Upland City Council
June 26, 2023

Monday, June 26, 2023
Open session begins at 7:00 p.m.

City Council Chamber
City Hall, 460 N. Euclid Avenue
Residents may observe the City Council meetings remotely via livestream on the City website, Spectrum Cable TV Channel 3, or Frontier Cable TV Channel 26.

Pages

1.CALL TO ORDER AND ROLL CALL

2.ADDITIONS-DELETIONS TO AGENDA

3.ORAL COMMUNICATIONS
This is a time for any citizen to comment on item listed on the closed session agenda only. Anyone wishing to address the legislative body is requested to submit a speaker card to the City Clerk at or prior to speaking. The speakers are requested to keep their comments to no more than three (3) minutes. The use of visual aids will be included in the time limit.

CLOSED SESSION BEGINS AT 6:00 p.m.

4.CLOSED SESSION
a.LIABILITY CLAIM (WORKER'S COMPENSATION)
California Government Code Section 54956.95
Claimant: Richard Madrid
Agency: City of Upland
b.CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATORS California Government Code Section 54956.8
Property: 531 E. 13th Street, located at the northwest corner of 13th Street and Campus Avenue (Assessor Parcel Number: 1045-392-43)
City Negotiators: City Manager Michael Blay, Development Services Director Robert Dalquest, and Housing Manager Diane Cotto
Negotiating Party: FPA Multifamily, LLC

Under Negotiation: Price and Terms

5.INVOCATION
Tia Faisal, Middle Ground Muslim Center

6.PLEDGE OF ALLEGIANCE

7.PRESENTATIONS
Proclamation declaring July as Parks Make Life Better Month, accepted by Recreation and Community Services Manager Jessica Gandara

8.CITY ATTORNEY

9.ORAL COMMUNICATIONS
This is a time for any citizen to comment on any item listed or not listed on the agenda.

Anyone wishing to address the legislative body is requested to submit a speaker card to the City Clerk at or prior to speaking. The speakers are requested to keep their comments to no more than three (3) minutes. Speakers will be given five (5) minutes during public hearings. The use of visual aids will be included in the time limit. Public comments and questions for the purpose of hearing current matters of concern in our community and to provide citizens a method for the public to hear those concerns in an open venue is encouraged. However, under the provisions of the Brown Act, the City Council is prohibited from discussion of items not listed on the agenda, and therefore, the City Council, City Manager, or City Attorney will take communications under advisement for consideration and appropriate response or discussion at a later time.

Individuals who demonstrate disruptive conduct during City Council meetings that prevent the City Council from conducting its meeting in an orderly manner are guilty of a misdemeanor as stated in PC403, disrupting a public meeting, and are subject to removal from the chamber or arrest.

10.CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine and will be enacted by one roll call vote. There will be no separate discussion of these items unless members of the legislative body request specific items be removed from the Consent Calendar for separate action.

Recommended Action:

Approve the Consent Calendar
a.APPROVAL OF MINUTES 7
Recommended Action:

Approve the Regular Meeting Minutes of June 12, 2023. (Staff Person: Keri Johnson)
b.2ND READING AND ADOPTION OF ORDINANCE NO. 1981 INCREASING THE

CITY COUNCIL AND CITY TREASURER SALARIES
15 Recommended Action:

Hold second reading by title only, waive further reading, and adopt Ordinance No. 1981 to increase salary compensation for members of the City Council and City Treasurer. (Staff Person: Stephen Parker)

c.ANNUAL ADOPTION OF INVESTMENT POLICY 21
CEQA: Not a Project
Recommended Action:

Adopt a Resolution approving and adopting the Annual Statement of Investment Policy for Fiscal Year 2023-2024. (Staff Person: Stephen Parker) d.TREASURER’S REPORT MAY 2023 42
CEQA: Not a Project.

Recommended Action:

Receive and file the May 2023 Treasurer’s Report. (Staff Person: Stephen Parker)
e.CONSIDER APPROVAL OF A RESOLUTION AMENDING THE REGIONAL

SEWERAGE SUPPLEMENTAL CAPITAL OUTLAY FEE
57 CEQA: Not a Project.

Recommended Action:

Adopt a Resolution amending the Regional Supplemental Capital Outlay fee to reflect an increase in the Inland Empire Utilities Agency fee from $7,600 to $8,132 per equivalent dwelling unit (EDU). (Staff Person: Braden Yu) f.CONSIDER APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH J.G. BAUTISTA CONSULTING FOR ENGINEERING SERVICES
64 CEQA: Not a Project.

Recommended Action:

Approve a Professional Services Agreement with J.G. Bautista Consulting for engineering consultant services in an amount not to exceed $75,000 annually for the next three fiscal years and authorize the City Manager to execute the agreement. (Staff Person: Braden Yu)
g.CONSIDER AWARD OF BID FOR THE STORM WATER TRASH CAPTURE SYSTEM INSTALLATION PROJECT (PROJECT NO. 9149)
80 CEQA: Determined to be categorically exempt from further environmental review pursuant to Section 15301 (c) (Existing Facilities), of the CEQA guidelines.

Recommended Action:

Approve the Specifications for the Storm Water Trash Capture System Installation Project (Project No. 9149); award the construction contract to United Storm Water, Inc. in the amount of $38,201; and approve a construction contingency in the amount of $11,799 for a total amount of $50,000 and authorize the City Manager to execute the agreement, and any future amendment and extension within the City Manager’s authority. (Staff Person: Braden Yu) h.CONSIDER APPROVAL OF PARCEL MAP 20395 AND SUBDIVISION AGREEMENT, LOCATED AT 81 W. FOOTHILL BLVD
96 CEQA: This project is categorically exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15315.

Recommended Action:

Approve Parcel Map 20395 for recordation and authorize the City Manager to sign the subdivision agreement. (Staff Person: Braden Yu) i.CONSIDER APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT FOR

CITYWIDE PAVEMENT SURVEY AND MANAGEMENT PROGRAM
102
CEQA: Not a Project.

Recommended Action:

Award a professional services agreement with Transmap for pavement condition data collection and pavement management program update in the amount of $118,644.35; approve a contingency in the amount of $17,755.65, for a total amount of $136,400.00; and authorize the City Manager to execute the agreement and any future amendments within the City Manager’s authority. (Staff Person: Braden Yu)
j.CONSIDER APPROVAL OF THE FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH ECONOLITE SYSTEMS, INC. FOR TRAFFIC

SIGNAL MAINTENANCE SERVICES
192
CEQA: Not a Project.

Recommended Action:

Approve an amendment to the professional services agreement with Econolite Systems Inc. providing for a one-year term renewal; and authorize the City Manager to execute the agreement. (Staff Person: Braden Yu) k.CONSIDER APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT TO

PREPARE THE ADA SELF EVALUATION AND TRANSITION PLAN
212
CEQA: Not a Project
Recommended Action:

Award a professional services agreement with Disability Access Consultants, LLC (DAC) for the data collection, analysis, and preparation of the ADA Self- Evaluation and Transition Plan in the amount of $172,630; and authorize the City Manager to execute the agreement and any future amendments/extensions within the City Manager's authority. (Staff Person: Braden Yu) l.CONSIDER APPROVAL OF A CONSTRUCTION CONTRACT WITH
LABASTIDA CONSTRUCTION TO REHABILITATE 663, UNIT 4, DIAMOND COURT
259
CEQA: Not a Project.

Recommended Action:

Approve a construction contract with Labastida Construction to rehabilitate a City- owned housing unit within the Magnolia Colony complex that was damaged in a fire, and authorize the City Manager to execute the Agreement. (Staff Person:

Robert Dalquest)
m.ANNUAL MILITARY EQUIPMENT REPORT PER ASSEMBLY BILL NO. 481 310 CEQA: Not a Project.

Recommended Action:

Review Ordinance No. 1960 and approve the Annual Military Equipment Report regarding the Police Department’s possession of military equipment per Assembly Bill 481. (Staff Person: Marcelo Blanco)

11.PUBLIC HEARINGS
a.CONSIDERATION OF A RESOLUTION APPROVING THE ASSESSMENT OF

ADMINISTRATIVE FINES AND ESTABLISHING ASSESSMENT LIENS FOR

UNPAID ADMINISTRATIVE FINES
342
CEQA: Not a Project
Recommended Action:

The City Council will conduct a public hearing to consider approving the assessment report, assessing administrative fines, and establishing special assessment liens against parcels of real property in the City of Upland relating to unpaid administrative penalties under Upland Municipal Code Section 1.10.090. (Staff Person: Marcelo Blanco)
Staff Presentation1.

Hold Public Hearing2.

Close Public Hearing3.

Adopt a Resolution approving the assessment report, assessing administrative fines, and establishing special assessment liens against parcels of real property in the City of Upland relating to unpaid administrative penalties under Section 1.10.090 of the Upland Municipal Code.

4. 12.COUNCIL COMMITTEE REPORTS
a.COUNCIL REPORTS ON REGIONAL COMMITTEE MEETING, TRAINING, OR

CONFERENCE ATTENDANCE
Councilmembers will provide oral reports on any meetings, trainings, or conferences they attended on behalf of the City. This item is for information only.

13.BUSINESS ITEMS
a.CONSIDERATION OF AN ORDINANCE AMENDING THE POWERS AND

DUTIES OF THE CITY MANAGER IN THE UPLAND MUNICIPAL CODE 349
CEQA: Not a project.

Recommended Action:

Hold first reading by title only, waive further reading, and introduce an Ordinance amending the City Manager Powers and Duties section of the Upland Municipal Code. (Staff Person: Stephen Parker)

14.COUNCIL COMMUNICATIONS

15.CITY MANAGER

16.ADJOURNMENT
The next regularly scheduled City Council meeting is Monday, July 10, 2023.

NOTE: If you challenge the public hearing(s) or the related environmental determinations in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Upland, at, or prior to, the public hearing.

All Agenda items and back-up materials are available for public review at the Upland Public Library, downstairs reference desk at 450 North Euclid Avenue, the City Clerk's Office at 460 North Euclid Avenue and the City website at www.uplandca.gov .

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, 909-931-4120.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102-35.104 ADA Title II] On June 21, 2023 a true and correct copy of this agenda was posted on the bulletin boards at 450 N. Euclid Avenue (Upland Public Library) and 460 N. Euclid Avenue (Upland City Hall) and the City website at www.uplandca.gov

1 MINUTES OF THE REGULAR MEETING OF THE UPLAND CITY COUNCIL

June 12, 2023
7:00 p.m.

City Council Chamber
City Hall, 460 N. Euclid Avenue

Members Present: Mayor Bill Velto, Councilmember James Breitling, Councilmember Carlos A. Garcia, Councilmember Shannan Maust, Councilmember Rudy Zuniga

Staff Present: City Manager Michael Blay, Assistant City Attorney Thomas Rice, City Clerk Keri Johnson
_____________________________________________________________________

1. CALL TO ORDER AND ROLL CALL
The regular meeting of the Upland City Council was called to order by Mayor Bill Velto at 6:00 p.m. in the Council Chamber of the Upland City Hall.

2. ADDITIONS-DELETIONS TO AGENDA
None.

3. ORAL COMMUNICATIONS
None.

CLOSED SESSION - 6:00 p.m.

4. CLOSED SESSION
At 6:01 p.m. Mayor Velto announced that the City Council would recess to Closed Session pursuant to Government Code
a. CLOSED SESSION CONFERENCE WITH REAL PROPERTY NEGOTIATORS California Government Code Section 54956.8
Property: Approximately 160 feet west of the southwest corner of Washington Boulevard and 6th Avenue in the City of Upland (Assessor Parcel Number, APN:
1046-233-25)
City Negotiators: City Manager Michael Blay, Development Services Director Robert Dalquest, and Economic Development Coordinator Melecio Picazo Negotiating Party: George Gibson
Under Negotiation: Price and Terms
The Council reconvened in open session at 7:01 p.m.

5. INVOCATION
Deacon Richard Simpson, St. Anthony's Catholic Church

2 6. PLEDGE OF ALLEGIANCE
Led by Gary Johnson

7. PRESENTATIONS
Backyard Battles - Vector Control Updates and Plans for Invasive Aedes presentation by West Valley Mosquito and Vector Control District

8. CITY ATTORNEY
Assistant City Attorney Rice announced the City Council a closed session report and there was no reportable action during Closed Session, and the Council provided direction to the City’s property negotiators.

9. ORAL COMMUNICATIONS
Natasha Walton, Upland, requested that the City require that all LED lights be warmer colors to help protect native insects, place timers on the lights to save electricity and protect native animals, and minimize excessive decorations. She further stated that permanent outdoor lighting features could be in conflict with the Upland Municipal Code.

Lois Sicking Dieter, Upland, spoke in opposition of proposed raises for City Council and Executive Management.

Jackie Shaib, Upland, requested that the City install a paved sidewalk Monte Vista and between Foothill and West Arrow Route and stated the benefits of a walkable community.

Jim Thomas, Upland Host Lions Club, thanked the community for their support and assistance with their recent fundraiser.

Stephen Shepherd, spoke in support of AFSCME as their union representation and stated that he feels the current union is not representative of their needs.

Luis Macias, Upland, stated that he supports AFSCME as their union representation.

Luis Schmidt, spoke in support of the Public Works staff being represented by AFSCME and thanked the City for providing employees with proper compensation.

Kirk Swanner, Upland, thanked Council for a fair negotiation process.

10. CONSENT CALENDAR
Moved by: Councilmember Garcia
Seconded by: Councilmember Zuniga
Approve the Consent Calendar
Motion: Carried Unanimously

a. APPROVAL OF MINUTES
Approve the Regular Meeting Minutes of May 22, 2023 and the Special Workshop Minutes of May 25, 2023.

3 b. 2ND READING OF ORDINANCE NO. 1980 AMENDING VARIOUS SECTIONS

OF THE UPLAND MUNICIPAL CODE
Hold second reading by number and title only, waive further reading, and adopt Ordinance No. 1980 amending various sections of the Upland Municipal Code as specified.
c. WARRANT AND PAYROLL REGISTER FOR MAY 2023
Approve May warrant registers (check numbers 43311-43898) and direct disbursements totaling $12,110,347.84 and payroll.
d. TREASURER’S REPORT APRIL 2023
Receive and file the April 2023 Treasurer’s Report.
e. CONSIDER ADOPTING THE SIDE LETTER AGREEMENTS WITH THE CITY’S

ASSOCIATIONS FOR IMPLEMENTATION OF THE COMPENSATION STUDY Adopt the side letter agreements with the City’s associations for implementation of the Compensation Study effective with the pay period beginning June 25, 2023.
f. PICNIC AREA RESERVATION POLICY
Approve the Picnic Area Reservation Policy.
g. CONSIDER APPROVAL OF THE USE OF FUND BALANCE AND
APPROPRIATION OF UP TO $25,000 FOR THE REPLACEMENT OF THE

FRONT DOORS AT THE ANIMAL SHELTER
Approve the use of fund balance to appropriate $25,000 in the Building Maintenance & Operations Internal Service Fund for the replacement of the front doors at the animal shelter.
h. CONSIDER APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH ROBERT HALF INTERNATIONAL, INC. AND APPROVAL OF A BUDGET

ADJUSTMENT
Approve a professional services agreement with Robert Half International for $67,000 to provide the City with staff augmentation services, authorize the City Manager to execute the agreement, and approve a budget adjustment for $35,040.
i. CONSIDER APPROVAL OF AN AGREEMENT FOR 800 MHZ RADIO SYSTEM

ACCESS AND MAINTENANCE
Approve a contract with the County of San Bernardino to provide access and maintenance for the City of Upland 800 MHz radios effective July 1, 2023 to June 30, 2028; and authorize the City Manager to execute the agreement. j. CONSIDER ACCEPTING THE OFFICER WELLNESS AND MENTAL HEALTH

GRANT PROGRAM AND APPROPRIATE THE FUNDING
Accept the State of California State and Community Corrections grant funds and authorize the appropriation of the $45,635.37 to purchase fitness equipment and facilitate officer wellness.

