Agenda packet — Victorville City Council, August 20, 2024 (part 1 of 5)

City Council Chambers
14343 Civic Drive
Victorville, CA
www.victorvilleca.gov
VICTORVILLE CITY COUNCIL
VICTORVILLE LIBRARY BOARD OF TRUSTEES
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
THE CITY AS HOUSING ASSETS SUCCESSOR
JOINT POWERS FINANCING AUTHORITY
VICTORVILLE WATER DISTRICT
Regular Meeting Agenda
Tuesday, August 20, 2024
6:00 p.m. Regular Session
The City Council holds its business meetings in public in accordance with the requirements of the Ralph M. Brown Act, its established policies and procedures, and its adopted parliamentary authority. The Council strives to carry out its meetings in an atmosphere of professionalism with full participation by members of the body and the public. As such, the Presiding Officer is empowered to govern City Council Meetings to foster the efficient and fair administration of City business and reserves the right to enforce (or cause to be enforced) the Meeting Rules of Conduct and Decorum as set forth in Chapter 5 of the City Council Policy and Procedures Manual.

The City Council welcomes and encourages public participation and invites the community to attend in person. City Council Meetings will be held in-person at City Hall in Council Chambers. Remote viewing of our Council Meetings is available through YouTube, but public comments must be given in-person at the meeting or in advance as noted below.

Public Comments: Members of the public may submit comments electronically to [email protected] by 4 p.m. the day of the meeting to be distributed to City Council. Participants are invited to address the Council on agendized and non-agendized topics at the beginning of the meeting. Public comments will be no longer than three (3) minutes per community member. Should a speaker conclude their comments prior to the expiration of three (3) minutes, the speaker waives the right to speak for any remaining amount of time. For further information about how to address the Council, please refer to the City's website at victorvilleca.gov/government/agendas.

LEVINE ACT DISCLOSURE: Pursuant to the Levine Act (Govt. Code section 84308), any party to a permit, license, contract, or other entitlement before the Victorville City Council is required to disclose on the record any campaign contribution, including aggregated contributions, of more than $250 made by the party or the party's agents within the preceding 12 months to any City official. Participants and agents are requested to make this disclosure as well. The disclosure must include the name of the party, participant, or agent, and any other person making the contribution; the name of the recipient, the amount of the contribution, and the date the contribution was made.

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 at (760) 955-5188 no later than 72 hours prior to the meeting.
1 6:00 p.m. Regular Session

Call to Order

Roll Call

Invocation: Pastor Carlo Mendoza from Sunrise Church

Pledge of Allegiance: Police Captain Randy German

Special Presentations

Bond Measure Presentation from Carl Coles, Superintendent, Victor Valley Union High School District

Presentation to Homelessness Solutions Task Force Members

2024 Fireworks Enforcement Program

City Clerk Presents Agenda/Revisions to Agenda

Conflict of Interest Declarations
Any items on this agenda that might be a conflict of interest to any Council Members/Board Members should be identified at this time.

Introduction to Public Comments

Public Comments

PUBLIC HEARING(S)

1. Eucalyptus Street Infrastructure Restoration Project - Approve Notice of Exemption and Award of a Construction Contract

Recommendation:

That the Honorable City Council:
(1) Open and conduct a public hearing, receiving testimony regarding the proposed Capital Improvement Project (CIP) and CEQA Notice of Exemption; (2) Close the Public Hearing;
(3) Approve the CEQA Notice of Exemption and authorize staff to file the notice with the Office of Planning and Research and the County Clerk; and (4) Award a Construction Contract to Kirtley Construction, Inc. dba TK Construction, in the amount of $716,989.50 for the Eucalyptus Street Infrastructure Restoration Project.
2 2. Citywide Pavement Preservation and Maintenance Project - Approve Notice of Exemption and Award of Construction Contract

Recommendation:

That the Honorable City Council:
(1) Open and conduct a public hearing, receive testimony regarding the proposed Capital Improvement Project (CIP) and CEQA Notice of Exemption; (2) Close the Public Hearing;
(3) Approve the CEQA Notice of Exemption and authorize staff to file the notice with the Office of Planning and Research and the County Clerk; and (4) Award a Construction Contract to Pavement Coatings Co., in the amount of $1,600,000.00 for the Citywide Pavement Preservation and Maintenance Project, CC24-125.

3. Proposed Updated Electric Service Rules, Regulations and Rate Schedules

Recommendation:

The Honorable City Council:
(1) Conduct a public hearing, receive testimony for or against adoption of proposed Resolution No. 24-076, close the public hearing; and
(2) Adopt Resolution No. 24-076 amending and revising the Electric Service Rules, Regulations and Rate Schedules (tariffs) for electric services provided to customers of the Victorville Municipal Utility Services (”VMUS”) pursuant to Chapter 10.10 of the Victorville Municipal Code; and
(3) Approve Appendix B to the Rules, Regulations and Rate Schedules, and Adopt the Net Energy Metering (“NEM”) 1.0 and Eligible Renewable Generator (“ERG”) Tariffs.

CONSENT CALENDAR

4. Reduction of Securities for Tract Map No. 15396

Recommendation:
That the Honorable City Council approve the full release of the Landscape Maintenance Assessment District (LMAD) Faithful Performance Securities for Tract Map No. 15396.

5. Commercial Demand Schedule No. 1

Recommendation:

That the City Council and Board of Directors ratify Commercial Demand Schedule No. 1 in the amount of $7,070,294.39, covering Electronic Fund Transfers No. 340027 through 340139 and Warrant No. 795997 through 796120 for 06/27/2024 through 07/10/2024, per the adopted budget for Fiscal Year 2023-2024 for the period covering July 1, 2023 through June 30, 2024 and Fiscal Year 2024-2025 for the period covering July 1, 2024 through June 30, 2025.

6. Payroll Demand Schedule No. 11B

Recommendation:

That the City Council and Board of Directors ratify Payroll Demand Schedule No. 3 11B for Payroll Period May 10, 2024, through May 24, 2024, in the amount of $2,217,617.26 covering Check Nos. 34042 through 34075, including Vendor checks. Please note employee Check No. 34052 has a live Check and an EFT Advice. Also included are Advice Nos. 314200 through 314750, per adopted budget for Fiscal Year 2023-2024 (period covering July 1, 2023, through June 30, 2024).

7. Reduction of Securities for Tract Map No. 16774

Recommendation:

That the Honorable City Council:
(1) Approve the full release of the Monumentation Faithful Performance Security for Tract Map No. 16774;
(2) Approve an additional 20% release of the Street Faithful Performance Security for Tract Map No. 16774; and
(3) Accept the completed Street Improvements.

8. Substitution of Trustee and Deed of Reconveyance, and Termination and Release of Covenants, Conditions and Restrictions for Residential Rehabilitation Program case number 22-11-03 (15654 Condor Rd., Victorville, CA 92394); as well as acceptance and reallocation of associated Program Income Funds

Recommendation:

That City Council take the following actions regarding Residential Rehabilitation Program Case No. 22-11-03:
(1) Approve the Substitution of Trustee and Deed of Reconveyance; (2)
Confirm the required Termination and Release of the original Covenants, Conditions and Restrictions (CC&Rs);
(3) Authorize the execution of the Substitution of Trustee and Deed of Reconveyance as well as the Termination and Release of the original CC&Rs by the Deputy City Manager;
(4) Accept the payoff of the loan receivable to the Residential Rehabilitation Program Income Account; and
(5) Adopt Resolution No. 24-074, amending the annual budget for fiscal year 2024- 2025 reallocating the subject $13,119.92 Residential Rehabilitation Program – Program Income funds to the Residential Rehabilitation Program.

9. Commercial Demand Schedule No. 2

Recommendation:

That the City Council and Board of Directors ratify Commercial Demand Schedule No. 2 in the amount of $12,668,156.82, covering Electronic Fund Transfers No. 340141 through 340379 and Warrant No. 796122 through 796301 for 07/11/2024 through 07/24/2024, per the adopted budget for Fiscal Year 2023-2024 for the period covering July 1, 2023 through June 30, 2024 and Fiscal Year 2024-2025 for the period covering July 1, 2024 through June 30, 2025.

10. Victorville Water District Operating Results Report for the Third and Fourth Quarter of Fiscal Year 2024

Recommendation:

That the Honorable Board of Directors review and file.
4 11. Reduction of Securities for Tract Map No. 16828

Recommendation:
That the Honorable City Council approve the full release of the Monumentation Faithful Performance Security for Tract Map No. 16828.

12. Reduction of Securities for Tract Map No. 15295

Recommendation:
That the Honorable City Council:
(1) Approve an 80% reduction of the Landscape Maintenance Assessment District (LMAD) Public Improvement Faithful Performance Security for Tract Map No. 15295; and
(2) Accept the completed Landscape Maintenance Assessment District (LMAD) Public Improvements.

13. Reduction of Securities for Tract Map No. 15896-1

Recommendation:

That the Honorable City Council:
(1) Approve an additional 20% release of the Drainage, Sewer, Street and Water Faithful Performance Securities for Tract Map No. 15896-1; and (2) Accept the completed Drainage, Sewer, Street and Water Public Improvements.

14. Reduction of Securities for Tract Map No. 13816

Recommendation:

That the Honorable City Council:
(1) Approve an additional 20% release of the Landscape Maintenance Assessment District (LMAD) Faithful Performance Security for Tract Map No. 13816; and (2) Accept the completed Landscape Maintenance Assessment District (LMAD) Public Improvements.

15. Code Compliance Department FY23/24 Fourth Quarter Code Compliance and Animal Control Division Activity Reports

Recommendation:

That the honorable City Council review and file.

16. Release of Subdivision Improvement Agreement and Faithful Performance Security for Tract Map No. 15598

Recommendation:

That the Honorable City Council approve the:
(1) Full release of the Street Faithful Performance Securities for Tract Map No. 15598; and
(2) The release of the Subdivision Improvement Agreement for Tract Map No. 15598.
5 17. Update the list of authorized Officers to deposit or withdraw monies in the Local Agency Investment Fund (LAIF) accounts

Recommendation:

That Your Honorable City Council, also sitting as the Governing Board for the Southern California Logistics Airport Authority, Successor Agency to the Victorville Redevelopment Agency, and Victorville Water District adopt the attached Resolution Nos. 24-080, VWD 24-009, SCLAA 24-004, and R-SA 24-002 authorizing said officers to deposit an / or withdraw monies in the Local Agency Investment Fund (LAIF) accounts.

18. Waste Tire Enforcement Grant - Budget Amendment

Recommendation:

That the Honorable City Council adopt Resolution No. 24-085, approving a budget amendment for Fiscal Year 2024/2025 to appropriate $66,614.00 in both revenue and expenditures related to the Waste Tire Enforcement Grant as awarded by the California Department of Resources Recycling and Recovery (CalRecycle).

19. Commercial Demand Schedule No. 3

Recommendation:

That the City Council and Board of Directors ratify Commercial Demand Schedule No. 3 in the amount of $10,509,601.70, covering Electronic Fund Transfers No. 340380 through 340536 and Warrant No. 796302 through 796468 for 07/25/2024 through 08/07/2024 and Wire Transfers dated 07/30/2024 through 08/05/2024, per the adopted budget for Fiscal Year 2023-2024 for the period covering July 1, 2023 through June 30, 2024 and Fiscal Year 2024-2025 for the period covering July 1, 2024 through June 30, 2025.

20. Fire Department Newsletter

Recommendation:

No action is necessary – informational only

21. Building Department Activity Report

Recommendation:

That the Honorable City Council review and file.

22. CalRecycle Used Oil Payment Program Grant Cycle OPP 14 Acceptance and Budget Amendment

Recommendation:

That the Honorable City Council adopt Resolution No. 24-081 authorizing acceptance of the CalRecycle Used Oil Payment Program Cycle 14 Grant and amending the City of Victorville FY 2023-24 budget.
6 23. CalRecycle City/County Payment Program CRV Recycling (Cycle FY 2023-24) Grant Acceptance and City Budget Amendment

Recommendation:

That the Honorable City Council Adopt Resolution No. 24-082 authorizing acceptance of the CalRecycle City/County Payment Program Grant (Cycle FY 2023-24) and amending the City of Victorville FY 2023-24 budget.

24. CalRecycle Waste Tire Amnesty Grant (Cycle FY 2023-24) Acceptance and City of Victorville FY 2024-25 Budget Amendment

Recommendation:

That the Honorable City Council Adopt Resolution No. 24-083 to authorize acceptance of the CalRecycle Waste Tire Amnesty Grant (Cycle FY 2023-24) and amend the City of Victorville Fiscal Year 2024-25 budget to reflect $29,800 in additional revenue and expenditures related to the Waste Tire Amnesty Grant.

25. Minutes of the May 21, June 4, and June 18, 2024, Regular City Council Meetings and June 6, 2024, Special City Council Meeting

Recommendation:

That the Honorable City Council approve the minutes of the Regular City Council Meetings held on May 21, June 4, and June 18, 2024, and the Special City Council Meeting held on June 6, 2024.

26. Substitution of Trustee and Deed of Reconveyance, and Termination and Release of Covenants, Conditions and Restrictions for Mortgage Assistance Program case number 09-10-04 (13221 Petaluma Rd., Victorville, CA 92392); as well as acceptance and reallocation of associated Program Income funds

Recommendation:

That City Council take the following actions regarding Mortgage Assistance Program Case No. 09-10-04:
(1) Approve the Substitution of Trustee and Deed of Reconveyance; (2)
Confirm the requested Termination and Release of the original Covenants, Conditions and Restrictions (CC&Rs);
(3) Authorize the execution of Substitution of Trustee and Deed of Reconveyance as well as the Termination and Release of the original CC&Rs by the Deputy City Manager;
(4)
Accept the payoff of the loan receivable to the HOME Program Income Account; (5) Adopt Resolution No. 24-041, amending the annual budget for fiscal year 2024- 2025 reallocating the subject $76,739.03 to HOME Program Income funds to the Senior Home Repair Program.

27. 2024 Conflict of Interest Code

Recommendation:

That the City Council, sitting as the code reviewing body for the City of Victorville, the Southern California Logistics Airport Authority, the Victorville Library Board of Trustees, the Victorville Water District, the Successor Agency to the Victorville Redevelopment Agency, and the Victorville Joint Powers Financing Authority, adopt Resolution No. 24-073 amending the City's Conflict of Interest Code to update 7 position classification titles, disclosure categories, and filing requirements for all agencies.

28. CalRecycle SB 1383 Local Assistance Grant (Cycle FY 2022-23) Acceptance and Budget Amendment

Recommendation:

That the Honorable City Council Adopt Resolution No. 24-084 authorizing acceptance of the CalRecycle SB 1383 Local Assistance Grant (Cycle FY 2022-23) and amending the City of Victorville FY 2023-24 budget.

WRITTEN COMMUNICATIONS

29. Presentation on City's Pavement Management of City Roads

Recommendation:

Staff recommends that the Honorable City Council receive and file this report.

30. Measure I Five Year Capital Improvement Plan

Recommendation:

That the Honorable City Council adopt Resolution No. 24-077, approving the Measure I Five Year Capital Improvement Plan for Fiscal Years 2024/2025 through 2028/2029.

31. Purchase of a Vactor 2115-18 Combo Sewer Cleaner

Recommendation:

That the Honorable City Council award Haaker Equipment Company, as the authorized distributor, the piggyback purchase of a Vactor 2115-18 Combo Sewer Cleaner for an amount not to exceed $744,676.50, under Sourcewell Contract #101221-VTR.

32. Purchase of a John Deere Skip Loader

Recommendation:

That the Honorable City Council award RDO Equipment Co., as the authorized distributor, the piggyback purchase of a John Deere Skip Loader for an amount not to exceed $172,963.75 including delivery/shipping, under Sourcewell Contract #011723-JDC.

33. Purchase of Three Gurneys and Related Equipment for the Transport Capable Squads

Recommendation:
That the Honorable City Council:
(1) Determine Stryker as a Sole Source;
(2) Approve the purchase of three gurneys and equipment for the transport capable squads in the amount of $181,529.28; and
(3) Authorize the City Manager, or his designee, to execute all purchasing documentation.
8 34. Purchase of 94 Midmark above floor animal kennels from MWI Animal Health for the City of Victorville Animal Care and Adoption Center planned for 16648 E Street

Recommendation:

That the Honorable City Council approve the purchase of 94 Midmark above floor animal kennels from MWI Animal Health in the amount not to exceed $358,480.72.

35. Respite Care Grant Agreement with Kaiser Foundation Hospitals to provide the City with funding for advancing the medical respite (recuperative care) ecosystem by improving service quality at the Wellness Center in the areas of client management, medical equipment, and transportation

Recommendation:

That the Honorable City Council adopt Resolution Nos. 24-078 and 24-079, thereby:
(1) Accepting the Strengthening the Recuperative Care Ecosystem in the Inland Region Grant with the Kaiser Foundation Hospitals providing the City with $200,000.00 for advancing the medical respite (recuperative care) ecosystem; (2) Authorizing the City Manager to finalize all documents needed to execute the grant contract;
(3) Authorizing the City Manager to make any necessary amendments to the contract as deemed necessary; and
(4) Amending the annual budget for fiscal year 2024-2025 to reflect an additional appropriation in the amount of $200,000.00.

36. Tree Trimming and Maintenance Services Contract, Project CC24-091

Recommendation:

That the Honorable City Council approve the award of a Tree Trimming and Maintenance Services Contract for Project CC24-091 to West Coast Arborists, Inc. in the amount not to exceed $134,475.00.

37. Award of Professional Services Provider Agreement with Sierra Golf Management, Inc. for Professional Management Services for the Green Tree Golf Course

Recommendation:

That the Honorable City Council award a Professional Services Provider Agreement with Sierra Golf Management, Inc. in the amount not to exceed $2,948,951 for professional management services, including operations and maintenance, of the Green Tree Golf Course for five years, commencing on September 1, 2024, through August 31, 2029 (Project JM24-089).

38. Amendment No. 2 to the Consultant/Professional Services Provider Agreement with LPA, INC. for the Design of a New Police Station and Civic Plaza

Recommendation:

That the Honorable City Council approve Amendment No. 2 to the Consultant/Professional Services Provider Agreement with LPA, INC. (LPA) in an amount not-to-exceed $1,318,419.00 for completion of Phase I and II of the Victorville Police Department Conceptual Design Study for a new Police Station and Civic Plaza.
9 39. Consideration of Adjustments to Employment Agreement for the City Manager which may include a discussion on a possible salary adjustment

Recommendation:

At the City Council meeting of July 16, 2024, the City Council reviewed the terms of the Employment Agreement for City Manager, Keith C. Metzler. In particular, Section 7(A) which states, “The Council shall review and evaluate the performance of the employee in June of each year hereafter for salary consideration.” As a result of that review, the City Council asked to agendize certain revisions to the Employment Agreement and, to the extent the Council deems appropriate, a discussion on a possible salary adjustment for the City Manager. However, any action is at the discretion of the City Council.

40. City Manager Reports

41. Discussion and Possible Action Regarding Upcoming Agenda Items

42. Reports from Council Members

Adjournment

10 Item Number: 1
City Council / Board of Directors
Public Hearing(s)
Meeting of: August 20, 2024
Submitted By:

Fredy Bonilla, City Engineer

Subject:

Eucalyptus Street Infrastructure Restoration Project - Approve Notice of Exemption and Award of a Construction Contract
Recommendation:

Fiscal Impact:

The recommended action will result in a fiscal impact of $766,989.50, which includes $50,000.00 for associated construction support and materials testing from an on-call geotechnical engineering consultant. This project will be funded by the following funds:

Storm Drain, Fund 202; Measure I, Fund 250 and; Water, Fund 410. Please refer to the table below that shows the account numbers, associated available budget, and the total budget.

Account No. Available Budget
(Fund 202) 2025060-52440 $41,562.31
(Fund 250) 2504500-55325-61038 $390,318.78
(Fund 410) 4104500-55360-61038 $345,000.00
Total: $776,881.09
11 3
7 2
6 Strategic Plan Goal:

The Eucalyptus Street Infrastructure Project (Project) aligns with “Goal E: Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026. The work will restore vital infrastructure damaged by Tropical Storm Hilary to its original condition, which will mitigate potential hazards to the public and the environment.

Background:

The City of Victorville is located within an arid, desert climate and is exposed to a variety of seasonal fluctuations. The City is located east of the San Bernardino and San Gabriel Mountains, sheltering it from precipitation clouds that are produced over the coastal cities to the west. On average, there are approximately 28 days in the year where measurable rainfall is produced. The average monthly cumulative rainfall amounts in the last 30 years reported by the National Oceanic and Atmospheric Administration (NOAA) falls between

0.04 to 1.27 inches, less than what historically would be considered a 2-year theoretical storm event of approximately 2.5 inches for a 30-day period.

Hydrology, the study of water, is a science utilized by Civil Engineering in the design of storm drainage systems. Theoretical design storm events are calculated utilizing information from NOAA to size storm drainage systems based upon the amount of potential storm water flows that will impact an area. These systems consider the amount of rainfall in inches that falls in a 1-hour period for a 2, 10, 25, and 100-year storm. A 100- year event is an event that occurs once every 100 years theoretically, making it the worst- case scenario. Storm drain systems utilizing pipes are typically designed to carry storm water flows for a 10-year storm event.

On Saturday, August 19, 2023, it was forecasted that an uncharacteristic Category 2 hurricane, designated as Hurricane Hilary, was expected to hit Baja, California and bring heavy rain and high winds to Southern California. California Governor Gavin Newsom proclaimed a state of emergency in response. The storm made landfall in the City of Victorville on Saturday, August 19, 2023, and sustained through Sunday, August 20, 2023. According to NOAA, the storm generated a cumulative rainfall amount of 2.6 inches over the span of two days, slightly less than the equivalent of a theoretical 10-year design storm event for a 2-day period of 2.8 inches. Some of the existing infrastructure throughout the City, especially in the older parts was not designed adequately to capture and convey stormwater runoff of this magnitude. During the storm event, several streets and parks were closed due to flooding.

City staff performed an investigation of City infrastructure once the storm passed to assess the condition and identify any hazards. On Monday, August 21, 2023, Public Works staff identified significant damage that occurred during the storm event to a storm drain located on Eucalyptus Street. The storm drain collected stormwater runoff from the street and diverted it to the Oro Grande Wash, which is identified as a water of the United States and is federally regulated. The amount of stormwater runoff generated by the storm breached the curb surrounding the storm drain inlet, and quickly began to erode the soil around the buried storm drain pipeline within the bank of the wash. The erosion 12 3
7 2
6 undermined the storm drain and caused a section of it to fail. Please refer to Attachment D for pictures of the damage to the storm drain. Public Works staff also identified an underground municipal water pipeline near the storm drain pipeline that was exposed, causing the line to sag and leak at the exposed joints.

Public Works staff immediately identified the damage as a public safety concern and notified the Lahontan Regional Water Quality Control Board (LRWQCB), the United States Army Corps of Engineers (USACE), and the California Department of Fish and Wildlife (CDFW). These agencies regulate and monitor activity within waters of the United States. An on-call emergency response contractor, High Desert Underground, was dispatched to remove the failed storm drain pipeline and backfill the area. The damaged municipal water pipeline segment was isolated by closing valves located on either side of the segment, deeming it inactive until repairs could be made. No residents have been negatively impacted as this segment of pipeline is part of a looped system, allowing it to be turned off without negative short-term impacts.

On Tuesday, August 22, 2023, per Fish and Game Code §1610, an Emergency Notification was submitted through the CDFW Environmental Permit Information Management System (EPIMS) for the emergency work performed by High Desert Underground. The emergency work was intended to be a temporary intervention to protect the public, ensure the environment remained free of hazards, and to prevent further damage to the infrastructure.

Discussion:

The damaged storm drain system and municipal water pipeline pose a substantial risk to the public. Without restoring the infrastructure to its pre-storm condition, the upcoming rainy season has a high potential of further eroding the bank of the wash away, threatening an adjacent residential development and more damage to Eucalyptus Street.

If the other municipal waterline feeding the area becomes compromised, requiring it to be shut down, the residents will be without water from a water source until one of the pipelines is repaired. The limits of work for the Project are between Cloverly Avenue and Cobalt Road on Eucalyptus Street, please refer to Attachment A for a map showing the Project Location. In addition to the restoration repairs, the Project scope includes a new headwall design and additional storm drain inlets to prevent erosion from compromising the integrity of the infrastructure in future storm events.

Construction projects that may result in a significant and adverse change in the environment require an environmental review per the California Environmental Quality Act (CEQA). It is a routine requirement to comply with CEQA before construction starts on a CIP. The City must review all Public Works projects to determine how they will comply with CEQA requirements before making a discretionary recommendation of approval of a construction project prior to award of a Construction Contract.

