Victorville City Council
September 1, 2026

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
PHILLIPS, CARLA 13663 SILVERSAND ST 310457110 $740.18 LOPEZ, ANGEL 13619 SILVERSAND ST 310457114 $199.73 SCHMIDT, TONI A. & TORRES, ANDREA NICOLE 13560 SILVERSAND ST 310457130 $61.93 CARRINGTON, RODNEY 14616 EQUESTRIAN WAY 310458105 $248.84 CRUZ, MELISSA 14578 EQUESTRIAN WAY 310458108 $253.49 OLIVA, ANDREA & OLIVA, ENEDINO 14577 CROSSING TRL 310458115 $610.55 VALTIERRA, ELIZABETH 14638 CROSSING TRL 310458124 $357.62 MORAN, MICHAEL 14645 EQUESTRIAN WAY 310458137 $225.58 MOORE, ARGENTINER L REVOCABLE LIV TR 14590 PAINTED PONY CT 310458208 $604.00 PEREZ, JESUS ALEJANDRO 14641 EQUESTRIAN CT 310458247 $293.76 HERNANDEZ, GILBERT 14640 EQUESTRIAN CT 310458252 $320.10 SAINT LUKE PROPERTIES LLC 13971 KICKING HORSE CIR 310459108 $441.20 LEE, LEYNA 13826 HOLT CT 310460104 $35.49 LEE FAMILY TRUST 2/1/08 14875 COACHMAN RD 310460107 $133.59 LAURELS INVESTMENT GROUP LLC 14859 GLEN HOLLOW RD 310460120 $286.72 GU, ANGEL 14849 GLEN HOLLOW RD 310460121 $521.78 BRASCO GROUP LLC & TOM, MICHEAL 14839 GLEN HOLLOW RD 310460122 $62.33 HONG, CHANG K 14771 COACHMAN RD 310461105 $242.56 HOLLAND, TIARA 13766 HANFORD CT 310461202 $338.61 GARCIA, MICHELLE S 13745 HANFORD CT 310461225 $109.22

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
RODRIGUEZ HERNANDEZ TRUST 09/28/22 13755 HANFORD CT 310461226 $242.18 GARCIA, VICTOR M. 14308 MOON VALLEY ST 310462124 $315.76 GUTIERREZ, CARLOS 14425 MOON VALLEY ST 310462142 $621.86 ST LUKE PROPERTIES LLC 14495 MOON VALLEY ST 310462148 $89.81 NGUYEN AND HO LIVING TRUST 11/14/17 14464 HONEYHILL ST 310462156 $25.81 LEWIS, PATRICE 14312 HONEYHILL ST 310462175 $229.28 ANDREW HII & HUNG KIEW TING REV LIV TR 14282 HONEYHILL ST 310462178 $63.66 ZHONG, HAI 14285 HONEYHILL ST 310462179 $83.89 LEE, JENNY B 14339 HONEYHILL ST 310462184 $364.21 MONTFLEURY, JAMES FITZGERALD 14314 CASTLE PEAKS ST 310462187 $60.29 SWSHARP LLC 15128 CANYONVIEW CT 310462213 $326.26 TRINH , DIANNE D 15105 BROOKSIDE CT 310462224 $902.90 DENIZ, CELSO 14487 HONEYHILL ST 310462229 $434.49 QURESHI, KAMRAN 14495 HONEYHILL ST 310462231 $72.75 ST LUKE PROPERTIES LLC 15123 FRESH WATER WAY 310462235 $127.22 MINNOY, PATRELL 13614 ZIRCON WAY 310463143 $331.18 CHACON MIRANDA, FRANCISCO J. 13605 ZIRCON WAY 310463151 $195.82 VALENCIA, ENRIQUE 15153 BRUCITE RD 310464101 $85.25 AQUINO, JENNIFER A. 15098 RIDGEBRIAR LN 310464109 $321.18 SANCHEZ, JANNET 15106 RIDGEBRIAR LN 310464110 $270.40

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
MITCHELL, DANIEL STEPHEN 13594 WINDOW ROCK CT 310464133 $409.89 PONCE, JULIAN 13604 QUAIL COVE PL 310464147 $115.10 LARTUNDO, LUIS 13640 QUAIL COVE PL 310464151 $227.93 GIBSON FAMILY TRUST 08/16/21 13488 COPPER ST 310465152 $395.99 MUSGRAY, JASON 15031 COBALT RD 310467101 $913.92 HERNANDEZ, VIDAL 15049 RIVERVIEW LN 310467117 $488.65 GARCIA, REYNALDA 15046 COBALT RD 310469103 $112.93 GRADY, CLAUDE 15062 COBALT RD 310469105 $70.24 ROBINSON, JERRIMAN X. 15094 PASEO VERDE PL 310469120 $122.66 RIVAS, LEONEL 15158 COBALT RD 310469129 $162.48 AHUMADA, GONZALO 13244 BELLEMORE LN 310469136 $517.18 HERNANDEZ, CLAUDIA 13230 BELLEMORE LN 310469137 $185.27 MCCRAY, CARLETTA 14999 MANDALAY LN 310470109 $216.69 TUPAS, WILFREDO M 14990 PASEO VERDE PL 310470120 $30.61 CANO, JEANETTE 14998 PASEO VERDE PL 310470121 $254.83 ACEVES, ALEJANDRA 14934 PASEO VERDE PL 310471125 $300.44 CANTU MARTINEZ, GABRIELA 14950 PASEO VERDE PL 310471127 $311.42 SANCHEZ, CLAUDIA & SANCHEZ, RUBEN 15069 BLUFFSIDE LN 310472101 $454.45 COLE, MARQUEZ 15125 BLUFFSIDE LN 310472108 $324.96 TULAFONO, LOLOGO 15148 GREEN MEADOW WAY 310472131 $145.51

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
CAJAHUARINGA, NELSON 15134 BLUFFSIDE LN 310472136 $253.50 EVANS, MARKESHA 15111 DIAMOND RD 310472142 $597.32 NGUYEN'S, PETER & MAI FAMILY REV LIV TR 15055 DIAMOND RD 310472149 $207.63 CHAN, WAI SHUM 13103 DUNE LN 310473105 $169.23 BARAJAS-AGUILAR, DANIEL 13115 DUNE LN 310473106 $189.99 ICL FAMILY IRREVOCABLE TRUST 13105 SOLAR BAY LN 310474104 $72.78 NESHEIWAT, FWAZ 13169 SOLAR BAY LN 310474112 $711.85 COLORADO, RONALD 13165 VISTA DEL SOL CT 310474115 $738.45 MARSHALL, VALERIE P. 15254 GAVIOTA CT 310474123 $152.84

MEDINA PEREZ, IVON & GARDUNO LOPEZ,
VICTOR A.
13160 VISTA DEL SOL CT 310474141 $263.21 ROBERTSON, ZORAIDA 13128 SOLAR BAY LN 310474154 $62.75 ZHOU FAMILY TRUST 1-8-04 13454 CRISTOBEL CT 310475109 $174.67 WEPPLO, TATYANA 13462 BRAMBLE LN 310475135 $316.38 HUERTA, CESAR I 14986 MATEO PRADO WAY 310476105 $218.08 HUNTER, DIMITRI QUINN 14905 MATEO PRADO WAY 310476114 $488.62 TRAN, THANH & NGUYEN, LINH 12943 LOS PICAROS LN 310476119 $91.02 ORTEGA, BRIAN 12979 LOS PICAROS LN 310476122 $953.30 DE VAUGHN, ELAINE MOORE 12942 LOS PICAROS LN 310476126 $332.55 ARNOLD, ERNIE A 12933 SAN FELIPE ST 310476128 $191.87 CRISTALES, JOAQUIN 12934 SAN FELIPE ST 310476137 $458.27

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
LIZAOLA, MAYRA 14915 BANDERA WAY 310476155 $187.32 ESPINO, GAVINA 14929 FLAMENCO PL 310476203 $220.22 THOMPSON, VANCE 14994 FLAMENCO PL 310476225 $159.89 THOMPSON, NAKIA 14914 FLAMENCO PL 310476233 $158.56 CHEN, YAJUAN 15104 MATEO PRADO WAY 310477106 $800.83 PALM TREE HOUSE LLC 15092 MATEO PRADO WAY 310477107 $89.81 PALM TREE HOUSE LLC 15088 MATEO PRADO WAY 310477108 $58.65 CLEARVIEW REAL ESTATE HOLDINGS LLC 15077 MATEO PRADO WAY 310477119 $536.61 YANG, PEILI 15117 MATEO PRADO WAY 310477123 $85.46 MALDONADO, YVONNE MARIE REV LIV TR 13077 QUINADO WAY 310477225 $221.98 DELGADO, RAYMOND 13024 VISTA ABAJO WAY 310478111 $626.23 DESOUZA, MARCELLO A 12939 CAMINO DE ORO WAY 310478146 $160.47 FLORES, ERIC 12995 CAMINO DE ORO WAY 310478152 $251.23 WILLIAMS, LEAMON V. 13023 CAMINO DE ORO WAY 310478155 $988.42 CARBAJAL, RONALD 14459 EMERALD RD 310501106 $120.33 PICHARDO, JOSE M 14458 EMERALD RD B 310501109 $506.41 TELLEZ, ELVIRA 13040 CAMELLIA RD 310501115 $519.52 PEREZ, REYMUNDO & PEREZ, HILDA L 13062 ASTER RD 310503117 $574.92 KOFOED, KARISA A 14260 COBALT RD APT 2 310506101 $3,121.44 GUTIERREZ, MARTHA & GUTIERREZ, JORGE 15059 LOFTON ST 310506104 $291.86

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
PALACIOS, PEDRO B 13600 CORDLEY RD 310520101 $1,702.49 MYNH PROPERTIES LLC 14317 AMETHYST RD 310522108 $925.68 MEDRANO, ANSELMO & MEDRANO, TERESA 14095 BONANZA RD 310535108 $250.36 BETANCOURT, ALISON 14158 BONANZA RD 310538111 $68.31 BARO, RICHARD 14122 DOS PALMAS RD 310540109 $72.09 GONZALEZ, ERLA NAVIL 14180 DOS PALMAS RD 310540112 $996.92 PINEDO, SALVADOR 14360 CHOLAME RD 310542111 $322.49 ARVILA TRUST 3-16-15 13270 ARVILA DR 310544103 $104.28 HONG, CHU JIANG & XU, PEI JUAN 13261 ARVILA DR 310544109 $195.41 HERNANDEZ, GERARDO G. 13261 CAMERON ST 310544121 $85.46 RESENDEZ, MARIA & RESENDEZ, JOSE 13210 DOS PALMAS RD 310544241 $189.30 GAMBLE, TIFFANY D. & GAMBLE, VENICE J. 13110 GEORGETOWN LN 310544309 $80.25 MARTINEZ, MIGUEL A. 12966 GEORGETOWN LN 310545144 $220.07 HENDRIX , JAMES LAMOUR 12978 GEORGETOWN LN 310545146 $490.53 SHAH, AILYA 12990 GEORGETOWN LN 310545148 $791.90 WENTWORTH II, RICHARD R 15149 HADDINGTON WAY 310602127 $383.64 WASHINGTON, MATTHEW 15146 DUNDEE CIR 310602133 $236.90 HERNANDEZ MARQUEZ, BERNALDINO 15067 ASHLEY GLEN DR 310603121 $293.43 MEIJER, ALBERT & MEIJER, SELINA 15000 BRIGADOON LN 310603126 $68.54 LOZA, JULIO 15051 WHITEKIRK DR 310603135 $80.27

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
RIVERA, OMAR A. 15034 WHITEKIRK DR 310603144 $190.74 ROSS, KARL W REVOCABLE LIV TR 2/4/19 14935 ASHLEY GLEN DR 310604110 $169.25 GUZMAN, ARTURO 14934 BRIGADOON LN 310604121 $81.63 PULIDO, FRANCISCO 14920 GLASGOW CT 310604145 $481.00 HSU, CHIA C 14953 BRAEMAR DR 310605105 $72.75 PEARSON, HING KA WONG 14973 BRAEMAR DR 310605107 $181.23 TORRES, OSCAR 14960 ABBOTSFORD LN 310605122 $280.49 CHRISTINA C SIU 14539 WOODWORTH WAY 310605150 $55.62 WANG, XIAOPING 14569 WOODWORTH WAY 310605153 $486.66 ARELLANO, RAYMOND & FLORES, THERESA A 14875 ROSEMARY DR 310607103 $639.69 MA LIVING TRUST 14849 ROSEMARY DR 310607107 $44.08 LI & ZHAO FAMILY TRUST 5/3/24 14793 ROSEMARY DR 310607119 $382.18 GARCIA, FERNANDO 14843 ANN DR 310607148 $102.43 HARRIS, JEROME C 14709 ANN DR 310607153 $317.02 CERVANTES, ROBERTO 14717 ANN DR 310607154 $531.19 GONZALEZ, MARIA DE JESUS 14789 ROSEMARY DR 310608101 $34.34 CHOI, WILLIAM D 14605 ROSEMARY DR 310608125 $997.26 LANE, WANDA 14740 HONDO DR 310608137 $28.21 XIE, CRYSTAL Y. 14711 HONDO DR 310608144 $85.21 CHAN FAMILY TRUST 7/29/20 14761 INDIAN WELLS DR 310608160 $334.44

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
TSAI, MING H & LEE, CHAO R 14731 INDIAN WELLS DR 310608163 $118.67 GUYTON, JACALYN 14670 HONDO DR 310609103 $92.41 CHANDRA, ROBIN 14661 HONDO DR 310609111 $97.15 MARTIN, JOSE L 14621 AZTEC ST 310609125 $77.30 LI, KAIRONG 14651 AZTEC ST 310609128 $56.66 RAY, MARILYN 14671 AZTEC ST 310609130 $439.82 AEX INVESTMENTS INC 14601 APACHE DR 310609149 $194.59 YAIR, ALON 14607 APACHE DR 310609150 $808.76 MORRISON, KIRKLAND 14661 INDIAN WELLS DR 310609156 $205.31 IBARRA, PAUL 14580 TUCSON ST 310610110 $160.15 VASQUEZ, JOSE 14591 ADOBE PL 310610127 $221.27 HERNANDEZ, EDWN A & MONTION, ELIZABETH 14554 ADOBE PL 310610147 $107.46 SIRIGEHAR LLC 14674 GRAHAM AVE 310611113 $150.39 DONG, YUAN ZHOU 14612 CAROB ST 310611125 $37.93 MOTA, JESSIE JR 14724 ROCKROSE ST 310611143 $484.45 MCCALLON, DASHA & MCCALLON, E'LANA 14734 ROCKROSE ST 310611144 $280.50 GARCIA, VENANCIO 14836 ROCKROSE ST 310611154 $606.49

RODRIGUEZ, JESSICA & RODRIGUEZ ESCOBAR,
HECTOR
14621 STONECRESS ST 310611169 $717.45 MOORE, KAREN ANETTE 14573 KAREN DR 310612107 $182.37 ANTOINE JR, RICHARD 14567 GRAHAM AVE 310612112 $596.04

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
HOWARD, LESLEY W & LINNIA F JT LIVING TR 14717 HONEYSUCKLE ST 310612124 $329.80 SIRIGEHAR LLC 14737 HONEYSUCKLE ST 310612126 $217.60 SANDHU FAMILY LIVING TRUST 4/28/23 14537 CAROB ST 310612141 $27.41 FLORES, ABNER 14575 STONECRESS ST 310612210 $165.76 ARCE, VANESSA 14537 STONECRESS ST 310612214 $97.59 WEPPLO, MICHAEL J 14576 NELSON AVE 310612219 $956.59 PINEDA, GERMAN C. 14807 HONEYSUCKLE ST 310612235 $651.51 RODRIGUEZ , JUAN A & RODRIGUEZ, MARIA L 15040 SAN MIGUEL DR 310613135 $227.04 CHRISTIAN, JONATHAN Q 15162 SAN JOSE DR 310614119 $248.18 MARTINEZ, DANIEL & INEZ FAMILY LIVING TR 15199 JERALDO DR 310614124 $293.92 GUIRGUIS, CINDY M. 15189 JERALDO DR 310614125 $85.43 SALMO 23 REVOCABLE LIVING TRUST 15158 JERALDO DR 310614136 $266.06 MUHAMMAD, MARICEA 14959 FLAGSTAFF CT 310614221 $266.18 GOLDMAN ANDERSON INC 14940 FLAGSTAFF CT 310614231 $232.86 BHALLA, HARISH 14950 FLAGSTAFF CT 310614232 $1,924.45 TRAN, VIVIAN V 14970 FLAGSTAFF CT 310614234 $82.21 BROWN, EARLENE 15149 DAKOTA CT 310616130 $483.85 HUMANITY, LOVE & HUMANITY, MERCY 15131 WILDROSE ST 310617105 $486.66 HOEKSTRA, GEORGE 15197 JOSHUA ST 310617138 $2,590.27 GIBSON, JOHN AND MARY 15187 JOSHUA ST 310617139 $25.81

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
CARDEN, MICHAEL & CARDEN, RONILA 15175 DAKOTA WAY 310617152 $875.95 JOHNSTON, LATOYA 15161 WILDROSE ST 310617164 $225.58 GARBUTT, RICHARD H. 15087 CHUPAROSA ST 310617171 $60.29 LIVELY, SHERYL 15054 CHUPAROSA ST 310617187 $760.61 AMROYCIV LLC 15640 ROY ROGERS RD 310620127 $648.91 MOJAVE MOBILE HOME PARK LLC 15251 VILLAGE DR 310620207 $2,556.52 ABEA, YAMIL A 15754 TERN RD 310621110 $197.54 SIMS, KAMIKA D 15169 S CULVER RD 310622135 $281.51 RODRIGUEZ ESTRADA, MIGUEL 15837 JOSHUA ST 310623106 $331.12 DELGADO-YEPEZ, VIRIDIANA 15026 CONDOR RD 310624106 $167.56 PRESSE, JOHN 14935 CONDOR RD 310624119 $308.61 PHAM & DANG FAMILY TRUST 10/05/201* 14947 CONDOR RD 310624120 $580.23 HALEY, JIM LIV TR 12-5-06 & C/O JIM HALEY -

TRUSTEE
14959 CONDOR RD 310624121 $576.79
PARTIDA, MIGUEL A. JR. 15015 CONDOR RD 310624126 $228.61

OPT VICTOR PLAZA & C/O COMMERCIAL

REALTY GROUP IN
14514 7TH ST 310626223 $480.31
APC BV FUND LLC 14503 7TH ST 310626228 $1,417.82 APPLETREES APPLESEEDS PROPERTY LLC 10423 BIG CHIEF DR 313303141 $32.31 WANG, QINYUN & ZHOU, HUANQIANG 13584 KITTY HAWK ST 313303153 $265.45 ALVAREZ, ARCADIO R 12427 LOCUST RD 313319106 $646.93 MELISSA CANDELARIO COVARRUBIAS 12281 BALDY MESA RD 313320115 $610.04

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
LOPEZ, IRMA R. 10375 OLIVINE RD 313321101 $164.34 LOPEZ, BRENDA 13659 SPIRIT PL 313331144 $180.74 KO, DENNIS L 13595 SPIRIT PL 313331150 $354.24 MACDONALD, TRESYLEE S - EST OF 13665 SANDPIPER PL 313331159 $413.64 MORENO, IVAN 13637 SANDPIPER PL 313331162 $1,191.58 ROSS, CARISA A 13625 SANDPIPER PL 313331163 $165.39 GUZMAN, NELIDA N. 10278 MARICOPA RD 313332119 $414.65 HOUTER INVESTMENT LLC 13543 SPIRIT PL 313332154 $47.75 MAN, NILO 13647 THUNDERBIRD PL 313333141 $162.42 LEUNG, BENJAMIN WAI HEI 13654 THUNDERBIRD PL 313333153 $342.20 5TH STREET TRUST 12/16/15 13625 THUNDERHAWK PL 313333159 $327.60 RAMIREZ, LUIS A. 12871 MESA VIEW DR 313405103 $192.64 LANCASTER, SELENA D 12857 ETHAN ST 313405119 $1,731.94 PENALOZA, MARIA G. 12845 ETHAN ST 313405120 $324.45 MAGANA, CHRISTOPHER & NUNEZ, SAMANTHA 11895 HILLARY WAY 313405174 $75.98 HUERTA TORRES, JAVIER 11830 ELLIOT WAY 313406148 $343.79

