FINANCIAL IMPACT
The 2025 Residential Streets Improvements Project is included in the adopted Fiscal Year 2025-26 Capital Improvement Plan budget and is funded by Gas Tax and Community Development Block Grant (CDBG) funds. No additional appropriation is needed to approve the contract.
RECOMMENDATION
It is recommended that the City Council:
Award a contract to Hardy & Harper, Inc., in the amount of $888,000 for the 2025 Residential Streets Improvements Project, City Project No. CP-1446000; and
Authorize the City Manager, or designee, to execute an agreement with Hardy & Harper, Inc., and make minor modifications as appropriate thereto, on behalf of the City.
By: Lesly Cantarero, Associate Engineer
ATTACHMENT(S)
1. Bid Summary Sheet
2. Location Map
3. Agreement
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ATTACHMENT 1
CITY OF GARDEN GROVE
PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
BID SUMMARY SHEET
FOR
2025 RESIDENTIAL STREETS IMPROVEMENTS PROJECT
CITY PROJECT NO. CP-1446000
BID OPENING: DATE: JUNE 4, 2025 TIME: 11:00 A.M.
ENGINEER’S ESTIMATE: $ 1,041,042.20
Bidder’s Name Total Bid % Under/Over
Engrs. Est
Hardy & Harper, Inc., Lake Forest $888,000.00 14.70% Under RJ Noble Company, Orange $908,995.45 12.68% Under
Palp, Inc DBA Excel Paving Company,
Long Beach $919,866.32 11.64% Under
Onyx Paving Company, Inc., Yorba
Linda $995,000.00 4.42% Under
All American Asphalt, Corona $999,194.55 4.02% Under
236
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SECTION 5 – AGREEMENT
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C O N S T R U C T I O N A G R E E M E N T
HARDY & HARPER, INC.
THIS AGREEMENT is made this 24th day of June, 2025 by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY"), and HARDY & HARPER, INC. hereinafter referred to as ("CONTRACTOR").
CITY desires to utilize the services of CONTRACTOR to furnish material, equipment, and labor for the 2025 RESIDENTIAL STREETS IMPROVEMENTS, CITY PROJECT NO. CP-1446000.
CONTRACTOR is qualified by virtue of experience, training, education, and expertise to accomplish services.
WHEREAS, the Federal Department of Housing and Urban Development is providing partial funding for this Contract to CITY through a Community Development Block Grant;
WHEREAS, CITY has solicited bids for a public works project, hereinafter referred to as “PROJECT," more fully described as 2025 RESIDENTIAL STREETS IMPROVEMENTS, in the City of Garden Grove; and
CONTRACTOR has been selected to perform said services,
NOW, THEREFOR, in consideration of the promises and agreements hereinafter made and exchanged, the parties covenant and agree as follows:
1. STATEMENT OF WORK ACCEPTANCE OF RISK
CONTRACTOR shall complete and construct the PROJECT pursuant to this Agreement and the Contract Documents (as hereinafter defined) and furnish, at its own cost and expense, all labor, plans, tools, equipment, supplies, transportation, utilities and all other items, services and facilities necessary to complete and construct the PROJECT in a good and workmanlike manner.
CONTRACTOR agrees to fully assume the risk of all loss or damage arising out of the nature of the PROJECT, during its progress or prior to acceptance by CITY, from the action of the elements, from any unforeseen difficulties which may arise or be encountered in the prosecution of work, and for all other risks of any description in connection with the work, including, but not limited to, all expenses incurred by or in consequence of the suspension or discontinuance of work, except such as are herein expressly stipulated to be borne by CITY, and for well and faithfully completing the work within the stipulated time and in the manner shown and described in this Agreement, and in accordance with the requirements of CITY for the compensation set forth in the accepted bid proposal.
2. ACCEPTANCE OF CONDITIONS OF WORK• PLANS AND
SPECIFICATIONS
CONTRACTOR acknowledges that it is fully familiar with all the terms, conditions and obligations of this Agreement and the Contract Documents (as defined below in this Section), the location of the job site, and the conditions under which the work is to be performed, and that it enters into this Agreement based upon its thorough investigation of all such matters and is relying in no way upon any opinions or representations of CITY.
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It is agreed that the Contract Documents are incorporated into this Agreement by this 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, shall be bound by the Contract Documents insofar as they relate in part or in any way, directly or indirectly, to the work covered by this Agreement.
"Contract Documents" as defined herein mean and include:
A. This Agreement;
B. Bonds covering the work herein agreed upon;
C. The CITYs standard Plans and Specifications and special contractual provisions, including those on file in the office of the Director of Public Works of CITY and adopted by the City Council, and any revisions, amendments or addenda thereto; D. The edition of Standard Specifications for Public Works Construction, published by Builders' News, Inc., 10801 National Boulevard, Los Angeles, CA 90064, and all amendments thereto, written and promulgated by the Southern California chapter of the American Public Works Association and the Southern California District Associated General Contractors of the California Joint Cooperative Committee as specified in the particular Plans, Specifications, Special Provisions and Addenda applicable to the Project;
E. All bid documents, including the Notice Inviting Bids, the Special Instructions to Bidders, the CONTRACTOR's proposal, (attached as Exhibit "A"), "Form HUD - 4010," the Federal Labor Standards Provision of the United States (attached as Exhibit "B"), and "Standard Federal Equal Employment Opportunity Construction Contract Specifications," as established by Federal Executive Order 11246 (attached as Exhibit "C").
F. The particular Plans, Specifications, Special Provisions and Addenda applicable to the PROJECT. 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. I n case of a discrepancy between any Plans, Specifications, Special provisions, or Addenda, the matter shall be immediately submitted by CONTRACTOR to the CITY ENGINEER (hereinafter referred to as " ENGINEER"), and CONTRACTOR shall not attempt to resolve or adjust the discrepancy without the decision of ENGINEER, save only at its own risk and expense.
Should there be any conflict between the terms of this Agreement and the bid or proposal of CONTRACTOR, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid or proposal which is in conflict herewith.
3. COMPENSATION
CITY agrees to pay and CONTRACTOR agrees to accept as full compensation for the faithful performance of this Agreement, subject to any additions or deductions made under the provisions of this Agreement or the Contract Documents, a sum not to exceed Eight Hundred Eighty Eight Thousand Dollars ($ 888,000.00 ), as set forth in the Contract Documents, to be paid as provided in this Agreement.
4. COMMENCEMENT OF PROJECT
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CONTRACTOR agrees to commence the PROJECT within ten (10) working days after the Notice to Proceed is issued and diligently prosecute the PROJECT to completion within Forty (40 ) working days from the day the Notice to Proceed is issued by ENGINEER excluding delays provided
for in this Agreement.
5. TIME OF THE ESSENCE
The parties hereto recognize and agree that time is of the essence in the performance of this Agreement and each and every provision of the Contract Documents.
CONTRACTOR shall prepare and obtain approval as required by the Contract Documents for all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of its work in conformance with the progress schedule set forth in the Contract Documents. CONTRACTOR shall coordinate its work with the work of all other contractors, subcontractors, and CITY forces working on the PROJECT in a manner that will facilitate the efficient completion of the PROJECT and in accordance with the terms and provisions of this Agreement. 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 and order in which the various portions of the work shall be performed and the priority of the work of other contractors, subcontractors and CITY forces and, in general, all matters concerning the timely and orderly conduct of the work of CONTRACTOR on the premises.
6. CHANGES
CONTRACTOR shall adhere strictly to the plans and specifications set forth in the Contract Documents unless a change therefrom is authorized in writing by ENGINEER.
CONTRACTOR agrees to make any and all changes, furnish materials and perform all work necessary within the scope of the PROJECT as ENGINEER may require in writing. Under no condition shall CONTRACTOR make any changes without the prior written order or acceptance of ENGINEER, and CITY shall not pay any extra charges made by CONTRACTOR that have not been agreed upon in writing by ENGINEER.
When directed to change the work, CONTRACTOR shall submit immediately to ENGINEER a written cost proposal reflecting the effect of the change. Should ENGINEER not agree to such cost proposal, the work shall be performed according to the changes ordered in writing by ENGINEER and the proper cost thereof shall be negotiated by the parties upon cost and pricing data submitted by CONTRACTOR; thereupon, CITY will promptly issue an adjusted change order to CONTRACTOR and the Agreement price will be adjusted upward or downward accordingly.
7. NOTICE TO PROCEED
No work, services, material, or equipment shall be performed or furnished under this Agreement unless and until a Notice to Proceed has been given to CONTRACTOR by CITY. CITY does not warrant that the work will be available on the date the Notice to Proceed is issued. In the event of a delay in commencement of the work due to unavailability of the job site, for any reason, relief to CONTRACTOR shall be limited to a time extension equal to the delay due to such unavailability.
8. BONDS
CONTRACTOR shall, prior to entering into performance of this Agreement, furnish a performance bond, on the CITY's bond form in the amount of one hundred percent (100%) of the Contract price, to guarantee the faithful performance of the work, and a payment bond, on the CITY's form in the amount of one hundred percent (100%) of the Contract price, to guarantee payment of all 240
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claims for labor and materials furnished. Bonds submitted on any f orm other than the CITY's form will be rejected. The required bonds shall be from a surety licensed to do business in the State of California and with a current A.M. Best's rating of A-, VII. This Contract shall not become effective until such bonds are supplied and approved by the CITY.
In addition, CONTRACTOR shall submit to CITY a bond in the amount of one hundred percent (100%) of the final Agreement price, including all change orders, to warrant such performance for a period of one (1) year after CITY's acceptance thereof within ten (10) days of filing of the Notice of Completion.
9. WARRANTIES
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.
10. INDEPENDENT CONTRACTOR
It is understood and agreed that CONTRACTOR is, and shall be, acting at all times hereunder as an independent contractor and not an employee of CITY. CONTRACTOR shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for CONTRACTOR and its officers, agents and employees and all business licenses, if any, in connection with the PROJECT and/or the services performed hereunder.
11. LIQUIDATED DAMAGES/DELAYS
It is agreed by the parties hereto that in case the total work called for hereunder is not in all parts and requirements finished or completed within the number of calendar days as set f orth herein, damage will be sustained by CITY; and that it is, and would be, impractical and extremely difficult to ascertain and determine the actual damage which CITY would sustain in the event of and by reason of such delay. It is, therefor, agreed that CONTRACTOR will pay to CITY, as liquidated damages and not as a penalty, the sum of Two Thousand Dollars ($ 2,000.00 ) per each calendar days delay in completing the work in excess of the number of working/calendar days set forth herein, which represents a reasonable endeavor by the parties hereto to estimate a fair compensation for the foreseeable damages CITY would sustain in the event of and by reason of such delay; and CONTRACTOR agrees to pay these damages herein provided, and further agrees that CITY may deduct the amount thereof from any monies due or that may become due to CONTRACTOR 241
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hereunder. For projects on the National Highway System (NHS), the local formula for liquidated damages will be provided.
CONTRACTOR will be granted an extension of time and will not be assessed damages for any portion of the delay in the completion of the work due to unforeseeable causes beyond the control and without the fault or negligence of CONTRACTOR, including, but not limited to, acts of God or of the public enemy, fire, floods, epidemics, quarantine restrictions, strikes, unsuitable weather, or delays of subcontractors due to such causes.
CONTRACTOR shall, within fifteen (15) days from the beginning of any such delay (unless ENGINEER shall grant a further period of time), notify ENGINEER in writing of the cause of the delay and CITY shall extend the time for completing the work if, in its judgment, the findings of fact thereon justify the delay; and the decision of ENGINEER shall be conclusive on the parties hereto.
Should CONTRACTOR be delayed in the prosecution or completion of the work by the act, neglect or default of CITY, or should CONTRACTOR be delayed by waiting for materials required by this Agreement to be furnished by CITY, or by damage caused by fire or other casualty at the job site for which CONTRACTOR is not responsible, or by the combined action of the workers, in no way caused by or resulting from default or collusion on the part of CONTRACTOR, or in the event of a lockout by CITY, then t he time herein fixed for the completion of the work shall be extended by the number of days CONTRACTOR has thus been delayed, but no allowance or extension shall be made unless a claim therefor is presented in writing to CITY within fifteen (15) days of the commencement of such delay.
No claims for additional compensation or damages for delays, irrespective of the cause thereof, and including without limitation the furnishing of materials by CITY or delays by other contractors or subcontractors, will be allowed and an extension of time for completion shall be the sole remedy of CONTRACTOR.
12. DEMANDS FOR ADDITIONAL TIME OR MONEY
A. Definitions.
(1) "Change Order" means a document signed by the CONTRACTOR and CITY which authorizes an addition, deletion or revision in the work, or an adjustment in the Compensation under Section 3, or the Completion Time specified at Section 4. (2) "Demand" means a written demand for a Change Order by the CONTRACTOR for any of the following:
(a) A time extension;
(b) Payment of money or damages arising from work done by, or on behalf of, the CONTRACTOR pursuant to this Agreement and payment of which is not expressly permitted pursuant to Section 3 of this Agreement;
(c) Payment of an amount the CITY disputes;
(d) Any disputes and other matters relating to the acceptability of the work performed or the interpretation of the Contract Documents; (e) A request for a time extension or additional payment based upon differing site conditions, such as subsurface or latent physical conditions at the job site differing materially from those indicated in this Agreement or the Contract Documents, or unknown physical 242
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conditions at the job site, of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent to work of the PROJECT; or (f) A request for a time extension or additional payment based upon acts of neglect by CITY or due to fires, floods, labor disputes, epidemics, abnormal weather conditions or acts of God.
B. A Demand for a time extension or payment of money or damages may only be granted by a Change Order.
C. No Change Order may be granted except where the Contractor has submitted a Demand to the ENGINEER (or his or her written designee). All Demands shall be submitted promptly, but in no event later than thirty (30) days after the occurrence of the event giving rise to the Demand.
The Demand shall be in writing and include all documents necessary to substantiate the Demand. The ENGINEER shall act on the Demand within fifteen (15) days after receipt, including by requesting additional information from the CONTRACTOR to determine whether to approve the Change Order the Demand seeks. The ENGINEER shall act on the Demand within fifteen (15) days after receipt of the additional information or within a period of time no greater than the time the CONTRACTOR took to produce the additional information requested, whichever is greater.
D. Notwithstanding the thirty (30) days to submit a Demand under Subparagraph C, in the case of differing or unknown site conditions, immediately upon encountering the conditions, CONTRACTOR shall notify the ENGINEER in writing of the conditions, so that the CITY may promptly investigate the conditions.
E. If the CONTRACTOR disputes the ENGINEER's written response on the Demand, or the CITY fails to respond within the time prescribed, the CONTRACTOR may so notify the City Engineer, in writing, either within fifteen (15) days of receipt of the City Engineer's response or within fifteen (15) days of the ENGINEER's failure to respond within the time prescribed, respectively, and request an informal conference to meet and confer for settlement of the Demand.
Upon the CONTRACTOR's request, the ENGINEER shall schedule a meet and confer conference within thirty (30) days to seek to resolve.
F. CITY and CONTRACTOR shall execute appropriate Change Orders covering changes to the time or price by executing the Change Order by mutual agreement. If the CITY and CONTRACTOR are unable to reach a mutual agreement, then the City Engineer shall issue a written decision on the claim within a reasonable time.
G. Following the meet and confer conference, if the Demand remains in dispute, the CONTRACTOR may file a claim with the City as provided in Chapter I (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the time the CONTRACTOR submits his or her Demand until the Demand is denied as a result of the meet and confer process, including any period of time utilized by the meet and confer process.
13. VARIATIONS IN ESTIMATED QUANTITIES
The quantities listed in the bid schedule will not govern final payment. Payment to CONTRACTOR will be made only for the actual quantities of Agreement items used in construction of the PROJECT, in accordance with the plans and specifications. Upon complet ion of the PROJECT, if the actual quantities used are either more than or less than the quantities listed in the bid schedule, the bid price shall prevail subject to the provisions of this Section. ENGINEER may, at its sole discretion, when warranted by th e facts and circumstances, order an equitable adjustment, upwards or downwards, in payment to CONTRACTOR where the actual quantities used in construction of the PROJECT are in variation to the quantities listed in the bid schedule. No claim by CONTRACTOR f or 243
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an equitable adjustment in price or time for completion shall be allowed if asserted after final payment under this Agreement. If the quantity variation is such as to cause an increase in the time necessary for completion, ENGINEER shall ascertain the f acts and circumstances and make such adjustment for extending the completion date as in its sole judgment the findings warrant.
14. PROGRESS PAYMENTS
Each month ENGINEER will make an estimate in writing of the work performed by CONTRACTOR and the value thereof. From each progress estimate, five percent (5%) will be deducted and retained by CITY and the remainder of the progress estimate, less the amount of all previous payments since commencement of the work, will be paid to CONTRACTOR.
When CONTRACTOR ha s, in the judgment of ENGINEER , faithfully executed fifty percent (50%) or more of the value of the work as determined from the bid schedule, and if ENGINEER finds that satisfactory progress has been and is being made, CONTRACTOR may be paid such sum as will bring the payments of each month up to one hundred percent (100%) of the value of the work completed since the commencement of the PROJECT, as determined in its sole discretion by ENGINEER, less all previous payments and less all previous retained amounts.
CITY's final payment to CONTRACTOR, if unencumbered, or any part thereof unencumbered, shall be made thirty (30) days after the acceptance of the work and the filing of a Notice of Completion by CITY. Provided, however, that in the event of a dispute between CITY and CONTRACTOR, CITY may withhold from the final payment an amount not to exceed 150 percent of the value of any disputed amount of work. Payments shall be made on demands drawn in the manner required by law, each payment to be accompanied by a certificate signed by ENGINEER, affirming that the work for which payment is demanded has been performed in accordance with the terms of the Agreement and that the amount stated in the certificate is due under the terms of the Agreement.
Partial payments on the contract price shall not be considered as an acceptance of any part of the work.
15. WITHHELD CONTRACT FUNDS SUBSTITUTION OF SECURITIES
At the request and at the sole cost and expense of CONTRACTOR, who shall retain beneficial ownership and receive interest, if any thereon, CITY shall permit the substitution and deposit therewith of securities equivalent to the amount of any monies withheld by CITY to ensure performance under the terms of this Agreement.
16. AFFIDAVITS OF SATISFACTION OF CLAIMS
After the completion of the work contemplated by this Agreement, CONTRACTOR shall file with ENGINEER its affidavit stating that all workers and persons employed, all firms supplying materials and all subcontractors working upon the PROJECT have been paid in full and that there are no claims outstanding against the PROJECT for either labor or material, except certain items, if any, to be set forth in CONTRACTOR's affidavit covering disputed claims, or items in connection with Notices to Withhold, which have been filed under the provisions of the statutes of the State of California.
17. WAIVER OF CLAIMS
The acceptance by CONTRACTOR of the payment of the final certificate shall constitute a waiver of all claims against CITY under or arising out of this Agreement.
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18. 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 of Garden Grove, their 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 active 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.
19. INSURANCE
COMMENCEMENT OF WORK . CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by the C ITY. All insurance required by this Agreement shall contain a statement of obligation on the part of the carrier to notify the city of any material change, cancellation, or termination at least thirty (30) days in advance. A waiver of subrogation shall b e provided by the insurer for each policy waiving subrogation against City of Garden Grove , their officers, officials, employees, agents, 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 the CITY, Claims made and modified occurrence policies shall not be accepted for any policy. All Subcontractors shall be required to provide and maintain the same insurances as required of CONTRACTOR under this contract. CONTRACTOR shall be required to collect and maintain all required insurances from all Subcontractors.
