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and to require any and all subcontractors and any other person or entity involved in the Project to do the same.
Worker’s Compensation Insurance:
• Contractor has no employees and is exempt from workers’ compensation requirements.
• Contractor carries workers’ compensation insurance for all employees. d. All policies required by this section shall be secured from insurers authorized to do business in the State of California with an “A” policyholder’s rating or better and a financial rating of at least Class VII, in accordance with the current Best’s Ratings.
e. Contractor agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and name as additional insureds the parties to this Agreement. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section.
f. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City’s review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated. g. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Project, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or their officers, employees, servants, volunteers, agents and independent contractors.
5. Insurance Documentation
a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein.
Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Contractor shall ensure that the most current certification of insurance shall be delivered to and retained by the City at all times until expiration of the term of this Agreement as defined in Section 9. b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the comprehensive general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages.
c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and their officers, employees, servants, volunteers, agents and independent contractors.
d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled or non-renewed by either party, or reduced in coverage or limits (except by paid claims) unless the insurer has provided the City with at least thirty (30) days prior written notice of said cancellation, non-renewal, or reduction, with the exception that only ten (10) days prior written notice shall be required in the event of cancellation for nonpayment of premium.
e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and their officers, employees, servants, volunteers, agents and independent contractors.
6. Security
a. Contractor shall, concurrently with the execution hereof and to the extent not already completed, furnish a payment bond at no expense to the City, in substantially the same form as that attached hereto and made part hereof as Exhibit “B,” in an amount equal to Three Million, Four Hundred Thirty Eight Thousand, Two Hundred Forty Nine Dollars and Twenty Cents ($3,438,249.20), as security of the payment of all persons performing labor and furnishing materials in connection with this Agreement. To be acceptable, the surety company must be authorized to do business and have an agent for service of process in California, be on the accredited list of the United States Treasury Department, and have an "A" policyholder's rating and a financial rating of Class V, or better, in accordance with the current Best's Rating. b. Contractor shall, concurrently with the execution hereof and to the extent not already completed, furnish a performance bond at no expense to the City, in substantially the same form as that attached hereto and made part hereof as Exhibit “C,” or deposit an amount with the City equal to Three Million, Four Hundred Thirty Eight Thousand, Two Hundred Forty Nine Dollars and Twenty Cents ($3,438,249.20), as security for the faithful performance of this Agreement. To be acceptable, the surety company must be authorized to do business and have an agent for service of process in California, be on the accredited list of the United States Treasury Department, and have an "A" policyholder's rating and a financial rating of Class V, or better, in accordance with the current Best's Rating. c. The surety on any and all bonds and the form thereof shall be satisfactory to the City Attorney.
d. The payment bond shall remain in force and shall not be released until at least seven (7) months after the date of recordation of the Notice of Completion or Notice of Acceptance, whichever occurs first. The performance bond shall remain in force until at least (1) year after the date of final acceptance of the Project, unless the City determines, in its sole and absolute discretion, to release the Performance Bond earlier and notifies Contractor of the same in writing.
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
7. Compensation; Payments
a. Contractor shall be paid compensation not to exceed Three Million, Four Hundred Thirty Eight Thousand, Two Hundred Forty Nine Dollars and Twenty Cents ($3,438,249.20), for the services rendered by Contractor pursuant to this Agreement, including profit, labor and materials, in accordance with the Scope of Services. b. Contractor shall invoice the City for the performance of the services under this Agreement in the amount agreed upon by the parties herein. Subject to the retention provisions below, Contractor shall be paid the amount specified in the invoice within 30 days of receipt by the City, provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement.
c. Pursuant to Public Contract Code section 9203, the City shall retain no less than five percent of the compensation to be paid to Contractor which shall be released to the Contractor no later than sixty (60) days from the date of the City's acceptance of the work pursuant to this Agreement.
8. Extra Work and Change Orders
Extra work and change orders shall become a part of this Agreement once the extra work or change order is approved in writing and signed by the City and Contractor, prior to the commencement of any extra work or change in work covered by the change order. The City’s form change order shall be used for both extra work and a change in work. The change order must describe the scope of the extra work or change in work, and the cost to be added or subtracted from this Agreement. The City shall not require Contractor to perform any extra work or a change in work without written authorization.
A change order shall not be enforceable against the City unless the change order complies with this provision.
9. Term
Contractor will perform the services set forth in the Scope of Services and in any approved change orders pursuant to section 1 of this Agreement, the term of which shall commence as of November 20, 2023, and shall expire one (1) year following the City's acceptance of the Project pursuant to this Agreement, or upon release of the Performance Bond in accordance with Section 6.d. of this Agreement, whichever occurs first.
10. Independent Contractor
Contractor shall at all times during the term of this Agreement perform the services described in this Agreement as an independent contractor, and hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors.
11. Civil Code Section 1542 Waiver
a. Contractor expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
“A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” b. This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (CalPERS) that are only afforded to employees and not independent contractors. Contractor further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
_____
Initials
12. Acceptance of Work
Acceptance of the Project shall be by action of the City Council or its designee.
Neither the acceptance nor prior inspections or failure to inspect shall constitute a waiver by the City of any defects in the Project. From and after acceptance, the Project shall be owned and operated by the City. As a condition to acceptance, Contractor shall certify to the City in writing that all of the Project performance has been performed in strict conformity with this Agreement and that all costs have been paid, satisfactory to the City, guaranteeing such performance.
13. Warranty
a. In addition to Contractor's other obligations under this Agreement, Contractor warrants all work and materials to be of good quality and fit for the purpose and intended use for a duration that shall continue until expiration of the term of this Agreement as described in Section 9, or the longest period permitted by law, whichever is later. If any defects in materials or workmanship become evident prior to expiration of the warranty granted in this Section, the Contractor shall, at its own expense, make any repair(s) or replacement(s) necessary to restore the work to full compliance with the this Agreement. Contractor shall also repair, replace and restore any other work which is displaced in correcting defective work as well as other portions of the work which the City by reason of such defects reasonably suspects may also be defective. In the event of a failure to commence with the compliance of above-mentioned conditions within seven (7) calendar days after being notified in writing or failure to diligently pursue such compliance to completion, the City is hereby authorized to proceed to have the defects repaired and made good at the expense of Contractor who hereby agrees to pay the cost and charges therefor immediately on demand.
b. If, in the opinion of the City, nonconforming work creates a dangerous condition or requires immediate correction or repair to prevent further loss to the City or to prevent interruption of operations, the City shall attempt to give the Contractor notice.
If Contractor cannot be contacted or does not comply with the City’s request for correction within a reasonable time as determined by the City, the City may proceed to make such correction or provide such repair. The costs of such correction or repair shall be charged against Contractor, who agrees to make payment for said costs upon Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
demand. Corrective action by the City will not relieve Contractor or Contractor's sureties or insurers of the guarantees and indemnities of this Agreement. c. This section does not in any way limit the City’s remedies available under the law, or the guarantee or warranty on any items for which a longer guarantee is specified or on any items for which a manufacturer or supplier gives a longer guarantee or warranty period. Contractor agrees to act as a co-guarantor with such manufacturer or supplier and shall furnish the City all appropriate guarantees or warranty certificates upon completion of the Project. No manufacturer's guarantee period shall in any way limit the liability of Contractor or Contractor's sureties and insurers under the indemnity or insurance provisions of this Agreement.
14. Indemnification
a. Contractor shall defend, indemnify and hold harmless the City, their officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) arising out of the performance of this Agreement, except for any such claim arising out of the sole or active negligence or willful misconduct of the City, or their officers, agents, employees or volunteers.
b. If Contractor should subcontract all or any portion of the work to be performed under this Agreement, Contractor shall require each subcontractor to indemnify, hold harmless and defend the City and each of its officers, officials, employees, agents and volunteers to the same extent as Contractor is required in the preceding paragraph.
c. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. d. Notwithstanding the foregoing provisions of this section, Contractor shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Contractor’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Contractor’s control, or for which Contractor is without fault.
e. This section shall survive termination or expiration of this Agreement.
15. Default
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen days after Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the injured party shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings.
16. Licenses, Certifications and Permits
Contractor represents that it has obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement.
17. Labor Laws, Prevailing Wages
a. All work or services performed within the State of California pursuant to this Agreement by Contractor, Contractor’s employees and independent contractors, or Contractor’s subcontractors and its subcontractors’ employees and independent contractors shall be performed by individuals lawfully permitted to perform such work or services in the State of California and/or the United States of America pursuant to all applicable State and/or Federal labor laws, rules and regulations including, but not limited to, any State or Federal law, rule or regulation prohibiting the employment of undocumented workers or any other person not lawfully permitted to perform said work or services in the State of California or the United States of America. b. Contractor represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race, denial of family and medical care leave, religious creed (including religious dress and grooming practices), color; national origin (including language use restrictions), ancestry, physical disability or mental disability (including HIV and Aids), medical condition (cancer and genetic characteristics), genetic information, military or veteran status, marital status, gender, gender identity, gender expression, sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), age or sexual orientation.
Unless otherwise permitted under the law, Contractor shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
c. City and Contractor acknowledge that the Project is a public work to which prevailing wages apply. Contractor and all subcontractors pursuant to this agreement shall comply with the Davis-Bacon Fair Labor Standards Act, 23 USC 113. Contractor agrees to not pay less than the higher wage rate between the minimum wage rates determined by the Director of California Department of Industrial Relations and the Federal Wage General Decision, Number: CA20220025, attached hereto in Exhibit “D” and incorporated herein by this reference.
Contractor and all of Contractor’s subcontractors, if any, shall pay each employee engaged in all applicable trades or occupation not less than the prevailing hourly wage rate for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work. In accordance with the provisions of Section 1770 of the California Labor Code (“Labor Code”), the Director of Department of Industrial Relations of the State of California has determined the general prevailing rates of wages and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Labor Code Section 1773.8, apprenticeship or other training programs authorized by Labor Code Section 3093 and similar purposes applicable to the work to be done. Said wages are available through the California Department of Industrial Relations’ Internet website at http://www.dir.ca.gov/dlsr/PWD/index.htm and are on file at City Hall, as provided in Section 1773.2 of the Labor Code. Said rates shall be posted at the Project site where work is to be performed, in accordance with Labor Code Section 1773.2. Contractor shall access a copy of the wage rate determination and shall make all subcontractors, if any, aware of the determination. As the wage determination for each craft reflects an expiration date, it shall be the Contractor’s responsibility to ensure that the prevailing wage rates of concern are current and paid.
Subject to the safe harbor provisions of Labor Code Section 1775, Contractor shall forfeit to the City an amount not to exceed two hundred dollars ($200) for each calendar day or portion thereof, as set by the Labor Commissioner in accordance with the terms of Labor Code section 1775, for each laborer, workmen or mechanics employed that is paid less than the general prevailing rate of wages herein referred to and stipulated for any work done under the proposed contract, by him, or by any subcontractor under him, in violation of the provisions of the Labor Code, and in particular, Sections 1770 to 1781 inclusive. Contractor and any and all or its subcontractors shall forfeit to the City twenty-five dollars ($25) for each worker employed in the performance of this Agreement for each calendar day during which the worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Section 1813 of the Labor Code. In the event the total cost of the Project is thirty thousand dollars ($30,000.00) or more, Contractor shall further comply with provisions set forth in Labor Code Section 1777.5 pertaining to employment of properly registered apprentices, including without limitation the obligation to (i) pay employed apprentices the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of craft or trade to which he or she is registered; (ii) employ apprentices in at least the ratio as set forth in said section; (iii) submit contract award information to an applicable apprenticeship program; and (iv) contribute to California Apprenticeship Council.
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
d. Contractor and all subcontractors hired to perform any work under the Project shall keep accurate payroll records, including the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each worker, in accordance with Section 1776 of the Labor Code. Payroll records shall be on forms provided by the Division of Labor Standards Enforcement (“DLSE”) or in a manner containing the same information as the forms provided by the DLSE. Failure to comply with the above may result in monetary penalties to the Contractor or affected subcontractor. Payroll records shall be verified by written declaration made under penalty of perjury, that the information contained in the records is true and correct. Contractor and any and all subcontractors shall make a certified copy of all payroll records available for inspection by DLSE, the City or any member of the public and otherwise provide certified copies of such records to any of the foregoing within ten (10) days of Contractor’s and subcontractor’s receipt of written request therefor. Failure to comply with the above may result in monetary penalties, in accordance with Labor Code Section 1776(d) and (h). e. Notwithstanding anything else to the contrary, Contractor hereby acknowledges that all contractors and subcontractors must be registered with the Department of Industrial Relations (“Department”) pursuant to Labor Code Section 1725.5 in order to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract, including this Agreement, that is subject to the payment of prevailing wages. The Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. In accordance with Section 3700 of the Labor Code, Contractor must secure payment of compensation to all Contractor’s employees. Contractor represents and warrants that Contractor is registered with the Department in the manner prescribed by the Department and has paid the requisite application fee, as required by Labor Code Section 1725.5. Moreover, prior to Contractor entering into any contracts with any subcontractor, Contractor shall obtain proof that all such subcontractors have also registered with the Department in accordance with Section 1725.5.
18. Required Contract Provisions for Federal Aid Construction Contracts (FHWA-1273)
This Contract is funded with Federal-Aid Highway funds subject to provisions under Title 23 of the United States Code (23 USC). As such the Contractor agrees to the following provisions titled, “Required Contract Provisions for Federal Aid Construction Contracts”, excluding Attachment A – Employment and Material Preference for Appalachian Development Highway System or Appalachian Local Access Road Contracts. The Contractor agrees to insert these provisions, unaltered, into each subcontract and further require their inclusion in all lower tier subcontracts excluding purchase orders, rental agreements, and other agreements for supplies or services. Complete form 1273 is attached hereto as Exhibit “D” and incorporated herein by this reference.
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
19. Notices
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:
To the City: Daniel Porras, Assistant City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411, ext. 109
Facsimile: (760) 288-3129
Email: [email protected]
To Contractor:
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.
20. General Conditions
a. Severability. If any one or more of the sentences, clauses, paragraphs or sections contained herein is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein.
b. Governing Law. The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in accordance with California law. c. Cumulative Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other party. d. Venue. All proceedings involving disputes over the terms, provisions, covenants or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in Riverside County, California. e. Litigation Expenses and Attorneys Fees. In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof.
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
f. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original.
g. Entire Agreement. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and supersedes any and all other agreements, either oral or written, between the City and Contractor. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement. No agreement, statement, or promise not contained in this Agreement shall be valid or binding. h. Conflicts of Interest. Contractor covenants that it does not have any interest, nor shall it acquire an interest, directly or indirectly, which would conflict in any manner with the performance of Contractor’s services under this Agreement. In the event the City officially determines that Contractor must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Contractor shall file the subject Form 700 with City Hall, as specified under the Notice provisions of this Agreement, pursuant to the written instructions provided by the City.
i. Termination. This Agreement may be terminated by the City immediately for cause. The City may terminate this Agreement without cause upon thirty (30) days’ written notice of termination. Upon termination, Contractor shall be entitled to compensation for services performed up to the effective date of termination. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.
CITY OF DESERT HOT SPRINGS
_______________________________
Doria Wilms, Interim City Manager
ATTEST:
_______________________________
Jerryl Soriano, CMC, City Clerk
APPROVED AS TO FORM:
_______________________________
Jennifer A. Mizrahi, City Attorney
POWELL CONSTRUCTORS
INCORPORATED
_____________________________
Mike Powell, President
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
EXHIBIT “A”
SCOPE OF SERVICES
SEE ATTACHED PROPOSAL
Item Number: 10.
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City Project: 3021 City of Desert Hot Springs
EXHIBIT “B”
PAYMENT BOND
We, , as Principal, and _____________________, as
Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Desert Hot Springs (“CITY”) and those for whose benefit this bond insures in the sum of ___________________________ U.S. Dollars and No Cents ($_________). CITY and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference, for the construction of improvements for the property referenced in said agreement. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by CITY and Principal. If Principal or any of Principal's contractors or subcontractors, fails to pay any of the persons named in Section 9000 et seq. of the California Civil Code employed in the performance of the agreement for materials furnished or for labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, then Surety shall pay the same in an amount not exceeding the sum specified above, and also shall pay, in case suit is brought upon this bond, such reasonable attorneys' fees as shall be fixed by the court.
Surety agrees that it shall pay the amounts due the persons above named and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement. If Surety fails to perform within the times specified in the agreement, Surety shall promptly on demand deposit with CITY such amount as CITY may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall extend, notwithstanding any controversy between Principal and CITY regarding Principal's failure under the agreement. Principal and Surety agree that any payment by Surety pursuant to this paragraph should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligation herein and shall be deemed proper payment as between Principal and Surety.
This bond shall insure to the benefit of any and all of the persons named in Section 9000 et seq. of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this bond.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder, or the plans and specifications, or any matters unknown to Surety which might affect Surety's risk, shall in any way affect its obligation on this bond, and it does hereby waive notice thereof.
Principal and Surety agree that should CITY become a party to any action on this bond, that each will also pay CITY'S reasonable attorneys' fees incurred therein in addition to the above sums.
Item Number: 10.
C-16
City Project: 3021 City of Desert Hot Springs
Executed this _____________ day of __________________, 20___.
Seal of Corporation By______________________________
Authorized Representative of Principal
Title_____________________________
(ATTACH ACKNOWLEDGEMENT) By______________________________ Authorized Representative of Principal
Title_____________________________
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( ) _____________________________ Surety Company
_________________________ _____________________________ Name Street Number
_________________________ _____________________________ Street Number City and State
_________________________ _____________________________ City and State Telephone Number
_________________________ _____________________________ Telephone Number
By_____________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
( ) _____________________________
Company Agent
______________________________
Street Number
APPROVED AS TO FORM: ______________________________
City and State
________________________ ______________________________ City Attorney
Furnish the name, address and phone number of the company agent as well as the surety company.
Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement.
Item Number: 10.
C-17
City Project: 3021 City of Desert Hot Springs
EXHIBIT “C”
PERFORMANCE BOND
We, , as
Principal, and , as
Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Desert Hot Springs (“CITY”) for payment of the penal sum of _________________________________ U.S. Dollars and No Cents ($________).
CITY and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference, for the construction of improvements for the property referenced in said agreement. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by CITY and Principal.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal shall in all things stand to and abide by, and well and truly keep and perform all of the covenants, conditions, and provisions in said agreement, and any alteration thereof made as therein provided, on Principal's part to be kept and performed at the time and in the manner therein specified, and shall indemnify and save harmless the CITY, CITY’S engineer, and their consultants, and each of their officials, directors, officers, employees and agents, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
Surety agrees that should it fail to take over and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement, Surety will promptly on demand deposit with CITY such amount as CITY may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall exist, notwithstanding any controversy between Principal and CITY regarding Principal's failure under the agreement, and payment by Surety should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligations herein and shall be deemed proper payment as between Principal and Surety.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder or the plans and specifications, or any matters unknown to Surety which may affect Surety's risk shall in any wise affect its obligation on this bond, and it does thereby waive notice thereof.
Principal and Surety agree that if the CITY is required to engage the services of an attorney in connection with the enforcement of this bond, each shall pay CITY'S reasonable attorneys' fees incurred, with or without suit, in addition to the above sum.
Item Number: 10.
C-18
City Project: 3021 City of Desert Hot Springs
Executed this day of , 20___.
Seal of Corporation
By____________________________________
Authorized Representative of Principal
Title__________________________________
By____________________________________
Authorized Representative of Principal
Title__________________________________
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES)
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( )____________________________________ Surety Company
_________________________ ____________________________________ Name Street Number
_________________________ ____________________________________ Street Number City and State
_________________________ ____________________________________ City and State Telephone Number
_________________________ ____________________________________ Telephone Number
By____________________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
()____________________________________
Company Agent
____________________________________
Street Number
APPROVED AS TO FORM: ____________________________________ City and State
________________________ ____________________________________ City Attorney Telephone
Furnish the name, address and phone number of the company agent as well as the surety company.
Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement.
Item Number: 10.
C-19
City Project: 3021 City of Desert Hot Springs
AFFIDAVIT FOR CO-PARTNERSHIP FIRM
STATE OF CALIFORNIA )
)ss
COUNTY OF ____________ )
__________________________________________________________, being first duly sworn, deposes and says:
That he is a member of the co-partnership firm designated as ______________________________________________________________________________ which is the party making the foregoing bid proposal; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person.
That he has been and is duly vested with authority to make and sign instruments for the co-partnership by
______________________________________________________________________________ ______________________________________________________________________________ who constitute the other members of the co-partnership. ______________________________
Signature
Subscribed and sworn (affirmed)
to before me this
_________________day of _________________________, 20____ ________________________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 10.
C-20
City Project: 3021 City of Desert Hot Springs
AFFIDAVIT FOR CORPORATION BIDDER
STATE OF CALIFORNIA )
)ss
COUNTY OF ___________ )
__________________________________________________________, being first duly sworn, deposes and says:
That he is _______________________________________________________________of, ______________________________________________________________________________ a corporation which is the party making the foregoing bid proposal; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person. ______________________________
Signature
Subscribed and sworn (affirmed)
to before me this
_________________day of _________________________, 20___ _______________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 10.
C-21
City Project: 3021 City of Desert Hot Springs
AFFIDAVIT FOR INDIVIDUAL BIDDER
STATE OF CALIFORNIA )
)ss
COUNTY OF ___________ )
__________________________________________________________, being first duly sworn, deposes and says:
That he is the party making the foregoing bid proposal; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person.
______________________________
Signature
Subscribed and sworn (affirmed)
to before me this
_________________day of _________________________, 20___ _________________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 10.
C-22
City Project: 3021 City of Desert Hot Springs
AFFIDAVIT FOR JOINT VENTURE
STATE OF CALIFORNIA )
)ss
COUNTY OF ___________ )
_____________________________________________________, being first duly sworn, deposes and says:
That he is ________________________________________________of, ________________________________________________________________, one of the parties submitting the foregoing bid proposal as a joint venture and that he has been and is duly vested with the authority to make and sign instruments for and on behalf of the parties making said bid proposal who are:
______________________________________________________________________________ ______________________________________________________________________________ _____________________________________________________________________________; that such bid proposal is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any other bidder or person to put in a sham bid proposal or that such other person shall refrain from bidding; and has not in any manner sought by collusion to secure any advantage against the City of Desert Hot Springs or any person interested in the proposed contract, for himself or for any other person. ______________________________
Signature
Subscribed and sworn
to before me this
_________________day of _________________________ , 20___ _______________________________________
Signature of Officer Administering Oath
(NOTARY PUBLIC)
Item Number: 10.
C-23
City Project: 3021 City of Desert Hot Springs
EXHIBIT “D”
CITY OF DESERT HOT SPRINGS CONTRACT FOR
Federal Project No.:
City Project No.:
Federal Requirements for Federal Aid Construction Projects:
- Form FHWA 1273, and
- Davis-Bacon Wage Determinations
Item Number: 10.
