Garden Grove City Council
Ordinance No.
Section 7. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect on the date that is thirty (30) days after adoption.
The foregoing Ordinance was passed by the City Council of the City of Garden Grove on the XXXX day of (TBD).
Agenda Item - 5.a.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: William E. Murray
Dept.: City Manager Dept.: Public Works
Subject: Award a contract to R2Build
dba R2B Engineering for
Project No. CP12682668 -
Pressure Monitoring
Improvements Project.
(Cost: $419,180) ( Action
Item)
Date: 5/10/2022
OBJECTIVE
To recommend that City Council award a contract to R2Build dba R2B Engineering for construction of Project No. CP1268268 – Pressure Monitoring Improvements Project.
BACKGROUND
The 2020 Supervisory Control and Data Acquisition (SCADA) Master Plan identified a list of 22 projects to be implemented over a five-year period with an overall estimated budget of $7.8 million, which includes design and construction.
The Global Pressure Monitoring Improvements Project is one of the projects identified. The City has five locations throughout the distribution system where pressure is recorded using a pressure chart recorder. Currently, these pressure monitoring sites are not on the SCADA system. This project will include installation of a new pressure transmitter and a new control panel, including communications with the new Global SCADA system, at each of the sites.
DISCUSSION
Two bids were received and opened by the City Clerk’s Office on March 31, 2022, at 11:00 a.m. (see Bid Summary Sheet). The lowest responsive bidder is R2Build dba R2B Engineering, with a total bid of $419,180. The licenses and references of the contractor have been reviewed and verified by staff, and all other documentation is in order. The anticipated contract schedule is as follows:
Award Contract May 10, 2022
Begin Construction June 13, 2022
Complete Construction October 12, 2022
FINANCIAL IMPACT
There is no impact to the General Fund. This project is included in the 2021-2022 Capital Improvement Budget and will be financed with Water Funds in the amount of $419,180.
RECOMMENDATION
It is recommended that the City Council:
Award a contract to R2Build dba R2B Engineering for $419,180 for the construction of Project No. CP1268268 – Pressure Monitoring Improvements Project; and
Authorize the City Manager to execute the agreements on behalf of the City, and make minor modifications as appropriate.
By: Rebecca Li, P.E., Senior Civil Engineer
ATTACHMENTS:
Description Upload Date Type File Name
Attachment No 1 - Bid
Summary Sheet 4/25/2022 Backup Material AttachNo1-_BidSummarySheet.pdf Contract 4/25/2022 Agreement R2Build_DBA_R2B_Engineering_Contract.pdf
•
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ATTACHMENT NO. 1
CITY OF GARDEN GROVE
PUBLIC WORKS DEPARTMENT
WATER SERVICES DIVISION
BID SUMMARY SHEET
PROJECT: CP 1268268 - Pressure Monitoring
Improvements Project
BID OPENING
DATE: March 31, 2022
TIME: 11:00 AM
Engineer’s
Facility Name Estimate Contract Amount
Various locations throughout the City $452,054.00 $419,180.00
Bidder’s Name
Total Bid
%Under
/Over
Engineers
Estimate
1. 2 R2Build dba R2B Engineering $419,180.00 -7.3%
2. Cora Constructors, Inc. $588,000.00 30.1%
SECTION 5 - AGREEMENT
CONSTRUCTION AGREEMENT
THIS AGREEMENT is made this 10 day of May, 20 22, by the CITY OF GARDEN GROVE (“CITY”), and _R2BUILD DBA R2B ENGINEERING , hereinafter referred to as (“CONTRACTOR”)
RECITALS:
The following recitals are a substantive part of this Agreement:
1. This Agreement is entered into pursuant to City of Garden Grove Council Authorization dated May 10, 2022.
2. CITY desires to utilize the services of CONTRACTOR to furnish material, equipment, and labor for the FP2 – Pressure Monitoring Improvements - Project No. CP1268268 -- Drawing No. W-622.
3. CONTRACTOR is qualified by virtue of experience, training, education, and expertise to accomplish services.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
5.1 General Conditions. CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR'S investigation of all such matters and is in no way relying upon any opinions or representations of CITY. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents including the Notice Inviting Bids, Special Instructions to Bidders, if any, Plans, Specifications and CONTRACTOR's Proposal, are incorporated in this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its SUBCONTRACTORs, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the work covered by this Contract.
"Project" as used herein defines the entire scope of the work covered by all the Contract Documents. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to CITY’S Engineer, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the Engineer shall be final.
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
5.2 Materials and Labor. CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by the CITY, to construct and complete the project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, CITY may settle such claims by making demand upon the surety to this Agreement. In the event of the failure or refusal of the surety to satisfy said claims, CITY may settle them directly and deduct the amount of payments from the Contract price and any amounts due to CONTRACTOR. In the event CITY receives a stop notice from any laborer or material supplier alleging non-payment by CONTRACTOR, CITY shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees.
5.3 Project . The PROJECT is described as: FP2 – Pressure Monitoring Improvements - Project No. CP1268268 -- Drawing No. W-622
5.4 Plans and Specifications. The work to be done is shown in a set of detailed Plans and Specifications entitled: FP2 – Pressure Monitoring Improvements - Project No. CP1268268 -- Drawing No. W-622
Said Plans and Specifications and any revision, amendments or addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. The work to be done must also be in accordance with the General Provisions, Standard Specifications and Standard Plans of the CITY, which are also incorporated herein and referred to by, reference.
5.5 Time of Commencement and Completion. CONTRACTOR shall have twenty-one (21) calendar days from the award of the Contract to execute the Contract and supply CITY with all of the documents and information required by the Instruction to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed Contract and all of the other properly drafted and executed documents and information, it may issue a Notice to Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to execute the Contract or refuses or fails to provide the required documents and information within the twenty-one (21) calendar days, the CITY may then rescind the award of the Contract and then award the Contract to the next lowest responsive and responsible bidder.
Upon receipt of the Notice to Proceed, CONTRACTOR agrees to submit shop drawings and traffic control plans within fourteen (14) calendar days. Further, upon receipt of the Notice to Proceed the CONTRACTOR shall diligently prosecute the work to completion within ninety (90) total working days excluding delays caused or authorized by the CITY as set forth in Sections 5.7, 5.8 and 5.9 hereof.
5.6 Time is of the Essence. Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR'S work in conformance with an approved construction progress schedule.
CONTRACTOR shall coordinate the work covered by this Contract with that of all other CONTRACTORs, SUBCONTRACTORs and of the CITY, in a manner that will facilitate the efficient completion of the entire work in accordance with Section 5.5 herein. CITY shall have complete control of the premises on which the work is to be performed and shall have the right to decide the time or order in which the various portions of the work shall be installed or the priority of the work of other SUBCONTRACTORS, and, in general, all matters representing the timely and orderly conduct of the work of CONTRACTOR on the premises.
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SECTION 5 - AGREEMENT (Continued)
5.7 Excusable Delays. CONTRACTOR shall be excused for any delay in the prosecution or completion of the Project caused by acts of God; inclement weather; damages caused by fire or other casualty for which CONTRACTOR is not responsible; any act of negligence or default of CITY; failure of CITY to make timely payments to CONTRACTOR; late delivery of materials required by this CONTRACT to be furnished by CITY; combined action of the workers in no way caused by or resulting from default or collusion on the part of CONTRACTOR; a lockout by CITY; or any other delays unforeseen by CONTRACTOR and beyond CONTRACTOR's reasonable control.