CONTRACTOR is aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Wor kers’ 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.
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 of Garden Grove , their officers, officials, employees, agents, 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 the CITY, and shall issue a waiver of subrogation.
Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:
Additional Insured Endorsements, ongoing and products -completed operations, for the Commercial General Liability policy , including mobile equipment and not excluding XCU.
Endorsements shall designate City of Garden Grove, their officers, officials, employees, agents, 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 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. ( Form CG 20 26 07 04 & Form CG 20 37 07 04 or equivalent) ( Claims made and modified occurrence policies are not acceptable; Insurance 245
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companies must be acceptable to CITY and have a minimum A.M. Best Guide rating of A -, class VII or better, as approved by CITY).
An Additional Insured Endorsement for an Automobile Liability policy and shall designate City of Garden Grove, their officers, officials, employees, agents, 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 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 the CITY. (Form CA 20 48 02 99 or equivalent) ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide rating of A-, class VII or better, as approved by CITY).
A Loss Payee Endorsement for the Course of Construction policy designating the City of Garden Grove as Loss Payee. ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide rating of A-, class VII or better, as approved by CITY).
In the event any of CONTRACTOR’S underlying policies do not meet policy limits as required here in, CONTRACTOR shall provide the schedule of underlying polices for a follows form excess liability policy, state that the excess policy follows form on the insurance certificate, and an additional insured endorsement for the excess liability policy designating City of Garden Grove , their officers, officials, employees, agents, 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 the CITY, as additional insureds. ( Claims made and modified occurrence policies are not acceptable; Insurance companies must be acceptable to CITY and have a minimum A.M. Best Guide rating of A-, class VII or better, as approved by CITY).
For any claims related to this Project, the CONTRACTOR’s insurance coverage shall be primary insurance as respects City of Garden Grove, their officers, officials, employees, agents, 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 the CITY. Any insurance or self-insurance maintained by the City of Garden Grove, their officers, officials, employees, agents, 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 the CITY, shall be excess of the CONTRACTOR’s insurance and not contribute with it.
Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:
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 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):
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Workers’ Compensation As required by the State of
California.
Employer’s Liability
Not less than $1,000,000 per
accident for bodily injury or disease.
Commercial General Liability
(including on-going operations, products
- completed operations, and mobile
equipment, and not excluding XCU)
Not less than $5,000,000 per
occurrence for bodily injury,
personal injury and property
damage.
Automobile Liability, for all automobiles
including non-owned and hired vehicles
Not less than $2,000,000 combined
single limit for bodily injury and
property damage.
Course of Construction
Completed value of the project with
no coinsurance penalty provisions.
Follows Form Excess Liability
Required for any underlying policy
that does not meet the underlying
policy limits required herein.
If contractor maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher limits otherwise maintained by the CONTRACTOR.
CITY or its representatives shall at all times have the right to inspect and receive a certified copy of all said policies of insurance, including certificates and endorsements at CONTRACTORS sole cost and expense. CONTRACTOR shall pay the premiums on the ins urance hereinabove required.
20. CALIFORNIA PREVAILING WAGE LAW AND FEDERAL DAVIS-BACON ACT.
A. General Prevailing Rate. CITY has ascertained CONTRACTOR shall comply with all applicable requirements of Division 2, Part 7, Chapter 1 of the California Labor Code and all applicable federal requirements respecting the payment of prevailing wages. If there is a difference between the minimum wage rates predetermined by the Secretary of Labor and the prevailing wage rates determined by the Director of the Department o f Industrial Relations (DIR) for similar classifications of labor, the CONTRACTOR and its Subcontractors shall pay not less than the higher wage rate. The DIR will not accept lower State wage rates not specifically included in the Federal minimum wage determinations. This includes "helper" (or other classifications based on hours of experience) or any other classification not appearing in the Federal Wage determinations. Where Federal wage determinations do not contain the State wage rate determination otherwise available for use by the CONTRACTOR and Subcontractors, the CONTRACTOR and its Subcontractors shall pay not less than the Federal Minimum wage rate which most closely approximates the duties of the employees in question."
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B. 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 prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770 1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California.
C. Apprentices. 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; provided, however, that this requirement shall not apply if and/or to the extent that the Contract of the general CONTRACTOR, or the contracts of specialty contractors not bidding for work through a general or prime contractor involve less than thirty thousand dollars ($30,000.00).
D. 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 CONTRAC TOR 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
E. Calendar day and forty (40) hours in any one week in violation of said Article.
CONTRACTOR shall keep an accurat e 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.
F. Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing th e name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by 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 r ecords 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 Sect ion 1776, in general. CONTRACTOR shall comply with all of the provisions of Labor Code Section 1776, 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 pa yroll reports and cancelled checks for labors, every two weeks to the Engineer. Certified payroll and cancelled checks submittals are due one month after start of construction and every two weeks 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 ceased 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.
G. 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.
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H. 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).
I. 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.
21. TERMINATION
This Contract may be terminated in whole or in part in writing by the CITY in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by the CITY for its convenience in the manner provided for in subsections A and B below. If termination for default or convenience is effected by the CITY, an equi table 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. Upon receipt of a termination action, 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. Upon termination, the CITY may take over the work and may award another party an agreement to complete the work under this Contract.
A. Termination for Default.
If the CONTRACTOR refuses or fails to prosecute the work or any separable part thereof with such diligence as will ensure its completion within the time specified herein, or any authorized extension thereof, or fails to perform the work in a manner required by the Contract Documents and/or industry standards, or fails to complete such work within such time as required under the Contract Documents or, if the CONTRACTOR should be adjudged as bankrupt, or is otherwise deemed insolvent by CITY based on good cause and is unable to proceed with the work , or if the CONT RACTOR should make a general assignment for the benefit of creditors, or if a receiver should be appointed on account of insolvency, or if the CONTRACTOR files a petition to take advantage of any debtor’s act, or should any subcontractor violate any of the provisions of the Contract Documents, or if the CONTRACTOR should persistently or repeatedly refuse or fail, except in cases for which an authorized extension of time is provided, to supply enough properly skilled workers or proper materials to complete t he work in the time specified, or if the CONTRACTOR should fail to make prompt payment to subcontractors for material or labor, or if the CONTRACTOR should persistently disregard laws, or instructions given by CITY , or if the CONTRACTOR otherwise substanti ally fails to fulfill its obligations under the Contract Documents, CITY may, without prejudice to any other right or remedy, serve written notice upon the CONTRACTOR and Sureties of CITY’s intention to terminate the CONTRACTOR’s performance under the contract . Said notice shall contain the reasons for such intention to terminate the CONTRACTOR’s performance under the contract, and unless, within ten (10) days after the service of such notice, such violations cease and/or satisfactory arrangements for the corrections thereof have been made, the CITY may terminate CONTRACTOR’s performance under the contract and the CONTRACTOR shall not be entitled to receive any further payment until the work is completed.
In the event of any such termination, CITY shall serve written notice thereof upon the Surety and CONTRACTOR, and the Surety shall have the right to take over and perform the contract .
However, if the Surety, within five (5) days after the service of a notice of termination, does not give 249
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CITY written notice of its intention to take over and perform the contract, and if it serves such notice of its intent to take over and perform the contract and does not begin performance thereof within fifteen (15) days from the date of serving said notice, CITY may take over the work and prosecute the same to completion by contract or by any other method it may deem advisable for the account and at the expense of the CONTRACTOR, and the Sureties and/or CONTRACTOR shall be liable to CITY for any excess cost or other damage incurred by CITY thereby. If the Surety assumes the CONTRACTOR’s terminated work, it shall take the CONTRACTOR’s place in all respects for that part and shall be paid by CITY for all work performed by it in accordance with the terms of the Contract Documents. If the Surety assumes the entire contract, all money due the CONTRACTOR at the time of its default shall be payable to the Surety as the work progresses, subject to the terms of the contract.
CONTRACTOR hereby consents to assigning to CITY and/or CITY’s replacement contractor all subcontracts and other agreements of any and all subcontractors and/or suppliers that may be on the worksite and/or may be necessary to complete the work in the event of Termination for Default or Termination for Convenience, as set forth below. CONTRACTOR agrees to obtain, by way of a subcontract provision, the consent of each and every subcontractor and/or supplier for such assignment prior to the commencement of each such subcontractor’s and/or supplier’s work on the PROJECT.
In the event of such termination, the CONTRACTOR will be paid the actual amount due based on unit prices or lump sums Bid and the quantity of work completed at the time of termination, less damages caused to CITY by acts of the CONTRACTOR causing the termination, including but not limited to, all costs to CITY arising from professional services and attorneys' fees and all costs generated to insure or bond the work of substituted CONTRACT ORS or subcontractors utilized to complete the work, such excess shall be paid to the CONTRACTOR. If such costs exceed the unpaid balance, the CONTRACTOR shall pay the difference to CITY promptly upon demand. On failure of the CONTRACTOR to pay, the Surety shall pay on demand by CITY. Any portion of such difference not paid by the CONTRACTOR or Surety within thirty (30) days following the mailing of a demand for such costs shall earn interest at the maximum rate authorized by California law.
The CONTRACTOR and CITY agree that nothing in this section is intended to be or is a prevailing party clause as it pertains to attorney’s fees.
The foregoing provisions are in addition to and not in limitation of any other rights or remedies under law or in equity available to CITY.
If it is later determined by CITY that the CONTRACTOR had an excusable reason for not performing, such as a fire, flood, or other event which was not the fault of or was beyond the control of the CONTRACTOR, CITY , after setting up a new per formance schedule, may allow the CONTRACTOR to continue work , or treat the termination as a termination for convenience, and the rights and obligations of the parties shall be the same as if the termination had been issued for the convenience of CITY.
B. Termination for Convenience.
CITY may terminate the CONTRACTOR’s performance under the contract, either in whole or in part, at its own discretion or when conditions encountered during the work make it impossible or impracticable to proceed, or when CITY is prevented from proceeding with the contract by act of God, by law, or by official action of a public authority, or upon a determination that such termination is in the best interest and convenience of CITY, or whenever CITY is prohibited from completing the work for any reason. CITY shall provide no less than ten (10) days written notice of its intent to terminate the Contract for convenience and shall provide the CONTRACTOR with consultation with CITY prior to termination.
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1. Upon receipt of such written notice of termination, the CONTRACTOR shall:
a. Stop Work as specified in the written notice;
b. Terminate all orders and Subcontractors except as necessary to complete Work which is not terminated;
c. If directed in writing by CITY to do so, as sign all right, title and interest in subcontracts and materials in progress, in which case CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such Subcontractors, but in no event shall recovery by any CONTRACTOR include lost profits for uncompleted portions of Work;
d. Deliver or otherwise make available to CITY all data, Drawings, Specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process;
e. Settle outstanding liabilities and claims with the approval of CITY;
f. Complete performance of such part of the work as has not been terminated; and
g. Take such other actions as may be necessary, or as may be directed by CITY for the protection and preservation of the Project and/or property related to the contract.
2. Upon receipt of CITY’s written notice of termination for convenience, and within a period of 30 to 60 days, as determined by the Engineer at the time of termination, the CONTRACTOR shall submit to the Engineer a Termination Proposal which shall include, but is not limited to, the CONTRACTOR’s estimated costs to be incurred by the CONTRACTOR as a result of the termination for convenience, and as allowed by the Contract Documents, including all documentation to support such costs; the status of the Work at time of termination; the status of termination of the CONTRACTOR’s subcontractor(s) and supplier(s) agr eement(s) including the amount of each said agreement, amount paid under each agreement up to the date of termination, and the amount that currently remains due and owing under each agreement for work completed as of the date of termination, if any; a list , certified as to quantity and quality, of termination inventory not previously disposed of, excluding items authorized for disposition by the Engineer; and any other information and/or documentation as required by the CITY.
Upon receipt of the CITY’s writ ten notice of termination for convenience, the CONTRACTOR shall submit to the Engineer a request for final payment, pursuant to the requirements set forth in the contract. Such request shall be submitted promptly, but no later than sixty (60) days from the effective date of termination.
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3. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the contract at time of termination, including the following:
a. Any actual costs incurred by the CONTRACTOR for restocking charges;
b. The agreed upon price of protecting the work in any manner, if any, as directed by CITY;
c. The cost of settling and paying claims arising out of the termination of the work under subcontract agreements or orders wit h CITY’s approval, as specified above, exclusive of the of the amounts paid or payable on account of goods delivered or work furnished by subcontractor prior to the effective date of the termination; and
d. The contract price allocable to the portion of t he work properly performed or goods supplied by the CONTRACTOR as of the date of termination, as determined in accordance with the Contract Documents, reduced by any sums previously paid to the
CONTRACTOR.
4. CITY shall have the right to withhold any por tion or the whole of the final payment under this provision in the event there are any outstanding claims for compensation asserted by CITY against the CONTRACTOR, or by any third party against CITY which arises out of the CONTRACTOR’s work.
22. DISPOSITION OF PLANS ESTIMATES AND OTHER DOCUMENTS
CONTRACTOR agrees that upon completion of the work to be performed hereunder, or upon expiration or earlier termination of this Agreement, all original plans, specifications, drawings, reports, calculations, maps and other documents pertaining to this Agreement shall be delivered to CITY and become its sole property at no further cost.
23. NONASSIGNABILITY
CONTRACTOR shall not sell, assign, transfer, convey or encumber this Agreement, or any part hereof, or any right or duty created herein, without the prior written consent of CITY and the surety.
24. CITY EMPLOYEES AND OFFICIALS
CONTRACTOR shall employ no CITY official nor any regular CITY employee in the work performed pursuant to this Agreement. No officer or employee of CITY shall have any financial interest in this Agreement in violation of the California Government Code.
25. STOP NOTICES• RECOVERY OF ADMINISTRATIVE COSTS
CITY shall be entitled to all reasonable administrative costs and necessary disbursements arising out of the processing of Stop Notices, Notices to Withhold, or any similar legal document. This obligation shall be provided for in the labor and materials payment bond required of 252
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CONTRACTOR. CITY may charge an administrative fee of One Hundred Dollars ($100) for every Stop Notice filed in excess of two (2), regardless of whether or not CITY is named in an action to enforce such stop notices. CITY may set off any unreimbursed cost or expense so incurred against any sum or sums owed by CITY to CONTRACTOR under this Agreement.
26. NOTICES
Any notices, certificates, or other communications hereunder shall be given either by personal delivery or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses specified below; provided that CITY and CONTRACTOR, by notice given hereunder, may designate different addresses to which subsequent notices, certificates or other communications will be sent:
TO CITY: TO CONTRACTOR:
City of Garden Grove Hardy & Harper, Inc.
ATTN: Lesly Cantarero Attention: Michael Amundson, Vice President 11222 Acacia Parkway 32 Rancho Circle
Garden Grove, CA 92840 Lake Forest, CA 92630
(714) 741-5321 Phone (714) 444-1851 Phone
(714) 741-5578 Fax (714) 444-2801 Fax
27. SECTION HEADINGS
The titles, captions, section, paragraph, and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of maters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement.
28. IMMIGRATION
CONTRACTOR shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the Immigration Reform and Control Act of 1978 (8 USC Section 1324a) regarding employment verification.
29. ATTORNEY'S 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.
30. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal 253
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or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law.
31. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the State of California and venue shall be in Orange County.
32. DUPLICATE ORIGINAL
The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it.
33. CONSENT
Where CITYs consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be consent/approval to any subsequent occurrence of the same or any other transaction or event.
34. CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT
CONTRACTOR agrees to comply with all requirements and utilize fair employment practices in accordance with California Government Code Sections 12900 et seq.
35. SIGNATORIES
Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify CITY fully for any injuries or damages to CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.
36. ENTIRETY
The foregoing, and Exhibits "A" through "C" attached hereto, set forth the entire Agreement between the parties. No waiver or modification of this Agreement shall be valid unless in writing duly executed by both parties.
The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiations, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, 254
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inducement, promise, agreement, warranty, fact or circumstance not expressly set forth in this Agreement.
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Local Assistance Procedures Manual EXHIBIT A Required Federal-Aid Contract Language Exhibit 12-G
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FHWA-1273 -- Revised May 1, 2012
REQUIRED CONTRACT PROVISIONS
FEDERAL-AID CONSTRUCTION CONTRACTS
I. General
II. Nondiscrimination
III. Nonsegregated 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. Compliance with Governmentwide Suspension and Debarment Requirements
XI. Certification Regarding Use of Contract Funds for Lobbying
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 (excluding emergency contracts solely intended for debris removal). The contractor (or subcontractor) must insert this form in each subcontract and furt her require its inclusion in all lower tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services).
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.
Form FHWA-1273 must be included in all Federal-aid design-build 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). 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 bid proposal or request for proposal 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).
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.
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. The term Federal-aid highway does not include roadways functionally classified as local roads or rural minor collectors.
II. NONDISCRIMINATION
The provisions of this section related to 23 CFR Part 230 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 60, 29 CFR 1625- 1627, Title 23 USC Section 140, the Rehabilitation Act o f 1973, as amended (29 USC 794), Title VI of the Civil Rights Act of 1964, as amended, 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 60, and 29 CFR 1625 -1627. The contracting agency and the FHWA have the authority and the responsibility to ensure compliance with Title 23 USC Section 140, the Rehabilitation Act of 1973, as amended (29 USC 794), and Title VI of the Civil Rights Act of 1964, as amended, 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 230, 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 (28 CFR 35, 29 CFR 1630, 29 CFR 1625 -1627, 41 CFR 60 and 49 CFR 27) and orders of the Secretary of Labor as modified by th e 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 35 and 29 CFR 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:
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.
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, 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 selecti on for training, including apprenticeship, pre- apprenticeship, 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
256
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 who 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 pe rsonnel 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.
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 c ontractor.
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 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, national origin, age or disability.
The following procedures shall be followed:
a. The contractor will conduct periodic inspections of project sites to insure 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 corr ective 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).
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 fait h efforts to obtain the cooperation of such unions to increase opportunities for minorities and women. 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, 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 c ontractor 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, 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 257
Local Assistance Procedure Manual Exhibit 12-G
Required Federal-Aid Contract Language
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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 there under. 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 a nd Leasing of Equipment: The contractor shall not discriminate on the grounds of race, color, religion, sex, national origin, age or disability in the selection and retention of subcontractors, including procurement of materials and leases of equipment. T he 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 and 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. Assurance Required by 49 CFR 26.13(b):
a. The requirements of 49 CFR Part 26 and the State DOT’s U.S.
DOT-approved DBE program are incorporated by reference.
b. The contractor 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 contracting agency deems appropriate.
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 co ntractor 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 non -minority 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 non- minority 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.
III. NONSEGREGATED FACILITIES
This provision is applicable to all Federal -aid construction contracts and to all related construction subcontracts of $10,000 or more.
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, 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). The r equirements apply to all projects located within the right -of-way of a roadway that is functionally classified as Federal-aid highway. This excludes roadways functionally classified as local roads or rural minor collectors, which are exempt. Contracting agencies may elect to apply these requirements to other projects.