C-24
City Project: 3021 City of Desert Hot Springs
FHWA-1273 -- Revised July 5, 2022
REQUIRED CONTRACT PROVISIONS
FEDERAL-AID CONSTRUCTION CONTRACTS
I. General
II. Nondiscrimination
III. Non-segregated Facilities
IV. Davis-Bacon and Related Act Provisions
V. Contract Work Hours and Safety Standards Act
Provisions
VI. Subletting or Assigning the Contract
VII. Safety: Accident Prevention
VIII. False Statements Concerning Highway Projects
IX. Implementation of Clean Air Act and Federal Water
Pollution Control Act
X. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion
XI. Certification Regarding Use of Contract Funds for
Lobbying
XII. Use of United States-Flag Vessels:
ATTACHMENTS
A. Employment and Materials Preference for Appalachian
Development Highway System or Appalachian Local Access
Road Contracts (included in Appalachian contracts only) I. GENERAL
1. Form FHWA-1273 must be physically incorporated in each construction contract funded under title 23, United States Code, as required in 23 CFR 633.102(b) (excluding emergency
contracts solely intended for debris removal). The contractor (or subcontractor) must insert this form in each subcontract and further require its inclusion in all lower tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services). 23 CFR 633.102(e).
The applicable requirements of Form FHWA-1273 are
incorporated by reference for work done under any purchase order, rental agreement or agreement for other services. The prime contractor shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider. 23 CFR 633.102(e).
Form FHWA-1273 must be included in all Federal-aid designbuild contracts, in all subcontracts and in lower tier subcontracts (excluding subcontracts for design services, purchase orders, rental agreements and other agreements for supplies or services) in accordance with 23 CFR 633.102. The design-builder shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider.
Contracting agencies may reference Form FHWA-1273 in
solicitation-for-bids or request-for-proposals documents, however, the Form FHWA-1273 must be physically incorporated (not referenced) in all contracts, subcontracts and lower-tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services related to a
construction contract). 23 CFR 633.102(b).
2. Subject to the applicability criteria noted in the following sections, these contract provisions shall apply to all work performed on the contract by the contractor's own organization and with the assistance of workers under the contractor's immediate superintendence and to all work performed on the contract by piecework, station work, or by subcontract. 23 CFR 633.102(d).
3. A breach of any of the stipulations contained in these Required Contract Provisions may be sufficient grounds for withholding of progress payments, withholding of final
payment, termination of the contract, suspension / debarment or any other action determined to be appropriate by the contracting agency and FHWA.
4. Selection of Labor: During the performance of this
contract, the contractor shall not use convict labor for any purpose within the limits of a construction project on a Federal-aid highway unless it is labor performed by convicts who are on parole, supervised release, or probation. 23 U.S.C. 114(b). The term Federal-aid highway does not include
roadways functionally classified as local roads or rural minor collectors. 23 U.S.C. 101(a).
II. NONDISCRIMINATION (23 CFR 230.107(a); 23 CFR
Part 230, Subpart A, Appendix A; EO 11246)
The provisions of this section related to 23 CFR Part 230, Subpart A, Appendix A are applicable to all Federal-aid construction contracts and to all related construction
subcontracts of $10,000 or more. The provisions of 23 CFR Part 230 are not applicable to material supply, engineering, or architectural service contracts.
In addition, the contractor and all subcontractors must comply with the following policies: Executive Order 11246, 41 CFR Part 60, 29 CFR Parts 1625-1627, 23 U.S.C. 140, Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.
The contractor and all subcontractors must comply with: the requirements of the Equal Opportunity Clause in 41 CFR 60-
1.4(b) and, for all construction contracts exceeding $10,000, the Standard Federal Equal Employment Opportunity
Construction Contract Specifications in 41 CFR 60-4.3.
Note: The U.S. Department of Labor has exclusive authority to determine compliance with Executive Order 11246 and the policies of the Secretary of Labor including 41 CFR Part 60, and 29 CFR Parts 1625-1627. The contracting agency and the FHWA have the authority and the responsibility to ensure compliance with 23 U.S.C. 140, Section 504 of the
Rehabilitation Act of 1973, as amended (29 U.S.C. 794), and Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.
The following provision is adopted from 23 CFR Part 230, Subpart A, Appendix A, with appropriate revisions to conform to the U.S. Department of Labor (US DOL) and FHWA
requirements.
1. Equal Employment Opportunity: Equal Employment
Opportunity (EEO) requirements not to discriminate and to take affirmative action to assure equal opportunity as set forth under laws, executive orders, rules, regulations (see 28 CFR Part 35, 29 CFR Part 1630, 29 CFR Parts 1625-1627, 41 CFR Part 60 and 49 CFR Part 27) and orders of the Secretary of Labor as modified by the provisions prescribed herein, and imposed pursuant to 23 U.S.C. 140, shall constitute the EEO and specific affirmative action standards for the contractor's project activities under this contract. The provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) set forth under 28 CFR Part 35 and 29 CFR Part 1630 are incorporated by reference in this contract. In the execution of this contract, the contractor agrees to comply with the following minimum specific requirement
activities of EEO:
Item Number: 10.
C-25
City Project: 3021 City of Desert Hot Springs
a. The contractor will work with the contracting agency and the Federal Government to ensure that it has made every good faith effort to provide equal opportunity with respect to all of its terms and conditions of employment and in their review of activities under the contract. 23 CFR 230.409 (g)(4) & (5). b. The contractor will accept as its operating policy the following statement:
"It is the policy of this Company to assure that applicants are employed, and that employees are treated during employment, without regard to their race, religion, sex, sexual orientation, gender identity, color, national origin, age or disability. Such action shall include: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship, preapprenticeship, and/or on-the-job training."
2. EEO Officer: The contractor will designate and make known to the contracting officers an EEO Officer who will have the responsibility for and must be capable of effectively
administering and promoting an active EEO program and who must be assigned adequate authority and responsibility to do so.
3. Dissemination of Policy: All members of the contractor's staff who are authorized to hire, supervise, promote, and discharge employees, or who recommend such action or are substantially involved in such action, will be made fully cognizant of and will implement the contractor's EEO policy and contractual responsibilities to provide EEO in each grade and classification of employment. To ensure that the above
agreement will be met, the following actions will be taken as a minimum:
a. Periodic meetings of supervisory and personnel office employees will be conducted before the start of work and then not less often than once every six months, at which time the contractor's EEO policy and its implementation will be reviewed and explained. The meetings will be conducted by the EEO Officer or other knowledgeable company official.
b. All new supervisory or personnel office employees will be given a thorough indoctrination by the EEO Officer, covering all major aspects of the contractor's EEO obligations within thirty days following their reporting for duty with the contractor. c. All personnel who are engaged in direct recruitment for the project will be instructed by the EEO Officer in the contractor's procedures for locating and hiring minorities and women.
d. Notices and posters setting forth the contractor's EEO policy will be placed in areas readily accessible to employees, applicants for employment and potential employees.
e. The contractor's EEO policy and the procedures to
implement such policy will be brought to the attention of employees by means of meetings, employee handbooks, or
other appropriate means.
4. Recruitment: When advertising for employees, the
contractor will include in all advertisements for employees the notation: "An Equal Opportunity Employer." All such
advertisements will be placed in publications having a large circulation among minorities and women in the area from which the project work force would normally be derived. a. The contractor will, unless precluded by a valid
bargaining agreement, conduct systematic and direct
recruitment through public and private employee referral sources likely to yield qualified minorities and women. To meet this requirement, the contractor will identify sources of potential minority group employees and establish with such identified sources procedures whereby minority and women applicants may be referred to the contractor for employment consideration.
b. In the event the contractor has a valid bargaining
agreement providing for exclusive hiring hall referrals, the contractor is expected to observe the provisions of that agreement to the extent that the system meets the contractor's compliance with EEO contract provisions. Where
implementation of such an agreement has the effect of
discriminating against minorities or women, or obligates the contractor to do the same, such implementation violates Federal nondiscrimination provisions.
c. The contractor will encourage its present employees to refer minorities and women as applicants for employment.
Information and procedures with regard to referring such applicants will be discussed with employees.
5. Personnel Actions: Wages, working conditions, and
employee benefits shall be established and administered, and personnel actions of every type, including hiring, upgrading, promotion, transfer, demotion, layoff, and termination, shall be taken without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age or disability.
The following procedures shall be followed:
a. The contractor will conduct periodic inspections of project sites to ensure that working conditions and employee facilities do not indicate discriminatory treatment of project site personnel.
b. The contractor will periodically evaluate the spread of wages paid within each classification to determine any
evidence of discriminatory wage practices.
c. The contractor will periodically review selected personnel actions in depth to determine whether there is evidence of discrimination. Where evidence is found, the contractor will promptly take corrective action. If the review indicates that the discrimination may extend beyond the actions reviewed, such corrective action shall include all affected persons.
d. The contractor will promptly investigate all complaints of alleged discrimination made to the contractor in connection with its obligations under this contract, will attempt to resolve such complaints, and will take appropriate corrective action within a reasonable time. If the investigation indicates that the discrimination may affect persons other than the complainant, such corrective action shall include such other persons. Upon completion of each investigation, the contractor will inform every complainant of all of their avenues of appeal.
6. Training and Promotion:
a. The contractor will assist in locating, qualifying, and increasing the skills of minorities and women who are applicants for employment or current employees. Such efforts should be aimed at developing full journey level status employees in the type of trade or job classification involved.
b. Consistent with the contractor's work force requirements and as permissible under Federal and State regulations, the contractor shall make full use of training programs (i.e., apprenticeship and on-the-job training programs for the geographical area of contract performance). In the event a special provision for training is provided under this contract, this subparagraph will be superseded as indicated in the special provision. The contracting agency may reserve training
positions for persons who receive welfare assistance in accordance with 23 U.S.C. 140(a).
Item Number: 10.
C-26
City Project: 3021 City of Desert Hot Springs
c. The contractor will advise employees and applicants for employment of available training programs and entrance
requirements for each.
d. The contractor will periodically review the training and promotion potential of employees who are minorities and women and will encourage eligible employees to apply for such training and promotion.
7. Unions: If the contractor relies in whole or in part upon unions as a source of employees, the contractor will use good faith efforts to obtain the cooperation of such unions to increase opportunities for minorities and women. 23 CFR 230.409. Actions by the contractor, either directly or through a contractor's association acting as agent, will include the procedures set forth below:
a. The contractor will use good faith efforts to develop, in cooperation with the unions, joint training programs aimed toward qualifying more minorities and women for membership in the unions and increasing the skills of minorities and women so that they may qualify for higher paying employment.
b. The contractor will use good faith efforts to incorporate an EEO clause into each union agreement to the end that such union will be contractually bound to refer applicants without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability.
c. The contractor is to obtain information as to the referral practices and policies of the labor union except that to the extent such information is within the exclusive possession of the labor union and such labor union refuses to furnish such information to the contractor, the contractor shall so certify to the contracting agency and shall set forth what efforts have been made to obtain such information.
d. In the event the union is unable to provide the contractor with a reasonable flow of referrals within the time limit set forth in the collective bargaining agreement, the contractor will, through independent recruitment efforts, fill the employment vacancies without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability; making full efforts to obtain qualified and/or qualifiable minorities and women. The failure of a union to provide sufficient referrals (even though it is obligated to provide exclusive referrals under the terms of a collective bargaining agreement) does not relieve the contractor from the requirements of this paragraph. In the event the union referral practice prevents the contractor from meeting the obligations pursuant to Executive Order 11246, as amended, and these special provisions, such contractor shall immediately notify the contracting agency.
8. Reasonable Accommodation for Applicants / Employees
with Disabilities: The contractor must be familiar with the requirements for and comply with the Americans with
Disabilities Act and all rules and regulations established thereunder. Employers must provide reasonable
accommodation in all employment activities unless to do so would cause an undue hardship.
9. Selection of Subcontractors, Procurement of Materials and Leasing of Equipment: The contractor shall not
discriminate on the grounds of race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The
contractor shall take all necessary and reasonable steps to ensure nondiscrimination in the administration of this contract. a. The contractor shall notify all potential subcontractors, suppliers, and lessors of their EEO obligations under this contract.
b. The contractor will use good faith efforts to
ensure subcontractor compliance with their EEO
obligations.
10. Assurances Required:
a. The requirements of 49 CFR Part 26 and the State
DOT’s FHWA-approved Disadvantaged Business Enterprise
(DBE) program are incorporated by reference.
b. The contractor, subrecipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems
appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying the contractor from future bidding as non- responsible.
c. The Title VI and nondiscrimination provisions of U.S.
DOT Order 1050.2A at Appendixes A and E are incorporated by reference. 49 CFR Part 21.
11. Records and Reports: The contractor shall keep such records as necessary to document compliance with the EEO requirements. Such records shall be retained for a period of three years following the date of the final payment to the contractor for all contract work and shall be available at reasonable times and places for inspection by authorized representatives of the contracting agency and the FHWA. a. The records kept by the contractor shall document the following:
(1) The number and work hours of minority and nonminority group members and women employed in each work classification on the project;
(2) The progress and efforts being made in cooperation
with unions, when applicable, to increase employment
opportunities for minorities and women; and
(3) The progress and efforts being made in locating,
hiring, training, qualifying, and upgrading minorities and women.
b. The contractors and subcontractors will submit an annual report to the contracting agency each July for the duration of the project indicating the number of minority, women, and nonminority group employees currently engaged in each work classification required by the contract work. This information is to be reported on Form FHWA-1391. The staffing data should represent the project work force on board in all or any part of the last payroll period preceding the end of July. If on-the-job training is being required by special provision, the contractor will be required to collect and report training data. The employment data should reflect the work force on board during all or any part of the last payroll period preceding the end of July.
Item Number: 10.
C-27
City Project: 3021 City of Desert Hot Springs
III. NONSEGREGATED FACILITIES
This provision is applicable to all Federal-aid construction contracts and to all related construction subcontracts of more than $10,000. 41 CFR 60-1.5.
As prescribed by 41 CFR 60-1.8, the contractor must ensure that facilities provided for employees are provided in such a manner that segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin cannot result. The contractor may neither require such segregated use by written or oral policies nor tolerate such use by employee custom. The contractor's obligation extends further to ensure that its employees are not assigned to perform their services at any location under the contractor's control where the facilities are segregated. The term "facilities" includes waiting rooms, work areas, restaurants and other eating areas, time clocks, restrooms, washrooms, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing provided for employees. The contractor shall provide separate or single-user restrooms and necessary dressing or sleeping areas to assure privacy between sexes.
IV. DAVIS-BACON AND RELATED ACT PROVISIONS
This section is applicable to all Federal-aid construction projects exceeding $2,000 and to all related subcontracts and lower-tier subcontracts (regardless of subcontract size), in accordance with 29 CFR 5.5. The requirements apply to all projects located within the right-of-way of a roadway that is functionally classified as Federal-aid highway. 23 U.S.C. 113.
This excludes roadways functionally classified as local roads or rural minor collectors, which are exempt. 23 U.S.C. 101. Where applicable law requires that projects be treated as a project on a Federal-aid highway, the provisions of this subpart will apply regardless of the location of the project. Examples include:
Surface Transportation Block Grant Program projects funded under 23 U.S.C. 133 [excluding recreational trails projects], the Nationally Significant Freight and Highway Projects funded under 23 U.S.C. 117, and National Highway Freight Program projects funded under 23 U.S.C. 167.
The following provisions are from the U.S. Department of Labor regulations in 29 CFR 5.5 “Contract provisions and related matters” with minor revisions to conform to the FHWA- 1273 format and FHWA program requirements.
1. Minimum wages (29 CFR 5.5)
a. All laborers and mechanics employed or working upon
the site of the work, will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the
Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics.
Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph 1.d. of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be
constructively made or incurred during such weekly period.
Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in 29 CFR 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each
classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed.
The wage determination (including any additional
classification and wage rates conformed under paragraph 1.b. of this section) and the Davis-Bacon poster (WH–1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.
b.(1) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:
(i) The work to be performed by the classification
requested is not performed by a classification in the wage determination; and
(ii) The classification is utilized in the area by
the construction industry; and
(iii) The proposed wage rate, including any bona fide
fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(2) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the
Administrator of the Wage and Hour Division, U.S.
Department of Labor, Washington, DC 20210. The
Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.
(3) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed
classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.
(4) The wage rate (including fringe benefits where
appropriate) determined pursuant to paragraphs 1.b.(2) or
1.b.(3) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
c. Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit Item Number: 10.
C-28
City Project: 3021 City of Desert Hot Springs
which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
d. If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met.
The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.
2. Withholding (29 CFR 5.5)
The contracting agency shall upon its own action or upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor under this contract, or any other Federal contract with the same prime contractor, or any other federally- assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the contracting agency may, after written notice to the contractor, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.
3. Payrolls and basic records (29 CFR 5.5)
a. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the
Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis- Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs
anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs.
b.(1) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the contracting agency. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH–347 is
available for this purpose from the Wage and Hour Division Web site. The prime contractor is responsible for the
submission of copies of payrolls by all subcontractors.
Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the contracting agency for transmission to the State DOT, the FHWA or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the contracting agency. (2) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(i) That the payroll for the payroll period contains the information required to be provided under 29 CFR
5.5(a)(3)(ii), the appropriate information is being
maintained under 29 CFR 5.5(a)(3)(i), and that such
information is correct and complete;
(ii) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible
deductions as set forth in 29 CFR part 3;
(iii) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination
incorporated into the contract.
(3) The weekly submission of a properly executed
certification set forth on the reverse side of Optional Form WH–347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph 3.b.(2) of this section.
(4) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 231.
c. The contractor or subcontractor shall make the records required under paragraph 3.a. of this section available for inspection, copying, or transcription by authorized
representatives of the contracting agency, the State DOT, the FHWA, or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the FHWA may, after written notice to the contractor, the contracting agency or the State DOT, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
Item Number: 10.
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4. Apprentices and trainees (29 CFR 5.5)
a. Apprentices (programs of the USDOL).
Apprentices will be permitted to work at less than the
predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice.
The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the
classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is
performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed.
Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination.
In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency
recognized by the Office, withdraws approval of an
apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
b. Trainees (programs of the USDOL).
Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S.
Department of Labor, Employment and Training
Administration.
The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the
Employment and Training Administration.
Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the
Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the
corresponding journeyman wage rate on the wage
determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed.
In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed.
In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
c. Equal employment opportunity. The utilization of
apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity
requirements of Executive Order 11246, as amended, and 29 CFR part 30.
d. Apprentices and Trainees (programs of the U.S. DOT).
Apprentices and trainees working under apprenticeship and skill training programs which have been certified by the Secretary of Transportation as promoting EEO in connection with Federal-aid highway construction programs are not subject to the
requirements of paragraph 4 of this Section IV. 23 CFR
230.111(e)(2). The straight time hourly wage rates for
apprentices and trainees under such programs will be established by the particular programs. The ratio of apprentices and trainees to journeymen shall not be greater than permitted by the terms of the particular program.
5. Compliance with Copeland Act requirements. The
contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract as provided in 29 CFR 5.5.
6. Subcontracts. The contractor or subcontractor shall insert Form FHWA-1273 in any subcontracts and also require the subcontractors to include Form FHWA-1273 in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5.
7. Contract termination: debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.
8. Compliance with Davis-Bacon and Related Act
requirements. All rulings and interpretations of the DavisBacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract as provided in 29 CFR 5.5.
9. Disputes concerning labor standards. As provided in 29 CFR 5.5, disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause Item Number: 10.
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of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S.
Department of Labor, or the employees or their representatives.
10. Certification of eligibility (29 CFR 5.5)
a. By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
b. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). c. The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001.
V. CONTRACT WORK HOURS AND SAFETY
STANDARDS ACT
Pursuant to 29 CFR 5.5(b), the following clauses apply to any Federal-aid construction contract in an amount in excess of $100,000 and subject to the overtime provisions of the
Contract Work Hours and Safety Standards Act. These
clauses shall be inserted in addition to the clauses required by 29 CFR 5.5(a) or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards.
1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any
workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 29 CFR
5.5. 2. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph 1 of this section, the contractor and any
subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and
guards, employed in violation of the clause set forth in paragraph 1 of this section, in the sum currently provided in 29 CFR 5.5(b)(2)* for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph 1 of this section. 29 CFR 5.5.
* $27 as of January 23, 2019 (See 84 FR 213-01, 218) as may be adjusted annually by the Department of Labor; pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990).
3. Withholding for unpaid wages and liquidated damages. The FHWA or the contacting agency shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federallyassisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph 2 of this section. 29 CFR 5.5.
4. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs 1 through 4 of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 1 through 4 of this section. 29 CFR 5.5.
VI. SUBLETTING OR ASSIGNING THE CONTRACT
This provision is applicable to all Federal-aid construction contracts on the National Highway System pursuant to 23 CFR 635.116.
1. The contractor shall perform with its own organization contract work amounting to not less than 30 percent (or a greater percentage if specified elsewhere in the contract) of the total original contract price, excluding any specialty items designated by the contracting agency. Specialty items may be performed by subcontract and the amount of any such specialty items
performed may be deducted from the total original contract price before computing the amount of work required to be performed by the contractor's own organization (23 CFR 635.116).
a. The term “perform work with its own organization” in paragraph 1 of Section VI refers to workers employed or leased by the prime contractor, and equipment owned or rented by the prime contractor, with or without operators. Such term does not include employees or equipment of a subcontractor or lower tier subcontractor, agents of the prime contractor, or any other assignees. The term may include payments for the costs of hiring leased employees from an employee leasing firm
meeting all relevant Federal and State regulatory requirements.
Leased employees may only be included in this term if the prime contractor meets all of the following conditions: (based on longstanding interpretation)
(1) the prime contractor maintains control over the
supervision of the day-to-day activities of the leased
employees;
(2) the prime contractor remains responsible for the quality of the work of the leased employees;
(3) the prime contractor retains all power to accept or exclude individual employees from work on the project;
and
(4) the prime contractor remains ultimately responsible for the payment of predetermined minimum wages, the
submission of payrolls, statements of compliance and all other Federal regulatory requirements.
b. "Specialty Items" shall be construed to be limited to work that requires highly specialized knowledge, abilities, or equipment not ordinarily available in the type of contracting organizations qualified and expected to bid or propose on the contract as a whole and in general are to be limited to minor components of the overall contract. 23 CFR 635.102.
2. Pursuant to 23 CFR 635.116(a), the contract amount upon which the requirements set forth in paragraph (1) of Section VI is computed includes the cost of material and manufactured Item Number: 10.
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products which are to be purchased or produced by the
contractor under the contract provisions.
3. Pursuant to 23 CFR 635.116(c), the contractor shall furnish (a) a competent superintendent or supervisor who is employed by the firm, has full authority to direct performance of the work in accordance with the contract requirements, and is in charge of all construction operations (regardless of who performs the work) and (b) such other of its own organizational resources (supervision, management, and engineering services) as the contracting officer determines is necessary to assure the performance of the contract.
4. No portion of the contract shall be sublet, assigned or otherwise disposed of except with the written consent of the contracting officer, or authorized representative, and such consent when given shall not be construed to relieve the contractor of any responsibility for the fulfillment of the contract. Written consent will be given only after the
contracting agency has assured that each subcontract is evidenced in writing and that it contains all pertinent provisions and requirements of the prime contract. (based on longstanding interpretation of 23 CFR 635.116).
5. The 30-percent self-performance requirement of paragraph (1) is not applicable to design-build contracts; however, contracting agencies may establish their own self-performance requirements. 23 CFR 635.116(d).
VII. SAFETY: ACCIDENT PREVENTION
This provision is applicable to all Federal-aid
construction contracts and to all related subcontracts.
1. In the performance of this contract the contractor shall comply with all applicable Federal, State, and local laws governing safety, health, and sanitation (23 CFR Part 635). The contractor shall provide all safeguards, safety devices and protective equipment and take any other needed actions as it determines, or as the contracting officer may determine, to be reasonably necessary to protect the life and health of
employees on the job and the safety of the public and to protect property in connection with the performance of the work covered by the contract. 23 CFR 635.108.
