Janitorial Services Requirements Page | 47
Personnel attire – all Contractors’ employees shall be required to wear appropriate attire that readily identifies the individual as an employee of the Contractor. Attire shall be clean, neat and of a nature that befits the job description. The Parks and Facilities Manager or his designee, shall make the determination as to the appropriate attire, should this come into question.
2. IDENTIFICATION BADGE
Contractor’s staff shall be required to wear a picture identification badge that identifies both the individual and contractor. All badges as required by this contract shall be approved by the Parks and Facilities Manager or his designee, and be provided by the Contractor at the Contractor’s expense. Contractor accepts and understands that any employee who fails to meet this requirement may be asked to leave city property with no recourse toward compensation for time or material lost on the contract to the Contractor or to the Contractor’s employee. It is expressly understood that the Contractor is responsible to ensure that all of his employees possess and carry valid photo identification at all times while performing their duties on city property.
The identification name badge shall display the following:
A) Employee’s name.
B) Contractor’s company name.
C) Current photograph of the employee (to be updated as necessary).
D) Employee’s signature.
3. CONDUCT
The Contractor shall be expected to require each of his employees to afford all City employees, officials and citizens the highest quality of courtesy in speech, action and deed. The City, through the Parks and Recreation Department, retains the right to demand immediate dismissal or removal from the premises of any Contractor employee considered being in violation of the requirements of these specifications. The Contractor warrants that all persons employed by him/her have satisfactory past records indicating their ability to accept the kind of responsibilities anticipated in this type of work. No employee under the influence of alcohol or drugs shall be allowed on the premises or in the buildings. The Contractor agrees to immediately remove any employee whose conduct or workmanship is unsatisfactory as determined by the Parks and Facilities Manager or a designee.
At all times, Contractor shall maintain good order among his employees and shall insure compliance with rules and regulations included in this document.
4. WORKER ACTIVITIES NOT PERMITTED BY THE CITY
Contractor’s personnel shall not be permitted to engage in any of the following:
A. Perform any service beyond their capabilities or training.
B. Use cleaning equipment or electrical outlets in need of repair.
Janitorial Services Requirements Page | 48
C. Remove electrical cords from outlets in use, i.e.: computers, printers, etc.
D. Open and/or look in desk drawers, furniture, file cabinets, clothing, or areas not assigned for cleaning.
E. Take any items from a facility, no matter how small or insignificant the item may be (examples: partial roll of toilet tissue, stick of gum, one (1) penny). If in question, ask the supervisor.
F. Loiter in the parking areas before or after work duties.
G. Keep or remove any trash or discarded items. These types of items are still considered to be the property of the city and are to be deposited in the appropriate bins or locations.
H. Entering secured areas or roof areas, unescorted by City personnel, is not permitted.
Engaging in any of the above may be cause for action up to and including termination of the agreement by the city.
X. SAFETY
Contractor shall ensure that its contract administrators, supervisors, employees, and operation conform to all Federal, State, Municipal, Safety and Health Regulations (OSHA), and shall assume full responsibility for any violations and/or noncompliance with such regulations. Successful Contractor shall provide evidence of an inspection program to conform to Senate Bill #198, “Illness and Injury Prevention Program”.
Sb198 is as follows:
Senate bill 198 requires that all California employers establish, implement and maintain an Injury Prevention Program. This bill became law and enforcement began July 1, 1991.
The following are the minimum elements of an injury prevention program:
1. Identification of the person(s) responsible for the implementation of the program.
2. A system to identify and evaluate work-place hazards.
3. Methods and procedures for correcting unsafe or unhealthy conditions.
4. Occupational health and safety training programs.
5. A system of communication with employees on occupational health and safety manners.
6. A system to ensure that employees comply with safe and healthful work practices.
7. Accident investigation: a program to investigate all accidents.
8. Supervisor safety training.
Senate Bill 198 also requires OSHA inspectors to verify the existence of this program.
If you have an “Informal Safety Program,” you will need to document the activities
Janitorial Services Requirements Page | 49
listed above. If you have a “Formal Safety Program,” you should verify that your program covers each of the elements listed above. The State has large penalties for any employer not instituting a program.
K. ENVIRONMENTAL PROTECTION
1. REGULATIONS
Contractor shall abide by any and all State and Federal environmental protection regulations existing or hereafter enacted during the term of the agreement. All necessary Material Safety Data Sheets will be in English, (additional copies may be in other languages), shall be appropriately posted, and an English copy supplied to the City’s Parks and Recreation Department.
2. QUALITY OF MATERIALS
The City may require the Contractor to furnish data, and/or samples of chemicals or cleaning agents that the contractor is using or intends to use on the premises. The City, at its sole discretion, may prohibit use of any such chemical or cleaning agent, and Contractor will be required to provide an alternate chemical or cleaning agent that is acceptable to the City. No chlorine compounds or bleach is allowed on City premises.
L. SECURITY
1. BUILDING
In the event of emergencies that may result in further damage or breach of security to city property if not corrected immediately, (i.e. Water leaks, broken window, etc.) Employees of the Contractor are to immediately call the Parks and Facilities representative via an after-hours number that will be provided to the contractor.
Employees of the Contractor are to call the Yorba Linda Police Services immediately if they observe anyone destroying City property either inside or outside the building.
Upon leaving, employees of the contractor shall see that all doors and windows so designated are locked, and lights so designated are turned off. Should an employee of the contractor lose any keys that provide access to any City facility, the Contractor may be required to pay the cost to re-key the lock(s) in question. All lost keys or key cards shall be reported immediately to the Parks and Facilities Manager or the Site Supervisor.
While cleaning the buildings, Contractor’s personnel will not admit anyone into an area including City employees. City employees have their own keys to any area they are authorized to enter. Upon completion of nightly duties, all designated lights shall be turned off, doors locked, blinds fully closed, and offices left in a neat and orderly condition. Contractor and Contractor’s personnel shall abide by any and all security regulations of the owner, transmitted by City to the Contractor, either orally, or in writing. Contractor’s supervisor shall submit to the Parks and Recreation Department office by 9:00 a.m. The next business day a written notification informing City Contract Administrator of any irregularities.
Janitorial Services Requirements Page | 50
2. FRIENDS / RELATIVES / VISITORS
A. Non-employees of contractor will not be allowed to help clean or accompany workers in the buildings.
B. Workers will not admit anyone into the buildings at any time.
C. Friends or relatives of workers shall not loiter in parking areas or anywhere on the premises.
M. GENERAL REGULATIONS
1. BREAKS
A. Site Supervisors shall designate break areas for Contractor’s employees (Contactor and Contractor’s employees shall NOT use individual City desks as break areas).
B. City-owned or City staff food in any area shall not be taken or consumed.
C. All trash will be removed, and break areas thoroughly cleaned.
2. TELEPHONE POLICIES / USAGE
A. City phones shall not be used unless an emergency arises that requires 911 assistance.
B. Emergency calls are to be coordinated through the supervisor and/or building staff.
C. Receiving incoming calls on city phones is prohibited unless for work-related emergencies.
3. SMOKING, ALCOHOL AND DRUGS
A. No worker will be allowed to work under the influence of alcohol or drugs.
Violators will be subject to immediate dismissal.
B. California State law prohibits smoking IN AND AROUND Government buildings as follows:
No smoking is permitted inside facilities or, if smoking outside on a break, within 20 feet of an entrance, exit or operable window. No smoking is allowed on the property of the Thomas Lasorda Field House, Cultural Arts Center nor the Yorba Linda Public Library.
N. CARE OF WORK AREAS
Employees of the Contractor shall not disturb papers on desks, open drawers or cabinets, use telephones, radios or television sets, or tamper with personal or City property. Any potentially important envelope or other material found in the waste containers or on the floor shall be left in the area with a note and the Site Supervisor shall be notified via telephone or e-mail the next business day by 9:00 a.m. Employees of the Contractor shall protect the City from damages from their work. City property damaged by or as a result of Contractor’s employees shall be repaired at Contractor’s expense. In the event of damage to City property, the Contractor’s employee will leave a note in the general area of the
Janitorial Services Requirements Page | 51
damage and the Parks and Recreation office shall be contacted the next business day by 9:00 a.m.
O. COUNCIL CHAMBERS AND CONFERENCE ROOMS
The Contractor shall hereby be made cognizant of the fact that the Council Chambers, meeting rooms, and at times conference rooms and office spaces, will be in use by employees and citizens during designated cleaning hours. City Council meetings and study sessions are held on Tuesday evenings in Council Chambers and Parks And Recreation and Planning sessions are held on Thursdays. Additional meetings are also scheduled on other days. All work shall be performed in a phased operation so that these meetings are not disrupted. In no case shall work commence in any area occupied for meeting purposes, including the Administrative Conference Room adjacent to the Chamber, Chamber Lobby and the Chamber Lobby Restrooms. This does not excuse the Contractor’s employees from cleaning these areas but requires the contractor to schedule cleaning activities around the intended use.
General Provisions Page | 52
GENERAL PROVISIONS AND REQUIREMENTS
A. SITE ADMINISTRATION
1. Yorba Linda Police Services Building: the Parks and Facilities Superintendent or his designee shall administer contract.
2. Yorba Linda Community Center: the Site Supervisor or his/her designee shall administer contract.
3. Thomas Lasorda Junior Field House: the Site Supervisor or his/her designee shall administer contract.
4. Yorba Linda City Hall: the Parks and Facilities Superintendent or his designee shall administer contract.
5. Yorba Linda Cultural Arts Center: the Site Supervisor or his/her designee shall administer contract.
6. Yorba Linda Public Library: the Library Director or her/her designee will administer the contract.
7. Susanna Bixby Bryant Museum: the Parks and Facilities Superintendent or his designee shall administer contract.
8. Yorba Linda Corporate Yard: the Parks and Facilities Superintendent or his designee shall administer contract.
9. Yorba Linda Town Center Parking Structure: the Parks and Facilities Superintendent or his designee shall administer contract.
10. The contract administrator shall administer the contract at all other facilities.
B. EQUIPMENT AND SUPPLIES
1. The contractor shall furnish all equipment, uniforms, and sundry supplies for the satisfactory performance of all services. Vacuum cleaners must use HEPA filters.
2. The contractor shall provide all cleaning chemicals necessary to provide quality services. Chemicals must be within the guidelines listed herein under environmental protection and shall be certified with the green seal.
3. The City will provide trash liners, toilet seat covers, paper towels, toilet tissue, and hand soap. The contractor shall be responsible to secure City supplied items and refill all containers and dispensers.
4. It is the Contractor’s responsibility to ensure that there is a proper and sufficient stock levels at all times and notify the Site Supervisor when supplies are low.
General Provisions Page | 53
C. SANITARY DISPENSERS
Contractor shall provide at his cost:
1. Sanitary napkins, tampons, and waxed paper liners for receptacles.
2. Collection of money. Contractor shall retain all revenue collected from feminine product dispensers. The City shall retain the right approve the fee charged for the feminine products.
3. City personnel will handle any needed repairs and/or replacement of dispensers. Contractor is to notify the Contract Administrator of any problems.
D. TRASH REMOVAL
Contractor agrees to remove all rubbish from buildings and place in dumpsters/ receptacles provided, or in designated areas. At no time shall any trash be removed from City premises except Bryant Ranch Museum, unless agreed to in advance by the City. The dumpster areas will be kept clean at all times. Prior to removal from buildings, trash will be properly protected against spillage or staining of carpet and floors. Liners are not be dragged across floors or pavement as this creates spillage opportunities.
Cleaning of spillage shall be at the Contractor’s expense.
E. JANITORS’ CLOSETS AND STORAGE ROOMS
1. The City shall provide secured areas at most sites for storage of Contractor’s cleaning materials, chemicals and equipment.
2. All janitors’ closets, mop sinks, storage rooms and work areas provided by the City for use by Contractor’s personnel, will be kept in a neat, clean and orderly condition at all times to the Contract Administrator’s satisfaction.
3. Storage of aluminum cans, plastic bottles or newspapers is strictly prohibited.
4. Faucets will be completely turned off when not in use.
5. Lights will be turned off after each use, except for those security lights designated by the Contract Administrator or Site Supervisor.
6. SDS information for all chemicals used in the performance of this contract shall be regularly updated and kept in a marked location.
SCOPE OF SERVICES
SCOPE OF SERVICES Page | 57
YORBA LINDA CULTURAL ARTS CENTER
4802 Lakeview Ave
CLEANABLE AREA: Carpet – 1,428 sf+/-
Concrete – 5,237 sf+/-
Vinyl – 66 sf+/-
Tile – 610 sf+/-
Hardwood – 5,440 sf+/-
Windows – 3,514 sf+/-
SERVICE HOURS: Monday-Sunday 10:00 PM to 7:00 AM (7 days) Single story building including black box performance theater, offices, arts studio, dance studio restrooms, lobby and breakroom.
A. DAILY JANITORIAL SERVICES
1. Wipe clean all desks, tables and counters.
2. Empty and clean all waste receptacles and replace liners.
3. Clean/vacuum/mop all concrete, tile and vinyl floors.
4. Clean/dry mop all hardwood floors.
5. Clean/vacuum all carpeting paying particular attention to high use areas.
6. Spot clean carpeting and entry mats to remove stains.
7. Clean, dust and soft buff all counters, tables, and furniture.
8. Spot clean partitions, doors, doorframes and wall switches.
9. Clean both sides of all glass surfaces including, but not limited to, interior and exterior doors, and cubicle glass panels.
10. Dust and spot clean all window frames below six (6) feet so that they are free of dust, dirt, grime, streaks, graffiti, and other foreign substances. Spot clean windows/doors to remove all smudges, fingerprints, marks, streaks, graffiti, or other foreign substances discovered on windows or doors.
11. Clean and sanitize all restroom toilets, urinals, exposed piping and fixtures.
12. Clean walls around sinks, towel dispensers and toilets/urinals.
13. Clean doors and partitions walls of restrooms.
14. Clean and polish mirrors.
15. Clean and sanitize restroom floors.
16. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
17. Clean, sanitize and polish all drinking fountains and wet bar sinks.
18. Clean and sanitize door handles.
B. WEEKLY JANITORIAL SERVICES (performed Monday evenings)
1. Clean scuffs and dirt from all walls, based on manufacture specifications.
2. Clean interior doors, door frames, partitions, cabinets, furniture, handrails, baseboards, ledges, moldings, picture frames and windowsills. (below 12 feet)
3. Clean metal kick plates on doors.
C. QUARTERLY JANITORIAL SERVICES (performed on first Monday evening of September, December, March and June)
1. Clean all window treatments including blinds and valances.
2. Shampoo carpets per manufacturers specifications.
SCOPE OF SERVICES Page | 58
3. Clean windows inside and out.
SCOPE OF SERVICES Page | 59
YORBA LINDA CITY HALL
4845 Casa Loma Avenue
CLEANABLE AREA: Carpet – 16,880 sf+/-
Tile – 600 sf+/-
Vinyl – 282 sf+/-
SERVICE HOURS: Monday-Friday 10:00 PM to 7:00 AM (5 days) Single story building with modular office trailer including lobby, offices, conference rooms, restrooms, breakroom, storage area and council chambers.
A. DAILY JANITORIAL SERVICES
1. Wipe clean all desks, tables and counters.
2. Empty and clean all waste receptacles and replace liners.
3. Remove all debris from outside ashtray urns.
4. Empty all outside area waste receptacles, wipe clean and replace liners.
5. Wipe clean all outside tables/benches.
6. Clean/vacuum/mop all concrete, tile and vinyl floors.
7. Clean/vacuum all carpeting paying particular attention to high use areas.
8. Spot clean carpeting and entry mats to remove stains.
9. Clean, dust and soft buff all counters, tables, and furniture.
10. Spot clean partitions, doors, doorframes and wall switches.
11. Clean both sides of all glass surfaces including, but not limited to, interior and exterior doors, cubicle glass panels, with the exception of perimeter windows.
12. Clean, sanitize, and polish all drinking fountains.
13. Clean and sanitize door handles.
14. Clean and sanitize all restroom toilets, urinals, exposed piping and fixtures.
15. Clean walls around sinks, towel dispensers and toilets/urinals.
16. Clean doors and partitions walls of restrooms.
17. Clean and polish mirrors.
18. Clean and sanitize restroom floors.
19. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
20. Clean exterior of all breakroom and conference room appliances; refrigerator, oven, microwave, etc.
21. Clean, sanitize and polish all drinking fountains and wet bar sinks.
22. Clean breakroom and conference room countertops, cabinets and sinks.
23. No cleaning of dishes, silverware, or coffee pots will be required
24. Perform dusting, defined as 12 feet in height or less, including base molding or top set, sill, windowsills, window frames, ledges, chair rails, partitions, chairs, tables, desks, telephones, filing cabinets, picture frames and all office furniture.
B. WEEKLY JANITORIAL SERVICES (performed Monday evenings)
1. Clean scuffs and dirt from all walls, based on manufacture specifications.
2. Damp wipe all waste receptacles.
3. Clean interior doors, door frames, partitions, cabinets, furniture, handrails, baseboards, ledges, moldings, picture frames and windowsills. (below 12 feet)
4. Clean metal kick plates on doors.
5. Vacuum upholstered furniture and council chambers chairs.
SCOPE OF SERVICES Page | 60
C. MONTHLY JANITORIAL SERVICES (performed first Monday evenings)
1. Perform high zone (above 12 feet) cleaning of all ledges, moldings, window frames, top of bookcases/cabinets and walls.
2. Vacuum all ceiling air supply and exhaust diffusers and grills.
3. Clean carpeted walls with extractor and upholstery tool.
4. Sweep and pick up debris from ground inside trash dumpster enclosure.
D. QUARTERLY JANITORIAL SERVICES (performed on first Monday evening of September, December, March and June)
1. Shampoo carpets per manufacturers specifications.
2. Damp wash all air supply and exhaust diffusers and grills including surrounding walls or ceilings that are soiled.
3. Clean all window treatments including blinds and valances.
SCOPE OF SERVICES Page | 61
YORBA LINDA CORPORATE YARD
4751 Eureka Avenue
CLEANABLE AREA: Carpet – 1,350 sf+/-
Concrete – 1,040 sf+/-
Vinyl – 140 sf+/-
SERVICE HOURS: Monday-Friday 10:00 PM to 7:00 AM (5 days) Single story building with modular office trailer including offices, restrooms, locker room and breakroom.
A. DAILY JANITORIAL SERVICES
25. Wipe clean all desks, tables and counters.
1. Empty and clean all waste receptacles and replace liners.
2. Empty all outside area waste receptacles, wipe clean and replace liners.
3. Wipe clean all outside tables/benches.
4. Clean/vacuum/mop all concrete, tile and vinyl floors.
5. Clean/vacuum all carpeting paying particular attention to high use areas.
6. Spot clean carpeting and entry mats to remove stains.
7. Clean, dust and soft buff all counters, tables, and furniture.
8. Spot clean partitions, doors, doorframes and wall switches.
9. Clean both sides of all glass surfaces including, but not limited to, interior and exterior doors, cubicle glass panels, with the exception of perimeter windows.