HERNANDEZ, MARICELA & HERNANDEZ,
ANGELA
11878 ELLIOT WAY 313406152 $828.85
FIFER, MONICA 11858 NYACK RD 313406206 $75.37 SAM LAM FAMILY TRUST DATED JULY 20, 2011
& LAM, SAM
11784 NYACK RD 313406212 $575.87
WEN LIVING TRUST 12/20/17 11745 IVERSON ST 313406225 $187.42

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
CERROS, DIOGENES 11905 IVERSON ST 313406240 $170.50 NEGRETE LUCERO, ROSIE 11938 TIFFANY ST 313407102 $259.54 MCMANUS, JOSEPH 11944 TIFFANY ST 313407103 $448.42 LUEVANO, ALFONSO 11929 HILLARY WAY 313407123 $201.81 SANTOSO, IWAN 11981 HILLARY WAY 313407128 $196.07 BAYVIEW OAK REVOCABLE TRUST 4/16/21 11985 ELLIOT WAY 313408106 $158.12 SOTELO, ILEA D. 11982 NYACK RD 313408124 $116.39 FABELA, JUANA 11942 NYACK RD 313408128 $183.85 PEREZ, MICHAEL M 12899 BERRYDALE ST 313414101 $509.87 NING, LI 12827 BERRYDALE ST 313414110 $373.84 ELIZONDO, LUIS D. 12346 ALTO REY LN 313414122 $256.45 VILLAGOMEZ, EMILY AND VINCENT 12874 FENCERIDER WAY 313414126 $75.37 URIBE, ROBERTO URIBE & JUDITH C LIV TR 12862 FENCERIDER WAY 313414127 $518.07 NGUYEN, HANNAH 12240 BRYNWOOD ST 313414142 $193.55 WILLS, CHARLES A 12820 BROOKDALE ST 313414153 $65.21 VERA RAMOS, MARIA G 12216 WOODHOLLOW ST 313415122 $119.90 BRICKLEY, SEAN 12250 WOODHOLLOW ST 313415126 $78.42 MATUS DE PEREZ, ELIA G. & PEREZ BARRAZA,

IVAN ERNESTO
12766 FENCERIDER WAY 313416120 $102.17 KEYVANJAH, MAHNAZ 12720 FENCERIDER WAY 313416125 $1,098.87 TERCERO, HAIDEE A. 12420 BLAZING STAR LN 313416146 $310.68

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
AJAYI FAMILY REVOCABLE LIVING TR 4-9 12391 ANTELOPE DR 313417115 $185.40 ESPINOSA, ADOLFO 12837 BOOTRIDGE LN 313417128 $120.27 RAY, KEISHA 12890 ANTELOPE LN 313417148 $219.37 CARBAJAL, SAUL A. 12858 ANTELOPE LN 313417151 $238.47 SHAN, ZHIYIN 12522 EL DORADO PL 313418119 $1,174.55 DAVIS, TONISHA 12609 EL DORADO PL 313418133 $508.75 BERMUDEZ, CECILIA 12520 SILVER SADDLE WAY 313419106 $115.02 VILLAFAN, RUDY 12530 SILVER SADDLE WAY 313419107 $230.25 APAN, DOLORES 12775 SILVER SPUR WAY 313419115 $193.19 SERRANO, JASON P & SERRANO, VERENICE 12767 SILVER SPUR WAY 313419116 $274.27 FELISILDA, JOVITA LIVING TRUST 02/09 12609 SUNBIRD LN 313420123 $190.95 SMALLING, EDILBERTO 12617 SUNBIRD LN 313420124 $124.78 LEON, ESQUIO & LYLES, CANDICE 12705 EL DORADO WAY 313420129 $746.67 ALVARADO, ANTONIO A 12576 SUNBIRD LN 313420135 $96.03 LOPEZ, SERGIO 12544 SUNBIRD LN 313420138 $362.76 CORTES, ANGEL E PEREZ 12569 BLAZING STAR LN 313420150 $181.44 RIZO, SALVADOR JR. 12860 CIMARRON WAY 313422122 $82.85 HERMOSILLO NAVARRETE, ARMANDO JR 12659 SHOREWOOD WAY 313422159 $130.71 RIOS, JOANA 12879 SHEARWATER PL 313423129 $185.77 ADAMS, JEAN-LUC 12889 SHEARWATER PL 313423130 $50.73

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
VELASQUEZ, KARINA 12854 SHEARWATER PL 313423133 $237.36 NGUYEN, HO 12845 HESTON ST 313423158 $139.76 HUKILL, JESSICA 12823 FOLEY ST 313423181 $85.74 HERNANDEZ, WILFREDO R 12699 SWEETWATER WAY 313424125 $395.64 ORTEGA, JAIME 12695 SUNGLOW LN 313426102 $162.76 OLIVER, ELISHA J. 12290 PRIMAVERA WAY 313426128 $319.14 PERALTA, JENNIFER 12224 PRIMAVERA WAY 313426137 $3,261.26 LEGACY FAMILY TRUST 2/14/24 12290 CHACOMA WAY 313427127 $127.81 LIANG, XUEJUN FAMILY TRUST 9/29/2021 12644 WESTBRANCH WAY 313428135 $69.50 NGUYEN, PHAT & TUYEN TRUST 07/21/20 12594 WESTBRANCH WAY 313428140 $236.31 PHILLIPS, BRITTNEE 12669 WESTBRANCH WAY 313428146 $84.46 SILVA, DAVID 12538 WESTBRANCH WAY 313429120 $55.07 MURRAY, CHARLES JOHNSON 12548 BERMUDA CT 313429135 $537.09 LAU, SHELLEY 12530 BERMUDA CT 313429137 $215.06 JIMENEZ, JUAN SIFUENTES JR. 12430 TERRANO DR 313429149 $50.19 AWADALLAH, MICHAEL 12400 TERRANO DR 313429152 $269.63 COLBERT, LANAE N 12887 TRITON LN 313432103 $321.62 HUNTER, SHEILA 12745 ADOLFO LN 313432134 $727.47 GOMEZ, ALEX JR. 12627 HERON ST 313432141 $175.93 ENGLISH, ANTHEA & MARK FAMILY TRUST 12843 CAESAR LN 313433135 $158.35

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
KIM, HONG JAE 12600 EATON LN 313433156 $159.04 HON, BLAKE SING 12729 HERON CT 313433165 $92.84 MELGAR, ANDREW T. 12482 DURANGO WAY 313435111 $45.31 DORADO FAMILY TRUST, J AND D 12458 RAVENNA LN 313435121 $107.89 CLARK, BRUCE R. 12329 FOUR WINDS LN 313436109 $85.74 QUINTANILLA, RICARDO 12324 NAVAJO LN 313436121 $244.38 LECHUGA, ERIKA 12252 ATOKA LN 313436140 $63.77 BUCHANAN, BONITA 12474 REDROCK CT 313437103 $459.87

ESPINOZA, FRANK ARMANDO & ESPINOZA,

LOLA MONICA
12479 KOKOMO DR 313437111 $83.30
LAMBSAR, SARABIJIT 12468 SANTIAGO DR 313437155 $117.82 JIMENEZ, EVELYN 12425 DURANGO DR 313437163 $289.44 MCKENZIE, EDUARDO & MCKENZIE, LISA L 12449 KOKOMO CIR 313438138 $150.57

ALVAREZ, FELIPA ELIZABETH & ALVAREZ,

CRISTOBAL
12489 KOKOMO CIR 313438142 $213.04
KEENE, LAKISHA M 12482 MADERA ST 313439104 $146.37 CORONEL BLANCA REVOCABLE TR 12/19 12540 CABALLERO WAY 313439129 $200.61 YI WAH LLC 12538 LOMA VERDE DR 313440120 $40.43 SMITH, ROBERT GLENN PETE LIV TR 01/1 12342 HITCHING POST DR 313440168 $106.34 ZHAO & XU FAMILY TRUST 8-10-13 12765 MESA VERDE DR 313442107 $106.97 GEC INVESTMENT LLC 12489 CLEARWATER CT 313442127 $511.88 RODRIGUEZ, ALEJANDRO A. 12481 CLEARWATER CT 313442128 $73.54

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
GEC INVESTMENT LLC 12492 CLEARWATER CT 313442134 $485.10 ADIKARI, A M 12465 PARKWOOD PL 313442138 $68.66 RIVERA, CARLOS 12218 SILVER ARROW WAY 313445110 $302.28 HERNANDEZ, EDWIN 12228 SILVER ARROW WAY 313445111 $244.29 VILLARRUEL, MIGUEL A 12248 SILVER ARROW WAY 313445113 $1,165.35 WHALEY, RON & WHALEY, TONI 12230 SHADOW DR 313445129 $129.70 BRACER, EVANGELINA 12296 SHADOW DR 313445136 $45.31 TAI, PICHIN 12294 HONEYBEAR LN 313446111 $166.16 CISNEROS, MIRTHA 12361 GEORGIA CT 313446134 $415.26 CASTRO, ARNOLD 12359 SOUTHWIND ST 313447130 $42.87 FENG, JIAN FAMILY TRUST 10/30/12 12446 HONEYBEAR LN 313448106 $345.67 NIETO, KARINA 12454 HONEYBEAR LN 313448107 $316.63 MYERS, KOOROSH & RONAK TRUST 5/11/20 12654 HALF MOON CIR 313449122 $75.98 JONES FAMILY TRUST 1/22/24 12661 HALF MOON CIR 313449137 $802.72 GAMBOA, CARMEN 11927 NYACK RD 313451114 $30.71 VIGIL, JAZMIN A. 11882 ALANA WAY 313451121 $339.57 ROBERTS, QUINEICE L. 11836 ALANA WAY 313451126 $245.24 HENRYETTA COOPER REVOCABLE LIV TR 3/25 11812 ALANA WAY 313451128 $140.01 AZPEITIA ANDRADE, RYAN JESSE 11744 BALLINA ST 313451221 $472.29 REYES, ALEJANDRO 12593 HANNA CT 313451231 $206.68

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
REN, PEIYUAN 12574 HANNA CT 313451234 $59.68 GRANT, LAWANDA A. 12586 HANNA CT 313451235 $80.40 MORENO, GUSTAVO A 11735 ALANA WAY 313451255 $83.30 BREWER, CARLA 12642 EDINA CT 313451324 $121.29 RAMIREZ, ROBERT 11939 CALETA WAY 313452102 $372.39 LU, SHAN HSIUNG 12526 ILONA ST 313452124 $87.96

GUTIERREZ, ANTONIO VALDIVIA & VALDIVIA,

JIOVANI CALLETANO
11832 OLIVINE RD 313452135 $117.17
SALINAS, ANDREA DANIELA 11766 OLIVINE RD 313452155 $90.40

ARRINGTON, SHAYQUAN & SHELTON,

TREMAIN
12546 HANNA CT 313452168 $350.31
AMIRI, RIZA 11985 NYACK RD 313453104 $428.48 BELTRAN, MICHAEL P 11976 OLIVINE RD 313454118 $281.83 WEN, EDWIN 12859 TRENT PL 313455137 $473.21 LUSTER-KEMP, BRIDGETTE JEANETTE 11658 MCCORD LN 313455153 $115.02 TURCIOS, FLOR M. 12786 TERYN CT 313456120 $136.57 ORTA, JENNIFER ASHLEY 12658 ALVEDA ST 313539105 $192.71 SUBERVILLE, VANESSA 12634 BERENDA ST 313539125 $519.96 CLARK, DOMINIC ETAL 15150 ONYX RD 313539208 $155.01 WILLIAMS, LASHEENA A. 15038 ONXY RD 313539216 $173.06 JIANG, SHOUFAN 12616 VERSAILLE ST 313539252 $205.88 CUMMINGS, DEBORAH 14991 MESA LINDA AVE 313540110 $28.21

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
TRAN & DUONG FAMILY TRUST 6/24/22 14974 HALONA ST 313540141 $200.00 NADEEM, MUHAMMAD 12607 VERSAILLE ST 313541101 $263.04 LIANG, CHRISTINE LIVING TRUST 7/27/16 12632 MADRONA ST 313541107 $112.08 SALCIDO, TANGEE 14981 CORLITA ST 313541147 $206.95 RIVAS, PETER 14995 CORLITA ST 313541148 $295.65 JONES, REGGIE A. 9850 MESA ST 313605106 $593.70 CAMPOS, ERICK 10373 MONO RD 313609125 $324.87 ALVAREZ, ALEXANDRA F. 11262 FARLEY LN 313629102 $100.18 EJC FAMILY TRUST 06/05/2025 12323 BEAR RIDGE WAY 313629117 $212.98 HERNANDEZ AVILA, VERONICA 12374 CRAVEN WAY 313629123 $107.68 HUYNH, JADEN 12317 CRAVEN WAY 313629130 $200.75 AGUIRRE, JANET MARIBEL 12264 GOLD DUST WAY 313629135 $543.32 JEFFRIES, GILBERT 11195 LANCER LN 313629147 $261.09 RAMIREZ, CARLOS 12464 FLAGSTONE CT 313630103 $169.02 LOAN DEPOT COM LLC 12274 RANCHITO WAY 313631113 $267.19 CEDILLO, EDUARDO E. 12338 RANCHITO WAY 313631119 $197.96 ANGUIANO MEZA, MARIA DE LA LUZ 12342 RANCHITO WAY 313631120 $213.67 USON FAMILY TRUST 3/3/25 12355 RANCHITO WAY 313631121 $1,116.93 GONZALES, PRISCILLA DIANE 12312 VERANO ST 313631144 $359.10 NIETO SOSA, KEVINE W. 11179 LANCER LN 313632107 $339.12

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
MINJARES, NATALIE 11155 KANOW LN 313632141 $408.85 MOLINA, RIGOBERTO 11148 MESA LINDA ST 313632148 $600.88 GREEN, RAY 11160 MESA LINDA ST 313632149 $709.02 MENDOZA, ANGELA M. 12277 DEBORAH PL 313633123 $376.61 MIRANDA, KEINA 12483 VERANO ST 313634117 $227.88 MARTINEZ, MONICA ORTIZ 12444 DEL SUR ST 313634161 $1,329.60 CONTRERAS, JULIE A. 12337 DEL SUR ST 313634174 $337.90 CONTRERAS DELGADILLO, VALENTIN 12417 DEL SUR ST 313634182 $63.77 WATKINS, ADAM 12476 DOMINGO DR 313636102 $155.66 TRIMBLE FAMILY TRUST 8/17/24 12346 MESA ST 313636126 $455.32 DIAZ, NOEMI 12370 MESA ST 313636128 $587.83 LOPEZ, DAVID 12382 MESA ST 313636129 $182.85 BROWN, STEVEN 12456 MESA ST 313636136 $173.30 JOHNSON, LILLIE 12468 MESA ST 313636137 $170.68 MADRID, ANTHONY 12469 LOS MORAS WAY 313636150 $112.73 OREJUELA, ROSMERY 12409 LOS MORAS WAY 313636155 $230.80 CAMPOS, SINAI ABAD 12360 LOS MORAS WAY 313636166 $208.62 MNKANDLA, THANDEKILE M. 12524 GOLD DUST WAY 313639113 $105.41 RAMIREZ, MARIAH 12540 GOLD DUST WAY 313639115 $170.11 NORRIS, SHERYCE L. 12697 WYCLIFF LN 313639139 $213.46

OWNER NAME SERVICE ADDRESS APN AMOUNT
FISCAL YEAR 2026-2027
WATER

PROPOSED PROPERTY TAX ASSESSMENTS

EXHIBIT A
STEWARD, DAVID A. & STEWARD, CINDY V. 12613 WYCLIFF LN 313639146 $72.90 HYPATIA TRUST 10/22/22 & LI, SOPHIA J. 12535 MARMAC CT 313640115 $87.54 VILLEGAS, GABRIELA 12518 MARMAC CT 313640119 $191.39 BAKER, TERRY-ANN G 11118 TRUCKEE PL 313640201 $34.68 SIMONYAN,ARMAN & VARTUHI REV LIV TR 12571 VERANO ST 313642109 $231.25 SERRANO, GERARDO 12511 VERANO ST 313642114 $249.18 JONES, KATRELL S 11081 MESA LINDA ST 313642115 $99.33 IBARRA, JUAN CARLOS 11067 MESA LINDA ST 313642116 $346.53 BENITEZ, LUIS A 12675 AGAVE BAY ST 313642127 $184.07 THOMASON, ROSE A & THOMASON, MICHAEL 11083 CANYON COVE ST 313642134 $110.14 EDWARDS, JAIME 10995 BAY SHORE ST 313642169 $453.41 GUERRERO JR, ROBERT 12536 MESA ST 313643111 $184.77

THE MARK LARSON AND RAUL RAMIREZ
LIVING
10972 ADMIRALS BAY ST 313643128 $905.31 CORONA, JOSE 12549 LEAR BAY ST 313643138 $107.70 MARCELO, JESUS H. 10946 BAY SHORE ST 313643140 $163.15 HERRERA, FRANCISCO 13356 MACAW PL 309007110 $216.89

4 8
7 5
Item Number: 11
City Council / Board of Directors
Written Communications
Meeting of: September 1, 2026
Submitted By:

Fredy Bonilla, City Engineer
Doug Mathews, Director of Public Works and Water
Subject:

Award of Construction Contract, Approval of Consultant/Professional Services Provider Agreement, and Approval of Victorville Municipal Utility Services (VMUS) Electrical Service Line Extension Installation for the 1MG SCLA Reclaimed Water Reservoir 2 Project
Recommendation:

That the Honorable Victorville Water District Board of Directors (Board):
(1) Adopt Resolution No. VWD 26-014 to amend the Fiscal Year 2026/2027 budget to reflect an additional appropriation of $6,071,908.53; (2) Award a construction contract to Pacific Hydro Tech Corporation in the amount of $9,911,740 for the 1MG SCLA Reclaimed Water Reservoir 2 Project; (3) Approve Consultant/Professional Services Provider Agreement with David Evans and Associates, Inc., in the amount of $82,039.00; and
(4) Approve Victorville Municipal Utility Services Electrical Service Line Extension Installation in the amount of $242,592.20.

Fiscal Impact:

This action will result in a fiscal impact of $10,486,371.20. The project is being funded by Fund 413 (Water Resources) and Fund 414 (Water Capacity). The current budget has a funding shortfall of $6,071,908.53. Approval of the construction contract, consultant professional services agreement, and the VMUS electrical service line will require an additional appropriation of $6,071,908.53. The additional appropriation request includes $250,000 for materials testing, like geotechnical compaction testing and deputy inspection for the pre-cast concrete construction. The budget account numbers, account descriptions, amounts available, additional appropriations, and revised appropriations are shown in Table 1 below:

Table 1
Account
Number
Account
Description
Amount
Available
Additional
Appropriation
Revised
Appropriation
4130520 - 1MG Water $1,444,560.40 $0 $1,444,560.40
55360 - 74373 Tank – Infrst
4144500 - 1MG Water $2,969,902.27 $6,071,908.53 $9,041,810.80 55360 - 74373 Tank – Infrst
Subtotals $4,414,462.67 $6,071,908.53 $10,486,371.20
Table 2 indicates the fiscal impact by project component:

Table 2
Project Component Proposed
Expenditure
Pacific Hydro Tech Corporation - Construction Contract $9,911,740.00 David Evans and Associates - Bidding and construction
support services
$82,039.00
Materials Testing $250,000.00
VMUS Electrical Service Line Extension $242,592.20
Total Cost $10,486,371.20
Strategic Plan Goal:

This item aligns with Goal E “Invest in infrastructure” in the City of Victorville Strategic Plan 2023-2026 as the project is listed as Strategy 5 “Complete design and begin construction of the new recycled water reservoir to enhance water resources.” The new reservoir will improve reclaimed water quality, reduce evaporation losses, and restore the City’s operational storage capacity. Additionally, the project will enable the Victorville Water District to provide reclaimed water to Schmidt Park and nearby ballfields, while also supporting firefighting, irrigation, dust control, and construction activities throughout the Southern California Logistics Airport (SCLA).

Background:

On September 1, 2020, the Board of Directors adopted Resolution No. VWD20-094 approving the Mitigated Negative Declaration and Mitigation and Monitoring Reporting Program for the One Million Gallon Reclaimed Water Reservoir Project.

On December 7, 2021, the Board of Directors approved a Professional Services Agreement with David Evans and Associates, Inc. (DEA) in the amount of $308,840 for the design of a 1 million gallon (MG) reclaimed water reservoir at a site within SCLA, east of Westwinds Road and south of Montana Street (APN 0459-211-16).

