Agenda — Santa Maria City Council, October 21, 2025 (part 3 of 4)

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA
DECLARING A 2012 TORO GM3280-D SMALL RIDE-ON MOWER,
ASSET ID #BA-0003052 (F438-12)
(SERIAL NUMBER 312000153), AS SURPLUS PROPERTY

AND APPROVING ITS DONATION TO THE

ORCUTT YOUTH SOFTBALL ASSOCIATION
WHEREAS, The City of Santa Maria Fleet Services Division has determined a 2012 Toro GM3280-D Small Ride-On Mower to be surplus property; and WHEREAS, the donation of the 2012 Toro GM3280-D Small Ride-On Mower will allow the Orcutt Youth Softball Association to maintain youth league fields within the City; and
WHEREAS, the Orcutt Youth Softball Association and community would benefit from the use of such equipment.

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

SECTION 1. One 2012 Toro GM3280-D Small Ride-On Mower is hereby declared as surplus property and said surplus property is authorized to be donated to the Orcutt Youth Softball Association for use in the community; and SECTION 2. 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.

Attachment A

Page 2 of 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 21st day of October 2025.

ATTEST:

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Authorizing a Lease Agreement with Central Coast Community Energy for Installation of Electric Vehicle Charging Stations at 418 South McClelland Street
Description:

The City Council will consider adopting a Resolution authorizing a lease agreement with Central Coast Community Energy for the installation of electric vehicle charging stations at 418 South McClelland Street.

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:

1. Adopt a Resolution authorizing a lease agreement with Central Coast Community Energy for the installation of electric vehicle charging stations at 418 South McClelland Street with the condition that the charging stations provide free, unrestricted public access twenty-four hours per day, seven days per week, yearround; and

2. Authorizing the City Manager, or designee, to execute agreement.

BACKGROUND:

The City of Santa Maria and Central Coast Community Energy (3CE) are collaborating on a pilot program to expand public EV charging infrastructure within the City. Under the proposed lease agreement, 3CE would install, own, and operate 9-port EV charging stations at no cost in designated City-owned street parking spaces at 418 South McClelland Street.

In 2017 local communities established 3CE to source clean and renewable electricity for customers throughout Monterey, San Benito, San Luis Obispo, Santa Cruz, and Santa Barbara counties. 3CE is locally controlled and governed by board members who represent each community served by the agency.
2 With no investors or shareholders, revenue generated by 3CE stays local. It helps keep electricity rates fair for all customers while also funding innovative energy programs designed to lower greenhouse gas emissions and stimulate community investment.

DISCUSSION:

The proposed lease agreement has a ten-year term with no rental fee, and 3CE is solely responsible for installation, operation, and maintenance of the charging stations. Council should note that while the stations provide a public benefit, the City retains the current obligations for general street and parking lot maintenance and compliance with local parking laws. Additionally, 3CE will be responsible for installation of appropriate signage at the EV charging stations located at 418 South McClelland Street, listing hours of operation for community usage.

Alternative(s)
City Council may choose not to enter into the lease agreement with Central Coast Community Energy for the installation of EV charging stations.

Fiscal Considerations
There is no direct cost to the City for the installation or operation of the EV charging stations. 3CE will cover all costs associated with construction, installation of signage, utilities, maintenance, and equipment, while the City will continue to provide routine street and parking lot upkeep as part of its normal operations.

Impact on the Community
The addition of public EV charging stations supports the community’s transition to cleaner transportation options and aligns with statewide sustainability goals. These stations will provide convenient charging access for residents, commuters, and visitors, encouraging EV adoption while reinforcing the City’s commitment to reducing greenhouse gas emissions.

ATTACHMENT(S)
A. Resolution
B. Agreement
Attachment A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

AUTHORIZING A LEASE AGREEMENT WITH

CENTRAL COAST COMMUNITY ENERGY FOR

THE INSTALLATION OF ELECTRIC VEHICLE CHARGING
STATIONS AT 418 SOUTH MCCLELLAND STREET, WITH

THE CONDITION THAT THE CHARGING STATIONS PROVIDE

FREE, UNRESTRICTED PUBLIC ACCESS TWENTY-FOUR

HOURS PER DAY, SEVEN DAYS PER WEEK, YEAR-ROUND
WHEREAS, in 2017 local communities established Central Coast Community Energy (3CE) to source clean and renewable electricity for customers throughout Monterey, San Benito, San Luis Obispo, Santa Cruz, and Santa Barbara counties. 3CE is locally controlled and governed by board members who represent each community served by the agency; and
WHEREAS, the City of Santa Maria and 3CE are collaborating on a pilot program to expand public EV charging infrastructure within the City; and WHEREAS, the lease agreement is for a ten-year term with no rental fee, and 3CE is solely responsible for installation, operation, and maintenance of the charging stations located at 418 South McClelland Street; and
WHEREAS, 3CE will be responsible for installation of appropriate signage at the EV charging stations located at 418 South McClelland Street, listing hours of operation for community usage; and
WHEREAS, there is no direct cost to the City for the installation or operation of the EV charging stations. 3CE will cover all costs associated with construction, installation of signage, utilities, maintenance, and equipment, while the City will continue to provide routine street and parking lot upkeep as part of its normal operations.

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

SECTION 1. Approving a lease agreement with Central Coast Community Energy for the installation of electric vehicle charging stations at 418 South McClelland Street with the condition that the charging stations provide free, unrestricted public access twenty-four hours per day, seven days per week, year-round; and SECTION 2. Authorize City Manager or designee to execute agreement. ///
Attachment A
SECTION 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, California, held this 21st day of October 2025.

ATTEST:

CHARGING STATION SITE LICENSE AGREEMENT
This CHARGING STATION SITE LICENSE AGREEMENT, (the “Agreement”), including all attached Exhibits, and dated as of the last signature date below (the “Effective Date”), is by and between City of Santa Maria, a municipality (“Lessor”) and Central Coast Community Energy (“Lessee”), a Joint Powers Authority. Lessor and Lessee may individually be referred to as a “Party” and collectively as the “Parties”.

RECITALS
A. Lessor owns that certain real property located at South McClelland Street in City of Santa Maria, CA , and legally described in Exhibit “A” (the “Property”).

B. Lessee wishes to install one or more electric vehicle charging stations on the Property and sell EV charging services to Central Coast Community Energy customers as well as members of the public.

C. Lessor wishes to license Lessee the Property for the purposes of offering members of the public access to EV charging stations at the property.

D. Lessor and Lessee desire to enter into this Agreement to provide the terms and conditions pursuant to which Lessor leases certain portions of the Property to Lessee.

NOW, THEREFORE, Lessor and Lessee hereby agree to the following terms and conditions.

AGREEMENT

1. Basic Provisions
a. Premises. Lessor hereby leases to Lessee a portion of the Property consisting of approximately 1,250 square feet, in order to build, own, operate, and maintain electric vehicle charging stations (singularly, a “Charging Station” or collectively the “Charging Stations”), along with approximately 900 square feet of landscaped or paved space for equipment (the “Premises”), together with ingress and egress to the Premises across the Property.
b. Term. The term (“Term”) of this Agreement shall commence on the Effective Date and end on the date that is ten (10) years from the Commercial Operation Date, unless renewed or earlier terminated as set forth herein. The "Commercial Operation Date" for purposes of this Agreement, shall mean the date on which all Charging Stations that are to be installed and are first operational.
c. Fee. Lessee agrees to pay Lessor a rental fee equal to $0 per Charging Station per year, starting on the Commencement Date (as defined below) and continuing until the Expiration Date.

2. Installation and Construction
Attachment B
a. Installation. Upon the Effective Date, Lessor shall deliver possession of the Premises to Lessee. Lessee shall, at its sole cost and expense, construct the Charging Stations. Lessee, at any time and for any reason during the term of this Agreement, may elect to upgrade, revise, alter, or remove any Charging Station installed on the Premises. b. Grant of License: Lessor is the fee simple owner of the real property identified in Exhibit A (“Property”). Subject to the terms of this Agreement, Lessor grants to Lessee and its contractors and vendors for the Term of this Agreement for the sole purposes of performing Lessee’s obligations and enforcing Lessee’s right under the Agreement: (1) an exclusive and irrevocable, except as specifically set forth herein, license to evaluate, use and occupy a portion of the Property, including designated parking spaces for charging electric vehicles; (2) necessary easements, or rights for installation, maintenance, operation, access and utilities, as described herein for the purpose (including, but not limited to, any rights necessary for PG&E to interconnect the stalls); and (3) the right for Lessee to issue a sublicense to its contractors and vendors that is up to, but no more than, coextensive with the license that Lessor grants to Lessee herein.
c. Construction. Lessee is solely responsible for supervising the construction and installation of the Charging Stations, which may include but not be limited to hiring and coordinating all vendors and contractors; installing electrical equipment, utility lines, hardware, and software; site preparation; trenching; repaving and landscaping. Lessor shall allow Lessee and Lessee’s contractors to stage equipment in reasonable proximity to the Premises to facilitate Lessee’s construction at the Property; provided such staging shall not unreasonably interfere with Lessor’s use of the Property. After obtaining written permission from Lessor, Lessee shall be permitted to reconfigure the existing parking spaces to accommodate the Charging Stations. For the avoidance of doubt, reconfiguring of parking spaces shall include, among other things, the right to reduce the number of striped parking spaces, if necessary, to promote the efficient and legal use of the Charging Stations.
d. Permits. Lessee and/or its contractors will, at its sole cost and expense, obtain all licenses, permits, or other approvals required to install the Charging Stations, and Lessor will reasonably cooperate upon request with Lessee’s efforts to do so. Lessor will provide staffing support to meet with Lessee at the Premises as needed, and cooperate generally with Lessee during the planning, permitting, and construction of the Charging Stations. Lessee shall comply with all permits issued for the planning, permitting, and construction of the Charging Stations.
e. Ownership by Lessee. The Charging Station equipment shall remain the sole property of the Lessee at all times, and Lessee shall have the right to remove all or a portion of any Charging Station at any time during the term of this Agreement, whether or not the Charging Station is considered a fixture and attached to the Premises under applicable laws. If a Charging Station becomes inoperable Lessee will have one (1) month to fix the inoperable Charging Station.
f. Right to Tow. Lessee retains the right to remove any vehicle from the Attachment B
Premises at any time and for any reason at Lessee’s sole cost, in accordance with applicable law.

3. Operation and Maintenance. Except as otherwise provided in this Agreement, Lessee will, at its sole cost and expense make all necessary maintenance, repairs, and replacements to the Charging Stations.

4. Access. Members of the public shall have free, access to the Premises during posted regular parking hours as determined by the City Council. Lessee and its employees, contractors, and/or vendors may, at any time during the Term, access the Premises to maintain and inspect the Charging Stations
Members of the public shall have free, unrestricted access to the Premises twenty-four (24) hours per day, seven (7) days per week, and 365 days per year. Lessee and its employees, contractors, and/or vendors may, at any time during the Term, access the Premises to maintain, inspect, repair or replace any portion of the Charging Station pursuant to its obligations under this Agreement.

The Lessee shall install and maintain clear, visible signage indicating that the designated parking stalls are reserved exclusively for actively charging electric vehicles. Such signage shall comply with the requirements set forth under California Vehicle Code Section 22511, including paragraph (2) of subdivision (d).

Pursuant to California Vehicle Code Section 22511, if a vehicle is parked in a designated EV charging stall without being actively connected for electric charging purposes, the local authority, after notifying the police or sheriff’s department, may cause the removal of such a vehicle to the nearest garage, as defined in Section 340, that is owned, leased, or approved for use by a public agency. For avoidance of doubt, Lessee shall not be responsible for any costs or fees associated with towing vehicles or enforcement of local parking restrictions.

Lessee shall install appropriate signage.

5. Right to Relocate
a. Cost. At Lessor’s sole cost and expense reimbursable to Lessee, Lessor may require Lessee to relocate to other premises (“New Premises”) within the Property; provided however, Lessor shall have no right to relocate Lessee for the purpose of leasing or licensing the Premises to a tenant that will operate as an electric vehicle charging station; provided, however, that Lessor may operate on its own or through a third-party an adjacent electric vehicle charging station on the Premises. The New Premises will be reasonably comparable in location, proximity to the main entrance to the facility, size, visibility, and layout to the Premises as of the date of Lessor’s Notice (hereinafter defined). Lessor will reimburse Lessee all reasonable costs Lessee incurs to move Lessee’s fixtures and equipment to the New Premises as well as costs incurred to secure power at the New Premises. If Lessor elects to exercise the right of relocation, Lessor shall deliver written notice to Lessee identifying the location of the proposed New Premises at least one hundred twenty (120) days prior to the date that Lessee is required to relocate to the New Premises (“Lessor’s Notice”). Lessee shall have no obligation to Attachment B
vacate the Premises until the New Premises is commissioned, permitted, and fully operational.
b. Right of First Refusal: Notwithstanding the above provision, LESSOR shall have the right to construct and operate a private EV charging station on the Property adjacent to the premises, however LESSOR shall provide LESSEE a right of first refusal (“ROFR”). If LESSOR receives an offer from a third party to construct and operate an EV charger station on the Property, and the LESSOR desires to accept, the LESSOR shall provide written notice to LESSEE. The Offer Notice shall provide the LESSEE a copy of the offer, including proposed terms and conditions. The LESSEE shall have (15) business days from receipt to exercise the ROFR by delivering notice to LESSOR. If the LESSEE fails to exercise its ROFR within this period, the LESSOR may proceed with the construction and operation of the EV charger station with the third party.

6. Signage. Lessee may paint, place, erect, or construct signage, marks, or advertising devices in, on, or about the Property as Lessee shall deem necessary, in a mutually agreed upon location. Lessee shall be responsible at its own cost and expense to obtain all permits necessary for the installation of its signs. All signage shall be in accordance with all laws, rules and ordinances.

7. Lessor Obligations Regarding Property/Premises. Lessor shall, at its sole cost and expense, take all actions necessary to maintain the Premises in a clean, safe, and orderly condition, to at least the same standard as it customarily maintains the common areas at the Property, including, without limitation, parking lot sweeping, parking lot repaving and restriping, including federal and state accessibility compliance, and maintenance and repair of curbs, gutters and landscaping features at the Property. Lessor shall also be responsible, at its sole cost and expense, to comply with all state and local parking laws, ordinances, requirements and rules, including, but not limited to, those relating to parking density should the same be impacted by the installation of electric vehicle parking spaces as contemplated herein. Lessor shall not be liable for any damage caused to the Premises, including each Charging Station, unless directly caused by Lessor, its employees, agents, or contractors. Lessor shall not be responsible for any vandalism or graffiti to Charging Stations; provided, however, that to the extent Lessor has actual knowledge of vandalism, Lessor shall promptly notify Lessee. Lessee is responsible for promptly repairing any damages or vandalism to the Charging Stations after notice from Lessor.

For the avoidance of doubt, Lessor shall be under no obligation to maintain the Charging Stations, signage or any other equipment installed by Lessee within the Premises.

However, if Lessor restripes the parking lot, inclusive of the Premises, Lessor shall restripe the Premises in a manner identical to Lessee’s striping scheme in effect immediately prior to the restriping.

Attachment B

8. EV Charging. Lessee will provide Charging Station access to customers ("EV Charging Customers"), which will include members of the public. EV Charging Customers shall have access to each Site during posted regular parking hours as determined by the City Council.
a. Customer Access. Lessor will identify Customer EV Charging Stations with specified signage pursuant to the City Parking Ordinance Section 7-5.14, a, b and c. as stated in number 4. of this agreement.

9. Utility Availability. Lessee shall supply all electricity to the Charging Stations.

Lessee may charge its end users for electrical usage. Lessor shall cooperate with Lessee to obtain any other utilities necessary to operate the Charging Station, including by granting appropriate easements to local utility providers; provided, however, that Lessor is not required to pay money to satisfy the requirements of the utility provider or Lessee associated with the provision of such utilities. Neither Lessor nor Lessee has any responsibility or liability for interruption, curtailment, failure, or defect in the supply or character of utilities furnished to facilities or equipment located at the Premises, unless the cause of the interruption is covered by such Party’s indemnity provided for below.

10. Taxes. Lessee is solely responsible for personal property taxes imposed on the Charging Stations, and any other equipment installed by it on the Premises. All other real or personal property taxes related to the Premises, including any increase in real estate taxes on the Property of which the Premises is a part which arise from Lessee’s improvements and/or Lessee’s use of the Premises, are the sole obligation of Lessor.

11. Ownership of Drawings and Other Documents. All documents prepared by or under the direction of Lessee pursuant to this Agreement, including, without limitation, drawings, plans, and specifications, including those in electronic format, are solely and exclusively owned by Lessee. The Parties agree that Lessee has and retains ownership of all of such Lessee’s Intellectual Property rights therein, and Lessor has no right, and shall not obtain any right, in any Lessee Intellectual Property.

As used in this Agreement, “Intellectual Property” means all copyrights, patents, trademarks and service marks, names, logos, designs, domain names, charger station equipment names, all registrations for copyrights, patents, trademarks and service marks/names, domain names, trade secrets, know-how, and all unique concepts, information, data and knowledge that is eligible for legal protection under applicable laws as intellectual property, whether protected through confidentiality, registration or pending registration, regardless of form, whether disclosed in writing, electronically, orally or through visual means, whether learned or obtained orally, through observation, through the discharge of responsibilities under this Agreement, or through analysis of that information, data or knowledge.

12. Publicity. Neither Party will use the other Party’s name, trademark or logo without such other Party’s prior written consent. If mutually agreed in writing, the Parties may Attachment B
make general press releases and statements, hold press conferences, both through traditional and electronic media, including websites created by Lessee or other third parties, regarding the existence of the Charging Stations and the status of the activities contemplated by this Agreement.

13. Representations and Warranties. Lessor and Lessee each hereby represent and warrant to the other as of the Effective Date that: (a) it has all necessary power and authority to execute, deliver, and perform its obligations hereunder; (b) the execution, delivery, and performance of this Agreement have been duly authorized by all necessary action and do not violate any of the terms or conditions of its governing documents, any contract to which it is a party, or any law, rule, regulation, order, judgment, or other legal or regulatory determination applicable to it; (c) there is no pending or, to its knowledge, threatened litigation or administrative proceeding that may materially adversely affect its ability to perform this Agreement; (d) it is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant under such laws, in good standing; (e) this Agreement constitutes a legal, valid and binding obligation of such Party, except as the enforceability of this Agreement may be limited by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity; and (f) at all times during the Term, it will comply with all federal, state, and local laws, rules, regulations (including, without limitation, all zoning ordinances and building codes) in performing its obligations under this Agreement.

14. Additional Lessor Covenant. Lessor covenants that it shall not take any action that would interrupt the use of the Premises or the Charging Station. However, this covenant shall not preclude the Lessor from temporarily restricting access to the Premises or Charging Station in the event of:
a. Maintenance Activities – Necessary maintenance, repairs, or improvements to the roadways, utilities, or other infrastructure serving the Premises, provided that the Lessor shall use commercially reasonable efforts to minimize disruption and provide advance notice to the Lessee whenever possible.
b. Emergency Situations – Any actions required to respond to emergency situations, including but not limited to natural disasters, accidents, public safety requirements, or compliance with orders issued by relevant authorities. c. The Lessor shall make reasonable efforts to promptly restore access to the Premises and Charging Station once the maintenance or emergency situation has been resolved.

15. Lessee Insurance.

During the Term of this Agreement, Lessee shall maintain in full force and effect, at its cost and expense, the following coverages and amounts of insurance or self-insurance:

Attachment B
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 Consultant 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 Consultant's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

B. Minimum Limits of Insurance
Consultant 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.

C. Self-insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant 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.

Attachment B
D. Other Insurance Provisions
The 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 Consultant 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 Consultant’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 Consultant'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 Consultant'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. Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant 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.

Attachment B
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 Consultant 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
Consultant 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 Consultant’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.

16. Lessor Insurance.
a. Lessor has no obligation to maintain insurance under this Agreement.

17. Casualty and Condemnation.
a. Damage. If the Premises, any portion of the Charging Stations or any portion of the Property that adversely affects the use of the Charging Stations is damaged by fire or other casualty, then either Lessor or Lessee may, within thirty (30) days of the date of such fire or other casualty elect to terminate the Agreement by written notice to the other Party. If Lessee elects to repair its property, it shall restore, rebuild, or replace those portions of the Charging Stations and any other property damaged as a result of such fire or other casualty to their prior or better condition as necessary, and all property insurance proceeds of Lessor applicable to the Premises shall be made available to Lessee in connection with such repair and restoration. If Lessee elects to terminate the Agreement, it shall remove all of Lessee’s property from the Premises in accordance with this Agreement. Any repair and restoration required by Lessee under this Section shall commence within sixty (60) days of the date Lessee elects to repair and restore the Premises and shall be completed no later than 120 days thereafter, if reasonably possible. b. Condemnation/Taking. If any portion of the Premises or Property is condemned or taken in any manner for a public or quasi-public use that could adversely affect the use of the Charging Stations, then Lessee may elect to terminate this Agreement effective as of the date title to the condemned portion of the Property is transferred to the condemning authority. If Lessee does not elect to terminate, the Parties Attachment B
will use commercially reasonable efforts to find an alternate location for the Charging Stations on the Property. The costs of the relocation of the Charging Station shall be paid by Lessor. Lessee may file a separate claim to the condemning authority for any relocation award made as a result of such condemnation; provided, however, in no event shall such claim reduce the Lessor’s award related to the condemnation or taking. c. Suspension of Term. During any time that the Charging Station or any portion of the Premises is under repair or being relocated pursuant to a casualty or condemnation, the Term shall be temporarily suspended on a day-for-day basis.

18. Hold Harmless. Each Party shall indemnify and hold harmless the other Party, and their respective affiliates, representatives, agents, board members, officers, directors, managers, members, contractors or employees, from and against all third party claims, demands, causes of action, liabilities, costs, damages, losses, penalties, fines, judgments or expenses, including reasonable attorneys’ fees and costs of collection (collectively “Losses”) that arise out of or result from (1) any willful misconduct or negligence of the indemnifying Party in connection with this Agreement; (2) any breach by the indemnifying Party of its obligations, representations, or warranties under this Agreement, or (3) the indemnifying Party’s operation of each Site or Property, except to the extent arising out of or resulting from any willful misconduct or negligence of the indemnified Party. The obligations of the Parties under this Section shall survive the expiration, cancellation, or termination of this Agreement and Term.

19. Limitation of Lessor and Lessee Liability. In no event shall either Party be liable (in contract or in tort, including negligence and strict liability) to such other Party or to such other Party’s affiliates or their respective representatives, agents, officers, directors, shareholders, partners or employees for any special, indirect or consequential damages relating to this Agreement.

20. Termination. This Agreement may be terminated in its entirety:
a. By either Party if the other Party breaches or fails to perform any of its obligations in any material respect, and such breach or failure continues uncured for fifteen (15) business days after receipt of written notice; provided that if such breach or failure reasonably requires more than fifteen (15) days to cure, this provisions shall not be triggered if such breaching Party commences to cure within such period and diligently proceeds to complete such cure; or
b. By either Party, if the other Party becomes insolvent or proceedings are instituted by or against it under any provision of any federal or state bankruptcy or insolvency laws or;
Attachment B
c. by either Party, pursuant to Section 17 of this Agreement or upon expiration of the Term of this Agreement.
d. Post-Termination Removal. Upon expiration or termination of this Agreement, Lessee shall, at its sole cost and expense, remove all Charging Stations and related EVSE equipment from the Premises and restore the area to a condition reasonably consistent with its original state, normal wear and tear excepted, unless otherwise agreed in writing by the Parties.

21. Remedies. Each Party shall have all remedies available at law or in equity if the other Party is in default under the terms of this Agreement.

22. Notice. Any notice provided or permitted to be given under this Agreement must be in writing and be served either by (i) deposit in the mail, addressed to the Party to be notified, postage prepaid, and registered or certified, with a return receipt requested, or (ii) deposit with an internationally recognized overnight delivery carrier, with notice of delivery to the recipient Party or by electronic mail with a return notice requested. Notice given by registered or certified mail, overnight carrier or electronic mail shall be deemed delivered and effective on the date of delivery shown on the return receipt or proof of receipt. For purposes of notice the addresses of the parties shall be as follows:

If to Lessee:

Central Coast Community Energy
70 Garden Court, Suite 300
Monterey, CA
If to Lessor:

Department of Public Works
110 South Pine Street, Suite 101
Santa Maria, CA 93458
Attachment B
With a copy to (which shall not constitute notice): [email protected] Each Party may change its address for notice by giving notice thereof to the other Party.

23. Assignment. This Agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, assigns, and personal representatives. Neither Party may assign its rights and obligations in and under this Agreement without first obtaining prior written consent of the other Party, which may be withheld in such Party’s sole discretion; provided, however, that either Party may assign its rights and obligations in and under the Agreement to an affiliate, subsidiary or successor by merger or acquisition or successor to all or substantially all of the assets of such Party at any time and without consent.

24. Miscellaneous.
a. Force Majeure. Neither Party is responsible for any delay or failure in performance of any part of this Agreement to the extent that delay or failure is caused by fire, flood, explosion, war, embargo, pandemic, government requirement, civil or military authority, act of God, act or omission of carriers or other similar causes beyond the Party’s control.
b. Amendment. This Agreement may be amended or modified only by an instrument in writing signed by Lessor and Lessee.
c. Construction of Agreement. Lessor and Lessee agree that each party has fully participated in the review and revision of this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendment to this Agreement.
d. Governing Law. This Agreement shall be governed by and interpreted in accordance with the internal laws of the State of California without giving effect to conflict of law rules. In the event a legal dispute concerning the subjects of this Agreement, the Parties agree that the exclusive venue is the Superior Court for the County of Santa Barbara.
e. Headings. The headings used in this Agreement are for the convenience and reference only and do not constitute a part of this Agreement and will not be deemed to limit, characterize or in any way affect any provision of this Agreement, and all provisions of this Agreement will be enforced and construed as if no caption had been used.

Attachment B
f. Attorneys’ Fees. If either Party institutes a suit against the other for violation of or to enforce any covenant, term or condition of this Agreement, the prevailing Party shall be entitled to reimbursement of all of its costs and expenses, including, without limitation, reasonable attorneys’ fees.
g. Non-Binding Mediation. If a dispute arises out of or relates to this Agreement, or its breach, and the Parties have not been successful in resolving such dispute through negotiation, the parties agree to attempt to resolve the dispute through non-binding mediation by submitting the dispute to a sole mediator selected by the Parties or, at the option of a Party, to mediation. If such dispute is not resolved by such non-binding mediation, the Parties shall have the right to resort to any remedies permitted by law. All defenses based on passage of time shall be tolled during the mediation.
h. No Waiver. The failure of a Party to insist on strict performance of any provision of the Agreement does not constitute a waiver of, or estoppel against asserting, the right to require performance in the future. A waiver or estoppel given in any one instance does not constitute a waiver or estoppel with respect to a later obligation or breach.
i. No Third-Party Beneficiaries. This Agreement does not confer any rights or remedies on any person other than the parties and their respective successors and permitted assigns.
j. Remedies. The rights and remedies provided by this Agreement are cumulative, and the use of any right or remedy by any Party does not preclude or waive its right to use any or all other remedies. These rights and remedies are given in addition to any other rights a Party may have under applicable law, in equity or otherwise. k. Severability. If any term of this Agreement is held by any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over this subject matter, that contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as reformed to the extent necessary to render valid the particular provision or provisions held to be invalid, consistent with the original intent of that provision and the rights and obligations of the parties shall be construed and enforced accordingly, and this Agreement shall remain in full force and effect as reformed.
l. Integration; Amendments. It is agreed and understood that this Agreement contains all Agreements, promises and understandings between the parties, and that there are no verbal or oral agreements, promises or understandings between the parties.