The California Code of Regulations Title 14, Division 6, Chapter 3 provides guidelines for the implementation of CEQA. Article 5 of such guidelines identifies certain types of projects which have been determined not to have a significant effect on the environment 13 3
7 2
6 and which are exempt from the provisions of CEQA. City staff evaluated the scope of this Project and determined it is Statutorily Exempt under Article 18, Section 15269 (b)(c):

Emergency Projects.

Pursuant to Article 5, Section 15061, after determining that a Project is exempt from CEQA, and once the Project is approved by its governing body, the Notice of Exemption will be recorded to initiate a 35-day statute of limitations, for any appeals submitted from a party feeling a statutory exemption is being improperly used, to limit the possibility of legal challenge. The Notice of Exemption to be recorded is included as Attachment B to this report.

This Project was bid using formal bid procedures in accordance with Victorville Municipal Code Section 2.28.210 and the California Public Contract Code. Advertising of the Project started on June 10, 2024. On July 11, 2024, two (2) bids were received and publicly read aloud. The bid results are shown below.

Company Base Bid Amount
Kirtley Construction dba TK Construction $716,989.50
High Desert Underground $979,296.50
It should be noted that High Desert Underground submitted a total bid amount of $978,996.50, which had an addition error, being $300.00 too low. This total bid amount was corrected by staff after the bids were submitted and opened, in accordance with the rules stipulated in the “Bid Schedule Instructions”.

After a careful review and tabulation of the bid proposals, staff determined that the lowest responsive, responsible bidder is Kirtley Construction dba TK Construction. The Engineer’s estimate for the project was $650,000.00 to $700,000.00. The current low bid came in at 2% above the estimate. The price increase for construction is attributed to higher costs for materials, equipment, and labor.

The Engineering Department will be responsible for the management of the construction for this Project. Construction is likely to start in September 2024. It is estimated that the duration of the Project will be approximately thirty (30) Working Days. The total duration of the Project will depend on weather conditions and construction material availability.

Staff recommends that the City Council approve the Notice of Exemption and award a Construction Contract (Attachment C) in an amount of $716,989.50 to Kirtley Construction dba TK Construction for the Eucalyptus Street Infrastructure Restoration Project.

Staff remains available for any questions Council may have.

Attachments: A. Location Map
B. Notice of Exemption
C. Construction Contract
D. Pictures
14 ATTACHMENT A
15 CITY OF VICTORVILLE

ENGINEERING DEPARTMENT
14343 Civic Drive, Victorville, Ca. 92392 (760) 955-5158

MARIPOSA RD

NOT TO SCALE

PROJECT VICINITY MAP

APPLE VALLEY

HESPERIA

ADELANTO
HIGHWAY 18

PALMDALE RD

MOJAVE DRIVE

SENECA ROAD

AMETHYST RD

ADELANTO CITY LIMITS

AIR EXPRESSWAY

ADELANTO ROAD

CITY LIMITS

PHANTOMCOBALT RD

VICTORVILLE CITY LIMITS
SHAY RD.

NEVADA AVE.

VVWRA

CITY HALL
18 7TH STREET
LAPAZ

CITY OF VICTORVILLE

NATIONAL TRAILS
DRIVE

MOJAVE RIVER

MOJAVE RIVER
15 U.P.R.R.

COUNTY OF SAN BERNARDINO

VICTORVILLE

AMARGOSA ROAD

EL EVADO ROAD

LOGISTICS AIRPORT (SCLA)

SOUTHERN CALIFORNIA

PHANTOM
EAST

PHANTOM
WEST

CITY LIMITS

RIDGCREST DR

BEAR VALLEY RD

LA MESA RD NISQUALLI ROAD
395
395
18 VILLAGE

HOOK BLVD

EUCALYPTUS ST

TOPAZ RD

BALSAM AVE

SEVENTH AVE
11TH AVE

THIRD AVE

GREEN TREE BLVD

HESPERIA RD
15 YATES RDDOS PALMAS RD
COUNTY
COUNTY

LA MESA RD
BEAR

MARIPOSA RD

AMARGOSA RD

HESPERIA CITY LIMITS

CITY LIMITS

EUCALYPTUS ST FROM

CLOVERLY AVE TO COBALT RD

INFRASTRUCTURE RESTORATION

PROJECT

LOCATION

XXX PROJECT LOCATION

CITY BOUNDARY

STREETS

MOJAVE RIVER

RAILROAD TRACKS
LEGEND
EUREKA

ORO GRANDE WASH

SENECA RD

ARROWHEAD DR

HOPLAND ST
COUNTY

VALLEY RD

TOPAZ RD

COBALT RD
16 ATTACHMENT B

17 Notice of Exemption

To: County Clerk From: Engineering Department
County of San Bernardino City of Victorville
385 North Arrowhead Avenue, Second Floor 14343 Civic Drive San Bernardino, CA 92415-0130 Victorville, CA 92392

Project Title: Eucalyptus St. Infrastructure Restoration Activity Location - Specific:Eucalyptus St between Cloverly Ave and Cobalt Rd

Activity Location - City: Victorville Activity Location - County:San Bernardino

Description of Activity: The City desires to perform emergency repair of an existing curb inlet catch basin, water service pipeline, and storm drain pipeline located on Eucalyptus St between Cloverly Ave and Cobalt Rd.

Name of Public Agency Approving Activity: City of Victorville

Name of Person or Agency Carrying Out Activity: City of Victorville

Exemption Status:

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number :

Statutory Exemptions. State code number:

Reasons why project is exempt: The project will restore storm drain elements and water service pipeline that was damaged during storm events associated with Tropical Storm Hilary, which was declared a State of Emergency by California Governor Gavin Newsom.

Lead Agency Contact Person: Fredy Bonilla, City Engineer

Area Code/Telephone Extension: (760) 955-5170

If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project:

Yes No
Signature: Date: Title:

Signed by Lead Agency
Signed by Applicant

Authority cited: Sections 21083 and 2110, Public Resources Code. Date Received for filling at OPR:

Reference: Section 21108, 21152 and 21152.1, Public Resources Code. 18 ATTACHMENT C

19 1 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

CONSTRUCTION CONTRACT BY AND BETWEEN

THE CITY OF VICTORVILLE AND
KIRTLEY CONSTRUCTION, INC. DBA

TK CONSTRUCTION
FOR

EUCALYPTUS STREET INFRASTRUCTURE RESTORATION,
CITY PROJECT NO. CC24-117

THIS CONSTRUCTION CONTRACT (the “Contract”) dated ______ for reference purposes only is made and entered into by and between the City of Victorville, a municipal corporation and charter city located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and TR, a Kirtley Construction, Inc. dba TK Construction, a California corporation, hereinafter referred to as the “Contractor”. The City and Contractor are sometimes hereinafter referred to as a “Party” and collectively referred to as the “Parties.”
RECITALS:

WHEREAS, the City requires construction of Eucalyptus Street Infrastructure Restoration, as more fully described in the solicitation documents issued by the City for Project No. CC24-117 (the “Project”); and

WHEREAS, on June 10, 2024, the City issued a Notice Inviting Bids and solicitation documents to prospective bidders for the Project. In response, Contractor submitted a Bid which the City determined to be the lowest responsive and responsible bid; and

WHEREAS, Contractor is a duly organized a California corporation in good standing in the State of California, and represents that it has the background, knowledge, experience, expertise and resources to perform the Work and other obligations encompassed by this Contract; and

WHEREAS, at its meeting held on August 20, 2024, the Victorville City Council duly accepted Contractor’s Bid for the Project and directed that a written agreement for the Project be entered into with Contractor; and

WHEREAS, in light of the facts set forth above and the certifications made by Contractor as part of its Bid, the City desires to retain Contractor to perform the construction Work for the Project as set forth in this Contract and in the Contract Documents, as hereinafter described.

NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECI TALS
The Recitals set forth above are true and correct and are hereby incorporated into this Contract by this reference, as though set forth herein.
20 2 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

Section 2. CONTRACT DOCUMENTS; ORDER OF PRECEDENCE
a. Contract Documents. The Contract Documents consist of the following documents, all of which are either attached hereto as exhibits or are incorporated herein by this reference. Said Contact Documents are complementary; what is called for in one is binding as if called for in all, and together constitute Contractor’s performance obligations:

(1) This Contract and its attached Exhibits, subject to the limitations in Sections 9 and 20 with respect to Exhibit “A” (Contractor’s submitted Bid Proposal as accepted by the City); (2) Change Orders issued and approved by the City;
(3) Regulatory Permits from other agencies specified in Appendices A and B of the bid package or as may otherwise be required by law;
(4) Bid Addenda issued by the City;
(5) Notice Inviting Bids and Instructions to Bidders;
(6) Special Provisions
(7) Greenbook 2021 Edition
(8) Appendices
(9) Plans
(10) Bid Forms and attachment thereto;
(11) Faithful Performance Bond;
(12) Payment Bond.

b. Interpretation. In the event of any conflict between any of the Contract Documents, the document highest in the order of precedence (from highest to lowest), as set forth in Subsection a. above shall control.

c. Definitions. Unless specifically defined or assigned a meaning in this Contract, or the context clearly indicates otherwise, capitalized terms herein shall have the meaning assigned to them in the “Definitions” section of the Instructions to Bidders document.

Section 3. C
ONTRACTOR’S OBLIGATIONS

Contractor will perform all of the Work required for the Project, as specified in the Contract Documents.

Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, supplies, tools, equipment, transportation, onsite facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to diligently prosecute and complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents, and to the satisfaction of Fredy A. Bonilla, City Engineer, or his/her designee (hereinafter the “Project Manager”).

Section 4. CONT
RACT PRICE; PAYMENT AND RETENTION

a. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor Seven Hundred Sixteen Thousand Nine Hundred Eighty- nine and 50/100 Dollars, ($716,989.50) (the “Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with Contractor’s Bid Proposal (attached hereto as Exhibit “A”) subject to the provisions of this Contract and the Contract Documents.

21 3 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

b. Procedures relating to payment and retention are set forth in the Special Provisions.

Section 5. CONT RACT TIME; NOTICE TO PROCEED

a. Contract Time. The Work under this Agreement shall be diligently prosecuted to completion before expiration of Forty (40) WORKING DAYS, commencing within Fifteen (15) calendar days after the issuance of the Notice to Proceed. The City will not issue a Notice to Proceed to the Contractor until this Contract, including bonds and insurance documents, have been executed and/or approved by the City.

b. Notice to Proceed. No work, service, material, or equipment shall be performed or furnished under this Contract unless and until a Notice to Proceed has been given to the Contractor by the City. Contractor shall commence Work pursuant to the Contract Documents and as directed by the City in the Notice to Proceed, and diligently execute the same to completion within the Contract Time.

Section 6. DISPUTE RESOLUTION AND CLAIMS PROCEDURES
a. Public Contract Code Section 9204. For purposes of any Public Works Claims filed by a Contractor or Subcontractor (as those terms are defined in Public Contract Code Section 9204) under this Contract, the claims procedures in Public Contract Code Section 9204 (“ Section 9204”) and the provisions of this Section shall apply. Public Contract Code Section 9204 is set forth in full in Section 2- 10 of the Special Provisions.

(1) I
n the event of a Section 9204 Public Works Claim, Contractor may not stop working pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work during the Section 9204 process.

(2) Any Public Works Claims not resolved by the Section 9204 procedures (and/or any tort claims) shall be subject to Section 2.24.020 of the Victorville Municipal Code (“VMC”) and the provisions of the Government Claims Act (Government Code section 810 et seq.).

b. For disputes or claims that do not constitute Public Works Claims, City and Contractor agree to comply with the following process:

(1) Each Party shall designate a senior management or executive level representative to negotiate any dispute.

(2) The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority.

(3) If the issue remains unresolved after ten (10) days of good faith negotiations, the Parties shall attempt to resolve the disagreement by negotiation between the legal counsel for each Party.

If the above process fails, the Parties may mutually agree to engage in non-binding mediation or arbitration in which the Parties equally share the costs of any mediator or arbitrator, or may proceed with suit or other remedies, subject to the provisions of subparagraph (5) of this Subsection and other applicable provisions and laws.

(4) The alternative dispute resolution process set forth herein is a material condition to Contract and must be exhausted as an administrative remedy prior to either Party initiating legal action.

22 4 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

(5) Compliance with VMC Section 2.24.020 and the provisions of the Government Claims Act (Government Code section 810 et seq.) is also required prior to initiating suit again the City.

Section 7. TE RMINATION OF AGREEMENT FOR CONVENIENCE

a. The City may, by providing thirty (30) days' advance written notice to Contractor, terminate this Agreement in whole or in part, whenever the City shall determine that such termination is in the best interests of the City, or when it becomes impracticable or impossible to proceed, or because of conditions or events beyond the control of the City. Any such termination shall be affected by delivery to Contractor of a Notice of Termination for Convenience, specifying the extent t o which performance of Work under this Agreement is terminated, and the date upon which such termination becomes effective. Upon such termination, the obligations of the Contractor for portions of the Work already performed shall continue.

b. Upon receipt of a Notice of Termination for Convenience, the Contractor shall, unless the notice directs otherwise, do the following:

(1) Immediately discontinue the Work to the extent specified in the notice. (2) Place no further orders or subcontracts for materials, equipment, services, or facilities, except as may be necessary to complete such portion(s) of the Work that are not to be discontinued. (3) Promptly cancel, on the most favorable terms reasonably possible, all subcontracts to the extent that they relate to the performance of the discontinued portion of the Work. (4) Thereafter do only such Work as may be necessary to preserve and protect the Work already in progress and to protect materials, plants, and equipment on the Project site or in transit thereto.

c. Upon such termination, the Contractor will be paid without duplication for:

(1) Work completed in accordance with the Contract Documents prior to the effective date of the Notice of Termination for Convenience;
(2) Reasonable costs incurred in settlement of t erminated contracts with Subcontractors, suppliers and others; and
(3) Reasonable expenses directly attributable to termination.

The Contractor shall submit a final termination settlement proposal to the City no later than ninety (90) days from the effective date of termination, unless extended in writing by the City, upon written request by the Contractor. If the Contractor fails to submit a proposal, the City may determine the amount, if any, due the Contractor as a result of the termination. The City will pay the Contractor the amount it determines is reasonable. If the Contractor disagrees with the amount determined by the City as being reasonable, the Contractor shall provide notice to the City within thirty (30) Days of receipt of payment. Any amount due shall be subject to the dispute resolution provisions set forth in the Contract Documents.

d. Contractor shall include provisions in all of its subcontracts, purchase orders, and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor under this Section 7.

Section 8. TERMINATION FOR CONTRACTOR’S DEFAULT

a. Default. The City may terminate this Contract for Contractor’s default as set forth in this Section. The City will consider the Contractor in default of this Contract if, prior to the City’s acceptance of the Work, the Contractor:
23 5 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

(1) becomes insolvent, assigns its assets for the benefit of its creditors, is unable to pay its debts as they become due, or is otherwise financially unable to complete the Work; (2) abandons the Work by failing to report to the Work site and diligently prosecute the Work to completion;
(3) disregards written instructions from the City or materially violates provisions of the Contract Documents;
(4) fails to prosecute the Work according to the schedule approved by the Engineer, (5) disregards laws or regulations of any public body having jurisdiction, or (6) commits continuous or repeated violations of regulatory or statutory safety requirements.

Notices, and other written communications regarding default between the Contractor, the City, and the Surety shall be transmitted in accordance with Section 21 of this Contract. b. Notice and Opportunity to Cure. The City will issue a written notice to cure the default to the Contractor and its Surety. The Contractor shall commence satisfactory corrective actions within five (5) Working Days after receipt. If the Contractor fails to commence satisfactory corrective action within five (5) Working Days after receipt of the notice to cure, or to diligently continue satisfactory and timely correction of the default thereafter, the City will consider the Contractor in default of the Contract and:
(1) will terminate the Contractor’s right to perform under the Contract by issuing a written notice o
f termination for default to the Contractor and its Surety; (2) may use any materials, equipment, tools or other facilities furnished by the Contractor to secure and maintain the Work site, and
(3) may furnish labor, equipment, and materials the City deems necessary to se cure and maintain the Job Site;

c. Remedies Cumulative. The provisions of this Section shall be in addition to all other legal rights and remedies available to the City. Termination of this Contract will not relieve the Surety of its obligation for any just claims arising out of the Work performed.

Section 9. PREVA

ILING WAGE

a. Compliance with State Prevailing Wage Requirements. Pursuant to Labor Code Section 1773, the City has obtained the prevailing rate of per diem wages and the prevailing wage rate for holiday and overtime work applicable in San Bernardino County, California from the Director of the Department of Industrial Relations (DIR) for each craft, classification, or type of worker needed to perform the Work required under this Contract. A copy of these prevailing wage rates are on file at the City’s Finance Department/Purchasing Division and shall be made available for review to any interested party on request. In addition, a copy of the prevailing rate of per diem wages may be obtained via the internet at:
http://www.dir.ca.gov/DLSR/PWD. Contractor and all Subcontractors shall pay not less than said specified State of California rates to all workers employed by them in the execution of the Work contemplated by this Contract, including workers performing Work covered by under Labor Code Sections 1720 and 1720.9. Contractor shall be responsible for using the correct and current prevailing wage rates. Contractor shall be solely responsible for using the correct wage decision or determination and perform accordingly. An error on the part of any awarding body does not relieve the Contractor from the responsibility for payment of the correct prevailing wage.

b. Conflict. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the terms of this Section 9 and the provisions of Exhibit “A”, the terms of this Section 9 shall control and nothing herein shall be considered as an acceptance of the terms of Contractor’s Submitted Bid Proposal conflicting with the requirements of this Section 9. 24 6 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

c. Payroll Records. Contractor must comply with the provisions of Labor Code sections 1776 and 1812 and all implementing regulations, including without limitation, those set forth in Title 8 of the California Code of Regulations, Section 16000 et seq. (hereinafter the “ Regulations”), which are fully incorporated by this reference, including requirements for electronic submission of payroll records to the DIR.

(1) Contractor and Subcontractor Obligations. Contractor and each Subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:

(a) The i
nformation contained in the payroll record is true and correct; and

(b) Contractor or the Subcontractor has complied with the requirements of Labor Code §§ 1771, 1811, and 1815 for any Work performed by its employees on the Project.

(2) Certified R
ecord. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to City, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.

(3) Enforcement.

Upon notice of noncompliance with Labor Code § 1776, Contractor or Subcontractor has ten days in which to comply with the requirements of this section. If Contractor or Subcontractor fails to do so within the ten-day period, Contractor or Subcontractor will forfeit a penalty of $100.00 per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Contractor.

d. Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code section 1777.5, which is fully incorporated by reference.

e. Notices. Pursuant to Labor Code section 1771.4, Contractor is required to post all Job Site notices, including prevailing wage rates and other notices as required by regulation.

f. Other Labor Requirements. Contractor has the responsibility for and shall comply with all other requirements of California Labor Code Section 1720 et seq., the Regulations, and all other applicable State labor laws. Contractor further acknowledges and agrees that it will be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Contractor will require the same of all its Subcontractors.

g. Statutory Penalties. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced as follows:

the Director of the DIR for such work or craft in which such worker is employed for any public work done under this Contract by it or by any Subcontractor under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.

(2) The Contractor or Subcontractor shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Contract by the respective contractor or Subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this subsection. In awarding any contract for public work, Contractor must forfeit to City Twenty-five Dollars ($25.00) per day for each worker who works in excess of the minimum working hours when Contractor does not pay overtime. In accordance with the provisions of Labor Code Sections 1810 et seq., eight (8) hours is the legal working day.

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

i. DIR Registration. Pursuant to Labor Code sections 1725.5 and 1771.1, the Contractor and its Subcontractors must be registered with the DIR prior to the execution of a contract to perform public works. By entering into this Contract, Contractor represents that it is aware of the registration requirement and is currently registered with the DIR. Contractor shall maintain a current registration for the duration of the Project. Contractor shall further include the requirements of Labor Code sections 1725.5 and 1771.1 in any subcontract and ensure that all Subcontractors are registered at the time this Contract is entered into and maintain registration for the duration of the Project.

Section 10. L

IQUIDATED DAMAGES

If Contractor fails to complete the Work within the Contract Time, City will assess liquidated damages in t
he amount of Three Thousand Six Hundred and 00/100 Dollars ($3,600.00) per day for each day of unexcused delay in completion, and such liquidated damages may be deducted from City’s payments due or to become due to Contractor under this Contract.

Section 11. C

OMPLIANCE WITH LAWS
Contractor shall comply with all Laws applicable to the performance of the Work required by the Contract Documents, including any rule, regulation, or bylaw governing the conduct or performance of Contractor, its employees, officers, board members, agents, independent contractors, and Subcontractors. Unless otherwise specified in the Contract Documents, all required permits and licenses, including a City business license, shall be held or obtained by the Contractor at its sole expense and prior to commencing any Work hereunder.

Section 12. WO RKERS’ COMPENSATION CERTIFICATION

Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”

26 8 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

Section 13. INSURANCE
a. Contractor shall procure and maintain at its own expense at all times during the period covered by this Contract (and through the one- year guarantee period following the date of City’s acceptance of the Project) the following policies of insurance:

(1) Commercial General Liability (“CGL”) Insurance: Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2 ,000,000 per occurrence resulting from the acts or omissions of the Contractor or its officers, employees, servants, volunteers, and agents, and independent contractors. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

(2) Commercial Vehicle Liability Insurance: Covering person injury and property damage, of not less than Two Million Dollars ($ 2,000,000) combined single limit, covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the Work required by this Contract.

(3) Workers’ Compensation Insurance: Providing coverage as required by the California State Workers’ Compensation Law and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease. If any class of employees employed by Contractor is not protected by the California State Workers’ Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City.

(4) Course of Construction, Builders’ Risk, or Inland Marine Insurance for Work on Site: Issued on an occurrence basis , for all-risk or “all perils” coverage on a 100% completed value basis on the insurable portion of the Project for the benefit of City, that offers “Installation” coverage for all materials, supplies, equipment, and property obtained by, or for Contractor , which is to become part of the Work while such equipment and property is stored at the jobsite, at temporary locations, or while in transit to the Project from such temporary locations. Contractor shall also be responsible for insuring its owned, leased/rented, or borrowed equipment.

(a) City of Victorville shall be named as a Loss Payee.

(b) If the Project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery, and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery, or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the Project/Work site.

(5) Pollution Liability: Contractors Pollution Liability and/or Asbestos Pollution Liability and/or Errors & Omissions applicable to the work being performed, with a limit no less than $1,000,000 per claim or occurrence and $1,000,000 aggregate per policy period of one year.

b. Additional Insurance Requirements. With respect to the policies of insurance set forth above, compliance with the following is also required:
27 9 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

(1) Additional Insureds. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation coverage, shall bear an endorsement whereby it is provided that, the City and its elected or appointed officials, officers, employees, servants, volunteers, agents and independent contractors, including, without limitation, the City Attorney, are named as Additional Insureds. The coverage shall contain no special limitations on the scope of protection afforded to the City of Victorville, its officers, officials, employees, agents, or volunteers.

(2) Waiver of Subrogation Rights. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City and its elected or appointed officers, officials, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

(3) Sufficiency of Insurers. Contractor must secure all poli cies of insurance required by this Contract from a good and responsible company or companies authorized to do insurance business in the State of California, with an AM Best’s rating of not less than A;VII.

(4) Proof of Insurance Coverage Required Prior to Comm
encement of Work. Within ten (10)
days of the date Contractor receives this Contract from the City for execution (following award of same by the City Council), certificates of insurance evidencing the policies of insurance, coverages, and endorsements required by this Contract and satisfactory to and approved by the City shall be furnished by Contractor to the City’s Risk Manager. In no event shall any Work on the Project be permitted to commence until adequate proof of insurance and endorsements have been so furnished.

(5) Special Provisions. Any additional insurance requirements set forth in Section 5-4 of the
Special Provisions shall also apply to this Contract.

(6) Other Required Endorsements.

(a) The policies shall be endorsed to provide that in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of cancellati on for non- payment, ten (10) days advance written notice shall be given.

(b) The CGL and vehicle liability policies shall be endorsed as Primary and Non- contributory.

c. Subcontractors. C ontractor must ensure that each Subcontractor is required to obtain and maintain the same insurance coverage required under this Section 13 with respect to its performance of Work on the Project, including those requirements related to the Additional Insureds and waiver of subrogation. Contractor must confirm that each Subcontractor has complied with these insurance requirements before the Subcontractor is permitted to begin Work on the Project. Upon request by the City, Contractor must provide certificates and endorsements submitted by each Subcontractor to prove compliance with this requirement. The insurance requirements for Subcontractors do not replace or limit the Contractor’s insurance obligations.

Section 14. R
eserved.

28 10 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

Section 15. TIME OF THE ESSENCE

Time is of the essence in the performance of this Contract.

