Agenda packet — Garden Grove City Council, February 24, 2026 (part 1 of 2)

AGENDA

Garden Grove City Council

Tuesday, February 24, 2026
6:30 PM

Community Meeting Center
11300 Stanford Avenue
Garden Grove, California 92840
Stephanie Klopfenstein
Mayor
George S. Brietigam
Mayor Pro Tem – District 1
Phillip Nguyen
Council Member – District 2
Cindy Tran
Council Member – District 3
Joe DoVinh
Council Member – District 4
Yesenia Muñeton
Council Member – District 5
Ariana Arestegui
Council Member – District 6

Meeting Assistance: Any person requiring auxiliary aids and services, due to a disability, to address the City Council, should contact the City Clerk's Office 72 hours prior to the meeting to arrange for accommodations. Phone: (714) 741-5040.

Agenda Item Descriptions: Are intended to give a brief, general description of the item. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda.

Documents/Writings: Any revised or additional documents/writings related to an item on the agenda distributed to all or a majority of the Council Members within 72 hours of a meeting, are made available for public inspection at the same time (1) in th e City Clerk's Office at 11222 Acacia Parkway, Garden Grove, CA 92840, during normal business hours; (2) on the City's website as an attachment to the City Council meeting agenda; and (3) at the Council Chamber at the time of the meeting.

Public Comments : Members of the public who attend the meeting in -person and would like to address the City Council are requested to complete a pink speaker card indicating their name and address, and identifying the subject matter they wish to address. This card should b e given to the City Clerk before the meeting begins. General comments are made during "Oral Communications" and should be limited to matters under consideration and/or what the City Council has jurisdiction over. Persons wishing to address the City Council regarding a Public Hearing matter will be called to the podium at the time the matter is being considered.

Manner of Addressing the City Council: After being called by the Mayor, you may approach the podium, it is requested that you state your name for the record, and proceed to address the City Council. All remarks and questions should be addressed to the City Council as a whole and not to individual Council Members or staff members. Any person making impertinent, slanderous, or profane remarks or who becomes boisterous while addressing the City Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council any further during that meeting.

Time Limitation: When any group of persons wishes to address the City Council on the same subject matter, the Mayor may request a spokesperson be chosen to represent the group, so as to avoid unnecessary repetition. At the City Council's discretion, a limit on the total amount of time for public comments during Oral Communications and/or a further limit on the time allotted to each speaker during Oral Communications may be set.

PLEASE SILENCE YOUR CELL PHONES DURING THE MEETING.
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AGENDA

ROLL CALL: COUNCIL MEMBER NGUYEN, COUNCIL MEMBER TRAN, COUNCIL MEMBER DOVINH, COUNCIL MEMBER MUÑETON, COUNCIL MEMBER ARESTEGUI, MAYOR

PRO TEM BRIETIGAM, MAYOR KLOPFENSTEIN

INVOCATION

PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA

PRESENTATIONS

1. Pet at the Podium by Orange County Humane Society showcasing their Pet Adoption Program.

[Item 62/2026]

2. Community Spotlight in recognition of the 50th Anniversary of the Garden Grove Housing Authority.

[Item 54/2026]

3. Community Spotlight in recognition of the Community Action Partnership of Orange County Food Bank's efforts to end hunger in Garden Grove and beyond.

[Item 60/2026]

ORAL COMMUNICATIONS (TO BE HELD SIMULTANEOUSLY WITH OTHER

LEGISLATIVE BODIES)

RECESS

CONDUCT OTHER LEGISLATIVE BODIES' BUSINESS

RECONVENE

CONSENT ITEMS (WILL BE ACTED ON SIMULTANEOUSLY WITH ONE MOTION

UNLESS SEPARATE DISCUSSION AND/OR ACTION IS REQUESTED BY A COUNCIL

MEMBER)

4. Adoption of a Proclamation recognizing the 50th Anniversary of the Garden Grove Housing Authority. (Action Item)

[Item 71/2026]

5. Adoption of a Proclamation celebrating March as Women's History Month in Garden Grove. (Action Item)

[Item 66/2026]

Page 3 of 4 ends

6. Approval of Garden Grove Tourism Improvement District - Amendment No. 1 to the FY 2025-26 Advisory Board Report, Approval of the FY 2026-27 Advisory Board Report and Budget, Adoption of a Resolution of Intention to Approve Modifications to the activities for FY 2025-26, and Adoption of a Resolution of Intention to Levy FY 2026-27 Assessments. (Action Item)

[Item 52/2026]

7. Award a contract to SAVI Construction Inc. for the installation of a concrete pad for the Clean California Medal of Honor Bike and Pedestrian Trail Project, Project No.

GT1408000. (Cost: $89,375)(Action Item)

[Item 56/2026]

8. Authorization for the issuance of a purchase order to Knight Technology Group to purchase a backup storage server. (Cost: $31,659)(Action Item)

[Item 61/2026]

9. Receive and file warrants. (Action Item)

[Item 59/2026]

10. Approval to waive full reading of ordinances listed. (Action Item)

[Item 64/2026]

ITEMS FOR CONSIDERATION

11. Introduction and First Reading of an Ordinance adding Chapter 6.48 to Title 6 of the Garden Grove Municipal Code prohibiting the sale and distribution of kratom products, entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ADDING CHAPTER 6.48 TO TITLE 6 OF THE GARDEN GROVE MUNICIPAL CODE PROHIBITING THE SALE AND DISTRIBUTION OF KRATOM PRODUCTS.
(Continued from the February 10, 2026 City Council meeting)(Action Item)

[Item 63/2026]

12. Introduction and First Reading of an Ordinance adding Chapter 6.50 to Title 6 of the Garden Grove Municipal Code restricting the sale and distribution of nitrous oxide products, entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ADDING CHAPTER 6.50 TO TITLE 6 OF THE GARDEN GROVE MUNICIPAL CODE RESTRICTING THE SALE AND DISTRIBUTION OF NITROUS OXIDE PRODUCTS. (Continued from the February 10, 2026 City Council meeting)(Action Item)

[Item 70/2026]

MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS AND CITY MANAGER

13. Discussion on a proposed street name change as requested by Council Member DoVinh. [Item 65/2026]
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ADJOURNMENT

The next Regular Meeting is scheduled for Tuesday, March 10, 2026, at 5:30 p.m. in the Community Meeting Center, 11300 Stanford Avenue, Garden Grove, California, 92840. 4 Item 71/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Johnathan Garcia
Dept:

City Manager Dept: Community Relations
Date: 2/24/2026

Subject: Adoption of a Proclamation recognizing the 50th Anniversary of the Garden Grove Housing Authority. (Action Item)

OBJECTIVE

For the City Council to adopt a Proclamation recognizing the 50th Anniversary of the Garden Grove Housing Authority.

BACKGROUND/DISCUSSION

Established in 1975, the Garden Grove Housing Authority has served the community for 50 years by providing affordable housing assistance to low income individuals and families.

Operating under the California Housing Authorities Law, the Housing Authority develops, manages, and administers a variety of affordable housing programs that improve housing stability and quality of life for residents. Over the past years, the Housing Authority has issued more than 2,300 Housing Choice, Emergency, and Mainstream vouchers and has provided multilingual resources to better serve the community.

The 50th Anniversary marks an important milestone and reflects decades of dedicated service by staff and community partners committed to promoting personal, economic, and social mobility for Garden Grove residents.

FINANCIAL IMPACT

There is no financial impact.

RECOMMENDATION

It is recommended that the City Council:

 Adopt a Proclamation recognizing the 50th Anniversary of the Garden Grove Housing Authority.

5 Item 71/2026

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ATTACHMENT(S)

1. Proclamation

6 Proclamation
50th Anniversary of the
Garden Grove Housing Authority

WHEREAS, The Garden Grove Housing Authority has served as a vital division within the City of Garden Grove for 50 years, addressing the City’s growing need for affordable housing and helping to ensure that safe, decent, and sanitary housing is available to low- income individuals and families residing in Garden Grove; and
WHEREAS, Established in 1975, the Garden Grove Housing Authority is responsible for developing, managing, and admini stering a variety of affordable housing programs aimed at improving housing stability and quality of life for vulnerable populations in the community; and
WHEREAS, Acting under the authority granted by the California Housing Authorities Law, the Garden Gro ve Housing Authority has provided resources in multiple languages, including English, Spanish, and Vietnamese, with additional language assistance available upon request, and has issued over 2,300 Housing Choice, Emergency, and Mainstream v ouchers to qualifying Garden Grove residents; and
WHEREAS, Over the past 50 years, The Garden Grove Housing Authority’s success has been the result of the dedication of its staff and community partners, who have worked together to promote personal, economic, and social upward mobility; and
WHEREAS, The City of Garden Grove proudly celebrates the Garden Grove Housing Authority’s 50 years of dedication to empowering families and supporting Garden Grove residents in their transition from subsidized to non-subsidized housing.

NOW, THEREFORE, WE, the Garden Grove City Council, do hereby proclaim the 50th Anniversary of the Garden Grove Housing Authority , and commend its outstanding service, leadership, and lasting contributions to the well -being of the Garden Grove community.

February 24, 2026

7 Item 66/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Lizabeth Vasquez
Dept:

City Manager Dept: City Clerk
Date: 2/24/2026

Subject: Adoption of a Proclamation celebrating March as Women's History Month in Garden Grove. (Action Item)

OBJECTIVE

For the City Council to adopt a Proclamation celebrating March as Women's History Month in Garden Grove.

BACKGROUND/DISCUSSION

In 1987, Congress declared March as National Women's History Month in perpetuity .

Furthermore, the Garden Grove City Council annually recognizes the significant contributions and accomplishments made by women locally and internationally by proclaiming Marc h as Women’s History Month in Garden Grove.

Throughout history, women have paved the way and demonstrated extraordinary leadership as educators, entrepreneurs, doctors, scientists, public servants, and notably as mothers, daughters, sisters, and wives. The women of Garden Grove, past and present, have served as community builders whose tireless contributions have strengthened the fabric and well - being of this community and deserve recognition as they inspire future generations of leaders in our City and beyond.

FINANCIAL IMPACT

There is no financial impact.

RECOMMENDATION

It is recommended that the City Council:
 Adopt the Proclamation celebrating March as Women’s History Month in Garden Grove.

ATTACHMENT(S)

Proclamation
8 Proclamation
March as Women’s History Month

WHEREAS, In 1987, Congress declared March as National Women's History Month in perpetuity. Since 1995, a special Presidential Proclamation has been issued annually which honors the extraordinary achievements of American women;
WHEREAS, The 2026 theme for Women’s History Month is “Leading the C hange:

Women Shaping a Sustainable Future.” This theme honors the women who are leading sustainability efforts across environmental, economic, educational, and social justice movements;
WHEREAS, Throughout history, women have paved the way and demonstrated extraordinary leadership as educators, entrepreneurs, doctors, scientists, public servants, military members, and more; WHEREAS, The courageous and powerful mothers, daughters, sisters, and wives who fought for the ratification of the 19 th Amendment to the United States Constitution on August 18, 1920, deserve special recognition; WHEREAS, California was the 18th state to ratify the 19th Amendment on November 1, 1919;
WHEREAS, California women gained the right to vote in 1911, with the passage of Amendment 8 to the state constitution – almost a full decade before women voted nationally; and
WHEREAS, The women of Garden Grove, past and present, have served as community builders whose tireless contributions have strengthened the fabric and well-being of this community, and inspired future generations of leaders in Garden Grove and beyond.

NOW, THEREFORE, the Garden Grove City Council does hereby proclaim the month of March 2026 as Women’s History Month in Garden Grove.

February 24, 2026

9 Item 52/2026

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: 2/24/2026

Subject: Approval of Garden Grove Tourism Improvement District - Amendment No. 1 to the FY 2025-26 Advisory Board Report, Approval of the FY 2026-27 Advisory Board Report and Budget, Adoption of a Resolution of Intention to Approve Modifications to the activities for FY 2025-26, and Adoption of a Resolution of Intention to Levy FY 2026-27 Assessments. (Action Item)

OBJECTIVE

For the City Council to approve Amendment No.1 to the Fiscal Year 2025-26 Advisory Board Report (“Annual Report”) of the Garden Grove Tourism Improvement District (“GGTID”) Advisory Board ; approve the Fiscal Year 2026 -27 Advisory Report and Budget, adopt a resolution of intention to approve modifications to the activities for Fiscal Year 2025-26, adopt a Resolution to levy assessments for Fiscal Year 2026–27, and set a public hearing to consider the amended Fiscal Year 2025 –26 Advisory Board Report and activities, and the proposed Fiscal Year 2026–27 assessments.

BACKGROUND
The proposed amendment to the Fiscal Year 2025–26 GGTID Advisory Board Annual Report includes the addition of transit services as an eligible activity and clarifies the associated funding source. The amendment supports visitor mobility within the Grove District by improving connectivity between hotels and key destinations, reducing vehicle reliance, and enhancing overall visitor access and satisfaction. These enhancements strengthen hotel competitiveness and support increased tourism spending within the City.

This item also approves the Fiscal Year 2026 –27 GGTID Advisory Board Annual Report and Budget and provides notice of the City’s intent to levy annual district assessments for both fiscal year actions.

The GGTID was established by the City Council in accordance with the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq. (the "Law") through the adoption of Resolution No. 9009 -10 on August 24, 2010, and Ordinance No. 2782 on October 26, 2010. The purp ose of the GGTID is to provide revenue 10 Item 52/2026

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to defray the costs of advertising and marketing efforts designed to increase overnight stays in the GGTID, construction and maintenance of improvements in the GGTID, and other services, activities, and programs that promote and encourage tourism within the GGTID, which benefit the operators of hotels paying assessments through the promotion of scenic, recreational, cultural, and other attractions.

The GGTID includes the hotels along Harbor Boulevard from the northern boundary within the City to Garden Grove Boulevard. It is divided into two (2) separate benefit zones:

 Tier I includes the hotels north of Lampson Avenue, which are subject to an assessment of up to 2.5% of gross rent charged per room occupancy per night.

There are currently nine (9) hotels in Tier I.

 Tier II encompasses those hotels south of Lampson Avenue, which are subject to an assessment of up to 0.5% of gross rent charged per room occupancy per night. There is currently one hotel in Tier II, The Gr eat Wolf Lodge Southern California.

Pursuant to the Law and the Ordinance, the City Council is required to annually 1) approve the Annual Report (as recommended by the Advisory Board or with modifications) and 2) adopt a resolution of intention to levy the assessment and set a date for the public hearing.

DISCUSSION

Annual Report Amendment for FY 26-27

In accordance with Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation (GGTPC) serves as the Advisory Board. Pursuant to the Ordinance and the Law, the Advisory Board is required to submit an annual report to the City. The annual report is required to include the following:

 Any proposed changes in the boundaries of the GGTID or in any of the benefit zones;

 A descr iption of the improvements and activities to be provided for the upcoming fiscal year;

 An estimate of the cost of providing the improvements and the activities for that fiscal year;

 The recommended method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year;

 The amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and

11 Item 52/2026

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 The a mount of any contributions to be made from sources other than the assessments levied.

The Annual Report serves as the basis for the levying of assessments each year.

The Advisory Board has approved and recommended the Amendment to the Fiscal Year 2025- 26 Annual Report for City Council consideration, which contains a proposed budget for use of the anticipated assessment revenues for the year. No changes are proposed (i) to the boundaries of the GGTID, (ii) in the GGTID improvements and activities authorized by Resolution No. 9009 -10 and Ordinance No. 2782, or (iii) in the amount of the annual assessment or the method and basis for levying the assessment. The Advisory Board is recommending that the annual assessments for Fiscal Year 2026-27 continue to be two and one-half percent (2.5%) of the gross rent charged by the Operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier I, and (ii) one-half percent (0.5%) of the gross rent charged by the Operator per room occupancy per night for all transient occupancies for each visitor accommodation facility in Tier II.

On February 22, 2011, the City Council approved an agreement with the Anaheim/Orange County Visitor & Convention Bureau ("VCB") (currently known as “Visit Anaheim”), pursuant to which, approximately 80% of the GGTID assessment revenue collected is allocated to the VCB to fund collective tourism marketing efforts or retained by the City for future Harbor Boulevard median improvements and a future transit system. The remaining (approximately 20%) of the GGTID assessment is allocated to fund specific improvements along Harbor Boulevard and other tourism promotion activities in Garden Grove in accordance with the budget included in the Annual Report. These funds are administered by the GGTPC pursuant to an agreement with the GGTPC approved by the City Council on September 27, 2011.

Amendment No. 1 to the 2025-26 Report adds Transit Services as a new activity. The Garden Grove Hotel Transit Shuttle Syst em is an approved, district -wide program serving approximately 3,600 Grove District hotel rooms. The program is funded primarily through guest-generated assessments, with a portion of the GGTID budget covering the remaining, uncaptured operating costs. The GGTID will administer and manage the transit operator contract. The shuttle will provide direct connectivity between Grove District hotels, the Anaheim Convention Center, and key resort destinations, improving guest mobility and market competitiveness. Ex pected outcomes include stronger convention room -night capture, improved occupancy, enhanced rate integrity, and measurable revenue performance across participating properties.

Levying of Assessment for Fiscal Year 2026-27

State Law requires that each year the City Council adopt a Resolution declaring its intention to levy an annual assessment for the upcoming fiscal year based on the Annual Report and scheduling a public hearing on the proposed assessment. The attached proposed Resolution contains the items required by State Law and sets a public hearing on the matter for March 10, 2026. After City Council adoption, the Resolution will be published in a local paper of general circulation at least ten (10) days before the public hearing pursuant to the Law.

At the Public Hearing scheduled for March 10, 2026, the City Council may order changes to the Annual Report recommended by the Advisory Board. Care must be taken to ensure that 12 Item 52/2026

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changes do not increase an assessment or expand the businesses or propertie s subject to assessment. During the public hearing, the City Council accepts oral and written protests.

Proceedings must be abandoned if written protests are received (and not withdrawn) from owners of businesses that will pay 50% or more of the assessment s proposed to be levied.

At the conclusion of the Public Hearing, the City Council may adopt a Resolution confirming the Amendment to the Fiscal Year 2025 –26 Annual Report (with or without changes) and levying the assessment for the Fiscal Year 2026-27.

FINANCIAL IMPACT

The proposed Fiscal Year 2026–27 budget and the Fiscal Year 2025–26 amendment have no impact on the City’s General Fund. It is estimated that the GGTID will generate approximately $2.6 million in revenue for Fiscal Year 2026-27. These funds will be dedicated to supporting local tourism promotion efforts. The majority of the revenue will be administered by Visit Anaheim and the GGTPC. Any administrative costs incurred by the City in connection with the GGTID will be reimbursed from assessment revenues, up to a certain cap established.

RECOMMENDATION

It is recommended that City Council:
 Adopt a Resolution approving Amendment No.1 to Fiscal Year 2025–26 Garden Grove Tourism Improvement District Advisory Board Report;  Approve the Fiscal Year 2026-27 Garden Grove Tourism Improvement District Advisory Board Report and Budget; and
 Adopt the Resolution declaring the City’s Intention to Levy Assessments for Fiscal Year 2026 -27 and setting a time and date for a public hearin g on Amendment No. 1 to the Fiscal Year 2025–26 Advisory Board Report and the proposed Fiscal Year 2026-27 assessments.

By: Henry Surjono, Administrative Analyst

ATTACHMENT(S)

1. Resolution Approving Amendment No.1 - FY 2025-26 and Notice of Intention to Approve Modifications to the Activities for FY 2025-26.

2. Resolution of Intention to Levy Assessments - FY 2026-27

3. GGTID Advisory Board Report - Amendment No.1 FY 2025-26

4. GGTID Advisory Board Report - FY 2025-26

5. GGTID Advisory Board Report - FY 2026-27

6. Visit Anaheim Advisory Board Report - FY 2026-27

13 GARDEN GROVE CITY COUNCIL
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE APPROVING AN AMENDEDMENT TO THE 2025-26 ANNUAL REPORT OF THE

GARDEN GROVE TOURISM IMPROVEMENT DISTRICT ADVISORY BOARD,

DECLARING ITS INTENTION TO APPROVE MODIFICATIONS TO THE ACTIVITIES FOR FISCAL YEAR 2025-26 FOR THE GARDEN GROVE TOURISM IMPROVEMENT

DISTRICT, FIXING THE TIME AND PLACE OF PUBLIC HEARING THEREON AND

GIVING NOTICE THEREOF

WHEREAS, the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq., (the “Law”) authorizes cities to establish parking and business improvement areas for the purpose of funding certain improvements and activities, including the promotion of tourism, through assessments upon the businesses that benefit from those improvements and activities and to levy an assessment upon businesses within a parking and business improvement area, which is in addition to any assessments, fees, charges, or taxes imposed in the City;

WHEREAS, the Garden Grove Tourism Improvement District (GGTID) was established October 26, 2010, by City Council adoption of Ordinance No. 2782; and

WHEREAS, in accordance with Section 36533 of the Law, the GGTID Advisory Board has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council, a proposed amendment to the report in connection with modifications of the activities to be funded with the revenues from the levy of the assessments of the GGTID (the “Amendment to the Annual Report”).

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:

SECTION 1. The recitals set forth herein are true and correct.

SECTION 2. The City Council has examined and reviewed the Amendment to the Annual Report, and such Amendment is hereby approved and filed.

SECTION 3. The City Council hereby declares its intention to approve the modifications of the activities to be funded with the revenues from the levy of assessments from those visitor accommodation facilities within the boundaries of the Garden Grove Tourism Improvement District (“GGTID”) for the 2025-26 Fiscal Year, commencing July 1, 2025, and continuing through June 30, 2026.

SECTION 4. The Amendment to the Annual Report is on file with the Garden Grove City Clerk and contains a full and detailed description of the modifications to the activities to be provided to the visitor accommodation facilities in the area. 14 Garden Grove City Council
Resolution No.

Page 2 ends

SECTION 5. The boundaries of the GGTID generally include certain real property within that area of Garden Grove fronting, bordering, or near Harbor Boulevard from the City of Anaheim to Garden Grove Boulevard. The GGTID is divided into two (2) separate zones: (i) Tier I, which includes that real property within the GGTID north of Lampson Avenue, and (ii) Tier II, which includes that real property within the GGTID south of Lampson Avenue. A map showing the precise area and boundaries of the GGTID and the two benefit zones is on file with the Garden Grove City Clerk.

SECTION 6. The time and place for a public hearing on the levy of assessments for the GGTID is hereby set for March 10, 2026 at 6:30 p.m., or as soon thereafter as practicable, at the Garden Grove Community Meeting Center, 11300 Stanford Avenue, Garden Grove, California.

SECTION 7. The City Clerk is hereby directed to give proper notice of the above- described public meeting and public hearing in accordance with law.

SECTION 8. At the public hearing, the testimony of all interested persons for or against the modification to the activities of the GGTID for fiscal year 2025-26. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. To count in the majority protest against the GGTID, a protest must be written. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business and its address. If the person signing the protest is not shown on the official records of the City of Garden Grove as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. If the owner of the business is a corporation, LLC, partnership or other legal entity, the authorized representative for the entity shall be authorized to sign the protest.
15 Garden Grove City Council
Resolution No.

Page 3 ends

Written protests must be received by the City Clerk of the City of Garden Grove before the close of the public hearing scheduled herein and may be mailed to the City Clerk, City of Garden Grove, P.O. Box 3070, Garden Grove, California 92842, or delivered in person to the City Clerk at 11222 Acacia Parkway, Garden Grove, California 92840.

SECTION 9. Pursuant to California Streets and Highways Code Section 36525, if at the conclusion of the public hearing, there are of record, valid written protests by the owners of the businesses within the GGTID that will pay fifty percent (50%) or more of the total assessments of the entire GGTID, no modifications in the activities for Fiscal Year 2025-26 will be approved or implemented. In order to determine the projected assessments for purposes of establishing voting percentages, the City shall make projections based on the prior three-year average of gross rental revenues for the applicable visitor accommodation facilities. Since such information is proprietary, the City, alone, will determine the total percentage protest and provide such percentage at the public hearing.

SECTION 11. This Resolution is effective upon its adoption.

Adopted this 24
th day of February 2026.
16 GARDEN GROVE CITY COUNCIL
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE

APPROVING THE ANNUAL REPORT OF THE GARDEN GROVE TOURISM

IMPROVEMENT DISTRICT ADVISORY BOARD, DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR FISCAL YEAR 2026-27 FOR THE GARDEN GROVE TOURISM

IMPROVEMENT DISTRICT, FIXING THE TIME AND PLACE OF PUBLIC HEARING

THEREON AND GIVING NOTICE THEREOF

WHEREAS, the Garden Grove Tourism Improvement District (GGTID) was established October 26, 2010, by City Council adoption of Ordinance No. 2782; and

WHEREAS, in accordance with Section 36533 of the Law, the GGTID Advisory Board has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council, a report in connection with the proposed levy of an assessment against visitor accommodation facilities within the GGTID (the “Annual Report”).

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE HEREBY RESOLVES, DETERMINES, AND FINDS AS FOLLOWS:

SECTION 1. The recitals set forth herein are true and correct.

SECTION 2. The City Council has examined and reviewed the Annual Report, and such Annual Report is hereby approved and filed.

SECTION 3. The City Council hereby declares its intention to levy and collect assessments from those visitor accommodation facilities within the boundaries of the Garden Grove Tourism Improvement District (“GGTID”) for the 2026-27 Fiscal Year, commencing July 1, 2026, and continuing through June 30, 2027.

SECTION 4. The Annual Report is on file with the Garden Grove City Clerk and contains a full and detailed description of the improvements and activities to be provided, the boundaries of the area, and proposed assessments to be levied upon the visitor accommodation facilities in the area.
17 Garden Grove City Council
Resolution No.

Page 2 ends

SECTION 6. The types of improvements and activities to be funded by the levy of assessments on visitor accommodation facilities within the GGTID are GGTID and Anaheim/Orange County Visitor and Convention Bureau (“VCB”) tourism and marketing programs to promote the area and benefitted visitor accommodation facilities as a tourism destination; GGTID and VCB administrative oversight; physical improvements and maintenance along the right-of-way, median, and sidewalks adjacent to the benefitted visitor accommodation facilities; and other projects, programs, and activities that benefit the visitor accommodation facilities located and operating within the GGTID.

SECTION 7. The time and place for a public hearing on the levy of assessments for the GGTID is hereby set for March 10, 2026 at 6:30 p.m., or as soon thereafter as practicable, at the Garden Grove Community Meeting Center, 11300 Stanford Avenue, Garden Grove, California.

SECTION 8. The City Clerk is hereby directed to give proper notice of the above- described public meeting and public hearing in accordance with law.

SECTION 9. At the public hearing, the testimony of all interested persons for or against the levying of assessments on the visitor accommodation facilities in the GGTID for fiscal year 2026-27, the extent of the GGTID, or the furnishing of specified types of improvements or activities will be heard. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. To count in the majority protest against the GGTID, a protest must be written. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business and its address.

If the person signing the protest is not shown on the official records of the City of Garden Grove as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. If the owner of the business is a corporation, LLC, partnership or other legal entity, the authorized representative for the entity shall be authorized to sign the protest. 18 Garden Grove City Council
Resolution No.

Page 3 ends

SECTION 10. Pursuant to California Streets and Highways Code Section 36525, if at the conclusion of the public hearing, there are of record, valid written protests by the owners of the businesses within the GGTID that will pay fifty percent (50%) or more of the total assessments of the entire GGTID, no assessment will be levied for Fiscal Year 2026-27. In order to determine the projected assessments for purposes of establishing voting percentages, the City shall make projections based on the prior three-year average of gross rental revenues for the applicable visitor accommodation facilities. Since such information is proprietary, the City, alone, will determine the total percentage protest and provide such percentage at the public hearing.

SECTION 11. This Resolution is effective upon its adoption.

Adopted this 24th day of February 2026.
19 AMENDMENT NO.1 TO

GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

ADVISORY BOARD REPORT
Fiscal Year 2025–2026
Prepared in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code § 36500 et seq.)

This Amendment updates the Garden Grove Tourism Improvement District (GGTID) Advisory Board Report for Fiscal Year 2025–2026 to clarify the funding source for transit- related expenditures and to add transit services as an eligible and proposed activity for the fiscal year. All other provisions of the adopted Advisory Board Report remain unchanged.

Budget Clarification and Funding Source Amendment
The FY 2025–2026 GGTID budget is amended to clarify that up to $600,000 may be allocated for transit-related purposes will be from the City-retained portion of GGTID assessment revenues designated for transit or transportation systems.

Pursuant to the GGTID enabling ordinance and the agreement governing the administration and distribution of GGTID assessment revenues, a portion of the assessment is retained by the City for transit or transportation systems that benefit Visitor Accommodation Facilities within the GGTID. This amendment does not increase the total GGTID budget, change assessment rates, or modify the method or basis of levying the assessment. The amendment solely aligns the funding source with the allowable and intended use of transit- designated revenues.

Amendment to Proposed Activities for Fiscal Year 2025-2026 Transit Services
The GGTID improvements and activities to be provided may include transit or transportation services that directly benefit Visitor Accommodation Facilities within the GGTID. Transit services are intended to support tourism, enhance visitor mobility, and improve access to regional destinations.

Transit services may be used to:
• Provide transportation options that reduce reliance on personal vehicles and alleviate congestion along key corridors within and adjacent to the GGTID. • Enhance the visitor experience by improving connectivity between hotels and nearby attractions, destinations, and activity centers.
• Support the long-term economic competitiveness of the Garden Grove Resort District by increasing accessibility, encouraging longer stays, and promoting visitor spending.

In the event that a Visitor Accommodation Facility elects not to participate in the primary GGTID-sponsored transit program, the GGTID may allocate a proportional share of transit- related funds toward alternative transportation services that provide comparable mobility benefits within the District, consistent with the purposes of the District and the Parking and Business Improvement Area Law of 1989. Except as expressly amended herein, all other provisions of the Garden Grove Tourism Improvement District Advisory Board Report for Fiscal Year 2025–2026 remain unchanged and in full force and effect. 20 GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

ADVISORY BOARD REPORT
Fiscal Year 2025–2026
Prepared in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code § 36500 et seq.)