2. It is a condition of this contract, and shall be made a condition of each subcontract, which the contractor enters into pursuant to this contract, that the contractor and any
subcontractor shall not permit any employee, in performance of the contract, to work in surroundings or under conditions which are unsanitary, hazardous or dangerous to his/her health or safety, as determined under construction safety and health standards (29 CFR Part 1926) promulgated by the Secretary of Labor, in accordance with Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704). 29 CFR 1926.10.
3. Pursuant to 29 CFR 1926.3, it is a condition of this contract that the Secretary of Labor or authorized representative thereof, shall have right of entry to any site of contract performance to inspect or investigate the matter of compliance with the construction safety and health standards and to carry out the duties of the Secretary under Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704).
VIII. FALSE STATEMENTS CONCERNING
HIGHWAY PROJECTS
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts.
In order to assure high quality and durable construction in conformity with approved plans and specifications and a high degree of reliability on statements and representations made by engineers, contractors, suppliers, and workers on Federal- aid highway projects, it is essential that all persons concerned with the project perform their functions as carefully, thoroughly, and honestly as possible. Willful falsification, distortion, or misrepresentation with respect to any facts related to the project is a violation of Federal law. To prevent any misunderstanding regarding the seriousness of these and similar acts, Form FHWA1022 shall be posted on each Federal-aid highway project (23 CFR Part 635) in one or more places where it is readily available to all persons concerned with the project:
18 U.S.C. 1020 reads as follows:
"Whoever, being an officer, agent, or employee of the United States, or of any State or Territory, or whoever, whether a person, association, firm, or corporation, knowingly makes any false statement, false representation, or false report as to the character, quality, quantity, or cost of the material used or to be used, or the quantity or quality of the work performed or to be performed, or the cost thereof in connection with the submission of plans, maps, specifications, contracts, or costs of construction on any highway or related project submitted for approval to the Secretary of Transportation; or
Whoever knowingly makes any false statement, false
representation, false report or false claim with respect to the character, quality, quantity, or cost of any work performed or to be performed, or materials furnished or to be furnished, in connection with the construction of any highway or related project approved by the Secretary of Transportation; or Whoever knowingly makes any false statement or false
representation as to material fact in any statement, certificate, or report submitted pursuant to provisions of the Federal-aid Roads Act approved July 11, 1916, (39 Stat. 355), as amended and supplemented;
Shall be fined under this title or imprisoned not more than 5 years or both."
IX. IMPLEMENTATION OF CLEAN AIR ACT AND
FEDERAL WATER POLLUTION CONTROL ACT (42
U.S.C. 7606; 2 CFR 200.88; EO 11738)
This provision is applicable to all Federal-aid construction contracts in excess of $150,000 and to all related
subcontracts. 48 CFR 2.101; 2 CFR 200.326.
By submission of this bid/proposal or the execution of this contract or subcontract, as appropriate, the bidder, proposer, Federal-aid construction contractor, subcontractor, supplier, or vendor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal Highway Administration and the Regional Office of the Environmental Protection Agency. 2 CFR Part 200,
Appendix II.
The contractor agrees to include or cause to be included the requirements of this Section in every subcontract, and further agrees to take such action as the contracting agency may direct as a means of enforcing such requirements. 2 CFR 200.326.
X. CERTIFICATION REGARDING DEBARMENT,
SUSPENSION, INELIGIBILITY AND VOLUNTARY
EXCLUSION
This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier Item Number: 10.
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subcontracts, purchase orders, lease agreements, consultant contracts or any other covered transaction requiring FHWA approval or that is estimated to cost $25,000 or more – as defined in 2 CFR Parts 180 and 1200. 2 CFR 180.220 and
1200.220.
1. Instructions for Certification – First Tier Participants:
a. By signing and submitting this proposal, the
prospective first tier participant is providing the certification set out below.
b. The inability of a person to provide the certification set out below will not necessarily result in denial of participation in this covered transaction. The prospective first tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective first tier participant to furnish a certification or an explanation shall disqualify such a person from participation in this transaction. 2 CFR 180.320.
c. The certification in this clause is a material
representation of fact upon which reliance was placed when the contracting agency determined to enter into this transaction. If it is later determined that the prospective participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the contracting agency may terminate this transaction for cause of default. 2 CFR 180.325.
d. The prospective first tier participant shall provide immediate written notice to the contracting agency to whom this proposal is submitted if any time the prospective first tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of
changed circumstances. 2 CFR 180.345 and 180.350.
e. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person,"
"principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900- 180.1020, and 1200. “First Tier Covered Transactions”
refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered
Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier
Participant or other Lower Tier Participants (such as
subcontractors and suppliers).
f. The prospective first tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 2 CFR 180.330.
g. The prospective first tier participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions," provided by the department or contracting agency, entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 180.300.
h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. 2 CFR 180.300; 180.320, and 180.325. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. 2 CFR 180.335.
To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/). 2 CFR 180.300, 180.320, and 180.325.
i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records in order to render in good faith the certification required by this clause.
The knowledge and information of the prospective participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. j. Except for transactions authorized under paragraph (f) of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 2 CFR 180.325.
* * * * *
2. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion – First Tier Participants:
a The prospective first tier participant certifies to the best of its knowledge and belief, that it and its principals:
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal
department or agency, 2 CFR 180.335;.
(2) Have not within a three-year period preceding this
proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense 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, 2 CFR 180.800; (3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)(2) of this certification, 2 CFR 180.700 and 180.800; and
(4) Have not within a three-year period preceding this
application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. 2 CFR 180.335(d).
(5) Are not a corporation that has been convicted of a
felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6
implementing appropriations act requirements); and
(6) Are not a corporation with any unpaid Federal tax
liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, Item Number: 10.
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and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability (USDOT Order 4200.6 implementing appropriations act requirements).
b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal. 2 CFR 180.335 and 180.340.
3. Instructions for Certification - Lower Tier Participants:
(Applicable to all subcontracts, purchase orders, and other lower tier transactions requiring prior FHWA approval or estimated to cost $25,000 or more - 2 CFR Parts 180 and 1200). 2 CFR 180.220 and 1200.220.
a. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below.
b. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous
certification, in addition to other remedies available to the Federal Government, the department, or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.
c. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. 2 CFR 180.365.
d. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900 – 180.1020, and 1200.
You may contact the person to which this proposal is
submitted for assistance in obtaining a copy of those
regulations. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers).
e. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 2 CFR 1200.220 and 1200.332.
f. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 1200.220.
g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/), which is compiled by the General Services Administration. 2 CFR
180.300, 180.320, 180.330, and 180.335.
h. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
i. Except for transactions authorized under paragraph e of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 2 CFR 180.325.
* * * * *
Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion--Lower Tier
Participants:
1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals:
(a) is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency, 2 CFR 180.355;
(b) is a corporation that has been convicted of a felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6 implementing appropriations act requirements); and
(c) is a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. (USDOT Order 4200.6 implementing appropriations act
requirements)
2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal.
* * * * *
XI. CERTIFICATION REGARDING USE OF
CONTRACT FUNDS FOR LOBBYING
This provision is applicable to all Federal-aid
construction contracts and to all related subcontracts
which exceed $100,000. 49 CFR Part 20, App. A.
Item Number: 10.
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1. The prospective participant certifies, by signing
and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement.
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or
cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions.
2. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
3. The prospective participant also agrees by submitting its bid or proposal that the participant shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such
recipients shall certify and disclose accordingly.
XII. USE OF UNITED STATES-FLAG VESSELS:
This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, or any other covered transaction. 46 CFR Part 381.
This requirement applies to material or equipment that is acquired for a specific Federal-aid highway project. 46 CFR 381.7. It is not applicable to goods or materials that come into inventories independent of an FHWA funded-contract.
When oceanic shipments (or shipments across the Great Lakes) are necessary for materials or equipment acquired for a specific Federal-aid construction project, the bidder, proposer, contractor, subcontractor, or vendor agrees:
1. To utilize privately owned United States-flag commercial vessels to ship at least 50 percent of the gross tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever shipping any equipment, material, or commodities pursuant to this contract, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels. 46 CFR 381.7.
2. To furnish within 20 days following the date of loading for shipments originating within the United States or within 30 working days following the date of loading for shipments originating outside the United States, a legible copy of a rated, ‘on-board’ commercial ocean bill-of-lading in English for each shipment of cargo described in paragraph (b)(1) of this section to both the Contracting Officer (through the prime contractor in the case of subcontractor bills-of-lading) and to the Office of Cargo and Commercial Sealift (MAR-620), Maritime
Administration, Washington, DC 20590. (MARAD requires
copies of the ocean carrier's (master) bills of lading, certified onboard, dated, with rates and charges. These bills of lading may contain business sensitive information and therefore may be submitted directly to MARAD by the Ocean Transportation Intermediary on behalf of the contractor). 46 CFR 381.7.
ATTACHMENT A - EMPLOYMENT AND MATERIALS
PREFERENCE FOR APPALACHIAN DEVELOPMENT
HIGHWAY SYSTEM OR APPALACHIAN LOCAL
ACCESS ROAD CONTRACTS (23 CFR 633, Subpart B,
Appendix B) This provision is applicable to all Federal-aid projects funded under the Appalachian Regional Development Act of 1965.
1. During the performance of this contract, the contractor undertaking to do work which is, or reasonably may be, done as on-site work, shall give preference to qualified persons who regularly reside in the labor area as designated by the DOL wherein the contract work is situated, or the subregion, or the Appalachian counties of the State wherein the contract work is situated, except:
a. To the extent that qualified persons regularly residing in the area are not available.
b. For the reasonable needs of the contractor to employ supervisory or specially experienced personnel necessary to assure an efficient execution of the contract work.
c. For the obligation of the contractor to offer employment to present or former employees as the result of a lawful collective bargaining contract, provided that the number of nonresident persons employed under this subparagraph (1c) shall not exceed 20 percent of the total number of employees employed by the contractor on the contract work, except as provided in subparagraph (4) below.
2. The contractor shall place a job order with the State Employment Service indicating (a) the classifications of the laborers, mechanics and other employees required to perform the contract work, (b) the number of employees required in each classification, (c) the date on which the participant estimates such employees will be required, and (d) any other pertinent information required by the State Employment
Service to complete the job order form. The job order may be placed with the State Employment Service in writing or by telephone. If during the course of the contract work, the information submitted by the contractor in the original job order is substantially modified, the participant shall promptly notify the State Employment Service.
3. The contractor shall give full consideration to all qualified job applicants referred to him by the State Employment
Service. The contractor is not required to grant employment to any job applicants who, in his opinion, are not qualified to perform the classification of work required.
4. If, within one week following the placing of a job order by the contractor with the State Employment Service, the State Employment Service is unable to refer any qualified job applicants to the contractor, or less than the number requested, the State Employment Service will forward a certificate to the contractor indicating the unavailability of applicants. Such certificate shall be made a part of the contractor's permanent project records. Upon receipt of this certificate, the contractor may employ persons who do not normally reside in the labor area to fill positions covered by the certificate,
notwithstanding the provisions of subparagraph (1c) above.
5. The provisions of 23 CFR 633.207(e) allow the
contracting agency to provide a contractual preference for the use of mineral resource materials native to the Appalachian Item Number: 10.
C-35
City Project: 3021 City of Desert Hot Springs
region.
6. The contractor shall include the provisions of Sections 1 through 4 of this Attachment A in every subcontract for work which is, or reasonably may be, done as on-site work.
Item Number: 10.
C-36
City Project: 3021 City of Desert Hot Springs
"General Decision Number: CA20220025 10/07/2022
Superseded General Decision Number: CA20210025
State: California
Construction Types: Building, Heavy (Heavy and Dredging) and Highway
County: Riverside County in California.
BUILDING CONSTRUCTION PROJECTS; DREDGING PROJECTS (does not include hopper dredge work); HEAVY CONSTRUCTION PROJECTS (does not include water well drilling); HIGHWAY CONSTRUCTION PROJECTS Note: Contracts subject to the Davis-Bacon Act are generally required to pay at least the applicable minimum wage rate required under Executive Order 14026 or Executive Order 13658.
Please note that these Executive Orders apply to covered contracts entered into by the federal government that are subject to the Davis-Bacon Act itself, but do not apply to contracts subject only to the Davis-Bacon Related Acts, including those set forth at 29 CFR 5.1(a)(2)-(60).
______________________________________________________________ |If the contract is entered |. Executive Order 14026 |
|into on or after January 30, | generally applies to the | |2022, or the contract is | contract. |
|renewed or extended (e.g., an |. The contractor must pay | |option is exercised) on or | all covered workers at |
|after January 30, 2022: | least $15.00 per hour (or |
| | the applicable wage rate |
| | listed on this wage |
| | determination, if it is |
| | higher) for all hours |
| | spent performing on the |
| | contract in 2022. |
|______________________________|_____________________________| |If the contract was awarded on|. Executive Order 13658 | |or between January 1, 2015 and| generally applies to the | |January 29, 2022, and the | contract. |
|contract is not renewed or |. The contractor must pay all| |extended on or after January | covered workers at least | |30, 2022: | $11.25 per hour (or the |
| | applicable wage rate listed|
| | on this wage determination,|
| | if it is higher) for all |
| | hours spent performing on |
| | that contract in 2022. |
|______________________________|_____________________________| The applicable Executive Order minimum wage rate will be adjusted annually. If this contract is covered by one of the Executive Orders and a classification considered necessary for performance of work on the contract does not appear on this wage determination, the contractor must still submit a
conformance request.
Additional information on contractor requirements and worker protections under the Executive Orders is available at
Item Number: 10.
C-37
City Project: 3021 City of Desert Hot Springs
https://www.dol.gov/agencies/whd/government-contracts.
Modification Number Publication Date
0 01/07/2022
1 01/14/2022
2 01/21/2022
3 02/11/2022
4 02/18/2022
5 02/25/2022
6 04/29/2022
7 08/05/2022
8 08/12/2022
9 08/19/2022
10 09/02/2022
11 09/30/2022
12 10/07/2022
* ASBE0005-002 07/04/2022
Rates Fringes
Asbestos Workers/Insulator
(Includes the application of
all insulating materials,
protective coverings,
coatings, and finishes to all
types of mechanical systems).....$ 49.58 25.27
Fire Stop Technician
(Application of Firestopping
Materials for wall openings
and penetrations in walls,
floors, ceilings and curtain
walls)...........................$ 32.09 19.66
---------------------------------------------------------------- * ASBE0005-004 07/04/2022
Rates Fringes
Asbestos Removal
worker/hazardous material
handler (Includes
preparation, wetting,
stripping, removal,
scrapping, vacuuming, bagging
and disposing of all
insulation materials from
mechanical systems, whether
they contain asbestos or not)....$ 23.52 13.37
---------------------------------------------------------------- BOIL0092-003 01/01/2021
Rates Fringes
BOILERMAKER......................$ 46.03 38.81
---------------------------------------------------------------- * BRCA0004-011 05/01/2020
Rates Fringes
BRICKLAYER; MARBLE SETTER........$ 41.48 18.63
*The wage scale for prevailing wage projects performed in Blythe, China lake, Death Valley, Fort Irwin, Twenty-Nine Palms, Needles and 1-15 corridor (Barstow to the Nevada State Line) will be Three Dollars ($3.00) above the
Item Number: 10.
C-38
City Project: 3021 City of Desert Hot Springs
standard San Bernardino/Riverside County hourly wage rate ---------------------------------------------------------------- BRCA0018-004 06/01/2021
Rates Fringes
MARBLE FINISHER..................$ 35.90 14.11
TILE FINISHER....................$ 30.47 12.52
TILE LAYER.......................$ 43.09 18.31
---------------------------------------------------------------- BRCA0018-010 09/01/2021
Rates Fringes
TERRAZZO FINISHER................$ 35.43 14.10
TERRAZZO WORKER/SETTER...........$ 43.61 14.63
---------------------------------------------------------------- CARP0213-001 07/01/2021
Rates Fringes
CARPENTER
(1) Carpenter, Cabinet
Installer, Insulation
Installer, Hardwood Floor
Worker and acoustical
installer...................$ 51.60 16.28
(2) Millwright..............$ 52.10 16.48
(3) Piledrivermen/Derrick
Bargeman, Bridge or Dock
Carpenter, Heavy Framer,
Rock Bargeman or Scowman,
Rockslinger, Shingler
(Commercial)................$ 51.73 16.28
(4) Pneumatic Nailer,
Power Stapler...............$ 51.85 16.28
(5) Sawfiler...............$ 51.69 16.28
(6) Scaffold Builder.......$ 42.80 16.28
(7) Table Power Saw
Operator....................$ 51.70 16.28
FOOTNOTE: Work of forming in the construction of open cut sewers or storm drains, on operations in which horizontal lagging is used in conjunction with steel H-Beams driven or placed in pre- drilled holes, for that portion of a lagged trench against which concrete is poured, namely, as a
substitute for back forms (which work is performed by
piledrivers): $0.13 per hour additional.
---------------------------------------------------------------- CARP0213-002 07/01/2021
Rates Fringes
Diver
(1) Wet.....................$ 834.40 16.28
(2) Standby.................$ 445.84 16.28
(3) Tender..................$ 437.84 16.28
(4) Assistant Tender........$ 413.84 16.28
Amounts in ""Rates' column are per day
---------------------------------------------------------------- Item Number: 10.
C-39
City Project: 3021 City of Desert Hot Springs
CARP0213-004 07/01/2021
Rates Fringes
Drywall
DRYWALL INSTALLER/LATHER....$ 51.60 16.28
STOCKER/SCRAPPER............$ 22.16 8.62
---------------------------------------------------------------- CARP0721-001 07/01/2021
Rates Fringes
Modular Furniture Installer......$ 21.85 7.15
---------------------------------------------------------------- ELEC0440-001 12/27/2021
Rates Fringes
ELECTRICIAN
INSIDE ELECTRICIAN..........$ 49.73 3%+24.44
INTELLIGENT TRANSPORTATION
SYSTEMS
Electrician................$ 36.99 3%+23.18
Technician.................$ 27.75 3%+23.18
ZONE PAY: Zone A: Free travel zone for all contractors
performing work in Zone A.
Zone B:Any work performed in Zone (B) shall add $12.00 per hour to the current wage scale. Zone (B) shall be the area from the eastern perimeter of Zone (A) to a line which runs north and south begininng at Little Morongo Canyon (San Bernardino/Riverside County Line), Southeast along the
Coachella Tunnels, Colorado River Aqueduct and Mecca
Tunnels to Pinkham Wash then South to Box Canyon Road, then southwest along Box Canyon Road to Highway 195 west onto 195 south to Highway 86 to Riverside/Imperial County Line. ---------------------------------------------------------------- ELEC1245-001 06/01/2022
Rates Fringes
LINE CONSTRUCTION
(1) Lineman; Cable splicer..$ 64.40 22.58
(2) Equipment specialist
(operates crawler
tractors, commercial motor
vehicles, backhoes,
trenchers, cranes (50 tons
and below), overhead &
underground distribution
line equipment).............$ 50.00 21.30
(3) Groundman...............$ 38.23 20.89
(4) Powderman...............$ 51.87 18.79
HOLIDAYS: New Year's Day, M.L. King Day, Memorial Day,
Independence Day, Labor Day, Veterans Day, Thanksgiving Day and day after Thanksgiving, Christmas Day
---------------------------------------------------------------- Item Number: 10.
C-40
City Project: 3021 City of Desert Hot Springs
ELEV0018-001 01/01/2022
Rates Fringes
ELEVATOR MECHANIC................$ 61.34 36.885+a+b
FOOTNOTE:
a. PAID VACATION: Employer contributes 8% of regular hourly rate as vacation pay credit for employees with more than 5 years of service, and 6% for 6 months to 5 years of service. b. PAID HOLIDAYS: New Year's Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, Friday after Thanksgiving, and Christmas Day.
---------------------------------------------------------------- ENGI0012-003 07/01/2020
Rates Fringes
OPERATOR: Power Equipment
(All Other Work)
GROUP 1....................$ 48.25 27.20
GROUP 2....................$ 49.03 27.20
GROUP 3....................$ 49.32 27.20
GROUP 4....................$ 50.81 27.20
GROUP 5....................$ 48.96 25.25
GROUP 6....................$ 51.03 27.20
GROUP 8....................$ 51.14 27.20
GROUP 9....................$ 49.29 25.25
GROUP 10....................$ 51.26 27.20
GROUP 11....................$ 49.41 25.25
GROUP 12....................$ 51.43 27.20
GROUP 13....................$ 51.53 27.20
GROUP 14....................$ 51.56 27.20
GROUP 15....................$ 51.64 27.20
GROUP 16....................$ 51.76 27.20
GROUP 17....................$ 51.93 27.20
GROUP 18....................$ 52.03 27.20
GROUP 19....................$ 52.14 27.20
GROUP 20....................$ 52.26 27.20
GROUP 21....................$ 52.43 27.20
GROUP 22....................$ 52.53 27.20
GROUP 23....................$ 52.64 27.20
GROUP 24....................$ 52.76 27.20
GROUP 25....................$ 52.93 27.20
OPERATOR: Power Equipment
(Cranes, Piledriving &
Hoisting)
GROUP 1....................$ 49.60 27.20
GROUP 2....................$ 50.38 27.20
GROUP 3....................$ 50.67 27.20
GROUP 4....................$ 50.81 27.20
GROUP 5....................$ 51.03 27.20
GROUP 6....................$ 51.14 27.20
GROUP 7....................$ 51.26 27.20
GROUP 8....................$ 51.43 27.20
GROUP 9....................$ 51.60 27.20
GROUP 10....................$ 52.60 27.20
GROUP 11....................$ 53.60 27.20
GROUP 12....................$ 54.60 27.20
GROUP 13....................$ 55.60 27.20
Item Number: 10.
C-41
City Project: 3021 City of Desert Hot Springs
OPERATOR: Power Equipment
(Tunnel Work)
GROUP 1....................$ 50.10 27.20
GROUP 2....................$ 50.88 27.20
GROUP 3....................$ 51.17 27.20
GROUP 4....................$ 51.31 27.20
GROUP 5....................$ 51.53 27.20
GROUP 6....................$ 51.64 27.20
GROUP 7....................$ 51.76 27.20
PREMIUM PAY:
$3.75 per hour shall be paid on all Power Equipment Operator work on the followng Military Bases: China Lake Naval
Reserve, Vandenberg AFB, Point Arguello, Seely Naval Base, Fort Irwin, Nebo Annex Marine Base, Marine Corp Logistics Base Yermo, Edwards AFB, 29 Palms Marine Base and Camp
Pendleton
Workers required to suit up and work in a hazardous material environment: $2.00 per hour additional. Combination mixer and compressor operator on gunite work shall be classified as a concrete mobile mixer operator.
