informed about the projects proposed for funding in their community and the projects that have been completed each fiscal year (FY); and

WHEREAS, the City must adopt, by Resolution, a list of projects proposed to receive FY 2023-2024 funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB -1, in the City budget . It must include a description and location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and

WHEREAS, the City received $2,342,723 in RMRA funding in FY 2022-2023; and

WHEREAS, the City is projected to receive $2,663,292 in RMRA funding in FY 2023- 2024 from SB-1; and

WHEREAS, this is the seventh year the City is receiving SB-1 funding which enables the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB-1; and

WHEREAS, City staff uses the Pavement Management Program to develop the SB- 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also align with the community’s priorities for transportation investment; and

WHEREAS, the funding from SB-1 will help the City maintain and rehabilitate many roadways throughout the City this year and similar projects into the future; and

WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s and County’s streets and roads are in an “at-risk” condition and this revenue with other necessary revenues will help the City increase the overall quality of its road system, and over the next decade will bring our streets and roads into a “good” condition; and

2 WHEREAS, The SB-1 project list, along with the overall investment in local streets and roads infrastructure, will prioritize basic maintenance and safety. Additionally, it will focus on investing in complete streets infrastructure, incorporating cutting-edge technology, materials, and practices. These efforts will result in significant positive co-benefits statewide

NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. The foregoing recitals are true and correct.

2. The budget for FY 2023-2024 will incorporate funding for the following list of proposed projects to be funded in -part or solely with FY 2023-2024 Road Maintenance and Rehabilitation Account revenues:

A. Roadway Rehabilitation Project

Description:

This project will include dig -outs and the restoration of significant pavement failures. Dig-outs and replacement of pavement on several streets is proposed on multiple distressed arterials. Additionally, t he project also includes installation of new striping and pavement markings.

Approximately 400,600 sq. yd. of dig-outs will be repaired.

Location:

Betteravia Road from East Street to US 101
South Blosser Road from Donovan Road to Betteravia Road West Boone Street from Blosser to Russell Street
Bradley Road from Main Street to Columbia Drive
Carlotti Drive from Nobel Way to Donovan Road
Depot Street from Fesler Street to Main Street
Hidden Pines Way from Blosser Road to Preisker Lane
Main street from Palisade Drive to Suey Road
Jones Street from College Drive to Bradley Road
Railroad Avenue from Donovan Road to Fesler Street
Suey Road from Donovan Road to Main Street

Cost and Funding:

Preliminary Engineer's Estimate: $ 8,264,991
SB-1 (Carryover): $ 453,304
SB-1 (FY 2023/24) : $ 2,663,292
LSTP: $ 287,000
Gas Tax: $ 1,350,000
Measure A: $ 1,345,000
General Fund $ 2,075,468

3 Estimated Completion Date: December 2023
Estimated Useful Life: 15-20 years

3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:

_______________________________
Department Director
_______________________________
City Manager

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Public Works

SUBJECT: Award of Bid for Phase I of Enos Ranch Project, Bid No. 2023/06

Description:

The City Council will consider awarding the bid for the construction Phase I of the Enos Ranch Project, Bid No. 2023/06 to The J.F. Will Company Inc., in the amount of $390,044.70.

Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 – Existing facilities (operation, repair, maintenance, leasing, etc.) of the California Environmental Quality Act State Guidelines because the scope of work to be conducted is an existing public facility with negligible expansion of the existing uses.

RECOMMENDATION:

Adopt a Resolution awarding the bid and approving an agreement with The J.F. Will Company, Inc., Phase I of the Enos Ranch Project, Bid No. 2023/06.

BACKGROUND:

Under the direction of the City ’s Recreation and Parks Department, the project was designed by Bethel Engineering. The scope of work for Phase I includes the installation of all site utilities for the future Japanese Cultural Center and renovations to the Enos - Smith House.

DISCUSSION:

The project was extensively advertised for bids. The City received one bid, which w as opened by the City Clerk’s Office on May 30, 2023. A summary of the bid submitted is as follows:

Bidder Bid Amount
The J.F. Will Company, Inc. $390,004.70

A detailed tabulation of the bid received is attached (Attachment B). A signed proposal and bid bond forms are available for viewing in the office of the Chief Deputy City Clerk.

The J.F. Will Company, Inc., from Santa Maria , has performed and successfull y completed similar work for many cities throughout Southern California and on the Central

2 Coast. In addition, they have submitted references for their work history. City staff have checked the firm’s references and are comfortable with the ability of the contractor to perform the work successfully.

The recommended action is to award the bid to The J.F. Will Company, Inc., in the amount of $390,004.70.

Alternative(s)
The alternative to the recommended action would be to reject the bid and reissue a Notice Inviting Bids. However, in doing so, would cause a delay of the project and the Public Works Department would need to rebid the project.

Fiscal Considerations
Sufficient funds for this project have been budgeted in FY 2022/2023 from the account titled “Enos House & Park Development.”

Available Budget Account Amount
027-008-040-52-45 $ 2,400,000.00
Estimated Expenditures Amount
Award
Contingency (25%)
$ 390,004.70
$ 97,501.18
Inspection, Testing, Staff Time $ 20,000.00
Total $ 507,505.88

Impact to the Community
The community will benefit from the renovated Enos-Smith House and the new Japanese Cultural Center; it will become a gathering place for future events and will honor residents of Japanese ancestry.

Other Agency Review
No other agency review is necessary or anticipated.

ATTACHMENTS
Attachment A – Agreement_Award of Bid No.2023-06_2023-06-20 Attachment B – Bid Tabulations_Award of Bid No.2023-06_2023-06-20

AGREEMENT

THIS AGREEMENT, made and entered into on this 20th day of June 2023, by and between The J.F. Will Company, Inc., hereinafter referred to as "Contractor," and the City of Santa Maria in the County of Santa Barbara, California, hereinafter referred to as "Owner."

WITNESSETH:

That for and in consideration of the promises and agreements hereinafter made and exchanged, Owner and Contractor agree as follows:

1. That Contractor shall complete the work generally described as follows: Enos Ranch, Phase I (PW 2023/06), in accordance with the Contract Documents therefore, adopted by the City Council, of Owner, as prepared by City of Santa Maria.

2. That Owner will pay Contractor progress payments and the final payment, in accordance with the provisions of the contract documents, with warrants drawn on the appropriate fund or funds as required, at the prices bid on the proposal form accepted by Owner and set forth in this agreement.

Total Bid of THREE-HUNDRED NINETY THOUSAND AND FOUR DOLLARS AND SEVENTY CENTS.

Contract Price in Figures $390,004.70

3. Contractor agrees to complete said work within the contract time of sixty (60) working days, from the day following the issuance of the Notice to Proceed, and approved extensions thereof, to the satisfaction of Owner before final payment is made.

4. Time is of the essence on this contract.

5. It is mutually understood and agreed that time is of the essence of this agreement and that it is difficult to ascertain the amount of damages required to properly compensate Owner for failure by Contractor to comply with all the contract requirements within the time fixed in the agreement.

In accordance with California Government Code, Section 53069.85, the amount of liquidated damages to be paid to Owner for each day completion is delayed beyond the time for completion, shall be five hundred ($500) dollars . Contractor hereby acknowledges that it has reviewed said provisions relating to liquidated damages and the amou nt thereof and accepts the same as being reasonable under the circumstances and as a material part of the consideration for this contract. Contractor also acknowledges that progress payments made after the scheduled completion date do not constitute a waiver of liquidated damages.

6. That, in accordance with Section 1774 of the California Labor Code, Contractor will

pay, and will require subcontractors to pay, employees on the project a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, contained in or referenced in the contract documents.

7. That, in accordance with Section 1775 of the California Labor Code, Contractor shall forfeit to Owner, as a penalty, not more than two hundred dollars ($200) for each day, or portion thereof, for each worker paid, either by Contractor or any subcontractor, less than the prevailing rates as determined by the Director of the California Department of Industrial Relations for the work.

8. That, in accordance with Section 1777.5 of the Labor Code, this agreement fixes the responsibility of compliance with said Section 1777.5 for all apprenticeable occupations with the prime Contractor.

9. That, except as provided in Section 1815 of the California Labor Code, in the performance of the work not more than eight (8) hours shall constitute a day's work, and not more than forty (40) hours shall constitute a week's work; that Contractor shall not require more than eight (8) hours of labor in a day nor more than forty (40) hours of labor in a week from any person employed by Contractor or any subcontractor; that Contractor shall conform to Division 2, Part 7, Chapter 1, Article 3 (Section 1810, et seq.) of the Cali fornia Labor Code; and that Contractor shall forfeit to Owner, as a penalty, the sum of twenty-five dollars ($25) for each worker employed in the execution of the work by Contractor or any subcontractor for each day during which any worker is required or permitted to labor more than eight (8) hours in violation of said Article 3.

10. That Contractor shall carry workers' compensation insurance and require subcontractors to carry workers' compensation insurance as required by the California Labor Code.

11. That Contractor shall have furnished, prior to execution of the contract, three bonds approved by Owner: (1) the faithful performance bond in the amount of one-hundred percent (100%) of the contract price, to guarantee the faithful performance of the work; (2) the labor and material bond in the amount of one-hundred percent (100%) of the contract price, to guarantee payment of all claims for labor and materials furnished; and (3) the guarantee and defective material bond in the amount of ten percent (10%) of the contract price, to guarantee the one year maintenance of public improvements.

This contract shall not become effective until such bonds are supplied to and approved by Owner.

12. That Contractor, prior to execution of the contract shall comply with the fol lowing Department of Industrial Relations requirements.

1. No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with

limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

2. No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

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

13. That this agreement, by refe rence, includes the contract documents defined in Document 00700, General Conditions.

14. That Contractor agrees to devote the time necessary to perform the services set forth in this agreement in an efficient and effective manner. Contractor may represent, perform services for and be employed by additional individuals or entities, in Contractor's sole discretion, as long as the performance of these extra -contractual services does not interfere with or present a conflict with City's business.

15. The agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto, but nothing in this section shall be construed as consent by City to any assignment of this agreement or any interest in this agreement.

(REMAINDER OF PAGE LEFT INTENTIONALLY BLANK.)

IN WITNESS WHEREOF, said Contractor and the Mayor of Santa Maria, by Resolution No. ___________ of the City Council, of Owner thereunto duly authorized, have caused the names of said parties to be affixed hereto, each in triplicate, the day and year first above written.

CONTRACTOR:

___________________________
John Fenton Will
President

OWNER:

Alice Patino
Mayor

ATTEST:

Rhonda M. White, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:

_______________________________
Risk Manager
_______________________________
City Attorney

EXHIBIT “A”

INSURANCE REQUIREMENTS

Provider shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Provider, his/her agents, representatives, or employees. If the Provider maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Provider.

A. Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Provider has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Errors and Omissions liability insurance appropriate to the Provider's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

5. Cyber Liability Insurance, Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, relea se of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance

Provider shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: Statutory limits.

4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. Self-insured Retentions

Self-insured retentions must be declared to and approved by the City.

The City may require the Provider to purchase coverage with a lower retention or provide proof of ability to pay losses an d related investigations, claim administration and defense expenses within the retention.

D. Other Insurance Provisions

The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Provider including materials, parts or equipment furnished in connection with such work or
operations. General liability coverage can be provided in the

form or an endorsement to the Provider’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, the Provider's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Provider's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested.

4. Provider hereby grants to City a waiver of any rig ht to subrogation which any insurer of said Provider may acquire against the City by virtue of the payment of any loss under such insurance. Provider agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims-made coverage:
a. The Retroactive Date must be shown, and must be
before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of
insurance must be provided for at least five (5) years after completion of the contract of work.
c. If coverage is canceled or non -renewed, and not
replaced with another claims -made policy form with a
Retroactive Date prior to the contract effective date, the Provider must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

E. Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage

Provider shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to th e work beginning shall not waive the Provider’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances

The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

PROJECT: ENOS RANCH, Phase I
BID NO.: 2023/06
BID OPENING DATE: 5/30/2023

BASE BID ITEMS

QTY UNIT UNIT PRICE ESTIMATED TOTAL UNIT
PRICE

ESTIMATED
TOTAL
1 Mobilization and Demoblization 1 LS 50,000.00$ $ 50,000.00 66,510.60 $ $ 66,510.60 2 Storm Water Compliance 1L S 25,000.00$ $ 25,000.00 28,814.80 $ $ 28,814.80 3 Traffic Control 1L S 15,000.00$ $ 15,000.00 14,263.60 $ $ 14,263.60 4 Construction Surveys 1L S 15,000.00$ $ 15,000.00 4,200.00 $ $ 4,200.00 5 Demolition 1L S 25,000.00$ $ 25,000.00 638.40 $ $ 638.40 6 Earthwork and Subgrade Preparation 30,000 SF 1.50$ $ 45,000.00 0.55 $ $ 16,500.00 7 Aggregate Base (4” Thick) 600 TN 20.00$ $ 12,000.00 62.40 $ $ 37,440.00 8 8" Cold Tie-In Tee (Fire Water Line) w/8" RWGV 1 EA 25,000.00$ $ 25,000.00 15,967.90 $ $ 15,967.90 9 8" Fire Water Line 100 LF 100.00$ $ 10,000.00 100.41 $ $ 10,041.00 10 Fire Service Backflow Prevention Assembly with FDC Options 1 EA 30,000.00$ $ 30,000.00 27,235.00 $ $ 27,235.00 11 4" PVC Fire Water Line 250 LF 40.00$ $ 10,000.00 37.32 $ $ 9,330.00 12 2" Water Meter & Service at Shepard (WA-14A) 1 EA 5,000.00$ $ 5,000.00 4,888.00 $ $ 4,888.00 13 2” Landscape Water Meter & Service (WA-15A) 1 EA 5,000.00$ $ 5,000.00 4,888.00 $ $ 4,888.00 14 Reduced Pressure (RP) Type Backflow Prevention Device (WA-29) 1 EA 5,000.00$ $ 5,000.00 4,056.00 $ $ 4,056.00 15 4" Sewer Tie-In (Cultural Center) 1 EA 2,000.00$ $ 2,000.00 2,405.00 $ $ 2,405.00 16 4" Sewer Lateral (Cultural Center) 110 LF 25.00$ $ 2,750.00 28.23 $ $ 3,105.30 17 4" Sewer Clean Out (Cultural Center) 1 EA 1,000.00$ $ 1,000.00 973.70 $ $ 973.70 18 4" Sewer Tie-In (Enos House) 1 EA 2,500.00$ $ 2,500.00 2,454.40 $ $ 2,454.40 19 4" Sewer Lateral (Enos House) 140 LF 25.00$ $ 3,500.00 28.67 $ $ 4,013.80 20 4" Sewer Clean Out (Enos House) 1 EA 1,000.00$ $ 1,000.00 973.70 $ $ 973.70 21 1" Water Meter & Service (Enos House & Cultural Center, WA-14) 1 EA 3,500.00$ $ 3,500.00 3,835.00 $ $ 3,835.00 22 Reduced Pressure (RP) Type Backflow Prevention Device (Enos House & Cultural Center, WA 29) 1E A 2,500.00$ $ 2,500.00 2,564.90 $ $ 2,564.90
23 1" PVC Water Line (Enos House) 15 LF 150.00$ $ 2,250.00 152.88 $ $ 2,293.20 24 2" PVC Water Line (Cultural Center) 400 LF 30.00$ $ 12,000.00 33.22 $ $ 13,288.00 25 Joint Utility Trench (Electrical, Cable/TV, Telephone, RD-33) 600 LF 45.00$ $ 27,000.00 42.43 $ $ 25,458.00 26 18" HDPE Storm Drain 200 LF 60.00$ $ 12,000.00 59.85 $ $ 11,970.00 27 Storm Drain Tie-in at Manhole 1 EA 3,500.00$ $ 3,500.00 3,406.00 $ $ 3,406.00 28 36" x 36" Catch Basin 1E A 5,000.00$ $ 5,000.00 4,976.40 $ $ 4,976.40 29 Hydrant Upgrade to (1) 4.5" Outlet and (2) 2.5" Outlets 1 EA 7,500.00$ $ 7,500.00 7,553.00 $ $ 7,553.00 30 Streetlight Relocation 1E A 20,000.00$ $ 20,000.00 18,460.00 $ $ 18,460.00 31 Commercial Driveway 1L S 15,000.00$ $ 15,000.00 14,885.00 $ $ 14,885.00 32 Concrete Sidewalk 1000 SF 25.00$ $ 25,000.00 11.45 $ $ 11,450.00 33 Concrete Curb and Gutter 100 LF 50.00$ $ 5,000.00 50.94 $ $ 5,094.00 34 Hot Mixed Asphalt, Conform (3” thk. x 24” wide) 200 SF 25.00$ $ 5,000.00 24.96 $ $ 4,992.00 35 Record Drawings 1L S 1,500.00$ $ 1,500.00 1,080.00 $ $ 1,080.00 $ 436,500.00 $ 390,004.70 $ 0.00 $ 0.00 $ 0.00
ENGINEER'S ESTIMATE 8640 Industrial Pkwy #100
The J.F. Will Company
Santa Maria, CA 93455
TOTAL:

DETAILED BID RESULTS CITY OF SANTA MARIA
E-MAIL: [email protected]

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,

CALIFORNIA, AWARDING THE BID AND APPROVING AN AGREEMENT WITH THE J.F. WILL COMPANY, INC., PHASE I OF THE ENOS RANCH PROJECT, BID NO. 2023/06

WHEREAS, the City of Santa Maria formally advertised Phase I of the Enos Ranch Project, Bid No. 2023/06 (“Project”); and

WHEREAS, the Notice Inviting Bids was published and posted in compliance with applicable sections of the Public Contract Code; and

WHEREAS, the bids were publicly opened at 2:00 p.m. on May 30, 2023, in City Hall; and

WHEREAS, The J.F. Will Company, Inc., was the only bidder and determined to be a responsive and responsible bidder who included all required documentation, bid bonds, and signatures; and

WHEREAS, the project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 – Existing (operation, repair, maintenance, leasing, etc.) of the California Environmental Quality Act State Guidelines because the scope of work to be conducted is an existing public facility, with negligible expansion of the existing uses.

WHEREAS, sufficient funds for this budgeted project in FY 22/23 are located in the account titled “Enos Ranch Project”

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. The Mayor is hereby authorized and directed to execute, for and on behalf of the City of Santa Maria, a n Agreement with The J.F. Will Company, Inc. , for Phase I of the Enos Ranch Project, Bid No. 2023/06; and

2. The award of the bid is conditional upon execution of the Agreement by the successful bidder in the form and terms set forth therein by the City; and

3. The City Manager, or designee, is hereby authorized and directed to designate funds from the following identified account: “Enos Ranch Project” for the approved project in the amount of $390,004.70; and

2 4. The City Manager, or designee, is hereby authorized to approve Contract Change Orders so long as expenditures do not exceed funding approved for the project; and

5. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substa ntial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Public Works

SUBJECT: Award of Professional Services Agreements for Municipal Improvements Job-Order Pavement Repairs

Description:

The City Council will consider awarding Professional Services Agreements for Municipal Improvements Job -Order Pavement Repairs to V. Lopez Jr. & Sons, Inc. , Main Line Engineering Construction, Inc., and to R. Burke Corporation to provide additional resources to repair and replace hot-mixed asphalt on existing street segments and emergency repairs, as deemed necessary.

Environmental Notice: The City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential f or causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

RECOMMENDATIONS:

1. Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job -Order Pavement Repairs to V. Lopez Jr. & Sons, Inc.

2. Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job -Order Pavement Repairs to Main Line Engineering Construction, Inc.

3. Adopt a Resolution awarding a Professional Services Agreement in the amount of $4,000,000 for Municipal Improvements Job -Order Pavement Repairs to R. Burke Corporation.

BACKGROUND:

The City maintains approximately 53,000,000 square feet of pavement throughout the City. The intent of these contracts is to provide additional resources to make repairs to existing street segments and emergency repairs, as the City deems appropriate. In

2 general, the work consists of repair and replacement of hot -mixed asphalt on existing street segments, as required.

DISCUSSION:

The City’s Pub lic Works Engineering Division utilizes four methods to construct City projects in the most cost-effective and efficient manner possible. The four methods used are: Formal Bidding, Informal Bidding, Job -Order Construction Contracting, and construction performed by in-house City crews. Job-Order Construction Contracting has proven to be an effective method and useful tool to construct and implement routine City projects.

On April 11, 2022, a Formal Bid was issued and advertised through the City website. In addition, notification emails were sent to firms who expressed interest in providing street repairs services for the City. The publicly advertised call for bids contained a Bid Schedule, where upon bidders were required to list rates for routine constructi on items.

These rates cover repair, replacement, upgrade, and construction of street improvements.

For the purpose of awarding these Job-Order Contracts, the basis for determining the low bidder is the Total Base Bid. The Base Bid establishes prices for the various bid items that may be used in the execution of project work orders during normal construction hours.

The Alternate Additive Bid establishes an adjustment factor to be applied to bid items that would be used in the execution of work orders that must be performed outside of normal work hours, typically to reduce impacts to traffic or utility operations.

Three (3) bids were received by Clerk’s Office on May 20, 2023.

Firm and Location
V. Lopez Jr. & Sons, Inc., Santa Maria, CA
Main Line Engineering Construction, Inc., Lompoc, CA
R. Burke Corporation, San Luis Obispo, CA

Since this contract is based upon unit prices and not a specific project, an Engineer’s Estimate was not prepared for comparison. The bid amounts submitted by all three firms are comparable with the previous Job-Order Contract prices adjusted for inflation.

The proposed Professional Services Agreements would be managed by the Engineering Division. Individual project task orders will be issued based on the firm’s expert ise, workload capacity, services to be performed, schedule requirements, and unit rates submitted in their proposal. All task orders will be issued based on an agreed -upon, written scope of work, implementation schedule, and maximum fee arrangement negotiated on a project-by-project basis.

The contracts shall remain in effect for all written work orders issued by the City during a 24-month period beginning with the effective date of the Notice to Proceed or until the exhaustion of the contract limit, which ever occurs first. These contracts do not give the

3 contractors exclusive rights to perform all work done for the City. Certain projects may be performed by City crews or be issued for bid proposals throughout the term of the contract, even if such contracts include this same type of work.

Alternative(s)
The City Council could decide not to award these Professional Services Agreements for pavement repairs and direct staff to issue a Formal Bid for each project individually.

However, this alternative is not recommended as there is a significant backlog of street repairs. Further, having pre-approved, on-call and as-needed firms readily available will enhance the efficiency and timeliness of project delivery, as multiple projects can be concurrently designed.

Fiscal Considerations
This action does not appropriate any funding. Any projects constructed under this job order contract will be fully funded by Capital Improvement Program projects approved by the City Council as part of the annual budget process. There is no minimum dollar value of work guaranteed under this contract, and assignment of work orders is at the sole discretion of the City.

Fees for Job -Order Pavement Repairs will be based on a project -by-project basis and directly charged to individu al project budgets. Each project is separately approved and budgeted by the City Council. The City is under no obligation to expend any funds under these Professional Services Agreements.

Impact to the Community
The community will benefit by the City being able to respond to and address deficiencies on City streets, resulting in a higher quality of life and driving experience for residents and visitors to the community.

Other Agency Review
No other agency review is necessary or anticipated.

ATTACHMENTS
Attachment A- Professional Services Agreement_V Lopez_2023-06-20 Attachment B- Professional Services Agreement_Main Line_2023-06-20 Attachment C- Professional Services Agreement_R Burke_2023-06-20

AGREEMENT FOR PROFESSIONAL SERVICES

Job-Order Pavement Repairs Contract

This Agreement is made on June 20, 2023, by and between V. Lopez Jr. & Sons, Inc., a California Corporation (“Contractor”) , and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

WHEREAS, City has determined it is in the public interest to proceed with the work hereinafter described as "Project"; and

WHEREAS, City has determined the Project involves the performance of construction services of a temporary nature; and

WHEREAS, City does not have available employees to perform the services for the Project; and

WHEREAS, City has requested the Contractor to provide manpower to complete the Project; and

WHEREAS, Contractor is registered or licensed in California to perform construction services for the Project.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.01. Term and Termination. The term of this contract is two (2) year s, beginning on the date first written above. This contract may be extended by mutual consent of the parties. This contract may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state , or federal law.

Termination is effective 14 days after deposit of notice as specified in this Agreement.

2.02. Services to be Performed. Contractor shall determine the method, details, and means of providing miscellaneous pavement repairs s ervices. More specifically, Contractor agrees to perform the specific services listed in Exhibit “A.”

2.03. City’s Duties. City’s duties under this Agreement are to cooperate with Contractor in the performance of the contract and timely pay invoices.

2.04. Payment. Payment terms under this Agreement are listed in Exhibit “B.”

2.05. Insurance. Contractor shall provide insurance as listed in Exhibit “C.”

2.06. Exhibits. Exhibits “A,” “B,” and “C” are attached and incorporated

2 Atty. Rev. 2021

3. Contractor’s Obligations.

3.01. Minimum Amount of Service. Contractor shall devote sufficient time to perform services under this agreement efficiently and effectively. Contractor may represent, perform services for, and be employed by additional in dividuals or entities, in Contractor’s sole discretion, as long as the performance of these extra-contractual services does not interfere with or present a conflict with City's business.

3.02. Tools and Equipment. Except as otherwise stated in this Agreement, Contractor will supply all tools and equipment necessary to perform this Agreement.

3.03. Status. Contractor (including its employees) is an independent contractor.

No employer/employee relationship exists between Contractor and the City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of the City.

The City is not required to make any deductions or withholdings from the compensation payable to Contractor under this agreement. Contractor (as a business entity, including its employees) is a “design professional” as defined by California Civil Code section 2782.8(c)(3).

3.04. Indemnification. To the fullest extent permitted by law, the Contractor shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Contractor including its employees. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Section are not limi ted by the provisions of the Section relating to insurance.

4. Miscellaneous

4.01. Notices. All communication relating to the day -to-day activities of this Agreement shall be exchanged between a designated representative of the CITY and a representative of CONTRACTOR, listed below. All notices shall be addressed as follows unless a written change is filed with the City:

To City:

Thomas M. Korman, P.E., P.L.S.

Principal Civil Engineer
110 East Cook Street
Santa Maria, CA 93454
To Contractor:

V. Lopez Jr. & Sons, Inc.

Attn: Vince Lopez
President
P.O. Box 488
Santa Maria, CA 93456

If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the

3 Atty. Rev. 2021

effective date of change. Any written notices required under this agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.02. Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this agreement.

4.03. Integration. This agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties.

4.04. Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.05. Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Northern Santa Barbara, State of Cal ifornia.

4.06. Warranty of authority. Each person signing this agreement on behalf of a party warrants that he or she has authority to do so.