4 k. CONSIDER APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH

ANNEALTA GROUP
Approve the Professional Services Agreement with Annealta Group for consultant services not to exceed $305,000 annually for the next three fiscal years, and authorize the City Manager to execute the agreement.
l. PROFESSIONAL SERVICES AGREEMENT WITH LDM ASSOCIATES TO

ADMINISTER AND IMPLEMENT FEDERAL AND STATE PROGRAMS
Approve the Professional Services Agreement not to exceed $295,000 by and between the City of Upland and LDM Associates, Inc. to assist in the administration and implementation of federal and state programs; and authorize the City Manager to execute any and all necessary and related documents inclusive of any amendments to implement the Agreement. m. PROFESSIONAL SERVICES AGREEMENT WITH SHINE ILLUMINATION TO

INSTALL PERMANENT LIGHTING AND HOLIDAY DECORATIONS IN

DOWNTOWN
Approve the Professional Services Agreement between the City of Upland and Shine Illumination for the purchase and installation of permanent lighting and leased holiday decorations in Downtown Upland, authorize the transfer of $29,552 from the General Fund to the Parking and Business Improvement Area Fund, and authorize the City Manager to execute the Agreement. n. CONSIDER APPROVAL OF A PURCHASE ORDER INCREASE FOR

RICHARDSON BODY SHOP
Approve an increase to an existing Purchase Order with Richardson Body Shop for body and paint repairs of City vehicles in the amount of $23,000 for a total amount of $55,000.
o. CONSIDER APPROVAL OF THE PURCHASE OF POLICE FORENSIC

VEHICLE
Approve the purchase of a new 2024 Chevrolet 2500 with eight-foot (8-ft) service bed from M.K. Smith Chevrolet in the amount of $76,141.93; and authorize the City Manager to execute all necessary documents for the purchase of the vehicle.
p. CONSIDER APPROVAL OF THE PURCHASE OF TWO POLICE

MOTORCYCLES
Approve the purchase of two (2) new 2023 BMW R 1250 RT-P Police Motorcycles from BMW Motorcycles of Riverside in the amount of $75,915.50; and authorize the City Manager to execute all necessary documents for the purchase of the vehicles.
q. REJECT ALL BIDS FOR PROJECT 32337, DOWNTOWN PARKLETS, AND RE-

ADVERTISE THE PROJECT
Reject all bids for Project 32337, Downtown Parklets Improvements, and authorize staff to re-advertise the project.

5 r. SENATE BILL 1 (SB1) ROAD MAINTENANCE AND REHABILITATION

ACCOUNT FUNDING AND PROJECT LIST
Adopt a Resolution approving a list of projects for Fiscal Year 2023-2024 funded by Senate Bill 1: Road Repair and Accountability Act of 2017. s. CONSIDER APPROVAL OF A LEASE AGREEMENT WITH HOLLIDAY

TRUCKING
Approval of a Lease Agreement with Holliday Trucking for rent and lease of the City Well 15 property effective June 28, 2023.
t. CONSIDER APPROVAL OF FIRST AMENDMENT TO AGREEMENT WITH

GENERAL PUMP COMPANY
Approve the first amendment to General Pump Company Inc.’s Maintenance Service Agreement for the rehabilitation of City Well 1A for an additional amount of $36,723 and a new total contract amount of $186,723; authorize the City Manager to execute the amendment; and approve a budget adjustment of $36,723 to cover the additional contract amount.
u. CONSIDER APPROVAL OF AGREEMENT WITH WEST COAST ARBORIST Award a service agreement for Annual Tree Maintenance to West Coast Arborists, Inc. effective 7/1/2023 through 6/30/2026 with an option for 5 additional one-year terms and an amount not to exceed what is budgeted each year for Tree Maintenance Services.

11. PUBLIC HEARINGS
a. CONSIDER APPROVAL OF ANNUAL WEED ABATEMENT LIST OF PARCELS

IN VIOLATION OF THE UPLAND MUNICIPAL CODE AND APPROVE

ASSOCIATED LIENS
Development Services Director Dalquest introduced Housing Manager Cotto, who presented the staff report along with a PowerPoint presentation, which is on file in the City Clerk's office.

Mayor Velto opened the Public Hearing.

Gerardo Ramirez, Upland, stated that his notification letter was received more than 15 days after his property was inspected and once received, he completed the required maintenance, but he still received an assessment. He stated his second notification letter included photos that were not his property. He contested the $108 fee assessed to his property.

There was discussion regarding the timeline for notices, delivery, and abatement.

Marc Smith, Upland, stated that he received a notice to abate the weeds on his property and he completed the required abatement. He requested that the fine be removed from his property.

Staff stated that as of June 1, 2023 the Mr. Smith's property was not in compliance.

There being no additional speakers, Mayor Velto closed the public hearing.

6 Contract Weed Abatement Coordinator Hernandez provided information on the weed abatement process, notification, and the types of violations that are required to be remedied.

Moved by: Councilmember Breitling
Seconded by: Councilmember Zuniga
To vacate the fee assessed to Mr. Ramirez's property.

Motion: Carried with Councilmember Garcia opposed.

Moved by: Councilmember Maust
Seconded by: Councilmember Breitling
To enforce the fee assessed to Mr. Smith's property.

Motion: Carried Unanimously

Moved by: Councilmember Breitling
Seconded by: Councilmember Maust
Approve the remaining list of parcels in violation of the Municipal Code Section

8.12.180 and authorize staff to place a lien on these parcels to cover the costs of abating these properties and various administrative fees.

Motion: Carried Unanimously

At 8:13 p.m. Mayor Velto called a recess and the City Council reconvened in open session at 8:19 p.m.

12. COUNCIL COMMITTEE REPORTS
a. COUNCIL REPORTS ON REGIONAL COMMITTEE MEETING, TRAINING, OR

CONFERENCE ATTENDANCE
No report on this item.
b. ECONOMIC DEVELOPMENT COMMITTEE MEETING, JUNE 5, 2023 Councilmember Garcia provided a recap of the meeting.

13. BUSINESS ITEMS
Council was in consensus to move discussion of Item 13D to this point in the meeting. a. CONSIDER ADOPTING RESOLUTIONS APPROVING LABOR AGREEMENTS

AND COMPENSATION AND BENEFITS FOR VARIOUS EMPLOYEE GROUPS

AND EXECUTIVES
Assistant City Manager Parker presented the staff report and introduced Deputy Director of Human Resources/Risk Management Doyle who provided an oral report of the Executive Compensation and Benefits plan.

Assistant City Manager Parker and Deputy Director of Human Resources/Risk Management Doyle answered questions posed by the Council regarding the labor groups approval of the proposed MOUs.

7 Moved by: Councilmember Garcia
Seconded by: Councilmember Breitling

1. Adopt Resolution No. 6719 approving a memorandum of understanding with the Upland Police Officers Association (UPOA);

2. Adopt Resolution No. 6720 approving a memorandum of understanding with the Upland Police Management Associations (UPMA);

3. Adopt Resolution No. 6721 approving a memorandum of understanding with the Upland Mid-Management Employees Association (UMMEA);

4. Adopt Resolution No. 6722 approving a memorandum of understanding with the Upland City Employees Association (UCEA);

5. Adopt Resolution No. 6723 amending the Compensation and Benefit Plan for Non-Represented/Confidential Employees;

6. Adopt Resolution No. 6724 amending the Compensation and Benefit Plan for Executive Employees; and

7. Adopt Resolution No. 6725 amending the Salary Schedule for part-time employees.

Motion: Carried Unanimously

b. CONSIDER APPROVAL OF REVISIONS TO THE CITY MANAGER

EMPLOYMENT AGREEMENT
Assistant City Attorney Rice presented the staff report, which is on file in the City Clerk's office.

Moved by: Councilmember Garcia
Seconded by: Councilmember Maust
Approve First Amendment to the City of Upland City Manager Employment Agreement with Michael Blay providing him with an increase in base salary and to the percentage 401(a) contribution.

Motion: Carried Unanimously

c. CONSIDER ORDINANCE INCREASING CITY COUNCIL SALARIES AND A

RESOLUTION TO PROVIDE ELECTED OFFICIALS WITH AN AUTO

ALLOWANCE AND HEALTH BENEFITS ALLOWANCE
Assistant City Manager Parker presented the staff report, which is on file in the City Clerk's office.

Moved by: Councilmember Garcia
Seconded by: Councilmember Breitling
Hold first reading by title only, waive further reading and introduce Ordinance No. 1981 to increase salary compensation for members of the City Council and adopt Resolution No. 6726 to provide members of the City Council and the City

8 Treasurer with a monthly auto allowance and a monthly health benefits cafeteria allowance.

Motion: Carried Unanimously

d. PROPOSED ANNUAL BUDGET FOR FISCAL YEAR 2023-2024 AND RELATED ITEMS
Assistant City Manager Parker presented the staff report along with a PowerPoint, which is on file in the City Clerk's office. He then answered questions posed by the Council regarding the job specifications and the potential for a two year budget plan in the future.

Moved by: Councilmember Garcia
Seconded by: Councilmember Breitling

1. Approve a Resolution adopting the Fiscal Year 2023-2024 Annual Budget;

2. Approve a Resolution approving the appropriations limit for the Fiscal Year 2023-2024;

3. Approve a Resolution approving the General Fund Reserve Policy; and

4. Approve amending the City’s Classification Plan to include job descriptions for Budget Specialist, Crime Prevention – Community Outreach Specialist and Police Civilian Investigator
Motion: Carried Unanimously

14. COUNCIL COMMUNICATIONS
Councilmembers announced various activities throughout the community, including providing an update on the events they attended.

15. CITY MANAGER
City Manager Blay thanked staff for their hard work to make the Lemon Festival a success.

16. ADJOURNMENT
Mayor Velto adjourned the meeting at 9:15 p.m. The next regularly scheduled City Council meeting is Monday, June 26, 2023.

Keri Johnson, City Clerk

ORDINANCE NO. 1981

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
UPLAND, CALIFORNIA AMENDING SECTION 2.02.040 AND
DELETING SECTION 2.02.050 OF CHAPTER 2.02 OF TITLE
2 OF THE UPLAND MUNICIPAL CODE TO INCREASE CITY

COUNCIL COMPENSATION

WHEREAS, Government Code Section 36516(a)(2) and Upland Municipal Code Section 2.02.040 prescribe the amount of salary compensation to be paid to each member of the City Council as listed in Government Code Section 36516(a)(2); and

WHEREAS, Section 2.02.040 of the Upland Municipal Code was enacted by Ordinance in September 1985, thirty-seven (37) years ago, and at which time the City’s population was over 50,000 but under 75,000. Consequently, the compensation was set at $500 per month; and

WHEREAS, according to the 2020 Census, the City’s population was 79,272, which triggered an increase in compensation to $600 according to the statutory compensation schedule, notwithstanding the fact that Section 2.02.040 of the Upland Municipal Code was not amended; and

WHEREAS, Section 2.02.050 of the Upland Municipal Code allowed for the automatic increase in compensation as the population increased, which process follows that allowed by Government Code Section 36516(a)(2); and

WHEREAS, Section 2.08.010 of the Upland Municipal Code calls for the City Treasurer to receive a salary equal to two-thirds the compensation of a member of City Council as established in Upland Municipal Code Section 2.02.040; and

WHEREAS, the City Treasurer currently receives $400 per month in salary compensation; and

WHEREAS, under the authority of Government Code Section 36516.1, Section

2.02.080 of the Upland Municipal Code authorizes the additional compensation of $100 per month to be paid to the City’s Mayor in addition to the compensation set for members of the city council due to the additional workload imposed upon the Mayor by virtue of the office’s duties; and

WHEREAS, the City’s Mayor currently receives $700 per month in salary compensation; and

WHEREAS, Government Code Section 36516(a)(4) authorizes the City to increase the compensation for members of the City Council beyond those amounts established in the statutory compensation schedule provided that the increase shall not exceed an amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance was enacted; and

Ordinance No. 1981

WHEREAS, 37 years since the enactment of the ordinance establishing Section 2.02.040, multiplied by 5%, equals a maximum 185% salary increase allowed under Government Code Section 36516(a)(4); and

WHEREAS, the current salary compensation paid to members of the City Council of $600, multiplied by 185%, equals $1,110; and

WHEREAS, the City Council desires to increase the monthly salary compensation to $1,200 per month; and

WHEREAS, by increasing the monthly salary compensation by $600 instead of the possible $1,110, City Council is foregoing $510 of eligible compensation from future City Councils; and

WHEREAS, if this Ordinance is passed, and due to Section 2.02.080 of the Upland Municipal Code, the Mayor would be entitled to receive $1,300 per month; and

WHEREAS, if this Ordinance is passed, and due to Section 2.08.010 of the Upland Municipal Code, the City Treasurer would be entitled to receive $800 per month.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF UPLAND DOES ORDAIN AS FOLLOWS:

Section 1. The above recitals are true and correct and are hereby incorporated herein by this reference.

Section 2. Section 2.02.040 of Chapter 2.02 of Title 2 of the Upland Municipal Code is hereby amended as follows (new language in underline and deleted language in strikethrough):

“Section 2.02.040 Salaries.

Each member of the city council shall receive, as salary, the sum of $1,200.00 $500.00 per month, as prescribed in Section 36516 of the Government Code for cities 50,000 up to and including 75,000 population group, which shall be payable from and after the operative date of this ordinance at the same time and in the same manner as the salaries are paid to other officers and employees of the city of Upland.”

Section 3. Section 2.02.050 of Chapter 2.02 of Title 2 of the Upland Municipal Code is hereby deleted in its entirety and marked as “Reserved.”

Section 4. Compliance with California Environmental Quality Act.

The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section

Ordinance No. 1981

15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Further, if the activity is deemed a project this City Council finds that this Ordinance is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.

Section 5. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

Section 6. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 7. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published in a newspaper of general circulation printed and published within the City of Upland, pursuant to all legal requirements.

PASSED, APPROVED, AND ADOPTED this 26th day of June, 2023.

Bill Velto, Mayor

I, Keri Johnson, City Clerk of the City of Upland, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Upland held on the 12th day of June, 2023, and was adopted at a regular meeting of the City Council of the City of Upland on the 26th day of June, 2023, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

DATE: June 26, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: STEPHEN PARKER, CPA ASSISTANT CITY MANAGER

LONDA BOCK-HELMS, CPA FINANCE OFFICER
SUBJECT: ANNUAL ADOPTION OF INVESTMENT POLICY

RECOMMENDED ACTION:

It is recommended that the City Council adopt a Resolution approving and adopting the Annual Statement of Investment Policy for Fiscal Year 2023-2024

GOAL STATEMENT
The proposed action supports the City’s goal to provide fiscal stewardship for the City of Upland.

BACKGROUND
On January 1, 1996, the State of California enacted laws that outline standards for investment activities of local public agencies. Common themes in these laws focused on a sound investment policy, oversig ht of investment activities, safety in managing public funds, and quarterly reporting on the investment portfolio. Pursuant to California Government Code Section 53646, the City Treasurer may annually submit a Statement of Investment Policy to the City Council for the Council’s consideration and adoption. Auditors and best practices recommend an annual adoption of such policy.

In summary, the Investment Policy accomplishes the following:

 Defines the City’s investment objectives and guidelines, as well as their confor mance with California laws;  Delineated the State of California approved investment vehicles that are recommended as suitable to the City of Upland;
 Outlines investment-reporting requirements; and
 Names the City’s Investment Officers and delegates investing to those officials.

ISSUES AND ANALYSIS
In April 2022, the City of Upland engaged PFM Asset Management to conduct a thorough review of the City of Upland’s investment policy and propose recommended modifications. Those recommendations were presented to the Finance Committee on April 27, 2022, and approved by City Council on May 23, 2022. One of the recommended changes revised Section 10.02 to limit investments in callable Federal Agency Securities from the previous percentage of 50% to 20%. Callable securities are not restricted by the California Government Code and are backed by the full faith and credit of the US government. At the time of the recommendation, the City of Upland had greater than 20% of the portfolio invested in callable agency securities. As a result, the City had been out of compliance with its investment portfolio from the moment the investment policy was adopted. As the monthly Treasurer’s Report does not have a calculation of what percentage of the portfolio is invested in callable securities and the City had no internal tracking method to identify the percentage, it was not until May 2023 that staff became aware of being out of compliance. Since learning that information, Staff will not make any new purchases of callable Federal Agency Securities until the City portfolio is below 20%. In the meantime, Staff is recommending the policy be revised to a 40% limitation in callable Federal Agency Securities so we will be in compliance with our own investment policy.

One other recommended modification to the investment policy from last years’ policy is to remove a limitation of zero-coupon Treasuries that is currently established at 10%. This was also a PFM Asset Management recommendation, but as all US Treasury Notes have a zero coupon but are still backed by the full faith and credit of the US government, Staff doesn’t believe such a limitation is necessary. The City currently has 1% of its portfolio in zero coupon Treasuries.

The City of Upland’s Statement of Investment Policy for Fiscal Year 2023-2024 (Exhibit A) has been prepared in compliance with the State of California Government Code Sections that govern investments. Detailed descriptions of the various recommended allowable investment instruments are included in the policy.