SEE ZONE DEFINITIONS AFTER CLASSIFICATIONS
POWER EQUIPMENT OPERATORS CLASSIFICATIONS
GROUP 1: Bargeman; Brakeman; Compressor operator; Ditch Witch, with seat or similar type equipment; Elevator
operator-inside; Engineer Oiler; Forklift operator
(includes loed, lull or similar types under 5 tons;
Generator operator; Generator, pump or compressor plant operator; Pump operator; Signalman; Switchman
GROUP 2: Asphalt-rubber plant operator (nurse tank operator); Concrete mixer operator-skip type; Conveyor operator;
Fireman; Forklift operator (includes loed, lull or similar types over 5 tons; Hydrostatic pump operator; oiler crusher (asphalt or concrete plant); Petromat laydown machine; PJU side dum jack; Screening and conveyor machine operator (or similar types); Skiploader (wheel type up to 3/4 yd.
without attachment); Tar pot fireman; Temporary heating plant operator; Trenching machine oiler
GROUP 3: Asphalt-rubber blend operator; Bobcat or similar type (Skid steer); Equipment greaser (rack); Ford Ferguson (with dragtype attachments); Helicopter radioman (ground); Stationary pipe wrapping and cleaning machine operator
GROUP 4: Asphalt plant fireman; Backhoe operator (mini-max or similar type); Boring machine operator; Boxman or mixerman (asphalt or concrete); Chip spreading machine operator; Concrete cleaning decontamination machine operator;
Concrete Pump Operator (small portable); Drilling machine operator, small auger types (Texoma super economatic or similar types - Hughes 100 or 200 or similar types -
drilling depth of 30' maximum); Equipment greaser (grease Item Number: 10.
C-42
City Project: 3021 City of Desert Hot Springs
truck); Guard rail post driver operator; Highline cableway signalman; Hydra-hammer-aero stomper; Micro Tunneling
(above ground tunnel); Power concrete curing machine
operator; Power concrete saw operator; Power-driven jumbo form setter operator; Power sweeper operator; Rock Wheel Saw/Trencher; Roller operator (compacting); Screed operator (asphalt or concrete); Trenching machine operator (up to 6 ft.); Vacuum or much truck
GROUP 5: Equipment Greaser (Grease Truck/Multi Shift).
GROUP 6: Articulating material hauler; Asphalt plant
engineer; Batch plant operator; Bit sharpener; Concrete joint machine operator (canal and similar type); Concrete planer operator; Dandy digger; Deck engine operator;
Derrickman (oilfield type); Drilling machine operator,
bucket or auger types (Calweld 100 bucket or similar types - Watson 1000 auger or similar types - Texoma 330, 500 or 600 auger or similar types - drilling depth of 45'
maximum); Drilling machine operator; Hydrographic seeder machine operator (straw, pulp or seed), Jackson track
maintainer, or similar type; Kalamazoo Switch tamper, or similar type; Machine tool operator; Maginnis internal full slab vibrator, Mechanical berm, curb or gutter(concrete or asphalt); Mechanical finisher operator (concrete,
Clary-Johnson-Bidwell or similar); Micro tunnel system
(below ground); Pavement breaker operator (truck mounted); Road oil mixing machine operator; Roller operator (asphalt or finish), rubber-tired earth moving equipment (single engine, up to and including 25 yds. struck); Self-propelled tar pipelining machine operator; Skiploader operator
(crawler and wheel type, over 3/4 yd. and up to and
including 1-1/2 yds.); Slip form pump operator (power
driven hydraulic lifting device for concrete forms);
Tractor operator-bulldozer, tamper-scraper (single engine, up to 100 h.p. flywheel and similar types, up to and
including D-5 and similar types); Tugger hoist operator (1 drum); Ultra high pressure waterjet cutting tool system operator; Vacuum blasting machine operator
GROUP 8: Asphalt or concrete spreading operator (tamping or finishing); Asphalt paving machine operator (Barber Greene or similar type); Asphalt-rubber distribution operator; Backhoe operator (up to and including 3/4 yd.), small ford, Case or similar; Cast-in-place pipe laying machine
operator; Combination mixer and compressor operator (gunite work); Compactor operator (self-propelled); Concrete mixer operator (paving); Crushing plant operator; Drill Doctor; Drilling machine operator, Bucket or auger types (Calweld 150 bucket or similar types - Watson 1500, 2000 2500 auger or similar types - Texoma 700, 800 auger or similar types - drilling depth of 60' maximum); Elevating grader operator; Grade checker; Gradall operator; Grouting machine operator; Heavy-duty repairman; Heavy equipment robotics operator; Kalamazoo balliste regulator or similar type; Kolman belt loader and similar type; Le Tourneau blob compactor or
similar type; Loader operator (Athey, Euclid, Sierra and Item Number: 10.
C-43
City Project: 3021 City of Desert Hot Springs
similar types); Mobark Chipper or similar; Ozzie padder or similar types; P.C. slot saw; Pneumatic concrete placing machine operator (Hackley-Presswell or similar type);
Pumpcrete gun operator; Rock Drill or similar types; Rotary drill operator (excluding caisson type); Rubber-tired
earth-moving equipment operator (single engine,
caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. up to and including 50 cu. yds. struck); Rubber-tired earth-moving equipment operator (multiple engine up to and including 25 yds. struck);
Rubber-tired scraper operator (self-loading paddle wheel type-John Deere, 1040 and similar single unit); Self-
propelled curb and gutter machine operator; Shuttle buggy; Skiploader operator (crawler and wheel type over 1-1/2 yds. up to and including 6-1/2 yds.); Soil remediation plant operator; Surface heaters and planer operator; Tractor
compressor drill combination operator; Tractor operator (any type larger than D-5 - 100 flywheel h.p. and over, or similar-bulldozer, tamper, scraper and push tractor single engine); Tractor operator (boom attachments), Traveling pipe wrapping, cleaning and bendng machine operator;
Trenching machine operator (over 6 ft. depth capacity,
manufacturer's rating); trenching Machine with Road Miner attachment (over 6 ft depth capacity): Ultra high pressure waterjet cutting tool system mechanic; Water pull
(compaction) operator
GROUP 9: Heavy Duty Repairman
GROUP 10: Drilling machine operator, Bucket or auger types (Calweld 200 B bucket or similar types-Watson 3000 or 5000 auger or similar types-Texoma 900 auger or similar
types-drilling depth of 105' maximum); Dual drum mixer, dynamic compactor LDC350 (or similar types); Monorail
locomotive operator (diesel, gas or electric); Motor
patrol-blade operator (single engine); Multiple engine
tractor operator (Euclid and similar type-except Quad 9 cat.); Rubber-tired earth-moving equipment operator (single engine, over 50 yds. struck); Pneumatic pipe ramming tool and similar types; Prestressed wrapping machine operator; Rubber-tired earth-moving equipment operator (single
engine, over 50 yds. struck); Rubber tired earth moving equipment operator (multiple engine, Euclid, caterpillar and similar over 25 yds. and up to 50 yds. struck), Tower crane repairman; Tractor loader operator (crawler and wheel type over 6-1/2 yds.); Woods mixer operator (and similar Pugmill equipment)
GROUP 11: Heavy Duty Repairman - Welder Combination, Welder - Certified.
GROUP 12: Auto grader operator; Automatic slip form operator; Drilling machine operator, bucket or auger types (Calweld, auger 200 CA or similar types - Watson, auger 6000 or
similar types - Hughes Super Duty, auger 200 or similar types - drilling depth of 175' maximum); Hoe ram or similar with compressor; Mass excavator operator less tha 750 cu.
Item Number: 10.
C-44
City Project: 3021 City of Desert Hot Springs
yards; Mechanical finishing machine operator; Mobile form traveler operator; Motor patrol operator (multi-engine); Pipe mobile machine operator; Rubber-tired earth- moving equipment operator (multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck); Rubber-tired self- loading scraper operator (paddle-wheel-auger type self-loading - two (2) or more units)
GROUP 13: Rubber-tired earth-moving equipment operator
operating equipment with push-pull system (single engine, up to and including 25 yds. struck)
GROUP 14: Canal liner operator; Canal trimmer operator; Remote- control earth-moving equipment operator (operating a second piece of equipment: $1.00 per hour additional); Wheel excavator operator (over 750 cu. yds.)
GROUP 15: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple
engine-up to and including 25 yds. struck)
GROUP 16: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, over 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system
(multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 17: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple engine, Euclid, Caterpillar and similar, over 50 cu. yds. struck); Tandem tractor operator (operating crawler type tractors in tandem - Quad 9 and similar type)
GROUP 18: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
single engine, up to and including 25 yds. struck)
GROUP 19: Rotex concrete belt operator (or similar types); Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar types in any
combination, excluding compaction units - single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds.and up to and including 50 cu. yds. struck); Rubber-tired earth-moving equipment
operator, operating in tandem (scrapers, belly dumps and similar types in any combination, excluding compaction
units - multiple engine, up to and including 25 yds. struck) GROUP 20: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
Item Number: 10.
C-45
City Project: 3021 City of Desert Hot Springs
single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating in tandem
(scrapers, belly dumps, and similar types in any
combination, excluding compaction units - multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 21: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck)
GROUP 22: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, up to and including 25 yds. struck)
GROUP 23: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, Caterpillar, Euclid, Athey Wagon and
similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating with the tandem push-pull system (multiple engine, up to and including 25 yds. struck)
GROUP 24: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 25: Concrete pump operator-truck mounted; Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
Caterpillar and similar type, over 50 cu. yds. struck)
CRANES, PILEDRIVING AND HOISTING EQUIPMENT CLASSIFICATIONS GROUP 1: Engineer oiler; Fork lift operator (includes loed, lull or similar types)
GROUP 2: Truck crane oiler
GROUP 3: A-frame or winch truck operator; Ross carrier
operator (jobsite)
GROUP 4: Bridge-type unloader and turntable operator;
Helicopter hoist operator
GROUP 5: Hydraulic boom truck; Stinger crane (Austin-Western or similar type); Tugger hoist operator (1 drum)
GROUP 6: Bridge crane operator; Cretor crane operator; Hoist operator (Chicago boom and similar type); Lift mobile
operator; Lift slab machine operator (Vagtborg and similar Item Number: 10.
C-46
City Project: 3021 City of Desert Hot Springs
types); Material hoist and/or manlift operator; Polar
gantry crane operator; Self Climbing scaffold (or similar type); Shovel, backhoe, dragline, clamshell operator (over 3/4 yd. and up to 5 cu. yds. mrc); Tugger hoist operator GROUP 7: Pedestal crane operator; Shovel, backhoe, dragline, clamshell operator (over 5 cu. yds. mrc); Tower crane
repair; Tugger hoist operator (3 drum)
GROUP 8: Crane operator (up to and including 25 ton
capacity); Crawler transporter operator; Derrick barge
operator (up to and including 25 ton capacity); Hoist
operator, stiff legs, Guy derrick or similar type (up to and including 25 ton capacity); Shovel, backhoe, dragline, clamshell operator (over 7 cu. yds., M.R.C.)
GROUP 9: Crane operator (over 25 tons and up to and including 50 tons mrc); Derrick barge operator (over 25 tons up to and including 50 tons mrc); Highline cableway operator; Hoist operator, stiff legs, Guy derrick or similar type (over 25 tons up to and including 50 tons mrc); K-crane operator; Polar crane operator; Self erecting tower crane operator maximum lifting capacity ten tons
GROUP 10: Crane operator (over 50 tons and up to and
including 100 tons mrc); Derrick barge operator (over 50 tons up to and including 100 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 50 tons up to and including 100 tons mrc), Mobile tower crane operator (over 50 tons, up to and including 100 tons M.R.C.); Tower crane operator and tower gantry
GROUP 11: Crane operator (over 100 tons and up to and
including 200 tons mrc); Derrick barge operator (over 100 tons up to and including 200 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 100 tons up to and including 200 tons mrc); Mobile tower crane operator (over 100 tons up to and including 200 tons mrc)
GROUP 12: Crane operator (over 200 tons up to and including 300 tons mrc); Derrick barge operator (over 200 tons up to and including 300 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 200 tons, up to and
including 300 tons mrc); Mobile tower crane operator (over 200 tons, up to and including 300 tons mrc)
GROUP 13: Crane operator (over 300 tons); Derrick barge operator (over 300 tons); Helicopter pilot; Hoist operator, stiff legs, Guy derrick or similar type (over 300 tons); Mobile tower crane operator (over 300 tons)
TUNNEL CLASSIFICATIONS
GROUP 1: Skiploader (wheel type up to 3/4 yd. without
attachment)
GROUP 2: Power-driven jumbo form setter operator
Item Number: 10.
C-47
City Project: 3021 City of Desert Hot Springs
GROUP 3: Dinkey locomotive or motorperson (up to and
including 10 tons)
GROUP 4: Bit sharpener; Equipment greaser (grease truck); Slip form pump operator (power-driven hydraulic lifting device for concrete forms); Tugger hoist operator (1 drum); Tunnel locomotive operator (over 10 and up to and including 30 tons)
GROUP 5: Backhoe operator (up to and including 3/4 yd.); Small Ford, Case or similar; Drill doctor; Grouting machine operator; Heading shield operator; Heavy-duty repairperson; Loader operator (Athey, Euclid, Sierra and similar types); Mucking machine operator (1/4 yd., rubber-tired, rail or track type); Pneumatic concrete placing machine operator (Hackley-Presswell or similar type); Pneumatic heading
shield (tunnel); Pumpcrete gun operator; Tractor compressor drill combination operator; Tugger hoist operator (2 drum); Tunnel locomotive operator (over 30 tons)
GROUP 6: Heavy Duty Repairman
GROUP 7: Tunnel mole boring machine operator
ENGINEERS ZONES
$1.00 additional per hour for all of IMPERIAL County and the portions of KERN, RIVERSIDE & SAN BERNARDINO Counties as defined below:
That area within the following Boundary: Begin in San
Bernardino County, approximately 3 miles NE of the intersection of I-15 and the California State line at that point which is the NW corner of Section 1, T17N,m R14E, San Bernardino Meridian. Continue W in a straight line to that point which is the SW corner of the northwest quarter of Section 6, T27S, R42E, Mt. Diablo Meridian. Continue North to the intersection with the Inyo County Boundary at that point which is the NE corner of the western half of the northern quarter of Section 6, T25S, R42E, MDM. Continue W along the Inyo and San
Bernardino County boundary until the intersection with Kern County, as that point which is the SE corner of Section 34, T24S, R40E, MDM. Continue W along the Inyo and Kern County boundary until the intersection with Tulare County, at that point which is the SW corner of the SE quarter of Section 32, T24S, R37E, MDM. Continue W along the Kern and Tulare County boundary, until that point which is the NW corner of T25S, R32E, MDM. Continue S following R32E lines to the NW corner of T31S, R32E, MDM. Continue W to the NW corner of T31S, R31E, MDM. Continue S to the SW corner of T32S, R31E, MDM. Continue W to SW corner of SE quarter of Section 34, T32S, R30E, MDM.
Continue S to SW corner of T11N, R17W, SBM. Continue E along south boundary of T11N, SBM to SW corner of T11N, R7W, SBM.
Continue S to SW corner of T9N, R7W, SBM. Continue E along south boundary of T9N, SBM to SW corner of T9N, R1E, SBM.
Continue S along west boundary of R1E, SMB to Riverside County line at the SW corner of T1S, R1E, SBM. Continue E along south Item Number: 10.
C-48
City Project: 3021 City of Desert Hot Springs
boundary of T1s, SBM (Riverside County Line) to SW corner of T1S, R10E, SBM. Continue S along west boundary of R10E, SBM to Imperial County line at the SW corner of T8S, R10E, SBM.
Continue W along Imperial and Riverside county line to NW corner of T9S, R9E, SBM. Continue S along the boundary between Imperial and San Diego Counties, along the west edge of R9E, SBM to the south boundary of Imperial County/California state line. Follow the California state line west to Arizona state line, then north to Nevada state line, then continuing NW back to start at the point which is the NW corner of Section 1, T17N, R14E, SBM
$1.00 additional per hour for portions of SAN LUIS OBISPO, KERN, SANTA BARBARA & VENTURA as defined below:
That area within the following Boundary: Begin approximately 5 miles north of the community of Cholame, on the Monterey County and San Luis Obispo County boundary at the NW corner of T25S, R16E, Mt. Diablo Meridian. Continue south along the west side of R16E to the SW corner of T30S, R16E, MDM. Continue E to SW corner of T30S, R17E, MDM. Continue S to SW corner of T31S, R17E, MDM. Continue E to SW corner of T31S, R18E, MDM.
Continue S along West side of R18E, MDM as it crosses into San Bernardino Meridian numbering area and becomes R30W. Follow the west side of R30W, SBM to the SW corner of T9N, R30W, SBM.
Continue E along the south edge of T9N, SBM to the Santa Barbara County and Ventura County boundary at that point whch is the SW corner of Section 34.T9N, R24W, SBM, continue S along the Ventura County line to that point which is the SW corner of the SE quarter of Section 32, T7N, R24W, SBM. Continue E along the south edge of T7N, SBM to the SE corner to T7N, R21W, SBM. Continue N along East side of R21W, SBM to Ventura County and Kern County boundary at the NE corner of T8N, R21W.
Continue W along the Ventura County and Kern County boundary to the SE corner of T9N, R21W. Continue North along the East edge of R21W, SBM to the NE corner of T12N, R21W, SBM. Continue West along the north edge of T12N, SBM to the SE corner of T32S, R21E, MDM. [T12N SBM is a think strip between T11N SBM and T32S MDM]. Continue North along the East side of R21E, MDM to the Kings County and Kern County border at the NE corner of T25S, R21E, MDM, continue West along the Kings County and Kern County Boundary until the intersection of San Luis Obispo County. Continue west along the Kings County and San Luis Obispo County boundary until the intersection with Monterey County. Continue West along the Monterey County and San Luis Obispo County boundary to the beginning point at the NW corner of T25S, R16E, MDM.
$2.00 additional per hour for INYO and MONO Counties and the Northern portion of SAN BERNARDINO County as defined below:
That area within the following Boundary: Begin at the
intersection of the northern boundary of Mono County and the California state line at the point which is the center of Section 17, T10N, R22E, Mt. Diablo Meridian. Continue S then SE along the entire western boundary of Mono County, until it reaches Inyo County at the point which is the NE corner of the Item Number: 10.
C-49
City Project: 3021 City of Desert Hot Springs
Western half of the NW quarter of Section 2, T8S, R29E, MDM.
Continue SSE along the entire western boundary of Inyo County, until the intersection with Kern County at the point which is the SW corner of the SE 1/4 of Section 32, T24S, R37E, MDM.
Continue E along the Inyo and Kern County boundary until the intersection with San Bernardino County at that point which is the SE corner of section 34, T24S, R40E, MDM. Continue E along the Inyo and San Bernardino County boundary until the point which is the NE corner of the Western half of the NW quarter of Section 6, T25S, R42E, MDM. Continue S to that point which is the SW corner of the NW quarter of Section 6, T27S, R42E, MDM.
Continue E in a straight line to the California and Nevada state border at the point which is the NW corner of Section 1, T17N, R14E, San Bernardino Meridian. Then continue NW along the state line to the starting point, which is the center of Section 18, T10N, R22E, MDM.
REMAINING AREA NOT DEFINED ABOVE RECIEVES BASE RATE
---------------------------------------------------------------- ENGI0012-004 08/01/2020
Rates Fringes
OPERATOR: Power Equipment
(DREDGING)
(1) Leverman................$ 56.40 30.00
(2) Dredge dozer............$ 50.43 30.00
(3) Deckmate................$ 50.32 30.00
(4) Winch operator (stern
winch on dredge)............$ 49.77 30.00
(5) Fireman-Oiler,
Deckhand, Bargeman,
Leveehand...................$ 49.23 30.00
(6) Barge Mate..............$ 49.84 30.00
---------------------------------------------------------------- IRON0433-006 07/01/2020
Rates Fringes
IRONWORKER
Fence Erector...............$ 34.58 24.81
Ornamental, Reinforcing
and Structural..............$ 41.00 33.45
PREMIUM PAY:
$6.00 additional per hour at the following locations:
China Lake Naval Test Station, Chocolate Mountains Naval Reserve-Niland,
Edwards AFB, Fort Irwin Military Station, Fort Irwin Training Center-Goldstone, San Clemente Island, San Nicholas Island, Susanville Federal Prison, 29 Palms - Marine Corps, U.S. Marine Base - Barstow, U.S. Naval Air Facility - Sealey, Vandenberg AFB $4.00 additional per hour at the following locations:
Army Defense Language Institute - Monterey, Fallon Air Base, Naval Post Graduate School - Monterey, Yermo Marine Corps Item Number: 10.
C-50
City Project: 3021 City of Desert Hot Springs
Logistics Center
$2.00 additional per hour at the following locations:
Port Hueneme, Port Mugu, U.S. Coast Guard Station - Two Rock ---------------------------------------------------------------- LABO0300-005 08/01/2022
Rates Fringes
Asbestos Removal Laborer.........$ 39.23 23.28
SCOPE OF WORK: Includes site mobilization, initial site cleanup, site preparation, removal of asbestos-containing material and toxic waste, encapsulation, enclosure and
disposal of asbestos- containing materials and toxic waste by hand or with equipment or machinery; scaffolding,
fabrication of temporary wooden barriers and assembly of decontamination stations.
---------------------------------------------------------------- LABO0345-001 07/01/2022
Rates Fringes
LABORER (GUNITE)
GROUP 1.....................$ 48.50 21.37
GROUP 2.....................$ 47.55 21.37
GROUP 3.....................$ 44.01 21.37
FOOTNOTE: GUNITE PREMIUM PAY: Workers working from a
Bosn'n's Chair or suspended from a rope or cable shall
receive 40 cents per hour above the foregoing applicable classification rates. Workers doing gunite and/or
shotcrete work in a tunnel shall receive 35 cents per hour above the foregoing applicable classification rates, paid on a portal-to-portal basis. Any work performed on, in or above any smoke stack, silo, storage elevator or similar type of structure, when such structure is in excess of
75'-0"" above base level and which work must be performed in whole or in part more than 75'-0"" above base level, that work performed above the 75'-0"" level shall be compensated for at 35 cents per hour above the applicable
classification wage rate.
GUNITE LABORER CLASSIFICATIONS
GROUP 1: Rodmen, Nozzlemen
GROUP 2: Gunmen
GROUP 3: Reboundmen
---------------------------------------------------------------- LABO1184-001 07/01/2022
Rates Fringes
Laborers: (HORIZONTAL
DIRECTIONAL DRILLING)
(1) Drilling Crew Laborer...$ 40.69 18.25
(2) Vehicle Operator/Hauler.$ 40.86 18.25
Item Number: 10.
C-51
City Project: 3021 City of Desert Hot Springs
(3) Horizontal Directional
Drill Operator..............$ 42.71 18.25
(4) Electronic Tracking
Locator.....................$ 44.71 18.25
Laborers: (STRIPING/SLURRY
SEAL)
GROUP 1.....................$ 41.90 21.32
GROUP 2.....................$ 43.20 21.32
GROUP 3.....................$ 45.21 21.32
GROUP 4.....................$ 46.95 21.32
LABORERS - STRIPING CLASSIFICATIONS
GROUP 1: Protective coating, pavement sealing, including repair and filling of cracks by any method on any surface in parking lots, game courts and playgrounds; carstops; operation of all related machinery and equipment; equipment repair technician
GROUP 2: Traffic surface abrasive blaster; pot tender - removal of all traffic lines and markings by any method (sandblasting, waterblasting, grinding, etc.) and
preparation of surface for coatings. Traffic control
person: controlling and directing traffic through both
conventional and moving lane closures; operation of all related machinery and equipment
GROUP 3: Traffic delineating device applicator: Layout and application of pavement markers, delineating signs, rumble and traffic bars, adhesives, guide markers, other traffic delineating devices including traffic control. This
category includes all traffic related surface preparation (sandblasting, waterblasting, grinding) as part of the
application process. Traffic protective delineating system installer: removes, relocates, installs, permanently
affixed roadside and parking delineation barricades,
fencing, cable anchor, guard rail, reference signs,
monument markers; operation of all related machinery and equipment; power broom sweeper
GROUP 4: Striper: layout and application of traffic stripes and markings; hot thermo plastic; tape traffic stripes and markings, including traffic control; operation of all
related machinery and equipment
---------------------------------------------------------------- LABO1184-002 07/01/2022
Rates Fringes
LABORER (TUNNEL)
GROUP 1.....................$ 45.68 23.30
GROUP 2.....................$ 46.00 23.30
GROUP 3.....................$ 46.46 23.30
GROUP 4.....................$ 47.15 23.30
LABORER
GROUP 1.....................$ 36.39 21.04
GROUP 2.....................$ 36.94 21.04
GROUP 3.....................$ 37.49 21.04
Item Number: 10.
