6. Trash or garbage cans, bins, boxes, or other such containers that are unclean, uncovered, or damaged and that are stored in a front or side yard such that they may be visible from the public street and may be detrimental to health, safety, or general welfare;
7. Excavations, ponds, pools, or unenclosed or empty swimming pools that may be an attractive nuisance to children or in such other condition as may be detrimental to the public health, safety, or general welfare;
8. Areas for the movement, parking, loading, repair or storage of vehicles shall be paved with a continuous, impervious material so as provide an even, unbroken driving surface, and be striped as required by Sections
9.08.040.130 through 9.08.040.190, Sections 9.12.040.160 through
9.12.040.220, and Sections 9.16.040.13 0 through 9.16.040.210 to assure proper parking alignment and circulation. These requirements shall not apply to areas beneath mobile homes;
9. Unpainted buildings and those having dry rot, warping, or termite infestation.
Buildings on which the condition of the paint has become so deteriorated as 387
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to permit decay, excessive checking, cracking, peeling, dry rot, warping, or termite infestation so as to render the buildings unsightly and in a state of disrepair.
C. This Section Not Exclusive Regulation. This section is not the exclusive regulation of property maintenance. It shall be supplemental and in addition to the other regulatory codes, statutes, and ordinances heretofore or hereinafter enacted by the City, State of California, or any other legal entity or agency having jurisdiction.
D. Enforcement Officer, Right of Entry. Except as otherwise provided herein, the provisions of this section shall be administered by the City Manager or his or her designee. In the administration of this part, the City Manager or his or her designee may, after first providing notice required by law, or securing a court order from a court of competent jurisdiction, enter upon private or public property to examine the condition of the property for any of the conditions listed above in this section.
E. Rehabilitation of Public Nuisance. All or any part of premises or property found to be maintained in violation of this section may be abated by rehabilitation, demolition, or repair pursuant to the procedures set forth herein.
F. Finding of Nuisance. Whenever the City Manager or his or her designee shall find that any premises or property within the City is maintained contrary to the provision of this section, he or she shall give notice to the owner of record of said property as reflected in the most recent county assessor's parcel roll, stating the violation of said section and the conditions that constitute a public nuisance. Such notice shall set forth a reasonable time limit for correction of the violation and of the public nuisance, and may also set forth suggested methods for correcting same. Such notice shall be personally served upon or mailed to the property owner of record by certified mail.
G. Hearing to Abate Nuisance. In the event said owner of record shall fail, neglect, or refuse to comply with the notice to correct violations provided for in this section above, a public hearing before the Neighborhood Improvement and Conservation Commission shall be held for the purposes stated in conduct of hearing, findings, orders and determinations, in this section below. Notice of said hearing shall be personally served upon or mailed to the property owner of record at least 10 dayscalendar days before the hearing by certified mail, with a five-day return requested. If the foregoing notice is returned undelivered by the United States Post Office, the hearing shall be continued to a date not less than 10 dayscalendar days from the date of such return.
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L. Cost Accounting—Notification. The City Manager or his or her designee shall keep an account of the cost, including incidental expenses, of abating such nuisance on each separate lot or parcel of land where the work is done, and shall render a sworn itemized report in writing to the City Council showing the cost of abatement and the rehabilitating, demolishing or repairing of said premises, buildings, or structures, including any sa lvage value relating thereto; provided that at least five dayscalendar days before said report is submitted to said City Council, a copy of same shall be personally served or mailed by certified mail to the property owner of record, together with a notice of the time when said report shall be heard by the City Council for confirmation. Proof of said service or mailing shall be made by affidavit filed with the City Clerk. The term "incidental expenses" shall include, but not be limited to, the actual expenses and cost of the City in the preparation of notices, specifications and contracts, and inspecting the work and the cost of printing and mailing required hereunder, and any other legal and administrative enforcement costs.
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9.32.200. Property Maintenance.
A. Purpose. The purpose of this section is to establish minimum standards for maintenance of properties that are consistent with community standards and that promote sound maintenance practices, enhance livability, and improve the community appearance of the City. The goal of this title is to prevent properties from becoming blighted, resulting in diminution in the enjoyment, use, and property values of surrounding properties that are well maintained.
B. It is unlawful for any person owning, leasing, occupying or having charge or possession of any property in the City to maintain such property in such manner that any of the following conditions are found to exist thereon:
Buildings or structures not secured or locked, and accessible to persons not authorized to use such structures;
Buildings or structures with broken windows for longer than 21 dayscalendar days;
Clotheslines, clothing, or household fabrics hung, dried or aired in such a manner so as to be visible from public streets;
Trash, garbage or refuse cans, bins, boxes or other such containers stored in front or side yards and visible from public streets. Refuse containers may be placed at the collection location in public view between 4:00 p.m. on the day preceding collection until 10:00 p.m. on the day of collection. Dumpsters or 389
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storage bins may be located in front yard areas while excavation, construction or demolition operations covered by an active building permit are in progress on the subject property;
The following items are prohibited from being stored in the front or side yards and, if stored in rear yards, may not be visible from a public street, alley, or adjoining property: lumber, trash, debris, abandoned or unused furniture, stoves, sinks, or other household fixtures or equipment.
Construction equipment, machinery, or materials is only permitted on the property while construction or demolition operations covered by an active building permit are in progress. Landscape equipment is permitted only while work is in progress on the subject property;
Vegetation, including but not limited to trees, shrubbery, or grass, that is overgrown, dead, decayed, or diseased. Grass higher than eight inches or weeds higher than 18 inches shall be considered overgrown; Unpainted buildings and those having dry rot, warping, or termite infestation in excess of 15% of the surface area. Buildings on which the condition of the paint has become so deteriorated as to permit decay, excessive checking, cracking, peeling, dry rot, warping, or termite infestation, so as to render the buildings unsightly and in a state of disrepair.
9.32.210. Property Maintenance – Vacant, Unoccupied or Abandoned Buildings.
A. Intent and Findings. The City Council es tablishes private property maintenance standards as a city and community goal to preserve and enhance the aesthetic appearance of buildings and appurtenant amenities. It is critical to the promotion of the public health, safety and welfare that the City establish minimum property maintenance standards to maintain and enhance the livability and community appearance with respect to vacant, unoccupied or abandoned buildings throughout the City. The City Council further finds that it is a goal of the City to engage in the promotion of an aesthetically pleasing community through the enforcement of property maintenance standards to prevent real property from becoming blighted, unattractive, dilapidated or deteriorated, which conditions result in diminution in property values and impairment of enjoyment and use of surrounding properties.
B. This section is enacted pursuant to Article XI, Section 7 of the California Constitution.
C. Property Maintenance Standards for Vacant, Unoccupied or Abandoned Buildings.
It is unlawful and a public nuisance for any person, corporation or other legal entity to own, lease, occupy, control or manage any vacant, unoccupied or abandoned structures and buildings in conflict with the following standards:
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1. Landscaping. All existing plant vegetation shall be maintained in a healthy state. Vegetation, including but not limited to, plants, trees, shrubbery and grass that are dead, decayed or diseased shall be removed. Overgrown vegetation shall be trimmed. Grass and weeds higher than 18 inches shall be considered overgrown.
2. Debris and Stored Materials. The property shall be kept clean and sanitary.
There shall be no accumulation of debris, junk, wood, trash or other materials on the property. There shall be no materials, equipment, vehicles, broken or discarded furniture, boxes, lumber, junk or trash stored in any yard area of the property. There shall be no trash or garbage container bins or boxes that are unclean, uncovered or damaged. Debris, furniture, fixtures, construction materials, trash, equipment, inoperable vehicles, and auto parts shall be removed on a weekly basis.
3. Unpainted and Deteriorated Painted Buildings. Those buildings, or portions of buildings, whose paint has been deteriorated, graffitied or eroded, shall be repainted. Deterioration is exhibited by substantial fading of color, or decay, or excessive cracking, or peeling, discoloration, dry rot, warping or termite infestation so as to render the building and related structures unsightly. Any repairs, additions, improvements, boarded up materials, or additions of any kind whatsoever made to the building or related structures shall be in the same color scheme of the existing improvements.
4. Damaged Buildings and Structures. Buildings or structures, or portions thereof, that are damaged, dilapidated or inadequately maintained, shall be repaired. Buildings and structures shall be kept free of any hazardous conditions that require repair, or proper maintenance, including but not limited to, broken glass in windows and doors, and exposed wiring.
5. Infestations. The property shall be kept free of any rodent, varmint or insect infestation, as determined by county vector control.
6. Excavations and Pools. Any excavation, pool, pond or swimming pool posing an attractive nuisance or other condition constituting a detriment to the public health, safety or general welfare shall be filled in with earth, in accordance with the Uniform Building Code and other applicable codes. This requirement applies to pools where the bottom is not visible from the deck.
7. Security, Lighting and Fencing. Buildings and structures shall be secured, locked and made inaccessible to persons not authorized to use same. Unless perimeter or security fencing was installed as part of an approved site plan, perimeter or security fencing may be installed only with the approval of the City Manager or designee.
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a. Exterior lighting shall be provided and maintained operational during all hours of darkness to illuminate the building perimeter and yard areas.
Lighting shall be of sufficient power to illuminate and make easily discernible the appearance and conduct of all persons on the property. b. Fencing (including, but not limited to, chain link) shall not be permitted to secure the property; existing fencing installed on the property shall be removed within 60 dayscalendar days from enactment of this section.
This prohibition is based on the finding that the mere appearance of these fences contributes to further decay, dilapidation and unsightly appearance of the property as fences, intended to secure a vacant property, provides the owner a false sense of security and makes it easier to forsake property maintenance.
D. Enforcement of Violations.
1. Notice of Violation/Remedial Plan. Any person, corporation or other legal entity who owns, leases, occupies, controls or manages the subject property receiving a notice of violation of this section shall provide to the City, within 10 dayscalendar days, a remedial plan containing specific items of corrective work to address the noted violations, which plan shall first be approved by the City Manager or designee, before corrective work is undertaken. The corrective work shall be completed withi n the time prescribed by the City Manager or designee. In the event that the responsible party proposes demolition as the remedial plan, the demolition plan shall provide for removal of unsightly cement foundations or other structures remaining after the demolition work.
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Chapter 9.60 SPECIAL HOUSING REGULATIONS.
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9.60.020 Review of Housing Development Projects.
A. Compliance with State Law.
1. Generally. Notwithstanding the provisions of Chapter 9.32, all proposed housing development projects shall be reviewed in accordance with requirements and limitations imposed by state law, including, but not limited to, Government Code Sections 65589.5, 65915-65918, 65583, 65584, 65863, 65905.5, 65912.100-65912.105, 65852.24, 65852.28, 65913-65913.116, 65914.7, 65940-65945.3, 66300, 65650-65656, and 65660- 65688, and 66499.41. Except to the extent otherwise provided by state law, such review shall ensure that proposed housing development projects comply with all applicable , objective standards, provisions, conditions and requirements of the general plan, this chapter, and other applicable ordinances and policies of the City.
2. Findings Required for Disapproval of Housing Development Projects. As provided by state law, when a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, a City hearing body or official shall not disapprove the project or impose a condition that the project be developed at a lower density unless the hearing body or official makes written findings, based on a preponderance of the evidence on the record, that: (a) the project would have a specific, adverse impact on public health and safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density; and (b) there is no feasible method to satisf actorily mitigate or avoid the specific adverse impact, other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. As set forth in subdivision (j)(1) of Government Code Section 65589.5, as used in this paragraph, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application for the housing development project was deemed complete.
3. Additional Findings Required for Disapproval of Housing Development Projects for Very Low-, Low-, or Moderate-Income Households. As provided by state law, a City hearing body or official shall not disapprove a housing 393
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development project for very low-, low-, or moderate-income households, or an emergency shelter, or condition approval in a manner that renders the housing development project infeasible for development for the use of very low, low-, or moderate-income households, or an emergency shelter, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as required by subdivision (d) of Government Code Section 65589.5. For purposes of this paragrap h, "housing for very low-, low-, or moderate-income households" shall have the meaning set forth in subdivision (h)(3) of Government Code Section 65589.5.
B. Consistency Review of Housing Development Project Applications. The Department Director shall be responsible for reviewing each application for a housing development project for consistency and compliance with applicable, objective General Plan, zoning, and subdivision standards and criteria within the time period(s) prescribed by law. In accordance with subdivision (j)(2)(A) of Government Code Section 65589.5, if the Department Director considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision, the Department Director shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons the Department Director considers the housing develo pment to be inconsistent, not in compliance, or not in conformity. For proposed housing development projects containing 150 or fewer housing units, the Department Director shall provide said written documentation and explanat ion within 30 days of the date that the project application is determined to be complete. For proposed housing development projects containing more than 150 housing units, the Department Director shall provide said written documentation and explanation within 60 days of the date that the project application is determined to be complete. In accordance with subdivision (j)(2)(B) of Government Code Section 65589.5, a City hearing body or official may not disapprove a proposed housing development project on the basis that the proposed project is inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision not identified in the written documentation and explanation provided by the Department Director.
C. Discretionary Review of Housing Development Projects. Notwithstanding Section 9.32.030 or any other provision of this title, the following provisions shall apply to the consideration of applications for site plans, conditional use permits, or other quasi-judicial land use permits required for the construction or operation of a housing development project, as defined in subdivision (h)(2) of Government Code Section 65589.5, which is not subject to ministerial review by the Department Director pursuant to subsection 9.60.020.D:
394
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1. Public Notice and Hearings.
a. Except as modified by this section, land use permits for housing development projects shall be subject to the notice, hearing, and appeal procedures set forth in Chapter 9.32.
b. For so long as Government Code Section 965905.5 so provides and remains in effect, no more than five hearings or continued hearings shall be conducted in connection with consideration of an application for a housing development project, unless otherwise agreed to by the applicant or the applicant's designated representative. Said limit does not apply to any hearing to review a legislative approval required for a housing development project. The opening of a public hearing solely for the purpose of continuing the hearing to a future date shall not count as one of the five allowed hearings, provided no substantial discussion by the hearing body occurs and no testimony is taken. The final review authority shall consider and either approve, conditionally approve, or disapprove the application at one of the five hearings allowed pursuant to Government Code Section 965905.5; provided, however, that, unless otherwise provided by law, the application shall not automatically be deemed approved if the final review authority does not act on the application at one of the five allowed hearings.
2. Findings Required for Disapproval of Housing Development Projects. The findings set forth in subdivision D of Section 9.32.030 of this title shall not be required to be made in order to approve an application for a land use permit for a housing development project. Rather, the hearing body shall approve an application for a land use permit for a housing development project unless it makes one or more of the following findings based on the information presented at public hearing and/or on the record:
a. That the proposed development pr oject is inconsistent, not in compliance, or not in conformity with one or more applicable, objective standards, provisions, conditions or requirements of the General Plan, Title 9, or other applicable ordinances or policies of the City. b. That the provisions of the California Environmental Quality Act have not been complied with.
c. That, based on a preponderance of the evidence on the record, the proposed development project would have a specific, adverse impact, as defined in subdivision (j)(1)(A) of Government Code Section 65589.5, on public health and safety unless the project is disapproved, 395
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and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, other than the disapproval of the proposed project.