10. Clean and sanitize all restroom toilets, urinals, exposed piping and fixtures.
11. Clean and sanitize all restroom showers.
12. Clean/sanitize door handles.
13. Clean walls around sinks, towel dispensers and toilets/urinals.
14. Clean doors and partitions walls of restrooms.
15. Clean and polish mirrors.
16. Clean and sanitize restroom floors.
17. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
18. Clean exterior of all breakroom and conference room appliances; refrigerator, oven, microwave, etc.
19. Clean breakroom and conference room countertops, cabinets and sinks.
20. No cleaning of dishes, silverware, or coffee pots will be required
21. Perform dusting, defined as 12 feet in height or less, including base molding or top set, sill, windowsills, window frames, ledges, chair rails, partitions, chairs, tables, desks, telephones, filing cabinets, picture frames and all office furniture.
B. WEEKLY JANITORIAL SERVICES (performed Monday evenings)
1. Clean scuffs and dirt from all walls, based on manufacture specifications.
2. Damp wipe all waste receptacles.
3. Clean interior doors, door frames, partitions, cabinets, furniture, handrails, baseboards, ledges, moldings, picture frames and windowsills. (below 12 feet)
4. Clean metal kick plates on doors.
C. MONTHLY JANITORIAL SERVICES (performed first Monday evenings)
SCOPE OF SERVICES Page | 62
1. Perform high zone (above 12 feet) cleaning of all ledges, moldings, window frames, top of bookcases/cabinets and walls.
2. Vacuum all ceiling air supply and exhaust diffusers and grills.
D. QUARTERLY JANITORIAL SERVICES (performed on first Monday evening of September, December, March and June)
1. Damp wash all air supply and exhaust diffusers and grills including surrounding walls or ceilings that are soiled.
SCOPE OF SERVICES Page | 63
SUSANNA BIXBY BRYANT MUSEUM AND BOTANICAL GARDENS
5700 Susanna Bryant Drive
CLEANABLE AREA: Carpet – 853 sf+/-
Hardwood – 1,101 sf+/-
Concrete – 100 sf+/-
SERVICE HOURS: Sunday 10:00 PM to 7:00 AM (1 day)
Single story historical museum with and secondary exterior restroom.
DO NOT CLEAN AREA RUGS AND CARPET
DO NOT DUST FURNITURE OR ANY ARTIFACTS
DO NOT CLEAN KITCHEN APPLIANCES
DO NOT CLEAN CHANDELIERS
A. WEEKLY JANITORIAL SERVICES
1. Empty and clean all waste receptacles and replace liners (trash must be hauled off site).
2. Clean/vacuum/mop all concrete and hardwood floors only.
3. Clean and sanitize all restroom toilets, exposed piping and fixtures.
4. Clean doors and partitions walls of restrooms.
5. Clean and polish mirrors.
6. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
7. Vacuum the fireplace mantel, hearth and face stone.
B. MONTHLY JANITORIAL SERVICES (performed first Sunday evening)
1. Dust/clean windowsills.
SCOPE OF SERVICES Page | 64
THOMAS LASORDA JR FIELD HOUSE
4701 Casa Loma Ave
CLEANABLE AREA: Carpet – 468 sf+/-
Vinyl – 2,494 sf+/-
Tile – 4,897 sf+/-
Hardwood – 12,000 sf+/-
SERVICE HOURS: Monday-Sunday 10:00 PM to 7:00 AM (7 days) Single story building including gymnasium, offices, multipurpose room, restrooms, lobby and breakroom.
A. DAILY JANITORIAL SERVICES
1. Wipe clean all desks, tables and counters.
2. Empty and clean all waste receptacles and replace liners.
3. Empty all outside area waste receptacles, wipe clean and replace liners.
4. Pick up trash from under the gymnasium bleachers.
5. Wipe clean all outside tables/benches.
6. Clean/vacuum/mop all concrete, tile and vinyl floors.
7. Clean/dry mop of gymnasium floor.
8. Clean/vacuum all carpeting paying particular attention to high use areas.
9. Spot clean carpeting and entry mats to remove stains.
10. Dust and spot clean all window frames below six (6) feet so that they are free of dust, dirt, grime, streaks, graffiti, and other foreign substances. Spot clean windows/doors to remove all smudges, fingerprints, marks, streaks, graffiti, or other foreign substances discovered on windows or doors.
11. Clean, dust and soft buff all counters, tables, and furniture.
12. Spot clean partitions, doors, doorframes and wall switches.
13. Clean both sides of all glass surfaces including, but not limited to, interior and exterior doors, cubicle glass panels, with the exception of perimeter windows.
14. Clean and sanitize all restroom toilets, urinals, exposed piping and fixtures.
15. Clean walls around sinks, towel dispensers and toilets/urinals.
16. Clean doors and partitions walls of restrooms.
17. Clean and polish mirrors.
18. Clean and sanitize restroom floors.
19. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
20. Clean, sanitize and polish all drinking fountains and wet bar sinks.
21. Clean and sanitize door handles.
22. Clean exterior of all breakroom and conference room appliances; refrigerator, oven, microwave, etc.
23. Clean breakroom and conference room countertops, cabinets and sinks.
24. No cleaning of dishes, silverware, or coffee pots will be required
25. Perform dusting, defined as 12 feet in height or less, including base molding or top set, sill, windowsills, window frames, ledges, chair rails, partitions, chairs, tables, desks, telephones, filing cabinets, picture frames and all office furniture.
B. THREE TIMES A WEEK JANITORIAL SERVICES (performed Monday, Wednesday and Friday evenings)
SCOPE OF SERVICES Page | 65
1.Clean gymnasium floor with floor scrubber.
C. WEEKLY JANITORIAL SERVICES (performed Monday evenings)
1. Clean scuffs and dirt from all walls, based on manufacture specifications.
2. Damp wipe all waste receptacles.
3. Clean interior doors, door frames, partitions, cabinets, furniture, handrails, baseboards, ledges, moldings, picture frames and windowsills. (below 12 feet)
4. Clean metal kick plates on doors.
5. Dust mop bleachers with a treated mop.
D. MONTHLY JANITORIAL SERVICES (performed first Monday evenings)
1. Perform high zone (above 12 feet) cleaning of all ledges, moldings, window frames, top of bookcases/cabinets and walls.
2. Vacuum all ceiling air supply and exhaust diffusers and grills.
3. Sweep and pick up debris from ground inside trash dumpster enclosure.
E. QUARTERLY JANITORIAL SERVICES (performed on first Monday evening of September, December, March and June)
1. Shampoo carpets per manufacturers specifications.
2. Damp wash all air supply and exhaust diffusers and grills including surrounding walls or ceilings that are soiled.
3. Clean all window treatments including blinds and valances.
SCOPE OF SERVICES Page | 66
YORBA LINDA COMMUNITY CENTER
4501 Casa Loma Ave
CLEANABLE AREA: Carpet – 21,274 sf+/-
Vinyl – 1,914 sf+/-
Tile – 2,714 sf+/-
Hardwood – 1,680 sf+/-
SERVICE HOURS: Monday-Sunday 10:00 PM to 7:00 AM (7 days) Single story building including banquet rooms, offices, multipurpose room, restrooms, lobby and breakroom.
A. DAILY JANITORIAL SERVICES
1. Wipe clean all desks, tables and counters.
2. Empty and clean all waste receptacles and replace liners.
3. Clean/vacuum/mop all concrete, tile and vinyl floors.
4. Clean/dry mop of multi-purpose room floor.
5. Clean/vacuum all carpeting paying particular attention to high use areas.
6. Spot clean carpeting and entry mats to remove stains.
7. Clean, dust and soft buff all counters, tables, and furniture.
8. Spot clean partitions, doors, doorframes and wall switches.
9. Clean both sides of all glass surfaces including, but not limited to, interior and exterior doors, and cubicle glass panels.
10. Dust and spot clean all window frames below six (6) feet so that they are free of dust, dirt, grime, streaks, graffiti, and other foreign substances. Spot clean windows/doors to remove all smudges, fingerprints, marks, streaks, graffiti, or other foreign substances discovered on windows or doors.
11. Clean and sanitize all restroom toilets, urinals, exposed piping and fixtures.
12. Clean walls around sinks, towel dispensers and toilets/urinals.
13. Clean doors and partitions walls of restrooms.
14. Clean and polish mirrors.
15. Clean and sanitize restroom floors.
16. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
17. Clean, sanitize and polish all drinking fountains and wet bar sinks.
18. Clean and sanitize door handles.
B. WEEKLY JANITORIAL SERVICES (performed Monday evenings)
1. Clean scuffs and dirt from all walls, based on manufacture specifications.
2. Clean interior doors, door frames, partitions, cabinets, furniture, handrails, baseboards, ledges, moldings, picture frames and windowsills. (below 12 feet)
3. Clean metal kick plates on doors.
C. MONTHLY JANITORIAL SERVICES (performed first Monday evenings)
1. Shampoo carpets per manufacturers specifications.
D. QUARTERLY JANITORIAL SERVICES (performed on first Monday evening of September, December, March and June)
1. Clean all window treatments including blinds and valances.
SCOPE OF SERVICES Page | 67
YORBA LINDA PUBLIC LIBRARY
4852 Lakeview Ave
CLEANABLE AREA: Carpet – 30,297 sf+/-
Concrete – 2,794 sf+/-
Vinyl – 809 sf+/-
Tile – 1,382 sf+/-
Hardwood – 3,114 sf+/-
Terrazzo – 2,805 sf+/-
Windows – 9,227 sf+/-
SERVICE HOURS: Monday-Saturday 10:00 PM to 7:00 AM (6 days) Two story building including story time theater, offices, meeting rooms, community room, bookstore, restrooms, lobby and breakroom.
A. DAILY JANITORIAL SERVICES
1. Wipe clean all desks, tables and counters.
2. Empty and clean all waste receptacles and replace liners.
3. Clean/vacuum/mop all concrete, tile, terrazzo and vinyl floors.
4. Clean/dry mop all hardwood floors.
5. Clean/vacuum all carpeting paying particular attention to high use areas.
6. Spot clean carpeting and entry mats to remove stains.
7. Clean, dust and soft buff all counters, tables, vinyl, hard surface, and fabric covered tables and chairs and furniture.
8. Spot clean partitions, doors, doorframes and wall switches.
9. Clean both sides of all glass surfaces including, but not limited to, interior and exterior doors, cubicle glass panels, display cases, and study rooms.
10. Dust and spot clean all window frames below six (6) feet so that they are free of dust, dirt, grime, streaks, graffiti, and other foreign substances. Spot clean windows/doors to remove all smudges, fingerprints, marks, streaks, graffiti, or other foreign substances discovered on windows or doors.
11. Clean interior of stairway and railway panels and handrail, including on the second floor perimeter.
12. Clean and sanitize all restroom toilets, urinals, exposed piping and fixtures.
13. Clean walls around sinks, towel dispensers and toilets/urinals.
14. Clean doors and partitions walls of restrooms.
15. Clean and polish mirrors.
16. Clean, mop and sanitize restroom floors.
17. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
18. Clean, sanitize and polish all drinking fountains and wet bar sinks.
19. Clean and sanitize door handles.
20. Clean/dust ledges and windowsills.
B. THREE TIMES A WEEK JANITORIAL SERVICES (performed Sunday, Tuesday and Thursday evenings)
1. Wet mop Community Room floors per manufacturer's specifications C. WEEKLY JANITORIAL SERVICES (performed Sunday evenings)
SCOPE OF SERVICES Page | 68
1. Clean scuffs and dirt from all walls, based on manufacture specifications, paying particular attention to under windowsills and study rooms.
2. Clean interior doors, door frames, partitions, cabinets, furniture, handrails, baseboards, ledges, moldings, picture frames, ledges and windowsills. (below 12 feet)
3. Clean metal kick plates on doors.
4. Clean furnishings, including vinyl, hard surface, and fabric covered tables and chairs.
D. QUARTERLY JANITORIAL SERVICES (performed on first Sunday evening of September, December, March and June)
1. Clean all window treatments including blinds and valances.
2. Shampoo carpets per manufacturers specifications.
3. Clean furnishings, including vinyl, hard surface, and fabric covered tables and chairs.
4. Strip and glaze/gloss terrazzo
DAY PORTER PRIMARY RESPONSIBILITIES
Monday 11am-12pm 5pm-6pm
Tuesday 5pm-6pm
Wednesday 5pm-6pm
Thursday 5pm-6pm
Public Restrooms
1. Close public restrooms and service (lobby, children’s, upstairs).
2. Sweep and mop floors.
3. Clean and sanitize/disinfect all touch surfaces, including the sink tops, basins, floors, mirrors, and door handles.
4. Empty trash.
5. Restock: refill paper towels, toilet paper.
Staff Restrooms
1. Check the staff restrooms (upstairs and downstairs).
2. Spot clean.
3. Restock: refill paper towels, toilet paper.
Outside Areas
1. Clean Paseo and Children’s Patio.
2. Empty trash.
3. Pick-up litter, debris, and trash.
Lobby
1. Spot clean lobby floors and the stair landing floor.
2. Empty lobby trash.
Other Responsibilities
1. Clean the interior/exterior doors of the elevator.
2. Clean handrails on stairs.
3. Spot clean display cases, study room glass.
4. Spot clean play area windows and patio door, story-time emergency door, lobby doors and windows.
5. Spot clean Community Room windows.
6. Spot clean white chairs in Children’s Services once per week.
7. Sweep Community Room floor.
SCOPE OF SERVICES Page | 69
YORBA LINDA POLICE SERVICES BUILDING
20994 Yorba Linda Blvd
CLEANABLE AREA: Carpet – 1,459 sf+/-
Vinyl – 1,241 sf+/-
Tile – 613 sf+/-
SERVICE HOURS: Monday-Sunday 10:00 PM to 7:00 AM
Single story building including offices, briefing room, restrooms, locker room and breakroom.
A. DAILY JANITORIAL SERVICES
1. Wipe clean all desks, tables and counters.
2. Empty and clean all waste receptacles and replace liners.
3. Empty all outside area waste receptacles, wipe clean and replace liners.
4. Wipe clean all outside tables/benches.
5. Clean/vacuum/mop all concrete, tile and vinyl floors.
6. Clean/vacuum all carpeting paying particular attention to high use areas.
7. Spot clean carpeting and entry mats to remove stains.
8. Clean, dust and soft buff all counters, tables, and furniture.
9. Spot clean partitions, doors, doorframes and wall switches.
10. Clean both sides of all glass surfaces including, but not limited to, interior and exterior doors, cubicle glass panels, with the exception of perimeter windows.
11. Clean and sanitize all restroom toilets, urinals, exposed piping and fixtures.
12. Clean and sanitize all restroom showers.
13. Clean walls around sinks, towel dispensers and toilets/urinals.
14. Clean doors and partitions walls of restrooms.
15. Clean and polish mirrors.
16. Clean and sanitize restroom floors.
17. Clean and sanitize door handles.
18. Refill all paper towel, toilet tissue and toilet seat cover dispensers.
19. Clean exterior of all breakroom and conference room appliances; refrigerator, oven, microwave, etc.
20. Clean breakroom and conference room countertops, cabinets and sinks.
21. No cleaning of dishes, silverware, or coffee pots will be required
22. Perform dusting, defined as 12 feet in height or less, including base molding or top set, sill, windowsills, window frames, ledges, chair rails, partitions, chairs, tables, desks, telephones, filing cabinets, picture frames and all office furniture.
B. WEEKLY JANITORIAL SERVICES (performed Monday evenings)
1. Clean scuffs and dirt from all walls, based on manufacture specifications.
2. Damp wipe all waste receptacles.
3. Clean interior doors, door frames, partitions, cabinets, furniture, handrails, baseboards, ledges, moldings, picture frames and windowsills. (below 12 feet)
4. Clean metal kick plates on doors.
5. Vacuum upholstered furniture.
C. MONTHLY JANITORIAL SERVICES (performed first Monday evenings)
SCOPE OF SERVICES Page | 70
1. Perform high zone (above 12 feet) cleaning of all ledges, moldings, window frames, top of bookcases/cabinets and walls.
2. Vacuum all ceiling air supply and exhaust diffusers and grills.
D. QUARTERLY JANITORIAL SERVICES (performed on first Monday evening of September, December, March and June)
1. Shampoo carpets per manufacturers specifications.
2. Damp wash all air supply and exhaust diffusers and grills including surrounding walls or ceilings that are soiled.
SCOPE OF SERVICES Page | 71
YORBA LINDA TOWN CENTER PARKING STRUCTURE
18423 Arroyo Street
CLEANABLE AREA: Concrete – 158,800 sf+/-
Brick veneer – 550 sf+/-
Vinyl elevator flooring – 75 sf+/-
SERVICE HOURS: Monday-Sunday 12:00 AM to 7:00 AM (7 days) Four story parking structure including two elevators, two stairwells A. DAILY JANITORIAL SERVICES
1. Empty and clean all waste receptacles and replace liners.
2. Police all floors for trash and debris.
3. Police all stairwells for trash and debris.
4. Police exterior of parking structure for trash and debris.
5. Clean parking bollards on all floors.
6. Clean exposed fire sprinkler piping at elevator landings.
7. Clean elevators; including, but not limited to, call buttons, walls and doors.
8. Clean/sweep/mop elevator floors and landings.
9. Clean/sweep under stairways.
B. WEEKLY JANITORIAL SERVICES (performed Monday evenings)
1. Clean scuffs and dirt from all walls and horizontal ledges.
2. Clean/wipe down horizontal ledges on all floors.
3. Clean/wipe down fire extinguisher cabinets.
4. Clean/wipe down electric vehicle charging stations.
5. Clean/wipe down bicycle racks.
6. Clean/wipe down car counter signs.
7. Clean/sweep/mop stairwells.
8. Clean/wipe down stairway handrails and railings and all other railings.
9. Power sweep all floors of parking structure including exits and entrances.
C. SEMI-ANNUAL JANITORIAL SERVICES (performed first week of July and January evenings)
1. Clean/wipe down entrance/exit signs, park/exit signs, height limit signs on all floors.
2. Clean/wipe down all sprinkler piping and storm drain piping on all floors.
3. Clean/wipe down exterior metal louvers.
Appendix A
Contract
Services
Agreement
Contract Services Agreement | 1
CONTRACT SERVICES AGREEMENT
JANITORIAL SERVICES AT CITY FACILITIES
THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this _________ day of ___________, 2025 by and between the CITY OF YORBA LINDA, a California municipal corporation, (“City”) and «Contractor», a «Entity_Type» (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.
City sought, by issuance of a Request for Proposals or Invitation for Bids, for the performance of the services defined and described particularly in this Agreement.
Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in this Agreement, was selected by City to perform those services. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.
SECTION 1. SERVICES.
1.1 Scope of Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A, “Scope of Services” and incorporated herein by this reference (the “Services”). Contractor will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. The Scope of Services incorporates Contractor’s scope of work or bid for the Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.
1.2 Term of Services. The term of this Agreement shall be from July 1, 2025, to June 30, 2028, unless earlier terminated as provided herein. The City shall have the option to renew this Agreement annually for no more than two additional one-year terms.
Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.