Any amendment, modification or other change to this Agreement shall be ineffective Attachment B
unless made in a writing signed by the parties hereto.
m. Counterpart/Electronic Execution and Transmittal. This Agreement may be executed in any number of counterparts with the same effect as if all the Parties had signed the same document; all counterparts shall be construed together and shall constitute one and the same instrument. The Parties may sign such counterparts by electronic signature and delivery of an executed counterpart to this Agreement by electronic means (including via email) shall be as effective as the delivery of a manually executed counterpart.
n. Time is of the Essence. Time is of the essence in this Agreement.

Attachment B
In witness whereof, the Parties execute this Agreement as of the date last below written.

CENTRAL COAST COMMUNITY
ENERGY
a Joint Powers Authority
___________________________
Robert M. Shaw
Chief Executive Officer

CENTRAL COAST COMMUNITY
ENERGY
Approved as to Form
Deputy General Counsel

CITY OF SANTA MARIA,
a Municipal Corporation
Brett Fulgoni
Director of Public Works
ATTEST:

Donna G. Schwartz
Chief Deputy City Clerk
APPROVED AS TO FORM:
_______________________________
Risk Manager
_______________________________
City Attorney
Attachment B

EXHIBIT A

PROPERTY

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Approving an Award of Bid to J.F. Will Company Inc. for the Pine Street Sewer Upgrades Project, Bid No. 2025-05, in the amount of $783,720.47 and Approving Agreement for Construction of said Project
Description:

The City Council will consider approving an agreement and the award of Bid No. 2025- 05 to The J.F. Will Company, Inc. for the construction of the Pine Street Sewer Upgrades Project. The project consists of installing approximately 462 feet of new 12-inch PVC gravity sewer along South Pine Street, replacing the existing 6-inch line, and crossing under the Santa Maria Valley Railroad tracks within a 20-inch steel casing. A new manhole will be constructed at West Boone Street, and the existing one will be abandoned. To maintain sanitary separation, the existing 10-inch ACP water main at West Boone Street will be replaced with a 10-inch ductile iron main, enabling installation of a new 60-inch diameter manhole at the intersection.

RECOMMENDATION:

1. Adopt a Resolution awarding a bid to The J.F. Will Company, Inc., for the construction of the Pine Street Sewer Upgrades Project, Bid No. 2025-05 in the amount of $783,720.47; and

2. Authorize City Manager, or designee, to execute agreement and approve Contract Change Orders so long as expenditures do not exceed funding approved for the project.

BACKGROUND:

Under the direction of the City of Santa Maria Public Works Engineering Department, the project was designed by the Wallace Group. The project will provide approximately 462 linear feet of new 12-inch PVC gravity sewer along South Pine Street between West Jones and West Boone Streets, replacing the existing 6-inch line. At West Boone Street, the sewer will cross under the Santa Maria Valley Railroad tracks within a 20-inch steel casing, with installation of a new manhole and abandonment of the existing one. In 2 addition, the 10-inch ACP water main at West Boone Street will be replaced with a 10- inch ductile iron main to maintain sanitary separation. This work will allow for the installation of the new 60-inch diameter manhole at the intersection.

DISCUSSION:

The project was extensively advertised for bids. The City received five bids, which were opened on September 11, 2025. A summary of the bids submitted are as follows:

Bidder Bid Amount
The J. F. Will Company, Inc. $783,720.47
Main Line Engineering $900,200.00
R Baker Inc. $904,240.00
Tierra Contracting $975,080.00
V. Lopez Jr. & Sons G.E.C., Inc. $1,153,802.00
A detailed tabulation of the bids received is attached (Attachment A). Signed proposals and bid bond forms are available for viewing in the office of the Director of Public Works located at 110 South Pine Street, Suite 221, Santa Maria, CA 93458.

The lowest responsive, responsible bid was submitted by The J.F. Will Company, Inc., in the amount of $783,720.47.

The J.F. Will Company, Inc., from Santa Maria, CA has performed and successfully completed similar work for many cities throughout the Central Coast. In addition, they have submitted references for their work history. City staff has checked the firm’s references and are comfortable with the ability of the contractor to perform the work successfully. Therefore, the recommended action is to award the bid to The J.F. Will Company, Inc. in the amount of $783,720.47.

Alternative(s)
The alternative to the recommended action would be to reject all bids. 3 Fiscal Considerations
Funding for this project is provided by the Utilities Division, Wastewater Fund. This project will require additional support funding. The Utilities Department seeks the consideration of the City Council for an additional appropriation of $556,138.97.

Available Budget Account Amount
SC7445|CC0260|FD640|PPRJ-00000201 $ 400,000.00
Estimated Expenditures Amount
Award
Contingency (20%)
$ 783,720.47
$ 156,744.09
Inspection, Testing, Staff Time (10%) $ 78,372.00
Total $ 956,138.97
Impact to the Community
This project will improve sewer system reliability, enhance sanitary conditions, and support future capacity needs along South Pine Street. Replacing the deteriorated sewer and upgrading the water main will reduce the risk of service disruptions, benefiting nearby residents, businesses, and rail operations at West Boone Street.

ATTACHMENT(S)
A. Resolution
B. Detailed Bid Results
C. Agreement
Attachment A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA,
AWARDING A BID TO THE J.F. WILL COMPANY, INC., FOR THE

CONSTRUCTION OF THE PINE STREET SEWER UPGRADES
PROJECT, BID NO. 2025-05 IN THE AMOUNT OF $783,720.47
WHEREAS, the City of Santa Maria formally advertised Pine Street Sewer Upgrades Project, Bid No. 2025-05 (“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 on September 11, 2025, via Planet Bids; and
WHEREAS, the J.F. Will Company, Inc., was determined to be the lowest responsive, responsible bidder who included all required documentation, bid bonds, and signatures; and
WHEREAS, project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301.

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

SECTION 1. Award of bid to J.F. Will Company, Inc. for the Pine Street Sewer Upgrades Project, Bid No. 2025-05 in the amount of $783,720.47; and SECTION 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 SECTION 3. Approve agreement with J.F. Will Company, Inc. for the construction of the Pine Street Sewer Upgrades Project; and
SECTION 4. Authorize City Manager or designee to designate $400,000 from the Wastewater Fund and appropriate an additional $556,138.97 from the Wastewater Fund for the approved project in the amount of $956,138.97; and SECTION 5. Authorize City Manager or designee to execute agreement and approve Contract Change Orders so long as expenditures do not exceed funding approved for the project; and
///
Attachment A
SECTION 6. 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, California, held this 21st day of October 2025.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager
Item Description Unit Quantity Unit Price Line Total Unit Price Line Total Unit Price Line Total Unit Price Line Total Unit Price Line Total 1 Mobilization and Demobilization LS 1 $84,737.25 $84,737.25 $15,000.00 $15,000.00 $56,000.00 $56,000.00 $50,000.00 $50,000.00 $6,468.00 $6,468.00 2 Construction Survey LS 1 $12,940.20 $12,940.20 $12,000.00 $12,000.00 $17,000.00 $17,000.00 $32,600.00 $32,600.00 $23,234.00 $23,234.00 3 Traffic Control LS 1 $29,343.60 $29,343.60 $25,000.00 $25,000.00 $36,000.00 $36,000.00 $15,000.00 $15,000.00 $77,494.00 $77,494.00 4 Sheeting, Shoring and Bracing LS 1 $33,786.09 $33,786.09 $30,000.00 $30,000.00 $54,000.00 $54,000.00 $28,000.00 $28,000.00 $23,178.00 $23,178.00 5 Storm Water Compliance LS 1 $8,618.67 $8,618.67 $10,000.00 $10,000.00 $13,000.00 $13,000.00 $2,500.00 $2,500.00 $4,955.00 $4,955.00 6 Potholing LS 1 $10,083.84 $10,083.84 $11,000.00 $11,000.00 $22,500.00 $22,500.00 $25,000.00 $25,000.00 $17,335.00 $17,335.00 7 Sanitary Sewer Bypassing LS 1 $25,225.20 $25,225.20 $12,000.00 $12,000.00 $10,000.00 $10,000.00 $3,500.00 $3,500.00 $50,518.00 $50,518.00 8 12" SDR 35 PVC Gravity Sewer - Open Trench Installation LF 462 $150.98 $69,752.76 $750.00 $346,500.00 $420.00 $194,040.00 $695.00 $321,090.00 $681.00 $314,622.00 9 6" SDR 35 PVC Gravity Sewer - Open Trench Installation - "West Leg" LF 20 $1,034.69 $20,693.80 $450.00 $9,000.00 $940.00 $18,800.00 $325.00 $6,500.00 $1,146.00 $22,920.00 10 6" SDR 35 PVC Gravity Sewer - Open Trench Installation - "East Leg" LF 20 $1,037.61 $20,752.20 $450.00 $9,000.00 $940.00 $18,800.00 $325.00 $6,500.00 $1,146.00 $22,920.00 11 Connect Existing 4" Sewer Lateral to New Sewer Main EA 2 $24,488.10 $48,976.20 $850.00 $1,700.00 $9,500.00 $19,000.00 $15,000.00 $30,000.00 $3,115.00 $6,230.00 12 Jacked Casing with 12" Gravity Sewer at SMVRR RR Tracks LF 40 $1,851.58 $74,063.20 $2,250.00 $90,000.00 $3,100.00 $124,000.00 $3,250.00 $130,000.00 $5,164.00 $206,560.00 13 60" Polymer Concrete Drop Manhole EA 1 $46,250.10 $46,250.10 $45,000.00 $45,000.00 $51,000.00 $51,000.00 $44,250.00 $44,250.00 $68,493.00 $68,493.00 14 48" Polymer Concrete Manhole EA 3 $42,350.10 $127,050.30 $40,000.00 $120,000.00 $38,000.00 $114,000.00 $37,250.00 $111,750.00 $41,569.00 $124,707.00 15 Line Interior of Existing Gravity Sewer Manhole at W. Boone Street LS 1 $10,614.24 $10,614.24 $30,000.00 $30,000.00 $20,000.00 $20,000.00 $7,565.00 $7,565.00 $10,604.00 $10,604.00 16 10" Water Main Relocation at Jones Street Manhole LS 1 $39,244.14 $39,244.14 $40,000.00 $40,000.00 $32,500.00 $32,500.00 $51,500.00 $51,500.00 $36,886.00 $36,886.00 17 Abandonment of Existing Sewer LS 1 $27,129.96 $27,129.96 $8,000.00 $8,000.00 $5,600.00 $5,600.00 $5,000.00 $5,000.00 $21,328.00 $21,328.00 18 Hot Mix Asphalt Ton 80 $602.55 $48,204.00 $480.00 $38,400.00 $720.00 $57,600.00 $850.00 $68,000.00 $627.00 $50,160.00 19 Aggregate Base CY 70 $298.65 $20,905.50 $180.00 $12,600.00 $220.00 $15,400.00 $185.00 $12,950.00 $477.00 $33,390.00 20 Restore Concrete Valley Gutter CY 5 $3,163.68 $15,818.40 $1,000.00 $5,000.00 $3,200.00 $16,000.00 $3,175.00 $15,875.00 $2,800.00 $14,000.00 21 Remove Existing 48" Sanitary Sewer Manhole EA 1 $9,530.82 $9,530.82 $30,000.00 $30,000.00 $9,000.00 $9,000.00 $7,500.00 $7,500.00 $17,800.00 $17,800.00 Total $783,720.47 Total $900,200.00 Total $904,240.00 Total $975,080.00 Total $1,153,802.00 City of Santa Maria
Bid Results for Project PINE STREET SEWER UPGRADE PROJECT (2025-05) Issued on 08/14/2025
Bid Due on September 11, 2025 2:00 PM (PDT)
Line Totals (Unit Price * Quantity) The J. F. Will Company, Inc. Main Line Engineering R Baker Inc. Tierra Contracting V. Lopez Jr. & Sons G.E.C., Inc.

Attachment B
Attachment C

AGREEMENT
THIS AGREEMENT, made and entered into this 21st day of October 2025, 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: Pine Street Sewer Upgrades Project (PW Bid No. 2025-05), 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 SEVEN HUNDRED EIGHTY-THREE THOUSAND, SEVEN HUNDRED TWENTY-EIGHT DOLLARS AND FORTY-SEVEN CENTS.

Contract Price in Figures $783,720.47

3. Contractor agrees to complete said work within the contract time of one hundred and twenty (120) 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 amount 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.

Attachment C

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 California 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 following 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 Attachment C
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 reference, 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.)
Attachment C
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: The J.F. Will Company,
Inc.
___________________________
John Will
President
OWNER: City of Santa Maria a
Municipal Corporation
Brett Fulgoni
Public Works Director
ATTEST:

Donna G. Schwartz
Chief Deputy City Clerk
APPROVED AS TO FORM:
_______________________________
Risk Manager
_______________________________
City Attorney
Attachment C
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:

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 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.

Attachment C
B. Minimum Limits of Insurance
Provider shall maintain limits no less than:

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 Requirements
The 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 Attachment C
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.

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:
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.

Attachment C
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.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Awarding a Bid to Hartzell General Engineering Contractor, Inc. and Approving an Agreement for Construction of Well 15 Equipping Project, Bid No. 2025-04 Description:

The City Council will consider approving the award of Bid No. 2025-04 to Hartzell General Engineering Contractor, Inc. for the construction of the Well 15 Equipping Project. The work to be performed under this contract consists of furnishing the necessary labor, materials, equipment, tools, and guarantees thereof to construct and equip Santa Maria Water Supply Well No. 15.

Environmental Notice: Environmental Review for this project was completed through the preparation of an Initial Study/Mitigated Negative Declaration for the City of Santa Maria Well 15 Special Project (SCH# 2024061097) pursuant to the California Environmental Quality Act State Guidelines.

RECOMMENDATION:

1. Adopt a Resolution awarding a bid to Hartzell General Engineering Contractor, Inc., and approving an agreement for the construction of the Well 15 Equipping Project, Bid No. 2025-04, in the amount of $4,343,870; and

2. Authorize the City Manager, or designee, to execute the agreement.

BACKGROUND:

The 2012 Utilities Capacity Study identified a critical need to increase water production capacity to meet future Maximum Day Demand (MDD) projections and to improve system resiliency in the event of an interruption to the State Water Project supply. To address this need, the City Utilities Department commissioned Cannon Corporation (the “Design Engineer”) to design a new municipal water supply well, Well 15.

The new well is sited within an easement obtained from the Santa Maria Airport District.

This project involves drilling and equipping a new ±1,600-foot deep well, located approximately 1,800 feet southeast of the City’s existing Well 14. Once completed, Well 15 will connect to the City’s existing header line west of the airport and convey water to the Blending & Disinfection Facility, improving both the reliability and quality of the City's water supply.
2 The Well 15 project includes two primary construction contracts, one to drill the well and the other to equip it. The construction contract to drill Well 15 was awarded at the July 1, 2025, City Council Meeting. Equipping the well includes construction of the well facility, related appurtenances, pipelines, valves, pump-to-waste discharge infrastructure, surge protection, sand separation equipment, pump and motor assemblies, automated control systems (SCADA), emergency power, and an access roadway. Well 15 is designed to deliver a minimum of 2,000 gallons per minute (gpm) and will be equipped with related appurtenances, pipelines, valves, pump-to-waste discharge infrastructure, surge protection, sand separation equipment, pump and motor assemblies, automated control systems (SCADA), and emergency power.

The Design Engineer has prepared the equipping design, which includes civil site development (grading and drainage), structural (building, equipment pads, and ancillary structures), mechanical, electrical, SCADA systems, along with detailed construction drawings and specifications.

Once completed, Well 15 will be connected to the existing header line that serves the City’s water wells west of the airport. The water extracted will be conveyed to the City’s Blending & Disinfection Facility, ensuring continued reliability and water quality for the community.

DISCUSSION:

The project was issued and advertised through the City’s e-Procurement Portal, PlanetBids. The City received seven bids, which were opened on September 18, 2025. A summary of the bids submitted are as follows:

Bidder Bid Amount
Hartzell General Engineering Contractor, Inc. $4,343,870.00 Brough Construction, Inc. $4,998,760.00
W. M. Lyles Co $5,191,070.00
The J. F. Will Company, Inc. $5,242,954.12
Spiess Construction Co., Inc. $5,990,120.05
HPS Mechanical, Inc. $6,068,996.10
Canyon Springs Enterprises $6,872,370.00
A detailed tabulation of the bids received is attached (Attachment B). Signed proposals and bid bond forms are available for viewing in the office of the Director of Public Works located at 110 South Pine Street, Suite 221, Santa Maria, CA 93458.

The lowest responsive, responsible bid was submitted by Hartzell General Engineering Contractor, Inc., in the amount of $4,343,870.00.

Hartzell General Engineering Contractor, Inc. from Cayucos, CA has performed and successfully completed similar work for many cities throughout the Central 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 3 work successfully. Therefore, the recommended action is to award the bid to Hartzell General Engineering Contractor, Inc., in the amount of $4,343,870, along with a 10% contingency.

Alternative(s)
The alternative to the recommended action would be to reject all bids. However, doing so would likely delay the project and increase costs.

Fiscal Considerations
Contract Award Funding: Staff are requesting appropriation of $3,064,028 from the Water Fund to support the construction contract award and related equipping costs. The additional appropriation will be fully funded through existing water rates and growth mitigation fees. There is no impact on the General Fund.

Project Budget Overview: The original budget authorized in FY 2022–23 for the Well 15 project was $5,500,000, funded through growth mitigation and water funds. Based on current cost estimates, the budget is insufficient to complete the project, including construction and contingency; construction management and inspection; and environmental services. Upon approval of the additional appropriation requested above, total project funding will increase to $8,564,027, ensuring all necessary work can be completed to bring the Well 15 project to completion. A detailed breakdown of project costs is provided below.

Amount
Approved Project Budget FY 22/23 1
5,500,000
Expenditures To-Date (370,703)
Reserved - Well 15 Drilling Project (Underway) (2,697,355) Current Available Budget $ 2,431,942
Amount
Construction Award 4,343,870
Construction Award - Contingency 10% 434,387
Contract Administration & Inspection 627,465
Contract Administration & Inspection - Contingency 10% 62,747 Environmental Services 25,000
Environmental Services - Contingency 10% 2,500
Projected Well 15 Equipping Project Costs $ 5,495,969
Amount
Projected Well 15 Equipping Project Costs 5,495,969
Remaining Authorized Budget (2,431,942)
(10/21/2025 Request) Additional Appropriation 2 $ 3,064,027 Total Project Cost (1+2) $ 8,564,027
4 Impact on the Community
Construction of Well 15 will support the City’s ability to meet current water demand needs, particularly during periods of high demand or emergency conditions, including decreased State Water allocations or deliveries.

ATTACHMENT(S)
A. Resolution
B. Detailed Bid Results
C. Agreement
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

AWARDING A BID TO HARTZELL GENERAL
ENGINEERING CONTRACTOR, INC.,

AND APPROVING AN AGREEMENT FOR THE
CONSTRUCTION OF WELL 15 EQUIPPING PROJECT,
BID NO. 2025-04, IN THE AMOUNT OF $4,778,257
WHEREAS, the City of Santa Maria formally advertised Well 15 Equipping Project, Bid No. 2025-04 (“Project”); and
WHEREAS, the Notice Inviting Bids was published and posted in compliance with applicable sections of the Public Contract Code; and
WHEREAS, the bid was issued and advertised through the City’s e-Procurement Portal, PlanetBids, and publicly opened at 2:30 p.m. on September 18, 2025; and WHEREAS, Hartzell General Engineering Contractor, Inc., was determined to be the lowest responsive, responsible bidder who included all required documentation, bid bonds, and signatures; and
WHEREAS, an Environmental Review for this project was completed through the preparation of an Initial Study/Mitigated Negative Declaration for the City of Santa Maria Well 15 Drilling Special Project (SCH# 2024061097) pursuant to the California Environmental Quality Act State Guidelines.

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

SECTION 1. The City Manager or, designee, is hereby authorized to execute, agreement with Hartzell General Engineering Contractor, Inc., for the Well 15 Equipping Project, Bid No. 2025-04, for the amount of $4,343,870 and contingency of $434,387, for a total award of $4,778,257; and
SECTION 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 SECTION 3. 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
///
Attachment A

Page 2 of 2 ends

SECTION 4. The City Manager, or designee, is hereby authorized to appropriate $3,064,027 to expenditure account 002-011-080-52-54, bringing the total project funding to $8,564,027 from Funds 002 and 027; of this total, $5.5 million was previously appropriated in Fiscal Year 2022-23 and does not require reauthorization; and SECTION 5. 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 21
st day of October 2025.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager
City of Santa Maria
Bid Results for Project WELL 15 EQUIPPING PROJECT (2025-04) Issued on 07/22/2025
Bid Due on September 18, 2025 2:30 PM (PDT)
Line Totals (Unit Price * Quantity)
Item Num Description Unit Quantity Unit Price Line Total Unit Price Line Total Unit Price Line Total Unit Price Line Total Unit Price Line Total Unit Price Line Total Unit Price Line Total 1 Mobilization/Demobilization Pipelines and Well Equipping LS 1 $418,000.00 $418,000.00 $82,000.00 $82,000.00 $200,000.00 $200,000.00 $352,935.00 $352,935.00 $299,920.00 $299,920.00 $274,000.00 $274,000.00 $350,000.00 $350,000.00 2 Environmental Mitigation and Compliance LS 1 $23,000.00 $23,000.00 $38,000.00 $38,000.00 $3,270.00 $3,270.00 $126,900.00 $126,900.00 $50,600.00 $50,600.00 $35,000.00 $35,000.00 $30,000.00 $30,000.00 3 Site Work and Grading - Well Site LS 1 $135,000.00 $135,000.00 $92,000.00 $92,000.00 $52,110.00 $52,110.00 $98,101.00 $98,101.00 $114,425.00 $114,425.00 $375,000.00 $375,000.00 $250,000.00 $250,000.00 4 Class II Base for Entire Site CY 300 $217.00 $65,100.00 $200.00 $60,000.00 $130.00 $39,000.00 $108.13 $32,439.00 $162.53 $48,759.00 $250.00 $75,000.00 $165.00 $49,500.00 5 Concrete Well Head, Well Building slab and Discharge Piping slab LS 1 $29,000.00 $29,000.00 $34,000.00 $34,000.00 $67,590.00 $67,590.00 $62,020.80 $62,020.80 $78,775.00 $78,775.00 $158,000.00 $158,000.00 $125,000.00 $125,000.00 6 Furnish and Install 10" DIP Waste Line LF 2950 $145.00 $427,750.00 $260.00 $767,000.00 $200.00 $590,000.00 $211.65 $624,367.50 $273.20 $805,940.00 $322.71 $951,994.50 $269.00 $793,550.00 7 Furnish and install 12-inch Ductile Iron Discharge Piping Header including valves, Fittings, Restraint Fittings, Miscellaneous Appurtenances - ABOVE GROUND PIPING LS 1 $215,000.00 $215,000.00 $202,500.00 $202,500.00 $245,930.00 $245,930.00 $287,754.80 $287,754.80 $221,375.00 $221,375.00 $270,000.00 $270,000.00 $240,000.00 $240,000.00 8 14" buried Water Main Piping, fittings, ARV Piping and appurtenances -DIP LF 2930 $186.00 $544,980.00 $312.00 $914,160.00 $260.00 $761,800.00 $279.75 $819,667.50 $338.71 $992,420.30 $300.00 $879,000.00 $387.00 $1,133,910.00 9 Well Pump, Column, Tube Shaft and Motor Assembly per Plans and Specifications EA 1 $439,000.00 $439,000.00 $475,000.00 $475,000.00 $485,700.00 $485,700.00 $486,490.40 $486,490.40 $532,501.75 $532,501.75 $470,000.00 $470,000.00 $585,000.00 $585,000.00 10 Well Enclosure Structure- Furnish and Install LS 1 $70,000.00 $70,000.00 $59,000.00 $59,000.00 $67,970.00 $67,970.00 $40,922.40 $40,922.40 $104,650.00 $104,650.00 $90,000.00 $90,000.00 $95,000.00 $95,000.00 11 Sheeting, Shoring and Bracing LS 1 $10,000.00 $10,000.00 $65,000.00 $65,000.00 $8,800.00 $8,800.00 $40,497.60 $40,497.60 $69,000.00 $69,000.00 $15,000.00 $15,000.00 $55,000.00 $55,000.00 12 Storm Water Pollution Prevention Construction Activities LS 1 $29,000.00 $29,000.00 $16,400.00 $16,400.00 $37,800.00 $37,800.00 $67,604.80 $67,604.80 $40,250.00 $40,250.00 $15,000.00 $15,000.00 $38,000.00 $38,000.00 13 Chain Link Fencing with 2 manual drive Gates and 2 walk-gates LF 500 $110.00 $55,000.00 $105.00 $52,500.00 $210.00 $105,000.00 $183.99 $91,995.00 $96.95 $48,475.00 $100.00 $50,000.00 $167.00 $83,500.00 14 Chemical Facilities Building, Chemical Pump, Chem Tanks & Eye Wash LS 1 $163,000.00 $163,000.00 $245,000.00 $245,000.00 $250,200.00 $250,200.00 $198,956.26 $198,956.26 $332,350.00 $332,350.00 $225,000.00 $225,000.00 $350,000.00 $350,000.00 15 Furnish and Install Sand Separator EA 1 $131,000.00 $131,000.00 $135,000.00 $135,000.00 $150,700.00 $150,700.00 $134,484.60 $134,484.60 $156,400.00 $156,400.00 $185,000.00 $185,000.00 $170,000.00 $170,000.00 16 Furnish and Install Bladder Type Surge Tank & piping with Concrete Foundation EA 1 $151,000.00 $151,000.00 $164,000.00 $164,000.00 $104,700.00 $104,700.00 $116,666.50 $116,666.50 $218,500.00 $218,500.00 $225,000.00 $225,000.00 $195,000.00 $195,000.00 17 Drainage/Infiltration Chambers LS 1 $32,000.00 $32,000.00 $32,000.00 $32,000.00 $15,200.00 $15,200.00 $23,682.84 $23,682.84 $49,335.00 $49,335.00 $60,000.00 $60,000.00 $150,000.00 $150,000.00 18 Storm Drain Piping (15 inch & 18 inch) and Well site exterior Grading LF 320 $122.00 $39,040.00 $180.00 $57,600.00 $240.00 $76,800.00 $136.21 $43,587.20 $124.70 $39,904.00 $296.88 $95,001.60 $388.00 $124,160.00 19 Trench Stabilization (3/4 compacted gravel 1 ft below and above pipe with Mirafi wrap) LF 1000 $58.00 $58,000.00 $108.00 $108,000.00 $300.00 $300,000.00 $165.83 $165,830.00 $47.15 $47,150.00 $85.00 $85,000.00 $77.75 $77,750.00 20 Transformer Pad LS 1 $35,000.00 $35,000.00 $19,000.00 $19,000.00 $56,000.00 $56,000.00 $55,422.00 $55,422.00 $37,720.00 $37,720.00 $45,000.00 $45,000.00 $35,000.00 $35,000.00 21 Control Panel LS 1 $155,000.00 $155,000.00 $9,600.00 $9,600.00 $181,200.00 $181,200.00 $83,265.52 $83,265.52 $96,945.00 $96,945.00 $125,000.00 $125,000.00 $150,000.00 $150,000.00 22 Not Used LS 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 23 Electrical Main Service Conduit - 4 inch Schedule 40 PVC with Pull Boxes LF 3000 $20.00 $60,000.00 $47.00 $141,000.00 $41.00 $123,000.00 $16.57 $49,710.00 $42.09 $126,270.00 $75.00 $225,000.00 $64.00 $192,000.00 24 Fiber Optic Conduit - 2 inch Schedule 40 PVC and FOC with Pull boxes LF 3000 $32.00 $96,000.00 $37.00 $111,000.00 $42.00 $126,000.00 $12.95 $38,850.00 $43.36 $130,080.00 $75.00 $225,000.00 $69.00 $207,000.00 25 Electrical Conduit and Wire - Within Well Site LS 1 $154,000.00 $154,000.00 $154,000.00 $154,000.00 $160,900.00 $160,900.00 $44,712.56 $44,712.56 $190,325.00 $190,325.00 $35,000.00 $35,000.00 $225,000.00 $225,000.00 26 Well Main Switchboard & MCC LS 1 $123,000.00 $123,000.00 $190,000.00 $190,000.00 $143,500.00 $143,500.00 $225,049.60 $225,049.60 $133,400.00 $133,400.00 $250,000.00 $250,000.00 $150,000.00 $150,000.00 27 Instrumentation- Equipment, Conduit and Wiring fully terminated and commissioning LS 1 $23,000.00 $23,000.00 $50,000.00 $50,000.00 $36,500.00 $36,500.00 $83,331.60 $83,331.60 $196,650.00 $196,650.00 $5,000.00 $5,000.00 $72,000.00 $72,000.00 28 Automatic Transfer Switch LS 1 $24,000.00 $24,000.00 $24,000.00 $24,000.00 $27,300.00 $27,300.00 $69,856.00 $69,856.00 $25,990.00 $25,990.00 $7,500.00 $7,500.00 $30,000.00 $30,000.00 29 Furnish and Install Generator Slab and Generator LS 1 $282,000.00 $282,000.00 $349,000.00 $349,000.00 $311,300.00 $311,300.00 $321,986.60 $321,986.60 $339,135.00 $339,135.00 $335,000.00 $335,000.00 $350,000.00 $350,000.00 30 Metal Building for Generator and Motor Control Center & Concrete foundation LS 1 $234,000.00 $234,000.00 $253,000.00 $253,000.00 $330,400.00 $330,400.00 $431,943.72 $431,943.72 $315,675.00 $315,675.00 $250,000.00 $250,000.00 $421,000.00 $421,000.00 31 Electrical Testing and Arc Flash Study LS 1 $30,000.00 $30,000.00 $31,000.00 $31,000.00 $33,500.00 $33,500.00 $15,486.32 $15,486.32 $32,200.00 $32,200.00 $15,000.00 $15,000.00 $35,000.00 $35,000.00 32 Miscellaneous Electrical work including but not limited to Lights, Switches, Receptacles, Grounding, etc. for complete project LS 1 $93,000.00 $93,000.00 $68,000.00 $68,000.00 $98,900.00 $98,900.00 $8,437.00 $8,437.00 $115,000.00 $115,000.00 $18,500.00 $18,500.00 $110,000.00 $110,000.00 Total $4,343,870.00 Total $4,998,760.00 Total $5,191,070.00 Total $5,242,954.12 Total $5,990,120.05 Total $6,068,996.10 Total $6,872,370.00 Hartzell General Engineering Contractor, Inc. Brough Construction, Inc. W. M. Lyles Co The J. F. Will Company, Inc. Spiess Construction Co., Inc. HPS Mechanical, Inc. Canyon Springs Enterprises Attachment B
Attachment C