In addition, notwithstanding the foregoing, provided the provisions of the California Environmental Quality Act have been complied with, the hearing body may not disapprove an application for a land use permit for a housing development project for very low-, low-, or moderate-income households, as defined in subdivision (h)(3) of Government Code Section 65589.5, or an emergency shelter, unless it also makes the written findings required by subdivision (d) of Government Code Section 65589.5.
3. No Net Loss Findings. If the approval of a land use permit for a housing development project will result in fewer residential units by income category than projected for the site in the General Plan housing element, the "no net loss" provisions of Government Code Section 65863 and Section 9.60.030 of this code apply and the hearing body must also make the required findings. If the hearing body is unable to find that the remaining sites in the housing element are adequate to accommodate the City's share of the regional housing ne ed by income level, and the City is required to identify and make available adequate additional sites pursuant to subdivision (c)(2) of Government Code Section 65863, the final review authority for the land use permit shall be the City Council.
4. Conditions of Approval. The hearing body may impose reasonable conditions of approval that are necessary to ensure that the proposal complies with all local, state and federal laws, and that impacts resulting from the development are adequately mitigated, subject to the following limitations imposed by state law:
a. The hearing body shall not impose a condition on approval of a land use permit for a housing development project that the project be developed at a lower density unless the hearing body makes written findings, based on a preponderance of the evidence on the record, that the proposed development project would have a specific, adverse impact, as defined in subdivision (j)(1)(A) of Government Code Section 65589.5, on public health and safety unless the project is disapproved or developed at a lower density, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, other than the disapproval of the proposed project or the approval of the project upon the condition that it be developed at a lower density. b. The hearing body shall not condition approval of a land use permit for 396
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a housing development project for very low-, low-, or moderate- income households, as defined in subdivision (h)(3) of Government Code Section 65589.5, or an emergency shelter, in a manner that renders the housing development project infeasible for development for the use of very low-, low-, or moderate-income households, or an emergency shelter, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as required by subdivision (d) of Government Code Section 65589.5.
D. Ministerial Review of Housing Developm ent Projects. The following provisions apply in the event that state law or any provision of this code requires a housing development project to be reviewed ministerially and/or designates a housing development project a "use by right" as defined in Government Code Section 65583.2:
1. The Department Director may prepare application forms and provide blanks for such purposes and may prescribe the type of information to be provided in the application by the applicant. No application shall be accepted unless it is completed as prescribed. All such applications shall require fees to be paid in accordance with a resolution adopted by the City Council.
2. The Department Director is authorized to review and approve or deny the proposed housing development project in accordance with applicable law.
Decisions of the Department Director may be appealed to the City Manager, whose decision shall be final.
3. If the ministerial approval of a housing development project will result in fewer residential units by income category than projected for the site in the general plan housing element, the "no net loss" provisions of Government Code Section 65863 and Section 9.60.030 of this code apply and the Department Director must also make the required findings.
4. Except to the extent otherwise provided by state law, the Department Director shall not approve a proposed housing development project unless it complies with all applicable, objective standards, provisions, conditions and requirements of the general plan, Title 9 of this code, and other applicable ordinances and policies of the City.
E. Standard Conditions for Housing Development Projects. The Department Director is authorized to promulgate, modify, and enforce standard conditions and requirements that apply to approved housing development projects, which implement applicable, objective state, City, and other local agency standards, 397
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provisions, and conditions, provided such standard conditions and requirements are consistent with the provisions of this Code and state law.
F. City Sponsored Housing Development Projects. Except as otherwise determined by the City Manager or designee, housing development projects which are owned or financially assisted by the City of Garden Grove or the Garden Grove Housing Authority, incl uding, without limitation, emergency shelters, low-barrier navigation centers, transitional or supportive housing developments, and the conversion of existing hotels or motels to affordable housing or permanent supportive housing, shall be exempt from the development standards and procedures set forth in or promulgated pursuant to Title 9 of this code.
9.60.040. Residential Density Bonus.
A. Application. In addition to any other review required for a proposed housing development project, applications for a density bonus shall be filed with the planning division. The application shall be filed concurrently with an application for the required land use action.
B. Processing. City staff shall process the application for a density bonus in the same manner as, and concurrently with, the application for the land use approval that is required by this code.
C. Documentation. The applicant shall submit reasonable documentation to establish eligibility for a requested density bonus , incentives or concessions, waivers or reductions of development standards, and reduced parking ratios.
D. Replacement Housing Requirement. Purs uant to subdivisi on (c)(3) of Government Code Section 65915, the applicant will be ineligible for a density bonus or other incentives unless the applicant complies with the replacement housing requirements therein, including in the following circumstances:
1. The housing development is proposed on any parcel(s) on which rental dwelling units are subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; or
2. The housing development is proposed on any parcel(s) on which rental dwelling units that were subject to a recorded covenant, ordinance, or law that restricted rents to levels affordable to persons and families of lower or very low income have been vacated or demolished in the five-year period preceding the application; or
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3. The housing development is proposed on any parcel(s) on which the dwelling units are occupied by lower or very low-income households; or
4. The housing development is proposed on any parcel(s) on which the dwelling units that were occupied by lower or very low-income households have been vacated or demolished in the five-year period preceding the application.
E. Density Bonus Awarded. For a housing development qualifying pursuant to the requirements of Government Code Section 65915 or 65915.5, the City shall grant a density bonus in an amount specified by Government Code Section 65915 or 65915.5, as those sections may be amended from time to time.
Except as otherwise required by Government Code Section 65915, the density bonus units shall not be included when calculating the total number of housing units that qualifies the housing development for a density bonus.
F. Calculation. “Density bonus” means a density increase over the otherwise maximum allowable gross residential density as of the date of application, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density. For the purpose of calculating the density bonus, subject to subdivision (o) of Government code Section 65915, the “maximum allowable residential dens ity” or “base density” shall be the greatest number of units allowed to be developed on the parcel(s) under this title, an applicable specific plan, or the Land Use Element of the General Plan.For the purpose of calculating the density bonus, the "maximum allowable residential density" shall be the maximum allowable gross residential density established under the applicable development standards for the parcel(s), subject to subdivision (o) of Government Code Section 65915.
G. Incentives/Concessions. The City shall grant the applicant the number of incentives and concessions required by Government Code Section 65915.
The City shall grant the specific concession(s) or incentive(s) requested by the applicant, unless it makes any of the relevant written findings stated in Government Code Section 65915(d). Senior citizen housing developments that qualify for a density bonus shall not receive any incentives or concessions, unless Government Code Section 65915 is amended to specifically require that local agencies grant incentives or concessions for senior citizen housing developments.
H. Physical Constraints. Except as restricted by Government Code Section 65915, the applicant for a density bonus may submit a proposal for the waiver or reduction of development standards that have the effect of physically precluding the construction of a housing development incorporating the density bonus and any incentives or concessions granted to the applicant. A 399
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request for a waiver or reduction of development standards shall be accompanied by documentation demonstrating that the waiver or reduction is physically necessary to construct the housing development with the additional density allowed pursuant to the density bonus and incorporating any incentives or concessions required to be granted. The City shall approve a waiver or reduction of a development standard, unless it finds that:
1. The application of the development standard does not have the effect of physically precluding the construction of a housing development at the density allowed by the density bonus and with the incentives or concessions granted to the applicant;
2. The waiver or reduction of the development standard would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5, upon health or safety, and for which there is no feasible method to satisfac torily mitigate or avoid the specific adverse impact;
3. The waiver or reduction of the development standard would have an adverse impact on any real property that is listed in the California Register of Historical Resources; or
4. The waiver or reduction of the development standard would be contrary to state or federal law.
I. Parking. The applicant may request, and the City shall grant, a reduction in parking requirements in accordance with Government Code Section 65915(p), as that section may be amended from time to time.
J. Regulatory Agreement. The property owner(s) shall enter into a regulatory agreement with the City pursuant to Section 9.60.050, which satisfies the criteria set forth in subdivision (c) of Government Code Section 65915.
K. Density Bonus Law.
1. Compliance. The applicant shall comply with all requirements stated in Government Code Sections 65915 through 65918. The requirements of Government Code Sections 65915 through 65918, and any amendments thereto, shall prevail over any conflicting provision of this Code.
2. Excluded Development. An applicant shall not receive a density bonus or any other incentive or concession if the housing development would be excluded under Government Code Section 65915.
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3. Interpretation. The provisions of this subdivision shall be interpreted to implement and be consistent with the requirements of Government Code Sections 65915 through 65918. Any changes to Government Code Sections 65915 through 65918 shall be deemed to supersede and govern over any conflicting provisions contained herein.
9.60.050. Affordable Housing Regulatory Agreements.
A. Purpose. The purpose of this section is to establish minimum requirements and procedures for the preparation, execution, and recording of regulatory agreements establishing covenants to ensure the initial and continued affordability of income-restricted reside ntial dwelling units required to be provided in conjunction with the approval of a housing development project pursuant a provision of this code or state law.
B. Definitions. As used in this section, the following terms shall have the following meanings:
1. "Affordable units" means residential dwelling units required to be made affordable to, and occupied by, households with incomes that do not exceed the limits specified in applicable law for middle income, moderate-income, lower income, very low income, or extremely low income households, as applicable, at an affordable rent or affordable housing cost, pursuant to state law or any provision of this code.
2. "Owner" means the record owner or owners of the parcel or parcels on which a proposed housing development project containing affordable units is located.
3. "Regulatory agreement" means an agreement entered into between an owner and the City pursuant to this section.
C. Requirement for Regulatory Agreement. Whenever an applicant for a housing development project offers to or is required as a condition of development pursuant to state law or any provision of this Code to provide a specified number or percentage of affordable units as part of the project, the owner shall enter into a regulatory agreement with the City meeting the requirements of this section in the form approved by the City Attorney.
D. Required Provisions of Regulatory Agreements. Unless otherwise provided by law or authorized by the City Manager, each regulatory agreement shall include provisions addressing or requiring the following:
1. Identification of Affordable Units. The number, affordability level, unit size 401
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mix, and location requirements for the affordable units shall be set forth in the regulatory agreement.
a. Unit Size Mix. To the extent prac ticable, the size and bedroom count of the affordable units reserved and allocated for each income category shall at all times be proportional to the size and bedroom count mix of all units in the project, provided, however, that the property owner may substitute a larger unit for a smaller unit.
b. Location Requirements. For mixed income projects, the regulatory agreement shall require that affordable units shall be integrated with the market rate units so that there is a mix of affordable and market rate units in each building, and shall contain provisions to ensure that the project shall complyies with the requirements set forth in Health and Safety Code Section 17929. For affordable units that will be offered for sale, the regulatory agreement shall specifically identify each affordable unit. For affordable units that will be rented, Tt he regulatory agreement may allowshall require the affordable units in a rental project to be "floating" units that are not permanently designated, provided that at no time shall a majority of the affordable units be congregated to a specific section of the project.
2. Timing of Construction. The regulatory agreement shall require that the affordable units be constructed concurrently with or prior to other units in the housing development project.
3. Affordability Period for Affordable Units. The regulatory agreement shall require that the affordable units remain affordable to, and be occupied by, persons and families of the required income level at an affordable rent or affordable housing cost, as applicable, for the minimum period of time required by law. Where a minimum affordability period is not otherwise specified by statute or ordinance, the required affordability period shall be a minimum of 30 years.
4. Annual Tenant Income Verification , Compliance Reporting, and Certification. For projects containing rental affordable units that will be rented, the regulatory agreement shall include uniform provisions requiring the owner to annually obtain written certifications from, and to verify and certify, prior to the initial occupancy, and annually thereafter, that, each tenant household occupying an affordable unit meets the applicable income and eligibility requirements established for the affordable unit, and to annually prepare a compliance report and certify that the affordable units are in compliance with the regulatory agreement.
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5. Eligibility of Initial Buyers of For-Sale Affordable Units. For projects containing for-sale affordable units that will be offered for sale , the regulatory agreement shall include uniform provisions requiring the owner to verify that the initial buyer(s) of each affordable unit be ofmeet the applicable income level and eligibility requirements established for the affordable unit shall require the initial buyer(s) of each affordable unit toand occupy the affordable unit at all times until resale of the affordable unit to another qualified buyer . Where applicable, the regulatory agreement shall contain provisions satisfying the criteria set forth in paragraph (2) of subdivision (c) of Government Code Section 65915. The regulatory agreement shall also require the initial purchaser and, if applicable, each subsequent purchaser, of an affordable unit, to execute and/or record one or more agreements and/or restrictive covenants benefiting and enforceable by the City, which address, among other things, the purchaser's obligations pertaining to certification of income, financing or refinancing of the unit, occupancy of the unit, property maintenance, insurance, periodic certification of compliance with applicable agreement terms, and re-sale of the unit (collectively, “Homebuyer Documents”).
Homebuyer Documents may include, without limitation promissory notes, deeds of trust, reimbursement agreements, option agreements, equity sharing agreements, and/or other covenants and regulatory documents necessary to ensure continued compliance with pertinent provisions of applicable law, conditions of approval, and the regulatory agreement for the required affordability period.
6. Equity Sharing Provisions. For proj ects containing for-sale affordable units, the regulatory agreement shall contain provisions establishing an equity sharing arrangement consistent with the provisions set forth in paragraph (2) of subdivision (c) of Government Code Section 65915.
Upon resale, the seller of the unit shall retain the value of any improvements, the down payment, and the seller's proportionate share of appreciation. The City shall recapture any initial subsidy and its proportionate share of appreciation.
6. Annual Compliance Report. Each regulatory agreement shall contain provisions requiring the owner to submit an annual compliance report containing specified information to the City in a form reasonably satisfactory to City Manager and to annually certify that the affordable units are in compliance with the requirements of the regulatory agreement.
7. Maintenance Standards. The regulatory agreement shall contain uniform provisions governing the owner's maint enance obligations and the City's rights in the event the owner fails to adhere to its maintenance obligations. 403
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8. Recordkeeping Requirements. The regulatory agreement shall contain uniform provisions requiring the owner to maintain affordable unit sales documents, tenant leases, income certifications, and other books, documents, and records related to the sale or rental of the affordable units and operation of the project for a period of not less than five years after creation of each such record; to allow the City to inspect any such books, documents, or records and to conduct an independent audit or inspection of such records at a location that is reasonably acceptable to the City Manager upon prior written notice; and to permit the City and its authorized agents and representatives to access the property and examine the housing units and to interview tenants and employees for the purpose of verifying compliance with the regulatory agreement.
9. Marketing Programand Sale of For-Sale Affordable Units . For projects containing affordable units that will be offered for sale, Tt he regulatory agreement shall contain provisions requiring the owner: (a) to prepare and obtain the City's approval of a marketing program for the leasing or sale of the affordable units to qualified purchasers prior to the issuance of a certificate of occupancy for any portion of the project; (b) to thereafter market the leasing or sale of the affordable units in accordance with the marketing program; and (c) to provide the City with periodic reports with respect to the leasing or sale of the affordable units. Except as otherwise approved by the City, the marketing program shall include, without limitation, (i) a plan for and detailed description of how the owner will solicit and identify potential qualified purchasers for the affordable units; (ii) a description of the process the owner will implement to evaluate and select qualified purchasers for the affordable units; (iii) the form of the purchase and sale agreement the owner proposes to enter into with qualified purchasers; (iv) copies of forms, disclosures, and other documents owner intends to provide to qualified purchasers; and (v) such other information reasonable requested or required by the City.
