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Home My WebLink About2021-11-23 - AGENDA REPORTS - AWARD OF PREPARATION OF RESERVE STUDIESO Agenda Item: 7 1. CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: 1 DATE: November 23, 2021 SUBJECT: AWARD CONTRACT FOR PREPARATION OF RESERVE STUDIES DEPARTMENT: Neighborhood Services PRESENTER: Kevin Tonoian RECOMMENDED ACTION City Council: Award a three-year contract to Association Reserves to provide Landscape and Lighting District Reserve Study services in the annual amount of $50,000, for a total amount not to exceed $150,000. 2. Authorize one-time appropriations in the amount of $45,000 from Landscape Maintenance District Fund 357, as identified in Attachment A, to support the preparation of Landscape Maintenance District Reserve Study reports. 3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval. 4. Authorize the City Manager or designee to execute up to two additional, one-year renewal options, in an annual amount not to exceed $50,000. BACKGROUND The Santa Clarita Landscape and Lighting District (Landscape and Lighting District) encompasses 61 financially independent Landscape Maintenance District (LMD) zones and a Streetlight Maintenance District (SMD) consisting of 17,523 streetlight poles located throughout the City of Santa Clarita (City). The scope of landscape services administered by the LMD covers over 2,000 acres of landscape areas, including landscaped slopes and parkways, side -panels, numerous monument signs, 29 miles of paseos, 47 linear miles of landscaped medians, park and transit facilities, and approximately 65,000 trees. Page 1 Packet Pg. 30 O Beyond the funding of recurring maintenance activities, the City is responsible for overseeing the periodic servicing and scheduled replacement of capital assets, which support operations of the Landscape and Lighting District. These capital assets are typically comprised of irrigation controllers, backflow devices, irrigation enclosures, wrought iron, split rail fencing, concrete walkways, pedestrian walkway lighting, streetlight fixtures and poles, drainage V-ditches, playground equipment, and significant plant material replacement. Identifying future Landscape and Lighting District capital replacement costs is a component of the City's long-term financial forecast and is calculated through the preparation of a Reserve Study. A Reserve Study entails the inventorying and evaluation of existing capital assets, estimating remaining useful life, forecasting replacement costs, developing a replacement schedule, and recommending the annual amount to be held in reserve to complete future replacement activities. Request for Proposals (RFP) LMD-21-22-10 for the Preparation of Landscape and Lighting District Reserve Studies was published and circulated on October 21, 2021. The RFP was sent to 364 vendors, in addition to the Santa Clarita Valley Chamber of Commerce and the Valley Industry Association. Five companies downloaded the RFP, with the sole proposal submitted by the City's incumbent consultant, Association Reserves. Company Location Points Awarded Association Reserves West Hills, CA 100 In reviewing the proposal, staff determined Association Reserves' experience preparing comparable reserve study reports for multiple public agencies and homeowners' associations throughout the Los Angeles region meets the City's fiscal planning needs. In addition to their on - site work to inventory capital assets and prepare remaining useful life expectancy and valuation estimates, Association Reserves offers a web -based system that allows clients to modify Reserve Study report assumptions in real-time as financial conditions or circumstances in the field change. Staff has completed a due diligence review of Association Reserves' professional references and determined their work meets the City's standards and performance expectations. Staff recommends awarding Association Reserves a contract to provide reserve study services for the City's Landscape and Lighting Districts. ALTERNATIVE ACTION Other action as determined by the City Council. Page 2 Packet Pg. 31 O FISCAL IMPACT There is no impact to the General Fund by this action. Approval of the recommended actions requires the appropriation of funds in the amount of $45,000 from Landscape Maintenance District Fund 357, as identified in Attachment A. ATTACHMENTS Reserve Study Report Preparation Association Reserves Proposal Request for Proposal LMD-21-22-10 (available in the City Clerk's Reading File) Page 3 Packet Pg. 32 Attachment A City of Santa Clarita Reserve Study Report Preparation by Zone Fiscal Year 2021-21 LMD Zone Zone Name Account Amount of Increase Zone T2 Old Orchard 3577512 $3,000.00 Zone T3 Valencia Hills 3577513 $3,000.00 Zone T4 Valencia Meadows 3577514 $3,000.00 Zone T5 Valencia Glen 3577515 $3,000.00 Zone T6 Valencia South Valley 3577516 $3,000.00 Zone T7 Valencia Central & North Valley 3577517 $3,000.00 Zone T8 Valencia Summit 3577518 $3,000.00 Zone T31 Shangri-La 3577524 $3,000.00 Zone T46 Northbridge 3577525 $3,000.00 Zone 18 Town Center / Tourney 3577539 $3,000.00 Zone 3 Sierra Heights 3577530 $3,000.00 Zone 4 Via Princessa/Sierra Highway 3577531 $3,000.00 Zone 5 Sunset Hills 3577532 $3,000.00 Zone 6 Canyon Crest 3577533 $3,000.00 Zone 7 Creekside 3577534 $3,000.00 $45, 000.00 7.b Serving Los Angeles County 6700 Fallbrook Avenue, Suite #255 West Hills, CA 91307 I Tel: (818) 222-0248 Fax: (818) 222-0288 www.reservestudy.com October 22, 2021 c/o Kevin Tonoian Special Districts Manager City of Santa Clarita 22704 9" St Santa Clarita, CA 91321 ASSOCIATION RESERVE STM Planning For The Inevitable - Subject: City of Santa Clarita: LIVID Zones (refer to pg 7 for list of LMD Zones) Dear Kevin, Regional Offices Arizona California Colorado Florida Hawaii Nevada North Carolina Texas Washington Proposal # 38227-1 Thank you for requesting a Reserve Study proposal from Association Reserves. It would be our privilege to serve as your Reserves planning partner! We recognize that you have a choice of Reserve Study providers and want to make sure you understand the many benefits of working with our company. To that end, we have prepared this proposal document which clearly defines the process and scope of work of our Reserve Studies. We have also enclosed the Standard Terms and Conditions which sets forth the terms of the services that Association Reserves will provide for the City of Santa Clarita's LIVID Zone Reserve Studies. When you're ready for the next step, simply follow the instructions listed in the last section, "Terms, Conditions, and Fees." Our office will then contact you regarding the next steps in the process, such as scheduling the site inspection, obtaining required background information, etc. Please don't hesitate to contact us if you have any questions or concerns, or would like any additional information. We hope to hear from you soon! Sincerely, Sean Kargari, RS (#115) President Association Reserves — Los Angeles 9�ftIN MEMBER OF community INSTITUTE Packet Pg. 34 7.b Introduction to Reserve Studies What's a Reserve Study? A Reserve Study is a document used by community associations (or any other type of common interest real estate development) to help determine the relative strength of its existing financial Reserve funds, and to provide forecasts and recommended funding plans for major repair, replacement, or restoration projects over a long period of time. Are Reserve Studies really that important? Absolutely. It's fairly easy to plan and prepare for recurring costs like management fees, insurance premiums, landscaping contracts, and utilities, but what about the projects and expenses that DON'T happen every year? That's our specialty... identifying and forecasting those projects that are certain to occur, but are often overlooked or underestimated. There's no question that setting aside Reserve funds over a long period of time is the simplest, most cost-effective, and most responsible way to plan for major projects. The work will need to be done; it's up to the property and its representatives to plan accordingly. Without adequate Reserves, properties will have to make a tough decision: take out costly loans? Push for recurring special assessments? Or worst, accept a drop in property values due to deteriorating conditions and deferred maintenance? A current, reliable Reserve Study is the first step toward long-term financial strength for every property. Without one, property owners and stakeholders will be misinformed, underprepared, and left exposed to serious financial consequences. A current, reliable Reserve Study is a hallmark of well -managed properties, and an important part of a Board of Directors' fiduciary duty to act in the best interest of their ownership. What components are included in a Reserve Study? The National Reserve Study Standards specify the following criteria for inclusion in a Reserve Study: o Must be the property's responsibility. o Must have a limited Useful Life (UL) o Must have a predictable Remaining Useful Life (RUL) o Must be above a certain "threshold cost" Our studies typically include funding for projects such as: roof replacement, painting/waterproofing, pavement sealing and resurfacing, elevator modernization, balcony and deck sealing and restoration, major mechanical systems (HVAC, fire alarm, hot water, etc.), major pool and spa expenses, interior/amenity area remodeling, and many more. The bottom line is that every property is different, and will require a thorough inspection to determine what belongs in your study. State requirements vary on what types of projects should be addressed through Reserves (and therefore included in a Reserve Study). Our studies will always meet and usually exceed these requirements, ensuring that our clients are acting in accordance with legal requirements and sound fiduciary responsibility. Packet Pg. 35 7.b The Reserve Study Process Our Reserve Studies are prepared in accordance with National Reserve Study Standards, established in 1998 by the Community Associations Institute. Per these standards, a Reserve Study engagement generally consists of the following: 1. Component Inventory & Condition Assessment The component inventory is the task of selecting and quantifying Reserve components. This task can be accomplished through on- site visual observations, review of property design and organizational documents, a review of established precedents, and discussion with appropriate representative(s) of the Client. The condition assessment is "the task of evaluating the current condition of the component based on observed or reported characteristics." As part of our inspection, we review any available building documents including site plans, building plans, fire alarm inspection records, equipment schedules and any other data that may be informative regarding component details, project history or expectations for upcoming work. We then measure/quantify, inspect and document all areas or components to be included. 4 For Update, With Site Visit (Level 2) Reserve Studies, the component inventory is for verification purposes only, using previously -established component quantities from a prior Reserve Study. However, the condition assessment is re- established based on current conditions. For Update, No Site Visit (Level 3) Reserve Studies, there is no physical inspection of the property. We review the component inventory and condition assessments from the most recent study, communicate with the Client about any relevant project history and updated financial information, then proceed with the Life and Valuation Estimates and Financial Analysis. 2. Life & Valuation Estimates Our team begins by organizing and interpreting the raw data�— gathered during the site inspection, reviewing all measurements, notes and photographs for key details and insights. Next, we establish the component list structure, and determine the life and cost estimates for each Reserve component. Our standard procedure is to use any historical information provided to us by the Client (such as when certain projects were done, and what they cost), and to review any bids or estimates for upcoming work. We review our findings with your current vendors for their insights, and also check their input against information we've gathered working with other comparable properties in the area. We constantly consult our own internal databases, comprised of data collected from over 45,000 Reserve Studies. As a supplement, we also make use of various guidebooks, publications and manufacturer's recommendations to supplement our knowledge base. The end result is a complete, thorough set of estimates that are accurate, current, Client -specific, and generated by a qualified, independent third party. 3. Financial Analysis, Report Preparation & Delivery Once the component list is established and we've reviewed your current annual budget and Reserve fund balance(s), we will make a determination of relative current Reserve fund strength and created a recommended funding plan covering the next 30 fiscal years, including a schedule of projected annual income and expenses. 3 Packet Pg. 36 7.b What can I expect to see in my Reserve Study? Simple, concise summary of recommendations, with a clear, organized listing of Reserve components. Aceoclatlan: Sample Reserve study Cantle-Nl 11,411 e Location: Any—M FL Report Period', January 1, 291S through hecem bar 31, 019 Fr9j 0 Stalling Reserve BaU.d .............. ........ ..... .... E1,66081 Fu11y (Weal) Reserve Balance .. ....................EE,g81 RoJri s a.,.J Average Reserve Oellch JBurplusJ PerOwner.. _ ___._ a. _ ___._E],2[I9 Percent Funtletl _. _ _. ..... _...... BT.9% Recommended 2019 "Full Fundln�' Contract—.. ..................... Recommended .19 Special Asaessmenla ter Reserves ......................... U17III g9 MOM e—num Res'—GOntrl button Rate .. ..... .. ...... ..... ...... cise'.as Raccrvec Y. Fulxlatl: 61. 9Y. 3mh PK 13ff% Special A96e1—th R19k', xen um�m ww fgmnomm AeaumlahOna: Nel Annual"Aker Intesud Faminga Accruingle Reserves _1.g99i Annual Inflation Rate...................................................p. oo-A TFIs d.mm lea"Full"III Study(erlglral, emered—ii—h'j, Eased on our N. in, setsapW ,el, far Reserve designalien were excluded As g the sted al the Al Racal year shown In this soudy, your Reserve fund Is determined to be Er.a % Funded. Baaetl on IN, tlgum, the Cllenl's ni yr special aasesamente B deferretl malnlenance la rrerdly Metll um_ TM1e ebJ-1- et yeur mufti year Funding Plan k 1e Fully Fund yeur Reserves, wham cll-mi enjoy a 1. doe of east Reserve cash tlMw pm ti,ran Rased on this staring Post, yeur antic mad fulum —rem., and your Mosel cal Reserver fluerien rat., cur neemmentlatlen le to Increase yeur Reserve eenldbutiena n the upcoming fiscal year. G[Inglorward, the ed ethEMlon rah me[mm[Mcd h[rc should be Increased sa IllusYmtetl on She 3ayr summary Table. This Reserve Study has been prepared using the"pooled" mMhed M Reserve funding (else known as the ea&M1 {Ww melFedf TM1e terms "full funding" antller !rally funding"aa aetl In true Reserve Study am bsaed en the Natleml Reserve Study 9.tandartls deflnitlen d lull landing: "aching a Reserve fuMing gaol to —in antl maim- Reserves at gr rmar I gop .entuedetl."(TM1e tletlnttkn antl means of calcul aling perce...hd.d are Large, color -coded charts and tables to illustrate long- ter implications The following chart shows your Reserve balance under our recommended Full Funding Plan and atyour current budgeted contribution rate, compared to youralways-oltur g Fully Funded Balance target Note ttlat the.curve nm' ontrl bution rate as shown here Is based on the most recent Reserve antri bution rate ae reported to he and assumes an annual in use of 3% to that tale acing forward. This rate is included here for comparison purposes only, to Illustrate what might happen If the Client were to continue budgeting for Reserves et the same rate as It nos moss recently tldne, essu ming tau tine, a nsistent aancal hit sea. This Tiaure shows the same information described above. but plotted an a Percent Funded scale. It is clear here to see hew your Reserve Fund strength approaches the 100% Funded level under our recommended n i-yr Funding Plc n. A —un Reserves, d— h I I'duo a �+-'Jw9Y.tr.a 11 Packet Pg. 37 7.b Here's a sample of our Inventory Appendix pages. We devote a half -page summary to every single component included in your Reserve Study. Comp #: 2343 Building Exteriors - SeallPaint Quantity: Approx 156,000 GSF Location: Building exteriors Fund ed?:Yes. History: Per records provided, exterior building was painted in 2015 for $250,000 Evaluation: Approximately 23,400 LF of sealants. Overall condition noted to be fair: Painted exterior surfaces determined to be in fair condition typically exhibit some minor to moderate signs of wear and age such as chalking, peeling, blistering, etc. Problems tend to develop in more exposed areas first. Hairline cracks may be present at this stage. Overall appearance is satisfactory. There are two important reasons for painting and waterproofing a building: to protect the structure from damage caused by exposure to the elements, and to restore or maintain good aesthetic standards for curb appeal. As routine maintenance, we recommend that regular inspections, spot repairs and touch-up painting be included in the operating budget. Typical paint cycles can vary greatly depending upon many factors including; type of material painted, surface preparations, quality of material, application methods, weather conditions during application, moisture beneath paint, and exposure to weather conditions. Proper sealant/caulking at window and door perimeters and other "gaps" in the building structure are critical to preventing water intrusion and resulting damage. The general rule of thumb is that sealant/caulking should be in place wherever two dissimilar building surfaces meet, such as window frame to concrete structure junctions. For best results, the client may want to consult with a paint company representative, building envelope specialist and/or structural engineer to specify the types of materials to be used and define complete scope of work before bidding. In our experience, cost estimates for painting and waterproofing can vary widely, even when based on the same prescribed scope of work. Estimates shown here should be updated and revised as needed based on actual bids obtained or project cost history during future Reserve Study updates. r oft Useful Life: &e Descriptive, 7 years thorough observations Remaining Life: - �r 4 years ft i Easy -to -find details-' \ Full -color y ■�7 _ photographs Best Case: $ 320,000 Worst Case: $ 400,000 Lower