AGREEMENT
THIS AGREEMENT, made and entered into this 21st day of October 2025, by and between Hartzell General Engineering Contractor, 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: Well 15 Equipping Project (PW Bid No. 2025-04), in accordance with the Contract Documents therefore, adopted by the City Council, of Owner, as prepared by City of Santa Maria.

Total Bid of FOUR MILLION, THREE HUNDRED FORTY-THREE THOUSAND, EIGHT HUNDRED SEVENTY DOLLARS.

Contract Price in Figures $4,343,870.00

3. Contractor agrees to complete said work within the contract time of three hundred (300) 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.

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 twelve hundred ($1,200) dollars. Contractor hereby acknowledges that it has reviewed said provisions relating to liquidated damages and the amount 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.

Attachment C

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

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 following Department of Industrial Relations requirements.

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

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

CONTRACTOR: Hartzell General
Engineering Contractor, Inc.
___________________________
Charles Hartzell
President
OWNER: City of Santa Maria a
Municipal Corporation
David W. Rowlands
City Manager
ATTEST:

Donna G. Schwartz
Chief Deputy City Clerk
APPROVED AS TO FORM:
_______________________________
Risk Manager
_______________________________
City Attorney
Attachment C
EXHIBIT “A”

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

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.

Attachment C
B. Minimum Limits of Insurance
Provider shall maintain limits no less than:

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.

D. Other Insurance Requirements
The 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 Attachment C
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).

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.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Approving the Award of a Professional Services Agreement to SZS Engineering Access, Inc. for the Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan Update
Description:

The City Council will consider approving a resolution awarding a Professional Services Agreement to SZS Engineering Access, Inc. for the preparation of the City’s Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan Update.

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 award of a Professional Services Agreement to SZS Engineering Access, Inc. for the Americans with Disabilities Act SelfEvaluation and Transition Plan Update in the amount of $599,735; and

2. Authorizing the City Manager or designee to execute the agreement.

BACKGROUND:

The City of Santa Maria is required under the Americans with Disabilities Act (ADA) to identify and remove barriers that limit access to City facilities, parks, sidewalks, and programs. The City’s existing ADA Transition Plan requires updating to reflect current ADA and California Title 24 standards.

A Request for Proposals (RFP) was issued on July 11, 2025, with proposals due on August 14, 2025. The scope of work includes assessments of City-owned facilities, parks, sidewalks, and public rights-of-way; review of policies and procedures; community engagement; and preparation of an updated ADA Transition Plan. The plan will include prioritized recommendations, schedules, and cost estimates for barrier removal. Six qualified firms responded to the RFP.
2 DISCUSSION:

The selected consultant will conduct field evaluations, facilitate community workshops, and prepare a comprehensive ADA Transition Plan Update. Deliverables include ADA Facility and Park Assessment Reports, a Public Rights-of-Way Assessment Report, a Program and Policy Review, and the final Transition Plan in accessible digital and print formats. Optional services may include staff training and the development of an ADA grievance policy.

Selection of the best-qualified firms was made in accordance with the City’s Purchasing Guidelines. A selection committee, consisting of Engineering Division staff, independently evaluated and ranked the proposals. After deliberation, SZS Engineering Access, Inc., was determined to be the most qualified firm to provide the required services.

Alternative(s)
The City Council may approve the award of the contract as recommended. Alternatively, the City Council may reject all proposals and direct staff to reissue the Request for Proposals.

Fiscal Considerations
The project will be funded through the Office of the City Manager and Public Works Department’s budget, Measure A account (Alternative Transportation Enhancements).

The Professional Services Agreement will be awarded for a not-to-exceed amount of $599,735. The Measure A account will contribute $249,735 to this project. Currently $175,000 is included in the City Manager’s FY 2025-26 budget for this project. The remaining $175,000 is anticipated to come from FY 2025-26 budget savings. Staff will return to City Council at Quarter 3 if a budget transfer is required for this item.

Impact on the Community
Updating the ADA Self-Evaluation and Transition Plan will improve accessibility to City facilities, parks, sidewalks, and programs, ensuring compliance with federal and state requirements while enhancing inclusivity for residents and visitors with disabilities.

ATTACHMENT(S)
A. Resolution
B. Agreement
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING THE AWARD OF A PROFESSIONAL SERVICES
AGREEMENT TO SZS ENGINEERING ACCESS, INC. FOR THE

AMERICANS WITH DISABILITIES ACT SELF-EVALUATION AND
TRANSITION PLAN UPDATE IN THE AMOUNT OF $599,735
WHEREAS, the City of Santa Maria is required under the Americans with Disabilities Act (ADA) to evaluate and update its ADA Transition Plan to identify barriers and ensure compliance with accessibility standards; and WHEREAS, on July 11, 2025, the City issued a Request for Proposals (RFP) seeking qualified firms to prepare an ADA Self-Evaluation and Transition Plan Update; and
WHEREAS, six proposals were received and evaluated according to the criteria set forth in the RFP, and staff has determined that the most qualified consultant, SZS Engineering Access, Inc., has the necessary expertise and resources to perform the work; and
WHEREAS, the scope of work includes assessments of City facilities, parks, sidewalks, and public rights-of-way; stakeholder engagement; review of policies and procedures; and preparation of an updated ADA Transition Plan with prioritized recommendations and cost estimates.

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

SECTION 1. The City Council awards a Professional Services Agreement to SZS Engineering Access, Inc. for the Americans with Disabilities Act (ADA) Self-Evaluation and Transition Plan Update in the amount of $599,735.00; and SECTION 2. Authorize the City Manager or designee to execute agreement; and SECTION 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. ///
///
Attachment A

Page 2 of 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 21st day of October 2025.

ATTEST:

AGREEMENT FOR PROFESSIONAL SERVICES
ADA Self-Evaluation and Transition Plan Update Services This Agreement is made on October 21, 2025, by and between SZS Engineering Access 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 engineering 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 fourteen months, 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 ADA Self-Evaluation and Transition Plan Update services. 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.” Attachment B
2 Atty. Rev. 2021

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

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 agents, subcontractors and employees. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Section are not limited by the provisions of the Section relating to insurance.

3.05. Use of Subcontractors. CONTRACTOR may subcontract with third party providers that were listed in CONTRACTOR’s Response to Request for Proposals and whose rate sheets have been included in this Agreement.

Subcontractors shall be billed at the rates listed in Exhibit B. CONTRACTOR is fully responsible for the actions and omissions of any subcontractor.

CONTRACTOR must ensure subcontractor adherence to the same quality standards and assurances required of CONTACTOR. CONTACTOR shall ensure that this Agreement is incorporated by reference into any Agreement Attachment B
3 Atty. Rev. 2021
with a subcontractor and that subcontractor complies with the insurance requirements of EXHIBIT C.

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:

David Beas, P.E.

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

SZS Engineering Access Inc.

Attn: Syroun Z. Sanossian
428 J Street, Fl 4
Sacramento, CA 95814
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 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 California.

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 Attachment B
4 Atty. Rev. 2021
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. Contractor shall follow the prevailing wage requirements in Exhibit D where work qualifies for prevailing wage.

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

SZS ENGINEERING ACCESS, INC., a
California Corporation
CITY OF SANTA MARIA, a Municipal
Corporation
___________________________
By: Syroun Z. Sanossian
Principal
___________________________
Brett Fulgoni
Public Works Director
ATTEST:
___________________________
Donna G. Schwartz, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:
______________________
City Attorney
______________________
Risk Manager
Attachment B
Atty. Rev. 2021
EXHIBIT “A”

SERVICES TO BE PERFORMED
Selected firms will be expected to perform a minimum of the following tasks either within their own forces or by the use of sub-consultants identified in consultant’s proposal.

Tasks may include, but are not limited to the following:

Scope of Services
Task 1: Project Management
- Conduct a project kickoff meeting with City staff
- Develop and maintain a detailed project schedule and communications plan - Provide regular progress updates (e.g., biweekly check-ins) - Coordinate with various City departments as needed
Task 2: Public Outreach and Stakeholder Engagement
- Develop and implement a public participation plan
- Conduct at least two public meetings or workshops (in-person and/or virtual) - Develop outreach materials in accessible formats and multiple languages as appropriate
- Solicit and document input from people with disabilities, advocacy groups, and other stakeholders
- Provide summary reports of community engagement efforts Task 3: Facility and Park Barrier Assessments
- Conduct ADA accessibility surveys of City-owned facilities and parks not covered in the 2024 Parks Report
- Assess building entries, parking, routes, restrooms, counters, signage, and amenities - Provide detailed reports with photos, findings, and recommendations for each facility - Use current ADA and California Title 24 standards
Task 4: Public Rights-of-Way (PROW) Assessments
- Survey sidewalks, curb ramps, crosswalks, and pedestrian signals - Document deficiencies with location data, photos, and condition ratings - Use applicable PROWAG guidelines
- Recommend corrective actions and prioritization
Task 5: Program, Policy, and Procedures Review
- Conduct a review of City policies, programs, and practices - Interview staff or conduct surveys to evaluate service delivery and communication methods
- Identify areas needing auxiliary aids/services or modifications - Provide recommendations to improve programmatic access Attachment B
Atty. Rev. 2021
Task 6: Transition Plan Development
- Compile all findings into a comprehensive ADA Transition Plan - Include executive summary, legal overview, self-evaluation findings, barrier removal recommendations, schedule, and cost estimates
- Assign responsible departments and provide a monitoring framework - Format plan for digital and print publication, including accessible PDF Deliverables
- Project schedule and progress reports
- Public outreach summary report and documentation
- ADA Facility and Park Assessment Reports (with GIS-compatible data, photos, cost estimates)
- PROW Assessment Report (with GIS data)
- Programmatic and Policy Evaluation Report
- Final ADA Self-Evaluation and Transition Plan (editable format and accessible PDF) - Presentation to City Council or designated committee (if requested) Optional Services (Include as Separate Line Items)
- Development of an ADA Grievance Policy or update to existing policy - Interactive GIS-based dashboard or online map of barriers and remediation status - Staff training on ADA compliance and plan implementation Attachment B
Atty. Rev. 2021
EXHIBIT “B”

PAYMENT
I. Progress Authorization
Written authorization to proceed from the City authorizes the Consultant to generate the not-to- exceed cost of FIVE HUNDRED NINETY-NINE THOUSAND SEVEN HUNDRED THIRTY-FIVE DOLLARS ($599,735) in fees for all work.

Task 1: Project Management $ 11,600
Task 2: Public Outreach and Stakeholder Engagement $ 12,320 Task 3: Facility and park barrier assesments $170,790
task 4: public rights-of-way (prow) assesments $234,285 task 5: evaluate city’s ict and website $ 64,800
task 6: program, policy, and procedures Review (Self-Evaluation) $ 21,980 Task 7: Transition Plan Development $ 22,960
Reimbursables $ 61,000
Total Not-To-Exceed Cost: $599,735
II. Invoice procedure.

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

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

C. The Consultant's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subconsultants, and other direct costs incurred.

III. Maximum billable amounts
Under no circumstance shall the total of all payments to the Consultant 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".

Attachment B
Atty. Rev. 2021
Attachment B
Atty. Rev. 2021
Attachment B
Atty. Rev. 2021
EXHIBIT “C”

INSURANCE REQUIREMENTS
Consultant 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 Consultant, his/her agents, representatives, or employees. If the Consultant 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 Consultant.

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Consultant 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 Consultant'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 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 Attachment B
Atty. Rev. 2021
monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance
Consultant shall maintain limits no less than:

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.

D. Other Insurance Requirements
The 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 Attachment B
Atty. Rev. 2021
by or on behalf of the Consultant 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 Consultant’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 Consultant'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 Consultant'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. Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant 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 Attachment B
Atty. Rev. 2021
Consultant 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
Consultant 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 Consultant’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.

Attachment B
Atty. Rev. 2021
EXHIBIT “D”

PREVAILING WAGE REQUIREMENTS FOR MAINTENANCE WORK, DESIGN AND

PRECONSTRUCTION PHASES OF CONSTRUCTION, AND INSTALLATIONS The terms of this Agreement apply to all public works projects for over $1,000.

For purposes of this Exhibit, “Public Works” includes any project of a type defined in California Labor Code section 1720 when paid for in whole or in part by public funds. These projects include: construction, alteration, demolition, installation, or repair work done under contract. For purposes of this definition, "construction" includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this definition, "installation" includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.

Pursuant to California Labor Code sections 1720 and 1771, construction, alteration, demolition, installation, repair and maintenance work performed under this Agreement is subject to State prevailing wage laws. State prevailing wage laws require certain provisions be included in all contracts for public works. The Contractor and any subcontractors shall comply with all applicable State prevailing wage laws, whether included in this agreement or inadvertently omitted, including but not limited to the requirements listed below:

1. Compliance with Prevailing Wage Requirements. Pursuant to California Labor Code sections 1720 through 1861, the Contractor and all subcontractors shall ensure that all workers who perform work under this Agreement are paid not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations (DIR). This includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including but not limited to inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the post-construction phases of construction, including but not limited to all cleanup work at the jobsite.

1.1. Copies of such prevailing rate of per diem wages are on file at the City Public Works Department and are available for inspection to any interested party on request. Copies of the prevailing rate of per diem wages also may be found at http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm. The Contractor and all subcontractors shall post a copy of the prevailing rate of per diem wages determination at each job site and shall make them available to any interested party upon request.

1.2. The wage rates determined by the DIR refer to expiration dates. If the published wage rate does not refer to a predetermined wage rate to be paid after the expiration date, then the published rate of wage shall be in effect for the life of this Agreement. If the published wage rate refers to a predetermined wage rate to become effective upon expiration of the Attachment B
Atty. Rev. 2021
published wage rate and the predetermined wage rate is on file with the DIR, such predetermined wage rate shall become effective on the date following the expiration date and shall apply to this Agreement in the same manner as if it had been published in said publication. If the predetermined wage rate refers to one or more additional expiration dates with additional predetermined wage rates, which expiration dates occur during the life of this Agreement, each successive predetermined wage rate shall apply to this Agreement on the date following the expiration date of the previous wage rate. If the last of such predetermined wage rates expires during the life of this Agreement, such wage rate shall apply to the balance of the Agreement.

2. Penaltiesfor Violations. The Contractor and allsubcontractorsshall comply with California Labor Code section 1775 in the event a worker is paid less than the prevailing wage rate for the work or craft in which the worker is employed. This shall be in addition to any other applicable penalties allowed under California Labor Code sections 1720 through 1861. k

3. Payroll Records. The Contractor and all subcontractors shall comply with California Labor Code section 1776, which generally requires keeping accurate payroll records, verifying and certifying payroll records, and making them available for inspection. The Contractor shall require all subcontractors to also comply with section 1776. The Contractor and all subcontractors shall furnish records specified in section 1776 on a monthly basis, both to the City and directly to the Labor Commissioner in the manner required by California Labor Code section 1771.4. The Contractor shall ensure its subcontractors prepare and submit payroll records to the City and the DIR as required by this section. The City may require the Contractor and its subcontractors to prepare and submit records specified in section 1776 to the City and the Labor Commissioner on a weekly basis, at no additional cost to the City.

4. Apprentices. The Contractor and all subcontractors shall comply with California Labor Code sections 1777.5, 1777.6 and 1777.7 concerning the employment and wages of apprentices. The Contractor is responsible for compliance with this section for all apprenticeable occupations pursuant to California Labor Code section 1777.5(n).

5. Working Hours. The Contractor and all subcontractors shall comply with California Labor Code sections 1810 through 1815, including but not limited to: (i) restrict working hours on public works contracts to eight hours a day and forty hours a week, unless all hours worked in excess of 8 hours per day are compensated at not less than 1½ times the basic rate of pay; and (ii) specify penalties to be imposed on contractors and subcontractors of $25 per worker per day for each day the worker works more than 8 hours per day and 40 hours per week in violation of California Labor Code sections 1810 through 1815.

6. Required Provisions for Subcontracts. The Contractor shall include, at a minimum, a copy of the following provisions in any contract they enter into with a subcontractor:

California Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860 and 1861.

7. Labor Code Section 1861 Certification. In accordance with California Labor Code section 3700, the Contractor is required to secure the payment of compensation of its Attachment B
Atty. Rev. 2021
employees. By signing the Agreement, to which this is an exhibit, the Contractor certifies that:
“I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”

8. Compliance Monitoring and Enforcement. This project is subject to compliance monitoring and enforcement by the DIR. The City must withhold contract payments from the Contractor as directed by the DIR, pursuant to California Labor Code section 1727.

9. Contractor and Subcontractor Registration Requirements. The Contractor and all subcontractors shall not engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to California Labor Code section 1725.5 Contractor certifies that the Contractor has verified that all Contractor and all subcontractors (if any approved by City) used on this project are registered with the DIR in compliance with California Labor Code sections 1771.1 and 1725.5. The Contractor shall provide proof of registration for themselves and all listed subcontractors to the City at the time of signature of contract and immediately upon any changes or City’s request.

10. Stop Order. Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of California Labor Code sections 1725.5 or 1771.1, the Labor Commissioner must issue and serve a stop order prohibiting the use of the unregistered contractor or subcontractor on ALL public works until the unregistered contractor or subcontractor is registered. Failure to observe a stop order is a misdemeanor.

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Amending Professional Services Agreement with Finance DTA for the Growth Mitigation Nexus Fee Update Description:

The City Council will consider approving an amendment to the professional services agreement with Finance DTA.

RECOMMENDATION:

1. Adopt a Resolution amending professional services agreement K-PW-2023-052 with Finance DTA extending the term and approving an additional amount of $30,990 for the Growth Mitigation Nexus Fee Update; and

2. Authorize the City Manager, or designee, to execute agreement.

BACKGROUND:

City of Santa Maria awarded a professional services agreement to Finance DTA on January 15, 2024, following a formal request for proposals process. The purpose of the agreement is to update the Growth Mitigation Fee Nexus Study. The study is nearing completion, but additional time and scope is needed due to comments received at public engagement workshops.

DISCUSSION:

The original agreement, K-PW-2023-052, needs to be amended, to extend the term to December 31, 2025. Furthermore, the original not-to-exceed amount of the agreement is $68,890 and needs to be increased by an additional $30,990 in order to perform additional analysis and public engagement that was not included in the original scope of the agreement.

The original agreement contemplated six in-person meetings with City staff and the public. These six meetings have already been held. Additionally, as a result of the meetings, the public has requested additional analysis to calculate the fees on a project list basis. These lists are being refined and will require at least one additional public 2 engagement session, and a presentation to City Council. Staff anticipates bringing a final document to Council by the end of the year.

Alternative(s)
City Council may direct staff to terminate the contract or re-advertise the request for proposals to complete the study with the consultant chosen through that process. Each of these alternatives would require additional time and funds to complete the fee update.

This would maintain growth mitigation fee rates at the rate adopted in 2019, which have not been updated for inflation, construction cost increases, and the project lists have not been updated.

Fiscal Considerations
The approved budget for this study update was $120,000; these funds have not been reallocated to other projects. Approval of this amendment would still complete the study under the approved $120,000 amount previously budgeted.

Impact on the Community
Completion of the Growth Mitigation Fee Nexus Study will ensure that new development pays its way for capital improvements necessary to maintain existing levels of service as the City grows.

ATTACHMENT(S)
A. Resolution
B. Amended Professional Services Agreement
C. Finance DTA Scope and Fee Proposal
D. Original Professional Services Ag, K-PW-2023-052
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

AMENDING PROFESSIONAL SERVICES AGREEMENT
K-PW-2023-052 WITH FINANCE DTA EXTENDING THE TERM
AND APPROVING AN ADDITIONAL AMOUNT OF $30,990

FOR THE GROWTH MITIGATION NEXUS FEE UPDATE
WHEREAS, City of Santa Maria and Finance DTA entered into agreement K-PW2023-052 on January 15, 2024; and WHEREAS, the original professional services contract scope and term are nearing completion and additional tasks and time are needed to satisfactorily complete the Growth Mitigation Nexus Fee update; and
WHEREAS, Finance DTA has provided a proposal scope and fee that has been reviewed and approved by the Public Works Department to complete the Growth Mitigation Nexus Fee update.

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

SECTION 1. Approving Contract K-PW-2023-052 as amended to increase the not-to-exceed amount by $30,990 for a total contract amount of $99,880. Contract K-PW2023-052 is also amended to extend the term to December 31, 2025; and SECTION 2. Authorize the City Manager or designee to execute amended agreement; and
SECTION 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.

Attachment A

Page 2 of 2 ends

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 21st day of October 2025.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager
Attachment B
Atty. Rev. 2022
AMENDMENT NO. 1 TO AGREEMENT FOR PROFESSIONAL SERVICES
This Amendment No. 1 to that certain Agreement for Professional Services Contract No.

K-PW-2023-052, dated January 15, 2024, by and between the City of Santa Maria and Finance DTA (the “Agreement”) is made on, by and between, Finance DTA, 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:

1. WHEREAS, the City of Santa Maria (“City”) and Finance DTA (“Contractor”) entered into that certain Agreement for Professional Services dated January 15, 2024, for Professional Services to prepare Growth Mitigation Fee Nexus Study (the “Agreement”); and

2. WHEREAS, the City has modified the scope of work for the agreement which requires additional time and tasks; and

3. WHEREAS, the parties desire to amend the Agreement to incorporate the additional scope of work consistent with the objectives, goals, and activities set forth in the Agreement, including the Final Impact Fee Methodology Report deliverable; and

4. WHEREAS, the parties wish to extend the Agreement’s term through December 31, 2025, to allow for completion of the additional scope of work; NOW, THEREFORE, IT IS AGREED:

1. The scope of services is expanded to include all work necessary to implement the City’s desired changes to reflect the coordination between the City, Contractor, and public engagement with development community, as set forth in the proposal prepared by Contractor and corresponding task authorizations issued by the City.

2. This Agreement shall have a not-to-exceed amount of $30,990 during the extension period, based on the scope and rate identified in Contractor’s Proposal dated September 22, 2025.