10.Marketing and Management Plan for Rental Affordable Units . For projects containing affordable units that will be rented, Tthe regulatory agreement shall contain uniform provisions regarding property management and management responsibilities and shall require the owner to prepare and obtain the City's approval of a management plan for the project prior to the issuance of a certificate of occupancy for any portion of the project ., which sets forth The marketing and management plan shall address in detail, without limitation, the following matters: (a) how the owner plans to market the affordable units to prospective tenant households;the owner's property management duties, including, but not limited to, a plan to manage and maintain the site and the affordable units; (b) procedures for the selection of tenants of rental affordable units, including a 404
Exhibit “A”
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description of how the owner plans to certify the eligibility of tenant households; (c) procedures for annually verifying income and recertifying the eligibility of tenants of rental affordable units; (d) the standard form(s) of rental agreement(s) the owner proposes to enter into with tenants of affordable units; (e) procedures for the collection of rent; (f) procedures for eviction of tenants; (g) procedures for ensuring that the required number and unit size mix of rental affordable units is maintained and that "floating" affordable units do not become congregated to a certain area of the building or project; (h) the owner's procedures for complying with its monitoring and recordkeeping obligations; (i) the owner’s property management duties; (j) the owner's plan to manage and maintain the project and the affordable units; (k) the rules and regulations of the property and manner of enforcement; and (l) a program addressing security system and crime prevention programat the project.
11.Provisions Regarding Section 8 Certificates. For projects containing rental affordable units, the regulatory agreement shall include uniform provisions regarding the acceptance of federal certificates for rent subsidies pursuant to the existing program under Section 8 of the United States Housing Act of 1937, or its successor (i.e., "Section 8 certificates"), which shall include the following requirements and limitations:
a. The owner shall accept as tenants persons who are recipients of Section 8 certificates on the same basis as all other prospective tenants; provided, the owner shall not rent one of the affordable units to a tenant household holding a Section 8 certificate unless none of the housing units not restricted to occupancy by the affordability covenants are available. If the only available housing unit is an affordable unit, the owner shall no longer designate the housing unit rented to a tenant household holding a Section 8 certificate as an affordable unit, shall designate the next-available housing unit as an affordable unit, and shall make available, re-strict occupancy to, and rent such newly designated affordable unit to a qualified tenant at the applicable affordable rent pursuant to the affordability covenants, such that at all times reasonably possible all of the required affordable units shall not be occupied by tenants holding Section 8 certificates.
b. Furthermore, in the event the owner rents an affordable unit to a household holding a federal certificate, the rental agreement (or lease agreement, as applicable) between the owner, as landlord, and the tenant shall expressly provide that monthly rent charged shall be the affordable rent required for the affordable unit (not fair market rent) and that the rent collected directly from such tenant holding a federal certificate shall be not more than the specified percentage of the 405
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tenant's actual gross income pursuant to the applicable federal certificate program regulations; i.e., the rent charged to such tenant under the rental agreement shall be the affordable rent chargeable under the affordability covenant and not fair market rent for the area, as would otherwise be permitted under the applicable federal certificate program.
c. The owner shall not apply selection criteria to Section 8 certificate holders which are more burdensome than criteria applied to any other prospective tenants.
d. If and to the extent these restrictions conflict with the provisions of Section 8 of the United States Housing Act of 1937 or any rules or regulations promulgated thereunder, the provisions of Section 8 of the United States Housing Act of 1937 and all implementing rules and regulations thereto shall control.
12.Annual Monitoring and Administration Fees.
a. Rental Projects. For projects containing affordable units that will be rented, to the extent permitted by state and federal law, Ee ach regulatory agreement shall contain a provision requiring the owner to pay an annual fee to reimburse the City for the estimated reasonable costs incurred by the City in monitoring the owner's compliance with, and otherwise administering, the regulatory agreement, including, but not limited to, the City's review of annual compliance reports and conduct of inspections and/or audits.
b. For-Sale Projects. For projects containing affordable units that will be offered for sale, each regulatory agreement shall contain a provision requiring the owner to reimburse the City for the estimated reasonable costs incurred by the City (i) to monitor the owner’s compliance with, and to otherwise administer, the Regulatory Agreement, prior to the initial sale of each affordable unit, and (ii) to monitor each subsequent purchaser’s compliance with, and to administer, the Homebuyer Documents following the initial sale of each affordable unit.
E. Recordation. Each regulatory agreement entered into pursuant to this section shall be recorded as a covenant against the property prior to final or parcel map approval, or, where the housing development project does not include a map, prior to issuance of a building permit for any structure in the housing development project. The regulatory agreement shall remain a senior, non- subordinate covenant and as an encumbrance running with the land for the full term thereof. In no event shall the regulatory agreement be made junior 406
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or subordinate to any deed of trust or other documents providing financing for the construction or operation of the project, or any other lien or encumbrance whatsoever for the entire term of the required covenants.
F. Delegation of Authority. The City Manager is authorized to approve and execute each regulatory agreement and any amendments thereto on behalf of the City. The City shall maintain authority of each regulatory agreement and the authority to implement each regulatory agreement through the City Manager. The City Manager shall have the authority to make approvals, issue interpretations, waive provisions, make and execute further agreements and/or enter into amendments of each regulatory agreement on behalf of the City.
G. Fees. The City may charge a fee or fees to recover the City's reasonable costs to implement the provisions of this section. Any such fees shall be adopted by resolution of the City Council.
H. Reimbursement of Professional Fees and Costs. To the extent not factored into the fee or fees established pursuant to subsections D and G, in addition to such fees, the applicant and/or owner shall reimburse the City for the actual fees and costs charged for the services of attorneys and/or other professional third- party consultants engaged by the City to provide consultation, advice, analysis, and/or review or preparation of documents in connection with the following:
1. Preparation of the regulatory agreement, agreements with initial purchasers of for-sale affordable units, and other ancillary documents.
2. Establishing the affordable sales price, and verifying the incomes and eligibility of prospective buyers, of for-sale affordable units;
2.3. Review of the initial marketing plan for projects containing for-sale affordable units or the marketing and management plan for projects containing rental affordable units required as part of the regulatory agreement entered into pursuant to this section and any amendments thereto.
3.4. Review of annual compliance reports submitted by an owner pursuant to a regulatory agreement.
4.5. Inspections and audits.
I. Preparation of Regulatory Agreement; Reimbursement Agreement. Unless otherwise approved by the City Manager, each regulatory agreement shall be prepared by the City at the cost of the applicant and/or owner. Prior to the City commencing preparation of a regulatory agreement, the applicant and/or owner shall execute a reimbursement agreement with the City in a form approved by the City Attorney and provide a deposit to the City in an amount sufficient to cover the estimated total professional fees and costs to be incurred by the City for preparation of the regulatory agreement, as determined by the City Manager 407
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in his or her reasonable discretion. The City Manager is authorized to execute said reimbursement agreement on behalf of the City.
9.60.060. Dwelling Unit Protection Regulations.
A. Purpose. The purpose of this section is to implement subdivision (d) of Government Code Section 66300 (the provisions of the Housing Crisis Act ), which requires developers of new housing development projects proponents to replace demolished residential dwelling units and protected units and to provide relocation assistance and other benefits to existing occupants of demolished protected units.
B. Effective Period. This section shall remain in effect for the period during which the provisions of Chapter 12 of Division 1 of Title 7 of the Government Code Section 66300 pertaining to replacement housing and relocation benefits remain in effect. If said provisions ar e repealed, this section shall be deemed repealed as of the same date and shall no longer be applied, unless otherwise provided by a later enacted ordinance.
C. Applicability. This section applies to all housing development projects subject to Article 2 of Chapter 12 of Division 1 of Title 7 of the Government Code , as defined in Government Code Section 69505.5, whether involving discretionary or nondiscretionary approvals, including, but not limited to, the following:
1. A proposal to construct one or more single-family dwellings;
2. A proposal to construct an accessory dwelling unit;
3. A proposal to construct an SB 9 two-unit residential development;
4. A proposal to construct a duplex or triplex;
5. A proposal to construct a multiple-family dwelling; and
6. A proposal to construct a mixed-use development project consisting of residential and nonresidential uses.
D. Definitions. As used in this section, the following terms shall have the following meanings:
1. "Affordable housing cost" has the same meaning as defined in Health and Safety Code Section 50052.5.
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2. "Affordable rent" has the same meaning as defined in Health and Safety Code Section 50053.
3. “Comparable unit” shall have the same meaning as the term "comparable replacement dwelling" as defined in Government Code Section 7260; provided, however, that with respect to an occupied protected unit that is a single-family home that will be demolished in conjunction with a proposed development project that consists of two or more dwelling units, a "comparable unit" need not contain more than three bedrooms or have the same or similar square footage or the same number of total rooms
4. “Development project” means a project for “development,” as defined in Section 9.04.060, which requires a permit or other approval issued by the City.
5. "Equivalent size" means that the replacement protected units contain at least the same total number of bedrooms as the units being replaced.
6. “Extremely low income households” has the same meaning as defined in Health and Safety Code Section 50106.
7. "Lower income households" has the same meaning as defined in Health and Safety Code Section 50079.5. Lower income households includes very low income households and extremely low income households.
8. "Protected unit" shall have the same meaning as defined in the Housing Crisis Act subdivision (d) of Government Code Section 66300 and includes, but is not limited to, the following:
a. Existing or previously demolished residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the five-year period preceding the application submittal date; and
b. Existing or previously demolished residential dwelling units that are or were rented by lower or very low income households within the five- year period preceding the application submittal date.
9. "Relocation Assistance Law" shall mean Chapter 16 (commencing with Section 7260) of Di vision 7 of Title 1 of the Government Code and its related implementing regulations.
10.“Replace” has the same meaning as provided in subparagraphs (B) and (C) 409
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of paragraph (3) of subdivision (c) of Government Code Section 65915; provided, however, that for purposes of a development project that that consists of a single residential unit on a site with a single protected unit, "replace" shall mean that the protected unit is replaced with a unit of any size at any income level.
11.“Replacement protected units” means and refers to affordable residential units proposed to be developed to replace one or more protected units.
12."Very low income households" has the same meaning as defined in Health and Safety Code Section 50105. Very low income households includes extremely low income households.
E. Replacement of Dwelling Units. If a housing development project will require the demolition of one or more residential dwelling units, the project shall create at least as many residential dwelling units as will be demolished.
F. Replacement of Protected Units. If a housing development project is located on a parcel or parcels on which protected units are or were located, the project shall comply with the following:
1. Number of Total Units Required. If the project is a housing development project, Tthe project shall include at least as many total dwelling units as the greatest number of permitted dwelling units that existed on the project site within the five-year period preceding the application submittal date.
2. Number of Replacement Protected Units Required. Unless otherwise provided in the Housing Crisis Act, Tthe development project shall replace all protected units that were previously located on the project site and demolished on or after January 1, 2020 protected units and all existing occupied or vacant protected units that will be demolished as part of the project in accordance with this section. All replacement protected unit calculations resulting in factional units shall be rounded up to the next whole number. Any replacement protected units provided will be considered in determining whether a housing development project satisfies the requirements of Government Code Section 65915 and Section
9.60.040.
3. Projects Involving Demolition of Occupied Protected Units. If any existing protected units to be demolished are occupied on the date of application submittal, the housing development project shall provide at least the same number of replacement dwelling units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those 410
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households in occupancy. If a project site containing occupied protected units to be demolished also contains unoccupied protected units that will be demolished as part of the project, or previously contained protected units that were demolished within the five-year period preceding the application submittal date, the housing development project shall also provide at least the same number of dwelling units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as the last household in occupancy. If the income of the existing or last household in occupancy of any protected units is not known, it shall be rebuttably presumed that lower income renter households occupied these protected units in the same proportion of lower income renter households to all renter households within the City of Garden Grove, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database, and replacement protected dwelling units shall be provided in that same percentage.
4. Projects Only Involving Vacated or Demolished Protected Units. If all protected units on the site of a housing development project are vacant or have been demolished within the five-year period preceding the application submittal date, the housing development project shall provide at least the same number of dwelling units of equivalent size as existed at the highpoint of those units in the five-year period preceding the application submittal date to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the pers ons and families in occupancy at the highpoint is not known, it shall be rebuttably presumed that low-income and very low income renter households occupied these protected units in the same proportion of low-income and very low income renter households to all renter households within the City of Garden Grove, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database, and replacement protected dwelling units shall be provided in that same percentage.
5. Replacement Protected Unit Size. A replacement protected unit must include at least the same number of bedrooms as the protected unit being replaced; provided, however, that if and to the extent permitted pursuant to the Housing Crisis Act, a protected unit may be replaced with two or more replacement protected units of the same or a lower income category as the protected unit, provided the cumulative number of bedrooms in the replacement protected units equals or exceeds the number of bedrooms in the protected unit being replaced.
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6. Single-Family Projects Involving a Sing le Protected Unit. Notwithstanding subsections 3, and 4, and 5, above, if a housing development project consists of a single residential unit on a site with a single protected unit, that protected unit may be replaced with a unit of any size at any income level.
7. Location of Protected Units. Except as provided in the next sentenceIf the development project is a housing development project , dwelling units required to replace protected units shall be located on the same parcel or parcels as other units in the proposed new housing development project , if feasible. Notwithstanding the preceding sentence, subject to approval of the Department Director, an applicant may locate a replacement protected unit on a different parcel in the City zoned for residential use, provided that: (a) the development of units on different parcels is proposed as part of, and in the same, application as the remainder of the housing development project; (b) the other parcel is zoned for residential use and all objective general plan, zoning, and other standards and requirements are met; and (c) the applicant demonstrates that no residential tenants on the other parcel have been or will be displaced as a result of development of the replacement protected unit.
8. Timing of Construction of Replacem ent Units. All replacement units shall be constructed concurrently with or prior to other components of other units in the housing development project. The City shall not issue a certificate of occupancy for any ot her units in a housing development project until certificates of occupancy have been issued for the replacement unit(s).
9. Affordability Period. All rental replacement units shall be made available to lower or very low income households, as applicable, at an affordable rent for at least 55 years. For-sale replacement protected units shall be subject to paragraph (2) of subdivision (c) of Government Code Section 65915.
10.Regulatory Agreement Required. The record owner(s) of the property shall enter into a regulatory agreement with the City pursuant to Section
9.60.050.
G. Benefits to Be Provided to All Occupants of Protected Units.
1. Right to Remain in Occupancy Pending Demolition. The record owner of an occupied protected unit that will be demolished as part of a housing development project shall allow the existing occupants of the protected unit to occupy the unit until six months before the start of construction 412
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activities. The record owner of the occupied protected unit shall provide the existing occupants with written notice of the planned demolition, the date the occupants must vacate the unit, and their rights under the Housing Crisis Act. with proper notice, pursuant to the Relocation Assistance Law. The record owner shall deliver a Said notice of intent to terminate residencyshall be provided at least six months in advance of the date that the existing occupants must vacate the unit, and a copy shall be concurrently delivered to the Department Director and to the occupant household.