Section 16. IN DEMNIFICATION
a. Notwithstanding the limits of any insurance and to the fullest extent permitted by law, Contractor shall indemnify the City, its elected or appointed officials, officers, agents, volunteers and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (hereinafter " Claims or Liabilities") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the performance of the Work, operations, or activities of Contractor, its agents, employees, Subcontractors, or invitees on the Project, or arising or alleged to arise from the acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Contract, but excluding such Claims or Liabilities or portion of such Claims or Liabilities arising or alleged to arise from the active negligence, sole negligence, or willful misconduct of the City, its elected or appointed officials, officers, agents, volunteers, or employees, and in connection therewith:
(1) Contractor will defend any action or actions filed in connection with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;
(2) Contractor will promptly pay any judgment rendered against the City, its elected or appointed officials, officers, agents, volunteers, or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', employees', Subcontractors' or invitees') performance of or failure to perform such Work, operations or activities hereunder; and Contractor agrees to save and hold the City, its elected or appointed officials, officers, agents, volunteers and employees harmless therefrom; (3) In the event the City, its elected or appointed officials, officers, agents, volunteers, or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the performance of or failure to perform the Work, operation, or activities of Contractor hereunder, Contractor shall pay to the City, its elected or appointed officials, officers, agents ,volunteers, or employees, any and all costs and expenses incurred by the City, its elected or appointed officers, officials, agents, volunteers, or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City;

(4) Contractor's duty to defend, indemnify, and hold harmless as set out in this Section shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of, or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to, the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances Control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter- Cologne Water Quality Control Act, as any of those statutes may be amended from time to time.

b. City will timely notify Contractor upon receipt of any third- party claim relating to the Contract, as required by Public Contract Code § 9201. The Contractor's indemnification and defense 29 11 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

obligations pursuant to this Section shall survive the termination of this Contract. Contractor shall require the same indemnification from all Subcontractors.

Section 17. REP ORTS; BOOKS AND RECORDS; AUDIT
a. Upon request by the Project Manager Contractor shall prepare and submit reports concerning Contractor's performance of the Work required by this Contract. b. Contractor shall keep such books and records as shall be necessary to perform the work required by this Contract and enable the Project Manager to evaluate the cost and the performance of such Work.
c. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles. The Project Manager shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.
d. Records and supporting documents pertaining to the use of funds paid to Contractor hereunder shall be retained by Contractor and made available to the Project Manager for purposes of performing an audit for a period of five (5) years from the date of termination of this Contract.

Section 18. M

ODIFICATIONS AND AMENDMENTS
This Contract may be modified or amended only by written Change Orders as specified in the Contract Documents or a written instrument signed by both Parties.

Section 19. ENT IRE AGREEMENT
a. This Contract supersedes any and all prior or contemporaneous agreements, either oral or written, between the City and Contractor with respect to the subject matter of this Contract. b. The Contract Documents contain all of the covenants and agreements between the Parties with respect to the subject matter herein, and each Party acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Contract and the Contract Documents incorporated herein. c. No agreement, statement, or promise with respect to the subject matter of the Contract Documents, which is not contained in the Contract Documents, or in a valid modification or amendment to the Contract Documents, shall be valid or binding on either Party.

Section 20. AMBIGUITIES

This Contract is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them. Except as expre ssly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Contract. Notwithstanding the foregoing, the Parties agree that Exhibit “A” is attached heret o for reference purposes, and to the extent there are any ambiguities, inconsistencies, or conflicts between the terms of this Contract and Exhibit “A”, the terms of this Contract shall control and nothing set forth in Exhibit “A” shall be deemed to supersede any of the provisions of this Contract.

30 12 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

Section 21. NOTICES

a. Any notice to be provided pursuant to this Contract shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the Parties as follows:

To City: Fredy A. Bonilla, City Engineer
Engineering Department City of Victorville
14343 Civic Drive
Victorville, CA 92392

To Contractor: Troy Kirtley, President
Kirtley Construction, Inc. dba TK Construction
740 W. 40th Street
San Bernardino, CA 92407

To Surety: _______________________________
_______________________________
_______________________________
_______________________________
_______________________________

b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

c. Either Party, or the surety, may change its address by giving notice in writing to all other parties listed above, and thereafter notices shall be addressed and transmitted to such new address.

Section 22. NO N-LIABILITY OF CITY OFFICERS AND EMPLOYEES No officer or employee of the City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount, which may become due to Contractor or to its successor(s), or for any breach of any obligation of the terms of this Contract.

Section 23. REVIEW BY ATTORNEYS
Each Party hereto has had its attorneys review this Contract and all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Contract based on such consultation.

Section 24. BO NDS
Concurrently with the execution of this Contract by the Contractor, and before the commencement of any Work, Contractor shall furnish to the City a Faithful Performance Bond, and a Payment (Labor and Materials Bond) each in an amount equal to one hundred percent (100%) of the Contract Price written on the forms included in the Contract Documents. These bonds must remain in force until the later of (1) the expiration of the one-year guarantee period; or (2) on one year from the date of completion of the corrective Work. Such bonds must be issued by a responsible corporate Surety, licensed and authorized to issue such bonds in the State of California with an AM Best’s Rating of at least A: VII.

31 13 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

Section 25. CARE OF WORK
Contractor must adopt reasonable methods during the life of the Contract to furnish continuous protection to the Work, and the equipment, materials, papers, documents, plans, studies, and other components to prevent losses or damages, and will be responsible for all damages, to persons or property, until acceptance of the Work by the City, except those losses or damages as may be caused by the City’s own negligence. The performance of the Work by Contractor or the payment of money by the City shall not relieve Contractor from any obligation to correct any incomplete, inaccurate, or defective Work (including the obligation to remedy any defective Work or materials during the one- year guarantee period after the City’s acceptance thereof) at no further cost to the City.

Section 26. CAPTIONS AND HEADINGS
The captions and headings contained in this Contract are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 27. O WNERSHIP OF DOCUMENTS
No portion of the Contract Documents may be used for any purpose other than construction of the Project, without prior written consent from City. Contractor is deemed to have conveyed the copyright in any designs, drawings, specifications, Shop Drawings, or other documents (in paper or electronic form) developed by Contractor for the Project, and City will retain all rights to such works, including the right to possession.

Section 28. SU

CCESSORS, HEIRS, AND ASSIGNS
Except as otherwise expressly provided herein, this Contract shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties. This Contract may not be assigned or transferred by Contractor without the concurrence of the surety and express written consent of the City.

Section 29. G ENDER; PLURAL
In this Contract, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 30. SEVERA BILITY
If any one or more of the sentences, clauses, paragraphs, or sections contained herein is declared invalid, void, or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Contract and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

Section 31. GOVE RNING LAW
The validity of this Contract and any of its terms or provisions, as well as the rights and duties of the Parties under this Contract, shall be construed pursuant to and in accordance with California law.

Section 32. CUMUL ATIVE REMEDIES
Except with respect to rights and remedies expressly declared to be exclusive in this Contract, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other Party. 32 14 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

Section 33. VENUE
All proceedings involving disputes over the terms, provisions, covenants, or conditions contained in this Contract and all proceedings involving any enforcement action related to this Contract shall be initiated and conducted in the applicable court or forum in San Bernardino County, California.

Section 34. EFFECTIVENESS OF CONTRACT
This Contract shall not be binding upon the City until signed by the authorized representative(s) of Contractor, approved by the City’s Risk Manager, and executed by the authorized City personnel or the Mayor.

Section 35. R EPRESENTATIONS OF PARTIES AND PERSONS EXECUTING CONTRACT

Each of the Parties to this Contract hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Contract a binding obligation of each of the Parties hereto. The persons executing this Contract warrant that they are duly authorized to execute this Contract on behalf of and bind the Parties each purports to represent.

Section 36. WA IVER

No delay or omission in the exercise of any right or remedy by a non- defaulting Party on any default under this Contract shall impair such right or remedy or be construed as a waiver. A Party's consent to or approval of any act by the other Party requiring the Party's consent or approval shall not be deemed to waive or render unnecessary the other Party's consent to or approval of any subsequent act. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Contract.

Section 37. INDE

PENDENT CONTRACTOR STATUS

Contractor is an independent contractor. All persons working for or under the direction of the Contractor are the Contractor's employees, agents, or subcontractors, and they shall not be deemed agents, servants, or employees of the City.

Section 38. COUNTERPARTS
This Contract may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Contract.

Section 39. PROVISIONS REQUIRED BY LAW DEEMED INSERTED

Each and every provision of law and clause required by Law to be inserted in this Contract shall be deemed to be inserted herein and the Contract shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, then upon application of either Party the Contract shall forthwith be physically amended to make such insertion or correction.

Section 40. AT TORNEY'S FEES

If either Party commences an action against the other Party, either legal, administrative, or otherwise, arising out of or in connection with this Contract, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action. 33 15 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

Section 41. CARB COMPLIANCE OBLIGATIONS

a. CARB Regulations. Contractor is aware of the California Air Resources Board (“CARB”) regulations mandating various emission reduction requirements. Contractor agrees to comply with all applicable CARB regulations (Title 13, Division 3 of the California Code of Regulations (“CCR”)) prior to commencing any work hereunder and maintain compliance throughout the duration of this Contract.

(1) Vehicles with a Gross Vehicle Weight Rating (GVWR) greater than 8,500 lbs. and light - duty package delivery vehicles operated in California may be subject to CARB’s Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets (ACF) webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets.

(2) Effective January 1, 2024, CARB implemented amendments to the In -Use Off- Road Diesel-Fueled Fleets Regulation (13 CCR Section 2449 et seq., the “Off -Road Regulation”) which apply broadly to all self-propelled off road diesel vehicles 25 horsepower or greater and other forms of equipment used in California (including any vehicles or equipment that is rented or leased). The Off-Road Regulation is available at: https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2022/off- roaddiesel/appa-1.pdf.

b. Contractor must comply with all CARB regulations and requirements, including without limitation, all applicable sections of the Off-Road Regulation (as codified in 13 CCR Section 2449 et seq.) throughout the term of the Project and this Contract. Contractor shall be solely liable for all costs associated with complying with the regulations, as well as for any and all penalties, fines, damages, or costs associated with violations or failures to comply with the regulations. Contractor shall defend, indemnify, and hold harmless the City of Victorville, its elected and appointed officials, officers, agents, and employees from and against any and all claims, liabilities, costs, penalties, interest or other damages arising out of Contractor’s failure or alleged failure to comply with CARB regulations.

(END OF THIS PAGE – SIGNATURE PAGE FOLLOWS)

34 16 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be executed as of the dates written below.

THE CITY OF VICTORVILLE KIRTLEY CONSTRUCTION, INC. DBA

TK CONSTRUCTION

By: __ By:

Elizabeth Becerra, Mayor Troy Kirtley, President

Dated: Dat ed:

ATTEST

By: _ _
Jennifer Thompson, City Clerk

Dated:______________________________

By:

Sandra Bostick, Risk Manager

Dated:______________________________

APPROVED AS TO STANDARD FORM

By:

Andre de Bortnowsky, City Attorney

Dated:

35 17 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117

EXHIBIT A

CONTRACTOR'S BID PROPOSAL

See Attachment

36 EXHIBIT A
18/Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117 37 EXHIBIT A
19/Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117 38 EXHIBIT A
20/Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117 39 EXHIBIT A
21/Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project CC24-117 40 ATTACHMENT D
41 42
Item Number: 2
City Council / Board of Directors
Public Hearing(s)
Meeting of: August 20, 2024
Submitted By:

Fredy Bonilla, City Engineer

Subject:

Citywide Pavement Preservation and Maintenance Project - Approve Notice of Exemption and Award of Construction Contract
Recommendation:

Fiscal Impact:

This action will result in a fiscal impact of $1,600,000.00. An additional appropriation is not required. There are sufficient funds in the budget to cover the planned expenses. This project will be funded by Measure I – Fund 250 for Project Number 60144, Measure P – Fund 105 for Project Number 80090 and State Grant – Fund 270 for Project Number 80080. The City Council approved FY 23/24 and 24/25 Budgets which included these capital improvement projects. In the approved budgets, this project was identified as the “Golden Triangle Slurry Seal Project”. Due to the expansion of the work to other street segments in other areas located across and throughout the City, the name of the advertised project was changed from the “Golden Triangle Slurry Seal Project” to “Citywide Pavement Preservation and Maintenance Project.” This change was made to more accurately describe the type of work and area of coverage to be performed by the contractor. The project account codes, remaining project available budget, and the total budget are shown in the table below, Table A.
43 3
7 2
9 Table A
Account Code Available
Budget
2504500-55315-60144 $1,598,457.22
1056000-52410-80090 $52,800.00
2707501C-55070-80080 $49,500.00
Total $1,700,757.22
The funds for project number 80090 are budgeted for two parks, Mojave Vista Park and Avalon Park. The remaining balance in this project account will be used for Avalon Park.

Strategic Plan Goal:

This project aligns with “Goal E: Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026. The proposed preservation treatments to be applied to the public streets and parking lots will help prolong their useful life an additional 5 to 7 years.

Background:

Utilizing the City’s Pavement Management System, Engineering reviewed the pavement conditions of the City’s roadway network and selected roads to receive a rehabilitation or preservation treatment to prolong the life of the roads. This project scope includes the application of treatments in a specific area known as the “Golden Triangle” south of Bear Valley Road and west of I-15. Additionally, other road segments scattered throughout the City are included. The locations listed below were included in the Base Bid scope of work.

Please refer to Attachment A, a Vicinity Map showing the extent of the work and numbered locations corresponding with the numbers below.

1. The “Golden Triangle Area” consisting of multiple streets in one (1) area bound by Bear Valley Rd, Amythest Rd, Sycamore St, & Cobalt Rd and one (1) area bound by Sycamore St, Cobalt Rd, Eucalyptus St, and Mesa Linda St.

2. Amargosa Rd from Cracker Barrel Restaurant to Eucalyptus St.

3. The parking lot for Eva Dell Park located on 1st St.

4. A section of the Mojave Vista Park parking lot located on Burwood Ave.

7. Amargosa Rd from Kimberly Dr to Hook Blvd.

8. Hughes Rd from Rodeo Dr to Hesperia Rd.

10. A segment of 11th St from Verde St to D St (CA Highway 18).

11. A segment of Verde St from Hesperia Rd to 11th St.

12. A segment of La Paz Dr from Lorene Dr to Seneca Rd.

15. A segment of B St from 7th St to 8th St.

16. The next segment of B St from 6th St to 7th St.

17. The final segment of B St from 5th St to 6th St.

The City’s current pavement preservation strategy consists of the application of a slurry seal or double layer micro-surfacing treatment along with crack filling, crack sealing, and patching (pothole) repairs. This strategy does not replace the existing asphalt pavement but prolongs the life of the existing pavement by sealing it. Sealing the pavement from water infiltration helps protect the subgrade from moisture. Allowing water into the soil will 44 3
7 2
9 result in movement, allowing the soil to become deformed from constant traffic. The result of this soil movement over time is the formation of ruts and potholes in the asphalt pavement.

The reason slurry seal and double layer micro-surfacing are utilized as pavement preservation strategies is due to the low cost to help prolong the life of the existing asphalt pavement by keeping water out of the soil underneath the road. These treatments are relatively inexpensive methods compared to asphalt grind and overlays (pavement rehabilitation work) or full depth pavement reconstruction. The current application cost associated with a slurry seal treatment is approximately $0.80/SF compared to an approximate cost of $8 to $11/SF to reconstruct a road. The current application cost associated for a micro-surfacing treatment is approximately $1.25/SF compared to an approximate cost of $4.50/SF for a 2-inch grind (removal of top 2 inches) of the existing asphalt and overlay of 2-inches of new asphalt pavement. With a limited budget to maintain and reconstruct the City’s road network, preservation treatments help stop ruts and potholes from forming and defer the need and much higher cost for full road reconstruction.

A slurry seal treatment consists of sand, small crushed aggregate (rocks), asphalt emulsion, and water forming a semi-viscous solution spread over the road pavement with a spreader truck or rakes. The treatment cures after a few hours which allows the roads to be open to traffic quicker than other traditional asphalt treatment methods. Slurry seal treatments do not smooth out a bumpy road but fill in the cracks and seals the existing asphalt pavement to help keep out water.

Similar to a slurry seal, the double layer micro-surfacing treatment consists of two layers of a micro-surfacing mixture. The mixture consists of sand, small crushed aggregate, micro-surfacing emulsion, water, and alkali glass fiber additives. With the inclusion of the glass fibers, the layer of material applied to existing pavement acts similar to a band-aid that can stretch and contract when a tire passes over it. This treatment helps to increase the lifespan of an existing road longer than what a slurry seal can. Micro-surfacing treatment is rapid setting, similar to slurry seal, which leads to a short duration of road closures. Micro-surfacing will help smooth out the road a little bit unlike a slurry seal treatment, but not to the extent a grind and cap or full reconstruction will do.

When deciding between what preservation strategy to use on a specific road segment, City staff reviews the Pavement Condition Index (PCI) from the City’s Pavement Management Report. Road segments with a PCI of 67 or higher are candidates for slurry seal and road segments with a PCI lower than 64 receive a double-layer micro-surfacing.

The Bid Schedule of the bid proposal was composed of two parts, the Base Bid and Additive Work. The Base Bid was the established scope of work to determine who the lowest and responsible bidder would be to recommend the award of a construction contract to the City Council. The bid proposal included another section in the Bid Schedule titled “Schedule C - Additive Work”. This additional work was not included in the base bid 45 3
7 2
9 but required of the contractor to submit unit prices for if the project budget allowed for any additional segments of roadway listed therein to be included in the contract scope of work.

In anticipation of the proposed work, the City’s Public Works Department has been removing and replacing deficient areas of asphalt pavement and completing maintenance on the abovementioned street segments.

Discussion:

It is a routine requirement to comply with the California Environmental Quality Act (CEQA) before construction starts on a public works project. A Notice of Exemption, Attachment B, describes the project activities and states that the project is categorically exempt under CEQA Section 15301(c) for the replacement and minor alteration of existing public infrastructure. The repair of asphalt pavement, crack sealing, slurry sealing, micro- surfacing and striping are within this category.

The project was bid using formal bid procedures in accordance with Victorville Municipal Code §2.28.210 and the California Public Contract Code. On July 30, 2024, four (4) bids were received and publicly read aloud. The bidders and base bid results are shown below:

Company Base Bid Amount
Pavement Coatings Co. $1,344,770.06
Roy Allen Slurry Seal Inc. $1,507,222.12
American Asphalt South Inc. $1,561,137.54
VSS International Inc. $2,522,000.00
After a careful review and tabulation of the bid proposals, staff determined that the lowest responsive, responsible bidder was Pavement Coatings Co. The latest Engineer’s Estimate for the project Base Bid work before advertisement was $1,611,415.00. The low bid is 16.5 percent below the Engineer’s Estimate.

Following the review of the bid documents and tabulation of the bid proposal from Pavement Coatings Co., it was determined the total bid amount for the application of preservation treatments to the road surfaces included in the Base Bid Amount totaled $1,317,982.00. With an approved budget of $1.6 million minus minor expenditures for project administration, $280,475.22 of Measure I funds remain available in the budget for additional road segment treatments. Engineering Staff is recommending additional work from the Additive Work Bid Schedule to be included in the contract. This additional work includes the following locations numbered and shown in Attachment A:

6. Seneca Rd from Carob St to Arlette Dr.

9. Sycamore St from Cobalt Rd to new asphalt pavement located east of Chisholm Trail.

13. Luna Rd from Cobalt Rd to Fox Run Rd.

14. Luna Rd from Chimayo St to Topaz Rd.

18. Sunset Rd from a section of new pavement at Beachcomber Ln to the lip of an existing cross gutter to the east.
46 3
7 2
9 Engineering Staff contacted the Contractor and inquired if they could complete the additional road segments listed above. Not all the work in Schedule C included with the bid can be completed with the available budget. Per Attachment C, in a letter from the Contractor, they have agreed to complete all the additional road segments except for one per the bid proposal unit prices. Furthermore, two of the bid proposal unit prices were decreased by the Contractor to account for the elimination of the largest road segment included in Schedule C, Bear Valley Rd from US 395 to Bellflower St. The total of this additional work amounts to $255,229.94. Adding this amount to the Base Bid ($1,344,770.06 + $255,229.94) equals a total contract value of $1,600,000.00. Please note that this section of Bear Valley Road has been included in Year 3 of the Measure I Five-Year Capital Improvement Plan.

The Engineering Department will be responsible for the management of the construction for this Project. Construction is likely to start in September 2024. It is estimated that the duration of the Project will be approximately fifty (50) working days. The start date and total duration of the project will depend on weather conditions.

Staff recommends that the City Council approve the Notice of Exemption and award a construction contract in an amount of $1,600,000.00 to Pavement Coatings Co., for the Citywide Pavement Preservation and Maintenance Project for the Base Bid Amount and additional work from Schedule C included with the bid.

Staff remains available for any questions Council may have.

Attachments: A. Location Map
B. Notice of Exemption
C. Schedule C – Additive Work Letter
D. Construction Contract
47 ATTACHMENT A
48 49

ATTACHMENT B
50 Statutory Exemptions. State code number:
_______________________________________________
Notice of Exemption Appendix E
From: (Public Agency): ____________________________To: Office of Planning and Research P.O. Box 3044, Room 113 _______________________________________________Sacramento, CA 95812-3044 County Clerk
(Address)
___________________________
___________________________
County of: __________________
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:

Project Location - City: ______________________ Project Location - County:

Description of Nature, Purpose and Beneficiaries of Project:
_____________________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Reasons why project is exempt:

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:
Attach certified document of exemption finding.
Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date:
6LJQHG E\ /HDG $JHQF\ 6LJQHGE\ $SSOLFDQW
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. _______________
Categorical Exemption. State type and section number: ____________________________________ ______________________________________________
______________ Title: _______________________
Revised 2011
City of Victorville
14343 Civic Drive PO Box 5001
Victorville, CA 92393-5001
San Bernardino
385 North Arrowhead Avenue, Second Floor
San Bernardino, CA 92415-0130
Citywide Pavement Preservation and Maintenance Project
City of Victorville
Various locations - See attached Project Location Map
Victorville San Bernardino
Repair of asphalt pavement, crack-sealing, slurry sealing, micro-surfacing, and re-striping of existing roadways.

City of Victorville
City of Victorville
X Class 1 (15301c)
This project consists of maintenance and repair of existing roadways and re-striping for vehicle and pedestrian safety.

Fredy Bonilla, City Engineer (760) 955-5170
City Engineer
■
51 52

ATTACHMENT C
53 54
55 ORIGINAL SCHEDULE C – ADDITIVE WORK

56 57
58 59

UPDATED SCHEDULE C – ADDITIVE WORK
60 CITY OF VICTORVILLE, CALIFORNIA

SCHEDULE C -ADDITIVE WORK
Bid
Item Ref Spec§/ Approx.
# Plan# Bid Item Description Quantity Unit Price Total Cost General
128 §7-3.4/ Mobilization/Demobilization (F) 1 LS lO• ooo .oo 10,0&D ,1>0 S-933 & S-934 129 §3-12/ Work Site Maintenance, Water Pollution 1 LS r,000.&0 1,000.00 S-933 & S-934 Control (F)
General - Bear Valley Rd between Bellflower St and Highway 395 (Location 5} 130 §3-8.2, §601/ Prepare Temporary Traffic Control 1 LS 2,0~0.00 S-933 & S-934 Plan(s) (F) ,·z, ODO, ilO 131 §601/ Temporary Traffic Control (F) 1 LS t?,,ooo ,otJ S-933 & S-934 "2~, 0 DO, OD 132 §302-4/ S-933 Crack Fill> 1
11 1 LS 2.o, coo. 0() Zo1DD(),(JC
133 §406/ S-933 Crack Seal< 1
11 1 LS
134 §302-3/ S-933 Double Layer Fiber Reinforced Micro- 272,989 SF t!Jr~2-, ft.oq,2~i.i9.