ENVIRONMENTAL DETERMINATION
The proposed action is not subject to the California Environmental Quality Act (CEQA). Section 15378 of the CEQA Guidelines defines a project subject to CEQA. The proposed action is not included within the definition of a “project” and thus is exempt.

FISCAL IMPACTS
There is no fiscal impact associated with this action.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: Not a Project

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UPLAND,

CALIFORNIA APPROVING AND ADOPTING THE ANNUAL
STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2023-
2024

WHEREAS, pursuant to Government Code Section 53600.6, the Legislature of the State of California has declared that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern; and

WHEREAS, the City Council may invest surplus monies not required for the immediate necessities of the City in accordance with the provisions of California Government Code Sections 5920 et seq. and 53601 et seq.; and

WHEREAS, it shall be the policy of the City of Upland to invest funds in a manner which will provide the highest investment return possible consistent with maximum security while meeting daily cash flow demands and conforming to all other statutes governing the investment of City funds; and

WHEREAS, the City Treasurer of the City of Upland is authorized and shall prepare and submit an annual statement of investment policy and such policy, and any changes thereto, may be considered by the City Council at a public meeting pursuant to Government Code Section 53646 (a) (2); and

WHEREAS, the Assistant City Manager has prepared the annual Statement of Investment Policy (the “Policy”), on behalf of the City Treasurer; and

WHEREAS, for the purposes of the Policy, “Investment Officers” shall be defined as the City Treasurer, City Manager, Assistant City Manager, and the Finance Officer; and

WHEREAS, the Policy shall apply without exception to any and all financial assets and funds of the City of Upland; and

WHEREAS, California Government Code Section 56301 authorizes a legislative body to grant express authority to make an investment in excess of five years either specifically or as a part of an investment program approved by the legislative body no less than three months prior to the investment; and

WHEREAS, City Council desires to authorize the General Fund to issue a municipal security that Enterprise Funds of the City could invest in providing the City with proceeds to reduce the City’s Unfunded Accrued Liability (“UAL”) with California Public Employees’ Retirement System (“CalPERS”); and

WHEREAS, the municipal security the General Fund would issue would have a term of 20 years to roughly coincide with the City’s UAL.

NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:

Section 1. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council of the City of Upland at a duly noticed public meeting has received, reviewed, and adopts the City of Upland Statement of Investment Policy for

Resolution No.

Fiscal Year 2023-2024, set forth in Exhibit “A”, attached hereto and incorporated herein by this reference.

Section 3. Any and all prior resolutions adopting a Statement of Investment Policy for the City of Upland shall be hereby rescinded.

Section 4. Pursuant to California Government Code Section 53607, the City Council of the City of Upland hereby delegates the authority to reinvest funds of the City of Upland pursuant to all applicable laws, statutes, and regulations of the State of California as set forth in this Resolution.

Section 5. Compliance with California Environmental Quality Act. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Further, if the activity is deemed a project this City Council finds that this Resolution is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.

Section 6. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Section 7. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each sect ion irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

Section 8. Effective Date. This Resolution shall become effective July 1, 2023.

PASSED, APPROVED and ADOPTED this 26 day of June, 2023.

Bill Velto, Mayor

I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 26th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

EXHIBIT A
Statement of Investment Policy
Fiscal Year 2022-2023

POLICY

The purpose of this document is to outline the policy on the investment of public monies.

It is the policy of the City of Upland and the Successor Agency to the Upland Redevelopment Agency (hereafter referred to collectively as the "City”) to predicate their investment policies, procedures, and practices upon the limitations placed upon them by governing legislative bodies.

These policies shall have three primary goals:

• To assure compliance with federal, state, and local laws governing the investment of public monies under the control of the City Treasurer.

• To protect the principal monies entrusted to the City.

• To generate the maximum amount of investment income within the parameters of prudent risk management as defined in this Statement of Investment Policy.

For the purposes of this policy, "Investment Officers" shall be defined as the City Treasurer, City Manager, Assistant City Manager, and the Finance Officer.

1.0 Scope

This Statement of Investment Policy shall apply to all funds that are under the control of the Investment Officers including, but not limited to, the general fund; special revenue funds; debt service funds; capital project funds; enterprise funds; trust and agency funds; and any other funds under the control of the Investment Officers. These funds are accounted for in the City’s Annual Comprehensive Financial Report.

Investment of bond proceeds and related reserve funds shall be governed by the documents authorizing the issuance of such indebtedness. If the bond documents are silent as to the permitted investments, the bond proceeds will be invested in the securities permitted by this Statement of Investment Policy. Notwithstanding the other provisions of this Statement of Investment Policy, the percentage limitations listed in elsewhere in this Statement of Investment Policy do not apply to bond proceeds.

The City's Deferred Compensation Plan ("Plan") shall be excluded from the scope of this Statement of Investment Policy if: (1) a third-party administrator manages the Plan; (2) individual plan participants have control over the selection of investments; and (3) the City has no fiduciary responsibility to act as a "trustee" for the Plan. The only exception to the foregoing shall be that if the City retains the fiduciary responsibility to act as a trustee for the Plan, then the provisions of this Statement of Investment Policy shall apply to the investment of Plan assets. Under these circumstances, the Investment Officers shall provide the Finance Committee and the City Council with a quarterly report on the investment of Plan assets.

2.0 Standard of Care

Investment Officers, as trustees of public monies, shall adhere to the “prudent investor" standard when managing the City's investment portfolios. They shall invest "...all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence , and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."

Investment Officers who follow the provisions of this Statement of Investment Policy, and who exercise due diligence shall be relieved of personal responsibility for a security's credit risk or market price risk provided that they report substantial deviations from expectations to the City Manager and to the Finance Committee in a timely manner and that they take appropriate action to control adverse developments. "Substantial deviations" shall be defined as either a decline of 10 percent or more in the market value of a security due to issuer default or a credit risk downgrade or the premature sale of a security at 10 percent or more below its acquisition cost.

3.0 Objective

The City's investment objectives, in order of priority, shall be:

3.1 Safety. Safety of principal shall be the foremost objective. Investments shall be made with the aim of avoiding capital losses due to issuer default; broker -dealer default; or market value erosion. Principal shall be preserved by mitigating:

3.1.1 Credit Risk, the risk of loss due to the failure of the issuer of the security, shall be mitigated by investing in only high-quality securities and by diversifying investments; and

3.1.2 Market Risk, the risk of loss due to a decline in bond prices because of rising market interest rates, shall be mitigated by structuring the portfolios so that issues mature concurrently with the City's anticipated cash requirements, thereby eliminating the need to sell securities prematurely on the open market.

3.1.3 It is recognized, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of the overall investment strategy.

3.2 Liquidity. An adequate percentage of the portfolios shall be maintained in liquid, short-term securities that can be converted to cash, if necessary, to meet disbursement requirements. Since all cash requirements cannot be anticipated, the portfolios should

consist largely of securities with active secondary markets. These securities should have a relatively low sensitivity to market risk. Maximum overall portfolio maturities are referenced in section 15.0, paragraph 2 of this Statement of Investment Policy.

3.3 Yield. Yield shall be considered only after the basic requirements of safety and liquidity have been met.

4.0 Delegation of Authority

California Government Code (“Code”) Sections 53607 and 53608 authorize the legislative body of a local agency to invest, deposit, and provide for the safekeeping of the local agency ' s funds or to delegate those responsibilities to the treasurer of the local agency. The delegation of investment authority by the City Council to the Investment Officers shall be for a period of one-year period, unless revoked. Subject to review, the City Council may renew the delegation of authority each year.

The Investment Officers shall have the exclusive authority to buy and sell securities on behalf of the City. They shall engage in mutual consultation and in collective decision making on economic trends, investment opportunities, and portfolio structuring.

5.0 Internal Controls

The Investment Officers shall be responsible for ensuring that all investment transactions comply with the City’s Statement of Investment Policy and for establishing internal controls that are designed to prevent losses due to fraud, negligence, and third -party misrepresentation.

The Investment Officers shall establish written procedures for the operation of the City’s investment program that are consistent with this Statement of Investment Policy.

Internal controls deemed most important shall include: avoidance of collusion; separation of duties and administrative controls; separating transaction authority from accounting and record keeping; custodial safekeeping; clear delegation of authority; management approval and review of investment transactions; specific limitations regarding securities losses and remedial action; written confirmation of telephone transactions; documentation of investment transactions and strategies; and monitoring of results.

6.0 Conflict of Interest

Investment Officers shall refrain from personal business activity that could conflict with the proper execution of the City's investment program or im pair their ability to make impartial investment decisions. They shall disclose to the City Council any material financial interest in financial institutions that conduct business within the City's jurisdiction. They shall also disclose any personal investment positions that could be related to the performance of the City's investment portfolios. Investment Officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of securities purchases and sales, and shall avoid transactions that might impair public confidence.

Investment Officers and their immediate relatives shall not accept or solicit any gifts, gratuities, honorariums, or favors from persons or entities who provide or who are seeking to provide financial services to the City.

7.0 Authorized Broker-Dealers

The Investment Officers shall have the authority to select any issuer, or qualified broker- dealer(s) deemed necessary in facilitating investment transactions.

For securities not purchased directly from the issuer, the Investment Officers will maintain a list of approved financial institutions authorized to provide investment services to the City in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). Best practices include the following: 1) A determination that all approved broker/dealer firms, and individuals covering the City, are reputable and trustworthy; 2) the broker/dealer firms should have the ability to meet all their financial obligations in dealing with the City; 3) the firms, and individuals covering the agency, should be knowledgeable and experienced in public agency investing and the investment products involved; 4) no public deposit shall be made except in a qualified public depository as established by the established State laws; 4) all financial institutions and broker/dealers who desire to conduct investment transactions with the City may supply the Investment Officers with audited financial statements, proof of FINRA certification, trading resolution, proof of State of California registration, a completed broker/dealer questionnaire, certification of having read the City’s invest ment policy and depository contracts.

An annual review of the financial condition and registrations of qualified broker/dealer firms may be conducted by the City and a current audited financial statement requested for each financial institution and broker/dealer in which the City invests. In addition to other requirements, the Investment Officers shall give all approved broker-dealers a copy of the City’s current Statement of Investment Policy and a certification form. The completion and submission of the certification form by an approved broker-dealer shall constitute proof that it has received the City's Statement of Investment Policy, read it, and intends to comply with it. The Investment Officers shall keep current audited annual financial statements on file for each approved broker-dealer with which the City does business.

Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, the investment officer shall make their best efforts to document quotations for comparable or alternative securities.

8.0 Authorized Public Depositories

The Investment Officers shall maintain an Approved List of all financial institutions that the Finance Committee and the City Council have authorized as public depositories of City monies. This List shall be provided to all members of the City Council and the Finance Committee.

The City shall only deposit public monies in financial institutions that have: (1) an overall Community Reinvestment Act rating of not less than “satisfactory” of meeting the credit needs of California’s communities; (2) at least $100 million in total assets; (3) a core capital-to-total assets ratio of at least five percent; (4) favorable statistical ratings from a nationally recognized rating service, as determined by the Investment Officers; (5) a federal or a state charter; and (6) a branch office within San Bernardino County and/or Los Angeles County.

Under no circumstances shall the City’s deposits in a financial institution exceed the total shareholder’s equity of that institution.

Any financial institution that has City funds on deposit must comply with the requirements of Code Sections 53630 et seq., including collateralization of deposits. The Investment Officers may waive the collateralization requirements for any portion of the deposit that is covered by Federal Deposit Insurance. As provided by Code Section 53649, the City shall have a signed contract with each financial institution that has City funds on deposit.

9.0 Safekeeping and Custody

Investment Officers shall conduct all security transactions on a delivery-versus- payment ("DVP") or on a receipt-versus-payment ("RVP") basis. A third-party bank trust department ("Custodian") that acts as an agent for the City under the terms of a custody agreement executed between both parties shall hold the securities. The City's Custodian shall be represented on the Approved List.

The only exception to the foregoing shall be securities purchases made with: (1) local government investment pools; (2) money market mutual funds; and (3) Federal Reserve Banks ("Treasury Direct Program") since the purchased securities are not deliverable. No securities broker-dealer or investment advisor shall have access to City monies, accounts, or investments. Any transfer of monies to or through a securities broker-dealer must have the Investment Officers’ prior written approval. If they are unavailable, then the management authorization chain-of-command specified in section 4.0, paragraph 2 of this Statement of Investment Policy shall be followed.

The City shall not purchase more than $15 million of securities from the Custodian if the Custodian will subsequently be holding those securities in custody for the City.

The City shall require Broker Trade Confirmations for all trades. Investment Officers shall review these confirmations immediately upon receipt, for conformity with the terms of the City’s Trade Sheets.

10.0 Authorized Investments

The City’s investments are governed by Code, Sections 53600 et seq. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this Statement of Investment Policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the time the security is purchased.

Any investment currently held at the time this Statement of Investment Policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and

institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.

10.01 United States Instruments

United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of City’s investment portfolio that may be invested in this category.

10.02 Federal Agency Securities

Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. There is no limitation as to the percentage of City’s investment portfolio that may be invested in this category. No more than 50 percent of the market value of the City's investment portfolio may be invested in any one issuer. No more than 30 percent of the market value of the City's investment portfolio may be invested in callable securities.

10.03 Municipal Securities

Bonds issued by the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City. Purchases of any obligation of the City of Upland by an Enterprise Fund of the City shall not require a rating from a Nationally Recognized Statistical Rating Orga nization (NRSRO).

Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or au thority of the state.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

Purchases are limited to securities rated in a rating category of “A” (long-term) or “A- 1” (short-term) or their equivalents or better by a NRSRO. No more than 30 percent of the market value of the City's investment portfolio shall be invested in this category.

10.04 Medium-Term Notes

Defined as all corporate and depository institutions debt securities with a maximum remaining maturity of five years or less issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Investment shall be limited to medium-term notes ("MTN") rated in a rating category of "A" or better by an NRSRO.

No more than 30 percent of the market value of the City's investment portfolio shall be invested in this category.

10.05 Bankers' Acceptances

Bankers’ acceptances (BAs) otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank which have short-term debt obligations rated in the rating category of “A-1” or higher by a NRSRO. Purchases of BAs shall not exceed 180 days to maturity. No more than 40 percent of the market value of the City's investment portfolio shall be invested in this category.

10.06 Commercial Paper

Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet following criteria: (A) Is organized and operating in the United States as a general corporation; (B) Has total assets in excess of five hundred million dollars ($500,000,000), and (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or better by an NRSRO. Purchases of CP shall not exceed 270 days to maturity. No more than 40 percent of the market value of the City's investment portfolio shall be invested in this category. If the City’s investable assets fall below $100 million, no more than 25 percent of the market value of the City's investment portfolio shall be invested in this category.

10.07 Asset Backed, Mortgage-Backed, Mortgage Pass-Through securities and Collateralized Mortgage Obligations

A mortgage passthrough security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond with a maximum remaining maturity of five years or less. Securities shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO. No more than 20 percent of the market value of the City's investment portfolio shall be invested in this category.

10.08 Negotiable Certificates of Deposit

Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association, or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases are limited to securities rated in a rating category of “A” (long-term) or “A-1” (short-term) or their equivalents or better by an NRSRO. The Investment Officers can exempt from these rating requirements any Negotiable CDs for which the full amount of the CD

and the interest that may accrue shall at all times be covered by Federal Deposit insurance. No more than 30 percent of the market value of the City’s investment portfolio shall be invested in this category.

10.09 Money Market Mutual Funds

Money Market Mutual Funds investments shall be permitted in shares of beneficial interest issued by diversified management companies that are government money market funds ("MMF") registered with the SEC under the Investment Company Act of 1940. Commission (e.g., sales load on purchases, reinvested dividends, redemptions, and exchanges) shall not be included in the purchase of any fund shares. A qualifying MMF must have: (1) total portfolio net assets of $500 million or more; and (2) the highest rating of the two largest nationally recognized rating services OR an investment advisor who is registered with the SEC, and who has five years or more of experience investing for MMFs of $500 million or more in total portfolio net assets. The City shall require audited annual financial statements from each MMF in which it has public monies invested. No more than 20 percent of the market value of the City’s investment portfolio may be invested in this category.

10.10 Local Agency Investment Fund ("LAIF")

Investment shall be permitted in this pool which is organized and managed by the State Treasurer’s Office for the benefit of local agencies, pursuant to Code Section 16429.1. The City Council approved City participation in LAIF on February 22, 1977 in Resolution Number 2716. The Successor Agency to the Redevelopment Agency approved participation in LAIF on February 13, 2012 in Resolution Number 2012-4. Investment shall be limited to the maximum amount per legal entity that is permitted by the program.