The project consists of the construction of a 1MG enclosed prestressed concrete reclaimed water reservoir and a new pump station equipped with three 50-hp pumps and associated mechanical, electrical, instrumentation, and control systems, along with other associated on-site improvements. The new reservoir will be maintenance-friendly as concrete reservoirs require less routine work such as maintenance inspections, sealing, and cleaning whereas metal tanks require maintenance inspections, rust control, coating care, liner care, sediment control, and corrosion and cathodic protection. The site plan and section view of the reservoir is provided in Attachment F.

The new reservoir will replace the existing 600,000-gallon in-ground, rubber-lined pond used for the storage of reclaimed water from Victor Valley Wastewater Reclamation Authority (VVWRA). Since the existing pond is open to the atmosphere, it is susceptible to algae growth and debris accumulation, making it difficult to maintain water quality. The pond also experiences significant evaporation losses due to the environment. Given these operational challenges, the pond is currently not in use, resulting in a loss of reclaimed water storage capacity for the City.

The new reservoir is expected to significantly improve reclaimed water quality, reduce evaporation losses, restore the operational storage capacity lost due to the discontinued use of the existing pond, and provide additional storage capacity needed to accommodate future reclaimed water demands associated with the significant ongoing industrial development within SCLA.

The original agreement with DEA commenced on January 7, 2022, with a three-year term, expiring on December 16, 2024, with an option to extend the agreement for one additional year. Following expiration of the initial term, the agreement continued on a month-to- month basis. Amendment No. 1 was approved on February 10, 2025, extending the agreement through January 5, 2026.

Following the expiration of Amendment No. 1 on January 5, 2026, DEA continued to provide services on a month-to-month basis. As the project progressed toward the bidding and construction phases, the City requested a proposal from DEA for a new agreement to provide continued engineering support through project completion.

The proposed scope of services in the professional services agreement includes bid support services, such as responding to bidder questions, preparing an addendum, and providing conformed plans and specifications, as well as engineering support during construction. Construction support services include responding to contractor Requests for Information (RFIs), reviewing submittals, shop drawings and change orders, attending construction meetings, conducting site visits as needed, reviewing operation and maintenance manuals, and preparing final record drawings.

On May 13, 2026, the City received a proposal from DEA in the amount of $82,039 for bidding and construction support services. The proposed Consultant/Professional Services Provider Agreement is included as (Attachment D).

Discussion:

As part of the City’s long-term plan to gradually reduce reliance on Southern California Edison (SCE) within the SCLA area and transition electrical service to Victorville Municipal Utility Services (VMUS), VMUS will provide electrical service to the new reclaimed water reservoir and pump station.

VMUS will design and install a new electrical service line extension from its existing distribution system near the intersection of Innovation Way and Nevada Street to the project site. The work will include the necessary electrical infrastructure, including conduit, cable, switches, transformers, metering equipment, and associated facilities. The service extension will also require demolition of two abandoned housing structures and grading for a new utility easement, which will be coordinated by Engineering Staff.

The cost of the electrical service extension, including the associated demolition and grading work, is detailed in the VMUS Service Line Extension Installation Proposal included herein as (Attachment E).

The construction portion of the project was bid using formal bidding procedures in accordance with Victorville Municipal Code §2.28.210 and the California Public Contract Code. Formal bidding procedures are used for public works contracts with an estimated cost in excess of five hundred thousand dollars. The Notice of Inviting Bids was issued on the OpenGov Procurement Portal and advertised in the San Bernardino Sun on Wednesday, April 8, 2026. A second notice was published in the Daily Press on April 15, 2026. The mandatory pre-bid meeting and Job Walk were held on April 28, 2026. On July 9, 2026, five (5) bids were received.

The following is a summary of the quotes received:

Contractor Bid Amount
Pacific Hydro Tech Corporation $9,911,740.00
Metro Builders & Engineers Group, LTD. $9,918,329.00
Caliagua, Inc. $10,688,640.00
Shimmick Construction $11,159,500.00
SOLPAC Construction, Inc. $11,543,308.00
After a review of the bid proposals, it was determined that the lowest responsive, responsible bidder is Pacific Hydro Tech Corporation.

Staff recommends that the Honorable Board adopt Resolution No. VWD 26-014, award the construction contract to Pacific Hydro Tech Corporation in the amount of $9,911,740, approve a Consultant/Professional Services Provider Agreement with DEA in an amount of $82,039, and approve the VMUS Service Line Extension Installation Proposal in an amount of $242,592.20.

Staff is available for any questions the Board may have.

Prepared By:

Sylvia Severson, Management Technician
Dennis Lee, Associate Civil Engineer
Attachments:A. Resolution No. VWD 26-014
B. Location Map
C. Construction Agreement
D. Consultant/Professional Services Provider Agreement
E. VMUS Proposal
F. Proposed Site Plan & Section

ATTACHMENT A –
RESOLUTION NO.

VWD 26-014
RESOLUTION VWD 26-014

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE

CITY OF VICTORVILLE, CALIFORNIA, AMENDING THE
ANNUAL BUDGET FOR FISCAL YEAR 2026-2027;

APPROVING AN ADDITIONAL APPROPRIATION OF FUND
414 TO INCREASE THE BUDGET FOR THE 1MG SCLA
RECLAIMED WATER RESERVOIR 2

WHEREAS, the General Manager of the Victorville Water District ("District") did heretofore submit to the Board of Directors (Board) an estimate of the expenditures and revenues of the City Departments and offices, together with a proposed budget for the fiscal year 2026-2027; and
WHEREAS, copies of said budget were prepared and distributed to the Board, approved by the Board prior to June 2, 2026, and have been available for the inspection by the public in the office of the Secretary of the District ("Secretary") of the Victorville Water District; and
WHEREAS, the 1MG SCLA Reclaimed Water Reservoir 2 is listed in the Capital Improvement Projects for fiscal year 2026-2027; and
WHEREAS, the cost of construction deems it necessary to amend the Capital Improvement Budget for 2026-2027; and
WHEREAS, the General Manager or his designee will provide all necessary justification for the budget amendment as an attachment to this resolution or in the associated Board of Directors agenda report; and
WHEREAS, the Board, wishes to amend the annual budget as set forth in this Resolution and recognize the associated increase in expenditures.

NOW, THEREFORE, THE BOAD OF DIRECTORS OF THE CITY
OF VICTORVILLE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the annual; budget for the fiscal year 2026-2027 for the Victorville Water District
is hereby amended to reflect an increase in the 1 MG SCLA Reclaimed Water Reservoir 2 Water Capacity expenditure account 4144500-55360-74373 in the amount of Six Million Seventy-One Thousand Nine Hundred Eight Dollars and 53 Cents ($6,071,908.53) as described in the corresponding Agenda Item Staff Report for the Board of Directors of September 1, 2026.

Account Description Adjustment
4144500 - 55360 - 74373 1MG Water Tank - Infrst $6,071,908.53 SECTION 2. That copies of such amended budget, certified by the Secretary, shall be filed with the auditors of the Victorville Water District and in the office of the Secretary for public inspection and certified copies thereof shall be made available for use by City Departments, offices and subsidiary districts of the District.

SECTION 3. That this Resolution becomes effective immediately upon its adoption.

ATTACHMENT – LOCATION MAP

ATTACHMENT C –

CONSTRUCTION

AGREEMENT

Contract Agreement 1MG SCLA RECLAIMED WATER RESERVOIR 2 Submittal Documents MS26-111

1 CONSTRUCTION CONTRACT BY AND BETWEEN

THE VICTORVILLE WATER DISTRICT AND

PACIFIC HYDROTECH CORPORATION
FOR
1MG SCLA RECLAIMED WATER RESERVOIR 2
DISTRICT PROJECT NO. MS26-111

THIS CONSTRUCTION CONTRACT (the “Contract”) dated ______________________ for reference purposes only is made and entered into by and between the Victorville Water District, a municipal corporation and charter District located in the County of San Bernardino, State of California, hereinafter referred to as the “District”, and Pacific HydroTech Corporation, a California corporation, hereinafter referred to as the “Contractor”. The District and Contractor are sometimes hereinafter referred to as a “Party” and collectively referred to as the “Parties.”
RECITALS:

WHEREAS, the District requires construction of 1 MG SCLA Reclaimed Water Reservoir 2 as more fully described in the solicitation documents issued by the District for Project No. MS26-111 (the “Project”); and
WHEREAS, on April 8, 2026, the District issued a Notice Inviting Bids and solicitation documents to prospective bidders for the Project. In response, Contractor submitted a Bid which the District determined to be the lowest responsive and responsible bid; and WHEREAS, Contractor is a duly organized 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 September 1, 2026, the District Board 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 District 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.

Contract Agreement 1MG SCLA RECLAIMED WATER RESERVOIR 2 Submittal Documents MS26-111

2 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 s “A” and “B” (Contractor’s submitted Bid Proposal as accepted by the District);
(2) Change Orders issued and approved by the District;
(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 District;
(5) Notice Inviting Bids and Instructions to Bidders;
(6) Special Provisions
(7) Greenbook 2024 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
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, P.E., City Engineer, or his designee (hereinafter the “Project Manager”).

Section 4. CONTRACT 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, District will pay Contractor Nine Million Nine Hundred Eleven Thousand Seven Hundred Forty Dollars, ($9,911,740.00) (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 “B”) subject to the provisions of this Contract and the Contract Documents.
b. Procedures relating to payment and retention are set forth in the Special Provisions.

Contract Agreement 1MG SCLA RECLAIMED WATER RESERVOIR 2 Submittal Documents MS26-111

3 Section 5. CONTRACT TIME; NOTICE TO PROCEED
a. Contract Time. The Work under this Agreement shall be diligently prosecuted to completion before expiration of Four Hundred Fifty (450) WORKING DAYS, commencing within fifteen (15) calendar days after the issuance of the Notice to Proceed. The District 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 District.
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 District. Contractor shall commence Work pursuant to the Contract Documents and as directed by the District 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.
i) In 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. ii) 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, District and Contractor agree to comply with the following process:
• Each Party shall designate a senior management or executive level representative to negotiate any dispute.
• The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority.
• 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.
• 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. • 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 District.

Section 7. TERMINATION OF AGREEMENT FOR CONVENIENCE

Contract Agreement 1MG SCLA RECLAIMED WATER RESERVOIR 2 Submittal Documents MS26-111

4 a. The District may, by providing thirty (30) days' advance written notice to Contractor, terminate this Agreement in whole or in part, whenever the District shall determine that such termination is in the best interests of the District, or when it becomes impracticable or impossible to proceed, or because of conditions or events beyond the control of the District. 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:
(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 terminated 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 District no later than ninety (90) days from the effective date of termination, unless extended in writing by the District, upon written request by the Contractor. If the Contractor fails to submit a proposal, the District may determine the amount, if any, due the Contractor as a result of the termination. The District will pay the Contractor the amount it determines is reasonable. If the Contractor disagrees with the amount determined by the District as being reasonable, the Contractor shall provide notice to the District 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 District may terminate this Contract for Contractor’s default as set forth in this Section. The District will consider the Contractor in default of this Contract if, prior to the District’s acceptance of the Work, the Contractor:
(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 District or materially violates provisions of the Contract Documents;

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5 (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 District, and the Surety shall be transmitted in accordance with Section 21 of this Contract. b. Notice and Opportunity to Cure. The District 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 District 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 District deems necessary to secure 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 District. Termination of this Contract will not relieve the Surety of its obligation for any just claims arising out of the Work performed.

Section 9. PREVAILING WAGE
a. Compliance with State Prevailing Wage Requirements. Pursuant to Labor Code Section 1773, the District 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 District’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 performing accordingly. An error on the par t 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. 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.

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6 (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 information 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 Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to District, 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:
(1) Pursuant to Labor Code section 1775, the Contractor and any Subcontractor under it shall forfeit as a penalty to the District 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.
(2) The Contractor or Subcontractor shall, as a penalty to the District, 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

Contract Agreement 1MG SCLA RECLAIMED WATER RESERVOIR 2 Submittal Documents MS26-111

7 to District 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 awar e 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. LIQUIDATED DAMAGES
If Contractor fails to complete the Work within the Contract Time, District will assess liquidated damages in the amount of Two Thousand Dollars ( $2,000.00) per day for each day of unexcused delay in completion, and such liquidated damages may be deducted from District’s payments due or to become due to Contractor under this Contract.

Section 11. COMPLIANCE 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 District business license, shall be held or obtained by the Contractor at its sole expense and prior to commencing any Work hereunder.

Section 12. WORKERS’ COMPENSATION CERTIFICATION
Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”
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 District’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

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8 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 District.
(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 District, 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 and Victorville Water District shall be named as a Loss Payee as their interest may appear
(b) If the Project does not involve new or major reconstruction, at the option of the District, 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) Installation Floater coverage with limits sufficient to insure the full replacement value of any property of equipment stored either on or off the project site that provides property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the contract work, including during transit, installation, and testing at the project site. Such coverage shall name the City of Victorville and Victorville Water District as a loss payee as its interest may appear.

(6) Pollution Liability Insurance: Contractor’s Pollution Liability and/or Asbestos Pollution Liability and/or Error & Omissions applicable to the work being performed, with a limit no less than $5,000,000.00 per claim or occurrence and $10,000,000.00 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:
(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 of Victorville, Victorville Water District and its elected or appointed officials, officers, employees, servants, volunteers, agents and independent contractors, including, without limitation, the District Attorney, are named as Additional Insureds. The coverage shall contain no special limitations on the scope of protection afforded to the City of Victorville and Victorville Water

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9 District, 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, District 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 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. Within ten (10) days of the date Contractor receives this Contract from the District for execution (following award of same by the District Board), certificates of insurance evidencing the policies of insurance, coverages, and endorsements required by this Contract and satisfactory to and approved by the District shall be furnished by Contractor to the District’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 District 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.
(b) The CGL and vehicle liability policies shall be endorsed as Primary and Non- contributory.
c. Subcontractors. Contractor 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 Insu reds 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 District, Contractor must provide certif icates 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. RESERVED
Section 15. TIME OF THE ESSENCE
Time is of the essence in the performance of this Contract.

Section 16. INDEMNIFICATION
a. Notwithstanding the limits of any insurance and to the fullest extent permitted by law, Contractor shall indemnify the District, 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

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10 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 District, 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 District, 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 District, its elected or appointed officials, officers, agents, volunteers and employees harmless therefrom; (3) In the event the District, 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 District, its elected or appointed officials, officers, agents ,volunteers, or employees, any and all costs and expenses incurred by the District, 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 District; (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. District 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. REPORTS; 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

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11 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. MODIFICATIONS 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. ENTIRE AGREEMENT
a. This Contract supersedes any and all prior or contemporaneous agreements, either oral or written, between the District 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 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
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 District: Fredy Bonilla, P.E., City Engineer
Engineering Department
14343 Civic Drive
Victorville, CA 92392

To Contractor: Joselito Guintu, Vice President
Pacific HydroTech Corporation
30590 Cochise Circle

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12 Murrieta, CA 92563

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. NON-LIABILITY OF DISTRICT OFFICERS AND EMPLOYEES No officer or employee of the District shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by the District 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. BONDS
Concurrently with the execution of this Contract by the Contractor, and before the commencement of any Work, Contractor shall furnish to the District 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.

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 District, except those losses or damages as may be caused by the District’s own negligence. The performance of the Work by Contractor or the payment of money by the District 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 District’s acceptance thereof) at no further cost to the District.

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. OWNERSHIP OF DOCUMENTS

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13 No portion of the Contract Documents may be used for any purpose other than construction of the Project, without prior written consent from District. 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 District will retain all rights to such works, including the right to possession.

Section 28. SUCCESSORS, 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 District.

Section 29. GENDER; 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. SEVERABILITY
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. GOVERNING 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. CUMULATIVE 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.

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 District until signed by the authorized representative(s) of Contractor, approved by the District’s Risk Manager, and executed by the authorized District personnel or the Mayor.

Section 35. REPRESENTATIONS 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. WAIVER

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14 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 defaul t concerning the same or any other provision of this Contract.

Section 37. INDEPENDENT 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 District.

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. ATTORNEY'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. (END OF THIS PAGE – SIGNATURE PAGE FOLLOWS)

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

VICTORVILLE WATER DISTRICT PACIFIC HYDROTECH CORPORATION

By: By:

Elizabeth Becerra, District Chairman Contractor Authorized Officer(s) Joselito Guinto
Name
Vice President
Title

Dated: Dated:

ATTEST

By:

Jennifer Thompson, Board Secretary

Dated:

APPROVED AS TO STANDARD FORM

By:

Andre de Bortnowsky, District Legal Counsel

Dated:

By:

Sandra Bostick, District Risk Manager

Dated:

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16 EXHIBIT A

SCOPE OF SERVICES
The District agrees to engage Contractor and Contractor agrees to furnish all necessary labor, tools, materials, and equipment for and do the Work for the Project. The Work shall be performed in accordance with: (i) the Plans and Specifications and applicable Addenda (as generally described in the Request for Bid, Project Number MS26-111, for the Project; and (ii) the prices set forth in Contractor’s Bid Proposal (attached as Exhibit "B").

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17 EXHIBIT B

CONTRACTOR'S BID PROPOSAL
See Attachment

City of Victorville
Finance
John Mendiola, Purchasing Manager
14343 Civic Drive, Victorville, CA 92392

EVALUATION TABULATION
NIB No. MS26-111
1MG SCLA Reclaimed Water Reservoir 2
RESPONSE DEADLINE: July 9, 2026 at 2:00 pm
Report Generated: Monday, August 17, 2026

SELECTED VENDOR TOTALS
Vendor Total
Pacific Hydrotech
Corporation
$11,702,870.00

1MG SCLA RECLAIMED WATER RESERVOIR 2
MS26-111 Base Bid Schedule
1MG SCLA Reclaimed Water Reservoir 2 Pacific Hydrotech Corporation Selected Line
Item
Description Quantity Unit of Measure Unit Cost Total
X 1 MOBILIZATION, INSURANCE,

BONDS - BASE BID
1 LS $490,000.00 $490,000.00
X 2 PREMIUM FOR "ACTS OF GOD"

BUILDERS ALL-RISK INSURANCE
1 LS $100,000.00 $100,000.00
X 3 PREPARE AND IMPLEMENT A

STORM WATER POLLUTION

PREVENTION PROGRAM
(SWPPP)
1 LS $48,200.00 $48,200.00
X 4 TRENCH AND EXCAVATION

SHEETING, SHORING AND

BRACING - BASE BID
1 LS $18,400.00 $18,400.00
X 5 CONSTRUCT SITE

IMPROVEMENTS
1 LS $8,271,300.00 $8,271,300.00

EXHIBIT A
CONTRACTOR'S BID PROPOSAL, PROJECT MS26-111
18/ Construction Contract/1MG SCLA RECLAIMED WATER RESERVOIR 2/ PROJECT MS26-111

EVALUATION TABULATION
NIB No. MS26-111
1MG SCLA Reclaimed Water Reservoir 2

EVALUATION TABULATION
Request for Bid - 1MG SCLA Reclaimed Water Reservoir 2

1MG SCLA Reclaimed Water Reservoir 2 Pacific Hydrotech Corporation Selected Line
Item
Description Quantity Unit of Measure Unit Cost Total
X 6 CONSTRUCT POTABLE

WATERLINE
120 LF $482.00 $57,840.00
X 7 EXCAVATION, HAUL AND

DISPOSAL OF CONTAMINATED

SOILS, INCLUDING SOILSAFE
INC. PROCESSING COSTS AT
$45 PER TON.
1000 TN $70.00 $70,000.00
X 8 AGGREGATE BASE COURSE 1500 TN $51.00 $76,500.00
X 9 TYPE B GRAVEL 1000 TN $73.00 $73,000.00
X 10 GRAVEL BORROW - BASE BID 500 TN $73.00 $36,500.00
X 11 DEMOBILIZATION - BASE BID 1 LS $10,000.00 $10,000.00 Total $9,251,740.00

BASE BID
BASE BID Pacific Hydrotech Corporation
Selected Line
Item
Description Unit of
Measure
Unit Cost
X 12 PERMIT FEES AND SCE SERVICE FEES ALLOWANCE LS $60,000.00 X 13 AUTHORIZED WORK - THIS ITEM AMOUNT IS SET BY THE

CITY, AND REQUIRES CITY APPROVAL TO BE UTILIZED BY
THE CONTRACTOR, ONLY AS DIRECTED BY THE CITY. ANY

INVOICED AMOUNT AGAINST THIS LINE IS SUBJECT TO

NON-PAYMENT IF NOT PREVIOUSLY AUTHORIZED BY THE
CITY.