Surfacing Emulsion (F)
Striping - Bear Valley Rd between Bellflower St and Highway 395 (Location 5} 135 §314-2, §314-3/ Remove Striping 1 LS /5°;8¢,CO /~S/)(),IJi? S-934
Remove/Replace Type I Retroreflective
136 §314-5/ S-934 Pavement Makers - Fire Hydrants per 8 EA /fl-~0 e'/.M C.O.V. Std W-13 (F)
137 §314-4 Paint Curb in Front of Fire Hydrant per 90 LF 'Z .()S' /81{,~o C.O.V. Std S-12 (F) 138 §314-4/ S-934 Paint 4" Double Yellow Lines per CA 7,611 LF /:), ?-Z. ~ </'t'f. t;z.. MUTCD Detail 22 (F) 139 §314-4/ S-934 Paint 8" White Channelizing Line per CA 1,374 LF 1,,i:JS' 2,e",.?o MUTCD Detail 38 (F) 140 §314-4/ S-934 Paint Type IV Arrow (F) 15 EA 1,o-5.oo S;D-=15: g(f:; 141 §314-4/ S-934 Paint 4" White Right Edge Line per CA 8,761 LF (J.,f#z. -s';ti J. ~ t.. MUTCD Detail 27B (F) 142 §314-4/ S-934 Paint Type VI Arrow (F) 9 EA '2,,05,t>D l,8i./5' .. 6o 143 §314-4/ S-934 Paint 4" White Edge Line as Shown on 1,590 LF (9., 'f"t- /1 UI./, u, the Striping Plan(F) 144 §314-4/ S-934 Paint 8" White Diagonal Marking (F) 1,032 LF 1,,l'$' 2JII~ .ho 145 §314-4/ S-934 Paint 4" White Lane Line per CA MUTCD 2,766 LF I. U!> '218il8-{{8 Detail 12 (F) 146 §314-4/ S-934 Paint 4" White Continuous Lane Line per 612 LF l.o3 (p30, 3 ~ CA MUTCD Detail 12 (F)
General - Seneca Rd between Carob St and Arlette Dr (Location 6) 147 §3-8.2, §601/ Prepare Temporary Traffic Control 1 LS <""" ~ I)-() ('°()O.Or:> S-933 & S-934 Plan(s) (F)
148 §601/ Temporary Traffic Control (F) 1 LS ~,,;oo~oo '6Jf;D0•00 S-933 & S-934 149 §302-4/ S-933 Crack Fill> 1
11 1 LS LI, S"au . () o L/,6'PO,DO
150 §406/ S-933 Crack Seal< 1
11 1 LS ~({)O,,Oo 11,JOO. i')O
151 §302-3/ S-933 Double Layer Fiber Reinforced Micro- 68,480 SF O-btf l./~;82.1,20 Surfacing Emulsion (F) Striping - Seneca Rd between Carob St and Arlette Dr (Location 6) Bid Proposal Documents CITYWIDE PAVEMENT PRESERVATION AND MAINTENANCE PROJECT CC24-125
Page D-21
61 CITY OF VICTORVILLE, CALIFORNIA
§314-2, §314-3/
, l ,
152 Remove Striping 1 LS
\
S-934
Remove/Replace Type I Retroreflective to. ~"1 , JI {p 5 153 §314-5/ S-934 Pavement Makers - Fire Hydrants per 3 EA C.O.V. Std W-13 (F)
154 §314-4 Paint Curb in Front of Fire Hydrant per 90 LF ·2.o 5 J'i}LJ, ) 0
C.O.V. Std S-12 (F)
155 §314-4/ S-934 Paint 4" Double Yellow Lines per CA 1,868 LF o. --=tl 1.-(' G-{l( . q " MUTCD Detail 22 (F)
156 §314-4/ S-934 Paint 4
11 White Lane Line per CA MUTCD 32 LF -, •07 ·3 2.,q"
Detail 9 (F)
157 §314-4/ S-934 Paint 4
11 White Continuous Lane Line per 32 LF
·2, o tJ' ~ ';ft.._
CA MUTCD Detail 9 (F) t,;, r. Eio
158 §314-4/ S-934 Paint 4
11 White Right Edge Line per CA 421 LF 0.,2.. 2.JQl .. o'Z..

MUTCD Detail 27B (F)
159 §314-4/ S-934 Paint Type VI Arrow (F) 2 EA 2-oS--oo 4to, oo 160 §314-4/ S-934 Paint 4" Two-Way Left-Turn Lane per CA 525 LF (J), G:, 2 7.2...,f', f'O MUTCD Detail 32 (F)
General- Sycamore St between Cobalt Rd and Amethyst Rd (Location 9) 161 §3-8.2, §601/ Prepare Temporary Traffic Control 1 LS ')Oo, oc 5'00 , 0-0
S-933 & S-934 Plan(s) (F)
162 §601/ Temporary Traffic Control (F) 1 LS °1i OO(;rOO ~ coc,,~"1;;1 S-933 & S-934
163 §302-4/ S-933 Crack Fill> 1" 1 LS f.::r i.OOC, C-() (;;, i,000 "'V°b 164 §406/ S-933 Crack Seal< 1" 1 LS ~,too •oo ~l £00 ·oo 165 §302-3/ S-933 Double Layer Fiber Reinforced Micro- 90,819 SF C). 't.{, t;'-8 l t-2'{, l ~ i, Surfacing Emulsion (F)
Striping - Sycamore St between Cobalt Rd and Amethyst Rd (Location 9) 166 §314-2, §314-3/ Remove Striping 1 LS
L/,~ ~ 00•60 t..t(/jOO • O fJ
S-934
Remove/Replace Type I Retroreflective ~ . J 6 "2,,t. z..a 167 §314-5/ S-934 Pavement Makers - Fire Hydrants per 4 EA C.O.V. Std W-13 (F)
168 §314-4/ S-934 Paint 4" Double Yellow Lines per CA 3,068 LF 0 (. "i-2. '-{ l--0 8 • 4 fo MUTCD Detail 22 (F)
169 §314-4/ S-934 Paint 4
11 White Right Edge Line per CA 5,530 LF O,G 2. 1t l..(2$' ~ ,o MUTCD Detail 27B (F)
General - Luna Rd between Cobalt Rd and Fox Run Rd (Location 13) 170 §3-8.2, §601/ Prepare Temporary Traffic Control 1 LS ') Oo. oo ) -oo-.c:,o
S-933 & S-934 Plan(s) (F)
171 §601/ Temporary Traffic Control (F) 1 LS
ld 1, 1 00 . a, bl f'oo. oo
S-933 & S-934
172 §302-4/ S-933 Crack Fill> 1" 1 LS "> t r oo ~oo S-, -,ot>•c:io 173 §406/ S-933 Crack Seal < 1
11 1 LS B, loo ... o-o {/, l-t>o,oo
174 §302-3/ S-933 Double Layer Fiber Reinforced Micro- 83,594 SF 0 --foq ~~l ',OU • l ~ Surfacing Emulsion (F)
Striping - Luna Rd between Cobalt Rd and Fox Run Rd (Location 13) 175 §314-2, §314-3/ Remove Striping 1 LS
Ji l"-00 .. 00 > (,, -=t-e6 • oo
S-934
Remove/Replace Type I Retroreflective ~ .. .3o "Z-L • 20 176 §314-5/ S-934 Pavement Makers - Fire Hydrants per 4 EA C.O.V. Std W-13 (F)
Bid Proposal Documents CITYWIDE PAVEMENT PRESERVATION AND MAINTENANCE PROJECT CC24-125
PageD-22
62 CITY OF VICTORVILLE, CALIFORNIA
Paint Curb in Front of Fire Hydrant per 2. 0 I
I
177 §314-4 C.O.V. Std 5-12 (F) 90 LF
178 §314-4/ S-934 Paint 4" Double Yellow Lines per CA 1,905 LF 0 • 1-Z.. \1Ji,l .. '-' 6 MUTCD Detail 22 (F)
179 §314-4/ S-934 Paint "STOP" Legend (F) 1 EA 2,.. ij 7- •00 ·z..,g2, oc; General - Sunset Rd between Beachcomber Ln and Byrd St (Location 18) 180 §3-8.2, §601/
S-933 & S-934
181 §601/
S-933 & S-934
182 §302-4/ S-933
183 §406/ S-933
184 §302-4/ S-933
Bid Proposal Documents
Prepare Temporary Traffic Control LS
to(3«oo /00•60
Plan(s) (F) 1
Temporary Traffic Control (F) 1 LS
':,~ 00« co ~OCl•OO
Crack Fill> 1
11 1 LS 1\(.)()0• 00 J,0001 06
Crack Seal< 1
11 1 LS ':J~d 0 o,ao ~f loo.or;
Type II Emulsion-Aggregate Slurry Seal (F) 18,702 SF 0,2..,{ , \. qi=,.._ l../Z.

Schedule C Subtotal 'i""t,lt.. i OS'J• S"'S'

CITYWIDE PAVEMENT PRESERVATION AND MAINTENANCE PROJECT
CC24-125
PageD-23
63 ATTACHMENT D
64 1 Construction Agreement/Pavement Coatings Co./Project CC24-1 25

CONSTRUCTION CONTRACT BY AND BETWEEN

THE CITY OF VICTORVILLE AND
PAVEMENT COATINGS CO.

FOR

CITYWIDE PAVEMENT PRESERVATION AND MAINTENANCE PROJECT, CITY PROJECT NO. CC24-125
THIS CONSTRUCTION CONTRACT (the “Contract”) dated ______________________ for reference purposes only is made and entered into by and between the City of Victorville, a municipal corporation and charter city located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and Pavement Coatings Co., a California corporation, hereinafter referred to as the “Contractor”.

The City and Contractor are sometimes hereinafter referred to as a “ Party” and collectively referred to as the “Parties.”
RECITALS:

WHEREAS, the City requires construction of Citywide Pavement Preservation and Maintenance Project as more fully described in the solicitation documents issued by the City for Project No. CC24- 125 (the “Project”); and
WHEREAS, on July 1, 2024, the City issued a Notice Inviting Bids and solicitation documents to prospective bidders for the Project. In response, Contractor submitted a Bid which the City determined to be the lowest responsive and responsible bid; and
WHERE
AS, Contractor is a duly organized corporation in good standing in the State of California, and represents that it has the background, knowledge, experience, expertise and resources to perform the Work and other obligations encompassed by this Contract; and WHERE
AS, at its meeting held on August 20, 2024 , the Victorville City Council duly accepted Contractor’s Bid for the Project and directed that a written agreement for the Project be entered into with Contractor; and
WHER
EAS, in light of the facts set forth above and the certifications made by Contractor as part of its Bid, the City desires to retain Contractor to perform the construction Work for the Project as set forth in this Contract and in the Contract Documents, as hereinafter described.

NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Contract by this reference, as though set forth herein.
65 2 Construction Agreement/Pavement Coatings Co./Project CC24-125 Section 2. CONTRACT DOCUMENTS; ORDER OF PRECEDENCE
a. Contract Documents. The Contract Documents consist of the following documents, all of which are either attached hereto as exhibits or are incorporated herein by this reference. Said Contact Documents are complementary; what is called for in one is binding as if called for in all, and together constitute Contractor’s performance obligations:
(1) This Contract and its attached Exhibits, subject to the limitations in Sections 9 and 20 with respect to Exhibit “A” (Contractor’s submitted Bid Proposal as accepted by the City); (2) Change Orders issued and approved by the City;
(3) Regulatory Permits from other agencies specified in Appendices A and B of the bid package or as may otherwise be required by law;
(4) Bid Addenda issued by the City;
(5) Notice Inviting Bids and Instructions to Bidders;
(6) Special Provisions
(7) Greenbook 2021 Edition
(8) Appendices
(9) Plans
(10) Bid Forms and attachment thereto;
(11) Faithful Performance Bond;
(12) Payment Bond.
b. Interpretation. In the event of any conflict between any of the Contract Documents, the document highest in the order of precedence (from highest to lowest), as set forth in Subsection a. above shall control.
c. Definitions. Unless specifically defined or assigned a meaning in this Contract, or the context clearly indicates otherwise, capitalized terms herein shall have the meaning assigned to them in the “Definitions” section of the Instructions to Bidders document.

Section 3. CONTRACTOR’S OBLIGATIONS
Contr
actor will perform all of the Work required for the Project, as specified in the Contract Documents.

Section 4. CONTRACT PRICE; PAYMENT AND RETENTION
a. As f
ull and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor One Million S ix Hundred Thousand and 00/100 D ollars, ($ 1,600,000.00) (the “ Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with Contractor’s Bid Proposal (attached hereto as Exhibit “A”) subject to the provisions of this Contract and the Contract Documents.
66 3 Construction Agreement/Pavement Coatings Co./Project CC24-125

b. Procedures relating to payment and retention are set forth in the Special Provisions.

Section 5. CONT RACT TIME; NOTICE TO PROCEED

a. Contract Time. The Work under this Agreement shall be diligently prosecuted to completion before expiration of Fifty (50) WORKING DAYS, commencing within Fifteen ( 15) calendar days after the issuance of the Notice to Proceed. The City will not issue a Notice to Proceed to the Contractor until this Contract, including bonds and insurance documents, have been executed and/or approved by the City.

(1) I
n the event of a Section 9204 Public Works Claim, Contractor may not stop working pending resolution of the dispute but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work during the Section 9204 process.

b. For disputes or claims that do not constitute Public Works Claims, City and Contractor agree to comply with the following process:

(1) Each Party shall designate a senior management or executive level representative to negotiate any dispute.

(2) The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority.

(3) If the issue remains unresolved after ten (10) days of good faith negotiations, the Parties shall attempt to resolve the disagreement by negotiation between the legal counsel for each Party.

(4) The alternative dispute resolution process set forth herein is a material condition to Contract and must be exhausted as an administrative remedy prior to either Party initiating legal action. 67 4 Construction Agreement/Pavement Coatings Co./Project CC24-125

(5) Compliance with VMC Section 2.24.020 and the provisions of the Government Claims Act (Government Code section 810 et seq.) is also required prior to initiating suit again the City.

Section 7. TE RMINATION OF AGREEMENT FOR CONVENIENCE

a. The City may, by providing thirty (30) days' advance written notice to Contractor, terminate this Agreement in whole or in part, whenever the City shall determine that such termination is in the best interests of the City, or when it becomes impracticable or impossible to proceed, or because of conditions or events beyond the control of the City. Any such termination shall be effected by delivery to Contractor of a Notice of Termination for Convenience, specifying the extent to which performance of Work under this Agreement is terminated, and the date upon which such termination becomes effective. Upon such termination, the obligations of the Contractor for portions of the Work already performed shall continue.

b. Upon receipt of a Notice of Termination for Convenience, the Contractor shall, unless the notice directs otherwise, do the following:

c. Upon such termination, the Contractor will be paid without duplication for:

(1) Work completed in accordance with the Contract Documents prior to the effective date of the Notice of Termination for Convenience;
(2) Reasonable costs incurred in settlement of terminated contracts with Subcontractors, suppliers and others; and
(3) Reasonable expenses directly attributable to termination.

68 5 Construction Agreement/Pavement Coatings Co./Project CC24-125

Section 8. TERMINATION FOR CONTRACTOR’S DEFAULT

(1) be
comes insolvent, assigns its assets for the benefit of its creditors, is unable to pay its debts as they become due, or is otherwise financially unable to complete the Work; (2) abandons the Work by failing to report to the Work site and diligently prosecute the Work to completion;
(3) disregards written instructions from the City or materially violates provisions of the Contract Documents;
(4) fails to prosecute the Work according to the schedule approved by the Engineer, (5) disregards laws or regulations of any public body having jurisdiction, or (6) commits continuous or repeated violations of regulatory or statutory safety requirements.

Notices, and other written communications regarding default between the Contractor, the City, and the Surety shall be transmitted in accordance with Section 21 of this Contract. b. Notice and Opportunity to Cure. The City will issue a written notice to cure the default to the Contractor and its Surety. The Contractor shall commence satisfactory corrective actions within five (5) Working Days after receipt. If the Contractor fails to commence satisfactory corrective action within five (5) Working Days after receipt of the notice to cure, or to diligently continue satisfactory and timely correction of the default thereafter, the City will consider the Contractor in default of the Contract and:
(1) will terminate the Contractor’s right to perform under the Contract by issuing a written notice of
termination for default to the Contractor and its Surety; (2) may use any materials, equipment, tools or other facilities furnished by the Contractor to secure and maintain the Work site, and
(3) may furnish labor, equipment, and materials the City deems necessary to secure and maintain the Job Site;

Section 9. PRE

VAILING WAGE

a. Compliance with State Prevailing Wage Requirements. Pursuant to Labor Code Section 1773, the City has obtained the prevailing rate of per diem wages and the prevailing wage rate for holiday and overtime work applicable in San Bernardino County, California from the Director of the Department of Industrial Relations (DIR) for each craft, classification, or type of worker needed to perform the Work required under this Contract. A copy of these prevailing wage rates are on file at the City’s Finance Department/Purchasing Division and shall be made available for review to any interested party on request. In addition, a copy of the prevailing rate of per diem wages may be obtained via the internet at:
http://www.dir.ca.gov/DLSR/PWD. Contractor and all Subcontractors shall pay not less than said specified State of California rates to all workers employed by them in the execution of the Work contemplated by this Contract, including workers performing Work covered by under Labor Code Sections 1720 and 1720.9. Contractor shall be responsible for using the correct and current prevailing wage rates. Contractor shall be solely responsible for using the correct wage decision or determination and perform accordingly. An error on the part of any awarding body does not relieve the Contractor from 69 6 Construction Agreement/Pavement Coatings Co./Project CC24-125

the responsibility for payment of the correct prevailing wage.

(a) The i
nformation contained in the payroll record is true and correct; and

(b) Contractor or the Subcontractor has complied with the requirements of Labor Code §§ 1771, 1811, and 1815 for any Work performed by its employees on the Project.

(3) Enforcement.

e. Notices. Pursuant to Labor Code section 1771.4, Contractor is required to post all Job Site notices, including prevailing wage rates and other notices as required by regulation.

f. Other Labor Requirements. Contractor has the responsibility for and shall comply with all other requirements of California Labor Code Section 1720 et seq., the Regulations, and all other applicable State labor laws. Contractor further acknowledges and agrees that it will be independently 70 7 Construction Agreement/Pavement Coatings Co./Project CC24-125

responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Contractor will require the same of all its Subcontractors.

g. Statutory Penalties. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced as follows:

(1) P
ursuant to Labor Code section 1775, the Contractor and any Subcontractor under it shall forfeit as a penalty to the City not more than Two Hundred Dollars ($200.00), for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or craft in which such worker is employed for any public work done under this Contract by it or by any Subcontractor under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.

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

Section 10. L

IQUIDATED DAMAGES

If Contractor fails to complete the Work within the Contract Time, City will assess liquidated damages in the amount of Four Thousand Two Hundred and 00/100 Dollars ($4,200.00) per day for each day of unexcused delay in completion, and such liquidated damages may be deducted from City’s payments due or to become due to Contractor under this Contract.

Section 11. C

Section 12. WO RKERS’ COMPENSATION CERTIFICATION

Section 13. I

NSURANCE
a. Contractor shall procure and maintain at its own expense at all times during the period covered by this Contract (and through the one- year guarantee period following the date of City’s acceptance of the Project) the following policies of insurance:

(1) Commercial General Liability (“CGL”) Insurance: Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence resulting from the acts or omissions of the Contractor or its officers, employees, servants, volunteers, and agents, and independent contractors. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

(2) Commercial Vehicle Liability Insurance: Covering person injury and property damage, of not less than Five Million Dollars ($5,000,000) combined single limit, covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the Work required by this Contract.

(4) Course of Construction, Builders’ Risk, or Inland Marine Insurance for Work on Site: Issued on an occurrence basi s, for all-risk or “all perils” coverage on a 100% completed value basis on the insurable portion of the Project for the benefit of City, that offers “Installation” coverage for all materials, supplies, equipment, and property obtained by, or for Contractor, which is to become part of the Work while such equipment and property is stored at the jobsite, at temporary locations, or while in transit to the Project from such temporary locations. Contractor shall also be responsible for insuring its owned, leased/rented, or borrowed equipment.

(a) City of Victorville shall be named as a Loss Payee.

machinery, and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery, or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the Project/Work site.

b. Additional Insurance Requirements. With respect to the policies of insurance set forth above, compliance with the following is also required:

(3) Sufficiency of Insurers. Contractor must secure all policies of insurance required by this Contract from a good and responsible company or companies authorized to do insurance business in the State of California, with an AM Best’s rating of not less than A;VII.

(4) Proof of Insurance Coverage Required Prior to Commencement of Work. Wi thin ten (10)
days of the date Contractor receives this Contract from the City for execution (following award of same by the City Council), certificates of insurance evidencing the policies of insurance, coverages, and endorsements required by this Contract and satisfactory to and approved by the City shall be furnished by Contractor to the City’s Risk Manager. In no event shall any Work on the Project be permitted to commence until adequate proof of insurance and endorsements have been so furnished.

(5) Special Provisions. Any additional i
nsurance requirements set forth in Section 5-4 of the
Special Provisions shall also apply to this Contract.

(6) Other Required Endorsements.

(a) The policies shall be endorsed to provide that in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the City shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of cancellation for non- payment, ten (10) days advance written notice shall be given.

73 10 Construction Agreement/Pavement Coatings Co./Project CC24-125

(b) The CGL and vehicle liability policies shall be endorsed as Primary and Non- contributory.

Section 14. R
eserved.

Section 15. TI

ME OF THE ESSENCE

Time is of the essence in the performance of this Contract.

Section 16. IN

DEMNIFICATION
a. Notwithstanding the limits of any insurance and to the fullest extent permitted by law, Contractor shall indemnify the City, its elected or appointed officials, officers, agents, volunteers and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (hereinafter " Claims or Liabilities") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the performance of the Work, operations, or activities of Contractor, its agents, employees, Subcontractors, or invitees on the Project, or arising or alleged to arise from the acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's performance of or failure to perform any term, provision, covenant or condition of this Contract, but excluding such Claims or Liabilities or portion of such Claims or Liabilities arising or alleged to arise from the active negligence, sole negligence, or willful misconduct of the City, its elected or appointed officials, officers, agents, volunteers, or employees, and in connection therewith:
(1) Contractor will defend any action or actions filed in connection with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;
(2) Contractor will promptly pay any judgment rendered against the City, its elected or appointed officials, officers, agents, volunteers, or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', employees', Subcontractors' or invitees') performan ce of or failure to perform such Work, operations or activities hereunder; and Contractor agrees to save and hold the City, its elected or appointed officials, officers, agents, volunteers and employees harmless therefrom; (3) In the event the City, its elected or appointed officials, officers, agents, volunteers, or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the performance of or failure to perform the Work, operation, or activities of Contractor hereunder, Contractor shall pay to the City, its elected or appointed officials, officers, agents ,volunteers, or employees, any and all costs and expenses incurred by the City, its elected or appointed officers, officials, agents, volunteers, or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City; 74 11 Construction Agreement/Pavement Coatings Co./Project CC24-125

b. City will timely notify Contractor upon receipt of any third- party claim relating to the Contract, as required by Public Contract Code § 9201. The Contractor's indemnification and defense obligations pursuant to this Section shall survive the termination of this Contract. Contractor shall require the same indemnification from all Subcontractors.

Section 17. REP
ORTS; BOOKS AND RECORDS; AUDIT
a. Upon request by the Project Manager Contractor shall prepare and submit reports concerning Contractor's performance of the Work required by this Contract. b. Contractor shall keep such books and records as shall be necessary to perform the work required by this Contract and enable the Project Manager to evaluate the cost and the performance of such Work.
c. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles. The Project Manager shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.
d. Records and supporting documents pertaining to the use of funds paid to Contractor hereunder shall be retained by Contractor and made available to the Project Manager for purposes of performing an audit for a period of five (5) years from the date of termination of this Contract.

Section 18. M

ODIFICATIONS AND AMENDMENTS
This Contract may be modified or amended only by written Change Orders as specified in the Contract Documents or a written instrument signed by both Parties.

Section 19. ENT IRE AGREEMENT
a. This Contract supersedes any and all prior or contemporaneous agreements, either oral or written, between the City and Contractor with respect to the subject matter of this Contract. b. The Contract Documents contain all of the covenants and agreements between the Parties with respect to the subject matter herein, and each Party acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Contract and the Contract Documents incorporated herein. 75 12 Construction Agreement/Pavement Coatings Co./Project CC24-125

c. No agreement, statement, or promise with respect to the subject matter of the Contract Documents, which is not contained in the Contract Documents, or in a valid modification or amendment to the Contract Documents, shall be valid or binding on either Party.

Section 20. AMBIGUITIES

This Contract is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted against either of them. Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Contract. Notwithstanding the foregoing, the Parties agree that Exhibit “A” is attached hereto for reference purposes, and to the extent there are any ambiguities, inconsistencies, or conflicts between the terms of this Contract and Exhibit “A”, the terms of this Contract shall control and nothing set forth in Exhibit “A” shall be deemed to supersede any of the provisions of this Contract.

Section 21. NOTICES

To City: Fredy Bonilla, City Engineer
Engineering Department City of Victorville
14343 Civic Drive
Victorville, CA 92392

To Contractor: Tim Schmid, President
Pavement Coatings co.
10240 San Sevaine Way
Jurupa Valley, CA 91752

To Surety: _______________________________
_______________________________
_______________________________
_______________________________
_______________________________

b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

c. Either Party, or the surety, may change its address by giving notice in writing to all other parties listed above, and thereafter notices shall be addressed and transmitted to such new address.

Section 25. CA

RE OF WORK
Contractor must adopt reasonable methods during the life of the Contract to furnish continuous protection to the Work, and the equipment, materials, papers, documents, plans, studies, and other components to prevent losses or damages, and will be responsible for all damages, to persons or property, until acceptance of the Work by the City, except those losses or damages as may be caused by the City’s own negligence. The performance of the Work by Contractor or the payment of money by the City shall not relieve Contractor from any obligation to correct any incomplete, inaccurate, or defective Work (including the obligation to remedy any defective Work or materials during t he one-year guarantee period after the City’s acceptance thereof) at no further cost to the City.