10.11 Supranational Securities

United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities shall be rated in a rating category of “AA” or its equivalent or better by a NRSRO. No more than 30 percent of the market value of the City’s investment portfolio may be invested in this category. No more than 10 percent of the market value of the City’s investment portfolio may be invested in any single issuer, and the maximum maturity shall not exceed five years.

10.12 Local Government Investment Pools (“LGIP”).

Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized by Code.

The City will limit investments to LGIPs that seek to maintain a stable net asset value. There is no limitation as to the percentage of City’s investment portfolio that may be invested in this category.

10.13 Placement Service Deposits.

Funds may be placed with a California financial institution that may utilize a private sector entity that assists in the placement of deposit with eligible financial institutions located in the United States in accordance with Code 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of the deposit shall always be insured by federal deposit insurance. No more than 30 percent of the market value of the City’s investment portfolios may be invested in this category. The maximum investment maturity will be restricted to five years.

10.14 Bank Deposits.

FDIC insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts, or time certificates of deposits in financial institutions located in California. There is no limitation as to the percentage of City’s investment portfolio that may be invested in this category, however, no more than 25 percent of the market value of the portfolio may be invested in time deposits. The maximum investment maturity will be restricted to five years.

11.0 Prohibited Investments and Practices

Investment Officers shall not invest public monies in financial instruments that are not authorized under this Statement of Investment Policy.

Prohibited investments shall include, but shall not be limited to, equity securities, bond mutual funds, repurchase agreements, reverse repurchase agreements, and derivative contracts (forwards, futures, and options). The purchase of derivative securities shall be prohibited except for callable and for zero coupon Treasury ("STRIPS") securities.

Investment Officers shall not engage in securities lending, short selling, or other hedging strategies.

LAIF, LGIPs, and MMFs shall be exempt from the prohibitions on derivative contracts, derivative securities, repurchase agreements, reverse repurchase agreements, securities lending, short selling, and other hedging strategies.

12.0 Investment Pools

Investment Officers shall investigate all investment pools (LAIF, LGIPs, MMFs) prior to investing public monies and periodically thereafter while City public monies are invested in the investment pool.

13.0 Diversification

Investment Officers shall diversify the City's investment portfolio by security type and by issuer to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions, or maturities. No more than 5 percent of the total portfolio market value may be invested in securities of any single issuer, except where the issuer is the US Government, its Agencies and GSEs, supranational securities, collateralized deposits,

LAIF, money market mutual funds or local government investment pools.

14.0 Maximum Maturity

For those investment types for which this Statement of Investment Policy does not specify a maturity limit, no individual investment shall exceed a maturity of five years from the date of purchase unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

Additionally, the City may purchase a Municipal Security issued by the City from surplus moneys of any fund of the City as a part of an investment program approved by the legislative body no less than three months prior to the investment. This would include investments made to reduce the City’s Unfunded Accrued Liability (UAL) with California Public Employees’ Retirement System (CalPERS).

This Policy authorizes investing bond project and reserve funds beyond five years if the maturities of such investments do not exceed the expected use of the funds, the investments are deemed prudent in the opinion of the Investment Officers, and the investments are not prohibited by the applicable bond documents.

Maturities may vary from 1 day to five years at the investment officers’ discretion.

Municipal Securities of the City to reduce its UAL with CalPERS may have a maturity up to and not exceeding twenty years, and which shall be approved by the City Council. The portfolio should be managed in such a manner as to meet the City’s liquidity, safety, and capital preservation needs.

15.0 Portfolio Rebalancing

In the event that portfolio percentage constraints are violated due to a temporary imbalance in the portfolio, then Investment Officers may hold the affected securities to maturity in order to avoid capital losses. If no capital losses would be realized upon sale, however, then the Investment Officers shall consider rebalancing the portfolio after evaluating the expected length of time that it will be imbalanced. Portfolio percentage limits are in place in order to ensure diversification of the City investment portfolio; a small, temporary imbalance, not to exceed three months, will not significantly impair that strategy. Bond or note proceeds shall not be factored into the balance of the portfolio.

16.0 Credit Downgrading

This Statement of Investment Policy sets forth minimum credit risk criteria for each type of security. This credit risk criteria applies to the initial purchase of a security; it does not automatically force the sale of a security if its credit risk ratings fall below policy limits.

If a security is downgraded below the minimum credit risk criteria specified in this Statement of Investment Policy, then the Investment Officers shall evaluate the downgrade on a case -by- case basis in order to determine if the security should be held or sold.

The Investment Officers shall inform the Finance Committee at its next regular meeting of the credit downgrade and of the Investment Officer's decision to hold or sell the downgraded

security.

The Investment Officers shall review the credit standing of all securities in the City's investment portfolios on a semiannual basis.

17.0 Portfolio Benchmark

The City Treasurer shall monitor and evaluate the portfolio’s performance relative to a market benchmark, which will be included in the Treasurer's monthly report. The City Treasurer shall select an appropriate, readily available index to use as a market benchmark.

The City’s portfolios may be actively managed for purposes of improving portfolio risk structure, liquidity, or yield in response to market conditions or to meet City requirements.

18.0 Reporting

The Investment Officers shall provide a monthly report of investment transactions to the City Council and an investment report to the Finance Committee at the regularly scheduled meeting.

The investment report shall include a complete portfolio inventory with details on issue, par value, market value, coupon/rate, original settlement date of purchase, final maturity date, average weighted yield, and average days to maturity, and market value (including source of market valuation). The report will include a statement on compliance or noncompliance with the City’s Statement of Investment Policy and a statement on whether there are or are not sufficient funds to meet the City's anticipated cash requirements for the next six months.

19.0 Policy Review and Adoption

The Investment Officers shall submit a Statement of Investment Policy, including any recommended changes, to the City Council and the Successor Agency Board annually for their review and adoption.

GLOSSARY OF INVESTMENT TERMS

Agencies. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called "Freddie Mac" issues discount notes, bonds, and mortgage pass-through securities.

FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "Fannie Mae," issues discount notes, bonds, and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as "Ginnie Mae" issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

Asked. The price at which a seller offers to sell a security.

Asset Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

Average Life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

Bankers' Acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor.

Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

Bid. The price at which a buyer offers to buy a security.

Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issued a security, the issuer will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.

Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate.

Large denomination CDs may be marketable.

Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

Commercial Paper. The short-term unsecured debt of corporations.

Cost Yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

Coupon. The annual rate of interest which is paid on a bond.

Credit Risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

Current Yield. The annual income from an investment divided by the current market value.

Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

Debenture. A bond secured only by the general credit of the issuer.

Delivery vs. Payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components ("Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

Federal Deposit Insurance Corporation (FDIC). An independent US agency that insures bank deposits, including deposits in a checking account, negotiable order of withdrawal (NOW) account savings account, money market deposit account (MMDA), time deposit such as a certificate of deposit (CD), or an official item issued by a bank (such as a cashier's check or money order), currently up to $250,000 per depositor, per issued bank, for each account ownership category.

Federal Funds Rate. The rate of interest charged by banks for short-term loans to other banks.

The Federal Reserve Bank through open-market operations establishes it.

Federal Open Market Committee. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

Investment Advisor. As defined by the Investment Advisors Act of 1940, any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or via written publications. An investment advisor who has sufficient assets to be registered with the SEC is known as a Registered Investment Advisor, or RIA. Investment advisors are prohibited from disseminating advice known to be deceitful or fraudulent and from acting as a principal on their own accounts by buying and selling securities between themselves and a client without prior written consent.

Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

Liquidity: The speed and ease with which an asset can be converted to cash without a substantial loss in value

Local Agency Investment Fund (LAIF). The aggregate of all funds from political subdivisions that are placed in custody of the State Treasurer for investment and reinvestment.

Local Government Investment Pool (LGIP). A comingled investment pool comprised of funds from political subdivisions that are placed in custody of the program for investment and reinvestment.

Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole.11

Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.

Market Risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

Market Value. The price at which a security can be traded.

Marking to Market. The process of posting current market values for securities in a portfolio.

Maturity. The final date upon which the principal of a security becomes due and payable.

Medium Term Notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a cont inuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

Modified Duration. The percent change in price for a 100 basis point change in yields.

Modified duration is the best single measure of a portfolio's or security’s exposure to market risk.

Money Market. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

Mortgage Pass-Through Securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

Municipal Securities. Securities issued by state and local agencies to finance capital and operating expenses.

Mutual Fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested

in various types of domestic and/or international stocks and bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

Nationally Recognized Statistical Rating Organization (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings.

The three most prominent NRSROs are Fitch, S&P, and Moody's.

Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

Prepayment Speed. A measure of how quickly principal is repaid to investors in mortgage securities.

Prepayment Window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

Primary Dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

Prudent Person (Prudent Investor) Rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes."

Realized Yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

Regional Dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

Repurchase Agreement (RP, Repo). Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.

Structured Note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities, or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the

relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

Supranational. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

Time Deposit. A savings account or certificate of deposit (CD) that pays a fixed rate of interest until a given maturity date.

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

U.S. Treasury Obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

Treasury Bills. Treasury securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows.

Treasury Notes. Treasury securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

Treasury Bonds. Treasury securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

DATE: June 26, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: STEPHEN PARKER, CPA, ASSISTANT CITY MANAGER

LONDA BOCK-HELMS, CPA, FINANCE OFFICER
SUBJECT: TREASURER’S REPORT MAY 2023

RECOMMENDED ACTION:

It is recommended that the City Council receive and file the May 2023 Treasurer’s Report.

GOAL STATEMENT
The proposed action supports the City’s goal to manage the City’s resources in a fiscally responsible manner.

BACKGROUND
Per California Government Code Section 53646(b), the City’s treasurer or chief fiscal officer may render a treasurer’s report to the City Council on a quarterly basis. The City has elected to provide this report to City Council monthly, but the City of Upland’s Investment Police (Approved May 23, 2022) requires the Investment Officer to provide a report quarterly to the Finance Committee at regularly scheduled meetings. This report shall include the type of investment, issuer, date of maturity, par, and dollar amount invested on all securities, current market value as of the date of the report, investments and monies held by the local agency, and shall additionally include a description of any of the local agency’s funds, investments, or programs, that are under the mana gement of contracted parties, including lending programs. The report shall include a statement of compliance with the investment policy and shall include a statement noting the City’s ability to meet its expenditure requirements for the next six months.

ISSUES AND ANALYSIS
The submission of the monthly Treasurer’s Report is a compliance measure.

ENVIRONMENTAL DETERMINATION
The proposed action is not subject to the California Environmental Quality Act (CEQA). Section 15378 of the CEQA Guidelines defines a project subject to CEQA. The proposed action is not included within the definition of a “project” and thus is exempt.

FISCAL IMPACTS
There is no fiscal impact associated with this action.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: Not a Project.

DATE: June 26, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR/CITY ENGINEER

NICOLE DEMOET, ENVIRONMENTAL QUALITY ADMINISTRATOR
SUBJECT: CONSIDER APPROVAL OF A RESOLUTION AMENDING THE REGIONAL SEWERAGE

SUPPLEMENTAL CAPITAL OUTLAY FEE

RECOMMENDED ACTION:

It is recommended that the City Council adopt a Resolution amending the Regional Supplemental Capital Outlay fee to reflect an increase in the Inland Empire Utilities Agency fee from $7,600 to $8,132 per equivalent dwelling unit (EDU).

GOAL STATEMENT
The proposed action supports the City’s goal of establishing fair and equitable fees and charges for the use of the community’s sewers.

BACKGROUND
The City of Upland, together with six other cities/agencies, is a party to the “Regional Sewage Service Contract” with Inland Empire Utilities Agency (IEUA), for the treatment and disposal of its sewage. Under contract, Upland is obligated to fund its fair share of regional sewerage interceptor and treatment capacity improvements to mitigate impacts from new development. The City has consequently established a “Regional Sewerage Supplemental Capital Outlay Fee,” which is essentially a “pass-through” fee collected by the City for payment to IEUA. The fee is a sewer connection fee on development projects that will increase sewage effluent and does not apply to existing sewer utility customers.

The adoption of a sewer connection fee is subject to Government Code Sections 66013 and 66016, which do not have publication requirements. Staff worked with the City Clerk to provide notice to interested parties.

ISSUES AND ANALYSIS
On April 19th, 2023, the IEUA Board of directors adopted Resolution No. 2023-4-3, increasing the capacity fee from $7,600 to $8,132 per EDU (a 7% increase), effective July 1, 2023. T he City is required to adjust its capital outlay fee the same amount, to ensure that money will be available when IEUA makes capital calls or to ensure timely payment to IEUA upon requests for the funds held in the City’s Capital Capacity Reimbursement Account. The revenue is collected by the City from new development at the time of permit issuance until IEUA formally makes a request for a withdrawal of the funds. The City is obligated under the provisions of the Regional Contract to provide the new connection fees on demand by IEUA.

ENVIRONMENTAL DETERMINATION
This Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

FISCAL IMPACTS
The increase of the “Regional Sewerage Supplemental Capacity Outlay Fee,” in the amount of $532 per EDU (From $7,600 to $8,132 per EDU) is fiscally neutral to the City of Upland. The “pass-through” fee will be collected from new development for payment to IEUA.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: Not a Project.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UPLAND, CALIFORNIA, AMENDING THE REGIONAL

SEWERAGE SUPPLEMENTAL CAPITAL OUTLAY FEE TO

REFLECT AN INCREASE IN THE INLAND EMPIRE UTILITIES

AGENCY RATE

WHEREAS, the City of Upland is a party to the Regional Sewerage Service Contract, thereby necessitating the collection of certain development fees needed to finance the maintenance and expansion of regional sewerage facilities operated by the Inland Empire Utilities Agency (hereinafter “IEUA) and which serve the City of Upland; and

WHEREAS, pursuant to the Regional Sewerage Service Contract, the contracting agency advisory committees consisting of representatives from each of the contracting agencies including the City of Upland, have agreed to approve a Reimbursement payment adjustment; and

WHEREAS, on April 19, 2023, the Board of Directors of IEUA adopted new reimbursement rates applicable to the contracting agencies, including the City of Upland for Fiscal Year 2023/24 at $8,132/EDU effective July 1, 2023; and

WHEREAS, the City of Upland has heretofore established as a fee of development, a Regional Sewerage Supplemental Capital Outlay Fee for purposes of funding its obligations under the Regional Sewerage Service Contract. Section

13.24.040 in Article I of Chapter 13.24 of Title 13 of the Upland Municipal Code provides that said fee may be set by resolution of the City Council. Based upon the increase of the Capital Capacity Reimbursement Payment referred to above, the City Council has determined that it is necessary to increase in a like amount, the City’s Regional Supplemental Capital Outlay Fee, through the adoption of this Resolution; and

WHEREAS, the City Council found and determined that the fee established hereby is a fee authorized by law and that said fee does not exceed the estimated reasonable amount for which the fee is being imposed, and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, the City Council of the City of Upland, California, hereby finds, determines and resolves as follows:

Section 1. All of the facts set forth in the recitals part of the Resolution, are true and correct.

Section 2. The Regional Sewerage Supplemental Capital Outlay Fee rate is set to $8,132 per EDU effective July 1, 2023.

Resolution No.

Section 3. The new rates shall be paid prior to the issuance of a building permit or a sewer connection permit, whichever would be first issued.

Section 4. These rates shall remain in effect until amended by subsequent resolution of the City Council.

Section 5. Compliance with California Environmental Quality Act. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

Further, if the activity is deemed a project this City Council finds that this Resolution is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.

Section 6. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book or original resolutions.

Section 7. Effective Date. This Resolution shall become effective immediately.

PASSED, APPROVED and ADOPTED this 26th day of June, 2023.

Bill Velto, Mayor

I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 26th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

DATE: June 26, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR

BOB CRITCHFIELD, ENGINEERING MANAGER
SUBJECT: CONSIDER APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH J.G.

BAUTISTA CONSULTING FOR ENGINEERING SERVICES

RECOMMENDED ACTION:

It is recommended that the City Council approve a Professional Services Agreement (PSA) with J.G. Bautista Consulting for engineering consultant services in an amount not to exceed $75,000 annually for the next three fiscal years and authorize the City Manager to execute the agreement.

GOAL STATEMENT
The proposed action supports the City’s goal to maintain and improve the City public roadway and infrastructure facilities.

BACKGROUND
The City utilizes professional consultant services for the design of Capital Improvement Projects involving street, facility, and utility improvements. These consulting services are ne cessary to augment limited city staff and enhance project delivery.

On December 11, 2017, the City authorized a PSA with J.G. Bautista Consulting, followed by subsequent Amendments and PSAs with the last PSA approved on January 11, 2021, which authorized funding through June 30, 2023.