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
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 mechani cs.
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 parag raph 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 258
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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 ther efor 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, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification acti on 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 Wage and Hour Administrator for determination. The Wage and Hour
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) o f 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 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 fo r the meeting of obligations under the plan or program.
2. Withholding
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 p ayments 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 p ay 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
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 hour s 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 at
http://www.dol.gov/esa/whd/forms/wh347instr.htm or its success or 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:
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(i) That the payroll for the payroll period contai ns the information required to be provided under §5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under §5.5 (a)(3)(i) of Regulations, 29 CFR part 5, 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 Regulations, 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 section 1001 of title 18 and section 231 of title 31 of the United States Code.
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 reco rds 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.
4. Apprentices and trainees
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 fri nge 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). 260
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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. 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.
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 subc ontractor as provided in 29 CFR 5.12.
8. Compliance with Davis-Bacon and Related Act requirements.
All rulings and interpretations of the Davis -Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract.
9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the 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 t heir representatives.
10. Certification of eligibility.
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
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.
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 subcontract or 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 of $10 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.
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 federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2.) of this section.
4. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (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.
VI. SUBLETTING OR ASSIGNING THE CONTRACT
This provision is applicable to all Federal-aid construction contracts on the National Highway System.
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 befor e 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” 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:
(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 ex clude individual employees from work on the project; and
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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 contra ct as a whole and in general are to be limited to minor components of the overall contract.
2. The contract amount upon which the requirements set forth in paragraph (1) of Section VI is computed includes the cost of material and manufactured products which are to be purchased or produced by the contractor under the contract provisions.
3. 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 accorda nce 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.
5. The 30% self-performance requirement of paragraph (1) is not applicable to design-build contracts; however, contracting agencies may establish their own self-performance requirements.
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 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.
2. It is a condition of this contract, and shall be mad e 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 1926)
promulgated by the Secretary of Labor, in accordance with Section 107 of the Contract Work Hours and Safety Standards A ct (40 U.S.C. 3704).
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 FHWA -1022 shall be posted on each Federal-aid highway project (23 CFR 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 conn ection 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 1, 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
This provision is applicable to all Federal -aid construction contracts and to all related subcontracts.
By submission of this bid/proposal or the execution of this contract, or subcontract, as appropriate, the bidder, proposer, Federal -aid construction contractor, or subcontractor, as appropriate, will be deemed to have stipulated as follows:
1. That any person who is or will be utilized in the performance of this contract is not prohibited from receiving an award due to a violation of Section 508 of the Clean Water Act or Section 306 of the Clean Air Act.
2. That the contractor agrees to include or cause to be included the requirements of paragraph (1) of this Section X in every subcontract, and further agrees to take such action as the contracting agency may direct as a means of enforcing such requirements.
X. CERTIFICATION REGARDING DEBARMENT, SUSPENSION,
INELIGIBILITY AND VOLUNTARY EXCLUSION
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This provision is applicable to all Federal -aid construction contracts, design-build contracts, subcontracts, lower-tier 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.
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.
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.
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.
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 and 1200. “First Tier Covered Transactions” refers to any covered transaction between a grantee or subgrantee 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 grantee or subgrantee 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, d eclared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction.
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.
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. 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 Excluded Parties List System website
(https://www.epls.gov/
), which is compiled by the General Services
Administration.
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. 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) 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;
(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; 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.
b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.
2. 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)
a. By signing and submitting this proposal, the prospective lower tier 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. 263
Local Assistance Procedure Manual Exhibit 12-G
Required Federal-Aid Contract Language
- 70 -
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.
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 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 grantee or subgrantee 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 grantee or subgrantee 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 Tie r 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.
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.
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 Excluded Parties List System website
(https://www.epls.gov/
), which is compiled by the General Services
Administration.
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 debarmen t.
* * * * *
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 is pres ently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.
2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall 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 20).
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 disclos e accordingly.
264
IN WITNESS THEREOF, these parties have executed this Construction Agreement on the day and year shown below.
Date: "CITY"
CITY OF GARDEN GROVE
By:
Lisa Kim
City Manager
ATTEST:
City Clerk
Date:
"CONTRACTOR"
HARDY & HARPER, INC. .
CONTRACTOR'S State License No. 215952
(Expiration Date: 12/31/2025 )
By:
Title:
Date:
APPROVED AS TO FORM:
______________________________
Garden Grove City Attorney
If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.
Date__________________________
265
72 EXHIBIT B
(Form HUD-4010, the Federal Labor Standards Provision of the United States) Federal Labor Standards Provisions U.S. Department of Housing and Urban Development Office of Labor Relations
1 Applicability
The Project or Program to which the construction work covered by this contract pertains is being assisted by the United States of America and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions applicable to such Federal assistance.
(i) Minimum Wages. 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 I(b)(2) of the Davis -Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of 29 CFR
)(iv); also, regular contributions made or costs
incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs, which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period Such laborers and mechanics shall be paid the appropriat e 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.
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 addi tional classification and wage rates conformed under 29 CFR 5.5(a)(1)(ii) and the Davis -Bacon poster (WH1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible, place where it can be easily seen by the workers.
(ii) (a) Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. HUD shall approve an additional classification and wage rate and fringe benefits therefor only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and
(2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. (b) If the contractor and the laborers and mechanics t o be employed in the classification (if known), or their representatives, and HUD or its designee 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 HUD or its designee fo the Administrator of the Wage and 266
73 Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, D.C. 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise HUD or its designee or will notify HUD or its designee within the 3D-day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB control n umber 1215* 0140.)
(c) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and HUD or its designee do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), HUD or its designee shall refer the questions, including the views of all interested parties and the recommendation of HUD or its designee, to the Administrator for determination. The Administrator, or an authorized rep resentative, will issue a determination within 30 days of receipt and so advice HUD or its designee or will notify HUD or its designee within the 30 -day period that additional time is necessary. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140.) (d) The wage rate (including fringe benefits where appropriate) determined pursuant to subparagraphs (l)(ii)(b) or (c) of this paragraph, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
(iv) If the contractor does not make payments to a trustee of the wages of any laborer or mechanic the amount of any costs reason ably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (Approved by the Office of Management and Budget under OMB Control Number 1215-0140.)
2. Withholding. HUD or its designee s hall 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 th e work, all or part of the wages required by the contract, HUD or its designee may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guara ntee of funds until such violations have ceased. HUD or its designee may, after written notice to the contractor, disburse such amounts withheld for and on account of the contractor or subcontractor to the respective employees to whom they are due. The Com ptroller General shall make such disbursements in the case of direct Davis-Bacon Act contracts.
3. (i) Payrolls and basic records. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work 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 (i ncluding rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
267
74 Section I(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)(l)(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 I(b)(2)(B) of th e Davis Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the
laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (Approved by the Office of Management and Budget under OMB Control Numbers 1215-0140 and 1215- 0017.)
(ii) (a) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to HUD or its designee if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant sponsor, or owner, as the case may be, for transmission to HUD or its designee. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CF R
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 at htto://www. dol. aov/esa/whdJforms/wh347instr.htm or its successor 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 HUD or its designee if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant sponsors or owner, as the case may be, for transmission to HUD or its designe e, the contractor, 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 subparagraph for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to HUD or its designee. (Approved by the Office of Management and Budget under OMB Control Number 1215-01 49.) (b) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under 29 CFR 5.5 (a)(3)(ii), the appropriate information is being maintained under 29 CFR
5.5(a)(3)(i), and that such information is correct and complete;
(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in 29 CFR Part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. 268
75 (c) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH- 347 shall satisfy the requirement for submission of the "Statement of
Compliance" required by subparagraph A.3.(II)(b).
(d) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under Section 1001 of Title 18 and Section 231 of Title 31 of the United States Code.
(iii) The contractor or subcontractor shall make the records required under subparagraph A.3 - (i) available for inspection, copying, or transcription by authorized representatives of HUD or its designee or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, HUD or its designee may, after written notice to the contractor, sponsor, applicant or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
4. Apprentices and Trainees.
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.
(i) Trainees- Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees• shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved-
269
76 (ii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under 29 CFR Part 5 shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30.
5. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR Part 3 which are incorporated by reference in this contract
6. Subcontracts. The contractor or subcontractor will insert in any subcontracts the clauses contained in subparagraphs I through 11 in thi s paragraph A and such other clauses as HUD or its designee may by appropriate instructions require, and a copy of the applicable prevailing wage decision, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in this paragraph.
7, Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be gr ounds for
termination of the contract and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.1 2.
8. Compliance with Davis -Bacon and Related Act Requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR Parts 1, 3, and 5 are herein incorporated by reference in this contract
9. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract.
Such disputes shall be resolved in accordance with the procedures of the 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 subcontract ors) and HUD or its designee, the U.S. Department of Labor or the employees or their representatives.
10. (i) Certification of Eligibility. By entering into this contract the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24.
(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of Section 3(a) of the Davis -Bacon Act or 29 CFR or
to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Part 24. (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C - 1001 . Additionally, U.S - Criminal Code, Section 1 01 0, Title 1 8, U.S.Cs, "Federal Housing Administration transactions", provides in part: "Whoever, for the purpose of influencing in any way the action of such Administration. makes, utters or publishes any statement knowing the same to be false shall be fined not more than $5,000 or imprisoned not more than two years, or both-
I l . C omplaints, Proceedings, or Testimony by Employees. No laborer or mechanic to whom the wage, salary, or other labor standards provisions of this Contract are applicable shall be discharged or in any other manner discriminated against by the Contractor or an y subcontractor because such employee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer.
B. Contract Work Hours and Safety Standards Act The provisions of this paragraph B are applicable where the amount of the prime contract exceeds $100,000 - As used in this paragraph, the terms "laborers" and "mechanics" include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which the indiv idual is 270
77 employed on such work to work in excess of 40 hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one -half times the basic rate of pay for all hours worked in excess of 40 hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in subparagraph (1) of this paragraph, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in subparagraph (1 ) of this paragraph, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of 40 hours without payment of the overtime wages required by the clause set forth in sub paragraph (1) of this paragraph.
(3) Withholding for unpaid wages and liquidated damages. HUD or its des ignee 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 cont ract or any other Federal
contract with the same prime contract, or any other Federally-assisted contract subject to the Contract Work Hours and Safety Standards Act which is held by the same prime contractor such sums as may be determined to be necessar y to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided jn the clause set forth in subparagraph (2) of this paragraph.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontr acts the clauses set forth in subparagraph (I) through (4) of this paragraph and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontract or or lower tier subcontractor with the clauses set forth in subparagraphs (I) through (4) of this paragraph.
C. Health and Safety. The provisions of this paragraph C are applicable where the amount of the prime contract exceeds $100,000.
(1) No laborer or mec hanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dangerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regulation.
(2) The Contractor shall comply with all regulations issued by the Secretary of Labor pursuant to Title 29 Part 1926 and failure to comply may result in imposition of sanctions pursuant to the Contract Work Hours and Safety Standards Act, (Public Law 91 -54, 83 stat 96). 40 USC 3701 et seq.
(3) The contractor shall include the provisions of this paragraph in every subcontract so that such provisions w ill be binding on each subcontractor. The contractor shall take such action with respect to any subcontractor as the Secretary of Housing and Urban Development or the Secretary of Labor shall direct as a means of enforcing such provisions 271
78 EXHIBIT C
STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY
CONSTRUCTION CONTRACT SPECIFICATIONS
(EXECUTIVE ORDER 11246)
1. As used in these specifications:
a. "Covered area" means the geographical area described in the solicitation from which this contract resulted.
b. "Director" means Director, Office of Federal Contract Act Compliance Program, United States Department of Labor, or any person to whom the Director delegates authority.
c. "Employer identification number" means the Federal social security number used on the Employer' s Quarterly Federal Tax Return, U.S. Treasury Department Form 941.
d. "Minority" includes:
(i) Black (all persons having origins in any of the black African racial groups
not of Hispanic origin)
(ii) Hispanic (all persons of Mexican, Puerto Rican, Cuban Central or South American, or other Spanish Culture or origin, regardless of race) (iii) Asian and Pacific Islander (all persons having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands)
(iv) American Indian or Alaskan Native (all groups having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification)
2. Whenever the Contractor or any Subcontractor at any tier subcontracts a portion of the work involving any construction trade, it must physically include in each subcontract in excess of $10,000 the provisions of these specifications and the Notice that contains the applicable goals for minority and female participation and which is set forth in the solicitations from which the contract resulted.
3. If the Contractor is participating (pursuant to 41 CFR Part 60 -4.5) in a Hometown Plan approved by the U.S. Department of Labor in the covered area either individually or through as association, its affirmative action obligations on all work in the Plan area (including goals and timetables) must be in accordance with that Plan for those trades which have unions participating in the Plan. Contractors must be able to demonstrate their participation in and compliance with the provisions of any such Hometown Plan. Each Contractor or Subcontractor participating in an approved Plan is individually required to comply with its obligations under the Equal Employment Opportunity (EEO)
Clause, and to make a good faith effort to achieve
each goal under the Plan in each trade in which it has employees. The overall good faith performance by other Contractors or Subcontractors toward a goal in an approved Plan does not excuse any covered Contractors or Subcontractors failure to take good faith efforts to achieve the Plan goals and timetables. 272
79 4. The Contractor must implement the specific affirmative action standards provided in Section VIl, Paragraphs 7a through 7p of these specifica tions. The goals set forth in the solicitation from which this contract resulted are expressed as percentages of the total hours of employment and training of minority and female tuition that the Contractor should reasonably be able to achieve in each cons truction trade in which it has employees in the covered area. Covered construction contractors performing construction work in geographical areas where they do not have a Federal or federally assisted construction
contract must apply the minority and fem ale goals
established for the geographical area where the work is being performed. Goals are published periodically in the Federal Register in notice of and such notices may be obtained from any Office of Federal Contract Compliance Programs or from Federa l procurement Contracting Officers. The Contractor is expected to make substantially uniform progress toward meeting its goals in each craft during the period specified.
5. Neither the provisions of any collective bargaining agreement, nor the failure by a union with whom the Contractor has a collective bargaining agreement, to refer either minorities or women will excuse the Contractors obligations under these specifications, Executive Order 11246, nor the regulations promulgated pursuant thereto.
6. In order for the nonworking training hours of apprentices and trainees to be counted in meeting the goals, apprentices and trainees must be employed by the Contractor during the training period and the Contractor must have made a commitment to employ the apprentices and trainees at the completion of their training, subject to the availability of
employment opportunities. Trainees must be trained pursuant to training programs approved by the U.S. Department of Labor.
7. The Contractor must take specific affirmative actio ns to ensure equal employment opportunity. The evaluation of the Contractors compliance with these specifications must be based upon its effort to achieve maximum results from its actions. The Contractor must document these efforts fully and must implement affirmative action steps at least as extensive as the following:
a. Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites and in all sites at which the Contractors employees are assigned to work. The Contractor, where possible, will assign two or more women to each construction project. The Contractor must specifically ensure that all foremen, superintendents, and other onsite supervisory personnel are aware of and carry out the Contractor's obligations to maint ain such a working environment, with specific attention to minority or female individuals working at such sites or in such facilities.
b. Establish and maintain a current list of minority and female recruitment sources, provide written notification to minorit y and female recruitment sources and to community organizations when the Contractor or its unions have employment opportunities available, and maintain a record of the organization's responses.
c. Maintain a current file of the names, addresses, and telephone numbers of each minority and female off -the-street applicant; and minority and female referral from a union, a recruitment source or community organization; and of what action was taken with respect to each such individual. If such individual was sent to the union hiring hall for referral and was not referred back to the Contractor by the union or, if referred, not employed by the Contractor; this must be documented in the file with the reason therefor, along with whatever additional actions the Contractor may have taken.
273
80 d. Provide immediate written notification to the director when the union or unions with which the Contractor has a collective bargaining agreement have not referred to the Contractor a minority person or woman sent by the Contractor or when t he Contractor has other information that the union referral process had impeded the Contractor's efforts to meet its obligations. e. Develop on-the-job training opportunities or participate in training programs for the area that expressly includes minorities and women, including upgrading programs and apprenticeship and trainee programs relevant to the Contractors employment needs, especially those programs funded or approved by the Department of Labor. The Contractor must provide notice of these programs to the sources compiled under Section VII 7b above. f. Disseminate the Contractor's EEO policy by providing notice of the policy to unions and training programs and requesting their cooperation in assisting the Contractor in meeting its EEO obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; specific review of the policy with all management personnel and with all minority and female employees at least once a year; and by posing the company EEO policy on bulletin boards accessible to all employees at each location where construction work is performed.
Review, at least annually, the company's EEO policy and affirmative action obligations under these specifications with all employees having any responsible for hiring, assessment, layoff, termination, or their employment decisions, including specific review of these items with onsite supervisory personnel such as superintendents, general foreman etc., prior to the initiation of construction work at any job site. A written record must be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and disposition of the subject matter. h. Disseminate the Contract's EEO policy externally by including it in any advertising in the news media, specifically including minority and female news media, and providing written notification to and discussing the Contractor's EEO policy with other contractors and subcontractors with whom the Contractor does or anticipates doing business.
i. Direct its recruitment efforts, both oral and written, to minority, female, and community organizations: to schools with minorities and female students, and to minority and female recruitment and training organizations serving the Contractor's recruitment area and employment needs. Not later than one month prior to the date for the acceptance of the applications for apprenticeship or other, training by any recruitment sources, the C ontractor must send written notification to organizations such as the above, describing the openings, screening procedure, and tests to be used in the selection process.
j. Encourage present minority and female employees to recruit other minority persons and women and, where reasonable, provide after school, summer, and vacation employment to minority and female youth both on the site and in other areas of a Contractor’s workforce.
k. Validate all tests and other selection requirements where there is an obligation to do so under 41 CFR Part 60-3.
1. Conduct, at least annually, an inventory and evaluation at least of all minority and female personnel for promotional opportunities and encourage these 274
81 employees to seek or to prepare for, through appropriate training, etc., such opportunities.
m. Ensure that seniority practices, job classification work assignments, and other personnel practices, do not have a discriminatory effect by continually monitoring all personnel and employment related activities to ensure that the EEO policy and the Contractor's obligations under these specifications are being carried out.
n. Ensure that all facilities and company activities are non -segregated except that separate or single -user toilet and necessary changing facilities must b e provided to assure privacy between the sexes.
o. Document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female c ontractor associations and other business associations.
p. Conduct a review, at least annually, of all supervisors' adherence to and performance under the Contractor's EEO policies and affirmative action obligations.
8. Contractors are encouraged to participate in voluntary associations that assist in fulfilling one or more of the affirmative action obligations (Section VIl 7a through 7p). The efforts of a contractor association, joint contractor -union, contractor - community, or other share group of which the Con tractor is a member and participant, may be asserted as fulfilling any one or more of its obligations under Section VIl 7a through 7p of these specifications provided that the Contractor actively participates in the group, makes every effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures that the concrete b enefits of the program are reflected in the Contractors minority and female workforce participation, makes a good faith effort to meet its individual goals and timetables, and can provide access to documentation which demonstrates the effectiveness of acti ons taken on behalf of the Contractor. The obligation to comply, however, is the Contractor's and failure of such a group to fulfill an obligation will not be a defense for the Contractor's noncompliance.