The Garden Grove Tourism Improvement District (GGTID) was established by the Garden Grove City Council in accordance with the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code section 36500 et seq. (referred to as the “Law”), through the adoption of Resolution No. 9009-10 on August 24, 2010, and Ordinance No. 2782 on October 26, 2010.

The purpose of the GGTID is to provide revenue to defray the costs of advertising and marketing efforts designed to increase overnight stays in the GGTID, for construction and for maintenance of improvements in the GGTID. It will also provide other services, activities, and programs that promote and encourage tourism within the GGTID, which will benefit the Operators of Visitor Accommodation Facilities paying assessments through the promotion of scenic, recreational, cultural, and other attractions.

Pursuant to Ordinance No. 2782, the Board of Directors of the Garden Grove Tourism Promotion Corporation, a California non-profit mutual benefit corporation, serves as the GGTID Advisory Board. In accordance with Ordinance No. 2782 and California Streets and Highways Code Section 36533, the Advisory Board is required to annually prepare and submit to the City, a report for the upcoming fiscal year, which is required to contain the following:

1. Any proposed changes in the boundaries of the GGTID or the benefit zones within the GGTID.

2. The GGTID improvements and activities to be provided in the upcoming fiscal year from GGTID assessment revenues and/or any other contributions from sources other than GGTID assessment revenues.

3. An estimate of the cost of providing the GGTID improvements and the activities for the upcoming fiscal year.

4. The method and basis of levying the assessment in sufficient detail to allow each Visitor Accommodation Facility to estimate the amount of the assessment to be levied against the Visitor Accommodation Facility for the fiscal year, and any proposed changes to the method and basis of levying the assessment.

5. The amount of any surplus or deficit revenues to be carried over from the previous fiscal year.

6. The amount of any contributions to the GGTID to be made from sources other than assessments levied against the Visitor Accommodation Facilities.

21 1. CHANGES TO BOUNDARIES AND BENEFIT ZONES
No Changes to Boundaries Proposed
The GGTID boundaries encompass certain real property in Garden Grove generally fronting or near Harbor Boulevard, from the northern boundary of the City to Garden Grove Boulevard. The GGTID includes two (2) benefit zones:
• Tier I: All real property within the GGTID north of Lampson Avenue. • Tier II: All real property within the GGTID south of Lampson Avenue.

A map of the GGTID and its two benefit zones is on file with the Garden Grove City Clerk.

No changes to these boundaries or benefit zones are proposed for Fiscal Year 2025–2026.

2. PROPOSED ACTIVITIES FOR FISCAL YEAR 2025–2026
The GGTID improvements and activities to be provided (funded by GGTID assessment revenues and other possible contributions) include:

1. Development of a New Destination Website
o Creation of a dynamic online platform showcasing Grove District hotel offerings, renovations, dining, entertainment, and transportation. o Designed to convert digital interest into overnight bookings, increase occupancy rates, and drive visitor spending.
o Serves as a centralized hub for marketing campaigns, partnerships, and strategic branding efforts.

2. Foods of Garden Grove LIVE 2025
o Building on the success of the 2024 event, this culinary festival will feature local restaurants, diverse cultural showcases, chef demonstrations, influencer meetups, and interactive tastings.
o Enhanced digital integration with AI-powered promotions and real-time audience engagement.
o Aims to raise regional awareness, support local businesses, and highlight Garden Grove’s vibrant food scene.

3. Maintenance Activities
o Ongoing maintenance of sidewalks, landscaping, bus shelters, and palm tree lighting--particularly along Harbor Boulevard between Chapman Avenue and Garden Grove Boulevard.
o Enhancements intended to maintain a clean, attractive environment that encourages visitor engagement.

22 4. Private Security
o Implementation of private security measures to bolster safety throughout the Grove District.
o Emphasizes improved public perception, visitor confidence, and overall district security.

5. Trade Mission
o Promotion of Garden Grove in emerging domestic and international markets to elevate the City’s profile as a premier tourist destination. o Focuses on increasing visitor arrivals, boosting hotel occupancy, and driving regional economic growth.

6. Garden Grove Chamber of Commerce Tourism Initiatives o Continued strategic partnership with the Garden Grove Chamber of Commerce to bolster marketing and promotional efforts.
o Utilizes Chamber-hosted events, business development programs, and advocacy efforts to expand the GGTID’s visibility.

3. ESTIMATED COSTS OF IMPROVEMENTS AND ACTIVITIES
In accordance with a 2011 agreement between the City of Garden Grove and the Visitors Convention Bureau (VCB), approximately 80% of the net GGTID assessment revenues (2.0% of the total 2.5% assessment in Tier I, and 0.4% of the total 0.5% assessment in Tier II) is allocated to Visit Anaheim for marketing and promotion benefitting Visitor Accommodation Facilities in the “Anaheim Resort District.” For Fiscal Year 2025–2026, the City retains 0.5% of gross room rent charged per occupied room night for transit or transportation systems that benefit the GGTID.

GGTID Budget for FY 2025–2026
The GGTID Budget FY 2025–2026 identifies the following estimated revenues and expenses:

Revenues
• FY 2025–2026 Estimated Revenue: $733,000
• FY 2024–2025 Carry Over: $115,000
• Total FY 2025–2026 Revenue: $848,000

23 GGTID FY 2025–2026 Expenses
Category % of Total Budget (USD)

1. Marketing
A. Website 9.6% $81,408
B. Foods of Garden Grove 3.3% $27,984

2. Tourism Missions 4.0% $33,920

3. Chamber and Sponsorships 6.0% $50,880

4. Private Security 30.0% $254,400

5. Harbor Blvd. Maintenance / Utilities / Repairs 33.0% $279,840

6. Condominium Management Contract 2.1% $17,808

7. City Administrative Fees (Per Agreement) 3.0% $25,440

8. Administrative/Accounting/Auditing (Per Agreement) 4.0% $33,920

9. GGTID Reserve 5.0% $42,400
100% $848,000

4. METHOD AND BASIS FOR LEVYING THE ASSESSMENT
No Changes to Assessment Rate or Method
The annual assessments will remain at:
• Tier I: Two and one-half percent (2.5%) of the gross rent charged by the Operator per room per night.
• Tier II: One-half percent (0.5%) of the gross rent charged by the Operator per room per night.

Assessments continue to be collected monthly, at the same time and in the same manner as the City’s Hotel Visitors Tax, pursuant to Chapter 12 of Title 3 of the Garden Grove Municipal Code.

5. PRIOR YEAR SURPLUS OR DEFICIT
It is estimated that $115,000 in surplus assessment revenues will be carried over from Fiscal Year 2024–2025. These funds will be used to finance GGTID improvements and activities in Fiscal Year 2025–2026 as outlined in the budget above.

24 6. OTHER CONTRIBUTIONS
No additional contributions to the GGTID from outside sources are anticipated for Fiscal Year 2025–2026.
2024–2025 Garden Grove Tourism Improvement District Accomplishments For Fiscal Year 2024–2025, the Garden Grove Tourism Improvement District (GGTID) strategically allocated marketing funds to enhance the Grove District with a focus on promoting tourism, supporting local businesses, and improving community infrastructure.

Below is a breakdown of key initiatives and allocations:

1. Marketing
o $28,413 was allocated for general marketing efforts, including promotional materials, targeted advertising campaigns, and related outreach designed to attract visitors and boost overnight stays.

2. Website
o $28,413 was specifically invested in developing a dedicated Website to showcase the Grove District’s attractions, accommodations, and dining. o In March 2025, the Garden Grove Tourist Promotion Corporation (GGTPC) selected Unbiazed to design and develop this modern, fully responsive Website that follows best practices in tourism marketing and user experience.

3. Foods of Garden Grove LIVE 2024
o $27,984 supported the City’s signature culinary event celebrating local restaurants and diverse cultural experiences.
o Leveraging AI-generated captions and geo-targeted campaigns, the event saw a 250% increase in social media engagement and over 50,000 digital impressions, with 4,000+ attendees.

4. Tourism Missions
o $33,900 was allocated to promote Garden Grove in targeted domestic and international markets. Unused funds from FY 2024–2025 (due to a canceled trade mission) were reallocated to landscaping and security.

5. Chamber and Sponsorships
o $50,088 was dedicated to partnerships with the Garden Grove Chamber of Commerce and other sponsorship initiatives, fostering broader business relationships and regional marketing opportunities.

6. Private Security Enhancement
o $254,400 was funded to enhanced private security within the Grove District, strengthening safety, visitor confidence, and overall commercial vitality.

25 GARDEN GROVE TOURISM IMPROVEMENT DISTRICT

ADVISORY BOARD REPORT
Fiscal Year 2026–2027
Prepared in accordance with the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code § 36500 et seq.)

1. Any proposed changes in the boundaries of the GGTID or the benefit zones within the GGTID.

2. The GGTID improvements and activities to be provided in the upcoming fiscal year from GGTID assessment revenues and/or any other contributions from sources other than GGTID assessment revenues.

3. An estimate of the cost of providing the GGTID improvements and the activities for the upcoming fiscal year.

5. The amount of any surplus or deficit revenues to be carried over from the previous fiscal year.

6. The amount of any contributions to the GGTID to be made from sources other than assessments levied against the Visitor Accommodation Facilities. 26 1. CHANGES TO BOUNDARIES AND BENEFIT ZONES
No Changes to Boundaries Proposed
The GGTID boundaries encompass certain real property in Garden Grove generally fronting or near Harbor Boulevard, from the northern boundary of the City to Garden Grove Boulevard. The GGTID includes two (2) benefit zones:
• Tier I: All real property within the GGTID north of Lampson Avenue. • Tier II: All real property within the GGTID south of Lampson Avenue.

A map of the GGTID and its two benefit zones is on file with the Garden Grove City Clerk.

No changes to these boundaries or benefit zones are proposed for Fiscal Year 2026–2027.

2. PROPOSED ACTIVITIES FOR FISCAL YEAR 2026–2027
The GGTID improvements and activities to be provided (funded by GGTID assessment revenues and other possible contributions) include:

1. Maintenance of Destination Website
o Maintaining a dynamic online platform showcasing Grove District hotel offerings, renovations, dining, entertainment, and transportation. o Designed to convert digital interest into overnight bookings, increase occupancy rates, and drive visitor spending.
o Serves as a centralized hub for marketing campaigns, partnerships, and s
trategic branding efforts.

2. Foods of Garden Grove LIVE 2026
o Building on the success of the 2025 event, this culinary festival will feature local restaurants, diverse cultural showcases, chef demonstrations, influencer meetups, and interactive tastings.
o Enhanced digital integration with AI-powered promotions and real-time audience engagement.
o Aims to raise regional awareness, support local businesses, and highlight Garden Grove’s vibrant food scene.

3. Maintenance Activities
o Ongoing maintenance of sidewalks, landscaping, bus shelters, and palm tree lighting, particularly along Harbor Boulevard between Chapman Avenue and Garden Grove Boulevard.
o Enhancements intended to maintain a clean, attractive environment that e
ncourages visitor engagement.
o Additional streetscape and landscaping enhancements may be supported through other City funding sources or grant programs that benefit the GGTID. 27 4. Private Security
o Implementation of private security measures to bolster safety throughout the Grove District.
o Emphasizes improved public perception, visitor confidence, and overall district se
curity.

7. Transit Services
o Provide visitor-serving transportation options that reduce reliance on personal vehicles and alleviate congestion along key corridors within and adjacent to the GGTID.
o Transit services may be funded through City-retained transit-designated GGTID revenues and other available transportation funding sources, as authorized by the City Council.
o In the event that a Visitor Accommodation Facility elects not to participate in the primary GGTID -sponsored transit program, the GGTID may allocate a proportional share o f transit -related funds toward alternative transportation services that provide comparable mobility benefits within the District, consistent with the purposes of the District and the Parking and Business Improvement Area Law of 1989.

8. Harbor Revitalization
o The City of Garden Grove will pursue grant funding through the U.S. Economic Development Administration (EDA) to enhance streetscape improvements, lighting, and ongoing maintenance along Harbor Boulevard. o Any use of GGTID funds for Harbor Boulevard revitalization or as matching funds for grant programs would be subject to the availability of funds, future C
ity Council approval and consistency with the purposes of the GGTID. o HHarbor revitalization may be funded through City-retained, street-designated GGTID revenues, as authorized by the City Council.

3. ESTIMATED COSTS OF IMPROVEMENTS AND ACTIVITIES
In accordance with a 2011 agreement between the City of Garden Grove and the Visitors Convention Bureau (VCB), approximately 80% of the net GGTID assessment revenues (2.0% of the total 2.5% assessment in Tier I, and 0.4% of the total 0.5% assessment in Tier II) is allocated to Visit Anaheim for marketing and promotion benefitting Visitor 28 Accommodation Facilities in the “Anaheim Resort District.” For Fiscal Year 2026–2027, the City retains 0.5% of gross room rent charged per occupied room night for transit or transportation systems that benefit the GGTID.

GGTID Budget for FY 2026–2027
The GGTID Budget FY 2026–2027 identifies the following estimated revenues, funds and expenses:
$ 747,660
$ 117,300
$ 600,000
• FY 2026–2027 Estimated Revenue:
• FY 2025–2026 Revenue Carry Over:
• Transit Fund:
• Street Fund: $301,964
• Total FY 2026–2027 Budget: $1,766,924
GGTID FY 2026–2027 Expenses
Category % of Total Budget (USD)

1. Ma rketing
A. Website 4.8% $85,000
B. Foods of Garden Grove 1.6% $28,544

2. T
ourism Missions 2.0% $34,598

3. Ch
amber and Sponsorships 2.9% $51,898

4. P
rivate Security 14.7% $259,488

5. Harbor Blvd. Maintenance / Utilities / Repairs 33.1% $585,437

6. C
ondominium Management Contract 1.0% $18,164

7. C
ity Administrative Fees (Per Agreement) 1.5% $25,949

8. Administrative/Accounting/Auditing (Per Agreement) 2.0% $34,598

9. Transit Services 34.0% $600,000

10. GGTID Reserve 2.4% $43,248
100% $1,766,924

4. METHOD AND BASIS FOR LEVYING THE ASSESSMENT
No Changes to Assessment Rate or Method
The annual assessments will remain at:
• Tier I: Two and one-half percent (2.5%) of the gross rent charged by the Operator per room per night.
29 • Tier II: One-half percent (0.5%) of the gross rent charged by the Operator per room per night.

Assessments continue to be collected monthly, at the same time and in the same manner as the City’s Hotel Visitors Tax, pursuant to Chapter 12 of Title 3 of the Garden Grove Municipal Code.

5. PRIOR YEAR SURPLUS OR DEFICIT
It is estimated that $117,300 in surplus assessment revenues will be carried over from Fiscal Year 2025–2026. These funds will be used to finance GGTID improvements and activities in Fiscal Year 2026–2027 as outlined in the budget above.

6. OTHER CONTRIBUTIONS
No additional contributions to the GGTID from outside sources are anticipated for Fiscal Year 2026–2027.

2025–2026 Garden Grove Tourism Improvement District Accomplishments

For Fiscal Year 2025–2026, the Garden Grove Tourism Improvement District (GGTID) strategically allocated marketing funds to enhance the Grove District with a focus on promoting tourism, supporting local businesses, and improving community infrastructure.

Below is a breakdown of key initiatives and allocations:

3. Foods of Garden Grove LIVE 2025
o $27,984 supported the City’s signature culinary event celebrating local restaurants and diverse cultural experiences.
o Leveraging AI-generated captions and geo-targeted campaigns, the event saw a 250% increase in social media engagement and over 50,000 digital impressions, with 4,000+ attendees.

4. Tourism Missions
o $33,900 was allocated to promote Garden Grove in targeted domestic and international markets.

5. Chamber and Sponsorships
o $50,880 was dedicated to partnerships with the Garden Grove Chamber of Commerce and other sponsorship initiatives, fostering broader business relationships and regional marketing opportunities.

6. Private Security Enhancement
o $254,400 was funded to enhance private security within the Grove District, strengthening safety, visitor confidence, and overall commercial vitality.

7. Utilities, Repairs, and Landscaping
o $279,840 was used for infrastructure maintenance, including tree trimming, irrigation upgrades, and streetscape improvements along Harbor Boulevard and Chapman Avenue.
30 Visit Anaheim's Annual Report Garden Grove Tourist Improvement District Since its inception in 2011, the Garden Grove Tourism Improvement District (GGTID) has consistently delivered strong returns for the City’s hotel stakeholders through its partnership with Visit Anaheim, the region’s leading tourism marketing organization. Every single year, with exception of Covid-19 pandemic years, the collaboration has demonstrated measurable value, helping to position Garden Grove hotels as competitive players in the Southern California tourism and convention market.

This strategic alliance has been central to Garden Grove’s emergence as a premier resort destination just steps away from Disneyland and the Anaheim Convention Center. From targeted group sales to national and international campaigns, the results speak for themselves: increased bookings, higher occupancy, elevated room rates, and long-term brand growth.

Hotel Industry Confidence and Continued Support
The continued endorsement and participation of Garden Grove’s hotel operators underscores the sustained confidence in Visit Anaheim’s leadership. Hotel partners report meaningful returns from the joint marketing efforts and have voiced strong support for maintaining and growing this partnership.

Visit Anaheim’s strategic planning, depth in market analytics, and national brand recognition have allowed Garden Grove hotels to extend their reach well beyond what would be possible individually.

This “strength in partnership” approach has enabled the GGTID to be intensely competitive hospitality market.

31 Strategic Budget Visit Anaheim Overview: FY 2026–2027 The GGTID’s FY 2026–2027 budget continues to prioritize high-return programs and data-backed initiatives through our partnership with Visit Anaheim. Below is a breakdown of investment categories aligned with expected outcomes:

GGTID/Visit Anaheim FY 2026–2027 Budget Overview

Category Allocation Description

1. Marketing
Expenses

$681,000
Covers advertising, promotions, collateral production, and associated staffing costs. Supports broad awareness campaigns across key leisure and group segments.

2. Tourism
Development

$238,000
Includes international representation, sales missions, consumer marketing efforts, trade shows, meetings and conferences, travel trade association fees, and other tourism-facing initiatives.

3. Convention Sales

$626,000
Dedicated to attracting meetings and conventions through client events, sales missions, familiarization tours, partnerships, promotional exhibits, and sales travel efforts.

4. Destination
Services

$115,000
Enhances the visitor and event planner experience through dues and registration fees, client servicing tools, promotional materials, and welcome collateral.

5. Business
Intelligence $63,000 Supports data analytics, market research, and staffing to inform pricing strategies, campaign performance, and demand forecasting.

6. Operations &
Administration

$264,000
Covers administrative functions including staffing, general operations, compliance, financial reporting, and overhead necessary for effective program execution.
🔹🔹🔹🔹 Total FY 2026–2027 Budget: $1,987,00
32 Item 56/2026

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: 2/24/2026

Subject: Award a contract to SAVI Construction Inc. for the installation of a concrete pad for the Clean California Medal of Honor Bike and Pedestrian Trail Project, Project No. GT1408000. (Cost: $89,375)(Action Item)

OBJECTIVE

For the City Council to a ward the contract for the Concrete Pad Installation to SAVI Construction Inc. for the Clean California Medal of Honor Bike and Pedestrian Trail (CAMOH) Project, Project No. GT1408000.

BACKGROUND

In February 2024, the City Council adopted a resolution approving participation in the Clean California Local Grant Program (CCLGP) and authorized the appropriation of $441,000 in grant funds. Through this program, the City committed to improving parks and pathways with the goals of reducing litter, enhancing public health, and benefiting underserved communities.

The awarded funds will be used to install new outdoor fitness equipment, litter abatement signage, trail furnishings, trash receptacles, bike racks on four concrete pads, and landscaping/mulch along t he Medal of Honor Bike and Pedestrian Trail. These proposed amenities and enhancements are a direct response to public feedback and reflect community priorities for trail improvements.

In August 2025, the City Council authorized the purchase of outdoor fi tness equipment and site furnishings from Greenfields Outdoor Fitness, Inc. (Greenfields). The existing installation areas consist of dirt paths, which require the construction of concrete pads to ensure the proper and secure installation of the outdoor eq uipment. Following the purchase authorization, staff met with Greenfields to develop the engineering plans and specifications for the required concrete pads.

33 Item 56/2026

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DISCUSSION

In December 2025, two legal notices were published inviting bids for the concrete pad installation for the Clean California Medal of Honor Bike and Pedestrian Trail Project (CAMOH), Project No. GT1408000, Invitation for Bids (IFB) No. EDD -1003. The IFB was formally released on January 8, 2026, and a mandatory bid walk was subsequently c onducted. The bid walk was well attended, with thirteen (13) vendors participating.

On February 12, 2026, a bid opening was held at City Hall. The City received a total of eight (8) proposals. SAVI Construction Inc. was the lowest responsive bidder, with a bid amount of $89,375. SAVI Construction Inc. will self -perform the entire scope of work, and no subcontractors will be utilized for this project.

Staff conducted a due diligence review of SAVI Construction Inc.’s qualifications based on the contractor’s submitted proposal and reference. Staff determined that SAVI Construction Inc. meets the requirements outlined in the IFB and received positive feedback from the contractor’s reference.

SAVI Construction Inc. has fifteen (15) years of experience and has performed multiple public works project for other cities of which concrete construction scope was similar to Project No.

GT1408000.

FINANCIAL IMPACT

Appropriations for the project were approved in Fiscal Year 2023 –24 in the amount of $441,000. The unused portion of the budget has been carried over into the current fiscal year. The contract cost of $89,375 will be funded from the existing project budget in the State Grants Fund (Fund 233).

RECOMMENDATION

It is recommended that the City Council:
 Approve the award of contract to SAVI Construction Inc. for the concrete pad installation for the Clean California Medal of Honor Bike and Pedestrian Trail Project (CAMOH), Project No. GT1408000;
 Authorize the Finance Director to appropriate $ 89,375.00, to SAVI Construction Inc. for a concrete pad installation for the Clean California Medal of Honor Bike and Pedestrian Trail (CAMOH) Project, Project No. GT1408000 (GL: 233-715-1280, JL: 1408000);and
 Authorize the City Manager, or designee(s), to execute the agreement and any amendments, and make minor modifications as appropriate thereto on behalf of the City.

By: Christy Le, Administrative Analyst

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ATTACHMENT(S)

1. Bid Results

2. Final Plan and Specs

3. IFB No. EDD-1003

4. Agreement with Savi Construction, Inc.

35 36
37 February 24, 2026

SAVI CONSTRUCTION INC.

ATTN: Ramesh Bachuvala
6725 Birmingham Dr,
Chino, CA 91710

RE: AWARD LETTER TO SAVI CONSTRUCTION INC. FOR THE INVITATION

FOR BIDS (IFB) FOR THE CONCRETE PADS INSTALLATION FOR THE

CLEAN CALIFORNIA MEDAL OF HONOR TRAIL PROJECT (CAMOH),
PROJECT NO. GT1408000.

Dear Mr. Bachuvala:

SAVI CONSTRUCTION INC. has been selected as the contractor for the award of contract for the Concrete Pads Installation for the Clean California Medal Of Honor Trail Project (CAMOH), Project No. GT1408000.

Please prepare to provide the following:

1. Required Certificate of Insurance and all endorsements with the amount accordance to that of stated in the agreement, along with a waiver of subrogation for each of the following policy:
a. Workers’ Compensation
b. Employers’ Liability
c. Commercial General Liability
d. Automobile Liability

2. Construction Agreement (to follow)

Thank you for participating in the City’s IFB process. We look forward to working with you. If you have any questions, please contact [email protected], copying [email protected].

Christy Le
Administrative Analyst
Department of Community and Economic Development

38 1

CONSTRUCTION AGREEMENT

CALTRANS FENCING IMPROVEMENT PROJECT
PROJECT NO. GT1408000

THIS AGREEMENT is made this 24th day of February, 2026, by the CITY OF GARDEN GROVE (“CITY”), and SAVI CONSTRUCTION INC., hereinafter referred to as (“CONTRACTOR”) RECITALS:

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to City of Garden Grove Council Authorization dated February 24, 2026.

2. CITY desires to utilize the services of CONTRACTOR to furnish material, equipment, and labor for the SAVI CONSTRUCTION INC.; PROJECT NO. GT1408000, consisting of excavation and concrete pad installation for the Clean California Medal of Honor Trail (CAMOH).

3. CONTRACTOR is qualified by virtue of experience, training, education, and expertise to accomplish services.

AGREEMENT
THE PARTIES MUTUALLY AGREE AS FOLLOWS:

5.1 General Conditions. CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of CITY. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents including the Notice Inviting Bids, Special Instructions to Bidders, if any, Plans, Specifications and CONTRACTOR's Proposal, are incorporated in this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the work covered by this Contract.

"Project" as used herein defines the entire scope of the work covered by all the Cont ract 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 Economic Development Director, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the Director shall be final.
39 2

5.2 Materials and Labor. CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by the CITY, to construct and complete the project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, CITY may settle such claims by making demand upon the surety to this Agreement. In the event of the failure or refusal of the surety to satisfy said claims, CITY may settle them directly and deduct the amount of payments from the Contract price and any amounts due to CONTRACTOR. In the event CITY receives a stop notice from any laborer or material supplier alleging non-payment by CONTRACTOR, CITY shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees.

5.3 P
roject . The PROJECT is described as: CLEAN CALIFORNIA MEDAL OF HONOR TRAIL; PROJECT NO. GT1408000.

5.4 P lans and Specifications. The work to be done is shown in a set of detailed Plans and Specifications entitled: CLEAN CALIFORNIA MEDAL OF HONOR TRAIL ; PROJECT NO.

GT1408000.

Said Plans and Specifications and any revision, amendments or addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. The work to be done must also be in accordance with the General Provisions, Standard Specifications and Standard Plans of CalTrans, which are also incorporated herein and referred to by, reference.

5.5 Time of Commencement and Completion. CONTRACTOR shall have ten (10) calendar days after the Notice to Proceed is issued to execute the Contract and supply CITY with all of the documents and information required by the Contract Documents, including but not limited to, the necessary bonds and insurance certificates and endorsements. Once the CITY receives the executed Contract and all of the other properly drafted and executed documents and information, it may issue a Notice to Proceed to the CONTRACTOR. If CONTRACTOR refuses or fails to execute the Contract or refuses or fails to provide the required documents and information within the ten (10) calendar days, the CITY may then rescind the award of the Contract.

Upon receipt of the Notice to Proceed, CONTRACTOR agrees to submit shop dr awings and
proof of payment for materials from supplier within ten (10) calendar days. Further, upon receipt of the Notice to Proceed the CONTRACTOR shall diligently prosecute the work to completion within forty (40) total working days excluding delays caused or authorized by the CITY as set forth in Sections 5.7, 5.8 and 5.9 hereof.

5.6 Ti me is of the Essence. Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR'S work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the work covered by this Contract with that of all other contractors and subcontractors 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 40 3
CITY; failure of CITY to make timely payments to CONTRACTOR; late delivery of materials required by this CONTRACT to be furnished by CITY; combined action of the workers in no way caused by or resulting from default or collusion on the part of CONTRACTOR; a lockout by CITY; or any other delays unforeseen by CONTRACTOR and beyond CONTRACTOR's reasonable control.

CITY shall extend the time fixed in Section 5.5 herein for completion of the Project by the number of days CONTRACTOR has thus been delayed, provided that CONTRACTOR presents a written request to CITY for such time extension within fifteen (15) days of the commencement of such delay and CITY finds that the delay is justified. CITY 'S decision will be conclusive on the parties to this Contract. Failure to file such request within the time allowed shall be deemed a waiver of the claim by CONTRACTOR.

No claims by CONTRACTOR for additional compensation or damages for delays will be allowed unless CONTRACTOR satisfies CITY that such delays were unavoidable and not the result of any action or inaction of CONTRACTOR and that CONTRACTOR took all available measures to mitigate such damages. Extensions of time and extra compensation as a result of incurring undisclosed utilities would be determined in accordance with SPECIAL PROVISIONS and Section 3-3 of the Standard Specifications for Public Works Construction 2009 Edition (GREEN BOOK). The CITY’S decision will be conclusive on all parties to this Contract.

5.8 Extra Work. The Contract price includes compensation for all work performed by CONTRACTOR, unless CONTRACTOR obtains a written change order signed by a designated representative of CITY specifying the exact nature of the extra work and the amount of extra compensation to be paid all as more particularly set forth in Section 5.9 hereof.

CITY shall extend the time fixed in Section 5.5 for completion of the Project by the number of days reasonably required for CONTRACTOR to perform the extra work, as determined by CITY’S Engineer. The decision of the Engineer shall be final.

5.9 Changes in Project.

5.9.1 CITY may at any time, without notice to any surety, by written order designated or indicated to be a change order, make any change in the work within the general scope of the Contract, including but not limited to changes:
a. In the Specifications (including drawings and designs); b. In the time, method or manner of performance of the work; c. In the CITY -furnished facilities, equipment, materials, services or site; or d. Directing acceleration in the performance of the work.

If CONTRACTOR believes that the written order issued as part of this Section 5.9.1 has caused an increase in costs or time, the CONTRACTOR shall submit a written request for equitable adjustment to the CITY that includes a detailed cost breakdown and time impact analysis in sufficient detail to allow the CITY to analyze the request. Said notice shall be submitted via certified mail within twenty (20) days of the CONTRACTOR’S receipt of the written order. CONTRACTOR’s failure to submit the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of any potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’S request and 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 41 4
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 submit the notice, which includes the written request for equitable adjustment within the required twenty (20) days shall constitute a waiver of ant potential change order or claim for said alleged change. The CITY shall review CONTRACTOR’ s request and shall provide a written response within thirty (30) days of receipt of the request either approving or denying the request.

5.9.3 Except as provided in this Section 5.9, no order, statement or conduct of the CITY or its representatives shall be treated as a change under this Section 5.9 or entitle CONTRACTOR to an equitable adjustment.