1.3 Standard of Performance.
a. Quality of Work. As a material inducement to City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Contractor shall at all times faithfully, competently, and to
Contract Services Agreement | 2
the best of its ability, experience, and talent, perform all Services described herein.
Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances, and to the sole satisfaction of the Contract Administrator.
b. Care of Work. Contractor shall adopt reasonable methods during the term of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.
c. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to:
(A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. d. Warranty. Contractor warrants all work under this Agreement (which for purposes of this Subsection 1.3 shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship.
Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor
Contract Services Agreement | 3
shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense.
Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand.
e. Skilled and Trained Workforce. Contractor, for itself and its subcontractors at every tier, hereby provides an enforceable commitment to comply with California Public Contract Code section 2600 et seq., which requires use of a skilled and trained workforce to perform all work on the agreements that fall within an apprenticeable occupation in the building and construction trades.
f. Inspection and Final Acceptance. The Services shall be performed to the satisfaction of City. City may inspect and accept or reject any of Contractor’s work under this Agreement, during performance and/or when completed. City shall reject or finally accept Contractor’s work within forty five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 4 and Section 5, pertaining to insurance and indemnification, respectively.
1.4 Assignment of Personnel. Contractor shall assign only competent personnel to perform the Services. Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Contractor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.
Contract Services Agreement | 4
1.5 Time. Time is of the essence in the performance of this Agreement.
Contractor shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Contractor’s obligations hereunder. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Scope of Services. When requested by Contractor, extensions to the time period(s) specified in the Scope of Services may be approved in writing by the Contract Administrator but not shall not exceed one hundred eighty (180) days cumulatively.
1.6 Force Majeure. The time period(s) specified in the Scope of Services for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Administrator in writing of the causes of the delay. The Contract Administrator shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the sole judgment of the Contract Administrator such delay is justified. The Contract Administrator’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.
1.7 Suspension of Services. The City Engineer of City (“Engineer”) shall have the authority to suspend the Services, wholly or in part, for such period as the Engineer may deem necessary, due to unsuitable weather or to such other conditions as are considered unfavorable for the suitable prosecution of the Services, or for such time as the Engineer may deem necessary due to the failure on the part of Contractor to carry out orders given or to perform any provisions of the Services. Contractor shall immediately comply with the written order of the Engineer to suspend the Services wholly or in part and shall not resume the Services until ordered to do so in writing by the Engineer. Such suspension shall be without liability to Contractor on the part of City. In the event a suspension of work is ordered because of failure on the part of Contractor to carry out orders given or to perform any provisions of the Services, such suspension of the Services shall not relieve Contractor of responsibility to complete the Services within the time limit set forth herein and shall not be considered cause for extension of the time for completion and, further, such suspension of the Services shall not entitle Contractor to any additional compensation.
1.8 Familiarity with Work and Worksite. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Services, (ii) has carefully considered how the Services should be performed, and (iii)
Contract Services Agreement | 5
fully understands the facilities, difficulties, and restrictions attending performance of the Services. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder. Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Administrator.
1.9 Further Responsibilities of the Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless otherwise specified in this Agreement, neither Party shall be responsible for the service of the other.
SECTION 2. COMPENSATION.
2.1 Contract Amount. City hereby agrees to pay Contractor a sum not to exceed «CONTRACT_AMOUNT_SPELLED_OUT» («Contract_Amount») notwithstanding any contrary indications that may be contained in Contractor’s proposal or bid, for the Services to be performed and reimbursable costs incurred under this Agreement. This compensation may be administratively adjusted pursuant to Section 8.4 herein. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Contractor for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified in this Section 2 shall be the only payments from City to Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.
2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Contractor’s rates as specified in the Scope of Services, provided that time estimates are provided for the performance of subtasks, or (iv) such other methods as may be specified in the Scope of Services. In no event shall compensation exceed the amount set forth in Subsection 2.1.
2.3 Invoices. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Subcontractor charges shall also be detailed by such categories. Invoices shall contain:
Contract Services Agreement | 6
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense;
e. The total number of hours of work performed under this Agreement by Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed;
g. The Principals’ signatures.
Invoices shall be submitted to:
City of Yorba Linda
Attn: Accounts Payable
4845 Casa Loma Ave
Yorba Linda, CA 92886
2.4 City Payment of Invoices. City shall independently review each invoice submitted by Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission.
Pursuant to California Public Contract Code Section 20104.50, Contractor is notified that for public works Services, City’s failure to pay undisputed and properly submitted invoices within thirty (30) days shall be subject to interest at the legal rate set forth in Code of Civil Procedure Section 685.010. Any invoice for public works Services determined not to be a proper invoice suitable for payment shall be returned to the Contractor as soon as practicable, but not later than seven (7) days, after receipt. An invoice returned pursuant to the foregoing shall be accompanied by a writing stating the reasons why the invoice is not proper.
2.5 Retention of Funds, Final Payment.
Contract Services Agreement | 7
a. Contractor hereby authorizes City, in the sole discretion of the Contract Administrator, to retain and deduct from any amount payable to Contractor not exceeding five percent (5%) of the total compensation The retained funds shall be paid to Contractor within sixty (60) days after final acceptance of the Services by the City and after Contractor has furnished City with full release of all undisputed payments under this Agreement. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds of up to one hundred fifty percent (150%) of the amount in dispute. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as provided in this Agreement. b. Notwithstanding Paragraph a, California Public Contract Code Section 22300 permits the substitution of securities for any retention monies withheld by City for public works Services. At the request and expense of Contractor, securities equivalent to the monies withheld shall be deposited with City, or with a state or federally chartered bank in California as the escrow agent, who shall then pay such monies to Contractor. City retains the sole discretion to approve the bank selected by Contractor to serve as escrow agent. Upon satisfactory completion of the Services, the securities shall be returned to Contractor. Securities eligible for investment shall include those listed in Government Code Section 16430. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. In the alternative, under California Public Contract Code Section 22300, Contractor may request City to make payment of earned retention monies directly to the escrow agent at the expense of Contractor. Also at Contractor’s expense, Contractor may direct investment of the payments into securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor.
Upon satisfactory completion of the Services, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from City pursuant to the terms of California Public Contract Code Section 22300.
2.6 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Contractor submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.
2.7 Hourly Fees. Fees for the Services performed by Contractor on an hourly basis shall not exceed the amounts shown on Exhibit A.
2.8 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. Reimbursable expenses not listed in Exhibit A must be approved in advance by the Contract Administrator, in his or her sole discretion.
Contract Services Agreement | 8
Contractor shall not be entitled to any additional compensation for the attendance of meetings reasonably deemed necessary by City for the execution of the Services.
2.9 Payment of Taxes. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.
2.10 Payment upon Termination. In the event that City or Contractor terminates this Agreement pursuant to Section 8, City shall compensate Contractor for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination.
Contractor shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.
2.11 No Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.
SECTION 3. FACILITIES AND EQUIPMENT.
3.1 Contractor Provides Facilities and Equipment. Except as otherwise provided, Contractor shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. In no event shall City be required to furnish any facility or equipment that may involve incurring any direct expense.
3.2 Utility Relocation. Where applicable, pursuant to California Government Code Section 4215, City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
3.3 Trenches or Excavations. Pursuant to California Public Contract Code Sections 6705 and 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply. a. Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
Contract Services Agreement | 9
b. If the Services involve an estimated expenditure in excess of TwentyFive Thousand Dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by the City Engineer, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. c. City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue an order or amendment for additional services pursuant to Subsection
8.4 or 8.5 of this Agreement.
d. If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement.
Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.
SECTION 4. INSURANCE AND BOND REQUIREMENTS.
Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below and provide certified copies of insurance policies and original endorsements, indicating that Contractor has obtained or currently maintains insurance that meets the requirements of this Section and which is satisfactory, in all respects, to City. Contractor shall also deliver the payment and performance bonds required by this Section 4 with City. Contractor shall maintain the insurance policies required by this Section throughout the term of this Agreement. The cost of such insurance shall be included in Contractor’s compensation.
Contractor shall not allow any subcontractor, Contractor or other agent to commence work on any subcontract until Contractor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City, and has delivered the required bonds to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Contractor acknowledges the insurance policy must cover inter-insured suits between City and other insureds. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in
Contract Services Agreement | 10
the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator in the Contract Administrator’s sole discretion. If this Agreement continues for more than three (3) years duration, or in the event the Contract Administrator determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 4 may be changed accordingly upon receipt of written notice from the Contract Administrator; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Administrator to the City Council of City within ten (10) days of receipt of notice from the Contract Administrator.
4.1 Workers’ Compensation. Contractor shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Contractor pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy.
In the alternative, Contractor may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Contractor, if a program of selfinsurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. Pursuant to California Labor Code Section 1860, Contractor is required to secure the payment of compensation to Contractor’s employees.
Pursuant to California Labor Code Section 1861, Contractor hereby submits to City the following:
I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
Contractor Initial: _______
4.2 Commercial General and Automobile Liability Insurance. a. General Requirements. Contractor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than TWO MILLION DOLLARS ($2,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general
Contract Services Agreement | 11
aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, leased, and non-owned automobiles. b. Minimum Scope of Coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9 including “any auto” and endorsement CA 0025 or equivalent). No endorsement shall be attached limiting the coverage.
c. Additional Requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
(i) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
(ii) The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. (iii) The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (iv) Any failure of Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.
4.3 Professional Liability Insurance.
a. General Requirements. Contractor, at its own expense, shall maintain professional liability insurance appropriate to Contractor’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)-year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage.
Contract Services Agreement | 12
b. Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
(i) The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
(ii) If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Contractor must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Contractor’s sole cost and expense, any extended reporting provisions of the policy, if Contractor cancels or does not renew the coverage. (iii) A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.
4.4 Pollution Liability Insurance. Contractor, at its own expense, shall maintain pollution liability insurance written on a per occurrence for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than TWO MILLION DOLLARS ($2,000,000.00) per pollution incident and THREE MILLION DOLLARS ($3,000,000.00) in the general aggregate. The policy shall apply to any incidents at or from any location on which Contractor performs the Services under this Agreement. The insurance must be maintained for at least one (1) year following the completion of Contractor’s services or the expiration or termination of this Agreement.
4.5 All Policies Requirements.
a. Verification of Coverage. Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The certificate of insurance must include the following reference: Janitorial Services At City Facilities. The name and address for additional insured endorsements, certificates of insurance and notice of cancellation is:
City of Yorba Linda, 4845 Casa Loma Ave, Yorba Linda, CA 92886. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Contractor.
b. Notice of Reduction in or Cancellation of Coverage. Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required
Contract Services Agreement | 13
insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4 to the Contract Administrator. c. Additional Insured; Primary Insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.
A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees, agents, authorized volunteers, and their respective insurers. d. Deductibles and Self-Insured Retentions. Contractor shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Contractor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Contractor procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. e. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
f. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.
Contract Services Agreement | 14
4.6 Payment and Performance Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secure the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement. Payment and performance bonds shall be secured from a surety company rated Grade “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator due to unique circumstances, and shall be authorized to write such bonds in the State of California. Contractor shall pay all bond premiums, costs, and incidentals.
Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. Without limiting the foregoing, Contractor understands that Civil Code Section 9550 requires a payment bond for all public works contracts involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000).
4.7 Remedies. In addition to any other remedies at law or equity City may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Contractor’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Contractor to stop work under this Agreement or withhold any payment that becomes due to Contractor hereunder, or both stop work and withhold any payment, until Contractor demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement.
SECTION 5. INDEMNIFICATION.
5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties
Contract Services Agreement | 15
of any kind (including costs and expenses incurred by City and reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Contractor fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Contractor, its officers, agents, employees, or subcontractors (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this Agreement.
5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder.
5.3 Subcontractors. Contractor shall incorporate similar indemnity agreements with its subcontractors. Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.
5.4 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity. In the event any applicable law contains a limitation on indemnification under this Agreement, such limitation shall supersede the provisions herein only to the extent required by said law.
SECTION 6. INDEPENDENT CONTRACTOR.
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subsection 1.4; however, otherwise City shall not have the right to control the means by which Contractor accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall not at any time or in any manner represent that it is or any of its officers, employees, or agents are in any manner officers, officials, employees, or agents of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for
Contract Services Agreement | 16
the fees paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.
City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.
SECTION 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Contractor shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.
7.3 Prevailing Wages. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable prevailing wage laws and regulations and effectuating compliance with such laws, including, but not limited to the prevailing wage and related requirements set forth in this Subsection 7.3. Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. a. Public Work. Contractor hereby expressly acknowledges and agrees that City has never previously affirmatively represented to Contractor, its employees or agents in writing or otherwise that the Services are not a “public work,” as defined in Section 1720 of the California Labor Code. It is agreed by the Parties that, in connection with the development, construction (as defined by applicable law) and
Contract Services Agreement | 17
operation of the Services, including, without limitation, any public work (as defined by applicable law), if any, Contractor shall bear all risks of payment or non-payment of state and/or federal prevailing wages and/or the implementation of California Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. To the extent applicable, City will enforce all penalties required by law for Contractor’s failure to pay prevailing wages. b. California Labor Code. The Contractor’s attention is directed to Division 2, Part 7, Chapter 1 of the California Labor Code and especially to Article 2 (Wages); and Article 3 (Working Hours), thereof.
(i) In accordance with Sections 1773 and 1773.2 of the California Labor Code, City has found and determined the general prevailing rates of wages in the locality in which the public work is to be performed are those determined by the Director of Industrial Relations and available at https://www.dir.ca.gov/OPRL/2022- 1/PWD/Southern.html. Copies of the prevailing rates of wages are maintained with City’s principal office and are available to any interested party on request. Contractor shall post a copy of the prevailing rate of per diem wages at each job site. (ii) Contractor is aware of and will comply with the provisions of California Labor Code Section 1776, including the keeping of payroll records and furnishing certified copies thereof in accordance with said Section. Pursuant to California Labor Code Section 1771.4, Contractor must submit certified payroll records to the Labor Commissioner using the Department of Industrial Relations’ electronic certified payroll reporting (eCPR) system.
(iii) Pursuant to California Labor Code Section 1810, it is stipulated hereby that eight (8) hours labor constitutes a legal day’s work hereunder. (iv) Pursuant to California Labor Code Section 1815, work performed by employees of contractors in excess of eight (8) hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay.
(v) Pursuant to California Labor Code Section 1813, it is stipulated hereby that Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor hereunder for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one (1) calendar week in violation of the provisions of Article 3 (commencing with Section 1810), Chapter 1, Part 7, Division 2 of the California Labor Code. (vi) Contractor is aware of and will comply with the provisions of California Labor Code Sections 1777.5 and 1777.6 with respect to the employment of
Contract Services Agreement | 18
apprentices. Pursuant to Section 1777.5 it is hereby stipulated that Contractor will be responsible for obtaining compliance therewith on the part of any and all sub-consultants or subcontractors employed by Contractor in connection with this Agreement. (vii) Pursuant to California Labor Code Section 1775, it is hereby stipulated that Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for the Services by Contractor or any sub-consultant or subcontractor.
c. Bidding Eligibility. Pursuant to California Labor Code Section 1771.1, no contractor or subcontractor (or consultant or subconsultant) may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations. Pursuant to California Public Contract Code Section 6109, Contractor may not perform any Services hereunder with a subcontractor who is ineligible to perform the Services pursuant to Section 1777.1 or 1777.7 of the California Labor Code.
d. DIR Monitoring. Pursuant to California Labor Code Section 1771.4, Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
e. Indemnification Related to Prevailing Wages. Section 5, Indemnification, specifically encompasses Claims arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of California Labor Code Sections 1726 and 1781, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to provide any required disclosure or identification as required by California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.
7.4 Licenses and Permits, Fees, and Assessments. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions, and perform the Services. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions, and perform the Services.
In addition to the foregoing, Contractor and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties
Contract Services Agreement | 19
and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder.
7.5 Conflicts of Interest. Contractor represents, warrants, and covenants that Contractor presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement. Contractor further agrees that while this Agreement is in effect, Contractor shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement.
7.6 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.
7.7 Annual Appropriation of Funding. In accord with Article 16 Section 18 of the California Constitution, payment of compensation under this Agreement is contingent upon annual appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Subsection shall be construed to limit the right of either Party to terminate this Agreement as provided herein.
7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of FIVE HUNDRED DOLLARS ($500.00) as liquidated damages for each working day of delay in the performance of any of the Services. City may withhold from any monies payable on account of the Services performed by Contractor any accrued liquidated damages.
SECTION 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may terminate this Agreement at any time and without cause upon thirty (30) days’ written notification to Contractor. City may also terminate this Agreement pursuant to Subsection 8.8.
Contract Services Agreement | 20
8.2 Consequences of Termination. In the event of termination, Contractor shall be entitled to compensation for the Services satisfactorily performed up to the date of termination; City, however, may condition payment of such compensation upon Contractor delivering to City any or all materials provided to Contractor or prepared by or for Contractor or City in connection with this Agreement. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Administrator.
8.3 Administrative Change Orders. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Administrator to Contractor, incorporating therein any adjustment in (i) the total compensation, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. Any increase in compensation of up to five percent (5%) of the total compensation or TWENTY-FIVE THOUSAND DOLLARS ($25,000), whichever is less; or in the time to perform of up to one hundred eighty (180) days may be approved in writing by the Contract Administrator. Contractor understands and agrees that, if City grants an extension in time without additional work, City shall have no obligation to provide Contractor with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Contractor for any otherwise reimbursable expenses incurred during the extension period. All other extensions or modifications to this Agreement shall require a written amendment pursuant to Subsection 8.5.
8.4 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. The Contract Administrator shall have the authority to execute amendments to this Agreement which do not materially change the terms hereof, in the Contract Administrator’s discretion, to the extent permitted by applicable federal, state, and local law. The Contract Administrator may refer any proposed amendment to the City Council for review and approval.
8.5 Assignment and Subcontracting. City and Contractor recognize and agree that this Agreement contemplates personal performance by Contractor and is based upon a determination of Contractor’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Contractor.
Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the Scope of Services, without prior written approval of the Contract Administrator. In the event of any unapproved assignment, including in connection with any bankruptcy proceeding, this Agreement shall be void. No approved assignment shall
Contract Services Agreement | 21
release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
8.6 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Contractor shall survive the expiration or termination of this Agreement.
8.7 Disputes, Default. In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any of the Services performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, in the sole discretion of the Contract Administrator. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, City's remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Contractor pursuant to this Agreement;
c. Retain a different contractor to complete the Services; and/or d. Charge Contractor the difference between the cost to complete the Services that is unfinished at the time of breach and the amount that City would have paid Contractor pursuant to Section 2 if Contractor had completed the Services.
Any failure on the part of City to give notice of Contractor’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
8.8 Claims by Contractor. Claims, as that term is defined in California Public Contract Code Section 9204, by Contractor and, where applicable, any subcontractor, in connection with a public works project shall by subject to the mediation procedure in California Public Contract Code Section 9204.
SECTION 9. KEEPING AND STATUS OF RECORDS.
9.1 Documents and Data. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models,
Contract Services Agreement | 22
renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Administrator or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.
9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials. Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
9.3 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Administrator to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Administrator shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the
Contract Services Agreement | 23
event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.