9. A single goal for minorities and a separate single goal for women have been established. The Contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and nonminority. Consequently, the Contractor may be in violation of the Executive order if a particular group is employed in a substantially disparate manner (for example, even though the Contractor has achieved its goals for women generally, the Contractor may be in violation of the Executive order if a specific minority group of women is underutilized).
10. The Contractor must not use the goals and timetables of affirmative action standards to discriminate against any person because of race, color, religion, sex, or national origin.
11. The Contractor must not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 1 1246.
12. The Contractor must carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs . Any Contractor who fails to 275
82 carry out such sanctions and penalties will be in violation of these specifications and Executive Order 11246, as amended.
13. The Contractor must designate a responsible official to monitor all employment related
activity to en sure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government, and to keep records. Records must at least include for each employee the name, address, telephone numbers, cons truction trade, union affiliation if any, employee identification number when assigned, social security number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records must be maintained in an easy understandable and retrievable form; however, to the degree that existing records satisfy this requirement, Contractors will not be required to maintai n separate records.
14. The Contractor, in fulfilling its obligations under these specifications, must implement specific affirmative action steps, at least as extensive as those standards prescribed in Section VIl 7, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor fails to comply with the requirements of the Executive order, the implementing regulations, or these specifications, the director will proceed in accordance with 41 CFR Section 604.8.
15. Nothing herein provided will be construed as a limitation upon the application of other laws that establish different standards of compliance or upon the application of requirements for hiring of local or other area residents (e.g., those under the Public Works Employment Act of 1977 and the Community Development Block Grant Program).
276
83 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:
L icense 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 , 2025, wi th th e CITY OF GARDEN GROVE for 2025 RESIDENTIAL STREETS IMPROVEMENTS, CITY PROJECT NO. CP1446000.
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. 277
84 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)
City of Garden Grove 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:
278
85 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:
L
icense 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 ________________, 2025, wi th the CITY OF GARDEN GROVE for 2025 RESIDENTIAL STREETS IMPROVEMENTS, CITY PROJECT NO. CP1446000.
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 sam e 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. 279
86 LABOR AND MATERIAL BOND (Continues)
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)
City of Garden Grove 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:
280
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.
(7) The owner shall have a right to draw upon the securities in the event of default by the contractor. Upon two days' written notice to the escrow agent from the owner of the default, the 281
escrow agent shal l 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
282
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 Dated:
Title/Title
Approved as to Form
City Attorney
283
Item 225/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 6/24/2025
Subject: Award of contracts to All American Asphalt, Calmat Co DBA Vulcan Materials Company and R.J. Noble Company for asphalt products on an as-needed basis. (Cost: $1,300,000) (Action Item)
OBJECTIVE
For the City Council to award contracts to: 1) All American Asphalt; 2) Calmat Co DBA Vulcan Materials Company, Western Division; and 3) R.J. Noble Company, for asphalt products “will- call” and delivery services, on an as-needed basis.
BACKGROUND
The City has a continual and growing need for asphalt and related supplies to be delivered to various job sites throughout the City for on -going street improvements. It is common for projects to overlap timelines which then cause a delay when the City’s contracted vendor has a full schedule. These instances are not ideal due to the time and risk associated with quoting individual jobs to vendors; therefore, it is necessary for the City to contract with three asphalt providers to meet the City’s needs. In accordance with public procurement requirements, the City issued a formal bid solicitation for asphalt material supply.
Initially, the City received only one bid from All American Asphalt, which was insufficient for a competitive award process. As a result, staff re -issued the solicitation to encourage additional participation. Upon rebidding, the City received responses from three (3) qualified vendors: All-American Asphalt, Calmat Co. DBA Vulcan Materials Company, Western Division and R.J. Noble Company.
These three (3) local vendors are close in proximity to provide the City with reliable hot-mix asphalt at the required temperature on an as-needed basis.
DISCUSSION
IFB No. S-1364-A was issued on April 23, 2025 and three (3) bids were received and opened on May 9, 2025. All bids were reviewed and were found to be responsive.
284
Item 225/2025
The contract amounts were ranked by the lowest to highest bidder for asphalt products and the contractor’s ability to meet the City’s needs and guarantee pricing for the one-year period of the contract.
The numbers below represent the aggregate tabulation of all eleven (11) bid items (Attachment 1) for all three (3) separate companies and was used to determine the lowest bidder. The bid results are as follows:
Company Aggregate Amount
(Bid Items)
All American Asphalt $930.12
Calmat Co DBA Vulcan Materials Company $1,192.04
RJ Noble Company $1,285.36
FINANCIAL IMPACT
Specific contract amounts for each vendor were based on cost efficiency (lowest bidder received highest contract amount) and projected contract use. The three (3) combined contracts will not exceed $1,300,000 during Fiscal Year 2025-2026. Funding has been allocated in the Public Works Department’s FY2025-26 adopted operating budget.
RECOMMENDATION
It is recommended that the City Council:
Award a one-year term contract to: 1) All American Asphalt in the amount of $600,000; 2) Calmat Co. DBA Vulcan Materials Company, Western Division in the amount of $500,000; and 3) R.J. Noble Company in the amount of $200,000, to provide asphalt products on an as-needed basis; and
Authorize the City Manager, or designee, to execute each contract on behalf of the City and make minor modifications as needed thereto.
By: Raul Leyva, Public Work Supervisor
ATTACHMENT(S)
1. Bid Items List
2. All American Asphalt Agreement
3. Calmat Co DBA Vulcan Materials Company Agreement
4. R.J. Noble Company Agreement
285
Item # Section Description UOM QTY
All
American
Asphalt
Vulcan
Materials
Co
R.J. Noble
Company
1 Asphalt Products
Bulk Asphalt PG
64-10, 3/4 Fine--
Delivery (Include
all fees) LOT 1 $102.83 $133.08 $149.25
2 Asphalt Products
Bulk Asphalt PG
64-10, 3/4 Fine--
Will Call LOT 1 $92.35 $119.33 $109.25
3 Asphalt Products
Bulk Asphalt PG
64-10, 3/8 Fine--
Delivery (Include
all fees) LOT 1 $112.83 $138.46 $154.64
4 Asphalt Products
Bulk Asphalt PG
64-10, 3/8 Fine--
Will Call LOT 1 $102.35 $124.71 $114.64
5 Asphalt Products
Bulk Asphalt PG
64-10, 1/2 --
Delivery (Include
all fees) LOT 1 $102.83 $133.08 $149.25
6 Asphalt Products
Bulk Asphalt PG
64-10, School Mix
-- Will Call LOT 1 $110.35 $124.71 $114.64
7 Asphalt Products
Bulk Asphalt SC
800, Cold Mix --
Will Call LOT 1 $113.35 $124.71 $163.63
8 Asphalt Products 3/4IN CL 2 Base LOT 1 $10.40 $42.75 $5.93 9 Asphalt Products
Bulk Asphalt SC
800, Cold Mix --
Delivery (Include
all fees) LOT 1 $123.83 $138.46 $193.63
10 Asphalt Products
SSIH Emulsion
Tack- Bulk GAL 1 $6.50 $0.00 $21.75
11 Asphalt Products
SSIH Emulsion
Tack- 5-Gal
Bucket EA 1 $52.50 $112.75 $108.75
TOTAL $930.12 $1,192.04 $1,285.36
$77$&+0(17
286
1 CONTRACT FOR:
(Asphalt Supply for Will Call and Delivery Services)
THIS AGREEMENT is made this day of , 2025, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and All American Asphalt, herein after referred to as “CONTRACTOR”.
RECITALS
The following recitals are a substantive part of this Agreement:
1. This Agreement is entered into pursuant to Garden Grove City Council authorization, dated ___________________.
2. CITY desires to utilize the services of CONTRACTOR to: Provide Asphalt Products for Will Call and Delivery to Various Job Locations in the City of Garden Grove per the bid specifications, Attachment “A”, at the agreed upon delivery date and time, and per IFB S-1364.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Term and Termination. The term of the agreement shall be from July 1, 2025 through June 30, 2026. This agreement may be terminated by the CITY without cause. In such event, the CITY will compensate CONTRACTOR for product supplied to date in accordance with Bid Form which is attached as Attachment “B” and is hereby incorporated by reference. CONTRACTOR is required to present evidence to support product supplied.
2. Services to be Provided. The services to be performed and equipment to be provided by CONTRACTOR shall consist of Provide and Deliver asphalt and related products to the City of Garden Grove per Attachment ”B”, which is incorporated herein by reference.
3. Compensation. CONTRACTOR shall be compensated as follows:
3.1 AMOUNT. Total Compensation under this agreement shall not exceed (NTE) amount of Six Hundred Thousand Dollars ($600,000.00), payable in arrears and in accordance with bid form in Attachment “B”.
Unless expressly provided otherwise, all prices and fees specified in Attachment “B”, attached hereto and incorporated herein by reference, are firm and shall not be subject to change without the written approval of City. No extra charges of any kind will be allowed unless specifically agreed to in writing by authorized representative. The total price shall include (i) all federal, state and local sales, 287
2 use, excise, privilege, payroll, occupati onal and other taxes applicable to the Goods furnished to City hereunder; and (i i) all charges for packing, freight and transportation to destination.
3.2 Payment. For asphalt delivered under this Agreement, payment shall be made per invoice for asphalt delivered.
3.3 Records of Expenses. CONTRACTOR shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement.
These records will be made available at reasonable times to CITY
3.4 Termination. CITY and CONTRACTOR shall have the right to terminate this agreement, without cause, by giving thirty (30) days written notice of termination. If the Agreement is terminated by CITY, then the provisions of paragraph 3 would apply to that portion of the work completed.
4. Insurance requirements.
4.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by the CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify the CITY of any material change, cancellation, or termination at least thirty (30) days in advance. The insurers shall waive their rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.
4.2 WORKERS COMPENSATION INSURANCE. During the duration of this Agreement, CONTRACTOR and all subcontractors shall maintain Workers Compensation Insurance in the amount and type required by law, if applicable. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.
4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain the following insurance for the duration of this Agreement:
(a) Commercial general liability in the amount of $2,000,000 per occurrence; coverage to include XCU (claims made and modified occurrence policies are not acceptable ); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY. Endorsements for primary and non-contributory.
(b) Automobile liability in the amou nt of $2,000,000 combined single limit; Policy must be endorsed to delete pollution exclusion. (claims made and modified occurrence policies are not acceptable ); Insurance companies must be accept able to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.
288
3 (c) Automobile pollution in an amou nt of $2,000,000 per occurrence; (claims made and modified oc currence policies are not
acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.
(d) Excess liability, following form, co verage shall be provided for any underlying policy that does not meet the insurance requirements set forth herein (claims made and modified occurrence policies are not acceptable). Insurance companies must be acceptable to CITY and have a Best’s Guide Rating of A-Class VII or better, as approved by the CITY.
An Additional Insured Endorsement, ongoing and completed operations, for the policy under section 4.3 (a) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR.
CONTRACTOR shall provide to CITY proo f of insurance and endorsement forms that conform to city’s requirements, as approved by the CITY.
An Additional Insured Endorsement for the policy under section 4.3 (b) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for automobiles owned, leased, hired, or borrowed by the CONTRACTOR. CONTRACTOR shall provid e to CITY proof of insurance and endorsement forms that conform to CITY ’s requirements, as approved by the CITY.
MCS 90 Endorsement for the policy under section 4.3 (c) shall designate CITY, its officers, officials, employees, agents , and volunteers as additional insureds.
CONTRACTOR shall provide to CITY proo f of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.
An Additional Insured Endorsement for the policy under section 4.3 (d) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds under the excess liability policy. CONTRACTOR shall provide to CITY proof of insurance stating the excess liability policy follows form, additional insured endorsement forms, and the schedule of underlying policies with policy numbers that conform to CI TY’s requirements, as approved by the CITY. Information for the excess policy only needs to be provided if the underlying policies do not meet the policy limits set forth herein.
For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents, or volunteers shall by excess of the CONTRACTOR’s insurance and shall not contribute with it.
289
4 If CONTRACTOR maintains higher insu rance limits than the minimums shown above, CONTRACTOR shall provide covera ge for the higher insurance limits otherwise maintained by the CONTRACTOR.
5. Non-Liability of Officials and Employees of the CITY. No official or employee of CITY shall be personally liable to CONTRACTOR in the event of any default or breach by CITY, or for any amount which may become due to CONTRACTOR.
6. Non-Discrimination. CONTRACTOR covenants there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement.
7. Independent Contractor. It is agreed to that CONTRACTOR shall act and be an independent contractor and not an agent or employee of the CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees.
8. Compliance with Law. CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.
9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process.
a. (Address of Contractor)
All American Asphalt
Attention: Edward J. Carlson, Vice President
400 E. Sixth Street
Corona, CA 92879
b. (Address of CITY) (with a copy to):
City of Garden Grove Garden Grove City Attorney
11222 Acacia Parkway 11222 Acacia Parkway
Garden Grove, CA 92840 Garden Grove, CA 92840
10. CONTRACTOR'S PROPOSAL . This Agreement shall include CONTRACTOR’S bid form, ATTACHME NT “B” hereto, which shall be incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.
11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement.
12. Familiarity with Work. By executing this Agreement, CONTRACTOR warrants that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) 290
5 it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY of this and shall not proceed, except at CONTRACTOR'S risk, until written instructions are received from CITY.
13. Time of Essence. Time is of the essence in the performance of this Agreement.The Supplier must immediately notify CITY in writing any time delivery is behind schedule or may not be completed on schedule. In addition to any other rights City may have under this Agreement or at law, Supplier shall pay City the sum of $100.00 per item of Goods for each calendar day for which the item of Goods is unavailable beyond the scheduled delivery date(s) specified in Attachment “B”.
14. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of CONTRACTOR, its principals and employees were a substantial inducement for CITY to enter into this Agreement. CONTRACTOR shall not contract with any other entity to perform the services required without written approval of the CITY. This Agreement may not be assigned voluntarily or by operation of law, without the prior written approval of CITY. If CONTRACTOR is permitted to subcontract any part of this Agreement, CONTRACTOR shall be responsible to CITY for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. All persons engaged in the work will be considered employees of CONTRACTOR. CITY will deal directly with and will make all payments to CONTRACTOR.
15. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the parties are formally bound.
16. Prevailing Wages. The CITY has been advised that the Prevailing Wages Law applies to the work. CONTRA CTOR shall be responsible for CONTRACTOR's compliance in all respects with the prevailing wage rates to all the laborers involved, and with California Labor Code Section 1770 et seq., including the keeping of all records required by the provisions of Labor Code Section 1776 and the implementing administrative regulations. The CITY shall be a third party beneficiary of the forgoing covenant with rights to enforce the same as against the CONTRACTOR.
17. Indemnification. CONTRACTOR agrees to protect, defend, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or in any way connected with performance of the Agreement by CONTRACTOR, CONTRACTOR'S agents, officers, employees, subcontractors, or independent contractors hired by CONTRACTOR. The only exception to CONTRACTOR'S 291
6 responsibility to protect, defend, and hold harmless CITY, is due to the sole negligence of CITY, or any of its elective or appointive boards, officers, agents, or employees.
This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR.
18. Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefor by the Garden Grove City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the CITY.
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292
7 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.
Date:
ATTESTED:
"CITY"
CITY OF GARDEN GROVE
By:
City Manager
City Clerk
Date:
"CONTRACTOR"
All American Asphalt
By:
Name:
Title:_
Date:
Tax ID No.
APPROVED AS TO FORM:
Contractor’s License:
Expiration Date:
Garden Grove City Attorney
Date
If CONTRACTOR is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY.
293
8 ATTACHMENT “A”
IFB No. S-1364A
Provide Asphalt Products for Will Call and Delivery to Various Job Locations in the City of Garden Grove per the bid specifications
CONTRACTOR/DELIVERY REQUIREMENTS: Vendor is required to deliver all asphalt and related products to the job locations as specified and agreed upon by the CITY. This contract does not guarantee any specific amount of products. Late deliveries result in operational problems and expense for the City; therefore, inconsistencies between vendor promised and actual delivery time may result in the City canceling the agreement or at minimum using alternate sources of supply.
Contractor provide the City with a direct number to the batch plant to allow for direct communication and must not have to go th rough multiple contacts to finally get to the hot plant.
Prior to the City ordering asphalt for delivery, the area is measured and calculated as to how many tons of asphalt will be needed for the job and then dispatch is called.
The City will attempt to call one week ahea d of time to order the asphalt, and even two weeks in advance to ensure that we can get the asphalt delivered. It is up to the City to determine the speed of the asphalt delivery. Failure to meet the agreed upon delivery date and time may result in a penalty imposed on the contractor.
Contractor must obey all Federal, State, local ordinances and regulations.
Asphalt material is to be delivered in “End Dump Trucks Only”. Tarpaulins shall be used to cover all loads of asphalt concrete from plant to work site.
WILL CALL: The contract includes both delivery and Will-Call options. The City may also will call the asphalt and related produ cts. The contractor will be notified of the option that the City selects.
PRODUCT SPECIFICATIONS: Grade for Asphalt Binder shall normally be PG-64-10
CONDITION OF THE PRODUCT: Asphalt arriving on the job site shall not be less than 280 degrees or more than 325 degrees F, as measured by City staff upon arrival.
The City reserves the right to reject any product that does not meet the proper specifications.
BID FORM (ATTACHMENT “B”): Bidder shall offer a price for each line item requested. Should the bidder offer an item with the unit price blank, the City reserves the right to deem the bid as non-responsive.Partial bids will not be accepted for any reason.
REQUEST FOR CLARIFICATION: All requests for clarification or questions, are to be submitted electronically via the City’s Planet Bids portal, using the Online Q&A feature by the deadline of Friday, May 10, 2024 at 2:00 p.m., local time. 294
9 ELECTRONIC BID SUBMITTAL ONLY : The City is NOT accepting walk-in/hand deliveries of bids. Bids must be submitted electronically via the City’s Planet Bids portal. Pricing must be submitted via the line item section on the City’s Planet Bids portal AND completed Attachment “B” Bid Form, Pages 20-22 of this bid document, must also be submitted in the bid package. Instructions on how to submit an electronic bid via the Planet Bids po rtal can be found under the “Documents & Attachments” tab.
AWARD OF CONTRACT(S ): The City intends to award contracts to multiple companies to ensure that product availa bility and delivery as needed. The lowest bidder will be the first company contacted and if they do not respond in a timely manner or are unable to provide the product at the time it is needed, then the next lowest bidder will be contacted. The City re serves the right to reject any or all bids or to waive any irregularities or informalities in any bids or in the bidding process.
INSURANCE: Contractors are required to prov ide the insurance specified in the Sample contract (Pages 11-12) included in this bid document.
PREVAILING WAGE : The Director of Industrial Relations has determined the general prevailing rate of per diem wages in Orange County for each craft or type of worker needed to execute the Agreement, copies of which are on file and will be made available to any interested party upon request at City Office or online at http://www.dir.ca.gov/dlsr. The successful Bidder and all its subcontractor(s) shall comply with all applicable Labor Code provisions, which include, but are not limited to the payment of not less than the required prevailing rates to all workers employed by them in the execution of the Agreemen t, the employment of apprentices, the hours of labor and the debarment of contractors and subcontractors.