J.G. Bautista Consulting has over 30 years of professional experience in project design, inspection, and construction management for municipal facilities. Some of their past clients include the cities of Upland, Downey, and the Central Basin Municipal Water District. J.G. Bautista Consulting has provided professional consulting services for the City of Upland in a satisfactory manner, with some of their past Upland specific projects including the following:

 7th St. & Harrington Ave. Rehab & Utility Improvements (8 th St. to Euclid Ave.)  9th St. Rehab & Utility Improvements (3rd Ave. to Campus Ave.)  13th St. Reconstruction & Utility Improvements (Euclid Ave. to Campus Ave.)  17th St. Rehab. & Utility Improvements (San Antonio Ave. to Euclid Ave.)  Alley Reconstruction & Water Improvements in the Southeast Quadrant  Bixby Way Rehab & Water Improvements

J.G. Bautista Consulting is involved in the design of current capital projects including the following:

 Foothill Blvd. Rehab (Benson Ave. to Mountain Ave.)
 Foothill Blvd. Rehab (Mountain Ave. to San Antonio Ave.)  Mulberry Ave. (Foothill Blvd. to Pine St.)

ISSUES AND ANALYSIS
The Public Works Department’s Engineering Division requires engineering services to support the City’s budgeted capital improvement program and to respond to situations that require immediate attention. The use of consultants benefits the Department by providing flexibility to meet fluctuations in workload and frees staff to manage multiple projects at once.

The execution of the attached PSA with J.G. Bautista Consulting will provide professional consultant services for a period through June 30, 2026.

ENVIRONMENTAL DETERMINATION
The Professional Services Agreement for consultant engineering staff is not a project subject to the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5) of the CEQA Guidelines, which states that organizational or administrative activities of a government which do not result in direct or indirect physi cal changes in the environment is not a project under CEQA.

FISCAL IMPACTS
The proposed Professional Services Agreement with J.G. Bautista Consulting will not exceed $75,000 annually for each of the three years covered by the agreement. Funds are available and compensation to the Consultant is paid for from adopted Fiscal Year Budgets, with expenditures paid out of the adopted FY CIP Program relative to the projects the Consultant is working on.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: Not a Project.

1 CITY OF UPLAND

PROFESSIONAL SERVICES AGREEMENT

This Agreement is made and entered into as of June 26, 2023 by and between the City of Upland, a public agency organized and operating under the laws of the State of California with its principal place of business at 460 N. Euclid Avenue, Upland, CA 91786 (“City”), and J.G. Bautista Consulting, a sole proprietorship, with its principal place of business at 19425 Braes River Drive, Walnut, CA 91789 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

Professional Engineering Consultant Services for Capital Improvement Program Projects (hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Services.

Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”

2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B”. b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $ 75,000.00 (seventy-five thousand dollars and zero cents) per Fiscal Year. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed.

Payments to Consultant for work performed will be made on a monthly billing basis.

c. The City Manager may approve Additional W ork, as further defined in Section 3, up to ten percent (10%) of the amount of the Agreement or fifty thousand dollars ($50,000.00). In no event shall the total sum of the agreement (original compensation amount and Additional W ork) exceed eighty two thousand five hundred dollars ($82,500.00) per Fiscal Year. Any additional work in excess of this amount shall be approved by the City Council.

2 3. Additional Work.

If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.

4. Maintenance of Records.

Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.

5. Term.

The term of this Agreement shall be from July 1, 2023 to June 30, 2026, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work.

6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; pandemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint.
b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.

7. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

3 8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.

9. Assignment and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

10. Independent Contractor
Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided.
a. PERS Eligibility Indemnification
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City.

4 (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
(7) Contractual Liability with respect to this Agreement (8) Property Damage
(9) Independent Contractors Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for c laims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.
c. Workers’ Compensation/Employer’s Liability

5 (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.

(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.

d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein.

This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage

Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Professional Liability $1,000,000 per claim and aggregate (errors and omissions)

(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required

6 Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
g. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.

Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:

7 (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
i. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section.

Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

12. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

8 b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. b. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.

14. Verification of Employment Eligibility.

9 By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.

15. Reserved.

16. Laws and Venue.

This Agreement shall be interpreted in accordance with the laws of the State of California.

If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 17 Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City. 18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.

19. Organization
Consultant shall assign Jaime Bautista as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.

20. Limitation of Agreement.

This Agreement is limited to and includes only the work included in the Project described above.

21. Notice

10 Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:

DISTRICT:

City of Upland
460 N. Euclid Avenue
Upland, CA 91786
Attn: Braden Yu, Public Works Director
CONSULTANT:

J.G. Bautista Consulting
19425 Braes River Drive
Walnut, CA 91789
Attn: Jaime G. Bautista, P.E.

and shall be effective upon receipt thereof.

22. Third Party Rights
Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.

23. Equal Opportunity Employment.

Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

24. Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.

25. Severability
The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the remaining provisions unenforceable, invalid or illegal.

26. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

27. Non-Waiver

11 None of the provisions of this Agreement shall be considered waived by either Party, unless such waiver is specifically specified in writing.

28. Time of Essence
Time is of the essence for each and every provision of this Agreement.

29. City’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.

30. Prohibited Interests
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
[SIGNATURES ON FOLLOWING PAGE]

12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN CITY OF UPLAND
AND J.G. BAUTISTA CONSULTING

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF UPLAND J.G. BAUTISTA CONSULTING

By: By:

Michael Blay
City Manager Its:

Printed Name:

ATTEST:

By:

Keri Johnson
City Clerk

APPROVED AS TO FORM:

By:

Stephen Deitsch
City Attorney

13 EXHIBIT A
Scope of Services

The specific elements (scope of work) of this service include:

1. Review project plans, estimates, and specifications for public works projects.

2. Prepare plans utilizing AutoCad program.

3. Perform project design, prepare cost estimates, specifications, bid documents, and advertise projects for bidding.

4. Perform field survey for design and construction purposes.

5. Conduct inspection, contract administration, and other construction related work.

6. Prepare Change Orders and other reports.

7. Meet with Contractors and Consultants when necessary.

8. Performs other engineering services the City of Upland may require in a timely and professional manner, and in accordance with good Engineering practices.

14 EXHIBIT B
Schedule of Charges/Payments

Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract.

Engineering Services $75.00 Per Hour

Mileage Expense
(use of personal vehicle for field work)
Prevailing Federal Mileage Rate

DATE: June 26, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR,

BOB CRITCHFIELD, ENGINEERING MANAGER,

NICOLE DEMOET, ENVIRONMENTAL COMPLIANCE PROGRAM MANGER

JULIAN CHANG, ASSOCIATE ENGINEER-ENVIRONMENTAL DIVISION SUBJECT: CONSIDER AWARD OF BID FOR THE STORM WATER TRASH CAPTURE SYSTEM INSTALLATION PROJECT (PROJECT NO. 9149)

RECOMMENDED ACTION:

It is recommended that the City Council approve the Specifications for the Storm Water Trash Capture System Installation Project (Project No. 9149); award the construction contract to United Storm Water, Inc. in the amount of $38,201; and approve a construction contingency in the amount of $11,799 for a total amount of $50,000 and authorize the City Manager to execute the agreement, and any future amendment and extension within the City Manager’s authority.

GOAL STATEMENT
The proposed action supports the City’s goal of maintaining regulatory compliance with the provisions and Orders of the State Water Resources Control Board.

BACKGROUND
Pursuant to Resolution No. 2015-0019 of the State Water Resources Control Board, and Federal Clean Water Act Section 402 (p), the City of Upland is beginning the process of installing, oper ating, and maintaining Full Capture Systems (FCS) for all storm drains that capture runoff from Priority Land Uses throughout the City. Priority Land Uses include high-density residential, industrial, commercial, mixed urban, and public transportation sta tions. These areas have been identified as significant sources of trash generation. The City is required to have FCS installed to capture storm flows (and ultimately trash) from all Priority Land Uses by 2030. This project involves furnishing and installation of FCS in five (5) existing Catch Basins (CBs) at the northeast corner of the intersection of Monte Vista Avenue and Foothill Boulevard, and seventeen (17) existing CBs at the northwest corner of Mountain Avenue and 9th Street. This project also includes the installation of a catch basin filter insert inside a curb opening catch basin at 1200 N. Benson Avenue, approximately 600 feet south of the intersection for W. 13 th St. and N. Benson Ave. Staff evaluated FCS from various manufacturers and chose two specific models (or their approved equivalent) that are suitable for our application based on evaluations of the ease of maintenance, structural integrity, and future adaptability.

ISSUES AND ANALYSIS
The Storm Water Trash Capture System Installation Project Notice Inviting Bids (NIB) was advertised on May 12, 2023 and May 19, 2023 in accordance with the California Public Contract Code (Section 20164) and was posted on the City’s website and distributed to various electronic plan rooms. On June 5, 20 23, the City received and opened three bids for the Project, under Bid No. 2023-01, as follows:

BIDDER BID AMOUNT
Downstream Services, inc. $46, 060.00
C.P. Construction Company, Inc. $149,100.00
United Storm Water, Inc. $38, 201.00

The City reviewed the bid information and confirmed that United Storm Water, Inc. of City of Industry, California, is the lowest responsible and responsive bidder. If awarded by the City Council, construction is anticipated to begin in July and be substantially complete by September 2023, weather permitting.

ENVIRONMENTAL DETERMINATION
The project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (“CEQA”), and the State CEQA Guidelines, and dete rmined to be categorically exempt from further environmental review pursuant to Section 15301(c) (Existing Facilities), of CEQA Guidelines. The project involves repair, maintenance, and retrofit of existing public facilities, and does not involve any expa nsion of use beyond that which is existing.

FISCAL IMPACTS
The City’s adopted Fiscal year 2022-2023 Capital Improvement Program (FY 22023 CIP) budget contains sufficient funds for the project. The estimated project costs and funding are summarized below:

Estimated Project Costs

Basic Bid Amount $38,201.00
Construction Contingency $11,799.00
Total Contract Work: $50,000.00

Construction Administration and Inspection $10,000.00 Total Project Cost: $60,000.00

Funding

FY 22-23 CIP Account No. 640-9149 (Env. Sewer) $60,000.00 Total Project Funding: $60,000.00

ALTERNATIVES

1. Reject all bids and authorize the City Clerk to re-advertise the Storm Water Trash Capture System Installation Project. Due to a successful bidding process and strict timelines associated with the Trash Provision Order Compliance, staff does not recommend this alternative.

2. Provide alternation direction to staff.

CEQA: Determined to be categorically exempt from further environmental review pursuant to Section 15301 (c) (Existing Facilities), of the CEQA guidelines.

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 39 - 00 52 13 – CONTRACT FOR CONSTRUCTION

00 52 13 – CONTRACT FOR CONSTRUCTION
This Contract for Construction (“Contract”), No. ________ is made and entered into this ________ day of ________, 20 ___ by and between the CITY OF UPLAND , with its principal place of business at 460 N. Euclid Avenue, Upland, California 91786 sometimes hereinafter called the “City” and ________________________, sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:

ARTICLE 1. SCOPE OF WORK.

The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:

Project No. 9149
Bid No. 2023-01

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave
City of Upland
Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION.

Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 56 calendar days (8 weeks) from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE.

The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of
____________________________________________________________________ Dollars ($_________________________________). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the 9149
26th June 23
United Storm Water, Inc.

Thirty Eight Thousand Two Hundred and One
38,201.00

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 40 - 00 52 13 – CONTRACT FOR CONSTRUCTION

Project, it would be impracticable or extremely difficult to determine the City’s actual damages.

Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $250 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.

Consistent with Public Contract Code Section 7102, Contractor will be compensated for damages incurred due to delays for which the City is responsible. The parties agree that determining Contractor’s exact delay damages is and will continue to be impracticable and extremely difficult.

As such, for each calendar day in excess of the Contract Time, the City shall pay to the Contractor $250 per day as Reverse Liquidated Damages and not as a penalty or forfeiture. Such amount shall constitute the only payment allowed for any City caused delays and shall necessarily include all overhead, all profits, all administrative costs, all bond costs, all labor, materials, equipment and rental costs and any other costs, expenses and fees incurred or sustained as a result of such delays. Notice of requests for delay damages and additional days shall be provided to the City within five (5) Days from the discovery of the circumstances giving rise to any delay or three (3) Days from the discovery of any latent or subsurface conditions giving rise to a delay.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.

The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Forms
Bid Acknowledgement
Bid Schedule
Bid Guarantee
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor DIR Registration Certification
Performance Bond
Payment (Labor and Materials) Bond
Contract for Construction
General Conditions
Special Conditions
Specifications
Addenda
Construction Plans and Drawing
Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Applicable Local Agency Standards and Specifications, as last revised

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 41 - 00 52 13 – CONTRACT FOR CONSTRUCTION

Reference Specifications
Approved and fully executed Change Orders
Permits
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE.

Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.

ARTICLE 7. INDEMNIFICATION.

Contractor shall provide indemnification and defense as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES.

Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.

ARTICLE 9. FALSE CLAIMS.

Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years.

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STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
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IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

CITY OF UPLAND

By:

Bill Velto, Mayor

ATTEST:

By:

Keri Johnson, City Clerk

APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney

NAME OF CONTRACTOR

[IF CORPORATION, TWO SIGNATURES,

PRESENT OR VICE PRESIDENT AND
SECRETARY OR TREASURER REQUIRED]
By:

Its:

Printed Name:

[SECOND SIGNATURE LINE IF
APPLICABLE]

By:

Its:

Printed Name:

____________________________________
Contractor’s License Number and
Classification

____________________________________
DIR Registration Number

(CONTRACTOR’S SIGNATURE MUST BE

NOTARIZED AND CORPORATE

SEAL AFFIXED, IF APPLICABLE)

END OF CONTRACT

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 44 -00 52 13 – CONTRACT FOR CONSTRUCTION 00 61 13 – BOND FORMS
Performance Bond
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the CITY OF UPLAND , with its principal place of business at 460 N. Euclid Avenue, Upland, California 91786 (hereinafter referred to as the “City”) has awarded to _________________________, (hereinafter referred to as the “Contractor”) an agreement for Contract No._________, (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, ______________________, the undersigned Contractor and ________________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of ____________________________________________ DOLLARS, ($____________), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by the City in enforcing such obligation.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s United Storm Water, Inc.
9149
June 26, 2023
United Storm Water, Inc.

Thirty Eight Thousand Two Hundred and One
38,201.00

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 45 - 00 52 13 – CONTRACT FOR CONSTRUCTION

obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15.

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
i. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
ii. Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.
iii. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

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

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

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project.
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STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 46 - 00 52 13 – CONTRACT FOR CONSTRUCTION

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________.
(The above must be filled in by corporate attorney.)

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________ ___________________________________________
___________________________________________
(Name and Address of Agent or ___________________________________________ Representative for service of ___________________________________________ process in California, if different ___________________________________________ from above)
(Telephone number of Surety ___________________________________________ and Agent or Representative for
service of process in California)

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 47 - 00 52 13 – CONTRACT FOR CONSTRUCTION

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

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for Contractor/Principal.

STORM WATER TRASH CAPTURE SYSTEM INSTALLATION
Monte Vista Ave and Foothill Blvd; Mountain Ave - 48 - 00 52 13 – CONTRACT FOR CONSTRUCTION

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

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of Attorney to local representatives of the bonding company must also be attached.

END OF PERFORMANCE BOND

Payment Bond (Labor and Materials).

KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the CITY OF UPLAND , with its principal place of business at 460 N. Euclid Avenue, Upland, California 91786 (hereinafter designated as the “City”), by action taken or a resolution passed ___________________ , 20_____, has awarded to ______________ hereinafter designated as the “Principal,” a contract for the work described as follows: Contract No.____________ (the “Project”); and
WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of ____________________________________ _________________ Dollars ($___________) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Revenue and Taxation Code Section 18663, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses.

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

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or June 26 23 United Storm Water, Inc.
9149
June 26, 2023
38,201.00
Thirty Eight Thousand Two Hundred and One

pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Civil Code Section 9100, and has not been paid the full amount of his claim.

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

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title

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

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for Contractor/Principal.

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

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

END OF PAYMENT BOND

DATE: June 14, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR

ALAN FRENCH, PRINCIPAL ENGINEER

YESENIA DIAZ, ASSISTANT ENGINEER
SUBJECT: CONSIDER APPROVAL OF PARCEL MAP 20395 AND SUBDIVISION AGREEMENT, LOCATED AT 81 W. FOOTHILL BLVD

RECOMMENDED ACTION:

It is recommended that the City Council approve Parcel Map 20395 for recordation and authorize the City Manager to sign the subdivision agreement.