4.07. No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.

4.08. Severability. The provisions of this agreement are severable. If any part of this agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.09. Submittals. In addition to any other submittals required by this agreement, Contractor shall submit copies of its current business license and current certificate of workers’ compensation coverage to the City before beginning work on this project.

4.10. Prevailing Wage. Prevailing Wage. If applicable, Contractor and all Subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Re lations under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at www.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein.

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IN WITNESS WHEREOF, this agreement is executed by the parties on the date first written above.

V. LOPEZ JR. & SONS, INC., A
California Corporation
CITY OF SANTA MARIA, a political
subdivision of the State of California

___________________________
By: VINCE LOPEZ
President

___________________________
By: JASON STILWELL
City Manager
ATTEST:

___________________________
Rhonda M. White, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:

______________________
City Attorney

______________________
Risk Manager

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EXHIBIT “A”

SERVICES TO BE PERFORMED

Sawcutting (S)

S-1-a Sawcut (3” Thick Base Bid)
Payment for the sawcut of hot mix asphalt (3” thick base bid) shall be paid per lineal foot (LF). This item includes sawcutting existing hot mix asphalt and/or concrete at a nominal 3” thickness.

S-1-b Sawcut (1” Thick Increment, greater than 3”)
Payment for thicker pavement sections shall be paid per lineal foot (LF) in 1” increments, greater than the 3” thick base bid. This item includes sawcutting existing hot mix asphalt and/or concrete greater than the 3” thick base bid.

Demolition (D)
D-1-a, D-1-b, and D-1-c Demolition and Disposal (3” Thick Base Bid) Payment for Demolition and Disposal (3” Thick Base Bid) of existing pavement sections (hot mix asphalt and/or concrete, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal of existing pavement sections. Note: this bid item will be used with bid items S-1-a and S-1-b Sawcut.

D-1-d Demolition and Disposal (1” Thick Increment, greater than 3”) Payment for Demolition and Disposal (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt and/or concrete, aggregate base and earth) shall be paid per square foot (SF) in 1” increments, greater than the 3” thick Base Bid. This item includes all cost associated in the removal and disposal of existing pavement sections.

Note: this bid item will be used with bid items S-1-a and S-1-b Sawcut.

Aggregate Base (AB)

AB-1-a, AB-1-b, AB-1-c, AB-1-d, and AB-1-e Furnish, Place and Compact Class II Aggregate Base (4” Thick Base Bid)
Payment for Furnish, Place and Compact Class II Aggregate Base (4” Thick Base Bid) shall be paid per square foot (SF). This item includes all cost associated with furnishing, placing, and compacting Class II Aggregate.

AB-1-f Furnish, Place and Compact Class II Aggregate Base (1 Thick increment, greater than 4”)
Payment for Furnish, Place and Compact Class II Aggregate Base (1” Thick increment, greater than 3” shall be paid per square foot (SF) in 1” increments, greater than the 4” thick Base Bid. This item includes all cost associated with furnishing, placing, and compacting Class II Aggregate.

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Taper Grind (TG)

TG-1-a, TG-1-b, and TG-1-c, Demolition and Disposal by Taper Grind (3” Thick, 20’ wide Base Bid
Payment for Demolition and Disposal by Taper Grinding of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with performing a Taper Grind 3” Thick to 0” Thick, over a 20’ width.

TG-1-d, Demolition and Disposal by Taper Grind (1” Thick increment greater than 3”, 20’ wide Base Bid
Payment for Demolition and Disposal by Taper Grinding (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with performing a Taper Grind 1” Thick increments greater than 3”) to 0” Thick, over a 20’ width.

Grinding (G)

G-1-a, G-1-b, and G-1-c Demolition and Disposal by Grinding (3” Thick Base Bid) Payment for Demolition and Disposal by Grinding (3” Thick Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal by grinding of existing pavement sections.

G-1-d Demolition and Disposal by Grinding (1” Thick Increment, greater than 3”) Payment for Demolition and Disposal by Grinding (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF) in 1” increments, greater than the 3” thick Base Bid. This item includes all cost associated in the removal and disposal by grinding of existing pavement sections.

Leveling Course (LC)

LC-1-a, LC-1-b, and LC-1-c Leveling Course (1" Hot Mix Asphalt Paving, Type A 1/2"agg.)
Measurement and payment for this item shall be on a per square foot (SF) basis. The unit price shall pay for all costs of “1" Hot Mix Asphalt Paving (1/2" Type A) (Leveling Course). The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer.

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Pavement Reinforcement

PG-1-a Paving Grid (Class II, with 1” Openings) and Paving Fabric, respectively.

Payment for Furnish and Place paving fabric shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with the installation of pavement reinforcing grid under or between asphalt concrete overlays. Tack coat is included in the payment for paving grid.

PF-1-a Paving Fabric
Payment for Furnish and Place paving fabric shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with the installation of pavement reinforcing fabric under or between asphalt concrete overlays. Tack coat is included in the payment for paving fabric.

Production Paving (PP)

PP-1-a, PP-1-b, and PP-1-c Furnish, Place and Compact Hot Mix Asphalt (3” Thick Base Bid)
Payment for Furnish, Place and Compact Hot Mix Asphalt (3” Thick Base Bid) shall be paid per (SF) square foot. Payment for thicker section of hot mix asphalt shall be paid by the base bid plus price per square foot of 1” thick increment under Bid Item No. PP- 1-d. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer.

PP-1-d Furnish, Place and Compact Hot Mix Asphalt (1” Thick Increment, greater than 3”)
Payment for Furnish, Place and Compact Hot Mix Asphalt (1” Thick Increment, greater than 3”) shall be paid per (SF) square foot in 1” increments, greater than the 3” thick Base Bid. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer. This bid item will be used with bid items PP-1-a, PP-1-b, and PP-1-c.

Dig Out (DO)

DO-1-a, DO-1-b, and DO-1-c Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid)
Payment for Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal by grinding of existing pavement sections, and hot mix asphalt placement, finishing and other cost associated to install hot mix asphalt

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for production paving complete in place, as shown on the plans or directed by the Engineer.

DO-1-d Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick Increment, greater than 6”)
Payment for Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick increments, greater than the 6” Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF).

This item includes all cost associated in the removal and disposal by grinding of existing pavement sections, and hot mix asphalt placement, finishing and other cost associated to install hot mix asphalt for production paving complete in place, as shown on the plans or directed by the Engineer. This bid item will be used with bid items DO-1-a, DO-1-b, and DO-1-c.

Grind in Pace (GiP)

GiP-1-a, GiP-1-b, GiP-1-c Grind In Place (6” Thick Base Bid) Measurement and payment for this item shall be on a per square foot (SF) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary to grind existing Hot Mixed Asphalt, spread to grade, remove excess, grindings, and compact in place.

Shoulder Backing (SB)

SB-1-a Shoulder Backing
Measurement and payment for this item shall be on a per square foot (SF) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary to spread to grade, remove excess, grindings, and compact in place.

Adjustments to Grade

MW-1-a Remove, Replace, and Adjust Monument Well to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to grade of monument well, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing monument well prior to construction, and installing a monument well at final grade after grading and/or paving operations.

WV-1-a Remove, Replace, and Adjust Water Valve Box to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to grade of water valve boxes, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal and

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disposing of the existing water valve box prior to construction, and installing a new water valve box at final grade after grading and/or paving operations. This item also includes protecting valve risers during construction, and shortening or extending valve risers as appropriate.

SC-1-a Remove, Replace, and Adjust Sewer Cleanout Box to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer cleanout, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal and disposal of the sewer cleanout box prior to construction, and installing a sewer cleanout box at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending piping as appropriate.

SS-1-a Remove, Replace, and Adjust Sanitary Sewer Manhole to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer manhole, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing sewer manhole frame and cover to construction, and installing a sewer manhole frame and cover at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending rings as appropriate.

S-1-a Remove, Replace, and Adjust Sewer Manhole to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer manhole, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing sewer manhole frame and cover to construction, and installing a sewer manhole frame and cover at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending rings as appropriate.

Traffic Control (TC)
Payment for standard traffic control as needed shall be included in various unit prices of the project. Standard traffic control for any single project shall include up to the following:

8 Vinyl Signs (of appropriate type for the given project) with Stands 100 24” Traffic Cones with Reflective Bands
50 Class 1 Barricades
50 Class 1 Barricades with flashers
4 Class 3 Barricades
50 Delineators with Reflective Bands

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-- Paper Traffic Signage as Needed

All other traffic control shall be paid per Section 9-1.03, “Force Account”, of the Standard Specifications except those for which there is a specific bid item.

TC-1-a Changeable Message Sign
Payment for Changeable Message Sign, when required by the Engineer, shall be paid per day (Day). This item includes material, labor, equipment, and other cost associated to furnish, place, operate and maintain changeable message boards as required.

TC-2-a Flag person
Payment for Flag person, when required by the Engineer, shall be paid per hour (Hr).

This item includes 50% of the cost for labor, equipment and other cost associated to furnish competent flag person(s) during construction operations.

PL-1-a Premium Labor
Payment for Premium Labor on City projects shall be paid as an adjustment factor percentage (AF%) to the Total Base Bid. This item includes all costs associated with premium labor. Premium labor is defined as labor required by the City to be performed outside approved weekday (M-F) construction hours. Approved construction hours are limited to 7:00 am to 7:00 pm Monday through Friday, 8:00 am to 6:00 pm Saturday and 10:00 am to 5:00 pm Sunday. Contractors wishing to perform labor outside approved construction hours may do so at the written authorization of the City but may not apply the premium labor adjustment factor percentage (AF%) to such work.

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EXHIBIT “B”

PAYMENT

I. Progress Authorization

This contract is subject to the requirements of Page G-9 of the Purchasing Guidelines for the City of Santa Maria.

Individual task order will be created under this Master Agreement for the completion of each task.

The aggregate not-to-exceed fee for all tasks provided during the initial one-year term of the Agreement shall be $4,000,000.00.

II. Invoice procedure.

A. Payment shall be at the conclusion of the Project based on the billable charges.

B. The Contractor shall present the bill for charges by the second day of the month.

C. The Contractor’s bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts

Under no circumstance shall the total of all payments to the Contractor exceed ninety percent (90%) of the maximum not-to-exceed cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A".

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Item No. Quantity
Increment Unit Description

Unit Price

SAWCUTTING (S)
S-1-a N/A LF Sawcut (3" Thick Base Bid) $ 2.50
S-1-b N/A LF Sawcut (1" Thick Increment, greater than 3") $ 1.00

DEMOLITION (D)
D-1-a 1 - 5,000 SF HMA Demolition and Disposal (3” Thick Maximum) $ 5.00 D-1-b 5,001 + 10,000 SF HMA Demolition and Disposal (3” Thick Maximum) $ 3.50 D-1-c 10,001 + SF HMA Demolition and Disposal (3” Thick Maximum) $ 2.50 D-1-d N/A SF HMA Demolition and Disposal (1” Thick Increment greater than 3”) $ 1.50

AGGREGATE BASE (AB)
AB-1-a 1 - 5,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 4.62 AB-1-b 5,001 - 10,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 3.12 AB-1-c 10,001 - 50,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 2.08 AB-1-d 50,001 - 100,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 1.69 AB-1-e 100,001 + SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 1.56 AB-1-f N/A SF Furnish, Place, and Compact Class II Aggregate Base (1" Thick Increment, greater than 4”) $ 0.62

TAPER GRIND (TG)
TG-1-a 1 - 50,000 SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 1.57 TG-1-b 50,001 - 100,000 SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 1.50 TG-1-c 100,001 + SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 1.37 TG-1-d N/A SF Demolition and Disposal by Taper Grinding (1" Thick Increment greater than 3", 20’ wide Base Bid) $ 0.31

GRINDING (G)
G-1-a 1 - 50,000 SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 2.00 G-2-b 50,001 - 100,000 SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 1.43 G-3-c 100,001 + SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 1.25 G-3-d N/A SF Demolition and Disposal by Grinding (1" Thick Increment, greater than 3") $ 0.31

LEVELING COURSE (LC)
LC-1-a 1 - 50,000 SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $ 2.10 LC-1-b 50,001 - 100,000 SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $ 1.87 LC-1-c 100,001 + SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $ 1.69

PAVEMENT REINFORCEMENT
PG-1-a 10,001 + SF Paving Grid (Class II, with 1” Openings) $ 2.81 PF-1-a 10,001 + SF Paving Fabric $ 0.94

PRODUCTION PAVING (PP)
PP-1-a 1 - 50,000 SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 4.06 PP-1-b 50,001 - 100,000 SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 3.87 PP-1-c 100,001 + SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 3.75

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PP-1-d N/A SF Furnish, Place and Compact Hot Mix Asphalt (1" Thick Increment, greater than 3") $ 1.45

DIG OUT (DO)
DO-1-a 1 - 50,000 SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 11.25
DO-1-b 50,001 - 100,000 SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 9.68
DO-1-c 100,001 + SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 9.31
DO-1-d N/A SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick Increment, greater than 6”) $ 4.96

GRIND IN PLACE
GiP-1-a 1 - 50,000 SF Grind In Place (6” Thick Base Bid) $ 1.87 GiP-1-b 50,001 - 100,000 SF Grind In Place (6” Thick Base Bid) $ 1.37 GiP-1-c 100,001 + SF Grind In Place (6” Thick Base Bid) $ 0.94 GiP-1-d N/A SF Grind In Place (1” Thick Increment, greater than 6”) $ 0.31

SHOULDER BACKING
SB-1-a 1 - 50,000 SF Shoulder Backing (3’ wide) $ 1.25

ADJUSTMENTS TO GRADE
MW-1-a 1-50 EA Remove, Replace, and Adjust Monument Well to Grade $ 1,000.00 WV-1-a 1-50 EA Remove, Replace, and Adjust Water Valve Box to Grade $ 1,000.00 CO-1-a 1-50 EA Remove, Replace, and Adjust Sewer Cleanout Box to Grade $ 1,000.00 SS-1-a 1-50 EA Remove, Replace, and Adjust Sanitary Sewer (SS) Frame and Grate to Grade $1,500.00 SD-1-a 1-50 EA Remove, Replace, and Adjust, Storm Drain (SD) Frame and Grate to Grade $ 1,500.00

TRAFFIC CONTROL (TC)
TC-1-a N/A Day Changeable Message Sign $ 500.00
TC-2-a N/A Hr Flag person $ 125.00

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EXHIBIT “C”

INSURANCE

INSURANCE REQUIREMENTS

Provider shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Provider, his/her agents, representatives, or employees. If the Provider maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Provider.

A. Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial Ge neral Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Provider has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Errors and Omissions liability i nsurance appropriate to the Provider's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

5. Cyber Liability Insurance, Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, inform ation theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance

Provider shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

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2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: Statutory limits.

4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. Self-insured Retentions

Self-insured retentions must be declared to and approved by the City. The City may require the Provider to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration a nd defense expenses within the retention.

D. Other Insurance Provisions

The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Provider including materials, parts or equipment furnished in connection wit h such work or operations. General liability coverage can be provided in the form or an endorsement to the Provider’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, the Provider's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Provider's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested.

4. Provider hereby grants to City a waiver of any right to subrogation which any insurer of said Provider may acquire against the City by virtue of the payment of any loss under such insurance. Provider agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims-made coverage:

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a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. If coverage is canceled or non -renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Provider must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

E. Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage

Provider shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Provider’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances

The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

AGREEMENT FOR PROFESSIONAL SERVICES

Job-Order Pavement Repairs Contract

This Agreement is made on June 20, 2023, by and between Main Line Engineering Construction, Inc., a California Corporation (“Contractor”), and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

WHEREAS, City has determined it is in the public interest to proceed with the work hereinafter described as "Project"; and

WHEREAS, City has determined the Project involves the performance of construction services of a temporary nature; and

WHEREAS, City does not have available employees to perform the services for the Project; and

WHEREAS, City has requested the Contractor to provide manpower to complete the Project; and

WHEREAS, Contractor is registered or licensed in California to perform construction services for the Project.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.01. Term and Termination. The term of this contract is two (2) year s, beginning on the date first written above. This contract may be extended by mutual consent of the parties. This contract may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state , or federal law.

Termination is effective 14 days after deposit of notice as specified in this Agreement.

2.02. Services to be Performed. Contractor shall determine the method, details, and means of providing miscellaneous pavement repairs s ervices. More specifically, Contractor agrees to perform the specific services listed in Exhibit “A.”

2.03. City’s Duties. City’s duties under this Agreement are to cooperate with Contractor in the performance of the contract and timely pay invoices.

2.04. Payment. Payment terms under this Agreement are listed in Exhibit “B.”

2.05. Insurance. Contractor shall provide insurance as listed in Exhibit “C.”

2.06. Exhibits. Exhibits “A,” “B,” and “C” are attached and incorporated

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3. Contractor’s Obligations.

3.01. Minimum Amount of Service. Contractor shall devote sufficient time to perform services under this agreement efficiently and effectively. Contractor may represent, perform services for, and be employed by additional individuals or entities, in Contractor’s sole discretion, as long as the performance of these extra-contractual services does not interfere with or present a conflict with City's business.

3.02. Tools and Equipment. Except as otherwise stated in this Agreement, Contractor will supply all tools and equipment necessary to perform this Agreement.

3.03. Status. Contractor (including its employees) is an independent contractor.

No employer/employee relationship exists between Contractor and the City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of the City.

The City is not required to make any deductions or withholdings from the compensation payable to Contractor under this agreement. Contractor (as a business entity, including its employees) is a “design professional” as defined by California Civil Code section 2782.8(c)(3).

3.04. Indemnification. To the fullest extent permitted by law, the Contractor shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Contractor including its employees. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Section are not limi ted by the provisions of the Section relating to insurance.

4. Miscellaneous

4.01. Notices. All communication relating to the day -to-day activities of this Agreement shall be exchanged between a designated representative of the CITY and a representative of CONTRACTOR, listed below. All notices shall be addressed as follows unless a written change is filed with the City:

To City:

Thomas M. Korman, P.E., P.L.S.

Principal Civil Engineer
110 East Cook Street
Santa Maria, CA 93454
To Contractor:

Main Line Engineering Construction, Inc.

Attn: Ariel Arroyo, CEO
116 E. College, Suite A
Lompoc, CA 93436

If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this agreement shall be

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effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.02. Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this agreement.

4.03. Integration. This agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties.

4.04. Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.05. Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Northern Santa Barbara, State of Cal ifornia.

4.06. Warranty of authority. Each person signing this agreement on behalf of a party warrants that he or she has authority to do so.

4.07. No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.

4.08. Severability. The provisions of this agreement are severable. If any part of this agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.09. Submittals. In addition to any other submittals required by this agreement, Contractor shall submit copies of its current business license and current certificate of workers’ compensation coverage to the City before beginning work on this project.

4.10. Prevailing Wage. Prevailing Wage. If applicable, Contractor and all Subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at www.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein.

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IN WITNESS WHEREOF, this agreement is executed by the parties on the date first written above.

MAIN LINE ENGINEERING
CONSTRUCTION, INC., A California
Corporation
CITY OF SANTA MARIA, a political
subdivision of the State of California

___________________________
By: ARIEL ARROYO
CEO

___________________________
By: JASON STILWELL
City Manager
ATTEST:

___________________________
Rhonda M. White, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:

______________________
City Attorney

______________________
Risk Manager

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EXHIBIT “A”

SERVICES TO BE PERFORMED

Sawcutting (S)

S-1-a Sawcut (3” Thick Base Bid)
Payment for the sawcut of hot mix asphalt (3” thick base bid) shall be paid per lineal foot (LF). This item includes sawcutting existing hot mix asphalt and/or concrete at a nominal 3” thickness.

S-1-b Sawcut (1” Thick Increment, greater than 3”)
Payment for thicker pavement sections shall be paid per lineal foot (LF) in 1” increments, greater than the 3” thick base bid. This item includes sawcutting existing hot mix asphalt and/or concrete greater than the 3” thick base bid.

Demolition (D)
D-1-a, D-1-b, and D-1-c Demolition and Disposal (3” Thick Base Bid) Payment for Demolition and Disposal (3” Thick Base Bid) of existing pavement sections (hot mix asphalt and/or concrete, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal of existing pavement sections. Note: this bid item will be used with bid items S-1-a and S-1-b Sawcut.

D-1-d Demolition and Disposal (1” Thick Increment, greater than 3”) Payment for Demolition and Disposal (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt and/or concrete, aggregate base and earth) shall be paid per square foot (SF) in 1” increments, greater than the 3” thick Base Bid. This item includes all cost associated in the removal and disposal of existing pavement sections.

Note: this bid item will be used with bid items S-1-a and S-1-b Sawcut.

Aggregate Base (AB)

AB-1-a, AB-1-b, AB-1-c, AB-1-d, and AB-1-e Furnish, Place and Compact Class II Aggregate Base (4” Thick Base Bid)
Payment for Furnish, Place and Compact Class II Aggregate Base (4” Thick Base Bid) shall be paid per square foot (SF). This item includes all cost associated with furnishing, placing, and compacting Class II Aggregate.

AB-1-f Furnish, Place and Compact Class II Aggregate Base (1 Thick increment, greater than 4”)
Payment for Furnish, Place and Compact Class II Aggregate Base (1” Thick increment, greater than 3” shall be paid per square foot (SF) in 1” increments, greater than the 4” thick Base Bid. This item includes all cost associated with furnishing, placing, and compacting Class II Aggregate.

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Taper Grind (TG)

TG-1-a, TG-1-b, and TG-1-c, Demolition and Disposal by Taper Grind (3” Thick, 20’ wide Base Bid
Payment for Demolition and Disposal by Taper Grinding of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with performing a Taper Grind 3” Thick to 0” Thick, over a 20’ width.

TG-1-d, Demolition and Disposal by Taper Grind (1” Thick increment greater than 3”, 20’ wide Base Bid
Payment for Demolition and Disposal by Taper Grinding (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with performing a Taper Grind 1” Thick increments greater than 3”) to 0” Thick, over a 20’ width.

Grinding (G)

G-1-a, G-1-b, and G-1-c Demolition and Disposal by Grinding (3” Thick Base Bid) Payment for Demolition and Disposal by Grinding (3” Thick Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal by grinding of existing pavement sections.

G-1-d Demolition and Disposal by Grinding (1” Thick Increment, greater than 3”) Payment for Demolition and Disposal by Grinding (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF) in 1” increments, greater than the 3” thick Base Bid. This item includes all cost associated in the removal and disposal by grinding of existing pavement sections.

Leveling Course (LC)

LC-1-a, LC-1-b, and LC-1-c Leveling Course (1" Hot Mix Asphalt Paving, Type A 1/2"agg.)
Measurement and payment for this item shall be on a per square foot (SF) basis. The unit price shall pay for all costs of “1" Hot Mix Asphalt Paving (1/2" Type A) (Leveling Course). The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer.

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Pavement Reinforcement

PG-1-a Paving Grid (Class II, with 1” Openings) and Paving Fabric, respectively.

Payment for Furnish and Place paving fabric shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with the installation of pavement reinforcing grid under or between asphalt concrete overlays. Tack coat is included in the payment for paving grid.

PF-1-a Paving Fabric
Payment for Furnish and Place paving fabric shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with the installation of pavement reinforcing fabric under or between asphalt concrete overlays. Tack coat is included in the payment for paving fabric.

Production Paving (PP)

PP-1-a, PP-1-b, and PP-1-c Furnish, Place and Compact Hot Mix Asphalt (3” Thick Base Bid)
Payment for Furnish, Place and Compact Hot Mix Asphalt (3” Thick Base Bid) shall be paid per (SF) square foot. Payment for thicker section of hot mix asphalt shall be paid by the base bid plus price per square foot of 1” thick increment under Bid Item No. PP- 1-d. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer.

PP-1-d Furnish, Place and Compact Hot Mix Asphalt (1” Thick Increment, greater than 3”)
Payment for Furnish, Place and Compact Hot Mix Asphalt (1” Thick Increment, greater than 3”) shall be paid per (SF) square foot in 1” increments, greater than the 3” thick Base Bid. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer. This bid item will be used with bid items PP-1-a, PP-1-b, and PP-1-c.

Dig Out (DO)

DO-1-a, DO-1-b, and DO-1-c Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid)
Payment for Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal by grinding of existing pavement sections, and hot mix asphalt placement, finishing and other cost associated to install hot mix asphalt

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for production paving complete in place, as shown on the plans or directed by the Engineer.

DO-1-d Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick Increment, greater than 6”)
Payment for Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick increments, greater than the 6” Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF).

This item includes all cost associated in the removal and disposal by grinding of existing pavement sections, and hot mix asphalt placement, finishing and other cost associated to install hot mix asphalt for production paving complete in place, as shown on the plans or directed by the Engineer. This bid item will be used with bid items DO-1-a, DO-1-b, and DO-1-c.

Grind in Pace (GiP)

GiP-1-a, GiP-1-b, GiP-1-c Grind In Place (6” Thick Base Bid) Measurement and payment for this item shall be on a per square foot (SF) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary to grind existing Hot Mixed Asphalt, spread to grade, remove excess, grindings, and compact in place.

Shoulder Backing (SB)

SB-1-a Shoulder Backing
Measurement and payment for this item shall be on a per square foot (SF) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary to spread to grade, remove excess, grindings, and compact in place.

Adjustments to Grade

MW-1-a Remove, Replace, and Adjust Monument Well to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to grade of monument well, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing monument well prior to construction, and installing a monument well at final grade after grading and/or paving operations.

WV-1-a Remove, Replace, and Adjust Water Valve Box to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to grade of water valve boxes, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal and

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disposing of the existing water valve box prior to construction, and installing a new water valve box at final grade after grading and/or paving operations. This item also includes protecting valve risers during construction, and shortening or extending valve risers as appropriate.

SC-1-a Remove, Replace, and Adjust Sewer Cleanout Box to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer cleanout, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal and disposal of the sewer cleanout box prior to construction, and installing a sewer cleanout box at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending piping as appropriate.

SS-1-a Remove, Replace, and Adjust Sanitary Sewer Manhole to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer manhole, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing sewer manhole frame and cover to construction, and installing a sewer manhole frame and cover at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending rings as appropriate.

S-1-a Remove, Replace, and Adjust Sewer Manhole to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer manhole, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing sewer manhole frame and cover to construction, and installing a sewer manhole frame and cover at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending rings as appropriate.

Traffic Control (TC)
Payment for standard traffic control as needed shall be included in various unit prices of the project. Standard traffic control for any single project shall include up to the following:

8 Vinyl Signs (of appropriate type for the given project) with Stands 100 24” Traffic Cones with Reflective Bands
50 Class 1 Barricades
50 Class 1 Barricades with flashers
4 Class 3 Barricades
50 Delineators with Reflective Bands

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-- Paper Traffic Signage as Needed

All other traffic control shall be paid per Section 9-1.03, “Force Account”, of the Standard Specifications except those for which there is a specific bid item.