C-52
City Project: 3021 City of Desert Hot Springs
GROUP 4.....................$ 39.04 21.04
GROUP 5.....................$ 39.39 21.04
LABORER CLASSIFICATIONS
GROUP 1: Cleaning and handling of panel forms; Concrete screeding for rough strike-off; Concrete, water curing; Demolition laborer, the cleaning of brick if performed by a worker performing any other phase of demolition work, and the cleaning of lumber; Fire watcher, limber, brush loader, piler and debris handler; Flag person; Gas, oil and/or
water pipeline laborer; Laborer, asphalt-rubber material loader; Laborer, general or construction; Laborer, general clean-up; Laborer, landscaping; Laborer, jetting; Laborer, temporary water and air lines; Material hose operator
(walls, slabs, floors and decks); Plugging, filling of shee bolt holes; Dry packing of concrete; Railroad maintenance, repair track person and road beds; Streetcar and railroad construction track laborers; Rigging and signaling; Scaler; Slip form raiser; Tar and mortar; Tool crib or tool house laborer; Traffic control by any method; Window cleaner; Wire mesh pulling - all concrete pouring operations
GROUP 2: Asphalt shoveler; Cement dumper (on 1 yd. or larger mixer and handling bulk cement); Cesspool digger and
installer; Chucktender; Chute handler, pouring concrete, the handling of the chute from readymix trucks, such as walls, slabs, decks, floors, foundation, footings, curbs, gutters and sidewalks; Concrete curer, impervious membrane and form oiler; Cutting torch operator (demolition); Fine grader, highways and street paving, airport, runways and similar type heavy construction; Gas, oil and/or water
pipeline wrapper - pot tender and form person; Guinea
chaser; Headerboard person - asphalt; Laborer, packing rod steel and pans; Membrane vapor barrier installer; Power broom sweeper (small); Riprap stonepaver, placing stone or wet sacked concrete; Roto scraper and tiller; Sandblaster (pot tender); Septic tank digger and installer(lead); Tank scaler and cleaner; Tree climber, faller, chain saw
operator, Pittsburgh chipper and similar type brush
shredder; Underground laborer, including caisson bellower GROUP 3: Buggymobile person; Concrete cutting torch; Concrete pile cutter; Driller, jackhammer, 2-1/2 ft. drill steel or longer; Dri-pak-it machine; Gas, oil and/or water pipeline wrapper, 6-in. pipe and over, by any method, inside and out; High scaler (including drilling of same); Hydro seeder and similar type; Impact wrench multi-plate; Kettle person, pot person and workers applying asphalt, lay-kold,
creosote, lime caustic and similar type materials
(""applying"" means applying, dipping, brushing or handling of such materials for pipe wrapping and waterproofing); Operator of pneumatic, gas, electric tools, vibrating
machine, pavement breaker, air blasting, come-alongs, and similar mechanical tools not separately classified herein; Pipelayer's backup person, coating, grouting, making of joints, sealing, caulking, diapering and including rubber Item Number: 10.
C-53
City Project: 3021 City of Desert Hot Springs
gasket joints, pointing and any and all other services; Rock slinger; Rotary scarifier or multiple head concrete chipping scarifier; Steel headerboard and guideline setter; Tamper, Barko, Wacker and similar type; Trenching machine, hand-propelled
GROUP 4: Asphalt raker, lute person, ironer, asphalt dump person, and asphalt spreader boxes (all types); Concrete core cutter (walls, floors or ceilings), grinder or sander; Concrete saw person, cutting walls or flat work, scoring old or new concrete; Cribber, shorer, lagging, sheeting and trench bracing, hand-guided lagging hammer; Head rock
slinger; Laborer, asphalt- rubber distributor boot person; Laser beam in connection with laborers' work; Oversize
concrete vibrator operator, 70 lbs. and over; Pipelayer performing all services in the laying and installation of pipe from the point of receiving pipe in the ditch until completion of operation, including any and all forms of tubular material, whether pipe, metallic or non-metallic, conduit and any other stationary type of tubular device used for the conveying of any substance or element, whether water, sewage, solid gas, air, or other product whatsoever and without regard to the nature of material from which the tubular material is fabricated; No-joint pipe and stripping of same; Prefabricated manhole installer; Sandblaster
(nozzle person), water blasting, Porta Shot-Blast
GROUP 5: Blaster powder, all work of loading holes, placing and blasting of all powder and explosives of whatever type, regardless of method used for such loading and placing; Driller: All power drills, excluding jackhammer, whether core, diamond, wagon, track, multiple unit, and any and all other types of mechanical drills without regard to the form of motive power; Toxic waste removal
TUNNEL LABORER CLASSIFICATIONS
GROUP 1: Batch plant laborer; Changehouse person; Dump
person; Dump person (outside); Swamper (brake person and switch person on tunnel work); Tunnel materials handling person; Nipper; Pot tender, using mastic or other materials (for example, but not by way of limitation, shotcrete, etc.) GROUP 2: Chucktender, cabletender; Loading and unloading agitator cars; Vibrator person, jack hammer, pneumatic
tools (except driller); Bull gang mucker, track person; Concrete crew, including rodder and spreader
GROUP 3: Blaster, driller, powder person; Chemical grout jet person; Cherry picker person; Grout gun person; Grout mixer person; Grout pump person; Jackleg miner; Jumbo person; Kemper and other pneumatic concrete placer operator; Miner, tunnel (hand or machine); Nozzle person; Operating of
troweling and/or grouting machines; Powder person (primer house); Primer person; Sandblaster; Shotcrete person; Steel form raiser and setter; Timber person, retimber person, wood or steel; Tunnel Concrete finisher
Item Number: 10.
C-54
City Project: 3021 City of Desert Hot Springs
GROUP 4: Diamond driller; Sandblaster; Shaft and raise work ---------------------------------------------------------------- * LABO1184-004 07/01/2022
Rates Fringes
Brick Tender.....................$ 37.32 21.45
---------------------------------------------------------------- LABO1414-001 08/03/2022
Rates Fringes
LABORER
PLASTER CLEAN-UP LABORER....$ 38.92 23.32
PLASTER TENDER..............$ 41.47 23.32
Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- PAIN0036-001 07/01/2020
Rates Fringes
Painters: (Including Lead
Abatement)
(1) Repaint (excludes San
Diego County)...............$ 29.59 17.12
(2) All Other Work..........$ 33.12 17.24
REPAINT of any previously painted structure. Exceptions:
work involving the aerospace industry, breweries,
commercial recreational facilities, hotels which operate commercial establishments as part of hotel service, and sports facilities.
---------------------------------------------------------------- PAIN0036-008 09/01/2022
Rates Fringes
DRYWALL FINISHER/TAPER...........$ 46.28 23.52
---------------------------------------------------------------- PAIN0036-015 01/01/2020
Rates Fringes
GLAZIER..........................$ 43.45 23.39
FOOTNOTE: Additional $1.25 per hour for work in a condor, from the third (3rd) floor and up Additional $1.25 per
hour for work on the outside of the building from a swing stage or any suspended contrivance, from the ground up
---------------------------------------------------------------- PLAS0200-009 08/03/2022
Rates Fringes
PLASTERER........................$ 47.37 19.64
---------------------------------------------------------------- PLAS0500-002 07/01/2020
Rates Fringes
CEMENT MASON/CONCRETE FINISHER...$ 38.50 25.91
---------------------------------------------------------------- Item Number: 10.
C-55
City Project: 3021 City of Desert Hot Springs
PLUM0016-001 09/01/2022
Rates Fringes
PLUMBER/PIPEFITTER
Work ONLY on new additions
and remodeling of bars,
restaurant, stores and
commercial buildings not
to exceed 5,000 sq. ft. of
floor space.................$ 53.51 25.28
Work ONLY on strip malls,
light commercial, tenant
improvement and remodel
work........................$ 40.95 23.61
All other work except work
on new additions and
remodeling of bars,
restaurant, stores and
commercial buildings not
to exceed 5,000 sq. ft. of
floor space and work on
strip malls, light
commercial, tenant
improvement and remodel
work........................$ 55.18 26.26
---------------------------------------------------------------- PLUM0345-001 09/01/2022
Rates Fringes
PLUMBER
Landscape/Irrigation Fitter.$ 38.20 25.65
Sewer & Storm Drain Work....$ 42.29 23.03
---------------------------------------------------------------- ROOF0036-002 08/01/2022
Rates Fringes
ROOFER...........................$ 43.47 19.52
FOOTNOTE: Pitch premium: Work on which employees are exposed to pitch fumes or required to handle pitch, pitch base or pitch impregnated products, or any material containing coal tar pitch, the entire roofing crew shall receive $1.75 per hour ""pitch premium"" pay.
---------------------------------------------------------------- SFCA0669-002 01/01/2022
Rates Fringes
SPRINKLER FITTER.................$ 41.27 26.77
---------------------------------------------------------------- SHEE0105-003 01/01/2022
LOS ANGELES (South of a straight line drawn between Gorman and Big Pines)and Catalina Island, INYO, KERN (Northeast part, East of Hwy 395), MONO ORANGE, RIVERSIDE, AND SAN BERNARDINO COUNTIES Rates Fringes
Item Number: 10.
C-56
City Project: 3021 City of Desert Hot Springs
SHEET METAL WORKER
(1) Commercial - New
Construction and Remodel
work........................$ 50.23 29.60
(2) Industrial work
including air pollution
control systems, noise
abatement, hand rails,
guard rails, excluding
aritechtural sheet metal
work, excluding A-C,
heating, ventilating
systems for human comfort...$ 48.28 29.46
---------------------------------------------------------------- TEAM0011-002 07/01/2020
Rates Fringes
TRUCK DRIVER
GROUP 1....................$ 32.59 30.59
GROUP 2....................$ 32.74 30.59
GROUP 3....................$ 32.87 30.59
GROUP 4....................$ 33.06 30.59
GROUP 5....................$ 33.09 30.59
GROUP 6....................$ 33.12 30.59
GROUP 7....................$ 33.37 30.59
GROUP 8....................$ 33.62 30.59
GROUP 9....................$ 33.82 30.59
GROUP 10....................$ 34.12 30.59
GROUP 11....................$ 34.62 30.59
GROUP 12....................$ 35.05 30.59
WORK ON ALL MILITARY BASES:
PREMIUM PAY: $3.00 per hour additional.
[29 palms Marine Base, Camp Roberts, China Lake, Edwards AFB, El Centro Naval Facility, Fort Irwin, Marine Corps
Logistics Base at Nebo & Yermo, Mountain Warfare Training Center, Bridgeport, Point Arguello, Point Conception,
Vandenberg AFB]
TRUCK DRIVERS CLASSIFICATIONS
GROUP 1: Truck driver
GROUP 2: Driver of vehicle or combination of vehicles - 2 axles; Traffic control pilot car excluding moving heavy equipment permit load; Truck mounted broom
GROUP 3: Driver of vehicle or combination of vehicles - 3 axles; Boot person; Cement mason distribution truck; Fuel truck driver; Water truck - 2 axle; Dump truck, less than 16 yds. water level; Erosion control driver
GROUP 4: Driver of transit mix truck, under 3 yds.; Dumpcrete truck, less than 6-1/2 yds. water level
GROUP 5: Water truck, 3 or more axles; Truck greaser and tire person ($0.50 additional for tire person); Pipeline and Item Number: 10.
C-57
City Project: 3021 City of Desert Hot Springs
utility working truck driver, including winch truck and plastic fusion, limited to pipeline and utility work;
Slurry truck driver
GROUP 6: Transit mix truck, 3 yds. or more; Dumpcrete truck, 6-1/2 yds. water level and over; Vehicle or combination of vehicles - 4 or more axles; Oil spreader truck; Dump truck, 16 yds. to 25 yds. water level
GROUP 7: A Frame, Swedish crane or similar; Forklift driver; Ross carrier driver
GROUP 8: Dump truck, 25 yds. to 49 yds. water level; Truck repair person; Water pull - single engine; Welder
GROUP 9: Truck repair person/welder; Low bed driver, 9 axles or over
GROUP 10: Dump truck - 50 yds. or more water level; Water pull - single engine with attachment
GROUP 11: Water pull - twin engine; Water pull - twin engine with attachments; Winch truck driver - $1.25 additional when operating winch or similar special attachments
GROUP 12: Boom Truck 17K and above
---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================ Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year.
Employees must be permitted to use paid sick leave for their own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is a victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at
https://www.dol.gov/agencies/whd/government-contracts.
Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (ii)).
Item Number: 10.
C-58
City Project: 3021 City of Desert Hot Springs
---------------------------------------------------------------- The body of each wage determination lists the classification and wage rates that have been found to be prevailing for the cited type(s) of construction in the area covered by the wage determination. The classifications are listed in alphabetical order of ""identifiers"" that indicate whether the particular rate is a union rate (current union negotiated rate for local), a survey rate (weighted average rate) or a union average rate (weighted union average rate).
Union Rate Identifiers
A four letter classification abbreviation identifier enclosed in dotted lines beginning with characters other than ""SU"" or ""UAVG"" denotes that the union classification and rate were prevailing for that classification in the survey. Example:
PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of the union which prevailed in the survey for this
classification, which in this example would be Plumbers. 0198 indicates the local union number or district council number where applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination. 07/01/2014 is the effective date of the most current negotiated rate, which in this example is July 1, 2014.
Union prevailing wage rates are updated to reflect all rate changes in the collective bargaining agreement (CBA) governing this classification and rate.
Survey Rate Identifiers
Classifications listed under the ""SU"" identifier indicate that no one rate prevailed for this classification in the survey and the published rate is derived by computing a weighted average rate based on all the rates reported in the survey for that classification. As this weighted average rate includes all rates reported in the survey, it may include both union and non-union rates. Example: SULA2012-007 5/13/2014. SU indicates the rates are survey rates based on a weighted average
calculation of rates and are not majority rates. LA indicates the State of Louisiana. 2012 is the year of survey on which these classifications and rates are based. The next number, 007 in the example, is an internal number used in producing the wage determination. 5/13/2014 indicates the survey completion date for the classifications and rates under that identifier.
Survey wage rates are not updated and remain in effect until a new survey is conducted.
Union Average Rate Identifiers
Classification(s) listed under the UAVG identifier indicate that no single majority rate prevailed for those
classifications; however, 100% of the data reported for the Item Number: 10.
C-59
City Project: 3021 City of Desert Hot Springs
classifications was union data. EXAMPLE: UAVG-OH-0010
08/29/2014. UAVG indicates that the rate is a weighted union average rate. OH indicates the state. The next number, 0010 in the example, is an internal number used in producing the wage determination. 08/29/2014 indicates the survey completion date for the classifications and rates under that identifier.
A UAVG rate will be updated once a year, usually in January of each year, to reflect a weighted average of the current negotiated/CBA rate of the union locals from which the rate is based.
----------------------------------------------------------------
WAGE DETERMINATION APPEALS PROCESS
1.) Has there been an initial decision in the matter? This can be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on a wage determination matter
* a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour National Office because National Office has responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed.
With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue.
Item Number: 10.
C-60
City Project: 3021 City of Desert Hot Springs
3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
4.) All decisions by the Administrative Review Board are final. ================================================================ END OF GENERAL DECISION"
Item Number: 10.
SR-23-253
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Manager
Prepared by: Doria Wilms, Interim City Manager
Subject: Temporary Reduction in Cannabis Cultivation Tax for the July - December 2023 Tax Period
RECOMMENDATION:
Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapters 3.33 (Titled "Marijuana Cultivation Tax") and 3.35 (Titled "Medical Marijuana Cultivation Tax") to amend Sections 3.33.005 (Titled "Imposition of Tax") and 3.35.005 (Titled "Imposition of Tax") to lower recreational and medical cultivation taxes of the Desert Hot Springs Municipal Code ("DHSMC") during the temporary term of July 1, 2023 to December 31, 2023.
BACKGROUND:
On April 4, 2023, the City Council approved a temporary 50% reduction in the cannabis cultivation tax for the current tax period of January 1, 2023, through June 30, 2023.
On October 3, 2023, the City Council approved making changes to the cannabis regulations which included the following;
1) Modify the definition of cultivation space, for the purposes of tax collection 2) Bring forth an Ordinance to align the city’s security requirements to mirror state law for cultivation, manufacturing, and distribution facilities 3) Bring forth an Ordinance to allow for a 6-month ramp-up period for new businesses to phase in space, for the purpose of calculating tax liability, as new rooms are brought online within a facility. 4) Bring forth an Ordinance to to extend the previous 50% reduction in the cannabis cultivation tax for the July - December 2023 tax period which will reduce the cannabis cultivation tax rate from $10.20 per sq. ft. of “space utilized” in connection with the cultivation process to $5.10 per sq. ft.
Items 1, 2, and 3 were included in the ordinance that was previously approved, Item 4 required a new ordinance to be drafted and is presented in this staff report.
Item Number: 11.
SR-23-253
DISCUSSION:
In the City's continued effort to address concerns the Cannabis industry is facing, City staff will conduct further comprehensive studies to evaluate the cultivation tax rate. In the interim, the proposed ordinance will temporarily reduce the cannabis cultivation rate by 50% for the July - December 2023 tax period.
Based on the revised definition of cultivation space that was adopted at the October 3, 2023 City Council Meeting, the total square footage of all taxable cultivation facilities was revised to 437,802 square feet, a 63,104 square foot reduction from the 500,906 square feet that was presented during the previous discussion on this matter. This translates to a higher fiscal impact than was previously presented.
Based on these new measurements, the proposed temporary reduction to $5.10 per square foot results in expected cultivation tax revenue of $1,116,395.10 for the tax period from July 1- December 31, 2023.
Should the proposed temporary tax reduction be adopted at $5.10 per square foot, and combined with the new definition of cultivation space, the estimated revenue for cultivation taxes would be reduced annually from the budgeted amount of $5,109,241.20 (based on $10.20 per square foot under the old definition of space) to $2,232,790.20 (based on $5.10 per square foot under the new definition of space).
FISCAL IMPACT:
If approved this action would result in a $1,438,225.50 loss in revenue for the General Fund for the current tax period or a $2,876,451.00 revenue loss annually if adopted permanently, which is substantially higher than the $1,762,872 annual loss that was previously presented when the Council considered lowering the taxes to $7.50 per square foot under the old definition of space. This would require significant cuts in programs and services provided by the City and/or increases in other revenues to offset this reduction. It is not recommended that the City further reduce the General Fund Reserves for this tax reduction.
ATTACHMENTS:
6894- Ordinance Amending DHSMC re Lowering Cultivation Taxes Temporarily. (10.04.23) Item Number: 11.
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF DESERT HOT SPRINGS, CALIFORNIA, AMENDING
CHAPTERS 3.33 (TITLED “MARIJUANA CULTIVATION
TAX” AND 3.35 (TITLED “MEDICAL MARIJUANA
CULTIVATION TAX”) TO AMENEND SECTIONS 3.33.005
(TITLED “IMPOSITION OF TAX”) AND 3.35.005 (TITLED
“IMPOSITION OF TAX”) TO LOWER RECREATIONAL
AND MEDICAL CULTIVATION TAXES OF THE DESERT
HOT SPRINGS MUNICIPAL CODE (“DHSMC”) DURING
THE TEMPORARY TERM OF JULY 1, 2023 TO
DECEMBER 31, 2023
WHEREAS, the City of Desert Hot Springs (“City”) is a municipal corporation and a charter city; and
WHEREAS, it has come to the City’s attend that various marijuana cultivators have inquired into having the City lower cultivation taxes for Marijuana Cultivation Facilities, as defined by Desert Hot Springs Municipal Code Section (“DHSMC”) section
17.180.030, and regulated pursuant to DHSMC Section 17.180.050; and WHEREAS, DHSMC Section 3.33.005 as it relates to recreational marijuana cultivation currently imposes taxes as follows, “In the event the cultivation of marijuana for casual/recreational use is legalized or decriminalized in California, any person or entity cultivating marijuana for casual/recreational use in the City shall pay an annual tax of $10 per square foot for space utilized in connection with the cultivation of marijuana for casual/recreational use.;” and
WHEREAS, DHSMC Section 3.35.005 as it relates to medical marijuana cultivation currently imposes taxes as follows, “Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally cultivating medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.), shall pay an annual tax of $10 per square foot for space utilized in connection with the cultivation of marijuana for medical use.;” and
WHEREAS, DHSMC Section 3.33.060 provides in part that the City Council can amend the recreational cultivation marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
Item Number: 11.
WHEREAS, DHSMC Section 3.35.070 provides in part that the City Council can amend the medical cultivation marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
WHEREAS, DHSMC Sections 3.33.070 (recreational) and 3.35.080 (medical) provide, among other things that the City Manager, or designee, and/or the City Council by ordinance may promulgate regulations to implement Chapter 3.33 and 3.35; and WHEREAS, on October 2, 2023, the City Council provided Staff direction to lower Marijuana Cultivation Taxes on a temporary basis for the tax term of July 1, 2023, to December 31, 2023 (“Temporary Term”); and
WHEREAS, the City Council deems now that Marijuana Cultivation Facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section
17.180.050, as applicable to both recreational and medical marijuana cultivation should be lowered during the Temporary Term to encourage the City’s competitive advantage; and
WHEREAS, at this time, the City Council desires to amend Chapter 3.33 and
3.35 to explicitly lower the marijuana cultivation tax for Marijuana Cultivation Facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section
17.180.050; and
WHEREAS, such proposed amount does in fact lower the current recreational cultivation tax, and medical cultivation tax during the Temporary Term; and WHEREAS, the equal dignity rule requires Chapters 3.33 and 3.35 as proposed by this Ordinance be adopted by ordinance;
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this ordinance is good for the public health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:
Section 1. RECITALS
Item Number: 11.
That the foregoing recitals are true and correct and are herein adopted by this reference.
Section 2. AMENDMENT OF SECTION 3.33.005 TITLED
“IMPOSITION OF TAX: OF CHAPTER 3.33 TITLE
“MARIJUANA CULTIVATION TAX” OF THE DESERT HOT
SPRINGS MUNICIPAL CODE (FOR RECREATIONAL
MARIJUANA CULTIVATION)
Section 3.33.005 of the Desert Hot Springs Municipal Code shall be amended to read as follows:
3.33.005. Imposition of Tax
In the event the cultivation of marijuana for casual/recreational use is legalized or decriminalized in California, any person or entity cultivating marijuana for casual/recreational use in the City shall pay an annual tax of $10 per square foot for space utilized in connection with the cultivation of marijuana for casual/recreational use. However, for the temporary term of July 1, 2023, to December 31, 2023, the cultivation tax shall be $5.10, plus adjustment per Consumer Price Index, per square foot for space utilized in connection with the cultivation of marijuana for casual/recreational use.