estimate to seal/repaint Higher estimate Cost Source: AR Cost Database/Client Cost History Association Reserves, 99995-0 42 3/5/2018 Packet Pg. 38 7.b Deliverables Upon completion of the Reserve Study, the Client will receive the following: • Electronic Copy: A digital (PDF) version of the entire Reserve Study document is delivered by email in PDF form. We also post the completed study to a complimentary, private (password - protected) account on the Document Center of our website, where Client representatives can view and download all relevant documents, including the Funding Plan Software. • Complimentary Hard Copy: Upon the Client's request to us, one printed and bound full - color copy is available upon request upon completion of the Reserve Study at no cost. Funding Plan Software File: The financial analysis = portion of the study can be provided at no additional cost using our proprietary online funding tool, uPlanit - - and a customized Microsoft Excel° file. These platforms �= include fully -functional formulas and input -ready data fields for adding, removing or adjusting component data, such as useful life, remaining useful life, and replacement cost estimates. We provide these files so that our clients can test "what- if" scenarios, see how their funding plan might change given various interest or inflation rates, and review the "raw" data that went into preparing their study. • Complimentary Revision: In the event there is a material error or discrepancy identified within the Reserve Study, upon the Client's written request to us, we will gladly revise the study at no charge to the Client for a period of up to 60 days following our initial delivery of the completed study. The foregoing is limited to one revision of the initial completed study. Other requests for changes, or requests made greater than 60 days following our initial delivery of the study may be approved by us in our sole discretion and potentially at an additional cost to the Client. • Complimentary Additional Services: We will always answer phone and email messages regarding any questions or concerns regarding a recent Reserve Study that we have completed We are always here to help! Additional educational resources are available on our website (www.reservestudy.com). • Complimentary Video Presentation: Upon the Client's request to us, we can produce a video explanation of your completed Reserve Study, which will be free of charge and can be shared with the Board & owners. Packet Pg. 39 Levels of Service: Turnaround Time: LMD Zone T2 - $3,000 LMD Zone T3 - $3,000 LMD Zone T4 - $3,000 LMD Zone T5 - $3,000 LMD Zone T6 - $3,000 LMD Zone T7 - $3,000 LMD Zone T8 - $3,000 LMD Zone T31 - $3,000 LMD Zone T46 - $3,000 LMD Zone 18 - $3,000 LMD Zone 3 - $3,000 LMD Zone 4 - $3,000 LMD Zone 5 - $3,000 LMD Zone 6 - $3,000 LMD Zone 7 - $3,000 7.b "Full" On -Site Reserve Study 10 Weeks '�mpe 2nrFnw .'•q.d� ► OAP Pnywham. Z '_7 M-0 C-Fh- Cwr-k 31.;1 Total for (15) Reserve Studies - $45,000 (see next page for details) N O a O L CL 0 r c� O Cn N Q C E a Packet Pg. 40 7.b Reserve Study Proposal August 31, 2021 Levels of Service: "Full" On -Site Reserve Study for Each Zone (15 Total) Turnaround Time: 10 Weeks Fee: $45,000 (valid for 90 days) Service Description: Association Reserves will provide a "Full" On -Site reserve study for the City of Santa Clarita's LIVID Zones listed on pg 7. Our site inspection will include a condition assessment of all visible assets, including irrigation controllers, backflow devices, irrigation enclosures, & meters. Association Reserves will ask the client to provide asset quantities for the sprinkler heads, sprinkler valves, irrigation controllers, meters, and backflow devices, along with equipment maps for each Zone. Association Reserves will conduct independent research with the irrigation equipment manufactures, as well as any local service providers utilized by the City of Santa Clarita to verify our useful life assumptions. The reserve study will include a photographic inventory appendix consisting of color - photos, locations, & condition assessments of each individual reserve line -item. The client will also be provided access to Association Reserves' new online funding tool, uPlanit, as well as a custom Excel Spreadsheet. Both the uPlanit and the Excel spreadsheet will mirror the reserve study provided, including all charts and graphs. These tools will enable the client to try different "what if" scenarios for both the component assumptions and the funding plan. The Excel Spreadsheet for each LMD's reserve study can be combined with additional LMD Zone reserve studies to provide an overall master reserve study. Association Reserves will provide this master reserve study for no additional charge once all individual LIVID Zone reserve studies are completed. s Packet Pg. 41 TABLE OF CONTENTS PROPOSAL # LMD-21-22-10 Preparation of Landscape and Streetlight Maintenance District Reserve Studies City of Santa Clarita, California SECTION A NOTICE INVITING PROPOSALS PROPOSAL INSTRUCTIONS DOCUMENT CHECKLIST SECTION B SCOPE OF WORK RESPONSE FORMAT AND SELECTION CRITERIA SECTION C BID SCHEDULE NOTICE TO PROPOSERS REGARDING CONTRACTUAL REQUIREMENTS DESIGNATION OF SUBCONTRACTORS/SUBCONSULTANTS REFERENCES ACKNOWLEDGEMENT AND ACCEPTANCE OF SCOPE OF WORK SECTION D SAMPLE PROFESSIONAL SERVICES AGREEMENT PROFESSIONAL SERVICES AGREEMENT CONTRACT PROVISIONS SUBCONTRACTOR CLAUSES APPENDIX A FULL RESERVE STUDY EXECUTIVE SUMMARY $NNTA 9� U � .1 QGy��° �s oaces�a�4h$� 9 r i Preparation of Landscape and Streetlight Maintenance District Reserve Studies PROPOSAL # LMD-21-22-10 SECTION A RFP Information & Instructions CITY OF SANTA CLARITA NOTICE INVITING PROPOSALS Project Name: Preparation of Landscape and Streetlight Maintenance District Reserve Studies Proposal #: LMD-21-22-10 Proposal Closing: October 28, 2021 at 11:OOAM PST Last Day for Questions: October 26, 2021 at 11:OOAM PST Estimated Contract Value: $150,000 License(s) Required: N/A Project Description: The City of Santa Clarita is seeking proposals for Preparation of Landscape Maintenance District Reserve Studies. These studies will be prepared for approximately 45 of the City's financially independent Landscape Maintenance and Streetlight Maintenance District Zones. Pre -Proposal Meeting: N/A Prevailing Wage: No Required Contractor Only bids submitted by bidders (along with all listed subcontractors) that are & Subcontractor currently registering and qualified to perform public work pursuant to Labor Registration: Code Section 1725.5. Bond Requirements: No Contact Information: Jonathan Cosh, Buyer; Phone: (661)286-4187, Email: jcosh@santa-clarita.com Specifications for this request for proposals (RFP) may be downloaded from the City's Purchasing website at: www.bidnetdirect.com//cityofsantaclarita. Please refer to specifications for complete details and RFP requirements. The specifications in this notice shall be considered a part of any contract made pursuant thereto. A paper copy of the RFP documents is available upon request in the City Clerk's office, suite 120. RFP Questions must be submitted electronically via the Bid Net "Question and Answer" tab. Addenda, if issued by the CITY, will be transmitted on Bid Net. Addenda must be digitally acknowledged via BidNet in addition to a printed and signed version submitted with the proposal response. If addenda are not signed and submitted with the proposal response, the submission may be deemed non- responsive and rejected. Dates Published: October 21, 2021 PROPOSAL INSTRUCTIONS PROPOSAL # LMD-21-22-10 Preparation Of Landscape And Streetlight Maintenance District Reserve Studies City of Santa Clarita, California 1. SUBMITTING PROPOSALS. 1.1. The response must be submitted on this form and include all forms provided or information requested or required by the scope of work or specifications, (uploaded via BidNet). 1.2. All documentation of unit pricing or other cost breakdowns as outlined in this proposal must be submitted to support the total proposed price. 1.3. Proposals/corrections received after the closing time will not be accepted. The City will not be responsible for proposals not properly or timely, uploaded. Upon award, all submissions become a matter of public record. 2. ADDENDA. The City will not accept responsibility for incomplete packages or missing addenda. It is the vendor's responsibility to monitor BidNet for release of the addenda prior to submission of the quote to make certain the package is complete and all required addenda are included. This information will be available via BidNet. Vendors are cautioned against relying on verbal information in the preparation of proposal responses. All official information and guidance will be provided as part of this solicitation or written addenda. Addenda, if issued by the Agency, will be transmitted via BidNet. Addenda must be digitally acknowledged through BidNet in addition to a printed and signed version submitted with the proposal. If addenda are not signed and submitted with the proposal response, the proposal may be deemed non -responsive and rejected. 3. AWARDS. 3.1. The City reserves the right to waive any informality in any proposal. 3.2. This RFP does not commit the City to award a contract, or to pay any amount incurred in the preparation of the proposal. The City reserves the right to accept or reject all proposals received as a result of this request, to negotiate with any qualified consultant, or to cancel this RFP in part or in its entirety. The City may require the selected consultant to participate in negotiations and to submit such technical, price, or other revisions of the proposal as may result from negotiations. The City reserves the right to extend the time allotted for the proposal, and to request a best and final offer, should it be in its best interest to do so. 3.3. The proposal may be awarded in its entirety as proposed; however, the City reserves the right to award elements of the work, independently, and to do portions "in-house." Additionally, the City reserves the right to award subsequent work on this project based on information presented in this proposal, without recourse to a separate or subsequent RFP process, should it be in its best interest to do so. 3.4. The City may make an award based on partial items unless the proposal submitted is marked "All or none." Where detailed specifications and/or standards are provided the City considers them to be material and may accept or reject deviations. The list of proposals submitted will be posted on BidNet, normally within 24 hours. 4. COOPERATIVE BIDDING. Other public agencies may be extended the opportunity to purchase off this solicitation with the agreement of the successful vendor(s) and the City. The lack of exception to this clause in vendor's response will be considered agreement. However, the City is not an agent of, partner to or representative of these outside agencies and is not obligated or liable for any action or debts that may arise out of such independently negotiated "piggy -back" procurements. 5. DELIVERY. Unless otherwise specified, delivery shall be D.D.P., the City of Santa Clarita, site of user division and contract delivery may begin no later than fifteen (15) calendar days from receipt of order. 6. INVOICES. Invoices will be forwarded to: City of Santa Clarita NS - Special Districts Attn: Kevin Tonoian 23920 Valencia Blvd. Ste. 295 Santa Clarita, CA 91355-2196 Invoices will reflect the purchase order # and goods or service delivered in accordance with the terms of the contract. Invoice processing begins on receipt of the material or invoice, whichever is later. 7. PREPARATION. All proposals and required forms must be uploaded as laid out in the BidNet General Attachments Section. 8. REJECTION. The City reserves the right to reject any or all proposals and to waive any informality in any proposal. The City may reject the proposal of any vendor who has previously failed to perform properly, or complete on time, contracts of a similar nature, or to reject the proposal of a vendor who is not in a position to perform such a contract satisfactorily. The City may reject the proposal of any vendor who is in default of the payment of taxes, licenses or other monies due to the City of Santa Clarita. 9. RENEWAL AND PRICING ADJUSTMENT. Contracts entered into pursuant to this RFP may be renewed annually, up to three times, in accordance with the terms of the contract. If not otherwise stated, the contract may be renewed if the new pricing of the contract does not change more than the Consumer Price Index - All Urban Consumers (not seasonally adjusted), Los Angeles Area -Riverside -Orange county area and prevailing wage rates, if applicable. The index level for the month preceding the month of solicitation advertisement will become the beginning index. The price adjustment limit will be the percentage change based on the difference between the beginning level or the adjustment level last used and the index level for the period 90 days prior to the award anniversary. The final adjusted amount will be determined by purchasing staff. If a price adjustment is not requested prior to the award anniversary date, the previous year's rates will apply. Proposer shall honor proposal prices for One -Hundred and Twenty Days (120 days) or for the stated contract period, whichever is longer. 10. SUBCONTRACTORS. For all projects, the vendor must list any subcontractors/subconsultants that will be used, the work to be performed by them, and total number of hours or percentage of time they will spend on the project. Each proposer must submit with their proposal the following: • The Full name of each subcontracting firm as required by Government Code, Sec. 4201, typed or legibly printed. • The address of each firm. • The telephone number at the place of business. • Work to be performed by each subcontracting firm. • Total approximate dollar amount of each subcontract. • If sub -contractor is participating as a Disadvantaged Business Enterprise (DBE), the following additional information is required on the "Designation of Subcontractors" form enclosed: ➢ Status as a DBE, age of the firm and the annual gross receipts. • Submit the "Designation of Subcontractors" form enclosed herewith. No Contract shall be considered unless such list is submitted as required. Copies of subcontracts will be provided to the City Engineer upon their request. 11. TERMINATION. The City may terminate any purchase, service or contract with or without cause either verbally or in writing at any time without penalty. The City of Santa Clarita's "Terms and Conditions" is found on a separate attachment in BidNet. DOCUMENTS CHECKLIST PROPOSAL # LMD-21-22-10 Preparation Of Landscape And Streetlight Maintenance District Reserve Studies City of Santa Clarita, California In addition to the items requested for the proposal the following documents are required to be completed and submitted by the proposer. The following documents must be provided by ALL proposers: Uploaded via BidNet (see Section C) ❑ Response File ❑ Cost File — Bid Schedule (to be submitted separately from Response File) ❑ Notice to Proposers Regarding Contractual Requirements ❑ Designation of Subcontractors/Subconsultants ❑ References ❑ Acknowledgement and Acceptance of Scope of Work ❑ All signed addendums (if any) —Digitally acknowledged on BidNet in addition to uploaded via BidNet The following documents must be provided by the AWARDEE ONLY (With Agreement) Delivered to City Hall, Attn: Kevin Tonoian ❑ Professional Services Agreement ❑ Insurance Required by Contract ❑ W-9 Form SECTION B Solicitation Information SCOPE OF WORK DATE October 1, 2021 PROPOSAL # LMD-21-22-10 October 7, 2021 Preparation of Landscape and Streetlight Maintenance District RefQtu[l13f?§.021 City of Santa Clarita, California October 21, 2021 October 25-29, 2021 The City of Santa Clarita (City) requests proposals for the following purpose aN�mrAiptEtp2tb,e2Wtns and conditions described below. In the preparation of this Request for Proposal the xwo'SWcAj9jj "Contractor," "Consultant," or Proposer may be used interchangeably. January 2022 1. PURPOSE: The City of Santa Clarita is seeking proposals for Preparation of Landscape Maintenance District Reserve Studies. These studies will be prepared for approximately 45 of the City's financially independent Landscape Maintenance and Streetlight Maintenance District Zones to support the City's efforts to identify and complete capital replacement activities in a timely and efficient manner. Interested parties should read this statement of work to its end, and following the schedule below submit a written proposal. Proposals will be evaluated and scored. It is anticipated that the awarded contract will be for a three (3) year initial contract and 3 (3) additional one (1) year incremental renewal options. Additionally, interested Proposers are encouraged use the following links for more information: 2. PROPOSAL SCHEDULE: Following is a tentative schedule of events: EVENT Solicitation advertisement Last day for questions Return of proposals Evaluations of proposals Recommendation to awarding body Contract award Contract Start date DATE October 21, 2021 October 26, 2021 October 28, 2021 October 28, 2021 - November 4, 2021 November 23, 2021 December 2021 January 2022 3. INTRODUCTION/BACKGROUND: The City of Santa Clarita is located in northern Los Angeles County and includes the communities of Canyon Country, Newhall, Saugus and Valencia. According to census reports, the City of Santa Clarita's population is 221,932 making it the third largest City in Los Angeles County and 18tn largest in the State of California. Santa Clarita residents rank landscaping as a priority, and quality maintenance service is a high priority to the City Council. Landscape maintenance is funded through dedicated special benefit assessments approved by property owners. The City's Landscape Maintenance District (LIVID) encompasses 61 financially independent zones. These zones are diverse in: size, scope, cost to maintain, and property owner expectations. These zones are described further on the following link:https://www.santa-clarita.com/city-hall/departments/neighborhood-services/special- districts/engineer-s-reports. The LIVID is in the City's Special Districts Division which in turn is under the City's Administrative Services Department. The scope of landscape services administered by the LIVID is diverse and wide ranging including: three parks, five transit properties (inclusive of three Metrolink stations), 56 miles of landscaped medians, 29 miles of landscaped walkways called paseos, over 50 million square feet of irrigated slope, and ornamental landscape similar to what is typically maintained by homeowner's associations. Irrigation is managed by the City LIVID using standardize controllers. The City LIVID manages over 722 WeatherTrack controllers serving all landscaping maintained by the LIVID. 