2. Right to Return if Demolition Does Not Proceed. The record owner of an occupied protected unit that will be demolished as part of a housing development project shall allow any existing occupants of the protected unit that are required to leave the unit to return at their prior rental rate if the demolition does not proceed and the property is returned to the rental market. The notice of intent to terminate residency required pursuant to subsection 1. shall include notice of this right. In addition, this right shall be memorialized in a written agreement, covenant, or other document that is enforceable by the occupant(s) of the protected unit, the form of which shall be subject to review and approval by the Department Director.
H. Benefits to Be Provided to Occupants of Protected Units that Are Lower Income Households.
1. Right of First Refusal for a Comparable Unit in New Housing Development Project.
a. Except as provided in subsection H.1.b., below, the record owner of a protected unit that will be demolished as part of a housing development project shall agree to provide existing occupants of the protected unit to be demolished as part of the a housing development project that are lower income households with a right of first refusal to rent or purchase for a comparable dwelling unit available in the new housing development project, or in any required replacement units associated with a new development that is not a housing development project, affordable to the household at an affordable rent or affordable housing cost. A comparable dwelling unit is a dwelling unit containing the same number of bedrooms as the demolished protected unit, except that where the protected unit is a single-family home that contains four or more bedrooms, a comparable unit is a unit containing three bedrooms. The right of first refusal shall be memorialized in a written agreement, covenant, or other document that is enforceable by the occupant(s) of the protected unit, the form of which shall be subject to review and approval by the Department Director.
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b. Subsection H.1.a. shall not apply to: (i) a housing development project that consists of a single residential unit located on a site where a single protected unit is being demolished; or (ii) units in a housing development in which 100% of the units, exclusive of a manager's unit or units, are reserved for lower income households, unless the occupant of the protected unit qualifies for residence in the new development and providing a comparable unit to the occupant would not be precluded due to unit size lim itations or other requirements of one or more funding sources of the housing development project ; or (iii) a development project that is an industrial use and to which the requirement in the Housing Crisis Act to provide replacement units does not apply.
2. Relocation Benefits.
a. The applicant and/or the record owner of a protected unit that will be demolished as part of a housing development project shall provide existing occupants of the protected unit to be demolished as part of a housingthe development project that are lower income households with relocation benefits required to be paid by public entities pursuant to consistent with the requirements of the Relocation Assistance Law. By way of example, said relocation benefits may include, without limitation, advisory assistance in finding comparable new housing, payment of moving expenses, and rental assistance payments. b. The applicant shall engage a qualified third-party contractor or consultant (a "relocation consultant") approved by the Department Director to determine the eligibility of occupants for benefits pursuant to this section, prepare a relocation plan, and oversee the provision of the required relocation benefits.
c. The applicant's relocation consultant shall prepare a written relocation plan consistent with the provisions of the Relocation Assistance Law, which plan shall be subject to review and approval by the Department Director. The relocation plan shall include, without limitation, provisions addressing the following:
i. Determination of eligibility requirements;
ii. Identification of eligible occupants;
iii. Occupant interviews and needs assessments;
iv. An evaluation of the availability of comparable replacement 414
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housing within the relevant geographic area;
v. Identification of specific replacement housing options; vi. The provision for relocation advisory services to affected occupants; vii.A description of the relocation benefits available to eligible occupants;
viii. A process for the provision of benefits and the submission of benefit claims by eligible occupants;
ix. A process for occupants to appeal benefit determinations; and x. Procedures for providing the benefits required pursuant to subsections G and H, above, including copies of the required notices, agreements, and other forms needed to implement the provision of said benefits.
d. Prior to the issuance of a grading or building permit for the housing development project, the relocation consultant shall provide a letter to the Department Director certifying that the relocation process has been completed and that all required relocation benefits have been provided. 415
MINUTE EXCERPT
GARDEN GROVE PLANNING COMMISSION
CONTINUED PUBLIC HEARING – AMENDMENT NO. A-042-2025
Applicant: CITY OF GARDEN GROVE
Date: June 5, 2025
Request: A request for a City-initiated Zoning Text Amendment to various provisions of Title 9 (Land Use) of the Garden Grove Municipal Code.
The proposed Amendment would update portions of Chapters 9.04 (General Provisions), 9.08 (Single-Family Residential Development Standards), 9.12 (Multifamily Residential Development Standards),
9.16 (Commercial, Office Professional, Industrial, and Open Space Development Standards), 9.18 (Mixed Use Regulations and Development Standards), 9.32 (Procedures and Hearings), 9.54 (Accessory Dwelling Units and Junior Accessory Dwelling Units), and
9.60 (Special Housing Regulations) to conform to changes in State Law and City Policies, and to make clarifications and typographical corrections. In conjunction with the request, the Planning Commission will also consider a recommendation that the City Council determine that the proposed amendment is categorically and statutorily exempt from review under the California Environmental Quality Act (CEQA).
At the request of Staff, Chairman Ramirez moved this item to the end of the Agenda.
Commissioner Lindsay announced that he had a potential conflict of interest because he owned a general contracting business that could potentially be affected by some of the proposed amendments, recused himself, and left the meeting room prior to the start of the item.
Action: Resolution No. 6113-25 was approved.
Motion: Ramirez Second: Cueva
Ayes: (5) Ashland, Beard, Cueva, Laricchia, Ramirez
Noes: (1) Flanders
Absent: (1) Lindsay
Commissioner Lindsay did not rejoin the meeting.
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Attachment 4
Summary List of Proposed Amendments for A-042-2025(A) and (B)
Amendment No. A-042-2025(A):
In summary, proposed changes for Amendment No. A-042-2025(A) include the following:
Updating references to Government Code Sections in the Ordinance. (GGMC §
9.54.010.C)
Allowing a third type of ADU, in the form of an ADU conversion, for lots with an existing or proposed primary dwelling unit per Government Code Section 66323. (GGMC §
9.54.030.A)
Allowing up to eight (8) detached ADUs on lots with an existing multiple -family development (not to exceed the number of existing units on the lot), plus ADU conversions of non -habitable space(s) attached to an existing multiple -family development, up to 25% of the number of existing multiple -family units. (GGMC §
9.54.030.B)
Allowing the waiver of front setback and building separation standards to the extent necessary to allow the construction of an ADU that is at least 800 square feet in size. (GGMC § 9.54.040.A)
Replacing subjective language requiring architectural compatibility between an ADU and the primary dwelling with objective standards. (GGMC § 9.54.040.F)
Increasing maximum height limits for ADUs to align with State law. (GGMC §
9.54.040.E)
Specifying that uncovered parking spaces that are demolished to accommodate an ADU are not required to be replaced, as provided by State law. (GGMC § 9.54.040.G)
Clarifying that the construction of an ADU does not a requirement that fire sprinklers be installed in the existing primary dwelling. (GGMC § 9.54.070.A)
Adopting procedures to facilitate the review and approval of pre-approved ADU plans. (GGMC § 9.54.070.C)
Clarifying that an ADU permit will not be denied due to “nonconforming zoning conditions, building code violations, or unpermitted structures…” unless they present a threat to public health and safety. (GGMC § 9.54.070.D)
Updating the definition of “attached ADU.” (GGMC § 9.54.010.C)
Updating the definition of “Director” by r emoving references to “Economic Development” in relation to the “Community Development Department.” (GGMC §
9.54.010.C)
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Clarifying that a 150 square -foot addition is allowed for ADU conversions of both attached and/or detached accessory structures. (GGMC § 9.54.040.B.2.c)
Clarifying that ADU conversions are allowed to add porches and/or patios, up to eighty (80) square feet. (GGMC § 9.54.040.B.3.a)
Establishing minimum dimensions for an ADU one -car garage. (GGMC §
9.54.040.B.3.b)
Clarifying setbacks to ADU expansions, porches, patios, and garages that may be attached to an ADU. (GGMC § 9.54.040.C.2)
Exempting projects that use pre-approved ADU plans from architectural compatibility requirements. (GGMC § 9.54.040.F.2)
Establishing requirements for laundry facilities and water heaters in ADUs. (GGMC §
9.54.040.J)
Specifying visual screening requirements for mechanical equipment. ( GGMC §
9.54.040.K, GGMC § 9.54.040.L)
Establishing requirements that ensure the appropriate number of trash containers are provided. (GGMC § 9.54.040.M)
A full discussion of the Amendment is found in the June 5, 2025 Planning Commission Staff Report (Attachment 3).
Amendment No. A-042-2025(B):
In summary, proposed changes for Amendment No. A-042-2025(B) include the following:
Allowing shared laundry rooms in multiple -family developments. (GGMC §
9.12.040.050.D)
Clarifying that Garden Grove Boulevard Plazas are not required for stand -alone multiple-family uses that are not located along major streets. (GGMC § 9.18.090.020.F)
Revising parking standards for Single Room Occupancy uses. (GGMC §
9.12.050.010.C.2.c)
Allowing bank uses in the CC -3 (Civic Center Core) z one. (GGMC § 9.18.020.030 – Table 9.18-1)
Removing references to “Economic Development” in relation to the “Community Development Department.” (GGMC § 9.04.060.C)
Removing outdated cross -references in the R -1 (Single -Family Residential) zone. (GGMC § 9.080.040.020.A.6)
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Attachment 4
Hyperlinking the “Additional Regulations” column with special operating conditions and development standards in the commercial zone Land Use Matrix. (GGMC § 9.16.020.030 – Table 1)
Consolidating development standards for M-1 (Limited Industrial) and M-P (Industrial Park) zones into a data table. (GGMC § 9.16.040.030)
Adding references to Floor Area Ratio in the commercial and industrial zones development standards tables. (GGMC § 9.16.040.010.A.1)
Clarifying parking requirements fo r outdoor dining, and updating special operating conditions of outdoor dining areas. (GGMC §§ 9.16.040.150, 9.16.020.050.V,
9.18.140.030, & 9.18.030.300)
Revising definitions for “Floor Area Ratio” and “Structure.” (GGMC § 9.04.060.C)
Simplifying multiple-family open space and amenity standards. (GGMC §§
9.12.040.050.I & 9.12.040.050.J)
Specifying that fire or parapet walls, skylights, flagpoles, chimneys, wireless masts and similar structures in the R-1 zone may exceed the height of the structure to which they are attached. (GGMC § 9.08.040.030.F)
Specifying duplex/triplex standards in the mixed use zones to match multiple -family residential zones. (GGMC § 9.18.110.050.D)
Matching the private storage requirements between multiple -family residential and mixed use zones. (GGMC § 9.18.110.030.H.2)
Creating consistent standards for 10% of guest parking to be provided outside of security gates in all zones. (GGMC §§ 9.08.040.170.B.3, 9.16.040.170.B.3, &
9.18.140.050.D.2)
Adding graffiti deterrence requirements for exposed walls and fences in multiple-family zones. (GGMC § 9.12.040.140.B.13)
Updating entitlement appeal provisions to clarify the intent and make appeal periods more consistent with neighboring cities. (GGMC §§ 9.32.110, 9.32.120 , 9.32.130, &
9.32.150)
Removing discretionary requirements to allow compact parking in mixed use zones. (GGMC § 9.18.140.040.B.1)
Removing outdated waiver provisions in the R -1 zone that no longer apply or have historically not been applied, and which do not have established procedures. (GGMC §§
9.08.040.030.F.2, 9.08.040.100.I, 9.08.040.110.B.4 and B.10, 9.08.040.180.B.1, &
9.08.040.190)
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Attachment 4
Clarifying that new construction for R-1 zoned properties authorized to have a fifteen- foot (15’-0”) front setback shall measure the setback from the ultimate right -of-way. (GGMC § 9.08.040.100.D)
Requiring public hearing notices to be sent to residential tenants, in addition to property owners. (GGMC § 9.32.060)
Clarifying interior design standards applicable to attached and detached accessory structures. (GGMC § 9.08.040.030.D.9)
Adding parking ratios for adult daycares, veterinarians, emergency shelters, and residential care facilities. (GGMC §§ 9.16.040.150 & 9.18.140.030.B)
Establishing formal setback and height standards for swimming pools, spas, and other yard accessories. (GGMC § 9.08.040.030.I & J)
Removing outdated orientation and access requirements for tattoo shops and arcade uses in mixed use zones. (GGMC §§ 9.18.020.030 Table 9.18-1 & 9.18.030.040.A.2)
Establishing Front Yard Determination procedures for the application of development standards on corner lots. (GGMC §§ 9.08.040.100.J & 9.32.030.D.11.a)
Removing the outdated minimum lot size re quirement for religious uses. (GGMC §§
9.08.020.050.A, 9.12.020.050.A, 9.16.020.050.K, & 9.18.030.120)
Updating provisions for Affordable Housing Regulatory Agreements to ensure transparency and enforceability. (GGMC § 9.60.050)
Establishing objective standards for architectural compatibility and second floor privacy provisions. (GGMC §§ 9.08.040.030.A & 9.08.040.030.C)
Removing subjective and inapplicable hearing body review standards for wall, fence, and hedge standards to allow extended fence heights along freeway rights-of-way. (GGMC §§ 9.08.040.110.B.10, 9.12.040.140.B.10, 9.16.040.120.B.10, & 9.18.130.010.G)
Updating parking space and parking lot standards for the R -1 zone. (GGMC §§
9.08.040.150, 9.08.040.160, 9.08.040.170, & 9.08.040.180)
Removing Conditional Use Permit (CUP) requirements for fortunetelling uses in the C-2 (Community Commercial), C-3 (Heavy Com mercial), and NMU (Neighborhood Mixed Use) zones. (GGMC §§ 9.16.020.030.A Table 1 & 9.18.020.030 Table 9.18-1)
Adding “Thrift Retail Stores” as a defined use and allowing them as by -right uses in commercial and mixed use zones. (GGMC §§ 9.04.060.C, 9.16.020.030.A Table 1 &
9.18.020.030 Table 9.18-1)
Establishing shared parking agreement procedures and standards for the sharing of underutilized parking spaces by different sites. (GGMC §§ 9.12.040.200.A,
9.16.040.170.A.1, 9.18.140.050.C, & 9.18.140.060.H)
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Attachment 4
Updating public noticing procedures for entitlement projects, including to address State Law changes for noticing for Amendments. (GGMC § 9.32.060)
Updating definitions and provisions of Chapter 9.60 pertaining to Review of Housing Development Projects, Residential Density Bonus, Dwelling Unit Protection Regulations, and Supportive Housing Projects. (GGMC §§ 9.60.020, 9.60.040, 9.60.050, &
9.60.060)
A full discussion of the Amendment is found in the June 5, 2025 Planning Commission Staff Report (Attachment 3).
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Item 249/2025
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: 7/8/2025
Subject: Adoption of the Fiscal Year 2025-26 Homelessness Strategy Action Plan. (Action Item)
OBJECTIVE
To request City Council consideration of the Fiscal Year 2025-26 Homelessness Action Plan to implement the 5 Year Homelessness Strategy (July 2025-June 2030).
BACKGROUND
On June 24, 2025, the City Council adopted the 5 Year Homelessness Strategy (July 2025 – June 2030) following an extensive evaluation and planning effort. The plan provides a comprehensive, regional, and measurable approach to reducing homelessness.
The Strategy is organized around four core goals:
1. Enhance Communication and Community Engagement;
2. Enhance the Service Delivery System to Improve the Response to Homelessness;
3. Leverage Partnerships, Funding, and Resources to Maximize Utilization to the Benefit of Clients; and
4. Improve Quality of Life for Garden Grove Residents, Businesses, and Stakeholders.
Each goal includes actionable objectives and measurable Key Performance Indicators (KPIs).