Section 3. AMENDMENT OF SECTION 3.35.005 TITLED
“IMPOSITION OF TAX” OF CHAPTER 3.35 “MEDICAL
MARIJUANA CULTIVATION TAX” OF THE DESERT HOT
SPRINGS MUNICIPAL CODE (FOR MEDICAL
MARIJUANA CULTIVATION)
Section 3.35.005 of the Desert Hot Springs Municipal Code shall be amended to read as follows:
3.35.005. Imposition of Tax.
Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally cultivating medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.), shall pay an annual tax of $10 per square foot for space utilized in connection with the cultivation of marijuana for medical use. However, for the temporary term of July 1, 2023, to December 31, 2023, the cultivation tax shall be $5.10, plus adjustment per Consumer Price Index, per square foot for space utilized in connection with the cultivation of marijuana for casual/recreational use.
Item Number: 11.
Section 4. SEVERABILITY
That, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.
Section 5. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.
Section 6. AMENDING OF BAIL SCHEDULE
That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.
Section 7. EFFECTIVE DATE
That this ordinance shall take effect pursuant to law.
Section 8. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 11.
PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2023 by the following vote:
Ayes:
Noes:
Abstain:
Absent:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Jennifer A. Mizrahi, City Attorney
https://streamkim.sharepoint.com/sites/ZDrive/Shared Documents/data/004 DHS/DHSO/0001-01 General/Doc/6899- Ordinance Amending DHSMC re Lowering Cultivation Taxes Temporarily. (10.04.23).docx Item Number: 11.
SR-23-265
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Manager
Prepared by: Noe Arechiga, Grants Manager
Subject: CalRecycle SB 1383 Grant Application
RECOMMENDATION:
Adopt a Resolution of the City Council to authorize Staff to submit a grant application for the California Department of Resources Recycling and Recovery (CalRecycle) 2024-2025 funds for $ 75,000 for Organic Waste Reduction Program.
BACKGROUND:
In September 2016, the State Legislature set Short-Lived Climate Pollutants reduction targets for California in Senate Bill 1383 (SB 1383), as a statewide effort to reduce emissions of greenhouse gasses (such as methane, a byproduct of organic waste) in an effort to combat climate change.
SB 1383 established statewide targets to reduce organic waste disposal to 50% by 2020 and to 75% by 2025. It also set a target to increase edible food recovery to 20% by 2025.
As a result of SB 1383, the California Department of Resources Recycling and Recovery (CalRecycle), developed regulations to achieve the State's organic waste diversion goals by 2025. In November 2020, CalRecycle released the final regulations for SB 1383. SB 1383 requires all businesses, residents, and multi-family residential units to have access to recycling programs that capture food scraps, landscaping waste, and other organic waste materials.
The SB 1383 Regulations require the following:
1) Residential – All residents are required to receive organic waste collection services. 2) Multifamily with five or more units – All are required to recycle their organic waste (under AB 1826, multi-family properties of five or more units were only required to recycle landscape debris). 3) Commercial – All commercial businesses generating two (2) or more cubic yards of solid organic waste per week, are required to recycle their organic waste. 4) Every jurisdiction must provide the following:
a) Organic waste collection services to all residents and businesses Item Number: 12.
SR-23-265
b) Edible food recovery
c) Organics procurement
d) Contamination monitoring
e) Education and Outreach
f) Capacity Planning
g) Recordkeeping
h) Enforcement
i) Reporting
DISCUSSION:
SB 1383 has been the most significant waste reduction mandate to be adopted in the State of California in the last 30 years. In an effort to achieve the State requirements of SB 1383 the City has been diligently working with CalRecycle and Desert Valley Disposal (“DVD”) in developing an SB 1383 implementation plan and moving forward with completing the various required tasks within the required deadlines.
Grant funds for the implementation of SB 1383 regulations are now available through CalRecycle, therefore the City will be submitting a grant application.
CalRecyle SB 1383 funds will be used to fund program implementation and continue current program activities. With the help of a consultant, the city proposes to assess organics waiver and self-haul program, evaluate SB1383 public education and outreach and perform gap analysis to ensure the City’s full compliance with SB1383.
FISCAL IMPACT:
There is minimal fiscal impact to this item being presented, all program costs will be up to $75,000 and will be reimbursed by the California Department of Resources Recycling and Recovery (CalRecycle) program.
ATTACHMENTS:
1) SB 1383 Resolution
Item Number: 12.
RESOLUTION NO. 2023-
RESOLUTION OF THE CITY OF DESERT HOT SPRINGS AUTHORIZING
SUBMITTAL OF INDIVIDUAL GRANT APPLICATIONS FOR ALL GRANT
PROGRAMS FOR WHICH THE CITY OF DESERT HOT SPRINS IS ELIGIBLE Whereas, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and Whereas, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and Whereas, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.
Now, therefore, be it resolved that the City of Desert Hot Springs authorizes the submittal of applications to CalRecycle for all grants for which The City of Desert Hot Springs is eligible; and
Be it further resolved that the City Manager, or their designee, is hereby authorized and empowered to execute in the name of the City of Desert Hot Springs all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and
Be it further resolved that these authorizations are effective for five years from the date of adoption.
Date Adopted _____________
Attest/Certified _____________(Name(s) and Signature(s)) Item Number: 12.
SR-23-258
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Manager
Prepared by: Noe Arechiga, Grants Manager
Subject: Community Development Block Grant ("CDBG") Application Resolution for FY 2024-25
RECOMMENDATION:
Adopt a Resolution of the City Council authorizing the City of Desert Hot Springs to participate in and authorize the City Manager to approve all agreements and necessary documents associated with the Community Development Block Grant for Fiscal Year 2024-2025. ($270,000 for installation of shade structures at Wardman Park)
BACKGROUND:
Each year the City receives an entitlement allocation of the Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD). The City’s 2024-2025 CDBG allocation is estimated at $270,000. The majority of these funds must be spent on capital projects, such as housing, public facility improvements, or eligible public works projects. Due to the federal budget process, the exact amount of the City’s 2024-2025 allocation may not be known until as late as May.
CDBG activities must meet one of the three CDBG national objectives; benefit low-income and moderate-income (LMI) persons, aid in the prevention or elimination of slums or blight and meet a need having a particular urgency. At least 70% of the CDBG funds must be used for activities that benefit low-income persons. This restriction and the corresponding data collection requirements make qualifying of CDBG funding challenging for many cities. In addition to meeting national objectives, the activity itself must be designated as eligible CDBG funds may be used for a variety of community development activities including acquisition of real property, rehabilitation of residential and nonresidential structures, construction of public facilities and improvements, public services, and economic development and job creation/retention activities.
DISCUSSION:
In an effort to effectively utilize CDBG funds with eligible expenses, City Staff reviewed the CDBG criteria, the City’s Capital Improvement Plan, and inspected all existing facilities.
Staff completed an inspection of all City Facilities and noted one of the current needs to be lack of shading in high use areas of Wardman Park. This project will install four shade structures over existing bleacher seating areas, in addition to replacing an aging standalone shade structure in the parks picnic area.
Item Number: 13.
SR-23-258
Wardman Park is located on 66190 8th St. The park is mostly used for youth sports activities, particularly Desert Hot Springs Little League. The park currently offers two baseball fields, two modified t-ball fields, in addition to a basketball court, pickleball courts, a playground, and a dog park.
The Proposed addition of shade structures would greatly benefit residents, providing them with comfort during sunlit hours. This enhancement would further elevate Wardman’s Park appeal, demonstrating the city’s commitment to its community’s well-being.
FISCAL IMPACT:
There is minimal fiscal impact to this item being presented, all construction costs will be up to $270,000 and will be reimbursed by the CDBG program. The City must provide the cash flow necessary for the design.
ATTACHMENTS:
1) Resolution - CDBG FY 2024-25
2) Wardman Park Shade Structures
Item Number: 13.
RESOLUTION NO. 2023-______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS AUTHORIZING THE CITY OF DESERT HOT SPRINGS
TO PARTICIPATE IN AND AUTHORIZE THE CITY MANAGER TO
APPROVE ALL AGREEMENTS AND NECESSARY DOCUMENTS
ASSOCIATED WITH THE COMMUNITY DEVELOPMENT BLOCK
GRANT FOR FISCAL YEAR 2024-2025.
WHEREAS, the City of Desert Hot Springs has elected to apply and participate as unit of local government in the County of Riverside’s Urban County Program for Fiscal Year 2024-2025; and
WHEREAS, the City of Desert Hot Springs CDBG funding for Fiscal Year 2024- 2025 is estimated to be $270,000, and
WHEREAS, the City of Desert Hot Springs has an eligible project and community need for grant funds, and
WHEREAS, the City of Desert Hot Springs will use the funds for improvements and rehabilitation of an existing park into a new park, and WHEREAS, the City Manager or his designee has the full authority to execute all documents related to the agreements and any amendments, and NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Desert Hot Springs approves the use of CDBG funds outlined in the staff report.
Section 1. That the above recitals are true and correct.
Section 2. The City Council approves Staff to participate in the County of Riverside’s Urban County Program for Fiscal Year 2024-2025 and authorizes the City Manager to submit the application on behalf of the City. Furthermore, the City Council authorizes the City Manager or his designee to approve and execute all agreements, reprograming actions, and make all necessary decisions associated with the Program.
PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this 7th day of November, 2023 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Item Number: 13.
ATTEST: APPROVED:
Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
Jennifer Mizrahi, City Attorney
Item Number: 13.
CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on November 7, 2023, of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11999 Palm Drive, Desert Hot Springs, CA 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.
I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.
Dated: November 7, 2023
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 13.
Item Number: 13.
SR-23-269
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Manager
Prepared by: Daniel Porras, Interim Deputy City Manager Subject: Purchase and Sale Agreement with Riverside County for Former Library RECOMMENDATION:
Authorize the City Manager to execute the Purchase and Sale Agreement for the purchase of the former library by and between the City of Desert Hot Springs and Riverside County in an amount not to exceed $350,000, and allow for any substantive changes to be made by the City Manager, if needed.
BACKGROUND:
Riverside County is the property owner of the former library located on 11777 West Drive.
Riverside County completed the construction of a new library building located at 14380 Palm Drive.
With the completion of the new library building, all library services were moved from the former library into the new library location. Therefore, the former library is currently vacant and not in use by Riverside County.
DISCUSSION:
The City and Riverside County met and discussed the possibility of a sale and transfer of the former library. Riverside County completed an appraisal of the property and determined the property value to be $350,000. Riverside County offered the property to the City for sale for the appraised value of $350,000.
If approved, the attached purchase and sale agreement will give authorization to the City Manager to purchase the former library property located at 14380 Palm Drive from Riverside County.
FISCAL IMPACT:
Funding for the $350,000 purchase price will utilize the General Fund Reserve for Capital Uses.
ATTACHMENTS:
1) Purchase and Sale Agreement
2) Appraisal of Former Library
Item Number: 14.
AGREEMENT OF PURCHASE AND SALE
AND JOINT ESCROW INSTRUCTIONS
BY AND BETWEEN
THE COUNTY OF RIVERSIDE,
a political subdivision of the State of California
AS SELLER
AND
CITY OF DESERT HOT SPRINGS,
a California municipal corporation
AS BUYER
RELATING TO
11691 West Drive, Desert Hot Springs, California 92240
Assessor’s Parcel Numbers:
664-190-027
Item Number: 14.
1 AGREEMENT OF PURCHASE AND SALE
AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT OF PURCHASE AND SALE AND JOINT ESCROW
INSTRUCTIONS (“Agreement”) is made and entered into this ______ day of ____________, 2023, by and between the CITY OF DESERT HOT SPRINGS, A CALIFORNIA MUNICIPAL CORPORATION (“Buyer”) and COUNTY OF RIVERSIDE, a political subdivision of the State of California (“Seller”); sometimes collectively hereinafter referred to as the “Parties” or individually as a “Party.”
RECITALS
WHEREAS Seller is the owner of the Property (as defined in Section 1 below) and has determined that the Property is no longer required for its own use; and WHEREAS the Seller desires to sell, and Buyer desires to purchase, the Property, and the Parties desire to enter into this Agreement to provide the terms and conditions for the Parties to complete the sale by the Seller of the Property to the Buyer; and WHEREAS the Parties desire to enter into this Agreement to provide a binding process for the Parties to complete the sale by the Seller to Buyer; and NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto do hereby agree as follows:
1. Definitions. For the purposes of this Agreement, the following terms will be defined as follows:
(a) Effective Date: The Effective Date is the last date on which this Agreement is fully executed by Buyer or Seller as listed on the signature page of this Agreement.
(b) Property: Seller is the owner of certain real property located in the City of Desert Hot Springs, County of Riverside, State of California, consisting of approximately 0.13 acres of land, containing approximately a 3,520 square foot vacant former public library building and the related improvements, commonly known as 11691 West Drive, Desert Hot Springs, California, identified by Assessor’s Parcel Number 664-190-027, which is more particularly described in Exhibit “A,” attached hereto and incorporated herein (“Property”); (c) Purchase Price: The Purchase Price for the Property is Three-Hundred Fifty Thousand Dollars ($350,000).
(d) Escrow Holder: Lawyers Title Company at the address set forth in subsection (h) below. The escrow has been assigned to Debbie Strickland as the Escrow Officer.
(e) Title Company: Lawyers Title Company at the address set forth in subsection (h) below; Barbara Northrup is assigned as the Title Officer.
Item Number: 14.
2 (f) Closing and Close of Escrow: The Closing or the Close of Escrow will be deemed to have occurred when the Grant Deed (as defined in Section 5.1) is recorded in the Official Records of the County of Riverside. The terms “Closing” and “Close of Escrow” are used interchangeably in this Agreement.
(g) Closing Date: The Closing Date shall occur on or before sixty (60) days from the Effective Date, unless extended by mutual approval of the Parties hereto. If the escrow is not closed on or before sixty (60) days from the Effective Date or otherwise extended by mutual approval, then either Party may elect to cancel escrow by providing a written notice to the other Party and to Lawyers Title Company and paying any and all Escrow cancellation fees. If no demand for cancellation is made, then Escrow will close as soon as possible. (h) Notices: In the event either Party desires or is required to give notice to the other Party in connection with this Agreement, the same shall be in writing and shall be deemed to have been given when delivered in person, when delivered (or delivery is refused by recipient) by recognized overnight air courier service (such as FedEx, UPS or USPS), when delivered by email transmission (provided that such email transmission is followed by delivery in person, or by overnight courier or certified mail), or three (3) days after deposit with the United States Postal Service, certified mail receipt requested addressed to Buyer or Seller at the appropriate address as set forth in this subsection (h) below. Notices will be sent as follows to:
Seller: County of Riverside
Attn: Vincent Yzaguirre
3450 14th Street, Suite 200
Riverside, CA 92501
Telephone: (951) 955-9011
Email: [email protected]
Buyer: City of Desert Hot Springs
Attn: Doria Wilms
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Email: [email protected]
Escrow Holder: Lawyers Title Company
Attn: Debbie Strickland
3480 Vine Street, Suite 300
Riverside, CA 92507
Telephone: (951) 248-0660
Email: [email protected]
Title Company: Lawyers Title Company
3480 Vine Street, Suite 300
Riverside, CA 92507
Attn: Barbara Northrup
Telephone: (951) 248-0669
Email: [email protected]
(i) Exhibits:
Item Number: 14.
3 Exhibit “A” – Legal Description of Property
Exhibit “B” – Form of Grant Deed
Exhibit “C” – Preliminary Title Report
2. Purchase and Sale. Upon and subject to the terms and conditions set forth in this Agreement, Seller agrees to sell the Property to Buyer and Buyer agrees to buy the Property from Seller, together with all easements, appurtenances thereto, and all improvements and fixtures situated thereon.
3. Purchase Price. The Purchase Price for the Property will be paid as follows:
Prior to the Close of Escrow, as described in section 1(f) above, Buyer shall deposit an amount equal to the sum of the Purchase Price plus a good faith estimate of Buyer’s share of all costs, expenses and prorations under this Agreement into Escrow in the form of a wire transfer or other immediately available funds. Escrow Holder shall deposit said funds in an interest-bearing account which shall be applied against the Purchase Price at closing and any overages, including the interest, shall be returned to Buyer at Close of Escrow.
4. Escrow. Buyer and Seller shall open an escrow (the “Escrow”) with Escrow Holder within five (5) business days after the Effective Date by delivering to Escrow Holder fully executed original or originally executed counterparts of this Agreement. The date Escrow is opened shall be the official Opening Date of Escrow referenced herein. This Purchase shall be contingent upon the approval of the Board of Supervisors of the Authorization to Convey and this Purchase and Sale Agreement and Joint Escrow Instructions document. This contingency will be removed from Escrow upon the receipt of the executed Purchase and Sale Agreement and Joint Escrow Instructions document signed by Chairman of the Board of Supervisors.
Buyer and Seller agree to execute any additional instructions, as reasonably required by the Escrow Holder. If there is a conflict between any printed escrow instructions and this Agreement, the terms of this Agreement will govern.
5. Deliveries to Escrow Holder.
5.1 By Seller. At least one (1) business day prior to the Closing Date, Seller will deliver or cause to be delivered to Escrow Holder the following items:
(a) A Grant Deed (“Grant Deed”), in the form attached to this Agreement as Exhibit “B”, duly executed and acknowledged by Seller and in recordable form, conveying the Property to Buyer;
(b) A Transferor’s Certificate of Non-Foreign Status (“FIRPTA Certificate”).
5.2 By Buyer. At least one (1) business day prior to the Closing Date (and in any event in a manner sufficient to allow Escrow to close not later than the Closing Date), Buyer will deliver or cause to be delivered to Escrow Holder the following items:
(a) The Purchase Price in accordance with Section 3, above; and (b) The amount due Seller and any third parties, if any, after the prorations are computed in accordance with Section 12 below.
Item Number: 14.
4 5.3 By Buyer and Seller. Buyer and Seller will each deposit such other instruments consistent with this Agreement and as reasonably required by Escrow Holder or otherwise required to close Escrow. In addition, Seller and Buyer will designate the Title Company as the “Reporting Person” for the subject transaction, pursuant to Section 6045(e) of the Internal Revenue Code.
6. Title Report. Buyer has obtained Preliminary Title Report #622650360, dated October 18, 2022, (“PTR”) for the Property prepared by Lawyers Title Company, together with copies of the exceptions to title described in the Preliminary Title Report, attached hereto as Exhibit “C” and incorporated herein by reference.
7. Conditions to the Close of Escrow.
7.1 Conditions Precedent to Buyer’s Obligations. The following conditions to Buyer’s obligation to close Escrow must be satisfied not later than the Closing Date or such other period of time as may be specified below:
(a) Title. At the Close of Escrow, the Property will be conveyed with clear and marketable title, free of any loans, liens and encumbrances of any kind, to Buyer by the Seller by Grant Deed, and as a condition to Buyer’s obligation to close, the Title Company shall agree to issue the Title Policy to Buyer with coverage in the amount of the Purchase Price, listing the following as exceptions (“Permitted Exceptions”):
(i) Matters of title respecting the Property approved or deemed approved by Buyer in accordance with this Agreement; (ii) Matters affecting the condition of title to the Property created by or with the written consent of Buyer;
(iii) Non-delinquent real property taxes (if any); and
(iv) Non-monetary encumbrances in the PTR that are
approved by Buyer as provided in this subparagraph (iv). Buyer shall have the right to review and approve or disapprove any exceptions in the PTR that relate to the Property, at Buyer's sole cost and expense. Within ten (10) business days after receipt of the PTR and copies of all documents listed in the PTR as exceptions, Buyer shall provide notice in writing to Seller in the event that Buyer objects to exceptions (collectively, the "Objectionable Exceptions"), as shown in the PTR. Seller will have ten (10) days after receipt of Buyer's notice of Objectionable Exceptions to advise Buyer in writing whether Seller will eliminate or ameliorate the Objectionable Exceptions. If the Seller elects not to or is unable to eliminate or ameliorate the Objectionable Exceptions, then Buyer shall have the right to, by a writing delivered to Seller and Escrow Holder:
(A) Waive its prior disapproval, in which event the
disapproved matters shall be deemed approved, and proceed with the purchase to acquire the Property, subject to the Objectionable Exceptions without reduction in the Purchase Price and subject to satisfaction of Buyer's other conditions; or (B) Cancel the Escrow and this Agreement by written
notice to Seller and the Escrow Holder, in which case any deposit, together with interest thereon will be returned to Buyer and the cancellation costs, if any, will be borne by Buyer. (C) If Seller commits to remove any of the Objectionable Exceptions and fails to do so by the Closing Date, then Seller may be declared in default under Item Number: 14.
5 this Agreement and Buyer may, at Buyer's election, terminate this Agreement and pursue its remedies as set forth herein and any remedies available to Buyer at law or in equity, provided such failure was not as a result of Seller pursuing in good faith to remove any of the Objectionable Exceptions committed by Seller to remove and was unsuccessful due to factors beyond the control of the Seller. All exceptions in the PTR that are approved by Buyer, together with all applicable laws, ordinances, rules and regulations of any applicable governmental authority and any matters that have been disclosed by an accurate survey provided to Buyer or by a reasonable physical inspection of the Property shall be referred to herein as "Permitted Exceptions".
(b) Title Insurance. As of the Close of Escrow, the Title Company will issue, or have committed to issue, the Title Policy to Buyer with only the Permitted Exceptions, as set forth in detail in section 10 below. (c) Delivery of Information. Within five (5) days after the Opening of Escrow, Seller shall deliver to Buyer the original or true copies of all surveys, plans, and specifications, residential disclosure statements (as required), building conditions audits, past hazardous material studies, as-built drawings, building permits, certificates of occupancy, certificates of completion, soil reports, engineers’ reports, other contracts, but not limited to, studies, and similar information which Seller may have in its possession relating to the Property, except as specifically set forth herein, Seller makes no warranty regarding the contents of such items. If the Escrow shall fail to close for any reason, all such items shall be immediately returned to Seller.
(d) The conditions set forth in this Section 7.1 are solely for the benefit of Buyer and may be waived only by Buyer. At all times Buyer has the right to waive any condition. Such waiver or waivers must be in writing to Seller and Escrow Holder. (e) The Close of Escrow and Buyer’s obligations with respect to this transaction are subject to Seller’s delivery to Escrow Holder on or before the Closing Date the items described in Sections 5.1 and 5.3 above and the removal or waiver of the items described in this Section 7.1.
7.2 Conditions Precedent to Seller’s Obligations. The following shall be conditions precedent to Seller’s obligation to consummate the Purchase and Sale transaction contemplated herein:
(a) Buyer shall have delivered to Escrow Holder, prior to the Closing, for disbursement as directed hereunder, an amount equal to the Purchase Price and any other funds in accordance with this Agreement;
(b) Buyer shall have delivered to Escrow Holder the items described in Paragraphs 5.2 and 5.3 above; and
(c) The conditions set forth in the Section 7.2 are solely for the benefit of Seller and may be waived only by the Seller. At all times Seller has the right to waive any condition. Such waiver or waivers must be in writing to Buyer and Escrow Holder.
7.3 Termination of Agreement. Buyer shall have forty-five (45) days from the Effective Date to approve or disapprove of the condition of the Property (“Due Diligence Period”). During this Due Diligence Period, Buyer may cancel escrow for any reason Item Number: 14.
6 whatsoever, by providing written notice to Seller and Escrow of its intention to cancel said escrow.
8. Due Diligence by Buyer. Seller hereby grants to Buyer, or its authorized agents, permission to enter upon the Property at all reasonable times prior to close of this transaction for the purpose of conducting due diligence, including making necessary or appropriate inspections.