3. The Agreement’s term is hereby extended to expire at 11:59 p.m. on December 31, 2025.

4. All other terms of the Agreement remain unchanged.

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

Attachment B
Atty. Rev. 2022
FINANCE DTA, a California Corporation
___________________________
Kuda Wekwete
Managing Director
CITY OF SANTA MARIA, a Municipal
Corporation
Brett Fulgoni
Public Works Director
ATTEST:

Donna G. Schwartz
Chief Deputy City Clerk
APPROVED AS TO FORM:
_______________________________
Risk Manager
_______________________________
City Attorney
Attachment C
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612

CITY OF SANTA MARIA
AB 1600 DEVELOPMENT IMPACT FEE STUDY UPDATE
SEPTEMBER 22, 2025
Prepared for:

City of Santa Maria
Public Works Department
110 S. Pine Street, Suite 221
Santa Maria, CA 93458
Attention: Mark Mueller, Principal Civil Engineer
Project Contact:

Kuda Wekwete
Managing Director, DTA
18201 Von Karman Avenue, Suite 220
Irvine, CA 92612
Phone: (800) 969-4DTA x204
Attachment C
TABLE

OF CONTENTS

SECTION PAGE
I SCOPE OF WORK ................................................................ 1 II COST PROPOSAL ................................................................ 3 A Disclaimer ................................................................................ 3 B Limitations............................................................................... 4 Attachment C
1 SECTION I

SCOPE OF WORK

City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update www.FinanceDTA.com

I SCOPE OF WORK
DTA Public Finance, Inc. (“DTA”), formerly David Taussig & Associates, is pleased to submit this proposal to the City of Santa Maria (the “City”). It is our understanding that the City is seeking a proposal to update the previously provided Assembly Bill (“AB”) 1600 Development Impact Fee (“DIF”) Nexus Study (“Fee Study”) by evaluating all departments using a Plan-Based Methodology. This updated study would recommend the appropriate fee justification methodology and fee levels to support specific types of City-selected capital facilities needed to serve new growth. Work products stemming from the work plan described in this section will include a memorandum (“memo”) summarizing the fee methodology and rewriting the Nexus Study to accommodate the Plan-Based Methodology.

Task 1 – Review Facility/Capital Needs and Levels of Service This task entails the review of the facilities and capital needs required to serve new development pursuant to the City’s inventory list provided September 5, 2025 (‘Inventory List”). DTA will consider updates to the City’s current impact fees related to Police Facilities, Fire Facilities, Library Facilities, Traffic Facilities, Utilities Administration, Park Recreation Facilities, Storm Drain Facilities, Consolidated Corporate Yard, Water Facilities, and Wastewater Facilities.
1A Facilities List: Based on the Inventory List provided by the City, DTA shall prepare a facilities needs list that details the new facilities and equipment to serve new development in the City. 1B Review Cost Estimates: DTA’s engineering and technical staff will, as necessary, apply inflation and cost-of-living escalators to the City’s inventory to determine future costs, review and/or refine existing cost data, examine major sources of revenue to fund the construction of new public facilities, and provide a proportional estimate between projected costs for new facilities and estimated revenue from mitigation fees and other sources.

Task 2 – Determine Fee Levels
This task entails calculating the fee amounts based upon the dwelling unit and commercial/industrial development projections, facilities needs, and costs determined by applying the Plan-Based Methodology.
2A Calculate Recommended Fee Amounts: DTA shall calculate fees for the City by computing each fee to be levied. This work will be done in a spreadsheet format. DTA will also evaluate this data in comparison to surrounding cities so as to arrive at comparable and palatable fee levels.
2B Document Fee Derivation: DTA shall document the methodology utilized for the fee calculation model in such a way that can be understood by the City and public. DTA shall prepare written statements documenting the validity of the methodology for deriving each of the fees for the City. These statements will be made to meet the requirements of AB 1600 and documented in the Final Report discussed below.

Deliverables: Proposed Fee Levels; Brief Report on Similar Jurisdictions’ DIFs, Including a Summary Table

Attachment C
2 SECTION I

SCOPE OF WORK

City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update www.FinanceDTA.com
Task 3 – Prepare Draft and Final Reports
This task entails the preparation of the Draft and Final Reports for consideration by the City Council and City staff.
3A Prepare Draft Report for Comments: DTA will prepare the Draft Report for review and consideration by City staff. The Draft Report will be prepared under the standards of AB 1600 and is expected to include an executive summary, population projections, the facilities and improvements list, fee calculations, recommended fee levels, and the suggested process for keeping fees current.
3B Prepare Final Report: Based on the incorporation of City staff comments and concerns on the Draft Report, DTA will prepare the Final Report for presentation to the City Council and City staff.

Deliverables: Draft and Final Reports
Task 4 – Attend Meetings and Public Outreach
DTA will attend up to two (2) virtual meetings to meet with City staff, two (2) virtual meetings to meet with the development community, and one (1) in-person meeting to meet with the City Council.

Attachment C
3 SECTION II

COST PROPOSAL

City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update www.FinanceDTA.com

II COST PROPOSAL
Fees for services shall be charged on an hourly basis according to the rates set forth in the fee schedule below, with invoices being submitted to the City monthly. The estimated fee for the Fee Study shall not exceed $28,990 for the Scope of Work, plus $2,000 in out-of-pocket expenses. Fees for services shall be charged according to the professional services fee schedule identified in Table 1.

For your reference, DTA’s hourly rate schedule is provided in the table below.

Table 1: DTA’s Fee Schedule
Labor Category Labor Rate
President/Managing Director $325/Hour
Senior Vice President $300/Hour
Vice President $275/Hour
Senior Manager $230/Hour
Manager $215/Hour
Senior Associate $195/Hour
Associate III $185/Hour
Associate II $175/Hour
Associate I $160/Hour
Research Associate II $150/Hour
Research Associate I $135/Hour
Out-of-pocket and administrative expenses shall be equal to 3% of DTA’s billings for labor, plus travel expenses and any outside vendor payments, not to exceed $2,000. All hourly rates for services apply through June 30, 2026, and are subject to a cost-of-living increase at that time. On or about the first two weeks of each month during which consulting services are rendered hereunder, DTA shall present to the City an invoice covering the current consulting services performed and reimbursable expenses incurred pursuant to this Notice of Authorization. Each invoice submitted for payment shall contain a brief description of the work billed on that invoice, total billed to date, total paid to date, and amount remaining. Invoices shall be paid by the City within 30 days of the date of each invoice. A 1.2% charge may be imposed monthly against accounts that are not paid within 45 days of the date of each invoice. The prevailing party in any legal action brought by one party against the other and arising out of this Consultant Agreement shall be entitled, in addition to any other rights and remedies it may have, to reimbursement for its expenses, including court costs and reasonable attorneys’ fees.

A Disclaimer
While DTA has a fiduciary responsibility as a licensed Municipal Advisor, DTA is not, unless otherwise stipulated, acting as the City’s Municipal Advisor. The services discussed herein do not constitute any financial advice or fall under the category of municipal advisory services as defined by the SEC.

Attachment C
4 SECTION II

COST PROPOSAL

City of Santa Maria September 22, 2025
Proposal for AB 1600 Development Impact Fee Study Update www.FinanceDTA.com
B Limitations
The labor costs in the table above include up to two (2) virtual meetings to meet with City staff, two (2) virtual meetings to meet with the development community, and one (1) in-person meeting to meet with City Council. Attendance at more than one (1) in-person meeting, detailed written responses to resolve disputes, or the preparation of more than one set of major revisions to the Draft Report will be classified as additional work and may require further billing at the hourly rates identified in Table 1 if the maximum fee level has been exceeded. Other examples of additional work shall include:

Additional analyses based on revised assumptions requested by the City, including possible changes in the needs list, infrastructure costs, population projections, future land uses, and related data once the preparation of the Draft Report has been initiated, as well as adjustments to assumptions once the Draft Report has been approved; Additional meetings or lengthy negotiations with stakeholders, including representatives of the Building Industry Association (“BIA”);
Tasks related to litigation by stakeholders should it occur once the Fee Study has been completed; Any work related to litigation or any claim or liability arising out of or incident to the April 12, 2024, U.S. Supreme Court decision in Sheetz vs. County of El Dorado asking the California courts to reevaluate impact fees adopted under the California Mitigation Act to ensure they do not violate the U.S. Constitution’s Fifth Amendment Takings Clause, including but not limited to expert witness services; and
Actual implementation of the fee program(s); and
The maximum fee listed above assumes the review and implementation of the fee program with a schedule between initiation of services and public outreach that is within the proposed time frame according to the City’s specifications.

Attachment C
18201 VON KARMAN AVENUE, SUITE 220
IRVINE, CA 92612
PHONE: (800) 969-4DTA
www.FinanceDTA.com
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
Attachment C

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COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Authorizing Final Payment and Reaffirmation of Santa Maria Regional Transit Electric Bus Purchase Through State Contracts
Description:

The City Council will consider authorizing final payment and reaffirming to utilize State of California and State of Washington Electric Bus Consortium Contracts to complete the purchase of electric buses for Santa Maria Regional Transit.

RECOMMENDATION:

1. Adopt a Resolution authorizing execution of the final payment and reaffirmation to New Flyer and Gillig for the purchase of electric buses procured under the State of California and State of Washington Electric Bus Consortium Contracts that were active at the time of the original orders; and

2. Authorize the City Manager, or designee, to execute the final payment.

BACKGROUND:

In compliance with State mandates requiring the transition to a 100 percent zero-emission bus (ZEB) fleet, the City's Transit Division ordered electric buses from New Flyer, Proterra and Gillig using valid cooperative purchasing contracts issued by the State of California Department of General Services (DGS) and the State of Washington. While most buses have already been delivered and paid for under the City’s 2018 Purchasing Policy, final payment on one New Flyer has been delayed due to subsequent technicalities and changes in the City’s 2025 Financial Policies. This delay has created a procedural issue because the DGS contract has since expired, and the City's new 2025 Purchasing Policy includes language that seems to contradict staff's ability to "grandfather-in" the original Purchase Order (PO). As a result, staff's authority to process the final payment for the bus could be called into question. This matter is being brought to the City Council to ensure a resolution that the City can undoubtedly and lawfully issue the final payment. 2 DISCUSSION:

History: Transition to Zero Emission Buses
On December 17, 2018, the California Air Resources Board (CARB) adopted the Innovative Clean Transit (ICT) Rule, which requires all public transit agencies in California to convert to a ZEB fleet by 2040. A "Zero-Emission Bus" is defined as a bus with zero tailpipe emissions. Consequently, vehicles that run on diesel, compressed natural gas, propane, or any other fossil or nonrenewable fuel, including hybrids, do not qualify as ZEBs due to their tailpipe emissions.

In conformity with the ICT requirements, the Santa Maria City Council adopted the recommended Santa Maria ICT Rollout Plan (Resolution No. 2023-82) at the May 16, 2023, meeting. This plan outlines the methods by which the City’s Transit Division will comply and fully transition to a ZEB fleet. Since the plan's adoption, the Transit Division has begun the transition by ordering electric vehicles in line with adopted budgets and purchasing policies.
2018 Purchasing Policy
Within the City’s 2018 adopted Purchasing Policy, under which the original electric bus purchases were made, it states the following:

Cooperative purchasing is used by municipalities in the purchase of goods and services.

This arrangement offers the participants significant economies of scale. Although one municipality may issue specifications and receive bids, each entity independently executes its own contract, administers the procurement function, and finances the purchase. This is an acceptable practice that allows municipal agencies to “piggy-back” on contracts for services and supplies, issued by a wide range of other governmental agencies. Cooperative purchasing agreements may be entered into with federal, state, city governments, public or quasi-public entities, and non-profit entities. The Purchasing Agent may buy directly from a vendor under the cooperative purchasing program if the public interest and convenience would be best served by utilizing another entity’s contract for competitive pricing of goods and/or services

Similar language is found in the City’s adopted 2025 Purchasing Policy.

ICT Plan, Cooperative Purchase, California DGS and State of Washington Section 13.4 of the City’s adopted ICT plan echoes the value of using a cooperative agreement for the purchase of ZEB’s, by which it reads:

13.4 STATE OF CALIFORNIA’S DEPARTMENT OF GOODS AND SERVICES (DGS) The State of California’s Department of Goods and Services (DGS) has just completed an extensive Request for Proposals for ZEBs. All public transit agencies will be able to participate from this RFP. Given that this streamlines the acquisition process, helps ensure a vetted product and secures competitive pricing, this will be the likeliest source from which ZEBs are selected for purchase. The CA DGS contract is likely to provide multiple vehicle options for purchase from today’s leading ZEB manufacturers. While the City remains agnostic to brands and allows for an open, fair and competitive purchasing 3 processes, early indications show that qualifying participating ZEB manufacturers possibly include: BYD, Gillig, New Flyer and Proterra vehicles. Pricing for these vehicles will be dependent on the State of California’s Department of Goods and Service contract.

Most vehicle procurements are expected to take anywhere from 14 to 18 months from the Notice to Proceed to until delivery of the vehicle.

Since 2022, all Transit Division bus purchases have 1) been pursued in compliance of ICT Rules by focusing on ordering ZEBs, 2) daylighted and memorialized in the recommendation to purchase electric buses throughout its various adopted 2-Year Budget cycles, and 3) purchased by leveraging California and Washington issued consortium contracts, as recommended in the ICT Plan, in order to award the purchase to best possible price, a vetted electric vehicle and in conformity with provisions of the City’s piggy-backing Purchasing Policies.

Ambiguity and New Conflict
Within the same 2018 Purchasing Policy, under which the original ZEB purchases were originally made, it reads:

When City Council approves the two-year budget, the schedule of authorized equipment will also be considered approved. This City Council approval allows the departments to follow administrative purchasing procedures (three quotes, etc.) and purchase said equipment without obtaining specific City Council approval for each piece of equipment.

One interpretation of this language is that by virtue of the electric buses being adopted in the Transit Enterprise Funds Budget, no other City Council action is needed as long as the purchasing agent (i.e. Transit Division) follows the Purchasing Policy. In this case, leveraging a State-issued Cooperative Purchase contract with bus manufacturers for the Transit Division to procure the City’s electric buses, as approved in the 2-year budget. No other City Council action was sought under this interpretation after the buses were adopted in the Transit two-year budget.

The Standing Issue
Specifically, the California DGS Cooperative Purchasing contract, which was used to purchase New Flyer electric bus purchases, was issued on December 16, 2019, and expired on December 15, 2024. Although all electric bus orders were originally placed with approved Purchase Order(s) almost two years ago while the DGS contract was active, a new replacement PO must now be issued in the City's new Enterprise Resource Planning (ERP) system, Workday, which went live on July 2, 2025, concurrently with a new 2025 Purchasing Policy.

However, the DGS contract expired before the City could issue payment for the third and final New Flyer electric bus, which was delivered in May 2025. Payment for this bus had been temporarily withheld until the manufacturer resolved outstanding issues, which has since been resolved. The current Purchasing Policy is unclear on whether staff have the authority to "grandfather-in" the original PO to allow for payment now that the DGS contract has expired. This situation could also affect six other electric Gillig buses 4 procured using a similar method of using a state consortium contract before new purchasing policies were put into place.

Further, Resolution 2004-31 in Purchasing Guidelines states:

The Purchasing Agent finds that the public interest and convenience would be best served by utilizing another entity's contract for competitive pricing of goods and services, the Purchasing Agent may buy directly from a vendor if the contract was awarded within the last twelve months and the contract was for identical or for nearly identical goods and/or services.

The existence of this language in the newly adopted 2025 Purchasing Policy, which requires that the cooperative agreement must have been awarded within the last twelve months, adds an additional level of ambiguity for what staff’s delegated authority is able to pursue without additional City Council action.

Conclusion
The Transit Division ordered buses in good faith, following the direction of the City Council's adopted ICT Plan and leveraging an approved, valid and in effect cooperative purchasing method. However, a combination of delayed payment, changes in the ERP system, the introduction of a new 2025 Purchasing Policy, the expiration of the DGS contract, and new/ambiguous language has created a situation where staff’s delegated authority to issue the final payment could be called into question.

Alternative(s)
This issue requires City Council ratification because the payment for the electric bus is still necessary, but now subject to conflicting purchasing policies. Although the bus was ordered under a valid cooperative agreement, that contract expired before payment could be finalized. For the City to legally complete the transaction and avoid potential scrutiny, the City Council must formally approve the consortium contracts to issue payment, essentially "ratifying" the original commitment despite the new procedural inconsistencies. This action will provide clear authorization for staff to proceed and ensure that the City remains compliant with both ICT regulations, financial regulations and obligations.

Fiscal Considerations
The City of Santa Maria’s Transit Division is an Enterprise Fund with its own sources of financial support that have no impact on the City’s General Fund. Specifically, buses are bought with a combination of Federal and State funding appropriated specifically for the purchase of electric transit vehicles. As a Federal Transit Administration (FTA) funding recipient, the Transit Division is also subject to their rules. Although prior electric bus purchases have been given a clean bill of health by the FTA’s subsequent triennial reviews, this additional City Council action gives greater conformity to purchasing rules for both organizations, regardless of the interpretation of what is or is not actually required in order to exercise a piggy-back purchase option.
5 Impact on the Community
There is no impact on the community. This is only an administrative action to add greater conformity with both federal and local purchasing requirements and to insulate the City for alternative interpretations of the Purchasing Policy.

ATTACHMENT(S)
A. Resolution
B. Gillig Contract
C. New Flyer Contract
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA,

AUTHORIZING EXECUTION OF THE FINAL PAYMENT AND

REAFFIRMATION TO NEW FLYER AND GILLIG FOR THE

PURCHASE OF ELECTRIC BUSES PROCURED UNDER THE

STATE OF CALIFORNIA AND STATE OF WASHINGTON

ELECTRIC BUS CONSORTIUM CONTRACTS THAT WERE

ACTIVE AT THE TIME OF THE ORIGINAL ORDERS
WHEREAS, the California Air Resources Board adopted the Innovative Clean Transit (ICT) Rule, requiring all public transit agencies in California to transition to a 100% zero-emission bus (ZEB) fleet by 2040; and
WHEREAS, in compliance with the ICT requirements, the City Council of the City of Santa Maria adopted the Santa Maria ICT Rollout Plan on May 16, 2023, which outlines the methods for the City’s Transit Division to fully transition to a ZEB fleet; and WHEREAS, in good faith and in accordance with the adopted ICT plan and the City's 2018 Purchasing Policy, the Transit Division ordered electric buses from New Flyer, Proterra, and Gillig using valid and active cooperative purchasing contracts with the State of California Department of General Services (DGS) and the State of Washington; and WHEREAS, the electric buses have been delivered, but final payment has been delayed due to subsequent technicalities, changes in the City's Financial Policies, and the expiration of the aforementioned DGS contract, creating a procedural ambiguity regarding the City Manager's delegated authority to process the final payment; and WHEREAS, the issuance of a new Purchase Order for the final payment is required due to the transition to the new Workday Enterprise Resource Planning (ERP) system, and the City’s newly adopted 2025 Purchasing Policy contains language that has created an additional level of ambiguity, requiring formal City Council action to authorize the payment; and
WHEREAS, this matter is being brought to the City Council to ensure that the City can legally and lawfully issue the final payment for the electric buses and honor its financial obligations to the vendors, thereby insulating the City from potential scrutiny.

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

SECTION 1. The City Council hereby ratifies and confirms the purchases of the electric buses from New Flyer and Gillig, Inc. made by the City’s Transit Division using the cooperative purchasing contracts issued by the State of California Department of General Services (DGS) and the State of Washington; and Attachment A

Page 2 of 2 ends

SECTION 2. The City Council hereby authorizes and directs the City Manager, or their designee, to execute the final payment and issue a new Purchase Order for the electric buses based on the original orders placed while the cooperative purchasing contracts were active; and
SECTION 3. This Resolution shall take effect immediately upon its adoption; and SECTION 4. 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, California, held this 21st day of October 2025.

ATTEST:

Contract # E194- 81688
Gillig Electric Buses
(Page 2 of 14)
1 DATE: 7/1/19
2 CONTRACT PERIOD: 7/1/19 thru 6/30/21
3 PURPOSE: Contract Award
4 AUTHORIZED USERS:

Ref. Section 2
5 CONTRACTOR’S eVA
VENDOR ID#:

E39326
6 CONTRACTOR: Gillig, LLC
7 CONTRACTOR CONTACT:

Ref. Section 1
8 PAYMENT TERMS: Net 30
9 DELIVERY: F.O.B. Destination
10 MINIMUM ORDER: No Minimum Order Required
11 CONTRACT PRICES: Ref. Section 4
12 DPS CONTRACT OFFICER:

Dennis Donahue
Phone: 804-786-5410
[email protected]

ADDITIONAL COPIES OF CONTRACTS AND ANY ASSOCIATED CONTRACT CHANGES ARE AVAILABLE ON THE DPS WEBSITE: www.eva.virginia.gov under the State Contracts webpage.

This contract is the result of a competitive bid program and its use is optional. This contract is a cooperative agreement. Therefore, in addition to Authorized Users referenced above, other government bodies and entities outside of Virginia may use this contract.

Contract # E194- 81688
Gillig Electric Buses
(Page 3 of 14)

TABLE OF CONTENTS

SECTION DESCRIPTION
1 CONTRACTOR INFORMATION
2 GENERAL INSTRUCTIONS
3 SCOPE OF WORK AND SPECIAL TERMS AND CONDITIONS
4 GOODS & PRICING SCHEDULE, WARRANTY INFORMATION
5 CONTRACTOR SERVICE AND PARTS SUPPORT DATA
6 THIRD PARTY PARTICIPANTS REPORT
7 FEDERAL CERTIFICATIONS
Contract # E194- 81688
Gillig Electric Buses
(Page 4 of 14)

1. CONTRACTOR INFORMATION
Contractor
eVA Vendor
ID# Location Address Contact Information
Gillig, LLC E39326 451 Discovery Drive
Livermore, CA 94551
James Ryan, Sales Manager
Tel.: 510-325-6958
Fax: 510-785-6819
Email: [email protected]
Contract # E194- 81688
Gillig Electric Buses
(Page 5 of 14)

2. GENERAL INFORMATION

1. Ordering Method: All departments, institutions and agencies of the Commonwealth of Virginia (Commonwealth) using this contract must order items by issuing purchase orders through eVA. The orders will be governed by this agreement and the terms and conditions contained in the separate agreement for participation in eVA executed by the contractor.

2. Purchase Order Information: When placing an eVA catalog order, each line of the requisition must be identified with the correct Contractor Name and Location (eVA Vendor ID#), contract item number, full item description and the contract unit price. The exact Contract Number, as shown on page 1, must be inserted in the Contract Number field for each line item of the eVA requisition. Purchase orders not bearing the correct contract number in the appropriate location will be non-compliant and may not be considered a purchase against this contract.

3. Ordering Entity Acceptance: Inspection and acceptance upon delivery and approval of contractor’s invoice is the responsibility of the receiving entity.

4. Complaints: Any complaint that is due to a violation or breach of the Contract provisions shall be reported on an official DPS “PROCUREMENT COMPLAINT FORM.” To facilitate notification, this form shall be completed by the Virginia ordering entity and sent to the contract vendor, with a copy sent to DPS to the address shown on the form. Contract vendors shall also use this form to initiate complaints concerning Virginia entities. This form may be downloaded from the internet at the following link http://eva.virginia.gov and clicking on “I Buy for Virginia.”

5. Changes: Any changes whether for increases or decreases in pricing, delivery terms or additional options must be approved by the Division of Purchases and Supply in advance of issuance of the purchase order.

Disputes between the ordering agency and the vendor will be resolved in accordance with the terms of the contract and any change orders/renewals unless prior approval was granted by DPS.

6. Authorized Users: Unless otherwise instructed by the Division of Purchases and Supply (DPS), all state agencies, institutions of higher education, and other public bodies and entities are authorized to use the Contract by the Code of Virginia § 2.2-1110.Additionally, those specified by the Code of Virginia §2.2- 1120, to include private institutions of higher education chartered in Virginia and granted tax-exempt status under §501(c)(3) of the Internal Revenue Code.

The Metropolitan Washington Council of Governments (MWCOG) and members of MWCOG shall also be included as Authorized Users of this Contract.

Third party users as referenced herein Section 3-E “Use of Agreement by Third Parties.”

7. Copies of Contract-Related Documents shall be requested directly from the contractor. Such documents may include the solicitation (Invitation for Bids- IFB #2712 dated 3/11/19), contractor’s bid response, signed FTA Certificates i.e. Buy America, Compliance w/ Buy America Rolling Stock Requirements and other related documents.

Contract # E194- 81688
Gillig Electric Buses
(Page 6 of 14)

3. SCOPE OF WORK AND SPECIAL TERMS AND CONDITIONS
A. SCOPE OF WORK
Contractor shall provide and deliver 12 year, low floor battery- powered electric transit buses per the specifications described in Section 4 “Goods & Pricing Schedule, Warranty Information” and be compliant with current Federal Transit Administration (FTA) and Fixing Americas Surface Transportation (FAST) Act regulations, upon delivering and invoicing.

All buses shall be powered by an electric propulsion system and be new and unused. Buses shall have a minimum expected life of twelve (12) years or 500,000 miles, whichever comes first.

B. CANCELLATION OF CONTRACT
The purchasing agency reserves the right to cancel and terminate any resulting contract, in part or in whole, without penalty, upon 60 days written notice to the contractor. In the event the initial contract period is for more than 12 months, the resulting contract may also be terminated by the contractor, without penalty, after the initial 12 months of the contract period upon 60 days written notice to the other party. Any contract cancellation notice shall not relieve the contractor of the obligation to deliver and/or perform on all outstanding orders issued prior to the effective date of cancellation.

C. TERM / RENEWAL OF CONTRACT
The initial period of the contract will be for two (2) years, with three (3) potential one – year renewal periods. Therefore the initial term will be July 1, 2019 through June 30, 2021. This contract may be renewed by the Commonwealth upon written agreement of both parties under the terms of the current contract, and at a reasonable time (approximately 90 days) prior to the expiration.

D. PRICE ESCALATION / DE-ESCALATION: Price adjustments may be permitted for changes in the contractor’s cost of materials not to exceed the increase in the following index/indices: Bureau of Labor Statistics “Table 9-Producer Price Index for Truck and Bus Bodies, Series No. 1413.” No price increases will be authorized for 365 calendar days after the effective date of the contract. Price escalation may be permitted only at the end of this period and each 365 days thereafter and only where verified to the satisfaction of the purchasing office. However, “across the board” price decreases are subject to implementation at any time and shall be immediately conveyed to the Commonwealth.

Contractor shall give not less than 60 days advance notice of any price increase to the purchasing office. Any approved price changes will be effective only at the beginning of the calendar month following the end of the full 60- day notification period. The contractor shall document the amount and proposed effective date of any general change in the price of materials. Documentation shall be supplied with the contractor’s request for increase which will: (1) verify that the requested price increase is general in scope and not applicable just to the Commonwealth of Virginia; and (2) verify the amount or percentage of increase which is being passed on to the contractor by the contractor’s suppliers.