DIR REGISTRATION : Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work, must be registered with the Department of Industrial Relations. No Bid will be accepted nor any contract entered into without proof of contractor and subcontractors’ current registration with the Department of Industrial Relations to perform public work. If awarded a contract, the Bidder and its subcontractors, of any tier, shall maintain active registration with the Department of Industrial Relations for the duration of th e Project. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
BID PRICING: Suppliers are intended to hold thei r pricing for the full term of the contract. In the event that the supplier is unable to hold pricing for the contact term stated, supplier must provide the term for which they are able to hold pricing and the maximum price increase that will be imposed on the City if contractor is unable to hold pricing. This must be stated as a percentage on top of the original pricing submitted in the bid package and must be include on Bid Form, Attachment 295
10 “B”, Page 21, Section IV, Pricing, Agreement, of this bid document.
Advance notice of any price increases must be submitted to the CITY in writing and the CITY must agree to any price increases. The City reserves the right to factor in any price increases in calculating the lowest bidder(s) selected.
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297
298
1 CONTRACT FOR:
(Asphalt Supply for Will Call and Delivery Services)
THIS AGREEMENT is made this day of , 2025, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and Calmat Co DBA Vulcan Materials Company, Western Division, herein after referred to as “CONTRACTOR”.
RECITALS
The following recitals are a substantive part of this Agreement:
1. This Agreement is entered into pursuant to Garden Grove City Council authorization, dated ___________________.
2. CITY desires to utilize the services of CONTRACTOR to: Provide Asphalt Products for Will Call and Delivery to Various Job Locations in the City of Garden Grove per the bid specifications, Attachment “A”, at the agreed upon delivery date and time, and per IFB S-1364A.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Term and Termination. The term of the agreement shall be from July 1, 2025 through June 30, 2026. This agreement may be terminated by the CITY without cause. In such event, the CITY will compensate CONTRACTOR for product supplied to date in accordance with Bid Form whic h is attached as Attachment “B” and is hereby incorporated by reference. CONTRACTOR is required to present evidence to support product supplied.
2. Services to be Provided. The services to be performed and equipment to be provided by CONTRACTOR shall consist of Provide and Deliver asphalt and related products to the City of Garden Grove per Attachment ”B”, which is incorporated herein by reference.
3. Compensation. CONTRACTOR shall be compensated as follows:
3.1 AMOUNT. Total Compensation under this agreement shall not exceed (NTE) amount of Five Hundred Thousand Dollars ($500,000.00), payable in arrears and in accordance with Bid Form in Attachment “B”.
Unless expressly provided otherwise, all prices and fees specified in Attachment “B”, attached hereto and incorporated herein by reference, are firm and shall not be subject to change without the written approval of City. No extra charges of any kind will be allowed unless specifically agreed to in writing by authorized representative. The total price shall includ e (i) all federal, state and local sales, 299
2 use, excise, privilege, payroll, occupati onal and other taxes applicable to the Goods furnished to City hereunder; and (i i) all charges for packing, freight and transportation to destination.
3.2 Payment. For asphalt delivered under this Agreement, payment shall be made per invoice for asphalt delivered.
3.3 Records of Expenses. CONTRACTOR shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement.
These records will be made available at reasonable times to CITY
3.4 Termination. CITY and CONTRACTOR shall have the right to terminate this agreement, without cause, by giving thirty (30) days written notice of termination. If the Agreement is terminated by CITY, then the provisions of paragraph 3 would apply to that portion of the work completed.
4. Insurance requirements.
4.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by the CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify the CITY of any material change, cancellation, or termination at least thirty (30) days in advance. The insurers shall waive their rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.
4.2 WORKERS COMPENSATION INSURANCE. During the duration of this Agreement, CONTRACTOR and all subcontractors shall maintain Workers Compensation Insurance in the amount and type required by law, if applicable. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.
4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain the following insurance for the duration of this Agreement:
(a) Commercial general liability in the amount of $2,000,000 per occurrence; coverage to include XCU (claims made and modified occurrence policies are not acceptable ); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY. Endorsements for primary and non-contributory.
(b) Automobile liability in the amou nt of $2,000,000 combined single limit; Policy must be endorsed to delete pollution exclusion. (claims made and modified occurrence policies are not acceptable ); Insurance companies must be accept able to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.
300
3 (c) Automobile pollution in an amou nt of $2,000,000 per occurrence; (claims made and modified oc currence policies are not
acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.
(d) Excess liability, following form, co verage shall be provided for any underlying policy that does not meet the insurance requirements set forth herein (claims made and modified occurrence policies are not acceptable). Insurance companies must be acceptable to CITY and have a Best’s Guide Rating of A-Class VII or better, as approved by the CITY.
An Additional Insured Endorsement, ongoing and completed operations, for the policy under section 4.3 (a) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR.
CONTRACTOR shall provide to CITY proo f of insurance and endorsement forms that conform to city’s requirements, as approved by the CITY.
An Additional Insured Endorsement for the policy under section 4.3 (b) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for automobiles owned, leased, hired, or borrowed by the CONTRACTOR. CONTRACTOR shall provid e to CITY proof of insurance and endorsement forms that conform to CITY ’s requirements, as approved by the CITY.
MCS 90 Endorsement for the policy under section 4.3 (c) shall designate CITY, its officers, officials, employees, agents , and volunteers as additional insureds.
CONTRACTOR shall provide to CITY proo f of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.
An Additional Insured Endorsement for the policy under section 4.3 (d) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds under the excess liability policy. CONTRACTOR shall provide to CITY proof of insurance stating the excess liability policy follows form, additional insured endorsement forms, and the schedule of underlying policies with policy numbers that conform to CI TY’s requirements, as approved by the CITY. Information for the excess policy only needs to be provided if the underlying policies do not meet the policy limits set forth herein.
For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents, or volunteers shall by excess of the CONTRACTOR’s insurance and shall not contribute with it.
301
4 If CONTRACTOR maintains higher insu rance limits than the minimums shown above, CONTRACTOR shall provide covera ge for the higher insurance limits otherwise maintained by the CONTRACTOR.
5. Non-Liability of Officials and Employees of the CITY. No official or employee of CITY shall be personally liable to CONTRACTOR in the event of any default or breach by CITY, or for any amount which may become due to CONTRACTOR.
6. Non-Discrimination. CONTRACTOR covenants there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement.
7. Independent Contractor. It is agreed to that CONTRACTOR shall act and be an independent contractor and not an agent or employee of the CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees.
8. Compliance with Law. CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.
9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process.
a. (Address of Contractor)
Calmat Co. DBA Vulcan Materials Company, Western Division Attention: Tripp White, Area Manager
16013 Foothill Blvd.
Irwindale, CA 91702
b. (Address of CITY) (with a copy to):
City of Garden Grove Garden Grove City Attorney
11222 Acacia Parkway 11222 Acacia Parkway
Garden Grove, CA 92840 Garden Grove, CA 92840
10. CONTRACTOR'S PROPOSAL. This Agreement shall include CONTRACTOR’S Bid Form, ATTACHMENT “B” hereto, which shall be incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.
11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement.
302
5 12. Familiarity with Work. By executing this Agreement, CONTRACTOR warrants that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY of this and shall not proceed, except at CONTRACTOR'S risk, until written instructions are received from CITY.
13. Time of Essence. Time is of the essence in the performance of this Agreement.The Supplier must immediately notify CITY in writing any time delivery is behind schedule or may not be completed on schedule. In addition to any other rights City may have under this Agreement or at law, Supplier shall pay City the sum of $100.00 per item of Goods for each calendar day for which the item of Goods is unavailable beyond the scheduled delivery date(s) specified in Attachment “B”.
14. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of CONTRACTOR, its principals and employees were a substantial inducement for CITY to enter into this Agreement. CONTRACTOR shall not contract with any other entity to perform the services required without written approval of the CITY. This Agreement may not be assigned voluntarily or by operation of law, without the prior written approval of CITY. If CONTRACTOR is permitted to subcontract any part of this Agreement, CONTRACTOR shall be responsible to CITY for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. All persons engaged in the work will be considered employees of CONTRACTOR. CITY will deal directly with and will make all payments to CONTRACTOR.
15. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the parties are formally bound.
16. Prevailing Wages. The CITY has been advised that the Prevailing Wages Law applies to the work. CONTRA CTOR shall be responsible for CONTRACTOR's compliance in all respects with the prevailing wage rates to all the laborers involved, and with California Labor Code Section 1770 et seq., including the keeping of all records required by the provisions of Labor Code Section 1776 and the implementing administrative regulations. The CITY shall be a third party beneficiary of the forgoing covenant with rights to enforce the same as against the CONTRACTOR.
17. Indemnification. CONTRACTOR agrees to protect, defend, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or 303
6 in any way connected with performance of the Agreement by CONTRACTOR, CONTRACTOR'S agents, officers, employees, subcontractors, or independent contractors hired by CONTRACTOR. The only exception to CONTRACTOR'S responsibility to protect, defend, and hold harmless CITY, is due to the sole negligence of CITY, or any of its elective or appointive boards, officers, agents, or employees.
This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR.
18. Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefor by the Garden Grove City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the CITY.
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(Agreement Signature Block on Next Page)
304
7 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.
Date:
ATTESTED:
"CITY"
CITY OF GARDEN GROVE
By:
City Manager
City Clerk
Date:
"CONTRACTOR"
Calmat Co DBA Vulcan
Materials Company, Western Division
By:
Name:
Title:_
Date:
Tax ID No.
APPROVED AS TO FORM:
Contractor’s License:
Expiration Date:
Garden Grove City Attorney
Date
If CONTRACTOR is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY.
305
8 ATTACHMENT “A”
IFB No. S-1364A
Provide Asphalt Products for Will Call and Delivery to Various Job Locations in the City of Garden Grove per the bid specifications
CONTRACTOR/DELIVERY REQUIREMENTS: Vendor is required to deliver all asphalt and related products to the job locations as specified and agreed upon by the CITY. This contract does not guarantee any specific amount of products. Late deliveries result in operational problems and expense for the City; therefore, inconsistencies between vendor promised and actual delivery time may result in the City canceling the agreement or at minimum using alternate sources of supply.
Contractor provide the City with a direct number to the batch plant to allow for direct communication and must not have to go th rough multiple contacts to finally get to the hot plant.
Prior to the City ordering asphalt for delivery, the area is measured and calculated as to how many tons of asphalt will be needed for the job and then dispatch is called.
The City will attempt to call one week ahea d of time to order the asphalt, and even two weeks in advance to ensure that we can get the asphalt delivered. It is up to the City to determine the speed of the asphalt delivery. Failure to meet the agreed upon delivery date and time may result in a penalty imposed on the contractor.
Contractor must obey all Federal, State, local ordinances and regulations.
Asphalt material is to be delivered in “End Dump Trucks Only”. Tarpaulins shall be used to cover all loads of asphalt concrete from plant to work site.
WILL CALL: The contract includes both delivery and Will-Call options. The City may also will call the asphalt and related produ cts. The contractor will be notified of the option that the City selects.
PRODUCT SPECIFICATIONS: Grade for Asphalt Binder shall normally be PG-64-10
CONDITION OF THE PRODUCT: Asphalt arriving on the job site shall not be less than 280 degrees or more than 325 degrees F, as measured by City staff upon arrival.
The City reserves the right to reject any product that does not meet the proper specifications.
BID FORM (ATTACHMENT “B”): Bidder shall offer a price for each line item requested. Should the bidder offer an item with the unit price blank, the City reserves the right to deem the bid as non-responsive. Partial bids will not be accepted for any reason.
REQUEST FOR CLARIFICATION: All requests for clarification or questions, are to be submitted electronically via the City’s Planet Bids portal, using the Online Q&A feature by the deadline of Friday, May 10, 2024 at 2:00 p.m., local time. 306
9 ELECTRONIC BID SUBMITTAL ONLY : The City is NOT accepting walk-in/hand deliveries of bids. Bids must be submitted electronically via the City’s Planet Bids portal. Pricing must be submitted via the line item section on the City’s Planet Bids portal AND completed Attachment “B” Bid Form, Pages 20-22 of this bid document, must also be submitted in the bid package. Instructions on how to submit an electronic bid via the Planet Bids po rtal can be found under the “Documents & Attachments” tab.
AWARD OF CONTRACT(S ): The City intends to award contracts to multiple companies to ensure that product availa bility and delivery as needed. The lowest bidder will be the first company contacted and if they do not respond in a timely manner or are unable to provide the product at the time it is needed, then the next lowest bidder will be contacted. The City re serves the right to reject any or all bids or to waive any irregularities or informalities in any bids or in the bidding process.
INSURANCE: Contractors are required to prov ide the insurance specified in the Sample contract (Pages 11-12) included in this bid document.
PREVAILING WAGE : The Director of Industrial Relations has determined the general prevailing rate of per diem wages in Orange County for each craft or type of worker needed to execute the Agreement, copies of which are on file and will be made available to any interested party upon request at City Office or online at http://www.dir.ca.gov/dlsr. The successful Bidder and all its subcontractor(s) shall comply with all applicable Labor Code provisions, which include, but are not limited to the payment of not less than the required prevailing rates to all workers employed by them in the execution of the Agreemen t, the employment of apprentices, the hours of labor and the debarment of contractors and subcontractors.
DIR REGISTRATION : Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work, must be registered with the Department of Industrial Relations. No Bid will be accepted nor any contract entered into without proof of contractor and subcontractors’ current registration with the Department of Industrial Relations to perform public work. If awarded a contract, the Bidder and its subcontractors, of any tier, shall maintain active registration with the Department of Industrial Relations for the duration of th e Project. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
BID PRICING: Suppliers are intended to hold thei r pricing for the full term of the contract. In the event that the supplier is unable to hold pricing for the contact term stated, supplier must provide the term for which they are able to hold pricing and the maximum price increase that will be impose d on the City if contractor is unable to hold pricing. This must be stated as a percentage on top of the original pricing submitted in the bid package and must be include on Bid Form, Attachment “B”, Page 21, Section IV, Pricing, Agreement, of this bid document. 307
10 Advance notice of any price increases must be submitted to the CITY in writing and the CITY must agree to any price increases. The City reserves the right to factor in any price increases in calculating the lowest bidder(s) selected.
308
309
343.75 HMA| $355.75 AGG
$0.80 HMA | $0.50 AGG
N/A
310
3 311
312
313
1 CONTRACT FOR:
(Asphalt Supply for Will Call and Delivery Services)
THIS AGREEMENT is made this day of , 2025, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and R.J. Noble Company, herein after referred to as “CONTRACTOR”.
RECITALS
The following recitals are a substantive part of this Agreement:
1. This Agreement is entered into pursuant to Garden Grove City Council authorization, dated ___________________.
2. CITY desires to utilize the services of CONTRACTOR to: Provide Asphalt Products for Will Call and Delivery to Various Job Locations in the City of Garden Grove per the bid specifications, Attachment “A”, at the agreed upon delivery date and time and per IFB S-1364A.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Term and Termination. The term of the agreement shall be from July 1, 2025 through June 30, 2026. This agreement may be terminated by the CITY without cause. In such event, the CITY will compensate CONTRACTOR for product supplied to date in accordance with Bid Form whic h is attached as Attachment “B” and is hereby incorporated by reference. CONTRACTOR is required to present evidence to support product supplied.
2. Services to be Provided. The services to be performed and equipment to be provided by CONTRACTOR shall consist of Provide and Deliver asphalt and related products to the City of Garden Grove per Attachment ”B”, which is incorporated herein by reference.
3. Compensation. CONTRACTOR shall be compensated as follows:
3.1 AMOUNT. Total Compensation under this agreement shall not exceed (NTE) amount of Two Hundred Thousand Dollars ($200,000.00), payable in arrears and in accordance with Bid Form in Attachment “B”.
Unless expressly provided otherwise, all prices and fees specified in Attachment “B”, attached hereto and incorporated herein by reference, are firm and shall not be subject to change without the written approval of City. No extra charges of any kind will be allowed unless specifically agreed to in writing by authorized representative. The total price shall include (i) all federal, state and local sales, 314
2 use, excise, privilege, payroll, occupati onal and other taxes applicable to the Goods furnished to City hereunder; and (i i) all charges for packing, freight and transportation to destination.
3.2 Payment. For asphalt delivered under this Agreement, payment shall be made per invoice for asphalt delivered.
3.3 Records of Expenses. CONTRACTOR shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement.
These records will be made available at reasonable times to CITY
3.4 Termination. CITY and CONTRACTOR shall have the right to terminate this agreement, without cause, by giving thirty (30) days written notice of termination. If the Agreement is terminated by CITY, then the provisions of paragraph 3 would apply to that portion of the work completed.
4. Insurance requirements.
4.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by the CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify the CITY of any material change, cancellation, or termination at least thirty (30) days in advance. The insurers shall waive their rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.
4.2 WORKERS COMPENSATION INSURANCE. During the duration of this Agreement, CONTRACTOR and all subcontractors shall maintain Workers Compensation Insurance in the amount and type required by law, if applicable. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.
4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain the following insurance for the duration of this Agreement:
(a) Commercial general liability in the amount of $2,000,000 per occurrence; coverage to include XCU (claims made and modified occurrence policies are not acceptable ); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY. Endorsements for primary and non-contributory.
(b) Automobile liability in the amou nt of $2,000,000 combined single limit; Policy must be endorsed to delete pollution exclusion. (claims made and modified occurrence policies are not acceptable ); Insurance companies must be accept able to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.
315
3 (c) Automobile pollution in an amou nt of $2,000,000 per occurrence; (claims made and modified oc currence policies are not
acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.
(d) Excess liability, following form, co verage shall be provided for any underlying policy that does not meet the insurance requirements set forth herein (claims made and modified occurrence policies are not acceptable). Insurance companies must be acceptable to CITY and have a Best’s Guide Rating of A-Class VII or better, as approved by the CITY.
An Additional Insured Endorsement, ongoing and completed operations, for the policy under section 4.3 (a) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR.
CONTRACTOR shall provide to CITY proo f of insurance and endorsement forms that conform to city’s requirements, as approved by the CITY.
An Additional Insured Endorsement for the policy under section 4.3 (b) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for automobiles owned, leased, hired, or borrowed by the CONTRACTOR. CONTRACTOR shall provid e to CITY proof of insurance and endorsement forms that conform to CITY ’s requirements, as approved by the CITY.
MCS 90 Endorsement for the policy under section 4.3 (c) shall designate CITY, its officers, officials, employees, agents , and volunteers as additional insureds.
CONTRACTOR shall provide to CITY proo f of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.
An Additional Insured Endorsement for the policy under section 4.3 (d) shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds under the excess liability policy. CONTRACTOR shall provide to CITY proof of insurance stating the excess liability policy follows form, additional insured endorsement forms, and the schedule of underlying policies with policy numbers that conform to CI TY’s requirements, as approved by the CITY. Information for the excess policy only needs to be provided if the underlying policies do not meet the policy limits set forth herein.
For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees, agents, or volunteers shall by excess of the CONTRACTOR’s insurance and shall not contribute with it.
316
4 If CONTRACTOR maintains higher insu rance limits than the minimums shown above, CONTRACTOR shall provide covera ge for the higher insurance limits otherwise maintained by the CONTRACTOR.