The FY 2025–26 Action Plan is the first in a series of annual plans to guide implementation of these goals.
DISCUSSION
The attached FY 2025–26 Action Plan outlines implementation activities covering the period from July 1, 2025, through June 30, 2026. Tasks were developed in coordination with internal City departments, service providers, Tri-City partners, and regional agencies. Key actions for FY 2025–26 include:
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Item 249/2025
Goal 1: Enhance Communication and Community Engagement
Update the City’s homelessness webpage and develop a public-facing data dashboard by Quarter 2.
Develop and distribute a partner satisfaction survey by June 30, 2026. Share at least four success stories publicly to increase community awareness. Continue quarterly Tri-City coordination meetings.
Goal 2: Enhance Service Delivery System to Improve Response
Maintain ongoing contract management and service provider oversight. Hold 12 monthly service provider meetings across Tri-Cities. Launch a client satisfaction survey in partnership with VOALA. Host monthly OC Workforce Solutions mobile unit visits and Vituity health clinics at the Central Cities Navigation Center (CCNC).
Goal 3: Leverage Partnerships, Funding, and Resources
Finalize a protocol for tracking client referrals by January 1, 2026. Identify and leverage workforce development and employment resources within the County.
Submit grant funding applications and identify new funding opportunities. Conduct a gap analysis and coordinate with local agencies to leverage resources for CCNC clients.
Goal 4: Improve Quality of Life for Garden Grove Stakeholders
Issue an RFP for a community survey polling company and execute the contract by Quarter 4.
Develop a heat map to track public safety calls related to homelessness by June 30, 2026.
Implement encampment prevention through environmental design, including cleanups and deterrent installations.
These activities ensure cross -sector collaboration, increased community engagement, and data-informed program oversight. Progress will be tracked quarterly and inform the development of next year’s Action Plan.
FINANCIAL IMPACT
There is no financial impact for the City Council to adopt the FY 2025 -26 Homelessness Strategy Action Plan.
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Item 249/2025
RECOMMENDATION
It is recommended that City Council:
Adopt the FY 2025-26 Homelessness Strategy Action Plan.
ATTACHMENT(S)
FY 2025-26 Homelessness Strategy Action Plan.
424
HOMELESSNESS
STRATEGY
ACTION PLAN
FY 2025 -2026
CITY OF
GARDEN GROVE
425
Cost Task When Who Metric
$$
Update City’s web-page and
develop public facing
dashboard
End of Q3 EDHD, IT, & Tri-
Cities
Complete major revisions to City
web-page and develop data
dashboard by March 31, 2026
$
Develop and distribute a
partner satisfaction survey
End of Q4 EDHD & Tri-Cities
Stakeholders
Complete the survey on Survey
Monkey and distribute by June
30, 2026
$$ Success stories Ongoing -
Quarterly
EDHD, VOALA,
Tri-Cities PIOs, &
GGTV3
Prepare and distribute 4 success
stories annually
$ Quarterly Tri-Cities meetings Ongoing -
Quarterly EDHD & Tri-Cities Hold 4 meetings with the Tri- Cities annually
Cost Task When Who Metric
$$$ Contract management and
oversight Ongoing EDHD Staff
Manage all homeless service
contracts and audit service
provider performance
$ Quarterly service provider
meetings
Ongoing -
Quarterly
EDHD & Tri-
Cities homeless
service providers
Hold 4 meetings with the Tri-
Cities homeless service providers
annually
$ Develop and distribute a client
satisfaction survey End of Q4 EDHD & VOALA
Complete the survey on Survey
Monkey and distribute by June
30, 2026
$ OC Workforce Solutions mobile
unit visits at the CCNC
Ongoing -
Quarterly
EDHD, OC
Workforce
Solutions, &
VOALA
Host quarterly events at the
CCNC
$ Vituity health clinics at the
CCNC
Ongoing -
Monthly
EDHD, Vituity
Cares
Foundation,
CCNC, & service
providers
Host monthly events at the CCNC
GOAL 1: ENHANCE COMMUNICATION AND COMMUNITY ENGAGEMENT
GOAL 2: ENHANCE SERVICE DELIVERY SYSTEM TO IMPROVE RESPONSE TO HOMELESSNESS
THE FOLLOWING IMPLEMENTATION ACTIONS ARE IDENTIFIED AS PRIORITIES FOR IMPLEMENTATION WITHIN THE FIRST YEAR OF THE 2025-2030
HOMELESSNESS STRATEGY, WHICH WILL COVER
JULY 1, 2025 – JUNE 30, 2026.
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GOAL 3: LEVERAGE PARTNERSHIPS, FUNDING AND RESOURCES TO MAXIMIZE UTILIZATION TO THE
BENEFIT OF CLIENTS
Cost Task When Who Metric
$
Develop protocols to
track client referrals
to services
End of Q2 EDHD & VOALA Begin tracking client referrals
on January 1, 2026
$
Identify and leverage
workforce
development and
employment
resources within the
County
End of Q4
EDHD, County,
VOALA, City
Attorney’s Office Number of resources secured
$ Grant funding
applications Ongoing EDHD Number of successful
applications
$
Coordinate with local
agencies to leverage
resources for CCNC
clients
Ongoing EDHD
Number of local agencies
that were leveraged to
support clients
GOAL 4: IMPROVE QUALITY OF LIFE FOR GARDEN GROVE RESIDENTS, BUSINESSES, AND
STAKEHOLDERS
Cost Task When Who Metric
$$
Issue an RFP to
secure polling
company for
community survey
End of Q4 EDHD, Polling Agency,
Public Relations
Finalize RFP and execute
contract with polling agency
by June 30, 2026
$$
Develop heat map to
track public safety
calls related to
homelessness
End of Q4 EDHD, SRT, IT
Complete the map and begin
tracking public safety calls
by June 30, 2026
$$$
Encampment
prevention through
environmental design
Ongoing
EDHD, SRT, Be-Well,
PATH, and
Public Works
Number of encampment
cleanups and deterrent
fencing installed
FOR MORE INFORMATION PLEASE VISIT THE CITY’S WEBSITE AT:
HTTPS://GGCITY.ORG/ADDRESSING-HOMELESSNESS
$ $$ $$$
Minimal amount of staff time or cost Moderate amount of staff time or cost Significant amount of staff time or cost Cost Matrix
427
CONTACT INFORMATION:
TIM THRONE
PROJECT MANAGER
(714) 741-5144, [email protected]
FOR MORE INFORMATION PLEASE VISIT THE CITY’S WEBSITE AT:
HTTPS://GGCITY.ORG/ADDRESSING-HOMELESSNESS
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Item 248/2025
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: 7/8/2025
Subject: Award of contracts to Keyser Marston Associates, Inc. and Tierra West Advisors, Inc. to provide financial feasibility consulting services. (Cost: Not-to- Exceed $100,000 per year/per contract) (Action Item)
OBJECTIVE
For the City Council to award contracts to Keyser Marston Associates, Inc. and Tierra West Advisors, Inc. to provide financial feasibility services.
BACKGROUND
The Economic Development and Housing Department (EDHD) anticipates further development of affordable housing and commercial reinvestment throughout the City. To facilitate high-quality development, EDHD utilizes specialists in various economic and fiscal disciplines to assist with project feasibility and analysis. The availability of on-call firms would provide for streamlining of future development projects in areas of affordable housing assistance, real estate transaction and property disposition.
DISCUSSION
A Request for Proposals (RFP) process was conducted to receive proposals from qualified firms with demonstrated skills and experience provid ing financial feasibility consulting in areas of pro forma analysis, project feasibility analyses, and other miscellaneous economic financial analyses, on an as needed basis. The RFP was advertised on May 9, 2025 and four (4) formal proposals were received by the May 27, 2025 deadline. An internal selection panel completed an evaluation and rated the proposals on the basis of qualifications, proposal quality, budget, time management, and prior record of performance with other Governmental Agencies.
Based on the evaluation results, staff identified two (2) distinct areas of technical expertise offered by each respective firm. Keyser Marston Associates, Inc. demonstrates an extensive expertise in affordable housing analysis, including policy and financial feasibility analyses. In 429
Item 248/2025
contrast, Tierra West Advisors, Inc. specializes in real estate and economic development analysis, positing itself as a leader in these domains.
The following is a summary of the ratings:
Rater
RSG Harris and
Associates
Keyser Marston
Associates, Inc.
Tierra West
Advisors, Inc.
A 89 81 91 93
B 91 89 93 87
C 90 89 95 96
TOTAL 270 259 279 276
City references for each respective firm confirmed positive results in fiscal analysis services with previous and current client agencies.
1. Keyser Marston Associates, Inc. brings a complete range of financial analysis and consulting for development projects since 1973 with direct advisory services being provided to Garden Grove for over 23-years, most recently analyzing two potential affordable housing projects.
2. Tierra West Adviso rs, Inc. has over 40-years of experience providing real estate economic and financial analysis services and has advised the City’s Office of Economic Development on various projects in the past.
To date, EDHD has several commercial development and affordable housing projects currently in various stages of due diligence in which comprehensive economic analysis may be required.
Therefore, it is recommended that the two (2) economic consulting firms identified above should be selected and awarded contracts for financial feasibility services on an as -needed- basis.
FINANCIAL IMPACT
Each contract will be established for an initial one (1) year term, with a not-to-exceed amount of $100,000 per year , per contract and with the option to extend annually for a maximum performance period of up to five (5) years. The Funding for these contracts is included in the Economic Development and Housing Department’s adopted Fiscal Year 2026 and 2027 operating budget, and will be funded fr om a combination of the Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Low and Moderate Income Housing Asset Fund (LMIHAF), and other available funds.
RECOMMENDATION
It is recommended that the City Council:
Award a contract for financial feasibility services to Keyser Marston Associates, Inc., in the not -to-exceed amount of $100,000 per year, for a total performance period of up to five (5) years;
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Item 248/2025
Award a contract for financial feasibility services Tierra West Advisors, Inc., in the not-to-exceed amount of $100,000 per year, for a total performance period of up to five (5) years;
Authorize the City Manager, or designee(s) to execute the contracts referenced above, and make minor modifications as appropriate thereto, on behalf of the City; and
Authorize the City Manager, or designee(s) to exercise option year terms, sign the option year amendments , and make minor modifications as appropriate thereto, on behalf of the City.
ATTACHMENT(S)
1. FY 2025-26 Professional Services Agreement
431
ATTACHMENT 1
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made this day of , 2025, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and XXXXXXXXXXXXXX, herein after referred to as “CONSULTANT”.
RECITALS
The following recitals are a substantive part of this Agreement:
1. This Agreement is entered into pursuant to Garden Grove Council Resolution No. 9212-14 (January 28, 2014).
2. CITY desires to utilize the services of CONSULTANT to provide pro forma analysis, project feasibility analyses, and other miscellaneous economic financial analyses.
3. CONSULTANT is qualified by virtue of experience, training, education and expertise to accomplish services.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
1. Term and Termination The term of the agreement shall remain in effect until completion of the services to be provided by CONSULTANT hereunder, unless earlier terminated by CITY. This agreement may be terminated by the CITY without cause. In such event, the CITY will compensate CONSULTANT for work performed to date in accordance with CONSULTANT’s proposal which is attached as Attachment “A” and is hereby incorporated by reference. Contractor is required to present evidence to support performed work.
2. Services to be Provided. The services to be performed by CONSULTANT shall consist of tasks as set forth in the Proposal. The Proposal is attached as Attachment A, and is incorporated herein by reference. The Proposal and this Agreement do not guarantee any specific amount of work.
3. Compensation. CONSULTANT shall be compensated as follows:
3.1 AMOUNT. Total Compensation under this agreement shall not exceed (NTE) amount of XXXXXXXXXXXXXX ($XXXX.XX), payable in arrears and in accordance with proposal in Attachment “A”.
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3.2 Payment. For work under this Agreement, payment shall be made per invoice for work completed. Within 45 day of delivery of goods or completion of performance of services, CONSULTANT must promptly render an invoice to CITY or payment may be significantly delayed. For extra work not a part of this Agreement, a written authorization by CITY will be required, and payment shall be based on schedule included in Proposal (Attachment A).
3 .3 Records of Expenses. CONSULTANT 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 CONSULTANT 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. CONSULTANT 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 and provide a Waiver of Subrogation in favor of the City.
4.2 WORKERS COMPENSATION INSURANCE. During the duration of this Agreement, CONSULTANT 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 AMOU NTS. CONSULTANT shall maintain the following insurance for the duration of this Agreement:
(a) Commercial general liability in an amount of $2,000,000.00 per occurrence (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.
(b) Automobile liability in an amount of $1,000,000.00
combined single limit (claims made and modified
occurrence policies are not acceptable); Insurance
companies must be acceptable to CITY and have a Best’s 433
Guide Rating of A-, Class VII or better, as approved by the CITY.
(c) Professional liability in an amount not less than $2,000,000.
Insurance companies must be admitted and licensed In
California and have a Best’s Guide Rating of A-Class VII or better, as approved by the City. If the policy is written on a “claims made” basis, the policy shall be continued in full force and effect at all times during the term of the
agreement, and for a period of three (3) years from the date of the completion of services provided. In the event of termination, cancellation, or material change in the policy, professional/consultant shall obtain continuing insurance coverage for the prior acts or omissions of
professional/consultant during the course of performing services under the term of the agreement. The coverage shall be evidenced either by a new policy evidencing no gap in coverage, or by obtaining separate extended “tail”
coverage with the present or new carrier.
An On-Going and Completed Operations Additional Insured Endorsement for the policy under section 4.3 (a) shall designate CITY, it’s officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONSULTANT. CONSULTANT shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.
An Additional Insured Endorsement for the policy under section 4.3 (b) shall designate CITY, it’s officers, officials, employees, agents, and volunteers as additional insureds for automobiles, owned, leased, hired, or borrowed by the CONSULTANT. CONSULTANT shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.
For any claims related to this Agreement, CONSULTANT’s insurance coverage shall be primary insurance as respects CITY, it’s officers, officials, employees, agents, and volunteers. Any insurance or self - insurance maintained by the CITY, it’s officers, officials, em ployees, agents, and volunteers shall be excess of the CONSULTANT’s insurance and shall not contribute with it.
If CONSULTANT maintains higher insurance limits than the minimums shown above, CONSULTANT shall provide coverage for the higher insurance limits otherwise maintained by the CONSULTANT.
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5. Non-Liability of Officials and Employees of the CITY. No official or employee of CITY shall be personally liable to CONSULTANT in the event of any default or breach by CITY, or for any amount which may become due to CONSULTANT.
6. Non-Discrimination. CONSULTANT 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 CONSULTANT 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.
CONSULTANT shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of CITY.
8. Compliance with Law. CONSULTANT shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.
CONSULTANT shall comply with, and shall be responsible for causing all contractors and subcontractors performing any of the work pursuant to this Agreement to comply with, all applicable federal and state labor standards, including, to the extent applicable, the prevailing wage requirem ents promulgated by the Director of Industrial Relations of the State of California Department of Labor. The City makes no warranty or representation concerning whether any of the work performed pursuant to this Agreement constitutes public works subject to the prevailing wage requirements.
9. Disclosure of Documents. All documents or other information developed or received by CONSULTANT are confidential and shall not be disclosed without authorization by CITY, unless disclosure is required by law.
