CL_AGN_230313_CC_AgendaPacket_F_A1.CALL TO ORDER
2.ROLL CALL
3.PLEDGE OF ALLEGIANCE
4.PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS
5.APPROVE ORDER OF THE AGENDA
This is the appropriate time for the Mayor or Councilmembers to approve the agenda as is or reorder.
6.BLUE FOLDER ITEMS (SUPPLEMENTAL)
Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted
agenda packet, and/or public comments received after the printing and distribution of the agenda packet for receive and
file.
6.A.FOR BLUE FOLDER DOCUMENTS APPROVED AT THE CITY COUNCIL
MEETING
RECOMMENDATION: Approved
7.PUBLIC COMMENT ON NON-AGENDA ITEMS
This is the appropriate time for members of the public to make comments regarding items not listed on this agenda.
Pursuant to the Brown Act, no action will take place on any items not on the agenda.
8.CONSENT CALENDAR
Business items, except those formally noticed for public hearing, or those pulled for discussion are assigned to the
Consent Calendar. The Mayor or any Councilmember may request that any Consent Calendar item(s) be removed,
discussed, and acted upon separately. Items removed from the Consent Calendar will be taken up under the "Excluded
Consent Calendar" section below. Those items remaining on the Consent Calendar will be approved in one motion. The
2 PORTUGUESE BEND ROAD
ROLLING HILLS, CA 90274
(310) 377-1521
AGENDA
Regular City Council Meeting
CITY COUNCIL
Monday, March 13, 2023
CITY OF ROLLING HILLS
7:00 PM
The meeting agenda is available on the City’s website. The City Council meeting will be live-streamed on the City’s website.
Both the agenda and the live-streamed video can be found here:
https://www.rolling-hills.org/government/agenda/index.php
Members of the public may submit written comments in real-time by emailing the City Clerk’s office at cityclerk@cityofrh.net.
Your comments will become part of the official meeting record. You must provide your full name, but please do not provide
any other personal information that you do not want to be published.
Recordings to City Council meetings can be found here: https://www.rolling-hills.org/government/agenda/index.php
Next Resolution No. 1332 Next Ordinance No. 383
CL_AGN_230313_CC_BlueFolderItem_14A.pdf
1
Mayor will call on anyone wishing to address the City Council on any Consent Calendar item on the agenda, which has
not been pulled by Councilmembers for discussion.
8.A.APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR
MEETING OF MARCH 13, 2023
RECOMMENDATION: Approve.
8.B.APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER
READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE
AGENDA
RECOMMENDATION: Approve.
8.C.APPROVE THE FOLLOWING CITY COUNCIL MINUTES: FEBRUARY 27, 2023
RECOMMENDATION: Approve as presented.
8.D.PAYMENT OF BILLS.
RECOMMENDATION: Approve as presented.
8.E.RECEIVE AND FILE THE ANNUAL PROGRESS REPORTS FOR THE GENERAL
PLAN.
RECOMMENDATION: Receive and file.
8.F.ADOPT BY RESOLUTION NO. 1331 AUTHORIZING A BUDGET MODIFICATION
OF $7,390.58 FOR LOS ANGELES COUNTY DEPARTMENT OF PUBLIC
WORKS VIDEO INSPECTION OF THE MIDDLERIDGE LANE NORTH/SOUTH
DRAINAGE SYSTEM AND SUBSEQUENT RECOMMENDATIONS BASED ON
FINDINGS SPECIFIC TO THE VIDEO EVALUATION PERFOMED IN 2022
RECOMMENDATION: Approve as presented.
9.EXCLUDED CONSENT CALENDAR ITEMS
10.COMMISSION ITEMS
11.PUBLIC HEARINGS
12.OLD BUSINESS
12.A.ACCEPT BID PROPOSAL FROM EC CONSTRUCTION FOR EMERGENCY
STORM DRAIN REPAIRS AND LINING AT OR NEAR 1 MIDDLERIDGE LANE
SOUTH TO 3 MIDDLERIDGE LANE NORTH; ADOPT BY RESOLUTION NO. 1327
APPROVING THE EMERGENCY WORK; ADOPT BY RESOLUTION NO. 1328
AUTHORIZING A BUDGET MODIFICATION OF $450,742.50; DIRECT THE CITY
ATTORNEY TO FINALIZE A CONSTRUCTION CONTRACT; AND AUTHORIZE
THE CITY MANAGER TO EXECUTE; AND FIND THE SAME EXEMPT FROM
CEQA
CL_AGN_230313_CC_AffidavitofPosting.pdf
CL_MIN_230227_CC_F_A.pdf
CL_AGN_230313_PaymentOfBills_E.pdf
PL_GPN_APR_2022_RollingHillsGeneralPlanAPR.pdf
PW_DRA_221102_CSRT_RecRequest_MiddleridgeNS.pdf
ResolutionNo1331_LACDPW_VideoInspectionRecs_Budget Amendments.pdf
2
RECOMMENDATION: Approve as presented.
12.B.CONSIDERATION AND APPROVAL TO AWARD A CONSTRUCTION
CONTRACT TO AC PROS FOR THE CITY HALL HEATING, VENTILATION AND
AIR CONDITIONING PROJECT #2023-01 FOR AN AMOUNT OF $188,750;
ADOPT BY RESOLUTION NO. 1329 AUTHORIZING A BUDGET MODIFICATION
OF $207,625; DIRECT THE CITY ATTORNEY TO FINALIZE A CONSTRUCTION
CONTRACT; AND AUTHORIZE THE CITY MANAGER TO EXECUTE; AND FIND
THE SAME EXEMPT FROM CEQA
RECOMMENDATION: Approve as presented.
12.C.CONSIDERATION AND APPROVAL TO AWARD A CONSTRUCTION
CONTRACT TO UNLIMITED ENVIRONMENTAL, INC. FOR THE DEMOLITION
PACKAGE FOR: STANDBY GENERATOR REMOVAL, WATERPROOF
REMOVAL, & ELECTRICAL SERVICES PROJECT #2023-02 AT AN AMOUNT OF
$54,700; ADOPT BY RESOLUTION NO. 1330 AUTHORIZING A BUDGET
MODIFICATION OF $60,170; DIRECT THE CITY ATTORNEY TO FINALIZE A
CONSTRUCTION CONTRACT; AND AUTHORIZE THE CITY MANAGER TO
EXECUTE; AND FIND THE SAME EXEMPT FROM CEQA
RECOMMENDATION: Approve as presented.
13.NEW BUSINESS
14.MATTERS FROM THE CITY COUNCIL
14.A.DISCUSS SOUTH BAY CITIES COUNCIL OF GOVERNMENTS (SBCCOG)
MEMBERSHIP DUES (MAYOR WILSON)
R ECOM MENDATION : Receive a presentation from Mayor Pat Wilson and
provide direction to staff.
PW_DRA_230307_ECC-Estimate_SDLining_MiddleridgeNS.pdf
PW_DRA_230307_AsBuilts_MiddleridgeLane_6650_U1-B_MarkedUp.pdf
ResolutionNo1327_EmergencyStormDrainRepair_Lining_ECC.pdf
ResolutionNo1328_EmergRepairs_MiddleridgeN-S_BudgetAmendment.pdf
CA_AGR_230313_ECC_EmergencyContract_StormDrainRepair_Lining_Draft.pdf
CL_PBN_230131_NOB_2023-01_CH_HVAC_Replacement_Draft_Affidavit.pdf
CL_PBN_230209_NOB_2023-01_CH_HVAC_Replacement_Affidavit_2nd.pdf
CL_BID_230228_2023-01_CH_HVAC_Project_ACProsInc..pdf
CL_BID_230228_2023-01_CH_HVAC_Project_BonAirInc..pdf
CL_BID_230228_2023-01_CH_HVAC_Project_AllisonMechInc..pdf
ResolutionNo1329_HVAC_Project2023-01_BudgetAmendment.pdf
CA_AGR_230313_ACPros_ConstructionContract _HVAC_Project2023-01_Draft.pdf
CL_PBN_230131_NOB_2023-02_CH_StandbyGeneratorDemo_Affidavit.pdf
CL_PBN_230209_NOB_2023-02_CH_StandbyGeneratorDemo_Affidavit_2nd.pdf
CL_BID_230228_2023-02_CH_StandbyGeneratorDemo_ID&RInc.pdf
CL_BID_230228_2023-02_CH_StandbyGeneratorDemo_UnlimitedEnvInc.pdf
ResolutionNo1330_GeneratorRemovalProject2023-02_BudgetAmendment.pdf
CA_AGR_230313_Unlimited Environmental_GeneratorRemovalProject2023-02_Draft.pdf
CL_AGN_230213_SBCCOG_FinanceCommittee_02.01.23_AgendaSlides.pdf
GV_GVO_COG_1.20 CIty Pop Sqmi GEN Fund Final (2).pdf
CL_AGN_230313_CC_CA_DeptFinancePopulation_2011-22.pdf
CL_AGN_230313_CC_SBCCOG_2017DuesFormulaMemo_Increase_Calculation.pdf
3
14.B.STORM IMPACTS TO THE COMMUNITY ON THE WEEKEND OF FEBRUARY
24, 2023 (MAYOR PRO TEM MIRSCH)
R EC O M M EN D AT I O N: Receive a presentation from Mayor Pro Tem Leah
Mirsch and provide direction to staff.
15.MATTERS FROM STAFF
16.RECESS TO CLOSED SESSION
17.RECONVENE TO OPEN SESSION
18.ADJOURNMENT
Next regular meeting: Monday, March 27, 2023 at 7:00 p.m. in the City Council Chamber,
Rolling Hills City Hall, 2 Portuguese Bend Road, Rolling Hills, California, 90274.
Notice:
Public Comment is welcome on any item prior to City Council action on the item.
Documents pertaining to an agenda item received after the posting of the agenda are available for review in
the City Clerk's office or at the meeting at which the item will be considered.
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in
this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the
meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for
your review of this agenda and attendance at this meeting.
4
Agenda Item No.: 6.A
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:FOR BLUE FOLDER DOCUMENTS APPROVED AT THE CITY COUNCIL
MEETING
DATE:March 13, 2023
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approved.
ATTACHMENTS:
CL_AGN_230313_CC_BlueFolderItem_14A.pdf
5
BLUE FOLDER ITEM (SUPPLEMENTAL)
Blue folder (supplemental) items are additional back up materials to administrative reports, changes to the posted agenda packet,
and/or public comments received after the printing and distribution of the agenda packet for receive and file.
CITY COUNCIL MEETING
MARCH 13, 2023
14.A DISCUSS SOUTH BAY CITIES COUNCIL OF GOVERNMENTS (SBCCOG)
MEMBERSHIP DUES (MAYOR WILSON)
FROM: CHRISTIAN HORVATH, CITY CLERK/EXECUTIVE ASSISTANT TO THE CITY
MANAGER
CL_AGN_230313_CC_CA_DeptFinancePopulation_2011-22.pdf
CL_AGN_230313_CC_SBCCOG_2017DuesFormulaMemo_Increase_Calculation.pdf
6
Agenda Item No.: 8.A
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL
REGULAR MEETING OF MARCH 13, 2023
DATE:March 13, 2023
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve.
ATTACHMENTS:
CL_AGN_230313_CC_AffidavitofPosting.pdf
7
Administrative Report
8.A., File # 1691 Meeting Date: 03/13 /202 3
To: MAYOR & CITY COUNCIL
From: Christian Horvath, City Clerk
TITLE
APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF MARCH 13,
202 3
EXECUTIVE SUMMARY
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
AFFIDAVIT OF POSTING
In compliance with the Brown Act, the following materials have been posted at the locations below.
Legislative Body City Council
Posting Type Regular Meeting Agenda
Posting Location 2 Portuguese Bend Road, Rolling Hills, CA 90274
City Hall Window
City Website: https://www.rolling-hills.org/government/agenda/index.php
https://www.rolling-hills.org/government/city_council/city_council_archive_agendas/index.php
Meeting Date & Time March 13, 2023 7:00pm Open Session
As City Clerk of the City of Rolling Hills, I declare under penalty of perjury, the document noted above was
posted at the date displayed below.
Christian Horvath, City Clerk
Date: March 10, 202 3
8
Agenda Item No.: 8.B
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER
READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE
AGENDA
DATE:March 13, 2023
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve.
ATTACHMENTS:
9
Agenda Item No.: 8.C
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:APPROVE THE FOLLOWING CITY COUNCIL MINUTES: FEBRUARY
27, 2023
DATE:March 13, 2023
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
CL_MIN_230227_CC_F_A.pdf
10
MINUTES – CITY COUNCIL MEETING
Monday, February 27, 2023
Page 1
Minutes
Rolling Hills City Council
Mon day, February 27, 202 3
Regular Meeting 7:00 p.m.
1. CALL TO ORDER
The City Council of the City of Rolling Hills met in person on the above date at 7:00 p.m. Mayor Wilson
presiding.
2. ROLL CALL
Councilmembers Present: Black, Dieringer, Mayor Pro Tem Mirsch, Mayor Wilson
Councilmembers Absent: Pieper
Staff Present: Elaine Jeng , City Manager
Christian Horvath, City Clerk / Executive Assistant to the City Manager
John Signo, Planning & Community Services Director
Pat Donegan, City Attorney
3. PLEDGE OF ALLEGIANCE – Mayor Wilson
4. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS – NONE
5. APPROVE ORDER OF THE AGENDA
Motion by Councilmember Black, seconded by Councilmember Dieringer to approve the order of the agenda.
Motion carried unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
6. BLUE FOLDER ITEMS (SUPPLEMENTAL)
Motion by Councilmember Black, seconded by Councilmember Dieringer to receive and file Blue Folder
Items for 7, 8C, 8D and 12A. Motion carried unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
7. PUBLIC COMMENT ON NON-AGENDA ITEMS
Public Comment: Alfred Visco, Darren Tangen, Nicole Tangen, Mike Gray, Jack Manchurian, Gene Honbo,
Arlene Honbo, Judith Haenel
8. CONSENT CALENDAR
8.A. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL REGULAR MEETING OF
FEBRUARY 27, 2023
11
MINUTES – CITY COUNCIL MEETING
Monday, February 27, 2023
Page 2
8.B. APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER READING OF ALL
ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA
8.C. PULLED BY COUNCILMEMBER DIERINGER
8.D. PAYMENT OF BILLS
8.E. REPUBLIC SERVICES RECYCLING TONNAGE REPORT FOR JANUARY 2023
8.F. RECEIVE AND FILE REPORT ON THE FINANCE/BUDGET/AUDIT COMMITTEE MEETING OF
FEBRUARY 13, 2023
8.G. PULLED BY MAYOR WILSON
8.H. CONSIDER AND APPROVE THE PLANNED EXPENDITURES FOR FISCAL YEAR 2023-2024
SAFE, CLEAN WATER (MEASURE W) MUNICIPAL PROGRAM FUNDS FOR SUBMISSION TO
LOS ANGELES COUNTY FLOOD CONTROL DISTRICT
Motion by Councilmember Black, seconded by Mayor Pro Tem Mirsch to approve Consent Calendar except
Items 8C and 8G. Motion carried unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
9. EXCLUDED CONSENT CALENDAR ITEMS
8.C. APPROVE THE FOLLOWING CITY COUNCIL MINUTES: FEBRUARY 13, 2023
Motion by Councilmember Dieringer regarding the February 13 minutes, Item 8I, to insert language right
after the word “HQE” and say “…and mention that there’s other siren companies, such as Genasys which
interfaces with Zonehaven and provide the committee with this Genasys information and gauge interest with
the other Peninsula Cities at the March 9, 2023 meeting.” Motion failed for lack of a second.
Motion by Mayor Wilson, seconded by Mayor Pro Tem Mirsch to approve item as presented.
Substitute Motion by Councilmember Dieringer, seconded by Councilmember Black regarding the February
13th minutes, Item 8I, to insert language “…and that Councilmember Dieringer will present the information
on the Genasys System.” Motion failed with the following vote:
AYES: Black, Dieringer
NOES: Mirsch, Mayor Wilson
ABSENT: Pieper
Primary motion failed with the following vote:
AYES: Mirsch, Mayor Wilson
NOES: Black, Dieringer
ABSENT: Pieper
Motion by Mayor Pro Tem Mirsch , seconded by Councilmember Dieringer to table this item until all five
members are present to vote. Motion carried unanimously with the following vote:
12
MINUTES – CITY COUNCIL MEETING
Monday, February 27, 2023
Page 3
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
8.G. RECEIVE AND FILE PAST ADMINISTRATIVE REPORTS RELATING TO THE CITY HALL
CAMPUS EMERGENCY POWER PROJECT
Mayor Pro Tem Mirsch requested to agendize discussion about finalizing a decision regarding the City Hall
Campus Emergency Power Project for the March 27, 2023 City Council meeting.
Motion by Mayor Pro Tem Mirsch, seconded by Councilmember Black to receive and file. Motion carried
unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
10. COMMISSION ITEMS – NONE
11. PUBLIC HEARINGS – NONE
12. OLD BUSINESS
12.A. CONSIDER REPAIR OPTIONS PROPOSED BY EC CONSTRUCTION TO ADDRESS SINKHOLE
NEAR 1 MIDDLERIDGE LANE SOUTH AND PROVIDE DIRECTION TO STAFF
Presentation by City Clerk / Executive Assistant to the City Manager Christian Horvath
Due to technical difficulties with virtual connection, Mayor Wilson moved to Item 12B.
12.B. DISCUSSION ON THE REPLACEMENT OF THE THREE RAIL FENCE, LOCATED ADJACENT
TO PORTUGUESE BEND ROAD NEAR THE MAIN GATE AND FUTURE CAMPUS
LANDSCAPING PLAN
Presentation by City Manager Elaine Jeng
Public Comment: Sue Brieholz
Motion by Councilmember Black, seconded by Mayor Pro Tem Mirsch directing staff to get bids for
replacement of the three rail fence. Motion carried with the following vote:
AYES: Black, Mirsch, Mayor Wilson
NOES: Dieringer
ABSENT: Pieper
Mayor Wilson returned to Item 12A
12.A. CONSIDER REPAIR OPTIONS PROPOSED BY EC CONSTRUCTION TO ADDRESS SINKHOLE
NEAR 1 MIDDLERIDGE LANE SOUTH AND PROVIDE DIRECTION TO STAFF
Continued presentation by James Bleecker, EC Construction
Public Comment: Alfred Visco
13
MINUTES – CITY COUNCIL MEETING
Monday, February 27, 2023
Page 4
Motion by Councilmember Dieringer, seconded by Councilmember Black to directing staff to authorize the
video of the drainage system and the City Manager to execute a professional services agreement with a not-
to-exceed amount of $3,300; and bring back a report and revised estimates for repairs. Motion carried
unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
13. NEW BUSINESS
13.A. APPROVE AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT
WITH CBE OFFICE SOLUTIONS FOR A UNITED STATES POSTAL SERVICE COMPLIANT
PITNEY BOWES SENDPRO C-AUTO 95 POSTAGE MACHINE; APPROVE AUTHORIZATION
FOR THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH CBE OFFICE SOLUTIONS TO
PURCHASE A DIGITAL COLOR SYSTEM (COPIER / PRINTER / SCANNER) AND SIGN A
MAINTENANCE SERVICE AGREEMENT
Presentation by City Clerk / Executive Assistant to the City Manager Christian Horvath
Motion by Mayor Pro Tem Mirsch, seconded by Councilmember Black to approve as presented subject to
the pricing for the Digital Color System including the $1000 trade -in deduction for a total purchase price of
$9,945. Motion carried unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
13.B. RECEIVE AND FILE A POTENTIAL FINANCING PLAN FOR CITY HALL ADA IMPROVEMENTS
CONSTRUCTION
Presentation by City Manager Elaine Jeng
Motion by Councilmember Dieringer, seconded by Mayor Wilson directing staff to submit to the CJPIA an
amended loan application and get more details on the loan. Motion carried with the following vote:
AYES: Dieringer, Mirsch, Mayor Wilson
NOES: Black
ABSENT: Pieper
14. MATTERS FROM THE CITY COUNCIL
14.A. DISCUSS FAA'S TWO NEW DEPARTURE PROCEDURES OPPOSED BY THE RPV AND LAWA
(WILSON)
Motion by Mayor Pro Tem Mirsch, seconded by Councilmember Black directing staff to write a letter in
opposition. Motion carried unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
14
MINUTES – CITY COUNCIL MEETING
Monday, February 27, 2023
Page 5
Motion for reconsideration by Mayor Pro Tem Mirsch, seconded by Mayor Wilson. Motion carried
unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
Revised motion by Mayor Pro Tem Mirsch, seconded by Councilmember Black directing staff to write a letter
in opposition of the FAA’s proposal following the points cited in the Rancho Palos Verdes letter.
Councilmember Dieringer made a friendly amendment to include LAWA letter. Friendly amendment was
rejected by Mayor Pro Tem Mirsch.
Motion carried unanimously with the following vote:
AYES: Black, Dieringer, Mirsch, Mayor Wilson
NOES: None
ABSENT: Pieper
15. MATTERS FROM STAFF – NONE
16. RECESS TO CLOSED SESSION – 9:16 P.M.
16.A. CONFERENCE WITH LABOR NEGOTIATOR GOVERNMENT CO DE SECTION 54957.6
CITY'S DESIGNATED REPRESENTATIVE: MAYOR PATRICK WILSON UNREPRESENTED
EMPLOYEE: CITY MANAGER ELAINE JENG
17. RECONVENE TO OPEN SESSION – 9:29 P.M.
18. ADJOURNMENT : 9:31 P.M.
The meeting was adjourned at 9:31 p.m on February 27, 2023 in memory of Rolling Hills resident Lisa
Hansen, Chair of the Norris Foundation. The next regular adjourned meeting of the City Council is scheduled
to be held on Mon day, March 13, 2023 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2
Portuguese Bend Road, Rolling Hills, California. It will also be available via City’s website link at:
https://www.rolling-hills.org/government/agenda/index.php
All written comments submitted are included in the record and available for public review on the City website.
Respectfully submitted,
____________________________________
Christian Horvath, City Clerk
Approved,
____________________________________
Patrick Wilson, Mayor
15
Agenda Item No.: 8.D
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:PAYMENT OF BILLS.
DATE:March 13, 2023
BACKGROUND:
None.
DISCUSSION:
None.
FISCAL IMPACT:
None.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
CL_AGN_230313_PaymentOfBills_E.pdf
16
Check No.Check Date Payee Description Amount
028029 3/9/2023 Abila 04-18-2023 - 05-17-2023 Accounting Software 326.80
028030 3/9/2023 Alan Palermo Consulting Jan 29,2023 to Feb 25,2023 Professional Services 2,557.50
028031 3/9/2023 Albert Udero B-17 Construction CND Refund 1 Packsaddle ZC 21-55 1,000.00
028032 3/9/2023 Best Best & Krieger LLP January-2023 Legal Services-Land Use Matter # 65277.00010 57.00
028033 3/9/2023 Corken, Nedra Mileage and Expense Reimbursement 01/04/23 -02/16/23 38.87
028034 3/9/2023 Cox Communications Phone Service Feb 23 - Mar 25, 2023 158.82
028034 3/9/2023 Cox Communications Phone/Cable Period 01-26-23 - 02-25-23 158.81
CHECK TOTAL $ 317.63
028035 3/9/2023 Bea Dieringer Cal Cities Leaders Conference Exp 11-30-22 - 12-02-22 551.55
028036 3/9/2023 Environmental Design Associates Landscape Plan Review MWELO Compliance Proj 4 Poppy Trail 875.00
028036 3/9/2023 Environmental Design Associates Prelimin Landscape Pl Rvw MWELO Compliance 9 PBR ZC 22-81 375.00
CHECK TOTAL $ 1,250.00
028037 3/9/2023 Konica Minolta Business Solutions USA Inc.1/11/2023-02/10/2023 for Printer Maintenence 536.90
028038 3/9/2023 County of Los Angeles Additional Payment for Invoice Credit Error in November 2022 41.00
028038 3/9/2023 County of Los Angeles Jan 2023 Animal Care Services 126.28
CHECK TOTAL $ 167.28
028039 3/9/2023 County of Los Angeles Johns Cyn Rd Traffic Calming Measures Jan-23 Proj N970270287 907.81
028039 3/9/2023 County of Los Angeles Street Maintenance Dec-22 Drawdown Grp CC9641, N970270287 108.58
CHECK TOTAL $ 1,016.39
028040 3/9/2023 LA County Sheriff's Department 12-12-22 to 12-19-22 LMT-Traffic Enforcement 1,366.80
028040 3/9/2023 LA County Sheriff's Department LA County Sheriff Prisoner Maintenance December 2022 158.53
028040 3/9/2023 LA County Sheriff's Department Law Enforcement Services January 2023 Unit 75768 31,092.99
CHECK TOTAL $ 32,618.32
028041 3/9/2023 McGowan Consulting Stormwater Consulting Services January 2023 4,667.90
028042 3/9/2023 Orkin Monthly Pest Control February 2023 158.00
028043 3/9/2023 Race Communications 03/01/22 - 04/01/23 Broadband Internet Services 1,020.00
028044 3/9/2023 City of Rolling Hills Estates Repair/Maintenance PVDN & Portuguese Bend Rd 01/01-12/31/23 100.00
028045 3/9/2023 Robert Half Temp Service Ending 2/17/2023 for Planning 1,448.00
028046 3/9/2023 City of Rancho Palos Verdes 2022 Prepared Peninsula Expo - Food Cost Share 500.00
028046 3/9/2023 City of Rancho Palos Verdes January 2023 Monthly ALPR Camera Cost 67.67
CHECK TOTAL $ 567.67
028047 3/9/2023 Standard Insurance Company Insurance Premiums March 2023 254.58
028048 3/9/2023 True American Roofing CND Refund #833 14 PBR ZC21-60 1,000.00
028049 3/9/2023 Willdan Inc.Bldg Plan Check/Permit Jan-2023 Project 101749.00.4000.999 2,660.00
028050 3/7/2023 GPA CONSULTING Project # 918 Vegetation Management - Dec. 2022 670.00
ACH-183 2/28/2023 The Gas Company Gas service 01-09-23 to 02-07-23 939.47
ACH-184 12/5/2022 Nextiva Business Phone Service December 2022 305.64
ACH-185 1/5/2023 Nextiva Business Phone Service January 2023 310.30
CITY OF ROLLING HILLS
AP23-022 & ACH23-038
Check Run 03/09/2023
17
Check No.Check Date Payee Description Amount
ACH-186 2/3/2023 Nextiva Business Phone Service February 2023 310.30
ACH-187 2/17/2023 Pitney Bowes Postage for Month of February 2023 1,510.00
ACH-188 2/28/2023 Southern California Edison Electricity Usage 01-18-23 to 02-14-23 427.14
ACH-189 12/5/2022 Southern California Edison Electricity Usage 10-24-22 to 11-21-22 999.72
ACH-190 2/6/2023 Southern California Edison Electricity Usage 12-22-22 to 01-23-23 989.28
PR LINK 2/21/2023 PR LINK - Payroll & PR Taxes PR#4 Payroll Processing Fee PR#4 02/08/2023 - 02/21/2023 69.96
PR LINK 2/21/2023 PR LINK - Payroll & PR Taxes PR#4 Pay Period - PR#4 02-08-2023 - 02-21-2023 24,707.11
83,553.31$
83,553.31 for the payment of above items.
Elaine Jeng, P.E., City Manager
I, Elaine Jeng, City Manager of Rolling Hills, California certify that the above demands are accurate and there is available in the General Fund a balance of
3/9/2023
18
Agenda Item No.: 8.E
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:JOHN SIGNO, DIRECTOR OF PLANNING & COMMUNITY SERVICES
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:RECEIVE AND FILE THE ANNUAL PROGRESS REPORTS FOR THE
GENERAL PLAN.
DATE:March 13, 2023
BACKGROUND:
The annual progress reports (APRs) for the General Plan and Housing Element are due on
April 1, 2023. Government Code Section 65400 and 65700 mandates that all cities and
counties submit an annual report on the status of the General Plan and progress in its
implementation to their legislative bodies, the Governor's Office of Planning and Research
(OPR), and the Housing and Community Development (HCD). Government Code section
65400 also requires that each city, county, or city and county, including charter cities, prepare
an APR on the status of the housing element of its general plan and progress in its
implementation, using forms and definitions adopted by the California Department of Housing
and Community Development (HCD).
The APRs provide local legislative bodies and the public with information regarding the
implementation of the General Plan for their city or county. APRs also inform the public of the
progress in meeting the community’s goals. APRs must be presented to the local legislative
body for its review and acceptance, usually as a consent or discussion item on a regular
meeting agenda.
The Housing Element APR will be brought to City Council at the March 27, 2023 meeting.
Data is still being collected on the number of housing units permitted.
DISCUSSION:
The General Plan APR provides an overview of recent updates to elements and how the City
complies with OPR's guidelines. It summarizes the actions related to the General Plan over
the past year, including adopted ordinances and resolutions. It also summarizes the City's
efforts in updating the Housing Element and Safety Element.
FISCAL IMPACT:
None.
19
RECOMMENDATION:
Receive and file.
ATTACHMENTS:
PL_GPN_APR_2022_RollingHillsGeneralPlanAPR.pdf
20
INCORPORATED JANUARY 24, 1957
NO. 2 PORTUGUESE BEND ROAD
ROLLING HILLS, CA 90274
(310) 377‐1521
FAX (310) 377‐7288
March 14, 2023
Office of Planning and Research
P.O. Box 3044
Sacramento, CA 95812-3044
SUBJECT: ROLLING HILLS’ 2022 GENERAL PLAN ANNUAL PROGRESS REPORT
Dear Sir or Madam:
This serves as the City of Rolling Hills’ 2022 General Plan Annual Progress Report (GP APR) to
the Governor’s Office of Planning and Research (OPR).
The Rolling Hills General Plan was last updated in its entirety on June 25, 1990. Its purpose is to
comply with State law in guiding the physical development of the City; provide a long-range plan
for future development in the City, which is sensitive to existing development patterns; and
represents the desires of the community through an extensive public outreach process. The
Rolling Hills General Plan includes the following elements:
Land Use Element (Amended February 8, 2021)
Housing Element (6th Cycle adopted September 26, 2022; discussion below)
Circulation Element
Open Space/Conservation Element
Safety Element (Revised update adopted October 24, 2022; discussion below)
Noise Element
Compliance
The Rolling Hills General Plan complies with OPR’s General Plan Guidelines. The following is a
summary of actions related to the General Plan and updated Municipal Code sections over the
past year:
The City currently has no moratoriums related to the General Plan.
On March 14, 2022, Ordinance No. 375 was adopted to prohibiting new plantings of high
hazardous plants and trees, including pines, pampas grass, palms, juniper, acacia shrubs,
eucalyptus, cedar, cypress, and Italian cypress. This meets the City’s Open Space and
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Page 2 of 7
Conservation Element Policy 1.1, 1.2, and 1.3 which encourage natural habitat and wildlife
and drought-resistant landscaping.
On August 8, 2022, Ordinance No. 377 was adopted amending various Municipal Code
sections related to employee, supportive, and transitional housing in compliance with
State Housing Law.
On August 8, 2022, Ordinance No. 378 was adopted amending the Municipal Code
regarding family day care homes to comply with SB 234 and State Housing Law.
On August 8, 2022, Ordinance No. 379 was adopted adding Chapter 17.62 to the Rolling
Hills Municipal Code regarding density bonuses and other affordable housing incentives
required by State law. Specifically, California’s Density Bonus Law (Government Code
Section 65915) encourages developers to build affordable housing by requiring cities to
grant a density bonus, concessions, incentives, and waivers of development standards for
projects that commit certain percentages of their units to affordable housing.
On August 22, 2022, Ordinance No. 376 was adopted regarding accessory dwelling units
(ADUs) and junior accessory dwelling units (JADUs) in compliance with 2019 ADU Laws,
AB 3182, and AB 345.
On November 14, 2022, Ordinance No. 380 was adopted amending the Rolling Hills
Municipal Code regarding stormwater management and pollution control to comply with
the Regional Municipal National Discharge Elimination System (NPDES) Stormwater
Permit. This is consistent with Rolling Hills Open Space and Conservation Element
Policies 1.4 and 1.7 regarding grading regulations, soil stability, erosion prevention, and
the preservation of natural watershed areas.
On December 13, 2022, Urgency Ordinance No. 381-U was adopted and immediately
went into effect updating the ADU Ordinance to meet SB 897 approved by the State
Legislature in September 2022. On January 9, 2023, Ordinance No. 381 was adopted as
a permanent ordinance. Ordinance 381-U and 381 amended requirements for height
limits, setbacks, application review and denial procedures, unpermitted structures, and
JADU configurations in compliance with SB 897.