8.1 Matters to Be Reviewed. Buyer must complete its due diligence investigation of and approve each of the following matters prior to the Close of Escrow:
(a) The physical condition of the Property, including without limitation, any structural components, electrical, system, plumbing or any irrigation system, paving, soil conditions, the status of the Property with respect to hazardous and toxic materials, if any, and in compliance with all applicable laws including any laws relating to hazardous and toxic materials and all applicable laws;
(b) All applicable government ordinances, rules, and regulations of Seller’s compliance therewith including, but not limited to, zoning and building regulations; and (c) All licenses, permits, and other governmental approvals and/or authorizations relating to the Property which shall remain in effect after the Close of Escrow.
8.2 Due Diligence Requirements.
(a) Subject to Section 16.4 below, Buyer shall only conduct a visual inspection of the Property and shall have no right to conduct any physical testing, boring, sampling or removal (collectively, "Physical Testing") of any portion of the Property without first obtaining Seller's prior written consent, which shall not be unreasonably withheld. If Buyer wishes to conduct any Physical Testing on any portion of the Property, Buyer shall submit a work plan to Seller for Seller's prior written approval. (b) At least forty-eight (48) hours prior to any entry thereon to the Property by Buyer and/or its agents, employees, representatives or contractors (collectively, "Buyer's Agents") for the purpose of conducting Buyer's investigations, Buyer shall provide Seller with sufficient evidence to show that Buyer's Agents who are to enter thereon to the Property are adequately covered by policies of insurance issued by a carrier reasonably acceptable to Seller insuring Buyer and Seller against any and all liability arising out of the entry and activities of Buyer's Agents' upon the Property, including, without limitation, any loss or damage to the Property or Transferred Personal Property arising therefrom, with coverage in the amount of not less than One Million Dollars ($1,000,000) per occurrence. (c) Buyer shall, at its sole cost and expense, comply with all applicable federal, state and local laws, statutes, rules, regulations, ordinances or policies in conducting Buyer's investigations and any Physical Testing relating thereto. (d) Buyer shall, at its sole cost and expense, clean up, restore and repair the Property and any other portion thereof altered in any manner by Buyer or Buyer's Agents, after Buyer's or Buyer's Agents' entry thereon so that said property shall be returned to the same condition that existed prior to Buyer's or Buyer's Agents' entry thereon. (e) Buyer shall provide to Seller, upon Seller's written request, with a copy of any and all information, materials and data that Buyer and/or Buyer's Agents discover, Item Number: 14.
7 obtain or generate in connection with or resulting from Buyer's investigations and/or Physical Testing under this Section 8.2.
(f) Buyer hereby agrees to protect, indemnify, defend, and hold harmless Seller from and against any and all losses, obligations, liabilities, claims, liens, stop notices, actions, damages and/or expenses caused by reason of Buyer's or Buyer's Agent's entries thereon to the Property prior to the Close of Escrow pursuant to the foregoing. Buyer shall keep the Property free of mechanic's liens related to the activities of Buyer or Buyer’s Agents. This Section 8.2 shall survive the Closing or termination of this Agreement.
8.3 Material New Matters. If Buyer discovers any new matter prior to Close of Escrow which was not disclosed by Seller prior to the Close of Escrow or not reasonably discoverable prior to the Close of Escrow (“New Matter”), and that New Matter is one which would appear as an exception to the Title Policy or is materially inconsistent with a disclosure by Seller or with any representations or warranties contained in Section 16.2 below, and such New Matter is of such a nature that, in Buyer’s reasonable judgment, it would materially and adversely, affect the acquisition, development, sale or use of the Property for Buyer’s intended purpose, then Buyer shall be entitled to treat such New Matter as a failure of condition to the Close of Escrow. If Buyer elects to treat such New Matter as a failure of condition to the Close of Escrow, then Buyer shall give notice to Seller of Buyer’s election to terminate this Agreement within fifteen (15) days of Buyer’s obtaining knowledge of such New Matter, but in no event later than the Closing Date. However, if Buyer gives Seller notice of its election to terminate this Agreement, under this Section 8.3, Seller may elect, in its sole and absolute discretion, by written notice to Buyer and to Escrow Holder, within five (5) business days following Seller’s receipt of Buyer’s notice, to correct the New Matter prior to the Close of Escrow. If Seller elects to correct the New Matter, Seller will be entitled to extend the Close of Escrow for not more than twenty (20) days in order to correct the New Matter and, in such event, Buyer may not terminate this Agreement. If Seller fails to correct the New Matter by the Closing Date as extended, Buyer may terminate this Agreement.
8.4 AS-IS Sale. BUYER ACKNOWLEDGES THAT IT HAS INSPECTED,
OR WILL HAVE AN OPPORTUNITY TO INSPECT, TO ITS SATISFACTION PRIOR TO THE
CLOSING, THE PROPERTY AND ALL FACTORS RELEVANT TO ITS OWNERSHIP AND USE OF THE PROPERTY. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT,
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER HAS NOT MADE
ANY REPRESENTATIONS, WARRANTIES, GUARANTIES, PROMISES, STATEMENTS, OR
ASSURANCES WHATSOEVER, EXPRESS OR IMPLIED, DIRECTLY OR THROUGH ANY
EMPLOYEE OR AGENT, AS TO THE CONDITION OF THE PROPERTY, OR ANY OTHER MATTER, INCLUDING, BUT NOT LIMITED TO, HAZARDOUS SUBSTANCES. WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING IN ANY WAY, EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED HEREIN, SELLER EXPRESSLY DISCLAIMS
MAKING OR HAVING MADE ANY REPRESENTATIONS OR WARRANTY WITH RESPECT TO ANY DOCUMENTS AND MATERIALS FURNISHED BY SELLER. BUYER ACKNOWLEDGES AND AGREES THAT EXCEPT FOR SELLER’S EXPRESS COVENANTS,
REPRESENTATIONS AND WARRANTIES CONTAINED IN THE AGREEMENT, SELLER SPECIFICALLY DISCLAIMS: (A) ALL MATTERS RELATING TO THE TITLE TOGETHER
WITH ALL GOVERNMENTAL AND OTHER LEGAL REQUIREMENTS SUCH AS TAXES,
ASSESSMENTS, ZONING, USE PERMIT REQUIREMENTS, TENTATIVE MAP
CONDITIONS, BUILDING PERMIT REQUIREMENTS, BUILDING CODES, AND OTHER DEVELOPMENT REQUIREMENTS; (B) THE PHYSICAL CONDITION OF THE PROPERTY; (C) ALL OTHER MATTERS OF ANY SIGNIFICANCE AFFECTING THE PROPERTY,
WHETHER PHYSICAL IN NATURE OR INTANGIBLE IN NATURE, SUCH AS THE Item Number: 14.
8 POLITICAL CLIMATE WITH RESPECT TO THE GOVERNMENTAL AGENCIES THAT HAVE
JURISDICTION OVER THE PROPERTY, DEVELOPMENT OF THE PROPERTY OR THE OPERATION OF THE PROPERTY; (D) THE EXISTENCE, QUALITY, NATURE, ADEQUACY AND PHYSICAL CONDITION OF UTILITIES SERVING THE PROPERTY; (E) THE
ECONOMICS OF THE PRESENT OR FUTURE OWNERSHIP AND/OR OPERATION OF THE PROPERTY AND TRANSFERRED PERSONAL PROPERTY; (F) ENTITLEMENTS,
ZONING, DENSITY, AND OTHER MATTERS WHICH MAY IMPACT THE FUTURE DEVELOPMENT OF THE PROPERTY; AND (G) THE EXISTENCE OF HAZARDOUS
SUBSTANCES IN, UNDER, OR AFFECTING THE PROPERTY AND TRANSFERRED PERSONAL PROPERTY. BUYER ACKNOWLEDGES AND AGREES THAT BUYER IS PURCHASING THE PROPERTY AND TRANSFERRED PERSONAL PROPERTY “AS IS WITH ALL DEFECTS” BASED UPON BUYER’S OWN INSPECTION OF THE PROPERTY.
9. Conditions Precedent to Seller’s Obligation. The Close of Escrow and Seller’s obligations with respect to this transaction are subject to Buyer’s delivery to Escrow Holder on or before the Closing Date of the Purchase Price and items described in Sections
5.2 and 5.3.
10. Title Insurance. At the Close of Escrow, the Title Company will issue to Buyer, at Seller’s expense, a CLTA standard coverage owner’s policy in an amount equal to the Purchase Price showing fee title to the Property vested in Buyer subject only to the Permitted Exceptions (“Title Policy”) and the standard printed exceptions and conditions in the policy of title insurance. If Buyer elects to obtain any endorsements or an ALTA Extended Policy of Title, the additional premium and costs of the policy survey for the ALTA Extended policy of title and the cost of any endorsements will be at Buyer’s sole cost and expense; however, Buyer’s election to obtain an ALTA extended policy of title will not delay the Closing. Further, Buyer’s inability to obtain an ALTA extended policy of title or any such endorsements will not be deemed to be a failure of any condition to Closing.
11. Costs and Expenses. Seller and Buyer shall deposit or provide for with Escrow Holder sufficient funds to pay for their respective share of costs and expenses.
11.1 Seller will pay:
(a) One half (1/2) of escrow costs and fees;
(b) All costs associated with removing any debt or liens encumbering the Property;
(c) All costs associated with Seller’s attorneys’ fees and Seller’s cost to transact;
(d) Seller’s share of prorations, if applicable; and
(e) CLTA standard coverage title policy.
Item Number: 14.
9 11.2 Buyer will pay:
(a) One half (1/2) of escrow and all transfer taxes, recording costs/fees;
(b) ALTA Extended Owner’s Policy and any title endorsements, if elected by the Buyer;
(c) All costs associated with Buyer’s attorneys’ fees and Buyer’s cost to transact; and
(d) Buyers share of prorations, if applicable.
12. Prorations; Closing Statement.
12.1 Tax Exempt Agency. All Parties hereto acknowledge that the Buyer and Seller are public entities and exempt from payment of any real property taxes. There will be no proration of taxes through escrow.
12.2 Utility Deposits. Seller will notify all utility companies servicing the Property of the sale of the Property to Buyer and will request that such companies send Seller a final bill for the period ending on the last day before the Close of Escrow. Buyer will notify the utility companies that all utility bills for the period commencing on the Close of Escrow are to be sent to Buyer. If Seller receives a bill for utilities provided to the Property for the period in which the Close of Escrow occurred, Seller shall be responsible to pay the bill.
12.3 Method of Proration. For purposes of calculating prorations, Buyer shall be deemed to be in title to the Property, and therefore entitled to the income there from and responsible for the expenses thereof, for the entire day upon which the Closing occurs. All prorations will be made as of the date of Close of Escrow based on a three hundred sixty-five (365) day year or a thirty (30) day month, as applicable. The obligations of the Parties pursuant to this Section 12 shall survive the Closing and shall not merge into any documents of conveyance delivered at Closing.
12.4 Closing Statements. Seller and Buyer shall each provide Escrow Holder with the information necessary to allow Escrow Holder to prepare a preliminary closing statement for the transaction (“Preliminary Closing Statement”), which shall show the net amount due to each party under this Agreement, including the balance of the Purchase Price payable by Buyer and the adjustments and prorations set forth herein. Once the Preliminary Closing Statement is signed by Seller and Buyer, then Escrow Holder, for purposes of closing Escrow, shall be entitled to rely upon the information set forth in the Preliminary Closing Statement. The Parties acknowledge that the Preliminary Closing Statement is a good faith estimate of the closing costs and may vary at the time of Closing.
13. Disbursements and Other Actions by Escrow Holder. At the Close of Escrow, Escrow Holder will promptly undertake all of the following:
Item Number: 14.
10 13.1 Funds. Promptly upon Close of Escrow, disburse all funds deposited with Escrow Holder by Buyer in payment of the Purchase Price as follows: (a) deduct or credit all items chargeable to the account of Seller and/or Buyer pursuant to Sections 11 and 12, (b) disburse the balance of the Purchase Price to the Seller, and (c) disburse any excess proceeds deposited by Buyer to Buyer.
13.2 Recording. Cause the Grant Deed to be recorded with the County Recorder and obtain conformed copies thereof for distribution to Buyer and Seller.
13.3 Title Policy. Direct the Title Company to issue the Title Policy to Buyer.
13.4 Delivery of Documents to Buyer and Seller. Deliver to Buyer the FIRPTA Certificate and any other documents (or copies thereof) deposited into Escrow by Seller. Deliver to Seller any other documents (or copies thereof) deposited into Escrow by Buyer.
14. Joint Representations and Warranties. In addition to any express agreements of the Parties contained herein, the following constitute representations and warranties of the Parties each to the other:
14.1 Each Party has the legal power, right, and authority to enter into this Agreement and the instruments referenced herein, to perform its obligations under and to consummate the transaction completed by this Agreement.
14.2 At Close of Escrow, all requisite action (corporate, trust, partnership, or otherwise) has been taken by each Party in connection with the entering into of this Agreement, the instruments referenced herein and the consummation of this transaction. No further consent of any partner, shareholder, creditor, investor, judicial or administrative body, governmental authority, or other party is required.
14.3 The individuals executing this Agreement and the instruments referenced herein on behalf of each Party and the partners, officers, or trustees of each Party, if any, have the legal power, right, and actual authority to bind each Party to the terms and conditions of those documents.
14.4 This Agreement and all other documents required to close this transaction are and will be valid legally binding obligations of, and enforceable against, each Party in accordance with their terms, subject only to applicable bankruptcy, insolvency, reorganization, moratorium laws, or similar laws or equitable principles affecting or limiting the rights of contracting Parties generally.
14.5 At Closing, Seller shall convey the Property to Buyer in “as-is” physical condition with clear and marketable title, free and clear of any and all liens, encumbrances, easements, restrictions, rights, and conditions of any kind whatsoever, except those which are approved by Buyer in accordance with Section 7 above.
15. Indemnification.
15.1 Indemnification by Seller. Seller agrees to indemnify, defend, and hold Buyer harmless for, from and against any and all claims, demands, liens, liabilities, costs, Item Number: 14.
11 expenses, including reasonable attorneys’ fees and costs, damages and losses, cause or causes of action and suit, or suits of any nature whatsoever, arising from any misrepresentation or breach of warranty or covenant by Seller in this Agreement.
15.2 Indemnification by Buyer. Buyer agrees to indemnify, defend, and hold Seller harmless for, from and against any and all claims, demands, liabilities, costs, expenses, including reasonable attorneys’ fees and costs, damages and losses, cause or causes of action and suit, or suits arising out of any misrepresentation or breach of warranty or covenant by Buyer in this Agreement.
16. Hazardous Substances.
16.1 Definitions. For the purposes of this Agreement, the following terms have the following meanings:
(a) “Environmental Law” means any law, statute, ordinance, or regulation pertaining to health, industrial hygiene or the environment including, without limitation CERCLA (Comprehensive Environmental Response, Compensation and Liability Act of 1980) and RCRA (Resources Conservation and Recovery Act of 1976); (b) “Hazardous Substance” means any substance, material, or waste which is or becomes designated, classified, or regulated as being “toxic” or “hazardous” or a “pollutant” or which is or becomes similarly designated, classified, or regulated, under any Environmental Law, including asbestos, petroleum, and petroleum products; and (c) “Environmental Audit” means an environmental audit, review, or testing of the Property performed by Buyer or, any third party or consultant engaged by Buyer to conduct such study.
16.2 Seller’s Representations and Warranties. Buyer acknowledges that with the exception of those representations and warranties expressly made by Seller in this Section 16, Buyer is acquiring the Property and every portion thereof “AS-IS, WHERE-IS, IN ITS CURRENT CONDITION, WITH ALL FAULTS” and in reliance upon its own studies, investigations and due diligence and that no person acting on behalf of Seller is authorized to make and Seller has not made and does not make any representations or warranties of any kind or character whatsoever with regard to the Property. Seller hereby represents and warrants as follows with regard to any reference in this Agreement, including this Section 16, that “Seller’s Actual Knowledge” shall mean the current, personal knowledge, without duty to inquiry or independent investigation, of personnel within the County of Riverside’s Department of Facilities Management – Real Estate Division and with no constructive or imputed knowledge. Buyer acknowledges, however, that the aforementioned individuals are not personally liable for the matters within Seller’s knowledge but are merely the individuals whose knowledge is attributable to Seller. As of the date of this Agreement, to Seller’s Actual Knowledge:
(a) No Hazardous Substances exist now or have been used or stored on or within any portion of the Property except those substances which are or have been used or stored on the Property by Seller in the normal course of use and operation of the Property and in compliance with all applicable Environmental Laws; Item Number: 14.
12 (b) Seller has not been notified and is not aware of any federal, state, or local enforcement, clean-up, removal, remedial, or other governmental or regulatory actions instituted or completed affecting the Property; (c) Seller has not been notified and is not aware of any claims made by any third party relating to any Hazardous Substances on or within the Property; and (d) Seller has not been notified and is not aware of any disposal of Hazardous Substances or accidental spills which may have contaminated the Property. Seller has not been notified and is not aware of any on-site bulk storage of vehicle fuels or waste oils.
16.3 Notices Regarding Hazardous Substances. During the term of this Agreement, Seller will promptly notify Buyer if it obtains knowledge that Seller or the Property may be subject to any threatened or pending investigation by any governmental agency under any law, regulation, or ordinance pertaining to any Hazardous Substance.
16.4 Environmental Audit. Buyer may order, at its sole cost and expense, an Environmental Audit, and it shall do so prior to the end of the Contingency Period and may quit this transaction if Buyer identifies problems in its sole and subjective judgment that would preclude continuing with this transaction:
(a) The Environmental Audit shall be conducted pursuant to standard quality control/quality assurance procedures. Buyer shall give Seller at least two (2) business days’ prior notice of any on-site testing of soil or subsurface conditions and shall submit a copy of Buyer’s work plan to Seller for Seller’s reasonable approval; (b) Any groundwater, soil, or other samples taken from the Property will be properly disposed of by Buyer at Buyer’s sole cost and in accordance with all applicable laws. Buyer shall promptly restore the Property to the condition in which it was found immediately prior to Buyer’s Environmental Audit; and
(c) Buyer hereby agrees to protect, indemnify, defend, and hold harmless Seller from and against any and all losses, liabilities, claims, liens, stop notices, actions, obligations, damages, and/or expenses caused by reason of Buyer’s (or its agent’s, employee’s or independent contractor’s) entry onto the Property prior to the Close of Escrow pursuant to the foregoing. Buyer shall keep the Property free of mechanic’s liens related to the activities of Buyer.
17 Miscellaneous.
17.1 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be effective only upon delivery and thereafter shall be deemed an original, and all of which shall be taken to be one and the same instrument, for the same effect as if all Parties hereto had signed the same signature page. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more additional signature pages.
17.2 Partial Invalidity. If any term or provision of this Agreement shall be deemed to be invalid or unenforceable to any extent, the remainder of this Agreement will not Item Number: 14.
13 be affected thereby, and each remaining term and provision of this Agreement will be valid and be enforced to the fullest extent permitted by law.
17.3 Waivers. No waiver of any breach of any covenant or provision contained herein will be deemed a waiver of any preceding or succeeding breach thereof or of any other covenant or other provision contained herein. No extension of time for performance or any obligation or act will be deemed an extension of the time for performance of any other obligation or act except those of the waiving Party which will be extended by a period of time equal to the period of the delay.
17.4 Successors and Assigns. Neither Party shall transfer or assign its rights or responsibilities under this Agreement without the express written consent of the other Party.
This Agreement is for the benefit of, and is binding on, the Parties and their successors and permitted assigns.
17.5 Entire Agreement. This Agreement, including all Exhibits attached hereto, constitutes the entire understanding between the Parties hereto and may not be modified except by an instrument in writing signed by the Party to be charged.
17.6 Time of Essence. Seller and Buyer hereby acknowledge and agree that time is of the essence with respect to each and every term, condition, obligation, and provision hereof.
17.7 Governing Law. The Parties hereto expressly agree that this Agreement will be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. Venue for any proceeding related to this Agreement shall be in the Superior Court of California located in the County of Riverside.
17.8 No Recordation. No memorandum or other document relating to this Agreement shall be recorded without the prior written consent of Seller and Buyer.
17.9 Survival. Sections 12, 15, 16, and 17 and any other provisions of this Agreement which by their terms require performance by either Party after the Close of Escrow shall survive the Close of Escrow.
17.10 Brokers. Buyer is not represented by a real estate broker and does not request a commission be paid by Seller. Seller is not represented by a real estate broker and does not request a commission to be paid by Buyer.
17.11 Exhibits. Each exhibit attached hereto is incorporated herein by this reference as if set forth in full in the body of this Agreement.
17.12 Not a Partnership. The provisions of this Agreement are not intended to create, nor will they be in any way interpreted to create a joint venture, a partnership, or any other similar relationship between the Parties.
[Signatures Provisions on the Following Page]
Item Number: 14.
15 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement of Purchase and Sale and Joint Escrow Instructions as of the date and year.
SELLER: BUYER:
COUNTY OF RIVERSIDE, a political City of Desert Hot Springs, a California subdivision of the State of California Municipal Corporation By: _________________________ By: _________________________ Kevin Jefferies, Chair Doria Wilms
Board of Supervisors Interim City Manager
Date: ________________________ Date: ________________________ ATTEST: ATTEST:
Kimberly Rector
Clerk of the Board
By: __________________________ By: __________________________ Deputy
APPROVED AS TO FORM:
Minh C. Tran APPROVED AS TO FORM:
County Counsel
By: __________________________ By: __________________________ Caroline Monroy
Deputy County Counsel
JM:kt/12052022/425FM/30.865
Item Number: 14.
EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
All that certain real property situated in the County of Riverside, State of California, described as follows:
That portion of the Southeast one-quarter of the Southeast one-quarter of Section 25, Township 2 South, Range 4 East, San Bernardino Base and Meridian in the City of Desert Hot Springs, County of Riverside, State of California, described as follows:
Beginning at the Southeast corner of said Section 25;
Thence North 00°14’00” West along the East line of said Southeast 25, a distance of 635.31 feet to the point of beginning;
Thence continuing North 00°14’00” West along said East line, a distance of 15.00 feet; Thence North 89°52’58” West, a distance of 208.00 feet; Thence South 00°07’02” East, a distance of 48.00 feet;
Thence South 89°52’58” East, a distance of 97.00 feet;
Thence North 00°14’00” West, a distance of 33.00 feet;
Thence South 89°52’58” East, a distance of 111.00 feet to the true point of beginning.
Excepting therefrom the Easterly 40 feet in West Drive.
Assessor’s Parcel No: 664-190-027
Item Number: 14.
EXHIBIT “B”
FORM OF GRANT DEED
Recorded at request of and return to:
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
FREE RECORDING
This instrument is for the benefit of
the County of Riverside and is
entitled to be recorded without fee.
(Govt. Code 6103)
(Space above this line reserved for Recorder’s use)
PROJECT: Desert Hot Springs Library
APN’s: 664-190-027
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, COUNTY OF RIVERSIDE, a political subdivision of the State of California, GRANTS to the CITY OF DESERT HOT SPRINGS, a California municipal corporation, the real property in the County of Riverside, State of California, described as:
See Exhibit “A” attached hereto
And made part hereof
Dated: _____________________ GRANTOR:
COUNTY OF RIVERSIDE, a political
subdivision of the State of California
By:_________________________
Kevin Jefferies, Chair
Board of Supervisors
ATTEST:
Kimberly Rector
Clerk of the Board
By: __________________________
Deputy
Item Number: 14.
EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
All that certain real property situated in the County of Riverside, State of California, described as follows:
That portion of the Southeast one-quarter of the Southeast one-quarter of Section 25, Township 2 South, Range 4 East, San Bernardino Base and Meridian in the City of Desert Hot Springs, County of Riverside, State of California, described as follows:
Beginning at the Southeast corner of said Section 25;
Thence North 00°14’00” West along the East line of said Southeast 25, a distance of 635.31 feet to the point of beginning;
Thence continuing North 00°14’00” West along said East line, a distance of 15.00 feet; Thence North 89°52’58” West, a distance of 208.00 feet; Thence South 00°07’02” East, a distance of 48.00 feet;
Thence South 89°52’58” East, a distance of 97.00 feet;
Thence North 00°14’00” West, a distance of 33.00 feet;
Thence South 89°52’58” East, a distance of 111.00 feet to the true point of beginning.
Excepting therefrom the Easterly 40 feet in West Drive.
Assessor’s Parcel No: 664-190-027
Item Number: 14.
CERTIFICATE OF ACCEPTANCE
Item Number: 14.
Exhibit “C”
PRELIMINARY TITLE REPORT
Item Number: 14.
PRELIMINARY TITLE REPORT
Item Number: 14.
_ Michael J. Francis, MAI
1 APPRAISAL REPORT
An approximate 3,520 square foot vacant former public library building located at 11691 West Drive in Desert Hot Springs, CA (APN: 664-190-027) PREPARED FOR:
Mr. Craig Olsen
Supervising Real Property Agent
County Of Riverside – Facilities Management
Real Estate Division
3450 14th Street, Suite 200
Riverside, CA 92507
PREPARED BY:
Michael J. Francis, MAI
P.O. Box 11808
Newport Beach, CA 92658
VALUATION DATE
November 3, 2022
DATE PREPARED
November 3, 2022
Item Number: 14.
_ Michael J. Francis, MAI
2 MICHAEL J. FRANCIS, MAI
Real Estate Appraiser and Consultant
November 3, 2022
Mr. Craig Olsen
Supervising Real Property Agent
County Of Riverside – Facilities Management
Real Estate Division
3450 14th Street, Suite 200
Riverside, CA 92507
RE: An approximate 3,520 square foot vacant former public library building located at 11691 West Drive in Desert Hot Springs, CA (APN: 664-190-027) Dear Mr. Olsen,
Pursuant to your request and authorization, I have conducted the investigations and analyses necessary to form an opinion of the Market Value of the above referenced subject property. This Appraisal Report that is intended to comply with the reporting requirements as set forth under the Uniform Standards of Professional Appraisal Practice (USPAP). This appraisal report contains a discussion of the data, reasoning, and analyses that were used to develop the opinion of value. It also includes descriptions of the subject property, the property's locale, the market for the property type, and the appraiser's opinion of highest and best use. Any data, reasoning, and analyses not discussed in this report are retained in the appraiser's work file.
The subject property lies adjacent to other buildings (which, like the subject, are currently all government owned). The subject property reportedly has a shared parking agreement with these other buildings as well as bilateral cross ingress – egress easements over these properties. Overall, the subject’s current parking is considered to be generally average and is assumed to legally meet or exceed required the subject’s on-site parking requirements.
Based upon the investigations conducted, analyses made, and on my experience as a real estate analyst and appraiser, I have formed the opinion that as of November 3, 2022, and subject to the Assumptions and Limiting Conditions set forth in the report which follows, the current “as is” market value of the Fee Simple Estate of the subject P.O. Box 11808, Newport Beach, CA 92658
Tel: (949) 306-3388 * Fax: (949) 528-1300 * Email: [email protected] Item Number: 14.
_ Michael J. Francis, MAI
3 property is as follows:
$350,000
The narrative report which follows sets forth the data and analysis upon which my opinion of value is, in part, predicated.
Respectfully submitted,
Michael J. Francis, MAI
CA State Cert. No.: AG002243
Item Number: 14.
_ Michael J. Francis, MAI
4 TABLE OF CONTENTS
Cover Page.................................................................................................................1 Transmittal Letter........................................................................................................2 Certification.................................................................................................................5 Assumptions and Limiting Conditions.........................................................................6 Introduction ...............................................................................................................11 Area Description .......................................................................................................16 Site Description.........................................................................................................20 Improvement Description..........................................................................................23 Highest and Best Use ..............................................................................................26 Valuation Methodology .............................................................................................31 Sales Comparison Approach ....................................................................................32 Income Approach......................................................................................................37 Reconciliation and Final Value..................................................................................43
ADDENDA
- Aerial Photo of the Subject Property
- Location and Neighborhood Map
- Subject Photos
- Subject’s MLS Property Detail Reports
- Subject Building Sketch
- Map and Photos of Comparable Building Sales
- Map and Photos of Comparable Rentals
- Property Sales Summary Containing OAR Information
- Preliminary Title Report
- Demographic Information
- Qualifications of the Appraiser
Item Number: 14.
_ Michael J. Francis, MAI
5 CERTIFICATION
I certify that, to the best of my knowledge and belief:
- The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional, analyses, opinions, and conclusions.
- I have no present or prospective interest in the property that is the subject of this report and I have no personal interest with respect to the parties involved. - I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
- My engagement in this assignment was not contingent upon developing or reporting predetermined results.
- My compensation for completing this assignment is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice.
- The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
- I have made a personal inspection of the property that is the subject of this report. - I have performed appraisal services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within a three year period immediately preceding acceptance of this assignment.
- No one provided significant real property appraisal assistance to the person signing this report.
- As of the date of this report, I have completed the requirements of the continuing education program of the Appraisal Institute.
Respectfully submitted,
Michael J. Francis, MAI
CA State Cert. No.: AG002243
Item Number: 14.
_ Michael J. Francis, MAI
6 Assumptions and Limiting Conditions
The analyses and opinions set forth in this appraisal are subject to the following assumptions and limiting conditions:
General Assumptions and Limiting Conditions
This Appraisal Report is intended to comply with the reporting requirements as set forth under the Uniform Standards of Professional Appraisal Practice (USPAP). It contains a discussion of the data, reasoning, and analyses that were used to develop the opinion of value. It also includes descriptions of the subject property, the property's locale, the market for the property type, and the appraiser's opinion of highest and best use. Any data, reasoning, and analyses not discussed in this Appraisal Report are retained in the appraiser's work file.
I reserve the right to change the value conclusion set forth within should additional information be made available or uncovered by your appraiser that was not previously available for my review and analysis as of the effective date of this appraisal.
Information contained in this appraisal (including, but not limited to, the subject’s building and parcel size) has been gathered from sources which are believed to be reliable, and, where feasible, has been verified. No responsibility is assumed for the accuracy of information supplied by others.
I assume no responsibility for economic or physical factors which may affect the opinions herein stated which may occur at some date after the date of value.
The property is appraised assuming it to be under responsible ownership and competent management, and available for its highest and best use.
Maps, plats and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the appraisal. They should not be considered as surveys nor Item Number: 14.
_ Michael J. Francis, MAI
7 relied upon for any other purpose, nor should they be removed from, reproduced, or used apart from this report.
Your appraiser has inspected the land and improvements as far as possible by observation; however, it was impossible to personally inspect below ground conditions; therefore, no representation is made as to these matters unless specifically indicated within this appraisal.
Your appraiser shall not be required, by reason of this appraisal, to give testimony or to be in attendance in court or any governmental or other hearing with reference to the property without prior arrangements having first been made relative to such additional employment.
To the best of my ability, I have attempted to verify the factual accuracy of the rental comparable data and building sale comparable data utilized in this report. Should this comparable data be later found to be incorrect, I reserve the right to adjust my value estimate for the subject property as stated herein accordingly.
I am a member of the Appraisal Institute. The Bylaws and Regulations of the Institute require each member to control the use and distribution of each appraisal signed by such member. Therefore, except as hereinafter provided, the party for whom this appraisal was prepared may distribute copies of this appraisal, in its entirety, to such third parties as may be selected by the party for whom this appraisal was prepared; however, selected portions of this appraisal shall not be given to third parties without the prior written consent of the signatories of this appraisal. Further, neither all nor part of this appraisal shall be disseminated to the general public by the use of advertising media, public relations media, news media, sales media or other media for public communication without the prior written consent of the signatories of this appraisal.
Item Number: 14.
_ Michael J. Francis, MAI
8 Assumptions and Limiting Conditions Specific to the Subject Property A global outbreak (i.e. – a pandemic) of a new virus known as the Coronavirus (or COVID19) started manifesting itself in the first quarter of 2020 and has caused an economic slowdown worldwide, including the United States and the subject’s greater area. The economic recovery from this pandemic began in the second half of 2020 and has continued in 2021 and 2022. With the arrival of a vaccine for this virus in late 2020, the economy is slowly recovering (although to exactly what degree is still undetermined). However, there is a chance that COVID19 and its variant virus forms (i.e. – the Delta variant, the Omicron BA.5 variant and so forth) could cause a more protracted economic rebound which would potentially negatively affect some real estate markets, although to what degree remains difficult to predict. The impact of the Coronavirus on the future impact on the subject property is unknown although I have considered it in my analysis. Although it appears that real estate values of most property types (including the subject property) have increased significantly since the outbreak of the Coronavirus. For purposes of this report, I have made this an extraordinary assumption that this economic slowdown due to the Coronavirus and its related virus variants will be relatively short term in nature and that the economy will continue to rebound (although to exactly what degree is still undetermined) in 2022 and beyond and should economic conditions and/or forecasts significantly change (which would affect the market value of the subject property) then I reserve the right to adjust my opinion of value accordingly.
The subject property lies adjacent to other buildings (which, like the subject, are currently all government owned). The subject property reportedly has a shared parking agreement with these other buildings as well as bilateral cross ingress – egress easements over these properties and this is assumed to be the case for purposes of this report. Overall, the subject’s current parking is considered to be generally average and is assumed to legally meet or exceed required the subject’s on-site parking requirements. Should any of these assumptions contained in this paragraph be found later not to be the case, I reserve the right to adjust my value estimate for the subject property as stated herein accordingly.
Item Number: 14.
_ Michael J. Francis, MAI
9 The subject building was reportedly built in 1973. For purposes of this report, I have assumed that the subject building was built in 1973 and if this should later be found not to be the case, I reserve the right to adjust my opinion of value for the subject property as estimated herein accordingly.
The subject building reportedly does not suffer from any major forms of deferred maintenance and I found this to be the case from my visual building inspection. Should this later found not to be the case, I reserve the right to adjust my value estimate for the subject property as stated herein accordingly.
No engineering survey of the boundaries of the property was undertaken by your appraiser. All areas and dimensions furnished and reported herein are presumed to be correct. Should a future engineering study be conducted which results in measurements or figures different from those reported herein, and if such difference affects my value estimate as presented herein, I reserve the right to adjust my opinion of value for the subject property as estimated herein accordingly.
I have been provided with a preliminary title report for the subject property which is given in the addenda. No responsibility is assumed for matters which are legal in nature. No opinion of title is rendered, and the property is appraised as though free of all encumbrances and the title is assumed to be marketable. I assume that there are no items in the subject’s title report which would negatively affect my value estimate presented within this report. It is assumed that the only easements are normal utility and access easements which do not adversely affect the value of the subject property.
In my valuation analysis of the subject property, I have assumed that the subject has clear and marketable title. Property taxes on the subject, if applicable, are assumed to be current.
I have not been provided with an environmental report for the subject property. Your appraiser did not detect the existence of any hazardous and/or toxic materials on the subject site which posed a hazardous threat to the subject property. Your appraiser has no knowledge of the existence of such harmful materials on or in the property. Your Item Number: 14.
_ Michael J. Francis, MAI
10 appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there are no such hazardous and/or toxic materials on or in the property that would cause a loss in value. No responsibility is assumed for any such condition, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
I have not received a soils report for the subject property. I explicitly assume that the subject’s soils do not contain any unusual conditions and that there are no adverse soil conditions at the subject site. I also assume that the subject's soils conditions will not negatively affect the value of the subject property.
The subject property is not located within 1,000 yards of the ocean or in a designated wetland area. It is, therefore, assumed that the subject either satisfies, or is not affected by, the State or Federal wetlands acts/regulations. I furthermore assume that the subject property is not located in any special and/or endangered biological species habitat.
Item Number: 14.
_ Michael J. Francis, MAI
11 INTRODUCTION
Purpose of the Appraisal Report / Identification of the Property The purpose of this appraisal report to estimate the current “as is” market value of the Fee Simple Estate of the subject property. The subject property represents an approximate 3,520 square foot vacant former public library building located at 11691 West Drive in Desert Hot Springs, CA (APN: 664-190-027).
Function of the Appraisal Report
The function or use of this appraisal report is for the use of my client, the County of Riverside, with respect to possible property sale considerations involving the subject property.
Scope of the Appraisal
The scope of this appraisal includes the process of collecting primary and secondary data (i.e., CoStar Comps, TRW, etc. for sale data) relative to the subject property along with the supporting market data and various data and information concerning the subject property. This data has been analyzed and confirmed, whenever possible, leading to the value conclusions set forth herein.
This Appraisal Report is intended to comply with the reporting requirements as set forth under the Uniform Standards of Professional Appraisal Practice (USPAP). It contains a discussion of the data, reasoning, and analyses that were used to develop the opinion of value. It also includes descriptions of the subject property, the property's locale, the market for the property type, and the appraiser's opinion of highest and best use. Any data, reasoning, and analyses not discussed in this report are retained in the appraiser's work file.
The Sales Comparison Approach and the Income Approach were determined to be the most appropriate approaches to determine value and have been utilized to estimate the market value of the property. Please refer to the Sales Comparison Approach and the Item Number: 14.
_ Michael J. Francis, MAI
12 Income Approach, given later in this report, for further explanation of what these approaches entailed.
Date of the Appraisal / Date of Property Inspection
The opinions expressed in this report are stated as of November 3, 2022, which coincides with my date of exterior property inspection. My last interior inspection of the subject property occurred on my previous appraisal of the subject property which was on November 3, 2022.
Date of Appraisal Preparation
The appraisal was prepared on November 3, 2022.
Interest Appraised
Fee Simple Estate
I should be noted that the subject building is vacant and is reportedly currently not leased. The subject ownership, however, reported receives a very minor amount of rent for a billboard on the side of the subject building. At the request of my client, I have valued the subject property with consideration to the billboard or the rent associated with it. I have, therefore, valued the Fee Simple Estate of the subject property under the hypothetical condition that no value is placed on the billboard nor any income associated with it.
Market Value Defined
The term Market Value1 is defined as follows:
Market Value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the 1Title XI of the Federal Financial Institutions Reform, Recovery & Enforcement Act of 1989(FIRREA), Section 34.42(f)
Item Number: 14.
_ Michael J. Francis, MAI
13 consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised, and acting in what they consider their own best interests;
3. a reasonable time is allowed for exposure in the open market;
4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
Highest and Best Use Defined
Highest and Best Use2 is an appraisal concept which has been defined as follows:
That reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal.
Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in highest land value.
Fee Simple Estate Defined
The term Fee Simple Estate3 is defined as follows:
Absolute ownership unencumbered by any other interest or estate; subject only to the limitations of eminent domain, escheat, police power, and taxation.
Leased Fee Estate Defined
The term Leased Fee Estate4 is defined as follows:
2Real Estate Appraisal Terminology, Byrl N. Boyce, Ph.D., Ed., Ballinger Publishing Company, Cambridge, Massachusetts, 1981.
3Real Estate Appraisal Terminology, Byrl N. Boyce, Ph.D., Ed., Ballinger Publishing Company, Cambridge, Massachusetts, 1981.
Item Number: 14.
_ Michael J. Francis, MAI
14 A property held under tenure of lease. The right of use and occupancy of real property by virtue of a lease agreement. The right of a lessee to use and enjoy real estate for a stated term and upon certain conditions, such as the payment of rent.
Exposure Time Defined
The term Exposure Time5 is defined as follows:
The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market.
Marketing Time Defined
The term Marketing Time6 is defined as follows:
1. The time it takes an interest in real property to sell on the market subsequent to the date of the appraisal;
2. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers and to allow the appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price supportable by concurrent market conditions. Marketing time differs from exposure time, which is always presumed to precede the effective date of the appraisal.
Property Owner / Legal Description
The subject property ownership and legal description information is given in the subject’s property profile report which is given in the addenda. 4Per Real Estate Appraisal Terminology, Appraisal Institute 5 USPAP, 1998 Edition, Statement on Appraisal Standards No. 6. 6 The Dictionary of Real Estate Appraisal, 3rd Edition, 1993.
Item Number: 14.
_ Michael J. Francis, MAI
15 Property History
To my knowledge, there have been no sales or transfers of the subject property within the past three years.
Wetlands Statement
The subject property is not located within 1,000 yards of the ocean or in a designated wetland area. It is, therefore, assumed that the subject either satisfies, or is not affected by, the state or federal wetlands acts/regulations.
Item Number: 14.
_ Michael J. Francis, MAI
16 AREA DESCRIPTION
The subject property is located in the City of Desert Hot Springs, Riverside County, California. The subject property is situated in a part of the greater Los Angeles area which is known as the "Inland Empire" which is composed of Riverside and San Bernardino Counties. Riverside and San Bernardino Counties (“Inland Empire”) represent contiguous counties that are located in the southeastern portion of the state.
The western portions of these counties combine to form the Riverside-San BernardinoOntario Metropolitan Statistical Area (MSA), the sixth largest MSA in the state of California.
Riverside County encompasses an area of approximately 7,300 square miles. The western portion of the county is separated from the rest of the area by a series of mountain ranges, including the San Jacinto and Santa Ana ranges. With more than 20,000 square miles in area, San Bernardino County is geographically the largest county in the nation. More than 90% of the county is desert, consisting of low mountains, valleys, and dry lakebeds.
The Inland Empire has an international airport, transcontinental railroads, major interstate highways, numerous trucking companies, and facilities within operating proximity to the two largest West Coast ports: Los Angeles and Long Beach.
Additionally, the Inland Empire’s strategic location allows businesses based here to rapidly serve markets throughout California, in the western states, and in Pacific Rim countries.
Riverside and San Bernardino Counties extend about 200 miles easterly to the Colorado River on the Arizona Border, to within 50 miles of the Pacific Ocean. The majority of the population resides within the metropolitan area surrounding the cities of Riverside and San Bernardino, both situated near the westerly end of their respective counties. The varied county topography includes level land areas, mountains, valleys, dry lake beds, the Colorado River Valley, the San Gabriel and San Bernardino Item Number: 14.
_ Michael J. Francis, MAI
17 Mountains, several lakes and a large valley which forms a part of Southern California’s citrus belt.
All modes of transportation are available to Inland Empire. A well-integrated freeway system serves the general area. Freeways which link the Inland Empire to business centers of Southern California include Interstate Highways 10, 15, and 215, and California State Highways 60 and 91. The subject property has adequate local and regional access.
The Inland Empire has excellent rail service, with the largest switching yard west of Chicago located in the cities of Colton and Rialto. The area is serviced by the Santa Fe, Southern Pacific, and Union Pacific Railroads. Commuter rail service has been instituted between San Bernardino and downtown Los Angeles as well as Riverside and downtown Los Angeles. This service is provided by the Metrolink commuter train system which connects to the Los Angeles subway system at Union Station northeast of the Los Angeles downtown area. Overall, the region’s natural and man-made physical environment provides adequate resources for commercial and residential development.
Population
The San Bernardino-Riverside Counties area is one of the fastest growing regions in the nation. This is attributable to a desirable physical environment, low housing costs, and a diverse mixture of industry experiencing expansion. Since 1950, population in the area has rapidly. According to the US Census Bureau, in 2000 the population of Riverside County was 1,545,387 and in 2010 the population had grown to 2,189,641, reflecting a 41.7% population increase. The July 1, 2019 population estimate for Riverside County is 2,470,546 reflecting an approximate 13% increase over the 2010 population figure. These positive population growth trends are expected to continue as less expensive commercial, industrial and residential land attracts residents and businesses from the more expensive and intensely developed Los Angeles and Orange County regions. Migration to the region by industrial and service businesses, families searching for more affordable housing and the natural growth of a relatively young Item Number: 14.
_ Michael J. Francis, MAI
18 population have all added to the positive changes that have taken place. Further demographic and economic information may be found in the addenda of this report.
Economy
Similar to the national economy, the economy of Riverside County continues to recover and improve from the previous prolonged national economic recession. Riverside County continues to offer a diverse labor pool, abundance of affordable land available for development, and the increasing population base. Further data relating to the economy of the region may be found in the addenda. Overall, the long term economic trends are positive, with forecasted increasing retail sales and real estate values as the national economic conditions continue to improve. These long term trends should ultimately positively impact the region.
Regional Area Conclusion
Riverside County is continuing to experience an expansion of its population and economic base, albeit at a somewhat slower pace in recent years, precipitated by affordable housing and direct access to major employment centers via the area's network of freeways. The growth of the local housing market is due to the area's relatively abundant supply of affordable land and direct access to employment. There is a growing trend of younger families who work in the Orange - Los Angeles Counties metropolitan area and moving to the San Bernardino-Riverside area to find affordable housing. New commercial and industrial businesses are also attracted to the area by an available labor pool, relatively close proximity to major metropolitan areas and lower land costs. In summary, this combination of social and economic forces will continue to generate demand for property such as the subject property.
Item Number: 14.
_ Michael J. Francis, MAI
19 Immediate Market Area Analysis & Surrounding Land Uses The subject property is located in the City of Desert Hot Springs, California. The subject property is situated on West Drive, approximately ¼ block north of Pierson Boulevard, the main east-west street in the area. To the east and south of the subject lies older single family homes. To the immediate west and north lies public / government uses.
The downtown area of the City of Desert Hot Springs is located approximately ½ mile to the east of the subject. The subject property is located approximately 4.5 miles to the east of State Route 62 and approximately 5 miles to the north Interstate 10 which provides connective access to the greater surrounding region.
According to brokers interviewed and commercial building sales data in my files, commercial building prices over the past three years have risen in the range of say 3% to 5% per year (say approximately 4% per year on average). Consequently, I have based my time adjustments for market conditions for building sale comparables analyzed within this report, accordingly. According to brokers interviewed, effective rental rates in the subject’s office market have increased on average by approximately 2% to 4% per year (say approximately 3% per year) over the past three years. I have, therefore, applied my time adjustments for market conditions to the rental comparables I have analyzed in this report accordingly.
The subject is located within close proximity to a wide variety of shopping facilities, restaurants, entertainment, public services and so forth. Overall, the subject property and its surrounding environment appear to contain all the elements to ensure continued growth and economic viability.
Item Number: 14.
_ Michael J. Francis, MAI
20 SITE DESCRIPTION
Physical Location:
The subject property is located at 11691 West Drive in Desert Hot Springs, CA. A plat map for the subject is given in the addenda.
Assessor's Parcel
Number: 664-190-027
Parcel Shape: Irregular
Parcel Size: Approximately 5,663sf, or approximately .13 acres Topography: Flat
Drainage: Adequate, no ponding visible
Zoning: The subject property is reportedly zoned “C-1”. For purposes of this report, I assume that the subject’s building improvements represent a legal, conforming use of the site.
Flood Zone: Per the FEMA website, the subject is located in flood zone “X” per FEMA flood map # 06065C-0885G, dated 8-28-08.
The subject’s flood zone reportedly represents an areas of minimal flood hazard. I encourage my client to investigate the exact amount, if any, flood zone insurance may be
required for the subject property.
Utilities: All utilities are presently available to the site and are considered adequate to service the needs of the property.
Item Number: 14.