Colton City Council
October 21, 2025

City of Colton
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
City of Colton Website
Mayor Frank J. Navarro
Council Members:

David J. Toro – District 1
Kelly J. Chastain – District 2
Dr. Luis S. González – District 3
John R. Echevarria – District 4

City Clerk Isaac T. Suchil
City Treasurer Henry M. Razo

City Manager William R. Smith
City Attorney Carlos Campos

Agenda
City Council
Colton Utility Authority, Colton Public Financing Authority Colton Housing Authority
Regular Meeting
Tuesday, October 21, 2025 – 5:00 PM
City Hall, Council Chambers

Closed Session
5:00 p.m.

Closed Session Called to Order
Roll Call
Public Comment - Closed Session
This is the portion of the meeting specifically set aside to invite your comments regarding Closed Session items. If you wish to address the City Council regarding a Closed Session item, please fill out and submit a public comment card into the public comment card box BEFORE the meeting begins. During the public comment period, the City Clerk will call each speaker by name to approach the podium.

Please begin your public comment by stating your name and your city of residence, then proceed to share the rest of your public comment. You will have a time limit of 3 minutes to complete your public comment; however, the presiding officer does have the authority to exercise discretion to extend or limit time as provided for in the City Council Manual of Procedure.

It is important to remember that the Council is prohibited by law from discussing or taking immediate action on items during this public comment period; If any matter does require action, it will be referred to by staff for investigation and any report will be provided at a subsequent Council meeting.

If you would like to submit paperwork to the City Council members, you will also need to provide a copy to the City Clerk for the Official Record. _____________________________________________________________________________

Closed Session
1) Conference with Legal Counsel - Exposure to Litigation Pursuant to California Government Code, Section 54956.9(d)(2)/(e)(1) One (1) Potential Case
2) Conference with Labor Negotiators
City Representatives: Bill Smith, City Manager & Tom Cody, HR Director Employee Groups: Colton Police Officers Association (CPOA) Colton Police Management Association (CPMA)
IBEW Water/Wastewater (IBEW W/W)
3) Public Employee Performance Evaluation
Job Titles - City Attorney & City Manager
City Attorney Oral Report on Closed Session Actions
Rules of Decorum
To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.

Open Session
6:00 P.M.

Open Session Called to Order
Invocation
Pastor Jeff Keneaster – Centerpoint Church
Flag Salute
Veterans of Foreign Wars (VFW) Member – Bernie Moyeda
Roll Call

Ceremonial Matters
Presentations, Awards, Proclamations
• Business Focus - Gomez Professional Services
• Presentation - West Valley Water District - "The Value of Water" • Recognition - City New Hire Introductions & Recognition - 7/1/25 - 9/30/25 Mayor and Council Items
Gift Disclosures
Prior to rendering a decision in any proceeding involving a license, permit, contract or other entitlement pending before the City Council, any Council Member who has received been promised a gift or gifts aggregating $50.00 or more in value within the preceding twelve months from a party or participant in the proceeding shall disclose that fact either orally or in writing during open session. This disclosure shall be made part of the official public record of the proceeding, either as part of the minutes of the meeting or as a separate writing filed with the city. (CMC Section 2.04.030)
AB 1234 Oral Reports
Members of the City Council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))
Appointments
Mayor and Council Discussion Items
Public Hearings
To speak on public hearing items, it is requested that you Submit your filled out public comment card into the public comment card box before the meeting begins. Once your name is called you may approach the podium. Please begin your public comment by stating your name and your city of residence; then proceed to share your public comment. The applicant will be allowed 5 minutes to address the Council, and all other people will be allowed 3 minutes. The presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.
1) Report on Water System Public Health Goals - Receive and File the Report on Public Health Goals for the Water System.

Staff Person: Chad Blais
Business Items
There are no Business items.

Public Comment - Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items or any other general subject. If you wish to address the City Council please fill out and submit a public comment card into the public comment card box BEFORE the meeting begins. During the public comment period, the City Clerk will call each speaker by name to approach the podium.

Please begin your public comment by stating your name and your city of residence, then proceed to share the rest of your public comment. You will have a time limit of 3 minutes to complete your public comment; however, the presiding officer does have the authority to exercise discretion to extend or limit time as provided for in the City Council Manual of Procedure.

It is important to remember that the Council is prohibited by law from discussing or taking immediate action on items during this public comment period; If any matter does require action, it will be referred to by staff for investigation and any report will be provided at a subsequent Council meeting.

If you would like to submit paperwork to the City Council members, you will also need to provide a copy to the City Clerk for the Official Record.

Consent Calendar
All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.
1) Minutes - Approval of Minutes for the City Council Regular Meeting held on October 07, 2025, on File in the Office of the City Clerk.

City Clerk: Isaac T. Suchil
2) Warrants - Approve US Bank voucher dated 08/19/2025 and totaling $60,665.69; voucher numbers 221554, 221607 to 221654 dated 09/16/2025 and totaling $226,323.73; voucher numbers 221655 to 221789 dated 09/18/2025 and totaling $967,424.84; voucher numbers 221790 to 221932 dated 09/25/2025 and totaling $3,279,920.42; and a payroll disbursement listing dated 08/30/2025 to 09/12/2025 and totaling $1,417,081.42.

Staff Person: Stacey Dabbs
3) Contract Amendments - County of San Bernardino - Extend Contract with San Bernardino County for Two ARPA Projects, Davis Park & Colton Bike Path Improvements.

Staff Person: Deb Farrar

4) Contract Award - DM Contracting, Inc. - Award Contract to DM Contracting, Inc. for CDBG COLT-24-1-03K/0301 Alley Paving and Sidewalk Improvement Project.

Staff Person: Chad Blais
5) Contract Award - Kllen Group America, Inc - Approve Contract Award to Kllen Group America, Inc., in the Amount of $538,088.47 for Various Transformers.

Staff Person: Charles Berry
6) Contract Award - Pelican Coast Electric - Award Contract to Pelican Coast Electric for Design, Engineering, and Construction of DC Fleet Charging.

Staff Person: Charles Berry
7) Easement - Mt. Vernon/Santo Antonio Drive - Accept and Approve the Full QuitClaim of Easement in Favor of Greystar Development West, LLC, at the NE Corner of Mt. Vernon Avenue and Santo Antonio Drive.

Staff Person: Charles Berry
____________________________________________________________________________________ Mayor and Council Oral Reports and Comments
Comments from Mayor and Council on various issues and activities throughout the community. Comments shall be limited to 5 Minutes per speaker.

City Manager's Reports
Adjournment

I, Stephanie M. Vargas, the Chief Deputy City Clerk, hereby certify that a true and correct, accurate copy of the foregoing agenda was posted, at least 72 hours prior to the meeting per Government Code 54954(a), at the following locations:

City of Colton City Hall 650 N. La Cadena Drive
City of Colton Website, www.coltonca.gov
Procedures for Addressing City Council
For the Official Record, it is requested that you submit your filled out public comment card into the public comment card box before the meeting begins. Once your name is called by the City Clerk you may approach the podium to speak. Please begin your public comment by stating your name and your city of residence; then proceed to share your public comment. The City Council encourages public input on all City issues within the Rules of Decorum. Speakers will be limited to the time periods provided on the Agenda; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.

Rules of Decorum
To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.

Notice to Public
Staff reports or other written documentation relating to each item referred to, on the Agenda, are available for public inspection at the following locations: Office of the City Clerk, 650 N. La Cadena Drive, Colton, CA; City of Colton Public Library, 656 9th St., Colton, CA; or the City of Colton Internet Website, www.coltonca.gov. Any person having questions concerning any item on the Agenda may call the City Clerk Office at (909) 370-5001 to make inquiry concerning the nature of the item described on the Agenda. The City Clerk’s Office shall direct inquiries to the appropriate office.

All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

In compliance with the American with Disabilities Act, if you need special assistance to participate in a City Meeting, please contact the City Clerk’s Office at 909-370-5001.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Legal Challenges
If you challenge in court any discussion or action taken concerning an item on this Agenda, you may be limited to raising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City's consideration of the item at the meeting.

Manual of Procedure
The City Council adopted its Manual of Procedure pursuant to Resolution No. R-41-18, with the latest updates being approved on November 2, 2021. Copies are available in the Office of the City Clerk.

Value of Water
Public Workshops
Colton City Council
October 21, 2025
John Thiel
General Manager

Introduction to WVWD
• Public Water Utility
– CA Special District
– CA Water Code
– Since 1952
• Community Water System
– No stocks, No profits
– Ratepayers own the system
– Proactive Community Partner

Strategic Plan
• Mission: The West Valley Water District
provides our community with high-
quality and reliable water service in a
cost-effective and sustainable manner.

Board of Directors
WVWD.org/board-directors
Improving the quality of life for the people in the communities we serve.

Kelvin Moore
President
Division 3
Angela Garcia
Vice President
Division 1
Dan Jenkins
Director
Division 1
Estevan Bennett
Director
Division 4
Greg Young
Director
Division 5

Our Service Area
WVWD provides water service to
six community areas:
• Rialto
• Fontana
• Bloomington
• Colton
• Unincorporated San Bernardino
County
• Jurupa Valley, Riverside County
WVWD.org/customers-overview

High Quality Water
You Can Count On
• 2024 Water Quality Report
• Showcases our commitment to providing
high quality water to our communities.
• Meets or exceeds all U.S. EPA and CA state
drinking water health standards.

WVWD.org/waterquality

Where Does
Your Water
Come From?
Local and Imported Sources:
• Groundwater (60%)
• District wells
• Regional wells
• Surface water (40%)
• Lytle Creek
• State Water Project

Water Use
Essential to your quality of life
• Types of Use:
• Drinking, cooking, bathing, cleaning
• Fire flow / Fire protection
• Industrial processes
• Irrigation
• Types of Customers:
• Residential
• Commercial
• Industrial
• Schools / Parks / Churches
• Public Facilities
• Agricultural / Irrigation
Water is essential to life and your quality of life !

Rising Costs of Water Delivery
Aging Infrastructure Emergency Preparedness
Electricity Inflation
As a Public Utility - We only charge what it actually costs to deliver water services and maintain a long-term, reliable, sustainable system.

Investing in
our Shared
Water Future
• Complex System of Systems
• Ongoing investments for a cost-effective,
long-term reliable and sustainable water
supply – for today and future generations

Investing in Upgrades and
Replacements
• Extend useful life of facilities
• Efficient operations and maintenance
• Avoid emergencies – expensive and
chaotic
• Enhance resilience to fires, droughts,
earthquakes
• Safeguards water supply and our quality
of life

Capital Improvement Program
• Long-term engineering and financial
planning
• 10yr projections of ongoing investments
• Project development and construction:
- Over $100M invested in the last 10 years
- Over $100M planned in the next 10 years

Lord Ranch Facilities Project
• Booster Station, Reservoir, Genset, Controls
• Located in Rialto
• Project Benefits:
- Increased system reliability and efficiency
- Increased fire-flow capabilities
• Construction begins 2025

Bloomington Waterline
Replacement - Phase 3C
• Upsized waterlines and new fire hydrants
• New service laterals and meters
• Automated Metering Infrastructure (AMI)
• Project Benefits:
- Increased fire flow and accessibility
- Efficient operations
- Enhanced customer knowledge
• Funding partnership with Supervisor Baca

Roemer Water Filtration Facility Expansion
• $64M Project
• Project Benefits:
- 50% increase in surface water production
- Reduced need for groundwater pumping
- Long-term, sustainable, cost-effective
water resource reliability
• Online in early 2026

Fire Resiliency Projects
• Upsized waterlines
• New fire hydrants
• Project Benefits:
- Community safety
- Fire protection – structural fires and wildfires
- Increased fire flow volume and reliability
- Increased accessibility to hydrants

• Diesel-powered backup generators
• Multiple strategic locations
• Project Benefits:
- Community safety
- Sustains water supply and fire flows during
power outages – planned / unplanned
• Ongoing set of projects utilizing
State and Federal Grants
Fire Resiliency Projects

Looking ahead…
• Complete Long-term Financial Plan
• Complete Cost-of-Service Water
Rate Study
• Board of Directors – Workshops and
Board Meetings
• Evaluate Needs, Costs, Benefits,
Schedules
• Consider rate adjustments
• Opportunities for public input
• Board will make a decision
• Staff implement Board-approved
actions

Learn More
wvwd.org/valueofwater Follow us on Social Media
Questions / Discussion
Thank you!

Item: 1.

Staff Report

Meeting Date: October 21, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Chad Blais, PW & Utility Services Director Item Name: Report on Water System Public Health Goals - Receive and File the Report on Public Health Goals for the Water System.

Recommended Action:

Conduct a Public Hearing to receive public comment on the Public Health Report, then receive and file the report.

Background:

Per California Health and Safety Code §116470(b), beginning on or before July 1, 1998, and every three years thereafter, public water systems serving more than 10,000 service connections that detect one or more contaminants in drinking water above the applicable Public Health Goal (PHG) are required to prepare a brief written report. This report must:
• Identify each contaminant detected in drinking water that exceeds a PHG; • Disclose the public health risk category for each contaminant; • Describe the best available technology (BAT) to remove or reduce the concentration of the contaminants;
• Estimate both the aggregate cost and the cost per customer of utilizing the BAT; • Briefly describe what action, if any, the local water purveyor intends to take to reduce the concentration of the contaminant in drinking water supplies.

In accordance with the California Safe Drinking Water Act of 1996 (SB 1307), a public hearing

is also required. The purpose of this hearing is to provide an opportunity for the City Council to receive and respond to public comments on the PHG report. The public hearing notice was published in the San Bernardino Sun on October 11, 2025.

Issues/Analysis:

This report covers calendar years 2022, 2023, and 2024. PHGs are non-enforceable goals established by the California Environmental Protection Agency (CalEPA) and the Office of Environmental Health Hazard Assessment (OEHHA).

The attached report compares the City of Colton public water system water quality results against PHGs and Maximum Contaminant Levels (MCLs). The City’s water system complies with all health-based drinking water standards and MCLs established by the State Division of Drinking Water and the U.S. Environmental Protection Agency (USEPA).

During this reporting period (2022–2024), the City analyzed 44 different constituents, resulting in approximately 306 samples tested by a State-certified analytical laboratory. Of the 44 constituents, four were detected at levels exceeding their PHGs, and one of those also exceeded the MCL at a single well source. That well is treated to remove or reduce contaminant levels before water enters the City’s distribution system.

The following provides a breakdown of the constituents found:

CONSTITUENT PHG MCL

CITY OF
COLTON
RANGE
LEVELS

CITY OF
COLTON

AVERAGE
Perchlorate 1.0 ug/L 6 ug/L Non-Detect - 4.6
ug/L

1.37 ug/L
Uranium 0.43 pCi/L 20 pCi/L Non-Detect - 48
pCi/L

2.4 pCi/L
Perfluorooctaine
Sulfonate (PFOS)

1.0 ng/L No MCL
Adopted by
SWRCB
Non-Detect - 18
ng/L

13.3 ng/L
Perfluoroocatanic
Acid (PFOA)

0.007 ng/L No MCL
Adopted by
SWRCB

4.4 - 10 ng/L 6.2 ng/L

Fiscal Impacts:

There are no fiscal impacts to the City based on the report's recommendations.

Alternatives:

1. Provide alternative direction to staff.

Attachments:

1. PHG Report_final

City of Colton
Water Quality Report
Relative to Public Health Goals
(2022–2024)
City of Colton Water Utilities – People First, Water Always

Background
Per California Health and Safety Code §116470(b), beginning on or before July 1, 1998, and every three years thereafter, public water systems serving more than 10,000 service connections that detect one or more contaminants in drinking water above the applicable Public Health Goal(PHG) are required to prepare a brief written report.

This report must:
• Identify each contaminant detected in drinking water that exceeds a PHG; • Disclose the public health risk category for each contaminant; • Describe the best available technology (BAT) to remove or reduce the concentration of the contaminants;
• Estimate both the aggregate cost and the cost per customer of utilizing the BAT;
• Briefly describe what action, if any, the local water purveyor intends to take to reduce the concentration of the contaminant in drinking water supplies.

City of Colton Water Utilities – People First, Water Always

What are PHGs, MCLs, and MCLGs?
• PHGs: Public Health Goal is the safe level of concentration which poses no significant health risk if consumed for a lifetime. PHGs are Non-enforceable health goals set by Office of Environmental Health Hazard Assessment. • MCLGs: The level of a contaminant in drinking water below which there is no known or expected risk to health. MCLGs are Non-enforceable public health goals set by the US Environmental Protection Agency.
• MCLs: Maximum Contaminant Levels are standards that are set by the California State Water Resources Control Board, Division of Drinking Water for drinking water quality. MCL is the legal threshold limit on the amount of a substance that is allowed
in public water systems under the Safe Drinking Water Act. MCLs are enforceable standards.
• PHGs/MCLGs may guide revisions to MCLs.

City of Colton Water Utilities – People First, Water Always

Health Risk Categories
• Acute Toxicity – short-term exposure effects.
• Carcinogenic – capable of causing cancer.
• Chronic Toxicity – effects from long-term low exposure. • Developmental Toxicity –birth defects, altered growth, functional issues.
• Neurotoxic – impacts on the nervous system.
• Reproductive Effects – adverse impacts on fertility and pregnancy outcomes.

City of Colton Water Utilities – People First, Water Always Health Risk Assessments are categorized for various PHG/MCLGs. Health risks are based on long-term exposure to low levels of contaminants as would occur with drinking water, as opposed to high doses from a single or short-term exposure.

These are the first or most sensitive adverse effects that occur when chemical exposure reaches a sufficient level and duration to produce toxicity. Basing health goals to protect against high dose/short term exposure also protects against risks that would occur from short-term exposure.

Water Quality Data Considered
• All water quality data collected within the City’s public water system between January 1, 2022, and December 31, 2024, have been considered for the purpose of determining compliance with the primary drinking water standards. • Data is summarized in the annual Consumer Confidence Report (CCR). • CCR distributed to customers each year by July 1.

City of Colton Water Utilities – People First, Water Always

Best Available Treatment
Technologies (BATs)
• BATs are identified by US Environmental Protection Agency and State Water Resources Control Board.
• BATs are the best-known methods to achieve compliance with MCLs for drinking water standards.
• Since many PHG/MCLG levels are set much lower than MCLs, it is not always financially feasible to reduce constituent downwards to meet those goals. • Also, treatment for one contaminant may affect other water quality parameters.

City of Colton Water Utilities – People First, Water Always

Contaminant Removal
• Estimated Costs:
• • $2.5M–$3.5M per well (design & construction).
• • $450K annual O&M per resin changeout.
• • $28M system-wide installation.
• • $3.6M annual O&M system-wide.
• • $2,874 per service connection.

City of Colton Water Utilities – People First, Water Always The City of Colton remains in compliance with all State and Federal standards and continues to deliver safe drinking water to our customers.

Staff determined that ion exchange, reverse osmosis, and coagulation/filtration can remove perchlorate, uranium, PFOS, and PFOA with ion exchange being the most proven and widely used method. Ion exchange is currently being used to treat water at Well 24.

Recommendation for Further Action
• City continues to meet all State and Federal standards. • Further reduction below MCLs would require costly processes. • Limited public health benefit from additional treatment. • Recommendation: No further treatment at this time.
• Staff will continue monitoring and re-evaluate if standards change.

City of Colton Water Utilities – People First, Water Always

Constituent: Perchlorate
• PHG: 1.0 µg/L | MCL: 6 µg/L.
• Detected in 4 wells above PHG but below MCL.
• 1 well (Well 24) exceeded both PHG and MCL.
• Levels ranged: Non-detect to 21 µg/L.

City of Colton Water Utilities – People First, Water Always Perchlorate is an oxidizing chemical used in a variety of industrial processes.

Perchlorate can occur in the environment either through industrial contamination or from natural sources. Perchlorate exposure in the U.S. is ubiquitous, mostly from ingestion of perchlorate in contaminated food or water. OEHHA has established the PHG for perchlorate at 1.0 ug/L. The MCL for drinking water standards is set at 20 ug/L. Perchlorate has a primary toxic mechanism that reduces iodide uptake in the thyroid gland. If severe enough, this can lead to reduced thyroid hormone production.

Constituent: Uranium
• PHG: 0.43 pCi/L | MCL: 20 pCi/L.
• Detected above PHG in all 9 wells but below MCL.
• Levels ranged: 1.50 – 11.00 pCi/L.