The purchasing office will notify the using agencies and contractor in writing of the effective date of any increase which it approves. However, the contractor shall fill all purchase orders received prior to the effective date of the price adjustment at the old contract prices. The contractor is further advised that decreases which affect the cost of materials are required to be communicated immediately to the purchasing office.

E. USE OF AGREEMENT BY THIRD PARTIES
In accordance with the Code of Virginia § 2.2-4304, entitled “Cooperative Procurement,” the intent of this Contract is to allow for such cooperative procurement to the maximum extent possible outside the Commonwealth. Accordingly, any public body or public institution or other FAST Act grantee outside the Commonwealth shall also be deemed an “Authorized User” for purposes of using this Contract and may access and use this Contract, in accordance with the ordering provisions governing this Contract, together with all other Contract terms and conditions herein.

Participation in this cooperative procurement by any Authorized User in Virginia or outside Virginia is optional.

Contract # E194- 81688
Gillig Electric Buses
(Page 7 of 14)
This Contract may be used by Authorized Users to purchase goods and/or services in accordance with prices listed in Section 4 “Goods & Pricing Schedule, Warranty Information” attached hereto and incorporated herein.

This is a master contract and no modification of the Contract or an assignment agreement from Virginia is required for a third party Authorized User to participate.

Copies of Contract-Related Documents shall be requested directly from the contractor. Such documents may include the solicitation (Invitation for Bids- IFB #2712 dated 3/11/19), contractor’s bid response, and signed FTA certificates i.e. Buy America, Compliance w/ Buy America Rolling Stock Requirements and other related documents.

Each Authorized User shall accept sole responsibility for placing orders and/or payments directly with the Contractor and will fully and independently administer their use of this Contract to include contractual disputes, and invoicing and payments, without direct involvement from DPS. The Commonwealth and DPS shall have no liability or responsibility for any payment or performance dispute associated with an order, and the Authorized User and Contractor agree that they shall look solely to each other for any relief associated with the Order. In no event shall any dispute or breach regarding one or more orders by Authorized Users be grounds for the Contractor to terminate this Contract or pursue any other sort of relief against the Commonwealth, DPS, or Authorized Users who did not place the order(s) in dispute.

Notwithstanding General Term and Condition “B” (“APPLICABLE LAWS AND COURTS”), with respect to Authorized Users located outside of Virginia, the laws and regulations of the state in which the Authorized User is located, without regard to such state’s choice-of-law provisions, will govern this Contract as it applies to orders placed by that Authorized User, and any litigation with respect to that Authorized User’s orders shall be brought and maintained only in the appropriate state court of competent jurisdiction of the state in which the Authorized User is located.

Notwithstanding General Term and Condition “A” (“VENDORS MANUAL”), the procedure for filing contractual claims against an Authorized User located outside Virginia shall be the procedure for filing claims against public bodies as specified by the laws of the state in which that Authorized User is located. If the laws of the state in which an Authorized User is located require inclusion of specific terms in contracts of public bodies in that state, then those terms are deemed to be incorporated by reference in this Contract for purposes of orders from that Authorized User, unless such terms impose materially greater burdens on the Contractor and the Contractor notifies the Authorized User of this fact in writing promptly after receiving the order, in which case the order shall be deemed cancelled. The above incorporation of terms applies only if the Authorized User includes in its purchase order a specific reference to the specific statutes or regulations of that state which specify the additional required terms.

The use of the Contract does not preclude any participating Authorized User from using other agreements or competitive processes as their needs may require.

F. AUTHORIZED REPRESENTATIVES
This Contract may be modified in accordance with §2.2-4309 of the Code of Virginia. Such modifications may only be made by the representatives authorized to do so denoted below, or their duly authorized designees. No modifications to this contract shall be effective unless in writing and signed by the duly authorized representative of both parties, delineated below. No term or provision hereof shall be deemed waived and no breach excused unless such waiver or consent to breach is in writing.

Authorized Representatives:

COMMONWEALTH OF VIRGINIA
Dennis Donahue, Contract Officer
1111 East Broad Street
Richmond, VA 23219
Tel.: 804-786-5410
Fax: 804-786-5413
Email: [email protected]

GILLIG, LLC
Joseph Policarpio, Vice President
Gillig, LLC
451 Discovery Drive
Livermore, CA 94551
Tel.: 800-735-1500
Fax: 510-785-6819
Email: [email protected]
Contract # E194- 81688
Gillig Electric Buses
(Page 8 of 14)
G. CONTRACTUAL DISPUTES
In accordance with Section 2.2-4363 of the Code of Virginia, Contractual claims, whether from money or other relief, shall be submitted in writing to the purchasing agency no later than 60 calendar days after final payment; however, written notice of the Contractor’s intention to file such claim must be given to such agency at the time of the occurrence or beginning of the work upon which the claim is based. Pendency of claims shall not delay payment of amounts agreed due in the final payment. The purchasing agency shall render a final decision in writing within thirty (30) days after its receipt of the Contractor’s written claim.

The Contractor may not invoke any available administrative procedure under Section 2.2-4365 of the Code of Virginia nor institute legal action prior to receipt of the purchasing agency’s decision on the claim, unless that agency fails to render its decision within thirty (30) days. The decision of the purchasing agency shall be final and conclusive unless the Contractor, within six (6) months of the date of the final decision on the claim, invokes appropriate action under Section 2.2-4364, Code of Virginia, or the administrative procedure authorized by Section 2.2-4365, Code of Virginia.

The Department of General Services, its officers, agents and employees, including without limitation, the Contracting Officers, are executing this Agreement and any Orders issued hereunder, solely in its or their statutory and regulatory capacities as agent of the Commonwealth agency purchasing and receiving the goods or services in question sand need not be joined as a party to any dispute that may arise there under.

In the event of any breach by the Commonwealth, Contractor’s remedies shall be limited to claims for damages and Prompt Payment Act interest and, if available and warranted, equitable relief, all such claims to be processed pursuant to this Section. In no event shall Contractor’s remedies include the right to terminate any license or support services hereunder.

H. DELIVERY AND PRICING
Base prices for third party customers outside of Virginia, is included in Section 4 “Goods and Pricing Schedule,” Part 2, “Net Price.” Delivery costs to third party customers outside of Virginia, should not exceed the contractor’s actual out-of-pocket cost of shipping to that Authorized User’s actual location by the most economical method with no markup. Delivery price should be agreed upon by both parties For sales to Virginia entities and ship to locations in Virginia, all vehicles and related equipment shall include delivery - FOB destination unless otherwise stated in the body of the order. Delivery charges for Virginia customers is included in Section 4 “Goods and Pricing Schedule,” Part 2, “Total Bid Price. “ The Agency shall assume risk of loss of vehicles and related equipment upon acceptance. Prior to acceptance, the Contractor shall assume risk of loss of vehicles and related equipment, including any damages sustained during the delivery regardless of the status of title or any payments related to the bus. If the bus is released back to the Contractor for any reason, then the Contractor assumes risk of loss upon such release. The Contractor shall deliver the buses with an installed, functioning battery or Energy Storage System (ESS) charged with at least 25 kW of usable energy.

Upon delivery, Authorized Users shall inspect buses with qualified Contractor personnel before accepting the bus.

Following acceptance of the bus, the bus shall be put in service by qualified Contractor personnel, who shall provide training for the Authorized User. Training shall include operation and maintenance of the bus, all systems, accessories, operating procedures, and safety requirements. Placing the bus in service shall be held at a date and time to be agreed upon by the Contractor and Authorized User.

I. FINANCIAL WARRANTY
Contractor shall ensure that the prices, discounts, incentives, and other financial terms (collectively, the “financial deal”) applicable to purchases under this contract is always at least as favorable to the purchaser as the financial deal that the contractor or its affiliates make available to any public body in Virginia for the same good(s)/service(s) outside this contract. Throughout the term of this contract, if contractor (or any affiliate) makes a better financial deal available to a public body in Virginia for any good(s)/service(s) available under this contract, contractor shall immediately notify DGS of the details and, at DGS’s option, sign an amendment to this contract, so that an equivalent financial deal for the affected good(s)/service(s) is also available as an option under this contract. Contractor may request exemption if the better financial deal was for a spot purchase, and DGS shall grant such request if DGS in good faith finds that the Contract # E194- 81688
Gillig Electric Buses
(Page 9 of 14)
spot purchase involved special circumstances affecting cost that would make it unfair to apply an equivalent financial deal outside of that spot purchase. Upon DGS’s request (and annually), Contractor shall submit to DGS an affidavit certifying full compliance with this Section. The contractor (and any affiliate) shall waive any contractual or other right that inhibits any public body in Virginia from disclosing to DGS or others the financial terms made available to the public body, and upon request from DGS, contractor shall ensure that a signed confirmation of the waiver is provided to the public body and DGS. As used in this Section, an affiliate is any entity that controls, is controlled by, or is under common control with, the contractor.

J. FIRST AID KITS
Each Bus shall be equipped with a First Aid kit (large size) and a Blood borne Pathogen kit. Price for the kits shall be included in the base bus price.

K. FTA / APTA REQUIREMENTS
For Buses delivered to Authorized Users under this Contract, Contractor shall be in compliance with then-current, requirements established by the Federal Transit Administration (FTA) and the American Public Transportation Association (APTA), and as published on the FTA’s and APTA’s current website, or any-then current website existing during the term of this Contract.

L. MAINTENANCE MANUALS:

The contractor shall provide with each piece of equipment an operations and maintenance manual, parts list, and a copy of all warranties.

M. EXTRA CHARGES NOT ALLOWED
Bid pricing shall be for complete delivery ready for the Commonwealth’s use and shall include all applicable freight and delivery charges; extra charges will not be allowed.

N. eVA BUSINESS-TO-GOVERNMENT VENDOR REGISTRATION, CONTRACTS, AND ORDERS:

To ensure maximum transparency and public access to the Commonwealth's procurement opportunities, and consistent with Code § 2. 2-1110, all Authorized Users in the Commonwealth must submit orders directly with Contractor through the Commonwealth’s electronic procurement website, http://www.eva.virginia.gov.

The eVA Internet electronic procurement solution, web site portal www.eVA.virginia.gov, streamlines and automates government purchasing activities in the Commonwealth. The eVA portal is the gateway for vendors to conduct business with state agencies and public bodies. All vendors desiring to provide goods and/or services to the Commonwealth shall participate in the eVA Internet e-procurement solution by completing the free eVA Vendor Registration. All bidders must register in eVA and pay the Vendor Transaction Fees specified below; failure to register will result in the bid being rejected.

This contract will result in multiple purchase order(s) with the applicable eVA vendor transaction fees assessed for each order from Commonwealth users. Vendor transaction fees are determined by the date the original purchase order is issued and the current fees are as follows:

For orders issued July 1, 2014, and after, the Vendor Transaction Fee is:

DSBSD-certified Small Businesses: 1%, capped at $500 per order.

Businesses that are not DSBSD-certified Small Businesses: 1%, capped at $1,500 per order.

Contractor shall notify the Commonwealth of Virginia, Division of Purchases and Supply (DPS) in writing by providing DPS a contract sales and usage report for any entities/participants using this Contract - which have been invoiced and paid by the Participating Entity.

O. ORDER CHANGES
Any changes to be made once a purchase order has been provided to the Contractor must be made between the Commonwealth ordering agency and the Contractor. Both parties shall agree in writing to any changes in the scope of work and any increase or decrease in the price that may result as a consequence of the changes. No Order changes may be made verbally. Only the Commonwealth ordering agency has the right to issue a Contract # E194- 81688
Gillig Electric Buses
(Page 10 of 14)
change to any Purchase Order.

P. INVOICES AND PAYMENT
INVOICES:

Contractor shall submit the invoice(s) to the address designated on the Order no later than the 10th of the month following acceptance by the Authorized User of goods and services rendered. No invoice may include any costs other than those identified in the Order referencing the Contract. Invoice(s) shall provide at a minimum:

1. Name of the ordering entity

2. Entity point of contact name

3. Description of the goods and/or services provided

4. Contract number

5. Purchase order number

6. Invoice number

7. Invoice date

8. Invoice amount
PAYMENT:

Payment will be made within thirty (30) days for Commonwealth Agencies and forty-five (45) days for Commonwealth localities of receipt of a valid invoice for all goods and/or services received and accepted.

Payment is anticipated to be made by check or EDI.

Payment for Authorized Users outside the Commonwealth, shall be as agreed upon by contractor and Authorized User.

Q. REPORTING REQUIREMENTS:

Ref. Section 6 “Third Party Participants Report.” Contractors shall complete this form, send it to the DPS contract manager for 3rd party participants outside the state of Virginia, from whom Contractor has received a purchase order to begin work. Reports shall be provided quarterly.

R. TERMINATION FOR CONVENIENCE OF THE COMMONWEALTH:

The contract may be terminated for the convenience of the Commonwealth by delivering to the contractor a notice of termination specifying the extent to which performance under the purchase order or contract is terminated, and the date of termination. After receipt of a notice of termination, the contractor must stop all work or deliveries under the purchase order or contract on the date and to the extent specified. There shall be no penalty to the Commonwealth when a contract is terminated for convenience.

Contract # E194- 81688
Gillig Electric Buses
(Page 11 of 14)

4. GOODS & PRICING SCHEDULE, WARRANTY INFORMATION
See attached pages
Contract # E194- 81688
Gillig Electric Buses
(Page 12 of 14)

5. CONTRACTOR SERVICE AND PARTS SUPPORT DATA
See attached page
Contract # E194- 81688
Gillig Electric Buses
(Page 13 of 14)

6. THIRD PARTY PARTICIPANTS REPORT
Quarterly Report for Contractors
Contractors shall complete this form, send it to the DPS contract manager for third party participants from whom Contractor has received a purchase order to begin work Contractor: ______________________________________________________________ Participant Name/City/State: __________________________________________________ Length of Bus / Model: _______________________________________________________ Purchase Order Date: _____________________
Purchase Order Qty: ______________________
Contractor: ______________________________________________________________ Participant Name/City/State: __________________________________________________ Length of Bus / Model: _______________________________________________________ Purchase Order Date: _____________________
Purchase Order Qty: ______________________
Contractor: ______________________________________________________________ Participant Name/City/State: __________________________________________________ Length of Bus / Model: _______________________________________________________ Purchase Order Date: _____________________
Purchase Order Qty: ______________________
Contract # E194- 81688
Gillig Electric Buses
(Page 14 of 14)

7. FEDERAL CERTIFICATIONS
See attached pages

Attachment C

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COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: October 21, 2025
SUBJECT: Adoption of a Resolution Approving a Job Order Contract Agreement with Newton Construction & Management for the Wastewater Treatment Plant Metal Building Maintenance Project
Description:

The City Council will consider adopting a Resolution authorizing the Director of Public Works to execute a Job Order Contract Agreement with Newton Construction & Management for the Wastewater Treatment Plant Metal Building Maintenance Project in the amount of $449,122.36.

RECOMMENDATION:

1. Adopt a Resolution approving a Job Order Contract Agreement with Newton Construction & Management for the Wastewater Treatment Plant Metal Building Maintenance Project in the amount of $449,122.36; and

2. Authorizing the City Manager, or designee, to execute the agreement.

BACKGROUND:

The Wastewater Treatment Plant (WWTP) Metal Building Maintenance Project was identified as a necessity in the current budget due to multiple roof and building repairs needed over the past two years. The harsh operating environment at the WWTP has caused rust damage, leading to roof leaks during the rainy season. Without replacement of the roof and associated repairs, further deterioration could occur, potentially damaging water system software and office furnishings. The City of Santa Maria Public Works Department- Engineering Division prepared the project scope of work and specifications.

DISCUSSION:

The City’s Public 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 (JOC), and 2 construction performed by in-house City crews. Utilizing a JOC has proven to be an effective method and useful tool to construct and implement City projects.

Due to the need for repairs at the WWTP Metal Building, the Public Works Department and Utilities Department recommend utilizing a pre-solicited Sourcewell JOC with Newton Construction & Management. This method streamlines procurement, accelerates delivery, and ensures competitive pricing. Sourcewell contracts are competitively solicited and comply with local, state, and federal procurement requirements, helping municipalities avoid potential legal challenges and protests.

Alternative(s)
City Council may choose to deny entering into a Sourcewell Job Order Contract Agreement with Newton Construction & Management and direct staff to issue a formal inhouse bid. This alternative is not recommended, as it would cause delays in repairing the facility before the rainy season, increasing the risk of further damage to existing infrastructure.

Fiscal Considerations
Sufficient funds for this project have been budgeted in the Fiscal Year 2025/2026 adopted budget.

Project Account Adopted Budget
SC7300|CC0260|FD640 $450,000.00
Total Project Expenditures $449,122.36
Impact to the Community
The community will benefit from the WWTP Metal Building Maintenance Project by ensuring the City can continue managing the water system without risk of damage to the software equipment. City employees will benefit from a safe, dry workplace environment, avoiding potential relocation of staff and equipment, which could otherwise result in significant additional costs.

ATTACHMENT(S)
A. Resolution
B. Agreement
C. Sourcewell Contract CA-R7-GB-101723-NCM
D. Sourcewell Contract CA-R7-GB-101723-NCM – Extension
Attachment A

Page 1 of 2 ends

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING A JOB ORDER CONTRACT AGREEMENT WITH

NEWTON CONSTRUCTION & MANAGEMENT FOR THE

WASTEWATER TREATMENT PLANT METAL BUILDING
MAINTENANCE PROJECT IN THE AMOUNT OF $449,122.36
WHEREAS, the Wastewater Treatment Plant (WWTP) Metal Building Maintenance Project was identified as a necessity in the current budget due to several repairs needed for the building and roof over the past two years; and WHEREAS, the City of Santa Maria Public Works Department--Engineering Division prepared the project scope of work and specifications; and WHEREAS, the harsh environment at WWTP has caused rust damage, leading to roof leaks during the rainy season, potentially damaging the data software equipment used for the water system and office furnishings; and
WHEREAS, the Public Works Department, in coordination with the Utilities Department, determined using a pre-solicited Job-Order Construction Contracting (JOC) with Newton Construction & Management through Sourcewell will be highly beneficial because it streamlines the procurement process, accelerates project delivery, and ensures competitive pricing; and
WHEREAS, Sourcewell contracts are competitively solicited and meet local, state, and federal procurement requirements. Sourcewell helps municipalities stay compliant with regulations, avoiding potential legal challenges and protests; and WHEREAS, sufficient funds for this project have been budgeted in the FY 2025/2026 adopted budget totaling $450,000.

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

SECTION 1. Approving a Job Order Contract Agreement with Newton Construction & Management for the Wastewater Treatment Plan Metal Building Maintenance Project in the amount of $449,122.36; and
SECTION 2. Authorizing the City Manager or designee to execute the Job Order Contract Agreement; and
Attachment A

Page 2 of 2 ends

SECTION 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, California, held this 21st day of October 2025.

ATTEST:

SANTA MARIA CITY HALL ROOFING PROJECT
THIS AGREEMENT, made and entered into this 21st day of October 2025, by and between Newton Construction & Management 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. Contractor has entered into an agreement with Sourcewell, Job-Order Construction Contracting (JOC) number CA-R7-GB-101723-NCM, incorporated herein and referred to as the JOC Contract Documents.

2. This Agreement and its terms shall constitute the Purchase Order required by the JOC Contract Documents.

3. Pursuant to the JOC Contract Documents and the Contract Documents of this Purchase Order (as defined in the General Conditions, attached as Exhibit A), Contractor shall complete the work generally described as follows: SANTA MARIA

WASTEWATER TREATMENT PLANT METAL BUILDING MAINTENANCE
PROJECT, in accordance with the Contract Documents therefore, adopted by the City Council, of Owner, as prepared by the City of Santa Maria Public Works Engineering Division.

4. 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 through the JOC Contract Documents and process.

Total Bid of: FOUR HUNDRED FORTY-NINE THOUSAND ONE HUNDRED

TWENTY-TWO AND THIRTY-SIX CENTS
Contract Price in Figures: $449,122.36

5. Contractor agrees to complete said work within the contract time of NINETY WORKING DAYS (90), 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.

6. Time is of the essence on this contract.

7. It is mutually understood and agreed that time is of the essence of this agreement Attachment B
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.

8. 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 amount 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.

9. That, in accordance with Section 1774 of the California Labor Code, Contractor will pay, and will require subcontractors to pay, employees on the work 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 this Purchase Order or the Contract Documents.

10. 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.

11. 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.

12. 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 California 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.

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

14. That Contractor shall have furnished, prior to execution of the contract, three bonds on a form approved by Owner: (1) the faithful performance bond in the amount of one- Attachment B
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.

15. That Contractor, prior to execution of the contract, shall comply with the following Department of Industrial Relations requirements:
 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)].
 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.  This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

16. That Contractor agrees to devote the hours 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.

17. The agreement shall be binding on and shall insure 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.)
Attachment B
IN WITNESS WHEREOF, said Contractor and the Director of Public Works, thereunto duly authorized, have caused the names of said parties to be affixed hereto, each in duplicate, the day and year first above written.

CONTRACTOR
___________________________

DARIN TERRAZAS
Project Manager
CITY OF SANTA MARIA, a Municipal
Corporation

BRETT FULGONI
Director of Public Works
ATTEST:

Donna G. Schwartz
Chief Deputy City Clerk
APPROVED AS TO FORM:
_______________________________
Risk Manager
_______________________________
City Attorney
Attachment B
EXHIBIT “A”

GENERAL CONDITIONS
DOCUMENT 00700
Attachment B
DOCUMENT 00700

GENERAL CONDITIONS
PART 1 DEFINITIONS

1.01 DEFINED TERMS
A. Wherever in these General Conditions and in other Contract Documents the following terms are used, their intent and meaning shall be interpreted as stipulated herein.

1. ADDENDUM: A supplement to any of the contract documents issued in writing prior to the opening of bids.

2. AGREEMENT: The written instrument executed by Contractor and Owner by which Contractor is bound to perform the work within the contract time and Owner is obligated to compensate Contractor therefore at the contract price set forth therein.

3. CHANGE ORDER: A document signed by Owner, Engineer, and Contractor authorizing an addition, deletion, or revision in the work; or an adjustment in the contract price, or the contract time, or both; issued after the date of execution of Document 00500, Agreement.

4. CONTRACT: Agreement.

5. CONTRACT DOCUMENTS: The Notice Inviting Bids; Instructions to Bidders; Bid Forms; Certificates and Affidavits; Agreement and Supplements thereto, including Change Orders; Payment Bond; Performance Bond; General Conditions; Supplementary General Conditions; Special Provisions; and other Specifications; Drawings; and Addenda, if any.

6. CONTRACT PRICE: The moneys payable by Owner to Contractor under the contract documents as stated in the Agreement.

7. CONTRACTOR: The person, firm, or corporation who has entered into the contract with Owner for the performance of the work.

8. DAYS: Unless otherwise designated, days shall be understood to mean calendar days.

9. DEFECTIVE: An adjective when modifying the word "work" refers to work that is unsatisfactory; faulty; deficient; otherwise does not Attachment B
conform to the contract documents; does not meet the requirements of any inspection, reference standard, test, or approval referred to in the contract documents; or has been damaged prior to Engineer's recommendation of final payment.
a. Conditions for damage to work covered under partial
acceptance are specified in the Special Provisions.

10. DESIGN ENGINEER: The person, firm, or corporation including its principals, agents, and employees, designated by Owner to prepare drawings and specifications for the work.

11. DRAWINGS: The drawings which show the character and scope of the work to be performed and which have been prepared by Design Engineer, referred to in and part of the contract documents.

12. ENGINEER: The City Engineer of the City of Santa Maria or the City Engineer's designated agent.

13. NOTICE INVITING BIDS: The public announcement inviting bids for the performance of the work.

14. LAWS AND REGULATIONS: LAWS OR REGULATIONS: Laws,
rules, regulations, ordinances, codes, orders.

15. NOTICE-TO-PROCEED: A written directive issued by Owner, authorizing Contractor to start performance of the work.

16. OWNER: City of Santa Maria.

17. PLANS: Drawings.

18. PROJECT: The total construction contemplated by Owner of which the work may be the whole or a part, as described in the contract documents.

19. SPECIFICATIONS: Those portions of the contract documents consisting of written technical descriptions of materials, equipment, construction systems, standards, and workmanship as applied to the work, and certain administrative details applicable thereto.

20. SUBCONTRACTOR: The person, firm, or corporation having a direct contract with Contractor or with any other subcontractor for the performance of the part of the work at the site.

Attachment B

21. SUPPLEMENTAL AGREEMENT: Written amendment to the
contract documents signed by Owner and Contractor.

22. WORK: The entire completed construction or the various separately identifiable parts thereof required to be furnished under the contract documents.
a. Work is the result of performing services, furnishing labor and furnishing and incorporating materials and equipment into the construction, all as required by the contract documents.

PART 2 PRELIMINARY MATTERS

2.01 BONDS
A. Bonds, surety requirements, and delivery are stipulated in Document 00100, Instructions to Bidders.

2.02 CONTRACTOR'S INSURANCE AND INDEMNIFICATION
A. General

1. Contractor shall carry all insurance required by Federal, State, County, and local Laws and Regulations.

2. Neither Contractor nor any subcontractor shall enter the site of the work or commence work under this contract before Owner, relying on Contractor's evidence of insurance, has issued the Notice-toProceed.

1. To the fullest extent permitted by law, 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 or the facts or omissions of an employee, agent or subcontractor of the Contractor. The provisions of this paragraph survive completion of the services of the termination of this Contract. The provisions of this paragraph are not limited by the provisions herein relating to insurance.

4. Contractor shall secure and maintain, during the contract time and warranty period, certain insurance that shall protect Contractor, Subcontractor, Owner, and Design Engineer in such manner and amounts as set forth hereinafter.

Attachment B
a. The insurance requirements stipulated herein shall not be construed as limiting Contractor's liability.

5. All loss or damage arising from obstructions or difficulties which may be encountered in the prosecution of the work, from the action of the elements, or from any act or omission on the part of Contractor or any subcontractor, supplier, person, or agent employed by Contractor shall be borne by Contractor.

6. Deductibles and Self-insured Retentions
a. Deductibles and self-insured retentions shall be declared to and approved by Owner.
b. At the option of Owner, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the Owner and Design Engineer, its officers, officials, employees and volunteers or Contractor shall provide a
financial guarantee satisfactory to the Owner guaranteeing payment of losses and related investigations, claims
administration, and defense expenses.

7. Contractor shall include subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor.
a. Coverage's for subcontractors shall be subject to the requirements stipulated herein.

B. Verification of Coverage

1. Contractor shall furnish Owner with original certificate and amendatory endorsements of the applicable policy language effecting coverage required by this clause

2. Endorsements shall be signed by a person authorized by that insurer to bind coverage on its behalf.

3. The endorsements shall be on forms provided by Owner, or on other than Owner's forms, or a separate owner's policy, provided those forms or policies are approved by the Owner and amended to conform to the Owner's requirements.

4. Endorsements shall be received and approved by Owner before work commences. All certificates and endorsements are to be Attachment B
received and approved by Owner before work commences.