TC-1-a Changeable Message Sign
Payment for Changeable Message Sign, when required by the Engineer, shall be paid per day (Day). This item includes material, labor, equipment, and other cost associated to furnish, place, operate and maintain changeable message boards as required.

TC-2-a Flag person
Payment for Flag person, when required by the Engineer, shall be paid per hour (Hr).

This item includes 50% of the cost for labor, equipment and other cost associated to furnish competent flag person(s) during construction operations.

PL-1-a Premium Labor
Payment for Premium Labor on City projects shall be paid as an adjustment factor percentage (AF%) to the Total Base Bid. This item includes all costs associated with premium labor. Premium labor is defined as labor required by the City to be performed outside approved weekday (M-F) construction hours. Approved construction hours are limited to 7:00 am to 7:00 pm Monday through Friday, 8:00 am to 6:00 pm Saturday and 10:00 am to 5:00 pm Sunday. Contractors wishing to perform labor outside approved construction hours may do so at the written authorization of the City but may not apply the premium labor adjustment factor percentage (AF%) to such work.

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EXHIBIT “B”

PAYMENT

I. Progress Authorization

This contract is subject to the requirements of Page G-9 of the Purchasing Guidelines for the City of Santa Maria.

Individual task orders will be created under this Master Agreement for the completion of each task.

The aggregate not-to-exceed fee for all tasks provided during the initial one-year term of the Agreement shall be $4,000,000.00.

II. Invoice procedure.

A. Payment shall be at the conclusion of the Project based on the billable charges.

B. The Contractor shall present the bill for charges by the second day of the month.

C. The Contractor’s bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts

Under no circumstance shall the total of all payments to the Contractor exceed ninety percent (90%) of the maximum not-to-exceed cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A".

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Item No. Quantity
Increment Unit Description

Unit Price

SAWCUTTING (S)
S-1-a N/A LF Sawcut (3" Thick Base Bid) $ 3.60
S-1-b N/A LF Sawcut (1" Thick Increment, greater than 3") $ 0.67

DEMOLITION (D)
D-1-a 1 - 5,000 SF HMA Demolition and Disposal (3” Thick Maximum) $ 2.76 D-1-b 5,001 + 10,000 SF HMA Demolition and Disposal (3” Thick Maximum) $ 2.17 D-1-c 10,001 + SF HMA Demolition and Disposal (3” Thick Maximum) $ 1.81 D-1-d N/A SF HMA Demolition and Disposal (1” Thick Increment greater than 3”) $ 0.52

AGGREGATE BASE (AB)
AB-1-a 1 - 5,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 2.40 AB-1-b 5,001 - 10,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 2.17 AB-1-c 10,001 - 50,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 1.96 AB-1-d 50,001 - 100,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 1.76 AB-1-e 100,001 + SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 1.56 AB-1-f N/A SF Furnish, Place, and Compact Class II Aggregate Base (1" Thick Increment, greater than 4”) $ 0.21

TAPER GRIND (TG)
TG-1-a 1 - 50,000 SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 1.20 TG-1-b 50,001 - 100,000 SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 0.98 TG-1-c 100,001 + SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 0.84 TG-1-d N/A SF Demolition and Disposal by Taper Grinding (1" Thick Increment greater than 3", 20’ wide Base Bid) $ 0.32

GRINDING (G)
G-1-a 1 - 50,000 SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 2.10 G-2-b 50,001 - 100,000 SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 1.70 G-3-c 100,001 + SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 1.36 G-3-d N/A SF Demolition and Disposal by Grinding (1" Thick Increment, greater than 3") $ 0.32

LEVELING COURSE (LC)
LC-1-a 1 - 50,000 SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $ 1.71 LC-1-b 50,001 - 100,000 SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $ 1.38 LC-1-c 100,001 + SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $ 1.13

PAVEMENT REINFORCEMENT
PG-1-a 10,001 + SF Paving Grid (Class II, with 1” Openings) $ 2.40 PF-1-a 10,001 + SF Paving Fabric $ 0.93

PRODUCTION PAVING (PP)
PP-1-a 1 - 50,000 SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 3.96 PP-1-b 50,001 - 100,000 SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 3.72 PP-1-c 100,001 + SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 3.66

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PP-1-d N/A SF Furnish, Place and Compact Hot Mix Asphalt (1" Thick Increment, greater than 3") $ 0.93

DIG OUT (DO)
DO-1-a 1 - 50,000 SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 9.84
DO-1-b 50,001 - 100,000 SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 8.10
DO-1-c 100,001 + SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 7.80
DO-1-d N/A SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick Increment, greater than 6”) $ 3.60

GRIND IN PLACE
GiP-1-a 1 - 50,000 SF Grind In Place (6” Thick Base Bid) $ 1.14 GiP-1-b 50,001 - 100,000 SF Grind In Place (6” Thick Base Bid) $ 1.08 GiP-1-c 100,001 + SF Grind In Place (6” Thick Base Bid) $ 1.03 GiP-1-d N/A SF Grind In Place (1” Thick Increment, greater than 6”) $ 0.27

SHOULDER BACKING
SB-1-a 1 - 50,000 SF Shoulder Backing (3’ wide) $ 2.06

ADJUSTMENTS TO GRADE
MW-1-a 1-50 EA Remove, Replace, and Adjust Monument Well to Grade $ 2,100.00 WV-1-a 1-50 EA Remove, Replace, and Adjust Water Valve Box to Grade $ 1,950.00 CO-1-a 1-50 EA Remove, Replace, and Adjust Sewer Cleanout Box to Grade $ 1,950.00 SS-1-a 1-50 EA Remove, Replace, and Adjust Sanitary Sewer (SS) Frame and Grate to Grade $2,800.00 SD-1-a 1-50 EA Remove, Replace, and Adjust, Storm Drain (SD) Frame and Grate to Grade $ 2,800.00

TRAFFIC CONTROL (TC)
TC-1-a N/A Day Changeable Message Sign $ 250.00
TC-2-a N/A Hr Flag person $ 165.00

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EXHIBIT “C”

INSURANCE

INSURANCE REQUIREMENTS

Provider shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Provider, his/her agents, representatives, or employees. If the Provider maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Provider.

A. Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Provider has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Errors and Omissions liability insurance appropriate to the Provider's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

5. Cyber Liability Insurance, Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic inform ation, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance

Provider shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

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2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: Statutory limits.

4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. Self-insured Retentions

Self-insured retentions must be declared to and approved by the City. The City may require the Provider to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.

D. Other Insurance Provisions

The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Provider including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Provider’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, the Provider's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Provider's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested.

4. Provider hereby grants to City a waiver of any right to subrogation which any insurer of said Provider may acquire against the City by virtue of the payment of any loss under such insurance. Provider agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims-made coverage:

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a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. If coverage is canceled or non -renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Provider must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

E. Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage

Provider shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Provider’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances

The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

AGREEMENT FOR PROFESSIONAL SERVICES

Job-Order Pavement Repairs Contract

This Agreement is made on June 20, 2023, by and between R. Burke Corporation, a California Corporation (“Contractor”), and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

WHEREAS, City has determined it is in the public interest to proceed with the work hereinafter described as "Project"; and

WHEREAS, City has determined the Project involves the performance of construction services of a temporary nature; and

WHEREAS, City does not have available employees to perform the services for the Project; and

WHEREAS, City has requested the Contractor to provide manpower to complete the Project; and

WHEREAS, Contractor is registered or licensed in California to perform construction services for the Project.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.01. Term and Termination. The term of this contract is two (2) year s, beginning on the date first written above. This contract may be extended by mutual consent of the parties. This contract may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state , or federal law.

Termination is effective 14 days after deposit of notice as specified in this Agreement.

2.02. Services to be Performed. Contractor shall determine the method, details, and means of providing miscellaneous pavement repairs s ervices. More specifically, Contractor agrees to perform the specific services listed in Exhibit “A.”

2.03. City’s Duties. City’s duties under this Agreement are to cooperate with Contractor in the performance of the contract and timely pay invoices.

2.04. Payment. Payment terms under this Agreement are listed in Exhibit “B.”

2.05. Insurance. Contractor shall provide insurance as listed in Exhibit “C.”

2.06. Exhibits. Exhibits “A,” “B,” and “C” are attached and incorporated

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3. Contractor’s Obligations.

3.01. Minimum Amount of Service. Contractor shall devote sufficient time to perform services under this agreement efficiently and effectively. Contractor may represent, perform services for, and be employed by additional in dividuals or entities, in Contractor’s sole discretion, as long as the performance of these extra-contractual services does not interfere with or present a conflict with City's business.

3.02. Tools and Equipment. Except as otherwise stated in this Agreement, Contractor will supply all tools and equipment necessary to perform this Agreement.

3.03. Status. Contractor (including its employees) is an independent contractor.

No employer/employee relationship exists between Contractor and the City. Contractor's assigned personnel shall not be entitled to any benefits payable to employees of the City.

The City is not required to make any deductions or withholdings from the compensation payable to Contractor under this agreement. Contractor (as a business entity, including its employees) is a “design professional” as defined by California Civil Code section 2782.8(c)(3).

3.04. Indemnification. To the fullest extent permitted by law, the Contractor shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Contractor including its employees. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Section are not limi ted by the provisions of the Section relating to insurance.

4. Miscellaneous

4.01. Notices. All communication relating to the day -to-day activities of this Agreement shall be exchanged between a designated representative of the CITY and a representative of CONTRACTOR, listed below. All notices shall be addressed as follows unless a written change is filed with the City:

To City:

Thomas M. Korman, P.E., P.L.S.

Principal Civil Engineer
110 East Cook Street
Santa Maria, CA 93454
To Contractor:

R. Burke Corporation
Attn: Robert E Burke
P.O. Box 957
San Luis Obispo, CA 93406

If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this agreement shall be

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effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.02. Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this agreement.

4.03. Integration. This agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties.

4.04. Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.05. Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Northern Santa Barbara, State of Cal ifornia.

4.06. Warranty of authority. Each person signing this agreement on behalf of a party warrants that he or she has authority to do so.

4.07. No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.

4.08. Severability. The provisions of this agreement are severable. If any part of this agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.09. Submittals. In addition to any other submittals required by this agreement, Contractor shall submit copies of its current business license and current certificate of workers’ compensation coverage to the City before beginning work on this project.

4.10. Prevailing Wage. Prevailing Wage. If applicable, Contractor and all Subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at www.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein.

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IN WITNESS WHEREOF, this agreement is executed by the parties on the date first written above.

R. BURKE CORPORATION, A
California Corporation
CITY OF SANTA MARIA, a political
subdivision of the State of California

___________________________
By: ROBERT E BURKE
President

___________________________
By: JASON STILWELL
City Manager
ATTEST:

___________________________
Rhonda M. White, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:

______________________
City Attorney

______________________
Risk Manager

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EXHIBIT “A”

SERVICES TO BE PERFORMED

Sawcutting (S)

S-1-a Sawcut (3” Thick Base Bid)
Payment for the sawcut of hot mix asphalt (3” thick base bid) shall be paid per lineal foot (LF). This item includes sawcutting existing hot mix asphalt and/or concrete at a nominal 3” thickness.

S-1-b Sawcut (1” Thick Increment, greater than 3”)
Payment for thicker pavement sections shall be paid per lineal foot (LF) in 1” increments, greater than the 3” thick base bid. This item includes sawcutting existing hot mix asphalt and/or concrete greater than the 3” thick base bid.

Demolition (D)
D-1-a, D-1-b, and D-1-c Demolition and Disposal (3” Thick Base Bid) Payment for Demolition and Disposal (3” Thick Base Bid) of existing pavement sections (hot mix asphalt and/or concrete, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal of existing pavement sections. Note: this bid item will be used with bid items S-1-a and S-1-b Sawcut.

D-1-d Demolition and Disposal (1” Thick Increment, greater than 3”) Payment for Demolition and Disposal (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt and/or concrete, aggregate base and earth) shall be paid per square foot (SF) in 1” increments, greater than the 3” thick Base Bid. This item includes all cost associated in the removal and disposal of existing pavement sections.

Note: this bid item will be used with bid items S-1-a and S-1-b Sawcut.

Aggregate Base (AB)

AB-1-a, AB-1-b, AB-1-c, AB-1-d, and AB-1-e Furnish, Place and Compact Class II Aggregate Base (4” Thick Base Bid)
Payment for Furnish, Place and Compact Class II Aggregate Base (4” Thick Base Bid) shall be paid per square foot (SF). This item includes all cost associated with furnishing, placing, and compacting Class II Aggregate.

AB-1-f Furnish, Place and Compact Class II Aggregate Base (1 Thick increment, greater than 4”)
Payment for Furnish, Place and Compact Class II Aggregate Base (1” Thick increment, greater than 3” shall be paid per square foot (SF) in 1” increments, greater than the 4” thick Base Bid. This item includes all cost associated with furnishing, placing, and compacting Class II Aggregate.

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Taper Grind (TG)

TG-1-a, TG-1-b, and TG-1-c, Demolition and Disposal by Taper Grind (3” Thick, 20’ wide Base Bid
Payment for Demolition and Disposal by Taper Grinding of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with performing a Taper Grind 3” Thick to 0” Thick, over a 20’ width.

TG-1-d, Demolition and Disposal by Taper Grind (1” Thick increment greater than 3”, 20’ wide Base Bid
Payment for Demolition and Disposal by Taper Grinding (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with performing a Taper Grind 1” Thick increments greater than 3”) to 0” Thick, over a 20’ width.