City of Colton Water Utilities – People First, Water Always Uranium is a silvery white metallic radioactive element that is present, to some degree, in almost everything in our environment. It occurs naturally in granites and other mineral deposits, and it generally finds its way into water by leaching from these natural deposits. OEHHA has established the PHG for uranium at 0.43 pCi/L(pico curies per liter). The MCL for drinking water standards for uranium is 20 pCi/L. Uranium has a health risk category of Carcinogen, and it usually affects the kidneys

Constituent: Perfluorooctanic Acid
Perfluorooctanoic acid (PFOA) is a man-made chemical that is part of the broader group of per- and polyfluoroalkyl substances (PFAS). It was commonly used in products such as non-stick cookware, water-repellent fabrics, and cosmetics. OEHHA has established the PHG for PFOA at 0.007 ng/L. There is currently no California MCL adopted by SWRCB. PFOA has a health risk category of carcinogenicity (causes cancer). • PHG: 0.007ng/L | MCL: None Adopted by SWRCB.
• Detected above PHG in four wells.
• Levels ranged: Non-Detect – 10 ng/L.
• SWRCB has set notification levels to governing body
at > 5.1 ng/L and action levels at > 10 ng/l.

City of Colton Water Utilities – People First, Water Always

Constituent:

Perfluorooctanesulfonic Acid
Perfluorooctanesulfonic acid (PFOS) is a synthetic chemical that belongs to the group of substances known as per- and polyfluoroalkyl substances (PFAS). PFOS is widely used in consumer products such as stain repellents, firefighting foams, and non-stick coatings.

OEHHA has established the PHG for PFOS at 1.0 ng/L. There is currently no California MCL adopted by the SWRCB. PFOA has a health risk category of carcinogenicity (causes cancer).
• PHG: 1.0 ng/L | MCL: None Adopted by SWRCB.
• Detected above PHG in four wells.
• Levels ranged: Non-Detect – 18 ng/L.
• SWRCB has set notification levels to governing body
at > 6.5 ng/L and action levels at > 40 ng/l.

City of Colton Water Utilities – People First, Water Always

CITY OF COLTON

REPORT ON SYSTEM WATER QUALITY

RELATIVE TO PUBLIC HEALTH GOALS
January 1, 2022, through December 31, 2024

Background

This report covers calendar years 2022, 2023, and 2024. Provisions of the California Health and Safety Code (HSC §116470(b)) require public water systems with more than 10,000 service connections to prepare a special report every three years if water quality measurements exceed any Public Health Goals (PHGs).

The purpose of this report is to provide consumers with information about contaminants found in drinking water, even when levels are below enforceable Maximum Contaminant Levels (MCLs). It also provides an estimate of the cost to reduce or eliminate these contaminants, regardless of how minimal the risk may be.

PHGs are non-enforceable goals established by the California Environmental Protection Agency (EPA) Office of Environmental Health Hazard Assessment (OEHHA). If OEHHA has not adopted a PHG for a contaminant, suppliers must use the Maximum Contaminant Level Goal (MCLG) set by the U.S. Environmental Protection Agency (USEPA). Only constituents with a California primary drinking water standard and either a PHG or MCLG are addressed in this report.

If a contaminant was detected in the City of Colton’s water supply between 2022 and 2024 at levels exceeding a PHG or MCLG, this report provides the following:

• The numerical public health risk (if applicable)

• The type of health risk associated with the contaminant

• Best available treatment technologies (BATs)

• Estimated costs to reduce or remove the contaminant

What are PHGs/MCLs/MCLGs
Public health goals are based solely on public health risk assessments and are generally lower than the enforceable maximum contaminant levels of the primary drinking water standards. MCLs, which are established at very conservative levels, provide protection and are the regulatory definition of what is considered “safe”.

PHGs for non-carcinogenic chemicals in drinking water are set at a concentration “at which no known or anticipated adverse health effects will occur, with an adequate margin for safety.” For carcinogens, PHGs are set at a concentration that “does not pose a significant risk of cancer.” This is usually a one-in-a-million excess cancer risk for a lifetime of exposure. MCLGs, like PHGs, are strictly health-based and include a margin of safety. One difference, however, is that the MCLGs for carcinogens are set at zero because the USEPA assumes there is no absolute safe level of exposure.

None of the practical risk-management factors that are considered in establishing MCLs are considered in establishing PHGs/MCLGs. Whereas MCLs include analytical detection capability, availability, or treatment technology, benefits, and costs.

PHGs/MCLGs are not enforceable and are not required to be met by any public water system. In addition to cost and technological feasibility, PHGs/MCLGs may provide a basis for revising MCLs.

Health Risk Categories
Health Risk Assessments are categorized for various PHG/MCLGs. Health risks are based on long-term exposure to low levels of contaminants as would occur with drinking water, as opposed to high doses from a single or short-term exposure. These are the first or most sensitive adverse effects that occur when chemical exposure reaches a sufficient level and duration to produce toxicity. Basing health goals to protect against high dose/short term exposure also protects against risks that would occur from short-term exposure.

Numerical Public Health Risks have been assigned to carcinogenic health risk categories, whereas the cancer risk is stated in terms of excess cancer cases per million (or fewer) population. No numerical Public Health Risk has been calculated for chemicals considered non-carcinogenic.

Various Health Risk categories and specific health outcome are as follows:

• Acute Toxicity – adverse health effects that develop after a short-term exposure to a chemical. Exposure may last only minutes or occur over a few days.

• Carcinogenic – capable of producing cancer.

• Chronic Toxicity – adverse effects that usually develop gradually from low levels of chemical exposure where exposure may occur from months to years.

• Development Toxicity – adverse effects on the developing organism that may result from exposure prior to conception, during prenatal development, or postnatal to the time of sexual maturation. Adverse development effects may be detected at any point in the life span of the organism. Most developmental toxicity is manifestation by:

o Death of developing organism
o Structural abnormality (birth defects)
o Altered growth
o Functional deficiency

• Neurotoxic – capable of destroying or adversely affecting the nervous system or interfering with nerve signal transmission. Effects may be reversible (for example, effects on chemicals that carry nerve signals across gaps between nerve cells) or irreversible (destruction of nerve cells).

• Reproductive effects – the occurrence of adverse effects on the reproductive system of females or males that may result from exposure to environmental agents. The toxicity may cause changes to the female or male reproductive organs, the regulating endocrine system, or pregnancy outcomes.

Examples of such toxicity may include adverse effects on onsets of puberty, egg production and transport, menstrual cycle normality, sexual behavior such as sexual urge, and lowered fertility, sperm production, length of pregnancy and milk production.

Water Quality Data Considered
All water quality data collected within the City’s public water system between January 1, 2022, and December 31, 2024, have been considered for the purpose of determining compliance with the primary drinking water standards. Data from 2022 through 2024 is summarized in our Consumer Confidence Report (CCR) and distributed to our customers on or before July 1, each year.

Best Available Treatment Technology and Cost Estimates

Both the USEPA and State Water Resources Control Board (SWRCB) have adopted what are known as BATs or Best Available Technologies. BATs are the best-known methods to achieve compliance with MCLs for drinking water standards. Costs of these BATs are difficult to predict. Some approved analytical methods may not be able to verify that levels have indeed been reduced beyond the method detection limit. However, since many

PHGs and all MCLGs are set much lower than MCL, it is not always possible nor feasible to determine what treatment is needed to further reduce a constituent downward to or near the PHG or MCLG. In some cases, installing treatment to try and further reduce very low levels of one constituent may have adverse effects on other aspects of water quality.

Constituents Detected that Exceed a PHG or MCLG

The following constituents were detected in one or more of our drinking water sources at levels above the PHG or MCLG.

➢ Perchlorate
Perchlorate is an oxidizing chemical used in a variety of industrial processes.

Perchlorate can occur in the environment either through industrial contamination or from natural sources. Perchlorate exposure in the U.S. is ubiquitous, mostly from ingestion of perchlorate in contaminated food or water. OEHHA has established the PHG for perchlorate at 1.0 ug/L. The MCL for drinking water standards is set at 6 ug/L. Perchlorate has a primary toxic mechanism that reduces iodide uptake in the thyroid gland. If severe enough, this can lead to reduced thyroid hormone production.

Between 2022 and 2024, Colton monitored nine active potable water wells within our service area. Out of the nine wells sampled, four well sites exceeded the PHG for perchlorate but were below the MCL for drinking water standards. One active well site, Well 24 exceeded PHG and MCL. Analysis on our samples indicated perchlorate levels ranging from non-detectable to 21 ug/L.

➢ Uranium
Uranium is a silvery white metallic radioactive element that is present, to some degree, in almost everything in our environment. It occurs naturally in granites and other mineral deposits, and it generally finds its way into water by leaching from these natural deposits. OEHHA has established the PHG for uranium at 0.43 pCi/L (pico curies per liter). The MCL for drinking water standards for uranium is 20 pCi/L.

Uranium has a health risk category of Carcinogen, and it usually affects the kidneys.

Between 2022 and 2024, Colton monitored nine active potable water wells within our service area. Out of the nine well sites sampled, nine sites exceeded the PHG for uranium but were below the MCL for drinking water standards. Analysis on our samples indicated uranium levels ranging from 1.50 pCi/l to 11.00 pCi/L.

➢ Perfluorooctanic Acid (PFOA)

Perfluorooctanoic acid (PFOA) is a man-made chemical that is part of the broader group of per- and polyfluoroalkyl substances (PFAS). It was commonly used in products such as non-stick cookware, water-repellent fabrics, and cosmetics.

OEHHA has established the PHG for PFOA at 0.007 ng/L. There is currently no California MCL adopted by SWRCB. PFOA has a health risk category of carcinogenicity (causes cancer).

Between 2022 and 2024, Colton monitored nine active potable water wells within our service area. Out of the nine well sites sampled, four sites exceeded the PHG for PFOA in our groundwater sources. Analysis on our samples indicated PFOA levels ranging between non-detect to 10 ng/L.

➢ Perfluorooctanesulfonic Acid (PFOS)

Perfluorooctanesulfonic acid (PFOS) is a synthetic chemical that belongs to the group of substances known as per- and polyfluoroalkyl substances (PFAS). PFOS is widely used in consumer products such as stain repellents, firefighting foams, and non-stick coatings. OEHHA has established the PHG for PFOS at 1.0 ng/L.

There is currently no California MCL adopted by the SWRCB. PFOA has a health risk category of carcinogenicity (causes cancer).

Between 2022 and 2024, Colton monitored nine active potable water wells within our service area. Out of the nine will site sampled, four sites exceeded the PHG for PFOS in its groundwater sources. Analysis on our samples indicated PFOS levels ranging between non-detect to 18 ng/L.

Contaminant Removal

The City of Colton remains in compliance with all State and Federal standards and continues to deliver safe drinking water to our customers. To further protect our water supply, it may be necessary at times to reduce or remove contaminants.

Staff have evaluated the Best Available Technologies (BATs) for perchlorate, uranium, PFOS and PFOA removal. All four contaminants can be addressed through reverse osmosis, ion exchange (IX), or coagulation/filtration. Among these, IX is a proven and widely accepted method capable of removing multiple contaminants, including some that pose little or no health risk.

The City currently operates an IX treatment system at Well 24 to reduce perchlorate concentrations and has determined IX to be the most effective BAT for this application.

Estimated costs for IX treatment are significant:

• Design and construction per well: $2.5M–$3.5M

• Annual operations & maintenance (per resin changeout): $450,000

• System-wide installation: $28M in initial costs

• System-wide annual O&M: $3.6M

• Cost per service connection: $2,874

Perchlorate and uranium occur naturally in the region’s groundwater, whereas PFOS and PFOA are synthetic, manmade chemicals. Although ion exchange (IX) treatment can effectively reduce their levels, implementing system wide IX treatment would pose a significant financial challenge for the utility.

Recommendation for Further Action

The City of Colton continues to meet all State and Federal Drinking Water Standards established to protect public health. Further reduction of the constituents identified in this report, already well below the enforceable maximum contaminant levels, would require additional treatment processes at significant cost. Given the limited public health benefit of such measures, additional treatment is not warranted at this time. Staff will continue to monitor water quality, re-evaluate as necessary, and remain responsive to any future changes in State or Federal standards.

Item: 1.

Staff Report

Meeting Date: October 21, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Isaac T. Suchil, City Clerk
Item Name: Minutes - Approval of Minutes for the City Council Regular Meeting held on October 07, 2025, on File in the Office of the City Clerk.

Recommended Action:

Background:

Issues/Analysis:

Fiscal Impacts:

Alternatives:

Attachments:

1. Minutes Draft 1

City of Colton
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
City of Colton Website
Mayor Frank J. Navarro
Council Members:

David J. Toro – District 1
Kelly J. Chastain – District 2
Dr. Luis S. González – District 3
John R. Echevarria – District 4

City Clerk Isaac T. Suchil
City Treasurer Henry M. Razo

City Manager William R. Smith
City Attorney Carlos Campos
Minutes
City Council
Colton Utility Authority, Colton Public Financing Authority, Colton Housing Authority
Regular Meeting
Tuesday, October 7, 2025 – 5:00 PM
City Hall, Council Chambers
_____________________________________________________________________________ Closed Session
5:00 p.m.

Closed Session Called to Order
Closed Session meeting was called to order at 5:00 P.M. in the Council Chamber of City Hall, with Mayor Frank J. Navarro presiding.

Roll Call
Council members present were Frank J. Navarro, David Toro, Luis S. Gonzalez, John Echevarria:

Council member Chastain joined Closed Session at 5:10 pm.

Also present was the City Clerk Isaac T. Suchil.

Staff present were William R. Smith, City Manager, and Carlos Campos, City Attorney. _____________________________________________________________________________

Public Comment - Closed Session
There were no public comments.
____________________________________________________________________________________

_____________________________________________________________________________

Closed Session
City Attorney, Carlos Campos, announced that the City Council would meet in Closed Session to discuss Items #1, #2, and #4 but that Item #3 would not be discussed at tonight's meeting. 1) Conference with Legal Counsel - Exposure to Litigation Pursuant to California Government Code, Section 54956.9(d)(2)/(e)(1) One (1) Potential Case

2) Conference with Real Property Negotiators
Pursuant to California Government Code, Section 54956.8 Property Address [APN 0163-361-26, 0163-452-06, 0275-041-32, 0163-361-27] Agency Negotiators: Bill Smith, City Manager; Chad Blais, Public Works and Utility Services Director
Negotiating Party: William Cosley, Project Development Associate Under Negotiation: Price and Terms for Lease of Property

3) Conference with Labor Negotiators
City Representatives: Bill Smith, City Manager & Tom Cody, HR Director Employee Groups: Colton Police Officers Association (CPOA) Colton Police Management Association (CPMA)
IBEW Water/Wastewater (IBEW W/W)

4) Public Employee Performance Evaluation
Job Titles: City Attorney & City Manager

City Attorney Oral Report on Closed Session Actions
City Attorney Campos announced that the City Council met in Closed Session and discussed Closed Session Items 1, 2, and 4 and there was no reportable action.

Campos announced that there was reportable action for a previous Closed Session item that was discussed on September 16, 2025; Council authorized a settlement in the amount of $125,000 for the case of Adam Perez vs. City of Colton.

_____________________________________________________________________________

_____________________________________________________________________________ Open Session
6:00 P.M.

Open Session Called to Order
Mayor Frank J. Navarro called Open Session to order at 6:00 P.M.

Invocation
Council member Chastain
Flag Salute
Veterans of Foreign Wars (VFW) Member – Bernie Moyeda

Roll Call
Council Members present were Mayor Frank Navarro, MPT David Toro, CM Kelly Chastain, CM Luis S. González, and CM John Echevarria.

Also present was City Clerk Isaac T. Suchil; City Treasurer Henry M. Razo was absent.

Staff present were William R. Smith, City Manager, and Carlos Campos, City Attorney.

____________________________________________________________________________________ Ceremonial Matters
Presentations, Awards, Proclamations

• Presentation - SBCTA Measure I - Colton Projects
Deputy Director Otis Greer from the San Bernardino County Transportation Authority (SBCTA) provided a presentation regarding Measure I and distributed handouts with additional information. Council members asked Greer additional questions and he provided the clarity that was needed.

• Recognition - Mr. Ray Gomez, WWII Veteran and Colton Resident - 100th Birthday Councilmember Gonzalez read a short biography of Mr. Ray Gomez's life of accomplishment and then presented him with a recognition certificate; Gomez accepted the recognition and was accompanied by his family.

• Proclamation - Public Power Week and Water & Wastewater Professional's Appreciation Week.

Council member Chastain read a proclamation declaring October 5th-11th Public Power Week for 2025; Chastain presented the proclamation to the City of Colton's Electric Utility Director, Charles Berry. Chastain also read an additional proclamation recognizing the week of October 4th-12th as Water & Wastewater Professionals Appreciation week for 2025; Chastain presented the proclamation to Public Works & Utilities Director, Chad Blais.
_____________________________________________________________________________________ Mayor and Council Items

Gift Disclosures
None

AB 1234 Oral Reports
None

Appointments
Appointment - Utilities Commission - D2 - Aurelio De La Torre Council member Chastain submitted the name of Aurelio De La Torre for appointment to the Utilities Commission to represent District 2.

Consensus was reached by the Council members present and there were no objections.

Mayor and Council Discussion Items

_____________________________________________________________________________________ Public Hearings
There were no Public Hearing items.

_____________________________________________________________________________________ Business Items
There were no Business items.

_____________________________________________________________________________________

_____________________________________________________________________________

Public Comment
The following community members addressed the Council:
• Aaron Mulhall, City of Colton Firefighter
• Todd Warden, South Coast AQMD Colton Territory and San Bernardino County representative
____________________________________________________________________________________ Consent Calendar
Mayor Navarro presented the Consent Calendar Items 1 through 13.

Council Discussion
Council members presented selected items for clarification by staff: Council member Chastain; William R. Smith, City Manager, and Charles Berry, Electric Utility Director, provided the clarification needed.

Motion/Vote
A motion was made to approve the Consent Calendar by CM Gonzalez, with a second by MPT Toro.

Vote: Motion Passed with CM Chastain voting no on Item #10 and MPT Toro voting no on Item #8.

1) Minutes - Approval of Minutes for the City Council Regular Meetings held on September 16, 2025 in the Office of the City Clerk.

City Clerk: Isaac T. Suchil

2) Warrants - Approve voucher numbers 221329 to 221363 dated 08/28/2025 and totaling $804,758.88; voucher numbers 221364 to 221441 dated 08/28/2025 and totaling $96,901.90; voucher numbers 221442 to 221553 dated 09/04/2025 and totaling $485,914.44; a payroll disbursement listing dated 08/02/2025 to 08/15/2025 and totaling $1,386,158.87 and a payroll disbursement listing dated 08/16/2025 to 08/29/2025 and totaling $1,383,184.98.

Staff Person: Stacey Dabbs

3) Agreement - City of San Bernardino - Cooperative Agreement Between Colton and City of San Bernardino for the Installation of Traffic Signal at the Intersection Stewart St./Harwick Dr./Hunts Lane (Project).

Staff Person: Chad Blais

4) Agreement - Social Work Action Group (SWAG) - Approve Contract Agreement with Social Work Action Group (SWAG).

Staff Person: Anthony Vega

5) Colton Firefighters Association MOU - Approve the Memorandum of Understanding for the Colton Firefighters Association, for the Period 7/1/2025 – 6/30/2027, and Corresponding Budget Changes, and Adopt the Revised Salary Schedule, Resolutions No. R-77-25 & R-81-25.

Staff Person: Thomas Cody

6) Contract Amendment - OMNI Cemetery Management - Approve Second Contract Amendment for OMNI Cemetery Management, for Management of Hermosa Gardens Cemetery.

Staff Person: Deb Farrar

7) Legislative Policy 2026 - Approve Legislative Policy for the 2026 Legislative Year.

Staff Person: Bill Smith

8) Parking Restriction Index - Approve and Adopt the Index of Parking Restriction Locations which Outlines the Various Parking Restrictions and Locations within the City of Colton, Resolution No. R-76-25.

Staff Person: Chad Blais

9) Professional GIS Services Contract - Approve Contract Amendment for Infinity Technologies for $240,000 for GIS Services for Fiscal Year 2025-26.

Staff Person: Chad Blais

10) Property Purchase - Approve and Adopt Resolution for the Purchase of Cooley Drive Properties, Resolution No. R-80-25.

Staff Person: Bill Smith

11) Purchase - Aqua Ben Corporation - Approve a Sole Source Purchase of HydrflocTM 750A and 751 Polymer From Aqua Ben Corporation.

Staff Person: Chad Blais

12) Purchase - Dell Technologies - Approve Replacement of Staff Desktop Computers Due to Microsoft Windows 10 End-of-Support.