CITY shall extend the time fixed in Section 5.5 herein for completion of the Project by the number of days CONTRACTOR has thus been delayed, provided that CONTRACTOR presents a written request to CITY for such time extension within fifteen (15) days of the commencement of such delay and CITY finds that the delay is justified. CITY 'S decision will be conclusive on the parties to this Contract. Failure to file such request within the time allowed shall be deemed a waiver of the claim by CONTRACTOR.
No claims by CONTRACTOR for additional compensation or damages for delays will be allowed unless CONTRACTOR satisfies CITY that such delays were unavoidable and not the result of any action or inaction of CONTRACTOR and that CONTRACTOR took all available measures to mitigate such damages. Extensions of time and extra compensation as a result of incurring undisclosed utilities would be determined in accordance with SPECIAL PROVISIONS and Section 3-3 of the Standard Specifications for Public Works Construction 2009 Edition (GREEN BOOK). The CITY’S decision will be conclusive on all parties to this Contract.
5.8 Extra Work. The Contract price includes compensation for all work performed by CONTRACTOR, unless CONTRACTOR obtains a written change order signed by a designated representative of CITY specifying the exact nature of the extra work and the amount of extra compensation to be paid all as more particularly set forth in Section 5.9 hereof.
CITY shall extend the time fixed in Section 5.5 for completion of the Project by the number of days reasonably required for CONTRACTOR to perform the extra work, as determined by CITY’S Engineer. The decision of the Engineer shall be final.
5.9 Changes in Project .
5.9.1 CITY may at any time, without notice to any surety, by written order designated or indicated to be a change order, make any change in the work within the general scope of the Contract, including but not limited to changes:
a. In the Specifications (including drawings and designs); b. In the time, method or manner of performance of the work; c. In the CITY -furnished facilities, equipment, materials, services or site; or d. Directing acceleration in the performance of the work.
If CONTRACTOR believes that the written order issued as part of this Section 5.9.1 has caused an increase in costs or time, the CONTRACTOR shall submit a written request for equitable adjustment to the CITY that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request. Said notice shall be submitted via certified mail within twenty (20) days of the CONTRACTOR’S receipt of the written order. CONTRACTOR’S failure to submit the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of any potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and shal l DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
provide a written response within thirty (30) days of receipt of the request either approving or denying the request.
5.9.2 A change may also be any other conflict, difficulty or issue which the CONTRACTOR believes caused any change to the CONTRACTOR’S c osts or project schedule, provided CONTRACTOR gives the CITY written notice and a request for equitable adjustment that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request. The notice shall also state the date the CONTRACTOR became aware of the issue, circumstances and source of the issue and that CONTRACTOR regards the issue as a change order. Said written notice shall be delivered to the CITY via certified mail within twenty (20) days o f CONTRACTOR’S first notice of the issue.
CONTRACTOR’S failure to submit the notice, which includes the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of ant potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.
5.9.3 Except as provided in this Section 5.9, no order, statement or conduct of the CITY or its representatives shall be treated as a change under this Section 5.9 or entitle CONTRACTOR to an equitable adjustment.
5.9.4 Except for claims based on defective specifications, no claim for any change under paragraph 5.9.1 or 5.9.2 above shall be allowed for any work performed more than 20 days before the CONTRACTOR gives written notice as required in paragraphs
5.9.1 and 5.9.2. In the case of defective specifications for which the CITY is responsible, the equitable adjustment shall include any increased direct cost CONTRACTOR reasonably incurred in attempting to comply with those defective specifications.
5.9.5 If CONTRACTOR intends to assert a claim for an equitable adjustment under this Section 5.9, it must, within thirty (30) days after receipt of a denial of a request for equitable adjustment under paragraphs 5.9.1 and 5.9.2, submit a written statement to the CITY setting forth the general nature and monetary extent of such claim. The CITY may extend the 30-day period. CONTRACTOR’S failure to submit the notice of a claim, within the required thirty (30) days shall constitute a waiver of the claim by the CONTRACTOR.
5.9.6 No claim by CONTRACTOR for an equitable adjustment shall be allowed if made after final payment under this Agreement.
5.9.7 CONTRACTOR hereby agrees to make any and all changes, furnish the materials and perform the work that CITY may require without nullifying this Contract. CONTRACTOR shall adhere strictly to the Plans and Specifications unless a change there from is authorized in writing by the CITY. Under no condition shall CONTRACTOR make any changes to the Project, either in additions or deductions, without the written order of the CITY and the CITY shall not pay for any extra charges made by CONTRACTOR that have not been agreed upon in advance in writing by the CITY. CONTRACTOR shall submit immediately to the CITY written copies of its firm's cost or credit proposal for c
hange in the work. Disputed work shall be performed as ordered in writing by the CITY and the proper cost or credit breakdowns therefore shall be submitted without delay by CONTRACTOR to CITY.
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
5.10 Liquidated Damages for Delay. The parties agree that if the total work called for under this Contract, in all parts and requirements, is not completed within the time specified in Section 5.5 herein, plus the allowance made for delays or extensions authorized under Sections 5.7, 5.8 and 5.9 herein, the CITY will sustain damage which would be extremely difficult and impractical to ascertain. The parties therefore agree that CONTRACTOR will pay to CITY the sum of One Thousand Five Hundred dollars ($1,500.00) per day for each and every calendar day during which completion of the Project is so delayed.
CONTRACTOR agrees to pay such liquidated damages and further agrees that CITY may offset the amount of liquidated damages from any monies due or that may become due CONTRACTOR under the Contract.
5.11 Contract Price and Method of Payment. CITY agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any subsequent additions or deductions as provided in approved change orders, the sum of Four Hundred Nineteen Thousand one Hundred Eighty Dollars and 00/100 ($419,180.00) as itemized in the bid proposal.
Progress payments shall be made to the CONTRACTOR on a monthly basis for each successive month as the work progresses. The CONTRACTOR shall be paid such sum as will bring the total payments received since the commencement of the work up to ninety-five percent (95%) of the value of the work completed, less all previous payments, provided that the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule. The CITY will retain five percent (5%) of the amount of each such progress estimate and material cost until 35 days after the recordation of the Notice of Completion.
Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the CITY’S Engineer, stating that the work for which payment is demanded has been performed in accordance with the terms of the Contract. Partial payments of the Contract price shall not be considered as an acceptance of any part of the work.
5.12 Substitution of Securities in Lieu of Retention of Funds. Pursuant to Public Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to ensure performance of the Contract. CONTRACTOR shall be required to execute an addendum to this Contract together with escrow instructions and any other documents in order to effect this substitution.
5.13 Completion. Within 10 days after the contract completion date of the Project, CONTRACTOR shall file with the CITY’S Engineer its affidavit stating that all workers and persons employed, all firms supplying materials, and all SUBCONTRACTORs upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be set forth in an affidavit covering disputed claims, or items in connection with Stop Notices which have been filed under the provisions of the statutes of the State of California. CITY may require affidavits or certificates of payment and/or releases from any SUBCONTRACTOR, laborer or material supplier.