LS $600,000.00

EXHIBIT A
CONTRACTOR'S BID PROPOSAL, PROJECT MS26-111
19/ Construction Contract/1MG SCLA RECLAIMED WATER RESERVOIR 2/ PROJECT MS26-111

EVALUATION TABULATION
NIB No. MS26-111
1MG SCLA Reclaimed Water Reservoir 2

EVALUATION TABULATION
Request for Bid - 1MG SCLA Reclaimed Water Reservoir 2

BASE BID Pacific Hydrotech Corporation
Selected Line
Item
Description Unit of
Measure
Unit Cost
Total $660,000.00

SCHEDULE A - SITE SECURITY FENCING
SCHEDULE A - SITE SECURITY FENCING Pacific Hydrotech Corporation Selected Line
Item
Description Quantity Unit of Measure Unit Cost Total
X 14 MOBILIZATION, INSURANCE, BONDS -

SCHEDULE A
1 LS $6,500.00 $6,500.00
X 15 SITE FENCING 1 LS $331,500.00 $331,500.00
X 16 DEMOBILIZATION - SCHEDULE A 1 LS $2,670.00 $2,670.00 Total $340,670.00

SCHEDULE B - DOMESTIC WATER PIPE
SCHEDULE B - DOMESTIC WATER PIPE Pacific Hydrotech Corporation Selected Line
Item
Description Quantity Unit of Measure Unit Cost Total
X 17 MOBILIZATION, INSURANCE, BONDS -

SCHEDULE B
1 LS $20,000.00 $20,000.00
X 18 TRENCH SHEETING, SHORING AND

BRACING - SCHEDULE B
1 LS $14,000.00 $14,000.00
X 19 CONSTRUCT POTABLE WATERLINE -

SCHEDULE B
1260 LF $437.00 $550,620.00
X 20 TEMPORARY ASPHALT PAVEMENT

RESTORATION
1150 LF $77.00 $88,550.00

EXHIBIT A
CONTRACTOR'S BID PROPOSAL, PROJECT MS26-111
20/ Construction Contract/1MG SCLA RECLAIMED WATER RESERVOIR 2/ PROJECT MS26-111

EVALUATION TABULATION
NIB No. MS26-111
1MG SCLA Reclaimed Water Reservoir 2

EVALUATION TABULATION
Request for Bid - 1MG SCLA Reclaimed Water Reservoir 2

SCHEDULE B - DOMESTIC WATER PIPE Pacific Hydrotech Corporation Selected Line
Item
Description Quantity Unit of Measure Unit Cost Total
X 21 PERMANENT ASPHALT PAVEMENT

RESTORATION
160 TN $522.00 $83,520.00
X 22 GRAVEL BORROW - SCHEDULE B 310 TN $87.00 $26,970.00 X 23 REDUCED PRESSURE BACKFLOW DEVICE 1 EA $4,900.00 $4,900.00 X 24 DEMOBILIZATION - SCHEDULE B 1 LS $4,000.00 $4,000.00 Total $792,560.00

SCHEDULE C - DEMOLITION, SALVAGE, BACKFILL
SCHEDULE C - DEMOLITION, SALVAGE, BACKFILL Pacific Hydrotech Corporation Selected Line
Item
Description Quantity Unit of Measure Unit Cost Total
X 25 MOBILIZATION, INSURANCE, BONDS -

SCHEDULE C
1 LS $6,500.00 $6,500.00
X 26 DEMOLITION/DECOMMISSION EX. FACILITIES 1 LS $88,700.00 $88,700.00 X 27 GRAVEL BORROW - SCHEDULE C 7000 TN $80.00 $560,000.00 X 28 DEMOBILIZATION - SCHEDULE C 1 LS $2,700.00 $2,700.00 Total $657,900.00

EXHIBIT A
CONTRACTOR'S BID PROPOSAL, PROJECT MS26-111
21/ Construction Contract/1MG SCLA RECLAIMED WATER RESERVOIR 2/ PROJECT MS26-111

ATTACHMENT D -

CONSULTANT/

PROFESSIONAL

SERVICES

PROVIDER

AGREEMENT
1 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1
CON

SULTANT/PROFESSIONAL SERVICES PROVIDER AGREEMENT

BY AND BETWEEN

VICTORVILLE WATER DISTRICT
AND
DAVID EVANS AND ASSOCIATES, INC.

FOR
SCLA RECLAIMED WATER RESERVOIR II WITH 1,000,000 GALLON CAPACITY & PUMP STATION, PROJECT CC22-019-1

THIS CONSULTANT/PROFESSIONAL SERVICES PROVIDER AGREEMENT (hereinafter “Agreement”), dated this __________________ day of ______________, 20___, for reference purposes only, is made and entered into by and between the VICTORVILLE WATER DISTRICT, a County water district and subsidiary district of the City of Victorville, organized and existing in the County of San Bernardino under and by virtue of the laws of the State of California, hereinafter referred to as the “ District”, and David Evans and Associates, Inc. , an Oregon corporation, hereinafter referred to as “ Consultant.” District and Consultant are sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties.” RECI
TALS:

WHE
REAS, the District previously issued a Request for Proposals (“ RFP”) to procure design and associated professional engineering services for the SCLA Reclaimed Water Reservoir II with 1,000,000 Gallon Capacity & Pump Station (Project No. CC22-019); and WHE
REAS, on December 7, 2021, following the completion of the RFP evaluation process, the District selected Consultant for contract award, and on or about January 7, 2022, the Parties entered into a Consultant/Professional Services Provider Agreement with a three -year term (the “Original Agreement”), which was subsequently extended through January 5, 2026 , by means of an amendment by the Parties dated January 10, 2025; and WHE
REAS, adjustments to the project schedule have been made in response to staffing changes and evolving priorities, and an extension of Consultant’s services is necessary to ensure continuity, cost effective project advancement, and successful transition into the construction management phase; and
WHE
REAS, Consultant remains fully qualified to perform the professional services required for performance under this Agreement by virtue of its experience and the training, education and expertise of its principals and its employees; and WHE
REAS, in light of the facts set forth above, the District desires to again retain the services of Consultant to provide, on an independent contractor basis, professional engineering, construction bidding and support services , and associated services for the SCLA Reclaimed Water Reservoir II with 1,000,000 Gallon Capacity & Pump Station, Project No. CC22-019- 1(the “Project”).

NOW

THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE 2 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS

The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth fully herein.

Section 2. SCOPE OF SERVICES

Consultant shall provide to the District those services set forth in the Scope of Services, attached hereto as Exhibit “A” , and incorporated as part of this Agreement by this reference.

This Agreement addresses a continuation of the scope of services from the Original Agreement, focusing specifically on remaining Tasks 6 and 7.

Section 3. COMPENSATION

The District shall pay to Consultant a sum not to exceed Eighty T wo Thousand Thirty Nine and 00/100 Dollars ($82,039.00) for faithful performance of the services to be rendered under this Agreement, subject to the Cost Proposal provisions of Section 4, below. No expense reimbursements, including, but not limited to, reimbursements for travel, parking, lodging, and/or meals shall be paid to Consultant unless such expense reimbursements: (i) are specifically provided for and described by nature and type in Exhibit “B”, below; (ii) appear on Consultant’s monthly invoices to District; (iii) are supported by the appropriate receipts and other such documentation as the District shall require; and (iv) are directly related to the Scope of Services to be performed under this Agreement. In addition, any and all reimbursements shall be made in accordance with any District policy governing same.

Section 4. COST PROPOSAL

The District shall pay Consultant as provided in the Cost Proposal, attached hereto as Exhibit “B”, and incorporated as part of this Agreement by this reference. The provisions of Exhibit “B” notwithstanding, in order to receive payments, Consultant shall be required to submit to the District detailed monthly invoices which include, if applicable, a description of all services/tasks performed, the number of hours expended on each service/task, the name of the person performing the service/task, and expense reimbursement information, if any, as required by Section 3, above. Provided that services have been rendered in accordance with the Standard of Performance, invoices shall be paid by the District approximately thirty (30) working days following receipt of Consultant’s invoice.

Section 5. PREVAILING WAGES

Consultant is aware of and acknowledges the requirements of California Labor Code Sections 1720 through 1861, and those set forth in Title 8 of the California Code of Regulations, Section 16000 et seq. (collectively hereinafter the “ Prevailing Wage Law ”), which require the payment of prevailing wage rates and compliance with other labor-related requirements for certain "public works" and "maintenance" projects including, but not limited to, the design and preconstruction phases of a covered public works project (such as land surveying and materials testing), as well as postconstruction phases (such as inspection services) . If the Services being provided under this Agreement, either in whole or in part, constitute “public works” or “maintenance”, as the Prevailing Wage Law defines those terms, and/or if the District’s original solicitation documents for the Project Services so specified, Consultant and its subcontractors (if any), shall comply with all applicable provisions of the Prevailing Wage Law. Consultant shall 3 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

defend, indemnify, and hold the District, its elected officials, officers, employees, and agents free and harmless from any claims, liabilities, costs, penalties, or interest arising out of any failure or alleged failure by Consultant to comply with the Prevailing Wage Law.

Section 6. TERM OF AGREEMENT

Unless earlier terminated in accordance with the provisions in Section 21 of this Agreement, the term of this Agreement shall be for a period of not more than two (2) years, commencing on May 13, 2026, and expiring on May 12, 2028 (the “Initial Term”). This Agreement shall automatically terminate and end upon the expiration of the Initial Term unless: (a) option periods are provided for herein and are exercised by the District; or (b) the term of this Agreement is extended by written agreement of the Parties prior to the expiration of the Initial Term.

This Agreement may be extended for one (1) additional one- year period (hereinafter “Option Period”), at the option of the District , subject to satisfactory performance as determined by the District. District shall give Consultant sixty (60) days advance written notice prior to the expiration of the Initial Term and sixty (60) days advance written notice prior to the expiration date of each subsequently exercised Option Period, if any, should the District decide to exercise its option to extend. If District does not give Consultant such written notice of its option to extend, this Agreement shall terminate at the end of the Initial Term or at the end of the then -current Option Period (as applicable) without further notice from either Party, unless terminated earlier pursuant to the provisions of Section 21 or otherwise extended by written agreement of the Parties.

Section 7. INDEPENDENT CONTRACTOR STATUS

It is the express intention of the Parties that Consultant is an independent contractor and not an employee, agent, joint venture, or partner of the District. Nothing in this agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between the District and Consultant or any employee or agent of Con sultant. Both P arties acknowledge that Consultant is not an employee for state or federal tax purposes or any other purpose. Consultant shall retain the right to perform services for others during the term of this agreement.

Section 8. REPRESENTATIONS AND ACKNOWLEDGMENTS

REGARDING INDEPENDENT CONTRACTOR STATUS OF

CONSULTANT

a. Consultant represents and acknowledges the following:

(1) The District is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the District.

(3) The services described in this Agreement can be performed without the use of District equipment, materials, tools, or facilities, unless otherwise provided under a separate agreement.

(4) Nothing in this Agreement shall be interpreted to imply that the District must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.
4 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

(5) The District will not be requested or demanded to assume any liability for the direct payment of any salary, wage, or other such compensation to any person employed by Consultant to perform the services described in this Agreement.

(6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the District.

b. The District represents and acknowledges the following:

(1) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.

(2) The District will not hire, supervise, or pay any employees or assistants working for Consultant pursuant to this Agreement.

(3) Nothing in this Agreement shall be interpreted to imply that Consultant must maintain any contractual relationship with the District on a continuing basis after termination of this Agreement.

(4) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement.

(5) Consultant is not required to devote full time to the business operations of the District in order to perform the services set forth in this Agreement.

(6) Unless deemed necessary under certain circumstances, Consultant is not required to perform the services set forth in this Agreement at City Hall or on District -owned property.
(7) Other than attendance at required public meetings and public hearings, and complying with the provisions of the Cost Proposal set forth in Exhibit “B” and any procedural requirements set forth by law, Consultant is not required to perform the services set forth in this Agreement in any particular order or sequence.

(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.

Section 9. NOT AGENT OF THE DISTRICT

a. Nothing contained in this Agreement shall be deemed, construed, or represented by the District or Consultant or by any third person to create the relationship of principal and agent.

b. Consultant shall have no authority, express or implied, to act on behalf of the District in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the District to any obligation whatsoever.

Section 10. LICENSES AND PERMITS

Consultant represents that it has obtained and will maintain at all times during the I nitial Term (and during the Option Period, if applicable) of this Agreement all business licenses, including but not limited to a City of Victorville business license, professional licenses or 5 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

certifications, or business permits necessary for performing the services described in this Agreement.

Section 11. STANDARD OF PERFORMANCE; WARRANTY

a. Consultant agrees to perform all services required by this Agreement in a professional and competent manner, in accordance with the degree of skill and diligence which is normally employed by reputable professionals performing similar services under similar conditions in the same or similar locality.

b. By executing this Agreement, Consultant warrants that it:

(1) Has reviewed and considered the services and work to be performed;

(2) Has reviewed the issues regarding the scope of services to be provided;

(3) Has carefully considered how the services and related work should be performed; and

(4) Fully understands the facilities, difficulties and restrictions associated with performance of the services required by this Agreement.

Section 12. FAMILIARITY WITH WORK

Should Consultant discover any latent or unknown conditions materially differing from those inherent in the services or as represented by the District, Consultant shall promptly inform the District of such fact and shall not provide any services, except at Consultant's risk, until written instructions are received from Fredy A. Bonilla, P.E., City Engineer, or his designee.

Section 13. CONFLICTS OF INTEREST

Consultant covenants that it does not have any interest, nor shall it acquire any interest, directly or indirectly, which would conflict in any manner with the performance of Consultant’s services under this Agreement. Consultant further covenants that in the performance of services under this Agreement, no officer, employee or agent of Consultant having such interest shall be employed by it. In the event the District determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file such Form 700 with the District Secretary’s Office pursuant to the written instructions provided by the District Secretary. Acquisition or maintenance of a conflicting interest by Consultant may result in termination of this Agreement by the District.

Section 14. COMPLIANCE WITH LAWS

Consultant shall comply with all local, state, and federal laws and regulations applicable to the services to be rendered hereunder in effect at the time of the services, including any rule, regulation, or bylaw governing the conduct or performance of Consultant or its employees, officers, or board members.

Section 15. COMMERCIAL GENERAL AND AUTOMOBILE LIABILITY

INSURANCE

a. Consultant shall procure and maintain at its own expense, during the I nitial Term of this Agreement (and during the Option Period, if applicable) , Commercial General Liability 6 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

Insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by Consultant or its officers, employees, servants, volunteers, and agents and independent contractors.

b. Consultant shall further procure and maintain, at its own expense, during the Initial Term of this Agreement, (and during the Option Period, if applicable), Commercial Vehicle Liability Insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit, covering any vehicle utilized by Consultant or its officers, employees, servants, volunteers, agents and independent contractors in performing the services required by this Agreement.

Section 16. WORKERS' COMPENSATION INSURANCE

a. Consultant shall procure and maintain at its own expense, during the I nitial Term of this Agreement (and during the Option Period, if applicable), Workers' Compensation Insurance, providing coverage as required by the California State Workers' Compensation Law.

b. If any class of employees employed by the Consultant pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the District.

Section 17. PROFESSIONAL LIABILITY INSURANCE

Professional Liability Insurance or Errors and Omissions insurance as appropriate to Consultant’s profession shall be required and written on a policy form specifically designed to provide coverage for and protect against the negligent acts, errors and omissions of the Consultant in the performance of the services required by this Agreement. A minimum limit of One Million Dollars ($1,000,000) per claim and in the aggregate must be provided.

Section 18. ADDITIONAL INSURED

Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, all insurance policies, except for the Workers' Compensation, shall be endorsed to name the District , the City of Victorville, their officers, employees, servants, volunteers, agents and subcontractors , including, without limitation, the District Legal Counsel, as Additional Insureds.

Section 19. WAIVER OF SUBROGATION RIGHTS

Consultant shall require the carriers of all required insurance policies , to waive all rights of subrogation against the District, the City of Victorville, and their officers, employees, servants, volunteers, agents, and independent contractors and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 20. PROOF OF INSURANCE COVERAGE; REQUIRED

ENDORSEMENTS

a. Consultant shall secure from a good and responsible company or companies authorized to transact insurance business in the State of California, the policies of insurance required by this Agreement and furnish to the Clerk certificates of insurance evidencing the required coverage, and policy endorsements at least two (2) weeks prior to the commencement of any services to be performed under this Agreement.
7 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

b. The policies and certificates of insurance shall be endorsed to provide that in the event of cancellation or amendment that does not meet the requirements of this Agreement of any required insurance policy for any reason whatsoever, the District 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.

c. Each policy and certificate of insurance shall be endorsed to provide that the policy shall not be terminated or expire without first providing thirty (30) days written notice to the District of such termination or expiration.

d. Each policy and certificate of insurance shall be endorsed to provide that the policy will be maintained throughout the Initial Term (and during the Option Period, if applicable), of this Agreement.

e. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Consultant’s commercial general liability and automobile liability insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the District, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the District, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”

Section 21. TERMINATION OR SUSPENSION

a. This Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of such termination or suspension. In the event of such termination, the District shall only be liable for payment under the payment provisions of this Agreement for satisfactory services rendered or supplies actually furnished prior to the effective date of termination.

b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the District shall only be liable for payment under the payment provisions of this Agreement for services rendered or supplies actually furnished prior to the effective date of termination.

Section 22. TIME OF THE ESSENCE

Time is of the essence in the performance of this Agreement , provided that Consultant’s services must in all events be governed by the exercise of sound professional practices.

Section 23. INDEMNIFICATION

a. Except as set forth in Subsection b of this Section 23, and to the fullest extent permitted by law, Consultant shall indemnify, defend, and hold harmless the District, its officers, employees, representatives, and agents (the “District Indemnitees”), from and against those actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and reasonable attorneys’ fees, for any personal injuries, deaths, or property damage, including property owned by the District (collectively “Claims”) to the extent arising out of Consultant's negligence or willful misconduct in the performance of the services described in this Agreement, 8 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

unless such Claims are proven to be caused by the negligence or willful misconduct of the District Indemnitees.

b. The provisions of this Subsection b apply only in the event that Consultant is a design professional within the meaning of California Civil Code section 2782.8 (“ Design Professional”). The term Design Professional, as defined in said section, is limited to licensed architects, licensed landscape architects, registered professional engineers, professional land surveyors, and the business entities that offer such services in accordanc e with the applicable provisions of the California Business and Professions Code.

(1) Notwithstanding the provisions of Subsection a above, to the extent that the services to be provided under this Agreement are those of a Design Professional, Consultant's duty to indemnify, hold harmless, and defend the District Indemnitees shall be limited to the extent that any Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, its officers, agents, employees or subconsultants in the performance of the services described in this Agreement.

(2) In no event shall the costs of defense charged to Consultant exceed the Consultant’s proportionate percentage of fault, except as otherwise set forth in said Civil Code section 2782.8, the provisions of which are incorporated into this Agreement by this r eference.

Nothing in this Subsection b shall be construed to require Consultant to provide indemnification for Claims caused by the active negligence or willful misconduct of the District Indemnitees.

c. The District does not and shall not waive any rights that it may have against Consultant under this Section, because of the acceptance by the District, or the deposit with the District, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless and indemnification provisions of this Section 23 shall apply regardless of whether said insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense described herein.

d. The obligation to indemnify and defend, as set forth in this Section 23, is binding on the successors, assigns, or heirs of Consultant and shall survive the expiration or any early termination of this Agreement.

Section 24. REPORTS

Upon request by Fredy A. Bonilla, P.E., City Engineer, or his designee, or as otherwise required by this Agreement, including but not limited to, the Scope of Services set forth in Exhibit “A”, Consultant shall prepare and submit reports to the District concerning Consultant's performance of the services required by this Agreement.

Section 25. RECORDS

a. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Fredy A. Bonilla, P.E., City Engineer , or his designee, to evaluate the cost and the performance of such services.