On December 13, 2022, Urgency Ordinance No. 382-U was adopted and immediately
went into effect referencing the Los Angeles County Code incorporating the 2022
California Building Code, Electrical Code, Plumbing Code, Mechanical Code, Residential
Code, Green Building Standards Code, and Existing Building Code. On January 9, 2023,
Ordinance No. 382 was adopted as a permanent ordinance referencing the same. The
Ordinances meet the City’s Safety Element goals and policies to minimize loss of life,
injury, and property damage resulting from geologic hazards, flood hazards, fire hazards,
and hazardous materials.
Housing Element Update
The Housing Element must demonstrate that Rolling Hills has the capacity to meet the Regional
Housing Needs Allocation (RHNA) assigned by the Southern California Association of
Governments. It must further demonstrate that the City is planning to meet the housing needs
of its existing and potential future residents and is “affirmatively furthering fair housing” as
required by State law.
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Page 3 of 7
The housing allocation for Rolling Hills for the Sixth Cycle 2021-2029 period is 45 units,
including:
20 very low-income units
9 low-income units
11 moderate-income units
5 above moderate-income units
Each city must plan for the type of housing it has been assigned. In the case of very low- and
low-income units, this typically requires sites that are zoned for multi-family housing. Accessory
dwelling units (ADUs) may be counted as low- and moderate-income units if the City has
sufficient data on rents and construction trends to support its conclusions.
The 2021-2029 Housing Element includes the following contents:
An Introduction that describes the purpose of the document and the update process
An Evaluation of the last Housing Element (certified by HCD in July 2021)
Housing Needs Assessment
Housing Opportunities and Resources, which includes an analysis of potential housing
sites and the potential for ADUs
Constraints to Housing Production, including zoning, standards for different housing types,
permitting processes, fees, and code requirements---as well as land and construction
costs, CC&Rs, infrastructure, and environmental constraints
Housing goals, policies, objectives, and programs
Three appendices, one of which is new and two of which are carried over from the prior
Housing Element
o Appendix A is the State-mandated fair housing evaluation
o Appendix B is an analysis of the Rancho Del Mar School site
o Appendix C presents the results of the November 2020 ADU survey
The Housing Element provides data supporting the finding that at least 13 of the future ADUs
will be affordable to lower income households based on data from the Southern California
Association of Governments (SCAG), the City’s 2020 ADU resident survey, and local real estate
ads. The forecast of five ADUs per year is based on the City’s track record of approving nine
ADUs in 2021 alone.
Much of the program focus of the Housing Element is on ADU production. No rezoning is
proposed. The Element recommends an ADU roster, a list of potential ADUs, an annual ADU
survey, coordination with the Rolling Hills Community Association (RHCA) on the review of
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Page 4 of 7
ADUs, potential grant funding for “pre-approved” ADU plans and septic tank improvements,
additional outreach to residents on ADU opportunities, and an update to the RHCA design
guidelines to acknowledge ADUs.
The Element also proposes monitoring opportunities on the Rancho Del Mar site and
coordinating with the Palos Verdes Peninsula School District and non-profit development
community on the potential for housing there. It further proposes minor zoning amendments to
comply with state laws regarding supportive housing, transitional housing, and employee
housing. The Element also proposes retaining a third-party fair housing services provider to
handle fair housing outreach and case management in the City. Most of the other programs are
carried forward from the prior Housing Element, including ongoing code enforcement and
energy conservation programs, and sewer feasibility studies.
The Housing Element update was funded in part by the Local Early Action Planning (LEAP)
grant for $65,000. The LEAP grant was awarded by the California Department of Housing and
Community Development (HCD) on September 2, 2020.
The City published its Draft 6th Cycle Element on December 3, 2021, and circulated this draft
for a State-mandated 30-day review period. The Planning Commission convened a hearing on
December 16, 2021 to discuss the Draft and provide an opportunity for public comment during
the 30-day period.
On January 10, 2022, the Rolling Hills City Council directed staff to submit a working draft of the
2021-2029 Housing Element to HCD for their review. All California cities are required to have
their documents reviewed by HCD before adoption. Once HCD receives the Draft, it has 90 days
to issue a “findings” letter indicating the revisions to the document that are needed to receive
State certification. Rolling Hills submitted its draft on January 11, 2022 and received its State
comments on April 11, 2022. The State indicated that the City had met many of the statutory
requirements but indicated the Element required revision before it could be certified. Their
findings letter requested 34 changes, some of which were specific and others that were more
generalized.
On April 22, 2022, City staff and its Housing Element consultant met with the HCD reviewer by
Zoom to go over the State’s comments. The reviewer provided guidance on how the City could
respond to some of the comments. The City then prepared written responses to each of the 34
HCD comments. It also prepared a “tracked change” and “clean” copy version of the Housing
Element, making it easier for City officials, the public, and State reviewers to see the changes
between the two documents. The new version of the document was referred to as the “Adoption
Draft” (the prior version was referred to as the “HCD Draft).”
The Adoption Draft was presented to the Planning Commission on May 17, 2022, and to the
City Council on May 23, 2022. The document was resubmitted to the State on May 24, 2022.
Under State law, HCD had up to 60 days to review the updated draft. HCD’s comments were
received on July 21, 2022.
24
Page 5 of 7
HCD’s comments was generally positive and indicated a much smaller list of objections.
Whereas the April 11 letter had 34 comments, the July 21 letter had only five comments. City
staff and its Housing Element consultant met with HCD via Zoom on August 5, 2022 to review
the comments. HCD provided further guidance on the comments and ideas for the City to
consider in developing its response. The project team revised the Adoption Draft in late August
and early September. Concurrently, the City completed the required environmental review of
the Housing Element, including publication of an Initial Study and Mitigated Negative
Declaration (IS/MND) for the project.
On September 13, City staff requested an informal (“technical assistance”) review of the
proposed Housing Element revisions by HCD. The City’s submittal to HCD included written
responses to their five comments, and a tracked change version of Chapters 5 and 6. The
revised Housing Element was published and posted to the City’s website on September 15. On
September 18, the City received an email from HCD indicating the revised document had
satisfactorily responded to HCD’s comments and the Housing Element could now be certified.
HCD staff indicated the City could proceed with adoption and then submit the document for a
formal compliance finding and letter.
On September 20, the Rolling Hills Planning Commission convened a public hearing on the
Housing Element. The Commission unanimously approved Resolution 2022-15, recommending
that the City Council adopt the IS/MND and adopt the 2021-2029 Rolling Hills Housing Element
as presented.
On September 26, the City Council adopted the 2021-2029 Sixth Cycle Rolling Hills Housing
Element and the associated IS/MND. On September 28, the adopted Housing Element was sent
to HCD for review for compliance with State Housing Element Law (Article 10.6 of the
Government Code).
On November 15, HCD informed the City’s consultant, Barry Miller, that minor technical
modifications to Chapter 6 of the Housing Element were needed before the Housing Element
could be certified. These included additional metrics for certain programs:
Program 3 – Add metric for additional multifamily
Program 4 – Add metrics, especially employees
Program 6.8 – Add metric
Program 9 – Increase metric, go beyond senior homeowners
Program 13 – Increase metric, go beyond Rolling Hills residents
Program 20 – Convert metric to assisted households
On November 21 and 22, City Staff and its consultant, Mr. Barry Miller, were able to speak with
HCD staff to make sure their issues were adequately addressed. HCD’s position was that the
requested edits were technical in nature and not substantive as they did not modify program
language, commit the City to additional actions, or result in a larger number of total housing
25
Page 6 of 7
units. Staff responded to HCD’s request with the following edits:
Added a sentence regarding housing mobility in the region and discussed the potential for
a density bonus on the Rancho Del Mar site, which was already discussed elsewhere
(Program 3).
Increased the 8-year target for the number of persons working in Rolling Hills who might
also be able to live in the city from four to six (Program 4).
Held the number of projected Accessory Dwelling Units (ADUs) constant at 40 units, but
redistributed the units among income groups to more closely match the RHNA targets.
This means the City should aspire to create 18 ADUs that are “affordable by design” to
lower income (instead of 13), 15 ADUs that are “affordable by design” to moderate (instead
of 8 units), and 7 ADUs that meet Above Moderate affordability criteria (instead of 19 units)
(Program 6).
Increased the target for ADUs that could potentially be built by a nonprofit from four to
seven —to align with Program 9 (Program 6.8).
Aligned the number of extremely low-income households in Program 9 with the number of
extremely low income ADUs (seven in both cases).
Increased home-sharing target from six persons to eight persons (Program 13).
Increased fair housing target from three persons to five persons (Program 20).
In its communication with the City, HCD noted that these edit aspirational targets and that it was
not asking the City to change its ADU programs or introduce any new requirements. There were
also a few non-substantive edits made for internal consistency.
On November 23, 2022, HCD sent the City a letter indicating the Housing Element, along with
technical modifications, was in full compliance with State Law. The City is grateful for HCD’s
review and certification!
Safety Element Update
The City began its efforts to update the Safety Element in mid-2020 after being awarded a grant
from the Governor's Office of Emergency Services (CalOES). The City obtained the professional
services of Rincon Consultants, Inc. to prepare the Safety Element. Once completed, the Safety
Element was sent to the California Board of Forestry and Fire Protection for review, but no
recommendations or changes were made.
On January 18, 2022, a presentation on the Safety Element was made to the Planning
Commission. The presentation provided an overview on new legislation, policies, and topics
included in the Safety Element. On February 15, 2022, the Planning Commission held a public
hearing and recommended unanimously that the City Council adopt the Safety Element Update.
On March 14, 2022, the City Council considered adopting the Safety Element Update; however,
due to concerns regarding the environmental document, the Council continued the item to March
28, 2022. On March 18, 2022, the City requested a time extension on the grant from CalOES,
26
Page 7 of 7
which was granted to July 15, 2022.
On March 28, 2022, the City Council adopted an update to the Safety Element (“Safety Element
Update”) to comply with recent legislation and effectuate revisions contemplated by funding
awarded to the City from the Governor’s Office of Emergency Services (“CalOES”).
On March 30, 2022, the City sent a copy of the adopted Safety Element Update to CalOES for
review. CalOES review and approval of the Safety Element Update is necessary for the City to
receive grant funding under CalOES’s “Hazard Mitigation Grant Program.” Based on the Period
of Performance (POP), the City had until January 15, 2023, to complete the grant requirements.
On June 16, 2022, the City requested a second time extension for the grant at the request of
CalOES so the grant could be properly closed. The second request extended the grant to January
15, 2023.
On September 2, 2022, CalOES informed the City that it would not award funding under the
Hazard Mitigation Grant Program until the City’s Safety Element satisfied the requirements of
Assembly Bill 2140 (“AB 2140”). To do so, CalOES advised that:
1. The Safety Element must include language stating that the City’s Local Hazard
Mitigation Plan (“LHMP”) is part of the Safety Element;
2. The Safety Element must direct readers to the location of the LHMP (e.g., via a website
link); and
3. The City Council resolution updating the Safety Element should confirm that the LHMP is
adopted into the Safety Element.
On October 18, 2022, the Planning Commission held a duly noticed public hearing on the update
to the Safety Element to incorporate CalOES's requested AB 2140 revisions and voted to
recommend approval to the City Council. On October 24, 2022, the City Council held a duly
noticed public hearing and agreed with the Planning Commission’s recommendation. The
revised Safety Element was adopted to incorporate the requirements of AB 2140.
Thank you for your consideration. If you have any questions regarding the contents of this letter,
please feel free to contact me at 310-377-1521 or email jsigno@cityofrh.net.
Sincerely,
John F. Signo, AICP
Director of Planning and Community Services
27
Agenda Item No.: 8.F
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:ADOPT BY RESOLUTION NO. 1331 AUTHORIZING A BUDGET
MODIFICATION OF $7,390.58 FOR LOS ANGELES COUNTY
DEPARTMENT OF PUBLIC WORKS VIDEO INSPECTION OF THE
MIDDLERIDGE LANE NORTH/SOUTH DRAINAGE SYSTEM AND
SUBSEQUENT RECOMMENDATIONS BASED ON FINDINGS SPECIFIC
TO THE VIDEO EVALUATION PERFOMED IN 2022
DATE:March 13, 2023
BACKGROUND:
The December 2021 rainstorms caused three sinkholes on Middleridge Lane, North and
South. Working with the Los Angeles County Department of Public Works (LACDPW) to
address the sinkholes, the department found a 1972 signed agreement between the Los
Angeles County Flood Control District and Rolling Hills noting that the City is responsible for
the maintenance of a storm drain line along Middleridge Lane North and South. The sinkholes,
located adjacent to the roadway on Middleridge Lane South were caused by breaks in the
subject storm drain line as with the sinkhole on 1 Middleridge Lane North.
The City made emergency repairs on three areas of the storm drain system between February
and April 2022. In September 2022, staff was alerted to another section at 3 Middleridge Lane
North creating safety issues on private property and the City Council directed staff to address
via emergency repairs as well.
In anticipation of the rainy season and to gain a better understanding of the City's future
obligations in addressing the maintenance and functionality of the existing drainage
infrastructure, the City Council directed staff to contract LACDPW to perform a video
inspection of the entire storm drain line. The estimated cost of service was $2,532.
The video showed severe corrosion and damage in varying degrees through the majority of
the line (excluding the portions repaired via emergency orders in 2022) including segments
underneath two independent sections of roadway at Middleridge Lane North and Middleridge
Lane South. Video images and reports provided by the LACDPW are attached to this report.
28
In November, 2022, the City requested and approved a $6,000 estimate from LACDPW to
prepare repair recommendations for the remainder of the conveyance system. LACDPW
anticipated providing a proposal by January 30, 2023.
DISCUSSION:
Staff recently received an invoice of $3,890.58 for the evaluation of the video findings and
recommendations from LACDPW (see attached.) LACDPW's comments were as follows
"Upon reviewing the provided videos and reports, we recommend replacing the 18" corrugated
metal pipe with reinforced concrete pipe and rehabilitating the remaining 24" and 36"
corrugated metal pipes. The fee for a detailed recommendation is $10,000 and would require
two weeks to produce after confirmation of funding received."
Although staff is still waiting on an invoice specific to the video inspection, LACDPW has
advised that $3,500 will cover the actual cost.
FISCAL IMPACT:
The evaluation/recommendations specific to the storm drain line is an unexpected expense
and not budgeted in the FY 2022-2023 adopted budget. As such, Council action is needed to
amend the budget to increase budgeted appropriations by $7,390.58 which will be funded
from available General Fund reserves. The use of General Fund reserves for these purposes
is consistent with City policy.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
PW_DRA_221102_CSRT_RecRequest_MiddleridgeNS.pdf
ResolutionNo1331_LACDPW_VideoInspectionRecs_Budget Amendments.pdf
29
30
31
32
33
34
35
RESOLUTION NO. 1331
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROLLING HILLS. CALIFORNIA
AUTHORIZING A FISCAL YEAR 2022-2023
BUDGET MODIFICATION TO INCREASE
APPROPRIATIONS BY $7,390.58 IN THE
GENERAL FUND FUNDED FROM RESERVES FOR
THE LOS ANGELS COUNTY DEPARTMENT OF
PUBLIC WORKS’ VIDEO INSPECTION OF THE
MIDDLERDIGE LANE NORTH/SOUTH DRAINAGE
SYSTEM AND SUBSEQUENT
RECOMMENDATIONS BASED ON FINDINGS
SPECIFIC TO THE VIDEO EVALUATION
PERFORMED IN 2022
THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA,
DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1. Recitals.
A. It is the intention of the City Council of the City of Rolling Hills to
review the adopted budget from time to time.
B. Previously City Council gave direction to City staff to contract with
Los Angeles County Department of Public Works (“LACDPW”) to perform a video
inspection of the City’s storm drain. At the time the estimated cost for this service
was $2,532.
C. In November, 2022, the City requested and approved a $6,000
estimate from LACDPW to prepare repair recommendations for the repair of the
storm drain.
D. Recently, staff received an invoice for $3,890.58 from LACDPW for
the evaluation of the video findings and recommendations. As part of the more
general recommendations, LACDPW posited that a detailed recommendation for
recommendations would be $10,000.
E. Staff is awaiting an invoice specific to the video inspection services
from LACDPW; however LACDPW has advised that $3,500 will cover the cost.
Thus, this $3,500 plus the existing $3,890.58 equals $ 7,390.58
36
D. The City desires to increase appropriations in the General Fund by
$7,390.58 to fund the video work and evaluation of the video findings and
recommendations from LACDPW.
Section 2. The sum of seven thousand, three hundred and ninety
dollars and fifty eight cents ($7,390.58) is hereby appropriated in the General
Fund from reserves to fund the video and video evaluation and repair
recommendations from LACDPW..
Section 3. This Resolution shall take effect immediately upon its
adoption by the City Council, and the City Clerk shall certify to the passage and
adoption of this Resolution and enter it into the book or original resolutions.
PASSED, APPROVED, AND ADOPTED this 13th day of March, 2023
______________________________
PAT WILSON
MAYOR
ATTEST:
______________________________
CHRISTIAN HORVATH
CITY CLERK
37
Agenda Item No.: 12.A
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:ACCEPT BID PROPOSAL FROM EC CONSTRUCTION FOR
EMERGENCY STORM DRAIN REPAIRS AND LINING AT OR NEAR 1
MIDDLERIDGE LANE SOUTH TO 3 MIDDLERIDGE LANE NORTH;
ADOPT BY RESOLUTION NO. 1327 APPROVING THE EMERGENCY
WORK; ADOPT BY RESOLUTION NO. 1328 AUTHORIZING A BUDGET
MODIFICATION OF $450,742.50; DIRECT THE CITY ATTORNEY TO
FINALIZE A CONSTRUCTION CONTRACT; AND AUTHORIZE THE
CITY MANAGER TO EXECUTE; AND FIND THE SAME EXEMPT FROM
CEQA
DATE:March 13, 2023
BACKGROUND:
The December 2021 rainstorms caused three sinkholes on Middleridge Lane, North and
South. Working with the Los Angeles County Department of Public Works to address the
sinkholes, the department found a 1972 signed agreement between the Los Angeles County
Flood Control District and Rolling Hills noting that the City is responsible for the maintenance
of a storm drain line along Middleridge Lane North and South. The sinkholes, located adjacent
to the roadway on Middleridge Lane South, were caused by breaks in the subject storm drain
line as with the sinkhole on 1 Middleridge Lane North. The City made emergency repairs on
three areas of the storm drain system between February and April 2022.
In September 2022, staff was alerted to another section at 3 Middleridge Lane North creating
safety issues on private property and the City Council directed staff to address via emergency
repairs as well. That project was officially accepted as completed during the December 13,
2022 City Council meeting.
Staff was notified over the weekend of January 14, 2023 that another sinkhole had developed
adjacent to 1 Middleridge Lane South just south of the repaired segments from January 2022.
On Wednesday, January 18, 2023, staff met on site with the City contracted inspector from
Onward Engineering to evaluate the situation. Staff also provided the inspector with
documentation and pipeline video from LA County Department of Public Works (LACDPW.)
38
On January 23, 2023, the City Council directed staff to have EC Construction (ECC) provide
repair proposal to address the sinkholes that developed over the weekend of January 14,
2023. The City Council also directed staff to engage Onward Engineering to provide
recommendations using the CCTV data to properly maintain the entire drainage system and to
request the Rolling Hills Community Association to cover the sinkholes.
On January 30, 2023, LACDPW made the following comment in the City Service Request
portal based on their initial and preliminary evaluation of the previous video inspection. It read
as such: "Upon reviewing the provided videos and reports, we recommend replacing the 18"
corrugated metal pipe with reinforced concrete pipe and rehabilitating the remaining 24" and
36" corrugated metal pipes. The fee for a detailed recommendation is $10,000 and would
require two weeks to produce after confirmation of funding received."
On February 13, 2023, the City Council directed staff to work with ECC to bring back an
agreement and resolution for the 600 linear square feet of lining; and request that a
representative from ECC attend the February 27, 2023 meeting.
On February 27, 2023, the City Council directed staff to authorize the video of the drainage
system and the City Manager to execute a professional services agreement with a not-to-
exceed amount of $3,300; and bring back a report and revised estimates for repairs.
DISCUSSION:
In order to assess any potential further damage since the last video inspection by LACDPW in
the fall, ECC performed a video inspection of the drainage system from the start point on
Middleridge Lane South to the intersection of Middleridge North and South on Monday, March
6, 2023.
The following are some observations/conclusions from the video:
1. The storm drain line has extensive damage to the bottom of the pipe. More than 90% of
the current system is missing at least 1’ in width of the bottom of the pipe.
2. The majority of the system contains a lot of debris and trash that has accumulated from
the rains so far this year. All of the debris needs to be cleaned out prior to any repairs or
lining. If the debris is left inside, it will rip the lining and essentially make it useless.
3. The video crawler detected three (3) areas where the existing 24” CMP has collapsed.
Prior to lining, ECC will need to excavate, remove the collapsed CMP, and install a new
stick (20 Linear Feet) of Corrugated Metal Pipe (CMP.) This is known as a point repair.
Therefore, three (3) point repairs totaling 60 LF.
4. Once the trash and debris are cleaned from the line, the three (3) point repairs are
completed, and the void at the bottom of the pipe is filled with slurry/sandbags, the entire
system will be ready to be lined.
Once these 4 items are performed, ECC believes the Cured In Place Pipe (CIPP) lining
continues to be the most effective and efficient way for the City to move forward on this
project.
ECC has provided a revised estimate that includes all associated costs based on the above
observations/conclusions and complete lining of the entire drainage system, 820 linear feet of
CIPP, for $391,950.
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As originally directed at the January 23, 2023 City Council meeting, attached to this report are
Resolution 1327 (emergency work) and Resolution 1328 (budget amendment) for approval to
move forward with the repairs and lining of the Middleridge storm drain system.
ENVIRONMENTAL REVIEW
The emergency repair of the City storm drain is exempt from the California Environmental
Quality Act (“CEQA”) pursuant to section 15269 of the CEQA Guidelines. This Project is
exempt as it constitutes emergency repairs to publicly or privately owned service facilities
necessary to maintain service essential to the public health, safety or welfare. Further, this
Project is exempt pursuant to CEQA Guidelines section 15301 as repair as existing facilities
with no or negligible expansion of use.
FISCAL IMPACT:
The repair to the storm drain line is an unexpected expense and not budgeted in the FY 2022-
2023 adopted budget. As such, Council action is needed to amend the budget to increase
budgeted appropriations by $450,742.50 which will be funded from available General Fund
reserves. The use of General Fund reserves for these purposes is consistent with City policy.
COST: $450,742.50 includes 15% contingency.
Exclusions: permits, inspection fees, SWPPP plan, engineering, survey, relocation of
underground utilities, night or weekend work, concrete, asphalt repairs, and striping.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
PW_DRA_230307_ECC-Estimate_SDLining_MiddleridgeNS.pdf
PW_DRA_230307_AsBuilts_MiddleridgeLane_6650_U1-B_MarkedUp.pdf
ResolutionNo1327_EmergencyStormDrainRepair_Lining_ECC.pdf
ResolutionNo1328_EmergRepairs_MiddleridgeN-S_BudgetAmendment.pdf
CA_AGR_230313_ECC_EmergencyContract_StormDrainRepair_Lining_Draft.pdf
40
BID PROPOSAL AND CONTRACT
2213 CHICO AVE./SO. EL MONTE, CA 91733
Phone: (626) 444-9596 Fax: (626) 444-3077
California Contractors License #366814
DATE: 3/7/2023
TO City of Rolling Hills JOB ADDRESS
2 Portuguese Bend Rd
Rolling Hills, CA 90274 1 Middleridge Lane S
We agree to furnish all labor, materials, equipment and supervision necessary to complete the f ollowing:
STORM DRAIN REPAIRS & LINING
1. Excavate, remove soil and collapsed 24” CMP at 3 locations.
2. Install new 24” CMP and backfill with clean soil at 3 locations, 20 LF @ each location, total 60 LF.
3. Clean and dispose of all trash and debris from exiting storm drain line approx. 740 LF.
4. Install sand slurry and sand bags to fill in void at bottom of existing CMP approx 740 LF.
5. Install CIPP liner to entire CMP storm drain system along 1 Middleridge S, approx. 820 LF. This includes
all laterals under the street.
6. Provide flag men and traffic control.
7. Restore trail areas and landscaping at entry and exit pits required for pipe lining.
COST……$391,950.00
Exclusions: permits, inspection fees, SWPPP plan, engineering, survey, relocation of underground utilities, night or
weekend work, concrete, asphalt repairs, and striping.
The above described work will be performed in a workman like manner and in accordance with standard practices.
TERMS: Unless credit arrangements have been made, in writing, in advance, the invoice for the work described herein is due and payable on
presentation. 1 ½ % per month will be charged on a daily basis on all accounts or portions thereof not paid within 10 days of the date of the invoice.
Customer agrees to pay reasonable attorney fees and collection costs incurred by E.C. Construction Co. for the collection of both principal and interest
due to customer’s failure to pay per this agreement.
Unless otherwise specified, if this proposal is not accepted within______30___________days from bid date, we reserve the right of cancellation.
APPROVE AND ACCEPTED Respectfully Submitted,
___________________________ E.C. CONSTRUCTION CO.
Date__________________20___ By_________________________
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2022 Repaired segments (Yellow) 2023 Collapsed segments (Blue)43
44
1
RESOLUTION NO. 1327
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS FINDING AND DECLARING THAT
AN EMERGENCY CONDITION EXISTS ARISING FROM
DAMAGE AND STATE OF DISREPAIR OF THE STORM
DRAIN FROM AT OR NEAR 1 MIDDLERIDGE LANE
SOUTH TO 3 MIDDLERIDGE LANE NORTH AND
AUTHORIZING EMERGENCY REPAIR TO THE STORM
DRAIN WITHOUT PUBLIC BIDDING
RECITALS
A. Sections 22035 and 22050 of the Public Contracts Code authorize the City
of Rolling Hills (“City”) to proceed with awarding a public works contract to perform
emergency work upon adoption by the City Council by a four-fifths vote of a resolution
declaring that the public interest and necessity demand the immediate expenditure of
public funds to safeguard life, health, or property;
B. The City’s storm drain located from at or near 1 Middleridge Lane South to
3 Middleridge Lane North (“storm drain”) is in need of emergency repair as a result of
damage and degradation to the existing storm drain;
C. The repairs are necessary to preserve the health, safety and welfare of
the City . Further, the degradation and risk of failure of the City’s storm drain is an
unexpected occurrence that poses and clear and imminent danger, requiring immediate
action to prevent or mitigate the loss or impairment of life, health, property, or essential
public services.
D. The need for repair of the City’s storm drain requires immediate action that
will not permit undergoing the formal competitive bidding process because rainy season
is impending and the City does not have the required time to competitively bid the
project in light of possible impacts to the public health and safety and damage to
property;
E. The City Manager solicited a proposal from EC Construction and received
a written acceptable proposal to perform the emergency work from EC Construction,
and the City now wishes to award an emergency contract for repair of the City’s storm
drain to EC Construction; and
F. Public Contract Code section 22050 also provides that the City Council
may, by resolution, delegate the authority to order any action required by the
emergency and to procure the necessary equipment, services, and supplies for those
purposes, without giving notice for bids to let the contracts, to the City Manager, her
designee, or any other officer.
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROLLING HILLS,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The above recitals are true and correct.
Section 2. Findings. The City Council finds that the public interest and
necessity demand the immediate expenditure of public funds for emergency work for
the repair of the City’s storm drain to safeguard life, health and property. The City
Council further finds that the emergency will not permit a delay that would result from a
competitive solicitation for bids and that action is necessary to respond to the
emergency related to the damaged condition of the City’s storm drain. The City Council
further finds that based on the foregoing, the approvals herein authorized are necessary
to protect the public health, safety and welfare.
Section 3. Award of Contract; Delegation of Emergency Contracting
Authority. A contract to perform the necessary emergency repair work to the City’s
storm drain from at or near 1 Middleridge Lane South to 3 Middleridge Lane North is
required and hereby awarded to EC Construction for $391,950.00 and the City
Manager, or her designee, is hereby authorized to execute said contract in a form
acceptable to the City Attorney, and to order any other action required to remedy the
emergency relating to the damaged condition of the City’s storm drain, and to procure
the necessary equipment, services, and supplies for those purposes, without giving
notice for bids to let contracts. The City Manager, or her designee, is directed to report
to the City Council at the next regularly scheduled meeting and at every meeting
thereafter until the work is complete..
Section 4. Effective Date. This Resolution shall be effective immediately.
PASSED, APPROVED AND ADOPTED THIS 13TH DAY OF MARCH, 2023.
_______________________________
PAT WILSON
MAYOR
ATTEST:
___________________________________
CHRISTIAN HORVATH
CITY CLERK
46
3
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
I certify that the foregoing Resolution No. 1327 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS FINDING AND DECLARING THAT
AN EMERGENCY CONDITION EXISTS ARISING FROM
DAMAGE TO THE CITY’S STORM DRAIN FROM AT OR
NEAR 1 MIDDLERIDGE LANE SOUTH TO 3
MIDDLERIDGE LANE NORTH AND AUTHORIZING
EMERGENCY REPAIR TO THE STORM DRAIN
WITHOUT PUBLIC BIDDING
was approved and adopted at a regular meeting of the City Council on March 13, 2023,
by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
CHRISTIAN HORVATH, CITY CLERK
Christian Horvath, City Clerk
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RESOLUTION NO. 1328
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS. CALIFORNIA AUTHORIZING A
FISCAL YEAR 2022-2023 BUDGET MODIFICATION
TO INCREASE APPROPRIATIONS IN THE CAPITAL
PROJECTS FUND BY $450,742.50 FUNDED FROM A
TRANSFER OF GENERAL FUND RESERVES FOR
THE CONSTRUCTION CONTRACT WITH E.C.
CONSTRUCTION CO., FOR THE EMERGENCY
REPAIR OF THE STORM DRAIN FROM AT OR NEAR
1 MIDDLERIDGE LANE SOUTH TO 3 MIDDLERIDGE
LANE NORTH
THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA,
DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1. Recitals.
A. It is the intention of the City Council of the City of Rolling Hills to
review the adopted budget from time to time.
B. On or around March 13, 2023, the City Council considered and
reviewed the status of the City’s storm drain located from at or near 1
Middleridge Lane South to 3 Middleridge Lane North (“storm drain”).
C. The City Council, pursuant to sections 22035 and 22050 of the
Public Contracts Code, found that the storm drain is in need to emergency
repairs and that these repairs are necessary to preserve the health, safety and
welfare of the City. Further, the City directed the City Manager and City Attorney
to execute a contract with E.C. Construction Co., a California corporation, with its
principal place of business at 2213 Chico Ave., So. El Monte, California 91733
for the emergency work on the storm drain pursuant to a bid from E.C.
Construction in the amount of $391,950.00.
D. The City desires to appropriate $450,742.50.00 (includes a 15%
contingency) in the Capital Projects Fund for the Emergency Construction
Contract with E.C. Construction Co. (draft attached as Exhibit “A”).
Section 2. The sum of four hundred fifty thousand, seven hundred and
forty two dollars and fifty cents ($450,742.50) is hereby appropriated to the
Capital Projects Fund funded from the transfer of General Fund reserves to fund
the Construction Contract with E.C. Construction Co.
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Section 3. This Resolution shall take effect immediately upon its
adoption by the City Council, and the City Clerk shall certify to the passage and
adoption of this Resolution and enter it into the book or original resolutions.
PASSED, APPROVED, AND ADOPTED this 13th day of March, 2023
______________________________
PAT WILSON
MAYOR
ATTEST:
___________________________
CHRISTIAN HORVATH
CITY CLERK
49
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
I certify that the foregoing Resolution No. 1328 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS. CALIFORNIA AUTHORIZING A
FISCAL YEAR 2022-2023 BUDGET MODIFICATION
TO INCREASE APPROPRIATIONS IN THE CAPITAL
PROJECTS FUND BY $450,742.50 FUNDED FROM A
TRANSFER OF GENERAL FUND RESERVES FOR
THE CONSTRUCTION CONTRACT WITH E.C.
CONSTRUCTION CO., FOR THE EMERGENCY
REPAIR OF THE STORM DRAIN FROM AT OR NEAR
1 MIDDLERIDGE LANE SOUTH TO 3 MIDDLERIDGE
LANE NORTH
was approved and adopted at a regular meeting of the City Council on March 13,
2023, by the following roll call vote:
AYES: Dieringer, Pieper, Mirsch, Black Mayor Wilson
NOES:
ABSENT:
ABSTAIN:
____________________________________
CHRISTIAN HORVATH, CITY CLERK
Christian Horvath, City Clerk
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Exhibit A
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CITY OF ROLLING HILLS
EMERGENCY CONSTRUCTION CONTRACT
BETWEEN THE CITY OF ROLLING HILLS
AND E.C. CONSTRUCTION CO.