Staff Person: Stacey Dabbs

13) Second Reading of Ordinance No. O-07-25 - Approve the Second Reading of an Ordinance of the City Council of the City of Colton to Add Chapter 9.25 to Title 9 (Public Peace, Safety, and Welfare), Article V (Offenses Against Property) of the Colton Municipal Code to Prohibit the Unlawful Possession of Catalytic Converters and Establish Penalties for Violations, Ordinance No. O-07-25.

Staff Person: Stephanie M. Vargas

_____________________________________________________________________________________ Mayor and Council Oral Reports and Comments
Comments from Mayor and Council on various issues and activities throughout the community can be viewed on our City of Colton Website (www.coltonca.gov).

City Manager's Reports
None
Adjournment
Mayor Navarro adjourned the Regular Council Meeting at 06:59 PM in memory of Colton resident Millie Herrera and Chowchilla Police Officer Ray Barrantes; a moment of silence was observed.

_________________________
Isaac T. Suchil, City Clerk
City of Colton

Item: 2.

Staff Report

Meeting Date: October 21, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Stacey Dabbs, Finance Director
Item Name: Warrants - Approve US Bank voucher dated 08/19/2025 and totaling $60,665.69; voucher numbers 221554, 221607 to 221654 dated 09/16/2025 and totaling $226,323.73; voucher numbers 221655 to 221789 dated 09/18/2025 and totaling $967,424.84; voucher numbers 221790 to 221932 dated 09/25/2025 and totaling $3,279,920.42; and a payroll disbursement listing dated 08/30/2025 to 09/12/2025 and totaling $1,417,081.42.

Recommended Action:

Approve US Bank voucher dated 08/19/2025 and totaling $60,665.69; voucher numbers 221554, 221607 to 221654 dated 09/16/2025 and totaling $226,323.73; voucher numbers 221655 to 221789 dated 09/18/2025 and totaling $967,424.84; voucher numbers 221790 to 221932 dated 09/25/2025 and totaling $3,279,920.42; and a payroll disbursement listing dated 08/30/2025 to 09/12/2025 and totaling $1,417,081.42.

Background:

The California Government Code requires that the legislative body ratify all vouchers issued in the course of conducting City business.

Issues/Analysis:

Fiscal Impacts:

All vouchers and related backup documentation have been reviewed by the Finance Director and City Manager.

Alternatives:

1. Provide alternative direction to staff.

Attachments:

1. Fund Number and Title Legend

2. Voucher lists

3. Payroll Registers

City of Colton
Fund Number and Title Legend
Fund Title Fund Title
100 GENERAL FUND 701 LLMD #2
150 TREASURERS ACCOUNT GROUP 702 LLMD #1
206 COMMUN ITY CHILD CARE 703 CFO 87-1 DEBT SERV ICE
209 DSF FLY CONSERVATION 704 CFO 87-1 CONSTRUCT ION
210 SPECIAL GAS TAX 707 CFO 88-1 DEBT SERV ICE
211 LIBRARY GRANT FUND 708 CFO 88-1 CONSTRUCTION
212 STATE TRAFFIC RELIEF FUND 709 DSF FLY CONSERVATION
213 S.Y.E.T .P. GRANT 722 STORM WATER
214 POLLUT ION REDUCT ION FUND 733 CFO 89-1 CONSTRUCT ION 215 COMMUNITY DEV ACT FUND 734 CFO 89-2 CONSTRUCT ION
216 CDBG HOUS ING REHAB FUND 744 CFO 89-1 DEBT SERV ICE 217 DRUG/GANG INTERVENTION 745 CFO 89-2 DEBT SERV ICE
218 MEASURE I FUND 750 AQUA MANSA CFO
219 STATE AID- CAPITAL PROJECTS 754 SB COUNTY HOSPITAL
220 Vi Tep 762 TRUST AND AGENCY
225 MISC GRANTS 766 DEFERRED COMPENSAT ION
240 HOST CITY FEES - CIP 781 CFO 90-1 DEBT SERVICE
247 Quimby In Lieu Fees 782 CFO 90-1 CONSTRUCT ION
248 PARK DEVELOPMENT FUND 850 Redeve lopment Obligation Retirement Fund 249 TRAFF IC IMPACT FUND 851 Successor Agency Administration 250 NEW FAC ILITIES DEVELOPMENT FEE 855 Hous ing Auth - RM PARK DEVELOPMENT 251 CIVIC CENTER DEVELOPMENT FEE 856 Housing Auth - RANCHO MED BOND PROCEEDS 252 FIRE FAC ILITY DEVELOPMENT FEE 857 LMI Asset Fund
253 POLICE FACILITY DEVELOPMENT FEE 864 Housing Auth - LOW/MOD BOND PROCEEDS 261 ASSET FORFEITURE 865 Housing Auth - RANCHO MED CHFA 326 AD 94-1 DEBT SERVICE 866 ECONOM IC DEVELOPMENT
332 1971 SEWER BONDS, A & C 867 Consolidation Proj_08 -09 350 PFA Debt Fund 870 Housing Auth - RM PARK OPERAT IONS 357 POB-Non Enterprise 871 Successor Agcy-RANCHO/M ILL PROJECT AREA 358 PENS ION OBLIGATION DEBT SERV ICE 872 Succe ssor Agcy-RANCHO/MILL DEBT SERV ICE 359 CORP YARD DEBT SERV ICE 873 Successor Agcy-RDA II PROJECT FUND 363 1978-2 ASSESSMENT DIST . 874 Housing Auth - LOW/MOD DEBT SERV ICE 364 WATER IMPRVMNT DIST A 875 Housing Auth - LOW/MOD BOND PROCEEDS 379 AD 1979-1 DEBT SERV ICE 876 Successor Agcy-SANTA ANA RIV BND PROCEED 427 AD 94-1 CONSTRUCT ION 877 Successor Agcy-SANTA ANA RIVER CIP 450 Capita l Improvement Project s 878 RDA FIXED ASSETS GROUP 451 Colton Crossing Fund 879 Successor Agcy-WEST VALLEY CIP 453 STREET IMPROVEMENTS PRGM 881 Successor Agcy-MT VERNON BOND PROCEEDS 457 CAP ITAL IMPROVEMENT 882 Successo r Agcy-MT VERNON CIP 469 EQU IPMENT REPLACEMENT 885 Successor Agcy -MT VERNON DEBT SERV ICE 520 ELECTR IC UTILITY 886 RDA ADM INISTRAT ION
521 WATER UTILITY 887 COOLEY RANCH - now 894
522 WAS TEWATER UTILITY 888 MT VERNON - now 882
523 SOLID WASTE 889 WEST VALLEY - now 879
524 CEMETERY 890 Successor Agcy-RDA - LONG TERM DEBT GRP 525 RECYCLING 891 Successo r Agcy-RDA I DEBT SERV ICE FUND 526 PUBLIC BENEFIT FUND 892 Successor Agcy-RDA I - CAP ITAL PROJECTS 527 WASTEWATER UTILITY - GRAND TERRACE 893 Successor Agcy -RDA II DEBT SERV ICE FUND 551 WATER DEVELOPMENT 894 Successor Agcy -COOLEY RANCH PRO JECT 552 SEWER DEVELOPMENT 895 Successor Agcy-COOLEY RANCH DEBT SERV 560 CEMETARY ENDOWMENT CARE 896 SANTA ANA RIVER - now 877 605 Facility & Equipment Maintenance Fund 897 Successor Agcy-SANTA ANA RIVER DEBT SVC 606 INFORMATION SERV ICES FUND 898 Housing Auth - LOW/MOD CAPITAL PROJECTS 607 INSURANCE FUND 899 Successor Agcy-WEST VALLEY PRJ - DBT SV 608 AUTOMOT IVE SHOP 941 GENERAL LONG -TERM DEBT
610 AUTOMOT IVE SHOPS 958 GENERAL FIXED ASSETS
990 GASB 34

Item: 3.

Staff Report

Meeting Date: October 21, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Deb Farrar, Director
Item Name: Contract Amendments - County of San Bernardino - Extend Contract with San Bernardino County for Two ARPA Projects, Davis Park & Colton Bike Path Improvements.

Recommended Action:

1. Approve Amendment No. 1 to Contract No. 22-898 for Elizabeth Davis Park and Amendment No. 1 to Contract No. 22-897 for the Colton Avenue Bike Path

2. Authorize the City Manager to execute all necessary documents to implement the amendments.Authorize the City Manager to execute all contracts necessary to proceed.

Background:

Through Fifth District Supervisor Joe Baca Jr., the City of Colton submitted two projects for County ARPA funding: Elizabeth Davis Park Renovation and the Colton Bike Path Project. Both projects were reviewed and approved by the County ARPA team, with funding allocated as follows Elizabeth Davis Park – not to exceed $1,890,594 and Colton Bike Path – not to exceed $575,000.

Elizabeth Davis Park is a 6.34-acre neighborhood park at 1055 West Laurel Street. Due to age and lack of investment, its facilities have deteriorated and no longer provide safe and accessible recreation. The pandemic further highlighted the need for equitable access to outdoor spaces.

Renovations will address these issues with improvements such as upgraded restrooms, new scoreboards, water fountains, trash receptacles, graffiti management, a small dog park, ADA compliance, resurfaced tennis courts, parking lot rehabilitation, lighting, security cameras, and new furnishings.

The Colton Bike Path, constructed in 2008, is a two-mile Class I bike and pedestrian route along Colton Avenue and Inland Center Drive. Despite heavy use, landscaping, striping, and signage

have deteriorated over time. Planned improvements include refreshed landscaping, upgraded irrigation, and new striping and signage to improve safety at seven street crossings.

On June 21, 2022, the City Council approved and accepted this funding through Resolution R- 85-22, amending the FY 2022-23 budget and authorizing execution of the initial contract agreements with the County. To move the projects forward, the County provided ARPA-specific terms and conditions through a Board-approved subrecipient contract template, which was City approved and executed.

Issues/Analysis:

In September 2022, the County of San Bernardino and the City of Colton entered into two contracts to provide American Rescue Plan Act (ARPA) Coronavirus Local Fiscal Recovery Funds (CLFRF) for local improvement projects: Contract No. 22-898 for the Elizabeth Davis Park Improvements in the amount not to exceed $1,890,594, and Contract No. 22-897 for the Colton Avenue Class I Bike Path and Trail Improvements in the amount not to exceed $575,000.

Both projects were approved and accepted by City Council through Resolution R-85-22.

On November 18, 2025, the County is scheduled to approve Amendment No. 1 to both agreements. The amendments do not change the total funding allocations or the overall scope of either project. Rather, the changes extend key deadlines, provide updated expenditure detail, and clarify federal compliance requirements. For Elizabeth Davis Park, the obligation deadline is extended from June 30, 2024 to December 30, 2025, with all expenditures required to be completed by December 31, 2026. Exhibit A has been replaced with Exhibit A-1, which specifies the planned use of funds for project management, design consultant services, and the construction contract. The amendment also updates the contract language to reflect current U.S.

Treasury definitions of “obligated” and “expended” costs and reinforces compliance with Uniform Guidance procurement standards. The Davis Project is set to be awarded at this same meeting with project completion in Spring 2026.

For the Colton Bike Path, the obligation deadline is extended from June 30, 2024 to March 18, 2025, with expenditures also required to be completed by December 31, 2026. Exhibit A has likewise been replaced with Exhibit A-1, which identifies the allocations for project management, design consultant services, and construction. The amendment also incorporates updated federal definitions of eligible costs and affirms that the project must comply with Uniform Guidance procurement standards. The Bike Path project is currently underway with all concrete works complete, and the landscaping works are ongoing. Project should be completed by 10/31/25.

All other terms and conditions of both contracts remain unchanged. These amendments are administrative in nature and are intended to provide the City with additional time and clarity to complete both the Davis Park Renovation and the Colton Bike Path Improvement Project under the updated County and federal requirements.

Staff recommends that the City Council approve Amendment No. 1 to Contract No. 22-898 for Elizabeth Davis Park and Amendment No. 1 to Contract No. 22-897 for the Colton Avenue Bike

Path, and authorize the City Manager to execute all necessary documents to implement the amendments.

Fiscal Impacts:

No impact or changes to fiscal parameters.

Alternatives:

Attachments:

1. CON-CAO-11-18-25-Amendment No.1 to Contract 22-897- Bike Lane Path - City of Colton

2. CON-CAO-11-18-25-Amendment No.1 to Contract 22-898 - Elizabeth Davis - City of Colton

Rev. 5/8/20 Page 1 of 4

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY

County Administrative Office

Department Contract Representative Matthew Erickson, County Chief Financial Officer
Telephone Number (909) 387-5423

Contractor City of Colton
DUNS No. 071000000
UEI No. DTDWM2FKR5L8
Contractor Representative Victor Ortiz, Assistant PW Director Telephone Number (909) 514-4210
Contract Term July 1, 2022 through December 31,
2026
Original Contract Amount Based on actual project costs not to exceed $575,000
Amendment Amount
Total Contract Amount Based on actual project costs not to exceed $575,000
Cost Center 1100951078
Internal Order (If Applicable) 1012340

AMENDMENT NO. 1 TO CONTRACT BETWEEN SAN BERNARDINO COUNTY AND THE CITY

OF COLTON RELATED TO THE AMERICAN RESCUE PLAN ACT AND THE CORONAVIRUS

LOCAL FISCAL RECOVERY FUND
WHEREAS, on September 7, 2022, the San Bernardino County (County) Chief Executive Officer executed a Contract 22-897 (Contract) with the City of Colton (City or Contractor) to transfer funds from American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Fund (CLFRF), Assistance Listing Number: 21.027/Federal Assistance Identification Number: SLFRP-0154, in the not- to-exceed amount of $575,000 for expenditures identified in Exhibit “A” of the Contract; and

WHEREAS, on September 27, 2022 (Item No. 26), the Board of Supervisor (Board) ratified approval of the Contract with the Contractor to fund the projected expenditures identified in Exhibit "A” of the Contract regarding the Colton Avenue Class I Bike Path and Trail Improvement Project; and

WHEREAS, County and Contractor desire to amend the ARPA CLFRF obligation deadline from June 30, 2024, to March 18, 2025; and

Contract Number
22-897 A-1

SAP Number
ARPA21-PRJC-005-COL

Rev. 5/8/20 Page 2 of 4
WHEREAS, County and Contractor agree to amend the Contract, including the terms and conditions included in Exhibit “A” as stated below.

OPERATIVE PROVISIONS OF AMENDMENT NO. 1

NOW, THEREFORE, County and Contractor mutually agree as follows:

Effective November 18, 2025, Contract No. 22-897 is hereby amended as follows:

1. Replace Section 1.B of the Contract in its entirety with the following:

1. THE ARPA CLFRF
B. Contractor certifies that the use of funds that will be submitted for reimbursement from the CLFRF under Paragraph 1.A. and Exhibit “A-1” of this Contract will be used only to cover those costs that: i) are related to public health or negative economic impact eligible use; and ii) were incurred during the period that begins July 1, 2022, and will end March 18, 2025. For purposes of this Contract and pursuant to federal guidance, expended or obligated costs are costs incurred by Contractor during the time period referenced above that are allowable for reimbursement.

Any cost obligated by Contractor as of March 18, 2025, must be expended by December 31, 2026, to meet the eligible costs timeframe as defined by the United States Department of the Treasury.

2. Replace Section 4 of the Contract in its entirety with the following:

4. TERM OF CONTRACT
This Contract is effective as of July 1, 2022 (Effective Date), requires all incurred obligations by March 18, 2025, and expires on December 31, 2026, but may be terminated earlier in accordance with the provisions of this Contract.

3. Replace Exhibit “A” with Exhibit “A-1” that includes the following: “Not-to-exceed amount of expenditures described in 1 above, obligated during the period of July 1, 2022 and March 18, 2025 and expended on or before December 31, 2026 is $575,000.”

4. This Amendment No. 1 (Amendment) to Contract No. 22-897 may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Amendment. The parties shall be entitled to sign and transmit an electronic signature of this Amendment (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Amendment upon request.

5. All other terms and conditions of the Contract, as amended, shall remain in full force and effect as written.

Rev. 5/8/20 Page 3 of 4

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department

Julie Surber, Principal Asst. County Counsel
Date Date Date

SAN BERNARDINO COUNTY
City of Colton
(Print or type name of corporation, company, contractor, etc.)

By

Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated:

Name

Victor Ortiz
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

DOCUMENT HAS BEEN DELIVERED TO THE

CHAIRMAN OF THE BOARD
Title

Assistant PW Director
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
(Print or Type)
By Dated:

Deputy
Address

Rev. 5/8/20 Page 4 of 4

EXHIBIT A-1 – SCOPE OF EXPENDITURES

APPLIES TO AGREEMENT 22-897 (ARPA21-PRJC-005-COL) BETWEEN SAN BERNARDINO COUNTY

AND THE CITY OF COLTON RELATED TO THE CORONAVIRUS LOCAL FISCAL RECOVERY FUND FOR

LOCAL GOVERNMENTS

1. The following is the mutually agreed upon scope of expenditures to be funded by the American Rescue Plan Act of 2021 (ARPA) Coronavirus Local Fiscal Recovery Fund (CLFRF) received by San Bernardino County:

Class I Bike Path and Trail Improvement Project. The project will upgrade the existing bike path along Colton Avenue especially for the landscaping, striping and signage. Signs and markings will be upgraded to the current Manual on Uniform Traffic Control Devices standard for bike route. Upgrade of bike lane striping and signs is anticipated to enhance the safety of the bike lane crossings on seven street intersections. The path had minimal landscaping and irrigation system that deteriorated over the years and resulted in the deterioration of landscaping. Pedestrians and bicyclists heavily use the path as a safe route through the City of Colton for walking and cycling. The estimated cost of the project is $575,000.

The total cost included project management, design and estimates, and construction cost for the project.

2. Not-to-exceed amount of expenditures described in 1, above, obligated during the period of July 1, 2022 and March 18, 2025 and expended on or before December 31, 2026 is $575,000.

3. The following is the list of projected expenditures that will be funded by the CLFRF for the scope identified in 1, above:

Expenditure Type (e.g., Payroll) Projected Expenditures* Project Management (design and
construction)
$32,400
Design Consultant contract (P S and E) $50,000
Construction Contract $492,600
Total Expenditure $575,000
*Note: Projected expenditures may differ from the actual costs but a total amount of expenditure shall not exceed the amount as specified in Section 2, above.

4. The Contractor is responsible for ensuring that any procurement using CLFRF funds, or payments under procurement contracts using such funds are consistent with the procurement standards set forth in the Uniform Guidance at Title 2 C.F.R. Sections 200.317 - 200.327, as applicable. The Uniform Guidance establishes in Title 2 C.F.R. Section 200.319 that all procurement transactions for property or services must be conducted in a manner providing full and open competition, consistent with standards outlined in Title 2 C.F.R. Section 200.320. If the full and open procurement is not applicable, provide a reason for its exemption:

Confirmed – No Exemption Identified

Rev. 5/8/20 Page 1 of 4

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY

County Administrative Office

Department Contract Representative Matthew Erickson, County Chief Financial Officer
Telephone Number (909) 387-5423

Contractor City of Colton
DUNS No. 071000000
UEI No. DTDWM2FKR5L8
Contractor Representative Debra Farrar, Director
Telephone Number (909) 370-6157
Contract Term July 1, 2022 through December 31,
2026
Original Contract Amount Based on actual project costs not to exceed $1,890,594
Amendment Amount
Total Contract Amount Based on actual project costs not to exceed $1,890,594
Cost Center 1100951078
Internal Order (If Applicable) 1012331

AMENDMENT NO. 1 TO CONTRACT BETWEEN SAN BERNARDINO COUNTY AND THE CITY

OF COLTON RELATED TO THE AMERICAN RESCUE PLAN ACT AND THE CORONAVIRUS

LOCAL FISCAL RECOVERY FUND
WHEREAS, on September 7, 2022 the San Bernardino County (County) Chief Executive Officer executed a Contract 22-898 (Contract) with the City of Colton (City or Contractor) to transfer funds from American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Fund (CLFRF), Assistance Listing Number: 21.027/Federal Assistance Identification Number: SLFRP-0154, in the not- to-exceed amount of $1,890,594 for expenditures identified in Exhibit “A” of the Contract; and

WHEREAS, on September 27, 2022 (Item No. 26), the Board of Supervisor (Board) ratified approval of the Contract with the Contractor to fund the projected expenditures identified in Exhibit "A” of the Contract regarding the Elizabeth Davis Park Improvements project; and

WHEREAS, County and Contractor desire to amend the ARPA CLFRF obligation deadline from June 30, 2024 to December 30, 2025; and

Contract Number
22-898 A-1

SAP Number
ARPA21-PRJC-012-COL

Rev. 5/8/20 Page 2 of 4
WHEREAS, County and Contractor agree to amend the Contract, including the terms and conditions included in Exhibit “A” as stated below.