5.14 CONTRACTOR's Employees Compensation
5.14.1 General Prevailing Rate. CITY has ascertained that State prevailing wage requirements of the California Labor Code including Sections 1770, 1771.5, 1773, 1777.5, and 1776 are required to execute this Contract. If there is a difference DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
between the minimum wage rates predetermined by the Secretary of Labor and the general prevailing wage rates determined by the Director of the California Department of Industrial Relations for similar classifications of labor, the CONTRACTOR and the SUBCONTRACTORs shall pay not less than the higher wage rate. The CITY will not accept the lower State wage rates. This includes “helper” (or other classifications based on hours of experience) or any other classification. A copy of the prevailing rate of per diem wages shall be posted at the job site.
5.14.2 Forfeiture for Violation. CONTRACTOR shall, as a penalty to the CITY, forfeit one hundred dollars ($100.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any SUBCONTRACTOR under it) less than the greater of State minimum wage rate associated with the duties of the employee in question, in accordance with the State prevailing wage requirements of the California Labor Code, including Sections 1770, 1771.5, 1773, 1777.5, and 1776.
5.14.3 Apprentices. The greater of Section 1777.5, 1777.6 and 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices is applicable to this Contract and the CONTRACTOR shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty (20) working days, or more; or if contracts of specialty CONTRACTORs not bidding for work through the general or prime CONTRACTOR are two thousand dollars ($2,000.00) or more for five (5) working days or more.
5.14.4 Workday. In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (5.14.2) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California, and shall forfeit to the CITY as a penalty, the sum of twenty-five Dollars ($25.00) for each worker employed in the execution of this Contract by CONTRACTOR or any SUBCONTRACTOR for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article.
CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project.
5.14.5 Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual State prevailing wage paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Project and agrees to require that each of its SUBCONTRACTORs does the same. The applicable CONTRACTOR or SUBCONTRACTOR or its agent having authority over such matters shall certify all payroll records as accurate. CONTRACTOR further agrees that its payroll records and those of its SUBCONTRACTORs shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general.
CONTRACTOR shall comply with all the provisions of Labor Code Section 1776, DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). The CONTRACTOR shall submit copies of certified payroll reports and cancelled checks for laborers, every week to the CITY.
Certified payroll and cancelled checks submittals are due one month after start of construction and every week thereafter. If the certified payroll and cancelled checks are not submitted, the CONTRACTOR will be notified that compliance is required within five (5) working days or contract work must cease. The CITY will not be responsible for any delay or acceleration charges or any incurred costs or damages as a result of the work stoppage due to CONTRACTOR’s failure to comply. Work shall be cease in an orderly, safe fashion with all vehicle access restored, should this not occur, CITY will correct the deficiencies and deduct the cost from funds due to the CONTRACTOR. In addition, no progress payment shall be made until the copies of certified payroll reports and cancelled checks are submitted.
5.14.6 Contractor Registration. CONTRACTOR and its subcontractors must be registered with the California Department of Industrial Relations pursuant to Labor Code Section 1725.5. This Agreement shall not be effective until CONTRACTOR provides proof of registration to the CITY.
5.14.7 Posting of Job Site Notices. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner pursuant to Title 8, California Code of Regulations Section 16461(e) or other regulation promulgated pursuant to Labor Code Section 1771.4(a)(2).
5.14.8 Notice of DIR Compliance Monitoring and Enforcement. Pursuant to Labor Code Section 1771.4, this Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.
5.15 Surety Bonds. CONTRACTOR shall, upon entering into performance of this Agreement, furnish bonds in the amount of one hundred percent (100%) of the Contract price bid, to guarantee the faithful performance of the work, and the other in the amount of one hundred percent (100%) of the Contract price bid to guarantee payment of all claims for labor and materials furnished. This Contract shall not become effective until such bonds are supplied to and approved by the CITY.
5.16 Insurance .
5.16.1 CONTRACTOR is also aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commencing the performance of the work of this Contract.
5.16.2 CONTRACTOR and all SUBCONTRACTORs shall carry workers' compensation insurance for the protection of its employees during the progress of the work. The insurer shall waive its rights of subrogation against the CITY, its Officers, Official Agents Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the City and shall issue an insurance certificate and waiver of subrogation to the policy evidencing same.
5.16.3 CONTRACTOR shall at all times carry, on all operations hereunder, bodily injury, including death, and property damage liability insurance, including automotive DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
operations bodily injury and property damage coverage; and builders' all risk insurance. Follows Form excess liability insurance shall be provided for any underlying policy that does not meet the policy limits required by this contract.
All insurance coverage shall be in amounts specified by the CITY in the Insurance Requirements and shall be evidenced by the issuance of a certificate and additional insured endorsement in forms prescribed by the CITY and shall be underwritten by insurance companies satisfactory to the CITY for all operations, subcontract work, contractual obligations, product or completed operations, all owned vehicles and non-owned vehicles. Claims made and modified occurrence policies shall not be accepted. Said insurance coverage obtained by the CONTRACTOR, excepting workers' compensation coverage, shall name the CITY, its Officers, Official, Agents, Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY, as additional insured on said policies. Additional insured status shall be evidenced in the form of an Additional insured Endorsement (CG 20 10 1185). A sample is included in the appendix of the specifications for reference.
For any claims related to this Project, the Contractor’s insurance coverage shall be primary insurance as respects the CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents, and Employees, as determined by the CITY. Any insurance or self- insurance maintained by the CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents, and Employees, as determined by the CITY shall be excess of the CONTRACTOR’s insurance and not contribute with it.
5.16.4 Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:
COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify CITY of any material change, cancellation, or termination at least thirty (30) days in advance.
Contractor shall also provide a waiver of subrogation for each policy.
INSURANCE AMOUNTS . CONTRACTOR shall maintain all of the foregoing insurance coverage in force until the work under this Contract is fully completed.
The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under Section 5.17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, the following insurance in amounts not less than the amounts specified and issued by a company admitted and licensed in California and having a Best's Guide Rating of A-Class VII or better (Claims made and modified occurrence policies are not acceptable):
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
Workers’ Compensation As required by the State of California.
Employer’s Liability $1,000,000 per accident for bodily injury or disease.
Commercial General Liability (including
operations, products and completed
operations, and not excluding XCU)
$5,000,000 per occurrence for bodily injury,
personal injury and property damage.
Coverage shall include mobile equipment.
Automobile Liability, including non-owned
and hired vehicles
$2,000,000 combined single limit for bodily
injury and property damage.
Contractor’s Pollution Legal Liability $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
Excess liability, follows form coverage, shall be provided for any underlying policy that does not meet the policy limits required and set forth herein.
Insurance companies must be acceptable to CITY and have a Best’s Guide Rating of A-, Class VII or better, as approved by CITY.
An Additional Insured Endorsement, ongoing and products-completed operations, and including mobile equipment, for the Commercial General Liability policy shall designate CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR.
CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to City’s requirements, as approved by the CITY.
An Additional Insured Endorsement for Automobile Liability policy shall designate CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY as additional insureds for automobiles owned, leased, hired, or borrowed by the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to City’s requirements, as approved by CITY.
An Additional Insured Endorsement for Cont ractors’ Pollution Legal Liability policy shall designate CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to City’s requirements, as approved by the CITY.