5.9.4 Except for claims based on defective specifications, no claim for any change under paragraph 5.9.1 or 5.9.2 above shall be allowed for any work performed more than 20 days before the CONTRACTOR gives written notice as required in paragraphs 5.9.1 and 5.9.2. In the case of defective specifications for which the CITY is responsible, the equitable adjustment shall include any increased direct cost CONTRACTOR reasonably incurred in attempting to comply with those defective specifications.

5.9.5 If CONTRACTOR intends to assert a claim for an equitable adjustment under this Section 5.9, it must, within thirty (30) days after receipt of a denial of a request for equitable adjustment under paragraphs 5.9.1 and 5.9.2, submit a written statement to the CITY setting forth the general nature and monetary extent of such claim. The CITY may extend the 30-day period. CONTRACTOR’s failure to submit the notice of a claim, within the required thirty (30) days shall constitute a waiver of the claim by the CONTRACTOR.

5.9.6 No claim by CONTRACTOR for an equitable adjustment shall be allowed if made after final payment under this Agreement.

5.9.7 CONTRACTOR hereby agrees to make any and all changes, furnish the materials and perform the work that CITY may require without nullifying this Contract. CONTRACTOR shall adhere strictly to the Plans and Specifications unless a change therefrom is authorized in writing by the CITY. Under no condition shall CONTRACTOR make any changes to the Project, either in additions or deductions, without the written order of the CITY and the CITY shall not pay for any extra charges made by CONTRACTOR that have not been agreed upon in advance in writing by the CITY. Any markups shall not exceed a maximum amount of five (5) percent. 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 for disputed work 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 therefore agree that CONTRACTOR will pay to CITY the sum of Three Thousand Six Hundred dollars ($3,600.00) per day for each and every calendar day during which completion of the Project is so delayed. CONTRACTOR agrees to pay such liquidated 42 5
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 Eighty Nine Thousand Three Hundred Seventy Five Dollars and 00/100 cents ($89,375.00) as itemized in the Contract Documents.

Progress payments shall be made to the CONTRACTOR on a monthly basis for each successive month as the work progresses. The CONTRACTOR shall be paid such sum as will bring the total payments received since the commencement of the work up to ninety-five percent (95%) of the value of the work completed, less all previous payments, provided that the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule. The CITY will retain five percent (5%) of the amount of each such progress estimate and material cost until 35 days after the recordation of the Notice of Completion.

Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the CITY’S Engineer, stating that the work for which payment is demanded has been performed in accordance with the terms of the Contract. Partial payments of the Contract price shall not be considered as an acceptance of any part of the work.

5.12 Substitution of Securities in Lieu of Retention of Funds. Pursuant to Public Contract Code § 22300, the CONTRACTOR will be entitled to post approved securities with the CITY or an approved financial institution in order to have the CITY release funds retained by the CITY to ensure performance of the Contract. CONTRACTOR shall be required to execute an addendum to this Contract together with escrow instructions and any other documents in order to effect this substitution.

5.13 Completion. Within 10 days after the contract completion date of the Project , CONTRACTOR shall file with the CITY’s Economic Development Director its affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the Project have been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be set forth in an affidavit covering disputed claims, or items in connection with Stop Notices which have been filed under the provisions of the statutes of the State of California. CITY may require affidavits or certificates of payment and/or releases from any SUBCONTRACTOR, laborer or material supplier.

5.14 CONTRACTOR's Employees Compensation

5.14.1 General Prevailing Rate. CITY has ascertained that State prevailing wage requirements of the California Labor Code including Sections 1770, 1771.5, 1773, 1777.5, and 1776 are required to execute this Contract. If there is a difference between the minimum wage rates predetermined by the Secretary of Labor and the general prevailing wage rates determined by the Director of the California Department of Industrial Relations for similar classifications of labor, the CONTRACTOR and the subcontractors shall pay not less than the higher wage rate. The CITY will not accept the lower State wage rates. This includes “helper” (or other classifications based on hours of experience) or any other classification. A copy of the prevailing rate of per diem wages shall be posted at the job site.

5.14.2 Forfeiture for Violation. CONTRACTOR shall, as a penalty to the CITY, forfeit one hundred dollars ($100.00) for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any SUBCONTRACTOR under it) less than the 43 6
greater of State minimum wage rate associated with the duties of the employee in question, in accordance with the State prevailing wage requirements of the California Labor Code, including Sections 1770, 1771.5, 1773, 1777.5, and 1776.

5.14.3 Apprentices. The greater of Section 1777.5, 1777.6 and 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices is applicable to this Contract and the CONTRACTOR shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty (20) working days, or more; or if contracts of specialty CONTRACTORs not bidding for work through the general or prime CONTRACTOR are two thousand dollars ($2,000.00) or more for five (5) working days or more.

5.14.4 Workday. In the performance of this Contract, not more than eight (8) hours shall constitute a day's work, and CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (5.14.2) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Sections 1810 et seq.) of the Labor Code of the State of California, and shall forfeit to the CITY as a penalty, the sum of twenty -five Dollars ($25.00) for each worker employed in the execution of this Contract by CONTRACTOR or any SUBCONTRACTOR for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project.

5.14.5 Record of Wages: Inspection. CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual State prevailing wage paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Project and agrees to require that each of its subcontractors does the same. The applicable CONTRACTOR or subcontractor or its agent having authority over such matters shall certify all payroll records as accurate.

CONTRACTOR further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. CONTRACTOR shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). The CONTRACTOR shall submit copies of certified payroll reports and cancelled checks for laborers, every week to the CITY. Certified payroll and cancelled checks submittals are due one month after start of construction and every week thereafter. If the certified payroll and cancelled checks are not submitted, the CONTRACTOR will be notified that compliance is required within five (5) working days or contract work must cease. The CITY will not be responsible for any delay or acceleration charges or any incurred costs or damages as a result of the work stoppage due to CONTRACTOR’s failure to comply.

Work shall be ceased in an orderly, safe fashion. 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 44 7
1725.5. This Agreement shall not be effective until CONTRACTOR provides proof of registration to the CITY.

5.14.7 Posting of Job Site Notices. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner pursuant to Title 8, California Code of Regulations Section 16461(e) or other regulation promulgated pursuant to Labor Code Section 1771.4(a)(2).

5.14.8 Notice of DIR Compliance Monitoring and Enforcement. Pursuant to Labor Code Section 1771.4, this Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

5.15 Surety Bonds. CONTRACTOR shall, upon entering into performance of this Agreement, furnish bonds in the amount of one hundred percent (100%) of the Contract price bid, to guarantee the faithful performance of the work, and the other in the amount of one hundred percent (100%) of the Contract price bid to guarantee payment of all claims for labor and materials furnished. This Contract shall not become effective until such bonds are supplied to and approved by the CITY.

5.16 Insurance.

5.16.1 CONTRACTOR is also aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or undertake self-insurance in accordance with the provisions of that Code, and will comply with such provisions before commencing the performance of the work of this Contract.

5.16.2 CONTRACTOR and all SUBCONTRACTORs shall carry workers' compensat ion insurance for the protection of its employees during the progress of the work. The insurer shall waive its rights of subrogation against the CITY, its Officers, Official s, 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, as determined by the City and shall issue an insurance certificate and waiver of subrogation to the policy evidencing same.

5.16.3 CONTRACTOR shall at all times carr y, on all operations hereunder, bodily injury, including death, and property damage liability insurance, including automotive operations bodily injury and property damage coverage; and builders' all risk insurance.

Follows Form excess liability insurance shall be provided for any underlying policy that does not meet the policy limits required by this contract. All insurance coverage shall be in amounts specified by the CITY in the Insurance Requirements and shall be evidenced by the issuance of a certificate and additional insured endorsement in forms prescribed by the CITY and shall be underwritten by insurance companies satisfactory to the CITY for all operations, subcontract work, contractual obligations, product or completed operations, all owned vehicles and non-owned vehicles. Claims made and modified occurrence policies shall not be accepted. Said insurance coverage obtained by the CONTRACTOR, excepting workers' compensation coverage, shall name the CITY, its Officers, Officials, Agents, Employees, E ngineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY, as additional insured on said policies. Additional insured status shall be evidenced in the form of an Additional insured Endorsement (CG 20 10 1185).

For any claims related to this Project, the Contractor’s insurance coverage shall be primary insurance as respects the CITY, its Officers, Officials, Agents, Employees, 45 8
Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents, and Employees, as determined by the CITY. Any insurance or self-insurance maintained by the CITY, its Officers, Officials, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents, and Employees, as determined by the CITY shall be excess of the CONTRACTOR’s insurance and not contribute with it.

5.16.4 Before CONTRACTOR performs any work at, or prepares or delivers materials to, the site of construction, CONTRACTOR shall furnish:

COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been received and approved by CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify CITY of any material change, cancellation, or termination at least thirty (30) days in advance. Contractor shall also provide a waiver of subrogaton for each policy.

INSURANCE AMOUNTS . CONTRACTOR shall maintain all of the foregoing insurance coverage in force until the work under this Contract is fully completed. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of CITY by CONTRACTOR under Section 5.17 of this Contract.

Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, the following insurance in amounts not less than the amounts specified and issued by a company admitted and licensed in California and having a Best's Guide Rating of A-Class VII or better (Claims made and modified occurrence policies are not acceptable):

Workers’ Compensation As required by the State of California.

Employer’s Liability $1,000,000 per accident for bodily injury or disease.

Commercial General Liability (including
operations, products and completed
operations, and not excluding XCU)
$5,000,000 per o ccurrence for bodily
injury, personal injury and property
damage. Coverage shall include mobile
equipment.

Automobile Liability, including
non-owned and hired vehicles
$2,000,000 combined single limit for bodily
injury and property damage.

Contractors’ Pollution Legal Liability $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

Excess liability, follows form coverage, shall be provided for any underlying policy that does not meet the policy limits required and set forth herein. In surance companies must be acceptable to CITY and have a Best’s Guide Rating of A-, Class VII or better, as approved by CITY.

An Additional Insured Endorsement, ongoing and products-completed operations, and including mobile equipment, for the Commercial General Liability policy shall designate CITY, its Officers, Officials, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY as additional insureds for liability arising out of work or operations performed by or on behalf of the 46 9
CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to City’s requirements, as approved by the CITY.

An Additional Insured Endorsement for Automobile Liability policy shall designate CITY, its Officers, Officials, Agents, Employees, Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY as additional insureds for automobiles owned, leased, hired, or borrowed by the CONTRACTOR.

CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to City’s requirements, as approved by CITY.

An Additional Insured Endorsement for Contractors’ Pollution Legal Liability policy shall designate CITY, its Officers, Officials, 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, as determined by the CITY as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to City’s requirements, as approved by the CITY.

In the event any of CONTRACTOR’S underlying policies do not meet policy limits within the insurance requirements, CONTRACTOR shall provide coverage under an excess liability policy. The policy must be a follows form excess/umbrella policy.

CONTRACTOR shall provide the schedule of underlying polices for an excess/umbrella liability policy, state that the excess/umbrella policy follows form on the insurance certificate, and provide an additional insured endorsement for the excess/umbrella liability policy designating CITY, its Officers, Officials, Agents, Employees, Engineers, Volunteers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their Directors, Officers, Agents and Employees, as determined by the CITY as additional insureds.

A primary/non-contributory endorsement shall be provided to CITY for each policy.

For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, agents, employees, and consultant for this Contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees as determined by CITY. Any insurance or self -insurance maintained by CITY, its officers, officials, agents, employees, and consultants for this Contract and all public agencies from whom permits will be obtained and their directors, officers, agents, and employees, as determined by CITY shall be excess of the CONTRACTOR’s insurance and shall not contribute with it. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

CITY or its representatives shall at all times have the right to inspect and receive the original or a certified copy of all said policies of insurance, including certificates.

CONTRACTOR shall pay the premiums on the insurance hereinabove required.

If CONTRACTOR maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher insurance limits otherwise maintained by the CONTRACTOR

5.17 Risk and Indemnification. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone.

CONTRACTOR agrees to save, indemnify and keep the CITY, its Officers, Agents, Employees, 47 10
Engineers, and Consultants for this Contract, and all public agencies from whom permits will be obtained and their directors, Officers, Agents and Employees harmless against any and all liability, claims, judgments, costs and demands, including demands arising from injuries or death of persons (CONTRACTOR's employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigation arising through the active negligence or willful misconduct of CITY and will make good to reimburse CITY for any expenditures, including reasonable attorneys' fees CITY may incur by reason of such matters, and if requested by CITY, will defend any such suits at the sole cost and expense of CONTRACTOR.

5.18 Termination.

5.18.1 This Contract may be terminated in whole or in part in writing by the CITY for its convenience, provided that the CONTRACTOR is given (1) not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent to terminate, and (2) an opportunity for consultation with the terminating party prior to termination.

5.18.2 If termination for default or convenience is effected by the CITY , an equitable adjustment in the price provided for in this Contract shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due to the CONTRACTOR at the time of termination may be adjusted to cover any additional costs to the CITY because of the CONTRACTOR's default.

5.18.3 Upon receipt of a termination action under paragraph (5.18.1) or (5.18.2) above, the CONTRACTOR shall (1) promptly discontinue all affected work (unless the notice directs otherwise), and (2) deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by the CONTRACTOR in performing this Contract whether completed or in process.

5.18.4 Upon termination under paragraphs (5.18.1) and (5.18.2) above, the CITY may take over the work and may award another party an agreement to complete the work under this Contract.

5.19 Warranty. The CONTRACTOR agrees to perform all work under this Contract in accordance with the CalTrans’ designs, drawings and specifications.

The CONTRACTOR guarantees for a period of one (1) year from the date of the notice of completion of the work that the completed work is free from all defects due to faulty materials, equipment or workmanship and that he shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs or any damage to other parts of the system resulting from such defects. The CITY shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, the CITY may do so and charge the CONTRACTOR the cost incurred. The performance bond shall remain in full force and effect through the guarantee period.

The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances of this Contract or state law and in no way diminish any other rights that the CITY may have against the CONTRACTOR for faulty materials, equipment or work.

5.20 Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Contract, each shall bear its own attorneys' fees, costs and necessary disbursements. 48 11
Notwithstanding the foregoing, if any action is brought against the CONTRACTOR or any subcontractor to enforce a Stop Notice or Notice to Withhold, which named the CITY as a party to said action, the CIT Y 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 SAVI CONSTRUCTION INC
Economic Development and Housing Department ATTN: Ramesh Bachuvala Attention: Christy Le 6725 Birmingham Dr,
11222 Acacia Prkwy. Chino, CA 91710
Garden Grove, CA 92840 Email: [email protected] (714) 741-5206 Phone: 805-889-3547

SIGNATURE ON NEXT PAGE
49 12
IN WITNESS THEREOF, these parties have executed this Construction Agreement on the day and year shown below.

"CITY"

CITY OF GARDEN GROVE

Date:____________________________ By:

Lisa L. Kim
City Manager

ATTEST:

City Clerk

Date:
"CONTRACTOR"

SAVI CONSTRUCTION INC.

CONTRACTOR'S State License No.
(Expiration Date: )

By:

Title:

Date:

APPROVED AS TO FORM:

______________________________
City of Garden Grove
City Attorney
If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.

Date:___________________________

50 13

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:

Li cense No.:

Address:

Telephone No.:

That the following clause must be completed if, in fact, a non-resident agent for the Surety is a party to the transaction:

Name of non-resident agent:

Non-resident agent's office address:

Telephone No.:

THE CONDITION OF THIS OBLIGATION IS SUCH, that:

1. The Principal has agreed entered into a contract attached hereto, dated the day of , 20___, with THE CITY OF GARDEN GROVE for CALTRANS FENCING IMPROVEMENT PROJECT; PROJECT NO. 1222000046/EA#0T410

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. 51 14
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

[ATTACH NOTARY ACKNOWLEDGMENT]
52 15

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.

T hat 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:

Li cense No.:

Address:

Telephone No.:

That the following clause must be completed if, in fact, a non-resident agent for the Surety is a party to the transaction:

Name of non-resident agent:

Non-resident agent's office address:

Telephone No.:

THE CONDITION OF THIS OBLIGATION IS SUCH, that:

1. The Principal has entered into a contract attached hereto, dated day of ________________, 20___, with the CITY OF GARDEN GROVE for CALTRANS FENCING IMPROVEMENT PROJECT; PROJECT NO. 1222000046/EA#0T410

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 performanc e 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 ti me, alteration, or modification of the contract documents, or of work to be performed. 53 16
LABOR AND MATERIAL BOND (Continued)

4. This bond shall inure to the benefit of any and all persons, companies, and corporations entitled to the claims under Civil Code 3181 et seq., so as to give a right of action to them or their assignees in any suit brought upon this bond.

Executed this day of , 20 .

Principal Principal

By:

Surety

By:

Attorney-in-Fact

California Resident Agent

By:

Non-resident Agent - Attorney-in-Fact

[ATTACH NOTARY ACKNOWLEDGMENT]
[
54 17

ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into by and between whose address is ,
hereinafter called "Owner", ,
whose address is ,
hereinafter called "CONTRACTOR", ,
and , whose address
is ,
hereinafter called "escrow agent."
For the consideration hereinafter set forth, the Owner, CONTRACTOR, and escrow agent agree as follows:
(1) Pursuant to Section 22300 of the Public Contract Code of the State of California, the CONTRACTOR has the option to deposit securities with the escrow agent as a substitute for retention earnings required to be withheld by the Owner pursuant to the construction contract entered into between the Owner and CONTRACTOR for in the amount of dated (hereafter referred to as the "contract"). Alternatively, on written request of the CONTRACTOR, the Owner shall make payments of the retention earnings directly to the escrow agent.

When the CONTRACTOR deposits the securities as a substitute for the contract earnings, the escrow agent shall notify the Owner within ten days of the deposit. The market value of the securities at the time of the substitution shall be at least equal to the cash amount then required to be withheld as retention under the terms of the contract between the Owner and CONTRACTOR. Securities shall be held in the name of the ________________, and shall designate the CONTRACTOR as the beneficial owner.
(2) The Owner shall make progress payments to the CONTRACTOR for those funds which otherwise would be withheld from progress payments pursuant to the contract provision, provided that the escrow agent holds securities in the form and amount specified above. (3) When the Owner makes payment of retentions earned directly to the escrow agent, the escrow agent shall hold them for the benefit of the CONTRACTOR until such time as the escrow created under this contract is terminated. The CONTRACTOR may direct the investment of the payments into securities. All terms and conditions of this agreement and the rights and responsibilities of the parties shall be equally applicable and binding when the Owner pays the escrow agent directly. (4) The CONTRACTOR shall be responsible for paying all fees for the expenses incurred by the escrow agent in administering the escrow account. These expenses and payment terms shall be determined by the CONTRACTOR and escrow agent.
(5) The interest earned on the securities or the money market accounts held in escrow and all interest on the interest shall be the sole account of CONTRACTOR and shall be subject to withdrawal by CONTRACTOR at any time and from time to time without notice to the Owner. (6) The CONTRACTOR shall have the right to withdraw all or any part of the principal in the escrow account only by written notice to the escrow agent accompanied by written authorization from the Owner to the escrow agent that the Owner consents to the withdrawal of the amount sought to be withdrawn by CONTRACTOR.
(7) The Owner shall have a right to draw upon the securities in the event of default by the CONTRACTOR. Upon seven days' written notice to the escrow agent from the Owner of the default, the escrow agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the Owner.
55 18
(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 C ONTRACTOR 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 r ely 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:

Title Title

Name Name

Signature Signature

Address Address

56 19
On behalf of the escrow agent:

Title Title

Name Name

Signature Signature

Address Address

At the time the escrow account is opened, the Owner and CONTRACTOR shall deliver to the escrow agent a fully executed counterpart of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on the date first set forth above.

Owner/CONTRACTOR Date:

Title/Title

Approved as to Form
City of Garden Grove
City Attorney

57 SECTION 6 – GENERAL CONDITIONS (Continued)

20 SECTION 6 - GENERAL CONDITIONS

1. GENERAL DESCRIPTION
The work shall consist of furnishing all material and equipment and performing all labor required to carry out the general intention in accordance with the Plans and Specifications.

2. DEFINITIONS
State: Shall mean the State of California or the City of Garden Grove as applicable.

Board or City Council: Shall mean the governing body of the City of Garden Grove.

City : Shall mean the City of Garden Grove.

Director: Shall mean the City’s Director of Economic Development or his/her authorized agent.

3. LOCATION
The work shall be constructed on land owned or controlled by CalTrans at the sites shown on the plans.

4. PERFORMANCE BOND
Refer to Construction Agreement.

5. RETENTION
Refer to Construction Agreement.

6. BEGINNING OF WORK
Refer to Construction Agreement.

7. TIME FOR COMPLETION
Refer to Construction Agreement

8. LIQUIDATED DAMAGES
Refer to Construction Agreement.

9. STANDARD SPECIFICATIONS AND STANDARD PLANS
"Standard Specifications" referred to herein shall be the STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION (latest) EDITION (GREEN BOOK), including all supplements. Copies of the Standard Specifications are available from the publisher:
https://www.bnibooks.com/
"Standard Plans" referred to herein shall be those of the City of Garden Grove and/or CalTrans, latest revision unless noted otherwise.

Where the Plans and Specifications describe portions of the work in general terms, but not in complete detail, it is understood that the item is to be furnished and installed complete and in place and that only the best general practice is to prevail and that only materials and workmanship of the first quality are to be used. Unless otherwise specified, the 58 SECTION 6 – GENERAL CONDITIONS (Continued)

21 CONTRACTOR shall furnish all labor, materials, tools, equipment and incidentals, and do all the work involved in executing the contract.

10. MATERIALS
Materials shall be new and comply with these specifications. Certified reports of material 's inspections of materials required under this contract as specified herein shall be submitted and may be accepted by the Director in lieu of actual chemical or physical tests in the field. Where a reasonable doubt exists in the mind of the Director, however, he shall conduct all necessary tests to determine that the material in question meets the requirements of the specifications.

The cost of making such tests shall be borne by the City of Garden Grove when the results indicate compliance with the specifications; otherwise, the expense of such tests shall be borne by the CONTRACTOR.

11. LICENSES, PERMITS, REGULATIONS AND ORDINANCES
At its sole cost and expense, CONTRACTOR and all subcontractors shall obtain such licenses, permits, and approvals as may be required by law for the performance of the services required by this agreement. CONTRACTOR and all subcontractors shall have the sole obligation to pay for any fees, assessments, county inspections, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the performance of the services required by this contract. The CONTRACTOR and any subcontractor shall have the proper state licenses for the work to be performed along with obtaining city and/or county business license(s) prior to commencement of their work.

CONTRACTOR shall secure City of Garden Grove business license and other required licenses and permits prior to working in the City of Garden Grove. CONTRACTOR shall add the City of Garden Grove, as additional insureds on the required liability insurance and to provide a copy of insurance to the City Garden Grove.

The CONTRACTOR and all subcontractors shall comply with all laws, ordinances, rules and regulations bearing on the conduct of the work. Any work performed, or materials or equipment furnished, which does not conform to said laws, ordinances, rules and regulations, shall be changed to conform thereto by the CONTRACTOR at his sole expense.

12. WORK OUTSIDE REGULAR HOURS
No work will be allowed outside regular working hours without the express permission of the Director, except work items relating to maintenance and cleanup of the work area for the purpose of public safety and convenience. In the event work outside regular hours is allowed, any extra expense incurred by the CONTRACTOR shall be considered as being included in his bid prices and no extra compensation will be due for such work.

The legal workday shall consist of eight (8) hours. Should CONTRACTOR receive permission from the Director to work overtime, the CONTRACTOR shall pay all inspection costs as a result of the CONTRACTOR’s overtime work at a rate of $120.00/hr.

Working hours in the City of Garden Grove shall be from 8:00 am to 4:30 pm Monday through Friday. Workdays shall be restricted to Monday through Friday unless written request outlining substantial reasons for working on Saturdays, Sundays or contractual holidays is submitted to the Director a minimum of forty -eight (48) hours in advance of the proposed non-contractual working day(s). If the work proposed is determined by the Director as being in the best interest of the CITY, the necessary inspection and survey services will be provided. 59 SECTION 6 – GENERAL CONDITIONS (Continued)

22 If the reasons for such request are not deemed sufficient, the Director may authorize inspection and survey services, if available. Such services shall be billed against the CONTRACTOR at the time and one- half salary rate plus fringe benefits for the personnel assigned to the project. Such services shall be paid to the nearest half-hour worked, subject to a minimum working period of two (2) hours.

Emergency repairs and pre-storm protective installations may be performed in project areas without written notice.

13. PRECONSTRUCTION CONFERENCE
The CONTRACTOR, along with his field representative(s) and all subcontractors, shall meet with representatives of the CITY before the start of construction. The CONTRACTOR will be notified regarding the exact time and place of the conference.

The CONTRACTOR shall submit a list of material suppliers to the Director at the Preconstruction Conference. He shall also designate an employee to be responsible for traffic control on this project other than the Project Superintendent. This employee shall have expertise in urban traffic control, and shall be at the site during all operations requiring traffic control. As part of his responsibilities, he shall personally inspect the traffic control devices in use at least twice per day during operations, and twice per day on days when traffic control remains in effect when no work is in progress.

A project construction schedule shall be submitted to the Director at the Preconstruction Conference.

A rate schedule shall be submitted to the Director at the Preconstruction Conference.

14. QUANTITIES OF WORK
The quantities of work shown in the Proposal are approximate only and constitute the Director's Estimate for this project. The CITY does not expressly or by implication agree that the actual amounts of work will correspond exactly with the Director's Estimate.

The CITY reserves the right to increase or decrease the amount of any class or portion of the work as may be deemed necessary or expedient by the Director.

15. LEGAL RELATIONS AND RESPONSIBILITY
Attention is directed to the provisions and penalties applicable to workmen permitted to labor more than eight hours in a calendar day, to labor discrimination, and to employment of alien labor.

16. PROSECUTION OF WORK
The CONTRACTOR shall conduct the work in such a manner and with sufficient materials, equipment, and in the time limits set forth in the Specifications and/or Agreement. Should the CONTRACTOR discontinue the prosecution of the work for any reason with the consent of the Director, he shall notify the Director at least twenty -four hours in advance of resuming construction activities.

17. EXAMINATION OF PREMISES
CONTRACTORs are required to visit the site before submitting proposals so as to satisfy themselves as to existing conditions immediately surrounding the place of work. No extra payment will be allowed by the CITY for failure to properly assess site-working conditions. 60 SECTION 6 – GENERAL CONDITIONS (Continued)

23 18. TERMS OF CONSTRUCTION AS USED IN THESE SPECIFICATIONS The present tense includes the past and future tenses; and the future the present.

The masculine gender includes the feminine and the neuter.

The singular number includes the plural; and the plural the singular. "Shall" is mandatory and "may" is permissive.

19. RECORD DRAWINGS
The CONTRACTOR shall keep a complete set of Record Drawings at the job site. Contract Drawings shall be legibly marked showing each actual item of record construction including:

A. Measured depths of elements in relation to fixed datum points.

B. Measured horizontal and vertical locations of underground utilities with reference to permanent surface improvements.

C. Field changes of dimensions, locations and/or materials with details as required to clearly delineate the modifications.

D. Any details not in the original Contract Drawings developed by the CITY or the CONTRACTOR through the course of construction necessary to clarify or modify the Contract Drawings.

CONTRACTOR shall submit "As -Built" prints to the Director prior to the CITY’S acceptance of the work, one copy in pdf format and one hard copy. The prints shall indicate in red all deviations from Project Plans. Failure by CONTRACTOR to submit "As-Built Plans" may cause delay in final payments.

20. SUBMITTALS (SHOP DRAWINGS)
The CONTRACTOR shall submit for approval by the Director such material, samples, product specifications/brochures, certified mix designs, warranties material certifications, operations and maintenance manuals and equipment as may be required, whether mentioned specifically herein or not.

The CONSTRACTOR shall submit two (2) sets or pdf files of shop drawings for approval.

Shop drawings must be completed; any cut sheets with multiple items must be clearly highlighted with a yellow felt tip mark identifying specific items to be used on the project.

Any “Unhighlighted” cut sheets will be returned for resubmittal. All shop drawings must be approved prior to the start of construction. One set of approved shop drawings must be at the construction site at all times.

21. SUPERINTENDENCE OF LABOR AND COMPETENCY
The CONTRACTOR, or an experienced superintendent authorized to act for him, shall be continually in charge of the work. Information given by the Director to the CONTRACTOR's superintendent or his/her authorized representative shall be as binding as though given to the CONTRACTOR in person. In addition, there shall be a qualified and experienced foreman in charge of each branch of work. No workman, foreman, or superintendent shall be continued on the work that is negligent, incompetent or disrespectful in the sole judgment of the Director.

22. PROTECTIONS AND INSURANCE
Refer to Construction Agreement.
61 SECTION 6 – GENERAL CONDITIONS (Continued)

24 23. SUBCONTRACTORS
No subcontractor will be recognized as such. All persons engaged in the work of construction will be considered as employees of CONTRACTOR, and CONTRACTOR will be held directly responsible for their work. No contract or any portion thereof may be assigned without the written consent of the Director.

24. CLAIMS/LEGAL ACTIONS AGAINST THE CITY
It is the intent of this contract, that the CONTRACTOR shall and will indemnify and hold harmless the City of Garden Grove, its officers, its board members, employees, and consultants from any and all claims, suits or actions regardless of the existence or degree of fault or negligence on the part of the CITY. The CONTRACTOR shall be responsible for any liability imposed by law and for injuries to or death of any person including but not limited to workmen and the public, or damage to property resulting from defects or obstruction or from any cause whatsoever during the progress of the work or at any time before its completion and final acceptance.

In the event claim/legal action is brought against the CITY, it will immediately be referred to the CONTRACTOR. Failure by the CONTRACTOR, for any reason to indemnify, defend and save harmless the CITY, the CITY shall deduct from any money due to CONTRACTOR reasonable expenses that the CITY staff or consultant working for the CITY have incurred in processing, investigation, defending any claims/legal actions brought against the CITY.