9.4 Reports. Contractor shall periodically prepare and submit to the Contract Administrator such reports concerning the performance of the Services required by this Agreement as the Contract Administrator shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Administrator of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.
9.5 Confidentiality. City and Contractor agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. Contractor, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the Contract Administrator or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. If Contractor, or any officer, employee, agent, or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any Claims caused by or incurred as a result of Contractor’s conduct.
Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Response to a subpoena or court order shall not be considered a voluntary disclosure so long as Contractor gives City notice of such court order or subpoena as provided herein. Contractor understands and agrees that it may be required to provide documents to the City to be produced in response to a Public Records Act request.
Contract Services Agreement | 24
SECTION 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Subsection shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.
10.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.
10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.
10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.5 No Implied Waiver of Breach. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a nondefaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.
10.7 Contractor Principals and Representatives. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
(Name) (Title)
Contract Services Agreement | 25
(Name) (Title)
(Name) (Title)
It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.
10.8 City Contract Administration. This Agreement shall be administered by a City employee, Brad Skeene, Parks and Facilities Superintendent (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. It shall be Contractor’s responsibility to assure that the Contract Administrator is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Administrator. Unless otherwise provided by applicable law, the Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement.
Unless otherwise provided in this Agreement, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee.
10.9 Notices. Any written notice to Contractor shall be sent to:
«Contractor»
Attn: «Contractor_Contact»
«Address»
«City», «State» «Zip_Code»
Any written notice to City shall be sent to the Contract Administrator at:
City of Yorba Linda
4845 Casa Loma Ave
Yorba Linda, CA 92886
Attn: Brad Skeene, Parks and Facilities Superintendent
with a copy to:
City Clerk
Contract Services Agreement | 26
City of Yorba Linda
4845 Casa Loma Ave
Yorba Linda, CA 92886
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
10.10 Rights and 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 or any other default by the other Party.
10.11 Integration, Interpretation. This Agreement, including Exhibits A and B, represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral.
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
10.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
10.13 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.
10.14 Nondiscrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
Contract Services Agreement | 27
10.15 No Third Party Beneficiaries. There are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.16 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
10.17 No Undue Influence. Contractor declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Contractor, or from any officer, employee, or agent of Contractor, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.
10.18 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or subagreement, or the proceeds thereof, for the Services to be performed under this Agreement.
[Signatures on Following Page]
Contract Services Agreement | 28
IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.
CITY OF YORBA LINDA
Janice Lim, Mayor
Attest:
Marcia Brown, City Clerk
Approved as to Form:
Todd Litfin, City Attorney
CONTRACTOR
By:
Name:
Title:
By:
Name:
Title:
[Note: 2 officer’s signatures required if
Contractor is a corporation, unless
provided with a certificate of secretary inlieu]
SCOPE OF SERVICES | 1
EXHIBIT A
SCOPE OF SERVICES
Services shall include Janitorial Services At City Facilities services, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, in the amount not to exceed
«CONTRACT_AMOUNT_SPELLED_OUT» («Contract_Amount») as further detailed in the attached pages (if any). If the Services include Services pursuant to a request for proposals or bid, the Services shall include the work contemplated by the entire “Bid Package” or “Request for Proposals” for the Services, including all plans, addenda, documentation, and specifications attached thereto. A copy of the Bid Package and/or Request for Proposals, as applicable shall be retained with a copy of this Agreement.
Contractor shall keep a copy of the same for at least three (3) years following termination of this Agreement.
[ATTACH BID PACKAGE / SCOPE OF WORK]
SCHEDULE OF SERVICES | 1
EXHIBIT “B”
SCHEDULE OF SERVICES
In the event that this Agreement is renewed pursuant to Section 1.2, the first renewal period shall be from July 1, 2028, to June 30, 2029. The second renewal period shall be from July 1, 2029, to June 30, 2030.
COMPENSATION | 1
EXHIBIT “C”
COMPENSATION
In the event that this Agreement is renewed pursuant to Section 1.2, the rates set forth above shall be adjusted each year at the time of renewal described in Exhibit “B” in accordance with the Consumer Price Index, All Urban Consumers, Los Angeles-Riverside-Orange Counties, not to exceed 4% annualy.
FAITHFUL PERFORMANCE BOND | 1
(PAGE 1 OF 2)
CITY OF YORBA LINDA
FAITHFUL PERFORMANCE BOND
FOR
JANITORIAL SERVICES AT CITY FACILITIES
KNOW ALL MEN BY THESE PRESENTS that, Insert Contractors Name, as CONTRACTOR, and,___________________________________________________as SURETY, are held and firmly bound unto the City of Yorba Linda, as AGENCY, in the penal sum of Insert Written Dollar amount Dollars ($.00), which is twenty five (25%) of the total contract amount for the above stated project, for the payment of which sums, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas CONTRACTOR has been awarded and is about to enter into the annexed Contract Agreement with AGENCY for the above stated project, if CONTRACTOR faithfully performs and fulfills all obligations under the contract documents in the manner and time specified therein, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY; provided that any alterations in the obligations or time for completion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SURETY, and notice of such alterations is hereby waived by SURETY.
WITNESS our hands this ________ day of _____________, 2025.
CONTRACTOR (CORPORATION-TYPE)
(SEAL) By
President
By
Secretary/Treasurer
FAITHFUL PERFORMANCE BOND | 2
FAITHFUL PERFORMANCE BOND
(PAGE 2 OF 2)
______________________________
SURETY'S NAME-TYPE
______________________________
MAILING ADDRESS (SURETY)
BY:
Name
(SEAL)
Title
NOTE: SIGNATURES OF CORPORATE OFFICIALS AND SURETY MUST BE NOTARIZED, ATTACH JURAT.
BOND APPROVED AS TO FORM:
CITY ATTORNEY - CITY OF YORBA LINDA
MATERIAL AND LABOR BOND | 1
(PAGE 1 OF 2)
CITY OF YORBA LINDA
MATERIAL AND LABOR BOND
FOR
JANITORIAL SERVICES AT CITY FACILITIES
KNOW ALL MEN BY THESE PRESENTS that, Insert Contractors Name, as CONTRACTOR, and,___________________________________________________as SURETY, are held and firmly bound unto the City of Yorba Linda, as AGENCY, in the penal sum of Insert Written Dollar amount Dollars ($.00), which is twenty five (25%) of the total contract amount for the above stated project, for the payment of which sums, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas CONTRACTOR has been awarded and is about to enter into the annexed Contract Agreement with AGENCY for the above stated project, if CONTRACTOR or any subcontractor fails to pay for any labor or material of any kind used in the performance of the work to be done under said contract, or fails to submit amounts due under the State Unemployment Insurance Act with respect to said labor, SURETY will pay for the same in an amount not exceeding the sum set forth above, which amount shall insure to be the benefit of all persons entitled to file claims under the State Code of Civil Procedures; provided that any alterations in the work to be done, materials to be furnished, or time for completion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SURETY, and notice of said alterations is hereby waived by SURETY.
WITNESS our hands this ________ day of _____________, 2025.
CONTRACTOR (CORPORATION-TYPE)
By___________________________
President
(SEAL) By __________________________
Secretary/Treasurer
MATERIAL AND LABOR BOND | 2
MATERIAL AND LABOR BOND
(PAGE 2 OF 2)
SURETY'S NAME-TYPE
MAILING ADDRESS (SURETY)
BY:
Name
(SEAL)
Title
NOTE: SIGNATURES OF CORPORATE OFFICIALS AND SURETY MUST BE NOTARIZED, ATTACH JURAT.
BOND APPROVED AS TO FORM:
CITY ATTORNEY - CITY OF YORBA LINDA
Contract
Services
Agreement
Contract Services Agreement | 1
CONTRACT SERVICES AGREEMENT
JANITORIAL SERVICES AT CITY FACILITIES
THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this 6th day of May 2025 by and between the CITY OF YORBA LINDA, a California municipal corporation, (“City”) and MERCHANTS BUILDING MAINTENANCE, LLC, (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.
City sought, by issuance of a Request for Proposals or Invitation for Bids, for the performance of the services defined and described particularly in this Agreement.
Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in this Agreement, was selected by City to perform those services. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.
SECTION 1. SERVICES.
1.1 Scope of Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A, “Scope of Services” and incorporated herein by this reference (the “Services”). Contractor will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. The Scope of Services incorporates Contractor’s scope of work or bid for the Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.
1.2 Term of Services. The term of this Agreement shall be from July 1, 2025, to June 30, 2028, unless earlier terminated as provided herein. The City shall have the option to renew this Agreement annually for no more than two additional one-year terms.
Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.
1.3 Standard of Performance.
a. Quality of Work. As a material inducement to City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Contractor shall at all times faithfully, competently, and to
Contract Services Agreement | 2
the best of its ability, experience, and talent, perform all Services described herein.
Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances, and to the sole satisfaction of the Contract Administrator.
b. Care of Work. Contractor shall adopt reasonable methods during the term of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.
c. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to:
(A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. d. Warranty. Contractor warrants all work under this Agreement (which for purposes of this Subsection 1.3 shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship.
Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor
Contract Services Agreement | 3
shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense.
Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand.
e. Skilled and Trained Workforce. Contractor, for itself and its subcontractors at every tier, hereby provides an enforceable commitment to comply with California Public Contract Code section 2600 et seq., which requires use of a skilled and trained workforce to perform all work on the agreements that fall within an apprenticeable occupation in the building and construction trades.
f. Inspection and Final Acceptance. The Services shall be performed to the satisfaction of City. City may inspect and accept or reject any of Contractor’s work under this Agreement, during performance and/or when completed. City shall reject or finally accept Contractor’s work within forty five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 4 and Section 5, pertaining to insurance and indemnification, respectively.
1.4 Assignment of Personnel. Contractor shall assign only competent personnel to perform the Services. Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Contractor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.
Contract Services Agreement | 4
1.5 Time. Time is of the essence in the performance of this Agreement.
Contractor shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Contractor’s obligations hereunder. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Scope of Services. When requested by Contractor, extensions to the time period(s) specified in the Scope of Services may be approved in writing by the Contract Administrator but not shall not exceed one hundred eighty (180) days cumulatively.
1.6 Force Majeure. The time period(s) specified in the Scope of Services for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Administrator in writing of the causes of the delay. The Contract Administrator shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the sole judgment of the Contract Administrator such delay is justified. The Contract Administrator’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.
1.7 Suspension of Services. The City Engineer of City (“Engineer”) shall have the authority to suspend the Services, wholly or in part, for such period as the Engineer may deem necessary, due to unsuitable weather or to such other conditions as are considered unfavorable for the suitable prosecution of the Services, or for such time as the Engineer may deem necessary due to the failure on the part of Contractor to carry out orders given or to perform any provisions of the Services. Contractor shall immediately comply with the written order of the Engineer to suspend the Services wholly or in part and shall not resume the Services until ordered to do so in writing by the Engineer. Such suspension shall be without liability to Contractor on the part of City. In the event a suspension of work is ordered because of failure on the part of Contractor to carry out orders given or to perform any provisions of the Services, such suspension of the Services shall not relieve Contractor of responsibility to complete the Services within the time limit set forth herein and shall not be considered cause for extension of the time for completion and, further, such suspension of the Services shall not entitle Contractor to any additional compensation.
1.8 Familiarity with Work and Worksite. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Services, (ii) has carefully considered how the Services should be performed, and (iii)
Contract Services Agreement | 5
fully understands the facilities, difficulties, and restrictions attending performance of the Services. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder. Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Administrator.
1.9 Further Responsibilities of the Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless otherwise specified in this Agreement, neither Party shall be responsible for the service of the other.
SECTION 2. COMPENSATION.
2.1 Contract Amount. City hereby agrees to pay Contractor a sum not to exceed ONE MILLION ONE HUDRED FORTY THREE THOUSAND EIGHTY THREE DOLLARS AND FIFTY FIVE CENTS ($1,143,083.55) notwithstanding any contrary indications that may be contained in Contractor’s proposal or bid, for the Services to be performed and reimbursable costs incurred under this Agreement. This compensation may be administratively adjusted pursuant to Section 8.4 herein. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Contractor for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified in this Section 2 shall be the only payments from City to Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.
2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Contractor’s rates as specified in the Scope of Services, provided that time estimates are provided for the performance of subtasks, or (iv) such other methods as may be specified in the Scope of Services. In no event shall compensation exceed the amount set forth in Subsection 2.1.
2.3 Invoices. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Subcontractor charges shall also be detailed by such categories. Invoices shall contain:
Contract Services Agreement | 6
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense;
e. The total number of hours of work performed under this Agreement by Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed;
g. The Principals’ signatures.
Invoices shall be submitted to:
City of Yorba Linda
Attn: Accounts Payable
4845 Casa Loma Ave
Yorba Linda, CA 92886
2.4 City Payment of Invoices. City shall independently review each invoice submitted by Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission.
Pursuant to California Public Contract Code Section 20104.50, Contractor is notified that for public works Services, City’s failure to pay undisputed and properly submitted invoices within thirty (30) days shall be subject to interest at the legal rate set forth in Code of Civil Procedure Section 685.010. Any invoice for public works Services determined not to be a proper invoice suitable for payment shall be returned to the Contractor as soon as practicable, but not later than seven (7) days, after receipt. An invoice returned pursuant to the foregoing shall be accompanied by a writing stating the reasons why the invoice is not proper.
2.5 Retention of Funds, Final Payment.
Contract Services Agreement | 7
a. Contractor hereby authorizes City, in the sole discretion of the Contract Administrator, to retain and deduct from any amount payable to Contractor not exceeding five percent (5%) of the total compensation The retained funds shall be paid to Contractor within sixty (60) days after final acceptance of the Services by the City and after Contractor has furnished City with full release of all undisputed payments under this Agreement. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds of up to one hundred fifty percent (150%) of the amount in dispute. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as provided in this Agreement. b. Notwithstanding Paragraph a, California Public Contract Code Section 22300 permits the substitution of securities for any retention monies withheld by City for public works Services. At the request and expense of Contractor, securities equivalent to the monies withheld shall be deposited with City, or with a state or federally chartered bank in California as the escrow agent, who shall then pay such monies to Contractor. City retains the sole discretion to approve the bank selected by Contractor to serve as escrow agent. Upon satisfactory completion of the Services, the securities shall be returned to Contractor. Securities eligible for investment shall include those listed in Government Code Section 16430. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. In the alternative, under California Public Contract Code Section 22300, Contractor may request City to make payment of earned retention monies directly to the escrow agent at the expense of Contractor. Also at Contractor’s expense, Contractor may direct investment of the payments into securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor.
Upon satisfactory completion of the Services, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from City pursuant to the terms of California Public Contract Code Section 22300.
2.6 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Contractor submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.
2.7 Hourly Fees. Fees for the Services performed by Contractor on an hourly basis shall not exceed the amounts shown on Exhibit A.
2.8 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. Reimbursable expenses not listed in Exhibit A must be approved in advance by the Contract Administrator, in his or her sole discretion.
Contract Services Agreement | 8
Contractor shall not be entitled to any additional compensation for the attendance of meetings reasonably deemed necessary by City for the execution of the Services.
2.9 Payment of Taxes. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.
2.10 Payment upon Termination. In the event that City or Contractor terminates this Agreement pursuant to Section 8, City shall compensate Contractor for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination.
Contractor shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.
2.11 No Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.
SECTION 3. FACILITIES AND EQUIPMENT.
3.1 Contractor Provides Facilities and Equipment. Except as otherwise provided, Contractor shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. In no event shall City be required to furnish any facility or equipment that may involve incurring any direct expense.
3.2 Utility Relocation. Where applicable, pursuant to California Government Code Section 4215, City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
3.3 Trenches or Excavations. Pursuant to California Public Contract Code Sections 6705 and 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply. a. Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
Contract Services Agreement | 9
b. If the Services involve an estimated expenditure in excess of TwentyFive Thousand Dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by the City Engineer, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. c. City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue an order or amendment for additional services pursuant to Subsection
8.4 or 8.5 of this Agreement.
d. If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement.
Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.
SECTION 4. INSURANCE AND BOND REQUIREMENTS.
Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below and provide certified copies of insurance policies and original endorsements, indicating that Contractor has obtained or currently maintains insurance that meets the requirements of this Section and which is satisfactory, in all respects, to City. Contractor shall also deliver the payment and performance bonds required by this Section 4 with City. Contractor shall maintain the insurance policies required by this Section throughout the term of this Agreement. The cost of such insurance shall be included in Contractor’s compensation.
Contractor shall not allow any subcontractor, Contractor or other agent to commence work on any subcontract until Contractor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City, and has delivered the required bonds to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Contractor acknowledges the insurance policy must cover inter-insured suits between City and other insureds. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in
Contract Services Agreement | 10
the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator in the Contract Administrator’s sole discretion. If this Agreement continues for more than three (3) years duration, or in the event the Contract Administrator determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 4 may be changed accordingly upon receipt of written notice from the Contract Administrator; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Administrator to the City Council of City within ten (10) days of receipt of notice from the Contract Administrator.
4.1 Workers’ Compensation. Contractor shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Contractor pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy.
In the alternative, Contractor may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Contractor, if a program of selfinsurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. Pursuant to California Labor Code Section 1860, Contractor is required to secure the payment of compensation to Contractor’s employees.
Pursuant to California Labor Code Section 1861, Contractor hereby submits to City the following:
I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
Contractor Initial: _______
4.2 Commercial General and Automobile Liability Insurance. a. General Requirements. Contractor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than TWO MILLION DOLLARS ($2,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general
Contract Services Agreement | 11
aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, leased, and non-owned automobiles. b. Minimum Scope of Coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9 including “any auto” and endorsement CA 0025 or equivalent). No endorsement shall be attached limiting the coverage.
c. Additional Requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
(i) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
(ii) The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. (iii) The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (iv) Any failure of Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.
4.3 Professional Liability Insurance.
a. General Requirements. Contractor, at its own expense, shall maintain professional liability insurance appropriate to Contractor’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)-year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage.
Contract Services Agreement | 12
b. Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
(i) The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
(ii) If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Contractor must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Contractor’s sole cost and expense, any extended reporting provisions of the policy, if Contractor cancels or does not renew the coverage. (iii) A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.
4.4 Pollution Liability Insurance. Contractor, at its own expense, shall maintain pollution liability insurance written on a per occurrence for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than TWO MILLION DOLLARS ($2,000,000.00) per pollution incident and THREE MILLION DOLLARS ($3,000,000.00) in the general aggregate. The policy shall apply to any incidents at or from any location on which Contractor performs the Services under this Agreement. The insurance must be maintained for at least one (1) year following the completion of Contractor’s services or the expiration or termination of this Agreement.
4.5 All Policies Requirements.
a. Verification of Coverage. Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The certificate of insurance must include the following reference: Janitorial Services At City Facilities. The name and address for additional insured endorsements, certificates of insurance and notice of cancellation is:
City of Yorba Linda, 4845 Casa Loma Ave, Yorba Linda, CA 92886. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Contractor.
b. Notice of Reduction in or Cancellation of Coverage. Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required
Contract Services Agreement | 13
insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4 to the Contract Administrator. c. Additional Insured; Primary Insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.