10. Conflict of Interest. CONSULTANT shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. No officer or employee of the CITY shall have any personal interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his personal interest or the interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The CONSULTANT warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
11. 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. (Contractor)
XXXXXXXXXXXXXXX
Attention: XXXXXXX
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XXXXXXXXXXXXXXX
XXXXX, CA 9XXXX
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
12. Contractor’s Proposal. This Agreement shall include CONSULTANT's proposal or bid which shall be incorporated herein by reference. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.
13. Licenses, Permits, and Fees. At its sole expense, CONSULTANT shall obtain a Garden Grove Business License, all permits, and licenses as may be required by law for the performance of the services required by this Agreement.
14. City Cooperation. The CITY shall provide CONSULTANT with any plan, publication, report, statistics, records or other data or information pertinent to services to be performed hereunder which are reasonably available to the CITY.
The CITY shall additionally provide CONSULTANT staff assistance and shall take prompt and appropriate action when it will assist in ensuring and timely performance by CONSULTANT hereunder.
15. Time of Essence/Performance/Force Majeure. Time is of the essence in the performance of this Agreement. All services rendered pursuant to this Agreement shall be performed in a timely and diligent manner. Performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and wit hout the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, fires, earthquake, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, acts of any governmental City other than City, and unusually severe weather, if the Consultant shall within (10) days of the commencement of such delay notify the City in writing of the causes of the delay.
The City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the forced delay when and if in his/her judgment such delay is justified, and the City 's determination shall be final and conclusive upon the parties to this Agreement.
16. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of CONSULTANT, its principals and employees were a substantial inducement for CITY to enter into this Agreement.
CONSULTANT 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 CONSULTANT is permitted to subcontract any part of this Agreement, CONSULTANT shall be responsible to CITY for the acts and omissions of its 436
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 co nsidered employees of CONSULTANT. CITY will deal directly with and will make all payments to CONSULTANT.
17. 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.
18. Indemnification. To the fullest extent permitted by law, CONSULTANT shall 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 damages of any nature, including interference with use of property, arising out of, or in any way connected with the negligence, recklessness and/or intentional wrongful conduct of CONSULTANT, CONSULTANT'S agents, officers, employees, subcontractors, or independen t contractors hired by CONSULTANT in the performance of the Agreement. The only exception to CONSULTANT's responsibility to protect, defend, and hold harmless CITY, is due to the sole negligence, recklessness and/or wrongful conduct 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 CONSULTANT.
19. 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.
20. Waiver. All waivers of the provisions of this Agreement must be in writing by the appropriate authorities of the CITY and CONSULTANT.
21. California Law. This Agreement shall be construed in accordance with the laws of the State of California. Any action commenced about this Agreement shall be filed in the central branch of the Orange County Superior Court.
22. Preservation of Agreement . Should any provision of this Agreement be found invalid or unenforceable, the decision shall affect only the provision interpreted, and all remaining provisions shall remain enforceable.
\ \ \ \
(Agreement Signature Block on Next Page)
437
IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.
Date: _____________ "CITY"
CITY OF GARDEN GROVE
By:___________________________
City Manager
ATTESTED:
____________________________
City Clerk
Date: _______________________
"CONSULTANT"
XXXXXXXXXXXXXXXXXXXXXXX
By: ___________________________
Name:__________________________
Title:___________________________
Date: __________________________
Tax ID No. ______________________
Contractor’s License: _____________
Expiration Date:_________________
If CONSULTANT is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY.
APPROVED AS TO FORM:
____________________________
Garden Grove City Attorney
________________________
Date
438
Item 238/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Niki Wetzel
Dept:
City Manager Dept: Community Development
Date: 7/8/2025
Subject: Approval of an Amendment to increase the annual not-to-exceed limit to the agreement with CSG Consultants Inc. for on-call Planning services. (Cost: $250,000/per year) (Action Item)
OBJECTIVE
To request City Council approval of an amendment to increase the annual not-to-exceed service fee limit to the existing agreement with CSG Consultant Inc. (CSG).
BACKGROUND
In March 2025, the Community Development Department (CDD) entered into an agreement with CSG to provide on-call Planning services on an “as-needed” basis. The contract provides flexibility in meeting fluctuating staffing demands during leaves, vacancies, or peak workload periods to ensure continuity in Planning service delivery. The contract was established following a competitive Request for Proposals (RFP) process, and the firm was selected based on their qualifications, experience, and proposed approach to service delivery.
DISCUSSION
In April 2025, CDD experienced the departure of two key staff members, creating unexpected vacancies. These departures significantly impacted the Planning Services Division’s ability to maintain service levels and meet ope rational needs. CDD continues to experience the need for flexible and uninterrupted support from contracted Planning professionals to meet development activity demands while recruitments are conducted to fill vacant positions.
Given the current staffing vacancies, contractual staffing through CSG has been essential in maintaining core functions. However, the original $50,000 agreement is insufficient to cover the continued need for interim support. To avoid service disruptions and to ensure CDD maintains a high level of customer service, staff requests to amend the current agreement with CSG to not-to-exceed $250,000 per option year. Importantly, the contract would remain structured on an as -needed basis, and expenditures would only occur when services are actually rendered. This increase will provide greater flexibility, operational fluidity, and ensure 439
Item 238/2025
that services can continue without interruption, particularly during periods of high demand or limited in-house staffing capacity.
FINANCIAL IMPACT
The pr oposed amendments to increase the not -to-exceed contractual service fee do not require additional appropriations. Service costs will be covered by CDD’s adopted operating budget.
RECOMMENDATION
It is recommended that the City Council:
Approve the amendment to increase the annual not -to-exceed compensation amount for CSG to $250,000 per option year;
Authorize the City Manager, or designees, to execute Amendment No. 1 with CSG and make minor modifications as appropriate thereto, on behalf of the City; and
Authorize the City Manager, or designees, to exercise option year amendment terms, for the current year and available option years.
ATTACHMENT(S)
1. Draft Amendment
440
1 CITY OF GARDEN GROVE
AMENDMENT NO. 1
This Amendment No. 1 is made and entered into this ________ of ________, 2025, by and between the CITY OF GARDEN GROVE, hereinafter referred to as "CITY", and XXXXXX, hereinafter referred to as "CONTRACTOR".
WHEREAS, CONTRACTOR an d CITY entered into Contract No. B220292, dated September 28, 2021 for On-Call Building and Planning Contractual Services, as needed (the “Existing Contract”).
WHEREAS, CONTRACTOR and CITY desire to amend the Existing Contract as provided herein.
Now, therefore, it is mutually agreed, by and between the parties as follows:
Section 1.0, TERM AND TERMINATION of the Existing Contract, shall be amended as follows:
This Amendment No. 1 hereby extends the performance period to cover services rendered from July 1, 2025 through June 30, 2026 (option year 1).
Section 3.0, COMPENSATION - shall be amended as follows:
Section 3.1, AMOUNT. – Total Compensation under the original agreement shall not exceed (NTE) amount of Two-Hundred and Fifty Thousand dollars and 00/100 cents ($250,000) per fiscal year per option year, payable in arrears in accordance with proposal. Contractor shall be compensated in accordance with the Rate and Services Structure set forth in Exhibit “A”.
Except as expressly amended hereby, all of the terms and conditions in the Existing Contract remain in full force and effect as originally executed.
[SIGNATURE PAGE FOLLOWS]
441
2 IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to the Existing Contract to be executed by their respective officers duly authorized on the date first written above.
Date: _____________ "CITY"
CITY OF GARDEN GROVE
By: ____________________________
City Manager
ATTESTED:
____________________________
City Clerk
Date: _______________________
"CONTRACTOR"
XXXXX
By: ______________________________
Name: ___________________________
Title: ____________________________
Date: ____________________________
If CONTRACTOR is a corporation, a
Corporate Resolution and/or
Corporate Seal are required. If a
partnership, Statement of
Partnership must be submitted to
CITY.
APPROVED AS TO FORM:
____________________________
Garden Grove City Attorney
________________________
Date
442
Item 235/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Niki Wetzel
Dept:
City Manager Dept: Community Development
Date: 7/8/2025
Subject: Introduction and First Reading of an Ordinance amending Chapter 8.47 of the Municipal Code pertaining to noise and construction hours, entitled:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE AMENDING SECTION 8.47.060 OF CHAPTER 8.47 OF TITLE 8 OF THE GARDEN
GROVE MUNICIPAL CODE PERTAINING TO PERMITTED CONSTRUCTION HOURS. (Action Item)
OBJECTIVE
For the City Council to introduce and pass to second reading an ordinance amending Section
8.47.060 of Chapter 8. 47 of Title 8 of the Garden Grove Municipal Code pertaining to permitted construction hours.
BACKGROUND
In addition to amendments to Title 9 (Land Use) of the Garden Grove Municipal Code that appear on tonight’s agenda, staff examined the current permitted construction hours in Garden Grove. When compared to other similar cities (see Attachment 2), staff fo und that Garden Grove’s allowable construction hours are more permissive than most other cities which can cause disruption in the evenings and on weekends/holidays, especially in residential neighborhoods.
DISCUSSION
Currently, the Municipal Code prohibits construction activity that would cause a discomfort or annoyance between the hours of 10:00 p.m. and 7:00 a.m. of the next day. The proposed text Amendment would establish new hours for operating equipment or performing any construction or repair work on buildings, structures, or projects in residential areas and within 500 feet of a residential area. The proposed text Amendment also provides an expanded definition of what constitutes construction or repair work. The new hours would be limited between:
443
Item 235/2025
7:00 a.m. and 7:00 p.m. Monday through Friday
9:00 a.m. and 6:00 p.m. on Saturdays
Prohibited on Sundays or federal holidays
Exemptions to the above would also be allowable:
Under the discretion of the Building Official for temporary waivers For minor home repairs and routine maintenance of home and personal property
FINANCIAL IMPACT
None.
RECOMMENDATION
It is recommended that the City Council:
Introduce and conduct the first reading of the ordinance amending Chapter
8.47 of the Municipal Code pertaining to permitted construction hours, and pass it to second reading.
ATTACHMENT(S)
1. Attachment 1: Draft City Council Ordinance
2. Attachment 2: Table of Construction Hour Limitation for Adjacent Cities
3. Attachment 3: Redlines of Revisions to Current Code
444
ORDINANCE NO. ___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN
GROVE AMENDING SECTION 8.47.060 OF CHAPTER 8.47 OF TITLE 8
OF THE GARDEN GROVE MUNICIPAL CODE PERTAINING TO
PERMITTED CONSTRUCTION HOURS.
CITY ATTORNEY SUMMARY
This Ordinance amends the provisions of the Garden Grove Municipal Code pertaining to the hours and days that construction activity is permitted. The current provisions of the Code generally exempts construction activities from the Noise Ordinance and permits construction outdoors from 7 a.m. to 10 p.m. unless the construction activity does not cause negative impacts to the peace and quiet of a neighborhood. The proposed regulations will continue the exemption of construction activities from the Noise Ordinance but will limit the hours of any construction activity so that construction can only occur from 7 a.m. to 7 p.m. Monday through Friday and 9 a.m. to 6 p.m. on Saturdays. No construction activities will be permitted on Sundays and federal holidays. The proposed regulations will authorize the Building Official or designee to grant temporary waivers to the permitted construction hours and days. Minor home repairs and routine home and pers onal property maintenance will not be considered construction work, but will be subject to the other provisions of the Noise Ordinance.
THE CITY COUNCIL OF THE CITY OF GARDEN GROVE HEREBY ORDAINS AS FOLLOWS:
SECTION 1. Subdivision D of Section 8.47.060 of Chapter 8.47 of Title 8 of the Garden Grove Municipal Code is hereby amended to read as follows:
D. Permitted construction hours and days. Except as set forth in this subdivision D, construction and repair work are exempt from the provisions of this Chapter. Unless more restrictive hours are imposed by a public hearing body or otherwise imposed as a condition of approval for a development application, it shall be unlawful for any person within a residential area, or within a radius o f 500 feet therefrom, to operate equipment or perform any construction or repair work on buildings, structures, or projects, including construction -related vehicles arriving, idling, or being loaded/unloaded at or near a construction site, or to operate any pile driver, power shovel, pneumatic hammer, derrick, power hoist, or any other construction type device outside of the hours of 7:00 a.m. and 7:00 p.m. Monday through Friday and the hours of 9:00 a.m. and 6:00 p.m. on Saturdays. No construction or repair work shall be permitted on Sundays or federal holidays. The provisions of this subdivision do not apply to noise or sounds associated with emergency activity or in connection with any of the following:
445
Garden Grove City Council
Ordinance No. ___
1. Temporary waivers to permitted construction hours and days, which may be granted in writing by the Building Official or his or her designee.
2. Minor home repairs and routine home and personal property maintenance activities shall not be considered construction and repair work for purposes of this S ubdivision D. Such activities shall not be subject to the provisions of this Subdivision but shall be subject to all other provisions of this Chapter.
SECTION 2: 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 v alidity 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, irrespective of the fact that an y one or more sections, subsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional.
SECTION 3: The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30) days after adoption.
446
TABLE OF CONSTRUCTION HOUR LIMITATION FOR ADJACENT CITIES
HOURS OF CONSTRUCTION
CITY HOURS (Permitted) SPECIAL REQUIREMENTS
1 Anaheim 7:000 AM – 7:00 PM Additional work hours may be permitted if deemed necessary
by the Director of Public Works
or Building Official
2 Buena Park 7:00 AM – 8:00 PM Weekdays
& Saturdays
Excludes Sundays
3 Costa Mesa 7:00 AM – 7:00 PM Weekdays,
9:00 AM – 6:00 PM Saturdays
Excludes Sundays and the
following specified federal
holidays: New Year's Day,
Memorial Day, Independence
Day, Labor Day, Thanksgiving
Day, and Christmas Day
4 Cypress 7:00 AM – 8:00 PM Weekdays,
9:00 AM – 8:00 PM Saturdays
Excludes Sundays & Federal
Holidays
5 Fountain Valley 7:00 AM – 8:00 PM Weekdays,
9:00 AM – 8:00 PM Saturdays
Excludes Sundays & Federal
Holidays
6 Fullerton 7:00 AM – 8:00 PM Weekdays
& Saturdays
Excludes Sundays & City-
recognized Holidays
7 Huntington Beach 7:00 AM – 7:00 PM Excludes Sundays & Federal Holidays
8 Irvine 7:00 AM – 7:00 PM Weekdays,
9:00 AM – 6:00 PM Saturdays
Excludes Sundays & Federal
Holidays
(Temporary waiver to work
outside of permitted hours may
be granted by Chief Building
Official)
9 Los Alamitos 7:00 AM – 8:00 PM Weekdays,
8:00 AM – 8:00 PM Saturdays
Excludes Sundays & Federal
Holidays
10 Newport Beach 7:00 AM – 6:30 PM Weekdays,
8:00 AM – 6:00 PM Saturdays
Excludes Sundays & Federal
Holidays
11 Orange 7:00 AM – 8:00 PM Weekdays
& Saturdays,
9:00 AM – 8:00 PM Sundays &
Federal Holidays
N/A
12 Orange County 7:00 AM – 8:00 PM Excludes Sundays & Federal Holidays
13 Santa Ana 7:00 AM – 8:00 PM Excludes Sundays & Federal Holidays
14 Stanton 7:00 AM – 8:00 PM Excludes Sundays and Federal Holidays
15 Westminster 7:00 AM – 8:00 PM
Excludes Sundays & Federal
Holidays
447
D. Construction of buildings and projects. It D. Permitted construction hours and days.
Except as otherwise set forth in this subdivision D, construction and repair work are exempt from the provisions of this Chapter. Unless more restrictive hours are imposed by a public hearing body or otherwise imposed as a condition of approval for a development application, it shall be unlawful for any person within a residential area, or within a radius of 500 feet therefrom, to operate equipment or perform any outside construction or repair work on buildings, structures, or projects , including construction-related vehicles arriving, idling, or being loaded/unloaded at or near a construction site, or to operate any pile driver, power shovel, pneumatic hammer, derrick, power hoist, or any other construction type device between the hours of 10:00 p.m. of one day and 7:00 a.m. of the next day in such a manner that a person of normal sensitiveness, as determined utilizing the criteria established in Section 8.47.050(B), is caused discomfort or annoyance unless such operations are of an emergency nature.outside of the hours of 7:00 a.m. and 7:00 p.m.