GOAL STATEMENT
The proposed action supports the City’s goal to adhere to a review schedule for the processing of development proposals in an efficient, professionally responsive, and courteous manner .

BACKGROUND
On July 28, 2021, the Planning Commission adopted Resolution No. 4951 approving TPM 20395 (TPM 21 -0001), to subdivide one parcel into two parcels for property within an existing commercial center located in the commercial/residential mixed-use zone at 81 W. Foothill Boulevard.

There is no associated project submitted nor is there any construction proposed for Parcel Map 20395.

ISSUES AND ANALYSIS
The final map approval and recordation will allow for the sale of the newly created lot. The final map is in conformance with the conditions of approval. The frontage improvements on Foothill Boulevard are existing a nd easements for access and utilities for each parcel are shown on the map. The Subdivision Agreement and a cash monumentation bond in the amount of $3,000 has been received by the City.

ENVIRONMENTAL DETERMINATION
The design of the subdivision is not likely to cause any environmental damage or substantially and avoidably injure fish or wildlife or their habitat. The existing grocery store building was built in 1974. In September 2002, the Planning Commission approved the fueling station, including a 3,698 square foot ca nopy, 250 square foot kiosk and the fuel dispenser islands. The subdivision does not involve any changes to the existing urban setting; therefore, it does not include any environmental damage or changes to habitat(s). The approval of the map will allow separate ownership of each parcel and common ownership of the common areas. Therefore, the proposed subdivision and the proposed site improvements are not likely to cause substantial damage to the environment.

FISCAL IMPACTS
There is no fiscal impact associated with this action.

ALTERNATIVES
Provide alternative direction to staff.

CEQA: This project is categorically exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15315.

SHEET 1 OF 2 SHEETS2 PARCELS

6.10 ACRES GROSS

5.03 ACRES NET
147532.20R000-004.368_Vons_-_2681AS_Boundary_Sub_ver7-Signed.pdf

SHEET 2 OF 2 SHEETS
147532.20R000-004.368_Vons_-_2681AS_Boundary_Sub_ver7-Signed.pdf

Revised: May 11, 2016

SUBDIVISION AGREEMENT
Parcel Map Number__20395_______
THIS AGREEMENT is entered into as of this day of
20 by and between Safeway Realty LLC, a Delaware Limited Liability Company, 81 West Foothill Blvd, Upland Ca. 91786 (hereinafter referred to as “Subdivider”) and the CITY OF UPLAND, a municipal corporation (hereinafter referred to as the “City”).

A. Recitals
(i) The City approved a Tentative Parcel Map pursuant to the California Subdivision Map Act as set forth in California Government Code Section 66410 et. seq. (“Map Act”) identified as Tentative Parcel Number ___ 20395 _____ in the City of Upland, State of California; and
(ii) Subdivider seeks approval of a Final Map under the Map Act identified as Final Parcel Map Number 20395
B. Agreement
It is agreed by and between the parties hereto as follows:

1. In consideration of the City’s approval of and filing Tentative Subdivision Parcel Map Number 20395 and Final Parcel Number 20395 , Subdivider undertakes and agrees that it will, at Subdivider’s sole cost and expense, design, construct and install all the improvements in accordance with the plans, specifications on file with the City, incorporated herein and made a part hereof, and including all conditions of approval required by the Planning Commission and City Council of the City of Upland.

2. Subdivider also undertakes and agrees upon the same consideration to design, construct and install all improvements in accordance with the ordinances and regulations of the City, and to do all other and further acts required of it pursuant to this Agreement.

3. Subdivider agrees in connection therewith to pay or cause to be paid all amounts becoming due to contractors, subcontractors, and persons renting equipment or furnishing labor or materials to the foregoing Final Parcel with respect to such improvements.

4. Subdivider agrees that all such improvements shall be constructed and completed in accordance with the city standards required by the City Engineer.

In case of dispute, the good faith judgment of the City Engineer shall be final and binding upon the parties.

5. Subdivider undertakes and agrees that all of the work of improvement shall be completed within three hundred sixty five (365) days from the date of execution of this Agreement.

6. Should Subdivider fail to comply with any of the terms or provisions of this Agreement, Subdivider shall be liable to the City for the reasonable value of any work or improvements not completed or improperly done or performed. In the event of any such failure, the City shall give to Subdivider written notice thereof.

Unless the work or improvements covered by said notice, including defective work and improvements, are commenced by Subdivider within fifteen (15) days of the date of said notice and diligently prosecuted to completion, the City may at its option:

Revised: May 11, 2016
a) Collect from Subdivider the reasonable value of the work and improvements not so done and performed by Subdivider, to be measured by the anticipated costs and expenses of completing the same; or b) The City may complete said work and improvements not so completed by Subdivider and collect its costs and expenses in completing the same; or
c) The City may, as to some of such work and improvements, proceed under remedy (a) above, and as to the remainder, under remedy (b) above.

The City may change any election prior to trial of any lawsuit, and prior thereto no election of remedies shall be binding upon the City. In either event, there shall be included in said “costs and expenses,” the reasonable overhead expenses of the City. In addition to the foregoing, Subdivider shall be liable to the City for reasonable attorneys’ fees and court costs incurred by the City in enforcing the obligations of Subdivider under this Agreement.

7. All slope banks over three (3) feet in vertical height within said Parcel Map shall be landscaped with landscaping approved by the City Engineer. Sprinklers shall be installed on all slopes over three (3) feet in vertical height along arterial streets and shall be of a type and according to a sprinkler plan approved by the City Engineer, with sprinkler turn-ons at the tops of the slopes, and connected with the remainder of the water systems of the lots of which such slopes are a part.

8. Subdivider shall, at its sole cost and expense, secure and furnish to the City, bonds in a form approved by the City, executed by a corporation authorized to transact surety business within the State of California, for the following amounts and purposes:
(a) A bond in the amount of $ 0 guaranteeing full performance of all the terms of this Agreement, see Performance Bond No._______ __. (b) A bond in the amount of $ 0 securing payment to the contractor, his subcontractor and to persons renting equipment or furnishing labor or materials to them with respect to said public improvements, see Labor and Materials Bond No.________ _.
(c) A cash deposit in the amount of $ 3,000 securing the setting of monuments.

9. Acceptance of any work or improvements by the City shall not constitute an acknowledgment by the City that the same are properly done or performed, except as to any items or matters readily apparent from an inspection thereof. Except as to such matters so readily apparent, Subdivider shall repair any defects which occur in the work of improvements within a one (1) year period thereof following acceptance by the City.

10. As a condition precedent to the acceptance of the improvements hereunder as being complete and prior to the release of any bonds required under paragraph 8, hereof, securing the faithful performance of Subdivider’s obligations hereunder, Subdivider shall give a bond with a corporate bonding company or similar instrument, satisfactory to the City in the amount of $0 as guarantee and warranty of the work for a one (1) year period following the completion and acceptance thereof against any defective work or labor done, or defective materials furnished.

11. Except as to the sole and exclusive negligence of City, its elected officials, officers agents and employees, Subdivider hereby agrees to indemnify, defend and hold harmless, the City, its elected officials, officers, agents and employees from and

Revised: May 11, 2016
against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, all civil claims, workers’ compensation claims, costs, expenses or damages to property or injuries to or death of any person or persons, including attorneys fees and all other claims, whether groundless or not, arising out of or related to the acts, errors or omissions of Subdivider, its officers, agents, employees, consultants, subcontractors or other persons, companies or other entities using roadways/streets of the subdivision, performing labor, transporting and/or supplying material, designing, constructing or installing the improvements contemplated in this Subdivision Agreement. Where the Subdivider divides the project in phases and or allows construction vehicles or construction traffic use the same roadways/streets used by residents of the subdivision causing accidents, the Subdivider shall indemnify the City, its officers, its employees and its agents from any and all liability, claims, damages, or injuries to any person or property arising from the Subdivider’s actions or actions of his employees, agents, and contractors.

12. All notices to Subdivider may be sent to Safeway Realty LLC, 81 West Foothill Blvd., Upland CA 91786 or at such other address of which the City shall receive notice in writing specifically calling attention to this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

Safeway Realty LLC, a Delaware Limited
Liability Company

BY

BY

CITY OF UPLAND, a municipal Corporation

BY
Michael Blay, City Manager

ATTEST
Keri Johnson, City Clerk

DATE: June 26, 2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY, CITY MANAGER
PREPARED BY: BRADEN YU, PUBLIC WORKS DIRECTOR

BOB CRITCHFIELD, ENGINEERING MANAGER
SUBJECT: CONSIDER APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT FOR CITYWIDE

PAVEMENT SURVEY AND MANAGEMENT PROGRAM

RECOMMENDED ACTION:

It is recommended that the City Council award a professional services agreement with Transmap for pavement condition data collection and pavement management program update in the amount of $118,644.35; approve a contingency in the amount of $17,755.65, for a total amount of $136,400.00; and authorize the City Manager to execute the agreement and any future amendments within the City Manager’s authority.

GOAL STATEMENT
The proposed action supports the City’s goal of maintaining and improving the City’s public roadway and alley facilities.

BACKGROUND
Upland’s street infrastructure is critical to the operation of the City. Residents, businesses, visitors, and public s afety services depend heavily on Upland’s streets for the delivery of services that would be compromised without a dependable street network; however, that network requires regular preventative maintenance and repair to continue to serve the community.

On March 11, 2021, the American Rescue Plan Act, also known as "ARPA", was signed into law. The Coronavirus State and Local Fiscal Recovery Funds ("SLFRF") federal stimulus program administered by the US Treasury allocates $1.9 trillion to help state and local governments respond to the economic and public health impacts of COVID-19. Under the law, each local government agency nationwide receives an allocation of ARPA funds, based on a formula. The City's share is $15.2 million.

On July 26, 2021, the City Council approved proceeding with four master planning projects using $805,000 of ARPA funding. The projects included a Pavement Management System Report and Pavement Master Plan approved with a budget of $200,000.

The City of Upland includes a network of approximately 210 center miles of public streets and 38 miles of public alleys and is one of the largest assets the City owns and operates; however, over the years, traffic loading, weather, water, and aging of asphalt all contribute to the deterioratio n of the pavement network. The Engineering Division of the City is tasked with the operation of the City’s Pavement Management Program (PMP) in order to proactively address street and alley deterioration. The PMP identifies capital needs related to stree t maintenance required to ensure long-term sustainability of the roadway and alley infrastructure, such as slurry sealing, overlay, and reconstruction. Upland’s last citywide pavement survey occurred in 2009 and is in need of updating.

ISSUES AND ANALYSIS
On February 8, 2023, the City posted on its website and sent to local plan rooms a Request for Proposal (RFP) to perform pavement condition survey services that consist of collecting pavement condition data, pavement management program system set up, creating treatment data, establishing unit cost, and generating various treatment strategies and scenarios. The City received six proposals by the deadline of March 8, 2023.

A panel composed of two Public Works Engineering staff and one outside Eng ineering Consultant evaluated the proposals, and based on their responsiveness, ranked the proposals then averaged the rankings. While all the firms

were qualified to handle the proposed work, the panel concluded that Transmap showed the most comprehensive and thorough response to the RFP and undertaking of the work to be completed.

Transmap’s fee proposal was $81,683.25 for the public streets and alleys pavement data collection and is considered a fair price for the work effort and deliverables required as identified in the RFP. Based on the capabilities of the equipment utilized by Transmap, staff requested quotes from Transmap to provided value added services consisting of data collection for the following:

 Crosswalks, pavement markings, and striping with GIS integration ($24,605.50)  City parking lots and GIS integration ($12,355.60)

ENVIRONMENTAL DETERMINATION
The scope of work for this professional services agreement consists of performing a condition assessment and software data implementation. The environmental determination for this work effort is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15306 (“Information Collection”). Section 15306 consists of basic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource.

FISCAL IMPACTS
The Fiscal Year 2022/2023 Capital Improvement Program includes sufficient funds for the professional services contract. The estimated project costs, as well as the available funding, is summarized below:

Estimated Project Costs

Transmap Fee Proposal $81,683.25
City negotiated value added service: Striping and Pavement Markings $24,605.50 City negotiated value added service: City Parking Lots $12,355.60 Contingency (~15%) $17,755.65
Total Contract Work: $136,400.00

Previous Project Management, RFP Issuance, etc. (FY 22 -23) $1,585.30 Project Administration and QA/QC $10,000.00
Total Estimated Project Cost: $147,985.30

FY 2022/23 Funding
FY 22-23 CIP Acct. No. 229-8001 (ARPA) $200,000.00
Total Project Funding: $200,000.00

ALTERNATIVES

1. Do not include one or both of the value added services and award a professional service agreement to Transmap for the street and alley pavement data collection only ($81,683.25 contract and $12,252.00 contingency).

2. Provide alternative direction to staff.

CEQA: Not a Project.

1 CITY OF UPLAND

PROFESSIONAL SERVICES AGREEMENT

This Agreement is made and entered into as of June 26, 2023 by and between the City of Upland, a public agency organized and operating under the laws of the State of California with its principal place of business at 460 N. Euclid Avenue, Upland, CA 91786 (“City”), and Transmap, a Ohio Corporation, with its principal place of business at 5030 Transamerica Drive, Columbus, Ohio, 43228 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

Pavement Survey and Pavement Management Program
(hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Services.

Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”

2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. Except as set forth hereinafter, the total amount paid by City for services rendered by Consultant under this Agreement shall not exceed One Hundred Eighteen Thousand Six Hundred Forty-Four Dollars and Thirty-Five Cents ($118,644.35). Any work above that sum, up to a total amount of compensation under this Agreement of One Hundred Thirty-Six Thousand Four Hundred Dollars ($136,400.00) due to unforeseen conditions, change orders and the like shall be in City’s sole discretion. Consultant shall submit to the City monthly invoices which include a detailed description of Consultant’s services during the prior month and the amount of billing for the services. City shall pay Consultant within thirty (30) days of City’s receipt of monthly invoices from Consultant.

c. The City Manager may approve Additional Work, as defined in Section 3, above One Hundred Thirty-Six Thousand Four Hundred Dollars ($136,400), up to Fifty Thousand Dollars ($50,000). In no event shall the total compensation due Consultant under this Agreement

2 exceed One Hundred Eighty-Six Thousand Four Hundred Dollars ($186,400) without prior approval by the City Council.

3. Additional Work.

If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.

4. Maintenance of Records.

Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.

5. Term.

The term of this Agreement shall be from June 26, 2023 to June 26, 2025, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work.

6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; pandemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint.
b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.

7. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies.

3 c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.

9. Assignment and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

10. Independent Contractor
Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided.
a. PERS Eligibility Indemnification
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability

4 (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
(7) Contractual Liability with respect to this Agreement (8) Property Damage
(9) Independent Contractors Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for c laims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status.

5 (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.

c. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.

(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.

d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein.

This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage

Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Professional Liability $1,000,000 per claim and aggregate (errors and omissions)

6 (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
g. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.

7 Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.

h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
i. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section.

Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

12. Indemnification.

8 a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. b. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility

9 to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.

14. Verification of Employment Eligibility.

By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.

15. Reserved.

16. Laws and Venue.

This Agreement shall be interpreted in accordance with the laws of the State of California.

If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 17 Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.

19. Organization

10 Consultant shall assign Craig Schorling and Chris Crocker as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior writt en consent of the City.

20. Limitation of Agreement.

This Agreement is limited to and includes only the work included in the Project described above.

21. Notice

Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:

DISTRICT:

City of Upland
460 N. Euclid Avenue
Upland, CA 91786
Attn: Michael Blay, City Manager
CONSULTANT:

Transmap
5030 Transamerica Drive
Columbus, Ohio 43228
Attn: Craig Schorling, Vice President

and shall be effective upon receipt thereof.

22. Third Party Rights
Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.

23. Equal Opportunity Employment.

Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

24. Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.

25. Severability

11 The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the remaining provisions unenforceable, invalid or illegal.

26. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

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

28. Time of Essence
Time is of the essence for each and every provision of this Agreement.

29. City’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.

30. Prohibited Interests
Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, n o director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
[SIGNATURES ON FOLLOWING PAGE]

12 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN CITY OF UPLAND

AND TRANSMAP

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF UPLAND TRANSMAP

By: By:

Michael Blay
City Manager Its:

Printed Name:

ATTEST: By:

Its:

By: __
Keri Johnson Printed Name:

City Clerk

13 EXHIBIT A
Scope of Services

The Scope of Services shall be that set forth in City issued RFP dated February 8, 2023, Addendum No. 1 dated March 1, 2023, and Transmap Proposal dated March 8, 2023.