A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees, agents, authorized volunteers, and their respective insurers. d. Deductibles and Self-Insured Retentions. Contractor shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Contractor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Contractor procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. e. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
f. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.
Contract Services Agreement | 14
4.6 Payment and Performance Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secure the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement. Payment and performance bonds shall be secured from a surety company rated Grade “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator due to unique circumstances, and shall be authorized to write such bonds in the State of California. Contractor shall pay all bond premiums, costs, and incidentals.
Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. Without limiting the foregoing, Contractor understands that Civil Code Section 9550 requires a payment bond for all public works contracts involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000).
4.7 Remedies. In addition to any other remedies at law or equity City may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Contractor’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Contractor to stop work under this Agreement or withhold any payment that becomes due to Contractor hereunder, or both stop work and withhold any payment, until Contractor demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement.
SECTION 5. INDEMNIFICATION.
5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties
Contract Services Agreement | 15
of any kind (including costs and expenses incurred by City and reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Contractor fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Contractor, its officers, agents, employees, or subcontractors (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this Agreement.
5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder.
5.3 Subcontractors. Contractor shall incorporate similar indemnity agreements with its subcontractors. Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.
5.4 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity. In the event any applicable law contains a limitation on indemnification under this Agreement, such limitation shall supersede the provisions herein only to the extent required by said law.
SECTION 6. INDEPENDENT CONTRACTOR.
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subsection 1.4; however, otherwise City shall not have the right to control the means by which Contractor accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall not at any time or in any manner represent that it is or any of its officers, employees, or agents are in any manner officers, officials, employees, or agents of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for
Contract Services Agreement | 16
the fees paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.
City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.
SECTION 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Contractor shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.
7.3 Prevailing Wages. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable prevailing wage laws and regulations and effectuating compliance with such laws, including, but not limited to the prevailing wage and related requirements set forth in this Subsection 7.3. Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. a. Public Work. Contractor hereby expressly acknowledges and agrees that City has never previously affirmatively represented to Contractor, its employees or agents in writing or otherwise that the Services are not a “public work,” as defined in Section 1720 of the California Labor Code. It is agreed by the Parties that, in connection with the development, construction (as defined by applicable law) and
Contract Services Agreement | 17
operation of the Services, including, without limitation, any public work (as defined by applicable law), if any, Contractor shall bear all risks of payment or non-payment of state and/or federal prevailing wages and/or the implementation of California Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. To the extent applicable, City will enforce all penalties required by law for Contractor’s failure to pay prevailing wages. b. California Labor Code. The Contractor’s attention is directed to Division 2, Part 7, Chapter 1 of the California Labor Code and especially to Article 2 (Wages); and Article 3 (Working Hours), thereof.
(i) In accordance with Sections 1773 and 1773.2 of the California Labor Code, City has found and determined the general prevailing rates of wages in the locality in which the public work is to be performed are those determined by the Director of Industrial Relations and available at https://www.dir.ca.gov/OPRL/2022- 1/PWD/Southern.html. Copies of the prevailing rates of wages are maintained with City’s principal office and are available to any interested party on request. Contractor shall post a copy of the prevailing rate of per diem wages at each job site. (ii) Contractor is aware of and will comply with the provisions of California Labor Code Section 1776, including the keeping of payroll records and furnishing certified copies thereof in accordance with said Section. Pursuant to California Labor Code Section 1771.4, Contractor must submit certified payroll records to the Labor Commissioner using the Department of Industrial Relations’ electronic certified payroll reporting (eCPR) system.
(iii) Pursuant to California Labor Code Section 1810, it is stipulated hereby that eight (8) hours labor constitutes a legal day’s work hereunder. (iv) Pursuant to California Labor Code Section 1815, work performed by employees of contractors in excess of eight (8) hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay.
(v) Pursuant to California Labor Code Section 1813, it is stipulated hereby that Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor hereunder for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one (1) calendar week in violation of the provisions of Article 3 (commencing with Section 1810), Chapter 1, Part 7, Division 2 of the California Labor Code. (vi) Contractor is aware of and will comply with the provisions of California Labor Code Sections 1777.5 and 1777.6 with respect to the employment of
Contract Services Agreement | 18
apprentices. Pursuant to Section 1777.5 it is hereby stipulated that Contractor will be responsible for obtaining compliance therewith on the part of any and all sub-consultants or subcontractors employed by Contractor in connection with this Agreement. (vii) Pursuant to California Labor Code Section 1775, it is hereby stipulated that Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for the Services by Contractor or any sub-consultant or subcontractor.
c. Bidding Eligibility. Pursuant to California Labor Code Section 1771.1, no contractor or subcontractor (or consultant or subconsultant) may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations. Pursuant to California Public Contract Code Section 6109, Contractor may not perform any Services hereunder with a subcontractor who is ineligible to perform the Services pursuant to Section 1777.1 or 1777.7 of the California Labor Code.
d. DIR Monitoring. Pursuant to California Labor Code Section 1771.4, Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
e. Indemnification Related to Prevailing Wages. Section 5, Indemnification, specifically encompasses Claims arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of California Labor Code Sections 1726 and 1781, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to provide any required disclosure or identification as required by California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.
7.4 Licenses and Permits, Fees, and Assessments. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions, and perform the Services. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions, and perform the Services.
In addition to the foregoing, Contractor and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties
Contract Services Agreement | 19
and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder.
7.5 Conflicts of Interest. Contractor represents, warrants, and covenants that Contractor presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement. Contractor further agrees that while this Agreement is in effect, Contractor shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement.
7.6 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.
7.7 Annual Appropriation of Funding. In accord with Article 16 Section 18 of the California Constitution, payment of compensation under this Agreement is contingent upon annual appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Subsection shall be construed to limit the right of either Party to terminate this Agreement as provided herein.
7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of FIVE HUNDRED DOLLARS ($500.00) as liquidated damages for each working day of delay in the performance of any of the Services. City may withhold from any monies payable on account of the Services performed by Contractor any accrued liquidated damages.
SECTION 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may terminate this Agreement at any time and without cause upon thirty (30) days’ written notification to Contractor. City may also terminate this Agreement pursuant to Subsection 8.8.
Contract Services Agreement | 20
8.2 Consequences of Termination. In the event of termination, Contractor shall be entitled to compensation for the Services satisfactorily performed up to the date of termination; City, however, may condition payment of such compensation upon Contractor delivering to City any or all materials provided to Contractor or prepared by or for Contractor or City in connection with this Agreement. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Administrator.
8.3 Administrative Change Orders. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Administrator to Contractor, incorporating therein any adjustment in (i) the total compensation, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. Any increase in compensation of up to five percent (5%) of the total compensation or TWENTY-FIVE THOUSAND DOLLARS ($25,000), whichever is less; or in the time to perform of up to one hundred eighty (180) days may be approved in writing by the Contract Administrator. Contractor understands and agrees that, if City grants an extension in time without additional work, City shall have no obligation to provide Contractor with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Contractor for any otherwise reimbursable expenses incurred during the extension period. All other extensions or modifications to this Agreement shall require a written amendment pursuant to Subsection 8.5.
8.4 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. The Contract Administrator shall have the authority to execute amendments to this Agreement which do not materially change the terms hereof, in the Contract Administrator’s discretion, to the extent permitted by applicable federal, state, and local law. The Contract Administrator may refer any proposed amendment to the City Council for review and approval.
8.5 Assignment and Subcontracting. City and Contractor recognize and agree that this Agreement contemplates personal performance by Contractor and is based upon a determination of Contractor’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Contractor.
Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the Scope of Services, without prior written approval of the Contract Administrator. In the event of any unapproved assignment, including in connection with any bankruptcy proceeding, this Agreement shall be void. No approved assignment shall
Contract Services Agreement | 21
release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
8.6 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Contractor shall survive the expiration or termination of this Agreement.
8.7 Disputes, Default. In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any of the Services performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, in the sole discretion of the Contract Administrator. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, City's remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Contractor pursuant to this Agreement;
c. Retain a different contractor to complete the Services; and/or d. Charge Contractor the difference between the cost to complete the Services that is unfinished at the time of breach and the amount that City would have paid Contractor pursuant to Section 2 if Contractor had completed the Services.
Any failure on the part of City to give notice of Contractor’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
8.8 Claims by Contractor. Claims, as that term is defined in California Public Contract Code Section 9204, by Contractor and, where applicable, any subcontractor, in connection with a public works project shall by subject to the mediation procedure in California Public Contract Code Section 9204.
SECTION 9. KEEPING AND STATUS OF RECORDS.
9.1 Documents and Data. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models,
Contract Services Agreement | 22
renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Administrator or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.
9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials. Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials. Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
9.3 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Administrator to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Administrator shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the
Contract Services Agreement | 23
event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.
9.4 Reports. Contractor shall periodically prepare and submit to the Contract Administrator such reports concerning the performance of the Services required by this Agreement as the Contract Administrator shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Administrator of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.
9.5 Confidentiality. City and Contractor agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. Contractor, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the Contract Administrator or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. If Contractor, or any officer, employee, agent, or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any Claims caused by or incurred as a result of Contractor’s conduct.
Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Response to a subpoena or court order shall not be considered a voluntary disclosure so long as Contractor gives City notice of such court order or subpoena as provided herein. Contractor understands and agrees that it may be required to provide documents to the City to be produced in response to a Public Records Act request.
Contract Services Agreement | 24
SECTION 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Subsection shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.
10.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.
10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.
10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.5 No Implied Waiver of Breach. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a nondefaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.
10.7 Contractor Principals and Representatives. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
(Name) (Title)
Regional Branch Manager
Contract Services Agreement | 25
(Name) (Title)
(Name) (Title)
It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.
10.8 City Contract Administration. This Agreement shall be administered by a City employee, Brad Skeene, Parks and Facilities Superintendent (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. It shall be Contractor’s responsibility to assure that the Contract Administrator is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Administrator. Unless otherwise provided by applicable law, the Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement.
Unless otherwise provided in this Agreement, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee.
10.9 Notices. Any written notice to Contractor shall be sent to:
Merchants Building Maintenance, LLC
1639 East Edinger Avenue, Suite C
Santa Ana, CA 92705
Attn: Conner Haas, Regional Branch Manager
Any written notice to City shall be sent to the Contract Administrator at:
City of Yorba Linda
4845 Casa Loma Ave
Yorba Linda, CA 92886
Attn: Brad Skeene, Parks and Facilities Superintendent
with a copy to:
City Clerk
Branch Manager
Contract Services Agreement | 26
City of Yorba Linda
4845 Casa Loma Ave
Yorba Linda, CA 92886
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
10.10 Rights and 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 or any other default by the other Party.
10.11 Integration, Interpretation. This Agreement, including Exhibits A and B, represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral.
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
10.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
10.13 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.
10.14 Nondiscrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
Contract Services Agreement | 27
10.15 No Third Party Beneficiaries. There are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.16 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
10.17 No Undue Influence. Contractor declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Contractor, or from any officer, employee, or agent of Contractor, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.
10.18 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or subagreement, or the proceeds thereof, for the Services to be performed under this Agreement.
[Signatures on Following Page]
Contract Services Agreement | 28
IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.
CITY OF YORBA LINDA
Mark Pulone, City Manager
Attest:
Marcia Brown, City Clerk
Approved as to Form:
Todd Litfin, City Attorney
MERCHANTS BUILDING
MAINTENANCE, LLC
By:
Name:
Title:
By:
Name:
Title:
[Note: 2 officer’s signatures required if
Contractor is a corporation, unless
provided with a certificate of secretary inlieu]
Jaime Espinoza
Branch Manager
Connor Haas
Branch Manager
SCOPE OF SERVICES | 1
EXHIBIT A
SCOPE OF SERVICES
Services shall include Janitorial Services At City Facilities services, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, in the amount not to exceed ONE MILLION ONE HUDRED FORTY
THREE THOUSAND EIGHTY THREE DOLLARS AND FIFTY FIVE CENTS ($1,143,083.55) as further detailed in the attached pages (if any). If the Services include Services pursuant to a request for proposals or bid, the Services shall include the work contemplated by the entire “Bid Package” or “Request for Proposals” for the Services, including all plans, addenda, documentation, and specifications attached thereto. A copy of the Bid Package and/or Request for Proposals, as applicable shall be retained with a copy of this Agreement. Contractor shall keep a copy of the same for at least three (3) years following termination of this Agreement.
SCHEDULE OF SERVICES | 1
EXHIBIT “B”
SCHEDULE OF SERVICES
In the event that this Agreement is renewed pursuant to Section 1.2, the first renewal period shall be from July 1, 2028, to June 30, 2029. The second renewal period shall be from July 1, 2029, to June 30, 2030.
COMPENSATION | 1
EXHIBIT “C”
COMPENSATION
In the event that this Agreement is renewed pursuant to Section 1.2, the rates set forth above shall be adjusted each year at the time of renewal described in Exhibit “B” in accordance with the Consumer Price Index, All Urban Consumers, Los Angeles-Riverside-Orange Counties, not to exceed 4% annually.
FAITHFUL PERFORMANCE BOND | 1
(PAGE 1 OF 2)
CITY OF YORBA LINDA
FAITHFUL PERFORMANCE BOND
FOR
JANITORIAL SERVICES AT CITY FACILITIES
KNOW ALL MEN BY THESE PRESENTS that, Merchants Building Maintenance, LLC, as CONTRACTOR, and,_________________________________________________________as SURETY, are held and firmly bound unto the City of Yorba Linda, as AGENCY, in the penal sum of Two Hundred Eighty Five Thousand Seven Hundred Seventy Seven Dollars and Eighty Nine Cents ($285,770.89), which is twenty five (25%) of the total contract amount for the above stated project, for the payment of which sums, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas CONTRACTOR has been awarded and is about to enter into the annexed Contract Agreement with AGENCY for the above stated project, if CONTRACTOR faithfully performs and fulfills all obligations under the contract documents in the manner and time specified therein, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY; provided that any alterations in the obligations or time for completion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SURETY, and notice of such alterations is hereby waived by SURETY.
WITNESS our hands this ________ day of _____________, 2025.
CONTRACTOR (CORPORATION-TYPE)
(SEAL) By
President
By
Secretary/Treasurer
FAITHFUL PERFORMANCE BOND | 2
FAITHFUL PERFORMANCE BOND
(PAGE 2 OF 2)
______________________________
SURETY'S NAME-TYPE
______________________________
MAILING ADDRESS (SURETY)
BY:
Name
(SEAL)
Title
NOTE: SIGNATURES OF CORPORATE OFFICIALS AND SURETY MUST BE NOTARIZED, ATTACH JURAT.
BOND APPROVED AS TO FORM:
CITY ATTORNEY - CITY OF YORBA LINDA
MATERIAL AND LABOR BOND | 1
(PAGE 1 OF 2)
CITY OF YORBA LINDA
MATERIAL AND LABOR BOND
FOR
JANITORIAL SERVICES AT CITY FACILITIES
KNOW ALL MEN BY THESE PRESENTS that, Merchants Building Maintenance, LLC, as CONTRACTOR, and,_________________________________________________________as SURETY, are held and firmly bound unto the City of Yorba Linda, as AGENCY, in the penal sum of Two Hundred Eighty Five Thousand Seven Hundred Seventy Seven Dollars and Eighty Nine Cents ($285,770.89), which is twenty five (25%) of the total contract amount for the above stated project, for the payment of which sums, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas CONTRACTOR has been awarded and is about to enter into the annexed Contract Agreement with AGENCY for the above stated project, if CONTRACTOR or any subcontractor fails to pay for any labor or material of any kind used in the performance of the work to be done under said contract, or fails to submit amounts due under the State Unemployment Insurance Act with respect to said labor, SURETY will pay for the same in an amount not exceeding the sum set forth above, which amount shall insure to be the benefit of all persons entitled to file claims under the State Code of Civil Procedures; provided that any alterations in the work to be done, materials to be furnished, or time for completion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SURETY, and notice of said alterations is hereby waived by SURETY.
WITNESS our hands this ________ day of _____________, 2025.
CONTRACTOR (CORPORATION-TYPE)
By___________________________
President
(SEAL) By __________________________
Secretary/Treasurer
MATERIAL AND LABOR BOND | 2
MATERIAL AND LABOR BOND
(PAGE 2 OF 2)
SURETY'S NAME-TYPE
MAILING ADDRESS (SURETY)
BY:
Name
(SEAL)
Title
NOTE: SIGNATURES OF CORPORATE OFFICIALS AND SURETY MUST BE NOTARIZED, ATTACH JURAT.
BOND APPROVED AS TO FORM:
CITY ATTORNEY - CITY OF YORBA LINDA
ADMINISTRATION DEPARTMENT
DATE: MAY 6, 2025
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARK A. PULONE, CITY MANAGER
PREPARED BY: ARLENE QUINTERO, PRINCIPAL RISK AND SAFETY
ANALYST
SUBJECT: DENIAL OF CLAIM FOR DAMAGES - SANDRA TORRES, AND
SETTLEMENT AUTHORITY FOR KATHY DECKER
RECOMMENDATION
It is recommended that the City Council of the City of Yorba Linda deny the claim for damages filed by Sandra Torres and settle the claim for damages filed by Kathy Decker.
BACKGROUND
Claims for damages filed against the City are reviewed and investigated by City staff and a third-party claims administrator with George Hills Company, Inc. George Hills Company specializes in claims management and risk management services. These services are provided through the City’s contract membership in the California Insurance Pool Authority.
City staff make recommendations to the Council for settlement or denial based on the investigatory findings. A claimant’s failure to provide evidence of and/or supporting documents to substantiate the claim for damages will also result in a recommendation for denial of the claim.
DISCUSSION
The following claim for damages has been recommended for denial based on the investigations by City staff and the third-party claims administrator. Further details for each claim are available upon request.
Sandra Torres
The claimant alleges that her vehicle was damaged after driving into yellow ceramic road reflectors located in the median at 2361 La Palma Ave. Our investigation determined that the roadway condition does not constitute a dangerous condition under California Government Code Section 830(a). The claimant acknowledges driving onto the doubleyellow line, an area where vehicles are not intended to travel. The double-yellow line and raised ceramic bumps are designed to deter vehicles from entering the median, and the claimant did not exercise due care in operating her vehicle. Additionally, the City may rely
DENIAL OF CLAIM FOR DAMAGES - SANDRA TORRES, AND SETTLEMENT AUTHORITY
FOR KATHY DECKER
P a g e | 2
on design immunity under Government Code Section 830.6, as the bumps were installed according to approved plans.
Based on these findings, the third-party claims administrator and City staff recommend denying the claim.
Kathy Decker
The claimant alleges that tree roots from a City tree caused damage to her driveway at 4988 Oak Tree Court.
The City’s investigation determined that there is partial liability, as the City tree may have contributed to the driveway damage. The claimant also has a private tree in her front yard that may be a contributing factor. The homeowner purchased the home in 2019 and reported that the condition of the driveway has remained unchanged since that time. Based on this information, the City would only be responsible for a portion of the total damage. The claimant submitted four estimates ranging from $9,560.00 to $11,735.00. Considering the evidence and the City’s partial liability, the third-party administrator and City staff recommend that the City Council approve settlement authority to compensate the resident in the amount of $2,500, which represents approximately 25% of the lowest repair estimate.