Section 28. SU

Section 29. G ENDER; PLURAL
In this Contract, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another. 77 14 Construction Agreement/Pavement Coatings Co./Project CC24-125

Section 35. R EPRESENTATIONS OF PARTIES AND PERSONS EXECUTING CONTRACT

Section 36. WA IVER

78 15 Construction Agreement/Pavement Coatings Co./Project CC24-125

Section 37. INDEPENDENT CONTRACTOR STATUS

Section 38. COUNTERPARTS
This Contract may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Contract.

Section 39. PROVISIONS REQUIRED BY LAW DEEMED INSERTED

Section 40. AT TORNEY'S FEES

Section 41. CARB COMPLIANCE OBLIGATIONS

For more information, please visit the CARB Advanced Clean Fleets (ACF) webpage at https://ww2.arb.ca.gov/our-work/programs/advanced-clean-fleets.

(2) Effective January 1, 2024, CARB implemented amendments to the In -Use Off-Road Diesel-Fueled Fleets Regulation (13 CCR Section 2449 et seq., the “Off-Road Regulation”) which apply broadly to all self -propelled off -road diesel vehicles 25 horsepower or greater and other forms of equipment used in California (including any vehicles or equipment that is rented or leased). The Off-Road Regulation is available at: https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2022/off- roaddiesel/appa-1.pdf.

costs associated with violations or failures to comply with the regulations. Contractor shall defend, indemnify, and hold harmless the City of Victorville, its elected and appointed officials, officers, agents, and employees from and against any and all claims, liabilities, costs, penalties, interest or other damages arising out of Contractor’s failure or alleged failure to comply with CARB regulations.

(END OF THIS PAGE – SIGNATURE PAGE FOLLOWS)

80 17 Construction Agreement/Pavement Coatings Co./Project CC24-125

IN WITNESS WHEREOF, the Parties hereto have caused this Contract to be executed as of the dates written below.

THE CITY OF VICTORVILLE PAVEMENT COATINGS CO.

By: By:

Elizabeth Becerra, Mayor Tim Schmid, President

Dated: ______________ ______________ Dated:

ATTEST

By:

Jennifer Thompson, City Clerk

Dated:

By: ______________________________
Sandra Bostick, Risk Manager

Dated: ___________________________

APPROVED AS TO STANDARD FORM

By: ______________________________

Andre de Bortnowsky, City Attorney

Dated: ______________
______________

81 18 Construction Agreement/Pavement Coatings Co./Project CC24-125

EXHIBIT A

CONTRACTOR'S BID PROPOSAL

See Attachment

82 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 19/Construction Agreement/Pavement Coatings Co./Project CC24-125 83 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 20/Construction Agreement/Pavement Coatings Co./Project CC24-125 84 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 21/Construction Agreement/Pavement Coatings Co./Project CC24-125 85 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 22/Construction Agreement/Pavement Coatings Co./Project CC24-125 86 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 23/Construction Agreement/Pavement Coatings Co./Project CC24-125 87 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 24/Construction Agreement/Pavement Coatings Co./Project CC24-125 88 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 25/Construction Agreement/Pavement Coatings Co./Project CC24-125 89 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 26/Construction Agreement/Pavement Coatings Co./Project CC24-125 90 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 27/Construction Agreement/Pavement Coatings Co./Project CC24-125 91 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 28/Construction Agreement/Pavement Coatings Co./Project CC24-125 92 EXHIBIT A, CONTRACTOR'S BID PROPOSAL, PROJECT CC24-125 29/Construction Agreement/Pavement Coatings Co./Project CC24-125 93 THIS PAGE LEFT

BLANK

INTENTIONALLY
94 Item Number: 3
City Council / Board of Directors
Public Hearing(s)
Meeting of: August 20, 2024
Submitted By:

Brenda Hampton, Director of Electric Utility Services

Subject:

Proposed Updated Electric Service Rules, Regulations and Rate Schedules Recommendation:

The Honorable City Council:

1. Conduct a public hearing, receive testimony for or against adoption of proposed Resolution No. 24-076, close the public hearing; and

2. Adopt Resolution No. 24-076 amending and revising the Electric Service Rules, Regulations and Rate Schedules (tariffs) for electric services provided to customers of the Victorville Municipal Utility Services (”VMUS”) pursuant to Chapter 10.10 of the Victorville Municipal Code; and

3. Approve Appendix B to the Rules, Regulations and Rate Schedules, and Adopt the Net Energy Metering (“NEM”) 1.0 and Eligible Renewable Generator (“ERG”) Tariffs.

Fiscal Impact:

There is no anticipated fiscal impact associated with this action in FY 2024-2025.

Strategic Plan Goal:

This item contributes to the City's strategic plan goal to further improve community and economic development. It allows and encourages current and new electric customers to install renewable generation on the customer-side of the meter to improve efficiency for their operations.

Background:

On January 19, 2010, the City Council adopted Ordinance No. 2240 which amended, revised, and codified the VMUS Electric Service Rules, Regulations and Rate Schedules, 95 3
7 3
8 and established a mechanism under Chapter 10.10 of the Victorville Municipal Code to make future amendments by way of City Council resolution.

City Staff periodically reviews the VMUS Electric Service Rules and Regulations, which govern the day-to-day operations of the electric utility ("Rules and Regulations") to ensure that its policies and related procedures reflect administrative reorganizations, best utility practices, new laws or regulations governing the utility, and technology updates. These Rules and Regulations were last amended on July 1, 2022, following the City Council adoption of Resolution No. 22-060.

Section 2827 of the California Public Utilities Code (“PUC”) established a program for Eligible Customer-Generators (“ECGs”) with renewable electrical generation facilities.

This program, commonly referred to as Net Energy Metering (“NEM”), allows these customers to receive service through a special contract or tariff, even if they are currently receiving service under a different contract or tariff. The program is designed to encourage the installation of renewable generation on the customer-side of the meter.

Publicly owned electric utilities (“POU”) must offer a standard NEM tariff to customers that install renewable generation under one megawatt in capacity and meet other eligibility requirements.

Discussion:

In accordance with Section 2827, this Council action item modifies Rule 21 - Generating Facility Interconnections and establishes the NEM 1.0 and ERG Rate Schedules. Rule 21 describes the interconnection, operating, and metering requirements for Generating Facilities to be connected to the Utility’s Distribution Systems. The NEM 1.0 and ERG Rate Schedules offer compensation for surplus energy produced by eligible customer- generators in accordance with program parameters.

The NEM 1.0 Rate Schedule is offered on a first-come-first-served basis until the total rated generating capacity used by ECGs exceeds 5 percent of VMUS’ annual system peak demand. The Net Energy Metering calculation is performed over each normal monthly billing period within a twelve-month period. The twelve‐month period commences with the regularly scheduled meter read date in September and concluding as of the regularly scheduled meter read date the following August.

For customers on the NEM 1.0 Rate Schedule, at the end of each 1-month billing period, VMUS shall determine if the ECG was a net consumer or a net generator of electricity. If the ECG was a net energy consumer, then the ECG shall be charged on a kilowatt-hour basis in accordance with that same Time-of-Use (“TOU”) period in the ECG’s otherwise applicable Rate Schedule. If the ECG is not on TOU rates, the ECG shall be charged based on its otherwise applicable Rate Schedule. If the ECG is a net generator during any discrete TOU period, then the net kilowatt-hours produced shall be valued at the same price per kilowatt-hour as the Utility would charge for retail kilowatt-hour sales during that same TOU period and that value shall be credited to the ECG’s monthly bill.

If at the end of the twelve-month period ECG is a Net Surplus ECG, ECG may receive 96 3
7 3
8 compensation for the Net Surplus Energy based on the Net Surplus Energy Compensation (“NSEC”) rate referenced below.

Once the maximum allowable generating capacity for the NEM 1.0 program is met, additional ECGs may be eligible for the ERG Rate Schedule. To be eligible for the ERG Rate Schedule, the expected annual generation from the renewable electrical generation facility must not exceed the ECG’s load for the prior full calendar year, or if insufficient historical load data is available, the expected annual load based on the customer type and other characteristics.

For customers on the ERG Rate Schedule, the ECG’s NEM calculation shall be performed over each normal monthly billing period. The monthly NEM calculation shall be made by measuring the difference between the electricity supplied to ECG and the electricity generated by ECG and fed back to the grid over a normal 1-month billing period.

At the end of each 1-month billing period, the utility shall determine if the ECG was a net consumer or a net generator of electricity.

If the ECG was a net energy consumer, then the ECG shall be charged on a kilowatt-hour basis in accordance with that same Time-of-Use (“TOU”) period in the ECG’s otherwise applicable Rate Schedule. If the ECG is not on TOU rates, then they shall be charged based on their applicable tariff. If the ECG was a net energy producer for that billing period, the Net Surplus Energy that was delivered to the grid shall be multiplied by the applicable NSEC rate and credited to the ECG’s monthly bill and applied against future billing periods.

The NSEC rate will be adjusted annually on September 1st and will be posted to VMUS’ website. The methodology to be used for the NSEC rate calculation is shown below:

NSEC Rate Calculation:

Weighted average cost of energy purchased included in the CAISO settlements + Weighted average CAISO Wheeling Access Charge + Value of renewable energy credits based on the Utility’s most recently executed renewable power purchase contractual commitment of ten years or more
In addition to the modification of Rule 21 and the addition of the NEM 1.0 and ERG Rate Schedules, the Interconnection Application Fee has been adjusted to more accurately reflect the cost of evaluating the applications for interconnecting generators to the VMUS distribution system. Also, the Greenhouse Gas Rebate has been removed effective July 1, 2024, and minor clarifying editorial changes were made within the Rules and Regulations document.

Proposed updates to the Rules and Regulation and the corresponding documents related to the net energy metering program were reviewed by Braun Blaising & Wynne P.C. who specialize in providing legal services on energy-related issues, consulting service provider ASTRUM Utility Services, Inc., and the City’s General Legal Counsel, Green de 97 3
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8 Bortnowsky to ensure the program is legally acceptable and complies with PUC code Section 2827.

The City has provided the required notification to the public by publishing notice of this in the County Legal Reporter, a newspaper of general circulation adjudicated to publish Legal Advertisements in the entire County of San Bernardino and City of Victorville, and by posting notice in at least two separate locations within the City. Furthermore, the public hearing notice was sent to applicable VMUS electric customers on August 7, 2024.

If Resolution No. 24-076 is approved by the City Council, the entirety of the revised Rules, Regulations, and Rate schedules will become effective on September 1, 2024. Staff remains available to answer any questions the City Council may have.

Attachments: A. Notice of Public Hearing
B. Resolution No. 24-076

98 Attachment A

Notice of Public Hearing

99 CITY OF VICTORVILLE – NOTICE OF PUBLIC HEARING

NOTICE IS HEREBY GIVEN THAT the Victorville City Council shall conduct a public hearing on August 20, 2024, at 6:00 p.m. (or as soon thereafter as the matter may be heard), for the purposes of hearing arguments for and against amending the Electric Service Rules and Regulations (“Rules”) to update and revise certain administrative procedures and definitions in said Rules. If adopted, the revised Electric Service Rules d etailed in Attachment 1 of proposed Resolution No. 24-076 would become effective on September 1, 2024.

RESOLUTION NO. 24-076

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VICTORVILLE AMENDING

AND REVISING THE ELECTRIC RULES , REGULATIONS AND RATE SCHEDULES (TARIFFS) FOR ELECTRIC SERVICES PROVIDED TO CUSTOMERS OF VICTORVILLE MUNICIPAL UTILITY SERVICES (“VMUS”) PURSUANT TO CHAPTER 10.10 OF THE VICTORVILLE MUNICIPAL CODE.

Proposed Resolution No. 24-076, the revised Electric Service Rules ( Attachment 1 thereto) will be available for inspection beginning on August 9, 2024, at Victorville City Hall, located at 14343 Civic Drive, Victorville, California in the City Clerk’s office, or online at https://www.victorvilleca.gov/government/legally-required-postings.

Any person m ay appear at the hearing and be heard in support of, or in opposition to Proposed Resolution No. 24-076 Persons having concerns or questions regarding this hearing may contact VMUS customer service at (760) 243- 6340, [email protected], or visit VMUS customer service at Victorville City Hall during normal business hours. Comments may be made via email to [email protected] no later than 4 p.m. on August 20, 2024; by mail prior to or during the meeting, but before the close of the public hearing, to City Clerk, 14343 Civic Drive, Victorville, CA 92392.

Any persons wishing to challenge the decision on the above item in court may be limited to raising only those issues they or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Victorville, or prior to, the public hearing.

Publish: August 9, 2024, and August 16, 2024

____________________________
Jennifer Thompson, City Clerk
100

Attachment B

Resolution No. 24-076
101

RESOLUTION NO. 24-076

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

VICTORVILLE AMENDING AND REVISING THE ELECTRIC

SERVICE RULES, REGULATIONS AND RATE SCHEDULES (TARIFFS)

FOR ELECTRIC SERVICES PROVIDED TO CUSTOMERS OF
VICTORVILLE MUNICIPAL UTILITY SERVICES (“VMUS”)
PURSUANT TO CHAPTER 10.10 OF THE VICTORVILLE MUNICIPAL
CODE.

WHEREAS, on January 19, 2010, the City Council of the City of Victorville (“City”) adopted Ordinance No. 2240, which, among other things, amended, revised and codified the Electric Service Rules, Regulations and Rate Schedules of Victorville Municipal Utility Ser vices (“VMUS”) in Chapter 10.10 of the Victorville Municipal Code (“VMC”); and

WHEREAS, t
he Electric Service Rules, Regulations and Rate Schedules of VMUS were set forth in Attachment 1 of Ordinance No. 2240 and incorporated by reference into VMC Section

10.10.010(a); and

WH
EREAS, Ordinance No. 2240 further provided that the Electric Service Rules, Regulations and Rates could be amended by resolution of the City Council under the procedures set forth therein; and

WHEREAS, VMC Section s 10.10.010 and 10.10.020 authorizes the City Council to amend the Electric Service Rules, Regulations and Rate Schedules set forth in Attachment 1 of Ordinance No. 2240, following publication of advance notice and the holding of a public hearing; and

WHEREAS the City Council desires City Staff to regularly review VMUS electric utility operations to ensure that electric rates cover all prudent business costs, as well as current and future obligations, but do not exceed the amount necessary for the same; and

WHEREAS, as a municipal electric utility, the City is generally subject to the legislative and regulatory requirements applicable to local publicly owned electric utilities (“POUs”), as defined in California Public Utilities Code § 224.3; and

WHEREAS, California Public Utilities Code § 2827 requires POUs to offer a standard tariff for net energy metering to eligible customer-generators, upon request, on a first- come-first- served basis until the total rated generating capacity used by eligible customer- generators exceeds five percent of the POU's aggregate customer peak demand; and WHEREAS, California Public Utilities Code § 2827(a)(4)(A) defines an “eligible customer generator” as a residential, small commercial, commercial, industrial, or agricultural customer who uses a renewable electrical generation facility, with a total capacity of not more than one megawatt, that is located on the customer's owned, leased, or rented premises, and is interconnected and operates in parallel with the electrical grid, and is intended primarily to offset part or all of the customer's own electrical requirements; and

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WHEREAS, if an eligible customer generator produces more electricity than it consumes over a twelve- month period, then the amount of generation that exceeds its consumption is considered “net surplus energy;” and

WHEREAS, California Public Utilities Code § 2827(h)(5)(A) directs each POU governing board to establish a net surplus energy compensation rate at a level that will provide the eligible customer generator just and reasonable compensation for the value of its net surplus energy, while leaving other ratepayers unaffected; and

WHEREAS, in order to implement the requirements of California Public Utilities Code § 2827, it is necessary for the City to establish, as part of a public proceeding, the net surplus energy compensation rate; and

WHEREAS, on Augus
t 20, 2024, the City Council conducted a duly noticed public hearing concerning the adoption of this Resolution, Attachment 1 to this Resolution and Appendix B thereto; and
WHEREAS, copies of this Resolution, Attachment 1 to this Resolution and Appendix B thereto, were made available for public review in City Clerk’s office and on the VMUS web page beginning August 9, 2024; and

WHEREAS, bas
ed upon the Staff Report, testimony, and other evidence submitted at the public hearing held on August 20, 2024, the City Council hereby finds and determines that: the proposed revision of Attachment 1 to this Resolution and rates set forth in Appendix B (which upon adoption shall be part of Attachment 1 of the VMUS Electric Service Rules, Regulations and Rate Schedules) reflect the City’s reasonable and prudent costs associated with operation of VMUS and do not establish unfair, unreasonable, discriminatory or excessive rates that exceed the City’s reasonable costs providing electricity services to its customers; and

WH
EREAS, the City Council has reviewed the adoption of this Resolution pursuant to the requirements of the California Environmental Quality Act of 1970, as amended (“CEQA”), and determined that the adoption of the revised Electric Service Rate Schedules has no foreseeable potential to result in a significant impact upon the environment and is exempt from CEQA review pursuant to State CEQA Guidelines Section 15061(b)(3). Further, the City Council has determined that the approval of the fees and rates is exempt from substantive environmental review under Section 15273(a)(1) of the State CEQA Guidelines as such fees and rates are for the purposes of meeting the operating expenses of the municipal electricity enterprise; and

WHEREAS, in order to comply with California Public Utilities Code § 2827 , the City Council desires to adopt this Resolution making the Schedule NEM 1.0 and Schedule ERG (Eligible Renewable Generators) in Appendix B effective as of September 1, 2024.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That the recitals and findings set forth above are true and correct and are hereby 103
incorporated in their entirety by this reference.

Section 2. That the VMUS Electric Service Rules and Regulations set forth in Attachment 1 of Resolution No. 24-076 shall remain in full force and effect.

Section 3. That the proposed Schedules set forth in the attached Appendix B, which is incorporated and made part of this Resolution by this reference and made effective September 1, 2024.

Section 4. As of September 1, 2024, an updated copy of the VMUS Electric Service Rules, Regulations and Rates shall be retained at City Hall by the City Clerk and/or VMUS customer service, together with the currently existing version of the VMUS Electric Service Rules, Regulations and Rates adopted by Resolution 24-076, and shall be available for public inspection upon request.

Section 5. The City Clerk shall certify to the adoption of this Resolution. 104
Rule 1
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ATTAC
HMENT 1
to
Ordinance No. 2240 (Originally adopted on January 19, 2010) Victorville
Municipal Utility Services
Electric S
ervice Rules, Regulations and Rate Schedules
Electric Service Rules and Regulations
(Revised on June 18, 2013 per City Council Resolution No. 13-014 ) (Revised on August 1, 2017 per City Council Resolution No. 17-040) (Revised on
August 1, 2018 per City Council Resolution No. 18-044)
(Revised
on August 1, 2020 per City Council Resolution No. 20-053) (Revised
on October 1, 2022 per City Council Resolution No. 22-092) (Revised on September 1, 2024 per City Council Resolution No.24-076) 105
Attachment 1 – Table of Contents
Tabl
e of Contents
Victorville Municipal Utilities Services
P.O. Box 5001, Victorville, CA 92393-5001
Elect
ric Service Rules, Regulations and Rate Schedules
Electric Service Rule 1 - Definitions 1
Electric Service Rule 2 - Description of Electric Service 7 Electric Service Rule 3 – Application for Service 15
Electric Service Rule 4 - Contracts 18
Electric Service Rule 5 - Special Information Required on Forms 20 Electric Service Rule 6 - Establishment and Re-establishment of Service 22 Electric Service Rule 7 - Deposits 24
Electric Service Rule 8 - Notices 25
Electric Service Rule 9 - Rendering and Payment of Bills 26 Electric Service Rule 10 – Billing Discrepancies 29
Electric Service Rule 11 - Discontinuance and Restoration of Service 31 Electric Service Rule 12 - Rates and Optional Rates 34
Electric Service Rule 13 - Temporary Service 38
Electric Service Rule 14 – Variations in the Quality or Supply of Electricity 39 Electric Service Rule 15 - Line Extensions 41
Electric Service Rule 16 – Service Extensions 46
Electric Service Rule 17 - Adjustment of Bills and Meter Tests 57 Electric Service Rule 18 - Supply to Premises and Resale 61 Electric Service Rule 19 – Service Area 62
Electric Service Rule 20 – Utility Charges and Fees 63
Electric Service Rule 21 - Generating Facility Interconnections 66 Appendix A – Electric Service Rate Schedules (Tariffs)
Appendix B- Net Energy Metering Rate Schedule (Tariffs) 106
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Rule 1 – Definitions
For th
e purpose of these Tariff Schedules, the terms and expressions listed below shall have the meaning set forth opposite them:

Added
or Special Facilities: The facilities provided by the Utility at the request of the Customer or Applicant which are over and above the Utility’s standard facilities which the Utility would normally install or use and which represent additional costs to the Utility over normally installed facilities to provide electric service.

Applic
ant: The person requesting the Utility to supply electric service and/or to provide electric facilities required to serve any Premises.

Billin
g Demand: The load or demand used for computing charges under rate schedules based on the size of the customer’s load or demand. It may be the connected load, the measured maximum demand, or a modification of either, as provided for by applicable rate schedule.

Billin
g Period: The time interval between two consecutive meter readings that are taken for billing purposes.

Cabl
ing: Conductors (including cable -in-conduit, if used), connectors, switches, as required by the Utility for primary, secondary, and service installations. The total trench footage used for calculating cabling costs is determined by adding the total length of all new and existing trenching for the installation of underground primary and secondary Distribution Lines designed to supply two (2) or more services. (Excluding service trench footage under Rule 16).

City:

The City of Victorville.

City
Council: The City Council of the City of Victorville. The City Council is the governing body for the Utility.

Cit
y Manager: The City Manager of the City of Victorville.

Condu
it: Ducts, pipes, or tubes of certain metals, plastics or other materials acceptable to the Utility (including pull wires and concrete encasement where required) for the installation and protection of electric wires and cables.

Con
nected Load: The sum of the rated capacities of all of the customer’s equipment that can be connected to the Utility’s lines at one time as more completely described in the Rate Schedules. 107
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Contribution: In-kind services and the value of all property conveyed to the Utility at any time during the Utility’s work on an extension that is part of the Utility’s total estimated installed cost of its facilities, or cash payments.

Customer: The person in whose name service is rendered as evidenced by the signature on the application, contract, or agreement for that service, or, in the absence of a signed instrument, by the receipt and payment of bills regularly issued in such name regardless of the identity of the actual user of the service.

Customer’s Mailing Address: The address specified in a C ustomer’s application or contract, or any other address subsequently given to the Utility by the Customer, by which any notice or other communication is to be mailed.

Date of Presentation: The date upon which a bill or notice is mailed or emailed, or otherwise delivered by the Utility to the Customer.

Days: Any reference to days will be considered calendar days unless specified otherwise.

Director of Utilities : The Director of Utilities for the City of Victorville or their duly authorized designee. The Director of Utilities is responsible for the management and operation of the Utility for the businesses of the City of Victorville in accordance with these Rules, Regulations and Rate Schedules and any other such policies or direction adopted by the City Council.

Distribution Line(s): The Utility’s underground facilities that are operated at distribution voltages as set forth in the Utility’s Rule 2 and are designed to supply two (2) or more services.

Distribution Line Extension: A new distribution facility of the Utility that is a continuation of, or branches from, the nearest available existing permanent Distribution Line (including any facility rearrangements and relocations necessary to accommodate the Distribution Line Exten sion) to the point of connection of the last service.

Distribution System: Those distribution facilities owned, controlled, and operated by the Utility that are used to provide distribution service under the Tariff Schedules.

Excavation: All necessary trenching, backfilling, and other digging to install Distribution Line or Service Extension facilities, including furnishing of any imported backfill material and disposal of spoil as required, surface repair and replacement, landscape repair and replacement.

Feeder Conduit: Conduit for such uses as part of a backbone system to provide for future anticipated load growth and to provide the flexibility and versatility of modifying or supplying emergency backup power to the area involved.

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Line Extension: All facilities, excluding transformers , service connections, and meters required to extend electric service from the Utility’s existing permanent Distribution System to the point of delivery to the customer.

Mailed: Any notice or other communication will be considered “mailed” when it is enclosed in a sealed envelope, properly addressed, and deposited in any United States post office box, postage prepaid.

Maximum Demand : The average kilowatts during the specified time interval when the Customer’s use is greatest during the billing period as indicated or recorded by the Utility’s meter.

Meter: The instrument used for measuring the electricity delivered to the Customer.

Metering Facilities : The necessary meter, instruments , transformers, test facilities, data communication equipment, and other associated metering equipment.

National Electric Safety Code (NESC): Sets the ground rules and guidelines for practical safeguarding of utility workers and the public during installation, operation, and maintenance of electric supply, communication lines, and associated equipment.