In the event any of CONTRACTOR’S underlying policies do not meet policy limits within the insurance requirements, CONTRACTOR shall provide coverage under an excess liability policy. The policy must be a follows form excess/umbrella policy. CONTRACTOR shall provide the schedule of underlying polices for an excess/umbrella liability policy, state that the excess/umbrella policy follows form on the insurance certificate, and provide an additional insured endorsement for the excess/umbrella liability policy designating CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants for DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY as additional insureds.
A primary/non-contributory endorsement shall be provided to CITY for each policy. For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, agents, employees, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees as determined by CITY. Any insurance or self-insurance maintained by CITY, its officers, officials, agents, employees, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by CITY shall be excess of the CONTRACTOR’s insurance and shall not contribute with it. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.
CITY or its representatives shall at all times have the right to inspect and receive the original or a certified copy of all said policies of insurance, including certificates.
CONTRACTOR shall pay the premiums on the insurance hereinabove required.
If CONTRACTOR maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher insurance limits otherwise maintained by the CONTRACTOR
5.17 Risk and Indemnification. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR agrees to save, indemnify and keep the CITY, its Officers, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their directors, Officers, Agents and Employees harmless against any and all liability, claims, judgments, costs and demands, including demands arising from injuries or death of persons (CONTRACTOR'S employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigation arising through the negligence or willful misconduct of CITY and will make good to reimburse CITY for any expenditures, including reasonable attorneys' fees CITY may incur by reason of such matters, and if requested by CITY, will defend any such suits at the sole cost and expense of CONTRACTOR.
5.18 Termination .
5.18.1 This Contract may be terminated in whole or in part in writing by the CITY for its convenience, provided that the CONTRACTOR is given (1) not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent to terminate, and (2) an opportunity for consultation with the terminating party prior to termination.
5.18.2 If termination for default or convenience is effected by the CITY, an equitable adjustment in the price provided for in this Contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY because of the CONTRACTOR'S default.
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
5.18.3 Upon receipt of a termination action under paragraph (5.18.1) or (5.18.2) above, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process.
5.18.4 Upon termination under paragraphs (5.18.1) and (5.18.2) above, the CITY may take over the work and may award another party an agreement to complete the work under this Contract.
5.19 Warranty. The CONTRACTOR agrees to perform all work under this Contract in accordance with the CITY 's designs, drawings and specifications.
The CONTRACTOR guarantees for a period of one (1) year from the date of the notice of completion of the work that the completed work is free from all defects due to faulty materials, equipment or workmanship and that he shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs or any damage to other parts of the system resulting from such defects. The CITY shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, the CITY may do so and charge the CONTRACTOR the cost incurred. The performance bond shall remain in full force and effect through the guarantee period.
The CONTRACTOR'S obligations under this clause are in addition to the CONTRACTOR'S other express or implied assurances of this Contract or state law and in no way diminish any other rights that the CITY may have against the CONTRACTOR for faulty materials, equipment or work.
5.20 Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Contract, each shall bear its own attorneys' fees, costs and necessary disbursements. Notwithstanding the foregoing, if any action is brought against the CONTRACTOR or any SUBCONTRACTOR to enforce a Stop Notice or Notice to Withhold, which named the CITY as a party to said action, the CITY shall be entitled to reasonable attorneys' fees, costs and necessary disbursements arising out of the defense of such action by the CITY. The CITY shall be entitled to deduct its costs for any Stop Notice filed, whether court action is involved or not.
5.21 Notices. Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing.
To CITY: TO CONTRACTOR:
City of Garden Grove _______________________
Public Works Department _______________________
Attention: Rebecca Li, P.E. _______________________
13802 Newhope Street _______________________
Garden Grove, CA 92843 _______________________
(714) 741-5562, (714) 638-9906 Fax
SIGNATURE ON NEXT PAGE
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
IN WITNESS THEREOF, these parties have executed this Construction Agreement on the day and year shown below.
"CITY"
CITY OF GARDEN GROVE
Date:____________________________ By:
Scott C. Stiles
City Manager
ATTEST:
City Clerk
Date:
"CONTRACTOR"
___________________________________________
CONTRACTOR'S State License No.
(Expiration Date: )
By:
Title:
Date:
APPROVED AS TO FORM:
______________________________
City of Garden Grove
City Attorney
If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.
Date:___________________________
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5 4/19/2022
Massoud Jami
President
10/31/2023
1031564
4/19/2022
~
DocuSigned by:
, ,4 i
4f:'.(t! ttfMk'IJVtt/
'
8A61 EE779844411 ..
SECTION 5 - AGREEMENT (Continued)
FAITHFUL PERFORMANCE BOND
Bond No.
Premium
NOTICE: TO WHOM IT MAY CONCERN: those we, ,
,
as Principal, and
as Surety, are held and firmly bound unto The City of Garden Grove, (CITY) in the sum of _____________________________________________________________________________ _
Lawful money of the United States, for the payment of which we bind heirs, our executors, administrators, successors, and ourselves jointly and severally.
That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:
License No.:
Address:
Telephone No.:
That the following clause must be completed if, in fact, a non-resident agent for the Surety is a party to the transaction:
Name of non-resident agent:
Non-resident agent's office address:
Telephone No.:
THE CONDITION OF THIS OBLIGATION IS SUCH, that:
1. The Principal has agreed entered into a contract attached hereto, dated the day of , 20___, with THE CITY OF GARDEN GROVE for Construction of SCADA FP2 – Pressure Monitoring Improvements - Project No. CP1268268 -- Drawing No. W-622.
2. If the Principal shall well and truly perform, or cause to be performed, each and all of the requirements and obligations of the contract to be performed by the Principal, as set forth in the contract, then this bond shall be null and void; otherwise, it shall remain in full force and effect. In the event that suit is instituted to recover on this bond, the Surety will pay reasonable attorneys' fees.
3. Further, the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the contract documents or of work performed shall in any way affect its obligation on this bond, and it does hereby waive notice of any change, extension of time, alteration, or modification of the contract documents, or of work to be performed.
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
FAITHFUL PERFORMANCE BOND (Continues)
Executed this day of , 20___
Principal Principal
By:
Surety
By:
Attorney-in-Fact
California Resident Agent
By:
Non-resident Agent - Attorney-in-Fact
STATE OF CALIFORNIA )
)
COUNTY OF ) ss.
On this day of , 20 , before me, a Notary Public in and for said County, residing therein, duly commissioned and sworn, personally appeared known to me to be the Attorney-in-Fact of the , of (Corporation)
, and acknowledged that it executed the attached bond to the (State)
Garden Grove Sanitary City as such Attorney- in-Fact and as the free act and deed of the corporation, and that the bond was executed on behalf of the corporation by authority of its Board of Directors.
IN WITNESS WHEREOF, I have herewith set my hand and affixed my Official Seal, the day and year in this certificate first above written.
(Acknowledgment by Non -
resident Agent as Attorney -
in-Fact must be attached.)
Notary Public in and for said County and State
My Commission expires:
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
LABOR AND MATERIAL BOND
Bond No.
Premium
NOTICE: TO WHOM IT MAY CONCERN: those we,
,
as Principal, and , as Surety,
are held and firmly bound unto The City of Garden Grove, California ("CITY") in the sum of Dollars ($ ), lawful money of the United States, for the payment of the sum, we bind heirs, our executors, administrators, successors, and ourselves jointly and severally.