STORM DRAIN REPAIRS
1. PARTIES AND DATE.
This Contract is made and entered into this ____ day of March , 2023 by and between the
City of Rolling Hills, a public agency and public corporation of the State of California (“City”) and
E.C. Construction Co., a California corporation, with its principal place of business at 2213 Chico
Ave., So. El Monte, California 91733 (“Contractor”). City and Contractor are sometimes
individually referred to as “Party” and collectively as “Parties” in this Contract.
2. RECITALS.
2.1 City. City is a public agency organized under the laws of the State of California,
with power to contract for services necessary to achieve its purpose.
2.2 Contractor. Contractor desires to perform and assume responsibility for the
provision of certain construction services required by the City on the terms and conditions set
forth in this Contract. Contractor represents that it is duly licensed and experienced in providing
storm drain related construction services to public clients, that it and its employees or
subcontractors have all necessary licenses and permits to perform the services in the State of
California, and that it is familiar with the plans of City .
2.3 Project. City desires to engage Contractor to render such services for the Storm
Drain Emergency Repairs (“Project”) as set forth in this Contract.
2.4 Project Documents & Certifications. Contractor has obtained, and delivers
concurrently herewith, a performance bond, a payment bond, and all insurance documentation,
as required by the Contract.
3. TERMS
3.1 Incorporation of Documents. This Contract includes and hereby incorporates in full
by reference the following documents, if applicable, including all exhibits, drawings, specifications
and documents therein, and attachments and addenda thereto:
• Services/Schedule (Exhibit “A”)
• Reserved (“Exhibit “B”)
• Special Conditions (Exhibit “C”)
• Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “D”)
• Public Works Contractor Registration Certification (Exhibit “E”)
• Payment and Performance Bonds (Exhibit “F”)
• Addenda
• Change Orders executed by the City
• Latest Edition of the Standard Specifications for Public Works Construction
(The Greenbook), Excluding Sections 1-9
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3.2 Contractor’s Basic Obligation; Scope of Work. Contractor promises and agrees, at
its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services,
and incidental and customary work necessary to fully and adequately complete the Project,
including all structures and facilities necessary for the Project or described in the Contract
(hereinafter sometimes referred to as the “Work”), for a Total Contract Price as specified pursuant
to this Contract. All Work shall be subject to, and performed in accordance with the above
referenced documents, as well as the exhibits attached hereto and incorporated herein by
reference. The plans and specifications for the Work are further described in Exhibit “B” attached
hereto and incorporated herein by this reference. Special Conditions, if any, relating to the Work
are described in Exhibit “C” attached hereto and incorporated herein by this reference.
3.2.1 Change in Scope of Work. Any change in the scope of the Work, method
of performance, nature of materials or price thereof, or any other matter materially affecting the
performance or nature of the Work shall not be paid for or accepted unless such change, addition
or deletion is approved in writing by a valid change order executed by the City. Should Contractor
request a change order due to unforeseen circumstances affecting the performance of the Work,
such request shall be made within five (5) business days of the date such circumstances are
discovered or shall waive its right to request a change order due to such circumstances. If the
Parties cannot agree on any change in price required by such change in the Work, the City may
direct the Contractor to proceed with the performance of the change on a time and materials
basis.
3.2.2 Substitutions/“Or Equal”. Pursuant to Public Contract Code Section
3400(b), the City may make a finding that designates certain products, things, or services by
specific brand or trade name. Unless specifically designated in this Contract, whenever any
material, process, or article is indicated or specified by grade, patent, or proprietary name or by
name of manufacturer, such Specifications shall be deemed to be used for the purpose of
facilitating the description of the material, process or article desired and shall be deemed to be
followed by the words “or equal.”
Contractor may, unless otherwise stated, offer for substitution any material,
process or article which shall be substantially equal or better in every respect to that so indicated
or specified in this Contract. However, the City may have adopted certain uniform standards for
certain materials, processes and articles. Contractor shall submit requests, together with
substantiating data, for substitution of any “or equal” material, process or article no later than
thirty-five (35) days after award of the Contract. To facilitate the construction schedule and
sequencing, some requests may need to be submitted before thirty-five (35) days after award of
Contract. Provisions regarding submission of “or equal” requests shall not in any way authorize
an extension of time for performance of this Contract. If a proposed “or equal” substitution request
is rejected, Contractor shall be responsible for providing the specified material, process or article.
The burden of proof as to the equality of any material, process or article shall rest with Contractor.
The City has the complete and sole discretion to determine if a material, process
or article is an “or equal” material, process or article that may be substituted. Data required to
substantiate requests for substitutions of an “or equal” material, process or article data shall
include a signed affidavit from Contractor stating that, and describing how, the substituted “or
equal” material, process or article is equivalent to that specified in every way except as listed on
the affidavit. Substantiating data shall include any and all illustrations, specifications, and other
relevant data including catalog information which describes the requested substituted “or equal”
material, process or article, and substantiates that it is an “or equal” to the material, process or
article. The substantiating data must also include information regarding the durability and lifecycle
cost of the requested substituted “or equal” material, process or article. Failure to submit all the
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required substantiating data, including the signed affidavit, to the City in a timely fashion will result
in the rejection of the proposed substitution.
Contractor shall bear all of the City’s costs associated with the review of
substitution requests. Contractor shall be responsible for all costs related to a substituted “or
equal” material, process or article. Contractor is directed to the Special Conditions (if any) to
review any findings made pursuant to Public Contract Code section 3400.
3.3 Period of Performance. Contractor shall perform and complete all Work under this
Contract beginning the effective date of the Notice to Proceed (“Contract Time”). Contractor shall
perform its Work in strict accordance with any completion schedule, construction schedule or
project milestones developed by the City. Such schedules or milestones may be included as part
of Exhibits “A” or “B” attached hereto, or may be provided separately in writing to Contractor.
Contractor agrees that if such Work is not completed within the aforementioned Contract Time
and/or pursuant to any such completion schedule, construction schedule or project milestones
developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that
the City will suffer damage.
3.4 Standard of Performance; Performance of Employees. Contractor shall perform all
Work under this Contract in a skillful and workmanlike manner, and consistent with the standards
generally recognized as being employed by professionals in the same discipline in the State of
California. Contractor represents and maintains that it is skilled in the professional calling
necessary to perform the Work. Contractor warrants that all employees and subcontractors shall
have sufficient skill and experience to perform the Work assigned to them. Finally, Contractor
represents that it, its employees and subcontractors have all licenses, permits, qualifications and
approvals of whatever nature that are legally required to perform the Work, including an City
Business License, and that such licenses and approvals shall be maintained throughout the term
of this Contract. As provided for in the indemnification provisions of this Contract, Contractor shall
perform, at its own cost and expense and without reimbursement from the City, any work
necessary to correct errors or omissions which are caused by Contractor’s failure to comply with
the standard of care provided for herein. Any employee who is determined by the City to be
uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who
fails or refuses to perform the Work in a manner acceptable to the City, shall be promptly removed
from the Project by Contractor and shall not be re-employed on the Work.
3.5 Control and Payment of Subordinates; Contractual Relationship. City retains
Contractor on an independent contractor basis and Contractor is not an employee of City. Any
additional personnel performing the work governed by this Contract on behalf of Contractor shall
at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages,
salaries, and other amounts due such personnel in connection with their performance under this
Contract and as required by law. Contractor shall be responsible for all reports and obligations
respecting such additional personnel, including, but not limited to: social security taxes, income
tax withholding, unemployment insurance, and workers’ compensation insurance.
3.6 City’s Basic Obligation. City agrees to engage and does hereby engage Contractor
as an independent contractor to furnish all materials and to perform all Work according to the
terms and conditions herein contained for the sum set forth above. Except as otherwise provided
in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory
performance by Contractor of the services and obligations required by this Contract, the below-
referenced compensation in accordance with compensation provisions set forth in the Contract.
3.7 Compensation and Payment.
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3.7.1 Amount of Compensation. As consideration for performance of the Work
required herein, City agrees to pay Contractor the Total Contract Price of Three Hundred and
Nineteen Thousand, Nine Hundred and Fifty Dollars ($319,950.00) (“Total Contract Price”)
provided that such amount shall be subject to adjustment pursuant to the applicable terms of this
Contract or written change orders approved and signed in advance by the City.
3.7.2 Payment of Compensation. If the Work is scheduled for completion in thirty
(30) or less calendar days, City will arrange for payment of the Total Contract Price upon
completion and approval by City of the Work. If the Work is scheduled for completion in more than
thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for herein. On
or before the fifth (5th) day of each month, Contractor shall submit to the City an itemized
application for payment in the format supplied by the City indicating the amount of Work completed
since commencement of the Work or since the last progress payment. These applications shall
be supported by evidence which is required by this Contract and such other documentation as
the City may require. The Contractor shall certify that the Work for which payment is requested
has been done and that the materials listed are stored where indicated. Contractor may be
required to furnish a detailed schedule of values upon request of the City and in such detail and
form as the City shall request, showing the quantities, unit prices, overhead, profit, and all other
expenses involved in order to provide a basis for determining the amount of progress payments.
3.7.3 Prompt Payment. City shall review and pay all progress payment requests
in accordance with the provisions set forth in Section 20104.50 of the California Public Contract
Code. However, no progress payments will be made for Work not completed in accordance with
this Contract. Contractor shall comply with all applicable laws, rules and regulations relating to
the proper payment of its employees, subcontractors, suppliers or others.
3.7.4 Contract Retentions. From each approved progress estimate, five percent
(5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All
Contract retention shall be released and paid to Contractor and subcontractors pursuant to
California Public Contract Code Section 7107.
3.7.5 Other Retentions. In addition to Contract retentions, the City may deduct
from each progress payment an amount necessary to protect City from loss because of: (1)
liquidated damages which have accrued as of the date of the application for payment; (2) any
sums expended by the City in performing any of Contractor’s obligations under the Contract which
Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied;
(4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for
the unpaid balance of the Total Contract Price or within the scheduled completion date; (6)
unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the
Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient
documentation as required by the Contract or by City during the prosecution of the Work; (9)
erroneous or false estimates by Contractor of the value of the Work performed; (10) any sums
representing expenses, losses, or damages as determined by the City, incurred by the City for
which Contractor is liable under the Contract; and (11) any other sums which the City is entitled
to recover from Contractor under the terms of the Contract or pursuant to state law, including
Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums
from a progress payment shall not constitute a waiver of the City’s right to such sums.
3.7.6 Substitutions for Contract Retentions. In accordance with California Public
Contract Code Section 22300, the City will permit the substitution of securities for any monies
withheld by the City to ensure performance under the Contract. At the request and expense of
Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with
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a state or federally chartered bank in California as the escrow agent, and thereafter the City shall
then pay such monies to Contractor as they come due. Upon satisfactory completion of the
Contract, the securities shall be returned to Contractor. For pu rposes of this Section and Section
22300 of the Public Contract Code, the term “satisfactory completion of the contract” shall mean
the time the City has issued written final acceptance of the Work and filed a Notice of Completion
as required by law and provisions of this Contract. Contractor shall be the beneficial owner of any
securities substituted for monies withheld and shall receive any interest thereon. The escrow
agreement used for the purposes of this Section shall be in the form provided by the City.
3.7.7 Title to Work. As security for partial, progress, or other payments, title to
Work for which such payments are made shall pass to the City at the time of payment. To the
extent that title has not previously been vested in the City by reason of payments, full title shall
pass to the City at delivery of the Work at the destination and time specified in this Contract. Such
transferred title shall in each case be good, free and clear from any and all security interests,
liens, or other encumbrances. Contractor promises and agrees that it will not pledge, hypothecate,
or otherwise encumber the items in any manner that would result in any lien, security interest,
charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by
the City, nor relieve Contractor from the responsibility to strictly comply with the Contract, and
shall not relieve Contractor of responsibility for any loss of or damage to items.
3.7.8 Labor and Material Releases. Contractor shall furnish City with labor and
material releases from all subcontractors performing work on, or furnishing materials for, the Work
governed by this Contract prior to final payment by City.
3.7.9 Prevailing Wages. Contractor is aware of the requirements of California
Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations,
Title 8, Section 16000 et seq., (“Prevailing Wage Laws”), which require the payment of prevailing
wage rates and the performance of other requirements on “public works” and “maintenance”
projects. Since the Services are being performed as part of an applicable “public works” or
“maintenance” project, as defined by the Prevailing Wage Laws, and since the total co mpensation
is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall
provide Contractor with a copy of the prevailing rates of per diem wages in effect at the
commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem
wages for each craft, classification or type of worker needed to execute the Services available to
interested parties upon request, and shall post copies at Contractor’s principal place of business
and at the project site . Contractor shall defend, indemnify and hold the City, its officials, officers,
employees and agents free and harmless from any claim or liability arising out of any failure or
alleged failure to comply with the Prevailing Wage Laws. Contractor and any subcontractor shall
forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than
the prevailing wage rates.
3.7.10 Apprenticeable Crafts. When Contractor employs workmen in an
apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the
California Labor Code with respect to the employment of properly registered apprentices upon
public works. The primary responsibility for compliance with said section for all apprenticeable
occupations shall be with Contractor. The Contractor or any subcontractor that is determined by
the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty
an amount not exceeding $100 for each full calendar day of noncompliance, or such greater
amount as provided by law.
3.7.11 Hours of Work. Contractor is advised that eight (8) hours labor constitutes
a legal day’s work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit
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a penalty of $25.00 per worker for each day that each worker is permitted to work more than
eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except
when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate
for that worker.
3.7.12 Payroll Records. Contractor and each subcontractor shall keep an accurate
payroll record, showing the name, address, social security number, work classification, straight
time and overtime hours worked each day and week, and the actual per diem wages paid to each
journeyman, apprentice, worker, or other employee employed by him or her in connection with
the public work. The payroll records shall be certified and shall be available for inspection at all
reasonable hours at the principal office of Contractor in the manner provided in Labor Code
section 1776 . In the event of noncompliance with the requirements of this section, Contractor shall
have 10 days in which to comply subsequent to receipt of written notice specifying in what
respects such Contractor must comply with this section. Should noncompliance still be evident
after such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for
each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The
amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found
to have violated the provisions of law regarding wages on Public Works with the intent to defraud
shall be ineligible to bid on Public Works contracts for a period of one to three years as determined
by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the
Division of Labor Standards Enforcement, such penalties shall be withheld from progress
payments then due. The responsibility for compliance with this section is on Contractor. The
requirement to submit certified payroll records directly to the Labor Commissioner under Labor
Code section 1771.4 shall not apply to work performed on a public works project that is exempt
pursuant to the small project exemption specified in Labor Code Section 1771.4.
3.7.13 Contractor and Subcontractor Registration. Pursuant to Labor Code
sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a
bid proposal, or enter into a contract to perform public work must be registered with the
Department of Industrial Relations. No bid will be accepted nor any contract entered into without
proof of the contractor’s and subcontractors’ current registration with the Department of Industrial
Relations to perform public work. Contractor is directed to review, fill out and execute the Public
Works Contractor Registration Certification attached hereto as Exhibit “E” prior to contract
execution. Notwithstanding the foregoing, the contractor registration requirements mandated by
Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works
project that is exempt pursuant to the small project exemption specified in Labor Code Sections
1725.5 and 1771.1.
3.7.14 Labor Compliance; Stop Orders. This Project is subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor’s
sole responsibility to evaluate and pay the cost of complying with all labor compliance
requirements under this Contract and applicable law. Any stop orders issued by the Department
of Industrial Relations against Contractor or any subcontractor that affect Contractor’s
performance of Work, including any delay, shall be Contractor’s sole responsibility. Any delay
arising out of or resulting from such stop orders shall be considered Contractor caused delay
subject to any applicable liquidated damages and shall not be compensable by the City.
Contractor shall defend, indemnify and hold the City , its officials, officers, employees and agents
free and harmless from any claim or liability arising out of stop orders issued by the Department
of Industrial Relations against Contractor or any subcontractor.
3.8 Performance of Work; Jobsite Obligations.
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3.8.1 Water Quality Management and Compliance.
3.8.1.1 Water Quality Management and Compliance. Contractor
shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance
with all local, state and federal laws, rules and regulations that may impact, or be implicated by
the performance of the Work including, without limitation, all applicable provisions of the Federal
Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality
Control Act (Cal Water Code §§ 13000-14950); local ordinances regulating discharges of storm
water; and any and all regulations, policies, or permits issued pursuant to any such authority
regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality
Control Act, to any ground or surface water in the State.
3.8.1.2 Compliance with the Statewide Construction General
Permit. Contractor shall comply with all conditions of the most recent iteration of the National
Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated
with Construction Activity, issued by the California State Water Resources Control Board
(“Permit”). It shall be Contractor’s sole responsibility to file a Notice of Intent and procure coverage
under the Permit for all construction activity which results in the disturbance of more than one
acre of total land area or which is part of a larger common area of development or sale. Prior to
initiating work, Contractor shall be solely responsible for preparing and implementing a Storm
Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be
responsible for procuring, implementing and complying with the provisions of the Permit and the
SWPPP, including the standard provisions, and monitoring and reporting requirements as
required by the Permit. The Permit requires the SWPPP to be a “living document” that changes
as necessary to meet the conditions and requirements of the job site as it progresses through
difference phases of construction and is subject to different weather conditions. It shall be
Contractor’s sole responsibility to update the SWPPP as necessary to address conditions at the
project site.
3.8.1.3 Other Water Quality Rules Regulations and Policies.
Contractor shall comply with the lawful requirements of any applicable municipality, drainage City,
or local agency regarding discharges of storm water to separate storm drain systems or other
watercourses under their jurisdiction, including applicable requirements in municipal storm water
management programs.
3.8.1.4 Cost of Compliance. Storm, surface, nuisance, or other
waters may be encountered at various times during construction of The Work. Therefore, the
Contractor, by submitting a Bid, hereby acknowledges that it has investigated the risk arising from
such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising
therefrom.
3.8.1.5 Liability for Non-Compliance. Failure to comply with the
Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this
Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its
directors, officials, officers, employees, volunteers and agents for any alleged violations. In
addition, City may seek damages from Contractor for any delay in completing the Work in
accordance with the Contract, if such delay is caused by or related to Contractor’s failure to
comply with the Permit.
3.8.1.6 Reservation of Right to Defend. City reserves the right to
defend any enforcement action brought against the City for Contractor’s failure to comply with the
Permit or any other relevant water quality law, regulation, or policy. Pursuant to the
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indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to
reimburse the City for the costs (including the City’s attorney’s fees) associated with, any
settlement reached between the City and the relevant enforcement entity.
3.8.1.7 Training. In addition to the standard of performance
requirements set forth in paragraph 3.4, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Work assigned to them
without impacting water quality in violation of the laws, regulations and policies described in
paragraph 3.8.1. Consultant further warrants that it, its employees and subcontractors will receive
adequate training, as determined by City, regarding the requirements of the laws, regulations and
policies described in paragraph 3.8.1 as they may relate to the Work provided under this
Agreement. Upon request, City will provide the Contractor with a list of training programs that
meet the requirements of this paragraph.
3.8.2 Safety. Contractor shall execute and maintain its work so as to avoid injury
or damage to any person or property. Contractor shall comply with the requirements of the
specifications relating to safety measures applicable in particular operations or kinds of work. In
carrying out its Work, 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,
adequate life protection and lifesaving equipment; adequate illumination for underground and
night operations; instructions in accident prevention for all employees, such as machinery guards,
safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching
and shoring, fall protection and other safety devices, equipment and wearing apparel as are
necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the
proper inspection and maintenance of all safety measures. Furthermore, Contractor shall
prominently display the names and telephone numbers of at least two medical doctors practicing
in the vicinity of the Project, as well as the telephone number of the local ambulance service,
adjacent to all telephones at the Project site.
3.8.3 Laws and Regulations. Contractor shall keep itself fully informed of and in
compliance with all local, state and federal laws, rules and regulations in any manner affecting
the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give
all notices required by law. Contractor shall be liable for all violations of such laws and regulations
in connection with Work. If Contractor observes that the drawings or specifications are at variance
with any law, rule or regulation, it shall promptly notify the City in writing. Any necessary changes
shall be made by written change order. If Contractor performs any work knowing it to be contrary
to such laws, rules and regulations and without giving written notice to the City, Contractor shall
be solely responsible for all costs arising therefrom. City is a public entity of the State of California
subject to certain provisions of the Health & Safety Code, Government Code, Public Contract
Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law
applicable to the public contracts of a municipality are a part of this Contract to the same extent
as though set forth herein and will be complied with. Contractor shall defend, indemnify and hold
City, its officials, directors, officers, employees and agents free and harmless, pursuant to the
indemnification provisions of this Contract, from any claim or liability arising out of any failure or
alleged failure to comply with such laws, rules or regulations.
3.8.4 Permits and Licenses. Contractor shall be responsible for securing City
permits and licenses necessary to perform the Work described herein, including, but not limited
to, an City Business License. While Contractor will not be charged a fee for any City permits,
Contractor shall pay the City’s applicable business license fee. Any ineligible contractor or
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subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this
Project.
3.8.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the
Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more
in depth, Contractor shall comply with all applicable provisions of the California Labor Code,
including Section 6705. To this end, Contractor shall submit for City’s review and approval 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.
3.8.6 Hazardous Materials and Differing Conditions. As required by California
Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations
that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to
disturbance of any conditions, notify City of: (1) any material discovered in excavation that
Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II
or Class III disposal site; (2) subsurface or latent physical conditions at the site differing from
those indicated by City; and (3) unknown physical conditions of an unusual nature at the site,
significantly different from those ordinarily encountered in such contract work. Upon notification,
City shall promptly investigate the conditions to determine whether a change order is appropriate.
In the event of a dispute, Contractor shall not be excused from any scheduled completion date
and shall proceed with all Work to be performed under the Contract, but shall retain all rights
provided by the Contract or by law for making protests and resolving the dispute.
3.8.7 Underground Utility Facilities. To the extent required by Section 4215 of the
California Government Code, City shall compensate Contractor for the costs of: (1) locating and
repairing damage to underground utility facilities not caused by the failure of Contractor to
exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in
the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall
not be assessed liquidated damages for delay caused by failure of City to provide for removal or
relocation of such utility facilities.
3.8.8 Air Quality. Contractor must fully comply with all applicable laws, rules and
regulations in furnishing or using equipment and/or providing services, including, but not limited
to, emissions limits and permitting requirements imposed by the California Air Resources Board
(CARB). Although CARB limits and requirements are more broad, Contractor shall specifically be
aware of their application to "portable equipment", which definition is considered by CARB to
include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against
any fines or penalties imposed by CARB, or any other governmental or regulatory agency for
violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others
for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.8.9 State Recycling Mandates. Contractor shall comply with State Recycling
Mandates. Any recyclable materials/debris collected by the contractor that can be feasibly
diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.
3.9 Completion of Work. When Contractor determines that it has completed the Work
required herein, Contractor shall so notify City in writing and shall furnish all labor and material
releases required by this Contract. City shall thereupon inspect the Work. If the Work is not
acceptable to the City, the City shall indicate to Contractor in writing the specific portions or items
of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed
the incomplete or unsatisfactory Work, Contractor may request a re-inspection by the City. Once
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the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to
be paid, less any amount which City may be authorized or directed by law to retain. Payment of
retention proceeds due to Contractor shall be made in accordance with Section 7107 of the
California Public Contract Code.
3.10 Claims; Government Code Claim Compliance.
3.10.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California
Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial
supervised mediation, and judicial arbitration to resolve disputes on construction claims of
$375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes
a process for negotiation and mediation to resolve disputes on construction claims. The intent of
this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public
Contract Code. This Section shall be construed to be consistent with said statutes.
3.10.2 Claims. For purposes of this Section, “Claim” means a separate demand
by the Contractor, after a change order duly requested in accordance with the terms of this
Contract has been denied by the City, for (A) a time extension, (B) payment of money or damages
arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an
amount the payment of which is disputed by the City. Claims governed by this Section may not
be filed unless and until the Contractor completes all procedures for giving notice of delay or
change and for the requesting of a time extension or change order, including but not necessarily
limited to the change order procedures contained herein, and Contractor’s request for a change
has been denied in whole or in part. Claims governed by this Section must be filed no later than
the date of final payment. The claim shall be submitted in writing to the City and shall include on
its first page the following in 16 point capital font: “THIS IS A CLAIM.” Furthermore, the claim shall
include the documents necessary to substantiate the claim. Nothing in this Section is intended to
extend the time limit or supersede notice requirements otherwise provided by contract for the filing
of claims, including all requirements pertaining to compensation or payment for extra Work,
disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall
bar any claims or subsequent lawsuits for compensation or payment thereon.
3.10.3 Supporting Documentation. The Contractor shall submit all claims in the
following format:
3.10.3.1 Summary of claim merit and price, reference Contract
Document provisions pursuant to which the claim is made
3.10.3.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
3.10.3.3 Chronology of events and correspondence
3.10.3.4 Analysis of claim merit
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3.10.3.5 Analysis of claim cost
3.10.3.6 Time impact analysis in CPM format
3.10.4 City’s Response. Upon receipt of a claim pursuant to this Section, City shall
conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide
the Contractor a written statement identifying what portion of the claim is disputed and what
portion is undisputed. Any payment due on an undisputed portion of the claim will be processed
and made within 60 days after the public entity issues its written statement.
3.10.4.1 If City needs app roval from its governing body to provide the
Contractor a written statement identifying the disputed portion and the undisputed portion of the
claim, and the governing body does not meet within the 45 days or within the mutually agreed to
extension of time following receipt of a claim sent by registered mail or certified mail, return receipt
requested, City shall have up to three days following the next duly publicly noticed meeting of the
governing body after the 45 -day period, or extension, expires to provide the Contractor a written
statement identifying the disputed portion and the undisputed portion.
3.10.4.2 Within 30 days of receipt of a claim, City may request in
writing additional documentation supporting the claim or relating to defenses or claims City may
have against the Contractor. If additional information is thereafter required, it shall be requested
and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.
3.10.4.3 City’s written response to the claim, as further documented,
shall be submitted to the Contractor within 30 days (if the claim is less than $50,000, within 15
days) after receipt of the further documentation, or within a period of time no greater than that
taken by the Contractor in producing the additional information or requested documentation,
whichever is greater.
3.10.5 Meet and Confer. If the Contractor disputes City’s written response, or City
fails to respond within the time prescribed, the Contractor may so notify City, in writing, either
within 15 days of receipt of City’s response or within 15 days of City’s failure to respond within the
time prescribed, respectively, and demand an informal conference to meet and confer for
settlement of the issues in dispute. Upon receipt of a demand, City shall schedule a meet and
confer conference within 30 days for settlement of the dispute.
3.10.6 Mediation. Within 10 business days following the conclusion of the meet
and confer conference, if the claim or any portion of the claim remains in dispute, City shall provide
the Contractor a written statement identifying the portion of the claim that remains in dispute and
the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be
processed and made within 60 days after City issues its written statement. Any disputed portion
of the claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation,
with City and the Contractor sharing the associated costs equally. City and Contractor shall
mutually agree to a mediator within 10 business days after the disputed portion of the claim has
been identified in writing, unless the parties agree to select a mediator at a later time.
3.10.6.1 If the Parties cannot agree upon a mediator, each Party
shall select a mediator and those mediators shall select a qualified neutral third party to mediate
with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged
by its respective mediator in connection with the selection of the neutral mediator.
3.10.6.2 For purposes of this section, mediation includes any
nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in
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which an independent third party or board assists the Parties in dispute resolution through
negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes
in this section.
3.10.6.3 Unless otherwise agreed to by City and the Contractor in
writing, the mediation conducted pursuant to this section shall excuse any further obligation under
Section 20104.4 to mediate after litigation has been commenced.
3.10.6.4 The mediation shall be held no earlier than the date the
Contractor completes the Work or the date that the Contractor last performs Work, whichever is
earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new
unrelated claim arises after mediation is completed.
3.10.7 Procedures After Mediation. If following the mediation, the claim or any
portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1 (commencing
with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title
1 of the Government Code. For purposes of those provisions, the running of the period of time
within which a claim must be filed shall be tolled from the time the Contractor submits his or her
written claim pursuant to subdivision (a) until the time the claim is denied, including any period of
time utilized by the meet and confer conference or mediation.
3.10.8 Civil Actions. The following procedures are established for all civil actions
filed to resolve claims subject to this Section:
3.10.8.1 Within 60 days, but no earlier than 30 days, following the
filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless
waived by mutual stipulation of both parties or unless mediation was held prior to commencement
of the action in accordance with Public Contract Code section 9204 and the terms of these
procedures.. The mediation process shall provide for the selection within 15 days by both parties
of a disinterested third person as mediator, shall be commenced within 30 days of the submittal,
and shall be concluded within 15 days from the commencement of the mediation unless a time
requirement is extended upon a good cause showing to the court.
3.10.8.2 If the matter remains in dispute, the case shall be submitted
to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part
3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil
Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4
of the Code of Civil Procedure ) shall apply to any proceeding brought under this subdivision
consistent with the rules pertaining to judicial arbitration.
3.10.8.3 In addition to Chapter 2.5 (commencing with Section
1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible,
be experienced in construction law, and (B) any party appealing an arbitration award who does
not obtain a more favorable judgment shall, in addition to payment of costs and fees under that
chapter, also pay the attorney’s fees on appeal of the other party.
3.10.9 Government Code Claims. In addition to any and all contract requirements
pertaining to notices of and requests for compensation or payment for extra work, disputed work,
claims and/or changed conditions, Contractor must comply with the claim procedures set forth in
Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such
Government Code claims and any subsequent lawsuit based upon the Government Code claims
shall be limited to those matters that remain unresolved after all procedures pertaining to extra
work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no
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such Government Code claim is submitted, or if any prerequisite contractual requirements are not
otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining
a valid lawsuit against the City. A Government Code claim must be filed no earlier than the date
the work is completed or the date the Contractor last performs work on the Project, whichever
occurs first. A Government Code claim shall be inclusive of all unresolved claims unless a new
unrelated claim arises after the Government Code claim is submitted.
3.10.10 Non-Waiver. City’s failure to respond to a claim from the Contractor
within the time periods described in this Section or to otherwise meet the time requirements of
this Section shall result in the claim being deemed rejected in its entirety. City’s failure to respond
shall not waive City’s rights to any subsequent procedures for the resolution of disputed claims.
3.11 Loss and Damage. Except as may otherwise be limited by law, Contractor shall be
responsible for all loss and damage which may arise out of the nature of the Work agreed to
herein, or from the action of the elements, or from any unforeseen difficulties which may arise or
be encountered in the prosecution of the Work until the same is fully completed and accepted by
City. In the event of damage proximately caused by an Act of God, as defined by Section 7105 of
the Public Contract Code, the City may terminate this Contract pursuant to Section 3.17.3;
provided, however, that the City needs to provide Contractor with only one (1) day advanced
written notice.
3.12 Indemnification.
3.12.1 Scope of Indemnity. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, elected officials, employees,
agents and authorized volunteers free and harmless from any and all claims, demands, causes
of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees,
settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including
wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to
any alleged acts, errors or omissions, or willful misconduct of Contractor, its officials, officers,
employees, subcontractors, consultants or agents in connection with the performance of the
Contractor’s services, the Project or this Agreement, including without limitation the payment of
all consequential damages, expert witness fees and attorneys’ fees and other related costs and
expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782,
Contractor’s indemnity obligation shall not apply to liability for damages for death or bodily injury
to persons, injury to property, or any other loss, damage or expense arising from the sole or active
negligence or willful misconduct of the City or the City’s agents, servants, or independent
contractors who are directly responsible to the City, or for defects in design furnished by those
persons.
3.12.2 Additional Indemnity Obligations. Contractor shall defend, with
counsel of City’s choosing and at Contractor's own cost, expense and risk, any and all Claims
covered by this section that may be brought or instituted against City or its officials, employees,
agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment,
award or decree that may be rendered against City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall
also reimburse City for the cost of any settlement paid by City or its officials, employees, agents
and authorized volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for City's attorney's fees and costs, including expert witness
fees. Contractor shall reimburse City and its officials, employees, agents and authorized
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall
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not be restricted to insurance proceeds, if any, received by the City, its officials, employees,
agents and authorized volunteers.
3.13 Insurance.
3.13.1 Time for Compliance. Contractor shall not commence Work under
this Contract until it has provided evidence satisfactory to the City that it has secured all insurance
required under this section. In addition, Contractor shall not allow any subcontractor to commence
work on any subcontract until it has provided evidence satisfactory to the City that the
subcontractor has secured all insurance required under this section. Failure to provide and
maintain all required insurance shall be grounds for the City to terminate this Contract for cause.