5. Non-Liability of Officials and Employees of the CITY. No official or employee of CITY shall be personally liable to CONTRACTOR in the event of any default or breach by CITY, or for any amount which may become due to CONTRACTOR.
6. Non-Discrimination. CONTRACTOR covenants there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement.
7. Independent Contractor. It is agreed to that CONTRACTOR shall act and be an independent contractor and not an agent or employee of the CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees.
8. Compliance with Law. CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.
9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process.
a. (Address of Contractor)
R.J. Noble Company
Attention: Steven L. Mendoza, Vice President
15505 E. Lincoln Avenue
Orange, CA 92865
b. (Address of CITY) (with a copy to):
City of Garden Grove Garden Grove City Attorney
11222 Acacia Parkway 11222 Acacia Parkway
Garden Grove, CA 92840 Garden Grove, CA 92840
10. CONTRACTOR'S PROPOSAL. This Agreement shall include CONTRACTOR’S bid form, ATTACHMENT “B” hereto, which shall be incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.
11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement.
12. Familiarity with Work. By executing this Agreement, CONTRACTOR warrants that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) 317
5 it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY of this and shall not proceed, except at CONTRACTOR'S risk, until written instructions are received from CITY.
13. Time of Essence. Time is of the essence in the performance of this Agreement.The Supplier must immediately notify CITY in writing any time delivery is behind schedule or may not be completed on schedule. In addition to any other rights City may have under this Agreement or at law, Supplier shall pay City the sum of $100.00 per item of Goods for each calendar day for which the item of Goods is unavailable beyond the scheduled delivery date(s) specified in Attachment “B”.
14. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of CONTRACTOR, its principals and employees were a substantial inducement for CITY to enter into this Agreement. CONTRACTOR shall not contract with any other entity to perform the services required without written approval of the CITY. This Agreement may not be assigned voluntarily or by operation of law, without the prior written approval of CITY. If CONTRACTOR is permitted to subcontract any part of this Agreement, CONTRACTOR shall be responsible to CITY for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. All persons engaged in the work will be considered employees of CONTRACTOR. CITY will deal directly with and will make all payments to CONTRACTOR.
15. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the parties are formally bound.
16. Prevailing Wages. The CITY has been advised that the Prevailing Wages Law applies to the work. CONTRA CTOR shall be responsible for CONTRACTOR's compliance in all respects with the prevailing wage rates to all the laborers involved, and with California Labor Code Section 1770 et seq., including the keeping of all records required by the provisions of Labor Code Section 1776 and the implementing administrative regulations. The CITY shall be a third party beneficiary of the forgoing covenant with rights to enforce the same as against the CONTRACTOR.
17. Indemnification. CONTRACTOR agrees to protect, defend, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or in any way connected with performance of the Agreement by CONTRACTOR, CONTRACTOR'S agents, officers, employees, subcontractors, or independent contractors hired by CONTRACTOR. The only exception to CONTRACTOR'S 318
6 responsibility to protect, defend, and hold harmless CITY, is due to the sole negligence of CITY, or any of its elective or appointive boards, officers, agents, or employees.
This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR.
18. Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefor by the Garden Grove City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the CITY.
\ \ \ \
(Agreement Signature Block on Next Page)
319
7 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.
Date:
ATTESTED:
"CITY"
CITY OF GARDEN GROVE
By:
City Manager
City Clerk
Date:
"CONTRACTOR"
R.J. Noble Company
By:
Name:
Title:_
Date:
Tax ID No.
APPROVED AS TO FORM:
Contractor’s License:
Expiration Date:
Garden Grove City Attorney
Date
If CONTRACTOR is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY
320
8 ATTACHMENT “A”
IFB No. S-1364A
Provide Asphalt Products for Will Call and Delivery to Various Job Locations in the City of Garden Grove per the bid specifications
CONTRACTOR/DELIVERY REQUIREMENTS: Vendor is required to deliver all asphalt and related products to the job locations as specified and agreed upon by the CITY. This contract does not guarantee any specific amount of products. Late deliveries result in operational problems and expense for the City; therefore, inconsistencies between vendor promised and actual delivery time may result in the City canceling the agreement or at minimum using alternate sources of supply.
Contractor provide the City with a direct numb er to the batch plant to allow for direct communication and must not have to go through multiple contacts to finally get to the hot plant.
Prior to the City ordering asphalt for delivery, the area is measured and calculated as to how many tons of asphalt will be needed for the job and then dispatch is called. The City will attempt to call one week ahead of time to order the asphalt, and even two weeks in advance to ensure that we can get the asphalt delivered. It is up to the City to determine the speed of the asphalt delivery. Failure to meet the agreed upon delivery date and time may result in a penalty imposed on the contractor.
Contractor must obey all Federal, State, local ordinances and regulations.
Asphalt material is to be delivered in “End Dump Trucks Only”. Tarpaulins shall be used to cover all loads of asphalt concrete from plant to work site.
WILL CALL: The contract includes both delivery and Will-Call options. The City may also will call the asphalt and related products. The contractor will be notified of the option that the City selects.
PRODUCT SPECIFICATIONS: Grade for Asphalt Binder shall normally be PG-64-10
CONDITION OF THE PRODUCT: Asphalt arriving on the job site shall not be less than 280 degrees or more than 325 degrees F, as measured by City staff upon arrival. The City reserves the right to reject any product that does not meet the proper specifications.
BID FORM (ATTACHMENT “B”): Bidder shall offer a price for each line item requested.
Should the bidder offer an item with the unit price blank, the City reserves the right to deem the bid as non-responsive. Partial bids will not be accepted for any reason.
REQUEST FOR CLARIFICATION : All requests for clarification or questions, are to be submitted electronically via the City’s Planet Bids portal, using the Online Q&A feature by the deadline of Friday, May 10, 2024 at 2:00 p.m., local time.
ELECTRONIC BID SUBMITTAL ONLY: The City is NOT accepting walk-in/hand deliveries of bids. Bids must be submitted electronically via the City’s Planet Bids portal . 321
9 Pricing must be submitted via the line item section on the City’s Planet Bids portal AND completed Attachment “B” Bid Form, Pages 20-22 of this bid document, must also be submitted in the bid package. Instructions on how to submit an electronic bid via the Planet Bids portal can be found under the “Documents & Attachments” tab.
AWARD OF CONTRACT(S): The City intends to award contracts to multiple companies to ensure that product availability and delivery as needed. The lowest bidder will be the first company contacted and if they do not re spond in a timely manner or are unable to provide the product at the time it is needed, then the next lowest bidder will be contacted.
The City reserves the right to reject any or all bids or to waive any irregularities or informalities in any bids or in the bidding process.
INSURANCE: Contractors are required to provide the insurance specified in the Sample contract (Pages 11-12) included in this bid document.
PREVAILING WAGE: The Director of Industrial Rela tions has determined the general prevailing rate of per diem wages in Orange County for each craft or type of worker needed to execute the Agreement, copies of which are on file and will be made available to any interested party upon request at City Office or online at http://www.dir.ca.gov/dlsr. The successful Bidder and all its subcontractor(s) shall comply with all applicable Labor Code provisions, which include, but are not limited to the payment of not less than the required prevailing rates to all workers employed by them in the execution of the Agreement, the employment of apprentices, the hours of labor and the debarment of contractors and subcontractors.
DIR REGISTRATION : Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work, mu st be registered with the Department of Industrial Relations. No Bid will be accepted nor any contract entered into without proof of contractor and subcontractors’ current registration with the Department of Industrial Relations to perform public work. If awarded a contract, the Bidder and its subcontractors, of any tier, shall maintain active registration with the Department of Industrial Relations for the duration of the Project. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public wo rks project that is exempt pu rsuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
BID PRICING : Suppliers are intended to hold thei r pricing for the full term of the contract. In the event that the supplier is unable to hold pricing for the contact term stated, supplier must provide the term for which they are able to hold pricing and the maximum price increase that will be imposed on the City if contractor is unable to hold pricing. This must be stated as a percen tage on top of the original pricing submitted in the bid package and must be include on Bid Form, Attachment “B”, Page 21, Section IV, Pricing, Agreement, of this bid document.
Advance notice of any price increases must be submitted to the CITY in writing and the CITY must agree to any price increases. The City reserves the right to factor in any price increases in calculating the lowest bidder(s) selected.
322
323
324
Item 240/2025
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Lizabeth Vasquez
Dept:
City Manager Dept: City Clerk
Date: 6/24/2025
Subject: Second reading and Adoption of Ordinance No. 2965, entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE
ESTABLISHING THE AMOUNT OF MONEY FOR PARAMEDIC SERVICES THAT
MUST BE RAISED BY AN AD VALOREM TAX OVERRIDE AND THE SETTING OF THE TAX RATE OF SAID OVERRIDE. (Action Item)
Attached for second reading is Ordinance No. 2965 recommended for adoption.
ATTACHMENT(S)
1. Ordinance No. 2965
325
ORDINANCE NO. 2965
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE
ESTABLISHING THE AMOUNT OF MONEY FOR PARAMEDIC SERVICES THAT MUST BE
RAISED BY AN AD VALOREM TAX OVERRIDE AND THE SETTING OF THE TAX RATE OF
SAID OVERRIDE
City Attorney’s Summary
City Council Resolution No. 4547-74 submitted to the voters for approval an ad valorem tax for paramedic services in an amount not to exceed 10¢ per $100 of assessed valuation. The measure was approved by the voters in June 1974. State law requires that the City Council set the annual levy of the tax by ordinance or resolution. This Ordinance sets the levy of the tax at 8¢ per $100 of assessed valuation for FY 2025- 2026.
THE CITY COUNCIL OF THE CITY OF GARDEN GROVE DOES ORDAIN AS FOLLOWS:
SECTION 1: In June 1974, over sixty percent (60%) of the Garden Grove voters approved an ad valorem tax override to provide emergency medical care service (Paramedic Services) to the community, whether it be provided by the City of Garden Grove or on a regional basis, and thereby incurring a debt consisting of personnel, equipment and contractual payment obligations for the provision of Paramedic Services.
SECTION 2: Property taxes for indebtedness approved by the voters prior to July 1, 1978, are authorized pursuant to Section 93 of the Revenue and Taxation Code.
SECTION 3: The City Council of the City of Garden Grove hereby declares it is necessary to raise an estimated $16,353,000 through the use of an ad valorem tax override on the taxable property within the City of Garden Grove to maintain and pay for the emergency medical care services.
SECTION 4 : The tax rate for the authorized ad valorem tax override as approved by voters of all assessable real and personal property for the Fiscal Year 2025-26 shall be 8.0 cents ($.080) per one-hundred dollars ($100) of assessed valuation, using as a basis the value of the property as assessed and equalized by the County of Orange, State of California, and shown on the 2025-2026 assessment roll of said county.
SECTION 5: This ordinance shall exclude from Section 4 annexations of assessable, real and personal property to the City of Garden Grove after July 1, 1978, indicated by the listing on the attached document designated Exhibit "A".
SECTION 6: Severability. If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, 326
Garden Grove City Council
Ordinance No. 2965
irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, words, or portions thereof be declared invalid or unconstitutional.
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.
The foregoing Ordinance was passed by the City Council of the City of Garden Grove on the ___ day of ____________.
MAYOR
ATTEST:
_______________________________
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS:
CITY OF GARDEN GROVE )
I, LIZABETH VASQUEZ, City Clerk of the City of Garden Grove, do hereby certify that the foregoing Ordinance was introduced for first reading and passed to second reading on June 10, 2025, with a vote as follows:
AYES: COUNCIL MEMBERS: (7) BRIETIGAM, NGUYEN, TRAN, MUÑETON
ARESTEGUI, DOVINH, KLOPFENSTEIN
NOES: COUNCIL MEMBERS: (0) NONE
ABSENT: COUNCIL MEMBERS: (0) NONE
327
Garden Grove City Council
Ordinance No. 2965
EXHIBIT "A"
Listed Annexations Finalized after July 1, 1974 and
Not Subject to Paramedic Tax Override
Annexation No./
Reorganization No.
City Resolution No. Date Completed
1-78 5573-78 August 8, 1978
2-78 5634-78 October 24, 1978
3-78 5637-78 November 28, 1978
4-78 5670-78 November 30, 1978
5-78 5671-78 November 30, 1978
7-78 5731-79 March 30, 1979
1-79 5813-79 July 30, 1979
141 7875-96 May 29, 1996
328
Item 234/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 6/24/2025
Subject: Transmittal of the 5-Year Homelessness Strategy (July 2025 – June 2030). (Action Item)
OBJECTIVE
To transmit the updated 5-Year Homelessness Strategy (July 2025 - June 2030) to the City Council.
BACKGROUND
On March 11, 2025, City staff presented an update to City Council summarizing key milestones related to homeless response in Fiscal Year 2023 –24, and introducing the framework for the City’s new 5 Year Homelessness Strategy (July 2025 – June 2030). City staff introduced an outline that included the vision, mission, and strategic goals and objectives.
Homelessness remains one of the most complex and pressing issues facing the city of Garden Grove and the broader Orange County region . While the City has made significant investments in outreach, emergency shelter, and housing programs over the past five years, the 2024 Orange County Point -in-Time Count confirmed both the severity of the issue regionally and the effectiveness of Garden Grove’s interventions. Notably, the City recorded a 39% decrease in its homeless population since 2022 —one of the most substantial reductions in the region.
In response to this prog ress and the continuing need for regional a lignment and long-term planning, the City initiated the development of an updated five-year homelessness strategy.
The City retained consultant Susan Price, a public health and homelessness systems expert, to lead the evaluation and planning process. Her work included stakeholder interviews, policy and contract review, ride-alongs with outreach teams, and a system-wide SWOT analysis.
The result is a strategy rooted in lived experience, operational data, and best practices. The plan affirms a core belief that housing security is attainab le for all and charts a strategic course built around measurable objectives and community collaboration. 329
Item 234/2025
DISCUSSION
Since 2020, the City of Garden Grove has made notable strides addressing homelessness:
expanding outreach, launching housing voucher programs, partnering on mental health crisis response, opening the City’s first permanent supportive housing at Stuart Drive, and most recently, completing the Central Cities Navigation Center (CCNC) in partnership with the cities of Fountain Valley and Westminster. The CCNC, which added 85 low-barrier shelter beds to the region, is now the cornerstone of the City’s shelter and service response.
The plan responds to both encouraging and sobering data. According to the 2024 Poin t-in- Time Count, Garden Grove saw a 39% reduction in its unhoused population since 2022, a trend that reflects the impact of recent inv estments. However, homelessness continues to grow countywide, with the Central Service P lanning Area (SPA) representing 47% of all unhoused individuals in Orange County. The unsheltered population remains significant, and systemic issues—such as housing shortages, behavioral health service gaps, and fragmented regional coordination—continue to challenge long-term progress.
The strategy is structured around four central goals:
1. Enhance Communication and Community Engagement – To unify messaging, build trust, and ensure coordinated action among stakeholders and the public.
2. Enhance the Service Delivery System – To streamline access to housing and services and improve outcomes for those at risk or currently experiencing homelessness.
3. Leverage Partnerships, Funding, and Resources – To expand capacity, increase efficiency, and align regionally with other cities and county systems of care.
4. Improve Quality of Life – To balance compassionate service delivery with public safety and neighborhood preservation, ensuring that all residents, businesses, and visitors benefit from these efforts.
Each goal is supported by specific objectives, Key Performance Indicators (KPIs), and action items that will guide implementation and accountability over the five -year period. The plan prioritizes measurable results, cross -sector collaboration, and transparency in reporting progress to the public.
Ultimately, the updated Garden Grove 5-Year Homelessness Strategy (July 2025 – June 2030) is not just a policy document—it is a promise to the community. It reflects the City’s belief that homelessness can be addressed through thoughtful planning, sustained commitment, and a shared sens e of responsibility. By aligning values with action, the City seeks to reduce homelessness, improve public health and safety, and ensure that every resident who chooses a path toward housing stability is met with dignity, opportunity, and support.
330
Item 234/2025
FINANCIAL IMPACT
There is no financial impact for the City Council to receive and file the Garden Grove 5-Year Homelessness Strategy (July 2025 – June 2030).
RECOMMENDATION
It is recommended that City Council:
Receive and file the Garden Grove 5-Year Homelessness Strategy (July 2025 – June 2030).
ATTACHMENT
Garden Grove 5-Year Homelessness Strategy (July 2025 – June 2030)
331
12025-2030 HOMELESSNESS STRATEGY
THE CITY OF
GARDEN GROVE
HOMELESSNESS
STRATEGY
2025 - 2030
332
TABLE OF CONTENTS
Executive Summary 4
State of Homelessness in Orange County 6
2024 Orange County Point-in-Time Count 9
Overview of Achievements 15
SWOT Analysis 20
Core Values 24
Overview of Strategic Goals 26
Goal 1: Communication 27
Goal 2: Services 29
Goal 3: Partnership 31
Goal 4: Quality of Life 33
Homelessness Strategy Summary 35
333
July 1, 2025
Dear Garden Grove Stakeholders,
It is my great honor, on behalf of the City, to introduce the 2025-2030 Garden Grove Homelessness Strategy, our City's rene wed commitment to creating a more compassionate, coordinated, and effective response to homelessness in our community.
Homelessness is one of the most complex and pressing challenges of our time. It affects not only those experiencing housing insecurity, but also the families, neighborhoods, and businesses that make up the fabric of Garden Grove. As a City, we believe in solutions that are both practical and humane, rooted in data, guided by compassion, and built through collaboration.
This strategic plan reflects more than policy —it represents a shared vision for a future where housing security is attainable for those that choose it. It outlines clear goals and actions that will help us strengthen services, improve public safety and quality of life, and ensure that every individual is treated with dignity and respect as they navigate their path to stability. The development of this plan would not have been possible without the insights and dedication of many. We are deep ly grateful to the nonprofit organizations, city departments, law enforcement teams, an d neighboring cities who partner with us daily in this effort. We also want to thank consultant Susan Price, whose extensive expertise, thoughtful interviews, document analysis, and stakeholder engagement helped shape a plan that is equally grounded in both reality and aspiration.
We recognize that meaningful change does not happen overnight—but with a shared vision, accountability, and continued commun ity input, we will move forward together.
This plan is both a roadmap and a promise: that we will continue to lead with empathy, act with integrity, and work tirelessly to support every resident that chooses a journey toward housing stability, while at the same time striving to meet the needs of residents, businesses and visitors.
Thank you for your patience and support as we take the next steps in building a stronger, more resilient Garden Grove.
Sincerely,
Stephanie Klopfenstein
Mayor
334
4 4 | EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
335
52025-2030 HOMELESSNESS STRATEGY
Since 2020, the City of Garden Grove has made notable strides addressing homelessness:
expanding outreach, launching housing voucher programs, partnering on mental health crisis response, opening permanent supportive housing at Stuart Drive, and most recently,completing the Central Cities Navigation Center (CCNC) in partnership with the Cities of Westminster and Fountain Valley. The CCNC, which added 85 low-barrier shelter beds to the region, is now the cornerstone of the City’s shelter and service response.
The plan responds to both encouraging and sobering data. According to the 2024 Point- in-Time Count, Garden Grove saw a 39% reduction in its unhoused population since 2022, a trend that reflects the impact of recent investments. However, homelessness continues to grow countywide, with the Central Service Planning Area (SPA) representing 47% of all unhoused individuals in Orange County. The unsheltered population remains significant, and systemic issues—such as housing shortages, behavioral health service gaps, and fragmented regional coordination—continue to challenge long-term progress.