However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them.

Owner 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

5. Owner has the right to secure from the Contractor certified copies of all required insurance, including endorsements affecting the coverage required by these specifications.

C. 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.

D. Workers Compensation Insurance

1. Contractor shall take out and maintain Workers Compensation Insurance as required by the State of California for all of its employees at the site of the work and Employer's Liability Insurance in the amount of $1,000,000 per accident for bodily injury or disease during the life of this contract.
a. The Contractor's Workers Compensation and Employer's Liability policy shall be endorsed to provide a waiver of subrogation by the carrier to Owner and Design Engineer.

2. Contractor shall require each subcontractor to provide workers Compensation Insurance for its employees unless the Contractor covers such employees.

3. In the event any class of employees engaged in hazardous work under this contract is not protected by the Workers Compensation Statute, Contractor shall provide, and shall cause its subcontractors to provide, special insurance for the protection of such employees not otherwise protected.

E. Commercial General liability Insurance

1. Contractor shall procure, and maintain during the life of the contract, coverage in the amount of $2,000,000 per occurrence for bodily injury, personal injury and property damage at least as broad as ISO Commercial General Liability Insurance (Form CG 0001) necessary to protect itself, Owner, Design Engineer, and Subcontractors performing work under this contract, from all claims and legal costs for bodily injury or personal injury, including accidental death and property damage claims arising from operations under this contract, Attachment B
whether such operations are the Contractor's or the subcontractor's.

2. The policy shall be endorsed to include the following provisions:
a. The Owner and Design Engineer, its officers, officials, employees and volunteers are to be covered as insureds with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or
operations. This can be provided in the form of an
endorsement to the Contractor's insurance or as a separate owner's policy.
b. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the Owner and Design Engineer, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Owner and/or Design Engineer, its officers, officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. c. This coverage shall not be canceled by either party, except after 30 days prior written notice by certified mail, return receipt requested has been given to the owner and Design Engineer.

3. The minimum limits of the insurance shall be as follows:
a. $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 of $2,000,000 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. A separate general aggregate limit of $2,000,000 will also apply for Products and Completed
Operations.
b. Errors and omissions liability insurance appropriate to the Design Engineer’s or other Consultant’s profession.

Architects and engineers’ coverage is to be endorsed to include contractual liability, $1,000,000 per occurrence or claim, $2,000,000 aggregate, if applicable.

F. Automobile Liability

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

2. The policy shall be endorsed to include the following provisions:
a. This coverage shall not be canceled by either party, except after 30 days prior written notice by certified mail, return receipt requested has been given to the owner and Design Engineer.

G. Other Insurance Provisions
The liability policies are to contain, or be endorsed to contain, the following provisions:

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.

5. If any of the required policies provide claims-madecoverage:
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 Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

H. 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 l circumstances.

2.03 CONTRACT DOCUMENTS
A. Copies of Documents

1. The number and time of delivery of copies of contract documents are stipulated in Document 00100, Instructions to Bidders.

B. Intent of Contract Documents

1. The contract documents comprise the entire agreement between Owner and Contractor concerning the work.

2. The contract documents are complementary; what is called for by one is as binding as if called for by all.

3. The contract documents shall be construed in accordance with the laws of the State of California.

4. The intent of the contract documents is to describe a functionally complete work, which Contractor shall construct in accordance with the contract documents.

Attachment B
a. Work, materials, and equipment that may be inferred
reasonably from the contract documents or from prevailing custom or trade usage as being required to produce the
intended result shall be furnished and performed by
Contractor whether or not specifically called for.
b. References to standard specifications, manuals, or codes of technical societies, organizations or associations, or to Laws and Regulations of a governmental authority, whether such references be specific or implied, shall mean the latest standard specification, manual, code, or Laws and
Regulations in effect at the time the Notice Inviting Bids was issued, except as may be otherwise specifically stated. 1) However, no provision of referenced standard
specifications, manuals, or codes, whether or not such
references be specifically incorporated in the contract documents, shall be effective to:
a) Change the duties and responsibilities of
Owner, Contractor, or Engineer, or any of their
consultants, from those set in the contract
documents.
b) To assign Engineer or any of Engineer's
consultants:
(a) Any duty or authority to supervise or
direct the furnishing or performance of
the work; or
(b) Any duty or authority to undertake
responsibility contrary to the provisions of
the contract documents.

C. Omissions, Conflicts, Errors, or Discrepancies

1. Where, during the performance of the work, Contractor finds omissions, conflicts, errors, or discrepancies in the contract documents, Contractor shall so report to Engineer, in writing, at once; and before proceeding with the work affected thereby shall obtain a written clarification or interpretation from Engineer pursuant to Article

4.02, Clarifications and Interpretations.

2. When Contractor feels that omissions, conflicts, errors, or discrepancies in the contract documents will cause or have caused Attachment B
Contractor additional costs or delays in the performance of the work, Contractor may make a claim therefore in accordance with Article

5.50, Claims.
a. Accordingly, Contractor shall give Engineer:
1) Written notice of such claim within forty-eight hours after the occurrence of the cost and delay related to
such omissions, conflicts, errors or discrepancies.
2) Statement and supporting data within 7 days after the occurrence of the cost and delay related to such
omissions, conflicts, errors or discrepancies.
b. Except for such claims as are made of record in the manner and within the time stated in this Paragraph C., Contractor shall be deemed to have waived and does hereby waive all claims for damages and for adjustments to the contact time, the contact price, or both, resulting from omissions, conflicts, errors, or discrepancies in the contract documents.
c. The claim will be processed as stipulated in Article 5.05, Claims.

3. The contact documents shall be interpreted applying the following precedence rules:
a) Discrepancies between drawings and the figures written thereon shall be resolved by taking the figures as correct. 1) Figured dimensions shall govern over scaled
dimensions.
2) Full-scale drawings shall govern over reduced size
drawings.
3) Where a dimension necessary for the prosecution of
the work can only be obtained by means of a scaled
dimension, Contractor shall request a determination
from Engineer as provided in the preceding Subparagraph 1, this Paragraph C. b. The contract document higher in precedence shall control and supersede the contract documents lower in precedence in accordance with the following listing arranged from the highest to the lowest in precedence:

Attachment B
1) First: Addenda, if any; Supplemental
Agreements; and Change Orders; the
one dated later having precedence over
another dated earlier.
2) Second: Agreements.
3) Third: Special Provisions.
4) Fourth: Drawings.
5) Fifth: Supplementary General Conditions.
6) Sixth: General Conditions.
7) Seventh Standard Specifications
8) Eighth: Instructions to Bidders.
9) Ninth: Bid Forms.
10) Tenth: Notice Inviting Bids.

D. Amendment to Contract Documents

1. The contract documents may be amended in accordance with PART 5, AMENDMENTS AND CHANGES.

2. In giving clarifications and interpretations pursuant to Article 4.02 Clarifications and Interpretation, Engineer shall have authority to make minor changes in the work, not involving changes to the contract price or to the contract time.

E. Reuse of Documents
1 Neither Contractor nor any subcontractor or supplier or other person or organization performing or furnishing any of the work under a direct or indirect contract with Owner shall have or acquire any title to or ownership rights in any of the drawings, specifications, or other documents, or copies of any thereof, prepared by or bearing the seal of Design Engineer or Engineer, without the written consent of Owner and Design Engineer or Engineer.

2. Neither Contractor nor any subcontractor or supplier or other person or organization performing or furnishing any of the work under a Attachment B
direct or indirect contract with Owner shall reuse any of the drawings, specifications, or other documents, or copies of any thereof on extensions of the project or any other project, without the written consent of Owner and Design Engineer or Engineer, and specific adaptation by Design Engineer or Engineer.

2.04 COMMENCEMENT OF CONTRACT TIME
A. Owner will issue the Notice-to-proceed not later than 60 days after the contract has been awarded, unless otherwise agreed in writing between Owner and Contractor.

B. Contractor shall commence performance of the work on or before the 10th day after receiving the Notice-to-proceed, and shall complete the work within the contract time stipulated in Document 00500, Agreement.

C. Before starting construction Contractor shall submit a written work schedule of the work at least 5 days prior to commencement of construction. No work may proceed prior to the date of commencement. The City Engineer will establish this date, and the City Engineer will notify the Contractor in writing.

2.05 SITE OF THE WORK
A. Availability of Lands

1. Owner will furnish, as indicated in the contract documents, the lands upon which the work is to be performed, rights-of-way and easements for access thereto, and such other lands which are designated for use of Contractor.

2. Easements for permanent structures or for permanent changes in existing facilities will be obtained and paid for by Owner, unless otherwise provided in the contract documents.

3. Contractor shall provide for additional lands and access thereto that may be required for temporary construction facilities or storage of materials and equipment.

4. When Contractor believes that delays in Owner's furnishing lands, rights-of-way, or easements entitles Contractor to an extension of contract time, Contractor may make a claim therefore in accordance with Article 5.50, Claims.

B. Underground Facilities

1. The Owner has endeavored to determine the existence of Attachment B
underground facilities at the site of the work from the records of owners and operators of known underground facilities in the vicinity of the work.
a. The positions of these underground facilities as derived from such records may be indicated in the contract documents.

Contractor shall contact owners and operators of known
underground facilities to coordinate the work.
b. Service connections to utilities are not indicated in the contract documents.
c. Contractor shall expose and verify the locations and elevations of all existing utilities prior to beginning of all work.

Should unforeseen or unknown interference be encountered which create construction delays, the City shall not be held liable, nor will the Contractor press any claim for such unpredictable interference and delays. Prior to the start of construction, the Contractor shall contact Underground Services Alert (1-800-422-4133), forty-eight (48) hours minimum notice.

2. In addition to requirements of applicable Laws and Regulations, including California Government Code Section 4216, referenced in Article 3.07, Laws and Regulations, Contractor shall make its own investigations, including records searches and exploratory excavations, to determine the locations and type of existing underground facilities, service laterals or appurtenances when their presence can be inferred from the presence of other visible facilities, such as buildings, meters, and junction boxes on or adjacent to the site of the work.
a. Contractor shall expose shown or inferred service laterals, appurtenances, and other inferred underground facilities, which might interfere with construction of the work, in order to permit survey location of such underground facilities prior to construction.
b. Where Contractor discovers underground facilities not marked by U.S.A., not identified in the contract documents, or in a position different from that indicated by U.S.A. or on the contract documents, Contractor shall immediately notify, in writing, Engineer and the owner or operator of the
underground facility.

3. When necessary to remove, relocate, protect, or temporarily maintain an underground facility because of interference with the work, the work on such underground facility shall be performed and Attachment B
paid for as follows:
a. When it is necessary to remove, relocate, protect, or temporarily maintain an existing main or trunk line underground facility not marked by U.S.A. nor indicated in the contract documents with reasonable accuracy.
1) Owner will compensate Contractor:
a) for the costs of locating;
b) for the costs of repairing damage not due to the
failure of Contractor to exercise reasonable
care;
c) for the costs of removing, relocating, protecting,
or temporarily maintaining such underground
facilities; and
d) for the costs for equipment on the site
necessarily idled during such work.
2) These costs and the work to be done by Contractor in locating, removing, relocating, protecting, or
temporarily maintaining such underground facilities
shall be covered by a change order, in accordance with
Article 5.01, Amendments and Changes to Contract
Documents.
3) Owner may make changes in the alignment and grade
of the work to obviate the necessity to remove,
relocate, protect, or temporarily maintain such
underground facilities or to reduce the costs of the work involved in removing, relocating, protecting, or
temporarily maintaining such underground facilities.
a) Changes in alignment and grade will be covered
by a change order in accordance with Article

5.01, Amendments and Changes to Contract
Documents.
b) When it is necessary to remove, relocated,
protect, or temporarily maintain the
underground facility, the cost of which is not
required to be borne by the owner or operator
thereof, Contractor shall bear all expenses
Attachment B
incidental to the work on the underground facility
or damage thereto.
4) The work on the underground facility work shall be
done in a manner satisfactory to the owner or operator
thereof; it being understood that the owner or operator of the underground facility has the option of doing such work with its own forces, or permitting the work to be
done by Contractor.
a) No representations are made that the obligation
to remove, relocate, protect, or temporarily
maintain any underground facility and to pay the
cost thereof is or is not required to be borne by
the owner or operator of such under-ground
facility and it shall be the responsibility of
Contractor to investigate and find out whether or
not said cost is required to be borne by the
owner or operator of the underground facility.
5) The stipulations of this Subparagraph b. do not apply to:
a) Existing main or trunk line underground facilities
not indicated in the contract documents with
reasonable accuracy.
b) Existing service laterals or appurtenances when
their presence cannot be inferred from the
presence of other visible facilities, such as
buildings, meters, and junction boxes on or
adjacent to the site of the work.

4. The right is reserved to governmental agencies and to owners and operators of underground facilities to enter, at any time, upon any street, alley, right-of-way, or easement for the purpose of making changes in their property made necessary by the work and for the purposes of maintaining and making repairs to their property.

5. In addition to procedures required by applicable Laws and Regulations, including California Government Code Section 4216 referenced in Article 3.07, Laws and Regulations, Contractor shall notify all owners of underground facilities when the work is in progress and shall make such arrangements as are necessary to make any emergency repair.

Attachment B

6. Contractor shall not be assessed liquidated damages for delay in the contract time when such delay was caused by the failure of Owner or the owner or operator of the underground facility to provide for removal or relocation of such underground facility.

7. If, as a result of underground facilities interference and relocation, Contractor believes that adjustments to the contract price, the contract times, or both, are not satisfactory, Contractor may make a claim therefore in accordance with Article 5.05, Claims.

C. Lines and Grades

1. Profiles and elevations are indicated on the drawings.

2. Elevations are referred to a datum indicated on the drawings.

3. The Contractor shall pay all costs for the establishment and maintenance of lines and grades for the work.

D. Survey land monuments and property markers shall not be moved or otherwise disturbed by Contractor until an authorized agent of the agency, having jurisdiction over the land monuments or property markers setting, has witnessed or otherwise referenced their location, and only then in accordance with the requirements of the agency having jurisdiction.

PART 3 CONTRACTOR'S RESPONSIBILITIES

3.01 SUPERVISION AND SUPERINTENDENCE
A. Contractor shall supervise and direct the performance of the work competently and efficiently, devoting such attention thereto and applying such skills and expertise as may be necessary to perform the work in accordance with the contract documents.

1. Contractor shall be solely responsible for the means, methods, techniques, sequences, and procedures of construction, but Contractor shall not be responsible for the negligence of others in the design or selection of a specific means, method, technique, sequence, or procedure of construction which is indicated in and required by the contract documents.
a. When Contractor believes that a work demand is outside the requirements of the contract documents, or when Contractor believes that an action of Engineer is incorrect or unfair, Contractor may make a claim therefore in accordance with Article 5.05, Claims.
1) For such claim, Contractor shall give Engineer:

Attachment B
a) Written notice of such claim within forty-eight
(48) hours after the occurrence of the cost and
delay related to such work demand or
Engineer's action.
b) Statement and supporting data within 7 days
after the occurrence of the cost and delay
related to such work demand or Engineer's
action.
2) Except for such claims as are made of record in the
manner and within the time stated in this Subparagraph
a., Contractor shall be deemed to have waived and
does hereby waive all claims for damages and for
adjustments to the contract time, the contract price, or both, resulting from work demands and from
Engineer's clarifications, interpretations, and findings. 3) The claim will be processed in accordance with Article

5.05, Claims.

2. When required by the contract documents, Contractor shall follow the sequence of operations set forth therein.

3. Contractor shall be responsible to see that the finished work complies accurately with the contract documents.

B. Contractor's Representative

1. Contractor shall, at all times during working hours, be represented in all matters pertaining to the work by one, and only one, competent and experienced general superintendent.
a. Before work is started at the site, Contractor shall give written notice to Engineer stating who Contractor's superintendent will be, giving this person's home address and telephone number.
1) A statement naming more than one general
superintendent to be in charge simultaneously, making
one or the other responsible depending upon who is
present at the time will not be acceptable.
b. Contractor shall inform Engineer in writing prior to any change of general superintendent.

Attachment B

2. Communications issued by Engineer to Contractor's superintendent on the work shall be considered as having been given to Contractor.

C. Responsibility for Deviation from Plans
Notwithstanding any other provisions in the contract, to the contrary, it is understood and agreed that the failure of the engineer or any inspector on the project to observe or to notify the Contractor of deviations from the approved Plans and Specifications, whether or not such deviations could have been corrected if such notifications had been given, shall in no way relieve the Contractor of any responsibility or liability for the Contractor's failure to complete, and the Contractor shall be required to repair and complete the work covered by this contract in exact accordance with the approved Plans and Specifications and all applicable laws and regulations; and the Owner shall not be construed or be deemed to have waived its right to insist on exact compliance by the Contractor pursuant to the terms of this contract or the issuance of any inspection reports or any certificates of partial or final completion.

3.02 LABOR, MATERIALS, AND EQUIPMENT
A. Contractor shall provide competent, suitably qualified personnel to survey and lay out the work and to perform construction of the work as required by the contract documents.

1. Contractor shall maintain good discipline and order at the site.

B. Unless otherwise specified in the Special Provisions, Contractor shall furnish, install, and assume responsibility for materials, equipment, labor, transportation, construction equipment and machinery, tools, appliances, fuel, power, heat, light, telephone, water, sanitary facilities and other temporary facilities, and all other facilities and incidentals necessary for the furnishing, installation, performance, testing, start-up and completion of the work.

1. Incidentals include, but are not limited to, dust, site drainage, noise, and traffic control measures.

C. Materials and Equipment for the Work

1. Materials and equipment incorporated in the work shall be of good quality and new and subject to review and acceptance by Engineer unless otherwise specified in the Special Provisions.

2. Where materials and equipment are referred in the specifications Attachment B
followed by the expression "or equal," Engineer will decide the question of equality as stipulated under Article 3.04, Substitute or "Or Equal" Items.

3. Materials and equipment of a general description shall be good, free from defects, and adapted to the use for which provided.

4. The physical characteristics of materials and equipment not particularly specified shall conform, where applicable, to current standards published by the American Society for Testing and Materials (ASTM).

5. Materials and equipment shall be equal to the accepted samples, when samples have been submitted.

6. If the Engineer deems any of Contractor's equipment to be unsuitable, it shall be removed from the site and shall not be returned during this contract.

D. Storage of Materials and Equipment

1. Contractor shall provide proper storage facilities and exercise such measures as shall ensure the preservation of the specified quality and fitness of materials and equipment to be used in the work.

2. Stored materials and equipment shall be located so as to provide reasonable access for observation.

3. In case of suspension of work, Contractor shall store and protect materials and equipment as necessary to maintain the quality, integrity, and availability when performance of the work is resumed.

E. Payment for Labor and Materials

1. Contractor shall pay, when due, all valid charges for labor and material incurred by contractor and used in the construction of the work and shall also be responsible for keeping the job free of liens or "stop payment" notices recorded by or under Contractor or its subcontractors.

2. Nothing contained herein shall be deemed to waive any immunity or other provisions of law preventing imposition of mechanics' liens on public property.

3. When Contractor fails to make payments required under this Paragraph E., or when Contractor fails to keep the work free of Attachment B
mechanics' liens or stop payment notices incurred by or under Contractor or its subcontractors, Owner may settle such claims and Contractor shall, on demand, reimburse Owner for amounts so paid, or Owner may withhold such amounts from payments due or to become due to Contractor.

3.03 ADJUSTING PROGRESS SCHEDULE
A. Contractor shall prepare and submit adjustments in the progress schedule to reflect the effect thereon of new developments; these shall conform generally to the progress schedule then in effect and additionally shall comply with provisions of the special provisions.

3.04 SUBSTITUTE OR "OR EQUAL" ITEMS
A. Article 1.05 Product Substitution of Document 00100 Instructions to Bidders, includes complementary provisions on materials and equipment listed by brand or trade name in the specifications and drawings.

B. Substitution Requests:

1. Requests for approval of substitute materials or equipment designated in the contract documents by a brand or trade name shall be submitted after award of the contract and not later than the time period stipulated in Article 1.05 referenced in the preceding Paragraph A.

2. Requests shall be made in writing and shall be accompanied by data, satisfactory to Engineer, that support the merits of the proposed substitute material or equipment.

3. The request shall state how the proposed substitute material or equipment compares with or differs from the specified material or equipment in composition, size, strength, arrangement,
performance, serviceability, maintenance, recommended inventory of spare parts, and other relevant characteristics and information; in addition, the request shall be accompanied by documented evidence of equality in price and delivery or evidence of difference in price and delivery.
a. Data on price shall be in the form of certified quotations from suppliers of both the specified and the proposed material or equipment.

C. Materials or equipment accepted for substitution shall meet applicable provisions of the contract documents.

Attachment B

1. Compliance with specific requirements of the contract documents shall be demonstrated and necessary modifications shall be made in order to meet such specific requirements and actual conditions under which the material or equipment will be required to perform.

D. When a substitution is allowed under the provisions of this Article 3.04 and the substitute material or equipment subsequently proves to be defective, Contractor shall, without cost to Owner, and without obligation on the part of Engineer, replace the substitute material or equipment with the material or equipment originally specified.

3.05 CONCERNING SUBCONTRACTORS AND OTHERS
A. Bidders shall list, in Document 00300, Bid Forms, any person making a bid or offer to perform the work, shall, in his or her bid or offer, set forth the name, the location of the place of business, and the California contractor license number of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the work or improvement, or a subcontractor licensed by the State of California who, under subcontract to the prime contractor, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of 1 percent of the prime contractor’s total bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the prime contractor’s total bid or ten thousand dollars ($10,000), whichever is greater.

B. Contractor shall be responsible for the acts and omissions of subcontractors, suppliers, and other persons and organizations performing or furnishing any of the work under a direct or indirect contract with Contractor, just as Contractor shall be responsible for Contractor's own acts and omissions.

C. Nothing in the contract documents shall create any contractual relationship between Owner or Engineer and any such subcontractor, supplier, or third person on or near the project.

D. The divisions and sections of the specifications and the identifications of drawings shall not control Contractor in dividing the work among subcontractors or others or delineating the work performed by any specific trade.

Attachment B

3.06 PATENT FEES AND ROYALTIES
A. Contractor shall pay all license fees and royalties and assume all costs incident to the use in the performance of the work or the incorporation in the work of any invention, design, process, product, or device which is the subject of patent rights or copyright held by others.

B. Contractor shall indemnify and save harmless Owner and Engineer from all liabilities, judgments, costs, damages, and expenses which may result from the infringement of any patents, trademarks, and copyrights by reason of the use of any proprietary materials, devices, equipment, or processes incorporated or used in the performance of the work.

3.07 LAWS AND REGULATIONS
A. Contractor shall procure all permits and licenses, give all notices and comply with all Laws and Regulations applicable to furnishing and performance of the work. All permits required by the City of Santa Maria will be obtained through the Building Department of the City of Santa Maria (building permits), or the Public Works Department of the City of Santa Maria (encroachment permits). Contractors are advised all fees normally assessed by the City for permits and inspections, will be waived.

B. Except where otherwise expressly required by applicable Laws and Regulations, neither Owner nor Engineer shall be responsible for monitoring Contractor's compliance with any Laws or Regulations.

C. Contractor shall defend, indemnify and save harmless Owner and Engineer against claims arising from the violation of any Laws or Regulations, whether by Contractor, any subcontractors, or any suppliers.

D. Some laws and Regulations applicable to the performance of the work are referenced in the following subparagraphs which also contain a brief excerpt; however, no representation is made that all applicable Laws and Regulations are referenced, that the references are current and correct, or that the excerpts are correct and include all the relevant information.

1. Subsurface Installations: California Government Code, Sections 4216 et seq., cover requirements and procedures relating to excavation in areas which are known, or reasonably should be known, to contain subsurface installations; notifications to subsurface installations owners and operators; time required for notices before excavation; and related matters.

2. Requirement of Payment: Pursuant to Section 1771 of the California Labor Code, Contractor and subcontractors shall pay to workmen employed in the performance of the work not less than the general Attachment B
prevailing rate of per diem wages for work of a similar character in the locality of the work, and no less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in said Labor Code.

3. Specification of Prevailing Wage Rates in Call for Bids: Pursuant to provisions in Section 1773.2 of the California Labor Code, copies of the prevailing rate of per diem wages are on file at Owner's principal office and are available for examination by any interested party on request, during normal business hours.

4. Pursuant to provisions in Section 1773.1 of the California Labor code, Contractor shall make payment for travel and subsistence as required in said Section 1773.1.

5. Forfeiture for Paying Less than Prevailing Rate: Pursuant to Section 1775 of the California Labor Code, Contractor shall comply with the provisions of said Section 1775 and forfeit as a penalty not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates for the work or craft corresponding to such worker, whether employed by Contractor or any subcontractor.

6. Payroll Record of Wages Paid: Pursuant to Section 1776 of the California Labor Code, Contractor shall keep an accurate payroll record showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by Contractor for the performance of the work.
a. A certified copy of payroll records shall be submitted to Owner, and shall be made available for inspection or
furnished upon request to a representative of the California Division of Labor Standards Enforcement and Division of Apprenticeship Standards.
b. In case of noncompliance with said Section 1776 and after a 10-day period following receipt of written notice, Contractor shall forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker in noncompliance, until compliance is effectuated.
c. Contractor shall be responsible for compliance with said Section 1776.

Attachment B

7. Employment of Apprentices on Public Works: Provisions in Section 1777.5 of the California Labor Code fix responsibility of compliance with that section for all apprenticeable occupations with Contractor. a. Said Section 1777.5 provides that Contractor and every subcontractor shall submit contract award information to the applicable joint apprenticeship committee.
b. Section 1777.7 of said Labor Code provides that Contractor shall forfeit as a civil penalty the sum of one hundred dollars ($100) for each calendar day of noncompliance with
provisions of said Section 1777.5.

8. Hours Constituting Day's Work: In accordance with California Labor Code, Section 1810, eight (8) hours labor constitutes a legal day's work.
a. In accordance with Section 1811 of said Labor Code, the time of service of any workman employed upon the work is limited and restricted to eight (8) hours during any one calendar day and forty (40) hours during any one calendar week except as provided in Section 1815 of said Labor Code.

9. Penalty when Worker is Required to Work Excess Hours: In accordance with Section 1813 of the California Labor Code, Contractor shall, as a penalty, forfeit twenty-five dollars ($25) for each worker employed in the execution of the work by Contractor and any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of said Section 1813.
a. In accordance with Section 1815 of said Labor Code,
notwithstanding the preceding provisions, work performed by employees of Contractor in excess of eight (8) hours per day and forty (40) hours during any one week are permitted upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1-1/2 times the basic rate of pay.