The third-party administrator believes that this settlement amount fairly reflects the City’s proportional liability based on key factors from the available information.
FISCAL IMPACT
Acceptance of the Kathy Decker claim will result in a fiscal impact of $2,500.00.
ALTERNATIVES
As an alternative to staff’s recommendations for the denial of the claim, the City Council has the following options:
1. Accept liability for the claims and pay the amount specified in the claim forms.
2. Grant settlement authority up to a certain amount and direct the claims adjuster to enter into settlement negotiations with the claimants.
PLANNING COMMISSION | AGENDA ITEM SUMMARY
MEETING DATE | APRIL 23, 2025
Community Development Department
Planning Division
Community Development Director
Nate Farnsworth, AICP
4.1 APPROVAL OF APRIL 9, 2025, PLANNING COMMISSION MEETING MINUTES A motion by Commissioner Behura, second by Chair Pro Tem Masterson, to approve the minutes as mailed. The motion carried (3-0-1-1) with the following roll call vote:
AYES: Behura, Chavez Marquez, Masterson
NOES: None
ABSENT: Goldfarb
ABSTAIN: Bernstein
7.1 TENTATIVE PARCEL MAP 2024-01, CONDITIONAL USE PERMIT 2024-30 & DESIGN REVIEW 2024-11 – THE CHURCH IN YORBA LINDA
PROPERTY ADDRESS: NORTHEAST CORNER OF IMPERIAL HIGHWAY & LOS ANGELES STREET
A request to consolidate six (6) lots comprising The Church in Yorba Linda campus into a single parcel, and a request to construct and operate a 14,801 square-foot religious facility, along with parking and landscaping improvements.
A motion by Commissioner Behura, second by Chair Pro Tem Masterson to adopt Resolution No. 5632 Tentative Parcel Map 2024-01, Resolution No. 5633 Conditional Use Permit 2024-30 and by minute motion Design Review 2024-11 The Church in Yorba Linda, subject to attached conditions of approval and an additional condition that the applicant shall work with staff to provide a site feature to restrict left turns into the project driveway and right turns exiting from the project driveway. The motion carried (4-0-1) with the following roll call vote:
AYES: Bernstein, Behura, Chavez Marquez, Masterson
NOES: None
ABSENT: Goldfarb
Speakers in favor: None
Speakers in opposition: 1
8.1 APPEAL OF ACCESSORY DWELLING UNIT 2024-34 – DAVILA
PROPERTY ADDRESS: 5202 LAKEVIEW AVENUE
Pursuant to Section 18.20.880 of the Yorba Linda Municipal Code (YLMC), an appeal of the administrative denial to construct an accessory dwelling unit, in accordance with Article IX of the YLMC.
A motion by Chair Pro Tem Masterson second by Commissioner Behura to continue Appeal of Accessory Dwelling Unit 2024-34 Davila to a date uncertain. The motion carried (4-0-1) with the following roll call vote:
AYES: Bernstein, Behura, Chavez Marquez, Masterson
NOES: None
ABSENT: Goldfarb
Speakers in favor: None
Speakers in opposition: None
Adjournment: The meeting adjourned at 8:24 p.m. to the May 14, 2025, Planning Commission meeting at 6:30 p.m.
CITY CLERK'S OFFICE
DATE: MAY 6, 2025
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MARCIA BROWN, CMC, CITY CLERK
SUBJECT: COUNCIL COMMITTEE AND AGENCY REPORTS
RECOMMENDATION
It is recommended that the City Council receive and file this report.
DISCUSSION
City Council members serve on a number of outside committees and agencies. Attached are updates received recently from these agencies.
ATTACHMENTS
1. Reports from City Council Organizations, Agencies and Committees
QUARTER JAN - MAR
REPORT 2025
Presented to the Bridges at
Kraemer Place Community
Advisory Board
1 Reporting Period
Quarter: January 1, 2025– March 31, 2025
Current Fiscal Year: July 1, 2024 – March 31, 2025
Previous Fiscal Year: July 1, 2023 – June 30, 2024
Number Served
Quarter Current FY FY 2023-24
Number of Unduplicated Clients 94 506 598
Number of Exits 78 313 413
% of Service Capacity Goal (480 annual) 105% 125%
Coordinated Entry System (CES) Statistics
*CES Chart represents clients active at the end of the reporting period Bed Nights
Current FY
Total number of shelter bed nights 51,339
Number of Active Clients on Community Queue 186
% of Active Clients on Community Queue 98%
Number of Active Clients Matched to a Housing Opportunity 2 % of Active Clients Matched to a Housing Opportunity 1% Total number of unduplicated individuals served during the current fiscal year who have received Permanent Supportive Housing (PSH) or Housing Choice Voucher (HCV) through the Coordinated Entry System
19 Total number of unduplicated individuals served during the current fiscal year who have received Rapid Re-Housing (RRH) through the Coordinated Entry System 3
2 Program Exits – Summary
Quarter Current FY FY 2023-24
Positive Exits
Permanent, Temporary, Institutions except Jail/Prison
12 34 58
Negative Exits
Emergency Shelter, Streets, Jail/Prison
1 4 146
Unknown Exits
Unknown, Deceased
65 275 211
Program Exits – Destination Detail
Benchmark: 30% of clients who exit to a known destination will exit to permanent housing.
Progress toward benchmark: 79% of clients who have exited to a known destination have exited to permanent housing.
Exits to Permanent Housing Quarter Current FY FY 2023-24 9 30 44
Rental by client, no ongoing housing subsidy 0 5 5
VASH Housing Subsidy 0 5 1
Rental by client, with other ongoing housing
subsidy 0 0 1
Permanent Supportive Housing 0 5 6
Rental by client, with HCV (tenant or project
based) 5 8 26
Staying or living with family, permanent tenure 2 4 3
Staying or living with friends, permanent tenure 0 1 0
Rental by client, with RRH or equivalent subsidy 2 2 0
Other permanent housing dedicated for formerly
homeless persons 0 0 2
3 Exits to Temporary Housing Quarter Current FY FY 2023-24 3 4 9
Staying or living with family, temporary tenure 2 2 4
Staying or living with friends, temporary tenure 0 0 2
Host Home (non-crisis) 0 0 0
Transitional housing for homeless persons 1 2 0
Hotel or motel paid for without emergency shelter
voucher 0 0 3
Residential project or halfway house with no
homeless criteria 0 0 0
Exits to Institutions Quarter Current FY FY 2023-24
0 1 10
Foster care home or group foster care home 0 0 0
Psychiatric hospital or other psychiatric facility 0 0 0 Substance abuse treatment facility or detox center 0 0 1 Hospital or other residential non-psychiatric
medical facility 0 0 1
Jail, prison, or juvenile detention facility 0 1 7
Long-term care facility or nursing home 0 0 1
Exits to Homelessness Quarter Current FY FY 2023-24
1 3 139
Emergency shelter, including hotel or motel paid
for with emergency shelter voucher 0 0 8
Place not meant for habitation (e.g., a vehicle, an
abandoned building, bus, train, subway station,
airport or anywhere outside)
1 3 131
Exits to Other Destinations Quarter Current FY FY 2023-24 65 275 211
Deceased 0 2 3
Client Doesn't Know/Client Refused 10 89 1
Data Not Collected (no exit interview completed) 55 184 207 Increased Income
Quarter Current FY FY 2023-24
Participants with Increased Income
(at Annual Assessment and/or Exit) 6 18 23
4 Length of Stay – Current FY
Benchmark: National average length of stay for shelters is 151 days.
Progress toward benchmark: Bridges at Kraemer Place’s average length of stay is 189 days for the year.
Benchmark: Between July 2017 to June 2024, the average length of stay at Bridges at Kraemer Place for successful housing placement is 245 days. This includes permanent and temporary housing placements.
The average length of stay for a successful housing placement is currently: 309 days** *The chart above may include duplicate client enrollments Set Aside Beds
Beds
Available
Quarter
Average
Utilization
Mental Health Services Act (MHSA) Beds 10 97%
Law Enforcement Beds 16 69%
0 51
115
127
92 70
78 < 24 hours 1-7 days 8-30 days 31-90 days 91-180 days 181-365 days > 366 days Number of Clients
Length of Stay
5 Client Demographics – YTD
Age
Race and Ethnicity
16 87
112
120 125
46 0
20 40
60 80
100
120
140
18-24 25-34 35-44 45-54 55-64 65+
Number of Clients
Age Range
6 20
77 2
5 65
20 2
1 2
5 1
6 1
3 190
2 97
1 0 20 40 60 80 100 120 140 160 180 200
American Indian, Alaska Native, or Indigenous
Black, African American, or African
Client Doesn't Know/Prefers Not to Answer
Hispanic/Latina/e/o & American Indian, Alaska Native, or… Hispanic/Latina/e/o & Asian or Asian American
Multiracial - more than 2 races/ethnicity, with one being… Native Hawaiian or Pacific Islander
Native Hawaiian or Pacific Islander & Hispanic/Latina/e/o White & Black, African American, or African
White & Middle Eastern or North African
Number of Clients
Race
6 Gender
Veteran Status
325
178
1 2
Man Woman Non-Binary Transgender
15 491
Veteran Non-Veteran
7 Chronically Homeless
City Prior to Entry
The chart above may include duplicate client enrollments. 198
308
Chronically Homeless Non-Chronically Homeless
2 0
7 16
107
0 2
6 68
7 19
13 286
0 50 100 150 200 250 300 350
Yorba Linda
Villa Park
Stanton
Placentia
Orange
Los Alamitos
La Palma
La Habra
Fullerton
Cypress
Buena Park
Brea
Anaheim
Number of Clients
City
8 Racial Equity Analysis – YTD
Populations Served
19%
38%
1%
1%
<1%
1%
<1%
<1%
13%
<1%
15%
<1%
4%
4%
1%
20%
39%
<1%
1%
2%
<1%
<1%
1%
21%
<1%
8%
<1%
4%
2%
2%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
White & Hispanic/Latina/e/o
White
Native Hawaiian or Pacific Islander & Hispanic/ Latina/e/o Native Hawaiian or Pacific Islander
Multi-Racial & not Hispanic/ Latina/e/o
Multi-Racial & Hispanic/ Latina/e/o
Middle Eastern or North African & Hispanic/Latina/e/o
Middle Eastern or North African
Hispanic/Latina/e/o
Black, African American, or African & Hispanic/Latina/e/o Black, African American, or African
Asian or Asian American & Hispanic/Latina/e/o
Asian or Asian American
American Indian, Alaska Native, or Indigenous &
Hispanic/Latina/e/o
American Indian, Alaska Native, or Indigenous
2024 PIT (Unsheltered and Sheltered total) Racial Representation of Bridges at Kraemer Place Guests (YTD)
9 Exit Destination Type by Racial Categories compared to Racial Representation of Bridges at Kraemer Place Population
The charts below may include duplicate client exits
15%
39%
3%
3%
24%
6%
6%
19%
38%
1%
1%
<1%
1%
<1%
<1%
13%
<1%
15%
<1%
4%
4%
1%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
White & Hispanic/Latina/e/o
White
Native Hawaiian or Pacific Islander & Hispanic/ Latina/e/o Native Hawaiian or Pacific Islander
Multi-Racial & not Hispanic/ Latina/e/o
Multi-Racial & Hispanic/ Latina/e/o
Middle Eastern or North African & Hispanic/Latina/e/o
Middle Eastern or North African
Hispanic/Latina/e/o
Black, African American, or African & Hispanic/Latina/e/o Black, African American, or African
Asian or Asian American & Hispanic/Latina/e/o
Asian or Asian American
American Indian, Alaska Native, or Indigenous &…
American Indian, Alaska Native, or Indigenous
Permanent Destinations
Racial Representation of Bridges at Kraemer Place Guests (YTD) Racial Representation of Guests Exiting to Destination Type 50%
25%
25%
19%
38%
1%
1%
<1%
1%
<1%
<1%
13%
<1%
15%
<1%
4%
4%
1%
0% 10% 20% 30% 40% 50% 60%
White & Hispanic/Latina/e/o
White
Native Hawaiian or Pacific Islander & Hispanic/ Latina/e/o Native Hawaiian or Pacific Islander
Multi-Racial & not Hispanic/ Latina/e/o
Multi-Racial & Hispanic/ Latina/e/o
Middle Eastern or North African & Hispanic/Latina/e/o
Middle Eastern or North African
Hispanic/Latina/e/o
Black, African American, or African & Hispanic/Latina/e/o Black, African American, or African
Asian or Asian American & Hispanic/Latina/e/o
Asian or Asian American
American Indian, Alaska Native, or Indigenous &…
American Indian, Alaska Native, or Indigenous
Temporary Destinations
Racial Representation of Bridges at Kraemer Place Guests (YTD) Racial Representation of Guests Exiting to Destination Type
10 100%
19%
38%
1%
1%
<1%
1%
<1%
<1%
13%
<1%
15%
<1%
4%
4%
1%
0% 20% 40% 60% 80% 100% 120%
White & Hispanic/Latina/e/o
White
Native Hawaiian or Pacific Islander & Hispanic/ Latina/e/o Native Hawaiian or Pacific Islander
Multi-Racial & not Hispanic/ Latina/e/o
Multi-Racial & Hispanic/ Latina/e/o
Middle Eastern or North African & Hispanic/Latina/e/o
Middle Eastern or North African
Hispanic/Latina/e/o
Black, African American, or African & Hispanic/Latina/e/o Black, African American, or African
Asian or Asian American & Hispanic/Latina/e/o
Asian or Asian American
American Indian, Alaska Native, or Indigenous &…
American Indian, Alaska Native, or Indigenous
Homeless Destinations
Racial Representation of Bridges at Kraemer Place Guests (YTD) Racial Representation of Guests Exiting to Destination Type 21%
38%
1%
1%
1%
1%
0%
12%
0%
14%
3%
4%
1%
19%
38%
1%
1%
<1%
1%
<1%
<1%
13%
<1%
15%
<1%
4%
4%
1%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
White & Hispanic/Latina/e/o
White
Native Hawaiian or Pacific Islander & Hispanic/ Latina/e/o Native Hawaiian or Pacific Islander
Multi-Racial & not Hispanic/ Latina/e/o
Multi-Racial & Hispanic/ Latina/e/o
Middle Eastern or North African & Hispanic/Latina/e/o
Middle Eastern or North African
Hispanic/Latina/e/o
Black, African American, or African & Hispanic/Latina/e/o Black, African American, or African
Asian or Asian American & Hispanic/Latina/e/o
Asian or Asian American
American Indian, Alaska Native, or Indigenous &…
American Indian, Alaska Native, or Indigenous
Unknown Destinations
Racial Representation of Bridges at Kraemer Place Guests (YTD) Racial Representation of Guests Exiting to Destination Type
Transportation Corridor Agencies
For the April 10, 2025, Meeting
BOARD MEETING HIGHLIGHTS
F/ETCA BOARD OF DIRECTORS
Patricia Kelley, Chair,
MISSION VIEJO
Scott Voigts, Vice Chair
LAKE FOREST
Natalie Meeks,
ANAHEIM
Mike Frost,
DANA POINT
William Go,
IRVINE
Denis Bilodeau,
ORANGE
Anthony Beall,
RANCHO SANTA MARGARITA
John Taylor,
SAN JUAN CAPISTRANO
David Penaloza,
SANTA ANA
Ray Schnell,
TUSTIN
Janice Lim,
YORBA LINDA
Donald P. Wagner,
COUNTY OF ORANGE, 3RD DIST.
Doug Chaffee,
COUNTY OF ORANGE, 4TH DIST.
Katrina Foley,
COUNTY OF ORANGE, 5TH DIST.
Lan Zhou, Ex Officio Member,
CALTRANS DIST. 12
SJHTCA BOARD OF DIRECTORS
David Penaloza, Chair,
SANTA ANA
Stephanie Oddo, Vice Chair
LAGUNA NIGUEL
Richard Hurt,
ALISO VIEJO
John Stephens,
COSTA MESA
Mike Frost,
DANA POINT
William Go,
IRVINE
Erica Pezold,
LAGUNA HILLS
Cynthia Conners,
LAGUNA WOODS
Patricia Kelley,
MISSION VIEJO
Robyn Grant,
NEWPORT BEACH
John Taylor,
SAN JUAN CAPISTRANO
Donald P. Wagner,
COUNTY OF ORANGE, 3RD DIST.
Katrina Foley,
COUNTY OF ORANGE, 5TH DIST.
Lan Zhou, Ex Officio Member,
CALTRANS DIST. 12
73/133/241/261 TOLL ROADS
BOARDS ADOPT ANNUAL CAPITAL IMPROVEMENT PLAN
The Fiscal Year (FY) 2026 Capital Improvement Plan (CIP) was adopted by the San Joaquin Hills Transportation Corridor Agency (SJHTCA) and Foothill/Eastern Transportation Corridor Agency (F/ETCA) Boards of Directors. The CIP is the guiding document for the capital project delivery work performed in each fiscal year to benefit the regional transportation system and help maintain free flow conditions on The Toll Roads.
The CIP is updated annually to include changes to projects’ scope, costs and schedule, and new projects are added, as needed. The CIP continues to reflect the Boards’ prior direction for delivering three current capital projects: the 241/91 Express Connector, State Route 73 Catalina View Improvements and State Route 241 Loma Improvements. For FY26, the CIP represents an approximately $37 million investment for SJHTCA and approximately $524 million for F/ETCA in current capital projects.
Click here to view the FY26 CIP (PDF).
2025 STATE LEGISLATIVE WATCH LIST
The SJHTCA and F/ETCA Boards of Directors adopted the 2025 State Legislative Watch List.
Each year, TCA develops a state legislative watch list that focuses on priority state legislation that may have an impact on toll road operations or the Agencies’ mission. As legislation is introduced and advanced through the legislative process, TCA staff utilizes the watch list and boards approved Legislative Platform to recommend bill positions in alignment with the Agencies’ best interest.
In addition to the Boards’ adoption of the watch list, the Boards also unanimously adopted a support position for AB 390 (Wilson) which would improve highway safety by requiring drivers to “slow down and move over” for any highway maintenance or stranded vehicle displaying a hazard sign.
241/91 EXPRESS CONNECTOR ENVIRONMENTAL DOCUMENTATION
CERTIFICATION
The F/ETCA Board of Directors adopted a resolution for the revalidation of Supplemental Environmental Impact Report/ Environmental Impact Statement (EIR/EIS) for the 241/91 Express Connector Project, originally approved in 2020.
The adoption of this resolution allows the F/ETCA Board to proceed with the project, including the execution of agency agreements with project partners. TCA staff is working collaboratively with partners to finalize these agreements by mid-year, with a construction contract anticipated to be awarded by the end of 2025.