3.13.2 Minimum Requirements. Contractor shall, at its expense, procure
and maintain for the duration of the Contract insurance against claims for injuries to persons or
damages to property which may arise from or in connection with the performance of the Work
hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor
shall also require all of its subcontractors to procure and maintain the same insurance for the
duration of the Contract. Such insurance shall meet at least the following minimum levels of
coverage:
3.13.2.1 Minimum Scope of Insurance. Coverage shall be at least as
broad as the latest version of the following: (1) General Liability: Insurance Services Office
Commercial General Liability coverage (occurrence form CG 00 01) OR Insurance Services Office
Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for
operations of designated contractor); (2) Automobile Liability: Insurance Services Office Business
Auto Coverage form number CA 00 01, code 1 (any auto); and (3) Workers’ Compensation and
Employer’s Liability: Workers’ Compensation insurance as required by the State of California and
Employer’s Liability Insurance. Policies shall not contain exclusions contrary to this Contract.
3.13.2.2 Minimum Limits of Insurance. Contractor shall maintain
limits no less than: (1) General Liability: $5,000,000 per occurrence and $5,000,000 aggregate
for bodily injury, personal injury and property damage; (2) Automobile Liability: $5,000,000 per
accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s
Liability: Workers’ compensation limits as required by the Labor Code of the State of California.
Employer’s Liability limits of $1,000,000 each accident, policy limit bodily injury or disease, and
each employee bodily injury or disease. Defense costs shall be available in addition to the limits.
Notwithstanding the minimum limits specified herein, any available coverage shall be provided to
the parties required to be named as additional insureds pursuant to this Contract.
3.13.3 Insurance Endorsements. The insurance policies shall contain the
following provisions, or Contractor shall provide endorsements (amendments) on forms supplied
or approved by the City to add the following provisions to the insurance policies:
3.13.3.1 General Liability. (1) Such policy shall give the City, its
officials, employees, agents and authorized volunteers additional insured status using ISO
endorsements CG20 10 10 01 plus CG20 37 10 01, or endorsements providing the exact same
coverage, with respect to the Work or operations performed by or on behalf of Contractor,
including materials, parts or equipment furnished in connection with such work; (2) all policies
shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by
the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any
person named as an additional insured pursuant to this Contract, and Contractor agrees to waive
all such rights of subrogation; and (3) the insurance coverage shall be primary insurance as
respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall
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stand in an unbroken chain of coverage excess of Contractor’s scheduled underlying coverage.
Any insurance or self-insurance maintained by the City, its officials, employees, agents and
authorized volunteers shall be excess of Contractor’s insurance and shall not be called upon to
contribute with it.
3.13.3.2 Automobile Liability. (1) Such policy shall give the City, its
officials, employees, agents and authorized volunteers additional insured status with respect to
the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by Contractor or for which Contractor is responsible; (2) all policies shall waive
or shall permit Contractor to waive all rights of subrogation which may be obtained by the
Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person
named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such
rights of subrogation; and (3) the insurance coverage shall be primary insurance as respects the
City, its officials, employees, agents and authorized volunteers, or if excess, shall stand in an
unbroken chain of coverage excess of Contractor’s scheduled underlying coverage. Any
insurance or self-insurance maintained by the City, its officials, employees, agents and authorized
volunteers shall be excess of Contractor’s insurance and shall not be called upon to contribute
with it in any way.
3.13.3.3 Workers’ Compensation and Employer’s Liability Coverage.
The insurer shall agree to waive all rights of subrogation against the City, its officials, employees,
agents and authorized volunteers for losses paid under the terms of the insurance policy which
arise from work performed by Contractor.
3.13.3.4 All Coverages. Each insurance policy required by this
Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced
or canceled except after thirty (30) days prior written notice by certified mail, return receipt
requested, has been given to the City; and (2) any failure to comply with reporting or other
provisions of the policies, including breaches of warranties, shall not affect coverage provided to
the City, its officials, employees, agents and authorized volunteers.
3.13.4 Separation of Insureds; No Special Limitations. All insurance
required by this Section shall contain standard separation of insureds provisions. In addition, such
insurance shall not contain any special limitations on the scope of protection afforded to the City,
its officials, employees, agents and authorized volunteers.
3.13.5 Deductibles and Self-Insurance Retentions. Any deductibles or self-
insured retentions must be declared to and approved by the City. Contractor shall guarantee that,
at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects the City, its officials, employees, agents and authorized volunteers;
or (2) the Contractor shall procure a bond or other financial guarantee acceptable to the City
guaranteeing payment of losses and related investigation costs, claims and administrative and
defense expenses.
3.13.6 Acceptability of Insurers. Insurance is to be placed with insurers
with a current A.M. Best’s rating no less than A:VII, licensed to do business in California, and
satisfactory to the City. Exception may be made for the State Compensation Insurance Fund when
not specifically rated.
3.13.7 Verification of Coverage. Contractor shall furnish City with original
certificates of insurance and endorsements effecting coverage required by this Contract on forms
satisfactory to the City. The certificates and endorsements for each insurance policy shall be
signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms
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supplied or approved by the City. All certificates and endorsements must be received and
approved by the City before work commences. The City reserves the right to require complete,
certified copies of all required insurance policies, at any time.
3.13.8 Subcontractors. All subcontractors shall meet the requirements of
this Section before commencing Work. Contractor shall furnish separate certificates and
endorsements for each subcontractor. Subcontractor policies of General Liability insurance shall
name the City, its officials, employees, agents and authorized volunteers as additional insureds
using form ISO 20 38 04 13 or endorsements providing the exact same coverage. All coverages
for subcontractors shall be subject to all of the requirements stated herein except as otherwise
agreed to by the City in writing.
3.13.9 Reporting of Claims. Contractor shall report to the City, in addition
to Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with
the Work under this Contract.
3.14 Bond Requirements.
3.14.1 Payment Bond. If required by law or otherwise specifically requested by
City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute
and provide to City concurrently with this Contract a Payment Bond in an amount required by the
City and in a form provided or approved by the City. If such bond is required, no payment will be
made to Contractor until the bond has been received and approved by the City.
3.14.2 Performance Bond. If specifically requested by City in Exhibit “C” attached
hereto and incorporated herein by reference, Contractor shall execute and provide to City
concurrently with this Contract a Performance Bond in an amount required by the City and in a
form provided or approved by the City. If such bond is required, no payment will be made to
Contractor until the bond has been received and approved by the City.
3.14.3 Bond Provisions. Should, in City’s sole opinion, any bond become
insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the
effected bond within (ten) 10 days of receiving notice from City. In the event the surety or
Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written
notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least
ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due
or will be made under this Contract until any replacement bonds required by this Section are
accepted by the City. To the extent, if any, that the Total Contract Price is increased in accordance
with the Contract, Contractor shall, upon request of the City, cause the amount of the bond to be
increased accordingly and shall promptly deliver satisfactory evidence of such increase to the
City. If Contractor fails to furnish any required bond, the City may terminate the Contract for cause.
3.14.4 Surety Qualifications. Only bonds executed by an admitted surety insurer,
as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a
California-admitted surety insurer issuing bonds does not meet these requirements, the insurer
will be considered qualified if it is in conformance with Section 995.660 of the California Code of
Civil Procedure, and proof of such is provided to the City.
3.15 Warranty. Contractor warrants all Work under the Contract (which for purposes of
this Section 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 year (or
the period of time specified elsewhere in the Contract or in any guarantee or warranty provided
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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 the City of any defect in the Work or non-conformance of the Work to the Contract,
commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty
at its sole cost and expense. Contractor shall act sooner as requested by the 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 its 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 year period, commencing with the date of acceptance of such corrected Work.
Contractor shall perform such tests as the City may require to verify that any corrective actions,
including, without limitation, redesign, repairs, and replacements comply with the requirements of
the Contract. 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 the City, regardless of whether or not such
warranties and guarantees have been transferred or assigned to the City by separate agreement
and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the
City. In the event that Contractor fails to perform its obligations under this Section, or under any
other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the 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 the City for any expenses incurred hereunder upon
demand.
3.16 Employee/Labor Certifications.
3.16.1 Contractor’s Labor Certification. By its signature hereunder, Contractor
certifies that he is aware of the provisions of Section 3700 of the California Labor Code which
require every employer to be insured against liability for Worker’s Compensation or to undertake
self -insurance in accordance with the provisions of that Code, and agrees to comply with such
provisions before commencing the performance of the Work. A certification form for this purpose,
which is attached to this Contract as Exhibit “D” and incorporated herein by reference, shall be
executed simultaneously with this Contract.
3.16.2 Equal Opportunity Employment. Contractor represents that it is an equal
opportunity employer and that it shall not discriminate against any employee or applicant for
employment because of race, religion, color, national origin, ancestry, sex, age or other interests
protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be
limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination.
3.16.3 Verification of Employment Eligibility. By executing this Contract,
Contractor verifies that it fully complies with all requirements and restrictions of state and federal
law respecting the employment of undocumented aliens, including, but not limited to, the
Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall
require all subconsultants and sub-subconsultants to comply with the same.
3.17 General Provisions.
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3.17.1 City’s Representative. The City hereby designates the General Manager,
or his or her designee, to act as its representative for the performance of this Contract (“City’s
Representative”). City’s Representative shall have the power to act on behalf of the City for all
purposes under this Contract. Contractor shall not accept direction or orders from any person
other than the City’s Representative or his or her designee.
3.17.2 Contractor’s Representative. Before starting the Work, Contractor shall
submit in writing the name, qualifications and experience of its proposed representative who shall
be subject to the review and approval of the City (“′Contractor’s Representative”). Following
approval by the City, Contractor’s Representative shall have full authority to represent and act on
behalf of Contractor for all purposes under this Contract. Contractor’s Representative shall
supervise and direct the Work, using his best skill and attention, and shall be responsible for all
construction means, methods, techniques, sequences and procedures and for the satisfactory
coordination of all portions of the Work under this Contract. Contractor’s Representative shall
devote full time to the Project and either he or his designee, who shall be acceptable to the City,
shall be present at the Work site at all times that any Work is in progress and at any time that any
employee or subcontractor of Contractor is present at the Work site. Arrangements for responsible
supervision, acceptable to the City, shall be made for emergency Work which may be required.
Should Contractor desire to change its Contractor’s Representative, Contractor shall provide the
information specified above and obtain the City’s written approval.
3.17.3 Termination. This Contract may be terminated by City at any time, either
with our without cause, by giving Contractor three (3) days advance written notice. In the event of
termination by City for any reason other than the fault of Contractor, City shall pay Contractor for
all Work performed up to that time as provided herein. In the event of breach of the Contract by
Contractor, City may terminate the Contract immediately without notice, may reduce payment to
Contractor in the amount necessary to offset City’s resulting damages, and may pursue any other
available recourse against Contractor. Contractor may not terminate this Contract except for
cause. In the event this Contract is terminated in whole or in part as provided, City may procure,
upon such terms and in such manner as it may determine appropriate, services similar to those
terminated. Further, if this Contract is terminated as provided, City may require Contractor to
provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter
prepared or built by Contractor in connection with its performance of this Contract.
3.17.4 Contract Interpretation. Should any question arise regarding the meaning
or import of any of the provisions of this Contract or written or oral instructions from City, the
matter shall be referred to City’s Representative, whose decision shall be binding upon
Contractor.
3.17.5 Anti-Trust Claims. This provision shall be operative if this Contract is
applicable to California Public Contract Code Section 7103.5. In entering into this Contract to
supply goods, services or materials, Contractor hereby offers and agrees to assign to the 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. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section
16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of
goods, services, or materials pursuant to the Contract. This assignment shall be made and
become effective at the time the City tender final payment to Contractor, without further
acknowledgment by the Parties.
3.17.6 Notices. All notices hereunder and communications regarding
interpretation of the terms of the Contract or changes thereto shall be provided by the mailing
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thereof by registered or certified mail, return receipt requested, postage prepaid and addressed
as follows:
CONTRACTOR:
E.C. Construction Co.
2213 Chico Ave.
So. El Monte, CA 91733
Attn: James Bleecker
CITY:
City of Rolling Hills
2 Portuguese Bend Rd
Rolling Hills, CA 90274
Attn: City Manager
Any notice so given shall be considered received by the other Party three (3) days after deposit
in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice
shall be deemed adequate notice on the date actual notice occurred, regardless of the method of
service.
3.17.7 Time of Essence . Time is of the essence in the performance of this
Contract.
3.17.8 Assignment Forbidden. Contractor shall not, either voluntarily or by action
of law, assign or transfer this Contract or any obligation, right, title or interest assumed by
Contractor herein without the prior written consent of City. If Contractor attempts an assignment
or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option,
terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to
Contractor or its assignee or transferee.
3.17.9 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.17.10 Laws, Venue, and Attorneys’ Fees. This Agreement shall be
interpreted in accordance with the laws of the State of California. If any action is brought to
interpret or enforce any term of this Agreement, the action shall be brought in a state or federal
court situated in the County of Los Angeles, State of California.
3.17.11 Counterparts. This Contract may be executed in counterparts, each
of which shall constitute an original.
3.17.12 Successors. The Parties do for themselves, their heirs, executors,
administrators, successors, and assigns agree to the full performance of all of the provisions
contained in this Contract.
3.17.13 [Reserved]
3.17.14 Solicitation. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid
nor has it agreed to pay any company or person, other than a bona fide employee working solely
for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
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contingent upon or resulting from the award or making of this Contract. For breach or violation of
this warranty, City shall have the right to terminate this Contract without liability.
3.17.15 Conflict of Interest. Contractor maintains and warrants that it has
not employed nor retained any company or person, other than a bona fide employee working
solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has
not paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. For breach or violation
of this warranty, City shall have the right to rescind this Agreement without liability. For the term
of this Contract, no director, official, officer or employee of City, during the term of his or her
service with City, shall have any direct interest in this Contract, or obtain any present or anticipated
material benefit arising therefrom. In addition, Contractor agrees to file, or to cause its employees
or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required
under state law in the performance of the Work.
3.17.16 Certification of License.
3.17.16.1 Contractor certifies that as of the date of execution of this
Contract, Contractor has a current contractor’s license of the classification indicated below under
Contractor’s signature.
3.17.16.2 Contractors are required by law to be licensed and regulated
by the Contractors’ State License Board which has jurisdiction to investigate complaints against
contractors if a complaint regarding a patent act or omission is filed within four (4) years of the
date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural
defects must be filed within ten (10) years of the date of the alleged violation. Any questions
concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O.
Box 26000, Sacramento, California 95826.
3.17.17 Authority to Enter Contract. Each Party warrants that the individuals
who have signed this Contract have the legal power, right and authority to make this Contract and
bind each respective Party.
3.17.18 Entire Contract; Modification. This Contract contains the entire
agreement of the Parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Contract may only be modified by a writing
signed by both Parties.
3.17.19 Non-Waiver. None of the provisions of this Agreement shall be
considered waived by either party, unless such waiver is specifically specified in writing.
3.17.20 City’s Right to Employ Other Contractors. City reserves right to
employ other contractors in connection with this Project or other projects..
[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE FOR EMERGENCY CONSTRUCTION CONTRACT
BETWEEN THE CITY OF ROLLING HILLS
AND E.C. CONSTRUCTION CO.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the
___ day of March, 2023.
CITY OF ROLLING HILLS E.C. CONSTRUCTION CO.
By: By:
City Manager Its:
Printed Name:
ATTEST:
By:
City Clerk
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EXHIBIT “A”
SERVICES / SCHEDULE
1. Overview
A. The following work scope addresses methods and procedures for the repair
of the storm drain from at or near 1 Middleridge Lane South to 3 Middleridge
Lane North.
2. Scope of Work
A. Storm Drain Repair and Lining:
(i) Excavate, remove soil and collapsed 24” CMP at 3 locations;
(ii) Install new 24” CMP and backfill with clean soil at 3 locations, 20
LF at each location for a total of 60 LF;
(iii) Clean and dispose of all trash and debris from existing storm drain
line – approximately 740 LF;
(iv) Install sand slury and sand bags to fill voids at bottom of existing
CMP – approximately 740 LF;
(v) Install CIPP liner to entire CMP storm drain system along 1
Middleridge S – approximately 820 LF. This includes all laterals under the street;
(vi) Provide flag men and traffic control;
(vii) Restore trail areas and landscaping at entry and exit pits required
for pipe lining.
3. Schedule
A. [INSERT SCHEDULE]
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EXHIBIT “B”
RESERVED
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EXHIBIT “C”
SPECIAL CONDITIONS
ARTICLE 1. BONDS
Within ten (10) calendar days from the date the Contractor is notified of award of the Contract,
the Contractor shall deliver to the City four identical counterparts of the Performance Bond and
Payment Bond on the forms supplied by the City and included as Exhibit “F” to the Contract.
Failure to do so may, in the sole discretion of City, result in the forfeiture of Contractor’s bid
security. The surety supplying the bond must be an admitted surety insurer, as defined in Code
of Civil Procedure Section 995.120, authorized to do business as such in the State of California
and satisfactory to the City. The Performance Bond and the Payment Bond shall be for one
hundred percent (100%) of the Total Contract Price.
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EXHIBIT “D”
CERTIFICATION
LABOR CODE - SECTION 1861
I, the undersigned Contractor, am aware of the provisions of Section 3700, et seq., of the
California Labor Code which require every employer to be insured against liability for Worker’s
Compensation or to undertake self -insurance in accordance with the provisions of the Code, and
I, the undersigned Contractor, agree to and will comply with such provisions before commencing
the performance of the Work on this Contract.
E.C. Construction Co.
By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
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EXHIBIT “E”
PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish
to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be
registered with the Department of Industrial Relations. See http://www.dir.ca.gov/Public-
Works/PublicWorks.html for additional information.
No bid will be accepted nor any contract entered into without proof of the contractor’s and
subcontractors’ current registration with the Department of Industrial Relations to perform public
work.
Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code
sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of
Industrial Relations.1
Name of Contractor:
DIR Registration Number:
DIR Registration Expiration:_________________________
Small Project Exemption: _____ Yes or _____ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further
acknowledges:
• Contractor shall maintain a current DIR registration for the duration of the project.
• Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in
its contract with subcontractors and ensure that all subcontractors are registered at the
time of bid opening and maintain registration status for the duration of the project.
• Failure to submit this form or comply with any of the above requirements may result in a
finding that the bid is non-responsive.
Name of Contractor
Signature
Name and Title
Dated
1 If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under
Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project Exemption.”
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EXHIBIT “F”
PAYMENT AND PERFORMANCE BONDS
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PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Rolling Hills (hereinafter referred to as “City”) has
awarded to ____________________, (hereinafter referred to as the “Contractor”)
_______________________ an agreement for ______________________________
(hereinafter referred to as the “Project”).
WHEREAS, the work to be performed by the Contractor is more particularly set
forth in the Contract Documents for the Project dated ________________, (hereinafter
referred to as “Contract Documents”), the terms and conditions of which are expressly
incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the
terms thereof and to furnish a bond for the faithful performance of said Contract
Documents.
NOW, THEREFORE, we, _______________, the undersigned Contractor and
_____________________________________________ as Surety, a corporation
organized and duly authorized to transact business under the laws of the State of
California, are held and firmly bound unto the City in the sum of
___________________________ DOLLARS, ($____________), said sum being not less
than one hundred percent (100%) of the total amount of the Contract, for which amount
well and truly to be made, we bind ourselves, our heirs, executors and administrators,
successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or
its heirs, executors, administrators, successors or assigns, shall in all things stand to and
abide by, and well and truly keep and perform the covenants, conditions and agreements
in the Contract Documents and any alteration thereof made as therein provided, on its
part, to be kept and performed at the time and in the manner therein specified, and in all
respects according to their intent and meaning; and shall faithfully fulfill all obligations
including the one-year guarantee of all materials and workmanship; and shall indemnify
and save harmless the City, its officers and agents, as stipulated in said Contract
Documents, then this obligation shall become null and void; otherwise it shall be and
remain in full force and effect.
As a condition precedent to the satisfactory completion of the Contract Documents,
unless otherwise provided for in the Contract Documents, the above obligation shall hold
good for a period of one (1) year after the acceptance of the work by City, during which
time if Contractor shall fail to make full, complete, and satisfactory repair and
replacements and totally protect the City from loss or damage resulting from or caused
by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill
all such obligations. The obligations of Surety hereunder shall continue so long as any
obligation of Contractor remains. Nothing herein shall limit the City’s rights or the
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Contractor or Surety’s obligations under the Contract, law or equity, including, but not
limited to, California Code of Civil Procedure section 337.15.
Whenever Contractor shall be, and is declared by the City to be, in default under
the Contract Documents, the Surety shall remedy the default pursuant to the Contract
Documents, or shall promptly, at the City’s option:
(1) Take over and complete the Project in accordance with all terms and
conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms
and conditions in the Contract Documents and upon determination by
Surety of the lowest responsive and responsible bidder, arrange for a
Contract between such bidder, the Surety and the City, and make available
as work progresses sufficient funds to pay the cost of completion of the
Project, less the balance of the contract price, including other costs and
damages for which Surety may be liable. The term “balance of the contract
price” as used in this paragraph shall mean the total amount payable to
Contractor by the City under the Contract and any modification thereto, less
any amount previously paid by the City to the Contractor and any other set
offs pursuant to the Contract Documents.
(3) Permit the City to complete the Project in any manner consistent with local,
California and federal law and make available as work progresses sufficient
funds to pay the cost of completion of the Project, less the balance of the
contract price, including other costs and damages for which Surety may be
liable. The term “balance of the contract price” as used in this paragraph
shall mean the total amount payable to Contractor by the City under the
Contract and any modification thereto, less any amount previously paid by
the City to the Contractor and any other set offs pursuant to the Contract
Documents.
Surety expressly agrees that the City may reject any contractor or subcontractor
which may be proposed by Surety in fulfillment of its obligations in the event of default by
the Contractor.
Surety shall not utilize Contractor in completing the Project nor shall Surety accept
a bid from Contractor for completion of the Project if the City, when declaring the
Contractor in default, notifies Surety of the City’s objection to Contractor’s further
participation in the completion of the Project.
The Surety, for value received, hereby stipulates and agrees that no change,
extension of time, alteration or addition to the terms of the Contract Documents or to the
Project to be performed thereunder shall in any way affect its obligations on this bond,
and it does hereby waive notice of any such change, extension of time, alteration or
addition to the terms of the Contract Documents or to the Project, including but not limited
to the provisions of sections 2819 and 2845 of the California Civil Code.
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IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day
of ______________, 20__).
(Corporate Seal) Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence
of corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of
premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)
THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________
___________________________________________
___________________________________________
(Name and Address of Agent or ___________________________________________
Representative for service of
process in California, if different ___________________________________________
from above)
___________________________________________
(Telephone number of Surety and ___________________________________________
Agent or Representative for service
of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the
Surety to do so must be attached hereto.
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Rolling Hills (hereinafter designated as the “City”), by action taken or a resolution passed ___________ , 20____has awarded to ________________ hereinafter designated as the “Principal,” a contract for the work described as follows:
_____________________________________________________ (the “Project”); and
WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated __________________ (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of ______________ Dollars ($___________) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified.
This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.
It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or
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- 33 -
equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______
day of ______________, 20__.
(Corporate Seal) Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and
evidence of corporate authority attached. A Power-of-Attorney authorizing the person
signing on behalf of the Surety to do so much be attached hereto.
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the
Surety to do so must be attached hereto.
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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Agenda Item No.: 12.B
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:CONSIDERATION AND APPROVAL TO AWARD A CONSTRUCTION
CONTRACT TO AC PROS FOR THE CITY HALL HEATING,
VENTILATION AND AIR CONDITIONING PROJECT #2023-01 FOR AN
AMOUNT OF $188,750; ADOPT BY RESOLUTION NO. 1329
AUTHORIZING A BUDGET MODIFICATION OF $207,625; DIRECT THE
CITY ATTORNEY TO FINALIZE A CONSTRUCTION CONTRACT; AND
AUTHORIZE THE CITY MANAGER TO EXECUTE; AND FIND THE
SAME EXEMPT FROM CEQA
DATE:March 13, 2023
BACKGROUND:
Since late July 2022, City Hall operated without proper ventilation. At the October 10, 2022
City Council meeting, S&K Consulting Services was hired to assess the condition of the City
Hall Heating, Ventilation and Air Conditioning (HVAC) system and provide an engineering
design for a functioning system.
In late November 2022, S&K Consulting Services completed the engineering design and
submitted plans for permitting with the Los Angeles County Building and Safety. Per the
current Los Angeles County Building Code, S&K Consulting was able to determine that the
scope of work is an HVAC replacement/repair project. S&K Consulting Services reported that
the existing equipment includes a pair of furnaces that are twinned (interlocked to supply the
same duct) with two cooling coils connected to a single commercial outdoor package unit. The
size of the furnaces are no longer manufactured and twinning is no longer common practice
with ultra-low nox systems. Most of the ductwork has been damaged beyond repair and
sections are in shambles above the ceiling. City Hall is split into two zones in this context.
Zone 1 is comprised of the individual offices, and the lobby. Zone 2 is comprised of the
Council Chambers. The new design will address existing imbalance of airflow and improve
temperature control by splitting Zone 1 into two zones where the lobby, reception area and
hallway will be on a separate thermostat.
S&K Consulting Services also specified new HVAC equipment with higher efficiencies and the
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lowest emissions. Several pieces of equipment will need to be placed outside of City Hall, at
the previous recycling center. Alan Palermo Consulting, the City's Project Manager
coordinated information exchange between S&K Consulting Services, and the City Hall ADA
Improvement Project design team to ensure that the HVAC project makes provisions for the
future condition to be improved by the ADA project. Plans were submitted to Los Angeles
County in November 2022 and approved in December. The plans were revised to include
information/address existing hazardous materials. The engineer's estimate to the HVAC
project was $250,185.
DISCUSSION:
On January 31, 2023, the City officially released the City Hall HVAC Project # 2023-01 Bid
and posted it on the City's website.
On February 2nd and 9th, 2023, the City published the Request for Bid in a local newspaper
as mandated by the State Public Contract Code.
On February 16, 2023, the City hosted a mandatory job walk for interested bidders. Project
Manager Alan Palermo and S&K Consulting representatives were on site to facilitate the
walkthrough.
On February 28, 2023, the City received three (3) sealed bids at the 2pm Bid Closing. Three
bidders were on site for the opening and reading of the bids. The order ranked the lowest
responsive bid for work included are as follows:
Bidder Address Amount
AC Pros 18653 Ventura Blvd. #251,
Tarzana, CA 91356 $188,750
Bon Air Inc.11340 W. Olympic Blvd. #302,
Los Angeles, CA 90064 $238,000
Allison Mechanical, Inc.1968 Essex Court,
Redlands, CA 92373 $358,000
Staff validated all bids received and determined that AC Pros is the lowest responsive and
responsible bidder. Staff recommendation is to award the construction contract to AC Pros for
$188,750 and allocate an additional $18,875 as a 10% contingency for a total of $207,625.
ENVIRONMENTAL REVIEW
The solicitation for bids did not constitute a Project as defined under the California
Environmental Quality Act (“CEQA”). Further, the repair, replacement and installation of an
HVAC at City Hall is exempt from CEQA pursuant to section 15301 of the CEQA Guidelines
(Existing facilities) in that it will replace already existing equipment at City Hall with upgraded
and more energy efficient versions. Further, this action is exempt under section 15302 of the
CEQA Guidelines as it consists of the replacement or reconstruction of existing structures and
facilities on the same site as the replaced structures and facilities and will have the same
purpose and capacity.
FISCAL IMPACT:
The replacement of the HVAC system is an unexpected expense and not budgeted in the FY
2022-2023 adopted budget. As such, Council action is required to amend the budget and
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increase budgeted appropriations by $207,625 in the Capital Projects Fund which will be
funded from a transfer of available General Fund reserves. The use of General Fund reserves
for these purposes is consistent with City policy.
COST: $207,625 includes 10% contingency.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
CL_PBN_230131_NOB_2023-01_CH_HVAC_Replacement_Draft_Affidavit.pdf
CL_PBN_230209_NOB_2023-01_CH_HVAC_Replacement_Affidavit_2nd.pdf
CL_BID_230228_2023-01_CH_HVAC_Project_ACProsInc..pdf
CL_BID_230228_2023-01_CH_HVAC_Project_BonAirInc..pdf
CL_BID_230228_2023-01_CH_HVAC_Project_AllisonMechInc..pdf
ResolutionNo1329_HVAC_Project2023-01_BudgetAmendment.pdf
CA_AGR_230313_ACPros_ConstructionContract _HVAC_Project2023-01_Draft.pdf
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RESOLUTION NO. 1329
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS. CALIFORNIA AUTHORIZING A
FISCAL YEAR 2022-2023 BUDGET MODIFICATION
TO INCREASE APPROPRIATIONS IN THE CAPITAL
PROJECTS FUND BY $207,427.00 FUNDED BY A
TRANSFER OF GENERAL FUND RESERVES FOR
THE CONSTRUCTION CONTRACT WITH AC PROS
INC., FOR THE CITY HALL HVAC REPLACEMENT
PROJECT
THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA,
DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1. Recitals.
A. It is the intention of the City Council of the City of Rolling Hills to
review the adopted budget from time to time.
B. On or around January 30, 2023 the City released a Notice Inviting
Sealed Bids for the City Hall HVAC Replacement Project, Job No. 2023-01
(“Project”).
C. The City received three bids for the Project. On or around February
28, 2023 the City publicly opened the bids. The low bid, from AC Pros Inc., a
California corporation, was in the amount of one hundred and eighty eight
thousand, five hundred and seventy dollars ($188,570.00).
D. On or around March 13, 2023, the City Council was presented with
the bid from AC Pros Inc. and declared AC Pros Inc. the lowest responsible
bidder. Further, the City Council authorized the City Manager to execute a written
contract with AC Pros Inc. for the Project.
E. The City desires to appropriate $207,427.00 (includes a 10%
contingency) in the Capital Projects Fund for the Construction Contract with AC
Pros Inc. (attached as Exhibit “A”).
Section 2. The sum of two hundred and seven thousand, four hundred
and twenty seven forty dollars ($207,427.00) is hereby appropriated to the
Capital Projects Fund funded from a transfer of General Fund reserves for the
Construction Contract with AC Pros Inc.
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Section 3. This Resolution shall take effect immediately upon its
adoption by the City Council, and the City Clerk shall certify to the passage and
adoption of this Resolution and enter it into the book or original resolutions.
PASSED, APPROVED, AND ADOPTED this 13th day of March, 2023
______________________________
PAT WILSON
MAYOR
ATTEST:
___________________________
CHRISTIAN HORVATH
CITY CLERK
163
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
I certify that the foregoing Resolution No. 1329 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS. CALIFORNIA AUTHORIZING A
FISCAL YEAR 2022-2023 BUDGET MODIFICATION
TO INCREASE APPROPRIATIONS IN THE CAPITAL
PROJECTS FUND BY $207,427.00 FUNDED BY A
TRANSFER OF GENERAL FUND RESERVES FOR
THE CONSTRUCTION CONTRACT WITH AC PROS
INC., FOR THE CITY HALL HVAC REPLACEMENT
PROJECT
was approved and adopted at a regular meeting of the City Council on March 13,
2023, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
CHRISTIAN HORVATH, CITY CLERK
Christian Horvath, City Clerk
164
Exhibit A
165
CONTRACT AGREEMENT
This Construction Agreement (“Agreement”) is made and entered into as of the
date executed by the City Manager and attested to by the City Clerk, by and between AC
Pros Inc., a California corporation (hereinafter referred to as "CONTRACTOR") and the
City of Rolling Hills, California, a municipal corporation (hereinafter referred to as "CITY").
R E C I T A L S
A. Pursuant to the Notice Inviting Sealed Bids for the City Hall HVAC Replacement
Project, Job No. 2023-01 (Project”), bids were received, publicly opened, and declared
on the date specified in the notice; and
B. On March 13, 2023, City’s City Council declared CONTRACTOR to be the lowest
responsible bidder and accepted the bid of CONTRACTOR; and
C. The City Council has authorized the City Manager to execute a written contract with
CONTRACTOR for furnishing labor, equipment and material for the City Hall HVAC
Replacement Project, Job No. 2023-01 in the City of Rolling Hills.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein
contained, it is agreed:
1. GENERAL SCOPE OF WORK: CITY agrees to engage CONTRACTOR and
CONTRACTOR agrees to furnish all necessary labor, tools, materials, for the
Project in the City of Rolling Hills. The work shall be performed in accordance with
the Plans and Specifications dated [INSERT DATE], (the “Specifications”) on file
in the office of the City Clerk and in accordance with bid prices set forth in
CONTRACTOR’S Bid Proposal and in accordance with the instructions of the City.