25. SATISFACTION OF LIENS
Before the CITY will make the final payment to the CONTRACTOR, the CONTRACTOR shall furnish the CITY with lien releases from all subcontractors and suppliers of material, together with a certified statement that the releases represent all the materials furnished and all the subcontractors engaged for the work.

26. DISPUTED WORK
If the CONTRACTOR and the CITY are unable to reach agreement on disputed work, the CITY may direct the CONTRACTOR to proceed with the work. Payment shall be as later determined by arbitration, if the CITY and the CONTRACTOR agree thereto, or as fixed in a court of law.

27. CLEAN UP
The CONTRACTOR shall protect and care for all work until final completion and acceptance.

During construction, the CONTRACTOR shall keep the site free and clear from all rubbish and debris, and the site must be cleaned up at the end of each day and within one day after the Director gives him notice.

At the time of the completion of the work, the CONTRACTOR shall remove from the site and the vicinity of the work all plant equipment, buildings and other temporary facilities, all used or unused materials belonging to him or used under his direction during construction. He shall remove all debris and rubbish from the site of the work before he makes application for acceptance of the work.

28. LEGAL HOLIDAYS
Legal holidays shall be regarded as Thanksgiving Day and the day after, New Year's Day and the day before or after as approved by the CITY, Martin Luther King Day, President's Birthday, Memorial Day, Fourth of July, Labor Day, Veteran’s Day, and from December 18, 2023 to January 2, 2024.
62 SECTION 6 – GENERAL CONDITIONS (Continued)

25 Therefore, by submitting a bid the CONTRACTOR acknowledges that the work will be stopped from December 18, 2023 through January 2, 2024 and that he/she has included all costs for the shut down of work over this period of time, and the recommencement of work on January 3, 2024.

29. PAYMENTS
Refer to Construction Agreement.

30. PAYMENT OF TAXES
The contract prices paid for the work shall include full compensation for all taxes which the CONTRACTOR is required to pay, whether imposed by Federal, State, or local government, including, without being limited to, Federal Excise Tax and Federal Transportation Tax.

31. SCHEDULE OF CONSTRUCTION
The CONTRACTOR shall submit to the Director a schedule of construction for approval.

A. The CONTRACTOR shall submit a written proposed baseline schedule to the Director before starting construction.

B. The CONTRACTOR shall be responsible for furnishing a schedule on a form, which meets the Director's approval.

C. The CONTRACTOR shall be responsible for updating the schedule and, if requested, will provide an updated copy of the schedule at the end of each billing period.

D. No payments of work completed shall be made until the subject schedule is submitted and approved.

The schedule of construction shall list in detail and proper sequence the various construction items for the job. The Director shall be notified before any change is made in the sequence of construction.

32. SAFETY PROVISIONS
The CONTRACTOR shall conform to the rules and regulations pertaining to safety established by the California Division of Industrial Safety.

The CONTRACTOR shall maintain the work site in a clean, safe and workmanlike manner.

All material to be cleared from the site shall be removed from the site at the end of each day.

All open trenches shall be either backfilled or the work area shall be adequately covered with steel plates as directed by the City Inspector at the end of each working day. The CONTRACTOR shall, upon direction of the Director, immediately remove or protect any item, which in the opinion of the Director presents a safety hazard. All costs involved in maintaining the work site in a clean and safe manner shall be included in the various items of work and no additional compensation will be allowed. With the approval of the Director , The CONTRACTOR may establish temporary "No Parking Tow Away" zones adjacent to the work zone. Establishment of such zones shall be coordinated with the Garden Grove Police Department, (714) 741-5707, and the CITY’s Traffic Engineer, (714) 741-5190.

33. GUARANTY
Refer to Construction Agreement.

34. COORDINATION OF DOCUMENTS
63 SECTION 6 – GENERAL CONDITIONS (Continued)

26 In case of conflict between the various contract documents, the order of precedence shall be as follows:

1. Special Provisions

2. General Conditions

3. Construction Plans

5. The Standard Specifications

6. Cal Trans Publications
The Standard Specifications shall apply to all phases of work not controlled by documents 1 through 6 above.

In case of conflict between the Standard Specifications and the instructions and conditions of the invitation to bid, the Standard Specifications shall have precedence.

In case of conflict, it is the CONTRACTOR’s responsibility to use best materials as approved by the Director.

35. RIGHT-OF-WAY
It shall be the responsibility of the CONTRACTOR to conduct all of i ts activities within the confines of the work site.

If, for any reason, the CONTRACTOR elects to encroach upon other lands adjoining rights-of-way or adjoining the work site, CONTRACTOR shall first obtain written permission from the owner thereof and provide evidence of such permission in writing to the Director prior to entering upon such lands.

The CONTRACTOR shall indemnify and hold the CITY harmless from all claims for damages occasioned by such work or activity, whether done in compliance with this section and with permission or in violation of this section and without permission.

36. CONSTRUCTION SITE
Construction equipment shall not be stored at the work site before its actual use on the work nor for more than three (3) working days after it is no longer needed on the work. All repairs or assembly of equipment that will take two (2) or more working days to repair shall be done at the construction yard. The CITY shall approve the location and size of construction yard.

Any damaged, destroyed or disturbed area at the site shall be restored to their original condition or replaced by the CONTRACTOR as directed by the Director at no additional expense to the CITY . All equipment and materials shall be stored at the yard during weekends, unless otherwise authorized by the Director.

Excavated materials shall not be stored on the site. Excavated materials that may be suitable for backfill may be stored at the site if approved by the Inspector and if storage location conforms to the approved traffic control plan. The Director shall, at all times, have a safe access to the site for purposes of inspection and testing. The CONTRACTOR shall remove all trash, debris, and construction materials, spoil and contaminates (gas, oil diesel fuel, lubricants, etc.) and leave the site in a clean and level condition.

Full compensation for conforming to the requirements of this section shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed.

37. TESTS
Tests, including compaction tests, shall be performed in accordance with the Standard Specifications and these Specifications. The CONTRACTOR, at his own expense, shall deliver 64 SECTION 6 – GENERAL CONDITIONS (Continued)

27 the materials for testing to the place and at the time designated by the Director. The CONTRACTOR shall notify the Director no less than two (2) working days in advance of any required materials testing. The cost of performing such tests shall be borne by the CITY when results indicate compliance with the specifications; otherwise, the expense of such tests shall be borne by the CONTRACTOR.

38. COMPLIANCE WITH LAW
CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local governments.

40. NO WAIVER OF CONDITIONS
CONTRACTOR agrees that waiver by CITY of any one or more of the conditions of performance under this contract shall not be construed as waiver of any other condition of performance under this contract.

41. CORPORATE AUTHORITY
The persons executing this contract on behalf of the parties hereto warrant that they are duly authorized to execute this contract on behalf of said parties and that by so executing this contract; the parties hereto are formally bound to the provisions of this contract.

42. MODIFICATION
This Agreement constitutes the entire agreement between the parties. This Agreement may be modified only by subsequent mutual written agreement executed by the CITY and the CONTRACTOR.

43. WAIVER
All waivers of the provisions of this Agreement must be in writing by the appropriate authorities of the CITY and the CONTRACTOR.

44. CALIFORNIA LAW
This Agreement shall be construed in accordance with the laws of the State of California.

45. INTERPRETATION
This Agreement shall be interpreted as though prepared by both parties.

46. PRESERVATION OF AGREEMENT
Should any paragraph, clause or provision of this agreement be found invalid or unenforceable, such decision shall affect only the paragraph, clause, or provision construed and interpreted, and all remaining provisions shall remain valid and enforceable.

47. MUTUAL AGREEMENT
The parties hereto do mutually covenant and agree to the full and faithful performance of their respective obligations under this contract.

48. NOTICE OF COMPLETION
CONTRACTOR shall certify in writing to CITY, prior to final payment that the entire project is complete and request that CITY issue a Notice of Completion. Within a reasonable time thereafter, CITY and CONTRACTOR shall make an inspection. If the CITY does not consider the project complete, it will notify the CONTRACTOR in writing giving its reasons (the list of work to be completed or corrected) and shall be accepted by the CITY prior to any final payment and recordation of the Notice of Completion.
65 SECTION 6 – GENERAL CONDITIONS (Continued)

28 66
SECTION 7 - SPECIAL PROVISIONS (Continued)
29 SECTION 7 - SPECIAL PROVISIONS

ARTICLE 1 – CHANGES/DISPUTED WORK/CLAIMS

Owner Directed Changes – CITY initiated changes in the work shall be processed in accordance with Sections 5.9.1 and 5.9.2 of the Agreement.

Contractor Initiated Changes/Changed Conditions – The CONTRACTOR shall promptly notify the Director of the following work site conditions (hereinafter called changed conditions), in writing, upon their discovery, but in no event later than three (3) calendar days after they are discovered, and before they are disturbed:

1. Subsurface or latent physical conditions differing materially from those represented in the Contract;

2. Unknown physical conditions of an unusual nature differing materially from those ordinarily encountered and generally recognized as inherent in work of the character being performed; and

3. Material differing from that represented in the contract which the CONTRACTOR believes may be hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; and

The CONTRACTOR’s failure to give written notice of the alleged changed conditions within the time required three (3) calendar days shall constitute a waiver of any potential change order or claim for said alleged changed condition.

The Director will promptly investigate conditions which appear to be changed conditions. If the Director determines that the conditions are changed conditions and will materially affect costs, the CONTRACTOR, upon submitting a written request which is acceptable to the CITY and that includes a breakdown and detail of the costs in sufficient detail so the CITY may fully analyze the change and costs, shall be entitled to a change order. If the Director determines that conditions are changed conditions and they will materially affect performance time, the CONTRACTOR, upon submitting a written request which includes an acceptable Time Impact Analysis, will be granted an extension of time.

If the Director determines that the conditions do not justify an adjustment in compensation, the CONTRACTOR will be notified in writing. This notice will also advise the CONTRACTOR of its obligation to notify the Director in writing if the CONTRACTOR disagrees. Nothing herein will relieve the CONTRACTOR from its obligation to proceeding with the disputed work.

Should the CONTRACTOR disagree with the decision of the Director, it may submit a written claim for equitable adjustment pursuant to Section 5.9.5 of the Agreement. The written claim for equitable adjustment shall include sufficient detail to allow the CITY to fully analyze the potential claim and shall include at a minimum, the points of disagreement, applicable contract specification references, quantities and costs involved. In the event of such dispute, the CONTRACTOR shall not be excused from any scheduled completion date and shall proceed with all work to be performed under the contract.

Although not to be construed as proceeding under extra work provisions, CONTRACTOR shall keep and furnish records of disputed work in accordance with Section 3- 3 of the Standard Specifications.

These records shall be legible and completely describe the work in dispute, including location. These records shall be submitted to the CITY inspector on a daily basis. The inspector will initial records as acknowledgement of T&M only and said initials shall not convey approvals. The Director shall review 67 SECTION 7 - SPECIAL PROVISIONS (Continued)
30 the notice of potential claim and the parties shall meet and confer, and try to resolve in good faith the potential claim.

Disputed Work – If for any reason potential claims cannot be settled through good faith negotiations, the potential claims will be resolved in accordance with Section 3-5 of the Standard Specifications with the following additions:

The CITY and the CONTRACTOR shall share all fees required by mediation or arbitration equally.

When the claim is to be settled in court, both parties must pay their own attorneys’ fees.

Resolution of Claims – At the final inspection, CONTRACTOR shall provide a list of all claims, proceeding from notices of potential claims previously submitted under the requirements of the Contract, for which he intends to file claims. CONTRACTOR shall also arrange to meet and confer on the listed claims within 15 days of the final inspection. Time of the meeting shall be within this 15-day period. If on the day of final inspection CONTRACTOR fails to set such meeting or provide the list of claims, the project will not be accepted and working days will continue to accrue. If these requirements are met on the day of the final inspection, preliminary acceptance will be established pending final acceptance following attendance of CONTRACTOR at the scheduled meeting.

If CONTRACTOR attends the scheduled meeting within 15 working days of the final inspection, the date of acceptance will be the date of final inspection. Failure of the CONTRACTOR to attend such meeting within 15 days of the date of preliminary acceptance shall cause the working days used in performance of the contract to be calculated based on the date of the actual meeting being date of final acceptance, minus 15 days.

Section 20104 et seq. of the California Public Contract Code prescribes a process utilizing informal conferences, nonbinding judicially supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less.

“Public Work” has the same meaning as in Section 3100 and 3106 of the Civil Code,…” (20104 (b) (1)).

“Claim” means a separate demand by the CONTRACTOR for (A) a time extension, (B) payment of money or damages arising from work done by or on behalf of the CONTRACTOR pursuant to the contract for a public work and payment of which is not otherwise entitled to, or an amount the payment of which is disputed by the local agency. (20104 (b) (2)).

For any claim subject to this article, Section 20104.2 et seq., the following requirements apply

a) The claim shall be in writing and include the documents necessary to substantiate the claim. Claims must be filed on or before the date of final payment. Nothing in this subdivision is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims.
b) (1) For claims of less than fifty thousand dollars ($50,000), the local agency shall respond in writing to any written claim within 45 days of receipt of the claim, or may request, in writing, within 30 days of receipt of the claim, any additional documentation supporting the claim or relating to defenses or claims the local agency may have against the claimant. (2) If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of the local agency and the claimant. 68 SECTION 7 - SPECIAL PROVISIONS (Continued)
31 (3) The local agency’s written response to the claim, as further documented, shall be submitted to the claimant within 30 days after receipt of the further documentation, or within a period of time no greater than that taken by the claimant in producing the additional information or requested documentation, whichever is greater.
c) (1) For claims over fifty thousand dollars ($50,000) and less than or equal to three hundred seventy-five thousand dollars ($375,000), the local agency shall respond in writing to all written claims within 60 days of receipt of the claim, or may request, in writing, within 30 days of receipt of the claim, any additional documentation supporting the claim or relating to defenses or claims the local agency may have against the claimant. (2) If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of the local agency and the claimant. (3) The local agency’s written response to the claim, as further documented, shall be submitted to the claimant within 30 days after the receipt of further documentation, or within a period no greater than that taken by the claimant in producing the additional information or requested documentation, whichever is greater. d) If the claimant disputes the local agency’s written response, or the local agency fails to respond within the time prescribed, the claimant may so notify the local agency, in writing, either within 15 days of receipt of the local agency’s response or within 15 days of the local agency’s failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon a demand, the local agency shall schedule a meet and confer conference within 30 days for settlement of the dispute. e) Following the meet and confer conference, if the claim or any portion remains in dispute, the claimant may file a claim pursuant to Chapter 1 (commencing with section 900) and Chapter 2 (commencing with Section 910) of Part 3 of division 3.6 of Title 1 of the Government Code.

For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the claimant submits his or her written claim pursuant to subdivision (a) until the time claim is denied, including any period of time utilized by the meet and confer conference.
20104.4. The following procedures are established for all civil actions filed to resolve claims subject to this article:
a) Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to nonbinding mediation unless waived by mutual stipulation of both parties.

The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court. b) (1) If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 Part 3 of the Code of Civil Procedure, notwithstanding Section 1141.11 of that Code. The Civil Discovery Act of 1986 (Article 3 (Commencing with section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.
(2) In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction 69 SECTION 7 - SPECIAL PROVISIONS (Continued)
32 law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party.
20104.6
a) No local agency shall fail to pay money as to any portion of a claim which is undisputed except as otherwise provided in the contract.
b) In any suit filed under Section 20104.4, the local agency shall pay interest at the legal rate on any arbitration award or judgment. The interest shall begin to accrue on the date the suit is filed in a court of law.

ARTICLE 2 - SCOPE OF WORK AND SEQUENCE OF CONSTRUCTION

The scope of work shall conform to the provisions of Sections 2 and 3 of the Standard Specifications and the following additions:

The work to be done consists of furnishing all labor, materials, tools, equipment and incidentals necessary for the construction as shown on the construction plans and as specified in these Specifications.

The Contractor shall submit detailed work plan with anticipated start date, duration of construction, phasing plan, the sequence of work, staging areas, etc. The Contractor shall be responsible for assuring that all work sequences are logical and the schedule shows a coordinated plan for complete performance of the work.

The project will also require traffic control plans, permits and implementation, storm water protection, demolition and disposing of demolished material and appurtenant work.

The unit prices, shall include the cost of equipment, tools, materials and labor that are delivered to the work site that are necessary for this purpose, to complete the project within the contract time required.

When unforeseen difficulties or a conflict is encountered, including toxic and hazardous materials, CONTRACTOR shall notify the Director in writing immediately upon discovery and before the existing conditions are disturbed. CONTRACTOR shall also allow the Director minimum of four (4) hours on five (5) separate occurrences of standby time at no charge to investigate the conditions and make determinations concerning these conditions. CONTRACTOR and his work force shall assist the Director in such investigations. If the Director determines that additional time is needed for evaluation after investigation; the CONTRACTOR shall reschedule, reassign, transfer or move any labor, materials, tools, equipment and alter the sequence of construction activities as necessary to carry out the intent of this project at no cost to the CITY.

The CONTRACTOR cannot withdraw from the project site any labor, materials, tools and equipment without prior written approval by the Director or his authorized representative. Therefore, the CONTRACTOR shall have no claim against the CITY for delay, standby time of tools, equipment and labor, damages, liability and loss of profit, when it is necessary for the Director to exercise this requirement.

Full compensation for conforming to the requirements of this Article shall be considered as included in the Contract bid prices for the various items of work. No separate payment will be allowed.

ARTICLE 3 – MARK-UP OF EXTRA WORK
70 SECTION 7 - SPECIAL PROVISIONS (Continued)
33 To eliminate the ambiguity and provide the CONTRACTOR clear understanding of the allowable markup, Section 3-3.2.3 “Markup” of the Standard Specifications shall be deleted and replaced with the following:

(a) Work by CONTRACTOR.

A markup of fifteen (15) percent , covering all overhead and profits, shall be added to the CONTRACTOR’s costs as determined under 3.3-2.2 and shall constitute the CONTRACTOR’s only payment for all overhead of any type and profit on “extra work”. There shall be no compensation for bond costs associated with “extra work”.

(b) Work by SUBCONTRACTOR.

When a SUBCONTRACTOR performs all or any part of the extra work, the markup established in 3-

3.2.3(a) shall be applied to the SUBCONTRACTOR’s actual cost of such work, and shall constitute its only payment for all overhead of any type and profit. The CONTRACTOR shall receive an additional markup, not to exceed five (5) percent, for all its overhead and profit on the “extra work” performed by the SUBCONTRACTOR.

No higher markup than as stated above shall be allowed or accepted for any extra work.

ARTICLE 4 - COOPERATION

Although there can be no guarantee that difficulties will not be encountered, the cooperation of the CONTRACTOR is expected. The CITY has endeavored to provide a complete set of project plans and specifications. In the event of any conflict during the course of construction, CONTRACTOR shall allow reasonable time and provide equipment and manpower for the Director to field -check and make determination to resolve the conflict.

CONTRACTOR shall provide equipment and manpower to dig all holes necessary for testing and other test requirements.

CONTRACTOR shall have a representative on the job site at all times during working hours. The representative shall have the authority to make decisions regarding work that can commit CONTRACTOR time, materials, equipment, labor, and resources.

Full compensation for conforming to the requirements of this Article shall be considered as included in the contract bid prices for the various items of work. No separate payment will be allowed.

ARTICLE 5 - SCHEDULE OF CONSTRUCTION AND ORDER OF WORK

A. Schedule of Construction

Before starting construction, the CONTRACTOR shall submit to the Director a cost loaded progress schedule, by task in bar form, to be approved by the Director. The schedule shall show the order in which the CONTRACTOR proposes to carry out the work, and the contemplated dates for starting and completing the separate work activities. The CONTRACTOR shall use Primavera software such as P3, SureTrak or approved equal for schedule.

The sum of the allocated cost to the separate work activities shall equal all work shown on the plans and as required by these specifications.

71 SECTION 7 - SPECIAL PROVISIONS (Continued)
34 It shall be the CONTRACTOR's responsibility to contact and coordinate the requirements of any impact to public utilities through the utilities representative. The construction schedule shall include the start and completion dates of public utilities under ground work and coordination.

The progress schedule shall be consistent with the order of the work, and time requirements of the contract.

Construction in more than one location at one time will be allowed only if authorized by the Director in writing. Said authorization will be contingent upon the CONTRACTOR's ability to demonstrate a significant benefit to the CITY.

B. Construction Meeting

A weekly construction meeting shall be held between representatives of the CITY and the CONTRACTOR, at an agreed upon place, day of the week and time in order to discuss progress, submittals, potential problems and other activities related to the project.

C. Order of Work

The first order of work, after being notified that the CITY has awarded the contract, shall be to place the order for all shop drawings, purchase of materials, traffic control plan (if required), and storm water pollution prevention plan required by this project. The order shall be placed within three (3) working days from date of notification.

Full compensation for conforming to the requirements of this Article shall be considered as included in the contract bid prices for the various items of work . No separate payment will be allowed.

ARTICLE 6 - PRESERVATION OF PROPERTY AND SURVEY MONUMENTS

Attention is directed to Section 7-9 of the Standard Specifications and the following Special Provisions:

Permanent Survey Monuments and Markers

The CONTRACTOR shall be responsible for protecting all existing horizontal and vertical survey controls, monuments, ties and benchmarks located within the limits of the project. If any of the above require removal; relocation or resetting, the CONTRACTOR shall, prior to any construction work and under the supervisi on of a California- licensed Land Surveyor or Civil Engineer, establish sufficient temporary ties and benchmarks to enable the points to be reset after completion of construction.

Any ties, monuments and bench marks disturbed during construction shall be r eset by the CONTRACTOR per City or Orange County Standards after construction and the centerline tie notes shall be submitted to the CITY on 8 1/2" X 11" loose leaf paper. The CONTRACTOR and his sureties shall be liable for, at his expense, any resurvey required in protecting existing ties, monuments, benchmarks or any such horizontal and vertical controls.

Payment for preservation or reestablishment of permanent survey monuments and markers including centerline ties shall be included in the various items of work. Said payment shall include full compensation for furnishing all labor, materials, tools, equipment, and doing all the work involved in preserving or reestablishing the survey monuments including centerline ties, all excavation, backfill and replacement of pavement section, and conforming to the requirements of this Article. No separate payment will be allowed.
72 SECTION 7 - SPECIAL PROVISIONS (Continued)
35 ARTICLE 7 - DUST AND SOUND CONTROL REQUIREMENTS ; CLEAN AIR ACT AND WATER

POLLUTION CONTROL ACT REQUIREMENTS

Erosion Control

Per the Federal Clean Water Act, the Contractor is required to eliminate pollution to waters of the United States that may result from this project. This project will require the Contractor to implement “Best Management Practices” (BMP’s). BMPs shall include, but is not limited to fabric over the grate and side openings during the removal and replacement of AC process and the removal of the AC byproduct, immediately cleaning up spilled fluids with an absorbent material and broom, sealing containers of hazardous materials immediately after use, removing loose dirt from the work sites daily, covering stock piles and materials, etc.

Contractor is required to implement an erosion control program, including plans, prior to performing any excavation or disturbing any soil, landscape, or pavement. a. Submit four (4) copies of erosion control plan to City for approval. b. Erosion control plan shall include emergency 24- hour telephone number(s) of responsible Contractor personnel and details of protective measures, including desilting basins or other temporary drainage and/or control measures. c. Necessary materials (gravel bags, etc.) or devices, per the approved plan, shall be available on site at convenient locations to facilitate rapid installation or to repair any damaged erosion control measures when rain is imminent. All removable protective devices shown on the plan shall be in place at the end of each day when the five (5) day rain probability forecast exceeds forty (40) percent. d. Remove all silt and debris from check dams and desilting basins after a rainstorm and as needed to assure proper operation.
e. Contractor is advised that, based upon actual site conditions, other work devices, controls, and/or revisions to the erosion control plan/program may be by the project inspector, at no cost to the City, to satisfy requirements of this article.

Payment for implementing (BMPs) shall be included in the prices bid for various contract items. The price shall include all costs of all documentation; administration and implementation of the erosion control requirements and SWPPP requirements for the entire contract period, and no additional compensation shall be made therefor.

Dust Control

Dust control shall consist of applying water in conformance with Section 7- 8 of the Standard Specifications, with the following modification:

The CONTRACTOR shall furnish and operate a water truck and self -loading motor vacuum sweeper with spray nozzles applied at least twice each calendar day (including holidays and weekends ), first during construction to keep paved areas reasonably clean, and second at the end of day. The CONTRACTOR shall never leave the construction premises dirty or dusty.

All spillage and any excessive dirt or debris resulting from hauling operations, moving of equipment along or across any private or public property or public traveled way, shall be removed immediately at the CONTRACTOR's expense.
73 SECTION 7 - SPECIAL PROVISIONS (Continued)
36 Whenever the CONTRACTOR fails to control dust resulting from the performance of the work, the Director may cause such dust to be controlled. The costs of controlling dust shall be deducted from moneys due or to become due the CONTRACTOR.

No separate payment will be made for any work performed or material used to control dust resulting from the CONTRACTOR's p erformance of the work, or by public traffic, either inside or outside the right-of-way. Full compensation for such dust control will be considered as included in the price paid for the various items of work involved.

Sound Control

The CONTRACTOR shall comply with all local sound control and noise level rules, regulations and ordinances, which apply to any work performed pursuant to the contract.

Each internal combustion engine, used for any purpose on the job or related to the job, shall be equipped with a muffler of a type recommended by the manufacturer. No internal combustion engine shall be operated on the project without said muffler.

The noise level from the CONTRACTOR's operations shall not exceed 86 DBA at a distance of fifty feet (50'). This requirement in no way relieves the CONTRACTOR from responsibility for complying with local ordinances regulating noise level.

Said noise level requirement shall apply to all equipment on the job or related to the job, including but not limited to trucks, transit mixers or transient equipment that may or may not be owned by the CONTRACTOR. The use of loud sound signals shall be avoided in favor of light warnings except those required by safety laws for the protection of personnel.

Full compensation for conforming to the requirements of sound control shall be considered as included in the prices paid for the various contract items of work involved and no additional compensation will be allowed therefore.

IMPLEMENTATION OF CLEAN AIR ACT AND FEDERAL WATER POLLUTION CONTROL ACT

By submission of this bid, or the execution of this contract or subcontract, as appropriate, the bidder, CONTRACTOR, or SUBCONTRACTOR, as appropriate, will be deemed to have stipulated the following:

1. That any facility that is or will be utilized in the performance of this contract, unless such contract is exempt under the Clean Air Act, as amended (42 U.S.C. 1857 et seq., as amended by Pub. L. 91-604), and under the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seq., as amended by Pub. L. 92-500), Executive Order 11738, and regulations in implementation thereof (40 CFR Part 15) is not listed, on the date of contract award, on the U.S. Environmental Protection Agency (EPA) List of Violating Facilities pursuant to 40 CFR 15.20.

2. That the CONTRACTOR agrees to comply and remain in compliance with all the requirements of Section 114 of the Clean Air Act and Section 308 of the Federal Water Pollution Control Act and all regulations and guidelines listed hereunder.

3. That the CONTRACTOR shall promptly notify the OSHA of the receipt of any communication from the Director, Office of Federal Activities, EPA, indicating that a facility that is or will be utilized for the contract is under consideration to be listed on the EPA List of Violating Facilities.

74 SECTION 7 - SPECIAL PROVISIONS (Continued)
37 4. That the CONTRACTOR agrees to include or cause to be included the requirements of paragraphs 1 through 4 of this Section in every nonexempt subcontract, and further agrees to take such action as the government may direct as a means of enforcing such requirements (FHWA 1273 Rev. 8/89, 12-4-89).

Full compensation for conforming to the requirements of the Clean Air Act and Federal Water Pollution Control Act shall be considered as included in the prices paid for the various contract items of work involved and no additional compensation will be allowed therefore.

ARTICLE 8 - CONSTRUCTION WATER

Application of water shall conform to the provisions of Section 7-8.5 of the Standard Specifications and the following additions:

Construction water may be taken only at locations approved by the City of Garden Grove Water Services Division. The CITY will install a construction meter and eddy valve at these locations at the CONTRACTOR’s expense. This valve shall be operated when taking construction water with the fire hydrant remaining open during the day. CONTRACTOR will be charged for construction water on an as-used basis.

The CONTRACTOR must contact the City of Garden Grove Water Services Division to request installation of a fire hydrant water meter for construction water and shall make appropriate deposits to cover meter installation and testing, meter relocation and or damage to the meter.

Water shall be applied in the amounts, at the locations, and for the purposes designated in these specifications and as ordered by the Director.

Water for compacting embankment material, subbase, base and surfacing material, and for laying dust shall be applied by means of pressure-type distributors or pipe lines equipped with a spray system or hoses with nozzles that will ensure a uniform application of water.

Equipment used for the application of water shall be equipped with a positive means of shut-off. Unless otherwise permitted by the Director or unless all the water is applied by means of pipe lines, at least one mobile unit with a minimum capacity of 1,000 gallons shall be available for applying water on the project all times.

Payment for applying water, including all labor, tools, equipment, and incidentals required for the application of water shall be considered as included in the various contract items of work involving the use of water, and no additional compensation will be allowed.

ARTICLE 9 - PROJECT APPEARANCE

The CONTRACTOR shall maintain a neat appearance to the work site. Neat appearance shall include daily clean-up of all debris that may be generated from trucks and equipment using the approved Haul Route. Asphalt concrete, aggregate base, broken PC concrete, native soil, and debris developed during construction shall be disposed of concurrently within its removal. If stockpiling is necessary, the material shall be removed or disposed of weekly.

Dust caused by the passage of public traffic through the work shall be considered as resulting from the CONTRACTOR's performance of work. The CONTRACTOR is responsible for abating dust caused by his operation in accordance with Article 7 of these Special Provisions. 75 SECTION 7 - SPECIAL PROVISIONS (Continued)
38 Full compensation for conforming to the provisions in this section, not otherwise provided for, shall be considered as included in price paid for the various contract items of work involved and no additional compensation will be allowed therefore.

ARTICLE 10 - PUBLIC SAFETY

The CONTRACTOR shall conform to the rules and regulations pertaining to safety established by the California Division of Industrial Safety.