Grinding (G)

G-1-a, G-1-b, and G-1-c Demolition and Disposal by Grinding (3” Thick Base Bid) Payment for Demolition and Disposal by Grinding (3” Thick Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal by grinding of existing pavement sections.

G-1-d Demolition and Disposal by Grinding (1” Thick Increment, greater than 3”) Payment for Demolition and Disposal by Grinding (1” Thick Increment, greater than 3”) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF) in 1” increments, greater than the 3” thick Base Bid. This item includes all cost associated in the removal and disposal by grinding of existing pavement sections.

Leveling Course (LC)

LC-1-a, LC-1-b, and LC-1-c Leveling Course (1" Hot Mix Asphalt Paving, Type A 1/2"agg.)
Measurement and payment for this item shall be on a per square foot (SF) basis. The unit price shall pay for all costs of “1" Hot Mix Asphalt Paving (1/2" Type A) (Leveling Course). The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer.

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Pavement Reinforcement

PG-1-a Paving Grid (Class II, with 1” Openings) and Paving Fabric, respectively.

Payment for Furnish and Place paving fabric shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with the installation of pavement reinforcing grid under or between asphalt concrete overlays. Tack coat is included in the payment for paving grid.

PF-1-a Paving Fabric
Payment for Furnish and Place paving fabric shall be paid per square foot (SF). This work shall consist of furnishing all labor, equipment, supplies, materials, and supervision necessary to complete all operations associated with the installation of pavement reinforcing fabric under or between asphalt concrete overlays. Tack coat is included in the payment for paving fabric.

Production Paving (PP)

PP-1-a, PP-1-b, and PP-1-c Furnish, Place and Compact Hot Mix Asphalt (3” Thick Base Bid)
Payment for Furnish, Place and Compact Hot Mix Asphalt (3” Thick Base Bid) shall be paid per (SF) square foot. Payment for thicker section of hot mix asphalt shall be paid by the base bid plus price per square foot of 1” thick increment under Bid Item No. PP- 1-d. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer.

PP-1-d Furnish, Place and Compact Hot Mix Asphalt (1” Thick Increment, greater than 3”)
Payment for Furnish, Place and Compact Hot Mix Asphalt (1” Thick Increment, greater than 3”) shall be paid per (SF) square foot in 1” increments, greater than the 3” thick Base Bid. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals for recompacting aggregate base or subgrade; applying tack coat; and placing, spreading, and compacting asphalt concrete as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer. This bid item will be used with bid items PP-1-a, PP-1-b, and PP-1-c.

Dig Out (DO)

DO-1-a, DO-1-b, and DO-1-c Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid)
Payment for Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF). This item includes all cost associated in the removal and disposal by grinding of existing pavement sections, and hot mix asphalt placement, finishing and other cost associated to install hot mix asphalt

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for production paving complete in place, as shown on the plans or directed by the Engineer.

DO-1-d Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick Increment, greater than 6”)
Payment for Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick increments, greater than the 6” Base Bid) of existing pavement sections (hot mix asphalt, aggregate base and earth) shall be paid per square foot (SF).

This item includes all cost associated in the removal and disposal by grinding of existing pavement sections, and hot mix asphalt placement, finishing and other cost associated to install hot mix asphalt for production paving complete in place, as shown on the plans or directed by the Engineer. This bid item will be used with bid items DO-1-a, DO-1-b, and DO-1-c.

Grind in Pace (GiP)

GiP-1-a, GiP-1-b, GiP-1-c Grind In Place (6” Thick Base Bid) Measurement and payment for this item shall be on a per square foot (SF) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary to grind existing Hot Mixed Asphalt, spread to grade, remove excess, grindings, and compact in place.

Shoulder Backing (SB)

SB-1-a Shoulder Backing
Measurement and payment for this item shall be on a per square foot (SF) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary to spread to grade, remove excess, grindings, and compact in place.

Adjustments to Grade

MW-1-a Remove, Replace, and Adjust Monument Well to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to grade of monument well, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing monument well prior to construction, and installing a monument well at final grade after grading and/or paving operations.

WV-1-a Remove, Replace, and Adjust Water Valve Box to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to grade of water valve boxes, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal and

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disposing of the existing water valve box prior to construction, and installing a new water valve box at final grade after grading and/or paving operations. This item also includes protecting valve risers during construction, and shortening or extending valve risers as appropriate.

SC-1-a Remove, Replace, and Adjust Sewer Cleanout Box to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer cleanout, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal and disposal of the sewer cleanout box prior to construction, and installing a sewer cleanout box at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending piping as appropriate.

SS-1-a Remove, Replace, and Adjust Sanitary Sewer Manhole to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer manhole, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing sewer manhole frame and cover to construction, and installing a sewer manhole frame and cover at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending rings as appropriate.

S-1-a Remove, Replace, and Adjust Sewer Manhole to Grade Measurement and payment for this item shall be on a per each (EA) basis. The work shall include, but not be limited to, furnishing all labor, materials, tools, equipment, and incidentals necessary for removal, disposal, replacement, installation, and adjustment to sewer manhole, complete in place, in accordance with the plans and specifications, and as directed by the Engineer. This work also includes removal of the existing sewer manhole frame and cover to construction, and installing a sewer manhole frame and cover at final grade after grading and/or paving operations. This item also includes protecting risers during construction, and shortening or extending rings as appropriate.

Traffic Control (TC)
Payment for standard traffic control as needed shall be included in various unit prices of the project. Standard traffic control for any single project shall include up to the following:

8 Vinyl Signs (of appropriate type for the given project) with Stands 100 24” Traffic Cones with Reflective Bands
50 Class 1 Barricades
50 Class 1 Barricades with flashers
4 Class 3 Barricades
50 Delineators with Reflective Bands

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-- Paper Traffic Signage as Needed

All other traffic control shall be paid per Section 9-1.03, “Force Account”, of the Standard Specifications except those for which there is a specific bid item.

TC-1-a Changeable Message Sign
Payment for Changeable Message Sign, when required by the Engineer, shall be paid per day (Day). This item includes material, labor, equipment, and other cost associated to furnish, place, operate and maintain changeable message boards as required.

TC-2-a Flag person
Payment for Flag person, when required by the Engineer, shall be paid per hour (Hr).

This item includes 50% of the cost for labor, equipment and other cost associated to furnish competent flag person(s) during construction operations.

PL-1-a Premium Labor
Payment for Premium Labor on City projects shall be paid as an adjustment factor percentage (AF%) to the Total Base Bid. This item includes all costs associated with premium labor. Premium labor is defined as labor required by the City to be performed outside approved weekday (M-F) construction hours. Approved construction hours are limited to 7:00 am to 7:00 pm Monday through Friday, 8:00 am to 6:00 pm Saturday and 10:00 am to 5:00 pm Sunday. Contractors wishing to perform labor outside approved construction hours may do so at the written authorization of the City but may not apply the premium labor adjustment factor percentage (AF%) to such work.

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EXHIBIT “B”

PAYMENT

I. Progress Authorization

This contract is subject to the requirements of Page G-9 of the Purchasing Guidelines for the City of Santa Maria.

Individual task order will be created under this Master Agreement for the completion of each task.

The aggregate not-to-exceed fee for all tasks provided during the initial one-year term of the Agreement shall be $4,000,000.00.

II. Invoice procedure.

A. Payment shall be at the conclusion of the Project based on the billable charges.

B. The Contractor shall present the bill for charges by the second day of the month.

C. The Contractor’s bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts

Under no circumstance shall the total of all payments to the Contractor exceed ninety percent (90%) of the maximum not-to-exceed cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A".

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Item No. Quantity
Increment Unit Description

Unit Price

SAWCUTTING (S)
S-1-a N/A LF Sawcut (3" Thick Base Bid) $ 5.00
S-1-b N/A LF Sawcut (1" Thick Increment, greater than 3") $ 2.00

DEMOLITION (D)
D-1-a 1 - 5,000 SF HMA Demolition and Disposal (3” Thick Maximum) $ 5.00 D-1-b 5,001 + 10,000 SF HMA Demolition and Disposal (3” Thick Maximum) $ 5.00 D-1-c 10,001 + SF HMA Demolition and Disposal (3” Thick Maximum) $ 5.00 D-1-d N/A SF HMA Demolition and Disposal (1” Thick Increment greater than 3”) $ 2.00

AGGREGATE BASE (AB)
AB-1-a 1 - 5,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 6.00 AB-1-b 5,001 - 10,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 6.00 AB-1-c 10,001 - 50,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 6.00 AB-1-d 50,001 - 100,000 SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 6.00 AB-1-e 100,001 + SF Furnish, Place, and Compact Class II Aggregate Base (4" Thick Base Bid) $ 6.00 AB-1-f N/A SF Furnish, Place, and Compact Class II Aggregate Base (1" Thick Increment, greater than 4”) $ 1.00

TAPER GRIND (TG)
TG-1-a 1 - 50,000 SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 3.00 TG-1-b 50,001 - 100,000 SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 3.00 TG-1-c 100,001 + SF Demolition and Disposal by Taper Grinding (3" Thick, 20’ wide Base Bid) $ 3.00 TG-1-d N/A SF Demolition and Disposal by Taper Grinding (1" Thick Increment greater than 3", 20’ wide Base Bid) $ 1.00

GRINDING (G)
G-1-a 1 - 50,000 SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 3.00 G-2-b 50,001 - 100,000 SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 3.00 G-3-c 100,001 + SF Demolition and Disposal by Grinding (3" Thick Maximum) $ 3.00 G-3-d N/A SF Demolition and Disposal by Grinding (1" Thick Increment, greater than 3") $ 1.00

LEVELING COURSE (LC)
LC-1-a 1 - 50,000 SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $2.00 LC-1-b 50,001 - 100,000 SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $2.00 LC-1-c 100,001 + SF Leveling Course (1" Hot Mix Asphalt Paving, Type 1/2" agg.) $2.00

PAVEMENT REINFORCEMENT
PG-1-a 10,001 + SF Paving Grid (Class II, with 1” Openings) $ 3.00 PF-1-a 10,001 + SF Paving Fabric $ 1.00

PRODUCTION PAVING (PP)
PP-1-a 1 - 50,000 SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 7.00 PP-1-b 50,001 - 100,000 SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 7.00 PP-1-c 100,001 + SF Furnish, Place, and Compact Hot Mix Asphalt (3” Thick Base Bid) $ 7.00

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PP-1-d N/A SF Furnish, Place and Compact Hot Mix Asphalt (1" Thick Increment, greater than 3") $ 3.00

DIG OUT (DO)
DO-1-a 1 - 50,000 SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 25.00
DO-1-b 50,001 - 100,000 SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 25.00
DO-1-c 100,001 + SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (6” Thick Base Bid) $ 25.00
DO-1-d N/A SF Demolition and Disposal by Grinding, Furnish, Place and Compact Hot Mix Asphalt (3” Thick Increment, greater than 6”) $ 15.00

GRIND IN PLACE
GiP-1-a 1 - 50,000 SF Grind In Place (6” Thick Base Bid) $ 3.00 GiP-1-b 50,001 - 100,000 SF Grind In Place (6” Thick Base Bid) $ 2.50 GiP-1-c 100,001 + SF Grind In Place (6” Thick Base Bid) $ 2.50 GiP-1-d N/A SF Grind In Place (1” Thick Increment, greater than 6”) $ 2.00

SHOULDER BACKING
SB-1-a 1 - 50,000 SF Shoulder Backing (3’ wide) $ 3.00

ADJUSTMENTS TO GRADE
MW-1-a 1-50 EA Remove, Replace, and Adjust Monument Well to Grade $ 1,500.00 WV-1-a 1-50 EA Remove, Replace, and Adjust Water Valve Box to Grade $ 1,500.00 CO-1-a 1-50 EA Remove, Replace, and Adjust Sewer Cleanout Box to Grade $ 1,500.00 SS-1-a 1-50 EA Remove, Replace, and Adjust Sanitary Sewer (SS) Frame and Grate to Grade $2,100.00 SD-1-a 1-50 EA Remove, Replace, and Adjust, Storm Drain (SD) Frame and Grate to Grade $ 2,100.00

TRAFFIC CONTROL (TC)
TC-1-a N/A Day Changeable Message Sign $ 500.00
TC-2-a N/A Hr Flag person $ 125.00

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EXHIBIT “C”

INSURANCE

INSURANCE REQUIREMENTS

Provider shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Provider, his/her agents, representatives, or employees. If the Provider maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Provider.

A. Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Provider has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Errors and Omissions liability insurance appropriate to the Provider's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

5. Cyber Liability Insurance, Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infrin gement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance

Provider shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

Atty. Rev. 2021

2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: Statutory limits.

4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. Self-insured Retentions

Self-insured retentions must be declared to and approved by the City. The City may require the Provider to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.

D. Other Insurance Provisions

The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Provider including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Provider’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, the Provider's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, empl oyees and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Provider's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested.

4. Provider hereby grants to City a waiver of any right to subrogation which any insurer of said Provider may acquire against the City by virtue of the payment of any loss under such insurance. Provider agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims-made coverage:

Atty. Rev. 2021

a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. If coverage is canceled or non -renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Provider must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

E. Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage

Provider shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Provider’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances

The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $4,000,000 FOR MUNICIPAL IMPROVEMENTS JOB-ORDER PAVEMENT REPAIRS TO V. LOPEZ JR. & SONS, INC.