2. INCORPORATED DOCUMENTS TO BE CONSIDERED COMPLEMENTARY:
The contract documents for the aforesaid project shall consist of all the documents
and exhibits in the Request for Bid and all referenced specifications, details,
standard drawings, and appendices; together with this Agreement and all required
bonds, insurance certificates, permits, notices and affidavits; and also, including
any and all addenda or supplemental agreements clarifying, amending, or
extending the work contemplated as may be required to insure its completion in an
acceptable manner. All of the provisions of said contract documents are made a
part hereof as though fully set forth herein. This contract is intended to require a
complete and finished piece of work and anything necessary to complete the work
properly and in accordance with the law and lawful governmental regulations shall
be performed by CONTRACTOR whether set out specifically in the contract or not.
Should it be ascertained that any inconsistency exists between the aforesaid
documents and this written agreement, the provisions of this Agreement shall
govern. Collectively, these contract documents constitute the complete agreement
between CITY and CONTRACTOR and supersede any previous agreements or
understandings.
166
3. COMPENSATION: CONTRACTOR agrees to receive and accept the prices set
forth in its Bid Proposal of one hundred and eighty eight thousand, five hundred
and seventy dollars ($188,570.00) as full compensation for furnishing all materials,
performing all work, and fulfilling all obligations hereunder. Said compensation
shall cover all expenses, losses, damages, and consequences arising out of the
nature of the work during its progress or prior to its acceptance including those for
well and faithfully completing the work and the whole thereof in the manner and
time specified in the aforesaid contract documents; and also including those arising
from actions of the elements, unforeseen difficulties or obstructions encountered
in the prosecution of the work, suspension or discontinuance of the work, and all
other unknowns or risks of any description connected with the work.
4. TIME OF PERFORMANCE: CONTRACTOR agrees to complete the work within
[INSERT VALUE] working days from the date of the notice to proceed. By signing
this Agreement, CONTRACTOR represents to CITY that the contract time is
reasonable for completion of the work and that CONTRACTOR will complete such
work within the contract time.
5. LIQUIDATED DAMAGES: In accordance with Government Code section
53069.85, it is agreed that CONTRACTOR will pay to CITY the sum of be
$1000/day for each and every calendar day of delay beyond the time prescribed
in the Contract Documents for finishing the Work, as Liquidated Damages and not
as a penalty or forfeiture. In the event this is not paid, CONTRACTOR agrees CITY
may deduct that amount from any money due or that may become due
CONTRACTOR under the Contract. This Article does not exclude recovery of other
damages specified in the Contract Documents.
6. SUBSTITUTION OF SECURITIES: Pursuant to section 22300 of the Public
Contract Code of the State of California, CONTRACTOR may request CITY to
make retention payments directly to an escrow agent or may substitute securities
for any money withheld by CITY to ensure performance under the contract. At the
request and expense of CONTRACTOR, securities equivalent to the amount
withheld shall be deposited with CITY or with a state or federally chartered bank
as the escrow agent who shall return such securities to CONTRACTOR upon
satisfactory completion of the contract. Deposit of securities with an escrow agent
shall be subject to a written agreement substantially in the form provided in section
22300 of the Public Contract Code.
7. PREVAILING WAGES AND CALIFORNIA LABOR LAWS.
Pursuant to Labor Code §§ 1720 et seq., and as specified in 8 California Code of
Regulations § 16000 (“Prevailing Wage Laws”), CONTRACTOR must pay its
workers prevailing wages. It is CONTRACTOR’s responsibility to interpret and
implement any prevailing wage requirements, and CONTRACTOR agrees to pay
any penalty or civil damages resulting from a violation of the prevailing wage laws.
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CONTRACTOR shall defend, indemnify and hold the CITY, its officials, officers,
employees and agents free and harmless from any claim or liability arising out of
any failure or alleged failure to comply with the Prevailing Wage Laws.
CONTRACTOR and any subcontractor shall forfeit a penalty of up to $200 per
calendar day or portion thereof for each worker paid less than the prevailing wage
rates.
In accordance with Labor Code § 1773.2, copies of the prevailing rate of per diem
wages are available upon request from CITY’s Engineering Division or the website
for State of California Prevailing wage determination at
http://www.dir.ca.gov/DLSR/PWD. CONTRACTOR must post a copy of the
prevailing rate of per diem wages at the job site.
CITY directs CONTRACTOR’s attention to Labor Code §§ 1777.5, 1777.6 and
3098 concerning the employment of apprentices by CONTRACTOR or any
subcontractor.
Labor Code § 1777.5 requires CONTRACTOR or subcontractor employing
tradesmen in any apprenticeship occupation to apply to the joint apprenticeship
committee nearest the site of the public works project and which administers the
apprenticeship program in that trade for a certificate of approval. The certificate
must also fix the ratio of apprentices to journeymen that will be used in the
performance of the contract. The ratio of apprentices to journeymen in such cases
will not be less than one to five except:
When employment in the area of coverage by the joint apprenticeship committee
has exceeded an average of 15 percent in the 90 days before the request for
certificate, or
When the number of apprentices in training in the area exceeds a ratio of one to
five, or
When the trade can show that it is replacing at least 1/30 of its membership through
apprenticeship training on an annual basis state-wide or locally, or
Assignment of an apprentice to any work performed under a public works contract
would create a condition that would jeopardize his or her life or the life, safety, or
property of fellow employees or the public at large, or the specific task to which the
apprentice is to be assigned is of a nature that training cannot be provided by a
journeyman.
When CONTRACTOR provides evidence that CONTRACTOR employs registered
apprentices on all of his contracts on an annual average of not less than one
apprentice to eight journeymen.
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CONTRACTOR is required to make contributions to funds established for the
administration of apprenticeship programs if CONTRACTOR employs registered
apprentices or journeymen in any apprenticeable trade on such contracts and if
other contractors on the public works site are making such contributions.
CONTRACTOR and any subcontractor must comply with Labor Code §§ 1777.5
and 1777.6 in the employment of apprentices.
Information relative to apprenticeship standards, wage schedules and other
requirements may be obtained from the Director of Industrial Relations, ex-officio
the Administrator of Apprenticeship, San Francisco, California, or from the Division
of Apprenticeship Standards and its branch offices.
The CONTRACTOR or any subcontractor that is determined by the Labor
Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil
penalty an amount not exceeding $100 for each full calendar day of
noncompliance, or such greater amount as provided by law.
CONTRACTOR and each subcontractor shall keep an accurate payroll record,
showing the name, address, social security number, work classification, straight
time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed
by him or her in connection with the public work. The payroll records shall be
certified and shall be available for inspection at all reasonable hours at the principal
office of CONTRACTOR in the manner provided in Labor Code section 1776. In
the event of noncompliance with the requirements of this section, CONTRACTOR
shall have 10 days in which to comply subsequent to receipt of written notice
specifying in what respects such CONTRACTOR must comply with this section.
Should noncompliance still be evident after such 10-day period, CONTRACTOR
shall, as a penalty to CITY, forfeit not more than $100.00 for each calendar day or
portion thereof, for each worker, until strict compliance is effectuated. The amount
of the forfeiture is to be determined by the Labor Commissioner. A contractor who
is found to have violated the provisions of law regarding wages on Public Works
with the intent to defraud shall be ineligible to bid on Public Works contracts for a
period of one to three years as determined by the Labor Commissioner. Upon the
request of the Division of Apprenticeship Standards or the Division of Labor
Standards Enforcement, such penalties shall be withheld from progress payments
then due. The responsibility for compliance with this section is on CONTRACTOR.
The requirement to submit certified payroll records directly to the Labor
Commissioner under Labor Code section 1771.4 shall not apply to work performed
on a public works project that is exempt pursuant to the small project exemption
specified in Labor Code Section 1771.4.
Any ineligible contractor or subcontractor pursuant to Labor Code Sections
1777.1 and 1777.7 may not perform work on this Project.
169
By executing this Contract, CONTRACTOR verifies that it fully complies with all
requirements and restrictions of state and federal law respecting the employment
of undocumented aliens, including, but not limited to, the Immigration Reform and
Control Act of 1986, as may be amended from time to time, and shall require all
subcontractors and sub-subcontractors to comply with the same.
8. LEGAL HOURS OF WORK: Eight (8) hours of labor shall constitute a legal day's
work for all workmen employed in the execution of this contract, and
CONTRACTOR and any subcontractor under it shall comply with and be governed
by the laws of the State of California having to do with working hours set forth in
Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California
as amended.
CONTRACTOR shall forfeit, as a penalty to City, twenty-five dollars ($25.00) for
each laborer, workman or mechanic employed in the execution of the contract, by
him or any subcontractor under it, upon any of the work hereinbefore mentioned,
for each calendar day during which the laborer, worker or mechanic is required or
permitted to labor more than eight (8) hours in any one calendar day or 40 hours
in any one calendar week in violation of the Labor Code.
9. PUBLIC WORKS CONTRACTOR REGISTRATION: Pursuant to Labor Code
sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on,
be listed in a bid proposal, or enter into a contract to perform public work must be
registered with the Department of Industrial Relations (DIR). No bid will be
accepted nor any contract entered into without proof of the contractor’s and
subcontractors’ current registration with the DIR to perform public work.
Notwithstanding the foregoing, the contractor registration requirements mandated
by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on
a public works project that is exempt pursuant to the small project exemption
specified in Labor Code Sections 1725.5 and 1771.1.
10. LABOR COMPLIANCE AND STOP ORDERS: This Project is subject to
compliance monitoring and enforcement by the DIR. It shall be CONTRACTOR’s
sole responsibility to evaluate and pay the cost of complying with all labor
compliance requirements under this Contract and applicable law. Any stop orders
issued by the DIR against CONTRACTOR or any subcontractor that affect
CONTRACTOR’s performance of Work, including any delay, shall be
CONTRACTOR’s sole responsibility. Any delay arising out of or resulting from
such stop orders shall be considered CONTRACTOR caused delay subject to any
applicable liquidated damages and shall not be compensable by the CITY.
CONTRACTOR shall defend, indemnify and hold CITY, its officials, officers,
employees and agents free and harmless from any claim or liability arising out of
stop orders issued by the DIR against CONTRACTOR or any subcontractor.
11. DEBARMENT OF CONTRACTORS AND SUBCONTRACTORS: Contractors or
subcontractors may not perform work on a public works project with a
170
subcontractor who is ineligible to perform work on a public project pursuant to
Labor Code section 1777.1 or 1777.7. Any contract on a public works project
entered into between a contractor and a debarred subcontractor is void as a matter
of law. A debarred subcontractor may not receive any public money for performing
work as a subcontractor on a public works contract. Any public money that is paid,
or may have been paid to a debarred subcontractor by a contractor on the Project
shall be returned to the CITY. CONTRACTOR shall be responsible for the
payment of wages to workers of a debarred subcontractor who has been allowed
to work on the project.
12. LABOR/EMPLOYMENT SAFETY: CONTRACTOR shall comply with all applicable
laws and regulations of the federal, state, and local government, including
Cal/OSHA requirements and requirements for verification of employees’ legal right
to work in the United States
CONTRACTOR shall maintain emergency first aid treatment for its employees
which complies with the Federal Occupational Safety and Health Act of 1970 (29
U.S.C. § 651 et seq.), and California Code of Regulations, Title 8, Industrial
Relations Division 1, Department of Industrial Relations, Chapter 4.
CONTRACTOR shall ensure the availability of emergency medical services for its
employees in accordance with California Code of Regulations, Title 8, Section
1512.
CONTRACTOR shall submit the Illness and Injury Prevention Program and a
Project site specific safety program to CITY prior to beginning Work at the Project
site. CONTRACTOR shall maintain a confined space program that meets or
exceeds the CITY Standards. CONTRACTOR shall adhere to CITY’s lock out tag
out program
13. TRAVEL AND SUBSISTENCE PAY: CONTRACTOR agrees to pay travel and
subsistence pay to each worker needed to execute the work required by this
Agreement as such travel and subsistence payments are defined in the applicable
collective bargaining agreements filed in accordance with Labor Code Section
1773.8.
14. CONTRACTOR'S LIABILITY: The City of Rolling Hills and its respective elected
officials, officers, attorneys, agents, employees, volunteers, successors, and
assigns (collectively “Indemnitees”) shall not be answerable or accountable in any
manner for any loss or damage that may happen to the work or any part thereof,
or for any of the materials or other things used or employed in performing the work;
or for injury or damage to any person or persons, either workers or employees of
CONTRACTOR, of its subcontractors or the public, or for damage to adjoining or
other property from any cause whatsoever arising out of or in connection with the
performance of the work. CONTRACTOR shall be responsible for any damage or
injury to any person or property resulting from defects or obstructions or from any
cause whatsoever.
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To the fullest extent permitted by law, CONTRACTOR will indemnify
Indemnities against and will hold and save Indemnitees harmless from any and all
actions, claims, damages to persons or property, penalties, obligations or liabilities
that may be asserted or claimed by any person, firm, entity, corporation, political
subdivision, or other organization arising out of or in connection with the work,
operation, or activities of CONTRACTOR, its agents, employees, subcontractors
or invitees provided for herein, whether or not there is concurrent passive
negligence on the part of City. In connection therewith:
a. CONTRACTOR will defend any action or actions filed in connection
with any such claims, damages, penalties, obligations or liabilities
and will pay all costs and expenses, including attorneys' fees,
expert fees and costs incurred in connection therewith.
b. CONTRACTOR will promptly pay any judgment rendered against
CONTRACTOR or Indemnitees covering such claims, damages,
penalties, obligations and liabilities arising out of or in connection
with such work, operations or activities of CONTRACTOR
hereunder, and CONTRACTOR agrees to save and hold the
Indemnitees harmless therefrom.
c. In the event Indemnitees are made a party to any action or
proceeding filed or prosecuted against CONTRACTOR for damages
or other claims arising out of or in connection with the work, operation
or activities hereunder, CONTRACTOR agrees to pay to
Indemnitees and any all costs and expenses incurred by
Indemnitees in such action or proceeding together with reasonable
attorneys' fees.
Contractor's obligations under this section apply regardless of whether or
not such claim, charge, damage, demand, action, proceeding, loss, stop notice,
cost, expense, judgment, civil fine or penalty, or liability was caused in part or
contributed to by an Indemnitee. However, without affecting the rights of City
under any provision of this agreement, to the extent required by Civil Code section
2782, Contractor shall not be required to indemnify and hold harmless City for
liability attributable to the active negligence of City, provided such active
negligence is determined by agreement between the parties or by the findings of
a court of competent jurisdiction. In instances where City is shown to have been
actively negligent and where City active negligence accounts for only a percentage
of the liability involved, the obligation of Contractor will be for that entire portion or
percentage of liability not attributable to the active negligence of City.
So much of the money due to CONTRACTOR under and by virtue of the
contract as shall be considered necessary by City may be retained by City until
disposition has been made of such actions or claims for damages as aforesaid.
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It is expressly understood and agreed that the foregoing provisions are
intended to be as broad and inclusive as is permitted by the law of the State of
California. This indemnity provision shall survive the termination of the Agreement
and is in addition to any other rights or remedies which Indemnitees may have
under the law.
This indemnity is effective without reference to the existence or applicability
of any insurance coverage which may have been required under this Agreement
or any additional insured endorsements which may extend to Indemnitees.
CONTRACTOR, on behalf of itself and all parties claiming under or through
it, hereby waives all rights of subrogation and contribution against the Indemnitees,
while acting within the scope of their duties, from all claims, losses and liabilities
arising out of or incident to activities or operations performed by or on behalf of the
CONTRACTOR regardless of any prior, concurrent, or subsequent passive
negligence by the Indemnitees.
15. THIRD PARTY CLAIMS. In accordance with Public Contract Code § 9201, CITY
will promptly inform CONTRACTOR regarding third-party claims against
CONTRACTOR, but in no event later than ten (10) business days after CITY
receives such claims. Such notification will be in writing and forwarded in
accordance with the “Notice” section of this Agreement. As more specifically
detailed in the contract documents, CONTRACTOR agrees to indemnify and
defend the City against any third-party claim.
16. WORKERS COMPENSATION: In accordance with California Labor Code
Sections 1860 and 3700, CONTRACTOR and each of its subcontractors will be
required to secure the payment of compensation to its employees. In accordance
with the provisions of California Labor Code Section 1861, CONTRACTOR, by
signing this contract, certifies as follows: "I am aware of the provisions of Section
3700 of the Labor Code which require every employer to be insured against liability
for worker's 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.
17. INSURANCE: CONTRACTOR shall procure and maintain for the duration of the
Agreement, and for 1 year thereafter, insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the
performance of the work hereunder by the CONTRACTOR, its agents,
representatives, employees, or subcontractors.
a. Minimum Scope and Limit of Insurance. Coverage shall be at least as broad
as:
i. Commercial General Liability (CGL): Insurance Services Office (ISO)
Form CG 00 01 covering CGL on an “occurrence” basis, including
products and completed operations, property damage, bodily injury and
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personal & advertising injury with limits no less than $5,000,000 per
occurrence. If a general aggregate limit applies, either the general
aggregate limit shall apply separately to this project/location (ISO CG 25
03 or 25 04) or the general aggregate limit shall be twice the required
occurrence limit.
ii. Automobile Liability: Insurance Services Office Form CA 0001 covering
Code 1 (any auto), with limits no less than $5,000,000 per accident for
bodily injury and property damage.
iii. Workers’ Compensation insurance as required by the State of California,
with Statutory Limits, and Employers’ Liability insurance with a limit of no
less than $1,000,000 per accident for bodily injury or disease.
iv. Builder’s Risk (Course of Construction) insurance utilizing an “All Risk”
(Special Perils) coverage form, with limits equal to the completed value of
the project and no coinsurance penalty provisions.
v. Professional Liability (if Design/Build), with limits no less than $2,000,000
per occurrence or claim, and $2,000,000 policy aggregate.
vi. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or
Errors and Omissions (if project involves environmental hazards) with
limits no less than $1,000,000 per occurrence or claim, and $2,000,000
policy aggregate.
vii. If the contractor maintains broader coverage and/or higher limits than the
minimums shown above, the CITY requires and shall be entitled to the
broader coverage and/or the higher limits maintained by CONTRACTOR.
Any available insurance proceeds in excess of the specified minimum
limits of insurance and coverage shall be available to the CITY.
b. Self-Insured Retentions. Self-insured retentions must be declared to and
approved by the CITY. At the option of the CITY, either: the CONTRACTOR
shall obtain coverage to reduce or eliminate such self-insured retentions as
respects the CITY, its officers, officials, employees, and volunteers; or the
CONTRACTOR shall provide a financial guarantee satisfactory to the CITY
guaranteeing payment of losses and related investigations, claim
administration, and defense expenses. The policy language shall provide, or
be endorsed to provide, that the self-insured retention may be satisfied by
either the named insured or CITY.
c. Other Insurance Provisions. The insurance policies are to contain, or be
endorsed to contain, the following provisions:
i. The CITY, its officers, officials, employees, and volunteers are to be
covered as additional insureds on the CGL policy with respect to liability
arising out of work or operations performed by or on behalf of the
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CONTRACTOR including materials, parts, or equipment furnished in
connection with such work or operations and automobiles owned, leased,
hired, or borrowed by or on behalf of the CONTRACTOR. General liability
coverage can be provided in the form of an endorsement to the
CONTRACTOR’s insurance (at least as broad as ISO Form CG 20 10, CG
11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37
forms if later revisions used).
ii. For any claims related to this project, the CONTRACTOR’s insurance
coverage shall be primary insurance coverage at least as broad as ISO CG
20 01 04 13 as respects the CITY, its officers, officials, employees, and
volunteers. Any insurance or self-insurance maintained by the CITY, its
officers, officials, employees, or volunteers shall be excess of the
CONTRACTOR’s insurance and shall not contribute with it.
iii. Each insurance policy required by this clause shall provide that coverage
shall not be canceled, except with notice to the CITY.
d. Builder’s Risk (Course of Construction) Insurance.
i. CONTRACTOR may submit evidence of Builder’s Risk insurance in the
form of Course of Construction coverage. Such coverage shall name the
CITY as a loss payee as their interest may appear.
ii. If the Project does not involve new or major reconstruction, at the option of
the CITY, an Installation Floater may be acceptable. For such projects, a
Property Installation Floater shall be obtained that provides for the
improvement, remodel, modification, alteration, conversion or adjustment to
existing buildings, structures, processes, machinery, and equipment. The
Property Installation Floater shall provide property damage coverage for
any building, structure, machinery or equipment damaged, impaired,
broken, or destroyed during the performance of the Work, including during
transit, installation, and testing at the CITY’s site.
e. Claims Made Policies. If any coverage required is written on a claims-made
coverage form:
i. The retroactive date must be shown, and this date must be before the
execution date of the contract or the beginning of contract work.
ii. Insurance must be maintained and evidence of insurance must be provided
for at least five (5) years after completion of contract work.
iii. If coverage is cancelled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the contract
effective, or start of work date, the CONTRACTOR must purchase extended
reporting period coverage for a minimum of five (5) years after completion
of contract work.
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iv. A copy of the claims reporting requirements must be submitted to the CITY
for review.
v. If the services involve lead-based paint or asbestos
identification/remediation, the Contractors Pollution Liability policy shall not
contain lead-based paint or asbestos exclusions. If the services involve
mold identification/remediation, the Contractors Pollution Liability policy
shall not contain a mold exclusion, and the definition of Pollution shall
include microbial matter, including mold.
f. Acceptability of Insurers. Insurance is to be placed with insurers authorized
to conduct business in the state with a current A.M. Best rating of no less than
A: VII, unless otherwise acceptable to the CITY.
g. Waiver of Subrogation. CONTRACTOR hereby agrees to waive rights of
subrogation which any insurer of CONTRACTOR may acquire from
CONTRACTOR by virtue of the payment of any loss. CONTRACTOR agrees
to obtain any endorsement that may be necessary to affect this waiver of
subrogation. The Workers’ Compensation policy shall be endorsed with a
waiver of subrogation in favor of the CITY for all work performed by the
CONTRACTOR, its employees, agents and subcontractors.
h. Verification of Coverage. CONTRACTOR shall furnish the CITY with original
Certificates of Insurance including all required amendatory endorsements (or
copies of the applicable policy language effecting coverage required by this
clause) and a copy of the Declarations and Endorsement Page of the CGL
policy listing all policy endorsements to CITY before work begins. However,
failure to obtain the required documents prior to the work beginning shall not
waive the CONTRACTOR’s obligation to provide them. The CITY reserves the
right to require complete, certified copies of all required insurance policies,
including endorsements, required by these specifications, at any time.
i. Subcontractors. CONTRACTOR shall require and verify that all
subcontractors maintain insurance meeting all requirements stated herein,
and CONTRACTOR shall ensure that CITY is an additional insured on
insurance required from subcontractors. For CGL coverage, subcontractors
shall provide coverage with a form at least as broad as CG 20 38 04 13.
j. Special Risks or Circumstances. CITY reserves the right to modify these
requirements, including limits, based on the nature of the risk, prior
experience, insurer, coverage, or other circumstances.
18. ASSIGNMENT: This contract is not assignable nor the performance of either
party's duties delegable without the prior written consent of the other party. Any
attempted or purported assignment or delegation of any of the rights of obligations
of either party without the prior written consent of the other shall be void and of no
force and effect.
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19. INDEPENDENT CONTRACTOR: CONTRACTOR is and shall at all times remain
as to the CITY, a wholly independent contractor. Neither the CITY nor any of its
agents shall have control of the conduct of CONTRACTOR or any of
CONTRACTOR'S employees, except as herein set forth. CONTRACTOR shall not
at any time or in any manner represent that it or any of its agents or employees
are in any manner agents or employees of CITY.
20. TAXES: CONTRACTOR is responsible for paying all retail sales and use,
transportation, export, import, special or other taxes and duties applicable to, and
assessable against any work, materials, equipment, services, processes and
operations incidental to or involved in this contract. CONTRACTOR is responsible
for ascertaining and arranging to pay them. The prices established in the contract
shall include compensation for any taxes CONTRACTOR is required to pay by
laws and regulations in effect at the bid opening date.
21. LICENSES: CONTRACTOR represents and warrants to CITY that it has all
licenses, permits, qualifications, insurance, and approvals of whatsoever nature
which are legally required of CONTRACTOR to practice its profession.
CONTRACTOR represents and warrants to CITY that CONTRACTOR shall, at its
sole cost and expense, keep in effect or obtain at all times during the term of this
Agreement any licenses, permits, insurance, and approvals which are legally
required of CONTRACTOR to practice its profession.
Contractors are required by law to be licensed and regulated by the Contractors’
State License Board which has jurisdiction to investigate complaints against
contractors if a complaint regarding a patent act or omission is filed within five (5)
years of the date of the alleged violation. A complaint regarding a latent act or
omission pertaining to structural defects must be filed within ten (10) years of the
date of the alleged violation. Any questions concerning a contractor may be
referred to the Registrar, Contractors’ State License Board, P.O. Box 26000,
Sacramento, California 95826.
22. RECORDS: CONTRACTOR shall maintain accounts and records, including
personnel, property, and financial records, adequate to identify and account for all
costs pertaining to this Agreement and such other records as may be deemed
necessary by CITY or any authorized representative, and will be retained for four
years after the expiration of this Agreement. All such records shall be made
available for inspection or audit by CITY at any time during regular business hours.
23. SEVERABILITY: If any portion of these contract documents are declared by a
court of competent jurisdiction to be invalid or unenforceable, then such portion will
be deemed modified to the extent necessary in the opinion of the court to render
such portion enforceable and, as so modified, such portion and the balance of this
Agreement will continue in full force and effect.
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24. WHOLE AGREEMENT: This Agreement supersedes any and all other
agreements either oral or written, between the parties and contains all of the
covenants and agreements between the parties pertaining to the work of
improvements described herein. Each party to this contract acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have
been made by any party, or anyone acting on behalf of any party, which are not
embodied herein, and that any other agreement, statements or promise not
contained in this contract shall not be valid or binding. Any modifications of this
contract will be effective only if signed by the party to be charged.
25. AUTHORITY: CONTRACTOR affirms that the signatures, titles, and seals set
forth hereinafter in execution of this Agreement represent all individuals, firm
members, partners, joint ventures, and/or corporate officers having a principal
interest herein. Each party warrants that the individuals who have signed this
Agreement have the legal power, right, and authority to make this Agreement and
to bind each respective party. This Agreement may be modified by written
amendment. CITY’s city manager may execute any such amendment on CITY’s
behalf.
26. NOTICES: All notices permitted or required under this Agreement shall be in
writing, and shall be deemed made when delivered to the applicable party’s
representative as provided in this Agreement. Additionally, such notices may be
given to the respective parties at the following addresses, or at such other
addresses as the parties may provide in writing for this purpose. Such notices shall
be deemed made when personally delivered or when mailed forty-eight (48) hours
after deposit in the U.S. mail, first-class postage prepaid, and addressed to the
party at its applicable address.
CITY OF ROLLING HILLS
2 Portuguese Bend Rd.
Rolling Hills, CA 90274
Attention: ________________________ Project Manager
CONTRACTOR:
AC Pros Inc.
18653 Ventura Blvd. # 251
Tarzana CA 91356
Attention: Noam Ziv
27. DISPUTES: Effective January 1, 1991, Section 20104 et seq., of the California
Public Contract Code prescribes a process utilizing informal conferences, non-
binding judicial supervised mediation, and judicial arbitration to resolve disputes
on construction claims of $375,000 or less. Effective January 1, 2017, Section
9204 of the Public Contract Code prescribes a process for negotiation and
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mediation to resolve disputes on construction claims. The intent of this Section is
to implement Sections 20104 et seq. and Section 9204 of the California Public
Contract Code. This Section shall be construed to be consistent with said statutes.
Claims: For purposes of this Section, “Claim” means a separate demand by
CONTRACTOR, after a change order duly requested in accordance with the terms
of this Contract has been denied by the CITY, for (A) a time extension, (B) payment
of money or damages arising from Work done by or on behalf of CONTRACTOR
pursuant to the Contract, or (C) an amount the payment of which is disputed by
the CITY. A “Claim” does not include any demand for payment for which
CONTRACTOR has failed to provide notice, request a change order, or otherwise
failed to follow any procedures contained in the Contract Documents. Claims
governed by this Section may not be filed unless and until CONTRACTOR
completes all procedures for giving notice of delay or change and for the
requesting of a time extension or change order, including but not necessarily
limited to the change order procedures contained herein, and CONTRACTOR’s
request for a change has been denied in whole or in part. Claims governed by this
Section must be filed no later than fourteen (14) days after a request for change
has been denied in whole or in part or after any other event giving rise to the Claim.
The Claim shall be submitted in writing to the CITY and shall include on its first
page the following in 16 point capital font: “THIS IS A CLAIM.” Furthermore, the
claim shall include the documents necessary to substantiate the claim. Nothing in
this Section is intended to extend the time limit or supersede notice requirements
otherwise provided by contract for the filing of claims, including all requirements
pertaining to compensation or payment for extra Work, disputed Work, and/or
changed conditions. Failure to follow such contractual requirements shall bar any
claims or subsequent lawsuits for compensation or payment thereon.
Supporting Documentation: The CONTRACTOR shall submit all claims in the
following format:
Summary of claim merit and price, reference Contract Document provisions
pursuant to which the claim is made
List of documents relating to claim:
Specifications
Drawings
Clarifications (Requests for Information)
Schedules
Other
Chronology of events and correspondence
Analysis of claim merit
Analysis of claim cost
Time impact analysis in CPM format
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If CONTRACTOR’s claim is based in whole or in part on an allegation of
errors or omissions in the Drawings or Specifications for the Project,
CONTRACTOR shall provide a summary of the percentage of the claim
subject to design errors or omissions and shall obtain a certificate of merit
in support of the claim of design errors and omissions.
Cover letter and certification of validity of the claim, including any claims
from subcontractors of any tier, in accordance with Government Code
section 12650 et seq.
City’s Response. Upon receipt of a claim pursuant to this Section, CITY shall conduct a
reasonable review of the claim and, within a period not to exceed 45 days, shall provide
CONTRACTOR a written statement identifying what portion of the claim is disputed and
what portion is undisputed. Any payment due on an undisputed portion of the claim will
be processed and made within 60 days after the public entity issues its written statement.
If CITY needs approval from its governing body to provide the CONTRACTOR a
written statement identifying the disputed portion and the undisputed portion of the
claim, and the governing body does not meet within the 45 days or within the
mutually agreed to extension of time following receipt of a claim sent by registered
mail or certified mail, return receipt requested, CITY shall have up to three days
following the next duly publicly noticed meeting of the governing body after the 45-
day period, or extension, expires to provide CONTRACTOR a written statement
identifying the disputed portion and the undisputed portion.
Within 30 days of receipt of a claim, CITY may request in writing additional
documentation supporting the claim or relating to defenses or claims CITY may
have against the CONTRACTOR. If additional information is thereafter required, it
shall be requested and provided pursuant to this subdivision, upon mutual
agreement of CITY and the CONTRACTOR.
CITY’s written response to the claim, as further documented, shall be submitted to
CONTRACTOR within 30 days (if the claim is less than $50,000, within 15 days)
after receipt of the further documentation, or within a period of time no greater than
that taken by CONTRACTOR in producing the additional information or requested
documentation, whichever is greater.
Meet and Confer. If the CONTRACTOR disputes CITY’s written response, or CITY fails
to respond within the time prescribed, the CONTRACTOR may so notify CITY, in writing,
either within 15 days of receipt of CITY’s response or within 15 days of CITY’s failure to
respond within the time prescribed, respectively, and demand an informal conference to
meet and confer for settlement of the issues in dispute. Upon receipt of a demand, CITY
shall schedule a meet and confer conference within 30 days for settlement of the dispute.
Mediation. Within 10 business days following the conclusion of the meet and confer
conference, if the claim or any portion of the claim remains in dispute, CITY shall provide
the CONTRACTOR a written statement identifying the portion of the claim that remains
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in dispute and the portion that is undisputed. Any payment due on an undisputed portion
of the claim shall be processed and made within 60 days after CITY issues its written
statement. Any disputed portion of the claim, as identified by CONTRACTOR in writing,
shall be submitted to nonbinding mediation, with CITY and CONTRACTOR sharing the
associated costs equally. CITY and CONTRACTOR shall mutually agree to a mediator
within 10 business days after the disputed portion of the claim has been identified in
writing unless the parties agree to select a mediator at a later time.
If the Parties cannot agree upon a mediator, each Party shall select a mediator
and those mediators shall select a qualified neutral third party to mediate with
regard to the disputed portion of the claim. Each Party shall bear the fees and costs
charged by its respective mediator in connection with the selection of the neutral
mediator.