The CONTRACTOR shall take all necessary precautions to protect the public from the hazards of open excavations. Trenches and other excavations shall either be safely covered or adequately fenced in a manner meeting the approval of the Director overnight and on weekends or at other times required by the Director for safety. No open trenches or any other open excavation shall be left open for more than two (2) working days. In the absence of covering or fencing, CONTRACTOR shall backfill all open excavations at his expense.

ARTICLE 11 - ARCHAEOLOGICAL AND PALEONTOLOGICAL DISCOVERIES

If discovery is made of items of archaeological or paleontological interest, the CONTRACTOR shall cease excavation of the area of discovery and shall not continue until such time as approved by the Director. The Director shall then direct excavation operations within the area of discovery.

Discoveries include but are not limited to, dwelling sites, stone or other artifacts, animal bones, human bones and fossils.

The CONTRACTOR shall be entitled to an extension of time in accordance with the provisions of Subsection 6-3 of the Standard Specifications. Should the CONTRACTOR's operations be affected materially, additional work will be paid for as extra work as provided in Subsection 3- 3, "EXTRA WORK," of the Standard Specifications.

ARTICLE 12 - GEOTECHNICAL INVESTIGATION

The CITY has not conducted a geotechnical investigation where the proposed fence improvements are to be constructed. Each prospective bidder shall be responsible for obtaining any geotechnical information that he/she needs to prepare for his/her bid. Each prospective bidder shall be responsible for the cost of obtaining the required geotechnical information for his/her bid.

By submitting a bid, the CONTRACTOR acknowledges that he/she has satisfied himself/herself as to the nature of the work, including but not restricted to the conditions affecting handling and storage of materials, disposal of excess material, level and amount of groundwater , and ascertaining existing conditions that affect labor, materials and equipment costs.

In the event groundwater is encountered, the CONTRACTOR shall provide and maintain dewatering during construction in accordance with the standard specifications and the requirements of the CITY's NPDES Order No. 85- 83 issued by the California Regional Water Quality Control Board (Santa Ana Region).

All costs for dewatering, when encountered during construction, shall be included in the contract bid prices for the various items of work. No separate payment will be allowed.

76 SECTION 7 - SPECIAL PROVISIONS (Continued)
39 All costs for geotechnical testing other than compaction testing shall be considered as included in the price paid for the various contract items of work involved and no additional compensation will be allowed therefore.

ARTICLE 13 – MOBILIZATION/DEMOBILIZATION

Mobilization and demobilization shall consist of preparatory work and operations including, but not limited to, those necessary for the movement of personnel, equipment, materials and incidentals to the project site necessary for work on the project and for all other work and operations which must be performed or costs incurred including bonds, insurance and financing prior to beginning work on the various contract items on the project site. Any bonds that must be posted or proof of insurance issues that arise must be resolved prior to mobilization and/or demobilization. Mobilization and demobilization shall also include the time and labor to move the necessary construction equipment to and from the job site, supervisory time on the job by the CONTRACTOR’s personnel to keep the construction site in a safe condition, and all other related work as required for all non- working days during the course of construction. The CONTRACTOR is responsible for securing an adequate storage site for equipment and materials.

Payment for mobilization and demobilization shall be included in the bid price per Lump Sum for Clearing and Grubbing, including Mobilization and Demobilization in the bid proposal and shall include full compensation for furnishing all labor, materials, equipment, rental of necessary equipment, materials and storage sites for storage purpose, and incidentals necessary to mobilize and demobilize in accordance with the paragraph above.

ARTICLE 14 - TRAFFIC CONTROL (IF NECESSARY)

Traffic control shall conform to the latest editions of the California Manual on Uniform Traffic Control Devices (CA MUTCD) and with Caltrans Standard Plan T11 Traffic Control System for lane closure on multi-lane conventional highways. Notes 2 and 6 of the Caltrans Standard Plan T11 regarding illuminated advanced warning signs and cones shall not apply.

A. VEHICLE TRAFFIC CONTROL

A minimum of one (1) eleven foot lane for each direction shall be kept open and maintained for public use at all times except as indicated on the plans or as directed by the Director during construction.

B. PEDESTRIAN TRAFFIC CONTROL

A minimum of one four foot wide all -weather pedestrian walkway shall be kept open and maintained to the satisfaction of the Director along both sides of each public street at all times during construction.

C. ACCESS TO ADJACENT PROPERTIES

A minimum of one (1) driveway per property shall be accessible and maintained at all times unless otherwise authorized by the City. Temporary drive approach ramps constructed of recycled materials or temporary asphalt (12’ minimum width) may be installed as approved by the Director. Trench plates may also be used.

D. GENERAL TRAFFIC CONTROLS

Notification letters shall be hand delivered by Contractor two (2) weeks in advance of beginning of construction giving notice of traffic restriction, period of construction, and suggested use of 77 SECTION 7 - SPECIAL PROVISIONS (Continued)
40 alternate routing. Exact wording on the advanced notification letters will be approved by the Director.

Traffic control devices shall comply with Section 12 of the Standard Specifications.

The Contractor shall submit traffic control plans prepared by a civil engineer registered in the State of California, stamp the plans for approval at least ten (10) working days prior to commencement of work to the City of Garden Grove Traffic Division for approval. The plans shall show all businesses, directional signs, driveway entrances, signs, delineation, tapers, dimensions, etc., for traffic control. The traffic control plans should include Traffic Control Notes (that can be found at: revised-traffic-control-notes-3-8-22.pdf (ggcity.org ). No construction will begin until the Contractor's traffic control plans are approved by the City of Garden Grove. The plans shall indicate the various phases of work and the proposed traffic control methods for each phase of construction on each street segment. The plans shall conform to the requirements of the latest edition of the CA MUTCD, these Special Provisions.

Flashing arrow signs shall be used as noted in the traffic control plans. (Battery or solar powered only).

Placement of temporary pavement marking tape shall consist of applying, maintaining, and later removing temporary traffic stripe (traffic line) and pavement marking tape at the locations shows on the plans or designated by the Director in conformance with these special provisions.

Temporary tape and/or painted stripes and removal of existing channelization may be required for traffic control. Tape for temporary traffic stripes and pavement markings will be a reinforced plastic type especially designed for ease of removal.

Temporary stripes shall be placed to the line established by the Director. Completed stripes shall be straight on tangent alignment and shall be on a true arc on curved alignment.

Surfaces on which the tape is to be applied shall be cleaned of all dirt and loose material and shall be dry when the tape is applied. The air temperature and pavement temperature at the time the tape is applied shall be 50°F or above. Tape shall not be applied over existing painted stripes or markings.

After the tape has been applied it shall be rolled slowly with a rubber tired vehicle or roller to ensure complete contact with the pavement surface.

Temporary traffic stripes and pavement markings that are damaged from any cause during the progress of the work shall be repaired or replaced by the Contractor at his expense.

When no longer required for the direction of public traffic, as determined by the Director, the tape shall be removed and disposed of outside the highway right of way and all marks used to establish satisfactory lines for the temporary stripes and pavement markings shall be removed from the pavement.

Every effort shall be made by the Contractor to insure traffic safety. If in the opinion of the Director additional signing or delineation is required for traffic safety, then the Contractor shall furnish and place the additional signs or delineators at no additional cost to the Agency.

E. ROAD CLOSURE CONDITIONS

78 SECTION 7 - SPECIAL PROVISIONS (Continued)
41 When construction conditions do not permit through traffic to use the street as determined by the Director, the following conditions will prevail:

• The Director must receive notice from the Contractor of any proposed road closure at least 48 hours prior to the actual closure. Before any road closures may be approved by the Director, specific detour plans for signing and barricading must be approved by the Traffic Engineer. At the times during the road closure conditions, a ten- foot (10') minimum width access corridor shall be kept open and maintained for emergency vehicles.

F. TRAFFIC CONTROL AND SAFETY

All control, warning and safety devices shall conform to the requirements set forth in the latest edition of the CA MUTCD.

If attention is directed to the existence of a hazard and the Contractor fails to provide such devices, said devices will be placed or caused to be placed by the City. The cost of placement of these devices shall be the sole responsibility of the Contractor and shall be paid for at the rate of $500.00 per hour for labor and the pickup truck, $50.00 per day per barricade, and any other costs incurred by the City relative to traffic control. Said costs, if any, shall be deducted from the progress payments and from the total Contract price for the work.

When entering or leaving roadway carrying public traffic, the Contractor's equipment, whether empty or loaded, shall in all cases yield to public traffic. No excavation within five feet of the traveled way shall remain open no longer than is necessary to perform the work, and in no case shall remain unfenced or unplated overnight or on weekends.

The Contractor shall provide and maintain all signs, barricades, pedestals, flashers, delineators and other necessary facilities for the protection of the motoring public within the limits of the construction area and all its approaches, including advanced signing and barricades. He shall also post proper signs to notify the public regarding the conditions of the roadway, all in accordance with the provisions of the Vehicle Code, and the CA MUTCD, as published by the US Department of Transportation, Federal Highway Administration.

The Contractor shall conduct his operations so as to provide reasonable access to the adjacent properties and shall have no greater length or quantity of work under construction than he can properly prosecute with a minimum of inconvenience to the public and other contractor engaged on adjacent or related work.

Portable delineators shall be spaced as necessary for proper delineation of the travel way. The spacing between delineators shall not exceed the requirements set forth in the CA MUTCD.

If the traffic cones or portable delineators are damaged, displaced or are not in an upright position from any cause, said cones or portable delineators shall immediately be replaced or restored to their original location in an upright position by the Contractor.

The Contractor shall furnish such flagmen as are necessary to give adequate warning to traffic or to the public of any dangerous conditions to be encountered. Flagmen, while on duty and assigned to give warning to the public of any dangerous conditions to be encountered, shall perform their duties and shall be provided with the necessary equipment in accordance with the current Caltrans "Instructions to Flagmen." The equipment shall be furnished and kept clean and in good working condition by the Contractor at his expense.

79 SECTION 7 - SPECIAL PROVISIONS (Continued)
42 Should the Contractor appear to be neglectful or negligent in furnishing warning and protective measures as above provided, the Director may direct attention to the existence of a hazard and the necessary warning and protective measures shall be furnished and installed by the Contractor at this expense. Should the Director point out the inadequacy of warning and protective measures, such action on the part of the Director shall not relieve the Contractor from responsibility for public safety or abrogate his obligation to furnish and pay for these devices.

All existing stop signs and street name signs shall be maintained in visible locations during construction and permanently relocated or removed as directed by the Director. Signs, which need not be maintained during construction or permanently relocated, shall be salvaged and returned to City Yard.

Temporary Traffic Lanes

1. Temporary control of traffic in work areas requires the provision of adequate street space to accommodate the traffic demands, particularly during peak traffic hours.

2. Temporary traffic lane requirements for construction activities in Arterial STREET may be specified on the permit, on the plans or in the specifications. These requirements constitute a part of the work and must be adhered to as rigidly as any other specification.

3. Construction activities on Arterial STREET shall be planned and scheduled to minimize interference with traffic. Except for emergencies, no construction work shall encroach into a moving lane of traffic between the hours of 4:30 PM to 7:30 AM unless otherwise authorized by the Director.

4. All temporary traffic lanes shall be a minimum of eleven feet in width at either direction unless otherwise authorized.

5. Suitable surfacing must be provided for the temporary traffic lanes in work areas. When traffic is diverted from the existing pavement, temporary surfacing shall be provided and shall be in conformance with the current standard specification for such work issued by the City.

6. Construction equipment not actively engaged in the work and employee vehicles shall not be parked near the work in such a manner as to further restrict or obstruct traffic flow. Vehicles and equipment in continuous or frequent use may be operated or parked in the same traffic lanes as the work obstruction.

Control, Warning and Guidance Devices

1. Devices fall into six categories: (1) Signs, (2) Barricades, (3) Delineators, (4) High Level Warning Devices, (5) Warning Lights and (6) Flashing Arrow Signs.

Sign Types

1. Traffic signs are classified into several functional groupings: construction, warning, guide and regulatory.

2. The use of "Regulatory" signs must be approved by the Director. When required, all such signs will be provided, installed and maintained by the Contractor.

3. Existing "Regulatory" signs within or adjacent to the work area must be maintained by the Contractor. If existing signs are not appropriate for traffic conditions in the work area, the Director must be notified to determine if signs shall be covered, replaced or relocated.

4. Temporary "No Parking" signs shall be installed and removed as directed by the Director. 80 SECTION 7 - SPECIAL PROVISIONS (Continued)
43 5. Temporary "No Parking" signs shall not be posted on any tree, utility pole or traffic sign.

Sign Placement

1. The location of signs will depend upon alignment, grade, and location of street intersections and posted speed limit. Signs shall face and be visible to oncoming traffic and be mounted to resist displacement. The center of signs shall be at least four and one- half feet above the roadway.

Vertical clearance for signs where pedestrian traffic is permitted shall be two feet. "Advance Warning" signs shall be located on the right hand side of traffic lanes.

2. All signs, which are to convey their messages during darkness, shall be reflectorized or illuminated.

3. No signs or supports shall bear any commercial advertising.

4. Warning, Guide and Regulatory signs normally shall be installed immediately before work is to commence and must be removed immediately after work is complete.

5. If at any time a sign is not required, it shall be covered or removed.

6. Construction signs shall be installed in accordance with Section D, General Traffic Controls.

Barricades

1. Barricades shall not be placed in a moving lane of traffic without advance warning, such as a high level warning devices and appropriate delineation.

2. Barricades shall be of three types: Type I, Type II, or Type III.

Delineators

1. All delineators used at night must be reflectorized adequately or internally luminated.

2. Opposing traffic shall be separated by delineators, traffic striping, or raised pavement markers.

3. Where traffic is diverted to the left of an existing double yellow centerline, into a painted median or into a left turn lane, delineators shall be utilized beyond the work area to return traffic to normal lanes.

4. Devices, which could roll into the adjacent traffic lane when hit, shall not be used.

5. Metal or wooden post mounted in concrete-filled buckets or on automobile wheels are examples of types, which are prohibited.

6. Maximum Recommended Delineator and Sign Placement
Merging Signs Space
Traffic Taper Spacing Spacing Between and Speed Length Transition Tangent Advance of Taper______ 25 mph 125 ft. 25 ft. 25 ft. 100 ft.
30 mph 180 ft. 25 ft. 25 ft. 250 ft.
35 mph 245 ft. 25 ft. 25 ft. 250 ft.
40 mph 320 ft. 25 ft. 25 ft. 250 ft.
45 mph 540 ft. 25 ft. 25 ft. 350 ft.

High Level Warning Devices

1. High level warning devices shall be at least 9 feet high with legs, base or truck mounting designed to resist overturning.
81 SECTION 7 - SPECIAL PROVISIONS (Continued)
44 2. Sandbags may be used to add weight to the base or legs.

3. High-level warning devices shall be equipped with a yoke at the top to accommodate at least three flags.

4. Flags shall be high visibility orange, with stays to keep flags extended.

5. Torn or dirty flags shall be immediately replaced.

6. High level warning devices are not permitted on Arterial STREET. Flashing arrow signs are required.

Warning Lights

1. Flashers shall be used only to outline the work area or to provide advance warning.

2. Flashers shall not be used to channelize traffic, to separate opposing traffic, or to delineate the path that traffic is to follow.

Flashing Arrow Signs

1. All flashing arrow signs shall meet the following requirements:

Minimum
Type Minimize Minimum Number Legibility
____________Size of Panel Lamps Distance

II 36" x 72" 13 ¾ mile
I 48" x 96" 15 1 mile

2. Flashing arrow signs are intended to supplement, not replace, other work area traffic control device.

3. Flashing arrow signs are required for each lane closure on an arterial street.

Pavement Striping/Markings

1. Restriping will be considered under the following conditions:

a) Where traffic is diverted for extended periods.
b) When traffic is to be diverted to the left of an existing double yellow centerline for two or more consecutive nights.
c) When the work area is adjacent to an intersection and results in a transition within the intersection.
d) When the traffic lane is continuously obstructed for more than 5 working days and traffic volumes require two or more lanes in a single direction. e) In other unusual situations when traffic and physical conditions require special treatment.

2. The Director shall determine the need for and extent of striping removal and restriping.

3. The installation of temporary striping or pavement markers will be the responsibility of the Contractor.

Pedestrian Traffic

82 SECTION 7 - SPECIAL PROVISIONS (Continued)
45 1. When the work area encroaches upon a sidewalk, walkway or crosswalk area, special consideration must be given to the pedestrian safety.

2. A minimum of advance warning is required.

3. The pedestrian must be separated from the work area.

4. Protective barricades, fencing, handrails and bridges, together with warning and guidance devices must be used to define the passageway.

5. Pedestrian walkways must be approved prior to installation by the Director.

6. Walkways shall be maintained at least four feet in width.

7. Minimum vertical clearance to any obstruction within the walkway must be two feet.

8. At no time shall pedestrians be diverted into a portion of the street without a physical barrier being provided, and in those areas where material can fall, the walkway shall be covered.

9. Appropriate signs and warning must be installed at the construction limits in advance of and crosswalk or pedestrian way that will be closed.

Flag Person Control

1. Flag person will be required:
a) Where workers or equipment intermittently block a traffic lane. b) Where the traffic plan allows the use of one lane for two directions of traffic. c) Where the safety of the public and workers determines there is a need.

2. Flag persons should be stationed far enough from the work to slow down or stop vehicles before they enter the work area.

3. Flag persons shall wear orange jacket (vest) for daytime use and a reflectorized belt and harness for nighttime.

4. During daylight hours, flag person shall be equipped with a sign paddle and at night, they shall use a red light.

Pursuant to the provisions of Section 14005 of the California Government Code, and pursuant to the provisions of Section 21400 of the California Vehicle Code, that the signs, lights, and devices shall conform to the provisions of the "Manual of Traffic Controls for Construction and Maintenance Work Zones," issued by the Department of Transportation for the State of California.

G. PAYMENT

Payment for Traffic Control shall be made at the Contract price bid per Lump Sum and shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in preparation of traffic control plans, approval of traffic control plans, implementation of traffic control, including but not limited to, Construction Information Signs, electronic changeable message board signs, applying, maintaining and removing tape for temporary traffic stripes and pavement markings, complete in place, flashing arrow sign, as specified in these special provisions and as directed by the Director, and no additional compensation will be allowed therefore.

ARTICLE 15 - CONSTRUCTION YARD SITE

CONTRACTOR shall at his expense, secure a site for storing materials, supplies, and equipment. It is the CONTRACTOR’s responsibility to secure a yard prior to the start of construction. Securing a site, 83 SECTION 7 - SPECIAL PROVISIONS (Continued)
46 although for this project, shall be agreed upon separately by the Contractor and Private Entity or Contractor and the City’s Realtor Agent. Available vacant properties in the project area may not be zoned for a construction yard. It is recommended to check with the City's Planning Department for zoning. A conscious effort on the CONTRACTOR’s part is required, that due regard to the rights of the public must be observed at all times. Possible obstruction and inconvenience shall be kept to the minimum.

If the CONTRACTOR pursues to enter in agreement with the City to use City or City leased property as a construction yard a temporary use permit is required with an applicati on fee of $50.00. The application is subject to review and approval by the Realtor Agent from the Planning Department.

Before moving in to the site, CONTRACTOR shall provide a certificate of insurance naming the City of Garden Grove as additional insureds from all liability. The construction yard site will become part of the project. All conditions and requirements of the project also apply to the construction yard.

Construction materials shall not be stored in streets, roads or highways for more than three (3) working days after unloading nor will the materials be stored in the streets over weekends and holidays. All materials or equipment not installed or used in the construction within three (3) working days after unloading shall be stored at the construction yard.

Construction equipment shall not be stored at the work site before its actual use on the work nor for more than three (3) working days after it is no longer needed on the work. All repairs or assembly of equipment that will take two (2) or more working days shall be done at the construction yard. All equipment and materials shall be stored at the yard during weekends and holidays, unless otherwise authorized by the Director.

Excavated materials shall not be stored in public streets, roads or highways. Excavated materials that may be suitable for backfill shall be stored at a site of CONTRACTOR's choice. The Director shall have a safe access to the site for purposes of inspection and testing at all times.

Full compensation for conforming to the requirements of this Article shall be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed.

ARTICLE 16 - PROTECTION AND RESTORATION OF EXISTING UTILITIES AND NON-HIGHWAY

FACILITIES

Attention is directed to Sections 5-2 and 7-9 of the Standard Specifications and the following special provisions:

All utilities including water, gas, oil, telephone, electrical, cable TV fiber optic systems, traffic signals, sewer mains and services, storm drains and street light conduit and wires shall be protected in place, except as noted on the project plans.

The CITY does not guarantee the accuracy of depth, size, type, material and location of all utilities shown on the plans or marked in the field by utility companies. Data was provided to the CITY based upon available records. It is to be used for information purposes only.

In order to provide lead time to resolve unforeseen utility conflicts, CONTRACTOR shall pot hole and ascertain the true location and depth of all underground utilities and services as shown or located within the lines of excavation and/or as marked by their respective owners in the field. All potholing shall be completed before CONTRACTOR will receive first progress payment or will be allowed to commence construction. Utilities marked in the field and not shown in the project plan shall be treated the same as if shown in the project plan. CONTRACTOR shall attempt to expose utilities by excavating an area three (3) feet in all directions around the location shown on the plans or marked in the field that may 84 SECTION 7 - SPECIAL PROVISIONS (Continued)
47 conflict with the proposed sewer main(s). Should the CONTRACTOR fail to locate the utility, CONTRACTOR shall immediately notify the utility purveyor and Director and the CONTRACTOR shall proceed on schedule. CONTRACTOR shall not be entitled to delays, damages or cost for failure to locate a utility by potholing. After exposing the utilities and if in the opinion of the CONTRACTOR a utility is in conflict with the proposed improvements, CONTRACTOR shall immediately notify the Director and allow utilities reasonable time to relocate, realign or remove their facilities at no additional cost to the CITY.

CONTRACTOR shall exercise extreme care in exposing, locating, supporting, protecting and working in the vicinity of existing utilities. CONTRACTOR shall hand dig within three feet (3’) on all sides of these utilities; main lines, service lines and other utility appurtenances. CONTRACTOR shall arrange a compatible work schedule with all utility companies involved. CONTRACTOR's attention is also directed to overhead and above ground utilities and poles that exist within the project site that may not be shown on the project plans, but are visible in the field. All utilities above and underground must be protected in place, unless otherwise specified in the project plan.

The CONTRACTOR shall use extreme caution around all existing utilities, especially Southern California Gas, Southern California Edison and AT&T pipes and conduits. Furthermore, the CONTRACTOR shall indemnify and hold harmless the City of Garden Grove, the CITY, its officers, its board members, employees, and consultants from any and all claims, suits, or actions resulting from or arising out of any damage(s) caused to such utilities as a result of the CONTRACTOR’s failure to adequately protect such utilities in place.

The CONTRACTOR will not be entitled to damages or additional payment for delays attributable to utility relocations or alterations if utilities are correctly located and shown on the plan. The CONTRACTOR, however, will be given an extension of time for unforeseen delays due to interferences by utilities. This work includes searching within three (3’) feet on both sides of a marked utility in the field (not shown in the plans) that is not found or never existed.

All costs incurred for potholing, hand digging, exposing, locating, supporting, protecting, maintaining and providing reasonable time to relocate or resolve conflict of underground and above ground utilities, shall be included in the price bid for the various items of work and no additional compensation will be allowed.

The CONTRACTOR, prior to submitting his/her bid, shall first inquire from the utility owners listed regarding type of facility, line locations, size, material, manhole locations if any, specifications and requirements concerning the protection and support of their respective main, trunk lines, services lines and other appurtenances.

The costs of obtaining any required permits, protecting and supporting of all utility lines, including service and lateral lines shall be included in the various items of work and no additional compensation will be allowed. No utility line shall be removed from service without written permission from the Director. If permitted, then it is the CONTRACTOR’s responsibility to install temporary services as needed in the field and as approved by the Director at no cost to the CITY.

CONTRACTOR shall notify the Underground Service Alert (USA) giving at least 2 working days notice --- (800) 422-4133.

shall be the CONTRACTOR's responsibility to call, notify and make certain that utilities have responded to his notification. Damage to utilities, caused by failure to notify, is the CONTRACTOR’s sole responsibility.

85 SECTION 7 - SPECIAL PROVISIONS (Continued)
48 The CONTRACTOR shall arrange and coordinate his work to permit utilities to make any necessary adjustments required by the construction of the various items in this contract.

CONTRACTOR shall also protect facilities in place as shown on the plans or as marked in the field, and "To be relocated by others", in both original and relocated positions and any damage to such facilities shall be immediately repaired at no cost to the CITY.

When damage occurs to existing utilities, CONTRACTOR shall notify the Owner of the Utility and the Director immediately and take whatever action necessary to mitigate further damage to the utility and the surrounding area.

The CONTRACTOR is notified therefor, that he is responsible and liable for all costs in rectifying damages to any utilities caused as a result of his operations. At the request of the CITY, costs in rectifying such damages can be withheld or deducted from the final progress payment due to CONTRACTOR at the discretion of the Director.

All existing improvements, including utilities, shall be protected in place unless otherwise shown on the contract plans or approved by the Director. All existing improvements damaged by the CONTRACTOR in the performance of his work shall be replaced in its original or better condition.

This includes, but is not limited to landscaping, trees, irrigation lines, sprinklers, planters, foundations, walls, driveways, sidewalks, mailboxes, parking curbs, and utilities whether they are located on private property or within the public right-of-way.

Payment for pro tecting or removing and replacing all facilities, or coordinating utility adjustments, except for those items of work specifically included as separate bid items in the Bid Proposal shall be considered as paid for in the various contract items and no additional compensation will be allowed.

ARTICLE 17 - EXISTING HIGHWAY FACILITIES

All work performed on existing highway facilities shall be done in accordance with applicable sections of the Standard Specifications and other portions of these special provisi ons with the following modifications and additions:

A. Miscellaneous Highway Facilities

Care shall be taken in all work performed in the removal of all traffic signs, devices, barricades, posts, barriers, and guard railings. Such devices, etc., shall be carefully removed by the CONTRACTOR as shown on the plans or as directed by the Director , cleaned of all adhering materials and shall be stockpiled within project limits for reuse.

Payment for all labor, materials, tools, and equipment used in removing, cleaning, transporting, relocating, and doing all the work involved shall be included by the CONTRACTOR in various bid items, and no additional compensation will be allowed.

B. Damaged Portland Cement Concrete Removal and Replacement

Portland Cement Concrete (PCC) damaged by the CONTRACTOR’s operation shall be removed and replaced in kind. Work shall include all PCC curbs, gutters, cross gutters, spandrels, driveways, driveway approaches, slabs, sidewalks, decorative crosswalks, and all other miscellaneous PCC construction. Concrete shall be removed to neatly sawed edges with saw cuts made to a minimum depth of 1 inch. Concrete sidewalk or driveway to be removed shall be neatly sawed in straight-line parallels either to the curb or at right angles to the alignment of the 86 SECTION 7 - SPECIAL PROVISIONS (Continued)
49 sidewalk. No section to be replaced shall be smaller than forty-eight inches (48") in either length or width. If the saw cut in sidewalk or driveway would fall within forty -eight inches (48") of a construction joint, expansion joint, or edge, the concrete shall be removed to the joint or edge, except that where the saw cut would fall within twelve inches (12") of a score mark, the saw cut shall be made in and along the score mark. Curb and gutter shall be sawed to a depth of 1 (one) inch on a neat line at right angles to the curb face. PCC and all other material unsuitable for use as fill, as determined by the Director, shall be removed from the right-of-way and disposed of by the CONTRACTOR at a site of his own choice and he shall pay all costs incidental to the disposal.

Sharp edges left on concrete after saw cutting shall be ground in a manner acceptable to the Director.

Payment for portland cement concrete removal and replacement shall be included in the unit prices paid for the various items of work, that necessitated the PCC removal and no additional compensation will be allowed. Said payment shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals and performing all the work involved in excavating, removing, replacing, breaking, crushing, saw cutting, backfilling, loading, hauling and disposing of all material, and performing all the work involved. All PCC replacement shall conform to City standards and be in kind.

C. Remove and Restore Traffic Striping, Signing, Legends, Pavement Markings and Pavement Markers

Existing pavement markers shall be removed and disposed of when no longer required for traffic lane delineation due to construction.

Existing striping and pavement markings shall be removed by sand blasting. Existing pavement markers shall be removed prior to installation of AC overlay or slurry seal.

Sandblasting shall be used for the removal of painted traffic stripes and pavement markings and for removal of objectionable material. If such removal operation is being performed within ten feet (10') of a lane occupied by public traffic, the residue including dust shall be removed immediately after contact between the sand and the surface being treated. Such removal shall be by a vacuum attachment operating concurrently with the blast cleaning operation.

Nothing in these special provisions shall relieve the CONTRACTOR from his responsibilities as provided in Section 7-10, "Public Convenience and Safety", of the Standard Specifications.

Any depressions or voids left in the roadway as a result of removing the existing raised pavement markers will be filled with hot bituminous adhesive or as directed by the Director.

CONTRACTOR shall provide cat tracks for review prior to final application of striping. The City of Garden Grove shall have 24 hours (1 working day) review time to provide corrections to, or approval of, the cat tracks. All existing striping shall be restriped to satisfaction of the Director.

Full compensation for removing, disposing and restoring, traffic stripes and pavement markings - including filling voids or depressions created by removing pavement markers, shall be included in the contract lump sum price for the traffic signing and striping and shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals and performing all work involved, and no additional compensation will be allowed.

D. Damaged Asphalt Concrete Pavement Removal and Replacement

87 SECTION 7 - SPECIAL PROVISIONS (Continued)
50 Asphalt concrete ("A.C.") pavement shall be cut initially by saw cutting to full depth of A.C. at the limits of the removal prior to removal of A.C. A.C. damaged by the construction operation shall be removed and replaced as described in this provision at no cost to the CITY. After backfilling the excavation, the existing A.C. pavement shall be saw-cut again to full depth at a point not less than 12 inches outside the limits of removal as shown in the backfill and resurfacing detail. If the width of existing pavement between proposed A.C. saw cut and edge of adjacent P.C.C. curb and gutter is less than sixty (60) inches, this area shall be removed and new pavement shall be extended to the P.C.C. curb and gutter. All saw cuts should be along straight lines either parallel or perpendicular to line of removal. The use of pavement breaking equipment (stompers) is absolutely not allowed. The thickness of the existing A.C. pavement may be up to 12-inches thick.