OPERATIVE PROVISIONS OF AMENDMENT NO. 1

NOW, THEREFORE, County and Contractor mutually agree as follows:

Effective November 18, 2025, Contract No. 22-898 is hereby amended as follows:

1. Replace Section 1.B of the Contract in its entirety with the following:

1. THE ARPA CLFRF
B. Contractor certifies that the use of funds that will be submitted for reimbursement from the CLFRF under Paragraph 1.A. and Exhibit “A-1” of this Contract will be used only to cover those costs that: i) are related to public health or negative economic impact eligible use; and ii) were incurred during the period that begins July 1, 2022, and will end December 30, 2025. For purposes of this Contract and pursuant to federal guidance, expended or obligated costs are costs incurred by Contractor during the time period referenced above that are allowable for reimbursement. Any cost obligated by Contractor as of December 30, 2025, must be expended by December 31, 2026, to meet the eligible costs timeframe as defined by the United States Department of the Treasury.

2. Replace Section 4 of the Contract in its entirety with the following:

4. TERM OF CONTRACT
This Contract is effective as of July 1, 2022 (Effective Date), requires all incurred obligations by December 30, 2025, and expires on December 31, 2026, but may be terminated earlier in accordance with the provisions of this Contract.

3. Replace Exhibit “A” with Exhibit “A-1” that includes the following: “Not-to-exceed amount of expenditures described in 1 above, obligated during the period of July 1, 2022 and December 30, 2025 and expended on or before December 31, 2026 is $1,890,594.”

4. This Amendment No. 1 (Amendment) to Contract No. 22-898 may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Amendment. The parties shall be entitled to sign and transmit an electronic signature of this Amendment (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Amendment upon request.

5. All other terms and conditions of the Contract, as amended, shall remain in full force and effect as written.

Rev. 5/8/20 Page 3 of 4

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department

Julie Surber, Principal Asst. County Counsel
Date Date Date

SAN BERNARDINO COUNTY
City of Colton
(Print or type name of corporation, company, contractor, etc.)

By

Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated:

Name

Debra Farrar
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

DOCUMENT HAS BEEN DELIVERED TO THE

CHAIRMAN OF THE BOARD
Title

Director
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
(Print or Type)
By Dated:

Deputy
Address

Rev. 5/8/20 Page 4 of 4

EXHIBIT A-1 – SCOPE OF EXPENDITURES

APPLIES TO AGREEMENT 22-898 (ARPA21-PRJC-012-COL) BETWEEN SAN BERNARDINO COUNTY

AND THE CITY OF COLTON RELATED TO THE CORONAVIRUS LOCAL FISCAL RECOVERY FUND FOR

LOCAL GOVERNMENTS

1. The following is the mutually agreed upon scope of expenditures to be funded by the American Rescue Plan Act of 2021 (ARPA) Coronavirus Local Fiscal Recovery Fund (CLFRF) received by San Bernardino County:

Elizabeth Davis Park Improvements. The project will include rehabilitating and improving the existing park amenities which would include but are not limited to: upgraded restrooms, new scoreboards, water fountains, trash receptacles, graffiti management, a dog park, parking lot, new park amenities (benches/tables/fixtures), surface improvement to tennis courts, Americans with Disabilities Act compliance and security cameras and lighting.

2. Not-to-exceed amount of expenditures described in 1, above, obligated during the period of July 1, 2022 and December 30, 2025 and expended on or before December 31, 2026 is $1,890,594.

3. The following is the list of projected expenditures that will be funded by the CLFRF for the scope identified in 1, above:

*Note: Projected expenditures may differ from the actual costs but a total amount of expenditure shall not exceed the amount as specified in Section 2, above.

4. The Contractor is responsible for ensuring that any procurement using CLFRF funds, or payments under procurement contracts using such funds are consistent with the procurement standards set forth in the Uniform Guidance at Title 2 C.F.R. Sections 200.317 - 200.327, as applicable. The Uniform Guidance establishes in Title 2 C.F.R. Section 200.319 that all procurement transactions for property or services must be conducted in a manner providing full and open competition, consistent with standards outlined in Title 2 C.F.R. Section 200.320. If the full and open procurement is not applicable, provide a reason for its exemption:

No Exemption Identified

Expenditure Type (e.g., Payroll) Projected Expenditures* Project Management (design and
construction)
$250,000
Design Consultant contract (P S and E) $100,000
Construction Contract $1,540,594
Total Expenditure $1,890,594

Item: 4.

Staff Report

Meeting Date: October 21, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Chad Blais, PW & Utility Services Director Item Name: Contract Award - DM Contracting, Inc. - Award Contract to DM Contracting, Inc. for CDBG COLT-24-1-03K/0301 Alley Paving and Sidewalk Improvement Project.

Recommended Action:

Authorize the contract award for the CDBG COLT-24-1-03K/0301 Alley Paving and Sidewalk Improvement Project to DM Contracting, Inc. as the lowest responsive and responsible bidder in the amount of $262,751.50 and authorize the City Manager to execute the contract agreement.

Background:

On February 6, 2024, the City Council adopted Resolution No. R-09-24, approving the final prioritized list of CDBG projects, including the CDBG COLT-24-1-03K/0301 Alley Paving and Sidewalk Improvement Project. The project includes improvements along the following streets and alleys:

1. Alley paving - between K St. and L St., 3rd St. to 4th St. (south of I-10 Freeway)

2. Alley paving - south of Valley Blvd., 3rd St. to 4th St.

3. Sidewalk infill - along East H St., Mt. Vernon Ave.. To Sperry Dr.

4. Sidewalk installation – along East E St. at Chavez Park

These projects were reviewed and approved by the CDBG Ad Hoc Committee on January 23, 2024. Attached as Exhibit A is the project plan that shows the improvement and location of each alley and street.

Issues/Analysis:

In accordance with Colton Municipal Code (CMC) Section 3.08.090, a request for Notice

Inviting Formal Bids was published in The Press Enterprise on August 15, 2025, and August 22, 2025. On September 11, 2025, bids were opened, and staff received the following bids:

Contractor Bid Amount

1. DM Contracting Inc. $262,751.50

2. Onyx Paving Company, Inc $344,000.00

3. Sequel Contractors, Inc. $359,829.00

4. Gentry General Engineering $366,374.00

5. Hardy and Harper, Inc. $443,757.00

6. All American Building Services $457,170.91

7. Kindness General Contractor $470,031.00

8. Leonida Builders, Inc. $477,352.00

9. LCR Earthwork and Engineering Corp. $597,222.00

10. LC Paving and Sealing, Inc. $597,560.00

Staff reviewed and evaluated submitted bids and recommend awarding the contract (Exhibit B) for the CDBG COLT-24-1-03K/0301 Alley Paving and Sidewalk Improvement Project to the lowest responsive and responsible bidder DM Contracting Inc. in the amount of $262,751.50.

DM Contracting Inc. is local business based in the City of Colton and completed several sidewalk and alley projects in the City of Colton as well as County of San Bernardino and cities of Industry, Upland, Highland, Victorville and Claremont.

Fiscal Impacts:

Sufficient appropriations for the CDBG COLT-24-1-03K/0301 Alley Paving and Sidewalk Improvement Project are available in the adopted FY2025-26 budget in CDBG Capital Improvement Account No. 215-2507-6920-3890-0000-000.

Alternatives:

1. Provide alternative direction to staff.

Attachments:

1. Exhibit A - Project Plan_CDBG COLT-24-1-03K-0301

2. Exhibit B - DM Contract

CONTRACT
1 CITY OF COLTON

SHORT FORM CONSTRUCTION CONTRACT
COMMUNITY DEVELOPMENT BLOCK GRANT CDBG COLT-24-1-03K/301 – ALLEY AND SIDEWALK

IMPROVEMENT PROJECT

1. PARTIES AND DATE.

This Contract is made and entered into this 22nd day of October, 2025 by and between the City of Colton, a municipal corporation organized under the laws of the State of California with its principal place of business at 650 North La Cadena Drive, Colton, California 92324, County of San Bernardino, State of California (“City”) and DM C ontracting, Inc., corporation, with its principal place of business at 1065 Harber Drive, Colton, CA 92324 (“Contractor”). City and Contractor are sometimes individually referred to as “ Party” and collectively as “Parties” in this Contract.

2. RECITALS.

2.1 City. City is a public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.

2.2 Contractor. Contractor desires to perform and assume responsibility for the provision of certain construction services required by the City on the terms and conditions set forth in this Contract.

Contractor represents that it is duly licensed and experienced in providing installation of concrete curb, gutter, sidewalk, ADA ramps and asphalt paving related construction services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City . The following license classifications are required for this Project: Class A

2.3 Project. City desires to engage Contractor to render such services for the Community Development Block Grant CDBG Colt -24-1-03K/301 – Alley and Sidewalk Improvement Project (“Project”) as set forth in this Contract.

2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, performance bond, payment bond, insurance documents and other certifications as required by the Contract.

3. TERMS

3.1 Incorporation of Documents . This Contract includes and hereby incorporates in full by reference the following documents, including all exhibits, drawings, specifications and documents therein, and attachments and addenda thereto:
• Services/Schedule (Exhibit “A”)
• Plans and Specifications (Exhibit “B”)
• Special Conditions (Exhibit “C”)
• Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “D”) • Public Works Contractor Registration Certification (Exhibit “E”) • Payment and Performance Bonds (Exhibit “F”)
• Federal Requirements (Exhibit “G”)
• Addenda
• Change Orders executed by the City

CONTRACT
2 • Edition of the Standard Specifications for Public Works Construction (The Greenbook), Excluding Sections 1-9
• Notice Inviting Bids, if any
• Instructions to Bidders, if any
• Contractor’s Bid

3.1.1 Precedence. To the extent there is a conflict between any portions of this Contract, the order of precedence shall be as follows: change orders, special conditions, technical specifications, plans/construction drawings, general contract terms, scope of work, standar d plans, advertisements for bid/proposals, bids/proposals or other documents submitted by Contractor.

3.2 Contractor’s Basic Obligation; Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately complete the Project, including all structures and facilities necessary for the Project or described in the Contract (hereinafter sometimes referred to as the “Work”), for a Total Contract Price as specified pursuant to this Contract. All Work shall be subject t o, and performed in accordance with the above referenced documents, as well as the exhibits attached hereto and incorporated herein by reference. The plans and specifications for the Work are further described in Exhibit “B” attached hereto and incorporated herein by this reference. Special C onditions, if any, relating to the Work are described in Exhibit “C” attached hereto and incorporated herein by this reference.

3.2.1 Change in Scope of Work . Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion i s approved in advance and in writing by a valid change order executed by the City.

3.2.1.1 Change Orders. Changes to the Contract Time (as defined in Section

3.3) or Total Contract Price shall be in the form of a written Change Order, either signed by both parties or issued unilaterally by the City . No adjustment shall be made to the Contract Time unless the delay impacts the critical path to completion and the delay was not caused in whole or in part by the Contractor.

Failure to timely request a Change Order shall constitute a waiver of any right to adjust the Contract Time or the Total Contract Price. All requests for Change Orders shall be accompanied by detailed supporting documentation, including but not limited to payroll records, invoices, schedules, and any other documentation requested by the City for the purpose of determining the additional costs or the impact of any delay. If the change involves Work bid at a unit price, then the Total Contract Price shall be increased at the unit price. If there is no unit price, then the Total Contract Price s hall be adjusted to account for costs actually incurred plus an allowed mark-up of fifteen percent (15%), which shall constitute the entire amount of profit, mark-ups, field or home office overhead costs, including personnel, equipment or office space, any materials, or any costs of equipment idle time for such work. Nothing herein shall prevent the Parties from agreeing to a lump sum cost.
(A) Changes Ordered By City. City may at any time issue a written directive ordering additions, deletions, or changes to the Work. Contractor shall proceed with the work in accordance with the directive. To the extent the directive results in extra work or requires additional Contra ct Time, Contractor shall request a Change Order within seven (7) days of receiving the Work Directive. If any costs are not capable of being determined within seven (7) days, then Contractor shall request a Change Order within seven (7) days of when the c osts are capable of being determined.
(B) Changes Requested By Contractor. With respect to any matter that may involve or require an adjustment to the Contract Time or the Contract Price, Contractor

CONTRACT
3 shall provide written notice of the underlying facts and circumstances that gave rise to the potential change within seven (7) days or prior to the alteration of conditions, whichever is earlier. Failure to give notice shall constitute a waiver of Contractor’s right to a change order. If any costs are not capable of being determined within seven (7) days, then Contractor shall request a Change Order within seven (7) days of when the costs are capable of being determined.

3.2.2 Substitutions/”Or Equal”. Pursuant to Public Contract Code Section 3400(b), the City may make a finding that designates certain products, things, or services by specific brand or trade name. Unless specifically designated in this Contract, whenever any material, process, or article is indicated or specified by grade, patent, or proprieta ry name or by name of manufacturer, such Specifications shall be deemed to be used for the purpose of facilitating the description of the material, process or article desired and shall be deemed to be followed by the words “or equal.” Contractor may, unless otherwise stated, offer for substitution any material, process or article which shall be substantially equal or better in every respect to that so indicated or specified in this Contract. However, the City may have adopted certain uniform standards for certain materials, processes and articles. Contractor shall submit requests, together with substantiating data, for substitution of any “ or equal” material, process or article no later than thirty-five (35) days after award of the Con tract. To facilitate the construction schedule and sequencing, some requests may need to be submitted before thirty-five (35) days after award of Contract. Provisions regarding submission of “or equal” requests shall not in any way authorize an extension of time for performance of this Contract. If a proposed “ or equal ” substitution request is rejected, Contractor shall be responsible for providing the specified material, process or article. The burden of proof as to the equality of any material, process or article shall rest with Contractor.

The City has the complete and sole discretion to determine if a material, process or article is an “or equal” material, process or article that may be substituted. Data required to substantiate requests for substitutions of an “or equal” material, process or article data shall include a signed affidavit from Contractor stating that, and describing how, the substituted “or equal” material, process or article is equivalent to that specified in every way except as listed on the affidavit. Substantiating data shall include any and all illustrations, specifications, and other relevant data including catalog information which describes the requested substituted “or equal” material, process or article, and substantiates that it is an “or equal” to the material, process or article. The substantiating data must also include information regarding the durability and lifecycle cost of the requested substituted “or equal” material, process or article. Failure to submit all the required substantiating data, including t he signed affidavit, to the City in a timely fashion will result in the rejection of the proposed substitution.

Contractor shall bear all of the City’s costs associated with the review of substitution requests. Contractor shall be responsible for all costs related to a substituted “or equal” material, process or article. Contractor is directed to the Special Condi tions (if any) to review any findings made pursuant to Public Contract Code section 3400.

3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract within 60 working days, beginning the effective date of the Notice to Proceed (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the City . Such schedules or milestones may be included as part of Exhibits “A” or “B” attached hereto, or may be provided separately in writing to Contractor. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or pursuant to any such completion sc hedule, construction schedule or project

CONTRACT
4 milestones developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of One-Thousand Dollars ($1000) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule or Project milestones established pursuant to the Contract.

3.4 Standard of Performance; Performance of Employees. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.

Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Work, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Contract. As provided for in the indemnification provisions of this Contract, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any work necessary to correct errors or omissions which are caused by Contractor’s failure to comply with the standard of care provided for herein. Any employee who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work in a manner acceptable to the City , shall be promptly removed from the Project by Contractor and shall not be re-employed on the Work.

3.5 Control and Payment of Subordinates; Contractual Relationship. City retains Contractor on an independent contractor basis and Contractor is not an employee of City. Any additional personnel performing the work governed by this Contract on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Contract and as required by law.

Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.

3.6 City’s Basic Obligation. City agrees to engage and does hereby engage Contractor as an independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contr act, the City shall pay to Contractor, as full consideration for the satisfactory performance by Contractor of the services and obligations required by this Contract, the below-referenced compensation in accordance with compensation provisions set forth in the Contract.

3.7 Compensation and Payment.

3.7.1 Amount of Compensation. As consideration for performance of the Work required herein, City agrees to pay Contrac tor the Total Contract Price of Two Hundred Sixty Two Thousand Seven Hundred Fifty One and 50/100 Dollars ($262,751.50) (“Total Contract Price” ) provided that such amount shall be subject to adjustment pursuant to the applicable terms of this Contract or written change orders approved and signed in advance by the City.

3.7.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30) or less calendar days, City will arrange for payment of the Total Contract Price upon completion and approval by City of the Work. If the Work is scheduled for completion in more than thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for herein. On or before the fifth (5th) day of each month, Contractor shall submit to the City an itemized application for payment in the format supplied by the City indicating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which is required by this Contract and such other documentation as the City may require. The Contractor shall certify that the Work for which payment is requested has been done and that the materials listed are stored where

CONTRACT
5 indicated. Contractor may be required to furnish a detailed schedule of values upon request of the City and in such detail and form as the City shall request, showing the quantities, unit prices, overhead, profit, and all other expenses involved in order to provide a basis for determining the amount of progress payments.

3.7.3 Prompt Payment. City shall review and pay all progress payment requests in accordance with the provisions set forth in Section 20104.50 of the California Public Contract Code.

However, no progress payments will be made for Work not completed in accordance with this Contract.

Contractor shall comply with all applicable laws, rules and regulations relating to the proper payment of its employees, subcontractors, suppliers or others.

3.7.4 Contract Retentions. From each approved progress estimate, five percent (5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All Contract retention shall be released and paid to Contractor and subcontractors pursuant to California Public Contract Code Section 7107.

3.7.5 Other Retentions. In addition to Contract retentions, the City may deduct from each progress payment an amount necessary to protect City from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by the City in performing any of Contractor’s obligations under the Contract which Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by City during the prosecution of the Work; (9) erroneous or false estimates by Contractor of the value of the Work performed; (10) any sums represen ting expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Contract; and (11) any other sums which the City is entitled to recover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City’s right to such sums.

3.7.6 Substitutions for Contract Retentions . In accordance with California Public Contract Code Section 22300, the City will permit the substitution of securities for any monies withheld by the City to ensure performance under the Contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in California as the escrow agent, and thereafter the City shall then pay such monies to Contractor as they come due. Upon satisfactory completion of the Contract, the securities shall be returned to Contractor. For purposes of this Section and Section 22300 of the Public Contract Code, the term “satisfactory completion of the contract ” shall mean the time the City has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement used for the purposes of this Section shall be in the form provided by the City.

3.7.7 Payment to Subcontractors. Contractor shall pay all subcontractors for and on account of work performed by such subcontractors in accordance with the terms of their respective subcontracts and as provided for in Section 7108.5 of the California Business and Professions Code.

Such payments to subcontractors shall be based on the measurements and estimates made and progress payments provided to Contractor pursuant to this Contract.

3.7.8 Title to Work. As security for partial, progress, or other payments, title to Work for which such payments are made shall pass to the City at the time of payment. To the extent that title has not previously been vested in the City by reason of payments, full title shall pass to the City at delivery of the Work at the destination and time specified in this Contract. Such transferred title shall in each case

CONTRACT
6 be good, free and clear from any and all security interests, liens, or other encumbrances. Contractor promises and agrees that it will not pledge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply with the Contract, and shall not relieve Contractor of responsibility for any loss of or damage to items.

3.7.9 Labor and Material Releases . Contractor shall furnish City with labor and material releases from all subcontractors performing work on, or furnishing materials for, the Work governed by this Contract prior to final payment by City.

3.8 Labor

3.8.1 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq., ( “Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. Since the Work is being performed as part of an applicable “ public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Work available to interested parties upon request, and shall post copies at Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Contractor and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.

3.8.2 Apprenticeable Crafts . When Contractor employs workmen in an apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the California Labor Code with respect to the employment of properly registered apprentices upon public works. The pri mary responsibility for compliance with said section for all apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.

3.8.3 Hours of Work. Contractor is advised that eight (8) hours labor constitutes a legal day’s work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate for that worker.

3.8.4 Payroll Records. Contractor and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor in the manner pr ovided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, Contractor shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such Contractor must comply with this section. Should noncompliance still be evident after such 10 -day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner.

A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years

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7 as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor. In accordance with Labor Code section 1771.4, the Contractor and each subcontractor shall furnish the certified payroll records directly to the DIR on a weekly basis and in the format prescribed by the DIR, which may include electronic submission. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.8.5 Contractor and Subcontractor Registration. Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations.

No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. Contractor is directed to review, fill out and execute the Public Works Contractor Registration Certification attached hereto as Exhibit “E” prior to contract execution. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

3.8.6 Labor Compliance; Stop Orders . This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor’s sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Work, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay subject to any applicable liquidated damages and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.9 Performance of Work; Jobsite Obligations.