That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:
License No.:
Address:
Telephone No.:
That the following clause must be completed if, in fact, a non-resident agent for the Surety is a party to the transaction:
Name of non-resident agent:
Non-resident agent's office address:
Telephone No.:
THE CONDITION OF THIS OBLIGATION IS SUCH, that:
1. The Principal has entered into a contract attached hereto, dated day of ________________, 20___, with the CITY OF GARDEN GROVE for Construction of SCADA FP2 – Pressure Monitoring Improvements - Project No. CP1268268 -- Drawing No. W-622.
2. If the Principal, its heirs, executors, administrators, successors, or assigns, or SUBCONTRACTORs, shall fail to pay for any materials, provisions, provender, or other supplies or teams, implements, or machinery used in, upon, for, or about, the performance of the improvement, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor, and provided that the claimant shall have complied with the provision of the code, the Surety or Sureties will pay for same in the amount not exceeding the sum specified in this bond; otherwise, the above obligation shall be void. In case suit is brought upon this bond, the Surety will pay reasonable attorneys' fees.
3. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the contract documents, or of work performed, shall in any way affect its obligation on this bond, and it does hereby waive notice of any change, extension of time, alteration, or modification of the contract documents, or of work to be performed.
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
LABOR AND MATERIAL BOND (Continued)
4. This bond shall inure to the benefit of any and all persons, companies, and corporations entitled to the claims under Civil Code 3181 et seq., so as to give a right of action to them or their assignees in any suit brought upon this bond.
Executed this day of , 20 .
Principal Principal
By:
Surety
By:
Attorney-in-Fact
California Resident Agent
By:
Non-resident Agent - Attorney-in-Fact
STATE OF CALIFORNIA )
)
COUNTY OF ) ss.
On this day of , 20 , before me, a Notary Public in and for said County and State, personally appeared
known to me to be the Attorney-in-Fact of
the ,of
(Corporation)
, and acknowledged that it executed the attached bond to the (State)
Garden Grove Sanitary City as such Attorney- in-Fact and as the free act and deed of the corporation, and that the bond was executed on behalf of the corporation by authority of its Board of Directors.
IN WITNESS WHEREOF, I have herewith set my hand and affixed my Official Seal, the day and year in this certificate first above written.
(Acknowledgment by Non -
resident Agent as Attorney -
in-Fact must be attached.)
Notary Public in and for said County and State
My Commission expires:
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into by and between whose address is ,
hereinafter called "Owner", ,
whose address is ,
hereinafter called "CONTRACTOR", ,
and , whose address
is ,
hereinafter called "escrow agent."
For the consideration hereinafter set forth, the Owner, CONTRACTOR, and escrow agent agree as follows:
(1) Pursuant to Section 22300 of the Public Contract Code of the State of California, the CONTRACTOR has the option to deposit securities with the escrow agent as a substitute for retention earnings required to be withheld by the Owner pursuant to the construction contract entered into between the Owner and CONTRACTOR for in the amount of dated (hereafter referred to as the "contract"). Alternatively, on written request of the CONTRACTOR, the Owner shall make payments of the retention earnings directly to the escrow agent. When the CONTRACTOR deposits the securities as a substitute for the contract earnings, the escrow agent shall notify the Owner within ten days of the deposit. The market value of the securities at the time of the substitution shall be at least equal to the cash amount then required to be withheld as retention under the terms of the contract between the Owner and CONTRACTOR. Securities shall be held in the name of the , and shall designate the CONTRACTOR as the beneficial Owner.
(2) The Owner shall make progress payments to the CONTRACTOR for those funds which otherwise would be withheld from progress payments pursuant to the contract provision, provided that the escrow agent holds securities in the form and amount specified above. (3) When the Owner makes payment of retentions earned directly to the escrow agent, the escrow agent shall hold them for the benefit of the CONTRACTOR until such time as the escrow created under this contract is terminated. The CONTRACTOR may direct the investment of the payments into securities. All terms and conditions of this agreement and the rights and responsibilities of the parties shall be equally applicable and binding when the Owner pays the escrow agent directly.
(4) The CONTRACTOR shall be responsible for paying all fees for the expenses incurred by the escrow agent in administering the escrow account. These expenses and payment terms shall be determined by the CONTRACTOR and escrow agent. (5) The interest earned on the securities or the money market accounts held in escrow and all interest on the interest shall be the sole account of CONTRACTOR and shall be subject to withdrawal by CONTRACTOR at any time and from time to time without notice to the Owner. (6) The CONTRACTOR shall have the right to withdraw all or any part of the principal in the escrow account only by written notice to the escrow agent accompanied by written authorization from the Owner to the escrow agent that the Owner consents to the withdrawal of the amount sought to be withdrawn by CONTRACTOR.
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
(7) The Owner shall have a right to draw upon the securities in the event of default by the CONTRACTOR. Upon seven days' written notice to the escrow agent from the Owner of the default, the escrow agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the Owner.
(8) Upon receipt of written notification from the Owner certifying that the contract is final and complete, and that the CONTRACTOR has complied with all requirements and procedures applicable to the contract, the escrow agent shall release to the CONTRACTOR all securities and interest on deposit less escrow fees and charges of the escrow account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payment of fees and charges.
(9) The escrow agent shall rely on the written notifications from the Owner and the CONTRACTOR pursuant to Sections (1) to (8), inclusive, of this agreement and the Owner and CONTRACTOR shall hold the escrow agent harmless from the escrow agent's release, conversion, and disbursement of the securities and interest as set forth above. (10) The names of the persons who are authorized to give written notice or to receive written notice on behalf of the Owner and on behalf of the CONTRACTOR in connection with the foregoing, and exemplars of their respective signatures are as follows:
On behalf of the Owner: On behalf of the CONTRACTOR:
On behalf of the Owner: On behalf of the CONTRACTOR:
Title Title
Name Name
Signature Signature
Address Address
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
SECTION 5 - AGREEMENT (Continued)
On behalf of the escrow agent:
Title Title
Name Name
Signature Signature
Address Address
At the time the escrow account is opened, the Owner and CONTRACTOR shall deliver to the escrow agent a fully executed counterpart of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above.
Owner/CONTRACTOR Date:
Title/Title
Approved as to Form
City of Garden Grove
City Attorney
DocuSign Envelope ID: AABCF0F1-37E5-48D2-B197-404D67032FD5
Agenda Item - 6.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Lisa L. Kim
Dept.: City Manager Dept.: Community and Economic
Development
Subject: Information update on the
Civic Center Community
Engagement Project as
requested by City Manager
Stiles.
Date: 5/10/2022
OBJECTIVE
To provide an update to the City Council on the Civic Center Community Engagement project.
BACKGROUND
In 2019, Garden Grove residents approved Measure O, a local sales tax to support annual funding for public safety. Through various prior studies, past efforts demonstrate the City's dedication to investing in itself and revitalizing Garden Grove to make it a safer, more pedestrian friendly place with improved amenities, safe and clean neighborhoods, and high quality public safety services for all current and future residents. The City of Garden Grove is planning to reinvest in itself by exploring opportunities in the Civic Center area for improved public amenities and also evaluate the prospects of replacing and modernizing the Police Department public safety facilities to better meet the needs of the community.
In January of 2020, a police facilities space needs assessment was conducted to address current and future needs of the Garden Grove Police Department (GGPD).