The minimum street pavement replacement section for West Street and Chapman Avenue shall be existing plus one-half inch or 6-inches AC/11-inches AB, whichever is greater. The minimum street pavement replacement section for Wilken Way, Eugene Street, Candy Lane, Holyoak Lane, Timmy Lane and Debbie Lane shall be existing plus one-half inch or 4-inches AC/7-inches AB, whichever is greater.

Payment for replacement of pavement section shall be included in the unit prices paid for the various items of work, which caused such pavement section removal and no additional compensation will be allowed. Said payment shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals and performing all the work involved in replacing AC/ AB, street areas and areas damaged by construction and no additional compensation will be allowed.

ARTICLE 18 – CLEARING AND GRUBBING, REMOVALS AND RELOCATIONS Clearing and grubbing shall conform to the provisions of Section 300 of the Standard Specifications with the following modifications:

Clearing and grubbing shall include, but not be limited to the following:

1. Project mobilization/demobilization

2. Removal and disposal of trees and shrubs, all natural and artificial objectionable materials such as logs, upturned stumps, roots of downed trees, brush, grass, plants, weeds and all other surface materials within the limits of construction area.

3. Tree branches, which may interfere with normal construction, shall be trimmed or removed. If tree branch is to be removed, it shall be cut off to the boles in a workmanlike manner. The CONTRACTOR shall remove additional tree branches under the direction of the Director, in such a manner that the tree will present a balanced appearance. Scars resulting from the removal of branches shall be treated with a heavy coat of tree sealant approved by the Director.

4. Saw cut and removal of existing concrete structures including, but not limited to curb and gutter, median curb, cross gutter, spandrel, sidewalks, drainage channel, the removal of K-markers and relocation of traffic signs.

5. Grading, fill material, and compaction of fill material in the parkway areas, drainage channel and areas behind sidewalk.

6. Saw cutting and removal of existing asphalt concrete, aggregate base, native soil, PCC and reinforced PCC pavement as required to complete the project. 88 SECTION 7 - SPECIAL PROVISIONS (Continued)
51 7. Abandonment of existing water service connections at the water main.

Payment for furnishing all labor, equipment, materials, tools, and incidentals used in performing clearing and grubbing and as mentioned in this Article shall be considered as included in the lump sum price paid for Clearing and Grubbing, including Mobilization and Demobilization, and no additional compensation will be allowed.

Tree Roots Removal
Work shall consist of removal of existing tree roots in conformance with Section 300 of the Standard Specifications. The CONTRACTOR shall be responsible for obtaining a suitable disposal site for this material and shall, upon request, file with the Director the written consent of the Owner of the property upon which he intends to dispose of such material.

Removal shall consist of removing tree roots 1-1/2 inches in diameter and larger.

Holes resulting from the removal of tree roots shall be backfilled with soil from the surrounding area the same day the tree roots are removed and compacted to a minimum relative compaction of ninety percent (90%).

All removed tree roots shall be removed from the project site the same day.

Stockpiling of materials within the right-of-way, City parking lots, or other City-improved property shall not be allowed unless approved by the Director in writing.

Tree roots shall be removed in such a manner as not to injure or damage adjacent improvements, which are to remain in place. The CONTRACTOR shall not remove or damage fences adjoining property outside of the contract limits or City right-of-way. The CONTRACTOR shall exercise care in the protection of said fences and shall repair any damage caused by his operations.

No burning of materials will be permitted on the project site.

Payment for removal of existing tree roots shall be considered as included in the lump sum bid for Clearing and Grubbing, including Mobilization and Demobilization. It shall include full compensation for all labor, tools, equipment, incidentals, disposal of resulting material and for doing all the work involved in tree roots removal as required in the field, per these Special Provisions and as directed by the Director, and no additional compensation will be allowed.

Irrigation System Relocation
All irrigation systems disturbed by the construction operation shall be relocated to behind the right-of- way line. Relocated systems shall be operable and provide full coverage of the areas serviced by the system.

Existing system components may be reused as much as possible. However, new materials may be required to create a complete and working system and the expense shall be borne by the CONTRACTOR. Acceptability of the relocated system will be judged by its performance as described above.

The CONTRACTOR shall bear the cost of replacement of any parts lost or damaged during the construction operations.
89 SECTION 7 - SPECIAL PROVISIONS (Continued)
52 Payment for irrigation system relocation shall be considered as included in the lump sum price bid for Clearing and Grubbing, including Mobilization and Demobilization, and no additional compensation will be allowed.

Clearing, grubbing, miscellaneous removals, and relocations shall be paid for under the lump sum item for Clearing and Grubbing and shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for performing all the work involved in clearing, grubbing, removing, relocating and disposing of all the resulting materials. It also includes the removal of cross gutters, spandrel, curb and gutter, side walk, drive approach, PCC, abandon existing water services at main, replanting and reseeding, as shown on the Plans, as required in the field, as specified in these Specifications and Special Provisions, and as directed by the Director.

ARTICLE 19 – PERMITS AND IMPLEMENT RULE 1166

It is the CONTRACTOR’s responsibility to procure the encroachment permit and pay the requested permit fees within two weeks of the Notice to Proceed. The CONTRACTOR is responsible for all the permit requirements, including arranging for the inspections. Th e CONTRACTOR shall also be responsible for all the requirements of South Coast Air Quality Management Rule 1166. Full compensation for conforming to the requirements of this Article shall be considered as included in the contract price paid for implementing rule 1166 and obtaining Permits and no additional compensation will be allowed.

ARTICLE 20 - COMPLETION AND ACCEPTANCE

Upon receipt of the CONTRACTOR's written assertion that the work has been completed, the Engineer or his authorized representative will inspect the work for acceptance. Thereby a "punch list" is prepared and submitted to CONTRACTOR for compliance and/or repair.

The project is considered certifiable for completion; when all liens and/or claims for labor, materials, tools and equipment has been paid for and all liens and/or claims releases are received by the CITY, when all contract items of work have been completed, including changes to the plan in an acceptable workmanship; when all repairs to damages of existing utilities, appurtenances and improvements has been completed and accepted by the respective owners; when all survey monuments and other survey markers has been re- set and copy of center line ties been submitted; when the project site and all ground occupied by the CONTRACTOR left in a neat and presentable condition. The street shall be swept and washed with water. The CONTRACTOR prior to acceptance by the Engineer must complete all corrections noted in the “punch list”.

Full compensation for conforming to the requirements of this Article shall be considered as included in the contract prices paid for the various contract items of work and no additional compensation will be allowed.

90 Item 61/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Anand Rao
Dept:

City Manager Dept: Information Technology
Date: 2/24/2026

Subject: Authorization for the issuance of a purchase order to Knight Technology Group for the purchase of a backup storage server. (Cost: $31,659)(Action Item)

OBJECTIVE

To receive City Council authorization for the purchase of a backup storage server in the amount of $31,658.70 from Knight Technology Group.

BACKGROUND

The City currently utilizes several backup technologies to preserve data for IT systems to preserve changes, configurations, and backup copies of digital documents. One of the City systems uses a large file server to host various backups. The existing server was delivered May 2021 and is nearing the end of support and capacity. The City seeks to replace the existing system with a new, higher capacity server to accommodate added backup capacity, improved performance, and supported hardware. This newer configuration provides 130% growth capacity over the existing server (currently at 84% of capacity) and is expected to support the City through 2031.

DISCUSSION

The IT department solicited three quotes for a Supermicro Storage Server, storage drives, and extended manufacturer warranty and support. Three quotes were received with the same specifications. All quotes were reviewed and found to conform to specifications. The lowest quote was from Knight Technology Group. Due to recent tariff implementations and memory market conditions, server hardware prices have increased 15 -20% since initial budget estimates. All vendors confirmed these quotes reflect current market pricing and include tariff costs.

The quotes are as follows:

Vendor Price
Knight Technology Group $31,658.70
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Vendor Price
Prestige Innovation Technology $36,392.05
Coastline Micro $32,516.25

The vendors further confirmed that prices are fluctuating depending on equipment availability and the effect of tariffs. Were the City to proceed with a formal bid due to the prices coming in exceeding the $25,000 formal bidding threshold, the City would most likely not receive any bids, or would receive bids at substantially higher prices. Consequently, staff rec ommends that the City Council find that it is in the best interests of the City to waive formal bidding and approve the issuance of the purchase order as requested following the informal bidding process undertaken by staff.

FINANCIAL IMPACT

Total cost for the purchase of the storage server is $31,658.70. $30,719.63 will be funded by the Fiscal Year 2024 COPS Office Technology and Equipment Program (TEP), which was awarded to the City on September 30, 2024. The TEP funding is to be used for the purchase and installation of IT equipment for cybersecurity enhancement. The balance of $939.07 will be paid from the Information Technology Internal Service Fund.

RECOMMENDATION

It is recommended that the City Council:
● Authorize the request to dispense of the form al bidding process in the best interest of the City pursuant to Garden Grove Municipal Code 2.50.060(G); and
● Authorize the Finance Director, or designee, to issue a purchase order in the amount of $31,658.70 including a 10% contingency, to Knight Technology Group for the purchase of a backup storage server.

ATTACHMENT(S)

1. Knight Technology Group Quote

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94 Item 59/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Patricia Song
Dept:

City Manager Dept: Finance
Date: 2/24/2026

Subject: Receive and file warrants. (Action Item)

OBJECTIVE

For the City Council to receive and file the warrants.

BACKGROUND/DISCUSSION

Attached are the warrants recommended to be received and filed.

FINANCIAL IMPACT

Items listed in the warrants are budgeted.

RECOMMENDATION

It is recommended that the City Council:
 Receive and file the warrants.

ATTACHMENT(S)

1. 01302026

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102
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104
105
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Item 63/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Omar Sandoval
Dept:

City Manager Dept: City Attorney
Date: 2/24/2026

Subject: Introduction and First Reading of an Ordinance adding Chapter 6.48 to Title 6 of the Garden Grove Municipal Code prohibiting the sale and distribution of kratom products. (Action Item)

OBJECTIVE

For the City Council to introduce an ordinance prohibiting the sale and distribution of kratom products.

BACKGROUND

After the adoption of regulations by the County restricting the sale and distribution of kratom and nitrous oxide products, and a report by Supervisor Janet Nguyen presented to the City Council, the City Council directed the City Attorney to prepare an ordinance establishing similar regulations to apply in the City.

Kratom is a tropical tree native to Southeast Asia. Kratom leaves contain psychoactive compounds, including mitragynine and 7 -hydroxymitragynine (7-OH), which can produce stimulant effects at low doses and sedative effects at high doses. According to the Drug Enforcement Administration (DEA) and the National Institutes of Health (NIH), kratom use symptoms, dependence, and numerous side effects such as nausea, vomiting, sweating, tachycardia, seizures, hallucinations, and hepatotoxicity. According to the DEA, the abuse of kratom has increased markedly in recent years. Although kratom is often marketed for relief of pain, anxiety, opioid withdrawal, and fatigue, there are no FDA-approved medical uses for the substance. The FDA continues to monitor reports of adverse events, and current data suggest kratom's opioid-like properties may expose users to risks of addiction, abuse, and dependence. Kratom is not currently regulated at the federal level, nor is it prohibited statewide in California.

An informational fact sheet regarding kratom pre pared by the Orange County Health Care Agency is attached as Attachment 1. The California Department of Public Health consumer warning about 7-OH last updated January 2026 is attached as Attachment 2. The FDA has posted information about the following consumer information and reports on Kratom and 7- OH on the following webpage: www.fda.gov/7-OH
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Attachment 3 is the current FDA consumer advisory regarding 7 -OH. Attachment 4 is the July 2025 FDA report on an assessment of the scientific data and toxicolo gical concerns around the emerging opioid threat by 7-OH. Attachment 5 is the July 2025 letter to doctors warning about 7 -OH. Attachment 6 is the July 2025 FDA’s warning to firms marketing products containing 7-OH. Attachment 7 is the July 2025 FDA news release of taking steps to restrict 7-OH opioid products threatening American consumers.

Since the adoption of similar regulations in the County and nearby cities, the City has seen a proliferation of kratom products being displayed for sale, particularly in smoke shops, liquor stores, and gasoline convenience stores. Photos of sample kratom products found in City businesses are shown in Attachment 8.

DISCUSSION

The proposed ordinance attached as Attachment 9 will enact a prohibition on the sale and distribution of kratom products.

The ordinance prohibits individuals or businesses from selling, offering, providing, distributing or storing kratom products for commercial purposes.

FINANCIAL IMPACT

There is no financial impact in the adoption of this ordinance.

RECOMMENDATION

It is recommended that the City Council:
 Introduce and conduct the First Reading of an ordinance prohibiting the sale and distribution of kratom products and pass it to second reading.

ATTACHMENT(S)

1. Orange County Health Care Agency Public Information Fact Sheet re Kratom

2. CDPH re Kratom and 7-OH are Dangerous and Illegal to Sell or Manufacture

3. FDA Preventing the next wave of the opiod epidemic_ What you need to know about 7-OH

4. FDA Report on 7-OH opioid threat

5. FDA final_updated_7-oh_dear_colleague_letter_7-28-2025

6. FDA Issues Warning Letters to Firms Marketing Products Containing 7-OH

7. FDA Takes Steps to Restrict 7-OH Opioid Products Threatening American Consumers _ FDA

8. Kratom Photos Attachment

9. Ordinance

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KRATOM & 7-OH: What You Don’t Know Can Hurt You
Learn the risks. Protect yourself and your family.

What is Kratom?
Kratom is a plant-based substance made from the leaves of a Southeast Asian tree called Mitragyna speciosa. People often use it to boost mood, ease anxiety or depression, or relieve pain. It is sold in many forms like capsules, tablets, powders, teas, gummies, and liquids and is available at smoke shops, gas stations, convenience stores, grocery stores or online.

General side effects from use of kratom can include nausea, constipation, dizziness, dry mouth, sleep issues, nervousness, restlessness, slowed breathing, sweating, or vomiting.

7-OH (also known as 7-Hydroxymitragnynine) is a powerful compound found in small amounts in kratom. It acts like an opioid and can slow breathing, especially when mixed with other substances. This can lead to serious side effects like drowsiness, vomiting, seizures, or even death. 7-OH is addictive, and some products contain high levels of it but are falsely sold as kratom.

The FDA has not approved kratom or any products containing 7-OH (7-hydroxymitragynine) for treating pain, mood disorders, or withdrawal symptoms and warns against use due to risk of dependence, addiction and adverse effects. These substances are not legal as drugs, dietary supplements, or food additives in the U.S., and their safety and effectiveness have not been proven.

Unpredictable
Kratom is not regulated, so you don’t know how much you are getting or what else is mixed with it. Bacteria and heavy metals like lead have been found in kratom.

Addiction Risk
Higher, regular doses can be highly
addictive and hard to quit.

Overdose Risk
Kratom can slow down breathing; taking kratom with other drugs like alcohol, fentanyl, other opioids, or benzodiazepines is especially dangerous – together the effects can cause death.

Risk of Death
Fatal overdoses have been linked
to kratom in California and across
the U.S.

Behavioral Health Services | www.ochealthinfo.com | Dev. 10/2025 - Know before you buy – Avoid buying or consuming products with 7-OH or Kratom even if they are labeled as “natural” or “herbal. ” - Call the Poison Help Line 1-800-222-1222 if you believe someone is having a bad reaction to Kratom or 7-OH products. - If someone is not breathing / has signs of an overdose, dial 911 immediately and administer Naloxone if available! Reach out for support and treatment services: OCNavigator.org or OC Links (855) 625-4657.

Facts About Kratom and 7-OH
What Can I Do?
How is 7-OH Related to Kratom? About
Kratom and 7-OH
7-OH, short for 7-hydroxymitragynine, is a powerful and dangerous opioid-like substance made from the kratom
plant. It is sold in many forms - tablets, gummies,
supplements, energy drinks and shots. On the street, it can be called 7-Hydroxy, 7-OHMG and ‘7”

An "Emerging Opioid Threat"
The FDA is working to block 7-OH products and warns
people not to use kratom or 7-OH because of the risks to health including liver problems, seizures, overdose,
substance use disorders and death.
7-OH can be 13 times
stronger than the opioid
morphine

https://samhsa.gov
https://www.fda.gov/news-events/public-health-focus/fda-and-kratom https://nida.nih.gov/research-topics/kratom

120
Foods, Dietary Supplements and Medical
Drugs containing Kratom and 7-OH are
Dangerous and Illegal to Sell or Manufacture
for Consumption
October 24, 2025
NR25-16
CDPH Advises Consumers to Avoid Using Kratom or 7-OH Products, Continues to Remove Kratom from Manufacturers and Retailers
What You Need to Know: CDPH is warning consumers that foods and other products containing kratom and 7-OH are illegal to sell or manufacture for consumption* and may result in addiction, serious harm, overdose, and death.

Despite their wide availability, these products are illegal to sell for consumption and cannot be sold online or in stores.

SACRAMENTO – The California Department of Public Health (CDPH) is warning consumers about products containing kratom and 7-hydroxymitragynine, commonly known as 7-OH, a potent opioid product derived from the kratom plant. These products may lead to addiction, serious harm, overdose, and death. Since April 2025, Los Angeles County Department of Public Health reported six fatal overdoses linked to 7-OH. “Although illegal to sell or manufacture for consumption, we are still finding kratom and 7-OH products for sale in gas stations, smoke shops, online and other retailers. While these products are sometimes marketed as natural remedies, they are dangerous and can result in fatal overdoses,” said Dr. Erica Pan, CDPH Director and State Public Health Officer. “The best way to protect yourself is to avoid using 7-OH and kratom-related products.” Neither kratom nor 7-OH can lawfully be marketed in the United States as a drug product, dietary supplement or food additive. Claims that kratom and 7-OH products can treat pain, anxiety and opioid withdrawal are unproven.

Side effects of kratom and 7-OH include withdrawal symptoms, insomnia and anxiety, seizures and fatal respiratory depression.

What CDPH is doing to protect Californians
CDPH has been conducting investigative work associated with kratom for many years and continues to take action to remove products or raw materials containing kratom or 7-OH from retail facilities selling to consumers and from manufacturing locations. Once these products are identified during an investigation, they are embargoed or destroyed.

What you can do to protect yourself:

Avoid buying or consuming products with kratom or 7-OH. Many kratom or 7-OH products are designed to look like candies, treats or “healthy" products. Kratom and 7-OH products are typically sold as beverages, shots, powders, tablets, capsules and gummies. Examine the packaging and label so you do not accidentally buy or consume kratom or 7-OH.

Carry naloxone. Naloxone is a life-saving medication used to reverse an opioid overdose, including overdose related to heroin, fentanyl, prescription opioid medications, or 7-OH. Californians can purchase CalRx® over- the-counter naloxone HCL for $22.50 per twin pack directly. 121
Page Last Updated : January 7, 2026
If you or someone else is experiencing any ill effects after consuming kratom or 7-OH products contact Poison Control at 1-800-222-1222 or online at www.poisonhelp.org, or consult a health care provider.

Know the signs of an overdose and how to respond. If someone is unresponsive, administer naloxone and call 911 immediately, keep the person awake and breathing, lay them on their side to prevent choking and stay with the person until 911 responders arrive.

Anyone who finds kratom or 7-OH products for sale for consumption should call the CDPH Complaint Hotline at (800) 495-3232 or submit an electronic report here.
*This news release was revised on Jan. 7, 2026 to reflect "for consumption".

122
Preventing
The Next Wave
of the Opioid
Epidemic:

What You
Need to
Know About
7-OH
123
2 Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH The Opioid Epidemic is Evolving with 7-OH. We Can
and Must Act Now to Prevent a New Wave.
1990 2005 2015 2025
Rx
Pills
Heroin
Fentanyl 7-OH
We are
here
Note: The next potential phase of the opioid crisis may be defined by the emergence of novel synthetic opioids like 7-OH, combined with an increasing prevalance of concurrent use of opioids and other controlled substances. 124
Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH 3 7-OH is Engineered to be Addictive. It is a Potent
Opioid by Design.

Rx Pills Heroin
Fentanyl 7-OH
7-OH (formally known as
7-Hydroxymitragynine) is a
powerful psychoactive compound
that occurs naturally in very small
amounts in the Kratom plant.
7-OH products are concentrated
derivatives often falsely marketed
as Kratom.

Street names include 7-Hydroxy,
7-OHMG and ‘7’.
125
4 Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH This Opioid is not Prescribed or Purchased on the
Street - It’s Sold like Candy at Retail Stores and Online.

What began as doctor-
prescribed painkillers migrated
to back-alley dealers when
prescriptions dried up. Opioids
have disturbingly gone
mainstream with 7-OH—no
prescription needed, no dealer
required. This dangerous opioid
is sitting on store shelves,
making gas stations and
convenience stores risky places
where kids can purchase these
drugs as easily as buying candy.
126
Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH 5 Hiding in Plain Sight: 7-OH Products are Designed to
Look Like Everyday Treats Like Gummies, Candies and
Ice Cream.

Note: These images are select illustrative examples and do not represent the full scope of 7-OH products on the market. Consumers should read packaging and labels carefully to determine whether a product contains 7-OH. 127
6 Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH High Risk
Crushed/Powdered Leaves
with Natural 7-OH Levels
Kratom 7-OH Significantly
Concentrated Extract
While Some 7-OH Products are Marketed as Natural
Kratom, They are Not the Same. 7-OH Presents
Significant Risks.
“Enhanced” or “spiked” kratom products may appear to be natural leaf, but actually contain as much as 500% more 7-OH than would be expected naturally. 7-OH is 13x
more potent
than morphine.
128
Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH 7 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1800
1600
1400
1200
1000
800
600
400
200
0 Poison Center Cases Involving Kratom-related Products Number of Cases
Poison Control is Sounding the Alarm on 7-OH.

American families are reporting side effects such as dependency, withdrawals, overdose and even death.

Note: Kratom-related products refers to a broad category of botanical kratom products and other kratom-derived products, including an unknown number of 7-OH involved cases; a classification code for 7-OH products was added to the National Poison Data System only in February, 2025. *Data r eflect partial year.

In 2025*, approximately
40% of 7-OH reports
were among individuals
abusing the drug.
129
8 Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH There is No Safe Swap. 7-OH is an Opioid, Not an
Alternative for Approved Treatments.

Kratom-related products, including 7-OH, are not safe or approved treatments for opioid or SSRI (selective serotonin reuptake inhibitors) withdrawal symptoms, chronic pain, or to treat depression, anxiety and other mood disorders.
130
Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH 9 • Avoid buying any products
with 7-OH.
• When buying candy or other
treats for you or your family,
examine the packaging and
label so you don’t accidentally
buy a treat containing 7-OH.
• Talk to your health care
professional if you need help
with opioid addiction,
anxiety, mood disorders,
pain, or other ailments.

If you believe someone is
experiencing an adverse event from
a 7-OH product, contact the Poison
Help Line (1-800-222-1222) or visit
www.poisonhelp.org for help.

If someone is unresponsive,
dial 911 immediately!
Protect You and Your Family
131
10 Preventing The Next Wave of the Opioid Epidemic: What You Need to Know About 7-OH Even better than rolling back a public health
crisis would be never having one in the first
place: Let’s not allow 7-OH to drive the next
wave of the U.S. opioid epidemic.
- Marty Makary, M.D., M.P.H., FDA Commissioner
132
Scan the QR code or visit fda.gov/7-OH for
additional resources and to learn more.
133
7-Hydroxymitragynine (7-OH):

An Assessment of the Scientific Data and
Toxicological Concerns Around
an Emerging Opioid Threat
134

7-Hydroxymitragynine (7-OH):

An Assessment of the Scientific Data and
Toxicological Concerns Around
an Emerging Opioid Threat
1 135

FDA Center for Drug Evaluation and Research
Authors
Chad J. Reissig, PhD, Supervisory Pharmacologist, Controlled Substance Staff (CSS), CDER Dominic Chiapperino, PhD, Director, CSS, CDER
Amy Seitz, PhD, MPH, Team Lead for Nonmedical Drug Use Team 3, Division of Epidemiology II (DEPI), Office of Pharmacovigilance and Epidemiology (OPE), Office of Surveillance and Epidemiology (OSE), CDER
Regina Lee, Pharm.D., Safety Evaluator, Division of Pharmacovigilance II, OPE, OSE, CDER Rose Radin, PhD, Associate Director for Science, DEPI, OPE, OSE, CDER Jana McAninch, MD, MPH, MS, Associate Director for Public Health Initiatives, OSE, CDER Acknowledgments
Matthew Daubresse, DrPH, MHS, Epidemiologist, DEPI, OPE, OSE, CDER Tamra Meyer, PhD, MPH, Associate Director for Nonmedical Drug Use, DEPI, OPE, OSE, CDER Marta Sokolowska, PhD, Deputy Center Director for Substance Use and Behavioral Health, CDER
2 136

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................................4 INTRODUCTION.........................................................................................................................................5 The Context for 7-OH Concerns ......................................................................................................5 Contemporary Outlook ......................................................................................................................5 ANALYSIS OF DATA ON 7-HYDROXYMITRAGYNINE (7-OH).............................................................7 7-OH Sources and Products vs. Kratom .........................................................................................7 Patterns of 7-OH Use, Human Exposures, and Law Enforcement Data .....................................9 Preclinical Data Characterizing 7-OH Pharmacology..................................................................13 CONCLUSIONS........................................................................................................................................18 REFERENCES ...........................................................................................................................................19 3 137

EXECUTIVE SUMMARY
Recent reports indicate increased availability and marketing of 7-hydroxymitragynine (7-OH) in the U.S., raising public health concerns due to its pharmacology. This report provides an overview on the chemical, pharmacological, and epidemiological data on 7-OH. It focuses on the characterization of 7-OH-containing products in the marketplace, the evidence of increasing human exposures, and the extensive body of preclinical studies in the scientific literature that indicate the predominant mu opioid agonist pharmacology of 7-OH. These data sources indicate that 7-OH is a potent opioid that poses an emerging public health threat, especially when considering the increasing availability of enhanced or concentrated 7-OH products in the marketplace.
7-OH is a naturally occurring substance in the kratom plant (Mitragyna speciosa), but only a minor constituent that comprises less than 2% of the total alkaloid content in natural kratom leaves. However, 7-OH demonstrates substantially greater mu-opioid receptor potency than kratom’s primary alkaloid constituent mitragynine, as well as other classical opioids such as morphine. In vitro studies reveal 7-OH exhibits high binding affinity for mu-opioid receptors (Ki =

7.2-70 nM), with functional activity as a mu agonist. Animal behavioral studies demonstrate its rewarding effects from self-administration and conditioned place preference methods, consistent with its opioid properties. Critically, 7-OH produces respiratory depression, physical dependence, and withdrawal symptoms characteristic of classical opioids, such as morphine, fentanyl, oxycodone, and hydrocodone.

Recently, there has been a concerning proliferation of concentrated 7-OH products that are sold over the counter and online. The enhanced amount of 7-OH in these products is likely synthetically derived through oxidate chemical conversion of mitragynine isolates or kratom extracts. Given the trace amounts of 7-OH that are naturally present in kratom, direct extraction of 7-OH from plant material would simply be unfeasible economically.

Surveillance data from multiple sources, including America’s Poison Centers National Poison Data System (NPDS), Drug Enforcement Administration toxicology testing programs, and social media monitoring, suggest increasing human exposure to these concentrated 7-OH products.

Clinical presentations include euphoria, sedation, respiratory depression, and opioid-like withdrawal syndromes, with users acknowledging its significant addiction potential.

The pharmacological profile, abuse liability, and emerging patterns of non-medical use establish 7-OH as a dangerous substance. Current regulatory gaps have enabled widespread availability of these products despite their opioid-like properties and necessitate immediate policy intervention to address this emerging threat to American public health. 4 138

INTRODUCTION
The Context for 7-OH Concerns
7-Hydroxymitragynine (7-OH) is a component of the plant kratom (Mitragyna speciosa), a tropical evergreen tree in the Rubiaceae family that grows in the wetlands of Southeast Asia (Brown et al., 2017). Kratom leaves contain over 50 alkaloids, with mitragynine and 7-OH being the primary psychoactive constituents (Warner et al., 2016). Its leaves, consumed as a tea or in dry leaf form, have been used for centuries in both medicinal and recreational settings, largely due the properties of its alkaloids mitragynine and 7-OH. Typically, 7-OH occurs in botanical kratom in amounts no more than ~.01-.04 percent by dry weight (Heywood et al., 2024).

Medicinally, kratom has been used to treat headaches, diarrhea, insomnia, anxiety, opioid use withdrawal, and more, while in recreational use cases, it has been associated with feelings of euphoria (Hill et al., 2025). Currently, there are no FDA-approved drugs containing kratom or kratom-derived drug substances such as 7-OH for any therapeutic indications.

Kratom products have grown in popularity since the mid-2000’s; however, kratom, mitragynine, and 7-OH have faced regulatory scrutiny in the United States due to concerns about their safety and potential for abuse. None of these substances are lawful when added to conventional foods, as dietary supplements, or as ingredients in any FDA-approved drug, and yet, these substances are still sold in various markets. At the state level, some jurisdictions have implemented restrictions on their sale and use. Until now, 7-OH has not been the sole target of a regulatory response but has always been addressed alongside the kratom plant and mitragynine.

FDA issued its first import alert for kratom in 2012. At the time, kratom was being marketed in various forms for human consumption despite a lack of approved drug uses or established safety as a dietary ingredient. In the years since, additional import alerts have been issued by the Agency. The Drug Enforcement Administration (DEA) and the Department of Health and Human Services (HHS) had given consideration to kratom, as well as its constituents, mitragynine and 7-OH, to determine whether these substances should be recommended for control under the Controlled Substances Act (CSA). Those actions were ultimately suspended in 2018, with the Assistant Secretary for Health at that time stating that the science was incomplete, and the available data were not adequate to support a recommendation to control these substances under the CSA.

Contemporary Outlook
Given the concerning trends with 7-OH and other kratom-related products, FDA has now determined that a more comprehensive assessment of available scientific and medical data on 7-OH is warranted. Many of the products available today, which are often associated with or advertised as kratom, no longer resemble botanical kratom. Instead, they contain “enhanced” or concentrated amounts of 7-OH and are formulated as powders, capsules, and liquid extracts designed to generate a stronger effect on users. Other products are explicitly advertised as 7- OH-containing products. One analysis of websites selling 7-OH products found that most (82.2 %) were formulated as chewable/sublingual tablets, shots, or gummies and marketed specifically as 7-OH only products (92%). The mean cost per recommended dose/serving was $3.97 (Hill et al., 2025).
5 139

As described below, research has shown that 7-OH is a potent mu-opioid receptor agonist, demonstrating pharmacological characteristics that define classical opioids like morphine and fentanyl. Based on its opioid pharmacology, there is significant potential for abuse of 7-OH. In fact, in various preclinical studies it has demonstrated greater potency than classical opioids.

For example, 7-OH produces respiratory depression with more than 3-fold greater potency than morphine. Since the substance’s therapeutic and psychoactive effects are mediated through the same mu-opioid receptor pathways as classical opioids, it can be considered to have opioid properties warranting similar regulatory consideration (Hill et al., 2025; Obeng et al., 2021).

In this report, FDA presents its new assessment of the available scientific data and literature on 7-OH, as well as more recent law enforcement data and the rapidly evolving trends in kratom- related products. FDA still has concerns about the safety of kratom products more broadly and the unlawful marketing of them under several regulated product categories in the Federal Food, Drug, and Cosmetic Act. However, there is a recognized need for more immediate action to address 7-OH because it is a substance with potent mu opioid agonist properties and significant abuse liability.
6 140

ANALYSIS OF DATA ON 7-HYDROXYMITRAGYNINE (7-OH)
7-OH Sources and Products vs. Kratom
The alkaloid 7-hydroxymitragynine (7-OH) is a naturally occurring substance in the kratom plant (Mitragyna speciosa), but only a minor constituent, described as early as 1994, when it was reported to comprise about 1.6% of the total alkaloid content of kratom leaves (Ponglux et al., 1994). This early reported value is in agreement with more recent assessments that have consistently demonstrated 7-OH as comprising less than 2% of the total alkaloid content in natural kratom as noted below.
7-OH has the chemical structure shown in Figure 1. Its IUPAC name is methyl (E)-2- [(2S,3S,7aS,12bS)-3-ethyl-7a-hydroxy-8-methoxy-2,3,4,6,7,12b-hexahydro-1H-indolo[2,3- a]quinolizin-2-yl]-3-methoxyprop-2-enoate, and it has the molecular formular C23H30N2O5, with a molecular weight of 414.40 amu.

N
N
O
O
O
O
HO
Figure 1. 7-Hydroxymitragynine Chemical Structure
Although details are not well-known, 7-OH is present in some products in amounts far exceeding its natural levels in the kratom plant. The 7-OH in these products is likely derived from the kratom plant. These 7-OH-enhanced products likely involve additional chemical synthetic steps by the producers of these products, converting the more abundant plant alkaloid mitragynine into 7-OH via chemical oxidation.

Data are available regarding 7-OH as a percentage of the total alkaloid content in kratom, and also as a percentage of dried botanical kratom leaf material and other kratom-derived products in the U.S. marketplace. One recent review reports 7-OH as comprising 2% of the total alkaloid content in kratom (Hossain et al., 2023) and this result can be extended to samples of kratom grown in the U.S. (Leon et al., 2009). In another analysis of 13 commercial products purported to contain kratom, the 7-OH content by weight ranged from 0.01-0.04% (Kikura-Hanajiri et al., 2009) a finding in agreement with others that have reported 7-OH to account for less than 0.05% by weight, substantially lower than reported mitragynine amounts (Kruegel et al., 2019). A more 7 141

recent study used ecological momentary assessment to evaluate the motivations and patterns of use of adult U.S. kratom consumers (Smith, Panlilio, Feldman, et al., 2024; Smith, Panlilio, Sharma, et al., 2024). As part of the study, subjects provided samples for quantitative testing of their own kratom products that they obtained and were self-administering. Across the 341 samples, the 7-OH content (expressed as a percentage by weight/weight or weight/volume, as indicated) ranged from below the limit of quantitation (< 0.005%) to a maximum of 0.21% with a mean of 0.01% (Sharma et al., 2025). These data suggest 7-OH is present in botanical kratom (i.e., leaf) at relatively low or trace amounts and may be a postharvest oxidative derivative of mitragynine (Karunakaran et al., 2024).

Common forms of kratom sold online include powders, capsules, resin extracts, crushed leaves, and tablets, although loose powder and prepared capsules have been reported to be the most frequently used formulations (Garcia-Romeu et al., 2020; Smith, Panlilio, et al., 2024). While kratom use characteristics are complicated by the diversity of products in the marketplace, survey studies have reported on consumption patterns. Garcia-Romeu collected data from regular kratom users and found that most users reported using 1-3g (49%) or 4-6g (33.4%) of botanical kratom per consumption (Garcia-Romeu et al., 2020). In other survey studies, the self- reported average consumption of kratom powder was 4-5 g per serving with serving sizes ranging between 2.6- 7.5 g (Rogers et al., 2024; Smith et al., 2022). When quantifying the amount of mitragynine consumed through the use of kratom, individuals self-reported consuming an average of 31.3 mg of mitragynine/serving and a range of 78.3 – 134.6 mg of mitragynine per day (Sharma et al., 2025).

Mitragynine, as the most abundant alkaloid in kratom, accounts for about 66% of the total alkaloid content of kratom and less than 2% of dried leaf content by weight, although there are reports of regional and seasonal variability in the tree’s alkaloid composition (Arndt et al., 2011; Leon et al., 2009; Sengnon et al., 2023). For example, Chear and colleagues collected fresh kratom leaves from different locations in Peninsular Malaysia and determined their alkaloid profiles. The mitragynine concentration ranged from 9.38 to 18.85 mg/g or 0.38% to 1.89% of dried leaf weight while the 7-OH concentration ranged from 0.05 to 0.15 mg/g or 0.005% to

0.015% (Chear et al., 2021).

Despite the low amounts of 7-OH in botanical kratom, there are reports of its more-enhanced presence in commercial kratom-related products (Grundmann et al., 2024), although some products have been identified in reports from nearly a decade ago. For example, Lydecker and colleagues tested eight commercially available kratom products for their alkaloid content(s). In seven of the eight products tested, they found levels of 7-OH to be 109-509% higher than expected, based on naturally occurring levels of 7-OH reported in the kratom plant (Lydecker et al., 2016). More recently, the Tampa Bay Times purchased twenty kratom-derived products from local stores. One of those products consisted of pressed pills and contained 15 mg/pill of 7-OH, an amount far greater than observed in any botanical kratom preparation to date (Ogozalek, 2023). In addition to the verified amounts of 7-OH in the products obtained by Lydecker et al. and the Tampa Bay Times, other products labeled and/or purported to have high levels of 7-OH appear to be readily available for purchase online.

In summary, the low amounts of 7-OH in natural botanical kratom products is well-established as a percentage of alkaloid content, as a percentage of dried kratom leaf material, and in products representing other dosage forms made from natural kratom and consistent with its natural 8 142

composition. However, there are also a concerning and increasing number of products being sold that have unexpectedly and unnaturally high levels of 7-OH. This poses a threat to public health that is more clearly understood based on the pharmacological properties and effects of 7- OH, discussed in the preclinical data section below, and also in the limited information available on known patterns of human use and resulting harms discussed below. These sections will present and discuss the evidence in the available data that establishes the mu opioid agonist pharmacology associated with 7-OH in particular.

Patterns of 7-OH Use, Human Exposures, and Law Enforcement Data There are several sources of information to characterize the current patterns of 7-OH use and the resulting harms to individuals who knowingly or unknowingly are exposed to 7-OH at significant doses from 7-OH-enhanced products, as described in the subsections below.

National Drug Early Warning System (NDEWS)
The National Drug Early Warning System (NDEWS) provides real-time surveillance from sentinel sites across U.S. to detect early signals of potential drug epidemics using novel (e.g., street reporting, web monitoring) and traditional data sources (e.g., OD deaths, treatment admissions).

NDEWS analyzed Reddit posts mentioning 7-OH during January to September 2024 and found that posts increased over this time. These posts are broad and can vary in content but have included warnings from Reddit users about respiratory depression, potency, dependence and long-lasting withdrawal (NDEWS, 2024).

Social Media
A variety of social media outlets were assessed for mentions and/or discussions of 7-OH.

Websites included:
• erowid.org - a member-supported organization providing access to information about psychoactive plants, chemicals, and related issues;
• bluelight.org - an international message board that educates the public about responsible drug use by promoting free discussion, advocating harm reduction, and attempting to eliminate misinformation;
• reddit.com - online forum that functions as a vast collection of user-driven communities, known as sub-Reddits, each centered around specific topics.

It is important to note that all considerations of these social media sources are, at best, anecdotal in considering the risks and abuse potential associated with 7-OH products.

However, it is clear that there is fairly widespread understanding of the availability of products specifically targeting high levels of the substance 7-OH, distinct from kratom products generally.

In analyzing these social media posts, some relevant themes have been identified and include mention of the following: euphoria and an opioid-like “buzz”/high as motivation for consuming 7- OH; availability of “candy-like” formulations which users acknowledge as having a risk of overconsumption to their own detriment; perceptions of therapeutic value of 7-OH in self- treating pain and anxiety; concerns over loss of access to these products if they were to be banned; acknowledgement that use of these products could lead to overdose and serious 9 143

outcomes including death; and acknowledgement that use could lead to addiction and has caused users to experience withdrawal symptomology much like that produced by other commonly abused opioids.

Drug Enforcement Administration Toxicology Testing Program (DEA TOX) The Drug Enforcement Administration Toxicology Testing program (DEA TOX) conducts analyses of voluntarily submitted leftover or previously collected biological samples from drug overdose victims to identify novel psychoactive substances (NPS) and other drugs of abuse in subjects with fatal and nonfatal overdose. The DEA TOX database was queried for reports of mitragynine, 7-OH, or mitragynine pseudoindoxyl from 2019-2025. A total of 103 cases, some fatal and some non-fatal, were identified in this selected sample; this database does not include all overdose cases, and the number of samples voluntarily submitted for analysis may vary year to year based on unknown factors.

It is notable that the utility of the DEA TOX data is limited because it generally cannot be discerned whether deaths are related to mitragynine, 7-OH, or mitragynine pseudoindoxyl, or some combination thereof. In addition, although 7-OH and mitragynine pseudoindoxyl are not typically found in appreciable amounts in fresh kratom leaves (Hill et al., 2025), both are metabolites of mitragynine, complicating forensic assessments of causality (Kamble et al., 2020).

These are significant limitations in making inferences from these data; however, the number of fatal overdose cases in which one or more of these substances were detected for 2023 to 2025 are approximately three-fold higher than for the years 2019 through 2022, coinciding with the more recent entry of more-concerning kratom-related products in the marketplace, such as 7- OH.

Human Exposures in Pharmacokinetic Studies
Pharmacokinetic (PK) data for 7-OH are sparse, as to our knowledge, no clinical studies have been performed using isolated or purified 7-OH. Nonetheless, there are 7-OH PK data derived from a small number of studies using botanical kratom. Most available clinical PK data for 7-OH are variable, which may be for several reasons such as genetic differences in kratom plants, different formulations (e.g., teas, capsules, etc.), and methods of analysis. Much of the data is also from non-controlled studies making it difficult to interpret the results. Huestis and colleagues conducted a randomized, between-subject, double-blind, placebo-controlled dose escalation study of 500-4000 mg encapsulated dried kratom leaf powder corresponding to mitragynine doses of 6.65-53.2 mg. Twelve subjects enrolled in the study (n=12). Blood plasma levels of mitragynine and 7-OH were assessed after a single dose, and then again after 15 days of continuous dosing. According to the study authors, peak plasma levels of 7-OH (i.e., C
maxvalues) and exposure (i.e., area under the curve, (AUC)) were lower than mitragynine but increased in a dose proportional manner and ranged from 3.6 to 22.7 ng/mL while the time to peak plasma levels (i.e.,Tmax values) ranged from 1.2 – 1.8 h. The half-life of 7-OH increased with increasing dose and ranged from a mean of 1.7 to 4.7 hours. During the multiple dose phase of the study, 7-OH steady state was reached in about 7 days (Huestis et al., 2024).

In another study examining the PK properties of 7-OH, sixteen healthy subjects (n=16) received kratom tea containing 23.6 mg of mitragynine. Subjects were administered tea in two sessions:
once with tea alone, and in a second session following pretreatment with itraconazole, a 10 144

CYP3A4 inhibitor. The 7-OH Cmax was 12.81±3.39 ng/mL which occurred 1.7 h after administration (Tmax). In the second session after pretreatment with itraconazole (200 mg), the Cmax decreased 56% with a concomitant 43% decrease in AUC. These data describe the PK of 7-OH and demonstrate that the metabolism of mitragynine to 7-OH is heavily dependent on CYP3A4 (Mongar et al., 2024).

Tanna et. al., assessed the PK of a single orally administered dose of kratom (2 g), in the form of a tea, to healthy adult subjects (n = 5 completers). According to the authors, there were only trace amounts of 7-OH (< LOQ) in the starting product, therefore, the assumption was made that 7-OH was generated from the metabolism of mitragynine in vivo. The authors identified a PK difference between enantiomers of kratom alkaloids in either the 3S or 3R configuration. 7-OH has a 3S configuration which, according to the authors, leads to a shorter T max, lower exposure
(AUC), longer terminal half-life, and a higher volume of distribution during the terminal phase compared to the 3R alkaloids. Measured 7-OH in plasma samples demonstrated that 7-OH had a Cmax = 16.1 nM, Tmax = 1h, half-life = 5.67h, and an AUC0-120h = 103nM x h.(Tanna et al., 2022).

Epidemiological Data Sources
Limitations with the Epidemiological Data Sources
Because 7-OH appears to be a novel, emerging public health threat, the ability of public health surveillance systems to monitor 7-OH specific risks may be limited. For example, large national surveys such as the National Survey on Drug Use and Health include questions about use of kratom, but not 7-OH. Additionally, there may be a lack of awareness among consumers of kratom-related products that they are obtaining 7-OH enhanced products, and thus use of 7-OH would likely be underreported in data collected using self-report. Many forensic laboratories test for mitragynine as a marker of kratom use. In these cases, 7-OH overdose cases and fatalities may incorrectly be classified as kratom and/or mitragynine-related (Smith, Boyer, et al., 2024). Furthermore, toxicology reports documenting presence of 7-OH are difficult to interpret, because 7-OH is a known metabolite of mitragynine in humans. All of these issues complicate the real-world assessment of risks associated with use of 7-OH containing products as distinct from risks associated with kratom and other mitragynine-containing products.

FDA’s Adverse Event Reporting System
Although FDA’s Adverse Event Reporting System (FAERS) has documented cases reporting adverse events (13 cases, including 2 deaths) suspected to involve 7-OH, ambiguity about the contributory role of 7-OH from uncharacterized products or concomitant medications and underlying disease limits interpretation. Therefore, we do not include further analysis of these FAERS cases here.
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- -
America’s Poison Centers, National Poison Data System
National Poison Data System (NPDS) receives near real-time data from the nation’s poison centers (PC), providing information and assistance to callers on exposures to prescription drugs, over-the-counter medications, unapproved products, and other substances. PC healthcare professionals systematically follow up on exposure cases to document medical and clinical effects. Quality control measures are used to ensure data accuracy and completeness. Notably, 7-OH specific NPDS codes were only recently added (Feb-May 2025), and therefore the NPDS reporting period is limited to 2/1/2025-4/30/2025. As shown below, there were a total of 53 exposure cases involving 7-OH during this time period, the majority of which involved abuse- related reasons for use (i.e., “intentional abuse”). Most single-substance 7-OH exposure cases resulted in minor or moderate clinical outcomes, with several documented has having major clinical outcomes.

Table 1. National Poison Data System Closed Human Exposure Cases*, 2/1/2025-4/30/2025
Number of
exposure
cases**
Number of
abuse
cases**
Single
substance
exposure cases
Single substance
abuse cases
Total cases involving 7-OH 53 24 37 16
Reason
Adverse drug reaction 4 2
Intentional- abuse 24 16
Intentional- misuse 4 3
Intentional - Suspected suicide 2 0
Other – Withdrawal 8 6
Unintentional – general 4 4
Unintentional- misuse 1 1
Unintentional therapeutic error 4 3
Unknown reason 2 2
Related clinical outcomes
Minor 6 3
Moderate 13 6
Major 3 1
Not followed, minimal clinical
effects possible 5 3
Unable to follow, judged as
potentially toxic exposure 1 0
Age
<18 years 6 1 5 0
≥ 18 years 46 23 32 16
Unknown age 1 0 0 0
*Excludes cases classified as 'confirmed non-exposure’
**Cases may involve other substances, besides 7-OH
Related clinical outcomes include cases with clinical effects deemed “related” to exposure based on timing, severity, and assessment of clinical effects by Poison Center Specialists. Definitions available from America’s Poison Centers: NPDS Full Report 2023. Page 235.
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Note: This analysis used the case listing data in NPDS to identify and characterize cases documented as involving 7-OH. As of July 2025, an in-depth review NPDS case narrative data was ongoing; this further review may yield different numbers from those presented here.

Summary of Epidemiological Data and 7-OH Concerns
Available surveillance data indicate that abuse of 7-OH is occurring and is associated with serious harms; however, as noted previously, it is difficult to quantify the public health burden because surveillance systems do not provide estimates for the prevalence of 7-OH use and are only beginning to track the specific involvement of 7-OH enhanced products in exposure cases and overdoses. The current epidemiologic data on 7-OH exposures often lack sufficient detail to distinguish with confidence involvement of botanical kratom products from 7-OH enhanced products.

Preclinical Data Characterizing 7-OH Pharmacology
Although there are limited data from human studies to characterize effects of 7-OH in humans, as noted above, there is a large body of in vitro and animal studies that provide extensive evidence of 7-OH as a potent mu opioid agonist, as described in below subsections.

In Vitro Data
Receptor Binding Studies
7-OH has been shown to have affinity and activity at mu opioid receptors. In a study using human embryonic kidney (HEK) cells with cloned, human opioid receptors, 7-OH demonstrated high affinity for the mu opioid receptor (Ki = 47 nM) relative to kappa (Ki = 188 nM) and delta opioid receptors (Ki = 219 nM) (Kruegel et al., 2016). In a second study using HEK 293 cells expressing human mu and other opioid receptors, 7-OH demonstrated high affinity for mu opioid receptors (Ki = 16 ± 1 nM) and its affinity was greater than mitragynine (Ki = 238 ± 28 nM) and lower than morphine (Ki = 1.50 ± 0.04 nM) (Todd et al., 2020). Using an in vitro radioligand binding assay with CHO cells expressing murine-derived opioid receptors, 7-OH demonstrated relatively high affinity for mu-opioid receptors (Ki = 37 ± 4 nM), relative to mitragynine (Ki = 230 ± 47 nM), although its affinity was lower than morphine (Ki = 4.6 ± 1.8 nM) (Varadi et al., 2016).

Other studies conducted using whole brain homogenates of guinea pig brain tissue have also demonstrated that 7-OH has high affinity at mu opioid receptors (Ki = 8.0 nM) relative to kappa (Ki = 6.7 nM) and delta opioid receptors (Ki = 6.8 nM) (Matsumoto et al., 2004). Obeng and colleagues evaluated the binding affinity of 7-OH using human recombinant HEK 293 cells expressing mu opioid receptors. Their results are in agreement with the data presented above where the authors found that 7-OH binds with high affinity (Ki = 7.2 nM) to mu opioid receptors relative to delta (Ki = 236 nM) and kappa (Ki = 74.1 nM) receptor subtypes (Obeng et al., 2020).

A number of additional binding studies are in keeping with the data described above, demonstrating the affinity of 7-OH for mu opioid receptors across a variety of binding assays (Chakraborty et al., 2021; Matsumoto et al., 2008; Obeng et al., 2021; Takayama et al., 2002).

The results of the receptor binding studies with 7-OH are in keeping with in silico receptor binding models that suggest 7-OH has high affinity for the mu opioid receptor. The in silico modeling results were subsequently confirmed with a radioligand binding assay where 7-OH demonstrated high affinity for cloned, human mu opioid receptors (K i = 70 nM). (Ellis et al.,
13 147

2020). Collectively, the available receptor binding data demonstrate the affinity and binding of 7-OH to mu opioid receptors.

Functional Studies
Many of the studies referenced above performed additional assessments of 7-OH to determine its functional activity after binding (i.e., agonist or antagonist effects). These studies have consistently demonstrated that 7-OH produces mu-opioid agonist effects. For example, Kruegel and colleagues examined the functional activity of 7-OH and mitragynine in HEK cells expressing opioid receptors using a bioluminescence resonance energy transfer (BRET) assay.

Both mitragynine and 7-OH functioned as partial agonists, producing Emax values of 34% and 47% respectively and EC
50 values of 339 ± 178 nM and 34.5 ± 4.5 nM (Kruegel et al., 2016).

Activation of the mu opioid receptor pathway was also investigated using forskolin-stimulated cyclic adenosine monophosphate (cAMP) accumulation in Chinese Hamster Ovary (CHO) cells expressing mu opioid receptors. In this assay, 7-OH produced a maximal activation (Emax) of

85.9%, a value similar to that produced by the positive control comparators DAMGO (86.2%) and morphine (86.9%). These data suggest 7 -OH acts a full mu opioid agonist (Todd et al., 2020). Similarly, Matsumoto and colleagues concluded that 7-OH was “found to have an opioid agonist property on µ- and/or κ-opioid receptors” based on its ability to inhibit contraction of isolated guinea pig ileum. In this assay, 7-OH displayed approximately 13-fold greater potency than morphine and 46-fold greater potency than mitragynine. The inhibition was reversed by naloxone, suggesting the effects are mediated via mu opioid receptors (Matsumoto et al., 2004).

Other functional assays produced results that are aligned with Matsumoto and colleagues. For example, using a cAMP mobilization assay as a measure of functional effects, 7-OH acted as a full agonist with an EC
50 of 7.6 nM, and was more potent than mitragynine (EC50 307.5 nM) (Obeng et al., 2020). Likewise, when evaluating the agonist activity of 7-OH in an electrically stimulated guinea pig ileum, 7-OH acted as a full agonist and was more potent than morphine (Takayama et al., 2002). Finally, using a [35S] GTPγS functional assay, 7-OH produced an Emax of 77% with an EC50 of 53.4 nM, further demonstrating its agonist effects (Varadi et al., 2016).

Animal Data on Behavioral and Physiological Effects
Conditioned Place Preference
Conditioned place preference (CPP) is a commonly utilized animal model to study the rewarding effects of drugs. In this paradigm, an animal is conditioned to associate a particular environment with a drug treatment, and an alternative environment with a non-drug condition. After repeated sessions, the animal is then observed under non-drug conditions to determine which environment the animal prefers. CPP is established if the animal spends more time in the drug- paired compartment vs. the vehicle-paired compartment (Mombelli, 2022; Prus et al., 2009).

Many drugs of abuse produce CPP, though notably, it is not a direct measure of reinforcing effects.

Using the CPP paradigm, several studies have demonstrated the ability of 7-OH to produce rewarding effects and that it does so more potently than morphine. Gutridge and colleagues employed C57BL/6 mice and demonstrated the development of CPP after 3 mg/kg 7-OH. CPP was observed after both doses although 7-OH required more sessions (4 sessions) whereas morphine (6 mg/kg) was able to establish CPP in two sessions (Gutridge et al., 2020). Similarly, 14 148

other studies have demonstrated the ability of 7-OH (2 mg/kg) to produce CPP, and that it does so with greater potency than morphine (Matsumoto et al., 2008).

Drug Discrimination
Drug discrimination is an experimental method in which animals identify whether a test drug produces interoceptive effects similar to those produced by a drug to which the animals are trained to differentiate from placebo, and which has known pharmacological properties. If the known drug is one with abuse potential, drug discrimination methods can be used to predict if a test drug will have abuse potential in humans (Balster & Bigelow, 2003; Solinas et al., 2006).

For abuse assessment purposes, an animal is trained to press one bar when it receives a known drug of abuse (the training drug) and another bar when it receives placebo. A challenge session with the test drug determines which of the two bars the animal presses more often as an indicator of whether the test drug is more like the known drug of abuse or more like placebo. A test drug is said to have “full generalization” to the training drug when the test drug produces bar pressing >80% on the bar associated with the training drug (Ator & Griffiths, 2003; Swedberg, 2016; Walker, 2018; Young, 2009). A test drug that generalizes to a known drug of abuse will likely be abused by humans (Balster and Bigelow, 2003).

Male Sprague Dawley rats were trained to discriminate morphine (5.0 mg/kg i.p.) from saline using a 30 min pretreatment time and FR10 schedule of reinforcement. After successful training, substitution tests with 7-OH (0.3, 1.0 and 3.0 mg/kg) were performed. The highest dose of 7-OH (3.0 mg/kg) produced complete substitution for the morphine stimulus cue. Moreover, pretreatment with naloxone significantly reversed the 7-OH substitution and resulted in saline- like responding. Notably, in this study, 7-OH was more potent than morphine (Harun et al., 2015).

In a second study, the discriminative stimulus effects of 7-OH were examined in separate groups of rats trained to discriminate either morphine (3.2 mg/kg i.p., 15 min pretreatment) or mitragynine (32 mg/kg i.p., 30 min pretreatment) from saline. After successful acquisition of discrimination training 7-OH was administered in substitution tests. 7-OH was administered i.p., with a 15 min pretreatment time in a dose range of 0.1-17.8 mg/kg. In the morphine-trained rats, 7-OH produced complete substitution at doses above 0.56 mg/kg, with the 1.0 mg/kg dose producing 100% drug-lever-appropriate responding and a resultant ED 50 of 0.28 mg/kg. Notably,
the dose-response curve was shifted to the left, demonstrating an increased potency of 7-OH relative to morphine. In addition, pretreatment with 0.032 mg/kg naltrexone shifted the dose- response curve to the right suggesting substitution was mediated via mu-opioid receptors (Obeng et al., 2021). Taken together, the drug discrimination data demonstrate the ability of 7- OH to substitute and mimic the stimulus effects of morphine, and that 7-OH is more potent in doing so. These data are a strong indication that 7-OH produces subjective effects in humans that are similar to opioids, along with an associated abuse potential.

Self-Administration
Self-administration is a method that assesses whether a drug produces reinforcing effects that increase the likelihood of behavioral responses in order to obtain additional drug (i.e., whether an animal will press a lever for a drug injection). Drugs that are self-administered by animals are 15 149

likely to produce rewarding effects in humans, which is indicative of abuse potential. Generally, a good correlation exists between those drugs that are self-administered by animals and those that are abused by humans (Balster & Bigelow, 2003; Brady et al., 1987; Johanson & Schuster, 1981; Panlilio & Goldberg, 2007). It is notable that self-administration is a behavior that is produced by drugs that have been placed into every schedule of the CSA. Additionally, rates of self-administration for a particular drug will go up or down if the available drug dose or the work requirement (bar pressing for drug) is altered. Positive results from a self-administration study provide an abuse potential signal, suggesting that a drug has rewarding properties, but not necessarily that it produces more rewarding effects than another drug in humans. 7-OH produces reinforcing effects and is self-administered by rodents. In the study, rodents were trained to self-administer morphine (100 µg/infusion) and faded to 50 µg/infusion once stable responding was achieved. Thereafter, extinction sessions were performed to confirm acquisition of the self-administration training prior to substitution tests. Substitution tests were performed with 7-OH doses of 2.5, 5, 10 and 20 µg/infusion. In the substitution tests, 7-OH produced an inverted U-shaped curve and the number of infusions for 5 and 10 µg/infusion of 7- OH were significantly greater than vehicle, demonstrating the reinforcing effects of 7-OH (Hemby et al., 2019).

The self-administration of 7-OH was blocked by both a mu opioid antagonist (naloxonazine) and a delta opioid antagonist (naltrindole), suggesting its reinforcing effects are mediated via opioid receptors. In addition, peak morphine self-administration occurred at 50 µg/infusion while peak 7-OH infusions occurred at 5 µg/infusion, demonstrating a substantially increased potency of 7- OH relative to morphine.

There are some pharmacokinetic (PK) data available from animal studies involving the administration of isolated, i.e., single entity, 7-OH. Following a single oral dose (1 mg/kg 7-OH) to beagle dogs, absorption was rapid, with a peak plasma concentration (i.e., Cmax) of 56 ± 1.6 ng/mL 15 minutes post-dose. The elimination half-life was slower, producing a mean of 3.6 ±

0.5 h. No AEs were observed, and no abnormal laboratory findings were reported (Maxwell et al., 2021). In adult male and female mice, the PK parameters of 7-OH were investigated after a single oral dose of 50 mg/kg 7-OH. The tissue distribution of 7-OH was observed in descending order: liver > kidney > spleen > lung > brain. Plasme C max values were 0.6 and 09 μg/mL in
males and females with a T max value of 0.5 hr. Area under the curve (AUC) values over 48 hours (AUC
0-48 hr* μg/mL) were 1.4 and 2.9 in male and female mice (Berthold et al., 2022).

Antinociceptive Effects
The antinociceptive effects of 7-OH were investigated in mice using the tail flick and hot plate tests. These tests are commonly used to examine pain and analgesic effects in rodents (D'Amour & Smith, 1941). In these tests, rodents are subject to a heat stimulus and timed for the duration it takes to move their tail (i.e., tail flick) or produce a response such as jumping, licking, or shaking of limbs (i.e., hot plate).

In the tail flick test, subcutaneous administration of 7-OH (2.5 – 10 mg/kg) produced both time and dose-related antinociceptive effects. Notably, the dose-effect curve for 7-OH was shifted to the left, indicating a greater potency than the positive control comparator, morphine. Similar results were observed in the hot plate test, and when morphine and 7-OH were administered 16 150

orally. Naloxone (2 mg/kg s.c.) inhibited the effects of 7-OH and morphine in both tests (Matsumoto et al., 2004; Matsumoto et al., 2008). Concurrent results were observed by Obeng and colleagues using the hot plate test. In their study, 7-OH (0.0032 – 3.2 mg/kg, i.v.) produced maximum antinociceptive effects and was more potent morphine but less potent than fentanyl when administered intravenously. Likewise, naltrexone (0.1 mg/kg) reversed the antinociceptive effects of 7-OH suggesting the antinociception was mediated via mu opioid receptors (Obeng et al., 2020).

Respiratory Depression
A major risk of opioid exposure and cause of opioid-induced death is respiratory depression (Baldo & Rose, 2022; Bateman et al., 2023). To examine the respiratory effects of 7-OH in rodents, whole body plethysmography was used in freely moving, awake rats. Both morphine (10 and 32 mg/kg, i.v.) and 7-OH (1, 3.2, and 10 mg/kg, i.v.) induced significant respiratory depression as assessed by minute volume, tidal volume, and breathing frequency. The mu- opioid agonist naloxone (1.0 mg/kg i.v.) reversed these effects, a finding consistent with the mu opioid effects of 7-OH (Zuarth Gonzalez et al., 2025). These data highlight a potential risk factor of 7-OH exposure and suggest 7-OH may expose individuals to similar risks as classic opioids, including respiratory depression.

Physical Dependence and Withdrawal
It is well-established that chronic administration of opioids leads to the development of tolerance and physical dependence that may culminate into a withdrawal syndrome. In parallel with some of the hot plate tests described above, the ability of 7-OH to produce physical dependence and withdrawal was examined. Mice were treated with subcutaneous 7-OH (10 mg/kg b.i.d.) or morphine (10 mg/kg b.i.d.) for five days. Tolerance was assessed as a reduction of analgesia in the hot plate test. After five days of treatment, both morphine and 7-OH showed a decreased analgesic response on the hot plate test, demonstrating the development of tolerance. In addition, cross-tolerance was also observed between morphine and 7-OH suggesting a similar mechanism of action between the drugs. Finally, after five days of escalating doses of 7-OH and morphine (8-45 mg/kg b.i.d.) the development of withdrawal was assessed with a 3 mg/kg s.c., dose of naloxone injected two hours after 7-OH administration. Both morphine and 7-OH treatment produced signs of withdrawal such as jumping, rearing, urination, ptosis, forepaw tremor, and diarrhea (Matsumoto et al., 2005).

Summary of Preclinical Data
From the studies described above, 7-OH has high affinity for mu opioid receptors and functional activity as an agonist at these receptors. Consistent with this pharmacological activity, 7-OH is self-administered by animals, substitutes for morphine in drug discrimination studies, produces antinociception, and physical dependence leading to withdrawal when administered to rodents.

Moreover, 7-OH has consistently demonstrated an increased potency relative to morphine in preclinical rodent studies. These observations suggest 7-OH has pharmacological properties representative of a full mu opioid agonist and an associated high potential for abuse. 17 151

CONCLUSIONS
The data described in this report indicate that 7-OH has a significant potential for abuse and associated harms. Conclusively, 7-OH has high affinity and agonist activity at mu opioid receptors. Consistent with this pharmacological mechanism of action, 7-OH demonstrates rewarding effects in that it is self-administered by animals and also produces conditioned place preference, two well-established animal behavioral models measuring rewarding effects as a predictor of abuse potential in humans. In animal drug discrimination studies, 7-OH substitutes for morphine with full generalization. 7-OH is also demonstrated to produce antinociception consistent with opioid pharmacology, and to produce physical dependence when administered to rodents, as evidenced by a classic set of withdrawal signs associated with opioid withdrawal upon discontinuation of opioid administration. Moreover, 7-OH in all above models has consistently demonstrated an increased potency relative to morphine.

Due to the fact that 7-OH is both a metabolite of mitragynine and naturally present in low amounts in botanical kratom, using toxicology results to identify 7-OH as a primary or sole contributor in human exposures is challenging. T here is also a need for improved clinical awareness and population surveillance to better characterize patterns of 7-OH use, the products that people are obtaining, and individual treatment needs following 7-OH exposure. Additionally, questions on 7-OH are not generally included in national surveys, and other data sources that rely on self-reported use of 7-OH likely underestimate the number of 7-OH exposure cases, as individuals may be unaware of the distinction from kratom products. Nonetheless, since specific codes were added earlier this year to document 7-OH exposure cases, U.S. poison centers have identified multiple single-substance cases of 7-OH exposure resulting in serious adverse clinical outcomes. Also, although anecdotal, social media and online forums indicate growing awareness and use of 7-OH, and many testimonials of the negative opioid-mediated effects users have experienced, including 7-OH dependence, associated withdrawal syndrome, and addiction.

In the current marketplace in the U.S., 7-OH is increasingly being marketed over-the-counter and online, in concentrated forms or sufficient doses to cause harms to those individuals engaging, knowingly or unknowingly, in use of 7-OH. Based on demonstrated pharmacology, repeated or prolonged use of 7-OH would lead to tolerance, physical dependence, and potentially to opioid addiction— typical of mu opioid agonist drugs of abuse. This public health threat is troubling and requires immediate and impactful policies to educate consumers and take regulatory action that limits access to 7-OH containing products. 18 152

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Karunakaran, T., Vicknasingam, B., & Chawarski, M. C. (2024). Phytochemical analysis of water and ethanol liquid extracts prepared using freshly harvested leaves of Mitragyna speciosa (Korth.). Nat Prod Res, 1-8. https://doi.org/10.1080/14786419.2024.2362428 Kikura-Hanajiri, R., Kawamura, M., Maruyama, T., Kitajima, M., Takayama, H., & Goda, Y. (2009).

Simultaneous analysis of mitragynine, 7-hydroxymitragynine, and other alkaloids in the psychotropic plant “kratom” (Mitragyna speciosa) by LC-ESI-MS. Forensic Toxicology, 27(2), 67-74. https://doi.org/10.1007/s11419-009-0070-5 Kruegel, A. C., Gassaway, M. M., Kapoor, A., Varadi, A., Majumdar, S., Filizola, M., Javitch, J. A., & Sames, D. (2016). Synthetic and Receptor Signaling Explorations of the Mitragyna Alkaloids: Mitragynine as an Atypical Molecular Framework for Opioid Receptor Modulators. J Am Chem Soc, 138(21), 6754-6764. https://doi.org/10.1021/jacs.6b00360 Leon, F., Habib, E., Adkins, J. E., Furr, E. B., McCurdy, C. R., & Cutler, S. J. (2009).

Phytochemical characterization of the leaves of Mitragyna speciosa grown in U.S.A. Nat Prod Commun, 4(7), 907-910. https://www.ncbi.nlm.nih.gov/pubmed/19731590 20 154

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Suspected Adulteration of Commercial Kratom Products with 7-Hydroxymitragynine. J Med Toxicol, 12(4), 341-349. https://doi.org/10.1007/s13181-016-0588-y Matsumoto, K., Horie, S., Ishikawa, H., Takayama, H., Aimi, N., Ponglux, D., & Watanabe, K. (2004). Antinociceptive effect of 7-hydroxymitragynine in mice: Discovery of an orally active opioid analgesic from the Thai medicinal herb Mitragyna speciosa. Life Sci, 74(17), 2143-2155. https://doi.org/10.1016/j.lfs.2003.09.054 Matsumoto, K., Horie, S., Takayama, H., Ishikawa, H., Aimi, N., Ponglux, D., Murayama, T., & Watanabe, K. (2005). Antinociception, tolerance and withdrawal symptoms induced by 7- hydroxymitragynine, an alkaloid from the Thai medicinal herb Mitragyna speciosa. Life Sci, 78(1), 2-7. https://doi.org/10.1016/j.lfs.2004.10.086 Matsumoto, K., Takayama, H., Narita, M., Nakamura, A., Suzuki, M., Suzuki, T., Murayama, T., Wongseripipatana, S., Misawa, K., Kitajima, M., Tashima, K., & Horie, S. (2008). MGM-9 [(E)-methyl 2-(3-ethyl-7a,12a-(epoxyethanoxy)-9-fluoro-1,2,3,4,6,7,12,12b-octahydro-8- methoxyindolo[2,3-a]quinolizin-2-yl)-3-methoxyacrylate], a derivative of the indole alkaloid mitragynine: a novel dual-acting mu- and kappa-opioid agonist with potent antinociceptive and weak rewarding effects in mice. Neuropharmacology, 55(2), 154- 165. https://doi.org/10.1016/j.neuropharm.2008.05.003
Maxwell, E. A., King, T. I., Kamble, S. H., Raju, K. S. R., Berthold, E. C., Leon, F., Hampson, A., McMahon, L. R., McCurdy, C. R., & Sharma, A. (2021). Oral Pharmacokinetics in Beagle Dogs of the Mitragynine Metabolite, 7-Hydroxymitragynine. Eur J Drug Metab Pharmacokinet, 46(3), 459-463. https://doi.org/10.1007/s13318-021-00684-2 McCurdy, C. R., Sharma, A., Smith, K. E., Veltri, C. A., Weiss, S. T., White, C. M., & Grundmann, O. (2024). An update on the clinical pharmacology of kratom: uses, abuse potential, and future considerations. Expert Rev Clin Pharmacol, 17(2), 131-142. https://doi.org/10.1080/17512433.2024.2305798
Mombelli, E. (2022). Animal Models of Drug Addiction. In S. Della Sala (Ed.), Encyclopedia of Behavioral Neuroscience, 2nd edition (Second Edition) (pp. 674-681). Elsevier. https://doi.org/https://doi.org/10.1016/B978-0-12-819641-0.00118-3 Mongar, P., Jaisi, A., Inkviya, T., Wungsintaweekul, J., & Wiwattanawongsa, K. (2024). Effects of Itraconazole on Pharmacokinetics of Mitragynine and 7-Hydroxymitragynine in Healthy Volunteers. ACS Pharmacol Transl Sci, 7(3), 823-833.
https://doi.org/10.1021/acsptsci.3c00335
NDEWS. (2024). National Drug Early Warning System Weekly Briefing. (195). https://ndews.org/newsletter/weekly-briefing-issue-195/ Obeng, S., Kamble, S. H., Reeves, M. E., Restrepo, L. F., Patel, A., Behnke, M., Chear, N. J., Ramanathan, S., Sharma, A., Leon, F., Hiranita, T., Avery, B. A., McMahon, L. R., & McCurdy, C. R. (2020). Investigation of the Adrenergic and Opioid Binding Affinities, Metabolic Stability, Plasma Protein Binding Properties, and Functional Effects of Selected Indole-Based Kratom Alkaloids. J Med Chem, 63(1), 433-439. https://doi.org/10.1021/acs.jmedchem.9b01465
Obeng, S., Wilkerson, J. L., Leon, F., Reeves, M. E., Restrepo, L. F., Gamez-Jimenez, L. R., Patel, A., Pennington, A. E., Taylor, V. A., Ho, N. P., Braun, T., Fortner, J. D., Crowley, M. L., Williamson, M. R., Pallares, V. L. C., Mottinelli, M., Lopera-Londono, C., McCurdy, C. R., McMahon, L. R., & Hiranita, T. (2021). Pharmacological Comparison of Mitragynine and 7-Hydroxymitragynine: In Vitro Affinity and Efficacy for mu-Opioid Receptor and Opioid- Like Behavioral Effects in Rats. J Pharmacol Exp Ther, 376(3), 410-427. https://doi.org/10.1124/jpet.120.000189
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Ogozalek, S. (2023, December 9). The Tampa Bay Times tested 20 kratom products. Here’s what we found. Tampa Bay Times.
https://www.tampabay.com/investigations/2023/12/09/tampa-bay-times-tested-20- kratom-products-heres-what-we-found/
Panlilio, L. V., & Goldberg, S. R. (2007). Self-administration of drugs in animals and humans as a model and an investigative tool. Addiction, 102(12), 1863-1870. https://doi.org/10.1111/j.1360-0443.2007.02011.x
Ponglux, D., Wongseripipatana, S., Takayama, H., Kikuchi, M., Kurihara, M., Kitajima, M., Aimi, N., & Sakai, S. (1994). A New Indole Alkaloid, 7 alpha-Hydroxy-7H-mitragynine, from Mitragyna speciosa in Thailand. Planta Med, 60(6), 580-581. https://doi.org/10.1055/s- 2006-959578
Prus, A. J., James, J. R., & Rosecrans, J. A. (2009). Conditioned Place Preference. In J. J.

Buccafusco (Ed.), Methods of Behavior Analysis in Neuroscience (2nd ed.). https://www.ncbi.nlm.nih.gov/pubmed/21204336
Rogers, J. M., Weiss, S. T., Epstein, D. H., Grundmann, O., Hill, K., & Smith, K. E. (2024). Kratom addiction per DSM-5 SUD criteria, and kratom physical dependence: Insights from dosing amount versus frequency. Drug Alcohol Depend, 260, 111329. https://doi.org/10.1016/j.drugalcdep.2024.111329
Sengnon, N., Vonghirundecha, P., Chaichan, W., Juengwatanatrakul, T., Onthong, J., Kitprasong, P., Sriwiriyajan, S., Chittrakarn, S., Limsuwanchote, S., & Wungsintaweekul, J. (2023).

Seasonal and Geographic Variation in Alkaloid Content of Kratom (Mitragyna speciosa (Korth.) Havil.) from Thailand. Plants (Basel), 12(4).
https://doi.org/10.3390/plants12040949
Sharma, A., Smith, K. E., Kuntz, M. A., Berthold, E. C., Elashkar, O. I., Guadagnoli, N., Kanumuri, S. R. R., Mukhopadhyay, S., Panlilio, L. V., Epstein, D. H., & McCurdy, C. R. (2025).

Chemical Analysis and Alkaloid Intake for Kratom Products Available in the United States. Drug Test Anal. https://doi.org/10.1002/dta.3906 Singh, D., Narayanan, S., & Vicknasingam, B. (2016). Traditional and non-traditional uses of Mitragynine (Kratom): A survey of the literature. Brain Res Bull, 126(Pt 1), 41-46. https://doi.org/10.1016/j.brainresbull.2016.05.004
Singh, D., Narayanan, S., Vicknasingam, B., Corazza, O., Santacroce, R., & Roman-Urrestarazu, A. (2017). Changing trends in the use of kratom (Mitragyna speciosa) in Southeast Asia.

Hum Psychopharmacol, 32(3). https://doi.org/10.1002/hup.2582 Smith, K. E., Boyer, E. W., Grundmann, O., McCurdy, C. R., & Sharma, A. (2024). The rise of novel, semi-synthetic 7-hydroxymitragnine products. Addiction. https://doi.org/10.1111/add.16728
Smith, K. E., Panlilio, L. V., Sharma, A., McCurdy, C. R., Feldman, J. D., Mukhopadhyay, S., Kanumuri, S. R. R., Kuntz, M. A., Hill, K., & Epstein, D. H. (2024). Time course of kratom effects via ecological momentary assessment, by product type, dose amount, and assayed alkaloid content. Drug Alcohol Depend, 264, 112460. https://doi.org/10.1016/j.drugalcdep.2024.112460
Smith, K. E., Rogers, J. M., Dunn, K. E., Grundmann, O., McCurdy, C. R., Schriefer, D., & Epstein, D. H. (2022). Searching for a Signal: Self-Reported Kratom Dose-Effect Relationships Among a Sample of US Adults With Regular Kratom Use Histories. Front Pharmacol, 13, 765917. https://doi.org/10.3389/fphar.2022.765917
Solinas, M., Panlilio, L. V., Justinova, Z., Yasar, S., & Goldberg, S. R. (2006). Using drug- discrimination techniques to study the abuse-related effects of psychoactive drugs in rats. Nat Protoc, 1(3), 1194-1206. https://doi.org/10.1038/nprot.2006.167 22 156

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Takayama, H., Ishikawa, H., Kurihara, M., Kitajima, M., Aimi, N., Ponglux, D., Koyama, F., Matsumoto, K., Moriyama, T., Yamamoto, L. T., Watanabe, K., Murayama, T., & Horie, S. (2002). Studies on the synthesis and opioid agonistic activities of mitragynine-related indole alkaloids: discovery of opioid agonists structurally different from other opioid ligands. J Med Chem, 45(9), 1949-1956. https://doi.org/10.1021/jm010576e Tanna, R. S., Nguyen, J. T., Hadi, D. L., Manwill, P. K., Flores-Bocanegra, L., Layton, M. E., White, J. R., Cech, N. B., Oberlies, N. H., Rettie, A. E., Thummel, K. E., & Paine, M. F. (2022).

Clinical Pharmacokinetic Assessment of Kratom (Mitragyna speciosa), a Botanical Product with Opioid-like Effects, in Healthy Adult Participants. Pharmaceutics, 14(3). https://doi.org/10.3390/pharmaceutics14030620
Todd, D. A., Kellogg, J. J., Wallace, E. D., Khin, M., Flores-Bocanegra, L., Tanna, R. S., McIntosh, S., Raja, H. A., Graf, T. N., Hemby, S. E., Paine, M. F., Oberlies, N. H., & Cech, N. B. (2020). Chemical composition and biological effects of kratom (Mitragyna speciosa): In vitro studies with implications for efficacy and drug interactions. Sci Rep, 10(1), 19158. https://doi.org/10.1038/s41598-020-76119-w
Varadi, A., Marrone, G. F., Palmer, T. C., Narayan, A., Szabo, M. R., Le Rouzic, V., Grinnell, S. G., Subrath, J. J., Warner, E., Kalra, S., Hunkele, A., Pagirsky, J., Eans, S. O., Medina, J. M., Xu, J., Pan, Y. X., Borics, A., Pasternak, G. W., McLaughlin, J. P., & Majumdar, S. (2016).

Mitragynine/Corynantheidine Pseudoindoxyls As Opioid Analgesics with Mu Agonism and Delta Antagonism, Which Do Not Recruit beta-Arrestin-2. J Med Chem, 59(18), 8381-8397. https://doi.org/10.1021/acs.jmedchem.6b00748 Walker, E. A. (2018). A Prospective Evaluation of Drug Discrimination in Pharmacology. Curr Top Behav Neurosci, 39, 319-328. https://doi.org/10.1007/7854_2018_59 Young, R. (2009). Drug Discrimination. In J. J. Buccafusco (Ed.), Methods of Behavior Analysis in Neuroscience (2nd ed.). https://www.ncbi.nlm.nih.gov/pubmed/21204332 Zuarth Gonzalez, J. D., Ragsdale, A. K., Mukhopadhyay, S., McCurdy, C. R., McMahon, L. R., Obeng, S., & Wilkerson, J. L. (2025). Mitragynine and 7-Hydroxymitragynine:

Bidirectional Effects on Breathing in Rats. bioRxiv.
https://doi.org/10.1101/2025.05.16.654392
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U.S. Food & Drug Administration10903 New Hampshire Avenue Silver Spring, MD 20903 www.fda.gov July 29, 2025 Dear Colleague, I am writing to warn you about an opioid that few physicians may be aware of. It’s called 7-hydroxymitragynine (7-OH). 7-OH is found in trace amounts in the kratom plant leaf. But this is not our focus. Our primary concern is the concentrated form of 7-OH. This is an important distinction. These concentrated 7-OH opioid products are far more dangerous than traditional kratom leaf products. Concentrated 7-OH products have exploded in popularity in recent years, with vape shops, gas stations and corner stores selling pills, gummies, candies, and even eye-catching products like ice cream cones containing 7-OH. You may also see 7-OH referred to as 7-OHMG, 7-Hydroxy, 7-HMG, or 7. Additionally, some kratom leaf products marketed as “spiked” or “enhanced” may contain 7-OH at a level 500% higher than would be naturally expected in kratom leaf. Notably, one study in the Journal of Medicinal Chemistry found 7-OH to be 13 times more potent than morphine. Aside from addiction, 7-OH side effects include withdrawal symptoms, insomnia and anxiety, seizures, and fatal respiratory depression. The FDA is seeing increases in adverse events and related reports to poison control and is concerned about the growth of 7-OH product sales nationwide. We have already issued warning letters to several firms for illegally distributing 7-OH products and are working alongside our partners at the DEA to move forward with adding certain 7-OH products to the controlled substances schedules. Like many physicians, I find it painful to recall the many opioid prescriptions I wrote in the early 2000s for routine procedures, unaware of the high potential for abuse. Our recognition of the abuse potential and our delayed response as a medical community resulted in a national health crisis. Let’s not get caught flat footed again. In addition to the FDA’s ongoing regulatory activities and education efforts, I appreciate your vigilance on this issue. For more information, please refer to our new report and educational resources, which can be found atwww.fda.gov/7-OH. Sincerely, Martin A. Makary, M.D., M.P.H Commissioner of Food and Drugs 158

FDA NEWS RELEASE
FDA Issues Warning Letters to Firms Marketing Products
Containing 7-Hydroxymitragynine
Alkaloid known as 7-OH is not a lawful dietary supplement, food additive, or ingredient in any approved drug
 More Press Announcements (/news-events/newsroom/press-announcements) For Immediate Release:

July 15, 2025
The U.S. Food and Drug Administration today announced seven recent warning letters sent to companies for illegally marketing products containing 7-hydroxymitragynine, also known as 7- OH. This action reflects the Agency’s growing concern around novel potent opioid products being marketed to U.S. consumers and sold online and in smoke shops, gas stations, and corner stores. While 7-OH occurs naturally in trace amounts in kratom (https://www.fda.gov/news-events/public-health-focus/fda-and-kratom), the Agency’s letters focus on concentrated 7-OH products such as tablets, gummies, drink mixes, and shots, which may be dangerous.
7-OH is not lawful in dietary supplements and cannot be lawfully added to conventional foods.

Additionally, there are no FDA-approved drugs containing 7-OH, and it is illegal to market any drugs containing 7-OH. Consumers who use 7-OH products are exposing themselves to products that have not been proven safe or effective for any use.

The warning letters address the illegal marketing of products containing 7-OH (https://www.flickr.com/photos/fdaphotos/albums/72177720327395989) (http://www.fda.gov/about-fda/website-policies/website-disclaimer). These letters specifically focus on products containing 7-OH as an added ingredient or enhanced levels of 7-OH. Some products are adulterated conventional foods or dietary supplements because 7-OH does not meet the relevant safety standard. Others are unapproved new drugs with unproven claims such as relieving pain and managing anxiety.

The FDA issued warning letters to:
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Shaman Botanicals, LLC (http://www.fda.gov/inspections-compliance-enforcement-and- criminal-investigations/warning-letters/shaman-botanicals-llc-709622-06252025) My Smoke Wholesale (http://www.fda.gov/inspections-compliance-enforcement-and- criminal-investigations/warning-letters/my-smoke-wholesale-710314-06252025) Relax Relief Rejuvenate Trading, LLC dba RRR Trading or EDP Kratom (http://www.fda.gov/inspections-compliance-enforcement-and-criminal- investigations/warning-letters/relax-relief-rejuvenate-trading-llc-dba-rrr-trading-or-edp- kratom-709475-06252025)
Thang Botanicals, Inc. dba 7ΩHMZ, 7-OHMZ, or 7OHMZ (http://www.fda.gov/inspections- compliance-enforcement-and-criminal-investigations/warning-letters/thang-botanicals-inc- dba-7ohmz-7-ohmz-or-7ohmz-710190-06252025)
Royal Diamond Imports, Inc. dba Roxytabs.com (http://www.fda.gov/inspections- compliance-enforcement-and-criminal-investigations/warning-letters/royal-diamond- imports-inc-709540-06252025)
Hydroxie, LLC (http://www.fda.gov/inspections-compliance-enforcement-and-criminal- investigations/warning-letters/hydroxie-llc-709661-06252025) 7Tabz Retail, LLC (http://www.fda.gov/inspections-compliance-enforcement-and-criminal- investigations/warning-letters/7tabz-retail-llc-709546-06252025) The letters requested that the recipients respond within 15 business days.

Also known as 7-OH-mitragynine, 7-OHMG, and 7-HMG
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The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, radiation-emitting electronic products, and for regulating tobacco products.

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An official form of the United States government. Provided by Touchpoints 161

FDA NEWS RELEASE
FDA Takes Steps to Restrict 7-OH Opioid Products
Threatening American Consumers
Agency alerts health care professionals and consumers of 7-hydroxymitragynine risks
 More Press Announcements (/news-events/newsroom/press-announcements) For Immediate Release:

July 29, 2025
The U.S. Food and Drug Administration today is taking a bold step to protect Americans from dangerous, illegal opioids by recommending a scheduling action to control certain 7- hydroxymitragynine (also known as 7-OH) products under the Controlled Substances Act (CSA).

The FDA is specifically targeting 7-OH, a concentrated byproduct of the kratom plant; it is not focused on natural kratom leaf products. 7-OH is increasingly recognized as having potential for abuse because of its ability to bind to opioid receptors. The FDA is releasing a new report (https://www.fda.gov/media/187899/download?attachment) to educate the public about the health concerns of 7-OH and its distinction from the kratom plant leaf. “Today, we’re taking action on 7-OH as a critical step in the fight against opioid addiction,” said HHS Secretary Robert F. Kennedy, Jr. “We will protect the health of our nation’s youth as we advance our mission to Make America Healthy Again.”
This recommendation follows a thorough medical and scientific analysis by the FDA and is one of several efforts to address the agency’s concerns around the growing availability and use of 7- OH opioid products. There are no FDA-approved 7-OH drugs, 7-OH is not lawful in dietary supplements and 7-OH cannot be lawfully added to conventional foods. “Vape stores are popping up in every neighborhood in America, and many are selling addictive products like concentrated 7-OH. After the last wave of the opioid epidemic, we cannot get caught flat-footed again,” said FDA Commissioner Marty Makary, M.D., M.P.H. “7-OH is an opioid that can be more potent than morphine. We need regulation and public education to prevent another wave of the opioid epidemic.”
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The availability of 7-OH products is a major concern to the FDA, as consumers can easily purchase products with concentrated levels of 7-OH online and in gas stations, corner stores and vape shops. The FDA is particularly concerned with the growing market of 7-OH products that may be especially appealing to children and teenagers, such as fruit-flavored gummies and ice cream cones. These products may not be clearly or accurately labeled as to their 7-OH content and are sometimes disguised or marketed as kratom. The FDA has also published educational materials (https://www.fda.gov/media/187900/download) for consumers to be more informed about these harmful products.

In June, the FDA issued warning letters to seven companies for illegally distributing products containing 7-OH, including tablets, gummies, drink mixes and shots. Today, the FDA is also issuing a letter to health care professionals (https://www.fda.gov/media/187898/download? attachment) and is warning consumers (https://www.fda.gov/drugs/information-consumers-and- patients-drugs/hiding-plain-sight-7-oh-products) about the risks associated with 7-OH products.

Under the CSA, drugs, substances and certain chemicals are placed into one of five schedules based upon their medical use, potential for abuse and safety or dependence liability. The Drug Enforcement Administration is reviewing the recommendation and has the final authority on scheduling, which requires a rulemaking process that includes a period for the public to provide comments before any scheduling action is finalized.

Related Information
Hiding in Plain Sight: 7-OH Products (/news-events/public-health-focus/hiding-plain-sight- 7-oh-products)
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HHS Request for Comment (https://www.hhs.gov/request-for-comment-form/index.html? Agency=ASPA)
202-690-6343
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Submit
The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, radiation-emitting electronic products, and for regulating tobacco products.

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An official form of the United States government. Provided by Touchpoints 164

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4927-4920-9738, v. 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ADDING CHAPTER 6.48 TO TITLE 6 OF THE GARDEN GROVE MUNICIPAL CODE PROHIBITING THE SALE AND DISTRIBUTION OF KRATOM PRODUCTS.

City Attorney Summary

This Ordinance enacts a prohibition on the sale, distribution and possession of kratom products for commercial purposes.

WHEREAS, California Constitution, Article XI, Section 7, authorizes the City of Garden Grove (“City”) to adopt and enforce local police, sanitary, and other ordinances and regulations that are not in conflict with general laws; and

WHEREAS, California Health & Safety Code section 101450 empowers the City Council to take measures necessary to preserve and protect public health, including adopting ordinances, regulations, and orders that are not in conflict with general laws; and

WHEREAS, California courts in Cohen v. Board of Supervisors, (1985) 40 Cal.3d 277, Bravo Vending v. City of Rancho Mirage, (1993) 16 Cal.App.4th 383, and Prime Gas v. City of Sacramento, (2010) 184 Cal.App.4th 697, have affirmed the power of local jurisdictions to regulate business activity to protect public health and safety and in order to discourage violations of law; and

WHEREAS, the kratom plant (Mitragyna speciosa) is a tropical evergreen native to Southeast Asia containing psychoactive compounds which can produce stimulant, or sedative, opioid-like effects; and

WHEREAS, the active compounds in kratom include mitragynine and 7- ydroxymitragynine. While mitragynine is present in higher concentrations, 7- hydroxymitragynine is more potent and is largely responsible for the stronger pain- relieving, sedative, and euphoric effects; and

WHEREAS, 7-hydroxymitragynine binds to opioid receptors in the brain and has been shown to have euphoric and mood-enhancing effects, particularly at higher doses, which can increase its appeal for recreational use; and

WHEREAS, 7-hydroxymitragynine is believed to be more potent than morphine in terms of pain relief. Research has shown that it binds to opioid receptors in the brain with greater affinity than morphine, making it significantly more powerful in relieving pain. This greater potency raises significant concerns about its safety profile, especially regarding the potential for addiction, overdose, and adverse physical and psychological effects, including nausea, vomiting, and potential psychosis.

169
Ordinance No.

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Garden Grove City CouncilFebruary 24, 2026

Garden Grove City Council
February 24, 2026