For purposes of this section, mediation includes any nonbinding process,
including, but not limited to, neutral evaluation or a dispute review board, in which
an independent third party or board assists the Parties in dispute resolution
through negotiation or by issuance of an evaluation. Any mediation utilized shall
conform to the timeframes in this section.
Unless otherwise agreed to by CITY and CONTRACTOR in writing, the mediation
conducted pursuant to this section shall excuse any further obligation under
Section 20104.4 to mediate after litigation has been commenced.
The mediation shall be held no earlier than the date CONTRACTOR completes
the Work or the date that CONTRACTOR last performs Work, whichever is earlier.
All unresolved claims shall be considered jointly in a single mediation unless a new
unrelated claim arises after mediation is completed.
Procedures After Mediation. If following the mediation, the claim or any portion remains
in dispute, CONTRACTOR must file a claim pursuant to Chapter 1 (commencing with
Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of
Title 1 of the Government Code. For purposes of those provisions, the running of the
period of time within which a claim must be filed shall be tolled from the time
CONTRACTOR submits his or her written claim pursuant to subdivision (a) until the time
the claim is denied, including any period of time utilized by the meet and confer
conference or mediation.
Civil Actions. The following procedures are established for all civil actions filed to resolve
claims subject to this Section:
Within 60 days, but no earlier than 30 days, following the filing or responsive
pleadings, the court shall submit the matter to non-binding mediation unless
waived by mutual stipulation of both parties or unless mediation was held prior to
commencement of the action in accordance with Public Contract Code section
9204 and the terms of these procedures.. The mediation process shall provide for
the selection within 15 days by both parties of a disinterested third person as
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mediator, shall be commenced within 30 days of the submittal, and shall be
concluded within 15 days from the commencement of the mediation unless a time
requirement is extended upon a good cause showing to the court.
If the matter remains in dispute, the case shall be submitted to judicial arbitration
pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of
the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The
Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter
3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding
brought under this subdivision consistent with the rules pertaining to judicial
arbitration.
In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3
of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced
in construction law, and (B) any party appealing an arbitration award who does not
obtain a more favorable judgment shall, in addition to payment of costs and fees
under that chapter, also pay the attorney’s fees on appeal of the other party.
Government Code Claims. In addition to any and all contract requirements
pertaining to notices of and requests for compensation or payment for extra work,
disputed work, claims and/or changed conditions, CONTRACTOR must comply
with the claim procedures set forth in Government Code sections 900 et seq. prior
to filing any lawsuit against the CITY. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to
those matters that remain unresolved after all procedures pertaining to extra work,
disputed work, claims, and/or changed conditions have been followed by
CONTRACTOR. If no such Government Code claim is submitted, or if any
prerequisite contractual requirements are not otherwise satisfied as specified
herein, CONTRACTOR shall be barred from bringing and maintaining a valid
lawsuit against the CITY. A Government Code claim must be filed no earlier than
the date the work is completed or the date CONTRACTOR last performs work on
the Project, whichever occurs first. A Government Code claim shall be inclusive of
all unresolved claims unless a new unrelated claim arises after the Government
Code claim is submitted.
Non-Waiver. CITY’s failure to respond to a claim from CONTRACTOR within the
time periods described in this Section or to otherwise meet the time requirements
of this Section shall result in the claim being deemed rejected in its entirety. CITY’s
failure to respond shall not waive CITY’s rights to any subsequent procedures for
the resolution of disputed claims.
24. NON-DISCRIMINATION: Contractor represents that it is an equal opportunity
employer and that it shall not discriminate against any employee or applicant for
employment because of race, religion, color, national origin, ancestry, sex, age or
other interests protected by the State or Federal Constitutions. Such non-
discrimination shall include, but not be limited to, all activities related to initial
employment, upgrading, demotion, transfer, recruitment or recruitment advertising,
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layoff or termination. A violation of this section exposes CONTRACTOR to the
penalties provided for in Labor Code Section 1735.
25. TERMINATION: This Contract may be terminated by CITY at any time, either with
our without cause, by giving CONTRACTOR three (3) days advance written notice.
In the event of termination by CITY for any reason other than the fault of
CONTRACTOR, CITY shall pay CONTRACTOR for all Work performed up to that
time as provided herein. In the event of breach of the Contract by Contractor, CITY
may terminate the Contract immediately without notice, may reduce payment to
CONTRACTOR in the amount necessary to offset CITY’s resulting damages, and
may pursue any other available recourse against CONTRACTOR.
CONTRACTOR may not terminate this Contract except for cause. In the event
this Contract is terminated in whole or in part as provided, CITY may procure, upon
such terms and in such manner as it may determine appropriate, services similar
to those terminated. Further, if this Contract is terminated as provided, CITY may
require CONTRACTOR to provide all finished or unfinished documents, data,
diagrams, drawings, materials or other matter prepared or built by CONTRACTOR
in connection with its performance of this Contract.
26. ANTI-TRUST CLAIMS: This provision shall be operative if this Contract
Agreement is applicable to California Public Contract Code Section 7103.5. In
entering into this Contract Agreement to supply goods, services or materials,
Contractor hereby offers and agrees to assign to the Agency all rights, title, and
interest in and to all causes of action it may have under Section 4 of the Clayton
Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing
with Section 16700, of Part 2 of Division 7 of the Business and Professions Code)
arising from purchases of goods, services, or materials pursuant to the Contract
Agreement. This assignment shall be made and become effective at the time the
Agency tender final payment to Contractor, without further acknowledgment by the
Parties.
27. NO THIRD PARTY BENEFICIARY: This Contract and every provision herein is
for the exclusive benefit of the Contractor and the City and not for the benefit of
any other party. There will be no incidental or other beneficiaries of any of the
Contractor’s or the City’s obligations under this Contract.
28. TIME IS OF ESSENCE: Time is of the essence for each and every provision of
the Contract Documents.
29. FORCE MAJEURE: If CONTRACTOR is delayed in the performance or progress
of the work by a Force Majeure Event, then the CONTRACTOR shall be entitled
to a time extension, as provided in the contract documents, when the work stopped
is on the critical path and shall not be charged liquidated damages. Such a non-
compensable adjustment shall be CONTRACTOR’s sole and exclusive remedy for
such delays and the CONTRACTOR will not receive an adjustment to the contract
price or any other compensation. Contractor must submit a timely request in
accordance with the requirements of the contract documents. A Force Majeure
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Event shall mean an event that materially affects a party’s performance and is one
or more of the following: (1) Acts of God or other natural disasters occurring at the
project site; (2) terrorism or other acts of a public enemy; (3) orders of
governmental authorities (including, without limitation, unreasonable and
unforeseeable delay in the issuance of permits or approvals by governmental
authorities that are required for the work); (4) pandemics, epidemics or quarantine
restrictions; and (5) strikes and other organized labor action occurring at the project
site and the effects thereof on the work, only to the extent such strikes and other
organized labor action are beyond the control of CONTRACTOR and its
subcontractors, of every tier, and to the extent the effects thereof cannot be
avoided by use of replacement workers. For purposes of this section, “orders of
governmental authorities,” includes ordinances, emergency proclamations and
orders, rules to protect the public health, welfare and safety, and other actions of
the City in its capacity as a municipal authority.
30. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE: Each
and every provision of law required to be included in these Contract Documents
shall be deemed to be included in these Contract Documents. The Contractor
shall comply with all requirements of applicable federal, state and local laws, rules
and regulations, including, but not limited to, the provisions of the California Labor
Code and California Public Contract Code which are applicable to this Work.
31. ACCEPTANCE OF FACSIMILE SIGNATURES: The Parties agree that this
Contract, agreements ancillary to this Contract, and related documents to be
entered into in connection with this Contract will be considered signed when the
signature of a party is delivered by facsimile transmission. Such facsimile
signature will be treated in all respects as having the same effect as an original
signature.
32. GOVERNING LAW: This Agreement shall be governed by the laws of the State
of California, and exclusive venue for any action involving this Contract will be in
Los Angeles County.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement with
all the formalities required by law on the respective dates set forth opposite their
signatures.
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State of California CONTRACTOR'S License No. __
CONTRACTOR
_______________________________________________________________
TITLE Date
CITY OF ROLLING HILLS, CALIFORNIA
_______________________________________________________________
CITY MANAGER Date
ATTEST:
_______________________________________________________________
CITY CLERK Date CONTRACTOR'S Business Phone
Emergency Phone at which CONTRACTOR can be reached at any time:
APPROVED AS TO FORM:
_______________________________________________________________
CITY ATTORNEY Date
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AGREEMENT OF INDEMNIFICATION
AND HOLD HARMLESS AND WAIVER OF SUBROGATION AND CONTRIBUTION
City Hall HVAC Replacement Project, Job No. 2023-01
AC Pros Inc., a California Corporation, Contractor License # 871821 (“Indemnitor”):
To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and
expense, to defend, protect, indemnify, and hold harmless the City of Rolling Hills and its
respective elected officials, officers, attorneys, agents, employees, volunteers,
successors, and assigns (collectively “Indemnitees”) from and against any and all
damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings,
expenses, judgments, penalties, liens, and losses of any nature whatsoever, including
fees of accountants, attorneys, or other professionals and all costs associated therewith
(collectively “Liabilities”), arising or claimed to arise, directly or indirectly, out of, in
connection with, resulting from, or related to any act, failure to act, error, or omission of
Indemnitor or any of its officers, agents, servants, employees, subcontractors,
materialmen, suppliers or their officers, agents, servants or employees, arising or claimed
to arise, directly or indirectly, out of, in connection with, resulting from, or related to the
above-referenced contract, agreement, license, or permit (the “Agreement”) or the
performance or failure to perform any term, provision, covenant, or condition of the
Agreement, including this indemnity provision. This indemnity provision is effective
regardless of any prior, concurrent, or subsequent active or passive negligence by
Indemnitees and shall operate to fully indemnify Indemnitees against any such
negligence. This indemnity provision shall survive the termination of the Agreement and
is in addition to any other rights or remedies which Indemnitees may have under the law.
Payment is not required as a condition precedent to an Indemnitee’s right to recover under
this indemnity provision, and an entry of judgment against an Indemnitee shall be
conclusive in favor of the Indemnitee’s right to recover under this indemnity provision.
Indemnitor shall pay Indemnitees for any attorney fees and costs incurred in enforcing
this indemnification provision. Notwithstanding the foregoing, nothing in this instrument
shall be construed to encompass (a) Indemnitees’ sole negligence or willful misconduct
to the limited extent that the underlying Agreement is subject to Civil Code 2782(a), or (b)
the contracting public agency’s active negligence to the limited extent that the underlying
Agreement is subject to Civil Code 2782(b). This indemnity is effective without reference
to the existence or applicability of any insurance coverages which may have been
required under the Agreement or any additional insured endorsements which may extend
to Indemnitees.
Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives
all rights of subrogation and contribution against the Indemnitees, while acting within the
scope of their duties, from all claims, losses and liabilities arising out of or incident to
activities or operations performed by or on behalf of the Indemnitor regardless of any
prior, concurrent, or subsequent active or passive negligence by the Indemnitees.
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Accountants, attorneys, or other professionals employed by Indemnitor to defend
Indemnitees shall be selected by Indemnitees.
In the event there is more than one person or entity named in the Agreement as an
Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument
shall be joint and several.
“Indemnitor”
Name: Noam Ziv, President
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Agenda Item No.: 12.C
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:CHRISTIAN HORVATH, CITY CLERK / EXECUTIVE ASSISTANT TO
CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:CONSIDERATION AND APPROVAL TO AWARD A CONSTRUCTION
CONTRACT TO UNLIMITED ENVIRONMENTAL, INC. FOR THE
DEMOLITION PACKAGE FOR: STANDBY GENERATOR REMOVAL,
WATERPROOF REMOVAL, & ELECTRICAL SERVICES PROJECT
#2023-02 AT AN AMOUNT OF $54,700; ADOPT BY RESOLUTION NO.
1330 AUTHORIZING A BUDGET MODIFICATION OF $60,170; DIRECT
THE CITY ATTORNEY TO FINALIZE A CONSTRUCTION CONTRACT;
AND AUTHORIZE THE CITY MANAGER TO EXECUTE; AND FIND THE
SAME EXEMPT FROM CEQA
DATE:March 13, 2023
BACKGROUND:
The current emergency standby generator is outdated and no longer functioning properly.
Over the past five years City staff had enlisted several maintenance firms to service the
existing generator. The existing emergency standby generator was at the end of its life cycle
and the City is looking to replace the existing equipment with a new emergency standby
generator. Repair activities for the current generator was presented to the City Council on
October 26, 2020. Based on the information provided, the City Council directed staff to seek
professional expertise to assist staff with unit replacement.
At the January 11, 2021 City Council meeting, City Council approved an amended agreement
with Pacific Architecture and Engineering Inc. to assess the existing standby generator for the
City Hall campus, provide a report on their findings, and discuss options to replace the existing
non-working standby generator. The draft of the Standby Generator Assessment Report was
delivered to the City on April 21, 2021. Pacific Architecture and Engineering, Inc. met with City
staff on April 30, 2021 to review and discuss the report and findings. The Final Report was
updated and submitted to the City on May 5, 2021 and City Staff presented to City Council on
May 10, 2021. In summary, The report identified the parameters and constraints for the
replacement standby generator/system Based on review of the prior 12 months electric bills,
determined the existing 75 kw could be replaced with an equivalent sized system that would
sufficient for the current building loads (City Hall and Rolling Hills Community Association
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(RHCA) Building). The existing structure housing the generator does not comply with current
code requirements for clearances and has water intrusion with water collecting in the fuel moat
with the potential infiltrate into the electrical system and cause damage. This building would
need to be removed, replaced, or repaired for repurposing.
The report presented to City Council on May 10, 2021 provided 3 Options for consideration
and an interim solution. City Council raised numerous questions about the report during the
May 10, 2021 meeting and moved to continue this item to a future meeting pending responses
to questions raised. Pacific Architecture and Engineering Inc. provided responses to the list of
questions generated. The questions and responses were reviewed and discussed at the May
24, 2021 City Council meeting. At the May 24, 2021 meeting City Council directed staff to: 1)
Pursue the Solar Option to replace the existing Emergency Standby Generator, and; 2)
Consider leasing portable generator to provide emergency standby power until the Solar
option is designed and installed, and; 3) Verify the portable generator could connect to the
existing Automatic Transfer Switch (ATS), and; 4) Remove the existing non-functioning
emergency standby generator, and: 5) Repair the water intrusion problem at the existing
generator structure repaired.
At the June 14, 2021 City Council meeting, City Council approved the second amendment to
the contract with Pacific Architecture and Engineering Inc. for design services required to
address the direction provided by City Council.
At the November 22, 2021 City Council Meeting staff presented Pacific Architecture and
Engineering Inc's prepared plans and specifications for the demolition (removal) of the existing
emergency generator and to address the water intrusion problem at the existing generator
structure. Those plans and specifications were ready to put out to bid.
In January, 2022, The City released a Notice Inviting Sealed Bids for this project with a closing
date of February 9, 2022. There were no responsive bidders at closing.
DISCUSSION:
On January 31, 2023, the City officially released the Demolition Package for: Standby
Generator Removal, Waterproof Removal, & Electrical Services Project # 2023-02 Bid and
posted it on the City's website.
On February 2nd and 9th, 2023, the City published the Request for Bid in a local newspaper
as mandated by the State Public Contract Code.
On February 16, 2023, the City hosted an optional job walk for interested bidders. Project
Manager Alan Palermo was on site to facilitate the walkthrough.
On February 28, 2023, the City received two (2) sealed bids at the 1pm Bid Closing via FedEx.
The order ranked the lowest responsive bid for work included are as follows:
Bidder Address Amount
Unlimited Environmental, Inc.2300 E Curry St Building B,
Long Beach, CA, 90805 $54,700
Integrated Demolition and
Remediation, Inc.
4938 E. La Palma Ave.
Anaheim, CA 92807 $79,800
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Staff validated all bids received and determined that Unlimited Environmental, Inc. is the
lowest responsive and responsible bidder. Staff recommendation is to award the construction
contract to Unlimited Environmental, Inc. for $54,700 and allocate an additional $5,470 as a
10% contingency for a total of $60,170.
ENVIRONMENTAL REVIEW
The solicitation for bids did not constitute a Project as defined under the California
Environmental Quality Act (“CEQA”). Further, the removal at City Hall was exempt from CEQA
pursuant to section 15301 of the CEQA Guidelines (Existing facilities) in that it involves minor
alteration of existing public facilities/mechanical equipment by removing the existing, non-
functioning emergency generator and providing waterproofing and electrical services. Also,
this project is exempt from CEQA pursuant to section 15061 in that it can be seen with
certainty that the removal of a non-functioning, emergency generator will not have a significant
effect on the environment.”
FISCAL IMPACT:
The removal of the Standby Generator is not budgeted in the FY 2022-2023 adopted budget.
As such, Council action is required to amend the budget and increase budgeted
appropriations by $60,170 in the Capital Projects Fund which will be funded from a transfer of
available General Fund reserves. The use of General Fund reserves for these purposes is
consistent with City policy.
COST: $60,170 includes 10% contingency.
RECOMMENDATION:
Approve as presented.
ATTACHMENTS:
CL_PBN_230131_NOB_2023-02_CH_StandbyGeneratorDemo_Affidavit.pdf
CL_PBN_230209_NOB_2023-02_CH_StandbyGeneratorDemo_Affidavit_2nd.pdf
CL_BID_230228_2023-02_CH_StandbyGeneratorDemo_ID&RInc.pdf
CL_BID_230228_2023-02_CH_StandbyGeneratorDemo_UnlimitedEnvInc.pdf
ResolutionNo1330_GeneratorRemovalProject2023-02_BudgetAmendment.pdf
CA_AGR_230313_Unlimited Environmental_GeneratorRemovalProject2023-02_Draft.pdf
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RESOLUTION NO. 1330
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS. CALIFORNIA AUTHORIZING A
FISCAL YEAR 2022-2023 BUDGET MODIFICATION
TO INCREASE APPROPRIATIONS IN THE CAPITAL
PROJECTS FUND BY $60,170.00 FUNDED FROM A
TRANSFER OF GENERAL FUND RESERVES FOR
THE CONSTRUCTION CONTRACT WITH UNLIMITED
ENVIRONMENTAL INC., FOR THE STANDBY
GENERATOR REMOVAL, WATERPROOF REMOVAL
& ELECTRICAL SERVICES
THE CITY COUNCIL OF THE CITY OF ROLLING HILLS, CALIFORNIA,
DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1. Recitals.
A. It is the intention of the City Council of the City of Rolling Hills to
review the adopted budget from time to time.
B. On or around January 30, 2023, the City released a Notice Inviting
Sealed Bids for the Standby Generator Removal, Waterproof Removal, &
Electrical Services, Job No. 2023-02 (“Project”).
C. The City received two bids for the Project. On or around February
28, 2023, the City publicly opened the bids. The low bid, from Unlimited
Environmental, Inc., a California corporation, was in the amount of fifty four
thousand seven hundred dollars ($54,700.00).
D. On or around March 13, 2023, the City Council was presented with
the bid from Unlimited Environmental, Inc. and declared Unlimited
Environmental, Inc. the lowest responsible bidder. Further, the City Council
authorized the City Manager to execute a written contract Unlimited
Environmental, Inc. for the Project.
E. The City desires to appropriate $60,170.00 (includes a 10%
contingency) in the Capital Projects Fund for the Construction Contract with
Unlimited Environmental, Inc. (attached as Exhibit “A”).
Section 2. The sum sixty thousand, one hundred and seventy dollars
($60,170.00) is hereby appropriated in the Capital Projects Fund funded from a
transfer of General Fund reserves to fund the Construction Contract with
Unlimited Environmental, Inc.
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Section 3. This Resolution shall take effect immediately upon its
adoption by the City Council, and the City Clerk shall certify to the passage and
adoption of this Resolution and enter it into the book or original resolutions.
PASSED, APPROVED, AND ADOPTED this 13th day of March, 2023
______________________________
PAT WILSON
MAYOR
ATTEST:
___________________________
CHRISTIAN HORVATH
CITY CLERK
236
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF ROLLING HILLS )
I certify that the foregoing Resolution No. 1330 entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ROLLING HILLS. CALIFORNIA AUTHORIZING A
FISCAL YEAR 2022-2023 BUDGET MODIFICATION
TO INCREASE APPROPRIATIONS IN THE CAPITAL
PROJECTS FUND BY $60,170.00 FUNDED FROM A
TRANSFER OF GENERAL FUND RESERVES FOR
THE CONSTRUCTION CONTRACT WITH UNLIMITED
ENVIRONMENTAL INC., FOR THE STANDBY
GENERATOR REMOVAL, WATERPROOF REMOVAL
& ELECTRICAL SERVICES
was approved and adopted at a regular meeting of the City Council on March 13,
2023, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
CHRISTIAN HORVATH, CITY CLERK
Christian Horvath, City Clerk
237
Exhibit A
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CONTRACT AGREEMENT
This Construction Agreement (“Agreement”) is made and entered into as of the
date executed by the City Manager and attested to by the City Clerk, by and between
Unlimited Environmental, Inc., a California corporation (hereinafter referred to as
"CONTRACTOR") and the City of Rolling Hills, California, a municipal corporation
(hereinafter referred to as "CITY").
R E C I T A L S
A. Pursuant to the Notice Inviting Sealed Bids for the Standby Generator Removal,
Waterproof Removal, & Electrical Services, Job No. 2023-02 (Project”), bids were
received, publicly opened, and declared on the date specified in the notice; and
B. On March 13, 2023, City’s City Council declared CONTRACTOR to be the lowest
responsible bidder and accepted the bid of CONTRACTOR; and
C. The City Council has authorized the City Manager to execute a written contract with
CONTRACTOR for furnishing labor, equipment and material for the Standby
Generator Removal, Waterproof Removal, & Electrical Services, Job No. 2023-02 in
the City of Rolling Hills.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein
contained, it is agreed:
1. GENERAL SCOPE OF WORK: CITY agrees to engage CONTRACTOR and
CONTRACTOR agrees to furnish all necessary labor, tools, materials, for the
Project in the City of Rolling Hills. The work shall be performed in accordance with
the Plans and Specifications dated [INSERT DATE], (the “Specifications”) on file
in the office of the City Clerk and in accordance with bid prices set forth in
CONTRACTOR’S Bid Proposal and in accordance with the instructions of the City.
2. INCORPORATED DOCUMENTS TO BE CONSIDERED COMPLEMENTARY:
The contract documents for the aforesaid project shall consist of all the documents
and exhibits in the Request for Bid and all referenced specifications, details,
standard drawings, and appendices; together with this Agreement and all required
bonds, insurance certificates, permits, notices and affidavits; and also, including
any and all addenda or supplemental agreements clarifying, amending, or
extending the work contemplated as may be required to insure its completion in an
acceptable manner. All of the provisions of said contract documents are made a
part hereof as though fully set forth herein. This contract is intended to require a
complete and finished piece of work and anything necessary to complete the work
properly and in accordance with the law and lawful governmental regulations shall
be performed by CONTRACTOR whether set out specifically in the contract or not.
Should it be ascertained that any inconsistency exists between the aforesaid
documents and this written agreement, the provisions of this Agreement shall
govern. Collectively, these contract documents constitute the complete agreement
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between CITY and CONTRACTOR and supersede any previous agreements or
understandings.
3. COMPENSATION: CONTRACTOR agrees to receive and accept the prices set
forth in its Bid Proposal of fifty four thousand seven hundred dollars ($54,700.00)
as full compensation for furnishing all materials, performing all work, and fulfilling
all obligations hereunder. Said compensation shall cover all expenses, losses,
damages, and consequences arising out of the nature of the work during its
progress or prior to its acceptance including those for well and faithfully completing
the work and the whole thereof in the manner and time specified in the aforesaid
contract documents; and also including those arising from actions of the elements,
unforeseen difficulties or obstructions encountered in the prosecution of the work,
suspension or discontinuance of the work, and all other unknowns or risks of any
description connected with the work.
4. TIME OF PERFORMANCE: CONTRACTOR agrees to complete the work within
[INSERT VALUE] worki ng days from the date of the notice to proceed. By signing
this Agreement, CONTRACTOR represents to CITY that the contract time is
reasonable for completion of the work and that CONTRACTOR will complete such
work within the contract time.
5. LIQUIDATED DAMAGES: In accordance with Government Code section
53069.85, it is agreed that CONTRACTOR will pay to CITY the sum of be
$1000/day for each and every calendar day of delay beyond the time prescribed
in the Contract Documents for finishing the Work, as Liquidated Damages and not
as a penalty or forfeiture. In the event this is not paid, CONTRACTOR agrees CITY
may deduct that amount from any money due or that may become due
CONTRACTOR under the Contract. This Article does not exclude recovery of other
damages specified in the Contract Documents.
6. SUBSTITUTION OF SECURITIES: Pursuant to section 22300 of the Public
Contract Code of the State of California, CONTRACTOR may request CITY to
make retention payments directly to an escrow agent or may substitute securities
for any money withheld by CITY to ensure performance under the contract. At the
request and expense of CONTRACTOR, securities equivalent to the amount
withheld shall be deposited with CITY or with a state or federally chartered bank
as the escrow agent who shall return such securities to CONTRACTOR upon
satisfactory completion of the contract. Deposit of securities with an escrow agent
shall be subject to a written agreement substantially in the form provided in section
22300 of the Public Contract Code.
7. PREVAILING WAGES AND CALIFORNIA LABOR LAWS.
Pursuant to Labor Code §§ 1720 et seq., and as specified in 8 California Code of
Regulations § 16000 (“Prevailing Wage Laws”), CONTRACTOR must pay its
workers prevailing wages. It is CONTRACTOR’s responsibility to interpret and
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implement any prevailing wage requirements, and CONTRACTOR agrees to pay
any penalty or civil damages resulting from a violation of the prevailing wage laws.
CONTRACTOR shall defend, indemnify and hold the CITY, its officials, officers,
employees and agents free and harmless from any claim or liability arising out of
any failure or alleged failure to comply with the Prevailing Wage Laws.
CONTRACTOR and any subcontractor shall forfeit a penalty of up to $200 per
calendar day or portion thereof for each worker paid less than the prevailing wage
rates.
In accordance with Labor Code § 1773.2, copies of the prevailing rate of per diem
wages are available upon request from CITY’s Engineering Division or the website
for State of California Prevailing wage determination at
http://www.dir.ca.gov/DLSR/PWD. CONTRACTOR must post a copy of the
prevailing rate of per diem wages at the job site.
CITY directs CONTRACTOR’s attention to Labor Code §§ 1777.5, 1777.6 and
3098 concerning the employment of apprentices by CONTRACTOR or any
subcontractor.
Labor Code § 1777.5 requires CONTRACTOR or subcontractor employing
tradesmen in any apprenticeship occupation to apply to the joint apprenticeship
committee nearest the site of the public works project and which administers the
apprenticeship program in that trade for a certificate of approval. The certificate
must also fix the ratio of apprentices to journeymen that will be used in the
performance of the contract. The ratio of apprentices to journeymen in such cases
will not be less than one to five except:
When employment in the area of coverage by the joint apprenticeship committee
has exceeded an average of 15 percent in the 90 days before the request for
certificate, or
When the number of apprentices in training in the area exceeds a ratio of one to
five, or
When the trade can show that it is replacing at least 1/30 of its membership through
apprenticeship training on an annual basis state-wide or locally, or
Assignment of an apprentice to any work performed under a public works contract
would create a condition that would jeopardize his or her life or the life, safety, or
property of fellow employees or the public at large, or the specific task to which the
apprentice is to be assigned is of a nature that training cannot be provided by a
journeyman.
When CONTRACTOR provides evidence that CONTRACTOR employs registered
apprentices on all of his contracts on an annual average of not less than one
apprentice to eight journeymen.
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CONTRACTOR is required to make contributions to funds established for the
administration of apprenticeship programs if CONTRACTOR employs registered
apprentices or journeymen in any apprenticeable trade on such contracts and if
other contractors on the public works site are making such contributions.
CONTRACTOR and any subcontractor must comply with Labor Code §§ 1777.5
and 1777.6 in the employment of apprentices.
Information relative to apprenticeship standards, wage schedules and other
requirements may be obtained from the Director of Industrial Relations, ex-officio
the Administrator of Apprenticeship, San Francisco, California, or from the Division
of Apprenticeship Standards and its branch offices.
The CONTRACTOR or any subcontractor that is determined by the Labor
Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil
penalty an amount not exceeding $100 for each full calendar day of
noncompliance, or such greater amount as provided by law.
CONTRACTOR and each subcontractor shall keep an accurate payroll record,
showing the name, address, social security number, work classification, straight
time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed
by him or her in connection with the public work. The payroll records shall be
certified and shall be available for inspection at all reasonable hours at the principal
office of CONTRACTOR in the manner provided in Labor Code section 1776. In
the event of noncompliance with the requirements of this section, CONTRACTOR
shall have 10 days in which to comply subsequent to receipt of written notice
specifying in what respects such CONTRACTOR must comply with this section.
Should noncompliance still be evident after such 10-day period, CONTRACTOR
shall, as a penalty to CITY, forfeit not more than $100.00 for each calendar day or
portion thereof, for each worker, until strict compliance is effectuated. The amount
of the forfeiture is to be determined by the Labor Commissioner. A contractor who
is found to have violated the provisions of law regarding wages on Public Works
with the intent to defraud shall be ineligible to bid on Public Works contracts for a
period of one to three years as determined by the Labor Commissioner. Upon the
request of the Division of Apprenticeship Standards or the Division of Labor
Standards Enforcement, such penalties shall be withheld from progress payments
then due. The responsibility for compliance with this section is on CONTRACTOR.
The requirement to submit certified payroll records directly to the Labor
Commissioner under Labor Code section 1771.4 shall not apply to work performed
on a public works project that is exempt pursuant to the small project exemption
specified in Labor Code Section 1771.4.
Any ineligible contractor or subcontractor pursuant to Labor Code Sections
1777.1 and 1777.7 may not perform work on this Project.
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By executing this Contract, CONTRACTOR verifies that it fully complies with all
requirements and restrictions of state and federal law respecting the employment
of undocumented aliens, including, but not limited to, the Immigration Reform and
Control Act of 1986, as may be amended from time to time, and shall require all
subcontractors and sub-subcontractors to comply with the same.
8. LEGAL HOURS OF WORK: Eight (8) hours of labor shall constitute a legal day's
work for all workmen employed in the execution of this contract, and
CONTRACTOR and any subcontractor under it shall comply with and be governed
by the laws of the State of California having to do with working hours set forth in
Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California
as amended.
CONTRACTOR shall forfeit, as a penalty to City, twenty-five dollars ($25.00) for
each laborer, workman or mechanic employed in the execution of the contract, by
him or any subcontractor under it, upon any of the work hereinbefore mentioned,
for each calendar day during which the laborer, worker or mechanic is required or
permitted to labor more than eight (8) hours in any one calendar day or 40 hours
in any one calendar week in violation of the Labor Code.
9. PUBLIC WORKS CONTRACTOR REGISTRATION: Pursuant to Labor Code
sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on,
be listed in a bid proposal, or enter into a contract to perform public work must be
registered with the Department of Industrial Relations (DIR). No bid will be
accepted nor any contract entered into without proof of the contractor’s and
subcontractors’ current registration with the DIR to perform public work.
Notwithstanding the foregoing, the contractor registration requirements mandated
by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on
a public works project that is exempt pursuant to the small project exemption
specified in Labor Code Sections 1725.5 and 1771.1.
10. LABOR COMPLIANCE AND STOP ORDERS: This Project is subject to
compliance monitoring and enforcement by the DIR. It shall be CONTRACTOR’s
sole responsibility to evaluate and pay the cost of complying with all labor
compliance requirements under this Contract and applicable law. Any stop orders
issued by the DIR against CONTRACTOR or any subcontractor that affect
CONTRACTOR’s performance of Work, including any delay, shall be
CONTRACTOR’s sole responsibility. Any delay arising out of or resulting from
such stop orders shall be considered CONTRACTOR caused delay subject to any
applicable liquidated damages and shall not be compensable by the CITY.
CONTRACTOR shall defend, indemnify and hold CITY, its officials, officers,
employees and agents free and harmless from any claim or liability arising out of
stop orders issued by the DIR against CONTRACTOR or any subcontractor.
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11. DEBARMENT OF CONTRACTORS AND SUBCONTRACTORS: Contractors or
subcontractors may not perform work on a public works project with a
subcontractor who is ineligible to perform work on a public project pursuant to
Labor Code section 1777.1 or 1777.7. Any contract on a public works project
entered into between a contractor and a debarred subcontractor is void as a matter
of law. A debarred subcontractor may not receive any public money for performing
work as a subcontractor on a public works contract. Any public money that is paid,
or may have been paid to a debarred subcontractor by a contractor on the Project
shall be returned to the CITY. CONTRACTOR shall be responsible for the
payment of wages to workers of a debarred subcontractor who has been allowed
to work on the project.