WHEREAS, the City maintains approximately 53,000,000 square feet of pavement throughout the City, and needs additional resources to make repairs to existing street segments and emergency repairs; and

WHEREAS, on April 11, 2023, the City issued a Formal Bid for Job-Order Pavement Repairs for pavement repairs within the City and notified firms that specialize in this work, including those firms who had expressed interest, as well as those who had previously completed work for the City; and

WHEREAS, on May 20, 2023, the City received three (3) proposals from firms that perform this work; and

WHEREAS, staff reviewed the bids received and determined that V. Lopez Jr. & Sons, Inc., satisfied the requirements and was deemed a qualified firm to provide the needed on-call Job-Order Pavement Repair services; and

WHEREAS, the firm will provide services on an on -call, as-needed, and project- specific basis as defined by the City. All task orders will have a defined scope, schedule, and fee arrangement that will be negotiated based on the unit rate schedule included in the agreement; and,

WHEREAS, the City of Santa Maria determined that the proposed action is not a project as define d by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. That a Professional Services Agreement for on-call Job-Order Pavement Repair services is awarded to V. Lopez Jr. & Sons, Inc., for a term of two years with an annual fee not to exceed $4,000,000, annually; and

2. That the City Manager, or designee, is authorized to execute the Professional Services Agreement upon receipt of information required.

2 3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $4,000,000 FOR MUNICIPAL

IMPROVEMENTS JOB-ORDER PAVEMENT REPAIRS TO MAIN LINE
ENGINEERING CONSTRUCTION, INC.

WHEREAS, the City maintains approximately 53,000,000 square feet of pavement throughout the City, and needs additional resources to make repairs to existing street segments and emergency repairs; and

WHEREAS, on April 11, 2023, the City issued a Formal Bid for Job-Order Pavement Repairs for pavement repairs within the City and notified firms that specialize in this work, including those firms who had expressed interest, as well as those who had previously completed work for the City; and

WHEREAS, on May 20, 2023, the City received three (3) proposals from firms that perform this work; and

WHEREAS, staff reviewed the bids received and determined that Main Line Engineering Construction, Inc., satisfied the requirements and was deemed a qualified firm to provide the needed on-call Job-Order Pavement Repair services; and

WHEREAS, the firm will provide services on an on -call, as-needed, and project- specific basis as defined by the City. All task orders will have a defined scope, schedule, and fee arrangement that will be negotiated based on the unit rate schedule included in the agreement; and,

WHEREAS, the City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. That a Professional Services Agreement for on-call Job Order Pavement Repair services is awarded to Main Line Engineering Construction, Inc., for a term of two years with an annual fee not to exceed $4,000,000, annually; and

2 2. That the City Manager, or designee, is authorized to execute the Professional Services Agreement upon receipt of information required.

3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $4,000,000 FOR MUNICIPAL IMPROVEMENTS JOB-ORDER PAVEMENT REPAIRS TO R. BURKE CORPORATION

WHEREAS, the City maintains approximately 53,000,000 square feet of pavement throughout the City and needs additional resources to make repairs to existing street segments and emergency repairs; and

WHEREAS, on April 11, 2023, the City issued a Formal Bid for Job-Order Pavement Repairs for pavement repairs within the City and notified firms that specialize in this work, including those firms who had expressed interest, as well as those who had previously completed work for the City; and

WHEREAS, on May 20, 2023, the City received three (3) proposals from firms that perform this work; and

WHEREAS, staff reviewed the bids received and determined that R. Burke Corporation satisfied the requirements and was deemed a qualified firm to provide the needed on-call Job-Order Pavement Repair services; and

WHEREAS, the firm will provide services on an on -call, as-needed, and project- specific basis as defined by the City. All task orders will have a defined scope, schedule, and fee arrangement that will be negotiated based on the unit rate schedule included in the agreement; and,

WHEREAS, the City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. That a Professional Services Agreement for on-call Job-Order Pavement Repair services is awarded to R. Burke Corporation for a term of two years with an annual fee not to exceed $4,000,000, annually; and

2. That the City Manager, or designee, is authorized to execute the Professional Services Agreement upon receipt of information required.

2 3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

FOR THE COUNCIL MEETING OF JUNE 20, 2023

COUNCIL AGENDA REPORT

TO: City Council

FROM: City Manager
Prepared by: Director of Recreation & Parks

SUBJECT: Adoption of Engineer’s Reports and Intent to Levy and Collect the 2023 – 2024 Landscape Assessments

Description:

The City Council will consider the annual Engineer’s Reports for the City’s Landscape Maintenance Districts and special benefit zones, and setting the public hearing to consider the annual Districts’ assessments.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATIONS:

1. Adopt a Resolution approving the Engineer’s Reports for the 2023-24 Landscape Maintenance Districts and Special Benefit Zones assessment proceedings.

2. Adopt a Resolution declaring the intent to levy and collect the landscape maintenance assessments for Fiscal Year 2023-24, and setting a Public Hearing for July 18, 2023, to consider the proposed assessments for the Landscape Maintenance Districts and 19 Special Benefit Zones.

BACKGROUND:

During the 1980s, the City of Santa Maria established four geograp hic Landscape Maintenance Districts with Broadway and Stowell serving as the center point. The four “Master Districts” consist of the following: South Miller Street/South College Drive Landscape Maintenance District created by Resolution 81 -298 on August 4 , 1981; Northwest Landscape Maintenance District by Resolution 88-154 on December 20, 1988; Northeast Landscape Maintenance District by Resolution 89 -51 on May 2, 1989; and Southwest Landscape Maintenance District by Resolution 89 -50 on May 2, 1989. The creation of these districts enabled the City of Santa Maria to levy and collect assessments for the purposes of maintaining the public landscaping and parks, and for nuisance abatement within each district.

Within the “Master Districts,” there are currentl y 19 Special Benefit Zones (SBZ). Each SBZ was created at the time when a new development was built, to provide for the perpetual maintenance of additional public improvements associated with the

2 development of each project. These public improvements include retention basins, parks, sidewalks, graffiti abatement, pest abatement, street trees, and all public thoroughfare landscaping. The cost for maintaining the public improvements varies, based on the type and extent of public improvements in each subdivision. This cost is distributed among all assessed properties within the specific SBZ and collected annually through property taxes.

Under the Landscaping and Lighting Act of 1972 (“the Act”), the City is authorized to provide and maintain landscaping, publ ic lighting, appurtenant facilities, and park and recreational improvements. By following the procedures set out in the Act, as well as Proposition 218 and its implementing legislation, the City can assess property owners for the special benefit received from installing and maintaining these improvements.

The process of assessing property for improvements under the Act has several steps. A typical first step is annexing property into a particular part of the City’s system under the Act and setting the assessment for the first fiscal year. This is accomplished through the consent of the current property owner(s) and action of the City Council pursuant to an Engineer’s Report. The Engineer’s Report correctly apportions the costs of specific property according to the special benefit received. If properties receive additional benefits, they are placed into a “zone” that receives a particularized assessment amount accordingly for the additional special benefit received.

Assessment law, in particular Proposition 218, allows only the special benefit received by properties to be assessed. General benefits received by the public are not recoverable using assessments. The Engineer’s Report s apportion or spread the special benefit amounts to the properties to be assessed.

DISCUSSION:

In the fall of 2020, the City entered into an agreement with a financial consultant to update the Engineer’s Report format, detailed information, and exhibits. Now with the modernized report, City Public Works and Recreation and Parks sta ff have taken on the task of preparing the report. The recommended City Council actions are 1) adopting a Resolution approving the Engineer’s Reports for assessment proceedings; and 2) declaring the intent to levy and collect the property tax assessments f or each of the four Landscape Maintenance Districts and the SBZs, and setting a public hearing for July 18, 2023, to consider the proposed landscape assessments for approval.

City staff has determined that the annual Consumer Price Index CPI rose by 4.9 percent in calendar year 2022, requiring that the 2023 district and SBZ assessments be increased by 4.9 percent to keep pace with increased costs.

Effective July 1, 2023, the City’s contractor, J.D. Humann Company, has will increased its fees by 3 percent due to the CPI. These increasing costs continue to impact the ability for of the current assessment level to meet the cost of operations.

3 The proposed assessments are intended to provide adequate funding for district operations over the next fiscal year and are consistent with past City Council actions.

The action before the City Council not only authorizes the levying and collection of the property tax assessment for the Landscape Maintenance Districts and the SBZs, but also authorizes the transfer of funds out from the appropriated reserves in order to finance operational costs (unanticipated expenses or project overages) in the districts during the next fiscal year.

Alternative(s)
The City Council has the option to not approve the Engineer’s Reports.

Fiscal Considerations
The Engineer’s Reports (Attachments A-D) present the specific financing related to each of the Landscape Maintenance District Assessments for the “Master Districts” and the SBZs. To summarize, the Landscape Maintenance Districts and the SBZs generate approximately $5.1 million in reve nue to fund direct maintenance services and district operation costs. This revenue is collected from approximately 10,070 residential and 675 commercial properties located within a district.

Impact to the Community
Landscaping along the City’s major arterials and surrounding residential and commercial developments in the City is a positive indication of the fine quality of life in Santa Maria and its aesthetic appeal. Accordingly, the City’s landscaping provides for the community’s enjoyment, neighborhood cohesiveness, and beauty. The assessments herein provide for perpetual care of these public areas and safeguard the assets of surrounding property owners.

During FY 2022 -23, the Landscape Maintenance District staff faced major challenges primarily related to the ongoing drought and the States requirement to abandon all non - sports turf such as grassy parkways. Staff efforts and expenses were focused on materials, planning, managing, and funding turf conversion to low-water use landscaping.

Attachment A: Engineer’s Report-Northwest
Attachment B: Engineer’s Report-Northeast
Attachment C: Engineer’s Report-South Miller Street/South College Drive Attachment D: Engineer’s Report-Southwest
Attachment E: Affected Properties by the Proposed Assessments Attachment F: Boundary Map of Assessment Districts

*U. S. Department of Labor, Bureau of Labor Statistics for Urban Los Angeles-Long Beach-Anaheim, CA areas – includes Santa Maria.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA, CALIFORNIA, APPROVING THE ENGINEER’S REPORTS FOR THE 2023-24

LANDSCAPE MAINTENANCE DISTRICTS AND SPECIAL BENEFIT ZONES

ASSESSMENT PROCEEDINGS

WHEREAS, the City Council of the City of Santa Maria, California, pursuant to the provisions of the Landscaping and Lighting Act of 1972 (Section 22500, et seq. of the Streets and Highways Code) initiated proceedings and ordered the preparation of an Engineer’s R eport for the assessment of certain property annexed to the Northeast, Northwest, Southwest, and South Miller Street/South College Drive Landscape Maintenance Districts, and the associated Special Benefit Zones; and

WHEREAS, the Engineer’s Reports were prepared as directed by the City Council; and

WHEREAS, the City Council has reviewed the Engineer’s Reports as presented and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the assessments, on a preliminary basis, are in accordance with the benefits received for the work to be performed; and

WHEREAS, the City Council accepts these assessments as the basis on which to provide service to the Northeast, Northwest, Southwest, and South Miller Street/South College Drive Landscape Maintenance Districts, and the 19 Special Benefit Zones.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. That the above recitals are true and correct.

2. That the Engineer’s Reports, as presented, are hereby approved on a preliminary basis, and are ordered to be filed in the Office of the City Clerk of the City of Santa Maria as a permanent record and to remain open to public inspection.

3. That the necessary adjustments reflected in the Engineer’s Reports shall be made to the City of Santa Maria 20 23-24 Budget Allocations for each Landscape Maintenance District and Special Bene fit Zone, and that the City Manager, or designee, is authorized to make the necessary inter-fund transfers to landscape maintenance district operational budgets.

4. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address cler ical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

2 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

Atty. Rev. 2020

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,

CALIFORNIA DECLARING THE INTENT TO LEVY AND COLLECT THE LANDSCAPE MAINTENANCE ASSESSMENTS FOR FISCAL YEAR 2023-24, AND SETTING A PUBLIC HEARING FOR JULY 18, 2023, TO CONSIDER THE

PROPOSED ASSESSMENTS FOR THE LANDSCAPE MAINTENANCE DISTRICTS AND 19 SPECIAL BENEFIT ZONES

WHEREAS, the City Council proposes to initiate proceedings for the assessment of property annexed to the Northeast, Northwest, Sou thwest, and South Miller Street/South College Drive Landscape Maintenance Districts and the 19 Special Benefit Zones (“Districts”), pursuant to the terms and provisions of the Landscaping and Lighting Act of 1972 (Section 22500, et seq. of the Streets and Highways Code); and

WHEREAS, by the terms of Resolution Nos. 1994-96, 1994 -97, 1994 -98, and 1994-99, dated June 7, 1994, the City Council previously adopted a formula for annual adjustment of assessments based on the Consumer Price Index Figures of the U.S.

Department of Labor, Bureau of Labor Statistics for Urban Los Angeles -Long Beach - Anaheim, CA areas.1

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. That the above recitals are true.

2. That it is the intention of this legislative body to levy and collect assessments for Fiscal Year 20 23-24 to fund the costs and expenses for the maintenance of retention basins, parks, sidewalks and public thoroughfare landscaping, street trees, graffiti abatement, pest abatement, and all other public landscaping.

3. The City Manager, or designee, is authorized and directed to receive and appropriate assessments as reported in the Engineer’s Reports on Attachments A-D of the Council Agenda Report and are incorporated herein by reference; and are hereby authorized and directed to reallocate said appropriations and estimated revenues to reflect the final assessments as determined by the County of Santa Barbara.

4. The City Manager, or designee, is hereby authorized to approve the transfer of funds from appropriated reserve accounts for the purpose of covering operational costs when needed.