Findings of the report identified deficiencies in the existing GGPD facilities and insufficient spacing available for building, parking, and site needs to accommodate current and future demands of the growing community.
DISCUSSION
COMMUNITY OUTREACH
The City of Garden Grove is launching a public outreach and community engagement effort to work hand-in-hand with Garden Grove residents to explore opportunities in the civic center area for improved public amenities and also evaluate the prospects of replacing and modernizing the Police Department public safety facilities.
Through the public engagement process, the City intends to inform and engage with the community, ensuring participation from the broad range of stakeholders identifying the specific needs of the community. The City intends to use a comprehensive approach utilizing a wide variety of tools and methods for community outreach.
WEBSITE
A website dedicated to the project (ggcity.org/civic-center-community-engagement) is available with regular updates, educational information, flyers, and news to allow the community to stay connected and informed.
SOCIAL MEDIA
Ongoing social media presence will be maintained to inform the community of news and updates through all of the City’s social media accounts.
OPEN HOUSE
On May 4, 2022, at the Garden Grove Community Meeting Center (CMC), from 6:00 p.m. to 8:00 p.m., the City of Garden Grove held an in-person Open House for all residents of the community to join the conversation. Participants learned more about the project, and most importantly, provided their input on the planning process for the new Police Department facility and other community improvements in the larger Civic Center area.
On May 12, 2022, the City of Garden Grove will hold a Virtual Open House from 6:00 p.m. to 8:00 p.m., to allow for any persons who weren’t able to attend the in- person Open House to attend the virtual meeting and provide their input on potential improvements in the Civic Center area.
FINANCIAL IMPACT
None.
RECOMMENDATION
This report is for informational purposes only to receive and file.
Agenda Item - 6.c.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Omar Sandoval
Dept.: City Manager Dept.: City Attorney
Subject: Introduction and first reading
of an ordinance to add
Chapters 8.92 and 8.94 to
Title 8 of the Garden Grove
Municipal Code as requested
by Mayor Pro Tem Diedre
Thu-Ha Nguyen
Date: 5/10/2022
OBJECTIVE
For the City Council to conduct a first reading and introduction of an ordinance to prohibit the unlawful possession of catalytic converters within the City, and repairs and sales of bicycles and bicycle parts on public property.
BACKGROUND
At the City Council Meeting held on April 26, 2022, Mayor Pro Tem Diedre Thu-Ha Nguyen asked and received by a unanimous vote that the City Council support listing an ordinance to establish legal authority to protect the public and deter criminal activity and prohibit unlawful possession of catalytic converters and sales and repairs of bicycles within the City. Over the past several years, thefts of catalytic converters within the City of Garden Grove, as well as within jurisdictions across Orange County and California as a whole, have increased dramatically. In addition, there has been an increase of bicycle thefts due to both a general increase in property related crimes as well as a shortage of bicycles and bicycle parts with many of these crimes going unreported to police.
DISCUSSION
Over the past three years, the number of catalytic converter thefts within the City has increased dramatically. According to crime statistics from the Garden Grove Police Department there were 163 reported catalytic converter thefts reported in the City.
That number increased by approximately 375% in 2021 to a total of 607 such thefts.
And, in the first four months of 2022 alone, there have been 216 reported catalytic converter thefts. Projected out for the remainder of the year, the City can expect a total of 864 catalytic converter thefts by the end of 2022. This trend is not unique to Garden Grove.
The rise in catalytic converter thefts can be attributed to several factors. First, a theft of a catalytic converter can be accomplished within a matter of seconds using common household tools such as a reciprocating saw or handheld circular saw. This, coupled with the ease with which criminals can access a vehicle’s catalytic converter, makes it nearly impossible to catch criminals in the act of committing a catalytic converter theft. Next, catalytic converters contain precious metals such as platinum, palladium, and rhodium, which can be recycled for substantial sums. As a result, criminals sell the stolen catalytic converters to scrap metal yards who, in turn, remove the precious metals and sells them for a high profit. Catalytic converter thefts are nearly impossible for law enforcement agencies to investigate because the stolen catalytic converters do not have any identifying markings (e.g. serial numbers, vehicle identification numbers, or license plate numbers) which can be used to identify victims of theft. Without a victim of a theft, law enforcement officers cannot arrest suspected criminals for mere possession of a catalytic converter that appears to be stolen. Thus, despite the fact that there are very few instances when an individual would lawfully be in possession of a catalytic converter that is not attached to a vehicle, criminals cannot be charged with any offense given the lack of a specifically identifiable victim. There are currently no federal, state, or local laws or regulations which criminalize the possession of a catalytic converter which is not attached to a vehicle. Further, there is no federal, state, or local law which criminalizes the sale or recycling of unlawfully obtained catalytic converters.
The lack of regulation in this area incentivizes criminals to steal catalytic converters and scrap yard and similar businesses to purchase the stolen items in order to recycle the precious metals for a profit. Finally, there are currently no federal, state, or local laws or regulations which require individuals in possession of catalytic converters which are not attached to vehicles to provide proof to law enforcement of lawful possession. This limits law enforcement’s ability to protect the public by deterring catalytic converter thefts, as well as limits law enforcement’s ability to seize catalytic converters which are suspected to be stolen unless an identifiable victim can be located Given the lack of regulation in this area, the majority of catalytic converter thefts within the City of Garden Grove go unsolved. As to the increase of bicycle thefts, many of these bicycles are stolen and then dismantled in public areas in the City of Garden Grove and sold within days of being stolen. There is a narrow window for stolen bicycles to be recovered while they are being taken apart in public spaces before being sold.
Such open-air "bike chop shops" can be seen throughout the City, but confronting the illegal activities this practice supports is difficult without better tools to reduce the illegal activity.
Thus, creating a specific law for the removal of bicycles and/or bicycle parts from the public right-of-way and public property will add an enforcement tool to remove clutter from the public right-of-way and public property, prevent illegal commercial activity, and, if any bicycles or bicycle parts are lost or stolen, restore such items to their lawful owners and deter future bicycle theft. This ordinance will provide the Garden Grove Police Department with clearly established legal authority to protect the public and deter criminal activity.
FINANCIAL IMPACT
None.
RECOMMENDATION
It is recommended that the City Council:
Introduce for first reading and pass to second reading the Ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE, CALIFORNIA, ADDING CHAPTERS 8.92 AND 8.94 TO TITLE 8 OF THE GARDEN
GROVE MUNICIPAL CODE ESTABLISHING REGULATIONS PROHIBITING THE
UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS IN THE CITY, AND REPAIRS AND SALES OF BICYCLES AND BICYCLE PARTS ON PUBLIC PROPERTY.