MONTHLY REPORT:
March
Monthly Year to Date (YTD) County Monthly County YTD
CONTROL
Service Requests Completed: 5 8 124 269
Mosquitoes: 3 6 90 181
Rats: 0 0 19 61
RIFA: 2 2 11 21
Number of Swimming Pools Inspected/Treated: 6 26 1,021 2,013 Hours Spent Treating/Inspecting Gutters 0 0 0 0.0
Acres of Flood Channels Treated: 0 0 0.0115 0.6489
Acres Treated for RIFA: 26 65 1,330 3,453
IT (insepction/treatment) Sites Serviced: 71 114 1,485 4,047
SURVEILLANCE
Adult Mosquitoes Collected: 0 0 1,464 2,963
Mosquito Pools (Samples) Tested: 0 0 40 121
WNV Positive Samples: 0 0 0 0
Other Positive Samples 0 0 0 0
WNV Positive Birds: 0 0 0 0
COMMUNICATIONS / OUTREACH
Outreach Events Attended: 0 0 5 5
General Presentations: 0 1 0 11
Educational Program Presentations: 0 0 17 44
Service Requests & Miscellaneous Calls Received 6 13 271 602 Fleas, Ticks, and Others Tested: - - - 1,028
Number of Disease Investigations: 0 0 2 8
WNV Investigations: 0 0 0 0
Dengue Investigations: 0 0 1 7
Typhus Investigations: 0 0 1 1
Other Investigations: 0 0 0 0
Undergrounds Storm Systems Treated: 0 0 264 899
Public Insect ID Completed: - - 46 99
COUNTY WIDE PROJECTS / INFORMATIONAL UPDATE
Yorba Linda
Normal Season (1.0 to 2.5)
ORANGE COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT
Guide to
Tariffs
How tariffs impact
the economy, markets
and investors
2 GUIDE TO TARIFFS
Tariff is a word most of us first heard in high school history class. We remember something about the Smoot-Hawley Tariff Act of 1930, the Great Depression and the dark side of protectionist trade policy.
Fast forward to today and tariffs are once again taking center stage, serving as the linchpin of President Trump’s trade policy – and as a cause of sharply rising market volatility. A fierce debate has emerged over the impact they could have on the global economy.
Critics argue these tariffs mark the start of a new trade war that will hurt all countries in the end. Supporters say it’s an attempt by the U.S. to reduce long-term trade deficits and compel other countries to lower their own protectionist measures. In either case, the rewiring of global trade reflects a larger shift in the geopolitical world order that is, in our view, just beginning.
To help make sense of it all, we developed this guide to tariffs and their potential implications for the economy, markets and investors.
1. What are tariffs and how are they used?
2. Why is the U.S. trade deficit so high?
3. Do tariffs cause inflation?
4. What is trade reciprocity and how will it unfold?
5. How do tariffs affect the stock market?
Jared Franz
is an economist with 19 years of
investment industry experience.*
He holds a PhD in economics
from the University of Illinois
at Chicago and a bachelor’s
degree in mathematics from
Northwestern University.
Robert Lind
is an economist with 37 years of
investment industry experience.
He holds a bachelor’s degree in
philosophy, politics and economics
from Oxford University.
*Years of experience for all investment
professionals are as of December 31, 2024.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
GUIDE TO TARIFFS 3
1 What are tariffs and how are they used?
Tariffs are essentially taxes on goods imported from other countries. They are used to help protect domestic producers from foreign competition, among other purposes.
We identified four motivations for tariffs and what they could mean for the investment environment: Decoupling, rebalancing, negotiating and funding. For instance, tariffs used for negotiating purposes are unlikely to persist while those that are part of a larger decoupling process could be here to stay.
Our base case is that the United States can weather changes to trade policies, though higher tariffs would likely dampen economic activity and raise import prices. The U.S. has the advantages of size, economic resilience and consumers with money to spend.
Businesses have also ramped up investments in the U.S., both domestically and abroad from companies eager to maintain access to the world’s largest economy.
However, the ambiguity caused by shifting trade policies is already affecting business and consumer confidence, with potential negative consequences for the U.S. economy and markets.
The fallout for other countries also remains uncertain, particularly those that rely heavily on the U.S. for trade, such as Mexico and Canada, where exports to the U.S. account for around 20% to 25% of GDP. For most European economies, exports to the U.S. make up approximately 2% to 3% of their GDP. If the U.S. imposes tariffs, resulting in lower exports and economic growth for these countries, then we are likely to see looser macroeconomic policy to counter the negative effects. Germany, for example, has relaxed its fiscal policy dramatically and laid out plans to increase spending for infrastructure and defense, in part to reduce reliance on exports for growth.
Decoding tariffs: Motivations and implications
Decoupling: Shift supply chains and
reduce reliance on certain countries
Potential impacts
High, persistent
Countries: China
Industries: Tech, energy,
industrial materials, pharma,
biotech, aircraft
Rebalancing: Reduce trade deficits
and boost domestic production
Potential impacts
Medium, persistent, mixed
Countries: China, EU, Japan,
South Korea, Vietnam, India,
Mexico, Canada, Brazil
Industries: Autos, steel,
aluminum, agriculture, food,
chemicals, consumer
electronics, pharma, luxury,
defense, energy, oil
Negotiating: Use economic
pressure to achieve policy outcomes
Potential impacts
Low, temporary
Countries: China, Mexico,
Canada, EU, Japan, Latin
America
Industries: Autos, steel,
agriculture, consumer
electronics, construction
machinery, minerals, defense,
energy, semiconductor
equipment
Funding: Generate revenue to fund
budget priorities
Potential impacts
High, persistent
Countries: May be a broadly
applied universal tariff
Industries: Consumer goods,
autos, industrials; price effects
and margin pressure across
industries
Sources: Capital Group, American Compass. As of March 5, 2025.
4 GUIDE TO TARIFFS
2 Why is the U.S. trade deficit so high?
If there’s one number to know about tariffs, it’s the U.S. trade deficit for goods. That figure hit $1.1 trillion in 2024 as Americans bought imported products and a strong U.S. dollar weighed on exports. The U.S. has run a trade deficit every year since the 1970s.
Economists note the high trade deficit may be a sign of U.S. economic strength — indicating consumers are buying — but the figure is nonetheless why tariffs are central to Trump’s economic agenda. Other countries rely on global trade far more than the United States, and the administration aims to leverage America’s economic position as a tool to achieve a more balanced relationship with its trading partners.
Still, the U.S. runs the world’s largest current account deficit, which is the counterpart of huge foreign capital inflows into the U.S. If the U.S. wants to reduce its deficit, it will likely mean smaller capital inflows and a weaker dollar.
Trump’s novel use of emergency orders to implement or remove tariffs has unnerved markets. Prior administrations have used tariffs to varying degrees, but under laws that required detailed analysis, which allowed more time for companies and stakeholders to respond. Whatever the method, tariffs may represent a pivot to an isolationist-leaning policy that could have long-term ramifications for investment portfolios.
The U.S. trade deficit approached the record high in 2024 Total U.S. goods trade deficit
USD billions
Top U.S. trade deficits
in 2024 by country
1,200
1,000
800
600
400
200
0 1974 1984 1994 2004 2014 2024
285
226
174
137
118
73 70
63 China
European
Union
Mexico
All others
Vietnam
Canada
Japan
South Korea
Sources: Capital Group, Bureau of Economic Analysis. Figures reflect 12-month totals through September of each year. As of September 30, 2024.
GUIDE TO TARIFFS 5
3 Do tariffs cause inflation?
The short answer is yes, but how it plays out is more complex.
In the event of a one-time tariff, prices would likely increase modestly but then even out over time. A more worrisome development is a trade war scenario, where tariffs ratchet up year to year. That, in turn, could lead to higher long-term inflation with a knock-on effect of rising interest rates.
Economists agree the cost of tariffs is largely paid for by a combination of consumers and companies willing to accept lower profit margins to sell products.
A common estimate is that 30% to 50% of the cost is passed on to consumers.
Recent research has shown that the 2018–2019 tariffs were mostly passed on to U.S. consumers.
Trump’s decision to impose tariffs on imported washing machines, but not dryers, in January 2018, is an often-cited case study from the University of Chicago and the Federal Reserve. The study found domestic U.S. manufacturers raised prices to match competitors, despite not being tariffed. Moreover, prices of dryers also increased as manufacturers may have used tariffs to raise prices opportunistically or split the increases between the washers and dryers.
The value of the U.S. dollar has also changed in reaction to tariff headlines. Higher tariffs generally lead to a stronger dollar since they lower demand for imports priced in foreign currency. Conversely, limiting tariffs lowers the dollar’s value as demand for foreign currency increases. A strong dollar could help offset some tariff-related costs for consumers, similar to the way U.S. tourists benefit from a strong dollar when traveling abroad.
Cumulative inflation in household appliances: Retailers vs. consumers Home appliance prices rose then stabilized during Trump’s first term Consumer price change
-5
0 5
10 15
20%
Jan '17 Jul '17 Jan '18 Jul '18 Jan '19 Jul '19
Tariffs on
washing machines
Phase 1 broad tariffs
on Chinese imports
Sources: Capital Group, Bureau of Labor Statistics. Retailer price change is represented by the Producer Price Index (PPI) retail trade for the major appliances subcategory. The PPI measures the average change over time in the selling prices received by domestic producers for their output. Consumer price change is represented by the Consumer Price Index for major appliances subcategory. As of December 15, 2019.
Retailer price change
6 GUIDE TO TARIFFS
4 What is trade reciprocity and how will it unfold?
At face value, the concept of trade reciprocity is simple: We charge you the same tariffs that you charge us.
The Trump administration aims to rebalance tariffs between the U.S. and other countries to make them reciprocal. Such a move bucks 75 years of multilateral U.S. trade policy and sidesteps rules of the World Trade Organization, the successor to the General Agreement on Tariffs and Trade of 1947.
This change in strategy is happening because the U.S. administration believes the balance has tipped too far as key American industries face steep barriers to selling their products abroad. Take cars, for example. The EU currently imposes a 10% tariff on U.S. cars sold in their markets compared to the 2.5% rate imposed by the U.S. on imported European autos.
It’s unclear whether Trump’s definition of reciprocity would include value-added tax (VAT) rates charged by many countries on domestic purchases. Many economists argue that VATs aren’t taxes on imports, so they aren’t the equivalent of tariffs.
Tariffs on major trading partners such as China, the EU, Canada and Mexico could reduce U.S. trade deficits and boost domestic production by giving local firms an edge over imports.
They could also invite retaliation, such as Canada’s removal of U.S. liquor from its shelves. China could ban critical mineral exports to the U.S., decrease purchases of airplanes and agriculture products, and increase investigations of U.S.-based companies with exposure to China, including Apple, Starbucks and Tesla.
U.S. trade barriers are uneven with many economies
12.5 1.7
1.9 0.4
0.5 6.1
3.2 1.7
1.7 13.7
Country
China
Germany
Japan1
Vietnam
Taiwan
Ireland
India2
Italy
United
Kingdom
Switzerland
20.0 3.3
3.3 3.3
3.3 3.3
3.3 3.3
3.3 3.3
7.5 5.0
3.7 9.4
6.5 5.0
17.0 5.0
3.8 5.2
6-13
19 10
10 5
23 5-28
22 20
8.1 Avg. U.S. tariff
(%) on goods
Avg. tariff (%)
on U.S. goods Tariff gap (%) VAT rate(%)
Sources: Capital Group, PWC, Census Bureau, World Trade Organization (WTO). Average tariff rates reflect average Most Favored Nation (MFN) applied rate based on 2023 figures from the WTO, except where noted below. Canada, Mexico and South Korea have free trade agreements with the U.S. and are excluded from this list. China’s average tariff rate on U.S. goods above does not include retailiatory tariffs. VAT refers to value-added tax. 1Consumption tax; 2 Goods and Service Tax (GST). Bars that extend to the right in the “tariff gap” column indicate tariff gaps that are more preferential to the U.S.; bars that extend to the left indicate the opposite. As of March 10, 2025.
GUIDE TO TARIFFS 7
5 How do tariffs affect the stock market?
Investors may be experiencing déjà vu as tariffs make headlines. The first Trump administration’s tariffs on China sparked a trade war that whipsawed markets and dominated the news, much like now.
How did markets respond? Volatility rose in 2018, driven by the trade war and a slowdown in China’s economy, causing the S&P 500 Index to fall 4.4%. But the index recovered sharply in 2019, up 31.1%, as trade deals were announced, and consumer spending remained steady. In both years, inflation was muted in the aggregate, with the annual consumer price index ranging from 1.50% to 2.85%.
The world has changed since that initial round of tariffs. The impacts of the pandemic, wars in Ukraine and the Middle East, and the greatest inflation shock in decades continue to ripple through the economy. How tariffs and federal spending cuts will affect growth is even more uncertain given the evolving nature of Trump’s policies.
The lesson may be that in times like these, it’s important to be clear about what we do and don’t know — recognizing that tariffs are just one part of the equation. Ultimately, the U.S. stock market has proven to be remarkably resilient over time. Focusing on investment principles such as diversification and staying invested in the face of market volatility become more essential to achieving long-term investment goals.
Markets recovered from trade uncertainty during Trump’s first term Value of $1k initial investment in S&P 500
12/14/18: Weak economic
data in China stokes fears
of global slowdown
1/31/19: Strong earnings
results, signs of easing
monetary and trade
policies catapult stocks
1/22/18: U.S. imposes
tariffs on solar panels
and washing machines
3/23/18: Broad
tariffs on steel
and aluminum
6/1/18: U.S. ends tariff
exemptions for EU,
Canada and Mexico
7/6/18: Start of trade
war as China hits back
9/24/18: U.S./China
trade war heats up
5/17/19: U.S. lifts
tariffs on Canada
and Mexico
5/30 - 6/7/19: U.S.
applies tariffs on Mexico
to deter migrants, then
calls them off
8/1/19: U.S.
announces tariffs on
almost all remaining
Chinese imports
12/13/19: Trump
calls off December
tariffs in anticipation
of China deal
850
900
950
1,000
1,050
1,100
1,150
1,200
1,250
Tariffs and a China slowdown hit markets in 2018 ... ... but stocks recovered in 2019 to reach new highs. 2018: -4.4% 2019: +31.1%
Sources: Capital Group, Bureau of Labor Statistics, Peterson Institute for International Economics, Standard & Poor’s. Value of a hypothetical investment in the S&P 500 reflects the total return of the index over the period from January 1, 2018, to December 31, 2019. Past results are not predictive of future performance. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
Key takeaways
• Tariffs are used to help protect domestic industries, among other purposes.
It’s important to understand the four motivations for tariffs: Decoupling, rebalancing, negotiation and funding.
• Trump aims to lower the U.S. trade deficit, which is near the record high.
The U.S. administration seeks to leverage America’s economic position for a more balanced trade relationship.
• Tariffs raise prices initially, but the overall impact to inflation is complex.
Price increases tend to stabilize after the initial increase, unless an ongoing trade war erupts.
• The administration plans to adjust trade barriers to make them reciprocal.
Similar tariff rates between countries can benefit domestic companies but could trigger retaliatory actions.
• Tariffs can increase volatility, but markets have shown resilience over time.
During Trump’s first term, tariffs caused volatility in 2018, but markets surged in 2019.
Voted #1
for thought leadership by advisors since 2019*
2019 2020 2021 2023 2024
*Source: Marketing Support: The Advisor View, June 2024, May 2023, July 2021, June 2020; Fund Intelligence, February 2020. FUSE Research surveys of 500-1,000 advisors identifying the “most-read thought leaders.” Survey was not conducted in 2022.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
The S&P 500 (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2025 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Capital Client Group, Inc.
Lit. No. MFGEBR-406-0425P Printed in USA CGD/TM/10623-S105304 ©2025 Capital Group. All rights reserved. Page 297 of 441
PUBLIC WORKS DEPARTMENT
DATE: MAY 6, 2025
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JAMIE LAI, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER PREPARED BY: JESSE GUTIERREZ, ASSESSMENT DISTRICT
MANAGER
SUBJECT: APPROVAL OF ENGINEER’S REPORT AND DECLARATION OF INTENT
TO LEVY AND COLLECT ASSESSMENTS WITHIN THE CITYWIDE LMAD FOR FY 2025/26, RESOLUTION NOS. 2025-5936 AND 2025-5937 AND
SETTING A PUBLIC HEARING DATE CONCERNING THE LEVY OF
ASSESSMENTS
RECOMMENDATION
It is recommended that the City Council: 1.) Adopt proposed Resolution No. 2025-5936, approving the Engineer’s Report regarding the levy of an annual assessment within the City of Yorba Linda Street Lighting and Landscaping Maintenance Assessment District (LMAD) for Fiscal Year 2025/2026; and 2.) Adopt proposed Resolution No. 2025-5937, declaring its intention to levy and collect assessments within the City of Yorba Linda Street Lighting and Landscaping Maintenance Assessment District (LMAD) for Fiscal Year 2025/2026, and setting a time and place for a public hearing concerning the levy of annual assessments.
BACKGROUND
The City’s Street Lighting and Landscaping Maintenance Assessment District (LMAD) was formed pursuant to the Landscaping and Lighting Act of 1972 (“1972 Act”), which is included in the State of California Streets and Highways Code Division 15, Part 2, and is annually levied in compliance with the provisions of the California Constitution, Article XIII D (commonly referred to as Proposition 218).
Although consolidated into a single assessment district, the LMAD is comprised of various traffic signals, lighting, and landscaping benefit zones, which address the variations in the nature, location, and the extent of the improvements that provide special benefits to parcels in the LMAD. Within the boundaries of the LMAD, parcels are assigned to various Zones, each of which is associated with a set of improvements and/or type of improvements that provide special benefit to properties within that zone.
DISCUSSION
The annual Engineer's Report (the "Report") has been prepared pursuant to Chapter 1,
A P P R O V A L O F E N G I N E E R ’ S R E P O R T A N D D E C L A R A T I O N O F
I N T E N T T O L E V Y A N D C O L L E C T A S S E S S M E N T S W I T H I N T H E
C I T Y W I D E Y O R B A L I N D A L I G H T I N G A N D L A N D S C A P I N G
M A I N T E N A N C E A S S E S S M E N T D I S T R I C T F O R F I S C A L Y E A R 2 0 2 5 / 2 0 2 6 , R E S O L U T I O N N O S . 2 0 2 5 - 5 9 3 6 A N D 2 0 2 5 - 5 9 3 7 A N D
S E T T I N G A P U B L I C H E A R I N G D A T E C O N C E R N I N G T H E L E V Y O F
A S S E S S M E N T S
P a g e | 2
Article 4 and Chapter 3 of the 1972 Act, and presented to the City Council for their consideration and approval of the proposed improvements and services to be provided within the District and the levy and collection of annual assessments related thereto for Fiscal Year 2025/2026. The Report outlines the District Zone structure, the improvements, and the proposed assessments to be levied in connection with the benefits the properties will receive from the maintenance and servicing of the district improvements for Fiscal Year 2025/2026. The annual assessments to be levied on properties within the District provide a funding source for the continued operation and maintenance of landscaping and lighting improvements within various zones of benefit that provide special benefits to the properties within the District and each respective Zone. Each fiscal year, the City establishes the District's assessments based on an estimate of the costs to maintain, operate and service the improvements and based upon available revenues including fund balances, general benefit contributions and additional City contributions and assessment limits. The costs of the improvements and the proposed annual assessments budgeted and assessed against properties within the District may include, but are not limited to, the estimated expenditures for regular annual maintenance and repairs; incidental expenditures related to the operation and administration of the District; deficits or surpluses from prior years; revenues from other sources; and the collection of funds for operational reserves or for periodic maintenance and improvement rehabilitation projects as authorized by the 1972 Act. Each parcel is assessed proportionately for only those improvements, services, and expenses for which the parcel will receive special benefit.