Nominal Voltage : The nominal voltage of a circuit is the approximate voltage between conductors in a circuit or system of a given class, assigned for the purpose of convenient designation. For any specific nominal voltage, the operating voltage actually existing at vari ous points and at various times on the system is subject to normal distribution variation.

Payment: Cash payment made to the Utility prior to the initiation of any work done by the Utility under Rules 15 and 16.

Permanent Service: Electric s ervice, which in the opinion of the U tility, is of a permanent and established character. Permanent Service may be continuous, intermittent, or seasonal in nature.

Person: Any individual, partnership, corporation, public agency, or other organization operating as a single entity.

Point of Delivery: The point where conductors of the Utility are connected to the conductors of the Customer, regardless of the location of the Utility’s meters or transformers. Utility conductors may be owned, leased, or under license by the Utility, and the conductors of the customer may be owned, leased, or under license by the Customer.

Power Factor: The ratio of the revenue producing current in a circuit to the total current in that circuit. In terms of power quantities, power factor is the ratio of kW (real power) to the total kVA (total power).
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Power Service: Electric service to apparatus or equipment used for purposes other than lighting shall be considered as Power Service. Lamps or lights used for purposes, which in the opinion of the Utility, are not general illumination purposes are classed as P ower Service, such as the following: motion picture projection, motion picture and television production, production of chemical reactions, sterilizing, drying, radiant heating, therapeutic, photographic processing, stimulating the growth or yield of agricultural products, pilot or indicating lights on power control equipment, and lighting used as an aid in the operation of a motor -driven production machine for the purpose of checking tool settings or dial readings, measuring or inspecting the product while on the machine when the lamps are installed as an integral part of the machine and energized from its power supply.

Premises: All of the real property and apparatus employed in a S ingle Enterprise on an integral parcel of undivided land, except in the case of industrial, agricultural, oil field, resort enterprises, and public or Q uasi-public Institutions, by a dedicated street, highway, or other public thoroughfare, or railway. Automobile parking lots constituting a part of and adjacent to a S ingle Enterprise may be separated by an alley from the remainder of the Premises served.

Protective Structures: Fences, retaining walls (in lieu of grading), sound barriers, posts, or barricades and other structures as required by the Utility to protect distribution equipment.

Pull Box: An enclosure for joining conductors, which also provides by its size, arrangement, and location of the necessary facilities for pulling the conductors into place. This term as used here includes structures also known as “manhole,” “handhold,” and “switch board pull section.”

Quasi-public Institutions : Public utilities, educational institutions, and hospitals, whether publicly or privately owned, where the property, campus or hospital grounds extend over relatively large areas through which public streets may run.

Rate Charges: Charges in the Rate Schedules may include the following:

Added Facilities Charge: The fee collected by the Utility for the installation and use of A dded Facilities equipment.

Customer Charge: That portion of the charge for service that is a fixed amount without regard to connected load, demand, or energy consumption in accordance with the applicable Rate Schedule.

Demand Charge : That portion of the charge for service which varies with the billing demand in accordance with the applicable Rate Schedule.

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Energy Charge: That portion of the charge for service which varies with the quantity of energy consumed in accordance with the Rate Schedule.

Minimum Charge: The least amount for which service will be rendered in accordance with the applicable Rate Schedule.

Service Charge: That portion of the charge for service , which is a fixed amount based on connected load in accordance with the applicable Rate Schedule.

Rate Schedule: May be one or more tariff pages setting forth the charges and conditions for a particular class or type of service at a given location. A Rate Schedule, as referred to herein, shall include all the wording on the applicable Tariff Page or pages, including without limitation the following: Class of Service, Character or Applicability, Territory, Rates, Conditions, and reference to Rules.

Rules: Tariff P ages which set forth the application of all rates, charges and service when such applicability is not set forth in and as a part of the Rate Schedules.

Rules and Regulations: The Victorville Municipal Utility Services Electric Service Rules, Regulations and R ate Schedules set forth herein, including the Rate S chedules set forth in Appendix A. Also referred to as “Tariff Schedules”.

Service Delivery Point: Where the Utility ’s service facilities are connected to either Applicant ’s conductors or other service termination facility designated and approved by the Utility.

Service Wires or Connection s: The group of conductors, whether overhead or underground, necessary to connect the service entrance conductors of the Customer to the Utility’s Distribution System, regardless of the location of the Utility’s meters or transformers. Because the Utility is an underground utility, Service Wires or Connections are underground.

Service Extension: Consists of the Service Wires or Connections as above defined (including, but not limited to Utility -owned service facilities and Applicant -owned service facilities) extending from the point of connection at the Distribution Line to the Service Delivery Point.

Single Enterprise: A separate business or other individual activity carried on by a Customer. The term does not apply to associations or combinations of Customers.

Standby Service: Electric s ervice supplied to Customers who normally obtain their power requirements from sources other than the Utility. Under this service, the Utility provides a permanent service connection to supply the Customer’s contracted load in accordance with the provisions of the standby schedule.

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State Surcharge Tax : A surcharge tax imposed on all Customers, based upon the quantities of kilowatt-hours consumed and paid to the California Department of Taxes and Fee Administration.

Street Lighting Service: Electric service to any lighting apparatus used primarily for the illumination of streets, alleys, highways, or other public ways.

Substructures: The surface and subsurface structures which are necessary to contain or support the Utility ’s electric facilities. This includes , but is not limited to splice boxes, Pull Boxes, equipment vaults and enclosures, foundations or pads for surface-mounted equipment.

Tariff Page: An individual page of the Tariff Schedules.

Tariff Schedules: The entire body of effective rates, rentals, charges , and Rules collectively of the Utility, as set forth herein, including the Rate Schedules and these Rules.

Temporary Service: Electric service for enterprises or activities that are temporary in character or where it is known in advance that service will be of limited duration. Service, which in the opinion of the Utility, is for operations of a speculative character or the permanency of which has not been established, also is considered Temporary Service.

TOU: Time of Use.

Trenching: See Excavation.

Utility: The City of Victorville Municipal Utility Services.

Utility’s Operating Convenience: The term refers to the utilization, under certain circumstances, of facilities or practices not ordinarily employed which contribute to the overall efficiency of the Utility’s operations; it does not refer to C ustomer convenience nor to the use of facilities or adoption of practices required to comply with applicable laws, ordinances, rules or regulations or similar requirements of public authorities.

Violence: Types of violence include without limitation: death or injury with a weapon, inflicting bodily harm, allowing animals to attack, physically detaining an employee against their will, and/or tearing employee’s clothing.

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Rule 2 – Description of Electric Service

A. GENERAL

1. The character of service available at any particular location should be ascertained by inquiry at the Utility office.

2. The Rate Schedules included herein are applicable for service where the Customer purchases its entire electrical requirement from the Utility, except where such schedules specifically provide otherwise, and are not applicable where a part of the Customer’s electrical requirements are supplied from some other source.

3. The Rate Schedules included herein are applicable for service provided from the Utility’s permanent, existing Distribution System or in accordance with the provisions of Rules 15 and 16, except where schedules specifically provide otherwise.

4. Alternating current service of approximately 60-cycle frequency will be supplied.

5. Voltages referred to in the Tariff Schedules are nominal voltages and in some few instances, reasonable variations may occur.

6. Service will be supplied at one standard voltage for each class of service. Each service shall have a service main disconnecting device with an ampere rating equal to, or less than the ampere rating of the underground pull section and the service conductors. The total ampere rating of the service main disconnecting devices, including taps to the underground pull section shall be equal or less than the ampere rating of the service conductors.

B. PHASE AND VOLTAGE SPECIFICATIONS

1. Standard nominal voltages of the Utility are as follows:
a. Distribution voltages: 277/480, 4160, 6900 and 12,000 volts.

b. Voltages of 33,000 volts and higher are transmission voltages. For its operating convenience, the Utility may elect to supply a Customer from transmission voltage lines. In such case, the Customer may select as a standard delivery voltage one of the following:
2400, 4160, 6900, 12000 volts or such other voltage as the Utility may approve.

c. All Customer-owned utilization equipment must be designed and rated in accordance with utilization voltages specified by the American National Standard C84.1 for Customer equipment to perform satisfactorily.

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d. The utility system is designed and maintained to provide service voltage levels at the Customer’s main switch as specified by the American National Standard C84.1. The Utility has no control over the Customer’s utilization voltage that results from volta ge drop in Customer’s wiring.

e. While average voltages are maintained as described, it must be recognized that short term voltage excursions (transients) exceeding these levels can occur as the result of normal system operations (circuit stitching, motor start -up, etc.). Equipment containing microprocessors or other sensitive electronic components can be damaged or otherwise rendered inoperativ e by such transients. It is the Customer’s responsibility to determine the suitability of the supplied power and to provide any necessary power conditioning equipment.

2. Single-Phase Service

a. General

Voltage Minimum Load Required Maximum Load Allowed
120 volts None 1-15 amp and 1-20 amp
branch circuit
120/240 or 240 volts None 400 amp main switch
240/480 volts 15 kVa 200 amp main switch
2,400 volts or over Varies with location 40 amp main switch

b. The maximum size 120 -volt, single-phase motor allowed is 1 hp and the maximum size 240 volt or higher voltage, single-phase motor allowed is 10 hp.

3. Three-Phase Service

a. General

Voltage Minimum Connected
Load
Maximum Demand
Load Required
Switch
Maximum Main
240 volts 3 kVa 75kVa 400 A
120/208 volts 45 kVa 1000 kVa 4000 A
277/480 volts 45 kVa 3750 kVa 4000 A
12,000 volts*

* Contact the Utility.
b. Service to all loads of 1,000 -kVA maximum demand or over, must be approved by the Utility as to adequacy of facilities for service.

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c. Loads on three -phase service must be balanced between phases in accordance with good engineering practice.

d. Three-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above provided approval of the Utility first has been obtained as to the number and size of switches, circuits and related facilities.

Such service will be supplied from two separate service connections at one location from one transformer location. Energy so supplied will be measured through one meter. The loads will be balanced as closely as practicable between the services.

4. Combined Single-phase Service and Three-phase Service

a. Service may be supplied at 120/208 volts, four-wire, wye-connected where the Utility does not maintain four-wire secondary mains, provided (1) written application is made for such service by the Customer; (2) the Customer’s load is of such a size as to require an individual transformer installation of not less than 45 kVA when supplied from an underground system. Transformer capacity is based on load diversity as determined by the Utility; and (3) the Customer provides space acceptable to the Utility o n the premises to accommodate the installation of the Utility’s facilities.

b. Service may be supplied at 277/480 volts, four-wire, wye-connected where the Utility maintains 120/208 volt or 240 volt secondary polyphase mains, provided: (1) written application is made for such service by the Customer; (2) the Customer’s load is of such size as to require an individual transformer installation of 45 kVA when supplied from the underground system. Transformer capacity shall be based on load diversity as determined by the Utility; and (3) the Customer provides space acceptable to the Utility on the premises to accommodate the installation of the Utility’s facilities.

c. Service may be supplied at 120/240 volts, four- wire, delta- connected where the utility does not maintain four -wire secondary mains, provided: (1) the Customer’s load is of such a size as to require an individual transformer installation of not less t han 15 kVA of transformer capacity, as determined by the Utility and complies with paragraph 3b above, if applicable; (2) the unbalance between phases is less than 100 kW; (3) the Customer provides space acceptable to the Utility on the premises to accommodate the installation of the Utility’s facilities; and (4) maximum main switch capacity is 600 amps with 400 amp maximum fusing.

d. The maximum demand allowances for combined single -phase and three- phase are set forth in Section B.3.b above.

e. The minimum demand load for a three-phase pad-mounted transformer is 45 kVA for 120/208 volt service or 277/480 volt service.

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f. All three-phase circuits not exceeding 250 volts shall have either a phase or neutral grounded and a four -wire polyphase service run to the Customer’s service entrance main switch.

5. At the option of the Utility, the above voltage and phase specifications may be modified because of service conditions at the location involved.

C. MOTOR PROTECTION AND EQUIPMENT

1. Customer’s motor equipment must conform to the following requirements:

a. Motors that cannot be subjected safely to full rated voltage on starting, or that drive machinery of such a nature that the machinery itself, or the product handles will not permit the motor to resume to normal speed upon the restoration of normal supply voltage shall be equipped with devices that will disconnect them from the line upon failure of supply voltage and that will prevent the automatic reconnectio n of the motors upon restoration of normal supply voltage.

b. All motors of 1 hp or larger shall be equipped with thermal relays, fuses, or other automatic over-current interrupting devices to disconnect completely such motors from the line as a protection against damage due to overheating.

c. Three-phase motors driving elevators, hoists, tramways, cranes, conveyers or other equipment, which would create hazard to life in the event of uncontrolled reversal of motor rotation, shall be provided with reverse -phase and open-phase protection to dis connect completely the motors from the line in the event of phase reversal or loss of one phase.

d. Wind machines thermostatically controlled with automatic re -closing switches must be equipped with suitable time-delay devices, such as hereinafter specified, at the Customer’s expense, to permit the required adjustment of the time of re -closure after interruption of service.

2. A suitable time -delay device, within the meaning of this R ule, is a relay or other type of equipment that can be present to delay with various time intervals the re -closing of the automatic switches (and the consequent starting up of the electric motors on the wind machines) and to stagger the reconnection of the load on the Utility’s system, and such device must be constructed so as effectively to permit a variable overall time interval of not less than five minutes with adjustable time increments of not greater than ten seconds. The particular setting to be utilized for each separate installation is to be determine by the Utility from time to time in accordance with its operating requirements, and the Customer is to obtain from the Utility the setting for each installation as thus determined.

D. ALLOWABLE MOTOR STARTING CURRENTS
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1. The starting current drawn from the Utility’s lines shall be considered the nameplate locked rotor current or that guaranteed by the manufacturer.

At its option, the Utility may determine the starting current by test, using a stop ammeter with not more than 15 percent overswing or an oscillograph, disregarding the value shown for the first ten cycles subsequent to energizing the motor. If the starting current for a single motor exceeds the value stated in the following tables, reduced voltage starting or other suitable means must be employed, at the Customer’s expense, to limit the current to the value specified, except where specific exemptions are provided in Sections D.2, 3, and 4.

TABLE 1
Alternating Current – Single-Phase Motors
Allowable Locked Rotor Currents

TABLE 2
Alternating Current – Three-Phase Motors
Allowable Locked Rotor Currents

Rated Size 240 Volts 480 Volts 2400 Volts
3 hp 64 amperes 32 amperes
5 hp 92 amperes 46 amperes
7-1/2 hp 127 amperes 63 amperes
10 hp 162 amperes 81 amperes
15 hp 232 amperes 116 amperes
20 hp 290 amperes 145 amperes
25 hp 365 amperes 183 amperes
30 hp 435 amperes 218 amperes
40 hp 580 amperes 290 amperes
50 hp 725 amperes 363 amperes 70 amperes
60 hp 435 amperes 87 amperes
75 hp 535 amperes 107 amperes
100 hp 725 amperes 142 amperes
Over 100 hp – The Utility should be consulted for allowable locked rotor currents.

Rated Size 120 Volts 240 Volts
1 hp and less 50 amperes 36 amperes
1-1/2 hp 48 amperes
2 hp 60 amperes
3 hp 80 amperes
5 hp 120 amperes
7-1/2 hp 170 amperes
10 hp 220 amperes
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2. Where service conditions permit, subject to Utility approval, reduced -voltage starters may be omitted in the original installation until such time as the Utility may order the installation of a reduced -voltage starter to be made, and, similarly, the Utility may at any time require starting current values lower than set forth herein where conditions at any point on its system require such reduction to avoid interference with service.

3. Reduced-voltage starters may be omitted on any motor of a group installation provided that its starting current does not exceed the allowable starting current of the largest motor of the group.

4. A reduced-voltage starter may be omitted on any motor in a group installation provided that its starting current does not exceed three times the maximum demand in amperes of the entire installation.

E. PROTECTIVE DEVICE COORDINATION

Customer’s protective relays, fuses, circuit breakers and other protective devices must comply with the following requirements:

1. All Customer protective device operating times and circuit breaker trip element upper-bound trip times shall be a minimum of 0.25 seconds (15 cycles) less than the trip time of the Utility’s feeder protective relay settings for all current values between the Customer service entrance rating and the maximum available fault current.

2. All Customer fuse maximum fault -clearing times shall be a minimum of 0.30 seconds (18 cycles) less than the trip time of the utility feeder protective relay settings for all current values between the Customer service entrance rating and the maximum available fault current.

3. Three-phase service Customers shall submit protective device characteristics and/or relay calibration data to the Utility for approval prior to establishment of service.

F. INTERFERENCE WITH SERVICE

1. Customers who operate equipment that causes detrimental voltage fluctuations (including without limitation , hoists, welders, radio transmitters, X- ray apparatus, elevator motors, compressors, and furnaces) must reasonably limit such fluctuations upon request by the Utility. The Customer will be required to pay for whatever corrective measures are necessary.

2. In the case of arc furnace installations not in excess of 100 kVA single -phase, or 300 kVA three-phase, the Utility may furnish energy at 240 or 480 volts, providing the Customer permanently installs suitable equipment to limit secondary short -circuit current values to 300 118
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percent of full load value. In the case of arc furnace installation in excess of 100 kVA, single-phase, or 300 kVA three-phase, the Utility may require the Customer to provide, at their own expense, special furnace type transformers and reactors sufficient to limit secondary short-circuit current values to 300 percent of full load value. In such cases, the Utility shall furnish energy at standard voltages over 5,000 volts.

3. Any C
ustomer who superimposes a current of any frequency upon any part of their electrical system, other than the current supplied by the Utility, shall at their own expense, prevent the transmission of such current beyond their electrical system.

G. POW

ER FACTOR
The
Utility may require the Customer to provide, at their own expense, equipment to correct the Customer’s operating power factor to between 90 percent lagging and 90 percent leading.

H. WAVE
FORM
The U
tility may require that the wave form of current drawn by equipment of any kind be in conformity with good engineering practice.

I. ADD

ED FACILITIES
Added
or Special F acilities are considered to be existing, enlarged, or new facilities installed and/or used by the Utility at the Customer’s request in addition to, as enlargements of, as alternate to, or in substitution for, the standard facilities that the Utility would normally install or use, and which represent additional costs to the Utility over normally installed facilities. Except where provided otherwise by Rate Schedule, installation of A dded Facilities will be made, provided the type of Added Facilities requested is acceptable to the Utility and the Utility agrees to the installation of the Added Facilities, under the following conditions:

1. The
Applicant for Added Facilities is also an Applicant for permanent electric service or is a Customer for permanent electric service at same location.

2. The A
pplicant/Customer execute s an Added Facilities C ontract (“AF Contract”) with Utility prior to the installation of the Added Facilities. In addition to providing for the payment of charges as determined under the appropriate schedule, the AF Contract will provide for one of the following conditions:
a. Prior
to the Utility installing Added Facilities, the
Applicant/Customer shall pay the Utility for the Added Facilities and the cost of the installation of such facilities. Thereafter, the Customer shall pay a monthly charge for the Added Facilities in an amount determined by the Utility based upon any maintenance as described in the AF Contract.
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b. Prior
to the Utility installing A dded Facilities, the
Applicant/Customer shall agree to pay a monthly charge to the Utility for the Added Facilities in the amount determined by the Utility based upon the added investment and maintenance of the facilities as described in the AF Contract.

3. In the
event that the A dded Facilities are abandoned prior to five years from the date service is first rendered from the A dded Facilities, the Utility will charge the Applicant/Customer the balance owed on the cost of the installed Added Facilities, plus the cost of removal, less the estimated salvage of removable materials.

All
monthly charges shall be reviewed and readjusted when changes occur in the Utility’s cost for providing such service.

J. MET
ERING FACILITIES AS ADDED FACILITIES.

Met
ering Facilities that meet the definition of Added Facilities will be installed, owned, and maintained under the terms of and conditions of an AF Contract between the Utility and the Customer.
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Rule 3 – Application for Service
A. APP

LICATION FOR SERVICE
Eac
h Applicant for electric service may be required to sign an application on a form provided by the Utility and, upon request, will be required to furnish the following information:

1. Name o
f Applicant.

2. Date of application.

3. Location of Premises to be served.

4. Date applicant will be ready for service.

5. Purpose for which service is to be used.

6. Customer’s mailing address.

7. Whether applicant is owner or tenant of, or agent for the Premises.

8. Information to establish credit of applicant.

9. Information pertinent to the design, installation, maintenance or operation of facilities.

10. Such other information as the Utility may reasonably require.

The a
bove information may be supplied by the Applicant either in writing or telephone if the Applicant’s signature is not required as specified in Rule 20.

Upon a
cceptance and approval of the application, the Utility agrees to furnish and the Applicant agrees to take electric service in accordance with the Utility’s applicable Rate Schedule and the Rules and Regulations set forth herein. These Rules, Regulations and Rate Schedules constitute the terms and conditions of the agreement between the Utility and the Applicant/Customer for electric service provided by the Utility, unless agreed otherwise in writing.

The U
tility may disconnect or refuse to provide service to the Applicant if the conditions upon the Applicant’s Premises indicate that false, incomplete, or inaccurate information was provided to the Utility or the acts of the Applicant or anyone on the P remises creates an unsafe situation for the City’s employees. The Utility shall provide the Applicant the reason for such refusal.

B. INDIV

IDUAL LIABILITY FOR JOINT SERVICE
Two or
more persons who join in one application or contract for service shall be jointly and severally liable thereunder and shall be billed by means of a single periodic bill mailed to the person designated on the application to receive the bill. 121
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C. CHANGE IN CUSTOMER’S EQUIPMENT OR OPERATIONS
Cus
tomers shall give the Utility written notice of the extent and nature of any material change in the size, character , or extent of the utilizing equipment or operations for which the Utility is supplying service before making any such change.

D. SERV

ICE CONNECTION CHARGE

1. The
Utility will charge a service c onnection charge for any service(s) established (connected) at any individual Premises.

2. The
service connection charge provided for herein is in addition to the charges in accordance with the applicable Rate S chedule (see Appendix A) and may be charged each time an account is established. As used herein, “established” means each time an account is opened, including a turn on of electric service or a change of name that requires a meter reading.

3. In th
e event the Customer places a request for electric service to be established on a day when the maximum workload has been scheduled, an additional connection charge will be made.

4. The s
ervice c onnection charge is not applicable to Customers of the Utility to service rendered through submeters to tenants.

5. Rule
20 contains the above-referenced charges.

E. E-MAIL

AS A MEANS OF CUSTOMER CONTACT
When a
Customer provides an e-mail address to the Utility as a means of contact, the Utility may use such e -mail address to communicate with the C ustomer, absent instructions from the Customer to the contrary.

F. TEL

EPHONE AS A MEANS OF CUSTOMER CONTACT
When
a customer provides a telephone number – mobile (i.e. cellular telephone) or landline - to the Utility as a means of contact, the Utility may use such telephone number to communicate with the Customer, absent instructions to the contrary. The C ustomer of record (i.e. the person in whose name service is rendered, as defined in Utility’s Rule 1, “Customer” definition) is presumed to be an authorized user of such telephone number, absent information provided by the Customer to the contrary. By providing a mobile number, absent instructions to the contrary, the Customer expressly consents to receiving calls or text messages (texts) from the Utility to such mobile number, including through an automatic telephone dialing system and/or an artificial voice or prerecorded message, for:
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1. Emergency purposes, which includes without limitation calls or texts providing notice of and status updates on planned and unplanned outages, calls or texts providing 24 or 48 hours’ notice of credit or non- credit related service disconnections, and other types of calls or texts made necessary in any situation affecting the health and safety of consumers; and

2. Infor
mational purposes, which includes without limitation calls or texts regarding credit or non-credit related service disconnections outside the 24 or 48 hour emergency window, non-emergency outage related calls or texts, calls or texts providing information on new rates, rate changes, available rate options, and service related account matters; and

3. The U
tility will honor Customer requests to opt-out of receiving calls or texts from the Utility at such mobile number, except under certain emergency circumstances (at the Utility’s sole discretion) or as otherwise authorized under the Utility’s Tariffs. 123
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Rule 4 - Contracts
A. WHEN

SERVICE CONTRACTS ARE REQUIRED
Servic
e contracts may be required by the Utility as a condition precedent to establishment of service:

1. Wher
e required by provisions contained in the Tariff Schedules, in which case the terms and conditions of the Tariff Schedules and the service contract will both apply (with the terms and conditions of the service contract governing in the event of a conflict); or

2. Whe
re it is necessary to install a Line Extension in excess of a normal installation, in which case a contract to take or pay for service for a period of three (3) years may be required; except, when Temporary Service is to be supplied under the provisions of Rule 13 . The contract to take or pay for service will cover the period of contemplated operations, but in no event longer than a period of three (3) years.