ATTACHMENTS:
Description Upload Date Type File Name
Ordinance 5/4/2022 Ordinance 5-10-
22_Ordinance_re_Catalytic_Converters_and_Bicycles.pdf
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE, CALIFORNIA, ADDING CHAPTERS 8.92 AND 8.94 TO TITLE 8 OF THE GARDEN
GROVE MUNICIPAL CODE ESTABLISHING REGULATIONS PROHIBITING THE
UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS IN THE CITY, AND REPAIRS
AND SALES OF BICYCLES AND BICYCLE PARTS ON PUBLIC PROPERTY
City Attorney Summary
This ordinance adds Chapter 8.92 and 8.94 to Title 8 of the Garden Grove Municipal Code to prohibit the unlawful possession of catalytic converters in the city, and repairs and sales of bicycles and bicycle parts on public property. The regulations prohibit the possession of any catalytic converter that is not attached to a vehicle unless the possessor has valid documentation or other proof to establish that they are in lawful possession of the catalytic converter. The regulations further prohibit the assembly, disassembly, sale, offer to sale, distribute, offer to distribute, store, or possess three or more bicycles, bicycle frame with the gear cables or brakes cable cut, two or more bicycles with missing parts or five or more bicycle parts on any street, sidewalk, alley, or public property within the City
WHEREAS, the City of Garden Grove and its citizens have experienced a dramatic increase in the theft of catalytic converters over the past several years; and
WHEREAS, the number of catalytic converter thefts in the City of Garden rose from approximately 163 in the year 20 20, to 607 in the year 2021, marking an increase of approximately 375% over that period; and
WHEREAS, in the first 4 months of 2022, the City has already experienced approximately 216 catalytic converter thefts; and
WHEREAS, the nature of catalytic converter thefts makes it difficult for law enforcement to prosecute offenders due to the fact that it is extremely difficult to identify victims of the thefts; and
WHEREAS, there are currently no federal, state, or local laws or regulations which criminalize the unlawful possession within the City of catalytic converters which are not attached to vehicles; and.
WHEREAS, there are currently no federal, state, or local laws or regulations which prohibit the unlawful recycling or sale of unlawfully obtained catalytic converters within the City, thus leading to the increase of such activity within the City; and
WHEREAS, there are currently no federal, state, or local laws or regulations which require individuals in possession of catalytic converters which are not attached to vehicles to provide proof to law enforcement of lawful possession, which limits law enforcement’s ability to protect the public by deterring catalytic converter thefts, as
Garden Grove City Council
Ordinance No.
well as limits law enforcement’s ability to seize catalytic converters which are suspected to be stolen unless an identifiable victim has been located; and
WHEREAS, catalytic converter thefts are on the rise because individuals are incentivized to commit such thefts for many reasons including, but not limited to, (1) the ease such thefts can be committed in a very short period of time with common tools, (2) the ability to recycle catalytic converters as scrap metal for high dollar amounts ranging from $200 to $1,200 per catalytic converter, and (3) loopholes in legislation which protect criminals from prosecution unless a specific victim can be identified; and
WHEREAS, finding victims of these crimes is nearly impossible because it is extremely difficult to catch criminals in the act of unlawfully removing a catalytic converter, coupled with the fact that catalytic converters do not have any identifying marks which would allow law enforcement to trace stolen catalytic converters to a specific vehicle or victim; and
WHEREAS, due to the lack of legislation in this area, most catalytic converter thefts go unsolved, which is fundamentally unacceptable for the citizens of Tustin; and
WHEREAS, the citizens of Garden Grove and the Garden Grove Police Department are in need of legislation for multiple reasons including, but not limited to: (1) the need for deterrence by establishing zero-tolerance for catalytic converter thefts, (2) creating penalties for possessing stolen catalytic converters, (3) preventing criminals from profiting from the sale and recycling of stolen catalytic converters, (4) providing indirect justice to victims of catalytic converter theft, and (5) minimizing the fiscal and personnel impact on the City of Garden Grove caused by catalytic converter thefts and related investigations; and
WHEREAS, individuals who are in possession of stolen catalytic converters recycle them for substantial sums while the victims of such thefts are required to pay thousands of dollars to repair their vehicles, are inconvenienced by the time such repairs take, and fell less safe in their community; and
WHEREAS, there has been a recent nationwide increase of bicycle theft due to both a general increase in property related crimes as well as a shortage of bicycles and bicycle parts with many of these crimes going unreported to police; and
WHEREAS, many of these bicycles are stolen and then dismantled in public areas in the City of Garden Grove and sold within days of being stolen. There is a narrow window for stolen bicycles to be recovered while they are being taken apart in public spaces before being sold; and
WHEREAS, such open-air "bike chop shops" can be seen throughout the City, but confronting the illegal activities this practice supports is difficult without better tools to reduce the illegal activity; and
Garden Grove City Council
Ordinance No.
WHEREAS, creating a specific law for the removal of bicycles and/or bicycle parts from the public right- of-way and public property will add an enforcement tool to remove clutter from the public right- of-way and public property, prevent illegal commercial activity, and, if any bicycles or bicycle parts are lost or stolen, restore such items to their lawful owners and deter future bicycle theft; and
WHEREAS, this Ordinance is necessary to provide the City of Garden Grove Police Department with clearly established legal authority to protect the public and deter this criminal activity.
Now, therefore, the City Council of the City of Garden Grove does hereby ordain as follows:
SECTION 1. Chapter 8.92 is hereby added to Title 8 of the Garden Grove Municipal Code to read as follows:
CHAPTER 8.92
UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS
8.92.010 – Unlawful Possession of a Catalytic Converter
A. It shall be unlawful to possess any catalytic converter that is not attached to a vehicle unless the possessor has valid documentation or other proof to establish that they are in lawful possession of the catalytic converter.
B. For purposes of this section, “lawful possession” includes being the lawful owner of the catalytic converter, or in possession of the catalytic converter with the lawful owner’s written consent. It is not required to prove that a catalytic converter was stolen to establish that the possession is not a “lawful possession.”
C. For purposes of this section, “documentation or other proof” means written document(s) that clearly identify the vehicle from which the catalytic converter originated and includes, but is not limited to the following document types: bill of sale from the original owner with photographs, documentation from an auto-body shop proving the owner relinquished the catalytic converter to the auto-body shop, verifiable written or electronic communication from the previous owner to the possessor relinquishing ownership of the catalytic converter, photographs of the vehicle from which the catalytic converter originated and which show the vehicle’s license plate or vehicle identification number (VIN), or vehicle registration for the vehicle from which the catalytic converter originated, coupled with a corresponding license plate or VIN number etched onto the catalytic converter. The validity
Garden Grove City Council
Ordinance No.
of “documentation or other proof” shall be based on the totality of the circumstances.
D. Each and every violation of this section shall constitute a separate violation and shall be subject to remedies and enforcement as set forth in the Garden Grove Municipal Code. Each and every catalytic converter which is unlawfully possessed constitutes a separate violation of this section.
E. Violations of this section constitute misdemeanors and upon conviction are punishable by a fine not to exceed $1,000, imprisonment in the county jail for a period of up to six (6) months, or by both such fine and imprisonment.
Notwithstanding the foregoing, violations of this section may, at the discretion of the City Attorney, be prosecuted as infractions.
F. The remedies provided herein are not to be construed as exclusive remedies.
The City is authorized to pursue any proceedings that are authorized by this Code or any other law for violations of this section.
SECTION 2. Chapter 8.94 is hereby added to Title 8 of the Garden Grove Municipal Code to read as follows:
CHAPTER 8.94
PROHIBITION ON REPAIRS AND SALES OF BICYCLES
AND BICYCLE PARTS ON PUBLIC PROPERTY
8.94.010 Purpose and Intent.
The purpose of this Chapter is to provide an enforcement tool to prevent illegal commercial activity, remove clutter from the public right-of-way and public property, and, if any bicycles or bicycle parts are lost or stolen, restore such items to their lawful owners and deter future bicycle theft.