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles.

c. Fredy A. Bonilla, P.E., City Engineer , or his designee, 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. 9 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

d. Records and supporting documents pertaining to the use of funds paid to Consultant hereunder shall be retained by Consultant and made available to Fredy A. Bonilla, P.E., City Engineer, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

Section 26. RESERVED

Section 27. CONFIDENTIALITY; OWNERSHIP OF WORK

a. Any and all documents and information obtained from the District or prepared by Consultant for the District shall be kept strictly confidential unless otherwise provided by applicable law. All District data, documents and information shall be returned to the District upon termination of the Agreement. Consultant shall not be required to destroy or alter any Confidential Information or Confidential Materials contained in its computer-backup files pursuant to its regular internal records retention policies.

b. Any drawings, specifications, reports, records, documents, or other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of Fredy A. Bonilla, P.E., City Engineer , or his designee, or as required by applicable law , rule, regulation, court order, government or investigation.

c. Consultant shall not disclose to any other entity or person any information regarding the activities of the District, except with the prior written approval of Fredy A. Bonilla, P.E., City Engineer, or his designee, or as required by applicable law.

d. All original documents, reports, designs, computer files and all other materials prepared by Consultant in the course of performing the services pursuant to this Agreement, whether completed or in progress, are the property of the District upon compensation to Consultant and shall be surrendered to the District upon the completion of Consultant’s services or when requested by Fredy A. Bonilla, P.E., City Engineer, or his designee. Such materials may be used, reused or otherwise disposed of by the District without the permission of Consultant.

Any reuse or modification of the documents without the permission of Consultant shall be at the sole risk of the District.

e. Consultant’s covenants under this Section 27 shall survive the termination of this Agreement.

Section 28. PRINCIPAL REPRESENTATIVES

a. Rodney Langer, Associate Vice President, or alternatively Craig Sheahan, Vice President, is designated as the principal representative of Consultant for purposes of communicating with the District on any matter associated with the performance of the services set forth in this Agreement.

b. Fredy A. Bonilla, P.E., City Engineer , or his designee, shall be the principal representative of the District for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

c. Either Party may designate another individual as its principal representative by giving written notice of such designation to the other Party.

10 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

Section 29. MODIFICATIONS AND AMENDMENTS; EXTRA SERVICES

a. This Agreement may be modified or amended only by a written instrument signed by both Parties.

b. During the Initial Term, the District may request that the Consultant perform Extra Services. As used herein, "Extra Services" means any services, which are determined by the District to be necessary for the proper completion of SCLA Reclaimed Water Reservoir II with 1,000,000 Gallon Capacity & Pump Station, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. A written instrument signed by both Parties shall be required to authorize performance of and payment for Extra Services.

Section 30. ENTIRE AGREEMENT

a. This Agreement supersedes any and all prior or contemporaneous agreements, either oral or written, between the District and Consultant with respect to the subject matter of this Agreement.

b. This Agreement contains all of the covenants and agreements between the Parties with respect to the subject matter of this Agreement, and each Party to this Agreement 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 Agreement.

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

Section 31. AMBIGUITIES

This Agreement 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 agains t 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 Agreement.

Notwithstanding the foregoing, the Parties agree that Exhibits “A” and “B” are attached hereto for reference purposes and to the extent there are any ambiguities, inconsistencies or conflicts between the terms of this Agreement and Exhibit s “A” and “B” , the terms of this Agreement shall control and nothing set forth in Exhibit s “A” and “B” shall be deemed to supersede any of the provisions of this Agreement.

Section 32. NOTICES

a. Any notice to be provided pursuant to this Agreement shall be in writing and addressed to the Parties as set out below. A ll such notices shall be delivered: (a) by personal service; (b) by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid; or (c) by electronic mail to the address of the recipient Party as set forth below, with written confirmation of receipt (which does not include automatic email system generated “read” receipts):

11 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

To the District: Fredy A. Bonilla, P.E., City Engineer
Engineering Department
City of Victorville
14343 Civic Drive
Victorville, CA 92392
Email: [email protected]

To Consultant: Craig Sheahan, PE, PMP, ENV SP, Vice President David Evans and Associates, Inc.
17782 17th Street, Suite 200
Tustin, CA 92780
Email: [email protected]

b. Notices, payments, and other documents shall be deemed received by the recipient: (a) upon the date delivered, if given by personal service; (b) if given by electronic mail, upon confirmation of receipt (which does not include automatic email system generated “read” receipts); or (c) as of the second (2nd) day after deposit in the United States mail.

Section 33. NON-LIABILITY OF OFFICERS OR EMPLOYEES OF

THE PARTIES

Except as may otherwise be permitted by law, no officer or employee of either Party shall be personally liable to the other Party, or any successor in interest, in the event of any default or breach by the other Party or for any amount, which may become due to the non-breaching Party or to its successor(s), or for any breach of any obligation of the terms of this Agreement.

Section 34. REVIEW BY ATTORNEYS

Each Party hereto has had its attorney(s) review this Agreement and all related documents. Each Party hereto has consulted with its attorney(s) and has negotiated the terms of this Agreement based on such consultation.

Section 35. WAIVER

a. No waiver shall be binding unless executed in writing by the Party making the waiver.

b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision.

c. Failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of such provision or any of the remaining provisions of this Agreement.

Section 36. ASSIGNMENT

This Agreement shall not be assigned by either Party without prior written consent of the other Party.

12 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

Section 37. CARE OF WORK

The performance of services by Consultant or the payment of money by the District shall not relieve Consultant from any obligation to correct any failure to meet the Standard of Performance at no further cost to the District, when such incomplete, inaccurate or defective work is due to the negligence of Consultant.

Section 38. CAPTIONS AND HEADINGS

The captions and headings contained in this Agreement 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 39. SUCCESSORS, HEIRS, AND ASSIGNS

Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties.

Section 40. GENDER

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 41. SEVERABILITY

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 Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

Section 42. GOVERNING LAW

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

Section 43. DEFAULT

a. Failure or delay by any Party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the Party who is otherwise claimed to be in default by the other Party commences to cure, correct, or remedy the alleged default within fifteen (15) days after receipt of written notice specifying such default and shall diligently complete such cure, correction, or remedy, such Party shall not be deemed to be in default hereunder.

b. The Party claiming that a default has occurred shall give written notice of default to the Party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the 13 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

injured Party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein.

c. Any failure or delay by a Party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.

d. In the event that a default by any Party to this Agreement may remain uncured for more than fifteen (15) days following written notice, as provided above, the injured Party shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings.

Section 44. CUMULATIVE REMEDIES

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, 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 exercis e 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.

Section 45. VENUE

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

Section 46. ATTORNEYS’ FEES

In the event any action, suit, or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement, or as a result of any alleged breach of any provision of this Agreement, the substantially prevailing Party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorneys’ fees, from the losing Party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 47. EFFECTIVENESS OF AGREEMENT

This Agreement shall not be binding upon either Party , until signed by the authorized representative(s) of Consultant, approved as to form by District Counsel, approved by the District’s Risk Manager, and executed by authorized District personnel or the District Chairman.

Section 48. REPRESENTATIONS OF PARTIES AND PERSONS EXECUTING

AGREEMENT

a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.

b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

14 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

Section 49. COUNTERPARTS

This Agreement 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 Agreement.

(END OF THIS PAGE)

15 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

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

VICTORVILLE WATER DISTRICT DAVID EVANS & ASSOCIATES,
INC.

By:______________________________ By:__________________________ Keith C. Metzler, Rodney Langer, PE,
General Manager Associate Vice President

Dated: ___________________________ Dated:_______________________

APPROVED AS TO FORM:

By: ______________________________
Andre de Bortnowsky,
District Legal Counsel

Dated: ___________________________

RISK MANAGEMENT APPROVAL:

By: ______________________________
Sandra Bostick,
District Risk Manager

Dated: ___________________________

16 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

EXHIBIT A

SCOPE OF SERVICES

See Attachment

Exhibit A

SCOPE OF SERVICES
SCLA RECLAIMED WATER RESERVOIR II WITH 1,000,000 GALLON CAPACITY & PUMP STATION, PROJECT CC22-019-1
May 13, 2026
The Scope of Services addresses provision of bid and construction support services for the subject project. The design was completed by David Evans and Associates, Inc. (DEA) under a prior agreement. DEA will be supported by an electrical engineering subconsultant, Linkture, who completed the design under the prior DEA agreement.

The Project consists of the following work, to be completed by the Victorville Water District (District) through a public works construction contract:
• Demolition of existing reclaimed water pump station including decommissioning and filling of existing reclaimed water pond
• Site preparation including removal and offsite disposal of contaminated surface soils, grading, fill, surfacing, local stormwater management facilities, and perimeter fencing
• Design, permitting and construction of a 1,000,000 gallon reclaimed water storage reservoir, consisting of a partially buried pre-stressed concrete reservoir, with external stairs, internal ladder, hatches, vent and appurtenances • Design, permitting and construction of a multi-pump (vertical turbine) booster pump station in a building with a pump room, electrical equipment room and restroom, with adjacent valve vault.
• Site inlet and outlet reclaimed water piping including multiple connections to Victor Valley Wastewater Reclamation Authority reclaimed water pipe • Offsite potable water backup supply pipe to the reservoir • Additional elements supporting the above listed primary scope of planned construction improvements.

The Scope of Services consists of the following (task numbers from the original agreement, as applicable to remaining work, are used for the following):

Task
1 – Project Administration
The DEA Project Manager will monitor progress and status on a monthly basis and, with the support of a Project Coordinator and accounting team members, prepare monthly invoices for services completed the prior month.

EXHIBIT A
SCOPE OF SERVICES, PROJECT CC22-019-1
17/ Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1 Deliverables:
• Monthly invoices

Task 6 – Bid Support Services
DEA and Linkture will support the City during the bid advertisement period by providing clarifications and information needed to respond to bidders’ questions. Input for preparation of one Addendum to respond to bidder’s questions will be provided, for update of the construction plans and/or technical specifications. DEA will attend the pre- bid meeting if requested (by remote meeting such as Teams or Zoom). Conformed plans and technical specifications will be provided at the end of the bidding phase.

Deliverables:
• Input for one addendum, in PDF format
• Conformed construction plans and technical specifications, as needed, to incorporate changes addressed in the addendum , with changes flagged as revisions

Task 7 – Construction Support Services
DEA and Linkture will provide the following construction support services:
• Respond to up to 30 contractor requests for information (RFIs) including preparing supplementary details and sketches for clarification
• Review and provide recommendations for up to five construction change orders • Attend pre-construction and up to seven additional construction meetings (all such meeting attendance shall be by remote meeting such as Teams or Zoom) • Review up to 40 submittals and shop drawings including original and re-submittals, including coordination with District regarding acceptance of alternative or substitute materials or equipment prior to finalizing recommended response • Complete up to three site visits (DEA California staff, likely from Ontario or Temecula offices) to support City in review of field conditions for civil/site/drainage/water/sewer/reclaimed water/tank or booster pump matters • Review for compliance the operation and maintenance (O&M) manuals for major equipment
• Prepare record drawings based on contractor and District notations of changes made during construction and changes reflected in responses to RFIs and change orders

EXHIBIT A
SCOPE OF SERVICES, PROJECT CC22-019-1
18/ Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1 Deliverables:
• All response materials for RFIs including supporting details and sketches, all change order materials, submittal and shop drawing materials, and O&M materials shall be received, shared and responded to in PDF format. • C onstruction plans revised to incorporate changes incorporated in the construction, in PDF format, in printed format on mylar, and in AutoCAD .dwg format

Assumptions and Clarifications
District or contractor will provide all surveying and construction staking services.

District will complete the following:
• Advertise project for bid
• Distribute bid documents and addendum to registered plan holders • Maintain plan holders list
• Conduct pre-bid meeting
• Receive, open and tabulate all bids, review apparent low bids for accuracy and responsiveness and recommend award to the District management • Complete construction contract with selected contractor • Schedule and lead the pre-construction conference
• Prepare monthly pay estimates and final contract change orders for execution by District and contractor
• Complete all construction observation services including preparation of a punch list, confirm completion of punch list, observe all testing and commissioning and support the contractor in placing the completed project in service

EXHIBIT A
SCOPE OF SERVICES, PROJECT CC22-019-1
19/ Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1 20 Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1
EXH
IBIT B
C

OST PROPOSAL AND FEE SCHEDULE
S
ee Attachment
Exhibit B

COST PROPOSAL AND FEE SCHEDULE
SCLA RECLAIMED WATER RESERVOIR II WITH 1,000,000 GALLON CAPACITY & PUMP STATION, PROJECT CC22-019-1
Cos
t Proposal
(s
ee following page)

EXHIBIT B
COST PROPOSAL AND FEE SCHEDULE, PROJECT CC22-019-1
21/ Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1

Project Number VCTR00WD
Date 5/13/2026
Prepared By RCLA
Project
Manager
Project
Engineer
PE -
Stormwater -
CA staff
PE Civil -
CA staff
Design
Engineer

CAD/GIS
Technician
Project
Coordinator
294.50$ 260.40$ 226.30$ 204.72$ 14 1.05$ 170.50$ 134.08$ 1 Project Administration 36 6,752$ 6,752$

1.1 Project Administration 12 24 36 6,752$
6 Bid Support Services 32 7,150$ 8,823$

6.1 Bid Inquiries/Addendum 8 4 8 20 4,762$

6.2 Pre-bid Conference 2 2 589$

6.3 Conformed Plans 1 1 8 10 1,800$
7 Construction Support
Services 265 59,389$ 66,464$

7.1 RFI Response 12 20 10 42 10,153$

7.2 Change Order review 12 20 32 8,742$

7.3 Precon/Addn meetings 10 10 2,945$

7.4 Submittals Review 16 40 48 104 21,898$

7.5 Site Visits (CA staff) 8 16 24 5,086$

7.6 O&M Review 4 12 16 32 6,560$

7.7 Record Drawings 1 4 2 14 21 4,005$
78 100 8 16 77 30 24 333 73,291$ 82,039$
431$ 73,291$
8,317$ 8,748$
8,748$ 82,039$
Mileage & Other Expenses Total Estimated Labor
David Evans and Associates, Inc. 14432 SE Eastgate Way, Suite 400, Bellevue, WA 98007 425.519.6500 www.deainc.com Total Expenses
Notes and Assumptions:
(1) See detailed Scope of Work dated 05/13/26.
(2) All hours and expenses are estimated, and may be increased or decreased within the total budget limit at the discretion of DEA's project manager. The DEA project manager may transfer budget from estimated expenses to labor and vice versa, as the project manager may determine appropriate. Work will be billed on a time and expense basis, subject to the limit of the not-to-exceed Total Fee Estimate value. (3) Client shall be responsible for direct payment of all permit, agency review, advertisement, service, or other project expenses not expressly included in the Project Fee Estimate and/or Scope of Work.

David Evans and
Associates, Inc.

Project Fee Estimate Summary and Total
Total Fee Estimate
Subconsultants Total Estimated Expenses
DEA Labor
Total
Hours
Total Estimated
Fee
Estimated Expenses
Total - w/
Expenses and
Subs.

Total
Task/Subtask (1)
Project Fee Estimate
SCLA Reservoir II and Pump Station
Victorville Water District
Personnel Positions and Approximate Hourly Billing Rates Estimated DEA Labor - Civil Engineering Services

EXHIBIT B
COST PROPOSAL AND FEE SCHEDULE, PROJECT CC22-019-1
22/ Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1 Fee Schedule

HOURLY BILLING RATES

Hourly rates for services provided under this Agreement shall be an amount equal to the provider's hourly wage multiplied by a factor not to exceed 3.1. In addition, services provided by subconsultants or subcontractors and reimbursement for direct projec t expenses shall be reimbursed at the actual invoice charge times a factor of 1.10.

For information only, application of the statement above results in the following hourly rates for personnel that are anticipated to provide services under the Agreement. These rates are subject to change on or about March 1, 2027.

Rodney Langer Project Manager IV $294.50
Zack Worley Engineer V $260.40
Eddy Oune Project Manager (Stormwater) $226.30
Michael Becerra Designer III (Stormwater) $161.20
Ryan Williams Engineer IV $204.72
Danica Dytioco Engineering Designer I $132.80
Scott Stcherbinine GIS Analyst III $155.84
Olivia Werdal Project Coordinator II $128.00

EXHIBIT B
COST PROPOSAL AND FEE SCHEDULE, PROJECT CC22-019-1
23/ Consultant/Professional Services Provider Agreement/David Evans & Associates, Inc./Project CC22-019-1 ATTACHMENT E –

VMUS PROPOSAL
760.243.6340
FAX 760. 269.0039
[email protected]
https://www.victorvilleca.gov/
14343 Civic Drive
P.O. Box 5001
Victorville, California 92393 -5001

CITY OF

VICTORVILLE

Victorville Municipal Utility Services
Electrical Service Line Extension Installation Proposal.

One-Million-Gallon Reclaimed Water Tank Electrical Service Line Extension.

Project Scope Summary:

VMUS will be installing a new electrical service line extension from a distribution system connection point at the corner of Innovation & and Nevada street, through a section of the old Airforce base housing at SCLA to Water Department One-Million-Gallon Reclaimed Water Tank project site. This project will require demolition of two abandoned housing structures and grading of a 10ft wide new Utility Easement, along the South side of the Proposed future Innovation Way Right of Way, that will be overseen by Water/Engineering, with the cost for demolition & grading included in the electrical service line extension.

VMUS will furnish a set of Issued for construction set of plans for the service line extension, purchase and install all conduit, substructures, cable, switches, transformers and transformer pads, metering equipment, pull all cable and wire, make connection from the VMUS distribution system point of interconnection into the Water Department Installed project switchgear. All components associated in the electrical service extension will be purchased by VMUS with funds provided from the Water Departments over all tank project costs. Longer lead time pieces of equipment can be pulled from VMUS inventory and utilized for the service installation, equipment will be purchased and replaced in VMUS inventory when received.

Project site:

See: “SITE DEMOLITON PLANS FOR VMUS UTILITY EASEMENT AT SCLA FUTURE INNOVATION”.

Project Cost Estimate Breakdown:

Item Qty. Cost per unit Total cost
300kva 12kv-480v transformer 1 $43,000.00 $43,000.00
S&C PME-9, w. Fuses 1 $36,000.00 $36,000.00
Demolision & Grading 1 $50,000.00 $50,000.00
4" sch 40 conduit 5,500 $3.15 $17,325.00
4" sch 40 sweeps 9 $32.50 $292.50
6" sch 40 conduit 160 $5.57 $891.20
6" sch 40 sweeps 3 $298.00 $894.00
6" sch 40 22 1/2 offset. 3 $54.00 $162.00
5'x8' SOE precast pull box 4 $2,500.00 $10,000.00
Jensen xfmr concrete pad 1 $1,500.00 $1,500.00
PME pedestal 1 $964.00 $964.00
600amp T-body term kit 6 $120.00 $720.00
200amp Load-break elbows 6 $65.00 $390.00
1/0 TRXLP 15kv cable 3-C 3,200 $13.90 $44,480.00
1000Kcmil 15kv cable 600 $12.75 $7,650.00
3-sets, 350 MCM USE-2 wire 400 $14.80 $5,920.00
9S meter and CT's 1 $2,898.50 $2,898.50
Engineering/Design 1 $19,505.00 $19,505.00
Materials & Design TOTAL $242,592.20
Installation 1 $0.00 $0.00
TOTAL $242,592.20
Victorville Municipal Utility Services
Utility Distribution Superintendent
Noah Caracciolo.

ATTACHMENT F –

PROPOSED SITE
PLANaAND

SECTION

Site Plan

Tank Section

Item Number: 12
City Council / Board of Directors
Written Communications
Meeting of: September 1, 2026
Submitted By:

Doug Mathews, Director of Public Works and Water

Subject:

Award of Construction Agreements to High Desert Underground, Inc. and Kirtley Construction Inc. for On Call Sewer Lateral and Mainline Repair Services, Project MS26- 135
Recommendation:

That the Honorable City Council award Construction Agreements to High Desert Underground, Inc. and Kirtley Construction Inc. in an aggregate amount not to exceed $500,000 for on call sewer lateral and mainline repair services.

Fiscal Impact:

Funds for these services were appropriated in the Fiscal Year 2026/27 budget under 4250700-52300 (Sewer – Contract Services) and 4250700-52440 (Sewer – Infrastructure Repairs). No additional appropriation is required.

Each Construction Agreement will be established in an amount not to exceed $500,000; however, aggregate expenditures under both agreements combined shall not exceed $500,000. Staff will track expenditures under each agreement to ensure the total authorized amount is not exceeded.

Strategic Plan Goal:

Goal E – Invest in Infrastructure: Supporting a healthy and livable community by providing the necessary resources to maintain and repair the City’s sanitary sewer infrastructure.

The proposed on call agreements will provide additional resources to complete timely sewer repairs, minimize service disruptions, and maintain the reliability of the City’s sanitary sewer collection system.
4 8
7 1
Background:

The City of Victorville Public Works Department, Wastewater Collection Division, is responsible for maintaining and repairing the sanitary sewer collection system within the public right-of-way, including lower sewer lateral connections and sewer mainlines.