12. LABOR/EMPLOYMENT SAFETY: CONTRACTOR shall comply with all applicable
laws and regulations of the federal, state, and local government, including
Cal/OSHA requirements and requirements for verification of employees’ legal right
to work in the United States
CONTRACTOR shall maintain emergency first aid treatment for its employees
which complies with the Federal Occupational Safety and Health Act of 1970 (29
U.S.C. § 651 et seq.), and California Code of Regulations, Title 8, Industrial
Relations Division 1, Department of Industrial Relations, Chapter 4.
CONTRACTOR shall ensure the availability of emergency medical services for its
employees in accordance with California Code of Regulations, Title 8, Section
1512.
CONTRACTOR shall submit the Illness and Injury Prevention Program and a
Project site specific safety program to CITY prior to beginning Work at the Project
site. CONTRACTOR shall maintain a confined space program that meets or
exceeds the CITY Standards. CONTRACTOR shall adhere to CITY’s lock out tag
out program
13. TRAVEL AND SUBSISTENCE PAY: CONTRACTOR agrees to pay travel and
subsistence pay to each worker needed to execute the work required by this
Agreement as such travel and subsistence payments are defined in the applicable
collective bargaining agreements filed in accordance with Labor Code Section
1773.8.
14. CONTRACTOR'S LIABILITY: The City of Rolling Hills and its respective elected
officials, officers, attorneys, agents, employees, volunteers, successors, and
assigns (collectively “Indemnitees”) shall not be answerable or accountable in any
manner for any loss or damage that may happen to the work or any part thereof,
or for any of the materials or other things used or employed in performing the work;
or for injury or damage to any person or persons, either workers or employees of
CONTRACTOR, of its subcontractors or the public, or for damage to adjoining or
other property from any cause whatsoever arising out of or in connection with the
performance of the work. CONTRACTOR shall be responsible for any damage or
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injury to any person or property resulting from defects or obstructions or from any
cause whatsoever.
To the fullest extent permitted by law, CONTRACTOR will indemnify
Indemnities against and will hold and save Indemnitees harmless from any and all
actions, claims, damages to persons or property, penalties, obligations or liabilities
that may be asserted or claimed by any person, firm, entity, corporation, political
subdivision, or other organization arising out of or in connection with the work,
operation, or activities of CONTRACTOR, its agents, employees, subcontractors
or invitees provided for herein, whether or not there is concurrent passive
negligence on the part of City. In connection therewith:
a. CONTRACTOR will defend any action or actions filed in connection
with any such claims, damages, penalties, obligations or liabilities
and will pay all costs and expenses, including attorneys' fees,
expert fees and costs incurred in connection therewith.
b. CONTRACTOR will promptly pay any judgment rendered against
CONTRACTOR or Indemnitees covering such claims, damages,
penalties, obligations and liabilities arising out of or in connection
with such work, operations or activities of CONTRACTOR
hereunder, and CONTRACTOR agrees to save and hold the
Indemnitees harmless therefrom.
c. In the event Indemnitees are made a party to any action or
proceeding filed or prosecuted against CONTRACTOR for damages
or other claims arising out of or in connection with the work, operation
or activities hereunder, CONTRACTOR agrees to pay to
Indemnitees and any all costs and expenses incurred by
Indemnitees in such action or proceeding together with reasonable
attorneys' fees.
Contractor's obligations under this section apply regardless of whether or
not such claim, charge, damage, demand, action, proceeding, loss, stop notice,
cost, expense, judgment, civil fine or penalty, or liability was caused in part or
contributed to by an Indemnitee. However, without affecting the rights of City
under any provision of this agreement, to the extent required by Civil Code section
2782, Contractor shall not be required to indemnify and hold harmless City for
liability attributable to the active negligence of City, provided such active
negligence is determined by agreement between the parties or by the findings of
a court of competent jurisdiction. In instances where City is shown to have been
actively negligent and where City active negligence accounts for only a percentage
of the liability involved, the obligation of Contractor will be for that entire portion or
percentage of liability not attributable to the active negligence of City.
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So much of the money due to CONTRACTOR under and by virtue of the
contract as shall be considered necessary by City may be retained by City until
disposition has been made of such actions or claims for damages as aforesaid.
It is expressly understood and agreed that the foregoing provisions are
intended to be as broad and inclusive as is permitted by the law of the State of
California. This indemnity provision shall survive the termination of the Agreement
and is in addition to any other rights or remedies which Indemnitees may have
under the law.
This indemnity is effective without reference to the existence or applicability
of any insurance coverage which may have been required under this Agreement
or any additional insured endorsements which may extend to Indemnitees.
CONTRACTOR, on behalf of itself and all parties claiming under or through
it, hereby waives all rights of subrogation and contribution against the Indemnitees,
while acting within the scope of their duties, from all claims, losses and liabilities
arising out of or incident to activities or operations performed by or on behalf of the
CONTRACTOR regardless of any prior, concurrent, or subsequent passive
negligence by the Indemnitees.
15. THIRD PARTY CLAIMS. In accordance with Public Contract Code § 9201, CITY
will promptly inform CONTRACTOR regarding third-party claims against
CONTRACTOR, but in no event later than ten (10) business days after CITY
receives such claims. Such notification will be in writing and forwarded in
accordance with the “Notice” section of this Agreement. As more specifically
detailed in the contract documents, CONTRACTOR agrees to indemnify and
defend the City against any third-party claim.
16. WORKERS COMPENSATION: In accordance with California Labor Code
Sections 1860 and 3700, CONTRACTOR and each of its subcontractors will be
required to secure the payment of compensation to its employees. In accordance
with the provisions of California Labor Code Section 1861, CONTRACTOR, by
signing this contract, certifies as follows: "I am aware of the provisions of Section
3700 of the Labor Code which require every employer to be insured against liability
for worker's 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.
17. INSURANCE: CONTRACTOR shall procure and maintain for the duration of the
Agreement, and for 1 year thereafter, insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the
performance of the work hereunder by the CONTRACTOR, its agents,
representatives, employees, or subcontractors.
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a. Minimum Scope and Limit of Insurance. Coverage shall be at least as broad
as:
i. Commercial General Liability (CGL): Insurance Services Office (ISO)
Form CG 00 01 covering CGL on an “occurrence” basis, including
products and completed operations, property damage, bodily injury and
personal & advertising injury with limits no less than $5,000,000 per
occurrence. If a general aggregate limit applies, either the general
aggregate limit shall apply separately to this project/location (ISO CG 25
03 or 25 04) or the general aggregate limit shall be twice the required
occurrence limit.
ii. Automobile Liability: Insurance Services Office Form CA 0001 covering
Code 1 (any auto), with limits no less than $5,000,000 per accident for
bodily injury and property damage.
iii. Workers’ Compensation insurance as required by the State of California,
with Statutory Limits, and Employers’ Liability insurance with a limit of no
less than $1,000,000 per accident for bodily injury or disease.
iv. Builder’s Risk (Course of Construction) insurance utilizing an “All Risk”
(Special Perils) coverage form, with limits equal to the completed value of
the project and no coinsurance penalty provisions.
v. Professional Liability (if Design/Build), with limits no less than $2,000,000
per occurrence or claim, and $2,000,000 policy aggregate.
vi. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or
Errors and Omissions (if project involves environmental hazards) with
limits no less than $1,000,000 per occurrence or claim, and $2,000,000
policy aggregate.
vii. If the contractor maintains broader coverage and/or higher limits than the
minimums shown above, the CITY requires and shall be entitled to the
broader coverage and/or the higher limits maintained by CONTRACTOR.
Any available insurance proceeds in excess of the specified minimum
limits of insurance and coverage shall be available to the CITY.
b. Self-Insured Retentions. Self-insured retentions must be declared to and
approved by the CITY. At the option of the CITY, either: the CONTRACTOR
shall obtain coverage to reduce or eliminate such self-insured retentions as
respects the CITY, its officers, officials, employees, and volunteers; or the
CONTRACTOR shall provide a financial guarantee satisfactory to the CITY
guaranteeing payment of losses and related investigations, claim
administration, and defense expenses. The policy language shall provide, or
be endorsed to provide, that the self-insured retention may be satisfied by
either the named insured or CITY.
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c. Other Insurance Provisions. The insurance policies are to contain, or be
endorsed to contain, the following provisions:
i. The CITY, its officers, officials, employees, and volunteers are to be
covered as additional insureds on the CGL policy with respect to liability
arising out of work or operations performed by or on behalf of the
CONTRACTOR including materials, parts, or equipment furnished in
connection with such work or operations and automobiles owned, leased,
hired, or borrowed by or on behalf of the CONTRACTOR. General liability
coverage can be provided in the form of an endorsement to the
CONTRACTOR’s insurance (at least as broad as ISO Form CG 20 10, CG
11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37
forms if later revisions used).
ii. For any claims related to this project, the CONTRACTOR’s insurance
coverage shall be primary insurance coverage at least as broad as ISO CG
20 01 04 13 as respects the CITY, its officers, officials, employees, and
volunteers. Any insurance or self-insurance maintained by the CITY, its
officers, officials, employees, or volunteers shall be excess of the
CONTRACTOR’s insurance and shall not contribute with it.
iii. Each insurance policy required by this clause shall provide that coverage
shall not be canceled, except with notice to the CITY.
d. Builder’s Risk (Course of Construction) Insurance.
i. CONTRACTOR may submit evidence of Builder’s Risk insurance in the
form of Course of Construction coverage. Such coverage shall name the
CITY as a loss payee as their interest may appear.
ii. If the Project does not involve new or major reconstruction, at the option of
the CITY, an Installation Floater may be acceptable. For such projects, a
Property Installation Floater shall be obtained that provides for the
improvement, remodel, modification, alteration, conversion or adjustment to
existing buildings, structures, processes, machinery, and equipment. The
Property Installation Floater shall provide property damage coverage for
any building, structure, machinery or equipment damaged, impaired,
broken, or destroyed during the performance of the Work, including during
transit, installation, and testing at the CITY’s site.
e. Claims Made Policies. If any coverage required is written on a claims-made
coverage form:
i. The retroactive date must be shown, and this date must be before the
execution date of the contract or the beginning of contract work.
ii. Insurance must be maintained and evidence of insurance must be provided
for at least five (5) years after completion of contract work.
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iii. If coverage is cancelled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the contract
effective, or start of work date, the CONTRACTOR must purchase extended
reporting period coverage for a minimum of five (5) years after completion
of contract work.
iv. A copy of the claims reporting requirements must be submitted to the CITY
for review.
v. If the services involve lead-based paint or asbestos
identification/remediation, the Contractors Pollution Liability policy shall not
contain lead-based paint or asbestos exclusions. If the services involve
mold identification/remediation, the Contractors Pollution Liability policy
shall not contain a mold exclusion, and the definition of Pollution shall
include microbial matter, including mold.
f. Acceptability of Insurers. Insurance is to be placed with insurers authorized
to conduct business in the state with a current A.M. Best rating of no less than
A: VII, unless otherwise acceptable to the CITY.
g. Waiver of Subrogation. CONTRACTOR hereby agrees to waive rights of
subrogation which any insurer of CONTRACTOR may acquire from
CONTRACTOR by virtue of the payment of any loss. CONTRACTOR agrees
to obtain any endorsement that may be necessary to affect this waiver of
subrogation. The Workers’ Compensation policy shall be endorsed with a
waiver of subrogation in favor of the CITY for all work performed by the
CONTRACTOR, its employees, agents and subcontractors.
h. Verification of Coverage. CONTRACTOR shall furnish the CITY with original
Certificates of Insurance including all required amendatory endorsements (or
copies of the applicable policy language effecting coverage required by this
clause) and a copy of the Declarations and Endorsement Page of the CGL
policy listing all policy endorsements to CITY before work begins. However,
failure to obtain the required documents prior to the work beginning shall not
waive the CONTRACTOR’s obligation to provide them. The CITY reserves the
right to require complete, certified copies of all required insurance policies,
including endorsements, required by these specifications, at any time.
i. Subcontractors. CONTRACTOR shall require and verify that all
subcontractors maintain insurance meeting all requirements stated herein,
and CONTRACTOR shall ensure that CITY is an additional insured on
insurance required from subcontractors. For CGL coverage, subcontractors
shall provide coverage with a form at least as broad as CG 20 38 04 13.
j. Special Risks or Circumstances. CITY reserves the right to modify these
requirements, including limits, based on the nature of the risk, prior
experience, insurer, coverage, or other circumstances.
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18. ASSIGNMENT: This contract is not assignable nor the performance of either
party's duties delegable without the prior written consent of the other party. Any
attempted or purported assignment or delegation of any of the rights of obligations
of either party without the prior written consent of the other shall be void and of no
force and effect.
19. INDEPENDENT CONTRACTOR: CONTRACTOR is and shall at all times remain
as to the CITY, a wholly independent contractor. Neither the CITY nor any of its
agents shall have control of the conduct of CONTRACTOR or any of
CONTRACTOR'S employees, except as herein set forth. CONTRACTOR shall not
at any time or in any manner represent that it or any of its agents or employees
are in any manner agents or employees of CITY.
20. TAXES: CONTRACTOR is responsible for paying all retail sales and use,
transportation, export, import, special or other taxes and duties applicable to, and
assessable against any work, materials, equipment, services, processes and
operations incidental to or involved in this contract. CONTRACTOR is responsible
for ascertaining and arranging to pay them. The prices established in the contract
shall include compensation for any taxes CONTRACTOR is required to pay by
laws and regulations in effect at the bid opening date.
21. LICENSES: CONTRACTOR represents and warrants to CITY that it has all
licenses, permits, qualifications, insurance, and approvals of whatsoever nature
which are legally required of CONTRACTOR to practice its profession.
CONTRACTOR represents and warrants to CITY that CONTRACTOR shall, at its
sole cost and expense, keep in effect or obtain at all times during the term of this
Agreement any licenses, permits, insurance, and approvals which are legally
required of CONTRACTOR to practice its profession.
Contractors are required by law to be licensed and regulated by the Contractors’
State License Board which has jurisdiction to investigate complaints against
contractors if a complaint regarding a patent act or omission is filed within five (5)
years of the date of the alleged violation. A complaint regarding a latent act or
omission pertaining to structural defects must be filed within ten (10) years of the
date of the alleged violation. Any questions concerning a contractor may be
referred to the Registrar, Contractors’ State License Board, P.O. Box 26000,
Sacramento, California 95826.
22. RECORDS: CONTRACTOR shall maintain accounts and records, including
personnel, property, and financial records, adequate to identify and account for all
costs pertaining to this Agreement and such other records as may be deemed
necessary by CITY or any authorized representative, and will be retained for four
years after the expiration of this Agreement. All such records shall be made
available for inspection or audit by CITY at any time during regular business hours.
23. SEVERABILITY: If any portion of these contract documents are declared by a
court of competent jurisdiction to be invalid or unenforceable, then such portion will
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be deemed modified to the extent necessary in the opinion of the court to render
such portion enforceable and, as so modified, such portion and the balance of this
Agreement will continue in full force and effect.
24. WHOLE AGREEMENT: This Agreement supersedes any and all other
agreements either oral or written, between the parties and contains all of the
covenants and agreements between the parties pertaining to the work of
improvements described herein. Each party to this contract acknowledges that no
representations, inducements, promises or agreements, orally or otherwise, have
been made by any party, or anyone acting on behalf of any party, which are not
embodied herein, and that any other agreement, statements or promise not
contained in this contract shall not be valid or binding. Any modifications of this
contract will be effective only if signed by the party to be charged.
25. AUTHORITY: CONTRACTOR affirms that the signatures, titles, and seals set
forth hereinafter in execution of this Agreement represent all individuals, firm
members, partners, joint ventures, and/or corporate officers having a principal
interest herein. Each party warrants that the individuals who have signed this
Agreement have the legal power, right, and authority to make this Agreement and
to bind each respective party. This Agreement may be modified by written
amendment. CITY’s city manager may execute any such amendment on CITY’s
behalf.
26. NOTICES: All notices permitted or required under this Agreement shall be in
writing, and shall be deemed made when delivered to the applicable party’s
representative as provided in this Agreement. Additionally, such notices may be
given to the respective parties at the following addresses, or at such other
addresses as the parties may provide in writing for this purpose. Such notices shall
be deemed made when personally delivered or when mailed forty-eight (48) hours
after deposit in the U.S. mail, first-class postage prepaid, and addressed to the
party at its applicable address.
CITY OF ROLLING HILLS
2 Portuguese Bend Rd.
Rolling Hills, CA 90274
Attention: ________________________ Project Manager
CONTRACTOR:
Unlimited Environmental, Inc.
2300 E. Curry St. Bldg. B
Long Beach, CA 90805
Attention: W. Scott Lange
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27. DISPUTES: Effective January 1, 1991, Section 20104 et seq., of the California
Public Contract Code prescribes a process utilizing informal conferences, non-
binding judicial supervised mediation, and judicial arbitration to resolve disputes
on construction claims of $375,000 or less. Effective January 1, 2017, Section
9204 of the Public Contract Code prescribes a process for negotiation and
mediation to resolve disputes on construction claims. The intent of this Section is
to implement Sections 20104 et seq. and Section 9204 of the California Public
Contract Code. This Section shall be construed to be consistent with said statutes.
Claims: For purposes of this Section, “Claim” means a separate demand by
CONTRACTOR, after a change order duly requested in accordance with the terms
of this Contract has been denied by the CITY, for (A) a time extension, (B) payment
of money or damages arising from Work done by or on behalf of CONTRACTOR
pursuant to the Contract, or (C) an amount the payment of which is disputed by
the CITY. A “Claim” does not include any demand for payment for which
CONTRACTOR has failed to provide notice, request a change order, or otherwise
failed to follow any procedures contained in the Contract Documents. Claims
governed by this Section may not be filed unless and until CONTRACTOR
completes all procedures for giving notice of delay or change and for the
requesting of a time extension or change order, including but not necessarily
limited to the change order procedures contained herein, and CONTRACTOR’s
request for a change has been denied in whole or in part. Claims governed by this
Section must be filed no later than fourteen (14) days after a request for change
has been denied in whole or in part or after any other event giving rise to the Claim.
The Claim shall be submitted in writing to the CITY and shall include on its first
page the following in 16 point capital font: “THIS IS A CLAIM.” Furthermore, the
claim shall include the documents necessary to substantiate the claim. Nothing in
this Section is intended to extend the time limit or supersede notice requirements
otherwise provided by contract for the filing of claims, including all requirements
pertaining to compensation or payment for extra Work, disputed Work, and/or
changed conditions. Failure to follow such contractual requirements shall bar any
claims or subsequent lawsuits for compensation or payment thereon.
Supporting Documentation: The CONTRACTOR shall submit all claims in the
following format:
Summary of claim merit and price, reference Contract Document provisions
pursuant to which the claim is made
List of documents relating to claim:
Specifications
Drawings
Clarifications (Requests for Information)
Schedules
Other
Chronology of events and correspondence
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Analysis of claim merit
Analysis of claim cost
Time impact analysis in CPM format
If CONTRACTOR’s claim is based in whole or in part on an allegation of
errors or omissions in the Drawings or Specifications for the Project,
CONTRACTOR shall provide a summary of the percentage of the claim
subject to design errors or omissions and shall obtain a certificate of merit
in support of the claim of design errors and omissions.
Cover letter and certification of validity of the claim, including any claims
from subcontractors of any tier, in accordance with Government Code
section 12650 et seq.
City’s Response. Upon receipt of a claim pursuant to this Section, CITY shall conduct a
reasonable review of the claim and, within a period not to exceed 45 days, shall provide
CONTRACTOR a written statement identifying what portion of the claim is disputed and
what portion is undisputed. Any payment due on an undisputed portion of the claim will
be processed and made within 60 days after the public entity issues its written statement.
If CITY needs approval from its governing body to provide the CONTRACTOR a
written statement identifying the disputed portion and the undisputed portion of the
claim, and the governing body does not meet within the 45 days or within the
mutually agreed to extension of time following receipt of a claim sent by registered
mail or certified mail, return receipt requested, CITY shall have up to three days
following the next duly publicly noticed meeting of the governing body after the 45-
day period, or extension, expires to provide CONTRACTOR a written statement
identifying the disputed portion and the undisputed portion.
Within 30 days of receipt of a claim, CITY may request in writing additional
documentation supporting the claim or relating to defenses or claims CITY may
have against the CONTRACTOR. If additional information is thereafter required, it
shall be requested and provided pursuant to this subdivision, upon mutual
agreement of CITY and the CONTRACTOR.
CITY’s written response to the claim, as further documented, shall be submitted to
CONTRACTOR within 30 days (if the claim is less than $50,000, within 15 days)
after receipt of the further documentation, or within a period of time no greater than
that taken by CONTRACTOR in producing the additional information or requested
documentation, whichever is greater.
Meet and Confer. If the CONTRACTOR disputes CITY’s written response, or CITY fails
to respond within the time prescribed, the CONTRACTOR may so notify CITY, in writing,
either within 15 days of receipt of CITY’s response or within 15 days of CITY’s failure to
respond within the time prescribed, respectively, and demand an informal conference to
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meet and confer for settlement of the issues in dispute. Upon receipt of a demand, CITY
shall schedule a meet and confer conference within 30 days for settlement of the dispute.
Mediation. Within 10 business days following the conclusion of the meet and confer
conference, if the claim or any portion of the claim remains in dispute, CITY shall provide
the CONTRACTOR a written statement identifying the portion of the claim that remains
in dispute and the portion that is undisputed. Any payment due on an undisputed portion
of the claim shall be processed and made within 60 days after CITY issues its written
statement. Any disputed portion of the claim, as identified by CONTRACTOR in writing,
shall be submitted to nonbinding mediation, with CITY and CONTRACTOR sharing the
associated costs equally. CITY and CONTRACTOR shall mutually agree to a mediator
within 10 business days after the disputed portion of the claim has been identified in
writing unless the parties agree to select a mediator at a later time.
If the Parties cannot agree upon a mediator, each Party shall select a mediator
and those mediators shall select a qualified neutral third party to mediate with
regard to the disputed portion of the claim. Each Party shall bear the fees and costs
charged by its respective mediator in connection with the selection of the neutral
mediator.
For purposes of this section, mediation includes any nonbinding process,
including, but not limited to, neutral evaluation or a dispute review board, in which
an independent third party or board assists the Parties in dispute resolution
through negotiation or by issuance of an evaluation. Any mediation utilized shall
conform to the timeframes in this section.
Unless otherwise agreed to by CITY and CONTRACTOR in writing, the mediation
conducted pursuant to this section shall excuse any further obligation under
Section 20104.4 to mediate after litigation has been commenced.
The mediation shall be held no earlier than the date CONTRACTOR completes
the Work or the date that CONTRACTOR last performs Work, whichever is earlier.
All unresolved claims shall be considered jointly in a single mediation unless a new
unrelated claim arises after mediation is completed.
Procedures After Mediation. If following the mediation, the claim or any portion remains
in dispute, CONTRACTOR must file a claim pursuant to Chapter 1 (commencing with
Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of
Title 1 of the Government Code. For purposes of those provisions, the running of the
period of time within which a claim must be filed shall be tolled from the time
CONTRACTOR submits his or her written claim pursuant to subdivision (a) until the time
the claim is denied, including any period of time utilized by the meet and confer
conference or mediation.
Civil Actions. The following procedures are established for all civil actions filed to resolve
claims subject to this Section:
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Within 60 days, but no earlier than 30 days, following the filing or responsive
pleadings, the court shall submit the matter to non-binding mediation unless
waived by mutual stipulation of both parties or unless mediation was held prior to
commencement of the action in accordance with Public Contract Code section
9204 and the terms of these procedures.. The mediation process shall provide for
the selection within 15 days by both parties of a disinterested third person as
mediator, shall be commenced within 30 days of the submittal, and shall be
concluded within 15 days from the commencement of the mediation unless a time
requirement is extended upon a good cause showing to the court.
If the matter remains in dispute, the case shall be submitted to judicial arbitration
pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of
the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The
Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter
3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding
brought under this subdivision consistent with the rules pertaining to judicial
arbitration.
In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3
of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced
in construction law, and (B) any party appealing an arbitration award who does not
obtain a more favorable judgment shall, in addition to payment of costs and fees
under that chapter, also pay the attorney’s fees on appeal of the other party.
Government Code Claims. In addition to any and all contract requirements
pertaining to notices of and requests for compensation or payment for extra work,
disputed work, claims and/or changed conditions, CONTRACTOR must comply
with the claim procedures set forth in Government Code sections 900 et seq. prior
to filing any lawsuit against the CITY. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to
those matters that remain unresolved after all procedures pertaining to extra work,
disputed work, claims, and/or changed conditions have been followed by
CONTRACTOR. If no such Government Code claim is submitted, or if any
prerequisite contractual requirements are not otherwise satisfied as specified
herein, CONTRACTOR shall be barred from bringing and maintaining a valid
lawsuit against the CITY. A Government Code claim must be filed no earlier than
the date the work is completed or the date CONTRACTOR last performs work on
the Project, whichever occurs first. A Government Code claim shall be inclusive of
all unresolved claims unless a new unrelated claim arises after the Government
Code claim is submitted.
Non-Waiver. CITY’s failure to respond to a claim from CONTRACTOR within the
time periods described in this Section or to otherwise meet the time requirements
of this Section shall result in the claim being deemed rejected in its entirety. CITY’s
failure to respond shall not waive CITY’s rights to any subsequent procedures for
the resolution of disputed claims.
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24. NON-DISCRIMINATION: Contractor represents that it is an equal opportunity
employer and that it shall not discriminate against any employee or applicant for
employment because of race, religion, color, national origin, ancestry, sex, age or
other interests protected by the State or Federal Constitutions. Such non-
discrimination shall include, but not be limited to, all activities related to initial
employment, upgrading, demotion, transfer, recruitment or recruitment advertising,
layoff or termination. A violation of this section exposes CONTRACTOR to the
penalties provided for in Labor Code Section 1735.
25. TERMINATION: This Contract may be terminated by CITY at any time, either with
our without cause, by giving CONTRACTOR three (3) days advance written notice.
In the event of termination by CITY for any reason other than the fault of
CONTRACTOR, CITY shall pay CONTRACTOR for all Work performed up to that
time as provided herein. In the event of breach of the Contract by Contractor, CITY
may terminate the Contract immediately without notice, may reduce payment to
CONTRACTOR in the amount necessary to offset CITY’s resulting damages, and
may pursue any other available recourse against CONTRACTOR.
CONTRACTOR may not terminate this Contract except for cause. In the event
this Contract is terminated in whole or in part as provided, CITY may procure, upon
such terms and in such manner as it may determine appropriate, services similar
to those terminated. Further, if this Contract is terminated as provided, CITY may
require CONTRACTOR to provide all finished or unfinished documents, data,
diagrams, drawings, materials or other matter prepared or built by CONTRACTOR
in connection with its performance of this Contract.
26. ANTI-TRUST CLAIMS: This provision shall be operative if this Contract
Agreement is applicable to California Public Contract Code Section 7103.5. In
entering into this Contract Agreement to supply goods, services or materials,
Contractor hereby offers and agrees to assign to the Agency all rights, title, and
interest in and to all causes of action it may have under Section 4 of the Clayton
Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing
with Section 16700, of Part 2 of Division 7 of the Business and Professions Code)
arising from purchases of goods, services, or materials pursuant to the Contract
Agreement. This assignment shall be made and become effective at the time the
Agency tender final payment to Contractor, without further acknowledgment by the
Parties.
27. NO THIRD PARTY BENEFICIARY: This Contract and every provision herein is
for the exclusive benefit of the Contractor and the City and not for the benefit of
any other party. There will be no incidental or other beneficiaries of any of the
Contractor’s or the City’s obligations under this Contract.
28. TIME IS OF ESSENCE: Time is of the essence for each and every provision of
the Contract Documents.
29. FORCE MAJEURE: If CONTRACTOR is delayed in the performance or progress
of the work by a Force Majeure Event, then the CONTRACTOR shall be entitled
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to a time extension, as provided in the contract documents, when the work stopped
is on the critical path and shall not be charged liquidated damages. Such a non-
compensable adjustment shall be CONTRACTOR’s sole and exclusive remedy for
such delays and the CONTRACTOR will not receive an adjustment to the contract
price or any other compensation. Contractor must submit a timely request in
accordance with the requirements of the contract documents. A Force Majeure
Event shall mean an event that materially affects a party’s performance and is one
or more of the following: (1) Acts of God or other natural disasters occurring at the
project site; (2) terrorism or other acts of a public enemy; (3) orders of
governmental authorities (including, without limitation, unreasonable and
unforeseeable delay in the issuance of permits or approvals by governmental
authorities that are required for the work); (4) pandemics, epidemics or quarantine
restrictions; and (5) strikes and other organized labor action occurring at the project
site and the effects thereof on the work, only to the extent such strikes and other
organized labor action are beyond the control of CONTRACTOR and its
subcontractors, of every tier, and to the extent the effects thereof cannot be
avoided by use of replacement workers. For purposes of this section, “orders of
governmental authorities,” includes ordinances, emergency proclamations and
orders, rules to protect the public health, welfare and safety, and other actions of
the City in its capacity as a municipal authority.
30. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE: Each
and every provision of law required to be included in these Contract Documents
shall be deemed to be included in these Contract Documents. The Contractor
shall comply with all requirements of applicable federal, state and local laws, rules
and regulations, including, but not limited to, the provisions of the California Labor
Code and California Public Contract Code which are applicable to this Work.
31. ACCEPTANCE OF FACSIMILE SIGNATURES: The Parties agree that this
Contract, agreements ancillary to this Contract, and related documents to be
entered into in connection with this Contract will be considered signed when the
signature of a party is delivered by facsimile transmission. Such facsimile
signature will be treated in all respects as having the same effect as an original
signature.
32. GOVERNING LAW : This Agreement shall be governed by the laws of the State
of California, and exclusive venue for any action involving this Contract will be in
Los Angeles County.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement with
all the formalities required by law on the respective dates set forth opposite their
signatures.
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State of California CONTRACTOR'S License No. __
CONTRACTOR
_______________________________________________________________
TITLE Date
CITY OF ROLLING HILLS, CALIFORNIA
_______________________________________________________________
CITY MANAGER Date
ATTEST:
_______________________________________________________________
CITY CLERK Date CONTRACTOR'S Business Phone
Emergency Phone at which CONTRACTOR can be reached at any time:
APPROVED AS TO FORM:
_______________________________________________________________
CITY ATTORNEY Date
258
AGREEMENT OF INDEMNIFICATION
AND HOLD HARMLESS AND WAIVER OF SUBROGATION AND CONTRIBUTION
Standby Generator Removal, Waterproof Removal, & Electrical Services, Job No. 2023-
02
Unlimited Environmental, Inc., a California Corporation, Contractor License # 668511
(“Indemnitor”):
To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and
expense, to defend, protect, indemnify, and hold harmless the City of Rolling Hills and its
respective elected officials, officers, attorneys, agents, employees, volunteers,
successors, and assigns (collectively “Indemnitees”) from and against any and all
damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings,
expenses, judgments, penalties, liens, and losses of any nature whatsoever, including
fees of accountants, attorneys, or other professionals and all costs associated therewith
(collectively “Liabilities”), arising or claimed to arise, directly or indirectly, out of, in
connection with, resulting from, or related to any act, failure to act, error, or omission of
Indemnitor or any of its officers, agents, servants, employees, subcontractors,
materialmen, suppliers or their officers, agents, servants or employees, arising or claimed
to arise, directly or indirectly, out of, in connection with, resulting from, or related to the
above-referenced contract, agreement, license, or permit (the “Agreement”) or the
performance or failure to perform any term, provision, covenant, or condition of the
Agreement, including this indemnity provision. This indemnity provision is effective
regardless of any prior, concurrent, or subsequent active or passive negligence by
Indemnitees and shall operate to fully indemnify Indemnitees against any such
negligence. This indemnity provision shall survive the termination of the Agreement and
is in addition to any other rights or remedies which Indemnitees may have under the law.
Payment is not required as a condition precedent to an Indemnitee’s right to recover under
this indemnity provision, and an entry of judgment against an Indemnitee shall be
conclusive in favor of the Indemnitee’s right to recover under this indemnity provision.