3.9.1 Water Quality Management and Compliance.

3.9.1.1 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000- 14950); local ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.

3.9.1.2 Compliance with the Statewide Construction General Permit .

Contractor shall comply with all conditions of the most recent iteration of the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Construction Activity, issued by the California State Water Resources Control Board ( “Permit”). It shall be Contractor ’s sole responsibility to file a Notice of Intent and procure coverage under the Permit for all construction activity which results in the disturbanc e of more than one acre of total land area or which is part of a larger common area of development or sale. Prior to initiating work, Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit. Contractor shall be responsible for procuring, implementing and complying with the provisions of the Permit and the SWPPP, including the standard provisions, and monitoring and reporting requirements as required by the Permit. The Permit requires the SWPPP to be a “living document” that

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8 changes as necessary to meet the conditions and requirements of the job site as it progresses through difference phases of construction and is subject to different weather conditions. It shall be Contractor ’s sole responsibility to update the SWPPP as necessary to address conditions at the project site. Without in any way diminishing Contractor's sole responsibility for obtaining coverage under, and complying with, the Permit, the City will use reasonable efforts to assist Contractor in filing the Notice of Intent when the City's participation is required by the Permit.

3.9.1.3 Other Water Quality Rules, Regulations, and Policies. Contractor shall comply with the lawful requirements of the Environmental Protection Agency, the State Water Resources Control Board, the Santa Ana Regional Water Quality Control Board, and the City, as well as any other applicable municipality, drainage district, or local agency regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.

3.9.1.4 Cost of Compliance. Storm, surface, nuisance, or other waters may be encountered at various times during construction of the Work. Therefore, the Contractor, hereby acknowledges that it has investigated the risk arising from such waters and assumes any and all risks and liabilities arising therefrom.

3.9.1.5 Liability for Non -Compliance. Failure to comply with the Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its directors, officials, officers, employees, volunteers and agents for any alleged violations of this Section 3.9.1.5, including the Permit or any of the laws, rules, regulations and policies provided for herein. In addition, City may seek damages from Contractor for any delay in completing the Work in accordance with the Contract, if such delay is caused by or related to Contractor’s failure to comply with the Permit.

3.9.1.6 Reservation of Right to Defend. City reserves the right to defend any enforcement action brought against the City for Contractor’s failure to comply with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to reimburse the City for the costs (including the City’s attorney ’s fees) associated with, any settlement reached between the City and the relevant enforcement entity.

3.9.1.7 Training. In addition to the standard of performance requirements set forth in paragraph 3.4, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and pol icies described in paragraph 3.9. 1. Contractor further warrants that it, its employees and subcontractors will receive adequate training, as determined by City , regarding the requirements of the laws, regulations and policies described in paragraph 3.9.1 as they may relate to the Work provided under this Contract . Upon request, City will provide the Contractor with a list of training programs that meet the requirements of this paragraph.

3.9.2 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. Contractor shall comply with the requirements of the specifications relating to safety measures applicable in particular operations or kinds of work. In carrying out its Work, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the Work and the conditions under which the Work is to be performed. Safety precautions as applicable shall include, but shall not be limited to, adequate life protection and lifesaving equipment; adequate illumination for underground and night operations; instructions in accident prevention for all employees, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the proper inspection and maintenance of all safety measures. Furthermore, Contractor shall prominently

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9 display the names and telephone numbers of at least two medical doctors practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.

3.9.3 Laws and Regulations . Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with the Work. If Contractor observes that the drawings or specifications are at variance with any law, rule or regulation, it shall promptly notify the City in writing. Any necessary changes shall be made by written change order. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Contract to the same extent as though set forth herein and will be complied with. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Contract, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.9.4 Permits and Licenses . Contractor shall be responsible for securing City permits and licenses necessary to perform the Work described herein, including, but not limited to, a City Business License. While Contractor will not be charged a fee for any City permits, Contractor shall pay the City’s applicable business license fee. Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.

3.9.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more in depth, Contractor shall comply with all applicable provisions of the California Labor Code, including Section 6705. To this end, Contractor shall submit for City’s review and approval a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.

3.9.6 Hazardous Materials and Differing Conditions. As required by California Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any conditions, notify City of: (1) any material discovered in excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class III disposal site; (2) subsurface or latent physical conditions at the site differing from those indicated by City; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ordinarily encountered in such contract work. Upon notification, City shall promptly investigate the conditions to determine whether a change order is appropriate. In the event of a dispute, Contractor shall not be excused from any scheduled completion date and shall proceed with all Work to be performed under the Contract, but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.

3.9.7 Underground Utility Facilities. To the extent required by Section 4215 of the California Government Code, City shall compensate Contractor for the costs of: (1) locating and repairing damage to underground utility facilities not caused by the failure of Contractor to exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall not be assessed liquidated damages for delay caused by failure of City to provide for removal or relocation of such utility facilities.

3.9.8 Air Quality.

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10 3.9.8.1 Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Although the SCAQMD and CARB limits and requirements are more broad, Contractor shall specifically be aware of their application to "portable equipment", which definition is considered by SCAQMD and CARB to include any item of equipment with a fuel -powered engine. Contractor shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Contract.

3.9.8.2 Contractor shall comply, and ensure all subcontractors comply, with all applicable requirements of Title 13, California Code of Regulations Division 3, Chapter 9 (“Regulation”).

3.9.8.3 Throughout the Project, and for three (3) years thereafter, Contractor shall make available for inspection and copying any and all documents or information associated with Contractor’s and any subcontractors’ fleet including, without limitation, all Certif icates of Reported Compliance, fuel/refueling records, maintenance records, emissions records, and any other information the Contractor is required to produce, keep or maintain pursuant to the Regulation upon two (2) calendar days’ notice from the City.

3.9.9 State Recycling Mandates. Contractor shall comply with State Recycling Mandates. Any recyclable materials/debris collected by the contractor that can be feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.

3.9.10 Inspection Of Site. Contractor has visited sites where Work is to be performed and has become acquainted with all conditions affecting the Work. Contractor warrants that it has made such examinations as it deems necessary to determine the condition of the Work sites, its accessibility to materials, workmen and equipment, and to determine the Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances –time or money –will be allowed as to such matters.

3.9.11 Field Measurements. Contractor shall make field measurements, verify field conditions and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract Documents before commencing activities. Errors, inconsistencies or omissions discovered shall be reported to the City immediately and prior to performing any work or altering the condition.

3.10 Completion of Work. When Contractor determines that it has completed the Work required herein, Contractor shall so notify City in writing and shall furnish all labor and material releases required by this Contract. City shall thereupon inspect the Work. If the Work is not acceptable to the City , the City shall indicate to Contractor in writing the specific portions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a re-inspection by the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which City may be authorized or directed by law to retain. Payment of retention proceeds due to Contractor shall be made in accordance with Section 7107 of the California Public Contract Code.

3.11 Claims; Government Code Claim Compliance.

3.11.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections

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11 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.

3.11.2 The following requirements apply to all contracts entered into after January 1, 1991, and all claims to which this section applies:

3.11.2.1 Prerequisites. If any dispute shall arise between the City and Contractor regarding performance of the work, or any alleged change in the work, Contractor shall timely perform the disputed work and shall give written notice of a claim for additional compensation for the work to the City within three (3) days after commencement of the disputed work. Contractor ’s failure to give written notice within the three (3) -day period constitutes an agreement by Contractor that it will receive no extra com pensation for the disputed w ork and shall constitute a waiver of the right to these procedures.

3.11.2.2 Claim Submittal. For purposes of this section, “Claim” means a separate demand by the Contractor, after a change order duly requested in accordance with the terms of this Contract has been denied by the City, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an amount the payment of which is disputed by the City. Claims governed by this section may not be filed unless and until the Contractor completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and Contractor’s request for a change has been denied in whole or in part. The claim shall be submitted in writing to the City and shall include on its first page the following in 16 point capital font: “THIS IS A CLAIM.” Claims governed by this procedure must be filed on or before the date of final payment. Nothing in this section is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to compensation or payment for extra work, disputed work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.

3.11.2.3 Supporting Documentation: The Contractor shall submit all claims in the following format:
(1) Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made
(2) List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
(3) Chronology of events and correspondence
(4) Analysis of claim merit
(5) Analysis of claim cost
(6) Time impact analysis in CPM format

3.11.2.4 City’s Response. Upon receipt of a claim pursuant to this section, City shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 days after the public entity issues its written statement.

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12 (1) If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45 -day period, or extens ion, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
(2) Within 30 days of receipt of a claim, the City may request in writing additional documentation supporting the claim or relating to defenses or claims the City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.
(3) The City’s written response to the claim, as further documented, shall be submitted to the Contractor within 30 days (if the claim is less than $50,000, within 15 days) after receipt of the further documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.

3.11.2.5 Meet and Confer. If the Contractor disputes the City’s written response, or the City fails to respond within the time prescribed, the Contractor may so notify the City, in writing, either within 15 days of receipt of the City’s response or within 15 days of the City’s f ailure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute.

3.11.2.6 Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the City issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing, unless the parties agree to select a mediator at a later time. (1) If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.
(2) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (3) Unless otherwise agreed to by the City and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.

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13 (4) The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the Contractor last performs Work, whichever is earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed.
(5) If following the mediation, the claim or any portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim pursuant to subdivision (a) until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation.

3.11.2.7 Civil Actions. The following procedures are established for all civil actions filed to resolve claims subject to this section:
(1) Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of these procedures. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.
(2) If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Di scovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration. (A) In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party.

3.11.2.8 Government Code Claims . In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, construction claims and/or changed conditions, the Contractor must comply with the claim procedures set forth in Government Code Section 900, et seq. prior to filing any lawsuit against the City.

Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unres olved after all procedures pertaining to extra work, disputed work, construction claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if the prerequisite contractual requirements are not satisfied, no action against the City may be filed. A Government Code claim must be filed no earlier than the date the work is completed or the date the Contractor last performs work on the Project, whichever

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14 occurs first. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted.

3.11.2.9 City’s Responses . The City’s failure to respond to a claim from the Contractor within the time periods described in this section or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. City’s failure to respond shall not waive City’s rights to any subsequent procedures for the resolution of disputed claims.

3.12 Loss and Damage . Except as may otherwise be limited by law, Contractor shall be responsible for all loss and damage which may arise out of the nature of the Work agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Work until the same is fully completed and accepted by City . In the event of damage proximately caused by an Act of God, as defined by Section 7105 of the Public Contract Code, the City may terminate this Contract pursuant to Section 3.18.3; provided, however, that the City needs to provide Contractor with only one (1) day advanced written notice.

3.13 Indemnification.

3.13.1 Scope of Indemnity . To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor’s services, the Project or this Contract, including without limitation the payment of all expert witness fees, attorneys’ fees , and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the City or the City’s agents, servants, or independent contractors who are directly responsible to the City, or for defects in design furnished by those persons.

3.13.2 Additional Indemnity Obligations . Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against City or its officials, employees, agents and volunteers. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its of ficials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees.

Contractor shall reimburse City and its officials, employees, agents and volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Contract, and shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and volunteers.

3.14 Insurance.

3.14.1 Time for Compliance. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Contract for cause.

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15 3.14.2 Minimum Requirements . Contractor shall, at its expense, procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Contract. Such insurance shall meet at least the following minimum levels of coverage:

3.14.2.1 Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 00 01) OR Insurance Services Office Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for operations of designated contractor); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 00 01, code 1 (any auto); (3) Workers ’ Compensation and Employer ’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance; and (4) Builders’/All Risk: Builders’/All Risk insurance covering for all risks of loss, including explosion, collapse, underground excavation and removal of lateral support (and including earthquakes and floods if requested by the City).

Policies shall not contain exclusions contrary to this Contract, including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 29); or (2) cross liability for claims or suits by one insured against another.

3.14.2.2 Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability : $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Contract/location or the general aggregate limit shall be twice the required occurrence limit ; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; (3) Workers’ Compensation and Employer’s Liability: Workers’ compensation limits as required by the Labor Code of the State of California. Employer ’s Liability limits of $1,000,000 each accident, policy limit bodily injury or disease, and each em ployee bodily injury or disease; and (4) Builders’/All Risk: Completed value of the project. Defense costs shall be available in addition to the limits. Notwithstanding the minimum limits specified herein, any available coverage shall be provided to the parties required to be named as additional insureds pursuant to this Contract.

3.14.2.3 Notices; Cancellation or Reduction of Coverage. At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. In the event any policy of insurance required under this Contract does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by Contractor or the City may withhold amounts sufficient to pay premium from Contractor payments. In the alternative, the City may suspend or terminate this Contract.

3.14.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements (amendments) on forms supplied or approved by the City to add the following provisions to the insurance policies:

3.14.3.1 General Liability . The general liability policy shall include or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or endorsements providing the exact same coverage, the City of Colton, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the Services or ongoing and completed operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in

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16 connection with such work; and (2) using ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor’s scheduled underlying coverage. Any excess insurance shall contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the Cit y, before the City’s own primary insurance or self -insurance shall be called upon to protect it as a named insured. Any insurance or self -insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of Contractor’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section 3.14 .2.2, any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.14.3.1.

3.14.3.2 Automobile Liability . (1) The City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by Contractor or for which Contractor is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbr oken chain of coverage excess of Contractor’s scheduled underlying coverage. Any insurance or self -insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of Contractor’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section 3.14 .2.2, any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.14.3.2.

3.14.3.3 Workers’ Compensation and Employer ’s Liability Coverage . The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by Contractor.

3.14.3.4 All Coverages. Each insurance policy required by this Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents and volunteers. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and volunteers, or any other additional insureds.

3.14.4 Builders’/All Risk Policy Requirements . The builders’/all risk insurance shall provide that the City be named as loss payee. In addition, the insurer shall waive all rights of subrogation against the City.

3.14.5 Separation of Insureds; No Special Limitations ; Waiver of Subrogation. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers. All policies shall waive any right of subrogation of the insurer against the City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, and shall require similar written express waivers and insurance clauses from each of its subcontractors.

3.14.6 Professional Liability Insurance. All architects, engineers, consultants or design professionals retained by Contractor shall also procure and maintain, for a period of five (5) years

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17 following completion of the Contract, errors and omissions liability insurance with a limit of not less than $1,000,000 per occurrence. This insurance shall name the City, its directors, officials, officers, employees, agents and volunteers as additional and insureds with respect to Work performed, and shall otherwise comply with all requirements of this Section. Defense costs shall be paid in addition to the limits.

3.14.7 Deductibles and Self -Insurance Retentions. Any deductibles or self -insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (2) the Contractor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

3.14.8 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City.

3.14.9 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Contract on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms supplied or approved by the City. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

3.14.10 Subcontractors. Contractor shall not allow any subcontractors to commence work on any subcontract relating to the work under the Contract until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. If requested by Contractor, the City may approve different scopes or minimum limits of insurance for particular subcontractors. The Contractor and the City shall be named as additional insureds on all subcontractors’ policies of Commercial General Liability using ISO form 20 38, or coverage at least as broad. In addition, Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

3.14.11 Reporting of Claims . Contractor shall report to the City , in addition to Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with the Work under this Contract.

3.15 Bond Requirements.

3.15.1 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Payment Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.15.2 Performance Bond. If specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Performance Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.15.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the effected bond within (ten) 10 days of receiving notice from City . In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City , and

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18 Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Contract until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the Total Contract Price is increased in accordance with the Contract, Contractor shall, upon request of the City , cause the amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City . If Contractor fails to furnish any required bond, the City may terminate the Contract for cause.

3.15.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be consider ed qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.16 Warranty. Contractor warrants all Work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the Work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or m aterials incorporated into the Work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Work or non-conformance of the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Work (or work of other contractors) damaged by its defective Work or which becomes damaged in the course of repairing or replacing defective Work.

For any Work so corrected, Contractor ’s obligation hereunder to correct defective Work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected Work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessar y to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City , regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City . In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Work and any work damaged by such work or the replacement or correction thereof at Contractor ’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.17 Employee/Labor Certifications.

3.17.1 Contractor’s Labor Certification. By its signature hereunder, Contractor certifies that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Work. A certification form for this purpose, which is attached to this Contract as Exhibit “D” and incorporated herein by reference, shall be executed simultaneously with this Contract.

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19 3.17.2 Equal Opportunity Employment . Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

3.17.3 Verification of Employment Eligibility . By executing this Contract, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subcontractors and sub- subcontractors to comply with the same. The City shall not be responsible for any costs or expenses related to Contractor’s compliance with the requirements provided for in Section 3.17 or any of its sub- sections.

3.18 General Provisions.

3.18.1 City’s Representative. The City hereby designates the Director of Public Works and Utilities or his or her designee, to act as its representative for the performance of this Contract (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.18.2 Contractor’s Representative. Before starting the Work, Contractor shall submit in writing the name, qualifications and experience of its proposed representative who shall be subject to the review and approval of the City (“′Contractor’s Representative”). Following approval by the City, Contractor’s Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Contract. Contractor ’s Representative shall supervise and direct the Work, using his best skill and attention, and shall be responsible for all construction means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Contract. Contractor’s Representative shall devote full time to the Project and either he or his designee, who shall be acceptable to the City, shall be present at the Work site at all times that any Work is in progress and at any time that any employee or subcontractor of Contractor is present at the Work site.

Arrangements for responsible supervision, acceptable to the City , shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor’s Representative, Contractor shall provide the information specified above and obtain the City’s written approval.

3.18.3 Termination. This Contract may be terminated by City at any time, either with our without cause, by giving Contractor three (3) days advance written notice. In the event of termination by City for any reason other than the fault of Contractor, City shall pay Contractor for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, City may terminate this Contract immediately without notice, may reduce payment to Contractor in the amount necessary to offse t City’s resulting damages, and may pursue any other available recourse against Contractor. Contractor may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Further, if this Contract is terminated as provided, City may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by Contractor in connection with its performance of this Contract. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. The City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Contractor shall not be entitled to payment for unperformed Work, including, without limitation, any overhead and profit on the portion of t he Work that is terminated and shall not be entitled to damages or compensation of any kind or nature for termination of Work.

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20 3.18.4 Contract Interpretation. Should any question arise regarding the meaning or import of any of the provisions of this Contract or written or oral instructions from City , the matter shall be referred to City’s Representative, whose decision shall be binding upon Contractor.

3.18.5 Anti-Trust Claims. This provision shall be operative if this Contract is applicable to California Public Contract Code Section 7103.5. In entering into this Contract to supply goods, services or materials, Contractor hereby offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract.

This assignment shall be made and become effective at the time the City tender final payment to Contractor, without further acknowledgment by the Parties.

3.18.6 Notices. All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:

CONTRACTOR:

DM CONTRACTING, INC.
1065 HARBER DRIVE
COLTON, CA 92324
ATTN: DAVID S. MAGANA, PRESIDENT

CITY:

CITY OF COLTON
650 NORTH LA CADENA DRIVE
COLTON, CA 92324
ATTN: CHAD BLAIS, DIRECTOR OF PUBLIC WORKS AND UTILITIES Any notice so given shall be considered received by the other Party three (3) days after deposit in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

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

3.18.8 Assignment Forbidden. Contractor shall not, either voluntarily or by action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by Contractor herein without the prior written consent of City. If Contractor attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to Contractor or its assignee or transferee.

3.18.9 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.18.10 Laws, Venue. This Contract shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Contract , the

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21 action shall be brought in a state or federal court situated in the County of San Bernardino, State of California.

3.18.11 Counterparts. This Contract may be executed in counterparts, each of which shall constitute an original.

3.18.12 Successors. The Parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.

3.18.13 Solicitation. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to terminate this Contract without liability.

3.18.14 Conflict of Interest. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to rescind this Contract without liability. For the term of this Contract, no director, official, officer or employee of City, during the term of his or her service with City , shall have any direct interest in this Contract, or obtain any present or anticipated material benefit arising therefrom. In addition, Contractor agrees to file, or to cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Work.

3.18.15 Certification of License.

3.18.15.1 Contractor certifies that as of the date of execution of this Contract, Contractor has a current contractor ’s license of the classification indicated below under Contractor ’s signature.

3.18.15.2 Contractors are required by law to be licensed and regulated by the Contractors’ State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Regist rar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California 95826.

3.18.16 Authority to Enter Contract. Each Party warrants that the individuals who have signed this Contract have the legal power, right and authority to make this Contract and bind each respective Party.

3.18.17 Entire Contract; Modification. This Contract contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Contract may only be modified by a writing signed by both Parties.