Sewer failures can occur unexpectedly and may require immediate response to restore service and prevent or mitigate sanitary sewer overflows (SSOs). Preventing SSOs is critical to protecting public health, the environment, and City infrastructure, while minimizing service disruptions and potential regulatory impacts. Depending on the nature of the repair, specialized equipment, excavation, trenching, traffic control, pavement restoration, or trenchless construction methods may be required.

Although City staff performs routine maintenance and responds to sewer related service calls, certain repairs may require additional staffing, specialized equipment or expertise, or an expedited response. Having qualified contractors available provides Public Works with additional resources to respond promptly to these repairs and helps reduce the potential for service disruptions, SSOs, and further damage to City Infrastructure.

The proposed agreements will provide qualified contractors on an on call, as needed basis for sewer lateral and mainline repairs. Work may include the repair or replacement of residential and commercial sewer laterals, larger diameter sewer mainlines, excavations exceeding five feet in depth, and trenchless repair methods, including pipe bursting and slip lining.

Discussion:

On June 10, 2026, the City released Request for Qualifications (RFQ) No. MS26-135 for Qualified Sewer Lateral Pipeline Repair Contractors. Responses were due July 7, 2026, and Statements of Qualifications were received from the following five firms:
• Big Ben Engineering
• High Desert Underground, Inc.
• Kirtley Construction Inc.
• L Showmee Home Solutions LLC dba Murgreen Environmental Company • Mike Prlich and Sons, Inc.

A three-member evaluation panel reviewed the Statements of Qualifications based on the criteria established in the RFQ: Qualifications and Experience (30 points), Client References (30 points), Ability to Provide the Requested Services in a Responsive and Timely Manner (20 points), and Cost Reasonableness (20 points), for a maximum possible score of 100 points.

Following the evaluation, the firms received the following aggregate scores:

Ranking Contractor Score
1 High Desert Underground Inc. 98.33
2 Kirtley Construction 89.67
4 8
7 1
3 Big Ben Engineering 70.67
4 Mike Prlich and Sons, Inc. 70.00
5 L Showmee Home Solutions LLC dba Murgreen
Environmental Company

66.33 High Desert Underground, Inc. received the highest overall score of 98.33 points, and Kirtley Construction Inc. received the second highest overall score of 89.67 points. High Desert Underground has more than 30 years of experience, while Kirtley Construction has 22 years of experience. Both firms demonstrated the qualifications, experience, resources, and ability to provide the requested sewer repair services.

Based on the evaluation results, staff recommends establishing High Desert Underground, Inc. and Kirtley Construction Inc. as the City's qualified on call contractors.

Having two qualified contractors provides additional flexibility and capacity for planned, emergency, and time sensitive sewer repairs. Work will be assigned on an as needed basis based on the nature of the repair, contractor availability, qualifications, experience, and ability to respond within the required timeframe.

The agreements will have an initial term of one (1) year, with the option for up to four (4) additional one-year extensions at the City's discretion. Each agreement will be established in an amount not to exceed $500,000; however, aggregate expenditures under both agreements combined shall not exceed $500,000 during the initial one-year term. The authorization does not guarantee a minimum amount of work to either contractor.

Establishing these on call agreements will provide Public Works with additional resources to respond efficiently to planned and unanticipated sewer lateral and mainline repairs, maintain the reliability of the sanitary sewer collection system, and reduce the potential for service disruptions and SSOs.

Accordingly, staff recommends that the City Council award Construction Agreements to High Desert Underground, Inc. and Kirtley Construction Inc. for on call sewer lateral and mainline repair services, with each agreement established in an amount not to exceed $500,000; however, aggregate expenditures under both agreements combined shall not exceed $500,000.

Staff is available to answer any questions the City Council may have.

Prepared By:

Summer Burgess, Management Specialist
Attachments: A. High Desert Underground, Inc. Construction Agreement B. Kirtley Construction Inc. Construction Agreement
Attachment A

High Desert Underground,
Inc. Construction Agreement
CIP#___________

1 Construction Agreement/High Desert Underground/Project MS26-135

CONSTRUCTION AGREEMENT

BY AND BETWEEN

THE CITY OF VICTORVILLE
AND
HIGH DESERT UNDERGROUND, INC.

FOR

QUALIFIED SEWER LATERAL PIPELINE REPAIR CONTRACTOR,
PROJECT MS26-135

THIS CONSTRUCTION AGREEMENT (the “Agreement”) dated this __________________ day of ______________, 20___, for reference purpose only, is made and entered into by and between the City of Victorville, a municipal corporation located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and High Desert Underground, Inc., a California corporation, hereinafter referred to as the “Contractor”.

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

RECITALS:

WHEREAS, the City requires Qualified Sewer Lateral Pipeline Repair Contractor, Project MS26-135 (the Project); and

WHEREAS, in light of the facts set forth above, the City desires to retain Contractor in connection with Qualified Sewer Lateral Pipeline Repair Contractor; and

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 Agreement by this reference, as though set forth herein.

Section 2. TERM OF AGREEMENT

This Agreement shall commence on July 1, 2026 (the “Commencement Date”) and shall terminate June 30, 2027 (the “Termination Date”), unless sooner terminated in accordance with the provisions of this Agreement (the “Term”). From and after the Termination Date, and upon subsequent agreement by the Parties, this Agreement may continue on a month-to-month basis until terminated pursuant to Section 3 below.

This Agreement may be extended for Four (4) additional one-year periods (hereinafter “Option Periods”), at the option of the City, subject to satisfactory performance as determined by the City. City shall give Contractor sixty (60) days advance written notice prior to the expiration of the initial Term and sixty (60) days advance written notice prior to the expiration date of each subsequently exercised Option Period, if any, should the City decide to exercise its option(s) to extend. In the event City does not give Contractor such written notice of its option to extend, 2 Construction Agreement/High Desert Underground, Inc./Project MS26-135

this Agreement shall terminate at the end of the then -current Term or Option Period without further notice from either Party, unless terminated earlier pursuant to the provisions of Section 21 below. Should the City fail to give Contractor the sixty (60) days written notice of its intention to exercise any Option Period, the City may, in its sole discretion, elect to exercise any Option Period at a later date, following written inquiry from Contractor.

Section 3. TERMINATION OR SUSPENSION

a. This Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of s uch termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

Section 4. CONTRACT DOCUMENTS; PRIORITY

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 Contract Documents are intended to be correlative and constitute Contractor’s performance obligations:

1. This Agreement.

2. Exhibits A & B.

3. Faithful Performance and Payment Bond.

4. Guaranty.

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 4.a above shall control.

Section 5. CONTRACTOR’S OBLIGATIONS

Contractor shall complete the Project as specifically set forth in the Contract Documents.

Contractor shall furnish, at its own cost and expense, all labor, services, material, tools, equipment, supplies, transportation, and any other items and facilities necessary therefore, as provided in the Contract Documents.

Section 6. COMPENSATION

The Contractor agrees to receive and accept the following amount, not to exceed Five Hundred Thousand and 00/100 Dollars ($500,00 .00), as full compensation for furnishing; all materials, doing all the work contemplated and embraced in this contract, all loss or damage arising out of the nature of the work aforesaid, the action of the elements, any unforeseen difficulties or obstructions which may arise or be encountered in the execution of the work until its 3 Construction Agreement/High Desert Underground, Inc./Project MS26-135

acceptance by the City, and for all risks of every description connected with the work, all expenses incurred by or in consequence of the suspension or discontinuance of work well and faithfully completing the whole work, thereof, according to the requirements of the agreement documents and to the satisfaction of Doug Mathews, Director of Public Works and Water , or his designee, to wit: See Exhibit “A”, Scope of Work.

Section 7. BID PROPOSAL FORMS

The City shall pay Contractor as provided in the Bid Proposal Forms, attached hereto as Exhibit “B”, and incorporated herein by this reference as though set forth in full, subject to approval of the City, when applicable.

Section 8. PREVAILING WAGES

a. Compliance with State Prevailing Wage Law. Pursuant to California Labor Code Section 1773, the City has obtained from the Director of the Department of Industrial Relations (“DIR”) the general prevailing rate of per diem wages and the general prevailing wage rate for holiday and overtime work applicable for each craft, classification, or type of worker in San Bernardino County, California, where the Project is to be performed. Copies of these prevailing rate of per diem wages are on file at the City of Victorville Finance Department/Purchasing Division and shall be made available for review to any interested party on request. Copies of these prevailing rate of per diem wages are also available from the State of California via the internet at http://www.dir.ca.gov/DLSR/PWD. Contractor and its subcontractors shall pay not less than said specified prevailing rate of per diem wages to all workers employed by them in the performance of any work under this Agreement which constitutes “public works” or “public work”, including without limitation, Qualified Sewer Lateral Pipeline Repair Contractor, and any other work or services described in or encompassed by California Labor Code (“Labor Code”) Sections 1720 through 1720.9, 1771, and 1772. Contractor shall be solely responsible for using the correct and current prevailing wage rates and performing 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, or compliance with the maintenance and inspection of payroll records, posting of prevailing wage rates at the work/job site, employment of apprentices, and other requirements of Labor Code Section 1720 et seq.; Labor Code Section 1810 et seq .; California Code of Regulations, Title 8, Section 16000 et seq.; and all other applicable State labor laws.

b. Designation as Contractor Not Determinative . For purposes of this Agreement, Contractor and its subcontractors shall be subject to and shall comply with all provisions of the Labor Code applicable to contractors and subcontractors when they are engaged in the performance of any work under this Agreement which constitutes “public works” or “public work” as defined in subsection a above, despite being designated as a Contractor.

c. Conflict. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the provisions of this Section and the terms of Exhibit “A” or Exhibit “B” of this Agreement, the provisions of this Section shall control and nothing herein shall be considered as an acceptance of the terms of Contractor’s Scope of Services, scope of work, bid proposal, cost proposal, and/or fee schedule which conflict with the provisions of this Section.

d. Payroll Records . Contractor and its subcontractors 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 4 Construction Agreement/High Desert Underground, Inc./Project MS26-135

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 information contained in the payroll record is true and correct; and

(b) Contractor or subcontractor has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any covered work performed by its employees on the Project.

(2) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to the 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 Section 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.

(4) Payment of Invoices . Copies of the certified payrolls, proof of payroll submissions, and appropriate lien releases are required with each invoice to the City.

Payment of the invoice may be delayed when payroll -related documents and/or lien releases are not included with the invoice.

e. 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.

f. 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.

g. Other Labor Requirements . Contractor has the responsibility for and shall comply with all other applicable requirements of Labor Code Section 1720 et seq., Labor Code Section 1810 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 shall require the same of all its subcontractors.

5 Construction Agreement/High Desert Underground, Inc./Project MS26-135

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

(1) Pursuant 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 Agreement 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) Pursuant to Labor Code Section 1813, Contractor or subcontractor shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Agreement 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, except as specified in Labor Code Section 1815. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day.

i. DIR Monitoring. Pursuant to Labor Code Section 1771.4, the Agreement for this Project is subject to compliance monitoring and enforcement by the DIR.

j. 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 Agreement, 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 Agreement is entered into and maintain registration for the duration of the Project.

Section 9. WORKERS’ COMPENSATION INSURANCE

Contractor shall procure and maintain, at its own expense, during the Term of this Agreement, workers’ compensation insurance, providing coverage as required by the California State Workers’ Compensation Law. 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.

In conformance with current statutory requirements of Section 1860 et seq., of the Labor Code of the State of California, the undersigned confirms the following as their certification:

I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions before commencing the performance of the work of this contract.

Section 10. NOTICE TO PROCEED

No work, service, material, or equipment shall be performed or furnished under this 6 Construction Agreement/High Desert Underground, Inc./Project MS26-135

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 as directed by the City in the Notice to Proceed, and to diligently execute the same to completion within the time limits set forth in the Contract Documents.

Section 11. COMPLIANCE WITH LAWS

Contractor shall comply with all local, state, and federal laws and regulations 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 shall be held or obtained by the Contractor at its sole expense.

Section 12. COMMERCIAL GENERAL AND AUTOMOBILE LIABILITY

INSURANCE

Contractor shall procure and maintain at its own expense, during the term of this Agreement, com mercial general liability insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers, and agents and independent contractors.

Contractor shall further procure and maintain, at its own expense, during the Term of this Agreement, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) Combined Single Limit , covering any vehicle(s) utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the services required by this Agreement.

Section 13. COURSE OF CONSTRUCTION/INLAND MARINE INSURANCE

Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom it performing any work under this agreement shall purchase, and maintain insurance to the full contract and insurable value thereof commonly referred to as a Course of Construction, Builders’ Risk, or an Inland Marine policy 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, and or any of its subcontractors, suppliers, vendors, employees, or person whom is performing any work under this agreement shall also be responsible for insuring their owned, leased/rented or borrowed equipment. Insurance should also include a Loss Payee, and a Waiver of Subrogation Endorsement(s) in favor of the City of Victorville.

Section 14. ADDITIONAL INSURED

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 officers, employees, servants, volunteers, and agents and independent contractors, including, without limitation, the City Attorney, are named as Additional Insureds. 7 Construction Agreement/High Desert Underground, Inc./Project MS26-135

Section 15. 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 officers, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 16. PROOF OF INSURANCE COVERAGE; REQUIRED PRIOR TO

COMMENCEMENT OF SERVICES

a. Contractor shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Agreement and furnish to the City Clerk certificates of said insurance at least two (2) weeks prior to the commencement of any services to be performed under this Agreement.

b. The certificates of insurance shall bear an endorsement whereby it is provided 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 non -payment, ten (10) days’ advance written notice shall be given.

c. The certificates of insurance shall bear an endorsement whereby it is provided that the respective insurance policy shall not be terminated or expire without first providing thirty (30) days written notice to the City of such termination or expiration.

d. The certificates of insurance shall indicate that the respective insurance policy will be maintained throughout the Term of this Agreement.

e. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”

Section 17. TIME OF THE ESSENCE

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

Section 18. INDEMNIFICATION

Notwithstanding the limits of any insurance, Contractor shall indemnify the City, its 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, (herein "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 negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising or alleged to arise from the negligent acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's negligent performance of or failure to perform any term, provision, covenant or 8 Construction Agreement/High Desert Underground, Inc./Project MS26-135

condition of this Agreement, but excluding such claims or liabilities or portion of such claims or liabilities arising or alleged to arise from the negligence or willful misconduct of the City its officials, officers, agents, volunteers or employees, and in connection therewith:

a. 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;

b. Contractor will promptly pay any judgment rendered against the City, its officials, officers, agents 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') negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officials, volunteers, officers, agents, and employees harmless there from;

c. In the event the City, its 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 negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officials, volunteers officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City;
d. Contractor's duty to defend and indemnify 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;

The Contractor's indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification from all subcontractors.

Section 19. REPORTS

Upon request by Doug Mathews, Director of Public Works and Water , or his designee, Contractor shall prepare and submit reports concerning Contractor's performance of the work required by this Agreement.

Section 20. RECORDS

a. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Doug Mathews, Director of Public Works and Water, or his designee, to evaluate the cost and the performance of such services.

9 Construction Agreement/High Desert Underground, Inc./Project MS26-135

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles . Doug Mathews, Director of Public Works and Water, or his designee, 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.

c. Doug Mathews, Director of Public Works and Water ,or his designee, 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 Cont ractor and made available to Doug Mathews, Director of Public Works and Water, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

Section 21. MODIFICATIONS AND AMENDMENTS

This Agreement may be modified or amended only by a written instrument signed by both Parties.

Section 22. ENTIRE AGREEMENT

a. This Agreement 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 Agreement.

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 Agreement and the Contract Documents.

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 23. AMBIGUITIES

This Agreement 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 Agreement.

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 Construction Agreement and Exhibit “A” the terms of this Construction Agreement shall control and nothing set forth in Exhibit “A” shall be deemed to supersede any of the provisions of this Construction Agreement.

10 Construction Agreement/High Desert Underground, Inc./Project MS26-135

Section 24. NOTICES

a. Any notice to be provided pursuant to this Agreement 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 the City: Doug Mathews, Director of Public Works and Water, Public Works Department
City of Victorville
14343 Civic Drive
Victorville, CA 92392

To Contractor: Blane Sandwick, President
High Desert Underground, Inc.
13355 Osage Court
Apple Valley, CA 92308

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.

Section 25. NON-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 Agreement.

Section 26. REVIEW BY ATTORNEYS

Each Party hereto has had its attorneys review this Agreement an d all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation.

Section 27. CARE OF WORK

Contractor must adopt reasonable methods during the life of the Agreement 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 at no further cost to the City, when such inaccuracies are due to the negligence of Contractor.

11 Construction Agreement/High Desert Underground, Inc./Project MS26-135

Section 28. CAPTIONS AND HEADINGS

The captions and headings contained in this Agreement 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 29. SUCCESSORS, HEIRS, AND ASSIGNS

Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties.

Section 30. GENDER; PLURAL

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 31. SEVERABILITY

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 Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

Section 32. GOVERNING LAW

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

Section 33. CUMULATIVE REMEDIES

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, 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.

Section 34. VENUE

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

Section 35. ATTORNEY'S FEES

Should any litigation, specifically including but not limited to, arbitration and other non - judicial resolution of disputes be commenced between the Parties to this agreement concerning this agreement or the rights and duties of either i n relation thereto, the Parties prevailing in such 12 Construction Agreement/High Desert Underground, Inc./Project MS26-135

litigation or other proceeding shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for attorney fees in such litigation where the proceeding which, if not agreed upon by the Parties, shall be determined by the court or other entity in which such litigation or other proceeding is brought.

Section 36. EFFECTIVENESS OF AGREEMENT

This Agreement 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 Mayor.

Section 37. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT

a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.

b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

Section 38. COUNTERPARTS

This Agreement 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 Agreement.

Section 39. 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 13 Construction Agreement/High Desert Underground, Inc./Project MS26-135

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)

14 Construction Agreement/High Desert Underground, Inc./Project MS26-135

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

THE CITY OF VICTORVILLE HIGH DESERT UNDERGROUND, INC.

By:_________________________________ By:________________________________ Elizabeth Becerra, Blane Sandwick,
Mayor President

Dated:______________________________ Dated:_____________________________

ATTEST

By:________________________________
Jennifer Thompson,
City Clerk

Dated:_____________________________

APPROVED AS TO STANDARD FORM

By:________________________________
Andre de Bortnowsky,
City Attorney

Dated:_____________________________

By:________________________________
Sandra Bostick,
Risk Manager

Dated:_____________________________

15 Construction Agreement/High Desert Underground, Inc./Project MS26-135

EXHIBIT A

SCOPE OF WORK

City agrees to engage C ontractor and C ontractor agrees to furnish all necessary labor, tools, materials, and equipment for and to do the Work for the Project. The Work shall be performed in accordance with: (i) the Plans and Specifications and applicable Addenda (as generally described in the Request for Qualifications, Project Number MS26-135, for the Project, portions of which are attached hereto for ease of reference as Exhibit "A"; and (ii) the prices set forth in Contractor’s Bid Proposal (attached as Exhibit "B").

See Attachment

SCOPE OF WORK:

The City of Victorville Public Works Department, Sanitary Division, is responsible for the maintenance and repair of the sanitary sewer collection system within the public right -of-way, including lower sewer lateral connections and sewer mainlines. In the event of a sewer lateral or mainline blockage, failure, or other deficiency within the City’s area of responsibility, mitigation or repair may be required with the assistance of a qualified contractor.

As needed, the Contractor shall provide all labor, materials, equipment, and supervision necessary to perform and complete assigned work. The Contractor shall coordinate and manage all aspects of construction to ensure quality workmanship, cost control, and timely completion.

Work may include, but is not limited to, the repair and/or replacement of residential and commercial sewer laterals and sewer mainlines at various locations throughout the City. Typical work involves lateral piping ranging from 3-inch to 6-inch diameter; however, the Contractor shall be capable of performing work on larger diameter sewer mainline infrastructure as required.

Services may require excavation at depths exceeding five (5) feet and the use of trenchless repair methods, including but not limited to pipe bursting and slip lining.

The Contractor shall perform all work in coordination with and under the direction of the City’s Public Works and Engineering Departments.