10. Digging Trenches or Other Excavations: California Public Contract Code, Section 7104 (first of two), includes procedures when the work involves digging trenches or other excavations that extend deeper than four (4) feet below the surface.
a. Contractor shall promptly, and before the following conditions are disturbed, notify Owner and Engineer, in writing, of any:
1) Material that Contractor believes may be material that Attachment B
is hazardous waste, as defined in Section 25117 of the
California Health and Safety Code, that is required to
be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law.
2) Subsurface or latent physical conditions at the site differing from those indicated in the contract
documents.
3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily
encountered and generally recognized as inherent in
work of the character provided for in the contract
documents.
b. Owner will promptly investigate the conditions and where Owner finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the contract price, or in the contract time, or both, a change order will be issued in accordance with Article 5.01,
Amendments and Changes to Contract Documents.
c. In the event a dispute arises between Owner and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the contract price, or in the contract time, or both, Contractor shall not be excused from any scheduled completion date provided in the contract documents, but shall proceed with the work. 1) Contractor shall retain any and all rights provided in the contract documents or by law, which pertain to the
resolution of disputes and protests between Contractor
and Owner.

11. Claims of $375,000 or Less: In accordance with Section 20104 through 20104.8 of the California Public Contract Code, Contractor may file claims for time extensions or for payments, in writing and including documentation substantiating the claim, on or before the date of final payment. Procedures, limitations, and provisions for several levels of review are included in said Sections 20104 through 20104.8 and shall supersede conflicting and contrary provisions in the contract documents.
a. Claims shall be as defined in said Section 20104, Subsection (b) (2).

Attachment B

3.08 TAXES, FEES, AND CHARGES
A. Contractor shall pay all sales, consumer, use, and other similar taxes and pay all charges and fees required to be paid by Contractor in accordance with the Laws and Regulations of the place of the project which are applicable during the performance of the work.

B. Contractor shall comply with the provisions of this section to the extent possible under applicable laws and regulations, so that the local 1% share of California’s sales and use tax related to this project shall be allocated to the City of Sana Maria.

Contractor shall provide to the City a list of items (materials, fixtures and machinery and equipment) to be used on the project and the cost of the each item. Contractor shall also designate a contact person and provide to the City the contact person’s name, title, street address, email address and telephone number.

Contractor shall include in its contracts with all subcontractors a provision stating that it is the City’s objective that the local 1% share of California’s sales and use tax be allocated to the City of Santa Maria and that subcontractors shall whenever possible cooperate with the City to achieve this objective by how they report the payment of sales and use tax. The contractor shall provide the City with a list of all subcontractors, the nature of the subcontract, the value of the subcontract and contact information (name, title, subcontractor, street address, email address and telephone number) of the person responsible for such efforts with each subcontractor.

The City or its named representative shall contact the contractor and subcontractors when it is determined that certain actions by the contractor and subcontractors may cause the local 1% share of California’s sales and use to be allocated to the City. The results of such determinations and actions taken by the contractor and subcontractors shall be evaluated by the City as a performance measurement of the contractor in fulfilling the requirement of the contract with the City.

3.09 USE OF PREMISES
A. Contractor shall confine construction equipment, the storage of materials and equipment, vehicle parking, and the operations of workers to the project site and land and areas identified in and permitted by the contract documents and other land and areas permitted by Laws and Regulations, permits and easements, rights-of-way, and shall not unreasonably encumber the premises with construction equipment or other materials or equipment.

Attachment B
B. Contractor shall assume responsibility for damage to any such land or area, or to the owner or occupant thereof or of any land or areas contiguous thereto, resulting from the performance of the work.

1. Should any claim be made against Owner or Engineer by any such owner or occupant because of the performance of the work, Contractor shall promptly attempt to settle with such other party by agreement or otherwise resolve the claim by arbitration or at law.

C. Contractor shall not load nor permit any part of any structure to be loaded in any manner that will endanger the structure, nor shall Contractor subject any part of the work or adjacent property to stresses or pressures that will endanger it.

D. Cleaning the Work Site:

1. The Contractor shall remove all old structures and abandoned facilities in the line of work. These shall be removed from the site along with trash, stones, debris, and other obstructions encountered, at no additional cost to the Owner.

2. During the progress of the work, Contractor shall keep the premises free from accumulations of waste materials, rubbish and other debris resulting from the work.

3. At the completion of the work, Contractor shall remove all waste materials, rubbish and debris from and about the premises as well as all tools, appliances, construction equipment and machinery, and surplus materials, and shall leave the site clean and ready for occupancy by owner.

E. Contractor shall restore to original condition property not designated for alteration by the contract documents.

F. In case of suspension of work, Contractor shall provide suitable drainage and erect temporary structures as necessary.

3.10 RECORD DOCUMENTS
A. Contractor shall maintain, in a safe place at the site, one record copy of all drawings, specifications, addenda, supplemental agreements, change orders, and engineer’s written interpretations and clarifications in good order and annotated to show all changes made during construction.

1. These record documents, together with all approved samples and a counterpart of all approved shop drawings, shall be available to Engineer for reference.

Attachment B
B. Upon completion of the work, the record documents, samples and shop drawings shall be delivered to Owner.

C. Prior to Notice of Completion, Contractor shall retain the services of a City approved draftsman who shall revise the original project plans to reflect all record changes.

3.11 SAFETY AND PROTECTION
A. Precautions and Program

1. Contractor shall be responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with the work or the activities of subcontractors, suppliers, and others at the work site.

2. Contractor shall take all necessary precautions for the safety of, and shall provide the necessary supervision, control, and direction to prevent damage, injury, or loss to:
a. All employees on the work or work site and other persons and organizations who may be affected thereby.
b. All the work and materials and equipment to be incorporated therein, whether in storage or on or off the work site. c. All other property at the site.

B. Protection of Work

1. Contractor shall be responsible for the protection of the work until its completion and final acceptance.
a. Contractor shall, at its own expense, replace damaged or lost material or equipment, or repair damaged parts of the work, and Contractor and its sureties shall be liable therefore.

C. Inconvenience to the Public

1. The Contractor shall schedule work between the hours of 7:00 a.m. and 4:00 p.m., Monday through Friday. All construction activities shall comply with the City of Santa Maria Municipal Code, Chapter 5-5. The Engineer shall approve scheduled nighttime work hours.

2. Contractor shall comply with Laws and Regulations directed to minimize interference to traffic and inconvenience, discomfort and damage to the public including provision for adequate dust control.

Attachment B

3. The Contractor's operation shall cause no unnecessary inconvenience, and the travel rights of the public shall be maintained at all times. This means that no more than one-half of the roadway may be closed at any one time and the other half shall be maintained to permit passage in both directions.

4. Convenient access to driveways, houses, and buildings along the line of the work shall be maintained and temporary approaches to crossings and street intersections shall be provided and kept in good condition. When the abutting property owner's access across the right-of-way line is to be eliminated, or to be replaced under the contract by other access facilities, the existing access shall not be closed until the replacement access facilities are usable.

5. In order to expedite the passage of public traffic through or around the work, and where ordered by the Engineer, the Contractor shall install signs, lights, flares, barricades, and other facilities, and the cost of providing and stationing such flagmen, all for the convenience and direction of public traffic, will be paid for under the various contract unit prices and no additional compensation will be made.

Dust, which may create a hazard, or a nuisance, shall be abated at all times during the entire progress of the work.

D. Public and Private Property

1. Contractor shall protect against injury pipes, sewer conduits, electrical conduits, lawns, gardens, shrubbery, trees, fences, and other structures or property, public and private, encountered in the performance of the work except as stipulated elsewhere herein. a. Contractor shall be responsible and liable for injury to such pipes, structures, and property.

2. Contractor shall not trespass upon private property and shall be responsible for all injury or damage to persons or property, directly or indirectly, resulting from Contractor's operations in the performance of the work.

E. Protection of Materials and Equipment

1. Contractor shall be responsible for the protection of materials and equipment stored on and off the site of the work.

2. Owner reserves the right to direct Contractor to provide proper means of protection for materials or equipment when such is deemed advisable by Engineer; however, the exercise of or failure to exercise this right shall not be deemed to relieve Contractor of its responsibility for protecting the material and equipment.

Attachment B

3. Contractor shall provide suitable warehouses or other adequate means of protection for materials and equipment that require special protection during storage.
a. Contractor shall store and care for the materials and equipment in the most suitable manner to protect them from distortion, rain, dust, or other damage.
b. The cost of replacing any material or equipment damaged in storage shall be borne by Contractor, and the fact that material or equipment has been damaged after partial
payment has been made shall not relieve Contractor of its responsibility regarding the protection of materials and equipment.
1) No motor shall be left uncovered or unprotected.

F. Applicable Laws and Regulations

1. Contractor shall comply with all applicable Laws and Regulations of any public body having jurisdiction for the safety of persons or property or to protect them from damage, injury or loss; and shall erect and maintain all necessary safeguards for such safety and protection.

2. Contractor shall notify owners of adjacent property and of underground facilities and utility owners when prosecution of the work may affect them, and shall cooperate with them in the protection, removal, relocation and replacement of their property.

3. Damage, injury or loss to any property referred to in this Article 3.11, directly or indirectly, in whole or in part, by Contractor, any subcontractor, supplier or any other person or organization directly or indirectly employed by any of them to perform or furnish any of the work or anyone for whose acts any of them may be liable, shall be remedied by Contractor, except damage or loss attributable to the fault of drawings or specifications or to the acts or omissions of Owner or Engineer or anyone employed by either of them or anyone for whose acts either of them may be liable, and not attributable, directly or indirectly, in whole or in part, to the fault or negligence of Contractor.

G. Contractor's duties and responsibilities for the safety and protection of the work shall continue until the work is completed and accepted by Owner.

Attachment B

3.12 EMERGENCIES
A. In emergencies affecting the safety or protection of persons or the work or property at the site or adjacent thereto, Contractor, without special instruction or authorization from Engineer or Owner, shall act to prevent threatened damage, injury or loss.

B. Contractor shall give Engineer prompt written notice when Contractor believes that significant changes in the work or variations from the contract documents have been caused thereby.

C. Where Engineer determines that a change in the contract documents is required because of the action taken in response to an emergency, a change order will be processed as stipulated in PART 5, AMENDMENTS AND CHANGES.

3.13 SHOP DRAWINGS AND SAMPLES
A. Provisions on shop drawings and samples are specified in the special provisions.

3.14 CONTINUING THE WORK
A. In the event of a dispute between the parties as to performance of the work, the interpretation of this contact, or payment, or nonpayment of work performed, parties shall attempt to resolve the dispute.

B. Where the dispute is not resolved, Contractor agrees to continue the work diligently to completion and will neither rescind this contact nor stop the progress of the work, but will submit such controversy to determination in accordance with the terms of the contract documents.

1. However, the preceding does not preclude Contractor from stopping or terminating the work in accordance with Article 8.03, Contractor May Stop work or Terminate.

C. In the event any litigation is commenced with respect to this contract; such litigation shall not serve to suspend Contractor's obligation to continue performance of the work hereunder.

PART 4 ENGINEER'S STATUS DURING CONSTRUCTION

4.01 AUTHORITY OF ENGINEER
A. Engineer will be the initial interpreter of the requirements of the contract documents and will decide questions, which may arise as to the quality and acceptability of the completed work.

Attachment B
B. In observing Contractor's work, Engineer's efforts will be directed towards providing Owner a greater degree of confidence that the completed work will conform to the intent of the contract documents.

C. Neither the authority of Engineer to act under this Article 4.01 or elsewhere in the contract documents, nor any decision made in good faith shall give rise to any duty by Engineer to Contractor or to any other person or organization, including but not limited to, subcontractors, suppliers, insurers, employees, or agents, whether performing work on the site or not.

D. Engineer shall not be responsible for Contractor's means, methods, techniques, sequences, or procedures for construction for the safety precautions and programs incident thereto, or for the safety of persons or property on or about the site of the work.

4.02 CLARIFICATIONS AND INTERPRETATIONS
A. Engineer will issue with reasonable promptness such written clarifications or interpretations of the requirements of the contact document, in the form of drawings or otherwise, as Engineer may determine necessary, which shall be consistent with or reasonably inferable from the overall intent of the contract documents.

B. When Contractor believes that a written clarification or interpretation issued by Engineer justifies a change in the contract price or an extension of the contract time, or both, Contractor may make a claim therefore in accordance with Article 5.05, Claims.

1. For such claim, Contractor shall give Engineer:
a. Written notice of such claim within forty-eight (48) hours after the receipt of such written clarification or interpretation from Engineer.
b. Statement and supporting data within 7 days after the receipt of such written clarification or interpretation from Engineer.

2. Except for such claims of record as are made in the manner and within the time stated in this Paragraph B., Contractor shall be deemed to have waived and does hereby waive all claims for damages and for adjustments to the contract time, the contract price, or both, resulting from written clarifications or interpretations issued by Engineer.

3. The claim will be processed as stipulated in Article 5.05, Claims.

Attachment B

4.03 ROLE IN CLAIMS AND DISPUTES
A. Claims, disputes, and other matters relating to the acceptability of the work or the interpretation of the requirements of the contract documents pertaining to the performance and furnishing and installation of the work and claims for changes in the contract price or contract time shall be submitted initially to Engineer, in writing, with a request for a formal decision, in accordance with Article 5.05, Claims.

B. Engineer will render a decision in writing within a reasonable time.

C. The rendering of a decision by Engineer with respect to any such claim, dispute, or other matter shall be a condition precedent to any exercise by Contractor of such rights or remedies as it may otherwise have under the contract documents or by Laws and Regulations in respect of any such claim, dispute, or other matter.

D. Engineer, upon receipt of Contractor's claim for a work demand outside the requirements of the contract documents, or for an incorrect or unfair clarification, interpretation, or finding by Engineer, will review the work demand, clarification, interpretation or finding object of Contractor's claim and will promptly advise Contractor in writing of Engineer's final decision which shall be binding unless, within 10 days thereafter Contractor shall file with Owner a formal protest against said final decision of Engineer.

E. Within 30 days of receipt of such protest owner will render a decision.

F. When Engineer's and Owner's decisions give rise to a claim as defined in Section 20104 (b) (2) of the California Public Contract Code and does not exceed $375,000, the requirements and procedures set forth in Section 20104.02 of the California Public Contract code shall apply.

4.04 AUTHORIZED VARIATIONS IN WORK
A. Engineer may authorize minor variations in the work from the requirements of the contract documents, which do not involve an adjustment in the contract price or the contract time and are consistent with the overall intent of the contract documents.

B. When Contractor believes that such authorized minor variations justify a change in the contract price or an extension of the contract time and the parties are unable to agree as to the amount or extent thereof, Contractor may make a claim therefore in accordance with Article 5.05, Claims.

Attachment B

4.05 REJECTING DEFECTIVE WORK
A. Engineer will have authority to disapprove or reject work which Engineer believes to be defective, and will also have authority to require special inspection or testing of the work, whether or not the work is fabricated, installed, or completed.

B. Materials and Equipment

1. Materials and equipment found to be defective, whether in place or not, may be rejected.

2. Rejected materials and equipment shall be removed immediately from the site of the work unless otherwise permitted by Engineer. a. Where Contractor fails to remove and replace rejected material or equipment, Owner has authority to do so and to deduct the cost of removal and replacement from any moneys due or to become due Contractor.

3. Rejected material or equipment subsequently corrected and rendered non-defective may be used in the work only upon acceptance by Engineer.

PART 5 AMENDMENTS AND CHANGES

5.01 AMENDMENTS AND CHANGES TO CONTRACT DOCUMENTS
A. Without invalidating the Agreement and without notification of sureties, the contract documents may be amended and changed to provide for additions, deletions, and revisions or to modify terms and conditions, including changes to the work, contract price, and contract time.

B. Amendments and changes to the contract documents will be authorized by a Supplemental Agreement or a Change Order, except that Engineer may authorize changes in the work as stipulated in:

1. Paragraph 2.03 D., Amendment to Contract Documents.

2. Article 4.04, Authorized Variations in Work.

C. Adjustments to Contract Time and Contract Price

1. The contract time and contract price may only be changed by a Change Order or by a Supplemental Agreement.

2. Upon demand of either Contractor or Owner, an equitable Attachment B
adjustment satisfactory to both parties will be made in the contract price, the contract time, or both.

3. Contractor shall not be entitled to an increase in the contract price or an extension of the contract time with respect to any work performed that is not required by the contract documents as amended, modified, and supplemented; except as follows:
a. In the case of an emergency, in accordance with Article 3.12, Emergencies.
b. In the case of uncovering work, in accordance with Article

6.04, Covering and Uncovering Work.

D. Execution

1. Supplemental Agreements: Owner and Contractor shall execute Supplemental Agreements, and Owner shall promptly furnish Engineer a copy of such Supplemental Agreements.

2. Change Orders: Owner, Contractor, and Engineer shall execute change orders.

3. Upon receipt of any such document, Contractor shall promptly proceed with the work involved, which shall be performed under the applicable conditions of the contract documents or as otherwise specifically provided in such document.

5.02 CHANGE OF CONTRACT PRICE
A. Total Compensation

1. The contract price constitutes the total compensation, subject to authorized adjustments as provided herein, payable to Contractor for performing the work.

2. All duties, responsibilities, and obligations assigned to or undertaken by Contractor shall be at its expense without change in the contract price.

B. The adjustment in contract price will be determined and paid in one of the following ways:

1. By unit prices acceptable to Owner and Contractor.

2. By lump sum prepared by Contractor and found acceptable by Owner.

Attachment B

3. By force account in accordance with Article 5.04, Force Account.

4. Otherwise, as agreed by Owner and Contractor.

C. Upon request by Engineer, Contractor shall submit promptly an itemized cost breakdown together with supporting data, satisfactory to Engineer, substantiating adjustments in contract price.

1. Contractor's expenses for the preparation of supporting data and cost estimates shall not be considered a direct cost payable in the contract price adjustment for an amendment or change.

D. When prices cannot be agreed upon, Owner may take one of the following actions:

1. Partial termination of contract for the items in question:
a. Such partial termination shall not be interpreted as a breach of contract and shall not give rise to Contractor's claim for an adjustment in contract price, contract time, or both.
b. Owner may proceed to have the items in question performed by its own forces or by others.

2. Direct Contractor to proceed with the items in question on a force account basis in accordance with Article 5.04, Force Account. a. Upon receipt of Owners direction to proceed on a force account basis, Contractor shall promptly undertake the
performance of the items in question under the applicable requirements of the contract documents or as otherwise
specifically provided.

5.03 CHANGE OF CONTRACT TIME
A. Time limits stated in the contract documents are of the essence of the Agreement.

1. The provisions under this article shall not exclude recovery for damages including, but not limited to, fees and charges of engineers, architects, attorneys, and other professionals and court and arbitration costs for delay.

B. Weather Related Extension of Time

1. Contractor may be entitled to an extension of contract when the work Attachment B
has been suspended in whole or in part due to weather conditions which delayed progress; provided that:
a. Such delayed progress is clearly beyond the control of Contractor.
b. Contractor is not at fault.
c. Contractor is not negligent under the terms of the contract documents.

2. Contractor shall submit a claim for a weather-related extension of the contract time so that Engineer receives such claim not later than 10 days following the end of the delay-causing condition.
a. Such claim shall be in writing and shall state the reason for and the extent of the requested time extension.

3. Owner will ascertain the facts and the extent of the delay and make a finding of the facts thereon.
a. No extension in contract time will be allowed for the first 20 working days lost due to weather conditions.

4. Owner may grant an extension of time after the expiration of the original contract time as previously extended, and the extension so granted shall be deemed to commence and be effective from the date of such expiration.
a. No other compensation or payment will be allowed for time lost due to weather.

C. Other Delays Beyond Contractor's Control

1. Contractor shall not be assessed liquidated damages for delays in the completion of the work caused by acts of God, acts of criminals, acts of Owner, acts of public utilities, delays covered in Subparagraph 2.05 B.7., fire, floods, epidemics, quarantine restrictions, labor strikes that delay the critical sequence of the work, or delays of subcontractors due to such causes, provided that Contractor shall notify Owner in writing the causes of such delay in accordance with Article 5.05, Claims.

Contractor shall have no claim for any other compensation for any such delay.

D. Limit to Contract Time Extension
Attachment B

1. The contract time will be extended only when and to the extent that the justified causes of delay affect the prosecution of work having a direct effect on the critical sequence of performance (critical path) required to complete the contract within the contract time.

2. Other limitations are stipulated in Paragraph D of Article 6.09, Owner May Correct Defective Work.

5.04 FORCE ACCOUNT
A. When directed by Owner, Contractor should promptly perform changes in the work pursuant to force account procedures.

Under such procedures, Contractor will be compensated for the costs of labor, materials, equipment, overhead, and other concepts as stipulated hereinafter.

2. Change order authorizing force account work.
a. Owner will issue a change order authorizing force account work, and this change order will include a description of the work to be performed and a preliminary cost estimate
prepared by Engineer.
1) The change orders authorizing force account work
shall be signed by Contractor to acknowledge receipt
of Owner's direction but not as an approval of the
preliminary cost estimate.
b. Contractor shall proceed to perform the force account work but shall not exceed the cost set in the change order
authorizing force account work unless by subsequent change order Owner authorizes an additional cost allowance.
c. Upon completion of the force account work, Owner will issue a change order closing the force account work and adjusting the cost figures and contract price as well as adjusting the contract time, when applicable.
1) This change order closing the force account work shall be signed by Contractor to signify Contractor's
acceptance of the adjustments to the contract price
and contract time.

B. For the cost of labor and foremen in direct charge of the specific operations related to the force account work, Contractor will be paid:

1. The cost of wages paid by Contractor at rates not to exceed those Attachment B
for comparable labor currently employed on the work.

2. The cost of industrial accident or Worker's Compensation Insurance.

3. The cost of social security taxes and unemployment compensation insurance.

4. The amounts paid by Contractor by reason of an employment contract generally applicable to its employees.

5. An amount equal to 25% of the cost of wages and other costs listed before to cover Contractor's overhead and profit.
a. Owner will make no additional payment for subcontractors or others employed by Contractor in the performance of force account work.
b. Contractor shall negotiate with subcontractors and others the appropriate compensation for overhead and profit.

C. Cost of Tools and Equipment

1. For the use of power tools and special or heavy equipment, except small tools and minor items of equipment stipulated below, Contractor will be paid in accordance with the current edition of "Labor Surcharge and Equipment Rental Rates" published by the State of California, Department of Transportation, Caltrans. a. In the event that any of the equipment to be used is not listed in said schedule; the rental rate for such equipment shall be as agreed upon in writing before the force account work is started.
b. No separate payment will be made for the use of small tools and minor items of equipment which cost shall be considered included in the overhead allowance.
1) As used herein, small tools and minor items of
equipment shall be individual tools or items of
equipment having each a replacement value of $200 or
less.

2. To cover Contractor's overhead and profit, 15% shall be added to such rental rates.

D. Cost of Materials and Equipment

1. For the cost of materials and equipment accepted by Engineer and Attachment B
used or installed in the force account work, Contractor will be paid the actual cost of such material and equipment, including transportation charges, to which cost shall be added a sum equal to 15% thereof to cover Contractor's overhead and profit.

E. Supervision and Overhead

1. No separate payment will be made for general superintendence.

2. The cost of supervision and overhead shall be understood to be included in the 25% added for labor and the 15% added for the other concepts in accordance with the preceding stipulations.

F. Defective Work

1. Contractor shall repair, reconstruct, replace, or otherwise make acceptable work found by Engineer to be defective, and costs incurred by Contractor to make such defective work acceptable shall be considered as included in the 25 and in the 15% overhead and profit allowances stipulated previously.

G. Records

1. At the end of each day, Contractor and Engineer shall compare the records of force account work performed and resolve disagreements.

2. Copies of these records shall be made on suitable forms provided for this purpose and signed by Engineer and Contractor.

3. Invoices for force account work shall be certified by Contractor, and shall be submitted to Engineer not later than the 5th day of the month following that in which the force account work was performed.

5.05 CLAIMS
A. . Claims for a change in the contract price or in the contract time shall be based on written notice sent to the Engineer by registered mail or certified mail, return receipt requested, stating clearly and in detail claimant’s objections and reasons for the claim.

1. The notice shall be delivered within the number of days stipulated in each case, and where the number of days is not stipulated, promptly, but in no event later than 10 days after the occurrence of the event giving rise to the claim.

B. The notice shall be followed with a statement delivered to Engineer, Attachment B
detailing the adjustment to the contract price or contract time, or both, sought by the claimant together with supporting data and a declaration, as set forth in the following:

1. The statement and supporting data shall be delivered within the number of days stipulated in each case, and where the number of days is not stipulated, not later than 20 days after the occurrence of the event giving rise to the claim, unless Engineer allows an additional period of time to ascertain more accurate data in support of the claim.

2. The statement and supporting data shall be accompanied by claimant's written declaration that the amount and time claimed cover all known amounts (direct, indirect, and consequential) and time to which the claimant is entitled as a result of the occurrence of said event.

C. Review of Claims

1. As required by Public Contracts Code Section 9204, a copy of which is attached and incorporated herein, Engineer will review claims within a reasonable time, not to exceed 45 days, and will provide a written statement identifying what portion of the claim is disputed and what portion is undisputed to claimant and to the other party. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision. a. If the Engineer needs approval from the City Council to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. b. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the Engineer issues his or her written statement. If the Engineer fails to issue a written statement, Failure by the Engineer to respond to a claim from a contractor within the time periods described above or to otherwise meet the time requirements set forth herein shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the Engineer’s failure to have responded to a claim, or its failure to otherwise meet the time requirements set forth herein, shall not constitute an adverse finding with regard Attachment B
to the merits of the claim or the responsibility or qualifications of the claimant.

2. If the claimant disputes the Engineer’s written response, or if the Engineer fails to respond to a claim within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute.

3. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the Engineer shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to non-binding mediation, with the Engineer and the claimant sharing the associated costs equally. The Engineer and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator, and those mediators shall select a qualified neutral third party to mediate regarding the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section.
a. For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. b. Unless otherwise agreed to by the Engineer and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Public Contracts Code Section 20104.4 to mediate after litigation has been commenced. c. This section does not preclude the Engineer from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program if mediation under this section does not resolve the parties' dispute.

4. Amounts not paid in a timely manner as required herein shall bear interest at 7 percent per annum.

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

6. A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the Engineer may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.

D. Claims for an adjustment in contract price or contract time, or both, will be invalid when not submitted in accordance with this article.

E. Provisions relating to claims are stipulated elsewhere in these General conditions and include:

1. Subparagraph 2.03 C.2.: Claim for omissions, conflicts, errors, or discrepancies in the contract documents.

2. Subparagraph 2.05 A.4.: Claim for Owner's delay in furnishing lands, rights-of-way, or easements.

3. Subparagraph 2.05 B.8.: Claim for interference or relocation of underground facilities.

4. Subparagraph 3.01 A.1.a.: Claims for demands outside the requirements of the contract documents, or for incorrect or unfair actions of Engineer.

5. Paragraph 4.02 B.: Claims for increase in contract price or extension of contract time as a consequence of a clarification or interpretation by Engineer.