3.18.18 Non-Waiver. None of the provisions of this Contract shall be considered waived by either party, unless such waiver is specifically specified in writing.

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22 3.18.19 City’s Right to Employ Other Contractors . City reserves right to employ other contractors in connection with this Project or other projects.

3.18.20 Federal Provisions. When funding for the Work is provided, in whole or in part, by an agency of the federal government, Contractor shall also fully and adequately comply with the provisions included in Exhibit “G” (Federal Requirements) attached hereto and incorporated herein by reference (“Federal Requirements”). With respect to any conflict between such Federal Requirements and the terms of this Contract and/or the provisions of state law, the more stringent requirement shall control.
[Signatures on Next Page]

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23 SIGNATURE PAGE FOR CONSTRUCTION CONTRACT

BETWEEN THE CITY OF COLTON
AND DM CONTRCTING, INC.

IN WITNESS WHEREOF, the Parties have entered into this Contract as of the 21st day of October, 2025.

CITY OF COLTON DM CONTRCTING, INC.

A corporation]

By: ____________________________ By: _________________________ William R. Smith David S. Magana
City Manager President

Attest:

____ By: _________________________
Isaac T. Suchil
City Clerk

__Lic. No. 771187 – A, C-12, C8__________
Contractor’s License Number/Classification

_1000001550_______________
DIR Registration Number

Approved as to Form:

______________________________
Best Best & Krieger LLP
City Attorney

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24 EXHIBIT “A”

SERVICES / SCHEDULE

CONTRACT
25 EXHIBIT “B”
PLANS

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26 EXHIBIT “C”

SPECIAL CONDITIONS
ARTICLE 1. BONDS
Concurrently with this Contract, the Contractor shall deliver to the City four identical counterparts of the Performance Bond and Payment Bond on the forms supplied by the City and included as Exhibit “F” to the Contract. The surety supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the City . The Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total Contract Price.

LABOR CODE CERTIFICATION
27 EXHIBIT “D”

CERTIFICATION
LABOR CODE - SECTION 1861
I, the undersigned Contractor, am aware of the provisions of Section 3700, et seq., of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of the Code, and I, the undersigned Contractor, agree to and will comply with such provisions before commencing the performance of the Work on this Contract.

DM Contracting, Inc.

By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)

CONTRACTOR REGISTRATION CERTIFICATION
28 EXHIBIT “E”

PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/Public - Works/PublicWorks.html for additional information.

No bid will be accepted nor any contract entered into without proof of the contractor ’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work.

Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.
1 Name of Contractor:

DIR Registration Number:

DIR Registration Expiration:__________________________
Small Project Exemption: _____ Yes or _____ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further acknowledges:

1. Contractor shall maintain a current DIR registration for the duration of the project.

2. Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project.

3. Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non-responsive.

Name of Contractor:____________________
Signature:

Name and Title:

Dated:

1 If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project Exemption.”

PERFORMANCE BOND
29 EXHIBIT “F”

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Colton (hereinafter referred to as “City”) has awarded to ____________________, (hereinafter referred to as the “Contractor”) _______________________ an agreement for CDBG COLT-24-1-03K/0301–Target Area Alley and Sidewalk Improvements (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents ”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, _______________, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bo und unto the City in the sum of ___________________________ DOLLARS, ($____________), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements i n the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officers and agents, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during w hich time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City ’s rights or the Contractor or Surety ’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15.

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:

PERFORMANCE BOND
30 (1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety a nd the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract p rice” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City ’s objection to Contractor ’s further participation in the completion of the Project.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.

Remainder of This Page is Intentionally Left Blank

PERFORMANCE BOND
31 IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__).
(Corporate Seal)
Contractor/ Principal
By
Title

(Corporate Seal)
Surety
By
Attorney-in-Fact
Signatures of those signing for the Principal and Surety must be notarized and evidence of corporate authority attached. An original Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.

The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)

(Name and Address of Agent or
Representative for service of
process in California, if different
from above)

(Telephone number of Surety and
Agent or Representative for service
of process in California)

PERFORMANCE BOND
32 Notary Acknowledgment
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer

Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above

PAYMENT BOND
33 PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Colton (hereinafter designated as the “City”), by action taken or a resolution passed ___________ , 20 ____has awarded to ________________ hereinafter designated as the “ Principal,” a contract for the work described as follows: CDBG COLT-24-1-03K/0301–Target Area Alley and Sidewalk Improvements (hereinafter referred to as the “Project”), and
WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated __________________ (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW, THEREFORE, we, the Principal and __________________________, a corporation organized and existing under the laws of the State of _______________ and authorized to transact surety business under the laws of the State of California as Surety, are held and firmly bound unto City in the sum of ______________ Dollars ($___________) lawful money of the United States of America, the sum not being less than One Hundred Percent (100%) of the total amount of the Contract, for the payment of which sum well and tr uly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in su ch suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses.

This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

PAYMENT BOND
34 It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of paym ent or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.

The Remainder of this Page is Intentionally Left Blank

PAYMENT BOND
35 IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title

(Corporate Seal) Surety
By

Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. An original Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)

THE FOLLOWING INFORMATION IS MANDATORY
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________ ___________________________________________
___________________________________________
(Name and Address of Agent or ___________________________________________ Representative for service of
process in California, if different ___________________________________________ from above)
___________________________________________
(Telephone number of Surety and ___________________________________________ Agent or Representative for service
of process in California)

PAYMENT BOND
36 Notary Acknowledgment
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally

appeared , who proved to me on the basis of satisfactory

evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer

Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)

Signer(s) Other Than Named Above

FEDERAL REQUIREMENTS
37 EXHIBIT “G”

FEDERAL REQUIREMENTS

CDBG ATTACHMENT D
Community Development and Housing (CDH) – Construction Contract and Labor Compliance Provisions

Community Development and Housing
(CDH)

CONSTRUCTION CONTRACT

LABOR COMPLIANCE PROVISIONS
(Attachment D)

NOTICE TO BIDDERS

COUNTYWIDE VISION
The project(s) implemented with these funds assist in meeting an element of the Countywide Vision for sustainable infrastructures and housing as adopted by the County Board of Supervisors and San Bernardino County Transportation Authority on June 30, 2011.

PROJECT FUNDING SUBJECT TO FEDERAL PREVAILING WAG E REQUIREMENTS Bidders are advised that federal funds are being used for this project and that as a result, certain requirements are to be imposed , depending upon the source of the federal funds. Sour ces may include Community Development Block Grant (CDBG) funds, N eighborhood Stabilization Program (NSP) funds and/or HOME Investment Partnerships Program (HOME) funds. The utilization of these federal funds on a project will require the payment of federal prevailing wages under the Davis-Bacon and Related Acts (“DBRA”) (40 USC §3142, 40 USC §§ 276a- 276a-7, 29 CFR Part 5) , which will be enforced when the contract amount for the Prime Contract exceeds $2,000. The Prime Contractor is responsible for ensuring all Subcontractor(s) and lower tier Subcontractor(s) comply with DBRA. Also, Federal Labor Standards Provisions (HUD-4010) apply and are attached.

A copy of the Federal Prevailing Wage Decision, the date of which reflects the latest applicable modification at the time of the bid advertisem ent, shall be included. Bid ders shall be notified, via Addendum, of modifications, if any, which supersede that modification included herein, up until a minimum of ten days prior to the actual Bid Opening for this project. Bidder can obtain Davis-Bacon Act Wage Decision(s) at: https://sam.gov/content/home.

Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity - The bidder's attention is called to the "Equal Opportunity Clause” and "Standard Federa l Equal Employment Specifications" contained in the bid package. Goals and timetables for minority and female participation, expressed in percentage terms for the Contractor’s aggregate workforce in each trade on all construction work in the covered area, is 19% for minorities and 6.9% for women.

PROJECT FUNDING SUBJECT TO STATE PREVAILING WAGE REQUIREMENTS Bidder is advised and certify by bidding on this project that bidder (including any and all sub- contractors) is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq. as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” p rojects. Section 1720 of the California Labor Code states in part: “For purposes of this paragraph, ‘construction’ includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction including, but not limited to, inspection and land surveying wor k, regardless of whether any further construction work is conducted, and work performed during the post -construction phases of construction, including, but not limited to, all cleanup work at the jobsite.” If the Services/Scope of Work are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws , and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services/Scope of Work available to interested parties upon request and shall post copies at the Contractor’s principal place of business and at the project site. Contractor will also adhere to any other applicable requirements, including but not limit ed to, those regarding the employment of apprentices, travel and

subsistence pay, retention and inspection of payroll records, workers compensation and forfeiture of penalties prescribed in the Labor Code for violations. Contractor shall defend, indemnify and hold the County, its elected officials, officers, employees and agents free and harmless fro m a ny cla ims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with Prevailing Wage Laws.

Upon request by bidd er a copy of the Director’s General Prevailing Wage Determination(s), the date of which reflects the latest applicable modification at the time of this bid advertisement will be furnished. Bidders shall be notified, via Addendum, of modifications, if any, which supersede that wage determination. Bidder can obtain a copy of the Director’s General Prev ailing Wage Determination(s) at: http://www.dir.ca.gov/OPRL/dprewagedetermination.htm.

PROJECT(S) SUBJECT TO FEDERAL AND STATE PREVAILING WAGE REQUIREMENTS When the project(s) is subject to both the State (CA) and Federal (Davis-Bacon) prevailing wage rate laws, and when federal funds trigger prevailing wage requirements as determined under the Davis Bacon Act, the higher of the two, the State prevailing wage rate and the Davis-Bacon (federal) wage rate and the most restricted prevailing wage regulation(s) will apply to each job classification, and the project(s), unless applicable law requires otherwise.

TABLE OF CONTENTS

• CONSTRUCTION CONTRACT PROVISIONS – DEFINITIONS
• L ABOR COMPLIANCE REQUIREMENTS
• R EQUIRED DOCUMENTS (including eDocuments)
• F EDERAL LABOR STANDARDS PROVISIONS (HUD 4010)
• SECTION 3 24 CFR 75 PART, SUBPART A-D
• AFFIRMATIVE ACTION COMPLIANCE GUIDELINES FOR CONSTRUCTION AND

NON-CONSTRUCTION CONTRACTORS
• EQUAL OPPORTUNITY CLAUSES
• CERTIFICATION OF COMPLIANCE WITH AIR AND WATER ACTS
• SAMPLE DOCUMENTS
• DAVIS-BACON WAGE DETERMINATION

CONSTRUCTION CONTRACT PROVISIONS - DEFINITIONS
The following are definitions of State and federal provisions/documents for federally-assisted projects.

NOTE: Please refer to the “Required Documents” table for any document s to be completed and submitted for this project. The term “Contractor” or “Contractor’s” are used throughout this document and may refer to the Prime Cont ractor, S ubcontractor and/or lower tier Subcontractor. See the “Required Documents” table for information on which Contractor(s) are required to submit each document.

Affirmati
ve Action Compliance Guidelines f or Construction or Non -Construction Contractors – Generally, affirmative action requirements apply to contracts and subcontracts in excess of $10,000. This document provides gui delines to assist all Contractors, as identified on the “Required Documents” table, meet affirmative action and Equal Employment Opportunity requirements set forth in f ederal regulations 41 CFR 60.

Affirmative Action Compliance Form For Construction Contracts Over $10,000 (LCF DB16- 2.2) – eDocument affirming all Contractors, as identified on the “Required Documents ” table, understand ing and implementation of Affirmative Action Compliance requirements.

Authorization For Payroll Deduction(s) (LCF 16- 1.4) – eDocument signed by any employee of the Contractor, as identified on the “Required Documents” table, who has “Other/Garnish” payroll deduction.

Bid Bond − A bid guarantee of at least 10% of the contract price is required from each bidder and must be submitted with the Bid.

Business Certification – Business certification includes Disadvantaged Business Enterprise ( DBE) - Disadvantaged Veteran Business Enterprise (DVBE) – Local Business Enterprise (LBE) – Minority Business Enterprise (MBE) – Small Business Enterprise (ESBE) – Women Business Enterprise (WBE).

Certificate of Owner’s Attorney − This certificate is to be completed by the owner’s att orney w hen applicable.

Certificate of Understanding and Authorization Form (LCF 16- 1.2) – eDocument signed by all Contractors, as identified on the “Required Documents” table, certifying the most current “Davis-Bacon Labor Standards” has been read and understood.

Certification of Bidder Regarding Equal Employment Opportunity (LCF DB16 -2.1) – eDocument certification required by all Contractors, as identified on the “Required Documents” table, by federal regulations (41 CFR 60).

Certification of Compliance w ith Air a nd Water Acts − All Contractors, as identified on the “Required Documents” table, must comply with this certification when the contract exceeds $100,000.

Checklist of Labor Law Requirements (LCF CA16- 3.1) – eDocument signed by al l Contractors, as identified on the “Required Documents” table, acknowledging awareness of the applicable labor law requirements.

Contractor’s Certification of Compliance with Davis- Bacon and Related Acts (LCF DB16- 2.0) – eDocument certification required by all Contractors, as identified on the “Required Documents” table, by federal law (29 CFR 5).

Davis-Bacon Act Wage Decision − The Davis -Bacon Act Wage Decision contains the wage rates for construction projects within San Bernardino County. A copy of the Davis -Bacon Act Wage Decision is

included in the bid package and can also be found at h ttps://www.sam.gov/portal/public/SAM/. The wage decision that applies to the project is the one in effect ten days prior to the bid opening date.

eDocuments – Labor com
pliance documents required to be submitted by all Contractors, as identified on the “Required Documents” table, electronically prior to Certified Payroll submission. Each eDocument is listed by name in the definitions herein.

Equal Employm ent Opportunity Clauses/Equal Employment Opportunity Construction Cont ract Provisions − These provisions are to be inserted in all applicable federally assisted contracts and subcontracts.

E-signature Authorization (LCF 16- 1.0) – eDocument signed by an owner, partner, executive officer, and all duly authorized “Designee” employee(s) of all Contractors, as identified on the “Required Documents” table, who have authority to enter into agreements on behalf of C ontractor and who will be uploading eDocuments and/or certified payroll records (CPR)s into LCPtracker. This document must be notarized with an “Acknowledgment” form and will be valid for a period of one (1) calendar year from the signature date.

Federal Labor Standards Provisions (HUD -4010 form ) − These prov i sions set forth the federal labor
requirements for Contractors working on federally assisted construction projects in which the prime contract exceeds $2,000. Contractor s are required to pay their laborers and mechanics working onsite a wage as specified in the FEDERALLY FUNDED PROJECTS section of this provision. The Prime Contractor is responsible to include the Labor Compliance Contract Addendum in all executed Subcontractor/Sub- Tier contracts for the project(s).

Fringe Benefit S t
atement ( LCF 16- 1.3) – eDocument signed by all Contractors , as identified on the “Required Documents” table, identifying bona fide Fringe Benefits in which their employees are participating.

Labor and Materials Bond − This payment bond guarantees that employees/ Subcontractors, and suppliers are paid for services rendered and materials supplied. The Labor and Materials Bond must be at least 100% of the contract price and must be submitted to the CITY/COUNTY upon award of the contract.

LCPtracker – County Community Development and Housing Department ( CDH)’s O nline Certified Payroll System.

Performance Bond − This bond guarantees the Contractor 's performance under the terms of the construction contract and must be at least 100% of the contract price and submitted to t he CITY/COUNTY following award of the contract.

Project Wage Rate Sheet (LCF 16-1.1) – eDocument used by all Contractors, as identified on the “Required Documents” table, to list all labor classifications and wage rate (s) applicable for the project to be set up in LCPtracker for CPR submittal.

Section 3 (24 CFR Part 75, Subpart A -D) − This law applies to all housing rehabilitation, hou sing construction and other public construction projects contract exceeding $20 0,000 o r more of housing and community development financial assistance from one or more U.S. De partment of Housing and Urba n Development (HUD) programs.

Section 3 Resource Participation Certificate (LCF DB16-2.4) – eDocument to certify that all Contractors, as identified on the “Required Documents” table, have read the County’s Section 3 Plan and contacted the resources provided for information on participating in the program.

Section 3 Actions and Outcomes (LCF DB16-2.5) – eDocument signed by all Contractors, as identified on the “Required Documents” table, to certify how the Contractor will implement Section 3 hiring practices for the project.

LABOR COMPLIANCE REQUIREMENTS

Project Bidding

1. Borrower, Prime Contractor, Subcontractor, and every Sub-Tier contractor shall include this CONSTRUCTION CONTRACT LABOR COMPLIANCE PROVISIONS (Attachment D) in a ll bid documents for Prime Contractor(s), Subcontractor(s) and every Sub-Tier contractor(s) and must clearly state the appropriate prevailing wage rate(s) ( i.e., Federal, State, commercial and/or residential and the date of the appropriate wage schedule) for the project(s).

Construction

1. Borrower, Prime Contractor, Subcontractor, and every Sub -Tier contractor shall include the D avis Bacon/California LABOR COMPLIANCE CONTRACT ADDENDUM (DB/CA LCCA) attachment and must clearly state the appropriate prevailing wage rate(s) ( i.e., Federal, State, commercial and/or residential and the date of the appropriate wage schedule) for the project(s) in every executed agreement (i.e. , contract, purchase order, on-call, etc.) on the project(s).

2. Borrower shall ensure that the Prime Contractor, prior to accepting prospecti ve Subcontractor(s) bid(s) and any Subcontractor accepting prospective lower tier Subcontractor(s) bid(s), has confirmed that each Subcontractor’s and lower tier Subcontractor bid is based on the appropriate prev ailing wage rate(s) and the correct job classifications for the work to be performed on the project(s) under the subcontract.

3. Prime Contractor, Subcontractor, and every lower tier Subcontractor shall maintain c opies of their executed contract(s) for the project(s) and shall provide to CDH a copy of such executed contract(s) upon request within no more than three (3) business days.

4. Prior to construction start, CDH will conduct a mandatory Labor Compliance Pre-Construction Meeting(s).

Prime Contractor, Subcontractor, and every lower tier Subcontractor working on the project(s) shall have, in attendance from their office, a representative responsible for managing the duties of prevailing wage labor compliance. Items to be discussed include, but are not limited to , Federal and State labor law requirements applicable to the project(s), prevailing wage requirements, respective record- keeping responsibilities, the requirement for submittal of certified payroll records to CDH, compliance documents and the prohibition ag ainst discrimination in employment, required signage, sign- in sheets/daily logs , contract language, WMBE reporting, employee reporting, possible audits, etc. The meeting will be canceled and rescheduled if Prim e Contractor, Subcontractor, and /or every lower tier Subcontractor working on the project(s) representative responsible for managing the duties of prevailing wage labor compliance fail to attend the meeting unless authorized to do so by CDH in writing prior to the meeting.

5. Prime Contractor shall maintain at project site(s) daily log/sign-in sheets. Daily log/sign-in sheets shall be separated by company . S heets shall be written in English and Spanish (and other languages, as appropriate) and shall include CDH and any project labor consultant nam e and phone number of the current wage monitor, for any worker to contact if there are any questions or concerns about their wages or any other concerns about the project. Prime Contractor shall enforce that all workers employed on site must sign in at the job site daily including time-in, time-out and lunch period (including any applicable travel time to and from project site) . The workers must identify the P rime Contractor, Subcontractor and any lower tier Subcontractor for whom they are working and thei r job class ification. Daily log /sign-in sheets shall be emailed to CDH no more than seven (7) days from the end of the scheduled project work week. If requested in writing by CDH, Prime Contractor shall provide to CDH any requested daily log/sign-in sheet copies within no more than three (3) business days of request. Workers who are subject to split-classifications during their tour of duty on the project(s) site shall edit the daily log/s ign-in sheets on day’s worker duties triggered split -classifications assignment to reflect their actual hours worked in each classification.

6. Prime Contractor, Subcontractor, and every lower tier Subcontractor shall complete in its entirety a Project ID Card for each worker employed on the worksite of the project(s). The Project ID Card shall be completed within five (5) days of execution of contract award for project(s) or before worker(s) begins employment on the project(s) site. The Project ID Card template shall be downloaded from LCPtracker.

Prime Contractor, Subcontractor, and every lower tier S ubcontractor may use an equivalent Project ID form if approved by CDH in advance and in writing. Prime Contractor, Subcontractor, and every lower tier Subcontractor shall be responsible for furnishing and requiring each worker employed on the worksite to have in possession and/or display such identification card as may be approved and directed by CDH or its designee. Any worker(s) employed on project (s) site found to be without their Project ID Card may be removed from site until Project ID Card is rest ored. Any Prime Contractor, Subcontractor , and every lower tier Subcontractor who falsifies information on a Project ID Card and/or knowingly reports incorrect information regarding a worker employed on p roject(s) site shall be di smissed and removed from t he project and barred from conducting f urther business on the project. Workers need to consider wearing heavy duty ID card holders, as they work in extremely physical environments.