Monday through Friday and the hours of 9:00 a.m. and 6:00 p.m. on Saturdays. No construction or repair work shall be permitted on Sundays or federal holidays. The provisions of this subdivision do not apply to noise or sounds associated with emergency activity or in connection with any of the following:
1. Temporary waivers to permitted construction hours and days, which may be granted in writing by the Building Official or his or her designee.
2. Minor home repairs and routine home and personal property maintenance activities shall not be considered construction and repair work for purposes of this Subdivision D. Such activities shall not be subject to the provisions of this Subdivision but shall be subject to all other provisions of this Chapter.
448
Item 251/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 7/8/2025
Subject: Award a contract to RJ Noble Company, for 2025 Various Streets Rehabilitation Project, City Project No. CP-1442000 and 2025 5-Year Landscape and Irrigation Maintenance, City Project No. CP-1505000. (Cost: $8,692,104)(Action Item)
OBJECTIVE
For City Council to award a contract to RJ Noble Company for the 2025 Various Streets Rehabilitation Project, Project N o. CP –1442000 and 2025 5 -Year Landscape and Irrigation Maintenance, Project No. CP–1505000.
BACKGROUND
The Project will involve the following street segments: Orangewood Avenue from Knott Street to Western Avenue; Markon Drive from Blades Avenue to Patterson Drive; Blades Avenue from Markon Drive to Monarch Street; Monarch Street from Southerly End to Patterson Drive; Edison Way from Lampson Avenue to Belgrave Avenue; Industry Street from Southerly End to Chapman Avenue; Patterson Drive from Knott Street to Monarch Street; Honold Circle from Westly End to Markon Drive; Doig Drive from Monarch Street to End; Hunt Avenue from Monarch Street to End; Belgrave Avenue from Knott Street to Industry Street; Anaconda Avenue from Monarch Street to Western Avenue; Western Avenue from Lampson Avenue to Chapman Avenue; Commerce Drive from Capital Avenue to Forbes Avenue; Capital Avenue from Commerce Drive to Corporate Drive; Forbes Avenue from Commerce Drive to Euclid Street; Emperor Quang Trung from Corporate Drive to Euclid Street; Corporate Drive from Capital Avenue to Forbes Avenue; Euclid Street from Westminster Avenue to Trask Avenue; Cardinal Circle from West End to Harbor Boulevard; Salinaz Drive from Newhope Street to End; Anabel Avenue from Newhope Street to A Better Way; A Better Way from Westminster Avenue to Anabel Avenue; West Street from Westminster Avenue to End; and Seaboard Circle from Westminster Avenue to End.
Additionally, the Project will be split into two (2) phases. The first phase consists of addressing each street with different rehabilitation measures to properly manage the unique circumstances and will involve some or most of the following elements: removing and replacing trees; removing and reconstructing failed pavement areas; cold milling; asphalt rubber aggregate membrane (ARAM); asphalt paving; replacement of concrete curb and 449
Item 251/2025
gutter, cross gutter, local depression , driveway, sidewalk, and curb ramps; adjustment of utility covers to finish grade; catch basin inlet screens; restoration of traffic striping, signing, pavement marking and markers; making landscaping and irrigation improvements; installation of CCTV came ras and traffic loops; and reestablishment of centerline ties and monuments. The second phase will consist of landscape and irrigation maintenance for five (5) years for Euclid Street from Westminster Avenue to Trask Avenue.
DISCUSSION
Staff solicited bi ds for this project pursuant to Municipal Code Section 2.50.100. Five (5) qualified bids were received at the City Clerk's office by 11:00 a.m. on June 25, 2025. The lowest qualified contractor was RJ Noble Company, with a total bid of $8,692,104. The breakdown of the bid is as follows: $8,538,104 for the Various Streets Rehabilitation Project, and $154,000 for the 5-Year Landscape and Irrigation Maintenance. This bid amount is within the current project budget. The licenses and references of the contractor have been reviewed and verified by staff, and all other documentation is in order.
Award contract - July 8, 2025
Begin construction (estimated) - August 18, 2025 Complete construction (estimated) - March 16, 2026
FINANCIAL IMPACT
The 2025 Various Streets Rehabilitation Project and the 5-Year Landscape and Irrigation Maintenance is included in the adopted five-year Capital Improvement Plan (CIP) budget.
Funding for these projects comes from a combination of Gas Tax, Drainage Fees, and Measure M2 funds.
RECOMMENDATION
It is recommended that the City Council:
Award a contract to RJ Noble Company, in the amount of $8,692,104 for the 2025 Various Streets Rehabilitation Project, Project No. CP–1442000 and 2025 5-Year Landscape and Irrigation Maintenance, Project No. CP–1505000; and
Authorize the City Manager , or designee, to execute an agreement with RJ Noble Company, and make minor modifications as appropriate thereto, on behalf of the City.
DAN CANDELARIA, P.E., T.E.
City Engineer
By: Nick Hsieh
Associate Engineer
450
Item 251/2025
ATTACHMENT(S)
1. Bid Summary
2. Construction Agreement
451
ATTACHMENT 1
CITY OF GARDEN GROVE
PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
BID SUMMARY SHEET
FOR
2025 VARIOUS STREETS REHABILITATION PROJECT
CITY PROJECT NO. CP - 1442000
AND
2025 5-YEAR LANDSCAPE AND IRRIGATION MAINTENANCE
PROJECT NO. CP – 1505000
BID OPENING: DATE: JUNE 25, 2025 TIME: 11:00 A.M.
ENGINEER’S ESTIMATE: $ 10,163,670.00
Bidder’s Name Total Bid % Under/Over
Engrs. Est
RJ Noble Company, Orange $8,692,104.00 14.48% Under
All American Asphalt, Corona $9,549,080.00 6.05% Under
Excel Paving, Long Beach $10,048,196.00 1.14% Under
Onyx Paving, Long Beach $10,222,000.00 0.57% Over
Hardy & Harper $10,500,000.00 3.31% Over
452
C O N S T R U C T I O N A G R E E M E N T
RJ NOBLE COMPANY
THIS AGREEMENT is made this 8th day of July, 2025 by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY"), and RJ Noble Company , hereinafter 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 July 8, 2025.
2. CITY desires to utilize the services of CONTRACTOR to furnish material, equipment, and labor for the 2025 VARIOUS STREETS REHABILITATION PROJECT, Project No. CP – 1442000 and 2025 5-YEAR LANDSCAPE AND IRRIGATION MAINTENANCE , PROJECT NO. CP – 1505000.
3. CONTRACTOR is qualified by virtue of experience, training, education, and expertise to accomplish services.
AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:
5.1 General Conditions. CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR'S investigation of all such matters and is in no way rely ing upon any opinions or representations of CITY. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents including the Notice Inviting Bids, Special Instructions to Bidders, if any, Plans, Specif ications, and CONTRACTOR's Proposal, are incorporated in this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the work covered by this Contract.
"Project" as used herein defines the entire scope of the work covered by all the Contract Documents. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to CITY’S Engineer, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR'S own risk and expense. The decision of the Engineer shall be final.
453
SECTION 5 - AGREEMENT (Continued)
5.2 Materials and Labor. CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by the CITY, to construct and complete the project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, CITY may settle such claims by making demand upon the surety to this Agreement. In the event of the failure or refusal of the surety to satisfy said clai ms, CITY may settle them directly and deduct the amount of payments from the Contract price and any amounts due to CONTRACTOR. In the event CITY receives a stop notice from any laborer or material supplier alleging non- payment by CONTRACTOR, CITY shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees.
5.3 Project. The PROJECT is described as: 2025 VARIOUS STREETS REHABILITATION PROJECT, Project N o. CP – 1442000 and 2025 5-YEAR LANDSCAPE AND IRRIGATION MAINTENANCE, PROJECT NO. CP – 1505000.
5.4 Plans and Specifications. The work to be done is shown in a set of detailed Plans and Specifications entitled: 2025 VARIOUS STREETS REHABILITATION PROJECT , Project N o. CP – 1442000 and 2025 5-YEAR LANDSCAPE AND IRRIGATION MAINTENANCE, PROJECT NO. CP – 1505000. Said Plans and Specifications and any revision, amendments or addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by r eference. The work to be done must also be in accordance with the General Provisions, Standard Specifications and Standard Plans of the CITY, which are also incorporated herein and referred to by, reference.
5.5 Time of Commencement and Completion. CONTRACTOR shall have fourteen (14) calendar days from the award of the Contract to execute the Contract and supply the CITY with all the documents and information required by the Instructions to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed contract and all of the other properly drafted and executed documents and information, it may issue a Notice to Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to provide the required documents and information within the ten (10) city working days, the CITY may then rescind the award of the Contract and then award the Contract to the next lowest responsive and responsible bidder.
The Contract time shall begin on August 18, 2025 per the Notice to Proceed issued by the City and the CONTRACTOR agrees to submit shop drawings within fourteen (14) calendar days. Further, upon receipt of the Notice to Proceed, the CONTRACTOR shall diligently prosecute the work within 150 (One Hu ndred and Fifty ) working days to completion as required per the plans and specifications excluding delays caused or authorized by the CITY as set forth in Sections 5.7, 5.8 and 5.9 hereof.
5.6 Time is of the Essence. Time is of the essence of this Contract.
Contractor shall have fourteen (14) calendar days from the award of the Contract to execute the Contract and supply CITY with all of the documents and information required by the Instruction to Bidders and the other Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed Contract and all of the other properly drafted and executed documents and information, it may issue a Notice to P roceed to the CONTRACTOR. If CONTRACTOR refuses or fails to execute the Contract or refuses or fails to provide the required documents and information within the fourteen (14) calendar days, the CITY may then rescind the 454
SECTION 5 - AGREEMENT (Continued)
award of the Contract and then awar d the Contract to the next lowest responsible and responsive bidder.
As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR'S work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the work covered by this Contract with that of all other CONTRACTORs, subcontractors and of the CITY, in a manner that will facilitate the efficient completion of the entire work in accordance with Section 5.5 herein.
CITY shall have complete control of the premises on which the work is to be performed and shall have the right to decide the time or order in which the various portions of the work shall be installed or the priority of the work of other subcontractors, and, in general, all matters representing the timely and orderly conduct of the work of CONTRACTOR on the premises.
5.7 Excusable Delays. CONTRACTOR shall be excused for any delay in the prosecution or completion of the Project caused by acts of God; inclement weather; damages caused by fire or other casualty for which CONTRACTOR is not responsible; any act of negligence or default of CITY; failure of CITY to make timely payments to CONTRACTOR; late delivery of materials required by this CONTRACT to be furnished by CITY; combined action of the workers in no way caused by or resulting from default or collusion on the part of CONTRACTOR; a lockout by CITY; or any other delays unforeseen by CONTRACTOR and beyond CONTRACTOR'S reasonable control.
CITY shall extend the time fixed in Section 5.5 herein for completion of the Project by the number of days CONTRACTOR has thus been delayed, provided that CONTRACTOR presents a written reques t to CITY for such time extension within fifteen (15) days of the commencement of such delay and CITY finds that the delay is justified. CITY'S decision will be conclusive on the parties to this Contract. Failure to file such request within the time allowed shall be deemed a waiver of the claim by CONTRACTOR.
No claims by CONTRACTOR for additional compensation or damages for delays will be allowed unless CONTRACTOR satisfies CITY that such delays were unavoidable and not the result of any action or inact ion of CONTRACTOR and that CONTRACTOR took all available measures to mitigate such damages. Extensions of time and extra compensation as a result of incurring undisclosed utilities would be determined in accordance with SPECIAL PROVISIONS and Section 3 -3 of the Standard Specifications for Public Works Construction 2006 Edition (GREEN BOOK). The CITY’S decision will be conclusive on all parties to this Contract.
5.8 Extra Work. The Contract price includes compensation for all work performed by CONTRACTOR, unless CONTRACTOR obtains a written change order signed by a designated representative of CITY specifying the exact nature of the extra work and the amount of extra compensation to be paid all as more particularly set forth in Section 5.9 hereof.
CITY shall extend the time fixed in Section 5.5 for completion of the Project by the number of days reasonably required for CONTRACTOR to perform the extra work, as determined by CITY’S Engineer. The decision of the Engineer shall be final. 455
SECTION 5 - AGREEMENT (Continued)
5.9 Changes in Project.
5.9.1 CITY may at any time, without notice to any surety, by written order designated or indicated to be a change order, make any change in the work within the general scope of the Contract, including but not limited to changes:
a. In the Specifications (including drawings and designs); b. In the time, method or manner of performance of the work; c. In the CITY -furnished facilities, equipment, materials, services or site; or d. Directing acceleration in the performance of the work.
If CONTRACTOR believes that the written order issued as part of this Section 5.9.1 has caused an increase in costs or time, the CONTRACTOR shall submit a written request for equitable adjustment to the CITY that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request.
Said notice shall be submitted via certified mail within twenty (20) days of the CONTRACTOR’S receipt of the written order. CONTRACTOR’S failure to submit the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of any potential change order or claim for said alleged change.
The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.
5.9.2 A change may also be any other conflict, difficulty or issue which the CONTRACTOR believes caused any change to the CONTRACTOR’S costs or project schedule, provided CONTRACTOR gives the CITY written notice and a request for equitable adjustment that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request. The notice shall also state the date the CONTRACTOR became aware of the issue, circumstances and source of the issue and that CONTRACTOR regards the issue as a change order. Said written notice shall be delivered to the CITY via certified mail within twenty (20) days of CONTRACTOR’S first notice of the issue.
CONTRACTOR’S failure to subm it the notice, which includes the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of ant potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.
5.9.3 Except as provided in this Section 5.9, no order, statement or conduct of the CITY or its representatives shall be treated as a change under this Section 5.9 or entitle CONTRACTOR to an equitable adjustment.
5.9.4 Except for claims based on defective specifications, no claim for any change under paragraph 5.9.1 or 5.9.2 above shall be allowed for any work performed more than 20 days before the CONTRACTOR gives written notice as required in paragraphs
5.9.1 and 5.9.2. In the case of defective specifications for which the CITY is responsible, the equitable adjustment shall include any increased direct cost CONTRACTOR reasonably incurred in attempting to comply with those defective specifications.
456
SECTION 5 - AGREEMENT (Continued)
5.9.5 If CONTRACTOR intends to assert a claim for an equitable adjustment under this Section 5.9, it must, within thirty (30) days after receipt of a denial of a request for equitable adjustment under paragraphs 5.9.1 and 5.9.2, submit a written statement to the CITY setting forth the general nature and monetary extent of such claim.
The CITY may extend the 30-day period. CONTRACTOR’S failure to submit the notice of a claim, within the required thirty (30) days shall constitute a waiver of the claim by the CONTRACTOR.
5.9.6 No claim by CONTRACTOR for an equitable adjustment shall be allowed if made after final payment under this Agreement.
5.9.7 CONTRACTOR hereby agrees to make any and all changes, furnish the materials and perform the work that CITY may require without nullifying this Contract.
CONTRACTOR shall adhere strictly to the Plans and Specifications unless a change there from is authorized in writing by the CITY. Under no condition shall CONTRACTOR make any changes to the Project, either in additions or deductions, without the written order of the CITY and the CITY shall not pay for any extra charges made by CONTRACTOR that have not been agreed upon in advance in writing by the CIT Y. CONTRACTOR shall submit immediately to the CITY written copies of its firm's cost or credit proposal for change in the work.
Disputed work shall be performed as ordered in writing by the CITY and the proper cost or credit breakdowns therefor shall be submitted without delay by CONTRACTOR to CITY.
5.10 Liquidated Damages for Delay. The parties agree that if the total work called for under this Contract, in all parts and requirements, is not completed within the time specified in Section 5.5 herein, plus the allowance made for delays or extensions authorized under Sections 5.7, 5.8 and 5.9 herein, the CITY will sustain damage which would be extremely difficult and impractical to ascertain. The parties therefor agree that CONTRACTOR will pay to CITY the sum of Two Thousand Dollars ($ 2,000.00) per day for each and every calendar day during which completion of the Project is so delayed. CONTRACTOR agrees to pay such liquidated damages and further agrees that CITY may offset the amount of liquidated damages from any monies due or that may become due CONTRACTOR under the Contract.
5.11 Contract Price and Method of Payment . CITY agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any subsequent additions or deductions as provided in approved change orders, the sum of Eight Million Six Hundred Ninety Two Thousand One Hundred and Four Dollars and Zero Cents ($ 8,692,104.00) as itemized in the bid proposal.
Progress payments shall be made to the CONTRACTOR on a monthly basis for each successive month as the work progresses. The CONTRACTOR shall be paid such sum as will bring the total payments received since the commencement of the work up to ninety-five percent (95%) of the value of the work completed, less all previous payments, provided that the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule. The CITY will retain five percent (5%) of the amount of each such progress estimate and material cost until 30 days after the recordation of the Notice of Completion.
Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the CITY’S Engineer, stating that the work for which paym ent is demanded has been performed in accordance with the terms of the Contract. Partial 457
SECTION 5 - AGREEMENT (Continued)
payments of the Contract price shall not be considered as an acceptance of any part of the work.
5.12 Substitution of Securities in Lieu of Retention of Funds. Pursuant to California Public Works Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to ensure performance of the Contract. CONTRACTOR shall be required to execute an addendum to this Contract together with escrow instructions and any other documents in order to effect this substitution.
5.13 Completion. Within 10 days after the contract completion date of the Project, CONTRACTOR shall file with the CITY’S Engineer its affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be set forth in an affidavit covering disputed claims, or items in connection with Stop Notices which have been filed under the provisions of the statutes of the State of California. CI TY may require affidavits or certificates of payment and/or releases from any subcontractor, laborer or material supplier.
5.14 CONTRACTOR 's Employees Compensation
5.14.1 General Prevailing Rate. CITY has ascertained CONTRACTOR shall comply with all applicabl e 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 of 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 approx imates the duties of the employees in question."
5.14.2 Forfeiture for Violation. CONTRACTOR shall, as a penalty to the CITY , forfeit one hundred dollars ($100.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1778 of the California Labor Code for the work provided for in this Contract, all in accordance wit h Section 1775 of the Labor Code of the State of California.
5.14.3 Apprentices. Section 1778.5, 1778.6 and 1778.7 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).
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SECTION 5 - AGREEMENT (Continued)
5.14.4 Workday. In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (5.14.2) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California and shall forfeit to the CITY as a penalty, the sum of t wenty-five Dollars ($25.00) for each worker employed in the execution of this Contract by CONTRACTOR or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article.
CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project.
5.14.5 Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual 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 records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. CONTRACTOR shall comply with all 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 payroll reports and cancelled checks for labors, every two weeks to the Engineer. Certified payroll and cancelled checks submittals are due one month aft er 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.
5.14.6 Contractor Registration. CONTRACTOR and its subcontractors must be registered with the California Department of Industrial Relations pursuant to Labor Code Section 1725.5. This Agreement shall not be effective until CONTRACTOR provides proof of registration to the CITY.
5.14.7 Posting of Job Site Notices. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner pursuant to Title 8, California Code of Regulations Section 16461(e) or other regulation promulgated pursuant to Labor Code Section 1771.4(a) (2). 459
SECTION 5 - AGREEMENT (Continued)
5.14.8 Notice of DIR Compliance Monitoring and Enforcement. Pursuant to Labor Code Section 1771.4, this Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.
5.15 Surety Bonds. CONTRACTOR shall, 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 claims for labor and materials furnished. Bonds submitted on any form 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."
5.16 Insurance.
5.16.1 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. A waiver of subrogation shall be provided by the insurer for each policy waiving subrogation against CITY, its office rs, 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 , unless otherwise indicated. 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.
5.16.2 CONTRACTOR is aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or undertake self -insurance in accordance with the pro visions of that Code, and will comply with such provisions before commencing the performance of the work of this Contract.
5.16.3 CONTRACTOR and all Subcontractors shall carry workers' compensation insurance for the protection of its employees during the progress of the work. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, employees, agents, and volunteers for this contract and all public agencies from whom permits will be obtained and their directors, officers, agent s, and employees, as determined by the CITY, and shall issue a waiver of subrogation.
5.16.4 Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:
Additional Insured Endorsements, ongoi ng and products- completed operations, for the Commercial General Liability policy , including mobile equipment and not excluding XCU, if available. Endorsements shall designate CITY, its officers, officials, employees, agents, and volunteers for this contr act and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by the CITY, as additional 460
SECTION 5 - AGREEMENT (Continued)
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 (at least as broad as ISO Form CG 20 10, CG 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 28; and CG 20 37 f orms if later revisions used).
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.
Automobile Liability policy and shall designate CITY, its 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 . 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, its 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 insured’s. 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 at least as broad as ISO CG 20 01 04 13 as respects CITY, its 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, its 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.
5.16.5 Before CONTRACT OR 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 Section 5.17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing , CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, the following insurance in amounts not less than the amounts specified and issued by a company admitted and licensed in California and having a Best's Guide Rating of A-Class VII or better:
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SECTION 5 - AGREEMENT (Continued)
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.
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 insurance hereinabove required.
5.17 Risk and Indemnification. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone.
CONTRACTOR agrees to save, indemnify and keep the CITY, its Officers, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their directors, Officers, Agents and Employees harmless against any and all liability, claims, judgments, costs and demands, including demands arising from injuries or death of persons (CONTRACTOR 'S employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigation arising through the sole negligence or sole willful misconduct of CITY and will make good to reimburse CITY for any expenditures, including reasonable attorneys' fees CITY may incur by reason of such matters, and if requested by CITY, will defend any such suits at the sole cost and expense of CONTRACTOR.
5.18 Termination.
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 462
SECTION 5 - AGREEMENT (Continued)
CITY, an equitable adjustment in the price provided for in this Contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY because of the CONTRACTOR'S default. Upon receipt of a termination action, the CONT RACTOR 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 material s 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 CI TY based on good cause and is unable to proceed with the work, or if the CONTRACTOR 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 the 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 substantially 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 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 w ithin 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 463
SECTION 5 - AGREEMENT (Continued)
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 term ination, 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 CONTRACTORS 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, t he 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 performance 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.
1. Upon receipt of such written notice of termination, the CONTRACTOR shall:
464
SECTION 5 - AGREEMENT (Continued)
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, assign 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 r ecovery 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) agreement(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 written 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. 465
SECTION 5 - AGREEMENT (Continued)
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 with 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 the 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 portion 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.
5.18.1 This Contract may be terminated in whole or in part in writing by the CITY for its convenience, provided that the CONTRACTOR is given (1) not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent t o terminate, and (2) an opportunity for consultation with the terminating party prior to termination.
5.18.2 If termination for default or convenience is effected by the CITY , an equitable adjustment in the price provided for in this Contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY because of the CONTRACTOR'S default.
5.18.3 Upon receipt of a termination action under paragraph (5.18.1) or (5.18.2) above, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process. 466
SECTION 5 - AGREEMENT (Continued)
5.18.4 Upon termination under paragraphs (5.18.1) and (5.18.2) above, the CITY may take over the work and may award another party an agreement to complete the work under this Contract.
5.19 Warranty. The CONTRACTOR agrees to perform all work under this Contract in accordance with the CITY’s designs, drawings and specifications.
The CONTRACTOR guarantees for a period of one (1) year from the date of the notice of completion of the work that the completed work is free from all defects due to faulty materials, equipment or workmanship and that he s hall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs or any damage to other parts of the system resulting from such defects. The CITY shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, the CITY may do so and charge the CONTRACTOR the cost incurred. The performance bond shall remain in full force and effect through the guarantee period.
The CONTRACTOR'S obligations under this clause are in addition to the CONTRACTOR'S other express or implied assurances of this Contract or state law and in no way diminish any other rights that the CITY may have against the CONTRACTOR for faulty materials, equipment or work.
5.20 Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Contract, each shall bear its own attorneys' fees, costs and necessary disbursements. N otwithstanding the foregoing, if any action is brought against the CONTRACTOR or any subcontractor to enforce a Stop Notice or Notice to Withhold, which named the CITY as a party to said action, the CITY shall be entitled to reasonable attorneys' fees, costs and necessary disbursements arising out of the defense of such action by the CITY. The CITY shall be entitled to deduct its costs for any Stop Notice filed, whether court action is involved or not.
5.21 Notices. Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing.
TO CITY: TO CONTRACTOR:
City of Garden Grove RJ Noble Company
Public Works Department Jacob Breedlove, Vice President Attention: Nick Hsieh 15505. E. Lincoln Avenue
11222 Acacia Parkway Orange, CA 92865
Garden Grove, CA 92840 (714) 637-1550
(714) 741-5190 (714) 637-6321 Fax
(714) 741-5578 Fax
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SECTION 5 - AGREEMENT (Continued)
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SECTION 5 - AGREEMENT (Continued)
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"
RJ Noble Company
CONTRACTOR'S State License No. 782908 Class A & C12
(Expiration Date: 08/31/2026 )
CONTRACTOR'S DIR No. 1000004235
Attached Copy of your DIR Certificate.
By:
Title: Jacob Breedlove, Vice President
Date:
APPROVED AS TO FORM:
______________________________
Garden Grove City Attorney
If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.
Date___________________________
469
FAITHFUL PERFORMANCE BOND
Bond No.
Premium
NOTICE: TO WHOM IT MAY CONCERN: those we, ,
,
as Principal, and
as Surety, are held and firmly bound unto the City of Garden Grove, (CITY) in the sum of
Lawful money of the United States, for the payment of which we bind heirs, our executors, administrators, successors, and ourselves jointly and severally.
That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:
License No.:
Address:
Telephone No.:
That the following clause must be completed if, in fact, a non-resident agent for the Surety is a party to the transaction:
Name of non-resident agent:
Non-resident agent's office address:
Telephone No.:
THE CONDITION OF THIS OBLIGATION IS SUCH, that:
1. The Principal has agreed entered into a contract attached hereto, dated the day of , 2025, with the CITY OF GARDEN GROVE for 2025 VARIOUS STREETS REHABILITATION PROJECT, Project No. CP – 1442000 and 2025 5-YEAR LANDSCAPE AND IRRIGATION MAINTENANCE, PROJECT NO. CP – 1505000.
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. 470
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:
471
LABOR AND MATERIAL BOND
Bond No.
Premium
NOTICE: TO WHOM IT MAY CONCERN: those we,
,
as Principal, and , as Surety,
are held and firmly bound unto the City of Garden Grove, California ("CITY") in the sum of ____ Dollars ($ ), lawful money of the United States, for the payment of the sum, we bind heirs, our executors, administrators, successors, and ourselves jointly and severally.
That the Surety's office is located at ,
telephone no. ; the Surety is licensed to do business in the State of California; and the California Insurance Agent's License No., address, and telephone no. are as follows:
License No.:
Address:
Telephone No.:
That the following clause must be completed if, in fact, a non-resident agent for the Surety is a party to the transaction:
Name of non-resident agent:
Non-resident agent's office address:
Telephone No.:
THE CONDITION OF THIS OBLIGATION IS SUCH, that:
1. The Principal has entered into a contract attached hereto, dated day of ________________, 2025, with the CITY OF GARDEN GROVE for 2025 VARIOUS STREETS REHABILITATION PROJECT , City Project N o. CP – 1442000 and 2025 5-YEAR LANDSCAPE AND IRRIGATION MAINTENANCE, PROJECT NO. CP – 1505000.
2. If the Principal, its heirs, executors, administrators, successors, or assigns, or subcontractors, shall fail to pay for any materials, provisions, provender, or other supplies or teams, implements, or machinery used in, upon, for, or about, the performance of the improvement, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor, and provided that the claimant shall have complied with the provision of the code, the Surety or Sureties will pay for same in the amount not exceeding the sum specified in this bond; otherwise, the above obligation shall be void. In case suit is brought upon this bond, the Surety will pay reasonable attorneys' fees.
3. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the contract documents, or of work performed, shall in any way affect its obligation on this bond, and it does hereby waive notice of any change, extension of time, alteration, or modification of the contract documents, or of work to be performed. 472
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 9554 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 A gent as Attorney -
in-Fact must be attached.)
Notary Public in and for said County and State
My Commission expires:
473
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 const ruction 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 474
escrow agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the owner.
(8) Upon receipt of written notification from the owner certifying that the contract is final and complete, and that the contractor has complied with all requirements and procedures applicable to the contract, the escrow agent shall release to the contractor all securities and interest on deposit less escrow fees and charges of the escrow account. The escrow shall be closed immediately upon disbursement of all moneys and securities on deposit and payment of fees and charges. (9) The escrow agent shall rely on the written notifications from the owner and the contractor pursuant to Sections (1) to (8), inclusive, of this agreement and the owner and contractor shall hold the escrow agent harmless from the escrow agent's release, conversion, and disbursement of the securities and interest as set forth above. (10) The names of the persons who are authorized to give written notice or to receive written notice on behalf of the owner and on behalf of the contractor in connection with the foregoing, and exemplars of their respective signatures are as follows:
On behalf of the owner: On behalf of the contractor:
On behalf of the owner: On behalf of the contractor:
Title Title
Name Name
Signature Signature
Address Address
475
On behalf of the escrow agent:
Title Title
Name Name
Signature Signature
Address Address
At the time the escrow account is open ed, 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
476