EXHIBIT A
SCOPE OF WORK, PROJECT MS26-135
16/ Construction Agreement/High Desert Underground, Inc./Project MS26-135 17 Construction Agreement/High Desert Underground, Inc./Project MS26-135 EXH
IBIT B
PR

ICING PROPOSAL
S
ee Attachment
REQUEST FOR QUALIFICATIONS MS26-135 QUALIFIED SEWER LATERAL PIPELINE REPAIR CONTRACTOR

PRICING PROPOSAL
The undersigned declares that the locations of the proposed work, the plans, specifications, and contract documents have been carefully examined; and being familiar with all of the conditions surrounding the work, including the availability of materials and labor, the undersigned hereby proposes to furnish all labor, materials, tools, equipment, and incidentals, to complete all the work. All applicable taxes and discounts should be included. All of the aforementioned shall be done in accordance with said plans, specifications, and contract documents for the price set forth in the following schedule.

The City of Victorville reserves the right to reject any or all bids and waive any immaterial irregularities or informalities in any bid or in the bidding.

Line
Item
Description Quantity Unit
(HR=Hourly)
Hourly
Rate ($/HR)
Total
1 Laborer 1 HR
2 Operator 1 HR
3 Foreman 1 HR
4 Plumber 1 HR
5 Backhoe 1 HR
6 Excavator 1 HR
7 Dump Truck 1 HR
8 Emergency / After
Hours Rates 1 HR

EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
18/ Construction Agreement/High Desert Underground, Inc./Project MS26-135

OVERTIME DOUBLE TIME
141.75$ 189.00$
186.75$ 249.00$
195.00$ 260.00$
186.75$ 249.00$

NUMBER VEHICLE DESCRIPTION MAKE MODEL
AG01* JOHN DEERE JOHN DEERE COLD PLANER
AG02 ZIPPER 480 AZ480
AG03 CAT PM-312 CATERPILLAR PM-312

NUMBER VEHICLE DESCRIPTION MAKE MODEL
BH01 CASE 580 CAB CASE 580 SUPER M PLUS S2
BH02 CASE 580L CASE
BH03 CASE 580L CASE
BH04 CASE 580SN CASE 580SN 4WD T4 FINAL
BH05 CASE 590 CASE 590 SUPER M SERIES 2
BH06 JD 310 JOHN DEERE 310 SLHL
BH07 JD 310 JOHN DEERE 310 SLHL

NUMBER VEHICLE DESCRIPTION MAKE MODEL
CM01 CONCRETE CURB MACHINE GOMACO GT-3300

NUMBER VEHICLE DESCRIPTION MAKE MODEL
DZ01 JOHN DEERE JOHN DEERE 550 HLT
DZ02 CAT DOZER CATERPILLAR D6N

NUMBER VEHICLE DESCRIPTION MAKE MODEL
EX01 CASE CX 160 CASE CX160
EX02 DEERE 450 JOHN DEERE 450DLC
EX03 DOOSAN 225 DOOSAN SOLAR 225LCV
EX04 HYUNDAI 35 MINI X HYNDAI ROBEX 35Z-9A
EX07 HITACHI ZX350LC HITACHI ZX350LC
EX08 DEERE 135 JOHN DEERE 135G FT4
EX10 CAT 308 EXCAVATOR CATERPILLAR 308
100.00$

CURB MACHINE
COST
300.00$

55.00$
175.00$

OPERATOR / FOREMAN

SUPERINTENDENT/PM

TRUCK DRIVER

SUBCONTRACTOR/MATERIALS MARKUP

EQUIPMENT RATES (PORT TO PORT TRAVEL)

LABORER

75.00$
300.00$
125.00$

35.00$

45.00$

45.00$

35.00$

HDU EQUIPMENT RATE SHEET
JULY 1, 2026**

LABOR COST (PORT TO PORT TRAVEL)

JOB CLASSIFICATION
150.00$
100.00$

35.00$

NOTE THIS IS BARE RATES - ADD OPERATOR RATE FOR TOTAL UNIT COST COST
COST

ASPHALT GRINDERS (ZIPPERS)

BACKHOE
DOZER

HDU FEE

CITY OF VICTORVILLE

80.00$

HOURLY RATE
20%
20%

REGULAR

94.50$
124.50$
130.00$
124.50$
200.00$

35.00$

35.00$

35.00$
COST
COST

EXCAVATORS

FORKLIFTS

45.00$

EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
19/ Construction Agreement/High Desert Underground, Inc./Project MS26-135

NUMBER VEHICLE DESCRIPTION MAKE MODEL
FL01 GRADALL GRADALL 534B-8
FL02 GRADALL GRADALL 534D-6
FL03 MITSUBISHI CAB MITUBISHI CAT FGC20
FL04 TOYOTA TOYOTA
FL05 DATSUN DATSUN CPF02-A25V
FL06 SCISSOR LIFT UPRIGHT 66000-000

NUMBER VEHICLE DESCRIPTION MAKE MODEL
GS01 GAS SNIFFER ISC M40
GS02 GAS SNIFFER GFG G450-11465

NUMBER VEHICLE DESCRIPTION MAKE MODEL
HH01 HYDROHAMMER ARROW MASTER HJ1350

NUMBER VEHICLE DESCRIPTION MAKE MODEL
LD01 DOOSAN 200V DOOSAN MEGA 200V
LD02 KAWASAKI 90 Z4 KAWASAKI 90 Z4 ANGUS PALM CAB
LD03 KOMATSU 450 KOMATSU WA450-3
LD04 SKIP LOADER CASE 570 LXT SKIP SERIES 2
LD05 SKIP LOADER 02 CASE 570 NXT
LD06 JOHN DEERE LOADER JOHN DEERE 644K
LD07 JOHN DEERE LOADER JOHN DEERE 544K

NUMBER VEHICLE DESCRIPTION MAKE MODEL
MG01 CAT 140H CAT 140H
MG03 CAT 150 AWD CATERPILLAR 150AWD
**TOPCON GRADE CONTROL TOPCON

NUMBER VEHICLE DESCRIPTION MAKE MODEL
RL01 DYNAPAC DYNAPAC CC142
RL02 HAMM ROLLER HAMM HD12 VV

NUMBER VEHICLE DESCRIPTION MAKE MODEL
ST02 SERVICE TRUCK FORD F550
ST04 SERVICE TRUCK FORD F450
ST05 SERVICE TRUCK FORD F550
ST07 SERVICE TRUCK FORD F550
ST09 TOP KICK GMC C4500
ST10 SERVICE TRUCK CHEVY 2500
ST12 SERVICE TRUCK FORD F550 DRW
ST13 SERVICE TRUCK FORD RAPTOR F150
ST14 SERVICE TRUCK FORD F150 LARIAT
ST15 SERVICE TRUCK FORD F550
ST16 SERVICE TRUCK FORD F-150 XL
ST17 SERVICE TRUCK FORD 7500 DOMINATOR
COST
$100.00 / DAY
$100.00 / DAY
100.00$

45.00$

45.00$

65.00$

GAS SNIFFER
$ 35.00
$ 75.00

45.00$

45.00$

45.00$

45.00$

35.00$

35.00$

35.00$

35.00$

75.00$
COST
COST
$ 45.00
COST
$ 25.00
$ 45.00

ROLLERS

SERVICE TRUCKS
COST

MOTOGRADERS

45.00$

35.00$

35.00$

35.00$

45.00$

SCRAPERS

35.00$

45.00$

45.00$

45.00$

85.00$
COST

45.00$

85.00$

85.00$

HYDROHAMMER

LOADERS
COST

EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
20/ Construction Agreement/High Desert Underground, Inc./Project MS26-135

NUMBER VEHICLE DESCRIPTION MAKE MODEL
SC03 615C CAT 615C
SC04 627F CAT 627F

NUMBER VEHICLE DESCRIPTION MAKE MODEL
SN01 SMALL REED SCREEN REED SCREENALL RD-40B
SN02 BIG REED SCREEN REED RE150A

NUMBER VEHICLE DESCRIPTION MAKE MODEL
SS03* JOHN DEERE 333G JOHN DEERE 333G

NUMBER VEHICLE DESCRIPTION MAKE MODEL
SB01 LAYMOR LAYMOR 8B
SB02 TERRAMITE TSS38 TERRAMITE TSS38
SB03 TERRAMITE TERRAMITE TSS48

NUMBER VEHICLE DESCRIPTION MAKE MODEL
TC01 DIESEL
TC02 DIESEL
TC03 SOLAR ALLMAND ECLIPSE GSI269
TC04 SOLAR ALLMAND ECLIPSE GSI269

NUMBER VEHICLE DESCRIPTION MAKE MODEL
TL01 FLAT BED TRANSCRAFT
TL03 TILT TRAILER TRAIL KING
TL04 HEAVY HAUL MURRAY
TL05 STAKEBED APACHE TRAILER
TL06 END DUMP RANCH MAN
TL07 ROLLER TRAILER CARSON
TL08 DOVE TAIL TRAIL EZE
TL09 TRAILER TRAIL KING
TL10 NEW TILT TRAILER MARKSMAN
TL11 DITCHWITCH TRAILER 1999 DITCHWITCH
TL12 BIG TEX TRAILER BIGTX
TL13 TRASH TRAILER SPENCER UTILITY TRAILER
TL14 ZIEMAN TRAILER ZIEMAN
TL15 ASPHALT ZIPPER TRAILER WILSON
TL16 FORT IRWIN STORAGE TRAILER TIMPT
TL17 BIG TEX TRAILER 2019 BIGTX 14LX-12BK7KHJ-P4
TL18 TEXAS PRIDE TEXAS PRIDE GT82320KBP

NUMBER VEHICLE DESCRIPTION MAKE MODEL
TM01 AIR COMPRESSOR 01 95 LEROI INTERNATIONAL
TM02 AIR COMPRESSOR 02 INGERSOLL RAND
TM03 AIR COMPRESSOR 03 SPERCA
TM04 LIGHT TOWER TEREX AL4060DI-4MH
TM05 MIXER 01 MULITQUIP MC-94
TM06 MIXER 02 CROWN
TM07 MIXER 03 SPENCER UTILITY TRAILER

50.00$

20.00$

20.00$

30.00$

50.00$

TRAFFIC CONTROL (ARROW BOARDS)

TRAILERS

50.00$

50.00$

50.00$
COST

35.00$
$200.00 / DAY
$200.00 / DAY
$200.00 / DAY

20.00$

TRAILER MOUNTED EQUIPMENT
COST
130.00$
100.00$
COST

SCREENS
$ 225.00
SKID-STEERS (ATTACHMENTS AVAILABLE - BROOM, BREAKER, GRINDER ETC.)

STREET BROOM (SWEEPERS)

50.00$

30.00$
$200.00 / DAY
100.00$

45.00$

30.00$

30.00$
COST
COST
COST
COST
$ 45.00

50.00$

50.00$

50.00$

35.00$

30.00$

45.00$

40.00$

20.00$

20.00$

20.00$
$200.00 / DAY

35.00$

EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
21/ Construction Agreement/High Desert Underground, Inc./Project MS26-135 TM08 WELDER 01 LINCOLN SA 200
TM09 WELDER 02 LINCOLN SA 200
TM10 UTILITY TRAILER TEREX AL4060DI-4MH
TM11 DITCHWITCH 1330 MULITQUIP MC-94
TM12 TRAILER MTD PORT O POTTY CROWN
TM13 LIGHT TOWER SPENCER UTILITY TRAILER
TM14 LEEBOY TACK POT LEEBOY L00T
TM15 AIR COMPRESSOR CROWN
TM16 CONCRETE PUMP PUTZMEISTER TK1004

NUMBER VEHICLE DESCRIPTION MAKE MODEL
TR01 CREW VAN E350
TR02 FLAT BED INTERNATIONAL 4700
TR03 SPARE RANGER FORD RANGER
TR04 TRUCK TOYOTA TUNDRA
TR05 RANGER FORD RANGER
TR06 STAKEBED DODGE RAM
TR07 HEAVY HAUL PETERBILT 367
TR08 5 CY DUMP TRUCK 2002 CHEVY
TR09 10 WHEELER DUMP TRUCK PETERBILT PB348

NUMBER VEHICLE DESCRIPTION MAKE MODEL
WT02 2K - VOLVO VOLVO MII PLUS
WT03 4K - WHITE VOLVO
WT06 WATER WAGON MAGNUM MWT500
WT07 WATER TOWER 01 SONS
WT08 WATER TOWER 02
WT09 WATER TOWER 03 333 SPCNS - SE391148
WT10 6X6 FREIGHTLINER FREIGHTLINER M2C 106
WT11 INTERNATIONAL 4300 INTERNATIONAL 4300

NUMBER VEHICLE DESCRIPTION MAKE MODEL
VT01 VACTRON VACTRON PMD 00800DT
VT02 VACMASTER SPV800 6T3-W
VT03 VACTOR VERMEER LP873SDT
*NOTE:
**NOTE:

20.00$
$200.00 / DAY
$200.00 / DAY

50.00$
$200.00 / DAY
$200.00 / DAY

RATES SUBJECT TO CHANGE DUE TO STATE OF CALIFORNIA / FEDERAL RATE INCREASES / EQUIPMENT

ADDITIONAL OR DELETION
$50.00 + WELDER

30.00$
COST

WATERTRUCKS

50.00$

50.00$

50.00$

50.00$

CERTAIN EQUIPMENT REQUIRES SPECIAL ATTACHMENTS AND/OR HAULING THAT REQUIRES SPECIAL PERMITTING

25.00$
$200.00 / DAY

65.00$

45.00$
COST

VACCUM TRAILER (VACTOR)

50.00$

50.00$

45.00$
$200.00 / DAY

45.00$
TRUCKS

65.00$

20.00$
125.00$
COST
$50.00 + WELDER

45.00$

40.00$

45.00$

45.00$

EXHIBIT B
PRICING PROPOSAL, PROJECT MS26-135
22/ Construction Agreement/High Desert Underground, Inc./Project MS26-135 Attachment B

Kirtley Construction, Inc.

Construction Agreement
CIP#___________

1 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

CONSTRUCTION AGREEMENT

BY AND BETWEEN

THE CITY OF VICTORVILLE
AND
KIRTLEY CONSTRUCTION, INC. DBA TK CONSTRUCTION
FOR

QUALIFIED SEWER LATERAL PIPELINE REPAIR CONTRACTOR,
PROJECT MS26-135-1

THIS CONSTRUCTION AGREEMENT (the “Agreement”) dated this __________________ day of ______________, 20___, for reference purpose only, is made and entered into by and between the City of Victorville, a municipal corporation located in the County of San Bernardino, State of California, hereinafter referred to as the “City”, and Kirtley Construction, Inc. dba TK Construction, a California corporation, hereinafter referred to as the “Contractor”. The City and the Contractor are sometimes hereinafter referred to as a “Party” and collectively referred to as the “Parties.”

RECITALS:

WHEREAS, the City requires Qualified Sewer Lateral Pipeline Repair Contractor, Project MS26-135-1 (the Project); and

WHEREAS, in light of the facts set forth above, the City desires to retain Contractor in connection with Qualified Sewer Lateral Pipeline Repair Contractor; and

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 Agreement by this reference, as though set forth herein.

Section 2. TERM OF AGREEMENT

This Agreement shall commence on July 1, 2026 (the “Commencement Date”) and shall terminate June 30, 2027 (the “Termination Date”), unless sooner terminated in accordance with the provisions of this Agreement (the “Term”). From and after the Termination Date, and upon subsequent agreement by the Parties, this Agreement may continue on a month-to-month basis until terminated pursuant to Section 3 below.

This Agreement may be extended for Four (4) additional one-year periods (hereinafter “Option Periods”), at the option of the City, subject to satisfactory performance as determined by the City. City shall give Contractor sixty (60) days advance written notice prior to the expiration of the initial Term and sixty (60) days advance written notice prior to the expiration date of each subsequently exercised Option Period, if any, should the City decide to exercise its option(s) to extend. In the event City does not give Contractor such written notice of its option to extend, 2 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

this Agreement shall terminate at the end of the then -current Term or Option Period without further notice from either Party, unless terminated earlier pursuant to the provisions of Section 21 below. Should the City fail to give Contractor the sixty (60) days written notice of its intention to exercise any Option Period, the City may, in its sole discretion, elect to exercise any Option Period at a later date, following written inquiry from Contractor.

Section 3. TERMINATION OR SUSPENSION

a. This Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of s uch termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the City shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

Section 4. CONTRACT DOCUMENTS; PRIORITY

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 Contract Documents are intended to be correlative and constitute Contractor’s performance obligations:

1. This Agreement.

2. Exhibits A & B.

3. Faithful Performance and Payment Bond.

4. Guaranty.

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 4.a above shall control.

Section 5. CONTRACTOR’S OBLIGATIONS

Contractor shall complete the Project as specifically set forth in the Contract Documents.

Contractor shall furnish, at its own cost and expense, all labor, services, material, tools, equipment, supplies, transportation, and any other items and facilities necessary therefore, as provided in the Contract Documents.

Section 6. COMPENSATION

The Contractor agrees to receive and accept the following amount, not to exceed Five Hundred Thousand and 00/100 Dollars ($500,00 .00), as full compensation for furnishing; all materials, doing all the work contemplated and embraced in this contract, all loss or damage arising out of the nature of the work aforesaid, the action of the elements, any unforeseen difficulties or obstructions which may arise or be encountered in the execution of the work until its 3 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

acceptance by the City, and for all risks of every description connected with the work, all expenses incurred by or in consequence of the suspension or discontinuance of work well and faithfully completing the whole work, thereof, according to the requirements of the agreement documents and to the satisfaction of Doug Mathews, Director of Public Works and Water , or his designee, to wit: See Exhibit “A”, Scope of Work.

Section 7. BID PROPOSAL FORMS

The City shall pay Contractor as provided in the Bid Proposal Forms, attached hereto as Exhibit “B”, and incorporated herein by this reference as though set forth in full, subject to approval of the City, when applicable.

Section 8. PREVAILING WAGES

a. Compliance with State Prevailing Wage Law. Pursuant to California Labor Code Section 1773, the City has obtained from the Director of the Department of Industrial Relations (“DIR”) the general prevailing rate of per diem wages and the general prevailing wage rate for holiday and overtime work applicable for each craft, classification, or type of worker in San Bernardino County, California, where the Project is to be performed. Copies of these prevailing rate of per diem wages are on file at the City of Victorville Finance Department/Purchasing Division and shall be made available for review to any interested party on request. Copies of these prevailing rate of per diem wages are also available from the State of California via the internet at http://www.dir.ca.gov/DLSR/PWD. Contractor and its subcontractors shall pay not less than said specified prevailing rate of per diem wages to all workers employed by them in the performance of any work under this Agreement which constitutes “public works” or “public work”, including without limitation, Qualified Sewer Lateral Pipeline Repair Contractor, and any other work or services described in or encompassed by California Labor Code (“Labor Code”) Sections 1720 through 1720.9, 1771, and 1772. Contractor shall be solely responsible for using the correct and current prevailing wage rates and performing 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, or compliance with the maintenance and inspection of payroll records, posting of prevailing wage rates at the work/job site, employment of apprentices, and other requirements of Labor Code Section 1720 et seq.; Labor Code Section 1810 et seq .; California Code of Regulations, Title 8, Section 16000 et seq.; and all other applicable State labor laws.

b. Designation as Contractor Not Determinative . For purposes of this Agreement, Contractor and its subcontractors shall be subject to and shall comply with all provisions of the Labor Code applicable to contractors and subcontractors when they are engaged in the performance of any work under this Agreement which constitutes “public works” or “public work” as defined in subsection a above, despite being designated as a Contractor.

c. Conflict. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the provisions of this Section and the terms of Exhibit “A” or Exhibit “B” of this Agreement, the provisions of this Section shall control and nothing herein shall be considered as an acceptance of the terms of Contractor’s Scope of Services, scope of work, bid proposal, cost proposal, and/or fee schedule which conflict with the provisions of this Section.

d. Payroll Records . Contractor and its subcontractors 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 4 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

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 information contained in the payroll record is true and correct; and

(b) Contractor or subcontractor has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any covered work performed by its employees on the Project.

(2) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to the 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 Section 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.

(4) Payment of Invoices . Copies of the certified payrolls, proof of payroll submissions, and appropriate lien releases are required with each invoice to the City.

Payment of the invoice may be delayed when payroll -related documents and/or lien releases are not included with the invoice.

e. 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.

f. 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.

g. Other Labor Requirements . Contractor has the responsibility for and shall comply with all other applicable requirements of Labor Code Section 1720 et seq., Labor Code Section 1810 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 shall require the same of all its subcontractors.