5. That the assessment districts affected by this Resolution of Intention are distinctively designated as follows: Northeast, Northwest , South Miller

1 U. S. Department of Labor, Bureau of Labor Statistics for Urban Los Angeles-Long Beach-Anaheim, CA areas – includes Santa Maria.

2 Street/South College Drive, and Southwest Landscape Maintenance Districts, and the 19 Special Benefit Zones , which are described in Attachment “E” and shown on the map as Attachment “F” of the Council Agenda Report and are incorporated herein by reference.

6. That said work will provide a special and direct benefit to the properties as described in the Engineer’s Reports previously approved by the City Council.

7. That notice is hereby given that a public hearing on t he questions of the proposed assessments is hereby scheduled at 5:30 p.m. in the City Council Chambers which is located at 110 East Cook Street in Santa Maria, California, on Tuesday, July 18, 2023.

8. That direction is also given to provide notice of the public hearing pursuant to Streets and Highways Code Sections 22552 and 22553.

9. That the Engineer’s Reports pertaining to the proposed proceedings are on file with the Chief Deputy City Clerk and should be referred to for a full and detailed description of the improvements, Landscape Maintenance District Boundaries, any Special Benefit Z ones therein, and the proposed assessments upon assessable lots and parcels of land within the Districts.

10. The Chief Deputy City Clerk is hereby authorized to make minor chang es herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 20th day of June 2023.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

Annual Engineer's Report
Fiscal Year 2023/2024
Northwest Landscape Maintenance Assessment District No. DS-9 Incorporating Special Benefit Zones:
• Cherry Blossom
• North Preisker Ranch
Intent Meeting: June 20, 2023
Public Hearing: July 18, 2023
City of Santa Maria
110 E. Cook Street
Santa Maria, CA 93454
Prepared by: Neville Smeda, Business Program Leader

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Table of Contents
INTRODUCTION ............................................................................................................. - 4 - Report Content and Annual Proceedings ................................................................... - 4 - PART I – PLANS AND SPECIFICATIONS ........................................................................... - 8 - Zones of Benefit ......................................................................................................... - 9 - Part II – Method of Apportionment ............................................................................ - 11 - Benefit Analysis ........................................................................................................ - 12 - Assessment Methodology ........................................................................................ - 14 - Part III – Estimate of Costs .......................................................................................... - 16 - Annual Inflationary Adjustment (Assessment Range Formula) ............................... - 18 - Part IV – District/Zone Diagrams................................................................................. - 19 - District Boundary Diagram ....................................................................................... - 20 - District Improvement Diagram (Northern Section) ................................................. - 21 - District Improvement Diagram (Southern Section) ................................................. - 22 - Cherry Blossom Special Benefit Zone ....................................................................... - 23 - North Preisker Ranch Special Benefit Zone ............................................................. - 24 - Part V - Assessment Rolls ............................................................................................ - 25 -

- 4 -

INTRODUCTION

The City of Santa Maria (“City”), under the provisions of the Landscaping and Ligh�ng Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (“1972 Act”) and in accordance with the provisions of the California State Cons�tu�on, Ar�cle XIIID (“California Cons�tu�on”) annually levies and collects special assessments for the City’s maintenance assessment district designated as Northwest Landscape Maintenance Assessment District No. DS-9 (herea�er referred to as “District”) to fund in whole or in part the maintenance and opera�on of landscaping improvements that provide special benefits to proper�es within the District.

The City Council on December 20 , 198 8, established the forma�on of the Northwest Landscape Maintenance District No. DS-9 for the purpose of financing the con�nued maintenance of the landscaping within the northwest quadrant of the City.

In accordance with the 1972 Act, the District also u�lizes special benefit zones (“Zones”) to address varia�ons in the nature, loca�on, and extent of the improvements that provide special benefits to specific parcels and developments within the District. Within the boundaries of the District, some parcels may be assigned to a special benefit zone, each of which is associated with specific improvements th at provide special benefit to proper�es within that Zone that are in addi�on to the improvements propor�onally shared by proper�es throughout the District.

For Fiscal Year 2023/2024 in addi�on to the shared District improvements and assessments, parcels within the following Zones may be assessed for local improvements specific to the parcels and developments within each respec�ve Zone:
• Cherry Blossom Special Benefit Zone,
• North Preisker Ranch Special Benefit Zone,

Report Content and Annual Proceedings
This Engineer’s Annual Report (the “Report”) has been prepared pursuant to Chapter 1, Ar�cle 4 and Chapter 3 of the 1972 Act, and presented to the City Council for their considera�on and approval of the proposed improvements and services to be provided within the District and the levy and collec�on of annual assessments related thereto for Fiscal Year 2023/2024. This Report outlines the District improvements, the special benefit zones, the method of appor�onment, and proposed assessments to be levied in connec�on with the special benefits the proper�es will receive from the maintenance and servicing of the District improvements for Fiscal Year 2023/2024. The annual assessments to be levied on proper�es within the District provide a source of funding to fund in whole or in part, the con�nued opera�on and maintenance of the landscaping improvements and services to be provided by the District for the proper�es within the District and specified Zones for which the proper�es receive special benefits.

Each fiscal year, the City establishes the District’s assessments based on an es�mate of the costs to maintain, operate and service the authorized District improvements and based upon available revenues

- 5 -
including assessment revenues, fund balances, general benefit contribu�ons and any addi�onal City contribu�ons from available sources. The costs of the improvements and the proposed annual assessments budgeted and assessed against proper�es within the District may include, but are not limited to the es�mated expenditures for regular annual maintenance and repairs; incidental expenditures related to the opera�on and administra�on of the District; deficits or surpluses from prior years; revenues from other sources; and the collec�on of funds for opera�onal reserves and/or periodic repairs, replacements and rehabilita�on projects as authorized by the 1972 Act. The net annual cost to provide the improvements within the District plus each benefit Zone (if applicable) are allocated to the benefi�ng proper�es within the District and respec�ve Zones as applicable, using a weighted method of appor�onment (refer to Assessment Methodology in Sec�on II, Method of Appor�onment) that calculates the propor�onal special benefit and assessment for each parcel as compared to other proper�es that benefit from the District improvements and services. Thus, each parcel is assessed propor�onately for only those improvements, services, and expenses for which the parcel will receive special benefit.

The word “parcel, ” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the Santa Barbara County Assessor’s Office. The Santa Barbara County Auditor/Controller uses Assessor’s Parcel Numbers and specific Fun d Numbers to iden�fy proper�es to be assessed on the tax roll for the District assessments.

At a no�ced annual Public Hearing, the City Council will accept all public comments and writen protests regarding the District and the annual levy of assessment s. Based on those public comments and writen protests, the City Council may order amendments to the Report or confirm the Report as submited.

Following final approval of the Report and confirma�on of the assessments, the City Council will by Resolu�on, order the improvements to be made and confirm the levy and collec�on of assessments for Fiscal Year 2023/2024 pursuant to the 1972 Act. The assessments as approved will be submited to the Santa Barbara County Auditor/Controller to be included on the property tax roll for each parcel.

A s r e q u i r e d b y t h e 1 9 7 2 A c t , t h i s E n g i n e e r ’ s R e p o r t d e s c r i b e s t h e i m p r o v e m e n t s t o b e p r o v i d e d , maintained, and serviced by the District, an es�mated budget for the District improvements, and the proposed assessments to be l evied upon each assessable lot or parcel within the District for fiscal year 2023/2024.

Part I – Plans and Specifica�ons: This sec�on contains a general descrip�on of the District, special benefit zones (“Zones”), and the improvements and services that provide special benefits to the parcels within the District. The improvements, appurtenant facili�es, and services that provide special benefits to the proper�es within the District and for which parcels are assessed may include, but not limited to the installa�on and maintenance of landscaping improvements within the public right-of-way of streets within the District, reten�on basins, parks, public facili�es and related ameni�es as well as associated opera�onal and incidental expenses, and the collec�on of fund balances authorized by the 1972 Act. The plans and specifica�ons contained in this Report generally describe the nature and extent of the improvements. In conjunc�on with these general descrip�ons, a visual depic�on of the improvements may be provided in the District Diagrams contained in Part IV of this Report. More detailed informa�on regarding the specific

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plans and specifica�ons associated with the District improvements and Zone improvements are on file in the City Engineer’s Office and by reference are made part of this Report.

Part II – Method of Appor�onment: This sec�on includes a discussion of the special and general benefits associated with the improvements to be provided within the District (Benefit Analysis). This sec�on of the Report also outlines the basis upon which the es�mated costs to provide such improvements has been appor�oned to each parcel of land therein in propor�on to the special benefits to be received. (the method of calcula�ng each property’s propor�onal special benefit assessment). This method of appor�onment is consistent with the previously approved and adopted method of appor�onment for the District.

Part III – Es�mate of Costs : Iden�fies the es�mated annual funding costs (Budgets) required for the maintenance and opera�on of the improvements in the District and Zones authorized by the 1972 Act and deemed appropriate to support the improvements, including, but not limited to, annual maintenance and service expenses, u�lity costs, and related incidental expenses. For fiscal year 2023/2024 annual contract maintenance costs have increased by three percent (3%). Those improvements and/or costs determined to be of general benefit shall be funded by a City contribu�on. In addi�on to the general benefit costs, the City may provide addi�onal funding to support the maintenance and opera�on of the improvements considered to be of special benefit, but City staff shall make the determina� on of which improvements, and the extent of the services and ac�vi�es that shall be provided based on available revenues.

This sec�on also iden�fies and outlines an Assessment Range Formula (infla�onary adjust) previously approved and adopted for the District assessments that provides for an annual adjustment to the maximum assessment rates, which establishes limits on future assessments, but also provides for reasonable cost adjustments due to infla�on.

Part IV – District/Zone Diagrams: This sec�on of the Report contains a series of diagrams showing the boundaries of the District and Zones for Fiscal Year 2023/2024 which incorporate the parcels determined to receive special benefits from the District improvements. These diagrams may also provide a visual depic�on of the loca�on of the improvements being maintained. The lines and dimensions of each lot, parcel, and subdivision of land contained in the District and Zone diagrams are inclusive of the parcels listed in “Part V - Assessment Roll” of t his Report and the corresponding County Assessor’s Parcel Maps for said parcels as they existed at the �me this Report was prepared and shall incorporate all subsequent subdivisions, lot -line adjustments, or parcel changes therein. Reference is hereby mad e t o t h e S a n t a Barbara County Assessor’s maps for a detailed descrip�on of the lines and dimensions of each lot and parcel of land within the District and Zones.

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Part V – Assessment Roll: The assessment amounts to be levied and collected in fiscal year 2023/2024 for each parcel is based on the parcel’s calculated propor�onal special benefit as outlined in "Part II - Method of Appor�onment" and the annual assessment rates established by the es�mated budgets in "Part III - Es�mate of Costs" of this Report. Due to the number of parcels within the District, the Assessment Roll for fiscal year 2023/2024 has been filed electronically with the City Clerk rather than displayed in this Report and by reference the lis�ng of the Assessor’s Parcel Numbers and the corresponding assessment amounts are made part of this Report.

Note: If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this Engineer’s Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Engineer’s Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional.

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PART I – PLANS AND SPECIFICATIONS

The purpose of this District is to provide in part through annual assessments, funding for the installa�on, opera�on, and maintenance of landscaping improvements in specified parkways, medians, and roundabouts in the public right-of-way including street trees, and landscaping within specified public areas and public facili�es including storm water reten�on basins that control subdivision water runoff, parks, and easements.

As authorized by the 1972 Act, the improvements provided by the District and associated with each Zone therein may incorporate various local landscaping improvements and related ameni�es that were either installed in direct connec�on with the development of proper�es within the District and each respec�ve Zone or were installed for the benefit of those proper�es resul�ng from property development or poten�al development of those proper�es and are considered necessary elements for the development of such proper�es to their full and best use and these improvements are maintained and serviced for the special benefit of real property within the District and/or Zones. The work to be performed within the District and each respec�ve Zone may include but is not limited to (as applicable), the personnel, materials, equipment, electricity, water, contract services, repair and rehabilita�on of the improvements and incidental expenses required to operate the District and provide the improvements and services.

Improvements provided within the District and/or Zone may include but are not limited to landscaping and related facili�es and ameni�es located within designated street medians, parkway and streetscape side-panels, and entryways within the public right of ways or easements adjacent to public right of ways; and within public places including greenbelt areas, open space s, and local parks within each respec�ve Zone. These improvements may include, but are not limited to:
• various landscape materials such as trees, turf, shrubs, vines, ground cover, annual or perineal plan�ngs;
• irriga�on and drainage systems;
• structural ameni�es such as monuments, specialty or ornamental ligh�ng, block walls, retaining walls, or other fencing associated with the landscape areas; • hardscapes including mulch, decomposed granite surfaces, stamped concrete, and pavers; • recrea�onal ameni�es within parks or greenbelts that may include benches, play structures, picnic or other recrea�onal facili�es, signage, and related appurtenances.

The maintenance of these improvements may include, but is not limited to the regularly scheduled mowing, trimming, pruning, fer�liza�on, pest control, weed and graffi� abatement; installa�on, removal, replacement and rehabilita�on of the landscaping, repair or replacement of irriga�on or landscape drainage systems; and repair or replacement of hardscape improvements including sidewalks and recrea�onal ameni�es. The Recrea�on and Parks Office shall authorize and schedule such maintenance and servicing as needed and based on available District and/or Zone funding.

Reference is made to the plans and specifica�ons currently on file at the City Engineer's Office rela�ng to the design, recommended materials, and level of maintenance concerning the facili�es to be maintained.