6. Article 4.03: Engineer's role in claims and disputes.

7. Paragraph 4.04 B.: Claim for increase of contract price or extension Attachment B
of contact time as a consequence of a minor variation.

8. Paragraph 6.04 B.: Claims for increase in contract price or extension of contract time or both for uncovering work.

9. Article 6.08: Claims related to acceptance of work that is defective.

10. Paragraph 6.09 C.: Claims related to Owner's correction of defective work.

11. Paragraph 8.01 B.: Contractor's claim for an increase in contract price, an extension of contract time, or both in case of suspension of work by Owner.

PART 6 QUALITY ASSURANCE AND QUALITY CONTROL

6.01 CONTRACTOR'S WARRANTY
A. Contractor warrants and guarantees to Owner and Engineer that the work will be in accordance with the contract documents and will not be defective.

1. Prompt notice of defects observed by Engineer or Owner will be given to Contractor.
a. However, Owner and Engineer are under no obligation to do so and neither Owner nor Engineer shall be held liable
because Owner or Engineer does not discover defective work during the progress of construction.

2. Defective work, whether or not in place, may be rejected, corrected, or accepted as provided in this PART 6, QUALITY ASSURANCE

AND QUALITY CONTROL
B. The warranty provided herein should not be in lieu of, but shall be in addition to any warranties or other obligations otherwise imposed by the contract document or by law.

1. The remedies provided herein should not be exclusive and Owner shall be entitled to any and all remedies provided by law.

6.02 ACCESS TO WORK
A. Engineer and Engineer's representatives, other representatives of Owner, testing agencies, and governmental agencies with jurisdictional interests shall have access to the work at reasonable times for their observation, inspecting, and testing.

Attachment B
B. Contractor shall provide proper and safe conditions for such access.

6.03 TESTS AND INSPECTIONS
A. Contractor shall give Engineer timely notice of readiness of the work for required inspections, tests, or approvals.

B. The City shall be responsible for arranging and obtaining inspection and tests. City shall pay for all costs associated with the initial test at any location. If the tested material fails the test, the Contractor shall repair, rework, reconstruct, and perform all work necessary to achieve the final condition specified by the contract documents, and shall pay all costs associated with any and all subsequent tests until the material meets or exceeds the test criteria. Contractor shall be responsible for obtaining approvals, and shall submit Contractor's work for inspection, testing, or approval required:

1. Specifically by Laws and Regulations of any public body having jurisdiction over the work or a part thereof.

2. In connection with Owner or Engineer's acceptance of a supplier of materials or equipment proposed to be incorporated in the work.

3. Of materials or equipment submitted for approval prior to Contractor's purchase thereof for incorporation in the work.

C. The cost of inspections, tests, and approvals in addition to those stipulated in the preceding Paragraph B, which are required by the contract documents, shall be paid by Owner unless otherwise specified in the specifications.

D. Inspections, tests, or approvals other than those required by Laws or Regulations of any public body having jurisdiction shall be performed by organizations acceptable to Owner.

E. Neither observations by Engineer nor inspections, tests or approvals by others shall relieve Contractor from Contractor's obligations to perform the work in accordance with the contract documents.

6.04 COVERING AND UNCOVERING WORK
A. When work, including work of others, that is to be inspected, tested, or approved is covered without written concurrence of Engineer, it shall, when requested by Engineer, be uncovered for observation.

Attachment B

1. Such uncovering shall be at Contractor's expense unless Contractor has given Engineer timely notice of Contractor's intention to cover the same and Engineer has not acted with reasonable promptness in response to such notice.

B. When work is covered contrary to the written request of Engineer, it shall, when requested by Engineer, be uncovered for Engineer's observation and replaced at Contractor's expense.

C. When Engineer considers it necessary or advisable that covered work be observed by Engineer or inspected or tested by others, Contractor, at Engineer's request, shall uncover, expose or otherwise make available for observation, inspection or testing, as Engineer may require, that portion of the work in questions, furnishing all necessary labor, material and equipment.

1. When it is found that such work is defective, Contractor shall bear all direct, indirect and consequential costs of such uncovering, exposure, observation, inspection and testing and of satisfactory reconstruction, (including, but not limited to, fees and charges of engineers, architects, attorneys and other professionals), and Owner shall be entitled to an appropriate decrease in the contract price, and, when the parties are unable to agree as to the amount thereof, may make a claim therefore in accordance with Article 5.05, Claims.

2. When, however, such work is not found to be defective, Contractor shall be allowed an increase in the contract price or an extension of the contract time, or both, directly attributable to such uncovering, exposure, observation, inspection, testing and reconstruction; and, when the parties are unable to agree as to the amount or extent thereof, Contractor may make a claim therefore in accordance with Article 5.50, Claims.

6.05 OWNER MAY STOP THE WORK AND TERMINATE THE CONTRACT A. Stopping the Work by Owner

1. When the work is defective or Contractor fails to supply sufficient skilled workers or suitable materials or equipment, or fails to furnish or perform the work in such a way that the completed work will conform to the contract documents, Owner may order Contractor to stop the work, or any portion thereof, until the cause for such order has been eliminated.

2. However, this right of Owner to stop the work shall not give rise to any duty on the part of Owner to exercise this right for the benefit of Attachment B
Contractor or any other party.

B. Terminating the Work by Owner

1. Owner may serve written notice upon Contractor and its surety of Owner's intention to terminate the contract, said notice containing the reasons for such intention to terminate the contract, and unless within 10 days after the service of such notice such violations shall cease and satisfactory arrangements for the corrections thereof be made, the contract shall, upon the expiration of said 10 days, cease and terminate.

2. In the event of any such termination, Owner will immediately serve written notice thereof upon the surety. Contractor and the surety shall have the right to take over and perform the contract; provided, however, that when the surety, within 15 days after the serving upon it of a notice of termination, does not give Owner written notice of surety's intention to take over and perform the contract or does not commence performance thereof within 30 days from the date of serving said notice, Owner may take over the work and prosecute the same to completion by contract or by any other method Owner may deem advisable for the account and at the expense of Contractor and its surety, shall be liable to Owner for any excess cost or other damage caused to Owner thereby, and in such event Owner may, without liability for so doing, take possession of and utilize in completing the work such materials, equipment, appliances, plants and other property belonging to Contractor that may be on the site of the work and be necessary therefore.

3. For any portion of such work that Owner elects to complete by furnishing employees, materials, tools and equipment, Owner will be compensated for such in accordance with the schedule of compensation for force account work under the article on payment for changes in the work.

C. The provisions in this Article 6.05 are in addition to and not in limitation of any other rights or remedies available to Owner.

6.06 CORRECTION OR REPLACEMENT OF DEFECTIVE WORK
A. When required by Engineer, Contractor shall promptly, as directed, either correct defective work, whether or not fabricated, installed or completed, or, where the work has been rejected by Engineer, remove it from the site and replace it with non-defective work.

B. Contractor shall bear all direct, indirect and consequential costs of such correction or replacement and removal (including but not limited to fees and charges of engineers, architects, attorneys and other professionals) made Attachment B
necessary thereby.

6.07 ONE YEAR CORRECTION PERIOD
A. When within one year after the date of Owner's acceptance of the work or such longer period of time as may be prescribed by Laws or Regulations or by the terms of any applicable special guarantee required by the contract documents or by any specific provisions of the contract documents, any work is found to be defective, Contractor shall promptly, without cost to Owner and in accordance with Owner's written instructions, either correct such defective work, or, when it has been rejected by Owner, remove it from the site and replace it with non-defective work.

B. Where Contractor does not promptly comply with the terms of such instructions, or in an emergency where delay would cause serious risk of loss or damage, Owner may have the defective work corrected or the rejected work removed and replaced, and all direct, indirect and consequential costs of such removal and replacement (including but not limited to fees and charges of engineers, architects, attorneys and other professionals) shall be paid by Contractor.

1. In special circumstances where a particular item of equipment is placed in continuous service before final acceptance of the work by Owner, the correction period for that item may start to run from an earlier date when so provided in the specifications or by Supplemental Agreement.

C. In the event it is necessary for Owner to file suit to enforce any liability of Contractor pursuant to this Article 6.07, Owner shall be entitled to recover from Contractor, in addition to all other amounts found due and owing, costs of suit and expenses including, but not limited to, fees of engineers, architects, attorneys and other professionals and court and arbitration costs arising directly, indirectly or consequential out of any action, legal or equitable, caused by the successful enforcement of Contractor's obligations, all to be taxed as costs and included in any judgement rendered.

D. Contractor shall execute and deliver, to Engineer, a copy of Document 00680, Warranty Form, before Owner's final acceptance of the work.

6.08 ACCEPTANCE OF DEFECTIVE WORK
A. When instead of requiring correction or removal and replacement of defective work, Owner (and, prior to Engineer's recommendation of final payment, also Engineer) prefers to accept it, owner may do so.

Attachment B
B. Contractor shall bear all direct, indirect and consequential costs attributable to Owner's evaluation of and determination to accept such defective work (such costs to be approved by Engineer as to reasonableness and to include but not be limited to fees and charges of engineers, architects, attorneys and other professionals).

C. When any such acceptance occurs prior to Engineer's recommendation of final payment, a Change Order will be issued incorporating the necessary revisions in the contract documents with respect to the work; and Owner shall be entitled to an appropriate decrease in the contract price, and, when the parties are unable to agree as to the amount thereof, Owner may make a claim therefore in accordance with Article 5.05, Claims.

D. When the acceptance occurs after such recommendation, an appropriate amount shall be paid by Contractor to Owner.

6.09 OWNER MAY CORRECT DEFECTIVE WORK
A. When Contractor fails within a reasonable time after written notice of Engineer to proceed to correct and to correct defective work or to remove and replace rejected work as required by Engineer in accordance with provisions stipulated elsewhere in these General Conditions, or when Contractor fails to perform the work in accordance with the contract documents, or when Contractor fails to comply with any other provision of the contract documents, Owner may, after 7 days written notice to Contractor, correct and remedy any such deficiency.

B. In exercising the rights and remedies under this Article 6.09, Owner will proceed expeditiously.

1. To the extent necessary to complete corrective and remedial action, Owner may exclude Contractor from all or part of the site, take possession of all or part of the work, and suspend Contractor's services related thereto, take possession of Contractor's tools, appliances, construction equipment and machinery at the site and incorporate in the work all materials and equipment stored at the site or for which Owner has paid Contractor but which are stored elsewhere.

2. Contractor shall allow owner such access to the site as may be necessary to enable Owner to exercise the rights and remedies under this Article 6.09.

C. All direct, indirect and consequential costs of Owner in exercising such rights and remedies will be charged against Contractor in an amount approved as to reasonableness by Engineer, and a Change Order will be Attachment B
issued incorporating the necessary revisions in the contract documents with respect to the work; and owner shall be entitled to an appropriate decrease in the contract price, and, when the parties are unable to agree as to the amount thereof, Owner may make a claim therefore in accordance with Article 5.05, Claims.

1. Such direct, indirect and consequential costs will include but not be limited to fees and charges of engineers, architects, attorneys and other professionals, all court and arbitration costs and all costs of repair and replacement of work of others destroyed or damaged by correction, removal or replacement of Contractor's defective work.

D. Contractor shall not be allowed an extension of the contract time because of any delay in performance of the work attributable to the exercise by Owner of Owner's rights and remedies under this Article 6.09.

6.10 STORM WATER POLLUTION PREVENTION
A. Summary

1. Requirements for preparation and implementation of the Storm Water Pollution Prevention Plan for the Contractor’s construction activities.

B. References

1. United States Code of Federal Regulations (CFR):
a. 40 CFR Part 117.
b. 40 CFR Part 302.

2. State of California, State Water Resources Control Board, Regional Water Quality Control Board (SWRCB).

C. Submittals

1. Storm Water Pollution Prevention Plan:
a. Prepare and submit a Storm Water Pollution Prevention Plan (Plan) in accordance with Section A of the General
Construction Activity Storm Water Permit to the Owner for reference.
b. Prepare and submit a monitoring program and reporting plan in accordance with Section B of the General Construction Activity Storm Water Permit to the Owner for reference.

Attachment B
c. Submit to the Owner for reference a Storm Water Pollution Prevention Plan detailing the placement of physical Best Management Practices (BMPs) required for installation and the methods used to comply with those BMPs directed at
operational procedures, Monitoring Program and Reporting Plan.
d. The plan shall specifically address and detail changes from the alternatives called out in this section. The Contractor’s preferred techniques shall show how it will comply with the stated objectives of the program.
e. The plan shall address various project phases and operations, including BMPs specific to earthwork sequencing (demolition, stockpiling, material segregation, etc.).
f. A copy of the Notice of Intent (NOI) must be submitted to the City of Santa Maria as required by the NPDES Phase II
regulation.
g. All submittals are required prior to issuance of the Notice to Proceed.

Attachment B
D. Contractor’s Responsibilities

1. Keep and maintain the Plan at the construction site for the duration of the project.

E. BMP Products

1. General: Those products required to implement the BMPs.

F. Execution – Contractor’s Actions

1. Take the proper actions to prevent contaminants and sediments from entering the storm drainage system should any unforeseen circumstance occur.

2. Take immediate action if directed by the City Engineer, or if the Contractor observes contaminants and/or sediments entering the storm drainage system, to prevent further storm water from entering the system.

3. Pay all fines and respond to Notice of Violations.

PART 7 PAYMENTS TO CONTRACTOR AND COMPLETION

7.01 SCHEDULE OF VALUES
A. Basis for Progress Payments

1. The schedule of values established as specified in the special provisions shall serve as the basis for progress payments and will be incorporated into a form of Application for Payment acceptable to Engineer.

2. Progress payments on account of unit price work will be based on the number of units completed.

7.02 APPLICATION OF PROGRESS PAYMENT
A. Once each month Owner will process a progress payment on the basis of an Application for Payment approved by Engineer for work completed during the preceding month.

1. The Application for Payment shall be prepared and signed by Contractor who shall submit it to Engineer.

B. The Application for Payment shall cover work performed by Contractor Attachment B
during the preceding month plus the paid invoice cost of materials and equipment suitably stored at the site of the work.

1. Payment for material and equipment stored shall be based on vendors' paid invoices, which shall be listed by Contractor. a. The first Application for Payment in which payment is requested for material and equipment suitably stored shall include a copy of the paid invoice covering the material and equipment; a warranty that the materials and equipment are free and clear of liens, charges, security interests, and encumbrances; and evidence that the materials and
equipment are covered by appropriate property insurance and other arrangements to protect Owner's interest therein; all of which will be satisfactory to Owner.
1) Contractor shall prepare and update for each
Application for Payment a list of invoices showing:
a) The total amount of each invoice.
b) The invoice amount that has been incorporated
in the work.
c) The remaining invoice amount that is stored for
which payment is requested that month.
b. Only material and equipment that will become an integral part of the work may be included in the Application for Payment. c. Payments for job site delivered material or equipment shall not reduce Contractor's responsibility for such material or equipment until final acceptance of the work by Owner.

C. Owner will withhold part of the progress payment amount, as follows:

1. Not more than 5% of the progress payment amount until the work is complete.

2. As stipulated in Document 00022, Notice Inviting Bids, Contractor may substitute securities for any monies withheld by Owner. a. Procedures shall be as provided in Section 22300 of the California Public Contract Code.

Attachment B

7.03 CONTRACTOR'S WARRANTY OF TITLE
A. Contractor warrants and guarantees that title to work, materials and equipment covered by an Application for Payment, whether incorporated in the work or not, shall pass to Owner no later than the time of payment free and clear of liens, charges, security interests, and encumbrances.

B. Nothing in the contract shall be construed as vesting in Contractor any right of property in material and equipment used after they have been attached or affixed to the work or the soil and accepted.

1. Such materials and equipment shall become the property of Owner upon being so attached or affixed and accepted.

7.04 PARTIAL ACCEPTANCE
A. Unless otherwise specified in the special provisions, no partial acceptance of the work will be made, and no acceptance other than the final acceptance of the completed work will be made.

B. Acceptance of parts of the work shall not be construed as final acceptance until owner makes final acceptance of the completed work.

7.05 NOTICE OF READINESS AND FINAL OBSERVATION
A. After Contractor has completed the work to the best of its knowledge, including Contractor's inspection, testing and cleanup, Contractor shall notify Engineer by written memorandum that the work has been completed and is ready for final observation by Engineer.

B. In accordance with Paragraph 4.01B, Engineer will perform observation of the work promptly after receipt of Contractor's notification.

1. Items observed by Engineer to be defective will be noted to Contractor.

2. After Contractor has corrected defective items, the procedure shall be the same as stipulated under this Article 7.05 for Contractor's Notice of Readiness and Final Observation.

C. When, upon observing the work, Engineer finds no defective work, materials, or equipment, and Engineer finds the work to be in compliance with the contract documents, Engineer will notify Owner promptly that the work has been completed.

Attachment B

7.06 FINAL PAYMENT AND FINAL ACCEPTANCE
A. For and in consideration of the performance of the work, Owner will pay Contractor the amount earned as computed from the actual quantities of work performed under the contract and will make such payment in the manner and at the times stipulated. Not withstanding any other language in this agreement, withholding and payment shall comply with Public Contract Code, Section 7107.

B. Within 30 days after final acceptance of the work, Engineer will render to Owner and to Contractor a final estimate which will show the amounts due Contractor.

C. Within 40 days after the final acceptance of the work, Owner will pay to Contractor the amounts due under the contract, except that before the final payment will be made, Contractor shall:

1. Satisfy Owner by affidavit that all bills for labor and materials incorporated in the work have been paid.

2. Complete and submit, to Engineer, a Certification relinquishing any and all claims or right of lien under, in connection with, or as a result of the work.

D. The date upon which the work will be considered as complete shall be the date upon which Owner accepts the work.

E. This section shall not prohibit a public entity from placing in a public works contract and enforcing a contract provision which provides that payment of undisputed contact amounts is contingent upon the Contractor furnishing the public entity with a release of all claims against the public entity arising by virtue of the public works contract related to those amounts. Disputed contract claims in stated amounts may be specifically excluded by the Contractor from the operation of the release.

7.07 CONTRACTOR'S CONTINUING OBLIGATION
A. Contractor's obligation to perform and complete the work in accordance with the contract documents shall be absolute.

B. Neither recommendation of any progress or final payment by engineer, nor the issuance of a certificate of final completion, nor any payment by Owner to Contractor under the contract documents, nor any use or occupancy of the work or any part thereof by Owner, nor any act of acceptance by Owner nor any failure to do so, nor any review and approval of a shop drawing or sample submission, nor the issuance of a notice of acceptability by Engineer, nor any correction of defective work by Owner shall constitute an acceptance of work not in accordance with the contract documents or a Attachment B
release of Contractor's obligation to perform the work in accordance with the contract documents.

PART 8 SUSPENSION OF WORK AND TERMINATION

8.01 OWNER MAY SUSPEND WORK
A. Owner may, at any time and without cause, suspend the work or any portion thereof for a period of not more than 90 days by notice in writing to Contractor and Engineer.

1. In the notice, Owner will fix the date on which work will be resumed.

2. Contractor shall resume the work on the date so fixed.

B. Contractor will be allowed an increase in the contract price or an extension of the contract time, or both, directly attributable to any suspension when Contractor makes an approved claim therefore in accordance with Article

5.05, Claims.

8.02 OWNER MAY TERMINATE
A. Upon 7 days written notice to Contractor and Engineer, Owner may, without cause and without prejudice to any other right or remedy, elect to abandon the work and terminate the agreement.

1. In such case, Contractor shall be paid for all work executed and any expense sustained plus reasonable termination expenses, which will include, but not be limited to, direct, indirect and consequential costs (including, but not limited to, fees and charges of engineers, architects, attorneys and other professionals and court and arbitration costs).

8.03 CONTRACTOR MAY STOP WORK OR TERMINATE
A. When, through no act or fault of Contractor, the work is suspended for a period of more than 90 days by Owner or under an order of court or other public authority, or Engineer fails to act on any application for payment within 30 days after it is submitted, or Owner fails for 60 days to pay Contractor any sum finally determined to be due, then Contractor may, upon 7 days written notice to Owner and Engineer, and provided Owner or Engineer do not remedy such suspension or failure within that time, terminate the agreement and recover from owner payment on the same terms as provided in Article 8.02, Owner May Terminate.

1. In lieu of terminating the agreement and without prejudice to any other right or remedy when Engineer has failed to act on an application for payment within 30 days after it is submitted, or Owner Attachment B
has failed for 60 days to pay Contractor any sum finally determined to be due, Contractor may, upon 7 days written notice to Owner and Engineer, stop the work until payment of all such amounts due Contractor including interest.

B. The provisions of this Article 8.03 are not intended to preclude Contractor from making claim under Article 5.02, Change of Contract Price and Article

5.03, Change of Contract Time.

Attachment B
PART 9 PUBLIC CONTRACT CODE SECTION 9204
Attachment B
Attachment B
Attachment B
PART 10 MISCELLANEOUS

10.01 ASSIGNMENT OF PAYMENTS
A. No assignment by Contractor of the whole or any part of the contract, or of funds to be received there under by Contractor, will be recognized by Owner unless such assignment has had prior consent of Owner, and Contractor's surety has been given due notice of such assignment in writing and has consented thereto in writing.

10.02 ASSIGNMENT TO AWARDING BODY
A. In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, Contractor or subcontractor offers and agrees to assign to Owner all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2 [commencing with Section 16700] of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to this contract or the subcontract.

B. This assignment shall be made and become effective at the time Owner tenders final payment to Contractor, without further acknowledgement by Attachment B
the parties.

10.03 RESPONSIBILITY FOR INDEBTEDNESS
A. Indebtedness incurred for any cause in connection with the work shall be paid by Contractor, and Owner is hereby relieved at all times from any indebtedness or claim other than payments under terms of the contract or under applicable Laws and Regulations.

10.04 PROVISIONS REQUIRED BY LAW
A. Each and every provision of law and clause required by Laws and Regulations to be inserted in the contract shall be deemed to be inserted herein, and the contract shall be read and enforced as though each such provision of law and clause were included herein.

B. When through mistake or otherwise any such provision of law and clause is not inserted or is not correctly inserted, then upon the application of either party, the contract shall forthwith be physically amended to make such insertion.

10.05 NOTICE AND SERVICE THEREOF
A. Any notice to Contractor from Owner relative to any part of the contract shall be in writing and considered delivered and the service thereof completed when said notice is posted, by registered mail, to Contractor at its last given address, or delivered in person to Contractor or its representative on the work.

10.06 RIGHT-OF-WAY DELAYS
A. Contractor shall contact all utility companies, and others, who have facilities and predicate his schedule for the work upon the anticipated time of clearance. The City shall not be held either responsible or liable for any delay in the proceeding of the work, and any reference to "Right-of-Way Delays" in the standard specifications shall not apply to any portion of this work. Such delays, if substantiated to the satisfaction of the Engineer, may be the basis for an extension of time for completing the project.

PART 11 INTEGRATION

11.01 ORAL MODIFICATIONS INEFFECTIVE
A. No oral order, objection, claim or notice by any party to the other shall effect or modify any of the terms or obligations contained in any of the contract documents and one of the provisions of the contract documents shall b held Attachment B
to be waived or modified by reason of any act whatsoever, other than by a definitely agreed waiver or modification thereof in writing, and no evidence shall be introduced in any proceeding of any other waiver of modification.

B. The waiver by Owner of any breach of any term or obligation in the contact documents shall not be deemed a waiver of such term or obligation, or any subsequent breach of the same or any other term or obligation contained in the contract documents.

11.02 CONTRACT DOCUMENTS REPRESENT ENTIRE AGREEMENT
A. The contract documents represent the entire understanding of the Owner and Contractor as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with respect to those matters covered by the contract documents.

11.03 EXISTING LAWS
Where these contract documents conflict with existing California or local laws, the existing laws shall have precedence.
*** END OF DOCUMENT 00700 ***
ATTY Rev 2013
Attachment B
EXHIBIT “B”

SCOPE OF SERVICES
ROOFING:
 Work to be completed during regular hours on public works wages.  Work areas to be clear for removal and replacement of metal panels.  Material placement will be to distribute weight loads throughout the entire roof area.
 Demo and remove existing metal roof and trims and dispose.  Install standing seam Roofing with three inch bat insulation.

SCREW REPLACEMENT:
 Remove screws on the outside of the building and replaced with stainless steel self-sealing screws.

PAINTING:
 Work to be completed during regular hours on public works wages.  Exterior metal siding, Ridge vents, doors, and door frames will be inspected for rust, healing pain, or other issues, cleared with power washing to remove all dirt, oil and grease.
 Loose paint and rust will be removed by scraping, wire brushing, or sanding.  After surface preparation, one coat of Carboline RustBond primer will be applied followed by 1 intermediate coat of Carboline 890 and finished with Carboline 3359.  Exclusions include interior painting, window frames, roof, gutters and downspouts.

DOORS AND FRAMES:
 Work to be completed during regular hours on public works wages.  Furnish and install 4 hollow metal doors, 1 hollow metal frame, vision lite, louver, and all hardware for doors.
 Doors to be 3’ -7’, 1-3.4” thick, fire label and 18 GA.  Frame Includes hinge, closer, and strike reinforcements.  Vision Lite frame 24”x 30” and glass 23”x29-1/4”.
 Louver is to be 24”x56” metal gray.
 Hardware to include hinges, entry lock, keying, door closure, threshold, door sweep, gasket, and framing anchors.

FLASHING:
 Work to be completed during regular hours on public works wages.  Remove metal flashing at 2 exterior vents and replace with metal flashing custom fit to each vent.
 All seams shall be sealed with exterior grade, UV-resistant sealant and color to match building exterior.

Attachment B
Subject to the terms and conditions of ezIQC Contract CA-R7-GB-101723-NCM.

Attachment B
Attachment B
Attachment B
Attachment B
EXHIBIT “C”

PAYMENT
I. Progress Authorization
Written authorization to proceed from the City authorizes the Contractor to generate the not-to- exceed cost of FOUR HUNDRED FORTY-NINE THOUSAND ONE HUNDRED TWENTY-TWO AND THIRTY-SIX CENTS in fees for all work.

Task 1: Bond $ 9,667.99
Task 2: Doors $ 15,545.73
Task 3: Painting $ 87,592.29
Task 4: Roof $ 310,304.52
Task 5: Screw Replacement $ 26,011.83
Task 6: Skylights $ 0.00
Total Not-To-Exceed Cost: $ 449,122.36
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 "B".

Attachment B
Attachment B
Attachment B
Attachment B
Attachment B
Attachment B
Attachment B
EXHIBIT “D”

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

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.

B. Minimum Limits of Insurance
Provider shall maintain limits no less than:

Attachment B

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.

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

D. Other Insurance Requirements
The 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).

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except Attachment B
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.

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
Attachment B
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.

Rev. 4/2021 Sourcewell IFB #CA-101723
Indefinite Delivery-Indefinite Quantity Construction Contracts in the State of California

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Santa Maria City CouncilOctober 21, 2025

Santa Maria City Council
October 21, 2025