5 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

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

(1) Pursuant 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 Agreement 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) Pursuant to Labor Code Section 1813, Contractor or subcontractor shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Agreement 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, except as specified in Labor Code Section 1815. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day.

i. DIR Monitoring. Pursuant to Labor Code Section 1771.4, the Agreement for this Project is subject to compliance monitoring and enforcement by the DIR.

j. 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 Agreement, 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 Agreement is entered into and maintain registration for the duration of the Project.

Section 9. WORKERS’ COMPENSATION INSURANCE

Contractor shall procure and maintain, at its own expense, during the Term of this Agreement, workers’ compensation insurance, providing coverage as required by the California State Workers’ Compensation Law. 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.

In conformance with current statutory requirements of Section 1860 et seq., of the Labor Code of the State of California, the undersigned confirms the following as their certification:

I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions before commencing the performance of the work of this contract.

Section 10. NOTICE TO PROCEED

No work, service, material, or equipment shall be performed or furnished under this 6 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

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 as directed by the City in the Notice to Proceed, and to diligently execute the same to completion within the time limits set forth in the Contract Documents.

Section 11. COMPLIANCE WITH LAWS

Contractor shall comply with all local, state, and federal laws and regulations 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 shall be held or obtained by the Contractor at its sole expense.

Section 12. COMMERCIAL GENERAL AND AUTOMOBILE LIABILITY

INSURANCE

Contractor shall procure and maintain at its own expense, during the term of this Agreement, com mercial general liability insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers, and agents and independent contractors.

Contractor shall further procure and maintain, at its own expense, during the Term of this Agreement, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) Combined Single Limit , covering any vehicle(s) utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the services required by this Agreement.

Section 13. COURSE OF CONSTRUCTION/INLAND MARINE INSURANCE

Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom it performing any work under this agreement shall purchase, and maintain insurance to the full contract and insurable value thereof commonly referred to as a Course of Construction, Builders’ Risk, or an Inland Marine policy 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, and or any of its subcontractors, suppliers, vendors, employees, or person whom is performing any work under this agreement shall also be responsible for insuring their owned, leased/rented or borrowed equipment. Insurance should also include a Loss Payee, and a Waiver of Subrogation Endorsement(s) in favor of the City of Victorville.

Section 14. ADDITIONAL INSURED

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 officers, employees, servants, volunteers, and agents and independent contractors, including, without limitation, the City Attorney, are named as Additional Insureds. 7 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

Section 15. 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 officers, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 16. PROOF OF INSURANCE COVERAGE; REQUIRED PRIOR TO

COMMENCEMENT OF SERVICES

a. Contractor shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Agreement and furnish to the City Clerk certificates of said insurance at least two (2) weeks prior to the commencement of any services to be performed under this Agreement.

b. The certificates of insurance shall bear an endorsement whereby it is provided 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 non -payment, ten (10) days’ advance written notice shall be given.

c. The certificates of insurance shall bear an endorsement whereby it is provided that the respective insurance policy shall not be terminated or expire without first providing thirty (30) days written notice to the City of such termination or expiration.

d. The certificates of insurance shall indicate that the respective insurance policy will be maintained throughout the Term of this Agreement.

e. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”

Section 17. TIME OF THE ESSENCE

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

Section 18. INDEMNIFICATION

Notwithstanding the limits of any insurance, Contractor shall indemnify the City, its 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, (herein "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 negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising or alleged to arise from the negligent acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's negligent performance of or failure to perform any term, provision, covenant or 8 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

condition of this Agreement, but excluding such claims or liabilities or portion of such claims or liabilities arising or alleged to arise from the negligence or willful misconduct of the City its officials, officers, agents, volunteers or employees, and in connection therewith:

a. 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;

b. Contractor will promptly pay any judgment rendered against the City, its officials, officers, agents 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') negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officials, volunteers, officers, agents, and employees harmless there from;

c. In the event the City, its 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 negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officials, volunteers officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City;
d. Contractor's duty to defend and indemnify 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;

The Contractor's indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification from all subcontractors.

Section 19. REPORTS

Upon request by Doug Mathews, Director of Public Works and Water , or his designee, Contractor shall prepare and submit reports concerning Contractor's performance of the work required by this Agreement.

Section 20. RECORDS

a. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Doug Mathews, Director of Public Works and Water, or his designee, to evaluate the cost and the performance of such services.

9 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles . Doug Mathews, Director of Public Works and Water, or his designee, 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.

c. Doug Mathews, Director of Public Works and Water ,or his designee, 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 Cont ractor and made available to Doug Mathews, Director of Public Works and Water, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

Section 21. MODIFICATIONS AND AMENDMENTS

This Agreement may be modified or amended only by a written instrument signed by both Parties.

Section 22. ENTIRE AGREEMENT

a. This Agreement 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 Agreement.

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 Agreement and the Contract Documents.

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 23. AMBIGUITIES

This Agreement 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 Agreement.

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 Construction Agreement and Exhibit “A” the terms of this Construction Agreement shall control and nothing set forth in Exhibit “A” shall be deemed to supersede any of the provisions of this Construction Agreement.

10 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

Section 24. NOTICES

a. Any notice to be provided pursuant to this Agreement 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 the City: Doug Mathews, Director of Public Works and Water, Public Works Department
City of Victorville
14343 Civic Drive
Victorville, CA 92392

To Contractor: Troy Kirtley, President
Kirtley Construction, Inc. dba TK Construction
PO Box 9608
San Bernardino, CA 92427

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.

Section 25. NON-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 Agreement.

Section 26. REVIEW BY ATTORNEYS

Each Party hereto has had its attorneys review this Agreement an d all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation.

Section 27. CARE OF WORK

Contractor must adopt reasonable methods during the life of the Agreement 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 at no further cost to the City, when such inaccuracies are due to the negligence of Contractor.

11 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

Section 28. CAPTIONS AND HEADINGS

The captions and headings contained in this Agreement 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 29. SUCCESSORS, HEIRS, AND ASSIGNS

Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties.

Section 30. GENDER; PLURAL

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 31. SEVERABILITY

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 Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

Section 32. GOVERNING LAW

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

Section 33. CUMULATIVE REMEDIES

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, 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.

Section 34. VENUE

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

Section 35. ATTORNEY'S FEES

Should any litigation, specifically including but not limited to, arbitration and other non - judicial resolution of disputes be commenced between the Parties to this agreement concerning this agreement or the rights and duties of either i n relation thereto, the Parties prevailing in such 12 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

litigation or other proceeding shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for attorney fees in such litigation where the proceeding which, if not agreed upon by the Parties, shall be determined by the court or other entity in which such litigation or other proceeding is brought.

Section 36. EFFECTIVENESS OF AGREEMENT

This Agreement 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 Mayor.

Section 37. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT

a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.

b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

Section 38. COUNTERPARTS

This Agreement 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 Agreement.

Section 39. 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 13 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

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)

14 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

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

THE CITY OF VICTORVILLE KIRTLEY CONSTRUCTION, INC. DBA TK

CONSTRUCTION

By:_________________________________ By:________________________________ Elizabeth Becerra, Troy Kirtley,
Mayor President

Dated:______________________________ Dated:_____________________________

ATTEST

By:________________________________
Jennifer Thompson,
City Clerk

Dated:_____________________________

APPROVED AS TO STANDARD FORM

By:________________________________
Andre de Bortnowsky,
City Attorney

Dated:_____________________________

By:________________________________
Sandra Bostick,
Risk Manager

Dated:_____________________________

15 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1

EXHIBIT A

SCOPE OF WORK

City agrees to engage C ontractor and C ontractor agrees to furnish all necessary labor, tools, materials, and equipment for and to do the Work for the Project. The Work shall be performed in accordance with: (i) the Plans and Specifications and applicable Addenda (as generally described in the Request for Qualifications, Project Number MS26-135-1, for the Project, portions of which are attached hereto for ease of reference as Exhibit "A"; and (ii) the prices set forth in Contractor’s Pricing Proposal (attached as Exhibit "B").

See Attachment

SCOPE OF WORK:

The City of Victorville Public Works Department, Sanitary Division, is responsible for the maintenance and repair of the sanitary sewer collection system within the public right -of-way, including lower sewer lateral connections and sewer mainlines. In the event of a sewer lateral or mainline blockage, failure, or other deficiency within the City’s area of responsibility, mitigation or repair may be required with the assistance of a qualified contractor.

As needed, the Contractor shall provide all labor, materials, equipment, and supervision necessary to perform and complete assigned work. The Contractor shall coordinate and manage all aspects of construction to ensure quality workmanship, cost control, and timely completion.

Work may include, but is not limited to, the repair and/or replacement of residential and commercial sewer laterals and sewer mainlines at various locations throughout the City. Typical work involves lateral piping ranging from 3-inch to 6-inch diameter; however, the Contractor shall be capable of performing work on larger diameter sewer mainline infrastructure as required.

Services may require excavation at depths exceeding five (5) feet and the use of trenchless repair methods, including but not limited to pipe bursting and slip lining.

The Contractor shall perform all work in coordination with and under the direction of the City’s Public Works and Engineering Departments.

EXHIBIT A
PRICING PROPOSAL, PROJECT MS26-135-1
16/ Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1 17 Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1 EXH
IBIT B
PR

ICING PROPOSAL
S
ee Attachment
REQUEST FOR QUALIFICATIONS MS26-135 QUALIFIED SEWER LATERAL PIPELINE REPAIR CONTRACTOR

PRICING PROPOSAL
The undersigned declares that the locations of the proposed work, the plans, specifications, and contract documents have been carefully examined; and being familiar with all of the conditions surrounding the work, including the availability of materials and labor, the undersigned hereby proposes to furnish all labor, materials, tools, equipment, and incidentals, to complete all the work. All applicable taxes and discounts should be included. All of the aforementioned shall be done in accordance with said plans, specifications, and contract documents for the price set forth in the following schedule.

The City of Victorville reserves the right to reject any or all bids and waive any immaterial irregularities or informalities in any bid or in the bidding.

Line
Item
Description Quantity Unit
(HR=Hourly)
Hourly
Rate ($/HR)
Total
1 Laborer 1 HR
2 Operator 1 HR
3 Foreman 1 HR
4 Plumber 1 HR
5 Backhoe 1 HR
6 Excavator 1 HR
7 Dump Truck 1 HR
8 Emergency / After
Hours Rates 1 HR

EXHBIT B
PRICING PROPOSAL, PROJECT MS26-135-1
18/ Construction Agreement/Kirtley Construction, Inc. dba TK Construction/Project MS26-135-1 Item Number: 13
City Council / Board of Directors
Written Communications
Meeting of: September 1, 2026
Submitted By:

James Murawski, Airport Director

Subject:

Purchase of a 2026 John Deere 644P Loader
Recommendation:

That the Southern California Logistics Airport Authority (“SCLAA”) Board of Directors approve the purchase of a 2026 John Deere 644P Loader in the amount of $402,980.76.

Fiscal Impact:

This action will result in the expenditure of budgeted capital equipment funds from Airport Capital Equipment Fund 4500125-55040-95161 in the amount not to exceed $402,980.76. The budget for this equipment is as follows:

Account Description Current Budget
4500125-55040-95161 4.25 Ton Loader $420,000.00
Strategic Plan Goal:

Goal E - Invest in Infrastructure. This equipment will allow Airport staff to efficiently transport material to, from, and throughout the Airport and various job sites.

Background:

The Southern California Logistics Airport (“SCLA”) consists of over 2,000 acres of airfield areas and off-airport properties. The airfield area consists of two commercial-length runways, nine taxiways, numerous buildings, aircraft parking lots, drainage channels, and vast open and occupied areas slated for future development. The SCLA requires consistent maintenance to manage erosion, conduct runway and taxiway repairs, maintain airfield roads, and undertake various maintenance projects. The vast acreage of the SCLA and the corresponding maintenance needed to operate the airport require staff to frequently haul airfield rubble, storm drain silt, soil, base materials, lumber, and 4 8
7 3
other materials to, from, and within the SCLA.

To move these materials, staff currently utilizes a 1989 John Deere 544 E Loader (“1989 Loader”) with 1.25 cubic yards of hauling capacity. The 1989 Loader has been in service for 37 years, with its age impacting its effectiveness. The 1989 Loader was acquired by Public Works in the late 1980s and was later transferred to the Airport in 2016 after approximately 26 years of service.

The 37-year-old 1989 544 Loader has numerous issues that warrant replacement of the equipment. The braking system on the 1989 Loader has been problematic recently, causing staff to seek repair options to keep the vehicle functional. The failed hydraulic system makes the loader impossible to operate, and it has become increasingly difficult to get repair parts due to its age. Furthermore, the 1989 Loader is out of compliance with ever-increasing California emissions standards and has thus been relegated to low use status, minimizing its utility and making it fiscally irresponsible to maintain. Lastly, the hauling and loading capacity of only 1.25 cubic yards limits the effectiveness of this equipment.

Staff proposes replacing the 1989 Loader with a modern 4.25 cubic yard hauling capacity John Deere 644P Loader.

Discussion:

The proposed purchase of a new 2026 John Deere 644P Loader (“2026 Loader”) would replace the aging, worn-out, and low-use designated 1989 Loader. The 2026 Loader will ensure staff has reliable, compliant equipment to support its maintenance activities. The 2026 Loader has a hauling capacity of 4.25 cubic yards, which will allow staff to move material more efficiently than the 1.25 cubic yard 1989 Loader that it is replacing. Staff anticipates cost savings derived from reduced maintenance costs and productivity gains.

The 2026 Loader will allow Airport staff to work efficiently and effectively.

To facilitate the procurement of this much-needed equipment, the purchase of the 2026 Loader is proposed through RDO Equipment Company in Riverside (“RDO”), a dealer for John Deere, and a participant in a cooperative agreement program called Sourcewell.

Sourcewell is a public agency that offers a multitude of cooperatively contracted specialized products and equipment to government entities. Per Municipal Code §2.28.120 “Purchases of supplies and equipment through cooperative purchasing arrangements” allows for the procurement of equipment directly from vendors engaged in an approved cooperative agreement program without further solicitation. The Sourcewell Cooperative Agreement has been reviewed and approved by the City of Victorville Purchasing Manager. It fulfills the competitive bidding requirements, thus providing significant savings, and offers contract purchasing solutions from John Deere, to enable buying agencies to work smarter and more efficiently, while streamlining the required purchasing process.

The proposed equipment replacement will benefit the Airport by offering: increased reliability; increased safety; environmental compliance; improved productivity; and lower 4 8
7 3
maintenance and operational costs. The RDO quote includes the cost of the 2026 Loader, applicable sales tax, and delivery charges. Therefore, staff requests the Southern California Logistics Airport Authority Board of Directors approve the purchase of a 2026 John Deere 644P Loader in the total amount of $402,980.76, from RDO Equipment Company in Riverside.

Staff remains available for any questions or comments you may have.

Prepared By:

Jose Gutierrez, Airport Business Technician
Samuel Evans, Airport Business Analyst
Attachments: A. RDO Equipment Proposal #2053116
B. Sourcewell – Contract # 011723-JDC
C. John Deere 644P Loader Spec Sheet
D. Municipal Code 2.28.120

ATTACHMENT A
RDO Equipment
Proposal #2053116

ATTACHMENT B
Sourcewell –
Contract # 011723-
JDC
011723-JDC
Rev. 3/2022 1
Solicitation Number: RFP # 011723

CONTRACT
This C
ontract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and John Deere Construction Retail Sales a division of John Deere Shared Services LLC, DBA John Deere Construction Retail Sales, 1300 River Drive, Moline, IL 61265 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Heavy Construction Equipment with Related Attachments and Technology from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

B. EXPIRATION DATE AND EXTENSION. This Contract expires April 14, 2027, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.

C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. 







 





011723-JDC
Rev. 3/2022 2

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING

All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.

When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. The John Deere Warranty Statement describes covered items and services when returning Damaged Equipment and 







 





011723-JDC
Rev. 3/2022 3

Products. Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

4. PRODUCT AND PRICING CHANGE REQUESTS

Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:

x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.








 





011723-JDC
Rev. 3/2022 4

A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS

A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at government- owned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING

A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.









 





011723-JDC
Rev. 3/2022 5

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE

A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:

x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.









 





011723-JDC
Rev. 3/2022 6

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT

A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:

x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee. Any state that requires a Sourcewell participating addendum with an additional admin fee, we reserve the right to reduce the list price discount to accommodate this additional fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.









 





011723-JDC
Rev. 3/2022 7

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE

Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE

A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.

E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.









 





011723-JDC
Rev. 3/2022 8

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS

Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.

12. GOVERNMENT DATA PRACTICES

Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT

A. INTELLECTUAL PROPERTY

1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.

2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.

3. Use; Quality Control.








 





011723-JDC
Rev. 3/2022 9

a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.

4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.

14. GOVERNING LAW, JURISDICTION, AND VENUE

The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE

Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.









 





011723-JDC
Rev. 3/2022 10

16. SEVERABILITY

If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES

A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract.

The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:

x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.









 





011723-JDC
Rev. 3/2022 11

18. INSURANCE

A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000








 





011723-JDC
Rev. 3/2022 12

5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.

Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate

Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.

D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier. The waiver must apply to all deductibles and/or self- insured retentions applicable to the required or any other insurance maintained by the Supplier.









 





011723-JDC
Rev. 3/2022 13

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE

A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION

Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS

Intentionally Omitted.

22. CANCELLATION

Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.









 





011723-JDC
Rev. 3/2022 14

Sourcewell John Deere Construction Retail Sales a
division of John Deere Shared Services LLC,
DBA John Deere Construction Retail Sales

By: __________________________ By: __________________________ Jeremy Schwartz Mark Oliver
Title: Chief Procurement Officer Title: Manager Contract Sales

Date: ________________________

Date: ________________________

Approved:

By: __________________________
Chad Coauette
Title: Executive Director/CEO

Date: ________________________









 







 





 




 


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Bid Number: RFP 011723 Vendor Name: John Deere Shared Services LLC 







 





Bid Number: RFP 011723 Vendor Name: John Deere Shared Services LLC Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.

Line Item Categor\ or T\pe Offered Comments
71 Wheeled, tracked, and backhoe l oaders Yes
No
72 Motor Graders Yes
No
73 Wheeled and tracked excavators Yes
No
74 Bulldozers, compactors, scapers, articulated and
rigid haulers
Yes
No
We do not offer rigid haulers.

Compactors are offered on the
separate Wirtgen contract.
75 Cranes Yes
No
76 Accessories or attachments for the offering in #71-
75 above
Yes
No
We will be offering base coded
attachments at time of whole goods
purchase or separately if needed. AT
kits and BYT kits (third party
attachments) are not part of this
contract.
77 Technology or services for the offering in #71-75
above
Yes
No
-' /ink Telematics, Grade Control,
and Slope Control are examples of
these technology services that are
available as options on certain
products.

Table 14C: Required Offering of Equipment
Indicate below if the proposer's proposal includes at least one (1) of the following listed types or classes of equipment. Provide additional comments in the text box provided, as necessary.

Line Item Categor\ or T\pe Offered Comments
78 Wheel loader with published net horsepower (HP)
of at least 300 HP
Yes
No
We offer 4 wheel loaders that meet
this spec requirement.
79 Wheeled or tracked excavator with a published net
horsepower (HP) of at least 150 HP
Yes
No
We offer 10 excavators that meet this
spec requirement.
80 Motor Grader with a published maximum operating
weight of at least 30,000 lbs.

Yes
No
We offer 8 motor graders that meet
this spec requirement.
81 Rough terrain, all terrain, crawler, floating, lattice, or telescopic crane with a published maximum lifting
capacity of at least 300 tons and a published
maximum boom length of at least 150 feet
Yes
No
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.








 





Bid Number: RFP 011723 Vendor Name: John Deere Shared Services LLC

Documents

Ensure your submission document(s) conforms to the following :

1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcew ell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item respo nding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan."

Pricing - RFP 011723 Model & Discount Schedule.pdf - Monday January 09, 2023 11:48:21 Financial Strength and Stability - Deere-Co_Annual-Report-2021.pdf - Tuesday November 29, 2022 12:34:40 Marketing Plan/Samples (optional)
WMBE/MBE/SBE or Related Certificates (optional)
Warranty Information - US CAN deere wty stmt.pdf - Tuesday December 06, 2022 10:27:02 Standard Transaction Document Samples - Sample Sourcewell Quote.pdf - Monday January 09, 2023 11:22:37 Upload Additional Document - Sustainability Report 2021.pdf - Tuesday November 29, 2022 13:01:16 







 





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Sourcewell Contract # 011723-JDC| Amendment #1