Indemnitor shall pay Indemnitees for any attorney fees and costs incurred in enforcing
this indemnification provision. Notwithstanding the foregoing, nothing in this instrument
shall be construed to encompass (a) Indemnitees’ sole negligence or willful misconduct
to the limited extent that the underlying Agreement is subject to Civil Code 2782(a), or (b)
the contracting public agency’s active negligence to the limited extent that the underlying
Agreement is subject to Civil Code 2782(b). This indemnity is effective without reference
to the existence or applicability of any insurance coverages which may have been
required under the Agreement or any additional insured endorsements which may extend
to Indemnitees.
Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives
all rights of subrogation and contribution against the Indemnitees, while acting within the
scope of their duties, from all claims, losses and liabilities arising out of or incident to
activities or operations performed by or on behalf of the Indemnitor regardless of any
259
prior, concurrent, or subsequent active or passive negligence by the Indemnitees.
Accountants, attorneys, or other professionals employed by Indemnitor to defend
Indemnitees shall be selected by Indemnitees.
In the event there is more than one person or entity named in the Agreement as an
Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument
shall be joint and several.
“Indemnitor”
Name: W. Scott Lange, President, Secretary & Treasurer
260
Agenda Item No.: 14.A
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:ELAINE JENG, CITY MANAGER
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:DISCUSS SOUTH BAY CITIES COUNCIL OF GOVERNMENTS
(SBCCOG) MEMBERSHIP DUES (MAYOR WILSON)
DATE:March 13, 2023
BACKGROUND:
At the February 13 City Council meeting, Councilmember Bea Dieringer presented the South
Bay Cities Council of Government's (SBCCOG) Finance Committee recommendations for
potential membership dues. No action was taken by the City Council. At the same meeting,
the City Council voted to assign Mayor Pat Wilson to be the designated representative to the
SBCCOG. Previously, Councilmember Dieringer was the designated SBCCOG
representative.
Both Mayor Wilson and Councilmember Dieringer participated in the February 23 SBCCOG
Board of Directors meeting where the proposed membership dues were discussed. In
response to the request of Rolling Hills, the SBCCOG Board of Directors voted to notice
member cities of a potential increase and postpone further discussion on the matter until the
next board meeting.
DISCUSSION:
The SBCCOG presented three scenarios to formulate the future membership dues effective
July 1, 2023. Scenario 3 is the preferred scenario and it includes the current dues combined
with the assessment for a planner, plus $20,000 increase. The membership dues for Scenario
3 is listed on page nine of the SBCCOG Ad Hoc Finance Committee presentation dated
February 1, 2023 attached to this report.
Mayor Wilson requested staff to analyze the membership dues under Scenario 3 and look at
the per capita cost per membership city. There are 17 member cities in SBCCOG. Dividing the
membership dues listed under Scenario 3 by the population of the respective city, the City of
Carson would pay $0.36 per capita while the City of Rolling Hills Estates would pay $1.39 per
capita. Excluding Rolling Hills, these points representing the low and the high cost per capita
of the spread. Rolling Hills would pay $4.42 per capita. In reviewing the data on a per capita
basis, Mayor Wilson noted the inequity of the proposed formula. The per capita cost has the
261
City of Rolling Hills contributing more than three times the high point of the spread among the
member cities.
Taking an average of the low and high per capita cost, Mayor Wilson would like the City
Council to consider proposing a membership due of $1,695 for Rolling Hills ($0.87 average x
1,939 [Rolling Hills population]).
FISCAL IMPACT:
Under SBCCOG's Scenario 3, Rolling Hills would pay $7,726 for membership dues on July 1.
If Mayor Wilson's proposal is accepted by the SBCCOG, there would be a savings of $6,031
of General Fund expenditure.
RECOMMENDATION:
Receive a presentation from Mayor Pat Wilson and provide direction to staff.
ATTACHMENTS:
CL_AGN_230213_SBCCOG_FinanceCommittee_02.01.23_AgendaSlides.pdf
GV_GVO_COG_1.20 CIty Pop Sqmi GEN Fund Final (2).pdf
CL_AGN_230313_CC_CA_DeptFinancePopulation_2011-22.pdf
CL_AGN_230313_CC_SBCCOG_2017DuesFormulaMemo_Increase_Calculation.pdf
262
2/1/23 1
South Bay Cities Council of
Governments
Ad Hoc Finance Committee
February 1, 2023
263
Agenda
I.Welcome
II.Dues and Assessment
•Dues Options
•Unfunded opportunities -(Placer A.I., grant writer, lobbyist that our cities would have
access to)
•Recommendations to Steering Committee
III.Policies
•Recommendations
IV.Change of Contractor Status? Tabled to March 2023
264
Dues &
Assessment
Overview
•Last dues increase FY 2019-2020
•FYs 2016-2020 Dues were increased by a
total of $20,000 per year split among
each member by formula to fund reserve
•Planning Assessment FYs 2021-22 and
2022-23
265
Dues & Assessment –Dues History
CITY 2015-2016
Increase $20,000/yr.
2016-2017
Increase $20,000/yr.
2017-2018
Increase $20,000/yr.
2018-2019
Increase $20,000/yr.
2019-2020
Increase $20,000/yr.
CARSON $ 21,360 $ 22,727 $ 24,094 $ 25,461 $ 26,828
EL SEGUNDO $ 13,178 $ 14,021 $ 14,865 $ 15,708 $ 16,551
GARDENA $ 17,358 $ 18,469 $ 19,580 $ 20,691 $ 21,802
HAWTHORNE $ 21,817 $ 23,214 $ 24,610 $ 26,006 $ 27,403
HERMOSA BEACH $ 9,608 $ 10,223 $ 10,837 $ 11,452 $ 12,067
INGLEWOOD $ 32,344 $ 34,414 $ 36,484 $ 38,554 $ 40,624
LAWNDALE $ 11,398 $ 12,127 $ 12,856 $ 13,586 $ 14,315
LOMITA $ 8,555 $ 9,103 $ 9,650 $ 10,198 $ 10,745
LOS ANGELES $ 36,758 $ 39,111 $ 41,463 $ 43,816 $ 46,168
MANHATTAN BEACH $ 13,880 $ 14,768 $ 15,656 $ 16,545 $ 17,433
PALOS VERDES ESTATES $ 8,077 $ 8,594 $ 9,111 $ 9,628 $ 10,145
RANCHO PALOS VERDES $ 12,361 $ 13,153 $ 13,944 $ 14,735 $ 15,526
REDONDO BEACH $ 19,294 $ 20,529 $ 21,764 $ 22,999 $ 24,234
ROLLING HILLS ESTATES $ 7,143 $ 7,601 $ 8,058 $ 8,515 $ 8,972
ROLLING HILLS $ 4,942 $ 5,259 $ 5,575 $ 5,891 $ 6,207
TORRANCE $ 36,758 $ 39,111 $ 41,463 $ 43,816 $ 46,168
COUNTY OF LOS ANGELES $ 37,668 $ 40,078 $ 42,489 $ 44,900 $ 47,311
Total Dues:$ 312,500 $ 332,500 $ 352,500 $ 372,500 $ 392,500
266
Dues Vs Outside Funding
267
Programs & Activities Fully or
Partly Funded with General
Funds
•SBCCOG Board & Steering Committee & Working
Groups
•Board Education, Networking, & Go-See Trips
•Legislative tracking & Advocacy
•General Assembly
•Board Special Projects (examples: coyotes, housing
trust, solar,big data)
•Electric Vehicle infrastructure & adoption
•Climate Action & Adaptation
•SBCCOG Organizational Promotion -website,
newsletter, social media
•All New Program Development
•Volunteer Program
•Grant Development & Applications
268
Unfunded Opportunities
Missing opportunities that we don’t have resources to work on:
•Placer A.I. (data)
•Legislative tracking & Advocacy –lobbyist that cities could share
•Board Special Projects (examples: coyotes, housing trust, solar, big
data)
•Electric Vehicle Infrastructure & Adoption
•Renewable Energy –Solar
•Micro-grid
•Climate Action & Adaptation
•SBCCOG Enhanced Organizational Promotion -website, newsletter,
social media
•New Program Development/Grant Opportunities
•Growing Volunteer Program
•Grant Development & Applications –grant writer
269
Dues & Assessment -CPI
Calendar
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
2020 3.1 3.4 1.9 0.7 0.9 1.4 1.9 2.0 1.2 0.7 1.0 1.5 1.6
2021 0.9 1.0 2.2 3.6 3.9 4.0 3.9 4.0 4.6 5.4 6.0 6.6 3.8
2022 7.5 7.4 8.5 7.9 8.0 8.6 7.7 7.6 7.8 7.5 6.0 4.9 7.4
CPI for All Urban Consumers (CPI-U)
12-Month Percent Change
270
Dues & Assessment -Scenarios
City of/Entity Special
Assessment Fee
Current
Membership Dues Total Billed
Scenario 1
Dues & Assessment
2020-21 CPI Increase* of 3.9%
2021-22 CPI Increase* of 7.7%
Scenario 2
Dues Combined w/ Assessment (Existing
Formula)
$20,000 total increase
Scenario 3
Scenario 2 +
with CPI Average Increase
for 3 yrs 2020-22 (4.5%)
Carson 4,500 26,828 31,328 34,962 31,954 33,392
El Segundo 2,000 16,551 18,551 20,703 19,714 20,601
Gardena 3,250 21,802 25,052 27,958 25,968 27,137
Hawthorne 4,500 27,403 31,903 35,604 32,639 34,108
Hermosa Beach 2,000 12,067 14,067 15,699 14,373 15,020
Inglewood 4,500 40,624 45,124 50,358 48,387 50,564
Lawndale 3,250 14,315 17,565 19,603 17,050 17,818
Lomita 2,000 10,745 12,745 14,223 12,798 13,374
Los Angeles 4,500 46,168 50,668 56,545 54,990 57,464
Manhattan Beach 3,250 17,433 20,683 23,082 20,764 21,699
Palos Verdes Estates 2,000 10,145 12,145 13,554 12,084 12,627
Rancho Palos Verdes 3,250 15,526 18,776 20,954 18,493 19,325
Redondo Beach 3,250 24,234 27,484 30,672 28,865 30,164
Rolling Hills 2,000 6,207 8,207 9,159 7,393 7,726
Rolling Hills Estates 2,000 8,972 10,972 12,245 10,686 11,167
Torrance 4,500 46,168 50,668 56,545 54,990 57,464
County of Los Angeles 4,500 47,311 51,811 57,821 56,351 58,887
55,250 392,499 447,749 499,688 467,499 488,536
*The base for computing the adjustment is the Consumer Price Index (CPI) for All Urban Consumers for Los Angeles -Anaheim -Riverside based on the year 1982-1984 = 100 as published by the U.S. Department of Labor's Bureau of Labor Statistics -Reference:
https://www.bls.gov/regions/west/factsheet/consumer-price-index-data-tables.htm
271
Recommendation –
Dues & Assessment
•Adopt Scenario #3 for FY 2023-24
o Combines the special assessment
into the dues formula
o Adjusts budget to account for CPI
•Assess budget adjustment annually FY
•2023-24 -Re-evaluate reserve amount by
looking at shutdown costs per policy to
do this every 5 years
•Uphoff/Cruikshank -Dieringer no
272
Schedule –
Dues & Assessment
•Notify the Board in Feb. 2023 that an
increase is being considered
•Determine recommended dues for
budget preparation at April 2023
Steering Committee meeting
•Discussion of Budget at May 2023
Board meeting
•Action: Budget Adoption at June
2023 Board meeting
273
Policy
Revision
Recommen
dations
•Existing Policy -Authorization for
Contract Approvals (Jun. 2010)
o Authorizes Steering Committee to enter
into contracts up to $7,500 within budget
&report to Board
o Authorizes Executive Director to enter
into contracts up to $2,500 within budget
&report to Steering Committee
o Sets authority for Steering Committee to
approve regular monthly invoice payment at
the beginning of each fiscal year (ex. rent)
•Proposed Addition
o The Executive Director can approve and report
to the Steering Committee:
o All contracts that are no cost –no fiscal
impact
o Contract amendments for funding increases
in the amount of $25,000 or less for
contracts that bring revenue to the SBCCOG
o Cruikshank/Uphoff -Dieringer no
274
Schedule –
Policy Revisions
•Recommend Authorization for
Proposed Executive Director
Approvals
o Recommend February Steering
Committee send to Board
for approval at February Board
meeting
275
Questions
276
Next Steps
1.Items for next agenda
•Unfunded opportunities –put dollar
amount to it & prioritize list
2.Next Meeting if needed –March 2023
277
Data for Dues Scenarios 2020 - Item 1.b.
City
Population (2017 Dept
of Finance)% of Population Sq Mi Scenario 3
Cost per
capita
Carson 93,604 9.200%19.2 $33,392 $0.36
El Segundo 17,000 1.671%5.46 $20,601 $1.21
Gardena 60,721 5.968%5.9 $27,137 $0.45
Hawthorne 89,000 8.747%6.09 $34,108 $0.38
Hermosa Beach 19,847 1.951%1.43 $15,020 $0.76
Inglewood 109,673 10.779%9.09 $50,564 $0.46
Lawndale 33,607 3.303%1.97 $17,818 $0.53
Lomita 22,000 2.162%2 $13,374 $0.61
City of LA 145,274 14.278%10.04 $57,464 $0.40
Manhattan Beach 35,532 3.492%3.94 $21,699 $0.61
Palos Verdes Estates 13,400 1.317%4.79 $12,627 $0.94
Rancho PV 42,000 4.128%13.6 $19,325 $0.46
Redondo Beach 68,000 6.683%6.2 $30,164 $0.44
Rolling Hills 1,939 0.191%3 $8,576 $4.42
Rolling Hills Estates 8,028 0.789%4.18 $11,167 $1.39
Torrance 149,245 14.669%21 $57,464 $0.39
County of Los Angeles 108,571 10.671%30.92 $58,887 $0.54
1,017,441
Average cost per capita between highest and lowest, excluding Rolling Hills:$0.87
Mayor Wilson's proposed membership due for Rolling Hills, using the above average: $1,694.44
278
279
280
281
282
283
284
South Bay Cities Council of Governments
October 9, 2017
TO: SBCCOG Steering Committee
FROM: Jacki Bacharach, SBCCOG Executive Director
SUBJECT: SBCCOG Dues Formula
Adherence to Strategic Plan:
Goal D: Organizational Stability. Be a high performing organization with a clear path to long
term financial health, staffing continuity and sustained board commitment.
ORIGINAL DUES FORMULA
The dues formula for the SBCCOG was developed in 2002. Using 2000 census figures, the
calculation was based on a recommendation from the city managers using 50% population and 50%
general fund expenditures. The base was $3500 which was what the City of Rolling Hills paid.
At the time that the 2010 census data was available, the Steering Committee decided that it would
be prudent to have an ad hoc committee comprised of current and past officers as well as David
Biggs, former Carson City Managers and Chair of the City Managers’ group, review the current
dues and recommend possible changes. There was one meeting in February 2013 but no
recommendations.
ASSESSMENT
Starting in 2008-2009 fiscal year, there was also a climate action planning assessment that ranged
from $1500 to $7000 per member for 3 years and then was lowered to $1250 to $5250 depending
on population for 4 years. With this assessment all cities were provided their municipal and
community greenhouse gas inventories as well as updates. The assessment lasted 7 years until it
was incorporated into the dues.
AD HOC FINANCE COMMITTEE
Between August 2014 and February 2015 an Ad Hoc Finance Committee met four times. The
members of the committee were Board members Jim Goodhart, Ralph Franklin, Britt Huff and
Michael DiVirgilio and City Managers Tony Dahlerbruch (Palos Verdes Estates), Michael Rock
(Lomita) and Tom Bakaly (Hermosa Beach). Their memo with recommended actions that were
adopted by the Board in March 2015 is attached.
REVISED/CURRENT DUES FORMULA
The March 2015 SBCCOG Board action incorporated the amount of the special assessment into the
original dues formula still using 2000 data. It is as follows:
•$3500 – base/minimum
•50% - 2000 population
•50% - 2000 operating budget
•Assessment amount as of 2015
•7% increase for 5 years – 2015-2016 to 2019-2020
RECOMMENDATION
Provide direction.
39 285
South Bay Cities Council of Governments
March 26, 2015
TO: SBCCOG Board of Directors
FROM: SBCCOG Steering Committee
SUBJECT: 2015-2016 Dues – Notice of Intention to Consider an Increase
On the recommendation of the Ad Hoc Finance Committee and last month’s Steering
Committee, Lomita City Manager Michael Rock led the City Managers in a discussion of the
2015-2016 dues at their February meeting. He explained that the SBCCOG budget was rather
complex since it has to account for not just the SBCCOG activities but also the SBESC and our
grants with revenues of almost $3 million a year and yet dues are only $230,000. He reminded
the group that the dues have not changed since 2001.
With handouts, he explained that the SBCCOG needs to have more help from the cities. Cash
flow and reserves are exacerbated by the low amount of dues.
While the current dues formula is based on the 2000 census, it was felt that the increases for the
cities would be easiest if any increase was based on the existing dues and not an updated
formula. Also, it was recommended that there be no separate assessment.
Michael Rock expressed the strong recommendation of the Ad Hoc Finance Committee that the
Board institute slow increases and not do one time ‘shock’ increases after long periods of time to
catch up.
The City Managers came to a consensus that a dues increase of 7% for the next 5 years using the
existing formula be approved with the assessment eliminated. (See attached table) It was agreed
that this recommendation would be sent to all of the city managers so that those that were not
present would be notified. This was done on February 18. Since there was some concern from
some of the managers that were not present, the item was agendized again for the City
Managers’ meeting on March 18. At that meeting, there were several different city managers
attending and once again, consensus was reached, with one abstention, to recommend a 7% dues
increase for at least this coming year with the understanding that this would start an annual
discussion for at least the subsequent four years of additional dues increases. They also want to
be sure that dues increases are considered at regular intervals after that.
Besides their consensus recommendation, they asked the SBCCOG staff to prepare an analysis of
what the dues for each city would be if they had been increased every year since 2003 in the
amount of the Consumer Price Index. Also, SBCCOG staff was asked to prepare a memo which
explains what will happen if the dues are not increased this year. These documents will be
circulated when they are available.
Per the Bylaws, which require a 60 day notice for any increase in the dues, the requested action
is to approve a notice of intention to consider a dues increase at the May 28, 2015 Board of
Directors meeting.
The actual Bylaws provision reads as follow:
40 286
Dues. The Members of the Council shall be responsible for the payment to the Council annually,
of dues and the amounts periodically budgeted by the Governing Board, as and for the
operating costs of the Council ("Dues"). Sixty (60) days’ notice shall be provided to
Members of the date of the meeting at which any increase in the Dues is to be determined
for the following year. If an increase in dues is proposed from the previous year, an
affirmative vote of two-thirds (2/3) of the total voting membership of the Governing
Board is required to set the new dues.
RECOMMENDATION
That the Board of Directors state its intention to consider a 7% increase for the next 5 years using
the existing formula with no separate assessment per attached table.
41 287
8c_3.27.15 Dues_Calculation_Spreadsheet_.xls 10/2/17
SBCCOG DUES Calculations for FY 2015-2016 based upon proportional increase of 7%
NEW DUES -
2015-2016
CITY
Current Amount
invoiced to Member
Agencies in FY 14-
15
Value of 2002
Dues plus
assessment
amount in
2015 $
Increase
$20,000/yr.
Proposed
increase
2015-2016
(% change)
CPI increase
2002-2015 (%
increase)
Dues amount
2002
Value of 2002
dues amount in
2015 $
1 CARSON 19,989.00$ 24,481$ 21,360$ 7%30.47%14,739$ 19,231$
2 EL SEGUNDO 12,332.00$ 15,404$ 13,178$ 7%30.47%10,082$ 13,154$
3 GARDENA 16,244.00$ 20,051$ 17,358$ 7%30.47%12,494$ 16,301$
4 HAWTHORNE 20,417.00$ 25,039$ 21,817$ 7%30.47%15,167$ 19,789$
5 HERMOSA BEACH 8,991.00$ 11,045$ 9,608$ 7%30.47%6,741$ 8,795$
6 INGLEWOOD 30,268.00$ 37,892$ 32,344$ 7%30.47%25,018$ 32,642$
7 LAWNDALE 10,666.00$ 12,774$ 11,398$ 7%30.47%6,916$ 9,024$
8 LOMITA 8,006.00$ 9,760$ 8,555$ 7%30.47%5,756$ 7,510$
9 LOS ANGELES 34,399.00$ 43,282$ 36,758$ 7%30.47%29,149$ 38,032$
10 MANHATTAN BEACH 12,989.00$ 15,859$ 13,880$ 7%30.47%9,419$ 12,289$
11 PALOS VERDES ESTATES 7,559.00$ 9,177$ 8,077$ 7%30.47%5,309$ 6,927$
12 RANCHO PALOS VERDES 11,568.00$ 13,950$ 12,361$ 7%30.47%7,818$ 10,200$
13 REDONDO BEACH 18,056.00$ 22,416$ 19,294$ 7%30.47%14,306$ 18,666$
14 ROLLIING HILLS ESTATES 6,685.00$ 8,037$ 7,143$ 7%30.47%4,435$ 5,787$
15 ROLLING HILLS 4,625.00$ 5,692$ 4,942$ 7%30.47%3,500$ 4,567$
16 TORRANCE 34,399.00$ 43,282$ 36,758$ 7%30.47%29,149$ 38,032$
17 COUNTY OF LOS ANGELES 35,250.00$ 44,392$ 37,668$ 7%30.47%30,000$ 39,142$
292,443.00$ 312,500.00$
Total Dues:312,500.00$
42 288
8d_9.17 Dues_Calculation_Spreadsheet_2015_02.xls 10/2/17
SBCCOG DUES Calculations based upon proportional increases - Increase $100,000 over 5 year period
NEW DUES -
2015-2016
NEW DUES -
2016-2017
NEW DUES - 2017-
2018
NEW DUES -
2018-2019
NEW DUES -
2019-2020
CITY
2010 CENSUS
POPULATION
2000 CENSUS
POPULATION POPULATION %2012 BUDGETS
CITY BUDGETS
Year 2000 EXP %
Current Dues
based on year
2000 data plus
assessment
Increase
$20,000/yr.
Increase
$20,000/yr.
Increase
$20,000/yr.
Increase
$20,000/yr.
Increase
$20,000/yr.
% change
proposed
dues
increase
2015-2016
Current Dues
based on year
2000 data plus
assessment
CITY
BUDGETS
Year 2000
2000 CENSUS
POPULATION
1 CARSON 91,714 89,730 0.088450 78,718,066 42,575,144 0.05035 19,989.00$ 21,360$ 22,727$ 24,094$ 25,461$ 26,828$ 7%19,989.00$ 42,575,144 89,730
2 EL SEGUNDO 16,654 16,033 0.016061 87,793,379 61,943,954 0.05616 12,332.00$ 13,178$ 14,021$ 14,865$ 15,708$ 16,551$ 7%12,332.00$ 61,943,954 16,033
3 GARDENA 58,829 57,746 0.056736 68,544,017 48,389,565 0.04384 16,244.00$ 17,358$ 18,469$ 19,580$ 20,691$ 21,802$ 7%16,244.00$ 48,389,565 57,746
4 HAWTHORNE 84,293 84,112 0.081293 92,515,065 53,091,394 0.05918 20,417.00$ 21,817$ 23,214$ 24,610$ 26,006$ 27,403$ 7%20,417.00$ 53,091,394 84,112
5 HERMOSA BEACH 19,506 18,566 0.018812 27,313,810 20,850,226 0.01747 8,991.00$ 9,608$ 10,223$ 10,837$ 11,452$ 12,067$ 7%8,991.00$ 20,850,226 18,566
6 INGLEWOOD 109,673 112,580 0.105770 180,375,719 138,572,801 0.11538 30,268.00$ 32,344$ 34,414$ 36,484$ 38,554$ 40,624$ 7%30,268.00$ 138,572,801 112,580
7 LAWNDALE 32,769 31,711 0.031603 14,968,417 9,830,277 0.00957 10,666.00$ 11,398$ 12,127$ 12,856$ 13,586$ 14,315$ 7%10,666.00$ 9,830,277 31,711
8 LOMITA 20,256 20,046 0.019535 15,752,474 8,008,369 0.01008 8,006.00$ 8,555$ 9,103$ 9,650$ 10,198$ 10,745$ 7%8,006.00$ 8,008,369 20,046
9 LOS ANGELES 145,438 137,946 0.140262 258,394,355 161,098,958 0.16528 34,399.00$ 36,758$ 39,111$ 41,463$ 43,816$ 46,168$ 7%34,399.00$ 161,098,958 137,946
10 MANHATTAN BEACH 35,135 33,852 0.033885 70,820,376 36,597,175 0.04530 12,989.00$ 13,880$ 14,768$ 15,656$ 16,545$ 17,433$ 7%12,989.00$ 36,597,175 33,852
11 PALOS VERDES ESTATES 13,438 13,340 0.012960 15,136,759 9,506,340 0.00968 7,559.00$ 8,077$ 8,594$ 9,111$ 9,628$ 10,145$ 7%7,559.00$ 9,506,340 13,340
12 RANCHO PALOS VERDES 41,643 41,145 0.040161 22,463,355 10,871,607 0.01437 11,568.00$ 12,361$ 13,153$ 13,944$ 14,735$ 15,526$ 7%11,568.00$ 10,871,607 41,145
13 REDONDO BEACH 66,748 63,261 0.064373 103,573,993 63,833,906 0.06625 18,056.00$ 19,294$ 20,529$ 21,764$ 22,999$ 24,234$ 7%18,056.00$ 63,833,906 63,261
14 ROLLING HILLS ESTATES 8,067 7,676 0.007780 7,630,943 5,037,202 0.00488 6,685.00$ 7,143$ 7,601$ 8,058$ 8,515$ 8,972$ 7%6,685.00$ 5,037,202 7,676
15 ROLLING HILLS 1,860 1,871 0.001794 2,559,483 1,203,382 0.00164 4,625.00$ 4,942$ 5,259$ 5,575$ 5,891$ 6,207$ 7%4,625.00$ 1,203,382 1,871
16 TORRANCE 145,438 137,946 0.140262 258,394,355 161,098,958 0.16528 34,399.00$ 36,758$ 39,111$ 41,463$ 43,816$ 46,168$ 7%34,399.00$ 161,098,958 137,946
17 COUNTY OF LOS ANGELES*145,438 0.140262 258,394,355 161,098,958 0.16528 35,250.00$ 37,668$ 40,078$ 42,489$ 44,900$ 47,311$ 7%35,250.00$ 161,098,958
1,036,899 867,561 1.000000 1,563,348,921 1.00000 292,443.00$ 312,500.00$ 332,500.00$ 352,500.00$ 372,500.00$ 392,500.00$ 292,443.00$ 867,561
Total Dues:312,500.00$ 332,500.00$ 352,500.00$ 372,500.00$ 392,500.00$
Note: LA City and LA County populations were calculated as being the same as Torrance
*Became a SBCCOG Member in Fiscal Year 2009-2010
source => http://www.sco.ca.gov/Files-ARD-Local/LocRep/1112cities.pdf
SCENARIO #2
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Agenda Item No.: 14.B
Mtg. Date: 03/13/2023
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:JOHN SIGNO, DIRECTOR OF PLANNING & COMMUNITY SERVICES
THRU:ELAINE JENG P.E., CITY MANAGER
SUBJECT:STORM IMPACTS TO THE COMMUNITY ON THE WEEKEND OF
FEBRUARY 24, 2023 (MAYOR PRO TEM MIRSCH)
DATE:March 13, 2023
BACKGROUND:
The storm during the weekend of February 24 wreaked havoc throughout the City. On Friday,
around 8 PM, a tree fell on Crest Road West near Quail Ridge North/South. The tree uprooted
communication cables and blocked the road. RHCA crew was at the scene around 8:30 PM to
cone off the area and remove the tree. The road was reopened around 11:30 PM.
Around 10 PM, three trees fell at 1 Johns Canyon Road blocking the road, partially uprooting a
private driveway, damaging a transformer, and knocking out power to 31 customers. An
outage report was filed with SCE at 10:05 PM. The Fire Department and RHCA staff lead by
Arty Beckler was on scene with a tree trimming company around 11 PM, however, could not
start removing the downed trees because of the threat of a live wire. SCE needed to clear the
live wire to make the area safe. After about an hour, the tree trimming company was sent
home and an RHCA staff member remained to monitor the site in the rain. There were reports
that no one was at the scene because the staff member was inside a vehicle with lights turned
off. Saturday morning, sometime between 1 AM and 2 AM, SCE arrived at the site to clear the
live wire. RHCA and its tree trimming company returned to cut the downed trees and clear the
road around 3 AM. They worked until the road was reopened sometime around 7 AM. Once
the road was cleared, SCE could begin restoring power. However, the storm caused damage
throughout the region inundating SCE with service calls so they were not able to return
immediately. An Alert SouthBay message was sent at 8:27 AM based on information from
SCE’s website that power was expected to be restored by 10:15 AM. City and RHCA staff
were trying to reach SCE for an update as their crew was not at the scene. Another Alert
SouthBay message was sent at 12:16 PM indicating SCE changed the ETA to 3 PM. SCE’s
subcontractor arrived around 1 PM and power was restored around 4:30 PM.
Saturday morning, City staff reached out to Cox Communications to make sure their service
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had not been affected by the fallen tree on Crest Road West. Dave Simpson of Cox contacted
John Signo around 11 AM letting him know their operations team is aware and checking on
the situation. Mr. Simpson indicated in the early afternoon that Cox services were operational
in the Crest Road West and Johns Canyon Road area. He indicated their team would continue
to investigate the uprooted cables along Crest Road West and would bury and restore the
lines if theirs.
On Saturday, at 13 Cinchring Road, there was a pine tree branch that fell on a utility line. Fire
Station 56 was able to respond but could not repair the downed line. They were able to warn
residents by knocking on doors. The incident was reported to SCE. Davey Tree Services,
contracted with RHCA, was on the scene around 2 PM to clear debris. By around 4:30 PM
Marian Visco who lives at 15 Cinchring Road reported the branches had been cut and SCE
was going to follow up with the lines.
Saturday morning, around 9:30 AM, Mr. Popovich reported a new sinkhole developing on
Middleridge Lane. He indicated his neighbor was walking his dogs and the ground caved in.
RHCA responded that the road shoulder would be closed. After inspection, RHCA staff
noticed two more sinkholes in the area that opened overnight. RHCA put up barricades and
caution tape to close off the entire road shoulder.
DISCUSSION:
There was a lot information going around and City staff was trying to monitor the situations
based on emails, text messages, and phone calls. Alert SouthBay messages were sent
throughout the day to notify residents and councilmembers were being updated on activities.
On Tuesday, March 7, the City Manager arranged for the Fire Department to meet with
residents of Johns Canyon to discuss the events that took place the weekend of February 24.
The meeting was well attended by over 20 residents. City and RHCA staff were also present.
Chief Bennett expressed his concern with the blocked road and power outage, but although it
was an inconvenience, the downed trees and power outage did not pose a threat to life safety
at the time. One unfortunate incident during the storm was an injury to a resident on Johns
Canyon Road who needed to be transported to the hospital. This was an emergency because
of the injury and Fire Department was able to get passed the downed trees to evacuate the
resident. Due to such an emergency, residents expressed concerns about having secondary
access on Johns Canyon Road. Mr. Steve Schultz, who owns the property at 14 Johns
Canyon Road which has access to Crenshaw Boulevard, did offer access through his property
in the event of an emergency.
Some other take aways from the neighborhood meeting:
Residents were informed they should always report power outages and downed power
lines to SCE as soon as possible. There were 50 service calls made to SCE that night.
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It is better for SCE to receive 50 service calls instead of one because of the sense
of urgency.
Fire Department is able to take down small trees but not larger trees such as those that
went down that weekend.
RHCA's policy is to clear blocked roads even in the middle of the night.
The live wire delayed RHCA from reopening the road sooner.
RHCA needed SCE to arrive and clear the live wire before the tree could be
removed.
There were 60,000 downed trees throughout LA County that weekend. This inundated
emergency services and delayed responses to clear roads and restore power.
Fire Department and RHCA will meet to discuss roadside vegetation.
Some lessons learned:
Residents should always call 9-1-1 in the event of an emergency and contact one of the
RHCA gates so they can convey the information to the appropriate person or agency.
Emergency contact information has been provided to residents in the Blue
newsletter.
Staff could have reached out to its contacts much earlier and better communication
could have been made to emergency contacts.
Since the event, Staff has followed up with RHCA staff on emergency procedures.
"Shelter in place" is an appropriate response to emergencies
SCE required two service calls: one to clear the downed live wire; one to restore power
once the tree was removed.
An evacuation assessment should be done to prepare for similar events.
FISCAL IMPACT:
None.
RECOMMENDATION:
Receive a presentation from Mayor Pro Tem Leah Mirsch and provide direction to staff.
ATTACHMENTS:
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