4. OBJECTIVE(SMORK PRODUCTS: Proposing companies will describe their approach for preparing comprehensive Reserve Studies which incorporates the following attributes. 1. Component Inventory and Condition Assessment - Completion through on -site visual observations, review of property design and organizational documents, a review of established precedents, and discussion with City staff as -necessary. On -site inspection to include a condition assessment of all visible assets, including irrigation controllers, backflow devices, irrigation enclosures, & meters, and; swales, V-ditches and/or playground equipment as -necessary. 2. Life & Valuation Estimates - Organize and interpret data gathered during the site inspection, reviewing notes and photographs for key details; establish the component list structure, and determine the life and cost estimates for each Reserve component; review findings with appropriate component manufactures, and evaluate input against information gathered via other comparable properties in the area. 3. Reserve Recommendations - Evaluate relative reserve fund strength of each individual LIVID Zone and create a recommended funding plan covering the next 30 fiscal years, including a schedule of projected annual income and expenses. 4. Deliverables a. Completed digital (PDF) version of the entire Reserve Study document for each financially independent LIVID Zone. b. Reserve Study will include photographic inventory appendix consisting of color photos, locations, & condition assessments of each individual reserve line -item. c. Fiscal Analysis Software — Web -based financial analysis platform incorporating formulas and input -ready data fields for adding, removing or adjusting component data, such as useful life, remaining useful life, and replacement cost estimates to facilitate creation of various "what -if" scenarios. d. Report Revisions and as -needed Support— Provide no -cost report revision support for a specific timeframe as identified by Proposer; provide ongoing telephone and email technical support concurrent to duration of Agreement. 5. REQUIRED QUALIFICATIONS: Demonstrated experience with projects similar in scope specific to conducting landscape operation -based reserve studies for a minimum of two public agencies and two Homeowner's Associations or similar. Each example should include the general project description, consultant fee, owner representative name and phone number, and key project personnel employed by your firm. RESPONSE FORMAT AND SELECTION CRITERIA PROPOSAL # LMD-21-22-10 Preparation of Landscape and Streetlight Maintenance District Reserve Studies City of Santa Clarita, California Submitted proposals must follow the format outlined below and all requested information must be supplied. Failure to submit proposals in the required format may result in elimination from the evaluation and selection process. FORMAT Each proposal must be submitted in two parts: Part I must relate to the Technical Proposal Part 11 must relate to the Cost Proposal Both parts are to be submitted at the same time via BidNet but separately. The Proposer will return Parts I & II by the due date and time for the return of proposals. A. PART I - TECHNICAL PROPOSAL Must include and be submitted in the following order and be tabbed (except cover letter): a. Cover Letter - Must include the name, address, and telephone number of the company, and be signed by the person or persons authorized to represent the firm. b. Table of Contents - Clearly identify headings identified below and contained in your proposal with corresponding page numbers. c. Proposer's Introduction - Contents to be determined by contractor. Please limit this section to one page. d. Work Program • Describe your company's understanding of the City of Santa Clarita's Landscape and Streetlight Maintenance Districts. • Provide a written narrative clearly demonstrating the Proposer's approach to the project including clearly demonstrating how the Proposer has the internal capacity and ability to coordinate with sub -consultants (if applicable) in order to complete the project within the indicated timeframe. Include all the steps necessary to work in a collaborative environment and the Proposer's experience working in a collaborative environment. e. Assigned Personnel • Proposer must identify and list the principals (includes owners and employees) having primary responsibility for overseeing, managing and preparing all reserve studies provided to the City. • Overall experience, professional areas of expertise, and time working for the Proposer. f. Schedule • Complete site evaluation, preparation and delivery of up to fifteen (15) individual reserve studies as part of any given work -order within 10 weeks of notice to proceed. g. Subcontractors • If subcontractors are to be used, identify each, their qualifications, and describe the work to be performed in the proposal. h. Contractor Capability and References • Provide a summary of the firm's resources, staff, equipment and relevant background experience and applicability as it relates to this RFP. • Provide references identifying work performed on behalf of other public or private agencies similar scope and nature which reflects a minimum of: o Two (2) public agency and two (2) Homeowners' Association references. i. Conflict of Interest • Address possible conflicts of interest with other clients affected by actions performed by the firm on behalf of the City. Although the Proposer will not be automatically disqualified by reason of work performed for other parties, the City reserves the right to consider the nature and extent of such work in evaluating the proposal. j. Insurance • Provide an indication of the availability of insurance, including general liability and workers' compensation in the amount of not less than $1,000,000. k. Additional Data • Provide other essential data that may assist in the evaluation of this proposal. B. PART II - COST PROPOSAL The Cost Proposal will be provided separately from the Technical Proposal. Proposers are instructed to utilize the attached Bid Sheets (see Attachment A) in order to provide the City with a breakdown of the costs associated with their response. Proposers are directed to attach a cover sheet that identifies the Proposer's name. This cost section is to emphasize use and meaning of cost information supplied in the proposal response. Lump sum cost figures to prepare reserve studies for each individual LIVID zone are to be inclusive of every cost to provide all services and performance as outlined in this solicitation. No additional cost will be considered or paid except as specified in the proposal. Statement of Offer and Signature - The proposal shall be signed by an individual authorized to bind the consultant, shall contain a statement to the effect that the proposal is a firm offer for a 120-day period, and shall contain a statement that the proposed work will be performed at the "not -to -exceed" price. This will include all deliverables and meeting attendance as laid out in the scope of work PROPOSAL SUBMISSION All proposals must be submitted according to specifications set forth herein. Failure to adhere to these specifications may be cause for rejection of proposal. Signature - An authorized representative of the Proposer should sign all proposals. Due Date - All proposals must be received before 11:00 AM, October 28, 2021 and submitted via BidNet. Late bids/proposals will not be accepted. Any correction or resubmission done by the Proposer will not extend the submittal due date. PROPOSAL EVALUATION AND CONTRACTOR SELECTION EVALUATION: Written proposals will be scored and evaluated. SCORING CRITERIA: • Quality and Responsiveness of the Overall Proposal • Overall Public Agency and Homeowners' Association or similar Professional Experience • Qualifications and Experience Preparing Landscape Operation -Based Reserve Studies • References • Cost SELECTION: Numberof Contracts Awarded - It is anticipated that one Proposers will be recommended for an award of contract to the City Council. Written proposals will be reviewed and scored by multiple evaluators, with individual scores combined and averaged into a single score. SECTION C Forms BID SCHEDULE RFP # LMD-21-22-10 Preparation of Landscape and Streetlight Maintenance District Reserve Studies City of Santa Clarita, California The Agency is bidding the project with this Bid Schedule. The Agency will award the Contract, based on the Contractor's Base Bid, to the lowest successful Bidder. The City reserves the right to reject any and all bids, to waive any informality in a bid, and to make awards in the interest of the City. Lump -Sum Pricing MUST be entered in BidNet. This page is for reference ONLY. If the number entered on this page conflicts with what is entered on BidNet, the Number entered on BidNet shall govern. ITEM DESCRIPTION UNIT QTY. UNIT PRICE TOTAL 1 Full Reserve Study (Inclusive of Site Visit/Evaluation) LS 1 $ $ 2 Update "No -Site -Visit" Reserve Study LS 1 $ $ GRAND TOTAL: $ Grand Total of Base Bid in Words: NOTICE TO PROPOSERS REGARDING CONTRACTUAL REQUIREMENTS PROPOSAL # LMD-21-22-10 Preparation of Landscape and Streetlight Maintenance District Reserve Studies City of Santa Clarita, California 1. SUMMARY OF CONTRACT REQUIREMENTS a. A contract is required for any service performed on behalf of the City. Work cannot begin until the contract has been fully executed by both parties. 2. SUMMARY OF INSURANCE REQUIREMENTS a. These are the Insurance Requirements for Contractors providing services or supplies to the City. By agreeing to perform the work or submitting a proposal, you verify that you comply with and agree to be bound by these requirements. When Contract documents are executed, the actual Contract language and Insurance Requirements may include additional provisions as deemed appropriate by City's Risk Manager. b. You should check with your Insurance advisors to verify compliance and determine if additional coverage or limits may be needed to adequately insure your obligations under this agreement. These are the minimum required and do not in any way represent or imply that such coverage is sufficient to adequately cover the Contractor's liability under this agreement. The full coverage and limits afforded under Contractor's policies of Insurance shall be available to Buyer and these Insurance Requirements shall not in any way act to reduce coverage that is broader or includes higher limits than those required. The Insurance obligations under this agreement shall be: 1—all the Insurance coverage and limits carried by or available to the Contractor; or 2—the minimum Insurance requirements shown in this agreement, whichever is greater. Any insurance proceeds in excess of the specified minimum limits and coverage required, which are applicable to a given loss, shall be available to City. c. Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. City reserves the right to require full -certified copies of all Insurance coverage and endorsements. 3. INSURANCE a. General Insurance Requirements i. All insurance shall be primary insurance and shall name City of Santa Clarita as an additional insured. The naming of an additional insured shall not affect any recovery to which such additional insured would be entitled under the policy if not named as an additional insured, and an additional insured shall not be held liable for any premium or expense of any nature on the policy or any extension thereof solely because they are an additional insured thereon. ii. If the operation under this Agreement results in an increased or decreased risk in the opinion of the City's Risk Manager, then Consultant agrees that the minimum limits hereinabove designated shall be changed accordingly upon written request by the Risk Manager. iii. Consultant agrees that provisions of this Section as to maintenance of insurance shall not be construed as limiting in any way the extent to which Consultant may be held responsible for the payment of damages to persons or property resulting from Consultant's activities, the activities of its subconsultants, or the activities of any person or persons for which Consultant is otherwise responsible. iv. A Certificate of Insurance, and an additional insured endorsement (for general and automobile liability), evidencing the above insurance coverage with a company acceptable to the City's Risk Manager shall be submitted to City prior to execution of this Agreement on behalf of the City. v. The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or canceled by the carrier, for nonpayment of premiums otherwise, without 30 days prior written notice of amendment or cancellation to City. In the event the said insurance is canceled, Consultant shall, prior to the cancellation date, submit new evidence of insurance in the amounts heretofore established. vi. All required insurance must be in effect prior to awarding this Agreement, and it or a successor policy must be in effect for the duration of this Agreement. Maintenance of proper insurance coverage is a material requirement of this Agreement, and the failure to maintain and renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract. If Consultant, at any time during the term of this Agreement, should fail to secure or maintain any insurance required under this Agreement, City shall be permitted to obtain such insurance in Consultant's name at Consultant's sole cost and expense, or may terminate this Agreement for material breach. vii. Without limiting any other Consultant obligation regarding insurance, should Consultant's insurance required by this Agreement be cancelled at any point prior to expiration of the policy, Consultant must notify City within 24 hours of receipt of notice of cancellation. Furthermore, Consultant must obtain replacement coverage that meets all contractual requirements within 10 days of the prior insurer's issuance of notice of cancellation. Consultant must ensure that there is no lapse in coverage. b. General Liability and Property Damage Insurance i. Consultant agrees to procure and maintain general liability and property damage insurance at its sole expense to protect against loss from liability imposed by law for damages on account of bodily injury, including death therefrom, and property damage, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly from any act or activities of Consultant, its subconsultants, or any person acting for Consultant or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of Consultant, or its subconsultants, or any person acting for Consultant, or under its control or direction. Such public liability and property damage insurance shall also provide for and protect City against incurring any legal cost in defending claims for alleged loss. Such general liability and property damage insurance shall be maintained in the following minimum limits: A combined single -limit policy with coverage limits in the amount of $1,000,000 per occurrence will be considered equivalent to the required minimum limits. c. Automotive Insurance i. Consultant shall procure and maintain public liability and property damage insurance coverage for automotive equipment with coverage limits of not less than $1,000,000 combined single limit. If Consultant does not use automobiles in performing its work under this Agreement, Consultant shall provide a waiver releasing City from all liability resulting from Consultant's use of personal vehicles under this Agreement. d. Worker's Compensation Insurance i. Consultant shall procure and maintain Worker's Compensation Insurance in the amount of $1,000,000 per occurrence or as will fully comply with the laws of the State of California and which shall indemnify, insure, and provide legal defense for both Consultant and City against any loss, claim, or damage arising from any injuries or occupational diseases happening to any worker employed by Consultant in the course of carrying out this Agreement. ii. Waiver of Subrogation: The insurer(s) agree to waive all rights of subrogation against City, its elected or appointed officers, officials, agents, volunteers and employees for losses paid under the terms of the workers compensation policy which arise from work performed by Consultant for City. Questions and requests for modification of these terms must be negotiated and approved prior to bid closing and are at the full discretion of the City. I have read and understand the above requirements and agree to be bound by them for any work performed for the City. Authorized Signature: Printed Name: Date: DESIGNATION OF SUBCONTRACTORS/SUBCONSULTANTS PROPOSAL # LMD-21-22-10 Preparation of Landscape and Streetlight Maintenance District Reserve Studies City of Santa Clarita, California Listed below are the names and locations of the places of business of each subcontractor, supplier, and vendor who will perform work or labor or render service in excess of % of 1 percent, or $10,000 (whichever is greater) of the prime contractor's total bid: DBE status, age of firm and annual gross receipts are required if sub -contractor is participating as a DBE. If no Subcontractors will be used fill out the form with NA. Please add additional sheets if needed. Subcontractor DIR Registration No. Dollar Value of Work �"r BB�1Fes Pie Location and Place of Business Bid Schedule Item No's: Description of Work License No. Exp. Date: / / Phone ( ) Subcontractor DIR Registration No. Dollar Value of Work Location and Place of Business Bid Schedule Item No's: Description of Work License No, Exp. Date: / / Phone ( ) Subcontractor DIR Registration No. Dollar Value of Work �r �°QC�1Fe5 Ne Location and Place of Business Bid Schedule Item No's: Description of Work License No. Exp. Date: / / Phone ( ) NOTE: A contractor or subcontractor shall not be qualified to propose on, be listed in a proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5 of the Labor Code. It is not a violation of this section for an unregistered contractor to submit a proposal that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 of the Labor Code at the time the contract is awarded. REFERENCES PROPOSAL # LMD-21-22-10 Preparation of Landscape and Streetlight Maintenance District Reserve Studies City of Santa Clarita, California The following are the names, addresses, and telephone numbers of three public agencies for which proposer has performed work of a similar scope and size within the past 3 years. If the instructions on this form conflict with the references requested in the scope of work, the scope of work shall govern. Complete this form out accordingly. Fill out this form completely and upload it with your proposal. 