The strategy is structured around four central goals:
1. Enhance Communication and Community Engagement – To unify messaging, build trust, and ensure coordinated action among stakeholders and the public.
2. Enhance the Service Delivery System – To streamline access to housing and services and improve outcomes for those at risk or currently experiencing homelessness.
3. Leverage Partnerships, Funding, and Resources – To expand capacity, increase efficiency, and align regionally with other cities and county systems of care.
4. Improve Quality of Life – To balance compassionate service delivery with public safety and neighborhood preservation, ensuring that all residents, businesses, and visitors benefit from these efforts.
Each goal is supported by specific objectives, Key Performance Indicators (KPIs), and action items that will guide implementation and accountability over the five-year period.
The plan prioritizes measurable results, cross-sector collaboration, and transparency in reporting progress to the public.
Ultimately, the 2025–2030 Garden Grove Homelessness Strategy is not just a policy document—it is a promise to the community. It reflects the City’s belief that homelessness can be addressed through thoughtful planning, sustained commitment, and a shared sense of responsibility. By aligning values with action, the City seeks to reduce homelessness, improve public health and safety, and ensure that every resident who chooses a path toward housing stability is met with dignity, opportunity, and support.
EXECUTIVE SUMMARY |
336
6 Homelessness remains one of the most pressing and complex issues facing Orange County, California. Despite major investments in emergency shelters, permanent supportive housing, outreach programs, and healthcare services, the 2024 data shows that homelessness continues to grow at concerning rates. While Orange County shares many of the systemic drivers of homelessness seen across the United States—such as high housing costs, income inequality, and gaps in behavioral health services—it also faces distinct barriers that shape both the scale of the crisis and the strategies required to address it effectively.
EXTREME HOUSING AFFORDABILITY GAP
Orange County consistently ranks among the most expensive housing markets in the United States. The scarcity of
affordable rental units, especially for extremely low-income households, means that thousands of residents live on the brink of homelessness, and once displaced, face enormous challenges securing stable housing. Rising rents drastically outpacing wage growth; homeownership is out of reach for many working families; and new affordable housing production significantly lagging behind need are all factors contributing the rise in homelessness in Orange County.
LIMITED BEHAVIORAL HEALTH INFRASTRUCTURE
Like much of California, Orange County faces significant shortages in mental health and substance use disorder treatment capacity. Opioid addiction continues to be a critical driver of homelessness, yet the region faces a severe shortage of behavioral health beds, limiting access to the detoxification, stabilization, and long-term treatment services necessary to support recovery and housing stability. Although initiatives like Be Well OC, CalOptima Street Medicine Program, and the County Crisis Assessment Team have expanded access, the system often lacks enough beds for those needing crisis stabilization, residential treatment, or long-term behavioral health care. This creates a situation where many individuals experiencing homelessness, especially those with complex needs, cycle between the streets, emergency rooms, jails, and shelters without receiving consistent, comprehensive care.
| STATE OF HOMELESSNESS IN ORANGE COUNTY
STATE OF HOMELESSNESS
IN ORANGE COUNTY
337
72025-2030 HOMELESSNESS STRATEGY
JURISDICTIONAL FRAGMENTATION
Orange County is composed of 34 independent cities, each with its own policies, priorities, and capacities related to homelessness. While regional collaboration has improved, jurisdictional boundaries often lead to inconsistent approaches and resource deployment. Navigating these varied systems presents barriers for both clients and providers trying to deliver seamless care.
On a national level, Orange County’s challenges mirror many of those seen in other urban and suburban regions—but at a higher intensity:
• Homelessness Rates: Orange County’s per-capita homelessness rate is among the highest for suburban counties nationwide, though it remains lower than the rates found in major urban cores like Los Angeles, San Francisco, or New Y ork City. • Shelter Access: While Orange County has invested significantly in expanding emergency shelter beds, its ratio of shelter beds to people experiencing homelessness still trails behind that of more urban counties with longer-standing shelter infrastructure. • Unsheltered Homelessness: Like many areas in California, Orange County has a higher proportion of unsheltered individuals compared to most states nationally, where the majority of individuals experiencing homelessness tend to be sheltered. • Prevention and Diversion Efforts: Orange County, similar to other progressive regions, has begun emphasizing homelessness prevention and rapid rehousing strategies, aligning with national best practices, but resource availability remains a limiting factor.
Over the past decade, Orange County has experienced a significant increase in homelessness, reflecting broader regional and national trends. Since 2013, the total number of individuals experiencing homelessness has grown by approximately 72%, rising from 4,251 individuals to 7,322 in 2024. Notably, the unsheltered population— those living outdoors, in vehicles, or in places not meant for habitation—has surged by nearly 149% during this period, while the sheltered population has seen only a modest 22% increase. 2024 POINT-IN-TIME COUNT BY THE NUMBERS
SENIORS
Persons ages 62 and older
869308
TRANSITIONAL
AGED YOUTH
Persons ages 18 to 24
VETERANS
Persons who served in the
U.S. Armed Forces, National
Guard or Reserves
328
7,322
Persons
3,227North:
Central: 3,454
South: 641
Persons
Persons
Persons
151,278
171,521
181,399
72,456
84,220
93,702
6,860 5,718 7,322
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2019 2022 2023 2024
GROWTH TRENDS OF CALIFORNIA HOMELESS POPULATION
5 YEAR
RATE OF
GROWTH
20%California:
29%Surrounding Counties:
7%Orange County:
California Surrounding Counties* Orange County
STATE OF HOMELESSNESS IN ORANGE COUNTY |
338
8 Although there was a temporary decline in total
homelessness recorded in 2022, likely influenced
by pandemic-era interventions and data collection
limitations, the 2024 figures reveal a sharp
rebound to the highest numbers Orange County
has seen. This long-term upward trend highlights
both the growing severity of housing insecurity
and the limited capacity of existing shelter and
housing systems to meet escalating demand.
It underscores the urgent need for expanded
affordable housing, enhanced shelter options, and
robust supportive services to address the complex
and intersecting challenges faced by individuals
and families experiencing homelessness across
the county.
| STATE OF HOMELESSNESS IN ORANGE COUNTY
339
92025-2030 HOMELESSNESS STRATEGY
2024 ORANGE COUNTY
POINT-IN-TIME COUNT
The national Point-in-Time (PIT) Count, conducted annually in communities across the United States, under the guidance of the U.S. Department of Housing and Urban Development (HUD), provides a standardized snapshot of sheltered and unsheltered homelessness on a single night in January, helping policymakers and service providers track trends, allocate resources, and inform strategies to end homelessness. The 2024 Orange County PIT Count was conducted during the week of January 22–25, 2024, and followed HUD’s national methodology for data collection, which includes the following process:
• Sheltered Count (January 22): Census of individuals staying in emergency shelters, transitional housing, and safe havens on a single night, using service provider data and client surveys.
• Unsheltered Count (January 23–25): Volunteer field teams canvassed streets, parks, encampments, vehicles, and other locations where individuals experiencing homelessness reside.
• Surveys: Were administered in real time using Geographic Information System- based technology to ensure geographic coverage and reduce duplication. • Data Verification and Quality Control: After field collection, the County’s Office of Care Coordination, City Net, and Hub for Urban Initiatives reviewed survey results for accuracy, completeness, and consistency before finalizing the count.
The 2024 Orange County PIT Count mobilized 1,251 volunteers; the highest number ever recorded for an Orange County PIT Count. Volunteers included representatives from city governments, nonprofits, faith-based organizations, public health agencies, and local residents. The data reflects increasing need and growing challenges, especially in the Central Service Planning Area (SPA), where Garden Grove and our Tri-Cities partners play a significant role in the regional response.
2024 ORANGE COUNTY POINT-IN-TIME COUNT |
340
10 SHELTER AND
HOUSING SYSTEM GAPS
The 2024 Orange County PIT Count reveals
that while 72% of shelter residents at two
major County shelters (Yale Navigation Center
and Bridges at Kraemer Place) had completed
all eligibility steps for housing, only 1 in 12
were actually connected to a housing unit,
underscoring a systemic shortage in affordable
and supportive housing options. This trend
is reflected in Garden Grove, where CCNC
residents experience similar challenges
transitioning out of shelter due to limited
housing stock.
COMMUNITY TIES
An analysis of recent homelessness data in Orange County reveals that a significant majority of individuals experiencing homelessness have strong, long-standing ties to the local community. More than half (51.75%) have family connections within the county, and an even larger proportion (63.42%) have worked in Orange County, highlighting that many individuals experiencing homelessness were once active contributors to the local economy. Additionally, 43.09% attended school in the area, further emphasizing that homelessness in Orange County primarily affects people who are deeply rooted in the community, rather than individuals migrating from outside regions. Alarmingly, nearly 48% of individuals reported becoming unhoused for the first time within the past year, underscoring the growing economic pressures and systemic vulnerabilities that are pushing local residents into homelessness at accelerating rates.
Only 1 out of every 12 were connected to housing
Yale Navigation Center &
Bridges at Kraemer Place
of its current population completed all
necessary steps to be eligible for housing72%
Housing
Experiencing homelessness for the
48.33%
1,172 Persons
Have family in Orange County
51.75%
1,255 Persons
Attending or have attended
school in Orange County
43.09%
1,045 Persons
worked in Orange County
63.42%
1,538 Persons
| 2024 ORANGE COUNTY POINT-IN-TIME COUNT
341
112025-2030 HOMELESSNESS STRATEGY
ORANGE
SANTA ANA
FULLERTON
ANAHEIM
LAGUNA
NIGUEL
SEAL BEACH
TUSTIN
BREA
MISSION VIEJO
GARDEN GROVE
NEWPORT BEACH
SAN CLEMENTE
COSTA MESA LAKE FOREST
LAGUNA BEACH
WESTMINSTER
BUENA
PARK
VILLA
PARK
PLACENTIA
CYPRESS
LOS ALAMITOS
STANTON
LA PALMA
RANCHO
SANTA
MARGARITA
ALISO
VIEJO
HUNTINGTON
BEACH
YORBA LINDA
LAGUNA WOODS
LAGUNA
HILLS
DANA
POINT
LA HABRA
FOUNTAIN
VAL LEY
SAN
JUAN
CAPISTRANO
IRVINE
UNINCORPORATED
6HUYLFH3ODQQLQJ$UHDV
1257+5(*,21
&(175$/ 5(*,21
CENTRAL SERVICE PLANNING AREA SNAPSHOT
The County of Orange is divided into three SPAs—North, Central, and South—to support more effective regional coordination, resource allocation, and strategic planning in the homelessness response system. The Central SPA is the largest and most urbanized of the three,encompassing key cities such as Garden Grove,Santa Ana, Westminster, Fountain Valley, and Tustin. Bounded roughly by the Santa Ana River to the west, the 55 Freeway to the east, and stretching from the 22 Freeway north to the southern edge of Irvine, the Central SPA represents a diverse mix of residential, commercial, and institutional neighborhoods. This area includes many of the County’s largest emergency shelters, public health resources, and transportation corridors,making it a focal point for both unsheltered populations and service delivery. The decision to divide Orange County into SPAs reflects the understanding that each region has unique demographic, geographic, and systemic challenges, and that homelessness solutions must be tailored accordingly to meet local needs with targeted, coordinated efforts. 2024 ORANGE COUNTY POINT-IN-TIME COUNT |
6HUYLFH3ODQQLQJ$UHDV
1257+5(*,21
&(175$/5(*,21
6287+5(*,21
342
12 CENTRAL SERVICE PLANNING AREA DATA
The Central SPA continues to represent the epicenter of homelessness in Orange County,accounting for 3,454 individuals experiencing homelessness, which is 47% of the county wide total—the largest share of any SPA. Of this population, a significant majority, 2,036 individuals, are living unsheltered, while 1,418 individuals are residing in emergency shelters or transitional housing programs. Between 2022 and 2024, the Central SPA experienced a 27% overall increase in homelessness, with particularly sharp growth in its unsheltered population, which rose by 34%.Meanwhile, the sheltered population also grew, though at a more moderate pace of 19%,indicating both an increasing demand for shelter services and a rising number of individuals unable to access available shelter options. This data highlights the mounting pressure on local systems of care within the Central SPA, underscoring the urgent need for expanded shelter capacity, deeper investment in permanent housing solutions, and enhanced regional collaboration to address the complex and growing needs of those experiencing homelessness in the heart of Orange County.
Central Service Planning Area
3,332
2019
2,714
2022
3,454
2024-18.55% 27.27%
| 2024 ORANGE COUNTY POINT-IN-TIME COUNT
343
132025-2030 HOMELESSNESS STRATEGY
GARDEN GROVE: LOCAL TRENDS
The 2024 homelessness data for Garden Grove reveals a notable shift in the local landscape. A total of 239 individuals experiencing homelessness were identified within the city, with163 individuals unsheltered and 76 individuals sheltered in emergency housing or transitional facilities. Garden Grove accounts for approximately 7% of the Central SPA’s total unhoused population and roughly 3% of the overall unhoused population countywide, reflecting its significant but proportionally smaller share compared to larger cities in the region. Importantly, Garden Grove saw a 39% decrease in its total unhoused population compared to 2022, marking a substantial decline driven by reductions across both the sheltered and unsheltered populations. This downward trend suggests that recent investments in shelter access, outreach coordination, and homelessness prevention initiatives may be yielding positive results. However, the continued presence of a majority unsheltered population highlights that systemic barriers to stable housing persist, requiring sustained efforts in affordable housing development, behavioral health support, and regional collaboration to ensure long-term, equitable progress. 2024 ORANGE COUNTY POINT-IN-TIME COUNT |
344
14 CITY COMPARISON WITHIN CENTRAL SPA (TOTAL HOMELESS POPULATION):
These numbers underscore the critical role Garden Grove plays within the Central SPA response system, particularly with the operation of the CCNC—a low-barrier shelter operated in partnership with Westminster and Fountain Valley. Collectively, the Tri-Cities comprised of approximately 19% of the Central SPA’s unhoused population in the 2024 PIT Count, and the opening of the CCNC in June 2024 added 85 beds which increased the Tri-Cities’ shelter bed capacity by 94%.
CONCLUSION
The 2024 PIT Count confirms that while overall homelessness in Orange County is rising, Garden Grove has seen a measurable decline in its counted population, likely due to its proactive approach, shelter investments, and strategic partnerships. However, the data also underscores that housing affordability and regional service capacity remain critical vulnerabilities, particularly as Garden Grove continues to serve as a hub for Central SPA coordination. The updated Garden Grove Homelessness Strategy (2025-2030) aims to build on this momentum by enhancing services, expanding housing pathways, and improving long-term outcomes for individuals experiencing homelessness in the city and region.
| 2024 ORANGE COUNTY POINT-IN-TIME COUNT
345
152025-2030 HOMELESSNESS STRATEGY
15 202020202020220252525252555-2-2-2-2-2030303030303303000000
HOMELESSNESS STRATEGY
OVERVIEW OF
ACHIEVEMENTS
OVER THE PAST 5 YEARS
ROADMAP
OVERVIEW OF ACHIEVEMENTS |
346
16 EXPANSION OF SERVICE PROGRAMS DURING COVID-19
In June 2020, the City expanded services programs through one-time Emergency Solutions Grant CARES Act allocations from HUD totaling $4,237,649, which assisted 329 unhoused individuals through street outreach, homelessness prevention, emergency shelter, and rapid rehousing activities.
MAINSTREAM VOUCHER PROGRAM
In November 2020, the Garden Grove Housing Authority(GGHA) was awarded seventy-five (75) Mainstream Vouchers through the CARES Act to provide rental assistance to disabled unhoused or at-risk households.
GGHA has achieved a ninety-six percent (96%) lease-up rate to date,demonstrating effective utilization and administration of this critical resource.
JUN
2020
NOV
2020
| OVERVIEW OF ACHIEVEMENTS
347
172025-2030 HOMELESSNESS STRATEGY
IMPLEMENTATIONS OF EMERGENCY HOUSING VOUCHERS
In May 2021, the GGHA was awarded 117 HUD Emergency Housing Vouchers to provide rental assistance to unhoused households. To date,the program has achieved an eighty-five percent (85%) lease-up rate, with continued focus on improving utilization and service coordination over the next five years.
DEPLOYMENT OF BE-WELL MOBILE RESPONSE TEAM
In May 2021, City Council approved the Be-Well OC pilot program to deploy the Mobile Crisis Response Team to respond to and de-escalate situations such as mental health crisis, drug and alcohol use issues, proactive outreach to the unhoused, non-domestic violence/family disputes, and welfare checks. Since inception, the Be-Well Mobile Response Team has assisted 15,453 individuals.
MAY
2021
MAY
2021
OVERVIEW OF ACHIEVEMENTS |
348
18 STUART DRIVE PERMANENT SUPPORTIVE HOUSING
Completion of the Stuart Drive Permanent Supportive Housing Development, which is City’s first permanent supportive housing project.
The project is located at 11742 Stuart Drive and provides rental housing and wrap-around supportive services to 8 unhoused households with a disabling condition.
LAUNCHING THE CALOPTIMA STREET MEDICINE PILOT PROGRAM
In April 2023, the City of Garden Grove launched the Street Medicine Program in partnership with CalOptima Health and Healthcare in Action, bringing medical care directly to individuals experiencing homelessness through a mobile medical unit. Since its inception, the program has enrolled up to 200 individuals at a time, meeting its active caseload goal, and has provided care to a total of 481 individuals across the community. In addition to medical services, the program has played a key role in housing stabilization efforts, successfully permanently housing 16 individuals through coordinated case management and housing navigation support.
| OVERVIEW OF ACHIEVEMENTS
OCT
2022
APR
2023
349
192025-2030 HOMELESSNESS STRATEGY
REDUCTION IN THE 2024 POINT-IN-TIME HOMELESS COUNT
Garden Grove saw a 39% decrease in its total unhoused population compared to 2022, marking a substantial decline driven by reductions across both the sheltered and unsheltered populations.
CENTRAL CITIES NAVIGATION CENTER
In June 2024, the City completed the Central Cities Navigation Center, which is the City’s first low-barrier emergency shelter for unhoused individuals.
The City partnered with the Cities of Fountain Valley and Westminster to develop the 85-bed navigation center to support Garden Grove, Fountain Valley and Westminster residents experiencing homelessness.
OVERVIEW OF ACHIEVEMENTS |
JAN
2024
JUNE
2024
CENTRAL CITIES
350
20 The City of Garden Grove, in collaboration with the Tri-Cities partners of Westminster and Fountain Valley, have made significant strides in addressing homelessness through its CCNC and broader System of Care. A recent evaluation conducted by homelessness and public health expert Susan Price offers a detailed picture of the current state of the system, highlighting its strengths, identifying areas of concern, and pointing toward key opportunities for strategic advancement. To ensure this strategic plan is grounded in both evidence and lived experience, the City engaged Ms. Price, who brings over 25 years of cross-sector expertise in public health, city and county management, and continuum of care operations.