B. WHEN

FACILITIES CONTRACTS ARE REQUIRED

1. A con
tract or agreement to pay for the use, construction, installation or removal of facilities (“Facilities Contract”) will be required:
a. Wher
e the provisions of the Tariff Schedules or these Rules (including, without limitation Rules 2, 15 and 16) so specify, in which case the terms and conditions of the Tariff Schedules and the appropriate Facilities C ontract will both apply (with the terms and conditions of the Facilities Contract governing in the event of a conflict); or b. Whe
re any Applicant or Customer desires new or increased distribution facilities for Temporary Service, in which case the Utility may require such person to pay to the Utility, in advance or otherwise, the estimated installation cost, plus the estimated cost of removal, less the estimated salvage of the facilities necessary to provide and deliver service in accordance with provisions of Rule 13; or
c. Whe
re a person, whether or not a Customer, desires to have the U tility modify, rearrange, relocate, or remove any of its facilities . The Utility, if it agrees to make such changes, shall require the person at whose request the changes are made, to pay, in advance or otherwise, the cost to the Utility of making the changes.

2. Pri
or to the commencement of any facilities construction, installation, removal, modification, rearrangement or relocation work (whether such work is to be performed by the Applicant, the Utility or both the Applicant and the Utility), all Applicants/Customers shall be required to execute a Facilities Contract in the form provided by the Utility. Such Facilities Contracts will specify the costs, payment arrangements, division of labor and/or responsibilities, 124
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design requirements, equipment, conveyance of ownership of facilities, contractor qualifications, and such other terms and conditions as the Utility may require. 125
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Rule 5 – Special Information Required on Forms

A. UTILITY BILL

The following statements will be printed on each utility bill:

1. “Bill is due upon receipt.”

2. “PROCEDURES FOR PROCESSING PAYMENT OF DISPUTED UTILITY BILL

Should you have a question regarding this bill, please request an explanation from the Utility, within ten (10) business days after receiving the bill. Your request may be made by telephone (760-243-6340) or in writing (Customer Service Representative, Utility Services Department, P.O.

Box 5001, Victorville, CA 92353-5001). If after you receive the explanation from Customer Service (which explanation may be given in writing or by telephone depending on the manner in which the request was made ), you still be lieve you have been billed incorrectly, you have ten (10) business days from the date you receive the explanation from Customer Service to send your entire remittance (payable to the City of Victorville) with the bill and a written statement setting forth the reasons why you believe the bill is not correct to the Director or designee , City of Victorville, P.O. Box 5001, Victorville, California 92353 -5001, to avoid discontinuance of service.

Upon timely receipt of the written statement, the Director or desig nee will review the basis of the billed amount and communicate the results of the review and decision to you in writing. If the matter is not satisfactorily resolved by the Director or designee, you may request a review by the City Manager by sending a written statement to: City Manager, City of Victorville, P.O. Box 5001, Victorville, California 92393 -5001, within five days after receiving the decision of the Director or designee. Upon timely receipt of this written statement, the City Manager will make their determination and communicate said determination to you in writing. If you are not satisfied with the findings of the City Manager, you may appeal to the City Council using the procedure set forth in Section G of Rule 10. In the absence of a timely filed appeal, the decision of the Director or designee will be final.”
B. DISCONTINUANCE OF SERVICE NOTICE (48-Hour Final Notice)

The following statements will be printed on each discontinuance of service notice:

“If payment is not received by 5:00 p.m. on the date shown above, your service may be disconnected without further notice . Full payment of the bill, plus any reconnection charges, will be required prior to any restoration of services. A deposit may be required to reestablish your credit, whether or not service is disconnected for non-payment.”

“Tampering with meter or unauthorized breaking of seal constitutes a misdemeanor.

Charges for equipment replacement must be paid in advance of restoring the service.”

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C. DEPOSIT RECEIPTS

Each receipt for a cash deposit to establish or reestablish credit for service will contain substantially the following statements:
“Upon discontinuance of service, the Utility will refund the C ustomer's deposit or the balance in excess of any unpaid bills. After the Customer has paid bills for electric service before becoming past due for twelve months, the Utility will refund the deposit by applying it to the customer's unpaid bills or by check. Endorsement of a refund check will constitute acknowledgement of receipt of refund and release the Utility from any further claims against the deposit covered by this receipt.”
D. RULE 20 CONTAINS THE ABOVE REFERENCED CHARGES.

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Rule 6 – Establishment and Reestablishment of Service

A. ESTABLISHMENT OF CREDIT – ALL CLASSES OF SERVICE

Each Applicant for electric service will be required to satisfactorily establish credit, which will be deemed established upon qualifying under any one of the following:

1. If Applicant makes a cash deposit to secure payment of bills for service in the amount prescribed in Rule 7; or

2. If Applicant has been a Customer of the Utility for a similar type of service within the past two years, service was not disconnected due to non- payment or theft of service, any closing bill was paid within 30 days of the date of issuance, and the last twelve consecutive billing periods of that prior service reflected a credit rating of “Good ” (no more than one Final Notice), provided that the periodic bill for such previous service was equal to at least 50 percent of that estimated for the new service and provided further, that the credit of the applicant is unimpaired in the opinion of the Utility; or

3. If Applicant furnishes an acceptable alternative to a cash deposit, namely a certificate of deposit, or an irrevocable standby letter of credit, in an amount equal to or greater than the required deposit; or

4. If Applicant’s credit is otherwise established to the satisfaction of the Utility.

B. RE-ESTABLISHMENT OF CREDIT – ALL CLASSES OF SERVICE

1. An Applicant who previously has been a Customer of the Utility and whose service has been discontinued by the Utility one or more times during the past twelve (12) billing periods of that prior service because of nonpayment of bills, may be required to reestablish credit by depositing the amounts prescribed in Rule 7 for that purpose.

2. An Applicant who previously has been a Customer of the Utility and who failed to pay its closing bill within 30 days of the Date of P resentation may be required to re -establish credit by depositing the amounts prescribed in Rule 7 for that purpose.

3. A Customer who fails to pay bills before they become past due as prescribed in Section B of Rule 11, and further fails to pay such bills by the date indicted on a discontinuance of service notice for nonpayment of bills, may be required to pay said bills and re-establish credit by depositing the amount prescribed in Rule 7. This rule will apply regardless of whether or not service has been discontinued for such non-payment.

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4. A Customer may be required to re-establish credit in accordance with Section A of Rule 6 in case the conditions of service or basis on which credit was originally established have, in the opinion of the Utility, materially changed.
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Rule 7 – Deposits

A. GENERAL

Deposits will be required when a Customer is otherwise unable to satisfactorily establish or re - establish credit as set forth in Rule 6.

B. AMOUNT OF DEPOSIT

The amount of deposit required to establish or re-establish credit for electric service is twice the maximum monthly bill as estimated by the Utility , but in no case shall the amount be less than the minimum deposit as set forth in Rule 20.

In the event that a Customer of the U tility has diverted electricity, a separate deposit shall be assessed. This deposit shall be twice the amount of the estimated loss to the Utility resulting from the diversion; but in no case shall the amount be less than the Minimum Diversion Deposit as set forth in Rule 20.

C. RETURN OF DEPOSIT

1. Upon discontinuance of service, the Utility will refund the Customer’s deposit or the balance in excess of the unpaid bills for service, except the City shall not be required to refund any advanced deposit balance where the cost to the City for processing such refund, which is herewith determined to be five dollars ($5.00) exceeds said advanced deposit balance.

2. After the Customer has paid bills for service for 12 months and has maintained a “Good” credit rating (no more than one Final Notice), or after 24 months and has maintained a Fair credit rating (no more than two Final Notices), or has an otherwise unimpaired credit rating the Utility will refund the deposit. If the Customer fails to meet the criteria for return of the deposit, the deposit will be held by the Utility until the Customer meets the criteria described above.

3. The Utility may return the deposit at any time upon request, provided the Customer’s credit may otherwise be established in accordance with Rule 6.

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Rule 8 – Notices
A. NOTIC

ES TO CUSTOMERS
When
notices from the Utility to a Customer are required, they will normally be given in writing, either mailed or e-mailed to the address specified in the Customer’s application for service or to any address subsequently specified by the Customer or delivered to him or posted in the local newspaper of record, except that in emergencies, the Utility may give notices in the manner most suitable under the existing conditions (telephone, etc.) Whe
re electric service is provided through a master meter, the Utility shall make every good faith effort to inform the actual users of the electric services when the account is in arrears that service will be discontinued in fifteen (15) days. A 10-day notice stating that service shall be discontinued shall be posted at the Premises by the Utility not more than five (5) days after the 15-day notice of discontinuance is mailed to the Customer of record. These notices shall also inform the actual users that they have the right to pay the amount due on the account in order to maintain service without interruption.

B. NOTIC

ES FROM CUSTOMERS
Noti
ces from a Customer to the Utility may be given by written communication mailed to the Utility’s office, or may be given orally by the Customer or the Customer’s authorized agent at the Utility’s office except when written notice is specifically requir ed in T ariff Schedules or in any written agreement.
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Rule 9 – Rendering and Payment of Bills

A. RENDERING OF BILLS

1. Billing Period.

Bills for electric service will be rendered monthly or as otherwise provided in the Tariff Schedules.

2. Metered Service.

a. Bills for metered service will be based on meter registrations. Meters will be read remotely as required for the preparation of regular bills, opening bills and closing bills.

b. If for any reason (other than a remote-reading failure that is caused by the Utility) a manual meter read must be provided to a Customer in order to render a bill, the Customer shall pay a charge for that service.

c. If, because of unusual conditions or for reasons beyond the Utility’s control, the Utility is unable to read the meter on the scheduled reading date, the Utility may bill the Customer and/or those deriving the benefit of service, for estimated consumption during the billing period and make any necessary corrections when a reading is obtained.

Estimated consumption for this purpose will be calculated considering the Customer’s prior usage, the Utility’s experience with other Customers of the same general characteristics of the Customer’s operations. Adjustments for any underestimation or overestimation of a Customer’s consumption will be reflected on the first regularly scheduled bill rendered and based on an actual reading following any periods when estimation was required.

When a service start date can be reliably estimated, the undercharge can be computed back to that date, exclusive of Rule 17. Access to the meter, shall be provided by the Customer as a prerequisite to the Utility making any adjustment of consumption billed on an estimated basis.

3. Unmetered Service.

A flat rate may be applied upon request (in writing) where the applicant for service has a fixed connected load to be operated over a fixed number of hours during a billing period and where the following conditions are met:

a. Provision has been made to prevent any additional consumption on the service.

b. The point of interconnection of the service is approved by the Utility. 132
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c. Such service may be supplied under any appropriate Rate Schedule at the Utility’s Operating Convenience and all conditions of the Rate Schedule shall apply, including the Power Cost Adjustment.

4. Pro Rata Computation.

All bills for electric service rendered will be computed in accordance with the applicable T ariff Schedule, but for other than a monthly billing period, the amount of the Customer service demand or minimum charge, specified therein, will be prorated on the basis of the ratio of the number of days service has been rendered to the number of days in the month, unless otherwise provided in the Tariff Schedules.

5. Electronic Billing.

A bill presentment method that allows customers to receive and view bills electronically. All charges that would have appeared on the paper bill, along with all legal and mandated notices are provided with the electronic bill. However, all discontinuation of service notices are delivered separately in accordance with the provisions of Rule 8 and Rule 11.

6. Rule 21 addresses additional billing information related to Net Energy Metering,

B. READINGS OF SEPARATE METERS NOT COMBINED

For the purpose of billing, each meter upon the Customer’s premises will be considered separately and the readings of two, or more meters will not be combined, except as follows:

1. Where combinations of meter readings are specifically provided for in the Tariff Schedules.

2. Where the Utility’s Operating Convenience requires the use of more than one meter.

C. PAYMENT OF BILLS

1. All bills are due upon receipt and are considered past due if not paid within nineteen (19) days of the Date of P resentation. Accepted methods of payment include checks sent via the U.S. Mail to the address on the payment stub: checks, money orders or cash paid at the City of Victorville, Finance Department, or any other means mutually agreeable to the Utility and the Customer.

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2. Bil ls for connection or reconnection of service and payments for deposits or to reinstate deposits as required under the rules of the Utility shall be paid before service will be connected or reconnected.

D. RETU

RNED CHECK CHARGE
The
Utility may require payment of a returned check charge as contained in Rule 20.

E. FUND

VERIFICATION FEE
A Fund
Verification Fee may be charged to Customers paying by personal check if the Utility deems it necessary to verify that the Customer has sufficient funds in their account when: the Customer has been disconnected for non -payment of service or has a history of non -sufficient funds in their account.

F. LATE

PAYMENT CHARGE
A late
payment charge as contained in Rule 20 may be applied to the total unpaid balance of a Customer account if the Customer's payment is not received by the date indicated on the Customer account bill or summary bill.

G. RULE
20 CONTAINS THE ABOVE REFERENCED FEES AND CHARGES.
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Rule 10 – Billing Discrepancies

A. Customers who feel that their bill is in error will first contact Customer Service by phone or in writing within ten (10) business days after receiving the bill to attempt to resolve the disputed bill. Failure to do so will authorize discontinuance of service in accordance with Rule 11.

B. If, after contact with Customer Service, the Customer believes the bill is still incorrect, the Customer must, within ten (10) business days after receiving the explanation from Customer Service, send their remittance for the entire amount of the disputed bill (payable to the City of Victorville) along with a written statement setting forth the reasons why the Customer believes the bill is incorrect to the Director or designee , P.O. Box 5001, Victorville, CA 92353 -5001. The explanation from Customer Service shall be provided in writing if the Customer makes a written inquiry and by phone if the Customer makes their bill inquiry by phone.

C. Failure of the Customer to file a written statement with the Director or designee within ten (10) business days after receipt of the explanation from Customer Service will constitute acceptance by the Customer of the bill as rendered, and authorize discontinuance of service in accordance with Rule 11.

D. Upon timely receipt of the written statement, the Director or designee will review the basis of the billed amount, and communicate the results of the review and decision to the Customer in writing.

E. If, before completion of the review by the Director or designee, additional bills become due that the Customer wishes to dispute, the Customer will not be required to file the dispute with Customer Service, as stated in Rule 10.A. above, but will be required to send their remittance (payable to the City of Victorville) for the entire amount of the additional bills disputed to the Director or designee and file additional written statements within ten (10) business days after receipt of such bills setting forth the reasons why the Customer believes the additional bills are incorrect. Failure to do so will authorize discontinuance of service in accordance with Rule 11.

F. If the billing dispute is not satisfactorily resolved with the Director or designee , the Customer may request a review by the City Manager by sending a written statement to: City Manager, City of Victorville, P.O. Box 5001, Victorville, California 92393 -5001, within five (5) business days after receiving the written decision of the Director or designee . Upon timely receipt of this written statement, the City Mana ger will make their determination and communicate said determination to the Customer in writing.

G. If the Customer is not satisfied with the findings of the City Manager, the Customer may appeal to the City Council. The appeal must be submitted in writing to the Victorville City Clerk, together with the reasons for the dispute within ten (10) business days following mailing of the City Manager’s determination. In the absence of a timely filed appea l, the City Manager ’s 135
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determination will be final. Upon receipt of a timely appeal, the matter will be reviewed by the City Council within 45 days of receipt. A written decision of the City Council shall be delivered to the Customer by personal delivery or certified mail with in fifteen days following the appeal hearing.

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Rule 11 – Discontinuance & Restoration of Service
A. PAS

T DUE BILLS
Bills re
ndered will be considered past due if not paid within nineteen (19) days after Date of Presentation.

B. DISC

ONTINUANCE OF SERVICE/SHUT OFF NOTICE
A Cus
tomer’s service may be discontinued for nonpayment of a bill for service previously rendered to such Customer at any location served by the Utility , if such bill is not paid within fifteen (15) days after a notice is em ailed to Customer advising that present service will be discontinued for nonpayment of such bill for prior service.

C. NON

PAYMENT OF BILLS

1. Whe
n a bill for electric service has become past due and an overdue notice and final notice have been issued, service may be discontinued if the bill is not paid within the time required by such notice. A charge will be assessed if 48-hour notification is delivered.

2. Any C
ustomer who contests a bill, and has initiated a complaint or requested an investigation within ten (10) business days of receiving said bill shall not have service discontinued for nonpayment during the pendency of an investigation by the Utility of such Customer’s dispute or complaint , provided the Customer also keeps current the account for electric services as charges accrue in each subsequent billing period. Services shall not be discontinued for nonpayment for any Customer complying with an a mortization agreement (payment plan) entered into with the Utility, provided the Customer also keeps current the account for electric services as charges accrue in each subsequent billing period. If a Customer fails to comply with an amortization agreement, the Utility will give a seven -day (7- day) discontinuance of service notice before discontinuing services, but such notice shall not entitle the Customer to further investigation by the Utility.

3. If a
Customer is receiving more than one service, any or all services may be discontinued when any service, regardless of location, is discontinued for nonpayment.

4. Und
er no circumstances may service be discontinued for nonpayment of a bill to correct previously billed incorrect charges for a period in excess of the preceding three months, unless such incorrect charges have resulted from the Customer not abiding by th e Tariff Schedules.

5. Bills c
ollected on the Premises by a field U tility representative shall include a collection fee which is contained in Rule 20.
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6. On a ny Saturday, Sunday, legal holiday recognized by the City, or at any time during which the business office of the City is not open to the public, service will not be discontinued by reason of delinquency in payment for electric services.

D. UNSA

FE EQUIPMENT
The U
tility may refuse or discontinue service to a Customer if any part of the Customer’s wiring or other equipment, or the use thereof, shall be determined by the U tility to be unsafe or in violation of applicable laws, ordinances, rules or regulations of public authorities, or if any condition existing upon the Customer’s Premises shall be thus determined to endanger the Utility’s service facilities, until it shall have been put in a safe condition or the violation remedied.

If t
here is an imminent service disconnection, the Utility may contact the Customer by telephone (including calls or text messages to mobile phones) under the emergency purpose provision described in Rule 3.F., or by e-mail when appropriate.

The
Utility does not assume any responsibility of inspecting or repairing the Customer’s wiring or other equipment or any part thereof and assumes no liability therefore.

E. SERV

ICE DETRIMENTAL TO OTHER CUSTOMERS
The U
tility will not provide service to utilizing equipment, the operation of which will be detrimental to the service of the Utility or its other Customers, and will discontinue electric service to any Customer who shall continue to operate such equipment after having been given notice by the Utility to cease so doing.

F. UNAUT

HORIZED USE
The U
tility may discontinue service if the acts of the Customer or the conditions upon the Customer’s Premises indicate intent to deny the Utility full compensation for services rendered, including, but not limited to, tampering or unauthorized use. Discontinuance of service for nonpayment of a bill for unauthorized use shall be in accordance with the provisions of Section

11.B of this Rule , “Discontinuance of Service/Shut Off Notice .” A fee will be collected for the investigation of acts of unauthorized use or tampering, as referenced in Rule 20.

G. FAIL

URE TO ESTABLISH OR RE-ESTABLISH CREDIT
If, fo
r an Applicant’s convenience, the Utility should provide service before credit is established or should continue service to a Customer when credit has not been re-established in accordance with Rule 6, and the Customer fails to establish or re-establish credit, the Utility may discontinue service.
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H. NONCOMPLIANCE

Except as otherwise specifically provided in this Rule 11, the Utility may discontinue service to a Customer for noncompliance with Tariff Schedules, if, after written notice of at least five (5) days, the Customer has not complied with the notice. The Utility may dispense with the giving of such notice in the event there exists, in the Utility’s opinion, a dangerous condition thus rendering the immediate discontinuance of service to the premises imperative.

I. CUSTOMER’S REQUEST FOR SERVICE DISCONTINUANCE

When a Customer desires to terminate responsibility for service, the Customer shall give the Utility not less than two (2) days’ notice of this intention, state the date on which the Customer wishes the termination to become effective, and provide the Utility with the address to which the closing bill should be mailed. A Customer may be held responsible for all service furnished at the Premises until two (2) days after receipt of such notice by the Utility or until the date of termination specified in the notice, whichever date is later.

J. RESTORATION – RECONNECTION CHARGE (SERVICE CALL FEE)

The Utility will require payment of a reconnection charge for each incident in which the service(s) were disconnected before restoring service that has been disconnected for nonpayment of bills or for failure otherwise to comply with Tariff Schedules. If s ervice(s) has been illegally restored or damaged due to tampering, the Customer must pay all damage charges prior to reconnection.

The Customer and/or beneficiary of service are responsible for all damage charges whether or not service is reconnected.

If the Customer requires service on a day when maximum workload has been scheduled, an additional charge will be made.

K. UNSAFE ENVIRONMENT

If the Customer or anyone on the premises inflicts Violence, as defined in Rule 1, or threatens with present ability to inflict Violence upon an employee of the Utility or its subcontractors, the Utility may discontinue service to a Customer after written notice of at least five (5) days. The discontinuance of service may be avoided if the Customer agrees to meet with the Director or designee and/or law enforcement and the Customer agrees to cease engaging in any act (s) of Violence.

L. RULE 20 CONTAINS THE ABOVE REFERENCED FEES AND CHARGES. 139
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Rule 12 – Rates and Optional Rates

A. EFFECTIVE RATES

The rates charged by the Utility for electric service are those on file with the Utility, and legally in effect. A copy of the complete Tariff Schedules, as filed with the Utility, shall be maintained for public inspection on the Utility’s website.

B. OPTIONAL RATES

1. Where there are two or more R ate Schedules, rates, or optional provisions applicable to the class of service requested by the Applicant, the Utility or its authorized employees will call to Applicant’s attention, at the time application is made, the several schedules, and the Applicant must provide the estimated Billing Demand . When the Customer notifies the Utility of any material change in the size, character, or extent of their utilizing equipment or operations, in accordance with Section C of Rule 3, the Utility will, within a reasonable time, advise the Customer of the resulting rate. In the absence of the Notification provided for in Section C of Rule 3, the Utility assumes no responsibility for advising the Customer of lower optional rates under other existing schedules, rates, or optional provisions available as a result of the Customer’s changes in equipment or operations.

2. When an Applicant for new service has applied for service under a mutually agreed upon Rate Schedule, the R ate Schedule will remain in effect for a minimum of three (3) billing periods to determine the accuracy of the application of the rate.

C. NEW OR REVISED RATES

Should new or revised rates be established after the time application is made, the Utility will, within a reasonable time, use such means as may be practicable to bring them to the attention of those of its Customers who may be affected thereby.

D. CHANGE OF RATE SCHEDULE

1. A change to another applicable Rate Schedule, rate, or optional provisions will be made only or where, in the opinion of the Utility, another Rate Schedule is more applicable.

2. Should a Customer so elect, the Rate Schedule change will be made, provided:

a. A change has not been made effective during the past 12 -month period; or
b. The change is made to, or from, a new or revised Rate Schedule; or

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c. There has been a change in the Customer’s operating conditions for that service which, in the opinion of the Utility, justifies the change; and d. The change is not made more often than once in any twelve-month (12 month) period where service is being supplied under a Rate Schedule containing an annual fixed charge or an annual minimum charge; and

e. The Customer has made the request by written notice to the Utility.

3. The change will become effective for the billing period during which the Customer has requested the change and is not subject to a retroactive adjustment except when such change is the result of a Utility error, in accordance with Rule 17 C.1.

E. POWER COST ADJUSTMENT FACTOR (PCAF)
The PCAF is a charge per kWh which is used to adjust the Utility’s electric rates for the actual cost of purchasing and generating electric power and energy to service the Utility ’s Customers and minimizes fluctuations in rates.

The energy charge per kWh in each Rate Schedule recovers the costs of purchasing and delivering power and energy from all suppliers of power and energy, other suppliers, and the cost of power from the Utility’s owned generating resources.

The PCAF will reflect all changes in energy costs, including the following:

1. Changes in any component of the wholesale rate.

2. Changes in transmission and wheeling payments.

3. Changes in scheduling and dispatching payments.

4. Changes in contract incremental costs.

5. Changes in economy energy purchases.

6. Changes in take-or-pay obligations.

The PCAF as set forth in the Tariff Schedule shall be applied to kWh sold on and after the effective date, as also set forth below, and continuing thereafter until a new PCAF becomes effective. The amount to be added to or subtracted from each bill due to the PCAF shall be calculated by multiplying the number of kWh for which the bill is rendered by the applicable PCAF.

The PCAF, which may be either positive or negative, will be reviewed and revised quarterly to reflect actual changes in excess of a plus or minus ten percent (10%) of the amount stated in the energy charge included in the Tariff Schedule.
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The City Council shall have responsibility for establishing the PCAF and its effective date.

F. CHANGE OF LAW ADJUSTMENT FACTOR (CLAF)
Change in Law means any change, modification, revision , or adoption of : (1) any law, rule, regulation, order, writ, judgment, decree, resolution, ordinance, or other legal or regulatory determination by any court, regulatory agency or governmental authority of competent jurisdiction; or (2) any law, rule, regulation, order, writ, judgment, decree, resolution, ordinance, or other legal or regulatory determination, or interpretation thereof, which has been adopted, enacted, released or promulgated, which results in either partial or wholly new or different application of a pre-existing law. The CLAF is a charge or credit per kWh which is used to adjust the Utility ’s electric rates for the impact of Changes in Law that would materially change the Utility’s revenue or expenses.