7. CDH and/or its des
ignee shall conduct employee interviews and Prime Cont ractor, Subcontractor, and every lower tier Subcontractor agrees to have their employees interviewed for the purposes of prevailing wage compliance. Employee interviews should be conducted at a frequency and number sufficient to establish the degree of adequacy and accuracy of the CPR, and the nature and extent of any violations.

They should also be representative of all classifications of employees on the project. (29 CFR 5.6 (a) (3)).

In doubtful compliance situations, int erviews with former emplo yees may be appropriate. Employee interviews are intended to be private from their employer and Prime Contractor agrees allow CDH and/or its designee to conduct such interviews. Each employee should be informed that the information given is confidential, and that his/her identity will not be d isclosed to the employer without the employee’s written permission. CDH and/or its designee shall conduct at least one set of wage interviews with a representative group of workers during the project construction (PWRB 2013, Investigative Procedures Under Davis Bacon Related Act/Contract Work Hours and Safety Standards Act ). CDH and/or its designee must conduct additional interviews if there is any reason to suspect a C ontractor or their Subcontractor is at risk for violating wage requirements. As provided in 29 CFR 5.6(a)(5 ), all interviews must be conducted in confidence.

8. As permitted by D epartment of Labor, HUD, projects subject to DBRA and Title 8, section 16404 of the California Code of Regulations, allows Prime Contractor, S ubcontractor and every lower tier Subcontractor to submit a weekly CPR electronically. Prime Contractor, Subcontractor, and every lower tier Subcontractor agrees to use LCPtracker and shall submit weekly CPR’s as required during the term of construction on the proj ect(s).

LCPtracker is a web -based software CDH utilizes to collect, verify and manage prevailing wage certified payrolls and related labor compliance documentation.

Prime Contractor, Subcontractor and every Sub -Tier shall submit, via electronic submission, documents as requi red b y CDH, which may include, but is not limited to Certified P ayroll Records ( CPR)s, Statements of Compliance and other required documents. Prime Contractor, Subcontractor and every Sub-Tier and/or their designee shall sign the E(Electronic )-Signature Authorization Agree ment, which must be notarized w ith an “Acknowledgment”, and establish a Personal Identification Number ( PIN), on LCPtracker. Prime Contractor, Subcontractor and every Sub- Tier will electronically sign , by use of their established PIN, all documents requiri ng a signature that are submitt ed to CDH via LCPtracker. Prime Contractor, Subcontractor and every lower tier Subcontractor agree that their PIN, once established on LCPtracker, constitutes their electronic signature and understands that any information an d documents submitted using their PIN is electronically certifying their signature. Prime Contractor, Subcontractor and every lower tier Subcontractor understand that they are legally bound, obligated, and responsible by use of their PIN/electronic signature as much as would be by their handwritten signature.

9. To meet labor compliance requirements, CDH requires that each Prime Contractor, Subcontractor, and every lower tier Subcontractor agrees to complete and submit all require d eDocuments on LCPtracker.

All eDocuments are ac cessed, submitted and approved through LCPtracker. All eDocuments are submitted through CDH’s Online Certified Payroll System using a PIN . If requested in writing by CDH, Prime Contractor, Subcontractor, and every lower tier Su bcontractor shall provide to CDH any additional requested compliance documentation within no more than three (3) business days of request.

One of the documents that will be required to be uploaded in LCPtracker as part of the eDocuments, is a City business license or a letter stati ng the reasons why no business license is required. All contractors performing work on a project site located within an incorporated city must possess or obtain that city’s business license. However, if the project is located i n an unincorporated area of the County, and the contractor’s business is located in an incorporated city, the contractor must possess or obtain a business license within the city where their business is located. An e xception to the business license requirement will be aA letter explaining the exception to the business license requirement, if the contractor’s business and the project work site are both located in an unincorporated area of the County.

Prime Contractor, Subcontractor, and every lower tier Subcontractor agree to do the following on project(s):

A. Submit a hard copy of the Electronic Signature Authorization form within five (5) working days of executed contract - to establish a Personal Identification Number (PIN)) Form must be completed and signed by a company owner, partner, executive officer or designee (if applicable) before a contractor may establish a PIN and electronically sign documents online.

B. Complete Project ID cards as specified.

C. Submit required eDocuments online within ten (10) working days of executed contract.

D. Submit *non-required eDocuments and other documentation online as specified.

E. Submit CPRs online within ten (10) working days of the work week’s ending date.

F. Submit one CPR online per project, per week.

G. Report all workers, including owners, partners and superintendents, who were onsite.

H. All contractors must submit CPRs online from the start of the project until the time that they finish their work on the project.

I. All contractors must submit a Statemen t of No n-Performance online to certify that no work was performed by their company for any week of the project they are not working.

J. All contractors must submit a final CPR online for the last week they are working on-site.

K. All contractors must pay every worker on a weekly basis (if applicable).

L. All CPRs must indicate check number or direct deposit transaction number.

(*Non-required eDocuments are those eDocuments which are not mandatory per LCPtracker; however, which may be required for a particular job on a case-by-case basis as specified.)

REQUIRED DOCUMENTS

DOCUMENT QUICK REFERENCE
Document Name/Number
Prime Contractor – Due prior to Pre-Construction Conference Executed Contract/Purchase Order (FLCCA and/or SLCCA must be attached) Bonds (Performance/payment or labor and material bonds) Prime/Subcontractor – Due prior to Start of Work
Contractor Information Form2 (LCF 16-100)
Copy of all executed Sub-Contractor contracts (FLCCA and/or SLCCA must be attached) 2 Business Certification (LCF 16-SAM 2) 2
E-Signature Authorization Annual Form (Must be notarized) (LCF 16-1.0) 2 Affirmative Action Compliance Form for Construction Contracts over $10,000 (LCF DB16-2.2)*3 Affidavit of Compliance with California Prevailing Wage Law (LCF CA16-3.4) 5 Apprentice and Trainees Acknowledgement (LCF 16-XX) 4
Certification of Bidder Regarding Equal Opportunity (LCF DB16-2.1)*3 Certification of Understanding and Authorization Form (LCF 16-1.2)*3|4 Checklist of Labor Law Requirements (LCF CA16-3.1) 5
City Business License/Exception Letter2
Contractor’s Certification of Compliance with Davis-Bacon and Related Act Requirements (LCF DB16-2.0)*3 Fringe Benefit Statement Form (LCF 16-1.3)* 4
Labor Compliance Contract Addendum – LCCA2
Project Wage Rate Sheet*2(LCF -16-1.1)
Public Works Contract Award Information (DAS 140) (LCF CA16-3.2) 5 Request for Dispatch of an Apprentice (DAS 142) (LCF CA16-3.3) 5 Section 3 Actions and Outcomes (LCF DB16-2.5) 3
Section 3 Resource Participation Certificate (LCF DB16-2.4)3 Section 3 Business Certification (LCF DB 16-2.6)
Section 3 Worker/Targeted Worker Eligibility Form (LCF DB 16-2.7) Section 3 Cumulative Report (LCF DB 16-2.8)
Prime/Subcontractor – Due Progression of Work – Weekly
Authorization for Payroll Deduction (LCF 16-1.4)*3
Department of Industrial Relations – Apprentice Certification (LCF 16-SAM 5) 5 Department of Labor Apprenticeship Certification (LCF 16-SAM 4)* 3 Apprenticeship Program Appendix A*3
Prime/Subcontractor – Due Progression of Work – Monthly Training Fund Contribution (LCF 16-SAM 8) 4|5
DIR – eCPR Submission Confirmation (LCF 16-SAM 9) 5
Ready-Mix Concrete Driver Certified Time Record (LCF 16-SAM 10)5 Prime/Subcontractor – Due Progression of Work – As Needed C-10 Electrical Certification /Electrical Trainee (LCF 16-SAM 11)5 Employee CPR Certified Documentation1|2
*These forms are located on the LCPtracker online database discussed in, “Electronic Submission of Certified Payrolls” section and will be discussed by County CDH staff at the preconstruction conference. 1 If applicable to contractor
2 Applies to all regardless of Funding
3 Federal Funds ONLY (Davis-Bacon)
4 Federal and State Funds
5 State Funds ONLY

STATE PREVAILING WAGE REQUIREMENTS
A. All or a portion of the Scope of Wor k in the Contract or Purchase Order (as applicable) requires the payment of prevailing wages and compliance with the following requirements. (1) Determination of Prevailing Rates
Pursuant to Labor Code sections 1770, et seq., the County has obtained from the Director of the Department of Industrial Relations (DIR) pursuant to the California Labor Code, the general prevailing rates of per diem wages and the prevailing rates for holiday and overtime work in the locality in which the Scope of Work is to be performed. Copies of said rates are on file with the County, will be made available for inspection during regular business hours, may be included elsewhere in the specifications for the Scope of Work, and are also available online at www.dir.ca.gov. The wage rate for any cl assification not listed, but which may be required to execute the Scope of Work, shall be commensurate and in ac cord with spe cified rates for similar or comparable classifications for thos e performing similar or co mparable duties. In accordanc e with Labor Code section 1773.2, the Contractor shall post, at appropriate and conspicuous locations on the jobsite, a schedule showing all applicable prevailing wage rates and shall comply with the requirement s of Labor Code sections 1773, et seq.
(2) Payment of Prevailing Rates
Each worker of the Contractor, S ubcontractor, lower tier Subcontractor engaged in the Scope of Work, s hall be paid not less than the general prevailing wage rate, regardless of any contractual relationship which may be alleged to exist between the Contracto r, Sub contractor, lower tier Subcontractor and their respective worker(s). California law prohibits the use of credits for Employer Payments to reduce the obligation to pay the hourly straight time or overtime wages specified as the Basic Ho urly Rate in the general prevailing wage determination.
(3) Prevailing Rate Penalty
The Contractor shall, as a penalty, forfeit two hundred dollars ($200.00) to the County for each calendar day or portion thereof, for each worker paid less than the prevailing rates as dete rmined by the Director of the DIR for such work or craft in which such worker is employed by the Cont ractor, Subcontractor or lower tier Subcontractor in connection with the Scope of Work. Pursuant to California Labor Code section 1775, the difference between such prevailing wage rates and the amount paid to each worker for each calendar day, or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Prime Contractor, Subcontractor or lower tier Subcontractor. (4) Ineligible Contractors
Pursuant to the provisions of Labor Code section 1777.1, the Labor Commissioner publishes and distributes a list of contractors ineligible to perform work as a Prime C ontractor, S ubcontractor, or lower tier Subcontractor on a public works project. This list of debarred contractors is available from the DIR website at http://www.dir.ca.gov/Public -Works/PublicWorks.html. Any contract entered into between a Prime Contractor and a debarred subcontractor is void as a matter of law. A debarred S ubcontractor may not receive any public money for performing work as a S ubcontractor on a public works contract, and any public money that may have been paid to a debarred Subcontractor by a Prime Contractor on the project s hall be returned to the County. The Prime Contractor shall be responsible for the payment of wages to work ers of a debarred Subcontractor or lower tier Subcontractor who has been allowed to work on the Scope of Work. (5) Payroll Records
Pursuant to California Labor Code section 1776, the Prime Contractor, S ubcontractor, and lower tier Subcontractor shall keep accurate certified payroll records showing the name, address, social security number, work classification, straight time and overtime hours worked each d ay and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by them in connection with the Scope of Work. Each payroll record enumerated herein shall contain or be verified by a

written declaration that it is made under penalty of perjury stating both of the following: (1) the information contained in the payroll record is true and correct and (2) the Prime Contractor, Subcontractor, or lower tier Subcontractor has complied with the requir ements of California Labor Code sections 1771, 1811, and 1815 for a ny Scope of Work performed by his o r her employees. The payroll records shall be available for inspection at all reasonable hours at the principal office of the Prime Contractor on the following basis:

(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to such employee or his/her authorized representative on request; (2) A certified copy of all payroll records shall be made available for inspe ction or furnished upon request to the County or the Division of Labor Standards Enforcement of the DIR; (3) A certified copy of payroll records shall be made available upon request to the public for inspection or copi es thereof made; provided, however, that a request by the public shall be made through either the County or the Division of Labor Standards Enfor cement. If the re quested payroll records have not been previously provided to the County or the Division of La bor Standar ds Enforcement, the requesti ng party shall, prior to being provided the records, reimburse the cost of preparation by the Prime Contractor, Subcontractor, or lower tier Subcontractor and the entity through which the request was made. The public shall not be given access to such records at the principal office of the Prime Contractor;
(4) The Prime Contractor shall file a certified copy of the payroll records with the entity that requested such records within ten (10) days after receipt of a written request; and (5) Copies provided to the publ ic, by th e C ounty or the Division of Labor Standards Enforcement shall be marked or obliterated to p revent disclosure of an individual's name, address and social security number. The name and address of the Prime Contractor, Subcontractor, or lower tier Subcontrac tor performing a part of the Scope of Work shall not be marked or obliterated . The Prime Contractor shall inform t he County of the location of payroll records, including the street address, city and county and shall, within five (5) working days, provide a notice of a change of location and address.

The Prime Contractor shall have t en (10) days from receipt of the written notice specifying in what respects they must comply with the above requirements. In the event Prime Contractor does not comply with the requirements of this section within the t en (10) day period, the Prime Contractor shall, as a penalty to the County, forfeit one-hundred dollars ($100.00) for each calendar day, or portion thereof, for each worker, unt il strict c ompliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, such penalty shall be wit hheld from any portion of the payments then due or to become due to the Prime Contractor.
(6) Limits on Hours of Work
Pursuant to California Labor Code section 1810, eight (8) hours of labor shall constitute a legal day's work.

Pursuant to California Labor Code section 1811, the time of service of any worker employed at any time by the Prime Contractor, Subcontractor, or lower tier Subcontractor, upon the Scope of Work or upon any part of the Scope of Work, is limited and restricted to eight (8) hours during any one calendar day and forty (40) hours during any one calendar week, except as provided for under Labor Code section 1815.

Notwithstanding the foregoing provisions, work performed by employees of the Prim e Contractor , Subcontractor, or lower tier Subcontractor in excess of eight (8) hours per day and forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day at not less than one and one-half (1½) times the basic rate of pay. (7) Penalty for Excess Hours
The Prime Contractor shall pay to the County a penalty of twenty -five dollars ($25.00) for each worker employed on the S cope of W ork by the Prime Contractor, Subcontractor, or lower tier Subcontractor for

each calendar day during which such worker is required or permitted to work more than eight (8) hours in any calendar day and forty (40) hours in any one cal endar week, in violation of the provisions of the California Labor Code, unless compensation to the worker so employ ed by the Prime Contractor , Subcontractor or lower tier Subcontractor is not less than one and one- half (1½) times the basic rate of pay for a ll hours worked in excess of eight (8) hours per day.
(8) Senate Bill 854 (Chapter 28, Statutes of 2014) Requirements:
1) Prime Contractor, Subcontractors and lower tier Subcontractors shall comply with Senate Bill 854 (signed into law on June 20, 2014). The requirements include, but are not limited to, the following:

a. No Prime Contractor, Subcontractor, or lower tier Subc ontractor may be listed on a bid proposal for a public works project unless registered with the DIR pursuant to Labor Code section 1725.5, with limited exceptions from this requir ements for bi d purposes only as allowed under Labor Code section 1771.1(a).
b. No Prime C ontractor, Sub contractor, or lower tier Subcontractor may be awarded a contract for public work or perf orm work on a publi c works p roject unless registered with the DIR pursuant to Labor Code section 1725.5.
c. This project is subject to compliance monitoring and enforcement by the DIR. d. As required by the DIR, Prime Contractor is required to post job site notices, as prescribed by regulation, regarding compliance monitoring and enforcement by the DIR. e. Prime Contractor, Su bcontractors, and lower tier Subcontractors must submit certified payroll records online to the Labor Com missioner for all public works proj ects, new or ongoing, on or after January 1, 2016.
a. The certified payroll must be submitted at least monthly to the Labor Commissioner. b. The County res erves the rig ht to require Prime Contractor, Subcontractors, and lower t ier Subcontractor to submit certified payroll records more frequently than monthly to the Labor Commissioner.
c. The certified payroll records must be in a format prescribed by the Labor Commissioner.

2) Labor Code section 1725.5 states the following:

A Prime Contractor, Subcontractors, and lower tier Subcontractors shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract th at is subject to the requirements of this chapter. For the purposes of this section, "contractor" includes a subcontractor as defined by Section 1722.1.
(a) To qualify for registration under this section, a Prime Contractor shall do all of the following:
(1) Beginning July 1, 2014, r egister with the Department of Indust rial Relations in the manner prescribed by the Department and pay an initial nonrefu ndable application fee of four hundred dollars ($400) to qualify for registration under this section and an annual renewal fee on or be fore July 1 st of each year thereafter. The annual renewal fee shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration and renewal fees may be adjusted no more than annually by t he Director t o support the cos ts specified in Section 1771.3.
(2) Provide evidence, disclosures, or releases as are necessary to establish all of the following:
(A) Workers' Compensation coverage that meets the requirem ents of Division 4 (commencing with Section 3200) and includes sufficient coverage for any worker whom t he Prime C ontractor, Subcontractor or lower tier Subcontractor employs to

perform work that is subject to prevailin g wage requirements other than a cont ractor who is separately registered under this s ection. Coverage may be evidenced by a current and valid certificate of W orkers' Compensation Insurance or certification of self-insurance required under Section 7125 of the Business and Professions Code. (B) If applicable, the Prime C ontractor, Subcontractor , or lower tier Subcontractor is licensed in accordance with Chapter 9 (commencing with Section 7000) of the Business and Professions Code.
(C) The Prime C ontractor, Subcontractor or Sub-T ier does not have any delinquent liability to an e mployee or t he state for any assessment of back wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination by a court or any federal, state, or local administrative agency, including a confirmed arbitration award. However, for purposes of this paragraph, the contractor shall not be disqualified for any judgment, order, or determination that is under appeal, pro vided that the contractor has secured the payment of any amount eventually found due through a bond or other appropriate means. (D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law providing for the debarment of contractors from public works. (E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the performance of a contract for public works without being lawfully registered in accordance with this sect ion, within the preceding 12 months or since the effective date of the requirements set forth in subdivision (e), whichever is earlier.

If a contractor is found to be in violation of the requirements of this paragraph, the period of disqualification shall be waived if both of the following are true:
(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within the preceding 12 months. (ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000).
(b) Fees received pursuant to this section shall be deposited in t he State Public Wo rks Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before the expi ration of any prior period of registration shall be prohibited from bidding on , or engaging in the performance of, any contract for public works until once again registered pursuant to this section. If the failure to pay the renewal fee was inadvertent, the contractor may r enew its registration retroactively by paying an additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the due date of the renewal fee. (d) If, after a body awarding a contract accepts the contractor's bid or awards the contract, the work covered by the bid or contract is determined to be a public work to which Section 1771 appl ies, either as the result of a determination by the director pursuant to Section 1773.5 or a court deci sion, the requirements of this section shall not apply, subject to the following requirements:
(1) The body that awarded the contract failed, in the bid specif ication or in the contract documents, to identify as a public work that portion of the work that the determination or decision subsequently classifies as a public work.
(2) Within 20 days following service of notice on the awarding body of a determ ination by the Director of Industrial Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work as defined in this chapter, the contractor and any subcontractors

are registered under this section or are replaced by a contractor or subcontractors who are registered under this section.
(3) The requirements of this section shall apply prospectivel y only to any subsequent bid, bid proposal, contract, or work performed after the awarding body is served with notice o f th e determination or decision referred to in paragraph (2) of this subdivision. (e) The requirements of this section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for public work, as defined in this chapter, entered into on or after April 1, 2015. 3) Labor Code section 1771.1 states the following:
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid 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 curr ently reg istered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to subm it a bid that is authorized by Section 7029.1 of the Business and Profes sions 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 at the time the contract is awarded. (b) Notice of the requirement described in subdivision (a) shall be included in all bid invita tions and public works contracts, and a bid shall not be accepted, nor any contract or subcontract entered into without proof of the contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5.
(c) An inadvertent error in lis ting a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or g rounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5.
(3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding authority, to substitute a subcontractor who is registered to perform public wo rk pursuant to Section 1725.5 in place of the unregistered subcontractor. (e) T he department shall maintain on its In ternet Web site a list of contractors who are cu rrently registered to perform public work pursuant to Section 1725.5. (f) A contract entered into with any contractor or subcontractor in violation of subdivision (a) shall be subject to cancellation, provided that a contract for public work shall not be unlawful, void, or voidable solely due to the failure of the awarding body, cont ractor, or any subcontractor to com ply with the requirements of Section 1725.5 or this section.
(g) If the Labor Commissioner or his or her designee determines that a contract or or subcontract or engaged in the performance of any public work contract without having been registered in accordance with this section, the contractor or subcontractor shall fo rfeit, as a civil penalty to t he state, one hundred dollars ($100) for each day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of eight thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of su bparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5(h).