Each Zone outlined in this Report reflects the various improvements and the types of improvements and services to be provided by the District for the properties that are directly associated with and benefit from those improvements. The net special benefit cost of providing improvements and services is allocated to the benefiting properties within each Zone using a weighted method of apportionment (refer to Assessment Methodology in Section Il, Method of Apportionment in this Report) that calculates the proportional special benefit and assessment for each parcel as compared to other properties that benefit from the District improvements and services.
For Fiscal Year 2025/2026, as part of the ongoing annual review of the improvements associated with each zone, and to ensure consistency throughout the District, the Engineer’s Report reflects some updates to the diagrams presented in “Part V- Assessment Diagrams”, and square footages discussed in the improvement descriptions in “Part I - Plans and Specifications” which more accurately depict the landscaping areas maintained by the LMAD.
District changes for Fiscal Year 2025/2026 are limited primarily to less significant modifications for the upcoming fiscal year that involve minor updates to the maintained improvement areas previously depicted in the Fiscal Year 2024/2025 Engineer's Report.
Specifically, these minor adjustments to the Assessment Diagrams, acreages and improvement descriptions for Local Landscaping Zones: L-1B, L-2A, L-2Q, L-2I, L-2K, L-2O,
A P P R O V A L O F E N G I N E E R ’ S R E P O R T A N D D E C L A R A T I O N O F
I N T E N T T O L E V Y A N D C O L L E C T A S S E S S M E N T S W I T H I N T H E
C I T Y W I D E Y O R B A L I N D A L I G H T I N G A N D L A N D S C A P I N G
M A I N T E N A N C E A S S E S S M E N T D I S T R I C T F O R F I S C A L Y E A R 2 0 2 5 / 2 0 2 6 , R E S O L U T I O N N O S . 2 0 2 5 - 5 9 3 6 A N D 2 0 2 5 - 5 9 3 7 A N D
S E T T I N G A P U B L I C H E A R I N G D A T E C O N C E R N I N G T H E L E V Y O F
A S S E S S M E N T S
P a g e | 3
L-2P, and L-2S are detailed in the Introduction section of the attached Engineer’s Report.
At a noticed annual Public Hearing, the City Council will accept all public comments and written protests regarding the District and the annual levy of assessments. Based on those public comments and written protests, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report and confirmation of the assessments, the City Council will, by resolution, order the improvements to be made and confirm the levy and collection of assessments pursuant to the 1972 Act. The assessments as approved will be submitted to the Orange County Auditor/Controller to be included on the property tax roll for each parcel.
FISCAL IMPACT
As identified in the Engineer's Report, the total estimated annual LMAD assessments for Fiscal Year 2025/2026 amount to $10,195,801.00. The General Benefit portion that the City must pay from the General Fund has been calculated to be $1,344,182.00 This amount has been budgeted as a transfer from the General Fund to the LMAD Fund, less a partially offsetting credit for a portion of the ad valorem property tax revenue collected in local landscaping zones L-4A and L-4B, the arterial landscaping zones, and the lighting and traffic signal zones. The net transfer from the General Fund is projected to be $1,039,509.00 which has been included in the proposed General Fund budget for Fiscal Year 2025/2026. It should also be noted that a General Fund contribution for the City's arterial landscaping zones is included within the net transfer figure above. Per the Council's previous direction, any difference between the assessment revenues available in the arterial zones and the cost of maintaining those areas is funded by the General Fund. No General Fund contributions are projected to be required in Fiscal Year 2025/2026 for the lighting and traffic signal zones, where assessment and ad valorem revenues are sufficient to fully cover the maintenance and operation costs. Transfer amounts noted above will be adjusted at the end of the fiscal year based on actual ad valorem property tax revenue received during Fiscal Year 2025/2026.
Staff have completed a preliminary analysis of the current fiscal condition of the local landscaping zones based on the Fiscal Year 2025/2026 Engineer's Report. This analysis has confirmed that there are no local landscaping zones in which assessments and/or fund balance on hand are likely to be insufficient to cover the cost of providing maintenance services. Therefore, there is no projected or required budgeted General Fund subsidy for the local landscaping zones. Given cost increases for a variety of budget inputs throughout the District, along with potential future cost escalation factors for contractual labor, staff are closely monitoring several Local and Arterial Landscaping Zones that are not collecting at full capital improvement and reserve fund ratios.
Local Landscape Zone L-1A continues to have budgeted expenditures exceeding projected available revenues. Staff and consultants have closely monitored the budget and
A P P R O V A L O F E N G I N E E R ’ S R E P O R T A N D D E C L A R A T I O N O F
I N T E N T T O L E V Y A N D C O L L E C T A S S E S S M E N T S W I T H I N T H E
C I T Y W I D E Y O R B A L I N D A L I G H T I N G A N D L A N D S C A P I N G
M A I N T E N A N C E A S S E S S M E N T D I S T R I C T F O R F I S C A L Y E A R 2 0 2 5 / 2 0 2 6 , R E S O L U T I O N N O S . 2 0 2 5 - 5 9 3 6 A N D 2 0 2 5 - 5 9 3 7 A N D
S E T T I N G A P U B L I C H E A R I N G D A T E C O N C E R N I N G T H E L E V Y O F
A S S E S S M E N T S
P a g e | 4
expenditures for this zone over the past fiscal year. Based on the prior projection that a Proposition 218 effort would be required, staff has initiated efforts with a community leader to initiate the petition process, budget forecasting, and development of potential budgetary “options”. These options will be updated with the new Fiscal Year 2025/2026 Engineer’s Focused Report cost figures, before being redistributed to the zone’s property owners as a part of ongoing community outreach. During the prior round of community engagement, a potential lead petitioner was identified, who will begin outreach later this year. It is anticipated that the latter stages of Proposition 218 process (which would include the critical property owner petition phase) will be undertaken for L-1A during this next year for incorporation and implementation for Fiscal Year 2026/2027.
NEXT STEPS
The proposed action items for Council are to adopt the proposed two resolutions (Attachments 1 and 2) which approve the Fiscal Year 2025/2026 Engineer's Report and declare the City's intention to levy and collect assessments and set a Public Hearing to confirm the assessments. At the proposed Public Hearing on June 3, 2025, any public comments and written protests regarding the District and the annual levy of assessments may be heard. The time period between approval of the Engineer’s report and the Public Hearing allows two weeks for public review. Based upon those public comments and written protests, the City Council may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report and confirmation of the assessments, the Council may, by resolution, order improvements to be made, and confirm the levy and collection of assessments pursuant to the 1972 Act. The assessments, as approved, will be submitted to the Orange County Auditor/Controller by August 08, 2025, to be included on the property tax roll for each parcel.
ALTERNATIVES
Do not approve the Engineer's Report as presented and the Declaration of Intent to Levy and Collect Assessments and direct staff to make changes to the Report. If an Engineer's Report is not approved in time, this may not allow the collection of assessment proceeds for Fiscal Year 2025/2026 to contribute towards the higher cost of maintaining streetlights and landscaping.
ATTACHMENTS
Attachment 1 - Resolution No. 2025-5936 — Approval of the Engineer's Annual Report (Fiscal Year 2025/2026)
Attachment 2 - Resolution No. 2025-5937 — Intent to Levy Assessments and Setting of Public Hearing Date
Attachment 3 – Fiscal Year 2025/2026 Engineer’s Report
RESOLUTION NO. 2025-5936
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
YORBA LINDA, APPROVING THE ENGINEER'S REPORT
REGARDING THE LEVY OF AN ANNUAL ASSESSMENT
WITH THE CITY OF YORBA LINDA STREET LIGHTING
AND LANDSCAPING MAINTENANCE ASSESSMENT
DISTRICT FOR 2025/2026 FISCAL YEAR
WHEREAS, the City Council of the City of Yorba Linda, California has adopted Resolution No. 2025-5933, pursuant to Chapter 3 of Part 2 of Division 15 of the Streets and Highway Code of the State of California relative to Yorba Linda Street Lighting and Landscaping Maintenance District, initiating proceedings to levy and collect annual assessments and ordering the City Engineer to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of said Code; and WHEREAS, the City Engineer has prepared and filed with the City Clerk a report, and the City Clerk has presented such report for the City of Yorba Linda Street Lighting and Landscaping Maintenance District for Fiscal Year 2025/2026; and WHEREAS, City Council has examined and reviewed said report.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yorba Linda as follows:
Section 1. Incorporation of Recitals. The foregoing recitals are incorporated herein by this reference.
Section 2. Approval of Report. The Report, including plans and specifications for the improvements and the estimate of the costs of the improvements, a diagram for the district and an assessment for the costs of the improvements, is hereby approved as filed.
Section 3. Capital Improvement Plan. In accordance with Streets and Highways Code Section 22660(a), the City Council has determined that the estimated cost of certain proposed improvements, described in Section 22525, subdivisions (a) through (d), are greater than can conveniently be raised from a single assessment and, as a result, shall be collected in installments over a period not to exceed five fiscal years and held in a reserve account, as noted in the Engineer's Report. General descriptions of these improvements for all Zones and sub-zones in the District, as well as the estimated costs thereof, the number of annual installments and years during which they are to be collected, and the maximum amount of each annual installment, are described in the City’s LMAD Capital Improvement Plan, attached hereto as Attachment “A”. Improvements may generally include, but are not limited to, irrigation/smart controllers, fence rehabilitation, trail surface, landscape renovation/drought tolerant upgrades, drains/drainage, median
RESOLUTION NO. 202 5 - 5936
PAGE 2
renovation, and electrical upgrades. The projects will be adjusted as necessary to avoid deficit spending should the Engineer's Report be approved.
Section 4. Prior Approvals for Fiscal Year 2025/2026 Engineer's Report. To the extent anything herein differs or is otherwise inconsistent with the City's prior action with respect to the approval of the Fiscal Year 2025/2026 Engineer's Report for prior individual Zone proceedings and/or the levy of assessments for prior individual Zone proceedings, this Resolution shall prevail as to any such inconsistencies.
Section 5. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Resolution and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional. Additionally, if any section, subsection, sentence, clause, phrase, portion, zone, or sub-zone of the Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or unconstitutional.
Section 6. EFFECTIVE DATE. This Resolution shall become effective upon its adoption.
RESOLUTION NO. 202 5 - 5936
PAGE 3
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 6TH day of May, 2025.
JANICE LIM, MAYOR
CITY OF YORBA LINDA
ATTEST
MARCIA BROWN, CITY CLERK
CITY OF YORBA LINDA
APPROVED AS TO FORM
RUTAN & TUCKER LLP
CITY ATTORNEY
STATE OF CALIFORNIA )
ss.
COUNTY OF ORANGE )
l, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 6TH day of May, 2025, and was carried by the following roll call vote:
AYES: COUNCILMEMBERS.
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERSMARCIA BROWN, CITY CLERK
CITY OF YORBA LINDA
RESOLUTION NO. 2025-5937
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
YORBA LINDA, PURSUANT TO THE PROVISIONS OF THE
LANDSCAPING AND LIGHTING ACT OF 1972,
DECLARING ITS INTENTION TO LEVY AND COLLECT
ASSESSMENTS WITHIN THE CITY OF YORBA LINDA
STREET LIGHTING AND LANDSCAPING MAINTENANCE
ASSESSMENT DISTRICT FOR FISCAL YEAR 2025/2026,
AND SETTING A TIME AND PLACE FOR A PUBLIC
HEARING CONCERNING THE LEVY OF ANNUAL
ASSESSMENTS
WHEREAS, there currently exists in the City of Yorba Linda an assessment district known as the Yorba Linda Lighting and Landscaping Maintenance District ("District"); and WHEREAS, by Resolution No. 2025-5933, the City Council of the City of Yorba Linda initiated proceedings to levy and collect annual assessments in the District, and ordered the City Engineer to prepare the report required by California Streets and Highways Code, pursuant to the provisions of the Landscaping and Lighting Act of 1972; and
WHEREAS, by accompanying Resolution No. 2025-5936, the City Engineer's report has been approved by the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yorba Linda as follows:
Section 1. The foregoing recitals are incorporated herein by this reference Section 2. Pursuant to Streets and Highways Code Section 22624, the City Council hereby finds and declares that the public interest and necessity require the maintenance and servicing of landscaping and public lighting facilities in the City, and the City Council hereby declares its intention to levy and collect assessments within the Yorba Linda Lighting and Landscaping Maintenance Assessment District for Fiscal Year 2025/2026.
Under said Act, before levying and collecting assessments in the assessment district, the City Council is required to adopt a resolution declaring its intention to do so.
Section 3. The existing improvements in the District are generally described as the construction, installation, operation, servicing, and maintenance of the landscaping of green belts, multi-purpose trails, median islands, parks, and slopes adjacent to public rights-of-way; and the servicing, maintenance, and operation of public street lighting and traffic signal facilities within the Assessment District.
Section 4. The Yorba Linda Lighting and Landscaping Maintenance District is Citywide, and the boundaries of the District are coterminous with the present boundaries of the City.
RESOLUTION NO. 2025 - 5937
PAGE 2
Section 5. Reference is hereby made to the Report of the City Engineer on file with the City Clerk for the Fiscal Year 2025/2026 (the "Engineer's Report"), which contains a full description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.
Section 6. An assessment will be levied pursuant to said Act upon all property in the City of Yorba Linda Street Lighting and Landscaping Maintenance Assessment District for Fiscal Year 2025/2026, subject to an assessment under said Act, as described in the Engineer's Report. Parcels within the District that are owned or used by any county, city, special district or other agency shall be assessed unless the City demonstrates by clear and convincing evidence that such lots or parcels receive no special benefit from proposed improvements. The District does not propose an increase in any applicable rate, nor does it propose a revision in methodology for the Fiscal Year 2025/2026 by which the assessment is calculated or to exceed an assessment formula or range, from that approved in the votes by the owners of parcels impacted in the assessment ballot proceeding for Fiscal Year 1997/1998, the ballot proceeding for the Fiscal Year 2003/2004 or any prior or subsequent individual zone proceedings, respectively. Per approval of the voters, an increase in the per-parcel assessment based on CPI or any other approved factor(s) will be levied during the Fiscal Year 2025/2026.
Government Code Section 53750(h)(1) provides that for purposes of Article XIIIC and XIIID of the California Constitution an assessment is "increased" if the District increases any applicable rate used to calculate the assessment or revises the methodology by which the assessment is calculated if that revision in methodology results in an increased amount being levied on any person or parcel. Government Code Section 54954.6(a)(1)(D) similarly provides that an "increased assessment" does not include an assessment that does not exceed an assessment formula or range previously adopted by the voters in the area where the assessment is imposed. The District does not propose an increase in any applicable rate, nor does it propose a revision in methodology for the Fiscal Year 2025/2026 by which the assessment is calculated or to exceed an assessment formula or range, from that approved in the votes by the owners of parcels impacted in the assessment ballot proceeding for Fiscal Year 1997/1998, the ballot proceeding conducted for the Fiscal Year 2003/2004 or any prior or subsequent individual zone proceeding, respectively. Therefore, pursuant to the foregoing definitions applicable to the proposed Fiscal Year 2025/2026 Citywide Yorba Linda Lighting and Landscaping Maintenance Assessment District assessment under the California Constitution and California statutory laws, there is no increase in the proposed Fiscal Year 2025/2026 assessments from the assessments imposed for Fiscal Year 2025/2026. The dollar amount of the assessment for some parcels may increase from prior years due to a change in use or other factor not related to the applicable rate, calculation methodology, assessment formula, or range previously approved in the above-referenced assessment ballot proceedings.
Section 7. Notice is hereby given that on Tuesday, June 3, 2025, at 6:30 p.m., in the City Council Chambers at 4845 Casa Loma Avenue, Yorba Linda, at a Regular Meeting of the City Council, the City Council will hold a Public Hearing to consider all oral statements and all written protests and communication made or filed by any interested person
RESOLUTION NO. 2025 - 5937
PAGE 3
concerning the annual assessments for Fiscal Year 2025/2026 for the Yorba Linda Lighting and Landscaping Maintenance Assessment District.
Section 8. The City Clerk is hereby directed to give Notice of the Public Hearing referred to in Section 7 of this Resolution in accordance with applicable law.
Section 9. To the extent anything herein differs or is otherwise inconsistent with the City's prior action with respect to the approval of any individual Zone proceedings, and/or the levy of assessments for any individual Zone proceedings, this Resolution shall prevail as to any such inconsistencies.
Section 10. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Resolution and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional. Additionally, if any section, subsection, sentence, clause, phrase, portion, zone, or subzone of the Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, portions, zones, or sub-zones might subsequently be declared invalid or unconstitutional.
Section 11. This Resolution shall become effective upon its adoption
RESOLUTION NO. 2025 - 5937
PAGE 4
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Yorba Linda on this 6th day of May, 2025.
JANICE LIM, MAYOR
CITY OF YORBA LINDA
ATTEST
MARCIA BROWN, CITY CLERK
CITY OF YORBA LINDA
APPROVED AS TO FORM
RUTAN & TUCKER LLP
CITY ATTORNEY
RESOLUTION NO. 2025 - 5937
PAGE 5
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
l, MARCIA BROWN, City Clerk of the City of Yorba Linda, California, DO HEREBY CERTIFY that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Yorba Linda held on the 6TH day of May, 2025, and was carried by the following roll call vote:
AYES: COUNCILMEMBERS.
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS.
MARCIA BROWN, CITY CLERK
CITY OF YORBA LINDA
City of Yorba Linda
Street Lighting and Landscaping
Maintenance District
Annual Engineer’s Report
Fiscal Year 2025/2026
Intent Meeting: May 06, 2025
Public Hearing: June 03, 2025
APRIL 2025
PREPARED BY
WILLDAN FINANCIAL SERVICES
27368 Via Industria
Suite 200
Temecula, CA 92590
T. 951.587.3500|800.755.6864
F. 951.587.3510|888.326.6864
Property Tax Information Line
T.866.807.6864
www.willdan.com Page 311 of 441
ENGINEER'S REPORT AFFIDAVIT
City of Yorba Linda
Street Lighting and Landscaping Maintenance District
For
Fiscal Year 2025/2026
City of Yorba Linda,
County of Orange, State of California
This Report and the enclosed descriptions, budgets and diagram outline the proposed improvements and assessments for the Street Lighting and Landscaping Maintenance District in the City of Yorba Linda for fiscal year 2025/2026, which includes each lot, parcel, and subdivision of land within said District, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Orange County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council.
Dated this ____________ day of ______________, 2025.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Yorba Linda
By: ________________________________
Jim McGuire
Principal Consultant, Project Manager
By: ________________________________
Tyrone Peter
PE # C 81888