14 EXHIBIT B
Schedule of Charges/Payments

Consultant will invoice City on a monthly cycle in accordance with the billing rates set forth below.

Consultant will include with each invoice a detailed progress report that indicates the amount of budget spent on each task. Consultant will inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-materials contract.

FEE SCHEDULE

Task amounts are considered to be not-to-exceed amounts.

Task 1: Project Management ……………………………………………. $ 4,687.00 Task 2: Segmentation of Road & Alley Network
& Populating New StreetSaver Database ……………………………….

$ 1,744.00
Task 2.1: StreetSaver Licensing, Implementation, and GIS Link ……. $ 10,872.00 Task 3: Collect Pavement Distress Ratings ……………………………. $ 27,977.05 Task 4: Quality Control …………………………………………………… $ 5,990.00 Task 5: Populating Data ………………………………………………….. $ 17,075.20 Task 6: Decision Tree …………………………………………………….. $ 1,918.00 Task 7: Maintenance & Rehabilitation History Update ………………... $ 2,192.00 Task 8: Reporting and Analysis …………………………………………. $ 5,480.00 Task 9: GIS Link …………………………………………………………… $ 548.00
Task 10: StreetSaver Training for City Staff …………………………… $ 3,200.00 SUBTOTAL: $ 81,683.25
Value Added Negotiated Task: Parking Lot Collection (1 day) ……… $ 12,355.60 Value Added Negotiated Task: Crosswalks, Markings, & Striping ….. $ 24,605.50 TOTAL: $ 118,644.35

15 Consultant Rate Schedule:

The rate for any authorized additional services is shown below:

Position Title Hourly Rate
GIS Specialist $109.00
Project Manager $109.00
Senior Professional Engineer $220.00
Senior Technician $125.00
Principal/Officer $250.00
Senior Spatial Analyst $135.00

*Pricing is based on 210 roadway and 38 alley centerline miles – 10% samples not to exceed 1,153

CITY OF UPLAND
Public Works Department
Engineering Division

REQUEST FOR PROPOSALS
for

PAVEMENT SURVEY
AND

PAVEMENT MANAGEMENT PROGRAM

Date Released: February 8, 2023

Questions with regard to submissions, process, or proposals can be emailed to:

Bob Critchfield, P.E.

Engineering Manager
[email protected]

Proposals must be received prior to
3:00 P.M March 8, 2023
at the City of Upland, Public Works Department
1370 N. Benson Avenue
Upland, CA 91786

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Pavement Survey and Management Program Page 2 of 34

TABLE OF CONTENTS

Request for Proposal
Pavement Survey and Pavement Management Program

Request for Proposal .........................................................................................................3 Project Description ...........................................................................................................5 Background
Scope of Work
Additional Services
Cost Proposal
General Personnel Requirements
Deliverables
Schedule
Method of Payment
Materials to Be Provided by the Consultant
Insurance Requirements
Exhibit A: Submittal Requirements ................................................................................13 Exhibit B: Proposal Evaluation .......................................................................................16 Exhibit C: Fee Schedule .................................................................................................19 Exhibit D: Sample Contract Agreement .........................................................................20

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NOTICE
Request for Proposal
For

PAVEMENT SURVEY AND MANAGEMENT PROGRAM

NOTICE IS HEREBY GIVEN that the City of Upland is seeking to enter into a professional service agreement with a qualified consultant with solid expertise to provide a proposal for the pavement management program, database development with street information, survey/evaluation of the City’s approximate 210 center miles of streets and 38 miles of alleys, and recommendations for pavement maintenance methodologies and treatment strategies.

All qualified consultants interested in providing these services are invited to submit their proposal. The proposals will be evaluated and ranked according to the criteria provided in Exhibit B, “Proposal Evaluation,” of this Request for Proposal (RFP).

It shall be the Consultant’s responsibility to check the City of Upland’s website ( www.uplandca.gov) to obtain any addenda that may be issued.

The Consultant’s attention is directed to Exhibit A, “Submittal Requirements.” Submit five (5) hard copies and one (1) electronic copy in PDF format on a USB flash drive of the Consultant’s proposal. The hard copies and USB flash drive shall be hand delivered to the City of Upland Public Works Department, 1370 N. Benson Avenue, Upland, CA 91786, prior to 3:00 P.M. PST on March 8, 2023. The City is closed on Friday’s, please plan accordingly. Proposals shall be submitted in a sealed package clearly marked “Pavement Survey” and addressed as follows:

City of Upland
Attention: Bob Critchfield, Engineering Manager
1370 N. Benson Avenue
Upland, CA 91786

No late submittals will be accepted. The City may conduct interviews of the top-ranking consultants in order to make a final selection. The successful consultant will be recommended to the City Council for authorization to enter into a Professional Services Agreement for Pavement Survey and Pavement Management Program with the City of Upland.

Failure to comply with the requirements set forth in this Request for Proposal may result in disqualification. Proposals and/or modifications received subsequent to the hour and date specified above will not be considered. Submitted proposals may be withdrawn at any time prior to the submission time specified in this Request for Proposal, provided notification is received in writing before the submittal deadline. Proposals cannot be changed or withdrawn after the submittal deadline. No handwritten notations or corrections will be allowed. The responding Consultant is solely responsible for all costs related to the preparation of the proposal.

The City of Upland reserves the right to reject any or all proposals and to waive any minor informalities or irregularities contained in this proposal. Acceptance of any proposal submitted pursuant to this Request

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for Proposal shall not constitute any implied intent to enter into a contract.

The contract award, if any, will be made to the consultant who, in the City’s sole discretion, is best able to perform the required services in a manner most beneficial to the City. The completed Fee Schedule in Exhibit C shall be submitted with the proposal in its own separately sealed envelope.

The City intends to follow, but will not be bound by, the following selection timeline:

Release of Advertisement of RFP February 8, 2023
Deadline to Submit Questions/Clarifications 5:00 P.M. February 23, 2023 Addendum/Questions/Clarifications Posted 6:00 P.M. March 1, 2023 Deadline for Proposal Submittal 3:00 P.M. March 8, 2023 Award Date (Tentative) April 10, 2023

Any questions with regard to submissions, process, or proposals can be emailed to Bob Critchfield, Engineering Manager at [email protected]. Questions shall be submitted before 5:00 P.M. PST on February 23, 2023. Any response to a request for clarification, questions and answers will be posted to the City’s website at www.uplandca.gov no later than 6:00 P.M. PST on March 1, 2023 and if necessary, shall become a part of the proposal as an addendum.

The Request for Proposal can be viewed and/or obtained from the City of Upland website at www.uplandca.gov .

No oral questions or inquiries about the RFP shall be accepted.

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PROJECT DESCRIPTION
The City of Upland (herein referred to as “City”) is currently seeking a qualified consultant (herein referred to as “Consultant”) with experience in pavement condition survey services. The Consultant will provide services that consist of collecting pavement condition data, PMP System set up, GIS Link, creating treatment data, establishing unit cost, and generating various treatment strategies and scenarios. The City’s PMS (iWorQ) and field data needs to be updated and migrated to a new StreetSaver System with new inspection and pavement condition data for the City’s road and alley network.

The intent of this RFP is to evaluate each interested consultant specific qualifications, experiences, and select the best-qualified consultant. In addition, all interested consultants shall have sufficient, readily available resources in the form of trained personnel, support services, specialized consultants and financial resources to carry out the work without delay or shortcomings. The work will be performed according to the attached Professional Services Agreement The City intends to award a contract to one successful consultant for the services proposed by that consultant; however, all contracts are subject to approval by the Upland City Council, and the city reserves the right to not award any such contract at the discretion of the Council.

A proposer will be considered “non-responsive” to this request and disqualified from further consideration if any of the following minimum qualifications are not met:

1. Consultants must have a minimum of one (1) year experience related to fully implementing and/or performing maintenance updates for StreetSaver pavement management system or equivalent for at least five (5) cities or counties.

2. Consultant selected must be licensed to use StreetSaver Online prior to beginning of work.

BACKGROUND
The City currently maintains approximately 210 center miles of streets and 38 miles of alleys throughout the City. The City has a goal to survey the pavement conditions every 5-7 years, and to have a reliable pavement management system (“PMS”) to develop and plan the City’s pavement rehabilitation projects. The last survey was completed in the end of 2009.

Currently, the City utilizes iWorQ to manage maintenance history for our overall street and alley network.

SCOPE OF WORK
Task 1: Project Management
Project Kick-Off Meeting – Consultant will schedule a meeting with the City Staff to kick-off the project, establish communication channels and protocols, discuss the scope of work, schedule, and budget, gather available information, and obtain a thorough understanding of the goals for the project.

The Consultant shall establish internal project controls to monitor project status, budget, staffing, and scheduling on an on-going basis.

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Task 2: Segmentation of Road & Alley Network and Populating New StreetSaver Database The consultant shall review the existing iWorQ system for possible data export. In conjunction with field observation, Consultant shall split or combine, or add new sections as necessary from the existing data.

As part of this review and audit, Consultant shall physically measure all City maintained paved streets with an electronic distance measuring instrument. Each segment will be measured for width using an engineering wheel.

Types of data recorded during this process include:
• Pavement surface type
• Functional class
• Number of lanes
• Beginning & ending locations
• Estimated pavement age
• Street name (and Alley identification for public alleys) • Length and width
Once all streets and alleys are inventoried, the Consultant shall submit an Excel spreadsheet with all data fields for City review. After City’s approval, the consultant shall create the sections and import the data into the StreetSaver database.

The Consultant shall assist the City in procuring StreetSaver license and perform the GIS link. The implementation, 1 year license, and GIS link cost shall be included in subtask 2.1.

Task 3: Collect Pavement Distress Ratings
Consultant shall inspect the approximately 210 center lane miles of paved roads and 38 miles of alleys maintained by City. It should be noted that there are a handful of dirt alleys in the city, and some alleys were not captured in the iWorQ system.

Pavement Inspections will be performed in accordance with the distress definitions and descriptions included in the most recent versions of the MTC-published “Pavement Condition Index Distress Identification Manual for Flexible Pavements” (March, 2016) and the “Pavement Condition Index Distress Identification Manual for Rigid Pavements” (March, 2016). The amount and severity of the following distresses will be recorded for flexible pavements:
(1) alligator cracking
(2) block cracking
(3) distortions
(4) longitudinal and transverse cracking
(5) patch and utility cut patch
(6) rutting/depression
(7) raveling
(8) weathering
For each street and alley segment, the inspector will first conduct a windshield survey of the entire segment, and then choose inspection sample locations that are representative of the street/alley segment as a whole.

Inspections will be walked by the inspectors, and inspection sample sizes will be either 50 or 100

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linear feet and between 1,000 to 4,000 square feet. A minimum of at least 10% of the entire street/alley section area shall be inspected by using the MTC 10% method of street inspections.

Consultant will record the severity (low, moderate, high) and amount of each distress type to be collected.

Task 4: Quality Control
Quality Control is an important aspect of pavement management. Pavement Inspections shall be performed in accordance with the distress definitions and descriptions included in the most recent versions of the MTC-published “Pavement Condition Index Distress Identification Manual for Asphalt and Surface Treatment Pavements”. A minimum of 10% of the section area shall be inspected for each street section.

The following protocol will be adhered to for each pavement inspection to help ensure the highest of quality inspections:
• Inspection units will be 100’ or 50’ long by the entire width of the road or alley (If road width is >80’, half of the road width will be inspected, alternating sides). • On road/alley sections that only require one or two inspection units, the entire length of the road will be driven beforehand and the inspector shall choose the inspection site(s) most representative of the entire road section. • On road sections that require two or more inspection units, inspection sites shall be chosen at random (in accordance to MTC pavement inspection standard procedures).

Inspection Spot Checks
Re-inspection spot checks shall be performed on two levels:

1. 5% of the sections inspected will be re-inspected by the inspection team that did the original inspections. Re-inspections will be completed at the end of each week. 5% of each day’s inspections will be re-inspected.

2. Each day’s inspection data shall be reviewed by the project manager. A minimum of 5% of the street segments for each day of inspections shall be re-inspected by the project manager within two weeks of the original inspection date.

For all re-inspections, the Pavement Condition Index (PCI) score for the original inspection will be compared to the PCI score for the re-inspected inspection. The goal is for the PCI scores for each road section to be within the following tolerances:
• 50% of the re-inspections shall be within +/- five (5) PCI points of the original inspections.
• 75% of the re-inspections shall be within +/- ten (10) PCI points of the original inspections.
• No more than 10% of the re-inspections shall be more than fifteen (15) points difference from the original inspections.

If the day’s inspections are not within the above tolerances, then the project manager shall meet with the inspector(s) and review the data in the field. Distress data discrepancies shall be discussed to determine what the source of the PCI differences are. That day’s inspections shall then be discarded, and inspections performed again (to be subject again to the spot check

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procedures). In addition, 10% of the inspections will be spot checked by the project manager for the following week, to assure that any sources of discrepancies have been resolved. If they have been found to be resolved, then the original re-inspection of 5% of the street segments will be resumed.

Prior to the start of work, a quality control and quality assurance plan shall be provided to City for approval.

Task 5: Populating Data
Consultant shall upload the distress information into the StreetSaver database. Consultant shall review all information for errors, and any potential errors shall be corrected, including by reinspection of the street segment, if necessary. Once any errors are resolved, the Pavement Condition Index (PCI) will be calculated in the StreetSaver database. A PCI score from 0-100 (where 100 is a new street, and <10 is a failed street) is determined by StreetSaver based on the amount and severity of each distress found during Pavement Inspections. An Excel spreadsheet shall be provided to the City detailing street segment information (Street/Alley Name, Beginning & Ending Locations, Street Length & Width, Functional Class, Year Constructed, Surface Type) along with the new PCI score and pavement distress types, severities, and quantities.

Task 6: Decision Tree
Consultant shall build a StreetSaver pavement maintenance decision tree. Along with accurate Pavement Condition Inspections, the development of the Maintenance Treatment Decision Tree matrix is the foundation for an accurate budget needs analysis. The decision tree details City’s desired pavement maintenance strategy for streets at various pavement condition categories.

Consultant shall coordinate with City personnel to determine the current pavement maintenance strategies and costs. Consultant shall assist and recommend appropriate maintenance strategies and treatments for City’s street network, leveraging the insights from the StreetSaver database. This recommendation shall take into account industry standard recommended treatments for streets in various conditions as well as current and preferred treatment choices.

To determine treatment unit costs, Consultant shall review any information available from City (bid tabs, engineer's estimates) for treatment unit costs and compare to regional average costs.

Consultant shall recommend maintenance treatment unit costs for each treatment chosen in the Decision Tree.

Task 7: Maintenance & Rehabilitation History Update
Consultant shall assist the City in entering the maintenance and rehabilitation history into the StreetSaver database. That data will be entered into StreetSaver for the appropriate street segments, and this information shall be used to assist in updating the road PCI and year of construction data.

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Task 8: Reporting and Analysis
Consultant shall perform budget analyses utilizing the StreetSaver Online Needs and Scenarios calculation modules. The standard five analysis periods shall be used, though any analysis period from five to thirty years may be included at request of City.

The Needs Analysis identifies the appropriate treatment types and costs required for each street/alley segment based on the M&R decision tree, regardless of budgetary restraints.

Treatments and costs will be broken down by segment and totaled for each year and over the entire analysis period.

The Budget Scenarios analysis then takes a more conservative approach on the Needs Analysis.

Budgetary constraints are applied to the results, effectively answering the question, “Which treatments on which streets/alleys should have the highest priority and when should the repair be performed, taking into consideration budget restraints?” A Scenario report will include the following criteria:
• Unconstrained needs
• Estimated future budget based on current budget and historical trends • Budget amount required to maintain the network PCI at the current level • Budget amount required to increase the overall network PCI by five (5) points over the next five years
• Budget amount required to increase the overall network PCI to 70 and maintain it at that level
All findings shall be summarized in a Budget Options report, which shall include recommendations on how the City can employ better treatment strategies. The report will include the overall pavement condition of the street and alley network. The results of the needs and scenarios analyses, along with the recommended budget scenario and street/alley sections selected for treatment, will also be included.

Task 9: GIS Link
Consultant shall assist the City in exporting GIS data from the City ArcGIS database and create the link on StreetSaver system. Then, using the GIS Toolbox Section Link feature, Consultant shall link each database section to the appropriate street and alley line segment in the GIS centerline.

This will allow for the use of the GIS reporting module within StreetSaver to produce a variety of maps such as, Current PCI Condition, Surface Type, Functional Class, Needs - Sections Selected, Scenarios - Treatments recommended, and others.

Task 10: StreetSaver Training for City Staff
To ensure the ongoing success of this system after the project, Consultant shall provide a one- day, 6-hour training class on how to use the StreetSaver online Pavement Management software.