The CLAF as set forth in the Tariff Schedule shall be applied to each kWh sold on and after the effective date, or also set forth below and continuing thereafter until a new CLAF becomes effective. The amount to be added to or subtracted from each bill du e to the CLAF shall be calculated by multiplying the number of kWh for which the bill is rendered by the applicable CLAF.

The CLAF, which may be either positive or negative, will be reviewed and revised quarterly to reflect actual changes in excess of a plus or minus ten percent (10%) of the amount stated in the Tariff Schedule.

The City Council shall have the responsibility for establishing the CLAF and its effective date. 142
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Rule 13 – Temporary Service

A. ESTABLISHMENT OF TEMPORARY SERVICE

If no undue hardship to its existing Customers will result there from, the Utility shall furnish Temporary Service under the following conditions:

1. The Applicant shall pay, in advance or otherwise required by the Utility, the estimated cost installed plus the estimated cost of removal, less the estimated salvage of the facilities necessary for furnishing service.

2. The Applicant shall establish credit as required by Rule 6, except that the amount of deposit prescribed in Rule 7 shall not exceed the estimated bill for the duration of service.

3. If service is requested to any structure not of a permanent construction with a foundation, or which can be classified as removable, such as trailers, billboards, sheds, signs, etc., they shall be determined to be temporary and applicable to the terms and conditions of the requirements above of this Rule.

4. Temporary service for construction purposes shall be discontinued to the Applicant and removed if it is used for other than the intended purpose. With the Utility’s approval, a temporary service may be used for non -construction purposes when all applicable safety and construction codes are adhered to. If a non-utility approval power source is connected on the construction site, the Utility’s temporary service shall be discontinued. Service may be suspended without notice to the Applicant as required by Section B of Rule 14.

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Rule 14 – Variations in the Quality or Supply of Electricity

A. QUALITY

The Utility does not give any warranty, express or implied, as to the quality, adequacy, safety, or other characteristics of the electricity and/or electric service provided by the Utility.

B. SHORTAGES, BROWNOUTS, INTERRUPTIONS, SPIKES, SURGES

1. The Utility will exercise reasonable diligence to furnish a continuous and sufficient supply of electricity to its Customers and minimize the occurrence of shortages, brownouts, interruptions, spikes, surges, or other electricity delivery problems; however, the Utility cannot and does not guarantee a continuous or sufficient supply, or freedom from such conditions which may affect the quality of the electricity provided.

2. The Utility will not be liable for variations in the quality of electricity supplied, nor for failure to supply a continuous or sufficient supply of electricity, nor will it be liable for variations in the quality of electricity supplied, nor for damage or loss occasioned by such failure to supply, or by shortages, brownouts, interruptions, spikes, surges, or other electricity delivery problems.

3. Whenever, in the operation of the Utility’s electric distribution properties, and/or systems, interruption in the delivery of electricity to Customers results from, or is occasioned by, causes other than the exercise by the Utility of its right to suspend temporarily the delivery of electricity for the purpose of making repairs or improvements to its system, notice of any such interruption will not be given to the Customers of the Utility, but the Utility will exercise reasonable diligence to reinstate delivery of electricity.

C. TEMPORARY SUSPENSION FOR REPAIRS

1. The Utility, whenever it shall find it necessary for the purpose of making repairs or improvements to its system, shall have the right to suspend temporarily the delivery of electricity. In all cases, as reasonable advance notice thereof as circumstances will permit will be given by Utility to the Customer, and the making of such repairs or improvements will be completed to the extent practicable and consistent with prudent u tility practices will minimize the inconvenience to the Utility’s Customers.

2. When it is necessary to suspend temporarily the delivery of electricity for repairs or improvements to the system in accordance with Rule 14.C.1 above, and the Customer requests that such suspension of service occur at other than during normal Utility working hours, the Utility reserves the right to receive, in advance, the total estimated labor- related costs to be incurred by the Utility for performing the work during non -regular Utility work hours. The Customer shall also pay any additional cost actually incurred in excess of the estimated costs. 144
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D. APP

ORTIONMENT OF SUPPLY DURING TIME OF SHORTAGE
Shou
ld a shortage of supply ever occur, the Utility will apportion its available supply of electricity among its Customers as authorized or directed by the City Manager or their designee in the manner which he determines, at their discretion, to be equitable under conditions then prevailing. The decision of the City Manager or their designee shall be final in such matters. 145
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Rule 15 – Line Extensions

A. GENERAL

The Utility is an underground utility; therefore, all new line extensions shall be underground, except in those areas where it is impractical to build underground lines, as determined by the Utility, and approved by the Director or designee.

Line extensions of standard voltages necessary to furnish permanent electric service to Applicants will be made by the Utility in accordance with the following provisions:

1. The Utility will be responsible for planning, reviewing, inspecting, energizing, installation of revenue meters and approving any design, and engineering Distribution Line Extensions using the Utility ’s standards for material, design, and construction. Applicant shall pay the Utility’s charges as set forth in the Facilities Contract for providing the planning, designing and engineering services.

2. The Distribution Line Extension facilities installed under the provisions of this Rule, shall be owned, operated, and maintained by the Utility.

3. The Utility shall not be required to serve any Applicant from Distribution Line Extension facilities that are not owned, operated, and maintained by the Utility.

4. The Utility shall not be required to connect s ervice facilities to or serve any Applicant from Distribution Line Extension facilities that are not owned, operated, and maintained by the Utility.

5. Distribution Line Extension Locations.
a. The Utility will own, operate and maintain Distribution Line Extension facilities only along public streets, alleys, roads, highways and other publicly dedicated ways and places which the Utility has the legal right to occupy; and on public lands and private property across which rights-of-way and permits satisfactory to the Utility may be obtained without cost to or condemnation by the Utility.

b. The length and normal route of a Distribution Line Extension will be determined by the Utility and considered as the distance along the shortest, most practical, available, and acceptable route , which is clear of obstructions from the Utility ’s nearest permanent and available Distribution System to the point from which the service facilities will be connected.

6. Any Special or Added Facilities the Utility agrees in writing under an AF Contract to install at the request of Applicant will be installed at Applicant’s expense in accordance with Rule 2.

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7. Facilities installed for Temporary Service or for operations of speculative character or questionable permanency shall be made in accordance with the fundamental installation and ownership provisions of this Rule and the provisions of Rule 13.

8. Service Extensions connected to the Distribution Lines to serve an Applicant’s Premises will be installed, owned and maintained as provided in Rule 16.

9. Each Applicant requesting a Distribution Line Extension shall be required to execute a written Facilities Contract with Utility and pay Utility for all charges and fees specified therein, and for such other charges and fees as may be required by applicable provisions of the Tariff Schedules, prior to the Utility performing its work on the Distribution Line Extension.

B. INSTALLATION OF DISTRIBUTION LINE EXTENSIONS

1. In accordance with the Utility ’s design, specifications and other requirements, Applicant is responsible for:
a. Excavation. All necessary trenching, backfilling, compacting and furnishing of imported or suitable natural backfill material as required and proper disposal of trench spoil as required and other digging as required;

b. Substructures, Conduits and facilities . Furnishing, installing, and upon inspection and acceptance by the Utility, conveying to the Utility ownership of all necessary installed Substructures, Conduits, cables, switches, transformers , pulls and service boxes, transformer pads, including Feeder Conduits and related Substructures and other distribution facilities required to extend to and within subdivisions and developments; and

c. Protective Structures. Furnishing, installing, and upon inspection and acceptance by the Utility, conveying to the Utility ownership of all necessary Protective Structures.

2. The Utility is responsible for:
a. P roviding inspection service to verify Applicant’s performance of the work specified in Subsections a through c of Section B.1 of this Rule; b. P roviding and installing revenue Meters and energizing services. c. Furnishing and installing cables, switches, transformers and other distribution facilities required to complete the Distribution Line Extension. Applicant shall bear the Utility’s costs of providing the inspection services, equipment and labor/installation specified in the preceding sentence.

3. Installation Options.
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a. Utility-Performed Work. Where requested by Applicant and mutually agreed upon in Facilities Contract, the Utility may perform that portion of the new Distribution Line Extension work normally installed by the Applicant, as set forth in Subsections a through c of Section B.1 of this Rule, provided Applicant pays the Utility its total estimated installed cost. b. Applicant-Performed Work. Where requested by Applicant and mutually agreed upon in a Facilities Contract, Applicant may install that portion of a new Distribution Line Extension normally installed by the Utility (see Section B.2 of this Rule), in accordance with the provisions of Section D of this Rule – Applicant Installation Options.

C. CONTRIBUTIONS OR PAYMENTS BY APPLICANT.

1. Contributions or P ayments by an Applicant to the Utility for the installation of a Distribution Line Extension to receive electric service consist of items such as cash payments, the value of facilities deeded to the Utility, and the value of Excavation performed by Applicant.

2. Project-Specific Cost Estimates. The Utility’s total estimated installed cost will be based on a project -specific cost estimate and set forth in the Facilities Contract executed by Applicant and Utility.

3. Applicant shall contribute or pay, before the start of the Utility’s construction, the following:
a. T he estimated value of all applicable items under section B.2 of this rule. b. Utility’s estimated value of Excavation, Conduits, and Protective Structures required by the Utility for the Distribution Line Extension under Subs ections a through c of Section B.1 of this Rule
c. After final design of the distribution facilities, the Utility wil l notify the Applicant of the estimated cost of any extra facilities or special requirements to be done at the Applicant’s request (e.g., Added Facilities). Extraordinary facilities or service provisions will be handled under Rule 2, Description of Electrical Service

4. The total C ontribution or a dvance Payment from a group of Applicants will be apportioned among the members of the group in such manner as they may mutually agree.

5. If the loads provided by Applicant(s) result in the Utility having paid for and installed facilities, which are in excess of those needed to serve the actual loads and the Utility elects to reduce such excess facilities, the Applicant shall pay the Utility its estimated total costs to remove, abandon or replace the excess facilities, less the estimated salvage of any removed facilities.

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D. A PPLICANT INSTALLATION OPTIONS

1. T he Distribution Line Extension work normally performed by the Utility under Section B.2 of this Rule may be performed by the Applicant’s Qualified Contractor(s) (as defined below) in accordance with the Utility ’s design and specifications. Under this option, a fully - executed Facilities Contract is required prior to the commencement of any work . The Facilities Contract required under this option shall include, without limitation, the following provisions:
a. That upon inspection and acceptance by the Utility of the Applicant- Installed Distribution Line Extension facilities, ownership of all such facilities will transfer to the Utility.
b. That Applicant shall pay to the Utility all the Utility’s costs associated with the Distribution Line Extension, including the estimated costs of design, administration and installation of any Added Facilities and labor necessary to complete the Distribution Line Extension.
c. That Applicant shall pay to the Utility the cost of inspection. d. That only duly authorized employees of the Utility are allowed to connect to, disconnect from or perform any work upon the Utility’s facilities. e. That installation may only be performed by contractor s/subcontractors approved in advance by the Utility and that meet requirements, including without limitation, the following (“Qualified Contractor(s)”):
(1) Are currently licensed by the state of California (“State”) for each type of type of contracting or other work to be performed; (2) Employ or utilize workers properly qualified and possessing the specific skills required to perform the work;
(3)
Perform work in compliance with all applicable State, Federal, and local ordinances, laws and regulations, including without limitation, such rules and regulations promulgated by the Equal Employment Opportunity Commission, the California Department of Fair Housing and Employment, the Occupational Safety and Health Administration (“OSHA”), Cal/OSHA and the U.S. and California Environmental Protection Agencies (4) Possess technical competen ce, access to proper equipment and demonstrate financial responsibility commensurate with the scope of the work to be performed under the Facilities Contract;

(5) Obtain or maintain adequate insurance coverage, in accordance with the levels established by the City’s Risk Manager, including without limitation, workers’ compensation, commercial general liability, and property damage; 149
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(6) Have the ability to furnish a surety bond for performance of the work, if required.
(7) A re not debarred by any State or federal agency from bidding or working on public works projects.

2. Use of Qualified Contractor(s) will not constitute any warranty by the Utility, whether expressed or implied, regarding such Qualified Contractor(s) performance.

E. SPECIAL CONDITIONS

1. Any relocation or rearrangement of the Utility’s existing facilities, at the request of, or to meet the convenience of an Applicant or Customer, which has been agreed to by the Utility, may be performed by the Utility at its option. In all instances, the Utility shall abandon or remove its existing facilities at the option of the Utility. Applicant/Customer shall be responsible for all costs associated with relocation, rearrangement and removal work performed by the Utility, and Applicant/Customer shall be required to enter into a Facilities Contract with Utility prior to the performance of any work by the Utility.

2. Exceptional Cases – In unusual circumstances, when the application of these R ules and Regulations appears impractical or unjust, or the circumstances are not expressly covered by these Rules and Regulations, the Applicant may refer the matter to the Director or designee for a special ruling or for the approval of special conditions. The special ruling or approval of special conditions will be agreed to in writing by the developer and the Utility prior to commencing construction and must comply with all standards for U tilities set forth by the National Electric Safety Code (NESC). If the matter is not satisfactorily resolved with the Director or designee, the developer may request a determination from the City Manager using the procedure set forth in Section F of Rule 10. If the matter is not satisfactorily resolved by the City Manager, the developer may seek appeal from the City Council using the procedure set forth in Section G of Rule 10.

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Rule 16 – Service Extensions

This Rule is applicable to both (1) Utility Service Facilities (as further defined below) that extend from the Utility’s Distribution backbone Line facilities to the Service Delivery Point, and (2) service related equipment required of Applicant on Applicant’s Premises to receive electric service.

A. General

1. The Utility will be responsible for planning, reviewing and approving any design and engineering Service Extensions using the Utility ’s standards for material, design, and construction.

2. The Utility’s Service Facilities shall consist of primary or secondary underground conductors; service transformers ; Utility-owned Metering equipment; and Other Utility -owned service related equipment.

3. Service Facilities installed under the provisions of this Rule shall be owned, operated, and maintained by the Utility if they are located: (1) in the street, road or a public right- of-way area; (2) installed by the Utility under Section D.2, below, on the Applicant’s Premises for the purpose of delivering electric energy to the Applicant; or (3) installed by the Applicant under the provisions of this Rule and conveyed to the Utility.

4. The Utility shall not be required to connect S ervice Facilities to or serve any Applicant from electric facilities that are not owned, operated, and maintained by the Utility.

5. Any Special or Added Facilities the Utility agrees to install at the request of Applicant will be installed at the Applicant’s expense in accordance with Rule 2.

6. Facilities installed for Temporary Service or for operations of speculative character or questionable permanency shall be made in accordance with the fundamental installation and ownership provisions of this rule and the provisions of Rule 13.

7. Each Applicant requesting service may be required to execute a written Facilities Contract with the Utility and pay the Utility for all charges and fees specified therein and such other charges and fees as may be required by applicable provisions of the Tariff Schedules, prior to the Utility performing its work to establish service. The Facilities Contract shall be in the form provided by the Utility and shall specify the size of the service connection desired, the property to be served, and the purpose for which the electricity is to be used. The information supplied by the Applicant shall be considered as authoritative and final. If any error in the application causes the installation of a service connection that is improper either in type, size or location, the cost of all changes required to correct the connection shall be paid by the Applicant.

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Distribution backbone System, the extension of Distribution Line facilities will be installed in accordance with Rule 15.

9. Rights-of-way or easements may be required by the s ervice facilities on Applicant’s property to serve only Applicant.
a. If the service facilities must cross property owned by a third party to serve the Applicant, the Utility may, at its option, install such service facilities after appropriate rights- of-way or easements, satisfactory to the Utility, are obtained without cost to the Utility; or b. If the Utility’s facilities installed on the Applicant’s property, or third-party property, will be designed to serve adjacent property, then the Utility may, at its option, install its facilities under Rule 15, after appropriate rights -of-way or easements, satisfactory to the Utility, are obtained without cost to the Utility.
c. Any necessary rights -of-way or easements for the Utility ’s facilities shall have provisions to maintain legal clearances from adjacent structures. d. The Customer shall exercise reasonable care to prevent the facilities of the Utility upon the Premises from being damaged or destroyed and shall not relocate or otherwise interfere with them, and, if any defect is discovered, shall promptly notify the Utility.

10. The Utility shall, at all times, have the right to enter and leave the Applicant/Customer’s Premises for any purpose reasonably connected with the furnishing of electric service, including without limitation: Meter reading, inspection, testing, routine repairs, replacement, emergency work and repairs, maintenance, and the exercise of any and all rights secured to it by law, or under the Utility ’s Tariff Schedules. These rights include, but are not limited to:
a. The use of a Utility -approved locking device, if the Applicant desires to prevent unauthorized access to the Utility’s facilities; b. Safe and ready access for the Utility’s personnel that is free from unrestrained animals;
c. Unobstructed ready access for the Utility ’s vehicles and equipment to install, remove, repair, or maintain its facilities;
d. Removal of any and all of its property installed on the Applicant’s Premises after the termination of service.
e. Entry upon an Applicant/Customer’s Premises at any time, without advance notice, solely to address a utility service related emergency ( an actual or imminent condition or s ituation that jeopardizes the Utility’s Distribution System i ntegrity or poses a serious endangerment to life or property).
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Absent an emergency, when necessary and reasonably practicable, the Utility will make prior arrangements with and/or make good faith efforts to provide advance notice to the Applicant/Customer prior to gaining access to their Premises.

Failure of a Customer/Applicant to provide the Utility with access to its Premises for the purposes set forth in this Rule may result in discontinuance of electric service.

11. Only personnel duly authorized by the Utility are allowed to connect or disconnect service conductors to or from the Utility ’s Distribution Lines, remove Meters ( unless otherwise allowed pursuant to Utility Tariff Schedules ), remove Utility-owned service facilities, or perform any work upon Utility-owned existing facilities.

12. Due to the long lead time for engineering, material acquisition, crew scheduling and construction, application for service must be made as far in advance as possible. After receipt of fees, service charges , deposits and clearance from the inspection agency having jurisdiction over the facilities, the Utility shall endeavor to complete within a reasonable time the installation of the necessary facilities. However, neither the Utility or the City, nor any of their respective subcontractors, agents and/or employees shall be liable for any special, incidental, indirect, exemplary, consequential or other damages, including without limitation, loss of product, loss of profit or revenue, loss of use, costs of replacement power or supply, or delivery obligations as a result of any delay in completing the installation, even if the Utility has been advised of the possibility of such damages.

13. If, for any reason caused or requested by the Applicant, installation of a service cannot be accomplished during standard working hours, the Applicant shall pay in advance the estimated cost of the Utility’s overtime, to the extent that it exceeds any costs included in other charges.

14. The Utility shall be obligated to provide facilities adequate to serve only the load initially specified by the Applicant and connected by the Utility , regardless of the rating of the service equipment, service switch or breaker. Increased loads will be considered as new installations and the Customer shall pay the net cost of any changes required and may be required to make specified changes in the S ervice Facilities or equipment to accommodate the increased load or the type of service to be supplied by the Utility.

B. M ETERING FACILITIES

1. General.
a. Delivery of all electric power and energy will be metered, unless otherwise provided for by the Utility’s Tariff Schedules or by other applicable laws. b. All Meters and associated metering equipment shall be located at some protected location on the Applicant’s Premises that provides unfettered access to the Utility and said location shall be approved by the Utility prior to installation. 153
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2. Normally, only one Meter will be installed for a single non -residential enterprise on a single Premises, except:
a. When otherwise required or allowed under the Utility’s Tariff Schedules. b. At the option of and as determined by the Utility, for its O perating Convenience, consistent with its engineering design; or c. When required by law or local ordinance;
d. When additional services are granted by the Utility.

A single Meter is required for each S ingle Enterprise operating in one building or group of buildings or other development on a single Premises such as, but not limited to, a commercial business, school campus, industrial manufacturer or Recreational Vehicle Park, unless otherwise approved by the Utility.

3. In a building with two or more tenants, or where more than one Meter is furnished on the same Premises, the Meters normally shall be grouped at one central location, or as otherwise specified by the Utility, and each Meter position or socket shall be clear ly and permanently marked by the Applicant, Customer, or owner of the Premises to indicate the particular unit, occupancy, or load supplied by it.
a. E lectric service shall be individually metered to each tenant in a non - residential building or group of buildings or other development on a single Premises with multiple tenants or enterprises (such as, but not limited to, an office building or shopping center complex).

Alternative metering arrangements as determined by the Utility may be allowed only as specified in Rule 18 and applicable Rate Schedules.

4. All utility meters will be sealed by the Utility and no such seal shall be tampered with or broken except by an authorized representative of the Utility.

C. S ERVICE EXTENSIONS

1. The location of the service extension shall extend:
a. Public Right-of-way Area: From the point of connection at the Distribution Line to the Applicant’s nearest property line abutting upon any street, highway, road, or right-of- way, along which it already has, or will install distribution facilities; and b. Private Party: On private property, along the shortest, most practical and available route (clear of obstructions) as necessary to reach a Service Delivery Point designated by the Utility.
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2. The Utility will not normally provide more than one Service Extension, including associated facilities, for any one building or group of buildings, for a Single Enterprise on a single Premises, except:
a. Where otherwise allowed or required under the Utility ’s Tariff Schedules; or
b. At the option of and as determined by the Utility, for its operating convenience, consistent with its engineering design for different voltage and phase classification, or when replacing an existing service; or
c. Where required by City ordinance or other applicable law, for such things as fire pumps, fire alarm systems, etc.
d. The Utility may charge for additional services provided under this Section, as Special or Added Facilities.

3. Installation of electric service facilities for all new services shall be underground and installed according to the Facilities Contract , applicable Tariff Schedules, laws, City ordinances, underground structure standards, and the Utility’s plans and specifications supplied for each specific installation.

4. Installation Options.
a. Utility-Performed Work. Where requested by the Applicant and mutually agreed upon in writing , in a Facilities Contract with the Utility; the Utility may perform that portion of the new Service Extension work normally installed by the Applicant according to Subsections a through l of Section D.1 of this Rule, provided the Applicant pays the Utility its total estimated installed cost as set forth in the Facilities Contract. b. Applicant-Performed Work. Where requested by the Applicant and mutually agreed upon in writing in a Facilities Contract, the Applicant may install that portion of a new Service Extension normally installed by the Utility under Section D.2.a of this Rule in accordance with the provisions of Section F of this Rule – Applicant Installation Options.

D. RESPONSIBILITIES FOR NEW SERVICE EXTENSIONS

1. In accordance with the Utility’s approved design, specifications, and requirements for the installation of new Service Extensions, subject to the Utility’s inspection and approval and the terms and conditions of the Facilities Contract, the Applicant is responsible for:
a. Providing (or paying for) a route on any private property that is clear of obstructions, which would inhibit the construction of either underground or overhead Service Extensions.
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b. Performing all necessary t renching, backfilling and other digging as required, and obtaining all required permits and paying all associated permit fees. c. Conduit and Substructures as follows:
(1) Furnishing, installing, owning and maintaining all Conduits (including pull ropes) and Substructures on Applicant’s Premises. (2) Installing (or paying for) any Conduits and Substructures as necessary to install the service extension.
(3) Conveying ownership to the Utility upon its inspection and acceptance of those Conduits and Substructures not on the Applicant’s Premises. d. Furnishing, installing, owning and maintaining all necessary Protective Structures as specified by the Utility for the Utility’s facilities on Applicant’s Premises. e. Design and Operation. Applicant shall be solely responsible to plan, design, install, own, maintain and operate facilities and equipment beyond the Service Delivery Point (except for Utility -owned metering facilities) in order to properly receive and utilize the type of electric service available from the Utility. Refer to Rule 2 for a description, among other things, of:
(1) Available service delivery voltages and the technical requirements and conditions to qualify for them;
(2) Customer utilization voltages;
(3) Load balancing requirements;
(4) Requirements for installing electrical protective devices; (5) Loads that may cause service interference to others; and (6) Motor starting limitations.
f. Applicant shall, at its sole liability, risk and expense, be responsible to furnish, install, own, maintain, inspect and keep in good and safe condition, all facilities of any kind or character on the Applicant’s Premises that are not the responsibility of the Utility, but are required by the Utility for the Applicant to receive service. Such facilities shall include , without limitation: underground termination equipment, Conduits, service entrance conductors from the Service Delivery Point to the location of the Utility ’s metering facilities , connectors, Meter sockets, Meter and instrument transformer housing , service switches , circuit breakers , fuses, relays, wire ways, metered conductors, and all other machinery and apparatus of any kind or character. Detailed information on the Utility ’s service equipment requirements will be furnished by the Utility.
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Victorville City CouncilAugust 20, 2024

Victorville City Council
August 20, 2024