PROCESS AND COMMUNITY ENGAGEMENT
Ms. Price was instrumental in shaping the strategic plan and included a rigorous, multi- pronged evaluation process:
• Stakeholder Interviews: In-depth interviews with key city leadership, law enforcement, service providers, and nonprofit organizations, including members of the Tri-Cities Collaborative were conducted. These interviews provided insights into both operational successes and system-level challenges. • Field Engagement: Street outreach ride-along with police and nonprofit outreach teams were conducted along with a tour of the CCNC facility to observe frontline operations and client interactions in context.
• Document and Contract Review: A comprehensive review of key documents and policies—such as the CCNC’s protocols, MOU, City staff reports, partner contracts, were assessed, including comparative best practices analysis. The scopes of work and outcome reports for nine funded nonprofits were assessed, evaluating their alignment with the City’s goals and integration within the larger system of care. • SWOT Analysis: A full Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis was developed to provide a clear picture of where the system excels and where strategic improvements are needed. This analysis now forms a critical foundation for the plan’s direction.v
| SWOT ANAL YSIS
SWOT ANAL YSIS
351
212025-2030 HOMELESSNESS STRATEGY
SWOT ANAL YSIS|
352
22 STRENGTH
The foundation of Garden Grove’s current
approach lies in its robust coordination
infrastructure and experienced partners.
The CCNC is operated by Volunteers
of America (VOA), a provider with
regional expertise and strong working
relationships with the County of Orange.
VOA’s leadership,especially the program
manager, has established a stable
operational model that emphasizes client
rapport; reducing incidents and enhancing
program outcomes.
The City also benefits from dedicated street
outreach resources, which are increasingly
integrated with multidisciplinary teams
that include law enforcement, city staff,
street medicine providers, and mental
health providers. This integrated approach
is critical in supporting unsheltered
individuals and connecting them to
appropriate services.
Furthermore, the Tri-Cities collaboration
serves as a cornerstone for system-wide
impact. By leveraging the strengths and
capacities of all three municipalities, the
cities are better positioned to maximize
service delivery, share resources, and
promote collective success within the
region and at the CCNC.
WEAKNESS
Despite these strengths, several systemic
challenges remain. Access to behavioral
health services, particularly residential
recovery and treatment beds for mental
health and addiction, remains limited.
This bottleneck severely restricts client
transitions to stable recovery pathways.
Additionally, silos in communication, funding,
and partnerships continue to fragment
the response across city departments,
nonprofits, and regional partners.
The lack of a structured communication
strategy between the Tri-Cities and within
city departments impedes coordination and
impairs performance monitoring. These
gaps are compounded by inconsistencies in
collaboration and engagement, particularly
with the cities of Westminster and Fountain
Valley.
| SWOT ANAL YSIS
SW
353
232025-2030 HOMELESSNESS STRATEGY
OPPORTUNITIES
Multiple opportunities have been identified
to improve both programmatic outcomes
and community engagement. Expanding
income and employment initiatives
for CCNC residents could significantly
enhance clients’ long-term self sufficiency.
Improving community engagement and
transparency through quarterly Tri-Cities
meetings, enhanced data dashboards, and
clear feedback loops with stakeholders will
strengthen trust and program alignment.
Additionally, formalizing a Communication
Strategy that includes daily bed availability
updates, monthly operational meetings,
and quarterly all-hands sessions would
greatly enhance coordination across
jurisdictions.
Further integration with County programs
and resources represents a major strategic
opportunity to increase the reach and
impact of local efforts. By aligning more
closely with regional initiatives, Garden
Grove can leverage the broader systems
of care to enhance service delivery,
streamline client transitions, and access
additional funding and technical expertise.
Strengthening these connections will not
only expand the range of available services
for individuals experiencing homelessness
but also create a more seamless, efficient,
and coordinated regional response that
benefits both clients and the broader
community.
THREATS
The system faces ongoing funding and
capacity constraints, particularly in relation
to housing development and treatment/
recovery services. Without increased
advocacy and regional alignment, the
existing programs may struggle to meet
growing demands.
The scarcity of housing opportunities for
low-income residents is another pressing
threat. Without sufficient permanent or
supportive housing stock, clients exiting
the CCNC face limited options, reducing the
longterm efficacy of the shelter program.
This situational analysis makes clear that
while the foundational elements for success
are in place— dedicated staff, proven
partners, and a clear mission—success
will depend on strategic realignment,
capacity building, and regional integration.
By addressing current weaknesses and
seizing the outlined opportunities, the City
of Garden Grove and its Tri-Cities partners
are well positioned to enhance their
system of care and achieve sustainable,
measurable outcomes in addressing
homelessness.
SWOT ANAL YSIS |
OT
354
24 VISION & MISSION STATEMENTS
Vision: Housing security is attainable for all.
This vision captures the City of Garden Grove’s
unwavering commitment to ensuring that every
individual and family—regardless of circumstance—has
access to safe, stable, and affordable housing. It reflects the belief that homelessness is not inevitable, but
avoidable, through coordinated action, compassionate
service, and a strong network of support systems.
We envision a future where housing is attainable for
all that choose to pursue it and is the foundation that enables individuals to thrive. Guided by this vision, our strategic efforts focus on building an integrated system of care that removes barriers, promotes opportunity,
and creates real pathways to housing stability.
Mission: To respectfully provide resources and dignity to those on their journey seeking housing security.
The City of Garden Grove’s mission is rooted in a deep respect for the individuals and families we serve. Our approach acknowledges the humanity of those experiencing homelessness and centers on delivering support with empathy, equity, and care.
Through collaborative partnerships, person-centered services, and a commitment to continuous improvement, we aim to reduce barriers and build trust—ensuring that every step taken toward housing security is met with dignity and opportunity. This mission guides our work within the CCNC and the broader system of care, reinforcing our belief that each person’s journey matters and deserves to be honored with compassion and respect.
| CORE VALUES
CORE VALUES
355
252025-2030 HOMELESSNESS STRATEGY
CORE VALUES/PILLARS
At the heart of Garden Grove’s strategic response to homelessness are the values that guide our decisions and shape our system of care. We are committed to:
DIGNITY &
RESPECT
Treating every
individual with
compassion and
honoring their
lived experience.
COLLABORATION
& PARTNERSHIP
Working across
sectors and
jurisdictions to
drive collective
impact.
INNOVATION &
CONTINUOUS
IMPROVEMENT
Embracing
adaptive solutions
to meet evolving
needs.
COMPASSIONATE
SERVICE
Responding to
homelesness
with empathy,
professionalism,
and a holistic lens.
CORE VALUESS |
356
26 GOAL 1: COMMUNICATION
Homelessness is a complex,
dynamic, and deeply personal crisis—
one that affects individuals, families,
neighborhoods, and entire systems of
care. Effective communication is not just
helpful but it is absolutely essential to
address homelessness. Communication
is the foundation upon which
coordination,compassion, and successful
outcomes are built.
GOAL 3: PARTNERSHIPS
Homelessness is a regional,
multi-dimensional challenge that demands
shared responsibility, collective resources,
and unified action. Partnerships are the
foundation of an effective homelessness
response because they leverage diverse
expertise, multiply impact, and create a
stronger, more coordinated system of care.
GOAL 2: SERVICES
Addressing homelessness
effectively demands a comprehensive,
coordinated, and client-centered service
delivery system that not only meets
immediate needs but also creates real
pathways to long-term stability and housing.
Enhancing service delivery is essential
to addressing homelessness because it
transforms fragmented, reactive responses
into proactive, strategic interventions
that empower individuals and strengthen
communities.
GOAL 4: QUALITY OF LIFE
At its core, homelessness is not
just a housing crisis—it is a public health,
public safety, and community well-being
challenge. Ensuring that homelessness
response efforts enhance quality of
life for everyone—those experiencing
homelessness, residents, businesses, and
stakeholders—is essential for building
a healthier, stronger, and more unified
community.
| OVERVIEW OF STRATEGIC GOALS
OVERVIEW OF
STRATEGIC GOALS
357
272025-2030 HOMELESSNESS STRATEGY
OBJECTIVES
• Effectively share information with all stakeholders utilizing multiple modes of communication.
• Strengthen the Tri-Cities collaboration with proactive, unified messaging.
KEY PERFORMANCE INDICATORS
1. Administer quarterly survey to partners and maintain a minimum score of 85% regarding communication satisfaction.
2. Track effectiveness of different communication channels (e.g. email, website, social media) to determine which channels are most effective.
GOAL 1:
COMMUNICATION
ENHANCE COMMUNICATION AND
COMMUNITY ENGAGEMENT
GOAL 1: COMMUNICATION |
358
28 COORDINATION WITH PARTNERS
Homelessness is a multi-jurisdictional challenge that requires synchronized action among cities, county agencies, service providers, law enforcement, healthcare teams, and the community at large. Clear, timely communication ensures that:
• Service providers are aligned on referrals, case management, and shelter operations.
• Tri-Cities collaboration between Garden Grove, Westminster, and Fountain Valley is consistent and effective.
• Outreach teams have real-time information on available resources like shelter beds or mental health services.
• Housing navigation is seamless, ensuring individuals move through the system without unnecessary delays.
BUILDING COMMUNITY TRUST AND ENGAGEMENT
Residents, businesses, and stakeholders need transparency to feel confident in the City’s approach to homelessness. Proactive communication allows the City to share progress reports, successes, challenges, and timelines to stakeholders and provides an opportunity for the public to support efforts related to homelessness. Garden Grove can foster public understanding, reduce stigma, and encourage collective solutions rather than division. Community trust, once built, strengthens political and financial support for critical initiatives.
ENHANCE CRISIS RESPONSE AND PUBLIC SAFETY
Homelessness often intersects with public safety and health concerns, particularly related to street outreach, encampments, and behavioral health crises. Effective communication ensures:
• Rapid sharing of critical information between outreach teams, police, and mental health providers.
• Consistent messaging to residents and businesses during visible interventions. • Reduce misunderstandings or fear when the City responds to sensitive situations.
SUPPORT SYSTEM NAVIGATION FOR CLIENTS
For individuals experiencing homelessness, navigating services can be overwhelming.
Strategic communication ensures that clients:
• Understand how to access shelter, healthcare,employment, and housing services. • Receive consistent messaging across all providers.
• Have clear points of contact and pathways to stability. | GOAL 1: COMMUNICATION
359
292025-2030 HOMELESSNESS STRATEGY
OBJECTIVES
• Prevent at-risk individuals from becoming homeless.
• Find and connect homeless individuals with resources. • Evaluate shelter operations for continuous improvement and efficiencies. • Ensure shelter operator incorporates employment training and identifies income and benefit opportunities.
KEY PERFORMANCE INDICATORS
1. Maintain a client satisfaction rating of 85% for successful client exits.
2. Track # of successful housing placements/exits.
3. Ensure 70% of clients are document ready within 90 days of entry into the CCNC.
GOAL 2:
SERVICES
ENHANCE SERVICE DELIVERY SYSTEM TO
IMPROVE RESPONSE TO HOMELESSNESS
GOAL 2: SERVICES |
360
30 INTEGRATED RESPONSE TO HOMELESSNESS
Homelessness is rarely caused by a single factor and often results from a number of complex challenges such as mental illness, substance use disorders, economic hardship, domestic violence, and systemic inequities. A fragmented approach cannot adequately address the challenges individuals experiencing homelessness face. Enhancing the service delivery system:
• Integrates housing, healthcare, mental health, substance use, employment, and social support services into a unified approach.
• Creates seamless pathways for individuals to move from crisis to stability. • Reduces duplication and inefficiency, making better use of limited resources.
MORE EFFECTIVE CLIENT OUTCOMES
Every day spent unhoused increases vulnerability to trauma, illness, and mortality. Fast and effective service delivery that connects individuals to shelter, healthcare, and housing will increase the chances of long-term recovery.
Enhancing service delivery:
• Streamlines intake and assessment processes to quickly match individuals to appropriate services.
• Strengthens case management and follow-up, ensuring that no one falls through the cracks. • Reduces unnecessary barriers that can delay or derail access to shelter, treatment, or housing.
An efficient and compassionate system can literally save lives by reducing the time people spend exposed to the dangers of homelessness.
REDUCE SYSTEMIC BARRIERS
Not all individuals experiencing homelessness face the same challenges. Y outh, seniors, veterans, survivors of domestic violence, and people with disabilities each encounter unique obstacles in accessing services. Enhancing the service delivery system will allow programs to be tailored to meet the diverse needs of subpopulations, and prioritizes accessibility, cultural competency, and trauma- informed practices.
BUILDS PUBLIC CONFIDENCE AND STRENGTHENS REGIONAL COLLABORATION The public—and regional partners—expect cities to deliver results: fewer encampments, more individuals housed, and improved community safety. A strong service delivery system demonstrates that the City is serious, professional, and effective in its homelessness response.
Enhancing the system:
• Shows measurable progress that can be shared with stakeholders and the community. • Builds credibility with funding partners, enabling the City to attract more resources. • Facilitates regional alignment with Central SPA and County-wide efforts, maximizing collective impact.
| GOAL 2: SERVICES
361
312025-2030 HOMELESSNESS STRATEGY
LEVERAGE PARTNERSHIPS, FUNDING AND
RESOURCES TO MAXIMIZE UTILIZATION TO THE
BENEFIT OF CLIENTS
OBJECTIVES
• Collaborate with regional partners to access resources. • Maximize funding opportunities and leverage resources to increase housing opportunities.
KEY PERFORMANCE INDICATORS
1. Increase the # of client services facilitated via partner referrals by 5% annually.
2. Increase grant and leveraged funding by 2% annually.
GOAL 3:
PARTNERSHIP
GOAL 3: PARTNERSHIP |
362
32 EXPANDING CAPACITY AND EXPERTISE
Garden Grove cannot—and should not—carry the entire burden of homelessness response alone. There are nonprofit organizations, public agencies, housing developers, healthcare providers, workforce development groups, and faith communities that specialize in key areas of need. By working in partnership, the City can build a more comprehensive and specialized system of care without duplicating efforts or overextending its resources.
FUNDING COLLABORATION UNLOCKS GREATER RESOURCES
Homelessness response is resource-driven. Successful strategies require sustained investment in shelter operations, outreach teams, case management, housing subsidies, infrastructure improvements, and more. Through strategic partnerships, Garden Grove can tap into federal, state, regional, and private funding streams that would otherwise be out of reach if pursued independently.
CLIENT NAVIGATION AND SYSTEM EFFICIENCY
From the perspective of someone experiencing homelessness, navigating a fragmented system is overwhelming and discouraging. Without collaboration between service providers, individuals often face repeat assessments, conflicting information and delayed access to services. Clients benefit from a seamless, coordinated system that treats their time, dignity, and needs with respect.
REGIONAL ALIGNMENT INCREASES COLLECTIVE IMPACT
Garden Grove is part of the Central SPA, and homelessness is a regional issue that spills across city boundaries. By working closely with Westminster, Fountain Valley, the County of Orange, and other Central SPA stakeholders, Garden Grove can align strategies, share resources, and amplify success.
| GOAL 3: PARTNERSHIP
363
332025-2030 HOMELESSNESS STRATEGY
OBJECTIVES
• Evaluate policies and identify regional alignment opportunities. • Encampment prevention through environmental design.
• Develop tools to enable real time communication and deployment of resources.
KEY PERFORMANCE INDICATORS
1. Decrease # of public safety calls related to homelessness by 5% annually.
2. Maintain a minimum resident & business satisfaction score of 85% through statistically valid polling.
GOAL 4:
QUALITY OF LIFE
IMPROVE QUALITY OF LIFE FOR GARDEN GROVE
RESIDENTS, BUSINESSES, AND STAKEHOLDERS
GOAL 4: QUALITY OF LIFE |
364
34 COMMUNITY ENGAGEMENT
Homelessness impacts more than just those experiencing it—it affects public spaces, parks, business corridors, residential neighborhoods, and civic engagement. If quality of life declines, community trust, safety perceptions, and economic vitality are all at risk.
By valuing everyone’s well-being, the City ensures that homelessness response is not a zero-sum issue, but a community-building opportunity.
A BALANCED APPROACH PROMOTES COMPASSION AND ACCOUNTABILITY Residents expect the City to balance compassionate services for individuals experiencing homelessness with accountability measures that protect public spaces and quality of life.
Focusing on quality of life:
• Reinforces the City’s commitment to public safety, cleanliness, and neighborhood standards.
• Discourages unsafe or unhealthy conditions, such as unmanaged encampments, while still connecting individuals to appropriate resources. • Prevents resentment and division by addressing community concerns alongside individual needs.
• Enables businesses to thrive enhancing the City’s tax base to reinvest back into the community.
A strategy that respects both the needs of the unhoused and the rights of the housed strengthens social cohesion and civic trust.
BUSINESS AND ECONOMIC HEALTH
Small businesses, retail corridors, and tourism contributes not only to the economy but to the identity and vibrancy of Garden Grove. Unchecked impacts from homelessness—such as visible street homelessness, public health issues,or customer safety concerns—can hurt local businesses and drive disinvestment. A thriving business community provides jobs, services, and social stability, which are vital to long-term homelessness prevention efforts.
PUBLIC PERCEPTION SHAPES POLITICAL AND FINANCIAL SUPPORT Homelessness response programs—especially shelters, supportive housing, and outreach expansions—often require public funding and political will. Public perception about whether these programs are “working” is directly tied to whether residents and businesses feel that quality of life is improving. When residents see that homelessness response efforts enhance, not erode, their neighborhoods, they are far more likely to engage, invest, and support ongoing initiatives.
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Vision: Housing Security is attainable for all.
2025-2030 HOMELESSNESS
COMMUNICATION
GOAL
Enhance communication and community
engagement
OBJECTIVES
Effectively share information with all
stakeholders utilizing multiple modes of
communication
Strengthen the Tri-Cities collaboration
with proactive, unified messaging
KPIs
Administer quarterly survey to partners
and maintain a minimum score of 85%
regarding communication statisfaction.
Track effectiveness of different
communication channels (e.g. email,
website, social media) to determine
which channels are most effective.
SERVICES
GOAL
Enhance service delivery systems to
improve response to homelessness
OBJECTIVES
Prevent at-risk individuals from
becoming unhoused
Find and connect unhoused individuals
with resources
Evaluate shelter operations for
continuous improvement and
efficiencies
Ensure shelter operator incorporates
employment training and identifies
income and benefit opportunities
KPIs
Maintain a client satisfaction rating of
85% for successful client exits.
Track # of successful housing
placements/exits
Ensure 70% of clients are document
ready within 90 days of entry into the
CCNC.
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PARTNERSHIPS
GOAL
Leverage partnerships, funding and
resources to maximize utilization to the
benefit of clients
OBJECTIVES
Collaborate with regional partners to
access resources
Maximize funding opportunities and
leverage resources to increase housing
opportunities
KPIs
Increase the # of client services
facilitated via partner referrals by 5%
annually.
Increased grant and leveraged funding
by 2% annually.
QUALITY OF LIFE
GOAL
Improve quality of life for Garden Grove
residents, businesses, and stakeholders
OBJECTIVES
Evaluate policies and identify regional
alignment opportunities
Encampment prevention through
environmental design
Encampment prevention through
environmental design
KPIs
Decrease # of public safety calls related
to homelessness by 5% annually
Maintain a minimum resident & business
satisfaction score of 85% through
statistically valid polling.
Mission: To respectfully provide resources and dignity to those on their journey seeking housing security.
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