(h)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher tiered public works contractor or subcontractor who is found to have entered into a subcontract with an unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section 1725.5 or this section shall be subject to forfeiture, as a civil penalty t o the state, of one hundred dollar s ($100) for each day the unregistered lower tier subcontrac tor performs work in violation of the registration requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000).
1) The Labor Commissioner shall use the same standards s pecified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and may waive the penalty for a first time violation that was unintentional and did not hinder the Labor C ommissioner’s ability to monitor and en force compliance with the requirements of this chapter.
2) A higher tiered public works contractor or subcontractor shall not be liability for penalties assessed pursuant to paragraph (1) if the lower tier subcontractor’s performance is in violation of the requirements of Se ction 1725.5 due to the revocation of a previously approved registration.
3) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works contractor or subcont ractor p ursuant to paragraph (1). A higher tiered public works contractor or subcontractor may not require a lower tiered subcontractor to indemnity or otherwise be liable for any penalties pursuant to paragraph (1).

(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalt y assessment, in accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) and subparagraph (B) of paragraph (1) of subdiv ision (h). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742. The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Artic le 1 (comm encing with Section 1720) and Article 2 (commencing with Section 1770), shall apply.

(j) (1) Where a contract or or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of Sectio n 1725.5 or this section, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcont ractor on all public works until the unr egistered contractor or unregistered subcontr actor is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public work.

2) A stop order may be personally served upon the contractor or subcontractor by either of the following methods:
a) Manual delivery of the order to the contractor or subcontractor personally. b) Leaving signed copies of the order with the person who is apparently in charge at the site of the public work and by thereafter mailing copies of the order by f irst class mail, postage prepaid to the contractor or subcontractor at one of the following:

a. The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors’ State License Board.

b. If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors’ State License Board, the address of the site of the public work.

3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contr acting with the unregistered cont ractor or su bcontractor, by the unregistered

contractor or subcontractor, or both. The appeal, hearing, and any further review o f the hearing decision shall be governed by the procedures, time limits, and other requirement s specified in subdivision (a) of Section 238.1.

4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage r ate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed 10 days.

(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or subcontractor to obser ve a stop order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both.

(l) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for public work entered into on or after April 1, 2015. This section shall also apply to the performance of any public work, as defined in this chapter, on or after Januar y 1, 2 018, regardless of when the contract for public work was entered.

(m) Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section.

(n) This section shall not apply to work performed on a public works project of twenty- five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performe d on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

4) Labor Code section 1771.4 states the following:
(a) All of the following are applicable to all public wor ks projects that are other wise s ubject to the requirements of this chapter:
(1) The call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. (2) The awarding body shall post or requir e the prime contractor to post job site notices, as prescribed by regulation.
(3) (A)Each contractor and subcontractor shall furnish the records specified in Section1776 directly to the Labor Commissioner, in the following manner:
(i) At least monthly or more frequently if specified in the contract with the awarding body.

For purposes of this clause, “monthly” means that a submission of records shall be made at least once every 30 days while work is being performed on the project and within 30 days after the final day of work performed on the project. (ii) In an electronic format, in the manner prescribed by the Labor Commissioner , on the department's internet website.
(B) A contractor or subcontractor who fails to f urnish records pursuant to subparagraph (A), relating to its employees, shall be subject to a penalty by the Labor Commissioner of one hundred dollars ($100) per each day in which that party was in violation of subparagraph (A) , not to exceed a total penal ty of five thousand dollars ($5,000) per project. Penalties received pursuant to this paragraph shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the pur poses s pecified in that section.
(C) The Labor Commissioner shall not levy a penalty pursuant to subparagraph (B) until a contractor or subcontractor fails to furnish the records pursuant to subparagraph (A) 14 days after the requirement set forth in clause (i) of subparagraph (A).

(D) Penalties pursuant to subparagraph (B) may only accrue to the actual contractor or subcontractor that failed to furnish the records pursuant to subparagraph (A). (4) If the contractor or subcontr ac tor is not registered pursuan t t o Section 1725.5 and is performing work on a project for which registration is not required because of subdivision (f) of Section 1725.5, the unregistered contr actor or subcontractor is not required to furnish the records specified in Section 1776 directly to the Labor Commissioner but shall retain the records specified in Section 1776 for at least three years after completion of the work. (5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of Section 1771.5, continuously since December 31, 2011. (2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing work on the project and that includes a mechanism for resol ving disputes about the payment of wages.
(c)
(1) The requirements of paragraph (1) of subdivision (a ) shall o nly apply to contracts for public works projects awarded on or after January 1, 2015.
(d) The requirements of par agraph (3) of s ubdivision (a) shall apply to all contract for publ ic work, whether new or ongoing, on or after January 1, 2016.
(9) Compliance with California Labor Code section 1720.9

(1) Labor Code section 1720.9 expanded the definition of “public works” under the California Prevailing Wage Law to include the following:
(a) Hauling and delivery of ready -mixed concrete to car ry out a p ublic works, contract, with r espect to contracts involving any state agency, including the California State University and the University of California, or any pollical subdivision of the state.
(2) Section 1720.9 defines the term “ready-mixed concrete” and specifies that rate of pay shall be the current prevailing wage “for the geographic area in which the factory or batching plant is located” as determined by the DIR. The entity hauling or delivering ready-mixed concrete to carry out a public works contract shall enter into a written subcontract agr eement with the party that engaged the entity to supply the ready- mixed concrete. The written agreement shall require compliance with Prevailing Wage Law. (3) Section 1720.9 requires that the entity hauling or delivering ready-mixed concrete to carry out a public works contract shall submit a certified copy of the payroll records required by subdivision (a) of Section 1776 to the party that engaged the entity and to the general contractor within five working days after the employee has been paid, accompanied by a written time record that shall be certified by each driver for the performance of job duties in Section 1720.9(c).
(4) Section 1720.9(e) the entity hauling or delivering ready-mixed concrete for public works project shall be considered subcontractors and must register with the DIR as per Labor Code 1725.5.

B. S TATE PUBLIC WORKS APPRENTICESHIP REQUIREMENTS

1. State Public Works Apprenticeship Requirements:

The Contractor is responsible for compliance with Labor Code section 1777.5 and the California Code of Regulations, title 8, sections 230 – 230.2 for all apprenticeable occupations (denoted with “#” symbol next to craft name in DIR Prevailing Wage Determination), whether employed by the Contractor, subcontractor, vendor or consultant. Included in these requirements is (1) the Contractor’s requirement t o provide notification (i.e. DAS-140) to the appropriate apprenticeship committees; (2) pay training fund contributions for each apprenticeable hour employed on the Contract; and (3) utilize apprentices in a minimum ratio of not less than one apprentice hour f or each five jour neyman hours by completion of Contract work (unless an exception is granted in accordance with Labor Code section 1777.5) or request for the dispatch of apprentices.

Any apprentices employed to perform any of the Scope o f Work sh all be p aid the standard wage to
apprentices under the regulations of the craft or trade for which such apprentice is employed, and such individual shall be employed only for the work of the craft or trade to which such individual is registered. Only apprentices, as defined in Calif ornia Labor Code section 3077, who are in training under apprenticeship standards and written apprenticeship agreements under California Labor Code sections 3070 et seq. are eligible to be employed for the Scope of Work. The empl oyment and training of each apprentice shall be in accordance with the provisions of the apprenticeship standards and apprentice agreements under which such apprentice is training.

2. Compliance with California Labor Code section 1777.5 requires all public works contractors to:
(1) Submit Contract Award Information (DAS-140)
a. Although there are a few exemptions (identified below), all Contractors, regardless of union affiliation, must submit contract award information when performing on a California public works project.
b. The DAS-140 is a noti f ication “announcement” of the Contractor’s participation on a p ublic works project—it is not a request for the dispatch of an apprentice. c. Contractors shall submit the contract award information (you may use form DAS 140) wit hin 10 days of the execution of the prime contract or subcontract, but in no event later than the first day in which the Contractor has workers employed on the public work project. d. Contractors who are already approved to train apprentices (i.e. check “Box 1” on the DAS-140) shall only be required to submit the form to their approved program. e. Contractors who are NOT approved to train apprentices (i.e. those that check either “Box 2” or “Box 3” on the DAS -140) shall submit the DAS- 140 TO EACH of the apprenticeship program sponsors in the area of your public works project. Fo r a listing of apprenticeship programs see http://www.dir.ca.gov/Databases/das/pwaddrstart.asp.
(2) Employ Registered Apprentices
a. Labor Code section 1777.5 requires that a contractor performing work in an “ apprenticeable” craft must employ one ( 1) hour of apprentice work for every five (5) hours performed by a journeym an.

This ratio shall be met prior to the Contractor’s completion of work on the project. “Apprenticeable” crafts are denoted with a pound sy mbol “#” in front o f the craft name on the prevailing wage determination.
b. All Contractors who do not fall within an exemption category (see below) must request for dispat ch of an apprentice from an apprenticeship program (for each apprenticeable craft or trade) by giving the program actual notice of at least 72 hours (business days only) before the date on which apprentices are required.
c. Contractors may use the “DAS-142” form for making a request for the dispatch of an apprentice. d. Contractors who ar e participating in an approved appren ticeship training program and who did not receive sufficient number of appren tices from their initial request must request dispatch of apprentices from A LL OTHER apprenticeship committees in the project area in order to fulfill this requirement.
e. Contractor sh ould maintain and submit proof (when requested) of its DAS -142 submittal to the apprenticeship committees (e.g. fax transmittal confirmation). A Contractor has met its requirement

to employ apprentices only after it has successfully made a dispatch r equest to all apprenticeship programs in the project area.
f. Only “registered” apprentices may be paid the prevailing apprentice rates and must, at all times work under the supervision of a Journeyman (Cal. Code Regs., tit 8, § 230.1). (3) Make Training Fund Contributions
a. Contractors performing in apprenticeable crafts on public works projects, must make training fund contributions in the amount established in the prevai ling wage r ate publication for journeymen and apprentices.
b. Contractors may use the “CAC-2” form for submittal of their training fund contributions. c. Contractors who do not submit their t raining fund contributions to an approved apprent iceship training program must submit their contributions to the California Apprenticeship Council (CAC), PO Box 420603, San Francisco, CA 94142-0603.
d. Training fund contributions to the CAC are due and payable on the 15th day of the month for work performed during the preceding month.
e. The “training” contribution amount identified on the prevailing wage determination shall not be paid to the worker, unless the worker falls within one of the exemption categories listed below.

3. Exemptions to Apprenticeship Requirements:

The following are exempt f rom having to comply with California apprenticeship requirements. These types of contractors do not need to submit a DAS -140, DAS -142, make training fund contributions, or utilize apprentices.
a. When the Contractor holds a sole pro prie tor lic ense (“Owner-Operator”) and no workers were employed by the Contractor. In other words, the contractor performed the entire work from start to finish and worked alone.
b. Contractors per forming in non- apprenticeable crafts. “Apprenticeable” craf ts are deno ted with a pound symbol “#” in front of the craft name on the prevailing wage determination. c. When the Contractor has a direct contract with the Public Agency that is under $30,000. d. When the project is 100% federally -funded and the funding of the project does not contain any city, county, and/or state monies (unless the project is administered by a state agency in which case the apprenticeship requirements apply).
e. When the project is a private project not covered by the definition of publi c works as found in Labor Code section 1720.

4. Exemption from Apprenticeship Ratios:

The Joint Apprenticeship Committee shall have the discretion to grant a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the Contractor from the 1-to-5 ratio set forth in this Section when it finds that any one of the following conditions are met:
(1) Unemployment for the previous three- month period in such area exceeds an average of fifteen percent (15%); or
(2) The number of apprentices in training in such area exceeds a ratio of 1-to-5 in relation to journeymen; or
(3) The Apprenticeable Craft or Trade is replacing at least one- thirtieth (1/30) of its journeymen annual ly through apprenticeship training, either on a statewide basis or on a local basis; or (4) If assignment of an apprentice to any work performed under the Contract Documents would creat e a condition which would jeopardize such apprentice's life or the life, safety or property of fellow employees or the public at large, or if the specific task to which the apprentice is to be assigned is of such a nature that training cannot be provided by a journeyman.

When such exemptions from the 1 -to-5 ratio between apprenti ces and journeymen are granted to an organization which represents contractors in a specific trade on a local or st atewide basis, the member contractors will not be required to submit individual applications for approval to local Joint Apprenticeship Committees, provided they are already covered by the local apprenticeship standards.

5. C ontractor’s Compliance:

The responsibility of compliance with this Section for all Apprenticeable Trades or Crafts is solely and exclusively that of the Contractor. All decis ions of the Joint Apprenticeship Committee(s) under this Section are subject to the provisions of California Labor Code section 3081 and penalties are pursuant to Labor Code section 1777.7 and the determination of the Labor Commissioner.

HUD-4010 (06/2022)
Previous editions are obsolete. Page 1 of 5 ref. Handbook 1344.1 HUD-4010 U.S. Department of Housing and Urban Development Federal Labor Standards Provisions Office of Davis-Bacon and Labor Standards

A. APPLICABILITY
The Project or Program to which the construction work covered by this Contract pertains is being assisted by the United States of America, and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions applicable to such Federal assistance.
(1) MINIMUM WAGES
(i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment, computed at rates not less than those contained in the wage determination of the Secretary of Labor (which is attached hereto and made a part hereof), regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under Section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of 29 CFR 5.5(a)(1)(iv); also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs, which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period.

Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR 5.5(a)(4).

Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer’s payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under 29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH1321)) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place, where it can be easily seen by the workers. (ii) Additional Classifications.
(A) Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. HUD shall approve an additional classification and wage rate and fringe benefits therefor only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage determination;
(2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(B) If the contractor, the laborers and mechanics to be employed in the classification (if known), or their representatives, and HUD or its designee agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), a report of the action taken shall be sent by HUD or its designee to the Administrator of the Wage and Hour Division (“Administrator”), Employment Standards Administration, U.S. Department of Labor, Washington, D.C. 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of Management and Budget (“OMB”) under OMB control number 1235-0023.) (C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, or HUD or its designee do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the questions, including the views of all interested parties and the recommendation of HUD or its designee, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 30-day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB Control Number 1235-0023.)

HUD-4010 (06/2022)
Previous editions are obsolete. Page 2 of 5 ref. Handbook 1344.1 (D) The wage rate (including fringe benefits, where appropriate) determined pursuant to subparagraphs (1)(ii)(B) or (C) of this paragraph, shall be paid to all workers performing work in the classification under this Contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, that the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (Approved by the Office of Management and Budget under OMB Control Number 1235-0023.) (2) Withholding. HUD or its designee shall, upon its own action or upon written request of an authorized representative of the U.S. Department of Labor, withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other Federally-assisted contract subject to Davis-Bacon prevailing wage requirements which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee or helper, employed or working on the site of the work, all or part of the wages required by the contract, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. HUD or its designee may, after written notice to the contractor, disburse such amounts withheld for and on account of the contractor or subcontractor to the respective employees to whom they are due. The U.S. Department of Labor shall make such disbursements in the case of direct Davis-Bacon Act contracts.

(3) Payrolls and basic records.
(i) Maintaining Payroll Records. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification(s), hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in Section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made, and actual wages paid.

Whenever the Secretary of Labor has found, under 29 CFR 5.5(a)(1)(iv), that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in Section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.

Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (Approved by the Office of Management and Budget under OMB Control Numbers 1235-0023 and 1215-0018) (ii) Certified Payroll Reports.
(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to HUD or its designee if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant sponsor, or owner, as the case may be, for transmission to HUD or its designee. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead, the payrolls only need to include an individually identifying number for each employee (e.g., the last four digits of the employee’s social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at https://www.dol.gov/agencies/whd/forms or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors.

HUD-4010 (06/2022)
Previous editions are obsolete. Page 3 of 5 ref. Handbook 1344.1 Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to HUD or its designee if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant sponsor, or owner, as the case may be, for transmission to HUD or its designee, the contractor, or the Wage and Hour Division of the U.S.

Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this subparagraph for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to HUD or its designee. (Approved by the Office of Management and Budget under OMB Control Number 1235-0008.) (B) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under 29 CFR

5.5(a)(3)(ii), the appropriate information is being maintained under 29 CFR 5.5(a)(3)(i), and that such information is correct and complete;
(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR Part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract; and
(C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by subparagraph (a)(3)(ii)(b).
(D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 3729 of Title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under subparagraph (a)(3)(i) available for inspection, copying, or transcription by authorized representatives of HUD or its designee or the U.S. Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. (4) Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency (where appropriate), to be eligible for probationary employment as an apprentice.

The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman’s hourly rate) specified in the contractor’s or subcontractor’s registered program shall be observed.

Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice’s level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination.

Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program.

HUD-4010 (06/2022)
Previous editions are obsolete. Page 4 of 5 ref. Handbook 1344.1 If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringe benefits shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed, unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee’s level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed.

In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(iii) Equal employment opportunity. The utilization of apprentices, trainees, and journeymen under 29 CFR Part 5 shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30.
(5) Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR Part 3, which are incorporated by reference in this Contract.
(6) Subcontracts. The contractor or subcontractor will insert in any subcontracts the clauses contained in subparagraphs (1) through (11) in this paragraph (a) and such other clauses as HUD or its designee may, by appropriate instructions, require, and a copy of the applicable prevailing wage decision, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this paragraph. (7) Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. (8) Compliance with Davis-Bacon and Related Act Requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this Contract. (9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this Contract shall not be subject to the general disputes clause of this Contract. Such disputes shall be resolved in accordance with the procedures of the U.S. Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and HUD or its designee, the U.S. Department of Labor, or the employees or their representatives.

(10) Certification of Eligibility.
(i) By entering into this Contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor’s firm is a person or firm ineligible to be awarded Government contracts by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24.

HUD-4010 (06/2022)
Previous editions are obsolete. Page 5 of 5 ref. Handbook 1344.1 (ii) No part of this Contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24.
(iii) Anyone who knowingly makes, presents, or submits a false, fictitious, or fraudulent statement, representation or certification is subject to criminal, civil and/or administrative sanctions, including fines, penalties, and imprisonment (e.g., 18 U.S.C. §§ 287, 1001, 1010, 1012; 31 U.S.C. §§ 3729, 3802. (11) Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic, to whom the wage, salary, or other labor standards provisions of this Contract are applicable, shall be discharged or in any other manner discriminated against by the contractor or any subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer.

B. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT
The provisions of this paragraph (b) are applicable where the amount of the prime contract exceeds $100,000. As used in this paragraph, the terms “laborers” and “mechanics” include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work, which may require or involve the employment of laborers or mechanics, shall require or permit any such laborer or mechanic in any workweek in which the individual is employed on such work to work in excess of 40 hours in such workweek, unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of 40 hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in subparagraph B(1) of this paragraph, the contractor, and any subcontractor responsible therefor, shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory) for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in subparagraph B(1) of this paragraph, in the sum set by the U.S.

Department of Labor at 29 CFR 5.5(b)(2) for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of 40 hours without payment of the overtime wages required by the clause set forth in subparagraph B(1) of this paragraph. In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. § 2461 Note), the DOL adjusts this civil monetary penalty for inflation no later than January 15 each year. (3) Withholding for unpaid wages and liquidated damages. HUD or its designee shall, upon its own action or upon written request of an authorized representative of the U.S. Department of Labor, withhold or cause to be withheld from any moneys payable on account of work performed by the contractor or subcontractor under any such contract, or any other Federal contract with the same prime contract, or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages, as provided in the clause set forth in subparagraph B(2) of this paragraph. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in subparagraph B(1) through (4) of this paragraph and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in subparagraphs B(1) through (4) of this paragraph.

C. HEALTH AND SAFETY
The provisions of this paragraph (c) are applicable where the amount of the prime contract exceeds $100,000. (1) No laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his or her health and safety, as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation.
(2) The contractor shall comply with all regulations issued by the Secretary of Labor pursuant to 29 CFR Part 1926 and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act, (Public Law 91-54, 83 Stat 96), 40 U.S.C. § 3701 et seq.
(3) The contractor shall include the provisions of this paragraph in every subcontract, so that such provisions will be binding on each subcontractor. The contractor shall take such action with respect to any subcontractor as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions.