Compton City Council
September 24, 2024

WHEREAS, the term of the Animal Control Services Agreement with the County of Los Angeles shall be for five (5) years commencing on July 1, 2024 through June 30, 2029; and
WHEREAS, funds for this expenditure have been allocated in the Fiscal Year 2019-2020 Budget in Account No. 1001-670-000-4266 and will be appropriated into each of the subsequent Fiscal Years 2025-2026, 2026-2027, 2027-2028, and 2028- 2029 budget adoptions and funding for Fiscal Years 2025-2026 and 2026-2027 will be increased by ten percent (10%) as part of the County’s six-year step up plan.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the City Manager is hereby authorized enter into a five (5) year (i.e. July 1, 2024 through June 30, 2029) contract with the County of Los Angeles Department of Animal Care and Control for provision of animal care and control services to the City.

SECTION 2. That funds in the amount of $1,253,279.00 (One Million Two Hundred Fifty-Three Thousand Two Hundred Seventy-Nine Dollars) have been allocated in the Fiscal Year 2024-2025 Budget in Account No. 1001-670-000-4266 and will be appropriated into each of the subsequent Fiscal Years 2025-2026, 2026-2027, 2027-2028, and 2028-2029 budget adoptions.

SECTION 3. That a purchase order is authorized to Los Angeles County Department of Animal Care and Control in the amount not-to-exceed of $1,253,279.00 for services rendered during Fiscal Year 2024-2025 (i.e. July 1, 2024 through June 30, 2025) and funding for Fiscal Years 2025-2026 and 2026-2027 will be increased by ten percent (10%) as part of the County’s six-year step up plan. Funding for Fiscal Years 2027-2028 and 2028-2029 will be determined based upon services rendered.

SECTION 4. That the certificated copy of this Resolution shall be filed in the Offices of the City Clerk, City Manager, City Controller, City Attorney and Community Improvement Services Department.

SECTION 5. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ______ day of ___________, 2024.
________________________________

MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON: )
Resolution No. __________

I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor and attested to by the City Clerk at a regular meeting thereof held on the ______ day of ______________, 2024.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
____________________________________

CITY CLERK OF THE CITY OF COMPTON

ATTACHMENT B

CITY-COUNTY MUNICIPAL SERVICES AGREEMENT

COUNTY OF LOS ANGELES

DEPARTMENT OF ANIMAL CARE AND CONTROL
AND

THE CITY OF
FISCAL YEAR 2024-25 SERVICE LEVEL REQUEST
I. Animal Care Center Services
The level of animal care center service that the City requests and the County agrees to, is (select one of the three options below):
 Full Service
Primary animal care center:
 Animal Care Center Services for Transfer
City’s Animal Care Facility contact information:

Agency Name:

Telephone:

Address:
 No Animal Care Center Services

II. Field Services
The level of field service that the City requests and the County agrees to, is (select one of the three options below):
 Standard Service Plan
 Limited Service Plan (check all applicable boxes below) Full County Field Services
County provides service on following
days/times (please identify):

Weekend days and holidays (please
identify days and hours):

Priority County Field Services - Priority 1 Calls Only (As Determined by Department Policy)
County provides service on following
days/times (please identify):

Weekend days and holidays (please
identify days and hours):

Standby County Field Services (Service Requests only from City Personnel; the City will screen calls from the public)
County provides service on following
days/times (please identify):

Weekend days and holidays (please
identify days and hours):

Humane Investigations – as needed Yes
No
Administrative Investigations – as
needed (LACC Title 10, Chapter 37,
Potentially Dangerous/Vicious Dogs)
Yes
No
Administrative Compliance
(Post hearing compliance checks will
be handled by DACC on City’s behalf)
Yes
No
City’s Animal Control (Field Services) contact information:

Department Name:

Telephone:

Address:
 No Field Services

III. Individual Animal Licensing
 The City agrees to have the County provide individual animal licensing and has adopted the license fees outlined in Los Angeles County Code.  The City agrees to have the County provide individual animal licensing and has adopted the following license fees (please provide a copy of the applicable ordinance or resolution):

Altered Dog $ Altered Cat $
Unaltered Dog $ Unaltered Cat $
Senior-owned Altered Dog $ Senior age is defined as age Military Veteran w/ Disability Altered Dog $
Delinquency Charge $ Delinquency charge applies after: days Other Special License Fee $ Description/criteria:

Field Enforcement Fee* (select one)
$40.00
$0.00
*Only applicable when licensing is initiated in the field by Department employees.

Current license fees adopted by the City on _____________________, 20_____.  No Animal Licensing Services

A. Animal Facility Inspection and Licensing (Costs included in overhead— not billed)
□ The City requests the County to license animal-related facilities (including inspection and grading services) in the City.
□ No animal facility licensing services --the City will conduct its own program. (Please provide contact information below.)
The City's animal facility program contact information:

Department Name:

Telephone:

Address:
 The City requests the County to provide or assist in arranging for vaccination clinic(s) in the City, utilizing Department personnel to also license animals during the vaccination clinic(s), at the applicable rate for staff time.  No vaccination or licensing clinic services.

C. Spay/Neuter Trust Fund
 Participate in the Spay/Neuter Trust Fund to allow residents access to low-cost spay/neuter services.
 No participation in the Spay/Neuter Trust Fund.

B. Vaccination and Microchip Clinic(s)
IV. Outreach and Enforcement Services
Please make a selection for each of the options below. For more information, you can view Attachment A, Description of Services, of your municipal services agreement or reach out to one of the contacts listed on Page 7 of this Service Level Request.

V. Enforcement of County Code
 The City agrees to the enforcement of Title 10 with no exceptions.  The City agrees to the enforcement of Title 10 with the following pre-approved exception(s): (please mark all that apply)
 10.20.350: Mandatory Spay and Neuter. The City does not require the spay/neuter of:
o Dogs
o Cats
 10.20.185: Mandatory Microchipping. The City does not require the microchipping of:
o Dogs
o Cats
 10.20.038: Number of dogs and cats. In the City the following number of animals are allowed per household:

Dogs _____ Cats _____ Total of ______ dogs/cats
 10.20.030: Mandatory Cat Licensing. Domestic cats are subject to:
o Voluntary Cat Licensing
o No Cat Licensing
 10.28.020: Animal Facility Licensing. The County will not license/inspect animal facilities.
 10.40.060: Excessive Animal Noise Complaints. The City will conduct its own noise enforcement.

City’s Animal Noise Complaint contact information:

Department Name:

Telephone:

Address:

E-mail:

VI. Requested Additions to Title 10 Enforcement
Please list individual municipal code sections requested to be enforced by the Department. (Please ensure your municipal code contains adequate enforcement authority.)
COUNTY
City Code
Section No. City Code Section Title Approved Not
Approved

VII. Contact Information
County Primary Contact
Name: Bradley Kim
Title: Contracts and Grants Division Liaison
Address: 5898 Cherry Avenue
Long Beach, CA 90805
Telephone: (562) 379-9722
E-mail: [email protected]
County Alternate Contact
Name: Jeffrey Martinez Flores
Title: Management Analyst
Address: 5898 Cherry Avenue
Long Beach, CA 90805
Telephone:

E-mail: [email protected]
City Primary Contact
Name:

Title:

Address:

Telephone: (____)
E-mail:

City Alternate Contact
Name:

Title:

Address:

Telephone: (____)
E-mail:

Note: A new Service Level Request submission is not needed if a city wishes only to update its contacts. For contact updates, an email notice will suffice. (562) 256-1363

VIII. Annual/Amended Service Request Approval
For the City:
____________________________ ___________________________ ___________ Authorized City Representative Authorized Signature Date (Printed Name) (Signature)
____________________________ ___________________________ Title Telephone Number
For the County:

Marcia Mayeda _______ ____________________________ ___________ Director Authorized Signature Date
Dept. of Animal Care and Control (Signature)

Jul 27, 2023
Compton SLR FY23-24
Final Audit Report 2023-07-27
Created: 2023-07-27
By: Bradley Kim ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAA5xFpVEsWf2BmlJhO3_4l_ftsutwfR9A8 "Compton SLR FY23-24" History
Document created by Bradley Kim ([email protected]) 2023-07-27 - 3:02:55 PM GMT- IP address: 104.129.199.49 Document emailed to Marcia Mayeda ([email protected]) for signature 2023-07-27 - 3:03:25 PM GMT
Email viewed by Marcia Mayeda ([email protected]) 2023-07-27 - 7:15:12 PM GMT- IP address: 174.193.55.34
Document e-signed by Marcia Mayeda ([email protected]) Signature Date: 2023-07-27 - 7:15:26 PM GMT - Time Source: server- IP address: 174.193.55.34 Agreement completed.
2023-07-27 - 7:15:26 PM GMT

Marcia Mayeda, Director

June 26, 2024

Jerry Groomes
City Manager
205 South Willowbrook Avenue
Compton, CA 90220

Dear Mr. Groomes:

City-County Municipal Services Agreement and Service Level Request

Thank you for your continued collaboration with the Department of Animal Care and Control (DACC) to ensure the welfare and safety of animals and residents in your city.

The current contract for services, known as the City -County Municipal Services Agreement, was approved by the County of Los Angeles Board of Supervisors on February 6, 2024, and has either been renewed or is in the process of being renewed by contract cities. This new agreement is effective from July 1, 2024, through June 30, 2029.

Cities may submit a new Service Level Request (SLR) at any time to request a change in services or update their city’s contact information (Attachment B). Please note that effective July 1, 2024, cities can request revisions to the contact(s) listed on their SLR via email. A new SLR submission will no longer be required. For reference, we have also enclosed the most current SLR we have on file for your city (Attachment A).

To submit a revised SLR, please complete the attached electronic form, obtain you r authorized representative's signature, and email it to Brad Kim at [email protected]. Any additions or deletions to services will be scheduled for implementation upon agreement of both parties.

If you are unable to complete or sign the SLR electronically, you may use the enclosed blank SLR form. Hard copies should be submitted to:

County of Los Angeles
Department of Animal Care and Control
Attention: Contracts, Grants, and Analytics Division
5898 Cherry Avenue
Long Beach, CA 90805
Jerry Groomes
June 26, 2024

If you have any questions or concerns or are interested in scheduling a meeting, please contact Brad Kim at [email protected] or (562) 379-9722.

Fiscal Year 2024-25 Billing Rates

The billing rates for animal care and control services for Fiscal Year (FY) 2024-25 will be in effect from July 1, 2024, through June 30, 2025. All rates are listed on the first page of the “City-County Municipal Services Billing Ra tes” document enclosed (Attachment C).

An individual cost estimate for F Y 2024-25 for your city based on prior service usage is also enclosed (Attachment D).

Step 4 Flat Rate per Impound

For FY 2024-25, DACC will move to Step 4 of the six -year step-up plan, whereby the County will be subsidizing 20% of the animal housing costs for cities and the rate for dog and cat housing will be $697.36 per impound. A daily rate will only apply in cases of "special intake" such as confiscation, quarantine, or investigations involving potentially dangerous or vicious dogs. For these special intake animals, cities will be charged the flat per impound rate of $697.36, plu s a daily rate of $87.17 after the eighth day in care.

This information is itemized as a separate charge on cities' monthly invoices. Moreover, DACC will strive to keep cities informed of high -profile cases that may lead to animals being placed on legal hold.

The actual cost of providing County animal housing for a cat or dog was recently calculated by the County Auditor -Controller to be $871.70 per impound, or $87.17 per day, based on an average stay of ten days for cats and dogs. Under the step -up plan, Step 4 calculates the cost by multiplying eight days by $87.17, resulting in $697.36 per impound. The County subsidizes $174.34 for each impound.

Per Capita

The per capita charge for full -service cities in FY 2024 -25 will be $0.70. This rate is adjusted annually based on the number of public service hours provided to the community in the preceding fiscal year. This annual charge encompasses activities aimed at providing alternatives to animal impoundment such as staff time allocated to counseling, referring to services, or offering other resources to help pets remain with their families and out of animal care centers.

Limited Field Services

Limited Field Services cities are defined as those that have their own City animal control staff and only require DACC to provide back-up field services upon request or on a part- time basis. The FY 2024-25 rate for such services is $234.30 per hour when requested Jerry Groomes
June 26, 2024

at least two weeks in advance. This rate factors in the cost of overtime. For services requested outside of scheduled hours or without two-weeks’ notice, the same rate will apply with a minimum callout charge of four hours. Limited Field Services cities will also incur charges for the hours Dangerous Dog Investigations Unit (DDIU) officers dedicate to aggressive dog and dog bite investigations upon the city's request. These services will be billed at the standard (non-overtime) hourly rate of $156.20.

Pet Licensing

The Rabies Vaccination Certificate (RVC) tool has played a crucial role in helping DACC identify thousands of pet licenses currently out of compliance. The next step involves the DACC team sending notices to pet owners to provide them with a chance to rectify their fees promptly, thus avoiding penalties. If pet owners do not license their pets, DACC will initiate the issuance of administrative citations to ensure compliance. This new process will empower DACC to enforce compliance effectively. These measure s will be communicated to cities prior to implementation.

Grant and Donation Funded Programs

DACC has maintained its commitment to fostering partnerships with animal welfare agencies to secure grants aimed at sustaining and expanding the Pets Are Family (PAF) program. You can learn more about each of our PAF services by viewing our DACC support services page which offers brochures in English, Mandarin, Spanish, Korean, and Vietnamese. Notably, DACC's non -profit partner, the Los Angeles County Animal Care Foundation, has made substantial contributions such as earmarking $250,000 to DACC for broadening access to low -cost spay/neuter services for owned pets and community cats.

Additionally, they have allocated $370,000 to bolster Vet@ThePark clinics in 2024.

Vet@ThePark is where DACC brings its mobile veterinary unit to local communi ty parks and provides free veterinary exams, flea medications, vaccines, deworming, microchips, and pet food. These clinics are generally held monthly at County parks or event sites identified by our city partners. If your city is interested in scheduling an event, please reach out to Jeffrey Martinez-Flores at [email protected].

Recommendations to Reduce Animal Service Costs

DACC has several recommendations for cities to potentially reduce their costs related to animal care and control services. Below is a comprehensive list:

▪ Adopt and increase your own city’s cat and/or dog license fees. ▪ Mandate and enforce cat licensing.
▪ Mandate spay/neuter of owned pets to reduce the prevalence of pets running loose and being impounded to County animal care centers.

Jerry Groomes
June 26, 2024

▪ Mandate microchipping of owned pets to increase the likelihood of pets being returned in the field by animal control officers, thereby eliminating a need for impoundment.
▪ Contract separately with a waste management provider for dead animal pick -up and disposal services to reduce DACC field hours charged for such calls. ▪ Enforce animal facility/business licensing; DACC offers business licensing and inspection services at no additional cost.
▪ Elect to participate in our Spay and Neuter Trust Fund progr am, enabling your residents to access free and low-cost spay and neuter clinics. This will help control animal population and reduce animal admissions thereby reducing cost associated with animal admissions.
▪ Elect to participate in our vaccination and mic rochip clinics, providing your residents with opportunities to attend our free and low -cost vaccination and microchipping services for their pets . Having more pets microchipped can lead to more return to owners in the field and reduced animal admissions. ▪ Request that DACC pet licensing enforcement officers attend large city events to collect pet license fees, thus increasing pet licensing revenue credited to the city. ▪ Partner with DACC to engage in canvassing outreach via social media and mailers aimed at boosting licensing compliance and generating additional revenue.

If you would like more information about any of the options listed above , please contact Brad Kim, our Contracts, Grants, and Analytics Division Manager, at (562) 379-9722 or [email protected].

We are deeply grateful for the chance to serve your city's animal care needs. Through collaboration and partnership, we will deliver animal care and control services to your city with utmost efficiency, prioritizing the health and safety of both the community and the animals we serve together.

Sincerely,

MARCIA MAYEDA
Director

MM:DU:WD:BK:JMF:jl
S:\CONTRACT CITIES\Correspondence\2024-25 Billing Rate Letter to Contract Cities - General 6.25.2024 FINAL.docx

Enclosures

c: Animal Care Board Deputies

Attachment D

CITY OF COMPTON
City / Service Description Rate Unit Type
#
Units * Cost ** Rate Unit Type
#
Units * Cost
Shelter Services
Alternatives to Care Center Admissions 0.75$ Per Capita 93,719 70,289$ 0.70$ Per Capita 93,671 65,570$ Kennel Housing - Dog & Cat 515.34$ Per Impound 1,290 664,789$ 697.36$ Per Impound 1,290 899,594$ Kennel Housing - Other Animals included Per Impound 55 -$ Included Per Impound 55 -$ Special Intake / Quarantine Housing (Note 1)

73.62$ Per Day 461 33,939$ 87.17$ Per Day 461 40,185$ Disposal of Dead Animals included Each 349 -$ Included Each 349 -$ Private Vet Varies Each 176 55,364$ Varies Each 176 55,364$ 824,381$ 1,060,713$
Field Services
Field Services 151.71$ Hours 1,368 207,501$ 156.20$ Hours 1,368 213,643$ Animal License Field Enforcement Services 106.20$ Hours - -$ 110.47$ Hours - -$ 207,501$ 213,643$
Other
Liability Insurance (3.5% of total Field Services and Animal License Enforcement) 207,501$ 7,263$ 213,643$ 7,477$ Dog/Cat License Processing Fee 5.37$ Each 1,052 5,649$ 5.54$ Each 1,052 5,828$ 12,912$ 13,306$
Total City Cost (Sheltering, Field, and Other) 1,044,794$ 1,287,662$ Revenue:

Fees Collected From Residents (6,125)$ (6,125)$ License/Penalty Fees (28,258)$ (28,258)$
(34,383)$ (34,383)$
Total City Net Cost 1,010,411$ 1,253,279$
* Service Levels Schedule is an ESTIMATE only for the City's reference, estimated based on 11 months of actual invoices from July 2023 to May 2024 and estimated usage for the remaining 1 month (based on actual usage data from June 2023). City is liable for actual costs.
** Rates are recalculated annually based on prior actual costs; this rate projection was based on the cost of providing services in FY 2023-24. In addition, the allocation of costs for Alternatives to Care Center Admissions are adjusted annually based on actual time spent on each activity type.

Note 1: Special Care/Observation costs are billed at a flat per impound rate. If the animal's stay exceeds the length of stay captured in the flat rate, a daily rate will be charged for any remaining days. Legal Hold animals are held in accordance with applicable statutory guidelines and/or at the sole and absolute discretion of the Department, based on pending or anticipated criminal, civil, or administrative action.

COUNTY OF LOS ANGELES

DEPARTMENT OF ANIMAL CARE AND CONTROL

ESTIMATED SERVICE LEVELS SCHEDULE
FY 2023-24
Estimated Costs (Current Year- Year 3)
FY 2024-25
Estimated Costs (Year 4)

New Billing
Methodology

COUNTY OF LOS ANGELES

ANIMAL CARE & CONTROL
The New Billing Methodology went into Effect
Fiscal Year 2021-22 (July 1, 2021)

CITY OF COMPTON
Background
Managed Intake
Six-year step-up plan
Summary of Billing Changes
Main components of billing:

Kenneling (dog & cat)
Per Capita (Alternatives to Care Center Admissions)
Field Services
Licensing and Canvassing
Options to Offset Costs
Overview
In 2015, the Los Angeles County Board of Supervisors requested a comprehensive study of the Department of Animal Care and Control's (DACC) cost structure and billing methodology. It was determined that DACC was not charging enough to recover costs and a new billing methodology was recommended. These findings were presented to all cities in 2018. In response to cities' concerns over increased rates, a second independent review was conducted and findings were shared in 2020. It was recommended that DACC move forward with the new methodology in Fiscal Year (FY) 2020-21. However, due to the outbreak and its economic impact on the County and cities alike, implementation was delayed to FY2021-22, to take effect July 1, 2021.

Background
Community Engagement
Resources to keep pets and families intact
Public Safety and Animal Welfare
Grants and donations
Long-term over stopgap solutions
Reduced animal intake and, thus, reduced
costs for the cities
Increased positive outcomes for animals
What is Managed Intake?
A strategy that emphasizes partnerships with the
community to provide resources and solutions to
reduce the flow animals into animal care centers.

How is it accomplished?
What are the outcomes?

MANAGED INTAKE
FY2021-22
FY2024-25
Year 1Year 2Year 3Year 4Year 5Year 6
100%
75%
50%
25%
0%
Six-Year Step-Up Plan
City Cost DACC Subsidy
FY2022-23
FY2023-24
FY2025-26
FY2026-27
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
50%
60%
70%
80%
90%
100%
50%
40%
30%
20%
10%
0%
Fiscal Year
City
County
Cat and Dog Housing Costs
Six-Year Step-Up Plan
Summary of Billing Changes
Animals no longer billed per day
but on a flat impound rate.

FLAT PER

IMPOUND RATE
Limited-service cities charged
(1.5) per hour, with a minimum
charge of four hours.

FIELD SERVICES
(LIMITED CITIES)
Full-service cities charged a per capita rate
to cover uncaptured costs of DACC services.

ALTERNATIVES TO CARE

CENTER ADMISSIONS
(FULL-SERVICE CITIES)
Limited Field Service cities charged for
hours Critical Case Processing Unit
(CCPU) officers spend on investigations
at regular per hourly rate.

CCPU CHARGES
(LIMITED CITIES)
$244.11 per impound (based on five-day average
of $48.82 per day)
DACC will subsidize 50% of housing costs in
Year 1 since average length of stay is 10 days
Housing for "other" animals and Dead Animal
Disposal no longer an additional charge
For dogs or cats on legal hold, cities will be
charged flat rate of $244.11, plus $48.82 per day
for each day over five days
For next FY (2022-23), cities will be charged based
on six-day stay, increasing incrementally each year
until the 10-day flat rate is reached

FLAT PER IMPOUND RATE

Formerly "Alternatives to Impoundment"
$1.00 per capita annually
Formula based on City's population
Covers uncaptured costs of services related to
providing Alternatives to Impoundment
Includes activities beyond housing
Recalculated annually based on staff time
Managed Intake
Providing resources to the public to reduce the
flow of animals into animal care centers
Decreased intake means fewer impound
charges

ALTERNATIVES TO CARE CENTER

ADMISSIONS (PER CAPITA)

Full-Service Cities:

Field Service billing model remains unchanged
$139.83 per hour (Field Services)
$96.88 (License Enforcement)
Major Case Unit (MCU) hours still charged for both full and limited cities Limited-Service Cities:

Minimum callout charge of four hours for services outside of scheduled hours or for services requested with less than two-week notice Will be charged for hours Critical Case Processing Unit (CCPU) officers spend on aggressive animal and dog bite investigations
$209.75 per hour (Field Services) - 1.5 hours to capture overtime costs $96.88 (License Enforcement)

FIELD SERVICES

Licensing and Canvassing
Due to the pandemic, DACC suspended in-person license canvassing in mid-March 2020; this option was removed from the SLR this fiscal year (FY21-22)
DACC is exploring other methods to increase license compliance Telecanvassing
Amnesty Program
Updated online platform in June 2020
Will continue to update cities with plans moving forward Options for Offsetting Costs

STRATEGIES FOR REDUCING SERVICE COSTS

PETLICENSING
Cities can
increase dog
license fees and,
if not already,
mandate and
enforce cat
licenses

DISPOSALSERVICES
Contract
separately with a
waste management
provider for dead
animal pick-up and
disposal

BUSINESSLICENSING
Opting into and
enforcing animal
facility/business
licensing with
DACC at no cost
to cities

SPAY/NEUTER &MICROCHIPPING
Mandating
spay/neuter and
microchipping of
owned pets to
reduce lost pets and
unwanted litters

COMMUNITYSERVICES
Opting into low-
cost vaccination,
microchip, and
spay/neuter
clinics provided
by DACC
*Cities may request changes or opt into new services bysubmitting a revised Service Level Request (SLR) Questions

WYMAN SHEEN
B illin g a n d In v o ic e s A n a ly s t
In s u r a n c e M o n it o r in g

WHITNEY DUONG
C o n t r a c t s a n d G r a n t s D iv is io n M a n a g e r W h i t n e y D u o n g i s t h e C o n t r a c t s a n d G r a n t s D i v i s i o n M a n a g e r , a n d o v e r s e e s a l l o p e r a t i o n s r e l a t e d t o t h e C o u n t y o f L o s A n g e l e s D e p a r t m e n t o f A n i m a l C a r e a n d C o n t r o l ' s 4 5 c o n t r a c t c i t i e s , R e q u e s t s f o r P r o p o s a l s , M e m o r a n d u m o f U n d e r s t a n d i n g s , a n d g r a n t s m a n a g e m e n t . W h i t n e y i s t h e p r i m a r y c o n t a c t f o r a l l c o n t r a c t c i t i e s a n d l i a i s o n f o r a l l c o n t r a c t - a n d g r a n t - r e l a t e d m a t t e r s .

[email protected]
(562) 379-9719

BRADLEY KIM
N o r t h C o u n t y C o n t r a c t C it ie s
G r a n t s M a n a g e m e n t

ALYSSA PEREZ
S o u t h C o u n t y C o n t r a c t C it ie s
C o n t r a c t s M a n a g e m e n t
[email protected]
(562) 379-9728
[email protected]
(562) 379-9718
[email protected]
(562) 379-9722
September 24, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO A

CONSTRUCTION CONTRACT WITH AND ESTABLISH A PURCHASE
ORDER FOR HARDY & HARPER, INC. FOR ROAD REPAIR SERVICES CITYWIDE ($2,154,900).

SUMMARY
Adoption of this resolution authorizes the City Manager to enter into a construction contract with Hardy & Harper, Inc. (“Hardy & Harper”) for road repair services citywide, establish a purchase order in the amount of One Million Nine Hundred Fifty Nine Thousand Dollars ($1,959,000.00) and authorizes a Project Contingency in the amount of One Hundred Ninety Five Thousand Nine Hundred Dollars ($195,900.00).

BACKGROUND
On July 26, 2024, the City of Compton (“City”) performed an update to the Pavement Management Program, which identified approximately 134 miles of “Fair” to “Very Poor” citywide street conditions. These findings indicate that the proper funding of the street network needs to continually be improved upon to sustain or improve the overall Pavement Condition Index. The PCI is a condition rating that ranges from 100 to 0. The PCI average for the City of Compton is 60.8 which is considered “Fair”. As a result, preventative maintenance is significantly overdue and presents safety and liability concerns to the City.

The Road Repair Services Project consist of providing road repair services citywide in accordance to the contract specifications and other contract documents. Specifically, the Project will consist of pavement repairs such as grind & overlay rehabilitation methods on specified distressed areas.

On August 7, 2024, the Public Works Engineering Department solicited Notice of Inviting Bids to contractors for the road repair services citywide. The Project was advertised in the Compton Bulletin, Planet Bids and the City’s website on August 7th , August 14th , and August 21st , 2024. Bids were received and opened on August 29 th, 2024. Five (5) bids were received from the following contractors:

14.14.14.14. Staff Report – Resolution Authorizing Construction Contract Hardy & Harper – Road Repair Services
September 24, 2024, Page 2 of 2
Contractors Amount
All American Asphalt $1,997,400
Hardy & Harper, Inc. $1,959,000
Onyx Paving Company $2,424,000
Palp Inc. dba Excel Paving $3,698,000
Terra Pave $2,229,000
Based upon review of the submitted bid documents, it has been determined that Hardy & Harper submitted the lowest responsive bid.

STATEMENT OF THE ISSUE
The City reserves the right, after opening bids, to reject any or all bids, or to make award to the lowest responsive bidder and reject all other bids. After careful consideration, City staff deemed Hardy & Harper as the lowest responsive bidder.

Therefore, in order for the City Manager to enter into a construction contract with Hardy & Harper, Inc. (“Hardy & Harper”) for road repair services citywide, establish a purchase order in the amount of One Million Nine Hundred Fifty Nine Thousand Dollars ($1,959,000.00) and authorize a Project Contingency in the amount of One Hundred Ninety Five Thousand Nine Hundred Dollars ($195,900.00), City Council’s authorization is necessary.

FISCAL IMPACT
Funds in the amount of $2,154,900 are available in the 2024-2025 Fiscal Year Budget in Account No. 1004-610-000-4266 (Measure P).

ALTERNATIVE
Council can reject the bid and instruct staff to re-advertise. However, due to the desire of the City to move forward with this Project in order to improve our street infrastructure, no other alternative is being proposed at this time.

RECOMMENDATION
That the City Council adopt the attached Resolution.

JOHN D. STRICKLAND, JR.

DIRECTOR OF PUBLIC WORKS
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS, JR.

CITY MANAGER
RESOLUTION NO. ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSTRUCTION

CONTRACT WITH AND ESTABLISH A PURCHASE ORDER FOR HARDY
& HARPER, INC. FOR ROAD REPAIR SERVICES CITYWIDE ($2,154,900).

WHEREAS,Adoption of this resolution authorizes the City Manager to enter into a construction contract with Hardy & Harper, Inc. (“Hardy & Harper”) for road repair services citywide, establish a purchase order in the amount of One Million Nine Hundred Fifty Nine Thousand Dollars ($1,959,000.00) and authorize a Project Contingency in the amount of One Hundred Ninety Five Thousand Nine Hundred Dollars ($195,900.00); and WHEREAS,on July 26, 2024, the City of Compton (“City”) performed an update to the Pavement Management Program, which identified approximately 134 miles of “Fair” to “Very Poor” citywide street conditions and these findings indicate that the proper funding of the street network needs to continually be improved upon to sustain or improve the overall Pavement Condition Index; and
WHEREAS,the PCI is a condition rating that ranges from 100 to 0 and the PCI average for the City of Compton is 60.8 which is considered “Fair”; and WHEREAS,as a result, preventative maintenance is significantly overdue and presents safety and liability concerns to the City; and WHEREAS, the Road Repair Services Project consist of providing road repair services citywide in accordance to the contract specifications and other contract documents and specifically, the Project will consist of pavement repairs such as grind & overlay rehabilitation methods on specified distressed areas; and WHEREAS, on August 7, 2024, the Public Works Engineering Department solicited Notice of Inviting Bids to contractors for the road repair services citywide; and WHEREAS the Project was advertised in the Compton Bulletin, Planet Bids and the City’s website on August 7th , August 14th , and August 21st , 2024; and WHEREAS, bids were received and opened on August 29th, 2024 and five (5) bids were received from the following contractors:

Contractors Amount
All American Asphalt $1,997,400
Hardy & Harper, Inc. $1,959,000
Onyx Paving Company $2,424,000
Palp Inc. dba Excel Paving $3,698,000
Terra Pave $2,229,000; and
WHEREAS, based upon review of the submitted bid documents, it has been determined that Hardy & Harper submitted the lowest responsive bid; and WHEREAS, the City reserves the right, after opening bids, to reject any or all bids, or to make award to the lowest responsive bidder and reject all other bids; and WHEREAS, after careful consideration, City staff deemed Hardy & Harper as the lowest responsive bidder; and
WHEREAS, staff recommends City Council award the construction contract to Hardy & Harper in the amount of $1,959,000; and
Resolution No. _________

WHEREAS, staff recommends establishing a ten percent (10%) contingency in the amount of $195,900 for any unforeseen costs be authorized for this Project; and WHEREAS, funds in the amount of $2,154,900 are available in the 2024-2025 Fiscal Year Budget in Account No. 1004-061-000-4266 (Measure P); and WHEREAS, council can reject the bid and instruct staff to re-advertise. However, due to the desire of the City to move forward with this Project in order to improve our street infrastructure, no other alternative is being proposed at this time; and WHEREAS, in order for the City Manager to enter into a construction contract with Hardy & Harper, Inc. (“Hardy & Harper”) for road repair services citywide, establish a purchase order in the amount of One Million Nine Hundred Fifty Nine Thousand Dollars ($1,959,000.00) and authorize a Project Contingency in the amount of One Hundred Ninety Five Thousand Nine Hundred Dollars ($195,900.00), City Council’s authorization is necessary.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1.That the bid of Hardy & Harper, Inc. in the amount of One Million Nine Hundred Fifty Nine Thousand Dollars ($1,959,000) is hereby accepted and all other bids rejected.

SECTION 2.That the City Manager, upon the advice of the City Attorney, is hereby authorized to enter into a construction contract with Hardy & Harper, Inc. for services performed on the Road Repair Services Project.

SECTION 3.That funds in the amount of $2,154,900 are available in the 2024- 2025 Fiscal Year budget in Account No. 1004-610-000-4266 (Measure P).

SECTION 4.That a purchase order in the amount of $1,959,000 for construction costs is established for Hardy & Harper, Inc from Account No. 1004-610-000-4266 (Measure P).

SECTION 5.That a Project Contingency amount of One Hundred Ninety Five Thousand Nine Hundred Dollars ($195,900) is hereby authorized.

SECTION 6.That a copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and Public Works Engineering Department.

SECTION 7. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ________ day of ____________, 2024.
_______________________________

MAYOR OF THE CITY OF COMPTON
Resolution No. ___________

ATTEST:
_____________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the _______ day of ________________, 2024.

That said Resolution was adopted by the following vote to wit:

AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
_____________________________________

CITY CLERK OF THE CITY OF COMPTON
City of Compton
Road Repair Service Project Phase VIII
List of Potential Streets
No. Street Name Limits

1. 134th Street Central Avenue – Parmelee Avenue

2. 134th Street Salinas Avenue – Bahama Avenue

3. Piru Street Central Avenue – Elva Avenue

4. 136th Street Central Avenue – Elva Avenue

5. Ezmirlian Street Long Beach Boulevard – Bullis Road

6. Bullis Road Orchard Street – City Limit North

7. Locust Avenue Killen Place – McMillan Street

8. Pine Street Bullis Road – McMillan Street

9. McKinley Avenue Claude Street – Caldwell Street

10. Tichenor Street Northwood Avenue – Hillford Avenue

11. Bennett Street Harlan Avenue – Grandee Avenue

12. Harlan Avenue Bennett Street – 166th Street

13. Cypress Street Willow Avenue – Santa Fe Avenue

14. Cypress Street Willowbrook Avenue – Tamarind Avenue

15. Laurel Street Chester Avenue – Burris Avenue

16. Caldwell Street County Line East – End of Cul De Sac

CONSTRUCTION SERVICES CONTRACT

BETWEEN

CITY OF COMPTON
AND
HARDY & HARPER, INC.
[Road Repair Services – City-Wide Road Repair Services Project] This CONTRACT is entered into by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “CITY”) located at 205 South Willowbrook Avenue, Compton, California 90220, and HARDY & HARPER, INC. (hereinafter referred to as “CONTRACTOR”) located at 32 Rancho Circle, Lake Forest, California 92630.

RECITALS:

A. City is a municipal corporation duly organized and validly existing under the law of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City.

B. Contractor is a corporation duly organized and in good standing in the State of California.

Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Contract.

C. City and Contractor enter into this Contract for the purpose of retaining Hardy & Harper, Inc. (Contractor/License No. 215952) to perform that work required pursuant to the “Road Repair Services Project
D. (“Project”).

E. Authorization to enter into this Contract is pursuant to Resolution No. _______, adopted by the City Council on ________________, 2024.

WHEREFORE, the City and Contractor, for the consideration, terms and conditions herein described, mutually agree as set forth below:

1.0 GENERAL PROVISIONS

1.1 Definitions.

1.1.1“Work” consists of all of the Construction Services, including but not limited to all of the labor, materials and equipment necessary to complete the Project in accordance with the Contract Documents.

1.1.2“Contract Documents” consists of this Contract (including all exhibits and schedules), any amendments and clarifications issued thereto, any “Bid/Unit Price Proposal/Scope of Work” submitted by the Contractor, the plans, general conditions, special provisions, standard and technical specifications, schedules, exhibits, drawings, designation of subcontractors, all required bonds, insurance policies, endorsements, certificates, permits, notices and affidavits, notice to proceed, notice of completion, any Change Orders, the provisions of the Standard Specifications for Public Works Construction (“Greenbook”), latest Edition (except as modified), Standard Specifications of the State of California Department of Transportation (CalTrans), latest Edition (except as modified), Work Area Traffic Control Handbook (WATCH), latest Edition, CalTrans Standard Drawings, latest edition, California Manual on Uniform Traffic Control Devices (CAMUTCD), latest Edition, MUTCD Latest California Supplement, and any and all other documents identified in the Contract Documents which together form the Contract between the City and the Contractor.

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1.2 Public Work of Improvement.

City and Contractor acknowledge that City is a political subdivision of the State of California and that construction of the Project is to be funded with public funds.

1.3 Trust and Confidence.

Contractor accepts the obligation of trust and confidence established between it and City by this Contract and shall act in the best interests of City, as its fiduciary, in carrying out Contractor’s duties and responsibilities under this Contract, including, without limitation, the furnishing of efficient business administration, sufficient senior level management and other qualified personnel to complete Contractor’s obligations under the Contract Documents in an expeditious and economical manner and within the Contract Price and Contract Time.

1.4 Standard of Care.

Contractor shall perform all its obligations under the Contract Documents in accordance with the highest standard of care applicable to the performance of services and Work required by the Contract Documents. In the event portions of the Project are to be performed in accordance with a specific performance standard, the Work shall be performed so as to achieve such standard.

1.5 Compliance with Applicable Laws.

Contractor shall give all notices and comply with all applicable laws and lawful orders of any governmental authorities (including, without limitation, those laws, ordinances, rules, regulations and lawful orders relating to safety, prevailing wage, Hazardous Substances, and equal employment opportunities); pay all local, state and federal taxes; and pay all benefits, insurance, taxes and contributions for Social Security and Unemployment Insurance which are measured by wages, salaries or other remuneration paid to Contractor's employees. Upon City's request, Contractor shall furnish evidence satisfactory to City that any and all of the foregoing obligations have been fulfilled. Without limiting the foregoing, Contractor shall pay all employees on said Work a salary or wage at least equal to the prevailing salary or wage established for such Work as set forth in the wage determinations and wage standards applicable to this Work.

The Contractor must obtain and present all relevant state and local insurance, training and licensing pursuant to services required within this Contract. Contractor shall also comply with the following laws:

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1.5.1 Prohibition Against Employment Discrimination.During the performance of this Contract, the Contractor will not discriminate against any employee or applicant for employment because of race, color, gender, marital status, ethnicity, religion, age or medical condition as set forth in the California Labor Code Section 177.6, Government Code, Title VII of the Civil Rights Act and the Civil Rights Act of 1991 and any amendments to the above. Such action shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoffs or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause.

The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor; state that all qualified applicants will receive consideration for employment without regard to race, color, gender, marital status, ethnicity, religion, age or medical condition.

In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this Contract or with any of such rules, regulations or orders, this Contract may be canceled, terminated or suspended in whole or part and the Contractor may be declared ineligible for further Government contracts and such other sanctions may be imposed and remedies invoked as provided by law.

1.5.2 Clayton Act and Cartwright Act.In accordance with Section 7103 of the California Public Contract Code, in entering into a public works contract or a subcontract to supply goods, services or materials pursuant to a public works contract, the Contractor or subcontractor offers and agrees to assign to the City all rights, and interest in and all causes of action it may have under Section 4 of the Clayton Act or under the Cartwright Act, arising from the purchases of goods, services or materials pursuant to this Contract.

1.5.3 Subletting and Subcontracting.Contractor acknowledges and agrees that it is the City’s intent for the provisions of the Subletting and Subcontracting Fair Practices Act (commencing with Section 4100 of the California Public Contract Code) to apply to all phases of the Work.

1.5.4 State Prevailing Wage Requirements.The Contractor’s duty to pay prevailing wages can be found under California Labor Code Section 1770 et seq. and the penalties for failure to pay prevailing wages and employ apprentices including forfeitures and debarment can be found in California Labor Code Sections 1775 and 1777.7, as such wage rates are amended from time to time. It is the Contractor’s responsibility to ensure payment of prevailing wages and inform all subcontractors that prevailing wage requirements apply to this construction project from commencement of the Contract through completion of the Work.
.aContractor shall pay all employees on said Work a salary or wage at least equal to the prevailing salary or wage established for such Work as set forth in the wage determinations and wage standards applicable to this Work. Contractor shall forfeit to the City, as penalty of not more than Two Hundred Dollars (200.00) for each calendar day or portion thereof, for each worker paid (either by him or any subcontractors under him) less than the prevailing rate described above on the Work provided for in this Contract, all in accordance with the State Labor Code and be subject to debarment from future public works projects with the City for a period not to exceed three (3) years. The Contractor shall not require more than eight (8) hours in a day from any person employed by him hereunder, except as provided in the Labor Code. The Contractor shall conform to the State Labor Code and it is agreed that the Contractor shall forfeit to the City, as penalty, the sum of Twenty Five Dollars ($25.00) for each worker employed in the execution of this Contract by the Contractor or any subcontractors for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in one day or 40 hours in one week in violation of said article. The Contractor shall indemnify, defend and hold harmless the City, its officials, officers, employees and agents from any and all liability including, but not limited to wages, Construction Services Agreement – Hardy & Harper, Inc.

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overtime pay, liquidated damages, penalties, court costs, and attorneys’ fees arising under any wage and hour law including, but not limited to the Federal Fair Labor Standards Act, as amended, for work performed by the Contractor’s employees for which the City may be found jointly or solely liable.

1.5.5 Employment of Apprentices.Pursuant to California Labor Code Section 1777.5, Contractor shall file with the appropriate Joint Apprenticeship Training Committee (“JATC”), a DAS- 140 form registering to train apprentices. Only those programs approved by the California Apprenticeship Council are applicable to accept DAS-140 registration forms. In addition, contractor is required to make appropriate training contributions as set forth in the prevailing wage determination to each appropriate JATC, or in the alternative, to the California Apprenticeship Council. .aContractor shall forfeit to the City, as penalty of not more than One Hundred Dollars ($100.00) for each calendar day and be subject to debarment from future public works projects with the City for a period not to exceed three (3) years for failure of Contractor to register to train apprentices or failure to pay the appropriate training contribution.

1.5.6 Certified Payrolls.Pursuant to California Labor Code Section 1776, Contractor shall keep weekly payroll records, which shall be certified under penalty of perjury to record the proper payment of prevailing wages for this Project. City shall accept computer printouts (which are then certified) in lieu of the standard form as long as the computer printout provides all of the same information as required on the certified payroll form. Failure of Contractor to provide the certified payrolls within ten (10) days of a written deficiency notice from the City shall result in a penalty of Twenty Five Dollars ($25.00) per day per worker for each day of violation. City maintains the right to withhold any and all funds due the Contractor and/or his/her subcontractors in the event that certified payrolls are not maintained and provided to the City upon request.

1.5.7 Employment Eligibility.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. Contractor also verifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Contract, and shall not violate any such law at any time during the term of this Contract. To the same extent and under the same conditions as Contractor, Contractor shall require all of its subcontractors performing any work relating to this Project or this Contract to make the verifications and comply with all requirements and restrictions provided herein. The City shall not be responsible for any costs or expenses related to Contractor’s compliance with the requirements provided for in this section. Should Contractor employ undocumented aliens for the performance of work covered by this Contract, and should any liability or sanctions be imposed against the City for such use of undocumented aliens, Contractor hereby agrees to and shall reimburse City for the cost of all liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

1.6 Key Personnel.

1.6.1 Contractor’s Representative. Contractor hereby designates Michael Murray, Vice-President of Contractor as Contractor’s Representative, who shall be deemed to be Contractor’s agent with express authority to bind Contractor with respect to all matters requiring Contractor’s approval or authorization.

1.6.2 City’s Representative. City hereby designates the Director of the Public Works Department, or his/her designee, as City’s Representative for this Project.

1.7 Independent Contractor.

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Contractor shall be an independent contractor, and neither Contractor, its officers, principals, employees, agents, volunteers and subcontractors (collectively hereinafter the “Contractor”), shall be considered employees or agents of City. Neither the City nor any of its officers, employees, agents or volunteers shall have any control over the conduct of the Contractor, except as expressly set forth in this Contract. Contractor expressly warrants that while engaged in carrying out and complying with any terms and conditions of this Contract that Contractor shall not at any time or in any manner, represent that Contractor is in any manner officers, employees, agents or volunteers of the City. Contractor shall obtain no rights to retirement, health care or any other benefit that accrue to City officials, officers, or employees.

Contractor expressly waives any claim to such rights.

1.8 Permits/Licenses.

Contractor verifies that it possesses all required “Class” Contractor’s License(s) adequate to perform the work herein described and that all subcontractors of Contractor have equivalent licenses for their specific trades. Contractor further verifies that it and its subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work under the Labor Code.

Contractor understands and assumes all risk and sole responsibility, without any adjustment to the Contract Price or Contract Time, for obtaining all permits, licenses and approvals that may be necessary for the Project to be completely constructed and ready for occupancy by City.

Prior to or at the time of execution of this Contract, the Contractor shall purchase a business license permit in conformance with Section 9-1.2 of the Compton Municipal Code.

2.0 SCOPE OF SERVICES

2.1It is the mutual understanding of the parties that all construction services to be performed hereunder shall be performed pursuant to the fee schedule, scope of work, the City Engineer and/or Project Manager, and other requirements contained in the Contract Documents. Contractor agrees to provide and furnish all necessary professionals, managers, supervisors, staff, equipment, materials, laborers, necessary tools, expendable equipment, all utility and transportation services and other facilities required to complete the following Work:

CITY-WIDE ROAD REPAIR SERVICES
The City-Wide Road Repair Services Project is aimed to provide city-wide street pavement services in accordance to the contract specifications and other contract documents. The project will consist of pavement repairs such as slurry seal and grid & overlay remediation methods designated areas throughout the City. The Contract shall provide 40,000 square yards of street preparation, 10,000 tons of asphalt installation, and adjust 12 manholes.

The City shall provide the Contractor with street segment(s) and/or location(s) where repairs and work are to be performed. Contractor shall provide staff with the time and costs to complete the work and schedule to perform the requested repairs. After review, the City shall authorize the Contractor to perform the requested repairs and work.

2.2 Management of Construction Work.

In addition to the Construction Work, Contractor shall cooperate with the City, City’s Engineer and/or any construction management firm it may utilize as concerns and is incidental to construction projects of the nature and scope of this Project. The services required are not intended in any manner to diminish the overall responsibility of Contractor for the full and final completion of the Construction Work within the time and cost constraints specified in this Contract.

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Contractor shall bear all costs associated with this Work, including, but not limited to, all professional, technical, clerical services, materials, tools, equipment, transportation, telephone, etc., used by Contractor in connection with this Work.

3.0 CONTRACT PRICE

3.1 Total Compensation.

As full and complete compensation for the faithful performance of all of the Work hereunder performed by Contractor in accordance with the Contract Documents, City shall pay, and Contractor agrees to accept, a not-to-exceed maximum sum of One Million Eight Hundred Seventy Nine Thousand Dollars ($1,879,000) (“Contract Price”), subject to adjustments for changes in the Work as may be agreed to in writing by the City and Contractor.

3.2 The Contract Price, unless changed by Change Order, represents the absolute limit of obligation or liability that City may ever have insofar as the cost for full and final completion of the Work, and the total of all payments to Contractor are concerned. Should additional amounts be required to be expended, over and above the Contract Price, to achieve completion of the Work, including project construction, and payment to Contractor, in accordance with this Contract, liability for and payment of such additional amounts shall be the sole responsibility of Contractor and its Contract surety herein, and City shall not be liable for same. Should the final cost of the construction work and Contractor’s compensation total less than the Contract Price, or any approved revision thereof, the difference shall inure to the benefit of City and no claim for all or any portion of said difference shall be valid against or payable by City.

3.3 Payments.

Progress payments may be made in arrears based on the percentage of work and deliverables completed by the Contractor. If Contractor fails to submit the required deliverable items according to schedule, the City shall have the right to delay payment and/or terminate this Contract in accordance with the provisions noted herein.

Contractor shall be reimbursed in accordance with the provisions of California Public Contract Code, Section 20104.50, upon receipt by the City of itemized invoices for services completed.

City will verify the accuracy of the request, correct the charges where appropriate and make payment to the Contractor in an amount equal to the amount of such invoice, as verified or corrected by City. Invoices shall be submitted no later than 45 calendar days after the performance of Work for which the Contractor is billing. Invoices shall be delivered or mailed to the Public Works Director/City Engineer or his/her designee at the following address: City of Compton, 205 South Willowbrook Avenue, Compton, California 90220.

3.4 Retention.

Contractor agrees to the withholding of a 5% retention fee by the City. Unless there is a dispute, within sixty (60) days after the date of completion of the Work, the retention fee shall be released.

If there is a dispute, the City may withhold from the final payment an amount not to exceed 150% of the disputed amount. For purposes of this section, “completion” means any of the following:
The occupation and use of the improvement by the City after cessation of labor on the Work; or
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The acceptance of the Work by the City; or
Cessation of labor on the Work of improvement for continuous period of at least 100 days, due to factors beyond the control of the City; or
Cessation of labor on the Work of improvement for continuous period of at least 30 days if the City files for record a notice of cessation or a notice of completion. -Or-
Pursuant to Section 22300 of the Public Contract Code, this Contract permits the substitution of securities for any monies withheld by a public agency to ensure performance under this Contract. At the request and expense of the Contractor, securities equivalent to the amount withheld shall be deposited with the public agency, or with a state or federally chartered bank as the escrow agent, who shall then pay such monies to the Contractor. Upon satisfactory completion of the Contract, the securities shall be returned to the Contractor.

Securities eligible for investment under this section shall include those listed in Government Code Section 16430 or bank or savings and loan certificates of deposit. The Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon.

In the alternative, under Section 22300, Contractor may request the City to make payment of earned retentions directly to the escrow agent at the expense of Contractor. Also at Contractor‘s expense, Contractor may direct investment of the payments in securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor. Upon satisfactory completion of the Contract, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from the City pursuant to the terms of Section 22300. Contractor shall pay to each subcontractor, not later than 20 days after receipt of such payment, the respective amount of interest earned, net of costs attributed to retention withheld from each subcontractor, on the amount of retention withheld to insure performance of Contractor.

3.5 Contractor’s Warranty of Contract Price.

Contractor warrants and represents that the Contract Price, includes without Limitation: (i) all overhead, general and administrative expenses, including without limitation, both on-site and off-site direct job expenses and home office overhead for the Project and all fees and assessments for building and other permits for which Contractor is responsible, licenses and inspections required for the Project, and (ii) includes and assumes that from time to time Contractor will encounter delays, difficult conditions arising from limited access to work areas or other interferences for which responsibility is not otherwise attributable to Contractor and unforeseen conditions at the Site not constituting differing site conditions. Except as otherwise provided in the Contract Documents, Contractor assumes full responsibility for its examination, investigation and understanding of such delays and difficulties which may be encountered, and shall be deemed to have included in its Contract Price a sum to cover the cost and expense associated therewith.

4.0 TIME

4.1 Time of Essence.

Time is of the essence with respect to all time limits set forth in the Contract Documents.

4.2 Term.

4.2.1 Construction Services. Contractor agrees to commence the Work provided for herein within 10 calendar days after receipt of the Notification to Proceed or as otherwise agreed in Construction Services Agreement – Hardy & Harper, Inc.

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writing with the Director of his/her designee, and continue in a diligent, professional and worker-like manner as directed by the City without interruption until the each of the requested segment(s) and/or location(s) identified by the City for repairs and work is completed or within a total of One Hundred Eighty (180) working days (this period is inclusive of time to procure needed materials, mobilization, etc.), whichever occurs first, unless this Contract is extended, suspended or terminated as provided herein. .aNotwithstanding any other provisions of this Contract, Contractor shall not be obligated to perform any work and the City shall not be obligated to accept or pay for any work performed by the Contractor prior to issuance of a Notice to Proceed. The City’s knowledge of work being performed prior to issuance of the Notice to Proceed shall not obligate the City to accept or pay for such work.

Contractor shall provide all required contract bonds and evidences of insurance prior to commencing work pursuant to this Contract.

4.3 Extensions.

The Contract Time shall not be extended except by a Change Order issued in accordance with the Contract Documents.

4.4 Compensation for Delay.

4.4.1 Sole Remedy. Extensions of time adjusting the Contract Time shall be Contractor's sole and exclusive remedy for delay for reasons beyond its reasonable control.

4.5 Liquidated Damages.

IF CONTRACTOR FAILS TO ACHIEVE SUBSTANTIAL COMPLETION OF THE WORK WITHIN THE PERIODS OF TIME REFERRED TO IN PARAGRAPH 4.2.1 OF THIS CONTRACT (AS ADJUSTED

BY CHANGE ORDER FOR EXTENSIONS PERMITTED BY THE CONTRACT DOCUMENTS), CITY WILL

INCUR DAMAGES, THE AMOUNT OF WHICH WILL BE DIFFICULT OR IMPOSSIBLE TO ESTABLISH

WITH CERTAINTY, INCLUDING BUT NOT LIMITED TO INEFFICIENCY AND DISRUPTION OF CITY'S OPERATIONS. THE PARTIES THEREFORE AGREE THAT FOR EACH DAY PAST THE COMPLETION DATES REFERRED TO IN PARAGRAPH 4.2.1 (AS ADJUSTED BY CHANGE ORDER FOR THE

EXTENSIONS PERMITTED BY THE CONTRACT DOCUMENTS) THAT THE WORK IS NOT

SUBSTANTIALLY COMPLETE, CONTRACTOR SHALL PAY CITY THE SUM OF ONE THOUSAND DOLLARS ($1,000) FOR EACH CALENDAR DAY DELAYED BEYOND THE TIME PRESCRIBED FOR FINISHING THE WORK AS LIQUIDATED DAMAGES. THIS SUM REPRESENTS A REASONABLE

EFFORT TO ESTIMATE FAIR COMPENSATION FOR THE FORESEEABLE LOSSES CITY WILL INCUR

ON ACCOUNT OF DELAYS IN SUBSTANTIAL COMPLETION OF THE WORK AND IS NOT A PENALTY. IF LIQUIDATED DAMAGES ARE NOT PAID, THE CITY MAY DEDUCT THE AMOUNT

THEREOF FROM ANY MONEY DUE OR THAT MAY BECOME DUE TO THE CONTRACTOR UNDER THIS CONTRACT IN ADDITION TO ANY OTHER REMEDY AVAILABLE TO THE CITY. CONTRACTOR

SHALL NOT BE ASSESSED LIQUIDATED DAMAGES IF THE DELAY IS CAUSED BY ACTS OF GOD WHICH COULD NOT REASONABLY HAVE BEEN FORSEEN OR GUARDED AGAINST; STRIKES, BOYCOTTS OR LIKE OBSTRUCTIVE ACTIONS BY CONTRACTOR’S OR IT’S SUBCONTRACTOR’S EMPLOYEES WHICH ARE BEYOND CONTRACTOR’S CONTROL; FAILURE OF CITY TO PERFORM;

OR FAILURE OF A PUBLIC UTILITY TO RELOCATE OR REMOVE AN EXISTING UTILITY REQUIRED FOR PERFORMANCE OF THIS CONTRACT. CITY AND CONTRACTOR HEREBY INDICATE THEIR CONTRACT TO THE FOREGOING LIQUIDATED DAMAGES PROVISION:
____________________________ ________________________________________ City of Compton – City Manager Contractor – Hardy & Harper, Inc.

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4.6 Construction Schedule.

Contractor shall prepare and submit to City a detailed Construction Baseline Schedule (showing all milestones with critical activities on the Baseline Schedule) for each street segment(s) and/or location(s) identified and requested for repairs and Work prior to commencing construction. No Work shall be started until the Schedule has been approved in writing by the City. The Construction Schedule shall be prepared, utilizing a time-scaled bar chart showing continuous flow from left to right and major milestones which are critical to the completion of the construction of the project and a clearly highlighted critical path.

Durations and specific calendar dates shall be clearly and legibly shown for the start and finish of each activity. Activities shall be in sufficient detail to demonstrate a practical plan to complete the construction within the Contract Time.

5.0 CONSTRUCTION PHASE

5.1 General.

5.1.1Contractor shall completely perform, to City’s satisfaction, all of the Work in accordance with this Contract and other Contract Documents.

5.1.2Unless otherwise provided in the Contract Documents, Contractor shall furnish, or cause to be furnished, and shall pay for all labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation and other facilities and services necessary for proper execution and completion of the Work, whether temporary or permanent and whether or not incorporated or to be incorporated into the Work.

5.1.3Contractor shall attend meetings with City as frequently as is necessary to the expeditious performance of the Work for the purpose of discussing construction issues which may arise during the Project.

5.2 Supervision of Work.

Contractor shall supervise and direct the Work, using Contractor’s best skill and attention.

Contractor shall be solely responsible for and have control over all construction means, methods, techniques, sequences and procedures and for coordinating all portions of the Work.

5.3 Permits, Approvals, Licenses and Notices.

Contractor shall obtain and pay for (i) all permits, approvals, licenses and easements; and (ii) government charges and inspection fees pertaining to the construction of the Project.

5.4 Safety.

5.4.1Contractor shall have overall responsibility for safety precautions and programs in the performance of the Work.

5.4.2Contractor shall seek to avoid injury, loss or damage to persons or property by taking reasonable steps to protect:
.aEmployees and all other persons at the Project sites/locations; Construction Services Agreement – Hardy & Harper, Inc.

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.bMaterials and equipment stored on the Project sites/locations or off the Project sites/locations at locations for use in performance of the Work; and .cThe Project and all property located at the Project sites/locations, whether or not said property or structures are part of the Project or involved in the Work.

5.4.3Contractor shall designate an individual at the Project sites/locations in the employ of Contractor who shall act as Contractor’s designated safety representative with a duty to prevent accidents.

5.4.4Losses not insured under property insurance which may arise from the performance of the Work, to the extent of the negligence attributed to such acts or omissions of Contractor or anyone for whose acts Contractor may be liable, shall be promptly remedied by Contractor at Contractor’s cost and without reimbursement by City as a cost of work, or in any other manner.

5.4.5If City deems any part of the Work or Project sites/locations unsafe, City may require Contractor, without assuming responsibility for Contractor’s safety program, to immediately stop performance of the Work or take corrective measures. Neither City’s order nor Contractor’s action in response thereto shall be the basis for adjustment in the Contract Price or Contract Time.

5.4.6Should this work involve digging trenches or other excavations that extend deeper than four (4) feet below the surface, the Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any:
.aMaterial the Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code that is required to be removed to a Class I, Class II or Class III disposal Project sites/locations. .bSubsurface or latent physical conditions at the Project sites/locations differing from those indicated by information about the Project sites/locations made available to bidders prior to deadline for submitting bids.
.cUnknown physical conditions at the Project sites/locations of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract.

5.4.7Contractor represents that in advance of the excavation of any trench deeper than five (5) feet, it shall submit for acceptance by the City or a registered civil or structural engineer, employed by the City, to whom authority to accept has been delegated, in advance of excavation, of 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.

5.5 Substitutions.

There shall be no substitutions in the Work or procedures or methods specified by the Contract Documents for performing the Work, unless Contractor first receives written approval for such substitution from City.

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5.6 Trade Contractors.

5.6.1If applicable, Contractor shall employ only Trade Contractors who are duly licensed and qualified to perform the Work consistent with the Contract Documents. Each Trade Contractor, of every tier, shall be fully bound to the Contract Documents in the same manner as Contractor is bound to City for all the requirements of the Contract Documents to the extent applicable to the Trade Contractor’s portion of the Work.

5.6.2Contractor assumes responsibility for the proper performance of the Work of Trade Contractors, of every tier, and any acts or omissions in connection with such performance. Contractor shall coordinate the activities of all Trade Contractors, of every tier.

5.7 Separate Contractors.

5.7.1Contractor agrees to reasonably cooperate with, and coordinate its activities so as not to interfere with, those Separate Contractors performing work at the Project sites/locations, so that the Project can be completed in an orderly and coordinated manner without delay.

5.7.2If any part of the Work depends upon other work performed by Separate Contractors, Contractor shall, prior to proceeding with that part of the Work, inspect such other work and promptly notify the City of any circumstance or fact that would render such other work unacceptable for the proper performance of the Work. Contractor shall not proceed with such part of the Work without further direction from the City. Contractor shall be liable for losses incurred due to any defects in such other work not so reported by Contractor.

6.0 ACCOUNTING RECORDS

6.1 Access.

Contractor shall keep, and shall include in its contracts with its Trade Contractors, provisions requiring its Trade Contractors to keep, full and detailed accounts in accordance with the requirements of the Contract Documents and exercise such controls as may be necessary for proper financial management of the Work. Such accounting and control systems shall comply with prevailing custom and practice for similar Projects and be satisfactory to City and shall include preservation of such records for a period of four (4) years after final completion of the Work, or for such longer period as may be required by law.

Contractor shall allow, and shall include in its contracts with its Trade Contractors, provisions requiring its Trade Contractors to allow, City or its authorized representative(s) and accountants, within twenty-four (24) hours after requested by City, to inspect, audit or reproduce any and all records relating to the Project. Such records shall include all information, materials and data of every kind and character (hard copy, as well as computer readable data if it exists), that may, in City's judgment, have any bearing on or pertain to any matters, rights, duties or obligations relating to the Project, including without limitation the following: Contracts; purchase orders; leases; contracts; commitments; arrangements; notes; schedules; daily diaries; superintendent reports; drawings; receipts; vouchers; memoranda; accounting records; job cost reports, job cost files (including documentation covering negotiated settlements); backcharge logs; general ledgers; documentation of cash and trade discounts earned, insurance rebates and dividends; any documents customarily maintained by contractors performing work on a cost plus a fee basis; other documents that City otherwise deems necessary to substantiate charges or claims related to the Project.

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6.2 Enforcement.

Contractor hereby consents and agrees that any failure by Contractor to provide access to records as provided in this Article 6.0 shall be specifically enforceable by issuance of a preliminary and/or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony, to compel Contractor to permit access, inspection, audit and/or reproduction of the records or to require delivery of the records to City for inspection, audit and/or reproduction.

7.0 INDEMNITY, BONDS

7.1 Indemnity.

7.1.1 General Indemnity. To the fullest extent allowed by law, Contractor hereby agrees to defend, indemnify, and hold harmless City, its City Council, boards and commissions, officials, officers, agents, employees, representatives, insurers and volunteers (hereinafter collectively referred to as "City") through legal counsel acceptable to City, from and against any and all Losses arising directly or indirectly from, or in any manner relating to, any of the following: (i) any act or omission (negligent or otherwise) of Contractor, or by its Trade Contractors, of any tier; (ii) performance or nonperformance by Contractor or its Trade Contractors, of any tier, of any of the obligations under this Contract or the other Contract Documents; (iii) the construction activities of Contractor, or its Trade Contractors, of any tier, either on the Site or on other properties; (iv) the payment or nonpayment of money by Contractor, or by any of its Trade Contractors, of any tier; or (v) any personal injury, property damage or economic loss to third persons or entities associated with the performance or nonperformance by Contractor, or any of its Trade Contractors, of any tier; provided, however, that nothing contained herein shall be construed as obligating Contractor to indemnify the City for losses resulting from the City’s sole negligence, active negligence or willful misconduct. Contractor shall pay City for any costs incurred in enforcing the defense and/or indemnity obligations under this provision. Nothing in this Section 7.1 shall be construed to give rise to any implied right of indemnity in favor of Contractor against the City.

7.1.2 Survival. The provisions of Paragraph 7.1.1 shall survive complete performance or termination of this Contract.

7.1.3 Severability. The invalidity of any portion of Paragraph 7.1.1 shall not affect or render unenforceable any other portions thereof.

7.2 Bonds.

7.2.1 Bond Forms. Prior to commencing any construction of the Work, and concurrently with the execution of this Contract, Contractor shall file with City good and sufficient "Labor and Material Payment" and "Performance" bonds in the amount of one hundred percent (100%) of the Contract Price for each. Contractor shall take steps to assure that the penal sum of the bonds shall be increased by the amount of any additive adjustments to the Contract Price due to Change Orders. The bonds shall be on forms satisfactory to and approved by City, signed by both Contractor and surety and properly notarized.

Should any bond required hereunder or any surety on such bond become or be determined by City to be insufficient, it shall be replaced within ten (10) days by a bond that fully complies with the requirements of this Paragraph 7.2.1. No further payments to Contractor for work performed shall be made or become due until Contractor has fully complied with the requirements of this Section 7.2.

7.2.2 Duration. The payment bond shall remain in effect until sixty (60) days after final completion of the Work and all claims by Contractor and Trade Contractors, of every tier, have been Construction Services Agreement – Hardy & Harper, Inc.

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satisfied. The performance bond provided by Contractor shall remain in effect for the duration of the period of all warranties required by the Contract Documents and shall assure faithful performance of all of Contractor's obligations under the Contract Documents, including, without limitation, all obligations that survive final completion or termination, such as but not limited to Contractor's obligations under its warranties, guarantees and to defend and indemnify City.

7.2.3 Premiums. The premiums for all bonds are included in the Contract Price and shall be paid by Contractor.

7.2.4 Obligees. The performance and payment bonds shall name the City as obligee.

7.2.5 Changes. Change Orders, Field Orders, Modifications, Scope Changes and other Changes in the Work and adjustments to the Contract Price or Contract Time shall in no way release or exonerate Contractor or its sureties from their obligations and notice thereof shall be waived by such sureties.

7.2.6 Communications. City shall have the right to communicate with Contractor's sureties with respect to matters that are related to Contractor's performance of its obligations under the Contract Documents. Such communications shall not create or be interpreted as creating any contractual relationship between City and any such surety.

8.0 INSURANCE

8.1 Insurance Requirements.The 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 secured all insurance required under this Section 8.0.

As a condition precedent to the effectiveness of this Contract for work to be performed hereunder and without limiting the Contractor’s indemnification of the City, Contractor shall provide and maintain at its own expense during the term of this Contract the following program(s) of insurance covering its operations hereunder. Failure on the part of the Contractor to procure or maintain insurance shall constitute a material breach upon which the City may immediately terminate this Contract.

Contractor agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City. In the event that the Contractor's operations are suspended for failure to maintain required insurance coverage, the Contractor shall not be entitled to an extension of time for completion of the Work because of production lost during suspension.

8.2 Minimum Scope of Insurance.Insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way lessen or limit the liability of the Contractor under the terms of the Contract. Contractor shall procure and maintain, at its own costs and expense, any additional kinds and amounts of insurance that, in its own judgment, may be necessary for its proper protection of the work.

All insurance required hereunder shall be primary with respect to any insurance maintained by the City and shall not call on the City’s program for contributions. Program(s) of insurance shall include:

8.2.1 Commercial General Liability.Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01 11 88, with minimum limits of at least One Million Dollars ($1,000,000.00) per occurrence, and if written with an aggregate, the aggregate shall be double the per occurrence limit. Defense costs shall be paid in addition to the limits. Products and Construction Services Agreement – Hardy & Harper, Inc.

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completed operations coverage shall be maintained for a minimum of two years after completion of the Work.
.aThe policy shall contain no endorsements or provisions limiting coverage for (1) explosion, collapse or underground hazard (XCU); (2) products and completed operations; (3) contractual liability; (4) third party action over claims; (5) cross liability exclusion for claims or suits by one insured against another; or (6) contain any exclusions contrary to the Contract.

8.2.2 Automobile Liability.Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 06 92 covering "Any Auto" (Symbol 1) with minimum limits of One Million Dollars ($1,000,000.00) each accident. If Contractor does not own any company vehicles, the requirement may be satisfied by providing (a) a Personal Automobile Liability policy for the Contractor's own vehicle (as specified in the following paragraph); and (b) a non-owned auto endorsement to the Commercial General Liability policy if Contractor may use vehicles of others (e.g., vehicles of employees). Independent Contractors may not be able to purchase a Business Automobile policy and consideration may be given to accepting a Personal Automobile Liability policy. Requirements should stipulate "Automobile Liability Insurance with a limit of not less than $1,000,000 each accident.”

8.2.3 Workers' Compensation.Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance, with a limit of not less than One Million ($1,000,000.00) per accident for bodily injury and disease. Workers' Compensation and Employer's Liability insurance may not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this.

8.3 Endorsements.Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.

8.3.1The policy or policies of insurance required by Section 8.2.1 (Commercial General Liability) shall be endorsed to provide the following:
.aAdditional Insured: The City, its officials, officers, employees, agents, and volunteers shall be named as “additional insured” with regard to liability and defense of suits or claims arising out of the performance of the Contract.
.bAdditional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Contractor; or (4) contain any other exclusions contrary to the Contract.
.cCancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City, except ten (10) days written notice shall be provided for non-payment of premium.

8.3.2The policy or policies of insurance required by Section 8.2.2 (Automobile Liability) shall be endorsed to provide the following:
.aCancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City, except ten (10) days written notice shall be provided for non-payment of premium.

8.3.3The policy or policies of insurance required by Section 8.2.3 (Workers' Compensation) shall be endorsed to provide the following:

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.aWaiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties. .bCancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City, except ten (10) days written notice shall be provided for non-payment of premium.

8.4 Waiver of Subrogation.Required insurance coverage’s shall not prohibit Contractor from waiving the right of subrogation prior to a loss. Contractor shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.

8.5 Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

8.6 Evidence of Insurance.The Contractor, concurrently with the execution of the Contract, and as a condition precedent to the effectiveness thereof, shall deliver certified copies of the required policies on forms approved by 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. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or 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.

8.7 Acceptability of Insurers.Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

8.8 Insurance for Subcontractors.All subcontractors shall be included as additional insured’s under the Contractor's policies, or the Contractor shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an “additional insured” to the subcontractor's policies. Contractor shall submit proof of compliance with this provision upon request of the City.

9.0 CHANGE ORDERS

9.1 Changes.City has the right, in its sole discretion, to make whatever changes it deems necessary or desirable to the Work; no change ordered by City shall entitle Contractor to an adjustment of the Contract Price or Contract Time unless it constitutes a Scope Change.

9.2 Change Orders.A Change Order is a written order signed by City and Contractor, and issued after execution of this Contract, authorizing an adjustment in the Contract Price and/or Contract Time. The Contract Price and Contract Time can be adjusted only by Change Order. No action, conduct, omission, prior failure or course of dealing by City shall act to waive, modify, change or alter the requirement that Change Orders must be in writing signed by City and that such written Change Orders are the exclusive method for effecting any adjustment to the Contract Price and Contract Time.

10.0 CERTIFICATIONS
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10.1 Certification of Contractor.I, Michael Murray, HEREBY CERTIFY that I am the Vice - President, and duly authorized representative of the Contractor firm of Hardy & Harper, Inc. and that, except as hereby expressly stated, neither I nor the above firm that I represent have: (i) employed or retained for a commission, percentage, brokerage, contingent fee, or other consideration, any firm or person (other than a bona fide employee working solely for me or the above consultant) to solicit or secure this Contract; nor (ii) agreed, as an express or implied condition for obtaining this Contract, to employ or retain the services of any firm or person in connection with carrying out the Contract; nor (iii) paid, or agreed to pay, to any firm, organization or person (other than a bona fide employee working solely for me or the above consultant) any fee, contribution, donation, or consideration of any kind, for or in connection with, procuring or carrying out this Contract.

10.2 Debarment and Suspension Certification.The Contractor, under penalty of perjury, certifies that, except as noted below, he/she/it or any other person associated therewith in the capacity of owner, partner, director, officer, manager:

10.2.1Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal, State or local agency; and

10.2.2Has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal, State or local agency within the past 3 years; and

10.2.3Does not have a proposed debarment pending; and

10.2.4Has not been indicted, convicted, or had a civil judgment rendered against him/her/it by a court of competent jurisdiction in any matter involving fraud or official misconduct in connection with obtaining, attempting to obtain, or performing a public (Federal, state or local) transaction or contract under a public transaction; violation of Federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property within the past 3 years; and

10.2.5Are not presently indicted or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in the preceding paragraph; and

10.2.5Have not had one or more public transactions (Federal, State or local) terminated for cause or default within the past 3 years.

If there are any exceptions to this certification, insert the exceptions in the following space. [Supply exceptions on separate page]
For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.
[Attach separate page]
These certifications are a material representation of fact upon which reliance was placed when this transaction was made or entered into. The above certifications are part of this Contract. Signing this Contract on the signature portion thereof shall also constitute signature of the above Certifications. ________________________________________ ___________________ Michael Murray, Vice-President (Date) Construction Services Agreement – Hardy & Harper, Inc.

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11.0 DEFAULT AND TERMINATION

11.1 Default by Contractor.

11.1.1 Notice of Default. Without limitation to any of City’s other rights or remedies at law or in equity, City shall have the right to terminate this Contract in the event that Contractor fails or refuses to perform any of the obligations set forth in this Contract or the other Contract Documents, and fails to cure such default in the manner required hereafter.

11.1.2 Opportunity to Cure Default. Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) business days after receipt of written notice of such default from City; provided, however, that if the breach cannot reasonably be cured within such time then Contractor will commence to cure the breach within two (2) days and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) working days after receipt of such written notice.

11.2 City's Rights and Remedies Upon Default.

11.2.1 Remedies Upon Default. In the event that Contractor fails to cure any breach of this Contract within the time periods set forth above, then City may pursue any remedies available under law or equity, including, without limitation, the following:
.a Delete Certain Services. City may, without terminating this Contract, delete certain portions of the Work, reserving to itself all rights to recover losses related thereto. .b Perform and Withhold. City may, without terminating this Contract, engage others to perform the Work or portion of the Work that has not been performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to recover losses related thereto.
.c Suspend this Contract. City may, without terminating this Contract and reserving to itself all rights to recover losses related thereto, suspend all or any portion of this Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Price or Contract Time, and shall have no liability to Contractor for adjustment to the Contract Price, Contract Time, or for losses, if City directs Contractor to resume Work. .d Terminate this Contract. City may terminate all or any part of this Contract for cause according to the notice provisions set forth in this Contract, reserving to itself all rights to recover losses related thereto.
.e Invoke the Performance Bond. City may, with or without terminating this Contract and reserving to itself all rights to recover losses related thereto, exercise its rights under the Contractor’s performance bond.

11.2.2 Rights Cumulative. All of City’s rights and remedies under this Contract is cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as “material” shall not be construed as implying that other breaches not so designated are not material nor shall such designations be construed as limiting City’s right to terminate or the exercise of its other rights or remedies for default to only material breaches. City shall determine whether there has been noncompliance with the Contract Documents so as to warrant Construction Services Agreement – Hardy & Harper, Inc.

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exercise by City of its rights and remedies for default. No termination or action taken by City after termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all losses suffered by City.

11.2.3 Monies. In the event of a termination or suspension of all or a portion of the Work due to a default by Contractor, City shall have the right, without releasing Contractor or its sureties from liability for failure to fulfill this Contract, to withhold all or a portion of the monies owing or retained until final completion of the Work. Any cost over and above the Contract Price arising from the suspension of operations of this Contract and the completion of the Work shall be paid by Contractor's sureties. Contractor will be paid any surplus monies remaining after all contract disputes have been resolved and finally determined.

11.2.4 Delays by Sureties. Without limitation to any of City’s other rights or remedies under the law or in equity, City has the right to suspend the performance by Contractor's sureties in the event of any of the following: (i) failure of the sureties to begin work within a reasonable time in such manner as to ensure full compliance with the Contract Documents within the Contract Time; (ii) abandonment of the Work; (iii) if at any time City is of the opinion the Work is unnecessarily or unreasonably delayed; (iv) willful violation of any terms of this Contract; (v) failure to perform according to this Contract or the other Contract Documents; or (vi) failure to follow instructions of City for performance of the Work within the Contract Time. City will serve notice of such failure upon the sureties and in the event the sureties neglect or refuse to cure the breach within the time specified in such notice, City shall have the power to suspend the operation or any part thereof of Contractor’s sureties.

11.2.5 Contractor Obligations. Upon receipt of a notice of termination for default, Contractor shall, unless the notice states otherwise, perform each of the obligations set forth in Paragraph

11.4.1, below.

11.2.6 Damages to City.
.a Reservation of Remedies. City will be entitled to all damages available under the law, and all rights in equity, in the event of Contractor's breach of this Contract or the other Contract Documents.
.b Deductions. If City suffers a loss due to Contractor's nonperformance, then such loss shall be deducted from the amounts withheld. Should the amount withheld exceed the amount deducted, the balance will be paid to Contractor or its designee upon completion of the Project. If the loss incurred by City exceeds the amount withheld, Contractor shall be liable to City for the difference and shall promptly remit same to City.
.c No Release. If, however, City elects to terminate this Contract for cause, all monies due Contractor or retained under the terms of the Contract Documents shall be forfeited to City. Such forfeiture shall not release Contractor or its sureties from liability for failure to fulfill this Contract. Contractor and its sureties will be credited with the amount of monies forfeited toward any greater sum they may be liable for in connection with Contractor's default.

11.3 Suspension by City for Convenience.City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time, as City may determine, with such period of suspension to be computed from the date of the written order. Without limitation to the foregoing, Contractor acknowledges that issuance of a suspension order by City due to circumstances relating to City’s compliance with the California Environmental Quality Act is foreseeable and that such suspension order, regardless of its duration, shall not be considered a breach by City of this Contract. Upon Construction Services Agreement – Hardy & Harper, Inc.

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receipt of a suspension order, Contractor shall, at City’s expense, comply with its terms and take all reasonable steps to minimize costs allocable to the Work covered by the suspension order during the period of work stoppage. Within the period of the above noted aggregate time, or such extension to that period as is agreed upon by Contractor and City, City shall either cancel the suspension order or it shall have the right, without incurring a liability to Contractor for lost profits or consequential damages, to delete the Work covered by such suspension order by issuing a Change Order.

11.3.1 Resumption. If a suspension order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued adjusting the Contract Price and/or the Contract Time for additional costs of work and delay necessarily caused by such suspension.

11.3.2 Suspension Order Required. The provisions of this Section 11.3 shall not apply if a suspension order is not issued by City. A suspension order shall not be required to stop the Work as permitted or required under any other provision of the Contract Documents.

11.4 Termination Without Cause.City shall have the option, at its sole discretion and without cause, to terminate this Contract in part or in whole by giving thirty (30) days' written notice to Contractor as provided herein. Contractor agrees to accept such sums as allowed under this Section 11.4 as its sole and exclusive compensation and waives any claim for other compensation or Losses, including, but not limited to, Loss of anticipated profits, Loss of revenue, lost opportunity, or other consequential, direct, indirect, incidental Losses or damages, of any kind.

11.4.1 Contractor Obligations. Upon receipt of notice of termination without cause, Contractor shall, unless the notice directs otherwise, do the following:
.aImmediately discontinue performance to the extent specified in the notice; .bPlace no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of its obligations as is not discontinued;
.cProvide to City a description, in writing no later than two (2) business days after receipt of the notice of termination, complete copies of all subcontracts, purchase orders and contracts that are outstanding, including any change orders, amendments and modifications thereto, status of payments and balance owing, the status of performance and claims by Trade Contractors, together with such other information as City may determine necessary in order to decide whether to accept assignment of, or request Contractor to terminate the subcontract, purchase order or contract; .dPromptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and
.eThereafter continue only such performance as may be necessary to preserve and protect work already completed or in progress and to protect materials and equipment on the Site or in transit thereto.

11.4.2 Final Billing. Following termination without cause and within thirty (30) days after receipt of a complete and timely billing from Contractor seeking payment of sums authorized by this Paragraph 11.4.2, City shall pay to Contractor as its sole and exclusive compensation for performance under this Contract the following:

Construction Services Agreement – Hardy & Harper, Inc.

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.aThe Contract Price earned and payable as of the date of termination, less sums previously paid to Contractor;
.bPlus, reasonable costs of work of Contractor and Trade Contractors for (i) demobilizing, and (ii) administering the close out of its participation in the Project (including, without limitation, all billing and accounting functions) for a period of no longer than thirty (30) days after receipt of the notice of termination;

11.4.3 Trade Contractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts with its Trade Contractors permitting termination for convenience by Contractor on terms that are consistent with this Contract and that afford no greater rights of recovery against Contractor for termination than are afforded to Contractor.

11.5 Contractor's Rights and Remedies.

11.5.1 Contractor's Remedies. Contractor may terminate this Contract for cause only upon the occurrence of one of the following:
.aThe work is stopped for one hundred sixty (160) consecutive days, through no act or fault of Contractor, any Trade Contractor, of any tier, or any employee or agent of any of them, due to issuance of an order of a court or other governmental authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. .bCity fails to make payment of sums that are not in good faith disputed by City and fails to cure such default within (i) ninety (90) days after receipt of notice from Contractor notifying City of the default; and (ii) an additional thirty (30) days notice to City notifying it of its intention to terminate this Contract.

11.5.2 Continuous Performance. Provided that Contractor is paid undisputed sums due under this Contract, Contractor shall not stop, delay or interrupt continuous performance of the Work by reason of any dispute or disContract with City, including, without limitation, any disputes or disContracts over payments of funds that are disputed in good faith by City.

12.0 MISCELLANEOUS PROVISIONS

12.1 Warranties.Contractor warrants and guarantees all equipment, materials, supplies and work furnished on the Project against defective construction or workmanship for a period of one (1) year following completion of the Project, except when a longer guaranty is provided by the supplier or manufacturer of the equipment. The Contractor warrants to the City that all materials and equipment furnished under this Contract will be new unless specified and that all work will be of good quality, free from faults and defects and in conformance with the Contract Documents. All work not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective.

Contractor expressly agrees to act as co-guarantor of such equipment and materials and the Contractor shall supply City with all warranty and guaranty documents relative to equipment and materials incorporated in the Work and guaranteed by their suppliers or manufacturers.

If within one (1) year after the date of completion of the Project, any of the Work is found to be defective or not in accordance with the Contract documents, Contractor shall correct it or cause it to be corrected promptly after receipt of a written notice from the City to do so, at the Contractor’s expense.

Construction Services Agreement – Hardy & Harper, Inc.

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This obligation shall survive completion or termination of the Contract. The City shall give notice promptly after discovery of the condition.

12.2 Governing Law.This Contract shall be governed by the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Los Angeles. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Los Angeles.

12.3 Waiver of Jury Trial.Contractor voluntarily waives its right to a jury trial of any cause of action, claim, counter-claim or cross-complaint in any action, proceeding or hearing on any matter whatsoever arising out of, or in any way connected with, this Contract, the relationship between City and Contractor, Contractor’s performance on the Project, or the enforcement of any remedy under any law, statute or regulation now or hereafter in effect. Contractor shall include this provision for waiver of jury trial right in its contracts with its Trade Contractors who provide work to the Project, waiving the right of a jury trial in any action involving City as a party, whether by joinder, consolidation, counter-claim, cross-complaint or otherwise.

12.4 Severability.Should any part of this Contract be declared by a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of either party to enter into or carry out, such decision shall not affect the validity of the remainder of this Contract, which shall continue in full force and effect, provided that the remainder of this Contract, absent the unexcised portion, can be reasonably interpreted to give effect to the intentions of the parties.

12.5 Successors and Assigns.This Contract shall be binding on successors, assigns and legal representatives of and persons in privity of contract with City or Contractor. Contractor shall not assign, sublet or transfer an interest in this Contract without advance written approval of City. Assignment, subletting or transfer will not release Contractor from any of its obligations to City.

12.6 Interpretation.Contractor and City acknowledge that the terms of this Contract has been mutually negotiated and that such documents shall not be interpreted against either City or Contractor on the basis that either party was responsible for or in control of the drafting of such documents.

12.7 Survival.All provisions of this Contract which by their nature continue beyond the termination or completion of performance under this Contract, including, without limitation, those obligations pertaining indemnification, insurance and confidentiality, shall survive and continue in force after either termination or completion of performance by Contractor.

12.8 Conflict of Interest.The Contractor represents, warrants and agrees that to the best of its knowledge, it does not presently have, nor will it acquire during the term of this Contract, any interest direct or indirect, by Contract, employment or otherwise, or as a partner, joint venturer or shareholder (other than as a shareholder holding a one percent (1%) or less interest in publicly traded companies) or affiliate with any business or business entity that has entered into any Contract, subcontract or arrangement with the City. Upon execution of this Contract and during its term, as appropriate, the Contractor shall disclose in writing to the City, any other Contract or employment during the term of this Contract by any other persons, business or corporation in which employment will or may likely develop a conflict of interest between the City interest and the interests of the third parties.

12.9 City’s Quality Assurance Plan.The City shall evaluate Contractor’s performance under this Contract. Such evaluation will include assessing Contractor’s compliance with all Contract terms and performance standards. Contractor deficiencies which the City determines are severe or continuing and that may place performance of the Contract in jeopardy if not corrected will be reported to the City.

The report will include improvement/corrective action measures taken by the City and the Contractor. If Construction Services Agreement – Hardy & Harper, Inc.

Road Repair Services Project (City-Wide Road Repairs)
Resolution No. _____/Public Works Department
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improvement does not occur consistent with the corrective action measures, the City may terminate this Contract or seek other remedies as specified in this Contract.

12.10 Copyrights.No report, maps, or other documents produced in whole or in part under this Contract shall be the subject of an application for copyright by or on behalf of the Contractor. All documents become the property of the City who holds all the rights to said data.

12.11 Confidentiality of Reports.The Contractor shall keep confidential all reports, information and data received, prepared or assembled pursuant to performance hereunder. Such information shall not be made available to any person, firm, corporation or entity without the prior written consent of the City.

12.12 Employees of Contractor.Worker’s Compensation: Contractor understands and agrees that all persons furnishing services to the City pursuant to this Contract are, for the purposes of workers’ compensation liability, employees solely of Contractor. Contractor shall bear sole responsibility and liability for providing workers’ compensation benefits to any person for injury arising from an accident connected with services provided to the City under this Contract.

Professional Conduct: The City does not and will not condone any act, gestures, comments or conduct from the Contractor’s employees, agents or subcontractors which may be construed as sexual harassment or any other type of activity or behavior that might be construed as harassment. The City will properly investigate all charges of harassment by residents, employees, agents or subcontractors.

12.13 Patent Rights.The City will hold all the patent rights with respect to any discovery or invention which arises or is developed in the course of, or under this Contractor.

12.14 Waivers.A waiver by either party to this Contract of any breach of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.

12.15 Federal and State Withholding Taxes.Contractor shall be responsible for paying when due all federal and state income withholding taxes for all earning under this Contract. Contractor agrees to indemnify City for any claims, costs, losses, fees, penalties, interest, or damages suffered by City resulting from Contractor’s failure to comply with this provision.

12.16 Entire Contract.The Contract Documents represent the entire and integrated Contract between City and Contractor and supersedes all prior negotiations, representations or Contracts, either written or oral. The Contract Documents may be amended or modified only by Change Order.

Nothing contained in the Contract Documents shall be for the benefit of, create any contractual relationship with, or give rise to a cause of action in favor of any third party.

12.17 Water Pollution Control.

12.17.1 Best Management Practices (BMPs).Contractor, without limitation, shall be responsible to provide and implement Best Management Practices to comply with National Pollution Discharge Elimination System (“NPDES”) standards and practices. The Contractor shall be responsible, to the fullest extent possible, not to permit any contaminants, including soil, to enter any drainage system.

Contractor shall be responsible to maintain equipment so that oil, grease, gasoline, diesel fuel, et al., does not contaminate areas subject to run-off. The Contractor and its surety shall fully indemnify the City for any pollution damage and/or cleaning costs. All construction of off-site and on-site improvements shall adhere to NPDES Best Management Practices to prevent deleterious materials or pollutants from entering the City or County storm drain systems. Best Management Practices shall be defined as any program, technology, Construction Services Agreement – Hardy & Harper, Inc.

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process, site criteria, operating method, measure or device which controls, prevents, removes or reduces pollution. Contractor shall obtain and refer to the California Storm Water Best Management Practice Handbooks, Volume 3 Construction BMP Handbook and the Los Angeles County Department of Public Works Best Management Practices Handbook for Construction Activities.

The City, as permittee, is subject to enforcement actions by the State Water Resources Control Board, Environmental Protection Agency and private citizens. The City may assess the Contractor a penalty of One thousand Dollars ($1,000.00) for each calendar day that the Contractor has not fully implemented the BMPs specified for the contract and/or is otherwise in noncompliance with these provisions. In addition, the City will deduct, from the final payment due the contractor, the total amount of any fines levied on the City, plus legal and staff costs, as a result of the Contractor’s lack of compliance with these provisions and/or less than complete implementation of the specified BMPs.

12.18 Execution Authority.The person(s) executing this Contract on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Contract on behalf of said party, (iii) by so executing this Contract, such party is formally bound to the provisions of this Contract, and (iv) the entering into this Contract does not violate any provision of any other Contract to which said party is bound. The Contractor shall complete a W9 Form in the form provided by the City.

13.0 NOTICES

13.1 Delivery. All notices, demands or requests to be given under this Contract shall be given in writing and conclusively shall be deemed received when: (a) delivered personally, or (b) on the fifth (5 th) day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided, or (c) one (1) business day after send by facsimile transmission.

13.2 Addresses.All notices, demands, requests or approvals from Contractor to City shall be addressed to the City at:

City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: Director, Public Works Department
(310) 605-5505
(310) 605-6326 – Fax
with copies to:

City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager
All notices, demands or requests from City to Contractor shall be addressed to:

Hardy & Harper, Inc.
32 Rancho Circle
Lake Forest, California 92630
Attn: Michael Murray
(714) 444-1851
Construction Services Agreement – Hardy & Harper, Inc.

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(714) 444-2801 - Fax

13.3 Change in Address.In the event of any change of address, the moving party is obligated to notify the other party of the change of address in writing. Each party may amend, supplement and update the notice list to add, delete or replace any listed individuals; however, the amendment must be in writing.

IN WITNESS WHEREOF, Contractor has executed this Contract and the City, by its City Manager, who is authorized to do so, has executed this Contract.

HARDY & HARPER, INC.

CONTRACTOR
Dated: ________________ By ____________________________________ Michael Murray, Vice - President

CITY OF COMPTON
Approved by:

Dated: ________________ By ____________________________________ Willie A. Hopkins, Jr, City Manager
Approved as to form:

By _______________________________ Dated: __________________ Eric J. Perrodin, City Attorney
ATTEST:

Dated: ___________________ By ____________________________________ Vernell McDaniel, City Clerk
September 24, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: MUNICIPAL WATER DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ISSUE A PURCHASE ORDER

TO THE METROPOLITAN WATER DISTRICT OF SOUTHERN

CALIFORNIA (MWD) FOR THE PURCHASE OF IMPORTED WATER
FOR FISCAL YEAR 2024-2025 IN THE AMOUNT OF EIGHT HUNDRED THOUSAND DOLLARS ($800,000).

SUMMARY
Adoption of this resolution will authorize the City Manager to issue a purchase order to the Metropolitan Water District of Southern California (MWD) for the purchase of imported water for fiscal year 2024-2025 in the amount of Eight Hundred Thousand Dollars ($800,000).

BACKGROUND
Southern California doesn’t produce enough water locally to meet the demands of its population and economy. The region imports more than half of the water it uses, most of it through Metropolitan Water District of Southern California (MWD).

MWD brings this water to the region from two sources: the Sacramento and San Joaquin rivers, via the State Water Project, and the Colorado River, via the Colorado Aqueduct.

These imported supplies provide a foundation of water reliability in Southern California.

These critical imported resources cannot easily be replaced, MWD works hard to ensure their continued reliability in the face of climate change.

Metropolitan Water District of Southern California (MWD) services 26 public water agencies — cities, municipal water districts and one county water authority — that then deliver supplies directly or indirectly to 19 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties.

MWD has imported water from the Colorado River since 1941 and from Northern California since the early 1970s. MWD is the largest single contractor of the State Water Project and a major supporter of Southern California water conservation and water recycling programs, along with other local water management activities.

The Compton Municipal Water Department (CMWD) delivers approximately 8,000 acre- feet of water on an annual basis to the City of Compton populace. This water delivery is provided through the City and WRD groundwater pumping (5780) acre feet, and

15.15. Staff Report – Metropolitan Water District of Southern California September 24, 2024, Page 2
Metropolitan Water District (MWD) imported water (2220) acre feet needed for total water delivery service.

STATEMENT OF THE ISSUE
Annually, the Compton Municipal Water Department achieves its water delivery goals of 8000-acre feet by groundwater pumping of City water wells, securing the groundwater pumping rights through the Water Replenishment District of Southern California (WRD) and (as needed) imported water supplies through the Metropolitan Water District of Southern California (MWD) to prepare for emergency water conditions where water wells can be shut down due to repair and/or maintenance.

Staff has estimated the fees for imported water is Eight Hundred Thousand Dollars ($800,000) for fiscal year 2024-2025.

FISCAL IMPACT
Funds in the amount of Eight Hundred Thousand Dollars ($800,000) have been budgeted for this expenditure in Account Number 5000-850-000-4251 (Water Purchases) in the City of Compton Municipal Water Department’s 2024-2025 Fiscal Year Budget.

RECOMMENDATION
Staff recommends that Council adopt this resolution.

JOSE GARFIAS, INTERIM GENERAL MANAGER

MUNICIPAL WATER DEPARTMENT
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS

CITY MANGER
RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ISSUE A PURCHASE ORDER TO THE

METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA (MWD) TO PURCHASE IMPORTED WATER FOR FISCAL YEAR 2024-2025 FOR EIGHT HUNDRED THOUSAND DOLLARS ($800,000).

WHEREAS, Southern California doesn’t produce enough water locally to meet the demands of its population and economy; and
WHEREAS, MWD brings this water to the region from two sources: the Sacramento and San Joaquin rivers, via the State Water Project, and the Colorado River, via the Colorado Aqueduct; and
WHEREAS, these imported supplies provide a foundation of water reliability in Southern California; and
WHEREAS, the goals and objectives of the Compton Municipal Water Department (Department) includes maintaining the City’s water infrastructure and providing top tier water service to its customers and in doing so must purchase imported water and water rights; and WHEREAS, the purchase of imported water from the Metropolitan Water District of Southern California (MWD) will assist the Department in the fulfillment of its goals and objectives; and
WHEREAS, the Department anticipates purchasing 650-acre-feet of imported water for its customers from the MWD for Fiscal Year 2024-2025; and WHEREAS, despite acquiring additional groundwater rights through lease agreements, the City needs to ensure it has sufficient water to meet its anticipated demands; and
WHEREAS, it is estimated that the cost for MWD imported water for fiscal year 2024- 2025 will be Eight Hundred Thousand Dollars ($800,000); and WHEREAS, funds have been allocated in the Department’s Fiscal Year 2024-2025 budget in Account No. 5000-850-000-4252 (Water Purchase).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:

Section 1.That the City Manager is hereby authorized to issue a purchase order to the Metropolitan Water District of Southern California (MWD) in the amount of Eight Hundred Thousand Dollars ($800,000).

Section 2. That funds in the amount of Eight Hundred Thousand Dollars $800,000 is allocated in the Fiscal Year 2024-2025 Budget in the Water Purchase Fund and increase expenditures in Account No. 5000-850-000-4252 (Water Purchases) by Eight Hundred Thousand Dollars $800,000 for this expenditure.

Section 3. That a certified copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Municipal Water Department.

Section 4.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _____________ day of ______________, 2024.

Resolution No._______________

________________________________

MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the __________ day of ____________________, 2024.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
____________________________________

CITY CLERK OF THE CITY OF COMPTON
September 24, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: MUNICIPAL WATER DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ISSUE A PURCHASE ORDER

TO THE WATER REPLENISHMENT DISTRICT OF SOUTHERN

CALIFORNIA (WRD) FOR GROUNDWATER PRODUCTION
ASSESSMENT FEES FOR FISCAL YEAR 2024-2025 IN THE AMOUNT OF FIVE MILLION DOLLARS ($5,000,000.)

SUMMARY
Adoption of this resolution will authorize the City Manager to issue a purchase order to the Water Replenishment District of Southern California (WRD) for groundwater production assessment fees for fiscal year 2024-2025 in the amount of Five Million Dollars ($5,000,000).

BACKGROUND
The Water Replenishment District (WRD) is the largest groundwater agency by population in the state of California, managing and protecting local groundwater resources for four million residents. WRD's service area covers a 420-square-mile region of southern Los Angeles County, the most populated county in the United States. The 43 cities in the service area, including a portion of the City of Los Angeles, and other unincorporated parts of LA County use about 220,000 acre-feet (72 billion gallons) of groundwater annually which accounts for nearly half of the region's water supply needs.

WRD ensures that a reliable supply of high-quality groundwater is available through replenishment with recycled water and stormwater capture. WRD is responsible for monitoring and testing groundwater throughout the region using effective management principles.

The City of Compton Municipal Water Department (CMWD) serves the City’s water demands through two (2) sources; groundwater production and imported water purchased from the Metropolitan Water District (MWD). The CMWD delivers approximately 8,000 acre-feet of water on an annual basis to the City of Compton populace. This water delivery is provided through City groundwater pumping rights and a combination of lease-in groundwater pumping rights (5780) acre feet, and MWD imported water (2220) acre feet needed for total water delivery service.

STATEMENT OF THE ISSUE

16.16. Staff Report – Water Replenishment District of Southern California September 24, 2024, Page 2
Annually, the Compton Municipal Water Department (CMWD) achieves its water delivery goals by groundwater pumping of our own water wells and securing the groundwater pumping rights through the Water Replenishment District of Southern California.

The groundwater pumped by municipal water utilities, water companies and others are imposed a Replenishment Assessment fee (RA) by the WRD for basin and recharge purposes. Funds generated by the RA covers the cost of water purchased to replenish the two (2) largest and most utilized groundwater basins in Southern California.

Staff has estimated that the assessment fees for pumping groundwater is Five Million Dollars ($5,000,000) for fiscal year 2024-2025.

FISCAL IMPACT
Funds in the amount of Five Million Dollars have been budgeted for this expenditure in Account Number 5000-850-000-4251 (Water Purchases) in the City of Compton Municipal Water Department’s 2024-2025 Fiscal Year Budget.

RECOMMENDATION
Staff recommends that Council adopt this resolution.

JOSE GARFIAS, INTERIM GENERAL MANAGER

MUNICIPAL WATER DEPARTMENT
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS

CITY MANGER
RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ISSUE A PURCHASE ORDER TO THE

WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA (WRD) FOR GROUNDWATER PRODUCTION ASSESSMENT FEES FOR FISCAL YEAR 2024- 2025 IN THE AMOUNT OF FIVE MILLION DOLLARS ($5,000,000.) WHEREAS, the Water Replenishment District (WRD) is the largest groundwater agency by population in the state of California, managing and protecting local groundwater resources for four million residents; and
WHEREAS, WRD ensures that a reliable supply of high-quality groundwater is available through replenishment with recycled water and stormwater capture; and WHEREAS, the Compton Municipal Water Department (“Department”) provides for the City’s water demands through two (2) sources: groundwater production and imported water purchased from Metropolitan Water District of Southern California (MWD); and WHEREAS, the Department delivers approximately 8,000 acre-feet of water on an annual basis whereby water delivery is provided through City groundwater pumping rights, a combination of leased-in groundwater pumping rights 5780 acre- feet, and MWD imported water of 2,220 acre-feet needed for the total delivery amount; and WHEREAS, pumping water from the underground basin through WRD assists the Department in the fulfillment of its goals and objectives; and WHEREAS, groundwater pumped by municipal water utilities water companies and others are imposed a Replenishment Assessment fee (RA) by WRD for basin recharge purposes and these funds generated from the RA cover the cost of water purchased to replenish the two largest and most utilized groundwater basins in Southern California; and WHEREAS, it is estimated that the assessment fees for pumping groundwater is Five Million Dollars ($5,000,000) for fiscal year 2024-2025

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:

Section 1.That the City Manager is hereby authorized to issue a purchase order to the Water Replenishment District of Southern California (WRD) in the amount of Five Million Dollars ($5,000,000).

Section 2. That Five Million Dollars ($5,000,000) is allocated in the Adopted 2024- 2025 Fiscal Year Budget in Account No. 5000-850-000-4251 (Water Purchases) for this expenditure.

Section 3. That copies of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Municipal Water Department.

Section 4.That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _____________ day of ______________, 2024.

Resolution No._______________

________________________________

MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on the __________ day of ____________________, 2024.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERS-
NOES: COUNCIL MEMBERS-
ABSTAIN: COUNCIL MEMBERS-
ABSENT: COUNCIL MEMBERS-
____________________________________

CITY CLERK OF THE CITY OF COMPTON