8.94.020 Repairs and sales on public property prohibited.
Except where otherwise stated in this Chapter, no person shall assemble, disassemble, sell, offer to sell, distribute, offer to distribute, store, or possess the following items on any street, sidewalk, alley, or public property within the City:
A. Three (3) or more bicycles;
B. A bicycle frame with the gear cables or brakes cable cut;
C. Two (2) or more bicycles with missing parts (the term "parts" shall mean handlebars, wheels, forks, pedals, cranks, seats, frames or chains); or
Garden Grove City Council
Ordinance No.
D. Five (5) or more bicycle parts.
8.94.030 Exceptions.
The prohibition contained in Section 8.94.020 of this Chapter shall not apply in any of the following situations:
A. An individual is operating under a valid City of Garden Grove License or Permit authorizing such activities.
B. The owner of a bicycle or bicycle part is present during the repair of his or her single bicycle or bicycle part. Supporting evidence for a claim of lawful ownership may include, but is not limited to, video or photographic evidence, a bill of sale, the correct serial number, bicycle registration, and the like.
SECTION 3. Severability. If any section, sub-section, clause or phrase in this Ordinance or the application thereof to any person or circumstances is for any reason held invalid, the validity of the remainder of this Ordinance or the application of such provisions to other persons or circumstances shall not be affected.
SECTION 4. Effective Date. This City Clerk shall certify passage of this Ordinance and this Ordinance shall be published as required by law and shall take effect as provided by law.
Agenda Item - 6.d.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Maria Stipe
Dept.: City Manager Dept.: City Manager
Subject: Consideration of a five
percent business license tax
rebate program to incentivize
alternative work schedules
for Garden Grove businesses
as requested by Council
Member Brietigam. (Action
Item)
Date: 5/10/2022
OBJECTIVE
For the City Council to discuss the potential implementation of a 5% business license tax rebate program that would incentivize alternative work schedules for Garden Grove businesses with 10 or more employees.
BACKGROUND
At the April 26, 2022, City Council Meeting, Council Member George Brietigam proposed implementing a 5% business license tax rebate program to incentivize alternative work schedules (e.g., 10/40 or 9/80 work shifts) for commercial businesses in the City with ten or more employees. Some of the potential benefits cited by Council Member Brietigam were: reduced traffic, reduced air pollution, reduced fossil fuel consumption, enhanced quality of life for employees, and reduced business license taxes for commercial businesses. At the meeting, the City Council approved an action item for staff to gather basic cost information to support further discussion and consideration at the May 10, 2022, City Council meeting.
DISCUSSION
The Finance Department has provided the following information, based on current documentation:
Of the City’s 5,200 brick and mortar commercial businesses, approximately 700 have 10 or more employees and could qualify for the program.
If all 700 businesses participated, the potential cost in lost revenue in Business License Tax could be up to $89,000 per year.
•
•
The maximum business license tax rebate would be $127.50, per business per year.
A list of example businesses and rebate amounts is attached for reference.
Implementation would require the City Council to adopt a Resolution outlining the program criteria, and the City’s business tax renewal form would be modified accordingly.
Modification of the business tax renewal form and fee calculation would be relatively straight forward, yet enforcement/compliance verification would not be feasible.
FINANCIAL IMPACT
If the program is implemented, the potential cost in lost revenue in Business License Tax, based on current data, would be up to $89,000 per year.
RECOMMENDATION
It is recommended that the City Council:
Provide direction to staff regarding implementation of the proposed 5% business license tax rebate program.
ATTACHMENTS:
Description Upload Date Type File Name
List of example
businesses and
rebate amounts
5/4/2022 Backup
Material 5%_Business_License_Tax_Rebate_Proposal_Example_List.2022.pdf
•
• •
•
•
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S% BUSINESS LICENSE TAX REBATE PROPOSAL --
' .. $. 4,773.43 ·---
11 BY$!J!l~S TYPE #OFEMPS -~T~RYMT 45 I~ 5%AMT -1,: -
GROCERY STORE 90 $ 2,550.00 $ 127.50
FASTENER MFG 92 $ 2,550.00 $ 127.50
RESTAURANT 95 $ 538.90 $ 26.95
RESTAURANT 95 $ 258.40 $_ -12,~2 --
METAL CONTAINTER MFG 95 $ 2,550.00 $ 127.50
RETAIL 96 $ 2,550.00 $ 127.50
RESTAURANT 97 $ 845.27 $ 42.26
RESTAURANT 100 $ 1,043.80 $ 52.19
GROCERY STORE 100 $ 2,550.00 $ 127.50
RESTAURANT 100 $ 501.50 $ 25.08
GROCERY STORE 100 $ 2,550.00 $ 127.50
PACKAGING 100 $ 2,550.00 $ 127.50
GROCERY STORE 100 $ 2,550.00 $ 127.50
CONVALESCENT HOSPITAL 110 $ 2,550.00 $ 127.50
HEALTH CARE SERVICES 117 $ 2,550.00 $ 127.50
NURSING CARE FACILITY 117 $ 2,039.67 $ 101.98
CAR DEALERSHIP 120 $ 2,550.00 $ 127.50
MACHINE SHOP 121 $ 2,550.00 $ 127.50
CATERING SERVICE 125 $ 110.50 $ 5.53
GROCERY STORE 138 $ 2,550.00 $ 127.50
RETAIL 140 $ 2,550.00 $ 127.50
CONVALESCENT HOSPITAL 144 $ 2,550.00 $ 127.50
GENERAL ENGINEERING CTR 150 $ 2,550.00 $ 127.50
HOTEL 150 $ 1,073.55 $ 53.68
CORPORATE OFFICE 172 $ 42.50 $ .. 2.13 ·--
NURSING HOME 174 $ 2,550.00 $ 127.50
HOTEL 180 $ 529.55 $ 26.48
CIRCUIT MFG 185 $ 2,550.00 $ 127.50
FOOD MFG 189 $ 2,550.00 $ 127.50
RETAIL 190 $ 2,550.00 $ 127.50
GENERAL CONTRACTOR 200 $ 2,550.00 $ 127.50
CONVALESCENT HOSPITAL 203 $ 2,550.00 $ 127.50
RETAIL 207 $ 2,550.00 $ 127.50
MEDICAL OFFICES 215 $ 2,550.00 $ 127.50
PLASTIC GIFT MFG 224 $ 2,550.00 $ 127.50
POLYMER COMPONENTS MFG 226 $ 2,550.00 $ 127.50
RETAIL 272 $ 2,550.00 $ 127.50
MEDICAL DEVICE MFG 310 $ 1,785.00 $ 89.25
RETAIL 323 $ 2,550.00 $ 127.50
AIRCRAFT INTERIOR MFG 350 $ 2,550.00 $ 127.50
AEROSPACE MFG 409 $ 2,550.00 $ 127.50
HOTEL 424 $ 2,550.00 $ 127.50
HOSPITAL 516 $ 2,550.00 $ 127.50
AIRCRAFT FASTENER MFG 625 $ 2,550.00 $ 127.50
HOTEL 700 $ 2,550.00 $ 127.50
BUSINESS LICENSE TAX~S ARE ASSESSED ANNUALLY AND RANGE FROM A BASE TAX OF $42.50 TO-A ---·· CAP OF $2550.00 ·------·~ -