1. Name and Address of Owner / Agency Name and Telephone Number of Person Familiar with Project Contract Amount Type of Work Date Completed 2. Name and Address of Owner / Agency Name and Telephone Number of Person Familiar with Project Contract Amount Type of Work Date Completed 3. Name and Address of Owner / Agency Name and Telephone Number of Person Familiar with Project Contract Amount Type of Work Date Completed The following are the names, addresses, and telephone numbers of all brokers and sureties from whom Proposer intends to procure insurance bonds: ACKNOWLEDGEMENT & ACCEPTANCE OF SCOPE OF WORK PROPOSAL # LMD-21-22-10 Preparation of Landscape and Streetlight Maintenance District Reserve Studies City of Santa Clarita, California By providing the three (3) required signatures below, the Contractor acknowledges full understanding, complete agreement to, and accepts in its entirety, all Scope of Work for the Preparation of Landscape and Streetlight Maintenance District Reserve Studies. The Contractor will be expected to perform maintenance practices and uphold the standards herein to the established Scope of Work throughout the length of the contract. *Supervisor's Signature: Date: *Estimator's Signature: Date: *Owner's Signature: Date: *All three signatures required SECTION D Sample Contract SAMPLE ONLY PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND FOR CON-6 Council Approval Date: Agenda Item: Contract Amount: 0 IV This AGREEMENT by and between the CITY OF XANTA CLARITA, a municipal corporation and general law city ("CITY") and , a ("CONSULTANT"), and is dated 1. CONSIDERATION. (A) As partial consideration, CONSULTANT agrees to perform the Services listed in the SCOPE OF SERVICES, below; and (B) As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement; and (C) As additional consideration, CITY agrees to pay CONSULTANT a sum not to exceed dollars ($ ) for CONSULTANT's Services. CITY may modify this amount as St. forth below. Unless otherwise specified by written amendment to this Agreement, CITY will pay this sum as specified in the attached Exhibit(s) " " which is/are incorporated by reft- ce 2. SCOPE OF SERVICES. (A) CONSULTANT will perform Services listed in the attached Exhibit(s) " which is/are incorporated by reference. (B) CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculation, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by CITY, necessary or proper to perform and complete the Services and provide the professional Services required of CONSULTANT by this Agreement. 3. PERFORMANCE STANDARDS. (A) By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public CITY. (B) CONSULTANT will perform its Services in a skillful manner, comply fully with all City established criteria, and with all applicable federal, state, and local laws, codes, and professional standards. (C) CONSULTANT agrees to comply with all applicable federal and state employment laws regulations and rules including those that relate to minimum hours and wages, occupational health and safety, workers compensation insurance and state, county and local orders. (D) CONSULTANT will staff this Agreement with personnel qualified to adequately and professionally form the Services. (E) CONS T of subcontract any portion of these Services without the CITY's prior written appr 1. (F) CITY's approval of any payment, or conducting of any inspection, reviews, approvals, or oral statements, or any governmental entity's certification, will in no way limit the CONSULTANT's obligations under this Agreement or CONSULTANT's complete responsibility for all Services hereunder. 4. PAYMENTS. (A) For CITY to pay CONSULTANT as specified by this Agreement and as provided in attached Exhibit(s) " CONSULTANT must submit a detailed invoice to CITY which lists the hours worked and hourly rates for each personnel category and reimbursable costs (all as set forth in Exhibit(s) " " ) the tasks performed, the percentage of the task completed during the billing period, the cumulative percentage completed for each task, the total cost of that Services during the preceding billing month and a cumulative cash flow curve showing projected and actual expenditures versus time to date. (B) CITY may withhold all or a portion of payment otherwise due in the event that Services are either improperly or not performed. 5. PROJECT COORDINATION AND SUPERVISION. (A) CONSULTANT will assign as CONSULTANT's Project Manager and will be responsible for job performance, negotiations, contractual matters, and coordination with CITY's Project Manager. CONSULTANT may change its Project Manager only with CITY consent. (B) CITY will assign as CITY's Project Manager, will be personally in charge of and personally supervise or perform the technical execution of the project on a day-to-day basis on behalf of CITY, and will maintain direct communication with CONSULTANT's Project Manager. CITY may change its Project Manager at any time with notice to CONSULTANT. 6. NON -APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for current Services are within the current budget and within an available, unexhausted and unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient funds for payment of CONSULTANT Services beyond the current fiscal year, this Agreement will cover only those costs incurred up to the conclusion of the current fiscal year. 7. FAMILIARITY WITH SERVICES AND SITE. (A) By executing this Agreement, CONSULTANT represents that it has: (i) Carefully investigated and considered the scope of Services to be performed; and (ii) Carefully considered how the Services should be p ormed; and (iii) Understands the facilities, difficulties, an restrictions attending performance of the Services under this Agreement. (B) If the Services under this Agreement are to be performed upon any site, or otherwise require CONSULTANT to access a site, by executing this Agreement CONSULTANT represents that it has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the Services under this: Agreement. 8. TERM. (A) The term of this Agreement will be from _ to Unless otherwise determined by written amendment between the parties, this Agreement will terminate in the following instances: (1) Completion of the Services specified in Exhibit(s) " ", or (2) Termination pursuant to Section 17 TERMINATION. (B) Except as otherwise separately and expressly provided by the CITY in writing, the provisions of this Agreement shall survive any expiration, breach, or termination of this Agreement, and any completion of the Services. 9. TIME F04# RFORXANCE. CONSULTANT will not perform any Services under this Agreement until: (A) CONSULTANT furnishes proof of insurance as required under Section 24 INSURANCE; and (B) CITY gives CONSULTANT a written notice to proceed. Should CONSULTANT begin Services on any phase in advance of receiving written authorization to proceed, any such professional Services are at CONSULTANT's own risk. 10. SCHEDULE OF PERFORMANCE AND EXTENSIONS. (A) Should the progress of the Services under this Agreement at any time fall behind schedule for any reason other than excusable delays CONSULTANT shall apply such additional manpower and resources as necessary to bring progress of the Services under this Agreement back on schedule and consistent with the standard of professional skill and care required by this Agreement. Time is of the essence in the performance of this Agreement. (B) Should CONSULTANT be delayed by causes beyond CONSULTANT's control, CITY may grant a time extension for the completiow-of the contracted Services. If delay occurs, CONSULTANT must notify the CITY's designates representativewithin forty-eight hours (48 hours), in writing, of the cause and the extent of the delay and how such delay interferes with the Agreement's schedule. The CITY will extend thecompletion time, when appropriate, for the completion of the contracted Services. 11. CHANGES. CITY may order changes in the Services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the Services will be determined in accordance with written agreement between the parties. 12. ADDITIONAL SERVICES. (A) The CITY may request CONSULTANT to provide Services in addition to Scope of Services, called "Additional Services". Additional Services that incur additional costs (contingency) of up to 15% of the total contract amount must be authorized by CITY by change order or other documented means. Costs beyond this amount must first be approved by CITY in accordance with applicable thresholds and procedures. Additional Services must be authorized by CITY in writing prior to performance. CONSULTANT shall be compensated for Additional Services as set forth in Exhibit(s) " " or as specified in the written authorization. (B) If CONSULTANT believes Additional Services are needed to complete the Scope of Services, CONSULTANT will provide the CITY with written notification that contains a specific description ithe proposed additional Services, reasons for such additional Services, and a detailed proposal regarding cost. CITY is under no obligation to approve any increase in the agreed -upon costs for the performance of this Agreement. 13. PERMITS AND LICENSES. CONSULTANT, at its sole expense, will obtain and maintain during the term of this Agreement, all necessary permits, licenses, and certificates that may be required in connection with the performance of Services under this Agreement. 14. SITE INSPECTION; DISCOVERY OF HAZARDOUS MATERIALS OR LATENT CONDITIONS. The discovery, presence, handling or removal of hazardous substances is outside of CONSULTANT's expertise, unless otherwise specified in Exhibit(s) " " , and is not included in the scope of Services. Should CONSULTANT discover any hazardous material, or latent or unknown conditions that may materially affect the performance of the Services, CONSULTANT will immediately inform CITY of such fact and will not proceed except at CONSULTANT's own risk until written instructions are received from CITY. 15. PREVAILING WAGES. CONSULTANT sh,# eomply with the California Prevailing Wage Law to the extent it applies to work performed under this Agreement. If applicable, CONSULTANT shall pay prevailing wages to its employees and shall comply with the additional provisions set forth below: (A) CONSULTANT shall pay prevailing wages to its employees on any agreement when required by applicable law. Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Agreement, as determined by the Director of the State of California Department of Industrial Relations, are on file at the County's Capital Projects Office and may be obtained from the California Department of Industrial Relations website http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm. CONSULTANT shall comply with the 8-hours per day/40 hours per week/overtime/working hours restrictions for all employees, pursuant to the California Labor Code. CONSULTANT and all subconsultants shall keep and maintain accurate employee payroll records for Work performed under the Agreement. The payroll records shall be certified and submitted as required by law, including Labor Code Sections 1771.4 (if applicable) and 1776, including to the Labor Commissioner no less frequently than monthly. CONSULTANT shall comply fully with Labor Code Section 1777.5 in the hiring of apprentices for work relating to the Agreement. (B) CONSULTANT acknowledges and agrees that it will comply with AB 1768 (effective January 1, 2020), which amended and expanded the definition of "construction" for which prevailing wages must be paid to include "work performed during the design, site assessment, feasibility study, and other pre -construction phases of construction ... regardless of whether any further construction work is conducted... " (C) CONSULTANT shall forfeit, as a penalty to Owner, the penalty or penalties as provided by the California Labor Code, for each laborer, workman, or mechanic employed in performing labor in and about the Work provided for in the Agreement for each day, or portion thereof, that such laborer, workman or mechanic is paid less than the said stipulated rates for any work done under the Agreement by him or her or by any Subconsultant under him or her, in violation of Articles 1 and 2 of Chapter 1 of Part 7 of Division II of the California Labor Code. The sums and amounts which shall be forfeited pursuant to this Paragraph and the terms of the California Labor Code shall be withheld and retained from payments due to CONSULTANT the California Labor Code, but no sum shall be so withheld, retained or forfeited except from the final payment without a full investigation by either the State Department of Industrial Relations or by Owner. The Labor Commissioner pursuant to California Labor Code § 1775 shall determine the final amount of forfeiture. (D) CONSULTANT shall insert in every subcontract or other arrangement which CONSULTANT may make for performance of Work or labor on Work provided for in the Agreement provision that Subconsultant shall pay persons performing labor or rendering service under subcontract or other arrangement not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the Work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed in the California Labor Code. (E) CONSULTANT and Subconsultants must keep accurate payroll records, showing the name, address, social security number, work classification, straighht dime and overtime hours worked each day and week, and the actual per diem wages paid to each joiEneyman, apprentice, worker, or other employee employed by him or her in connection with the W oak of the Agreement Documents. Each payroll record shall contain or be verified by a written declaration as required by Labor Code Section 1776. The payroll records enumerated above mus,'.Lbezertified and shall be available for inspection at all reasonable hours at the principal office` ONSULTANT as required by Labor Code Section 1776. This Project is subject to prevairawage compliance monitoring and enforcement by the Department of Industrial Relations. 16. WAIVER. CITY's review or acceptance of, or payment for, Services or product prepared by CONSULTANT under this Agreement will not be construed to oerate as a waiver of any rights CITY may have under this Agreement or of any cause of action arising from CONSULTANT's performance. A waiver by CITY of any breach of any term, covenant, or condition contained in this Agreement will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this Agreement, whether of the same or different character. 17. TERMINATION. (A) Termination for Convenience. CITY may terminate this Agreement at any time with or without cause by v&jgen notice to CONSULTANT. (i) CONTLTANT will be entitled to recover its costs expended up to the termination plus reasonable profit thereon to the termination date not to exceed the total costs under Section 1(C), but may recover no other loss, cost, damage, or expense. (B) Termination for Cause. CITY may terminate this Agreement in whole or part for default should CONSULTANT commit a material breach of this Agreement, and such breach has not been cured within fifteen (15) calendar days of the date of CITY's written notice to CONSULTANT demanding such cure. In the event CITY terminates this Agreement for default, CONSULTANT will be liable to CITY for all costs to cure the deficiencies, and all loss, cost, expense, damage, and liability resulting from such breach and termination. (C) Upon receiving a termination notice, CONSULTANT will immediately cease performance under this Agreement unless otherwise provided in the termination notice. Except as otherwise provided in the termination notice, any Services performed by CONSULTANT after receiving a termination notice will be performed at CONSULTANT'S own cost; CITY will not be obligated to compensate CONSULTANT for such Services. (D) Upon a termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by CONSULTANT will become CITY's property and CONSULTANT will delivery any such items in its possession to CITY within thirty (30) days of termination. (E) Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms Services similar to those terminated. 18. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by CONSULTANT under this Agreement are CITY's property. CONSULTANT may retain copies of said documents and materials as desired, but will deliver all original materials to CITY upon CITY's written notice. CITY agrees that use of CONSULTANT's Services for purposes other than identified in this Agreement is at CITY's own risk. 19. PUBLICATION OF DOCUMENTS. Except as necessary for performance under this Agreement, CONSULTANT will not release copies, sketches, or graphs of materials, including graphic art services, prepared pursuant to this Agreement to any other person or public entity without CITY's prior written approval. All press releases, including graphic display information to be published in newspapers or magazines, will be approved and distributed solely by CITY, unless otherwise provided by written agreement between the parties. 20. INDEMNIFICATION AND LIABILITY. (A) To the fullest extent permitted by law, CONSULTANT shall defend (with legal counsel reasonably acceptable to CITY), indemnify and hold harmless CITY and its officers, agents, departments, officials, representatives and employees (collectively "Indemnitees") from and against any and all claims, loss, cost, damage, injury (including, without limitation, economic harm, injury to or death of an employee of CONSULTANT or its subconsultants), expense and liability of every kind, nature and description that arise from or relate to (including, without limitation, incidental and consequential damages, court costs, attorneys' fees, litigation expenses and fees of expert consultants or expert witnesses incurred in connection therewith and costs of investigation) that arise from or` to to, directly or indirectly, in whole or in part, from: (1) CONSULTAN o Services under this Agreement, or any part thereof, (including any additional s `es autha`zed by CITY in writing) (2) any negligent act or omission of CONSULTANT, any ubc `ultant, anyone directly or indirectly employed by them, or anyone that they control; (3) any al or alleged infringement of the patent rights, copyright, trade secret, trade name, trademark, service mark or any other intellectual or proprietary right of any person or persons in consequence of the use by CITY, or any other Indemnitee, of articles or Services to be supplied in the performance of this Agreement; or (4) any breach of this Agreement (collectively "Liabilities"). Such obligations to defend, hold harmless and indemnify any Indemnitee shall not apply to the extent such Liabilities are caused by the sole negligence or willful misconduct of such Indemnitee, but shall apply to all other Liabilities. The foregoing shall be subject to the limitations of California Civil Code section 2782.8 as to any design professional services performed by CONSULTANT and in particular the limitation on CONSULTANT's duty to defend whereby such duty only arises for claims relating to the negligence, recklessness or willful misconduct of CONSULTANT as well as the limitation on the cost to defend whereby CONSULTANT will only bear such cost in proportion to CONSULTANT's proportionate percentage of fault (except as otherwise provided in section 2782.8). (B) The foregoing indemnification provisions will not reduce or affect other rights or obligations which would otherwise exist in favor of the CITY and other Indemnitees. (C) CONSULTANT shall place in its subconsulting agreements and cause its subconsultants to agree to indemnities and insurance obligations in favor of CITY and other Indemnitees in the exact form and substance of those contained in this Agreement. 21. ASSIGNABILITY. This Agreement is for CONSULTANT's professional services. CONSULTANT or any subconsultant's attempts to assign the benefits or burdens of this Agreement without CITY's written approval are prohibited and will be null and void. 22. INDEPENDENT CONTRACTOR. CONSULTANT shall at all times be deemed an independent contractor wholly responsible for the manner in which it performs the Services, and fully liable for the acts and omissions of its employees, subconsultants and agents. Under no circumstances shall this Agreement be construed as creating an employment, agency, joint venture or partnership relationship between CITY and CONSULTANT, and no such relationship shall be implied from performance of this Agreement. Terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of Services only, and not as to means and methods by which such a result is obtained. CONSULTANT shall pay all taxes (including California sales and use taxes) levied upon this Agreement, the transaction, or the Services and/or goods delivered pursuant hereto without additional compensation, regardless of which party has liability for such tax under applicable law, and any deficiency, interest or penalty asserted with respect thereto. CONSULTANT shall pay all other taxes including but not limited to any applicable City business tax, not explicitly assumed in writing by CITY hereunder. CONSULTANT shall comply with all valid administrative regulations respecting the assumption of liability for the payment of payroll taxes and contributions as above described and to provide any necessary information with respect thereto to proper authorities. CONSULTANT has no authority to bind the CITY. 23. AUDIT OF RECORDS. CONSULTANT will maintain full and accurate records with respect to all Services and matters covered under this Agreement. Those records include, without limitation, correspondence, internal memoranda, calculations, books and accounts, accounting records documenting its services under its Agreement, and invoices, payrolls, records and all other data related to matters covered by this Agreement. CITY and its designees will have free access at all reasonable times to such records, including the right to audit, examine, and make copies, excerpts, and transcripts from such records, and to inspect all program data, documents, proceedings and activities. If CITY receives funds from another governmental entity for the payment in whole or part of the Services, that governmental entity will have all rights the CITY has under this Section. CONSULTANT will retain all records subject to this Section for at least three (3) years after termination or final payment under this Agreement. 24. INSURANCE. [All insurance terms subject to review and approval of City Risk Manager/ (A) Before commencing performance under this Agreement, and at all other times this Agreement is effective, CONSULTANT will procure and maintain the following types of insurance with coverage limits complying, at a minimum, with the limits set forth below: Type of Insurance Commercial general liability: Professional liability Business automobile liability Workers compensation Limits $1,000,000 $1,000,000 $1,000,000 Statutory requirement (B) Commercial general liability insurance will meet or exceed the requirements of ISO-CGL Form No. CG 00 01 11 85 or 88. The amount of insurance set forth above will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Automobile coverage will be written on ISO Business Auto Coverage Form CA 00 01 06 92, including symbol 1 (Any Auto). Liability policies will be endorsed to name CITY, its officials, and employees as "additional inskireds" under said insurance coverage and to state that such insurance will be deemed "primary" such that any other insurance that may be carried by CITY will be excess thereto. Such endorsement must be reflected on ISO Form No. CG 20 10 11 85 or 88, or equivalent. Such insurance will be on an "occurrence," not a "claims made," basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to CITY. (C) Professional liability coverage will be on an "occurrence basis" if such coverage is available, or on a "claims made" basis if not available. When coverage is provided on a "claims made basis," CONSULTANT will continue to renew the insurance for a period of at least three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect. (D) CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance evidencing maintenance of the insurance required under this Agreement, including endorsements, and such other evidence of insurance or copies of policies as may be reasonably required by CITY from time to time. Insurance must be placed with California -admitted insurers with (other than workers compensation) a current A.M. Best Company Rating of at least "A: VII." (E) Waiver of Subrogation: The insurer(s) agree to waive all rights of subrogation against CITY, its elected or appointed officers, officials, agents, volunteers and employees for losses paid under the terms of the workers compensation policy which arise from work performed by CONSULTANT for CITY. (F) Should CONSULTANT, for any reason, fail to obtain and maintain the insurance required by this Agreement, CITY may obtain such coverage at CONSULTANT's expense and deduct the cost of such insurance from payments due to CONSULTANT under this Agreement or terminate pursuant to contract language. In the alternative, should CONSULTANT fail to meet any of the insurance requirements under the Agreement, City may terminate this Agreement immediately with no penalty. (G) Should CONSULTANT'S insurance required by this Agreement be cancelled at any point prior to expiration of the policy, CONSULTANT must notify City within 24 hours of receipt of notice of cancellation. Furthermore, CONSULTANT must obtain replacement coverage that meets all contractual requirements within 10 days of the prior insurer's issuance of notice of cancellation. CONSULTANT must ensure that there is no lapse in coverage. (H) The CITY shall be entitled to any coverage in excess of the minimums required herein. 25. INCIDENTAL TASKS. A T will meet with CITY monthly to provide the CITY monthly to provide the status on the Services, which will include a s#fiedule update and a short narrative description of progress during the past month for each major task, a description of the Services remaining and a description of the Services to be done before the next schedule update. 26. DISPUTE` RESOLUTION. (A) In the event of any dispute between CONSULTANT and CITY regarding any claim, demand or request by CONSULTANT for time, money, or additional compensation for any reason whatsoever CONSULTANT shall submit to CITY, within 21 days of CONSULTANT's first knowledge of the dispute, a written description of CONSULTANT's claim, demand or request that provides a narrative of the pertinent events, the contractual basis of the CONSULTANT's position, pricing calculations (if applicable) and attaches supporting documentation. CITY will then review the issue and make a decision thereon. If CONSULTANT shall fail to provide timely notice of any such claim, demand or request, then CONSULTANT shall waive is rights to such claim, demand or request, unless CONSULTANT can demonstrate a manifest lack of prejudice to CITY resulting from such late notice. CONSULTANT shall continue its work throughout the course of any dispute, and CONSULTANT's failure to continue work during a dispute shall be a material breach of this Agreement. (B) If the CITY denies CONSULTANT's claim, demand, or request in whole or part and CONSULTANT disagrees, and the claim, demand or request exceeds $50,000 then the parties shall, as a precondition to initiating litigation, submit the dispute claim, demand, or request to the Los Angeles JAMS office for non -binding mediation under the appropriate riles. The parties may agree to any other dispute resolution process. Nothing herein will limit CONSULTANT's obligation to timely submit to CITY a statutory Government Code Claim, in accordance with Government Code sections 910 et seq. 27. NOTICES. All communications to either party by the other parry will be deemed made when received by such party at its respective name and address as follows: If to CONSULTANT: If to CITY: ATTN: City of Santa Clarita ATTN: Kenneth W. Striplin, City Manager 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355 Any such written communications by mail will be conclusively deemed to have been received by the addressee three days after deposit thereof in the United States mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this Section. 28. CONFLICT OF INTEREST. CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, CITY's Conflict of Interest Code (on file in the City Clerk's Office). It is incumbent upon the CONSULTANT or CONSULTING FIRM to notify the CITY pursuant to Section 27 NOTICES of any staff changes relating to this Agreement. (A) In accomplishing the Scope of Services of this Agreement, all officers, employees and/or agents of CONSULTANT(S), unless as indicated in Subsection (B), will be performing a very limited and closely supervised function, and, therefore, unlikely to have a conflict of interest arise. No disclosures are required for any officers, employees, and/or agents of CONSULTANT, except as indicated in Subsection (B). Initials of Consultant (B) In accomplishing the Scope of Services of this Agreement, CONSULTANT will be performing a specialized or general service for the CITY, and there is substantial likelihood that the CONSULTANT's Services product will be presented, either written or orally, for the purpose of influencing a governmental decision. As a result, the following CONSULTANT personnel shall be subject to the Disclosure Category "1" of the CITY's Conflict of Interest Code: 29. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT's bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT's bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability. 30. THIRD PARTY BENEFICIARIES. CONSULTANT's subconsultants shall agree to be bound to the terms of the Agreement to the extent of their scope of services, including but not limited to, terms regarding indemnity and dispute resolution, and shall agree that CITY is deemed an express third party beneficiaries of their subconsultant agreement. Nothing in this Agreement, however, shall operate to confer such or similar rights or benefits on persons or entities not party to this Agreement. 31. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California. The exclusive venue for any action involving this Agreement will be in Los Angeles County. 32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties with respect to the subject matter hereof. There are no other understandings, terms or other agreements expressed or implied, oral or written. There is/are ( ) Exhibits (s) to this Agreement. To the extent of a conflict between this Agreement and one of the Exhibits, the terms of the Agreement shall take precedence. This Agreement will bind and inure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 33. RULES OF CONSTRUCTION. Each party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either party. 34. SEVERABILITY. If any portion of this Agreement is 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. 35. AUTHORITY/MODIFICATION. The parties represent and warrant that all necessary action has been taken by the parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. To the extent of any contingency above the original Agreement amount previously approved by the CITY's City Council, additional Services may be added to this Agreement by an additional authorization executed by both parties. This Agreement may be otherwise modified by written amendment, which generally requires approval of the CITY's City Council. CITY's City Manager, or designee, may execute any such authorization or amendment on behalf of CITY. 36. CAPTIONS. The captions of the sections and paragraphs of this Agreement are for convenience of reference only and will not affect the interpretation of this Agreement. 37. TIME IS OF ESSENCE. Time is of the essence for each and every provision of this Agreement. 38. DELAY. CONSULTANT shall complete all Services required by this Agreement within the times specified in the Agreement, except where (1) an event outside of NSULTANT's reasonable control causes a delay and (2) CONSULTANT promptly advises `ITY of such delay (such prompt notice to occur no more than 15 days after the first occurrence of the delay). Such events shall be limited to: acts of neglect by CITY or CITY's agents or by consultants when acting at CITY's direction; breaches of this Agreement by CITY; Acts of God such as fire and flood; explosion, acts of terrorism, war and embargo; and other similar causes beyond the Parties' reasonable control. In the event of an excusable delay the City may elect whether.. to terminate this Agreement or extend the time for performance. 39. PROTECTION OF RESIDENT WORKERS. The CITY actively supports the Immigration and Nationality Act (INA) which includes provisions addressing employment eligibility, employment verification, and nondiscrimination. Under the INA, employers may hire only persons who may legally work in the United States (i.e., citizens and nationals of the U.S., and aliens authorized to work in the U.S.). The employer must verify the identity and employment eligibility of anyone to be hired, which includes completing the Employment Eligibility Verification Form (Form I-9), reviewing required proofs of both identify and employment authorization, and retaining the Form I-9 for the required period. Updated form I-9 information is available at www.uscis.gov. The CONSULTANT shall establish appropriate procedures and controls so no Services or products under the Agreement will be performed or manufactured by any worker who is not legally eligible to perform such Services or employment. 40. FACSIMILE OR ELECTRONIC TRANSMISSION OF CONTRACT AND SIGNATURE. The parties agree that this Agreement may be transmitted and signed by facsimile or electronic mail by either/any or both/all parties, and that such signatures shall have the same force and effect as original signatures, in accordance with California Government Code section 16.5 and Civil Code section 1633.7. 41. STANDARD SUPPLEMENTAL PROVISIONS. Notwithstanding Section 32 ENTIRE AGREEMENT above, the following Standard Supplemental Provision(s), attached to this Agreement, is(are) incorporated herein by this reference and takes precedence over any conflicting provision of this Agreement: [Insert name of any applicable SSP(s), and attach only that SSP(s)—omit remaining SSP(s). Insert "None" if *applicable.) [SIGNATURES ON NEXT PAGE] IN WITNESS WHEREOF, the parties hereto have executed this contract on the date set forth below. FOR CONSULTANT: Print Name & Title Date: FOR CITY OF SANTA CLARITA: KENNETH W. STRIPLIN, CITY MANA ER City Manager Date: APPROVED AS TO FORM: JOSEPH M. MONTES, CITY ATTORNEY City Attorney Date: IF CORPORATION: Print Name & Title Date: APPENDIX A Attachments Serving the Nation 6700 FaIlbrookAvenue, Suite 4#255 West Hills, CA 91307 I Tel: (800) 733-1365 Fax: (800) 733-1581 wvvw.reservestudy.com Regional Offices Arizona ASSOCIATION California Colorado RESERVES"Florid Hawaa Nevada Planning For The Inevitable- North Carolina Texas Washington MEN— NONE w A a ■ City of Santa Clarita - LMD Zones T23A Santa Clarita, CA Report M 38227-0 For Period Beginning: July 1, 2020 •• Y r t r°Ff K y, •qf Expires: June 30, 2021 E ou�141� Date Prepared: December 10, 2020 .. Hello, and welcome to your Reserve Study! T his Report is a valuable budget planning tool, for with it you control the future of your association. It contains all the fundamental information needed to understand your current and future Reserve obligations, the most significant expenditures your association will face. With respect to Reserves, this Report will tell you "where you are," and "where to go from here." In this Report, you will find... 1) A List of What you're Reserving For 2) An Evaluation of your Reserve Fund Size and Strength 3) A Recommended Multi -Year Reserve Funding Plan More Questions? Visit our website at www.ReserveStudy.com or call us at: 818-222-0248 ASSOCIATION RESERVES 3-Minute Executive Summary 1 Reserve Study Summary 1 Executive Summary (Component List) 3 Introduction, Objectives, and Methodology 5 Which Physical Assets are Funded by Reserves? 6 How do we establish Useful Life and Remaining Useful Life estimates? 6 How do we establish Current Repair/Replacement Cost Estimates? 6 How much Reserves are enough? 7 How much should we contribute? 8 What is our Recommended Funding Goal? 8 Site Inspection Notes 9 Reserve Fund Status & Recommended Funding Plan 10 Table Descriptions 11 Reserve Component List Detail 12 Fully Funded Balance 14 Component Significance 16 30-Year Reserve Plan Summary 18 30-Year Income/Expense Detail 19 Accuracy, Limitations, and Disclosures 25 Terms and Definitions 26 Association: City of Santa Clarita - LIVID Zones Assoc. #: 38227-0 T23A Location: Santa Clarita, CA # of Units: 1 Report Period: July 1, 2020 through June 30, 2021 as -or. JU1Y 7, ZUZU Projected Capital Reserve Balance ................................... $306,651 Current Fully Funded Balance ....................................... $121,180 Percent Funded...................................................253.1% Recommended 2020/2021 Capital Reserve Contribution ................... $20,300 Projected 2020/2021 Capital Reserve Expenses .......................... $11,300 Projected 2021/2022 Capital Reserve Expenses Projected 2022/2023 Capital Reserve Expenses Projected 2023/2024 Capital Reserve Expenses Projected 2024/2025 Capital Reserve Expenses Projected 2025/2026 Capital Reserve Expenses Projected 2026/2027 Capital Reserve Expenses Projected 2027/2028 Capital Reserve Expenses Projected 2028/2029 Capital Reserve Expenses Projected 2029/2030 Capital Reserve Expenses Projected 2030/2031 Capital Reserve Expenses .........................$180,250 .............................. $0 .............................. $0 .............................. $0 ...........................$4,637 .............................. $0 .............................. $0 .............................. $0 .............................. $0 ...........................$3,763 Reserves % Funded: 253.1% 30% 70% 130 ° Special Assessment Risk: High Medium Low Economic Assumptions: Net Annual "After Tax" Interest Earnings Accruing to Reserves ............... 1.80 % Annual Inflation Rate ................................................. 3.00 % This is a "Full On -Site" Capital Reserve Study (original, created "from scratch"), based on our site inspection on 11/12/2019. This Reserve Study was prepared by Sean Kargari, a credentialed Reserve Specialist (RS #115). Your Capital Reserve Fund is currently at 253.1 % Funded, which represents a strong Capital Reserve position since it is well above 100% Funded. Properties that are in this range have a Low risk of Capital Reserve cash -flow problems (such as project delays, special assessments, and/or deferred maintenance) in the near future. Based on your Capital Reserve component inventory and the LIVID Financial Forecast provided to Association Reserves, our recommendation is to contribute $20,300 to your Association Reserves, 38227-0 1 12/10/2020 Capital Reserve Fund in 2020/2021. This recommended Reserve contribution rate should be increased by 3% annually. Please refer to the following charts within this Capital Reserve Study for further illustrations: Reserve Component Detail on pgs 12-13; 30-Year Plan Summary on pg 18; 30-Year Income/Expense Detail on pgs 19-24. Association Reserves, 38227-0 2 12/10/2020 # Component Useful Life (yrs) Rem. Useful Current Average Life (yrs) Cost Backflow Devices 1001 Backflow Device (22811) - Replace 25 10 $1,200 1001 Backflow Device (22814) - Replace 25 0 $1,200 1001 Backflow Device (22902) - Replace 25 0 $2,500 1001 Backflow Device (22913) - Replace 25 0 $1,200 1001 Backflow Device (22932) - Replace 25 0 $1,200 1001 Backflow Device (22937) - Replace 25 0 $1,200 1001 Backflow Device (28115) - Replace 25 5 $4,000 1001 Backflow Device (28431) - Replace 25 0 $4,000 Irrigation Controllers 1003 Irrigation Controller (22135) - Rep 15 14 $7,000 1003 Irrigation Controller (22811) - Rep 15 14 $8,000 1003 Irrigation Controller (22812) - Rep 15 14 $7,000 1003 Irrigation Controller (22812) - Rep 15 14 $8,000 1003 Irrigation Controller (22832) - Rep 15 14 $7,500 1003 Irrigation Controller (22835) - Rep 15 14 $7,500 1003 Irrigation Controller (22902) - Rep 15 14 $7,000 1003 Irrigation Controller (22905) - Rep 15 14 $7,000 1003 Irrigation Controller (22905) - Rep 15 14 $7,000 1003 Irrigation Controller (22911) - Rep 15 14 $7,500 1003 Irrigation Controller (22912) - Rep 15 14 $7,500 1003 Irrigation Controller (22917) - Rep 15 14 $7,500 1003 Irrigation Controller (22919) - Rep 15 14 $8,000 1003 Irrigation Controller (22921) - Rep 15 14 $7,000 1003 Irrigation Controller (22922) - Rep 15 14 $7,500 1003 Irrigation Controller (22931) - Rep 15 14 $7,500 1003 Irrigation Controller (22932) - Rep 15 14 $7,000 1003 Irrigation Controller (22938) - Rep 15 14 $7,000 1003 Irrigation Controller (22939) - Rep 15 14 $7,500 1003 Irrigation Controller (28121) - Rep 15 14 $7,000 1003 Irrigation Controller (28141) - Rep 15 14 $7,000 1003 Irrigation Controller (28145) - Rep 15 14 $7,000 1003 Irrigation Controller (28155) - Rep 15 14 $7,000 1003 Irrigation Controller (28321) - Rep 15 14 $7,500 1003 Irrigation Controller (28331) - Rep 15 14 $7,500 1003 Irrigation Controller (28345) - Rep 15 14 $7,000 1003 Irrigation Controller (28405) - Rep 15 14 $7,500 1003 Irrigation Controller (28415) - Rep 15 14 $7,000 1003 Irrigation Controller (28421) - Rep 15 14 $7,000 1003 Irrigation Controller (28435) - Rep 15 14 $7,000 1003 Irrigation Controller (pool) - Rep 15 14 $7,500 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl 25 10 $1,600 Irrigation Systems 1005 Master Control Valves - Install 0 1 $175,000 Association Reserves, 38227-0 3 12/10/2020 # Component Useful Life (yrs) Rem. Useful Current Average Life (yrs) Cost 1005 Master Control Valves - Partial 20% 20 20 $35,000 1006 Irrig System- Partial Replace (10%) 15 14 $36,500 43 Total Funded Components Note 1: Yellow highlighted line items are expected to require attention in this initial year. Association Reserves, 38227-0 4 12/10/2020 Introduction A Reserve Study is the art and science of anticipating, and preparing for, an association's major common area repair and replacement expenses. Partially art, because in this ..•+ field we are making projections about the future. Partially science, because our work is a combination of research and ►" `r well-defined computations, following consistent National Reserve Study Standard principles. The foundation of this and every Reserve Study is your Reserve Component List (what you are reserving for). This is because the Reserve Component List defines the scope and schedule of all your anticipated upcoming Reserve projects. Based on that List and your starting balance, we calculate the association's Reserve Fund Strength (reported in terms of "Percent Funded"). Then we compute a RESERVE STUDY RESULTS Reserve Funding Plan to provide for the Reserve needs of the association. These form the three results of your Reserve Study. Reserve contributions are not "for the future". Reserve contributions are designed to offset the ongoing, daily deterioration of your Reserve assets. Done well, a stable, budgeted Reserve Funding Plan will collect sufficient funds from the owners who enjoyed the use of those assets, so the association is financially prepared for the irregular expenditures scattered through future years when those projects eventually require replacement. Methodology LU For this Full Reserve Study, we started with a review of your Governing Documents, recent Update With Site Visit (WSV) J, Reserve expenditures, an evaluation of how W Update No Site Visit (NSV) expenditures are handled (ongoing LU W maintenance vs Reserves), and research into any well -established association precedents. We performed an on -site inspection to quantify and evaluate your common areas, creating your Reserve Component List from scratch. Association Reserves, 38227-0 5 12/10/2020 Which Physical Assets are Funded by Reserves? There is a national -standard four-part test to determine„ which expenses should appear in your Reserve Component List. First, it must be a common area x IFE maintenance responsibility. Second, the component must have a limited life. Third, the remaining life must be predictable (or it by definition is a surprise which cannot be accurate) anticipated). Fourth, the component must........ '�;W Yp be above a minimum threshold cost (often between .5% RESERVE COMPONENT 'FOUR-PART TEST' and 1 % of an association's total budget). This limits Reserve Components to major, predictable expenses. Within this framework, it is inappropriate to include lifetime components, unpredictable expenses (such as damage due to fire, flood, or earthquake), and expenses more appropriately handled from the Operational Budget or as an insured loss. How do we establish Useful Life and Remaining Useful Life estimates? 1) Visual Inspection (observed wear and age) 2) Association Reserves database of experience 3) Client History (install dates & previous life cycle information) 4) Vendor Evaluation and Recommendation How do we establish Current Repair/Replacement Cost Estimates? In this order... 1) Actual client cost history, or current proposals 2) Comparison to Association Reserves database of work done at similar associations 3) Vendor Recommendations 4) Reliable National Industry cost estimating guidebooks Association Reserves, 38227-0 6 12/10/2020 How much Reserves are enough? Reserve adequacy is not measured in cash terms. Reserve adequacy is found when the amount of current Reserve cash is compared to Reserve component deterioration (the needs of the association). Having enough means the association can execute its projects in a timely manner with existing Reserve funds. Not having enough typically creates deferred maintenance or special assessments. Adequacy is measured in a two-step process: 1) Calculate the value of deterioration at the association (called Fully Funded Balance, or FFB). 2) Compare that to the Reserve Fund Balance, and express as a percentage. Each year, the value of deterioration at the 9-10/o Funned association changes. When there is more SPECIAL ASSESSMENT RISK deterioration (as components approach the time they need to be replaced), there should be more cash to offset that deterioration and prepare for the expenditure. Conversely, the value of deterioration shrinks after projects are accomplished. The value of deterioration (the FFB) changes each year, and is a moving but predictable target. There is a high risk of special assessments and deferred maintenance when the Percent Funded is weak, below 30%. Approximately 30% of all associations are in this high risk range. While the 100% point is Ideal (indicating Reserve cash is equal to the value of deterioration), a Reserve Fund in the 70% - 130% range is considered strong (low risk of special assessment). Measuring your Reserves by Percent Funded tells how well prepared your association is for upcoming Reserve expenses. New buyers should be very aware of this important disclosure! Association Reserves, 38227-0 7 12/10/2020 How much should we contribute? According to National Reserve Study Standards, there Sufficient Cash are four Funding Principles to balance in developing your Reserve Funding Plan. Our first objective is to iK design a plan that provides you with sufficient cash to isc�dly Responsible perform your Reserve projects on time. Second, a stable contribution is desirable because it keeps these RESERVE FUNDING PRINCIPLES naturally irregular expenses from unsettling the budget. Reserve contributions that are evenly distributed over current and future owners enable each owner to pay their fair share of the association's Reserve expenses over the years. And finally, we develop a plan that is fiscally responsible and safe for Boardmembers to recommend to their association. Remember, it is the Board's to provide for the ongoing care of the common areas. Boardmembers invite liability exposure when Reserve contributions are inadequate to offset ongoing common area deterioration. What is our Recommended Funding Goal? Maintaining the Reserve Fund at a level equal to the value of deterioration is called "Full Funding" (100% Funded). As each asset ages and becomes "used up," hold Funding the Reserve Fund grows proportionally. This is simple, responsible, and our recommendation. Baseline Funding Evidence shows that associations in the 70 - 130% range enjoy a low risk of special assessments or FUNDING OBJECTIVES deferred maintenance. Allowing the Reserves to fall close to zero, but not below zero, is called Baseline Funding. Doing so allows the Reserve Fund to drop into the 0 - 30% range, where there is a high risk of special assessments & deferred maintenance. Since Baseline Funding still provides for the timely execution of all Reserve projects, and only the "margin of safety" is different, Baseline Funding contributions average only 10% - 15% less than Full Funding contributions. Threshold Funding is the title of all other Cash or Percent Funded objectives between Baseline Funding and Full Funding. Association Reserves, 38227-0 8 12/10/2020 Site Inspection Notes During our site visit on 11/12/2019, we started with a meeting with Anselmo Ventura from American Heritage Landscape. We had access to inspect all irrigation controllers and backflow devices with the exception of the pool area irrigation controller due to a common area project that was in progress at the HOA. Please refer to the Photographic Inventory Appendix for additional information on each of your Reserve components. Association Reserves, 38227-0 9 12/10/2020 Reserve Fund Status The starting point for our financial analysis is your Reserve Fund balance, projected to be $306,651 as -of the start of your Fiscal Year on 7/1 /2020. As of your Fiscal Year Start, your Fully Funded Balance is computed to be $121,180. This figure represents the deteriorated value of your common area components. Comparing your Reserve Balance to your Fully Funded Balance indicates your Reserves are 253.1 % Funded. Association Reserves, 38227-0 10 12/10/2020 Table Descriptions Executive Summary is a summary of your Reserve Components Reserve Component List Detail discloses key Component information, providing the foundation upon which the financial analysis is performed. Fully Funded Balance shows the calculation of the Fully Funded Balance for each of your components, and their contributions to the property total. For each component, the Fully Funded Balance is the fraction of life used up multiplied by its estimated Current Replacement Cost. Component Significance shows the relative significance of each component to Reserve funding needs of the property, helping you see which components have more (or less) influence than others on your total Reserve contribution rate. The deterioration cost/yr of each component is calculated by dividing the estimated Current Replacement Cost by its Useful Life, then that component's percentage of the total is displayed. 30-Yr Reserve Plan Summary provides a one -page 30-year summary of the cash flowing into and out of the Reserve Fund, with a display of the Fully Funded Balance, Percent Funded, and special assessment risk at the beginning of each year. 30-Year Income/Expense Detail shows the detailed income and expenses for each of the next 30 years. This table makes it possible to see which components are projected to require repair or replacement in a particular year, and the size of those individual expenses. Association Reserves, 38227-0 11 12/10/2020 # Component Backflow Devices Quantity Useful Life Rem. Useful Life Current Cost Estimate Best Worst Case Case 1001 Backflow Device (22811) - Replace (1) Watts 2" 25 10 $1,000 $1,400 1001 Backflow Device (22814) - Replace (1) Febco 2" 25 0 $1,000 $1,400 1001 Backflow Device (22902) - Replace (1) Watts 2.5' 25 0 $2,000 $3,000 1001 Backflow Device (22913) - Replace (1) Febco 2" 25 0 $1,000 $1,400 1001 Backflow Device (22932) - Replace (1) Febco 2" 25 0 $1,000 $1,400 1001 Backflow Device (22937) - Replace (1) Febco 2" 25 0 $1,000 $1,400 1001 Backflow Device (28115) - Replace (1) Watts 3" 25 5 $3,500 $4,500 1001 Backflow Device (28431) - Replace (1) Febco 3" 25 0 $3,500 $4,500 Irrigation Controllers 1003 Irrigation Controller (22135) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22811) - Rep (1) WT ET Pro3, 24 St 15 14 $7,000 $9,000 1003 Irrigation Controller (22812) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22812) - Rep (1) WT ET Pro3, 24 St 15 14 $7,000 $9,000 1003 Irrigation Controller (22832) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (22835) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (22902) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22905) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22905) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22911) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (22912) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (22917) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (22919) - Rep (1) WT ET Pro3, 24 St 15 14 $7,000 $9,000 1003 Irrigation Controller (22921) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22922) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (22931) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (22932) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22938) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (22939) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (28121) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (28141) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (28145) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (28155) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (28321) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (28331) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (28345) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (28405) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 1003 Irrigation Controller (28415) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (28421) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (28435) - Rep (1) WT ET Pro3, 12 St 15 14 $6,000 $8,000 1003 Irrigation Controller (pool) - Rep (1) WT ET Pro3, 18 St 15 14 $6,500 $8,500 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl (1) Metal Cage 25 10 $1,400 $1,800 Association Reserves, 38227-0 12 12/10/2020 # Component Quantity Current Cost Estimate Useful Life Rem. Best Worst Useful Life Case Case Irrigation Systems 1005 Master Control Valves - Install (31) Valves 0 1 $165,000 $185,000 1005 Master Control Valves - Partial 20% (31) Sensors 20 20 $33,000 $37,000 1006 Irrig System- Partial Replace (10%) Approx 8.34 Acres 15 14 $29,000 $44,000 43 Total Funded Components Association Reserves, 38227-0 13 12/10/2020 # Component Current Cost X Effective Useful _ Fully Funded Estimate Age Life Balance Backflow Devices 1001 Backflow Device (22811) - Replace $1,200 X 15 / 25 = $720 1001 Backflow Device (22814) - Replace $1,200 X 25 / 25 = $1,200 1001 Backflow Device (22902) - Replace $2,500 X 25 / 25 = $2,500 1001 Backflow Device (22913) - Replace $1,200 X 25 / 25 = $1,200 1001 Backflow Device (22932) - Replace $1,200 X 25 / 25 = $1,200 1001 Backflow Device (22937) - Replace $1,200 X 25 / 25 = $1,200 1001 Backflow Device (28115) - Replace $4,000 X 20 / 25 = $3,200 1001 Backflow Device (28431) - Replace $4,000 X 25 / 25 = $4,000 Irrigation Controllers 1003 Irrigation Controller (22135) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22811) - Rep $8,000 X 1 / 15 = $533 1003 Irrigation Controller (22812) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22812) - Rep $8,000 X 1 / 15 = $533 1003 Irrigation Controller (22832) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (22835) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (22902) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22905) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22905) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22911) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (22912) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (22917) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (22919) - Rep $8,000 X 1 / 15 = $533 1003 Irrigation Controller (22921) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22922) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (22931) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (22932) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22938) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (22939) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (28121) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (28141) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (28145) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (28155) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (28321) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (28331) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (28345) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (28405) - Rep $7,500 X 1 / 15 = $500 1003 Irrigation Controller (28415) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (28421) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (28435) - Rep $7,000 X 1 / 15 = $467 1003 Irrigation Controller (pool) - Rep $7,500 X 1 / 15 = $500 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl $1,600 X 15 / 25 = $960 Irrigation Systems Association Reserves, 38227-0 14 12/10/2020 # Component Current Cost X Effective Useful _ Fully Funded Estimate Age Life Balance 1005 Master Control Valves - Install $175,000 X 0 / 0 = $87,500 1005 Master Control Valves - Partial 20% $35,000 X 0 / 20 = $0 1006 Irrig System- Partial Replace (10%) $36,500 X 1 / 15 = $2,433 $121,180 Association Reserves, 38227-0 15 12/10/2020 # Component Useful Life (yrs) Current Cost Deterioration Deterioration Estimate Cost/Yr Significance Backflow Devices 1001 Backflow Device (22811) - Replace 25 $1,200 $48 0.24 % 1001 Backflow Device (22814) - Replace 25 $1,200 $48 0.24 % 1001 Backflow Device (22902) - Replace 25 $2,500 $100 0.50 % 1001 Backflow Device (22913) - Replace 25 $1,200 $48 0.24 % 1001 Backflow Device (22932) - Replace 25 $1,200 $48 0.24 % 1001 Backflow Device (22937) - Replace 25 $1,200 $48 0.24 % 1001 Backflow Device (28115) - Replace 25 $4,000 $160 0.80 % 1001 Backflow Device (28431) - Replace 25 $4,000 $160 0.80 % Irrigation Controllers 1003 Irrigation Controller (22135) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22811) - Rep 15 $8,000 $533 2.67 % 1003 Irrigation Controller (22812) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22812) - Rep 15 $8,000 $533 2.67 % 1003 Irrigation Controller (22832) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (22835) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (22902) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22905) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22905) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22911) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (22912) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (22917) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (22919) - Rep 15 $8,000 $533 2.67 % 1003 Irrigation Controller (22921) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22922) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (22931) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (22932) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22938) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (22939) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (28121) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (28141) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (28145) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (28155) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (28321) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (28331) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (28345) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (28405) - Rep 15 $7,500 $500 2.50 % 1003 Irrigation Controller (28415) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (28421) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (28435) - Rep 15 $7,000 $467 2.34 % 1003 Irrigation Controller (pool) - Rep 15 $7,500 $500 2.50 % Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl 25 $1,600 $64 0.32 % Irrigation Systems 1005 Master Control Valves - Install 0 $175,000 $0 0.00 % Association Reserves, 38227-0 16 12/10/2020 # Component Useful Life (yrs) Current Cost Deterioration Deterioration Estimate CostNr Significance 1005 Master Control Valves - Partial 20% 20 $35,000 $1,750 8.76 % 1006 Irrig System- Partial Replace (10%) 15 $36,500 $2,433 12.18 % 43 Total Funded Components $19,974 100.00 % Association Reserves, 38227-0 17 12/10/2020 Fiscal Year Start: 2020 Interest: 1.80 % 1 Inflation: 3.00 % Reserve Fund Strength Calculations: (All values of Fiscal Year Start Projected Reserve Balance Changes Date) Starting Fully Special Loan or Reserve Funded Percent Assmt Reserve Special Interest Reserve Year Balance Balance Funded Risk Contribs. Assmts Income Expenses 2020 $306,651 $121,180 253.1 % Low $20,000 $0 $5,644 $11,300 2021 $320,995 $223,875 143.4 % Low $20,600 $0 $4,377 $180,250 2022 $165,722 $66,124 250.6 % Low $21,218 $0 $3,200 $0 2023 $190,141 $89,934 211.4% Low $21,855 $0 $3,649 $0 2024 $215,645 $115,113 187.3 % Low $22,510 $0 $4,118 $0 2025 $242,273 $141,721 171.0 % Low $23,185 $0 $4,565 $4,637 2026 $265,387 $165,047 160.8 % Low $23,881 $0 $5,033 $0 2027 $294,301 $194,564 151.3 % Low $24,597 $0 $5,565 $0 2028 $324,463 $225,703 143.8 % Low $25,335 $0 $6,119 $0 2029 $355,917 $258,536 137.7 % Low $26,095 $0 $6,696 $0 2030 $388,709 $293,135 132.6 % Low $26,878 $0 $7,265 $3,763 2031 $419,089 $325,702 128.7 % Low $27,685 $0 $7,857 $0 2032 $454,631 $363,951 124.9 % Low $28,515 $0 $8,510 $0 2033 $491,656 $404,202 121.6 % Low $29,371 $0 $9,190 $0 2034 $530,216 $446,541 118.7 % Low $30,252 $0 $6,294 $397,055 2035 $169,708 $82,089 206.7 % Low $31,159 $0 $3,363 $0 2036 $204,230 $116,604 175.1 % Low $32,094 $0 $3,998 $0 2037 $240,322 $153,117 157.0 % Low $33,057 $0 $4,662 $0 2038 $278,041 $191,714 145.0 % Low $34,049 $0 $5,355 $0 2039 $317,444 $232,490 136.5 % Low $35,070 $0 $6,080 $0 2040 $358,594 $275,540 130.1 % Low $36,122 $0 $6,262 $63,214 2041 $337,765 $255,854 132.0 % Low $37,206 $0 $6,468 $0 2042 $381,439 $301,802 126.4 % Low $38,322 $0 $7,271 $0 2043 $427,031 $350,276 121.9 % Low $39,472 $0 $8,108 $0 2044 $474,611 $401,387 118.2 % Low $40,656 $0 $8,983 $0 2045 $524,250 $455,250 115.2 % Low $41,876 $0 $9,680 $23,660 2046 $552,146 $487,614 113.2 % Low $43,132 $0 $10,412 $0 2047 $605,690 $546,610 110.8 % Low $44,426 $0 $11,396 $0 2048 $661,512 $608,708 108.7 % Low $45,759 $0 $12,421 $0 2049 $719,692 $674,039 106.8 % Low $47,131 $0 $7,876 $618,598 Association Reserves, 38227-0 18 12/10/2020 Fiscal Year 2020 2021 2022 2023 2024 Starting Reserve Balance $306,651 $320,995 $165,722 $190,141 $215,645 Annual Reserve Contribution $20,000 $20,600 $21,218 $21,855 $22,510 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $5,644 $4,377 $3,200 $3,649 $4,118 Total Income $332,295 $345,972 $190,141 $215,645 $242,273 Backflow Devices 1001 Backflow Device (22811) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22814) - Replace $1,200 $0 $0 $0 $0 1001 Backflow Device (22902) - Replace $2,500 $0 $0 $0 $0 1001 Backflow Device (22913) - Replace $1,200 $0 $0 $0 $0 1001 Backflow Device (22932) - Replace $1,200 $0 $0 $0 $0 1001 Backflow Device (22937) - Replace $1,200 $0 $0 $0 $0 1001 Backflow Device (28115) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28431) - Replace $4,000 $0 $0 $0 $0 Irriaation Controllers 1003 Irrigation Controller (22135) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22811) - Rep $0 $0 $0 $0 ■ $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22832) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22835) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22902) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22911) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22912) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22917) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22919) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22921) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22922) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22931) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22932) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22938) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22939) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28121) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28141) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28145) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28155) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28321) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28331) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28345) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28405) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28415) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28421) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28435) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (pool) - Rep $0 $0 $0 $0 $0 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl $0 $0 $0 $0 $0 Irrigation Systems 1005 Master Control Valves - Install $0 $180,250 $0 $0 $0 1005 Master Control Valves - Partial 20% $0 $0 $0 $0 $0 1006 Irrig System- Partial Replace (10%) $0 $0 $0 $0 $0 Total Expenses $11,300 $180,250 $0 $0 $0 Ending Reserve Balance $320,995 $165,722 $190,141 $215,645 $242,273 Association Reserves, 38227-0 19 12/10/2020 Fiscal Year 2025 2026 2027 2028 2029 Starting Reserve Balance $242,273 $265,387 $294,301 $324,463 $355,917 Annual Reserve Contribution $23,185 $23,881 $24,597 $25,335 $26,095 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $4,565 $5,033 $5,565 $6,119 $6,696 Total Income $270,024 $294,301 $324,463 $355,917 $388,709 # Component Backflow Devices 1001 Backflow Device (22811) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22814) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22902) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22913) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22932) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22937) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28115) - Replace $4,637 $0 $0 $0 $0 1001 Backflow Device (28431) - Replace $0 $0 $0 $0 $0 1003 Irrigation Controller (22135) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22811) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22832) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22835) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22902) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22911) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22912) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22917) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22919) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22921) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22922) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22931) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22932) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22938) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22939) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28121) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28141) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28145) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28155) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28321) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28331) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28345) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28405) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28415) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28421) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28435) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (pool) - Rep $0 $0 $0 $0 $0 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl $0 $0 $0 $0 $0 Irrigation Systems 1005 Master Control Valves - Install $0 $0 $0 $0 $0 1005 Master Control Valves - Partial 20% $0 $0 $0 $0 $0 1006 Irrig System- Partial Replace (10%) $0 $0 $0 $0 $0 Total Expenses $4,637 $0 $0 $0 $0 Ending Reserve Balance $265,387 $294,301 $324,463 $355,917 $388,709 Association Reserves, 38227-0 20 12/10/2020 Fiscal Year 2030 2031 2032 2033 2034 Starting Reserve Balance $388,709 $419,089 $454,631 $491,656 $530,216 Annual Reserve Contribution $26,878 $27,685 $28,515 $29,371 $30,252 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $7,265 $7,857 $8,510 $9,190 $6,294 Total Income $422,852 $454,631 $491,656 $530,216 $566,763 # Component Backflow Devices 1001 Backflow Device (22811) - Replace $1,613 $0 $0 $0 $0 1001 Backflow Device (22814) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22902) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22913) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22932) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22937) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28115) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28431) - Replace $0 $00 $0 $0 $0 Irrigation Controllers 1003 Irrigation Controller (22135) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22811) - Rep $0 $0 $0 $0 $12,101 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $12,101 1003 Irrigation Controller (22832) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (22835) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (22902) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22911) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (22912) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (22917) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (22919) - Rep $0 $0 $0 $0 $12,101 1003 Irrigation Controller (22921) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22922) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (22931) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (22932) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22938) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (22939) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (28121) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (28141) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (28145) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (28155) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (28321) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (28331) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (28345) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (28405) - Rep $0 $0 $0 $0 $11,344 1003 Irrigation Controller (28415) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (28421) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (28435) - Rep $0 $0 $0 $0 $10,588 1003 Irrigation Controller (pool) - Rep $0 $0 $0 $0 $11,344 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl $2,150 $0 $0 $0 $0 Irrigation Systems 1005 Master Control Valves - Install $0 $0 $0 $0 $0 1005 Master Control Valves - Partial 20% $0 $0 $0 $0 $0 1006 Irrig System- Partial Replace (10%) $0 $0 $0 $0 $55,210 Total Expenses $3,763 $0 $0 $0 $397,055 Ending Reserve Balance $419,089 $454,631 $491,656 $530,216 $169,708 Association Reserves, 38227-0 21 12/10/2020 Fiscal Year 2035 2036 2037 2038 2039 Starting Reserve Balance $169,708 $204,230 $240,322 $278,041 $317,444 Annual Reserve Contribution $31,159 $32,094 $33,057 $34,049 $35,070 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $3,363 $3,998 $4,662 $5,355 $6,080 Total Income $204,230 $240,322 $278,041 $317,444 $358,594 # Component Backflow Devices 1001 Backflow Device (22811) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22814) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22902) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22913) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22932) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22937) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28115) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28431) - Replace $0 $00 $0 $0 $0 1003 Irrigation Controller (22135) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22811) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22832) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22835) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22902) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22911) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22912) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22917) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22919) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22921) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22922) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22931) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22932) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22938) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22939) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28121) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28141) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28145) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28155) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28321) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28331) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28345) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28405) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28415) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28421) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28435) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (pool) - Rep $0 $0 $0 $0 $0 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl $0 $0 $0 $0 $0 Irrigation Systems 1005 Master Control Valves - Install $0 $0 $0 $0 $0 1005 Master Control Valves - Partial 20% $0 $0 $0 $0 $0 1006 Irrig System- Partial Replace (10%) $0 $0 $0 $0 $0 Total Expenses $0 $0 $0 $0 $0 Ending Reserve Balance $204,230 $240,322 $278,041 $317,444 $358,594 Association Reserves, 38227-0 22 12/10/2020 Fiscal Year 2040 2041 2042 2043 2044 Starting Reserve Balance $358,594 $337,765 $381,439 $427,031 $474,611 Annual Reserve Contribution $36,122 $37,206 $38,322 $39,472 $40,656 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $6,262 $6,468 $7,271 $8,108 $8,983 Total Income $400,979 $381,439 $427,031 $474,611 $524,250 # Component Backflow Devices 1001 Backflow Device (22811) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22814) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22902) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22913) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22932) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22937) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28115) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28431) - Replace $0 $0 $0 $0 $0 1003 Irrigation Controller (22135) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22811) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22832) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22835) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22902) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22911) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22912) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22917) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22919) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22921) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22922) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22931) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22932) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22938) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (22939) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28121) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28141) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28145) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28155) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28321) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28331) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28345) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28405) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28415) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28421) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (28435) - Rep $0 $0 $0 $0 $0 1003 Irrigation Controller (pool) - Rep $0 $0 $0 $0 $0 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl $0 $0 $0 $0 $0 Irrigation Systems 1005 Master Control Valves - Install $0 $0 $0 $0 $0 1005 Master Control Valves - Partial 20% $63,214 $0 $0 $0 $0 1006 Irrig System- Partial Replace (10%) $0 $0 $0 $0 $0 Total Expenses $63,214 $0 $0 $0 $0 Ending Reserve Balance $337,765 $381,439 $427,031 $474,611 $524,250 Association Reserves, 38227-0 23 12/10/2020 Fiscal Year 2045 2046 2047 2048 2049 Starting Reserve Balance $524,250 $552,146 $605,690 $661,512 $719,692 Annual Reserve Contribution $41,876 $43,132 $44,426 $45,759 $47,131 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $9,680 $10,412 $11,396 $12,421 $7,876 Total Income $575,806 $605,690 $661,512 $719,692 $774,699 # Component Backflow Devices 1001 Backflow Device (22811) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (22814) - Replace $2,513 $0 $0 $0 $0 1001 Backflow Device (22902) - Replace $5,234 $0 $0 $0 $0 1001 Backflow Device (22913) - Replace $2,513 $0 $0 $0 $0 1001 Backflow Device (22932) - Replace $2,513 $0 $0 $0 $0 1001 Backflow Device (22937) - Replace $2,513 $0 $0 $0 $0 1001 Backflow Device (28115) - Replace $0 $0 $0 $0 $0 1001 Backflow Device (28431) - Replace $8,375 $0 $0 $0 $0 Irrigation Controllers 1003 Irrigation Controller (22135) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22811) - Rep $0 $0 $0 $0 $18,853 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22812) - Rep $0 $0 $0 $0 $18,853 1003 Irrigation Controller (22832) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (22835) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (22902) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22905) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22911) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (22912) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (22917) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (22919) - Rep $0 $0 $0 $0 $18,853 1003 Irrigation Controller (22921) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22922) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (22931) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (22932) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22938) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (22939) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (28121) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (28141) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (28145) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (28155) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (28321) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (28331) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (28345) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (28405) - Rep $0 $0 $0 $0 $17,674 1003 Irrigation Controller (28415) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (28421) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (28435) - Rep $0 $0 $0 $0 $16,496 1003 Irrigation Controller (pool) - Rep $0 $0 $0 $0 $17,674 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl $0 $0 $0 $0 $0 Irrigation Systems 1005 Master Control Valves - Install $0 $0 $0 $0 $0 1005 Master Control Valves - Partial 20% $0 $0 $0 $0 $0 1006 Irrig System- Partial Replace (10%) $0 $0 $0 $0 $86,015 Total Expenses $23,660 $0 $0 $0 $618,598 Ending Reserve Balance $552,146 $605,690 $661,512 $719,692 $156,101 Association Reserves, 38227-0 24 12/10/2020 Association Reserves and its employees have no ownership, management, or other business relationships with the client other than this Reserve Study engagement. Robert M. Nordlund, P.E., R.S., company Founder/CEO, is a California licensed Professional Engineer (Mechanical, #22322), and credentialed Reserve Specialist (#5). All work done by Association Reserves is performed under his Responsible Charge and is performed in accordance with National Reserve Study Standards (NRSS). There are no material issues to our knowledge that have not been disclosed to the client that would cause a distortion of the client's situation. Per NRSS, information provided by official representative(s) of the client, vendors, and suppliers regarding financial details, component physical details and/or quantities, or historical issues/conditions will be deemed reliable, and is not intended to be used for the purpose of any type of audit, quality/forensic analysis, or background checks of historical records. As such, information provided to us has not been audited or independently verified. Estimates for interest and inflation have been included, because including such estimates are more accurate than ignoring them completely. When we are hired to prepare Update reports, the client is considered to have deemed those previously developed component quantities as accurate and reliable, whether established by our firm or other individuals/firms (unless specifically mentioned in our Site Inspection Notes). During inspections our company standard is to establish measurements within 5% accuracy, and our scope includes visual inspection of accessible areas and components and does not include any destructive or other testing. Our work is done only for budget purposes. Uses or expectations outside our expertise and scope of work include, but are not limited to, project audit, quality inspection, and the identification of construction defects, hazardous materials, or dangerous conditions. Identifying hidden issues such as but not limited to plumbing or electrical problems are also outside our scope of work. Our estimates assume proper original installation & construction, adherence to recommended preventive maintenance, a stable economic environment, and do not consider frequency or severity of natural disasters. Our opinions of component Useful Life, Remaining Useful Life, and current or future cost estimates are not a warranty or guarantee of actual costs or timing. Because the physical and financial status of the property, legislation, the economy, weather, owner expectations, and usage are all in a continual state of change over which we have no control, we do not expect that the events projected in this document will all occur exactly as planned. This Reserve Study is by nature a "one-year" document in need of being updated annually so that more accurate estimates can be incorporated. It is only because a long-term perspective improves the accuracy of near -term planning that this Report projects expenses into the future. We fully expect a number of adjustments will be necessary through the interim years to the cost and timing of expense projections and the funding necessary to prepare for those estimated expenses. In this engagement our compensation is not contingent upon our conclusions, and our liability in any matter involving this Reserve Study is limited to our fee for services rendered. Association Reserves, 38227-0 25 12/10/2020 BTU British Thermal Unit (a standard unit of energy) DIA Diameter GSF Gross Square Feet (area). Equivalent to Square Feet GSY Gross Square Yards (area). Equivalent to Square Yards HP Horsepower LF Linear Feet (length) Effective Age The difference between Useful Life and Remaining Useful Life. Note that this is not necessarily equivalent to the chronological age of the component. Fully Funded Balance (FFB) The value of the deterioration of the Reserve Components. This is the fraction of life "used up" of each component multiplied by its estimated Current Replacement. While calculated for each component, it is summed together for an association total. Inflation Cost factors are adjusted for inflation at the rate defined in the Executive Summary and compounded annually. These increasing costs can be seen as you follow the recurring cycles of a component on the "30-yr Income/Expense Detail" table. Interest Interest earnings on Reserve Funds are calculated using the average balance for the year (taking into account income and expenses through the year) and compounded monthly using the rate defined in the Executive Summary. Annual interest earning assumption appears in the Executive Summary. Percent Funded The ratio, at a particular point in time (the first day of the Fiscal Year), of the actual (or projected) Reserve Balance to the Fully Funded Balance, expressed as a percentage. Remaining Useful Life (RUL) The estimated time, in years, that a common area component can be expected to continue to serve its intended function. Useful Life (UL) The estimated time, in years, that a common area component can be expected to serve its intended function. Association Reserves, 38227-0 26 12/10/2020 Association: City of Santa Clarita - LIVID Zones Assoc. #: 38227-0 T23A Location: Santa Clarita, CA # of Units: 1 Report Period: July 1, 2020 through June 30, 2021 Findings/Recommendations as -of. July 1, 2020 Projected Capital Reserve Balance ..................................... $306,651 Current Fully Funded Balance ......................................... $121,180 Percent Funded.....................................................253.1 % Recommended 2020/2021 Capital Reserve Contribution ..................... $20,300 Projected 2020/2021 Capital Reserve Expenses ............................ $11,300 Projected 2021/2022 Capital Reserve Expenses ........................... $180,250 Projected 2022/2023 Capital Reserve Expenses ................................ $0 Projected 2023/2024 Capital Reserve Expenses ................................ $0 Projected 2024/2025 Capital Reserve Expenses ................................ $0 Projected 2025/2026 Capital Reserve Expenses ............................. $4,637 Projected 2026/2027 Capital Reserve Expenses ................................ $0 Projected 2027/2028 Capital Reserve Expenses ................................ $0 Projected 2028/2029 Capital Reserve Expenses ................................ $0 Projected 2029/2030 Capital Reserve Expenses ................................ $0 Projected 2030/2031 Capital Reserve Expenses ............................. $3,763 Reserves %Funded: 253.1 30% 70% 130 ° Special Assessment Risk: High Medium Low Economic Assumptions: Net Annual "After Tax" Interest Earnings Accruing to Reserves .................1.80 % Annual Inflation Rate...................................................3.00 % This is a "Full On -Site" Capital Reserve Study (original, created "from scratch"), based on our site inspection on 11/12/2019. This Reserve Study was prepared by Sean Kargari, a credentialed Reserve Specialist (RS #115). Your Capital Reserve Fund is currently at 253.1 % Funded, which represents a strong Capital Reserve position since it is well above 100% Funded. Properties that are in this range have a Low risk of Capital Reserve cash -flow problems (such as project delays, special assessments, and/or deferred maintenance) in the near future. Based on your Capital Reserve component inventory and the LIVID Financial Forecast provided to Association Reserves, our recommendation is to contribute $20,300 to your Capital Reserve Fund in 2020/2021. This recommended Reserve contribution rate should Association Reserves, 38227-0 1 12/10/2020 be increased by 3% annually. Please refer to the following charts within this Capital Reserve Study for further illustrations: Reserve Component Detail on pgs 12-13; 30-Year Plan Summary on pg 18; 30-Year Income/Expense Detail on pgs 19-24. Association Reserves, 38227-0 2 12/10/2020 # Component Useful Life (yrs) Rem. Useful Current Average Life (yrs) Cost Backflow Devices 1001 Backflow Device (22811) - Replace 25 10 $1,200 1001 Backflow Device (22814) - Replace 25 0 $1,200 1001 Backflow Device (22902) - Replace 25 0 $2,500 1001 Backflow Device (22913) - Replace 25 0 $1,200 1001 Backflow Device (22932) - Replace 25 0 $1,200 1001 Backflow Device (22937) - Replace 25 0 $1,200 1001 Backflow Device (28115) - Replace 25 5 $4,000 1001 Backflow Device (28431) - Replace 25 0 $4,000 Irrigation Controllers 1003 Irrigation Controller (22135) - Rep 15 14 $7,000 1003 Irrigation Controller (22811) - Rep 15 14 $8,000 1003 Irrigation Controller (22812) - Rep 15 14 $7,000 1003 Irrigation Controller (22812) - Rep 15 14 $8,000 1003 Irrigation Controller (22832) - Rep 15 14 $7,500 1003 Irrigation Controller (22835) - Rep 15 14 $7,500 1003 Irrigation Controller (22902) - Rep 15 14 $7,000 1003 Irrigation Controller (22905) - Rep 15 14 $7,000 1003 Irrigation Controller (22905) - Rep 15 14 $7,000 1003 Irrigation Controller (22911) - Rep 15 14 $7,500 1003 Irrigation Controller (22912) - Rep 15 14 $7,500 1003 Irrigation Controller (22917) - Rep 15 14 $7,500 1003 Irrigation Controller (22919) - Rep 15 14 $8,000 1003 Irrigation Controller (22921) - Rep 15 14 $7,000 1003 Irrigation Controller (22922) - Rep 15 14 $7,500 1003 Irrigation Controller (22931) - Rep 15 14 $7,500 1003 Irrigation Controller (22932) - Rep 15 14 $7,000 1003 Irrigation Controller (22938) - Rep 15 14 $7,000 1003 Irrigation Controller (22939) - Rep 15 14 $7,500 1003 Irrigation Controller (28121) - Rep 15 14 $7,000 1003 Irrigation Controller (28141) - Rep 15 14 $7,000 1003 Irrigation Controller (28145) - Rep 15 14 $7,000 1003 Irrigation Controller (28155) - Rep 15 14 $7,000 1003 Irrigation Controller (28321) - Rep 15 14 $7,500 1003 Irrigation Controller (28331) - Rep 15 14 $7,500 1003 Irrigation Controller (28345) - Rep 15 14 $7,000 1003 Irrigation Controller (28405) - Rep 15 14 $7,500 1003 Irrigation Controller (28415) - Rep 15 14 $7,000 1003 Irrigation Controller (28421) - Rep 15 14 $7,000 1003 Irrigation Controller (28435) - Rep 15 14 $7,000 1003 Irrigation Controller (pool) - Rep 15 14 $7,500 Irrigation Enclosures 1004 Backflow Enclosure (22811) - Repl 25 10 $1,600 Irrigation Systems 1005 Master Control Valves - Install 0 1 $175,000 1005 Master Control Valves - Partial 20% 20 20 $35,000 Association Reserves, 38227-0 3 12/10/2020 # Component Useful Life (yrs) Rem. Useful Current Average Life (yrs) Cost 1006 Irrig System- Partial Replace (10%) 15 14 $36,500 43 Total Funded Components Note 1: Yellow highlighted line items are expected to require attention in this initial year. Association Reserves, 38227-0 4 12/10/2020 7.b Terms, Conditions, & Fees: 38227-1 City of Santa Clarita — LMD Zones Fees: Client agrees to pay 50% deposit at time of submitting the signed go -head (this will activate the start of the delivery schedule) & 50% final payment upon delivery of Reserve Study. Note: Client is to designate one "primary" contact person. All work to be accomplished during normal business hours (Mon -Fri, 8am-5pm). We are covered by General Liability insurance, Professional Liability insurance, and our staff is covered by Workman's Compensation. Certificates of insurance are available upon request. We do not perform intrusive investigations or destructive testing of any type. In our work preparing Reserve Study we do not claim to inspect or provide opinions on "hidden" components such as piping or electrical components, nor do we claim an ability to identify construction defect issues, anticipate or reveal environmental hazards such as asbestos or radon, nor pest hazards such as termites, nor acts of God such as earthquake or flood. Association Reserves liability in any matter involving this Reserve Study is limited to our Fee for services rendered. Indemnity: By signing below, the Client agrees to indemnity Association Reserves and to hold it harmless from and against any and all liability, loss, damage, claim, and expense, including reasonable attorney's fees and expenses that may be incurred by Association Reserves arising out of or related to Client's breach of this agreement, Client's violation of any law or regulation, and/or Client's intentional misconduct or gross negligence. Execution: By signing below, Client is indicating Client's agreement to all of the terms & conditions of this agreement. Client has full right, power, and authority to enter into and be bound by the terms and conditions of this agreement and to perform Client's obligations under this agreement without the approval or consent of any other party. The person signing this agreement on behalf of Client represents and warrants that he/she has the authority to do so. Proposal Acceptance (please sign and return) 1. Level of Service & Pricing: Reserve Study— (15) Full On -Sites For the Fiscal Year beginning: 2021 Print Name: .►d Fee: $45,000 Company/Title: Date: Turnaround Time: 10 Weeks 2. Return this agreement to us, along with a check made payable to Association Reserves • Please email this signed agreement to: cserrano@reservestudy.com • Please send check to: 6700 Fallbrook Ave Ste 255, West Hills, CA 91307 • Delivery turnaround schedule will start once the 50% deposit and signed agreement are received by Association Reserves. IXG Packet Pg. 42