During this class, Consultant shall provide guidance through the entire program with instruction on how to use all aspects of the StreetSaver software.

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ADDITIONAL SERVICES
The need for additional type services may be required during the term of the contract. The interested Consultant shall submit a fee schedule for key staff which may be directly involved in the works outside of the scope of services above. This fee schedule shall be on an hourly basis.

COST PROPOSAL
The consultant is to prepare the Fee Schedule attached in Exhibit C based on the tasks as listed in the scope of work and the table for additional service, if requested, based on personnel hourly rate.

GENERAL PERSONNEL REQUIREMENTS
The consultant’s personnel shall be capable, competent, and experienced in performing the types of work in the Contract with minimal instruction. Personnel skill levels should match the specific job classifications, as set forth herein or in the consultant’s Cost Proposal and task complexity.

The consultant’s personnel shall be knowledgeable about, and comply with, all applicable Federal, State and Local laws and regulations.

The consultant is required to submit a written request and obtain the City’s Contract Administrator’s prior written approval for any substitutions, additions, alterations, or modifications to the consultant’s originally proposed personnel and project organization, as depicted on the proposed consultant’s organization chart or the consultant’s cost proposals. The substitute personnel shall have the same job classification as set forth herein or in the consultant’s Cost Proposal not exceed the billing rate, and meet or exceed the qualifications and experience level of the previously assigned personnel, at no additional cost to the City.

The consultant’s Contract Administrator shall have a documented minimum five (5) years of demonstrated experience acceptable to City in management and delivery of similar projects for local agencies.

In addition to other specified responsibilities, the consultant’s Project Administrator shall be responsible for all matters related to the consultant’s personnel, subconsultants, and consultant’s and subconsultants’ operations including, but not limited to, the following:
a. Ensuring that deliverables are clearly defined and those criteria are specific, measurable, attainable, realistic and time-bound.
b. Supervising, reviewing, monitoring, training, and directing the consultant’s and subconsultants’ personnel.
c. Assigning qualified personnel to complete the required Task Order work in coordination with the City Contract Administrator.
d. Administering personnel actions for consultant personnel and ensuring appropriate actions taken for subconsultants’ personnel.
e. Maintaining and submitting organized project files for record tracking and auditing. f. Assuring that all applicable safety measures are in place. g. Providing invoices in a timely manner and providing monthly contract expenditures.
h. Reviewing invoices for accuracy and completion before billing to City. i. Managing subconsultants.

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j. Managing overall budget for Contract and provide report to the City Contract Administrator.
k. Ensuring compliance with the revisions in the Contract and all specific Task Order requirements.
l. Knowledge, experience, and familiarity with prevailing wage issues and requirements in the State of California.

DELIVERABLES
As agreed upon by the City and consultant.

SCHEDULE
As agreed upon by the City and consultant.

METHOD OF PAYMENT
Consultant shall be paid based on the Specific Rate of Compensation for this Contract and for the amount as agreed upon by the City and Consultant. Consultant shall submit request for monthly progress payments.

MATERIALS TO BE PROVIDED BY THE CONSULTANT
Unless otherwise specified, the consultant shall provide all materials to complete the required work in accordance with the delivery schedule and cost estimate.

INSURANCE REQUIREMENTS
Before the City executes an Agreement for services, Contractor shall provide a certificate of insurance evidencing the following:
• Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance with limits of at least one million dollars ($1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers.

• General Liability Coverage. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability.

Consultant’s general liability policies shall be primary and non-contributory, and be endorsed using Insurance Services Office form CG 20 10 to provide that City and its officers, officials, employees, and agents shall be additional insureds under such

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policies. For construction contracts, an endorsement providing completed operations to the additional insured, ISO form CG 20 37, is also required.

• Automobile Liability Coverage. Consultant shall provide auto liability coverage for owned, non-owned, and hired autos using ISO Business Auto Coverage form CA 00 01, or the exact equivalent, with a limit of no less than one million dollars ($1,000,000) per accident. If Consultant owns no vehicles, this requirement may be met through a non- owned auto endorsement to the CGL policy.

• Professional Errors and Omissions Insurance. Consultant shall maintain professional liability insurance that insures against professional errors and omissions that may be made in performing the Services to be rendered in connection with this Agreement, in the minimum amount of one million dollars ($1,000,000) per claim and one million dollars ($1,000,000) in the annual aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement, and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. The cost of such insurance shall be included in Consultant's bid.

• Each liability insurance certificate shall state that coverage afforded therein is primary and shall bear endorsements that provide the City be given at least 30 days written notice before any material change or cancellation of such policy, for any reason.

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EXHIBIT A

SUBMITTAL REQUIREMENTS
These guidelines are provided for standardizing the preparation and submission of the proposals by all consultants. The intent of these guidelines is to assist consultants in preparation of their proposals, to simplify the review process, and to help assure consistency in format and content.

Proposal’s shall contain the following information in the order listed:

1. Introductory Letter
The introductory (or transmittal) letter shall be addressed to:

Bob Critchfield P.E., Engineering Manager
1370 N. Benson Avenue
Upland, CA 91786
The letter shall be on consultant letterhead and include the consultant’s contact name, mailing address, telephone number, facsimile number, and email address. The letter will address the consultant’s understanding of the services being requested and any other pertinent information the Consultant believes should be included. All addendums received must be acknowledged in the transmittal letter.

The letter shall be signed by the individual authorized to bind the consultant to the proposal.

2. Consultant Information, Qualifications & Experience
The City will only consider submittals from consultants that demonstrate they have successfully completed comparable projects. These projects must illustrate the quality, type, and past performance of the project team. Submittals shall include a detailed description of a minimum of three (3) projects which include the following information:

1. Contracting agency

2. Contracting agency Project Administrator/Contact Person including name, address and phone

3. Contracting agency contact information

4. Contract amount

5. Date of contract

6. Date of completion

7. Consultant Project Administrator and contact information

3. Organization and Approach

1. Describe the roles and organization of your proposed team for this project. Indicate the composition of subconsultants and number of project staff, facilities available and experience of your team as it relates to this contract. Provide an organizational chart.

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2. Describe your project and management approach.

3. Describe the roles of key individuals on the team. Provide resumes and references for all key team members. Resumes shall show relevant experience, for the Project’s Scope of Work, as well as the length of employment with the proposing Consultant. Key members, especially the Project Administrator, shall have significant demonstrated experience with this type of project, and should be committed to stay with the project for the duration of the project.

4. Demonstrate that the consultant’s Project Administrator and project staff have sufficient availability and/or that consultant has sufficient resources to timely deliver City’s projects.

4. Past Experience on Municipal Projects
Include a description of past municipal projects (minimum of five) in which your firm has been involved, for comparable cities including the following:
• Project Description
• Year of Completion
• Construction Cost (or consultant cost, if not an infrastructure project) • City Contact

5. Conflict of Interest Statement
Throughout the term of the awarded contract, any person, firm or subsidiary thereof who may provide, has provided or is currently providing design engineering services and/or construction engineering services under a contractual relationship with a construction contractor(s) on any City project related to this solicitation.

Similar to the disclosures regarding contractors, all firms are also required to disclose throughout the term of the awarded contract, any design engineering services including claim services, lead project management services and construction engineering services provided to all other clients on any City project listed in this solicitation.

In addition to the disclosures, the consultant shall also provide possible mitigation efforts, if any, to eliminate or avoid any actual or perceived conflicts of interest.

The consultant shall ensure that there is no conflict before providing services to any construction contractor on any of the City’s projects related to this solicitation. The submitted documentation will be used for determining potential conflicts of interest. The City will use this documentation to determine whether the firm may provide the specified services under this contract.

If a consultant discovers a conflict during the execution of an assigned task order, the consultant must immediately notify the City Contract Administrator regarding the conflicts of interest. The City Contract Administrator may terminate the Task Order involving the conflict of interest and City may obtain the conflicted services in any way allowed by law. Failure by the consultant to notify the City Contract Administrator may be grounds for termination of the contract.

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6. Litigation
Indicate if the proposing consultant was involved with any litigation in connection with prior projects. If yes, briefly describe the nature of the litigation and the result.

7. Contract Agreement
Indicate if the proposing consultant has any issues or needed changes to the proposed Professional Services Agreement included as Exhibit D. The consultant shall provide a brief statement affirming that the proposal terms shall remain in effect for ninety (90) days following the date proposal submittals are due.

8. Cost Proposal
The Request for Proposal includes a Fee Schedule which identifies the scope of work through task to be completed. The completed Fee Schedule in Exhibit C shall be submitted with the proposal in its own separately sealed envelope.

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EXHIBIT B

PROPOSAL EVALUATION

EVALUATION PROCESS
All submittals will be evaluated by a City Selection Committee. The Committee may be composed of City staff and other parties that may have expertise or experience in the services described herein. The Committee will review the submittals and will rank the proposers. The evaluation of the proposals shall be within the sole judgment and discretion of the Committee.

All contacts during the evaluation phase shall be through the Contract Administrator/Project Administrator only. Proposers shall neither contact nor lobby evaluators during the evaluation process.

Attempts by Proposer to contact members of the Committee may jeopardize the integrity of the evaluation and selection process and risk possible disqualification of Proposer.

The Committee will evaluate each submittal meeting the qualification requirements set forth in this RFP. Proposers should bear in mind that any submittal that is unrealistic in terms of the technical or schedule commitments may be deemed reflective of an inherent lack of technical competence or indicative of a failure to comprehend the complexity and risk of the City requirements as set forth in this RFP.

The selection process may include oral interviews. The proposer will be notified of the time and place of oral interviews and if any additional information that may be required to be submitted.

In the event that the City receives no more than three proposals, the City may opt to not conduct an oral interview.

EVALUATION CRITERIA
Proposals will be evaluated according to each Evaluation Criteria, and the consultant determined to be the most qualified, in the City’s sole discretion, shall be based on the following 100 point grading system:

1. Quality of Proposal: 15 points

2. Qualification and Experience: 15 points

3. Organization and Approach: 25 points

4. Past experience: 10 points

5. Staff Availability: 15 points

6. Proposal Format and Completeness: 10 points

7. Project Schedule: 10 points

1. Quality of Proposal (15 points)
a. Responses to this RFP must be complete. Responses that do not include the proposal content requirements identified within this RFP and subsequent addenda and do not address each of the items listed below will be considered incomplete.

2. Qualifications & Experience (15 points)
a. Relevant experience, specific qualifications, and technical expertise of the firm and sub-

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consultants to provide pavement survey and PMP as detailed in the scope of work.

3. Organization & Approach (25 points)
a. Describes familiarity of project and demonstrates understanding of work completed to date and project objectives moving forward.
b. Roles and Organization of Proposed Team
i. Proposes adequate and appropriate disciplines of project team. ii. Some or all of team members have previously worked together on similar project(s).
iii. Overall organization of the team is relevant to City needs. c. Project and Management Approach
i. Team is managed by an individual with appropriate experience in similar projects.

This person’s time is appropriately committed to the project. ii. Team successfully addresses Work Planning and Programming efforts. iii. Project team and management approach responds to project issues. Team structure provides adequate capability to perform both volume and quality of needed work within project schedule milestones.
d. Roles of Key Individuals on the Team
i. Proposed team members, as demonstrated by enclosed resumes, have relevant experience for their role in the project.
ii. Key positions required to execute the project team’s responsibilities are appropriately staffed.
e. Working Relationship with City
i. Team and its leaders have experience working in the public sector and knowledge of public sector procurement process.
ii. Team leadership understands the nature of public sector work and its decision- making process.

4. Past Experience (10 points)
a. Consultant demonstrates experience with performance of services within the comparable cities for projects similar in nature to those related to this solicitation. b. Consultant demonstrates successful completion of said projects. c. Consultant is familiar with City standards and procedures.

5. Staff Availability (15 points)
a. Consultant demonstrates project team staff is available and able to promptly respond to requests throughout the contract duration in order to timely deliver projects.

6. Proposal Format and Completeness (10 points)
a. Attractive, professional appearance. (Cover, internal layout, font type and size, and illustrations/photos)
b. Clear, concise, error-free.

7. Project Schedule (10 points)
a. The proposed project schedule will be evaluated on the overall project timeline. The schedule offering the City the short duration with the earliest start will receive the maximum 10 points and the subsequent proposals will receive points based on the

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weighted average as compared to the highest scoring consultant.

8. Presentation by Team (if applicable) (10 points)
a. Team presentation conveying project understanding, communication skills, innovative ideas, critical issues and solutions.

Weighted scores for each Proposal will be assigned utilizing the table below:

No.

Evaluation Criteria Rating
(0-5)

Weight
Score
(Rating *
Weight)
1 Quality of Proposal 15
2 Qualifications & Experience 15
3 Organization & Approach 25
4 Past Experience 10
5 Staff Availability 15
6 Proposal Format & Completeness 10
7 Project Schedule 10
Total: 100
8 Presentation by Team- if applicable 10
Total: 110

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EXHIBIT C

FEE SCHEDULE
Consultant shall provide an itemized schedule of rates and fees which includes all billing amounts and costs for each Task.

Task amounts are considered to be not-to-exceed amounts.

Task 1: Project Management ......................................................................... $ Task 2: Segmentation of Road & Alley Network
& Populating New StreetSaver Database ...................................................... $ Task 2.1: StreetSaver Licensing, Implementation, and GIS Link… ............. $ Task 3: Collect Pavement Distress Ratings. .................................................. $ Task 4: Quality Control ................................................................................. $ Task 5: Populating Data ................................................................................ $ Task 6: Decision Tree .................................................................................... $ Task 7: Maintenance & Rehabilitation History Update ................................ $ Task 8: Reporting and Analysis .................................................................... $ Task 9: GIS Link ........................................................................................... $ Task 10: StreetSaver Training for City Staff ................................................ $ Consultant Rate Schedule:

The rate for any authorized additional services is shown below:

Position Title Hourly Rate

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EXHIBIT D

SAMPLE CONTRACT AGREEMENT

CITY OF UPLAND

PROFESSIONAL SERVICES AGREEMENT

This Agreement is made and entered into as of ________________, 20____ by and between the City of Upland, a public agency organized and operating under the laws of the State of California with its principal place of business at 460 N. Euclid Avenue, Upland, CA 91786 (“City”), and [***INSERT NAME***], a [***INSERT TYPE OF ENTITY - CORPORATION, PARTNERSHIP, SOLE PROPRIETORSHIP OR OTHER LEGAL ENTITY***] with its principal place of business at [***INSERT ADDRESS***] (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

Pavement Survey and Pavement Management Program
(hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Services.

Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” [Alternatively, Scope of Services can be included here and all subsequent exhibits renumbered accordingly.]

2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” [Alternatively, Schedule of Charges may be included here and all subsequent exhibits renumbered accordingly.] b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $ [Insert amount of compensation]. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed. Payments to Consultant for work performed will be made on a monthly billing basis.

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c. The City Manager may approve Additional Work, as further defined in Section 3, up to ten percent (10%) of the amount of the Agreement or fifty thousand dollars ($50,000.00). In no event shall the total sum of the agreement (original compensation amount and Additional Work) exceed fifty thousand dollars ($50,000.00). Any additional work in excess of this amount shall be approved by the City Council.

3. Additional Work.

If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner:
a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.

4. Maintenance of Records.

Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.

5. [Insert Term or Time of Performance].
[If engaging the Consultant for a particular term, use the following provision] The term of this Agreement shall be from [Insert start date] to [Insert end date], unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). [If the City has specific milestones or timelines for performance, please input those requirements in the “Activity Schedule” attached as Exhibit C, otherwise delete Exhibit C.] The Notice to Proceed shall set forth the date of commencement of work.
[If engaging the Consultant to perform a discrete task with a specified deadline, use the following provision]
Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”).

Consultant shall complete the services required hereunder within [Insert number of calendar days for performance of the services – if more detail is required attach “Activity Schedule” as Exhibit C, otherwise delete Exhibit C.] The Notice to Proceed shall set forth the date of commencement of work.

6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing party.

For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather

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conditions; floods; earthquakes; fire; epidemics; pandemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.

7. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions.

9. Assignment and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

10. Independent Contractor
Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided.
a. PERS Eligibility Indemnification
In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its

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employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section.
a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
(7) Contractual Liability with respect to this Agreement (8) Property Damage
(9) Independent Contractors Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or

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provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status.
(iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.
c. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.

(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein.

Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.

d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend.
e. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

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Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage

Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Professional Liability $1,000,000 per claim and aggregate (errors and omissions)

(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein.

Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. g. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non- payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is

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replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.

Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. i. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided