Indio City Council
July 17, 2024

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project activities under this contract. The provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) set forth under 28 CFR Part 35 and 29 CFR Part 1630 are incorporated by reference in this contract. In the
execution of this contract, the contractor agrees to comply with the following minimum specific requirement activities of EEO:
a. The contractor will work with the contracting agency and the Federal Government to ensure that it has made every good faith effort to provide equal opportunity with respect to all of its terms and conditions of employment and in their review of activities under the contract. 23 CFR 230.409 (g)(4) & (5).
b. The contractor will accept as its operating policy
the following statement:
"It is the policy of this Company to assure that applicants are employed, and that employees are treated during
employment, without regard to their race, religion, sex, sexual orientation, gender identity, color, national origin, age or disability. Such action shall include: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship, pre-apprenticeship, and/or on-the-job
training."

2. EEO Officer: The contractor will designate and make
known to the contracting officers an EEO Officer who will have the responsibility for and must be capable of effectively administering and promoting an active EEO program and who must be assigned adequate authority and responsibility to do so.

3. Dissemination of Policy: All members of the
contractor's staff who are authorized to hire, supervise, promote, and discharge employees, or who recommend
such action or are substantially involved in such action, will be made fully cognizant of and will implement the
contractor's EEO policy and contractual responsibilities to provide EEO in each grade and classification of employment.

To ensure that the above agreement will be met, the
following actions will be taken as a minimum:
a. Periodic meetings of supervisory and personnel office employees will be conducted before the start of work and then not less often than once every six months, at which time the contractor's EEO policy and its implementation will be reviewed and explained. The meetings will be conducted by the EEO Officer or other knowledgeable company official. b. All new supervisory or personnel office employees will be given a thorough indoctrination by the EEO Officer,
covering all major aspects of the contractor's EEO obligations within thirty days following their reporting for duty with the contractor.
c. All personnel who are engaged in direct recruitment for the project will be instructed by the EEO Officer in the contractor's procedures for locating and hiring minorities and women.
d. Notices and posters setting forth the contractor's EEO policy will be placed in areas readily accessible to
employees, applicants for employment and potential
employees.
e. The contractor's EEO policy and the procedures to
implement such policy will be brought to the attention of employees by means of meetings, employee handbooks,
or other appropriate means.

4. Recruitment: When advertising for employees, the
contractor will include in all advertisements for employees the notation: "An Equal Opportunity Employer." All such advertisements will be placed in publications having a large circulation among minorities and women in the area from which the project work force would normally be derived. a. The contractor will, unless precluded by a valid
bargaining agreement, conduct systematic and direct
recruitment through public and private employee referral sources likely to yield qualified minorities and women. To meet this requirement, the contractor will identify sources of potential minority group employees and establish with such identified sources procedures whereby minority and women applicants may be referred to the contractor for employment consideration.
b. In the event the contractor has a valid bargaining
agreement providing for exclusive hiring hall referrals, the contractor is expected to observe the provisions of that agreement to the extent that the system meets the
contractor's compliance with EEO contract provisions.

Where implementation of such an agreement has the effect of discriminating against minorities or women, or obligates the contractor to do the same, such implementation violates Federal nondiscrimination provisions.
c. The contractor will encourage its present employees
to refer minorities and women as applicants for
employment. Information and procedures with regard to
referring such applicants will be discussed with employees.

5. Personnel Actions: Wages, working conditions, and
employee benefits shall be established and administered, and personnel actions of every type, including hiring,
upgrading, promotion, transfer, demotion, layoff, and
termination, shall be taken without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age or disability. The following procedures shall be followed:
a. The contractor will conduct periodic inspections of
project sites to ensure that working conditions and
employee facilities do not indicate discriminatory treatment of project site personnel.
b. The contractor will periodically evaluate the spread of wages paid within each classification to determine any
evidence of discriminatory wage practices.
c. The contractor will periodically review selected
personnel actions in depth to determine whether there is evidence of discrimination. Where evidence is found, the contractor will promptly take corrective action. If the review indicates that the discrimination may extend beyond the actions reviewed, such corrective action shall include all affected persons.
d. The contractor will promptly investigate all complaints of alleged discrimination made to the contractor in
connection with its obligations under this contract, will attempt to resolve such complaints, and will take
appropriate corrective action within a reasonable time. If the investigation indicates that the discrimination may affect persons other than the complainant, such corrective action shall include such other persons. Upon completion of each investigation, the contractor will inform every complainant of all of their avenues of appeal.

6. Training and Promotion:
a. The contractor will assist in locating, qualifying, and increasing the skills of minorities and women who are
applicants for employment or current employees. Such
efforts should be aimed at developing full journey level status employees in the type of trade or job classification involved.

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b. Consistent with the contractor's work force
requirements and as permissible under Federal and State regulations, the contractor shall make full use of training programs (i.e., apprenticeship and on-the-job training
programs for the geographical area of contract
performance). In the event a special provision for training is provided under this contract, this subparagraph will be superseded as indicated in the special provision. The
contracting agency may reserve training positions for
persons who receive welfare assistance in accordance with 23 U.S.C. 140(a).
c. The contractor will advise employees and applicants
for employment of available training programs and entrance requirements for each.
d. The contractor will periodically review the training and promotion potential of employees who are minorities and women and will encourage eligible employees to apply for such training and promotion.

7. Unions: If the contractor relies in whole or in part upon unions as a source of employees, the contractor will use good faith efforts to obtain the cooperation of such unions to increase opportunities for minorities and women. 23 CFR 230.409. Actions by the contractor, either directly or through a contractor's association acting as agent, will include the procedures set forth below:
a. The contractor will use good faith efforts to develop, in cooperation with the unions, joint training programs aimed toward qualifying more minorities and women for
membership in the unions and increasing the skills of
minorities and women so that they may qualify for higher paying employment.
b. The contractor will use good faith efforts to incorporate an EEO clause into each union agreement to the end that such union will be contractually bound to refer applicants without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability. c. The contractor is to obtain information as to the referral practices and policies of the labor union except that to the extent such information is within the exclusive possession of the labor union and such labor union refuses to furnish such information to the contractor, the contractor shall so certify to the contracting agency and shall set forth what efforts have been made to obtain such information.
d. In the event the union is unable to provide the contractor with a reasonable flow of referrals within the time limit set forth in the collective bargaining agreement, the contractor will, through independent recruitment efforts, fill the employment vacancies without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability; making full efforts to obtain qualified and/or qualifiable minorities and women. The failure of a union to provide sufficient referrals (even though it is obligated to provide exclusive referrals under the terms of a collective bargaining agreement) does not relieve the contractor from the
requirements of this paragraph. In the event the union
referral practice prevents the contractor from meeting the obligations pursuant to Executive Order 11246, as amended, and these special provisions, such contractor shall
immediately notify the contracting agency.

8. Reasonable Accommodation for Applicants /
Employees with Disabilities: The contractor must be
familiar with the requirements for and comply with the
Americans with Disabilities Act and all rules and regulations established thereunder. Employers must provide reasonable accommodation in all employment activities unless to do so would cause an undue hardship.

9. Selection of Subcontractors, Procurement of
Materials and Leasing of Equipment: The contractor
shall not discriminate on the grounds of race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability in the selection and retention of subcontractors, including procurement of materials and leases of
equipment. The contractor shall take all necessary and
reasonable steps to ensure nondiscrimination in the
administration of this contract.
a. The contractor shall notify all potential
subcontractors, suppliers, and lessors of their EEO
obligations under this contract.
b. The contractor will use good faith efforts to
ensure subcontractor compliance with their EEO
obligations.

10. Assurances Required:
a. The requirements of 49 CFR Part 26 and the State
DOT’s FHWA-approved Disadvantaged Business
Enterprise (DBE) program are incorporated by reference. b. The contractor, subrecipient or subcontractor shall
not discriminate on the basis of race, color, national
origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOTassisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate,
which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying the contractor from future bidding as non- responsible.
c. The Title VI and nondiscrimination provisions of
U.S.

DOT Order 1050.2A at Appendixes A and E are
incorporated by reference. 49 CFR Part 21.

11. Records and Reports: The contractor shall keep
such records as necessary to document compliance with
the EEO requirements. Such records shall be retained
for a period of three years following the date of the final payment to the contractor for all contract work and shall be available at reasonable times and places for
inspection by authorized representatives of the
contracting agency and the FHWA
a. The records kept by the contractor shall document
the following:
(1) The number and work hours of minority and nonminority group members and women employed in each work classification on the project;
(2) The progress and efforts being made in
cooperation with unions, when applicable, to increase
employment opportunities for minorities and women;
and
(3) The progress and efforts being made in locating,
hiring, training, qualifying, and upgrading minorities
and women.
b. The contractors and subcontractors will submit an
annual report to the contracting agency each July for the duration of the project indicating the number of minority,

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women, and non- minority group employees currently
engaged in each work classification required by the contract work. This information is to be reported on Form FHWA1391. The staffing data should represent the project work force on board in all or any part of the last payroll period preceding the end of July. If on-the-job training is being required by special provision, the contractor will be required to collect and report training data. The employment data should reflect the work force on board during all or any part of the last payroll period preceding the end of July.

III. NONSEGREGATED FACILITIES
This provision is applicable to all Federal-aid construction contracts and to all related construction subcontracts of more than $10,000. 41 CFR 60-1.5.

As prescribed by 41 CFR 60-1.8, the contractor must ensure that facilities provided for employees are provided in such a manner that segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin cannot result. The contractor may neither require such
segregated use by written or oral policies nor tolerate such use by employee custom. The contractor's obligation
extends further to ensure that its employees are not assigned to perform their services at any location under the
contractor's control where the facilities are segregated. The term "facilities" includes waiting rooms, work areas,
restaurants and other eating areas, time clocks, restrooms, washrooms, locker rooms and other storage or dressing
areas, parking lots, drinking fountains, recreation or
entertainment areas, transportation, and housing provided for employees. The contractor shall provide separate or single-user restrooms and necessary dressing or sleeping areas to assure privacy between sexes.

IV. DAVIS-BACON AND RELATED ACT PROVISIONS
This section is applicable to all Federal-aid construction projects exceeding $2,000 and to all related subcontracts and lower-tier subcontracts (regardless of subcontract size), in accordance with 29 CFR 5.5. The requirements apply to all projects located within the right-of-way of a roadway that is functionally classified as Federal-aid highway. 23 U.S.C. 113. This excludes roadways functionally classified as local roads or rural minor collectors, which are exempt. 23 U.S.C. 101. Where applicable law requires that projects be treated as a project on a Federal-aid highway, the provisions of this subpart will apply regardless of the location of the project.

Examples include: Surface Transportation Block Grant
Program projects funded under 23 U.S.C. 133 [excluding
recreational trails projects], the Nationally Significant Freight and Highway Projects funded under 23 U.S.C. 117, and
National Highway Freight Program projects funded under 23 U.S.C. 167.

The following provisions are from the U.S. Department of Labor regulations in 29 CFR 5.5 “Contract provisions and related matters” with minor revisions to conform to the FHWA- 1273 format and FHWA program requirements.

1. Minimum wages (29 CFR 5.5)
a. Wage rates and fringe benefits. All laborers and
mechanics employed or working upon the site of the work (or otherwise working in construction or development of the project under a development statute), will be paid
unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account
(except such payroll deductions as are permitted by
regulations issued by the Secretary of Labor under the
Copeland Act (29 CFR part 3)), the full amount of basic hourly wages and bona fide fringe benefits (or cash
equivalents thereof) due at time of payment computed at rates not less than those contained in the wage
determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any
contractual relationship which may be alleged to exist
between the contractor and such laborers and mechanics.

As provided in paragraphs (d) and (e) of 29 CFR 5.5, the appropriate wage determinations are effective by operation of law even if they have not been attached to the contract.

Contributions made or costs reasonably anticipated for
bona fide fringe benefits under the Davis-Bacon Act (40 U.S.C. 3141(2)(B)) on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics,
subject to the provisions of paragraph 1.e. of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or
incurred during such weekly period. Such laborers and
mechanics must be paid the appropriate wage rate and
fringe benefits on the wage determination for the
classification(s) of work actually performed, without regard to skill, except as provided in paragraph 4. of this section.

Laborers or mechanics performing work in more than one
classification may be compensated at the rate specified for each classification for the time actually worked therein:

Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any
additional classifications and wage rates conformed under paragraph 1.c. of this section) and the Davis-Bacon poster (WH–1321) must be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.
b. Frequently recurring classifications. (1) In addition to wage and fringe benefit rates that have been determined to be prevailing under the procedures set forth in 29 CFR part 1, a wage determination may contain, pursuant to § 1.3(f), wage and fringe benefit rates for classifications of laborers and mechanics for which conformance requests are
regularly submitted pursuant to paragraph 1.c. of this
section, provided that:
(i) The work performed by the classification is not
performed by a classification in the wage
determination for which a prevailing wage rate has
been determined;
(ii) The classification is used in the area by
the construction industry; and
(iii) The wage rate for the classification bears a
reasonable relationship to the prevailing wage rates
contained in the wage determination.
(2) The Administrator will establish wage rates for such classifications in accordance with paragraph 1.c.(1)(iii) of this section. Work performed in such a classification must be paid at no less than the wage and fringe benefit rate listed on the wage determination for such classification. c. Conformance. (1) The contracting officer must require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract be classified in
conformance with the wage determination. Conformance
of an additional classification and wage rate and fringe benefits is appropriate only when the following criteria have been met:
(i) The work to be performed by the classification
requested is not performed by a classification in the wage determination; and
(ii) The classification is used in the area by the

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construction industry; and
(iii) The proposed wage rate, including any bona fide
fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(2) The conformance process may not be used to split,
subdivide, or otherwise avoid application of classifications listed in the wage determination.
(3) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and the contracting officer agree on the classification and wage rate (including the amount
designated for fringe benefits where appropriate), a report of the action taken will be sent by the contracting officer by email to [email protected]. The Administrator, or
an authorized representative, will approve, modify, or
disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(4) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount
designated for fringe benefits, where appropriate), the contracting officer will, by email to
[email protected], refer the questions, including
the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination.

The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(5) The contracting officer must promptly notify the
contractor of the action taken by the Wage and Hour
Division under paragraphs 1.c.(3) and (4) of this section.

The contractor must furnish a written copy of such
determination to each affected worker or it must be posted as a part of the wage determination. The wage rate
(including fringe benefits where appropriate) determined pursuant to paragraph 1.c.(3) or (4) of this section must be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
d. Fringe benefits not expressed as an hourly rate.

Whenever the minimum wage rate prescribed in the
contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor may either pay the benefit as stated in the wage determination or may pay another bona fide fringe benefit or an hourly cash equivalent thereof.
e.Unfunded plans. If the contractor does not make
payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or
mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or
program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, in accordance with the criteria set forth in § 5.28, that the applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.
f. Interest. In the event of a failure to pay all or part of the wages required by the contract, the contractor will be
required to pay interest on any underpayment of wages.

2. Withholding (29 CFR 5.5)
a. Withholding requirements. The contracting agency
may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be
considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for the full amount of wages and monetary relief, including interest, required by the clauses set forth in this section for violations of this contract, or to satisfy any such liabilities required by any other Federal contract, or federally assisted contract subject to Davis-Bacon labor standards, that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to DavisBacon labor standards requirements and is held by the same prime contractor, regardless of whether the other
contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. In the event of a contractor's failure to pay any laborer or mechanic, including any
apprentice or helper working on the site of the work all or part of the wages required by the contract, or upon the contractor's failure to submit the required records as
discussed in paragraph 3.d. of this section, the contracting agency may on its own initiative and after written notice to the contractor, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations haveceased.
b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with
paragraph 2a of this section or Section V, paragraph 3.a., or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a
contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.

3. Records and certified payrolls (29 CFR 5.5)
a. Basic record requirements (1) Length of record
retention.

All regular payrolls and other basic records must be
maintained by the contractor and any subcontractor during the course of the work and preserved for all laborers and
mechanics working at the site of the work (or otherwise working in construction or development of the project under a development statute) for a period of at least 3 years after all the work on the prime contract iscompleted.
(2) Information required. Such records must contain the name; Social Security number; last known address,
telephone number, and email address of each such worker; each worker's correct classification(s) of work actually performed; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act); daily and weekly number of hours actually worked in total and on each covered contract; deductions made; and actual wages paid.

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(3) Additional records relating to fringe benefits. Whenever the Secretary of Labor has found under paragraph 1.e. of this section that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act, the contractor must
maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing suchbenefits.
(4) Additional records relating to apprenticeship.

Contractors with apprentices working under approved
programs must maintain written evidence of the registration of apprenticeship programs, the registration of the
apprentices, and the ratios and wage rates prescribed in the applicable programs.
b. Certified payroll requirements (1) Frequency and
method of submission. The contractor or subcontractor must submit weekly, for each week in which any DBA- or Related Acts- covered work is performed, certified payrolls to the contracting agency. The prime contractor is responsible for the submission of all certified payrolls by all subcontractors. A contracting agency or prime contractor may permit or require contractors to submit certified payrolls through an electronic system, as long as the electronic system requires a legally valid electronic signature; the system allows the contractor, the contracting agency, and the Department of Labor to
access the certified payrolls upon request for at least 3 years after the work on the prime contract has been completed; and the contracting agency or prime contractor permits other methods of submission in situations where the contractor is unable or limited in its ability to use or access the electronic system.
(2) Information required. The certified payrolls submitted must set out accurately and completely all of the information required to be maintained under paragraph 3.a.(2) of this section, except that full Social Security numbers and last known addresses, telephone numbers, and email
addresses must not be included on weekly transmittals.

Instead, the certified payrolls need only include an
individually identifying number for each worker ( e.g., the last four digits of the worker's Social Security number). The required weekly certified payroll information may be
submitted using Optional Form WH–347 or in any other
format desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division website at
https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh 347/.pdf or its successor website. It is not a violation of this section for a prime contractor to require a subcontractor to provide full Social Security numbers and last known
addresses, telephone numbers, and email addresses to the prime contractor for its own records, without weekly
submission by the subcontractor to the contracting agency. (3) Statement of Compliance. Each certified payroll
submitted must be accompanied by a “Statement of
Compliance,” signed by the contractor or subcontractor, or the contractor's or subcontractor's agent who pays or
supervises the payment of the persons working on the
contract, and must certify the following:
(i) That the certified payroll for the payroll period
contains the information required to be provided under
paragraph 3.b. of this section, the appropriate information and basic records are being maintained under paragraph

3.a. of this section, and such information and records are correct and complete;
(ii) That each laborer or mechanic (including each
helper and apprentice) working on the contract during
the payroll period has been paid the full weekly wages
earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or
indirectly from the full wages earned, other than
permissible deductions as set forth in 29 CFR part 3;
and
(iii) That each laborer or mechanic has been paid not
less than the applicable wage rates and fringe benefits or cash equivalents for the classification(s) of work actually performed, as specified in the applicable wage
determination incorporated into the contract.
(4) Use of Optional Form WH–347. The weekly
submission of a properly executed certification set forth on the reverse side of Optional Form WH–347 will satisfy the requirement for submission of the “Statement of
Compliance” required by paragraph 3.b.(3) of this section. (5) Signature. The signature by the contractor,
subcontractor, or the contractor's or subcontractor's agent must be an original handwritten signature or a legally valid electronic signature.
(6) Falsification. The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729.
(7) Length of certified payroll retention. The contractor or subcontractor must preserve all certified payrolls during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
c. Contractor subcontracts, and related documents. The
contractor or subcontractor must maintain this contract or subcontract and related documents including, without
limitation, bids, proposals, amendments, modifications, and extensions. The contractor or subcontractor must preserve these contracts, subcontracts, and related documents during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
d. Required disclosures and access (1) Required record
disclosures and access to workers. The contractor or
subcontractor must make the records required under
paragraphs 3.a. through 3.c. of this section, and any other documents that the contracting agency, the State DOT, the FHWA, or the Department of Labor deems necessary to
determine compliance with the labor standards provisions of any of the applicable statutes referenced by § 5.1, available for inspection, copying, or transcription by authorized representatives of the contracting agency, the State DOT, the FHWA, or the Department of Labor, and must permit such
representatives to interview workers during working hours on the job.
(2) Sanctions for non-compliance with records and worker access requirements. If the contractor or subcontractor fails to submit the required records or to make them available, or refuses to permit worker interviews during working hours on the job, the Federal agency may, after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, that maintains such records or that employs such workers, take such action as may be necessary to
cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the
required records upon request or to make such records
available, or to permit worker interviews during working hours on the job, may be grounds for debarment action pursuant to § 5.12. In addition, any contractor or other person that fails to submit the required records or make those records available to WHD within the time WHD requests that the records be produced will be precluded from introducing as evidence in

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an administrative proceeding under 29 CFR part 6 any of the required records that were not provided or made available to WHD. WHD will take into consideration a reasonable request from the contractor or person for an extension of the time for submission of records. WHD will determine the
reasonableness of the request and may consider, among
other things, the location of the records and the volume of production.
(3) Required information disclosures. Contractors and
subcontractors must maintain the full Social Security number and last known address, telephone number, and email
address of each covered worker, and must provide them
upon request to the contracting agency, the State DOT, the FHWA, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or other compliance action.

4. Apprentices and equal employment opportunity (29
CFR5.5)
a. Apprentices (1) Rate of pay. Apprentices will be
permitted to work at less than the predetermined rate for the work they perform when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship (OA), or with a State Apprenticeship Agency recognized by the OA. A person who is not individually registered in the program, but who has been certified by the OA or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice, will be permitted to work at less than the predetermined rate for the work they perform in the first 90 days of probationary employment as an apprentice in such a program. In the event the OA or a State
Apprenticeship Agency recognized by the OA withdraws
approval of an apprenticeship program, the contractor will no longer be permitted to use apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(2) Fringe benefits. Apprentices must be paid fringe
benefits in accordance with the provisions of the
apprenticeship program. If the apprenticeship program
does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage
determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringe benefits must be paid in accordance with that determination.
(3) Apprenticeship ratio. The allowable ratio of
apprentices to journeyworkers on the job site in any craft classification must not be greater than the ratio permitted to the contractor as to the entire work force under the registered program or the ratio applicable to the locality of the project pursuant to paragraph 4.a.(4) of this section.

Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated in paragraph 4.a.(1) of this section, must be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under this section must be paid not less than the applicable wage rate on the wage determination for the work actually performed.
(4) Reciprocity of ratios and wage rates. Where a
contractor is performing construction on a project in a locality other than the locality in which its program is registered, the ratios and wage rates (expressed in
percentages of the journeyworker's hourly rate) applicable within the locality in which the construction is being
performed must be observed. If there is no applicable ratio or wage rate for the locality of the project, the ratio and wage rate specified in the contractor's registered program must be observed.
b. Equal employment opportunity. The use of apprentices and journeyworkers under this part must be in conformity with the equal employment opportunity requirements of
Executive Order 11246, as amended, and 29 CFR part 30.
c. Apprentices and Trainees (programs of the U.S. DOT).

Apprentices and trainees working under apprenticeship
and skill training programs which have been certified by the Secretary of Transportation as promoting EEO in
connection with Federal-aid highway construction
programs are not subject to the requirements of paragraph 4 of this Section IV. 23 CFR 230.111(e)(2). The straight time hourly wage rates for apprentices and trainees under such programs will be established by the particular
programs. The ratio of apprentices and trainees to
journeyworkers shall not be greater than permitted by the terms of the particular program.

5. Compliance with Copeland Act requirements. The
contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract as provided in 29 CFR 5.5.

6. Subcontracts. The contractor or subcontractor must
insert FHWA-1273 in any subcontracts, along with the
applicable wage determination(s) and such other clauses or contract modifications as the contracting agency may by appropriate instructions require, and a clause requiring the subcontractors to include these clauses and wage
determination(s) in any lower tier subcontracts. The prime contractor is responsible for the compliance by any
subcontractor or lower tier subcontractor with all the contract clauses in this section. In the event of any violations of these clauses, the prime contractor and any subcontractor(s)
responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower-tier subcontractors, and may be subject to debarment, as appropriate. 29 CFR 5.5.

7. Contract termination: debarment. A breach of the
contract clauses in 29 CFR 5.5 may be grounds for
termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.

8. Compliance with Davis-Bacon and Related Act
requirements. All rulings and interpretations of the DavisBacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract as provided in 29 CFR 5.5.

9. Disputes concerning labor standards. As provided in
29 CFR 5.5, disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the
Department of Labor set forth in 29 CFR parts 5, 6, and 7.

Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives.

10. Certification of eligibility
a. By entering into this contract, the contractor certifies that neither it nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of 40 U.S.C.
3144(b) or § 5.12(a).
b. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract

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by virtue of 40 U.S.C. 3144(b) or § 5.12(a).
c. The penalty for making false statements is prescribed in the U.S. Code, Title 18 Crimes and Criminal Procedure, 18 U.S.C. 1001.

11. Anti-retaliation It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:

a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under the DBA,
Related Acts, this part, or 29 CFR part 1 or 3; or
d. Informing any other person about their rights under the DBA, Related Acts, this part, or 29 CFR part 1 or 3.

V. CONTRACT WORK HOURS AND SAFETY

STANDARDS ACT
Pursuant to 29 CFR 5.5(b), the following clauses apply to any Federal-aid construction contract in an amount in
excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act.

These clauses shall be inserted in addition to the clauses required by 29 CFR 5.5(a) or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include
watchpersons and guards.

1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 29 CFR 5.5.

2. Violation; liability for unpaid wages; liquidated
damages. In the event of any violation of the clause set forth in paragraph 1 of this section, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages and interest from the date of the
underpayment. In addition, such contractor and
subcontractor shall be liable to the United States (in the case of work done under contract for the District of
Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or
mechanic, including watchpersons and guards, employed
in violation of the clause set forth in paragraph 1 of this section., in the sum currently provided in 29 CFR 5.5(b)(2)* for each calendar day on which such individual was
required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph 1. of this section.
* $31 as of January 15, 2023 (See 88 FR 88 FR 2210) as
may be adjusted annually by the Department of Labor,
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990.

3. Withholding for unpaid wages and liquidated
damages
a. Withholding process. The FHWA or the contracting
agency may, upon its own action, or must, upon written
request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the
contractor so much of the accrued payments or advances as may be considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for any unpaid wages; monetary relief, including interest; and liquidated damages required by the clauses set forth in this section on this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract subject to the Contract Work Hours and Safety Standards Act that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to the Contract Work Hours and Safety Standards Act and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the
contractor liability for which the funds were withheld. b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with Section IV paragraph 2.a. or paragraph 3.a. of this section, or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a
contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.

4. Subcontracts. The contractor or subcontractor must
insert in any subcontracts the clauses set forth in paragraphs

1. through 5. of this section and a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor is responsible for
compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 1. through 5. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower- tier subcontractors, and associated liquidated
damages and may be subject to debarment, as appropriate.

5. Anti-retaliation. It is unlawful for any person to
discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate
against, or to cause any person to discharge, demote,
intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its
implementing regulations in this part;

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b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under CWHSSA or this part;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under CWHSSA or this part; or
d. Informing any other person about their rights under
CWHSSA or this part.

VI. SUBLETTING OR ASSIGNING THE CONTRACT
This provision is applicable to all Federal-aid construction contracts on the National Highway System pursuant to 23 CFR 635.116.

1. The contractor shall perform with its own organization contract work amounting to not less than 30 percent (or a greater percentage if specified elsewhere in the contract) of the total original contract price, excluding any specialty items designated by the contracting agency. Specialty items may be performed by subcontract and the amount of any such
specialty items performed may be deducted from the total original contract price before computing the amount of work required to be performed by the contractor's own
organization (23 CFR 635.116).
a. The term “perform work with its own organization” in paragraph 1 of Section VI refers to workers employed or leased by the prime contractor, and equipment owned or
rented by the prime contractor, with or without operators.

Such term does not include employees or equipment of a
subcontractor or lower tier subcontractor, agents of the prime contractor, or any other assignees. The term may
include payments for the costs of hiring leased employees from an employee leasing firm meeting all relevant Federal and State regulatory requirements. Leased employees may only be included in this term if the prime contractor meets all of the following conditions: (based on longstanding interpretation)
(1) the prime contractor maintains control over the
supervision of the day-to-day activities of the leased
employees;
(2) the prime contractor remains responsible for the
quality of the work of the leased employees;
(3) the prime contractor retains all power to accept or exclude individual employees from work on the project; and (4) the prime contractor remains ultimately responsible for the payment of predetermined minimum wages, the
submission of payrolls, statements of compliance and all other Federal regulatory requirements.
b. "Specialty Items" shall be construed to be limited to work that requires highly specialized knowledge, abilities, or equipment not ordinarily available in the type of
contracting organizations qualified and expected to bid or propose on the contract as a whole and in general are to be limited to minor components of the overall contract. 23 CFR 635.102.

2. Pursuant to 23 CFR 635.116(a), the contract amount
upon which the requirements set forth in paragraph (1) of Section VI is computed includes the cost of material and manufactured products which are to be purchased or
produced by the contractor under the contract provisions.

3. Pursuant to 23 CFR 635.116(c), the contractor shall
furnish (a) a competent superintendent or supervisor who is employed by the firm, has full authority to direct
performance of the work in accordance with the contract requirements, and is in charge of all construction
operations (regardless of who performs the work) and (b) such other of its own organizational resources (supervision, management, and engineering services) as the contracting officer determines is necessary to assure the performance of the contract.

4. No portion of the contract shall be sublet, assigned or otherwise disposed of except with the written consent of the contracting officer, or authorized representative, and such consent when given shall not be construed to relieve the contractor of any responsibility for the fulfillment of the contract. Written consent will be given only after the
contracting agency has assured that each subcontract is evidenced in writing and that it contains all pertinent provisions and requirements of the prime contract. (based on long- standing interpretation of 23 CFR 635.116).

5. The 30-percent self-performance requirement of
paragraph (1) is not applicable to design-build contracts; however, contracting agencies may establish their own selfperformance requirements. 23 CFR 635.116(d).

VII. SAFETY: ACCIDENT PREVENTION
This provision is applicable to all Federal-aid
construction contracts and to all related subcontracts.

1. In the performance of this contract the contractor shall comply with all applicable Federal, State, and local laws governing safety, health, and sanitation (23 CFR Part 635).

The contractor shall provide all safeguards, safety devices and protective equipment and take any other needed
actions as it determines, or as the contracting officer may determine, to be reasonably necessary to protect the life and health of employees on the job and the safety of the public and to protect property in connection with the
performance of the work covered by the contract. 23 CFR 635.108.

2. It is a condition of this contract, and shall be made a condition of each subcontract, which the contractor enters into pursuant to this contract, that the contractor and any subcontractor shall not permit any employee, in
performance of the contract, to work in surroundings or under conditions which are unsanitary, hazardous or
dangerous to his/her health or safety, as determined under construction safety and health standards (29 CFR Part
1926) promulgated by the Secretary of Labor, in
accordance with Section 107 of the Contract Work Hours
and Safety Standards Act (40 U.S.C. 3704). 29 CFR
1926.10.

3. Pursuant to 29 CFR 1926.3, it is a condition of this contract that the Secretary of Labor or authorized
representative thereof, shall have right of entry to any site of contract performance to inspect or investigate the matter of compliance with the construction safety and health
standards and to carry out the duties of the Secretary under Section 107 of the Contract Work Hours and Safety
Standards Act (40 U.S.C. 3704).

VIII. FALSE STATEMENTS CONCERNING

HIGHWAY PROJECTS
This provision is applicable to all Federal-aid
construction contracts and to all related subcontracts.

In order to assure high quality and durable construction in conformity with approved plans and specifications and a high degree of reliability on statements and representations made by engineers, contractors, suppliers, and workers on Federalaid highway projects, it is essential that all persons concerned with the project perform their functions as

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carefully, thoroughly, and honestly as possible. Willful falsification, distortion, or misrepresentation with respect to any facts related to the project is a violation of Federal law.

To prevent any misunderstanding regarding the seriousness of these and similar acts, Form FHWA-1022 shall be posted on each Federal-aid highway project (23 CFR Part 635) in one or more places where it is readily available to all persons concerned with the project:
18 U.S.C. 1020 reads as follows:
"Whoever, being an officer, agent, or employee of the
United States, or of any State or Territory, or whoever, whether a person, association, firm, or corporation,
knowingly makes any false statement, false representation, or false report as to the character, quality, quantity, or cost of the material used or to be used, or the quantity or quality of the work performed or to be performed, or the cost thereof in connection with the submission of plans, maps,
specifications, contracts, or costs of construction on any highway or related project submitted for approval to the Secretary of Transportation; or
Whoever knowingly makes any false statement, false
representation, false report or false claim with respect to the character, quality, quantity, or cost of any work performed or to be performed, or materials furnished or to be furnished, in connection with the construction of any highway or related project approved by the Secretary of Transportation; or Whoever knowingly makes any false statement or false
representation as to material fact in any statement,
certificate, or report submitted pursuant to provisions of the Federal-aid Roads Act approved July 11, 1916, (39 Stat. 355), as amended and supplemented;
Shall be fined under this title or imprisoned not more than 5 years or both."
IX. IMPLEMENTATION OF CLEAN AIR ACT AND
FEDERAL WATER POLLUTION CONTROL ACT (42
U.S.C. 7606; 2 CFR 200.88; EO 11738)
This provision is applicable to all Federal-aid
construction contracts in excess of $150,000 and to all related subcontracts. 48 CFR 2.101; 2 CFR 200.327.

By submission of this bid/proposal or the execution of this contract or subcontract, as appropriate, the bidder, proposer, Federal-aid construction contractor, subcontractor, supplier, or vendor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal Highway Administration and the
Regional Office of the Environmental Protection Agency. 2 CFR Part 200, Appendix II.

The contractor agrees to include or cause to be included the requirements of this Section in every subcontract, and further agrees to take such action as the contracting
agency may direct as a means of enforcing such
requirements. 2 CFR 200.327.

X. CERTIFICATION REGARDING DEBARMENT,

SUSPENSION, INELIGIBILITY AND VOLUNTARY

EXCLUSION
This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements,
consultant contracts or any other covered transaction
requiring FHWA approval or that is estimated to cost
$25,000 or more – as defined in 2 CFR Parts 180 and
1200. 2 CFR 180.220 and 1200.220.

1. Instructions for Certification – First TierParticipants:
a. By signing and submitting this proposal, the
prospective first tier participant is providing the
certification set out below.
b. The inability of a person to provide the certification set out below will not necessarily result in denial of participation in this covered transaction. The prospective first tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the
department or agency's determination whether to enter into this transaction. However, failure of the prospective first tier participant to furnish a certification or an explanation shall disqualify such a person from participation in this
transaction. 2 CFR 180.320.
c. The certification in this clause is a material
representation of fact upon which reliance was placed when the contracting agency determined to enter into this
transaction. If it is later determined that the prospective participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal
Government, the contracting agency may terminate this
transaction for cause of default. 2 CFR 180.325.
d. The prospective first tier participant shall provide immediate written notice to the contracting agency to
whom this proposal is submitted if any time the
prospective first tier participant learns that its certification was erroneous when submitted or has become
erroneous by reason of changed circumstances. 2 CFR
180.345 and 180.350.
e. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900-180.1020, and 1200. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general
contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers).
f. The prospective first tier participant agrees by
submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 2 CFR 180.330.
g. The prospective first tier participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions," provided by the department or contracting agency, entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 180.300.
h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended,

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ineligible, or voluntarily excluded from the covered
transaction, unless it knows that the certification is
erroneous. 2 CFR 180.300; 180.320, and 180.325. A
participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to
participate in covered transactions. 2 CFR 180.335. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/). 2 CFR 180.300, 180.320, and180.325.
i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of the prospective participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
j. Except for transactions authorized under paragraph (f) of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 2 CFR 180.325.
* * * * *

2. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion – First Tier
Participants:
a. The prospective first tier participant certifies to the best of its knowledge and belief, that it and its principals:
(1) Are not presently debarred, suspended, proposed
for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency, 2 CFR 180.335;.
(2) Have not within a three-year period preceding this
proposal been convicted of or had a civil judgment
rendered against them for commission of fraud or a
criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or
receiving stolen property, 2 CFR 180.800;
(3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses
enumerated in paragraph (a)(2) of this certification, 2 CFR 180.700 and 180.800; and
(4) Have not within a three-year period preceding this
application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. 2 CFR 180.335(d).
(5) Are not a corporation that has been convicted of a
felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6
implementing appropriations act requirements); and
(6) Are not a corporation with any unpaid Federal tax
liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have
lapsed, and that is not being paid in a timely manner
pursuant to an agreement with the authority responsible for collecting the tax liability (USDOT Order 4200.6
implementing appropriations act requirements).
b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal. 2 CFR 180.335 and 180.340.
* * * * *

3. Instructions for Certification - Lower TierParticipants:
(Applicable to all subcontracts, purchase orders, and
other lower tier transactions requiring prior FHWA
approval or estimated to cost $25,000 or more - 2 CFR
Parts 180 and 1200). 2 CFR 180.220 and 1200.220.
a. By signing and submitting this proposal, the
prospective lower tier participant is providing the
certification set out below.
b. The certification in this clause is a material
representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly
rendered an erroneous certification, in addition to other remedies available to the Federal Government, the
department, or agency with which this transaction
originated may pursue available remedies, including
suspension and/or debarment.
c. The prospective lower tier participant shall provide immediate written notice to the person to which this
proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. 2 CFR 180.365.
d. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person,"
"principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900 – 180.1020, and 1200. You may contact the person to
which this proposal is submitted for assistance in obtaining a copy of those regulations. “First Tier Covered
Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier
Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as
subcontracts). “First Tier Participant” refers to the
participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers).
e. The prospective lower tier participant agrees by
submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 2 CFR 1200.220 and 1200.332. f. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and
1200.220.

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g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended,
ineligible, or voluntarily excluded from the covered
transaction, unless it knows that the certification is erroneous.

A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to
participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management
website (https://www.sam.gov/), which is compiled by the General Services Administration. 2 CFR 180.300, 180.320, 180.330, and 180.335.
h. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause.

The knowledge and information of participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
i. Except for transactions authorized under paragraph e of these instructions, if a participant in a covered
transaction knowingly enters into a lower tier covered
transaction with a person who is suspended, debarred,
ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 2 CFR 180.325.
* * * * *
4 Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion--Lower Tier
Participants:
a. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals:
(1) is presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency, 2 CFR 180.355;
(2) is a corporation that has been convicted of a felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6
implementing appropriations act requirements);and
(3) is a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and
administrative remedies have been exhausted, or have
lapsed, and that is not being paid in a timely manner
pursuant to an agreement with the authority responsible for collecting the tax liability. (USDOT Order 4200.6
implementing appropriations act requirements)
b. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal.
* * * * *
XI. CERTIFICATION REGARDING USE OF

CONTRACT FUNDS FOR LOBBYING
This provision is applicable to all Federal-aid
construction contracts and to all related subcontracts
which exceed $100,000. 49 CFR Part 20, App. A.

1. The prospective participant certifies, by signing
and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of
any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal
contract, grant, loan, or cooperative agreement.
b. If any funds other than Federal appropriated funds
have been paid or will be paid to any person for
influencing or attempting to influence an officer or
employee of any Federal agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal
contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard FormLLL, "Disclosure Form to Report Lobbying," in accordance with itsinstructions.

2. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

3. The prospective participant also agrees by submitting its bid or proposal that the participant shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all
such recipients shall certify and disclose accordingly.

XII. USE OF UNITED STATES-FLAG VESSELS:

This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, or any other covered transaction. 46 CFR Part 381.

This requirement applies to material or equipment that is acquired for a specific Federal-aid highway project. 46 CFR 381.7. It is not applicable to goods or materials that come into inventories independent of an FHWA funded-contract.

When oceanic shipments (or shipments across the Great
Lakes) are necessary for materials or equipment acquired for a specific Federal-aid construction project, the bidder, proposer, contractor, subcontractor, or vendor agrees:

1. To utilize privately owned United States-flag commercial vessels to ship at least 50 percent of the gross tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever shipping any equipment, material, or commodities pursuant to this contract, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels. 46 CFR 381.7.

2. To furnish within 20 days following the date of loading for shipments originating within the United States or within 30 working days following the date of loading for shipments originating outside the United States, a legible copy of a rated, ‘on-board’ commercial ocean bill-of-lading in English for each shipment of cargo described in paragraph (b)(1) of this section to both the Contracting Officer (through the prime contractor in the case of subcontractor bills-of-lading) and to the Office of Cargo and Commercial Sealift (MAR620), Maritime Administration, Washington, DC 20590. (MARAD requires copies of the ocean carrier's (master) bills

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 911 of 1671 C-17
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
of lading, certified onboard, dated, with rates and charges.

These bills of lading may contain business sensitive
information and therefore may be submitted directly to
MARAD by the Ocean Transportation Intermediary on
behalf of the contractor). 46 CFR 381.7.

ATTACHMENT A - EMPLOYMENT AND MATERIALS

PREFERENCE FOR APPALACHIAN DEVELOPMENT

HIGHWAY SYSTEM OR APPALACHIAN LOCAL
ACCESS ROAD CONTRACTS (23 CFR 633, Subpart B,
Appendix B) This provision is applicable to all Federal-aid projects funded under the Appalachian Regional
Development Act of 1965.

1. During the performance of this contract, the contractor undertaking to do work which is, or reasonably may be,
done as on-site work, shall give preference to qualified persons who regularly reside in the labor area as
designated by the DOL wherein the contract work is
situated, or the subregion, or the Appalachian counties of the State wherein the contract work is situated, except:
a. To the extent that qualified persons regularly residing in the area are not available.
b. For the reasonable needs of the contractor to employ supervisory or specially experienced personnel necessary to assure an efficient execution of the contract work.
c. For the obligation of the contractor to offer employment to present or former employees as the result of a lawful collective bargaining contract, provided that the number of nonresident persons employed under this subparagraph
(1c) shall not exceed 20 percent of the total number of employees employed by the contractor on the contract
work, except as provided in subparagraph (4) below.

2. The contractor shall place a job order with the State Employment Service indicating (a) the classifications of the laborers, mechanics and other employees required to
perform the contract work, (b) the number of employees
required in each classification, (c) the date on which the participant estimates such employees will be required, and (d) any other pertinent information required by the State Employment Service to complete the job order form. The
job order may be placed with the State Employment Service in writing or by telephone. If during the course of the contract work, the information submitted by the contractor in the original job order is substantially modified, the participant shall promptly notify the State Employment
Service.

3. The contractor shall give full consideration to all qualified job applicants referred to him by the State Employment
Service. The contractor is not required to grant employment to any job applicants who, in his opinion, are not qualified to perform the classification of work required.

4. If, within one week following the placing of a job order by the contractor with the State Employment Service, the State Employment Service is unable to refer any qualified job applicants to the contractor, or less than the number
requested, the State Employment Service will forward a
certificate to the contractor indicating the unavailability of applicants. Such certificate shall be made a part of the contractor's permanent project records. Upon receipt of this certificate, the contractor may employ persons who do not normally reside in the labor area to fill positions covered by the certificate, notwithstanding the provisions of
subparagraph (1c) above.

5. The provisions of 23 CFR 633.207(e) allow the
contracting agency to provide a contractual preference for the use of mineral resource materials native to the
Appalachian region.

6. The contractor shall include the provisions of Sections 1 through 4 of this Attachment A in every subcontract for work which is, or reasonably may be, done as on-site work.
6 .
.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 912 of 1671 C-18
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
"General Decision Number: CA20240025 03/08/2024
Superseded General Decision Number: CA20230025
State: California
Construction Types: Building, Heavy (Heavy and Dredging) and Highway
County: Riverside County in California.

BUILDING CONSTRUCTION PROJECTS; DREDGING PROJECTS (does not include hopper dredge work); HEAVY CONSTRUCTION PROJECTS (does not include water well drilling); HIGHWAY CONSTRUCTION PROJECTS Note: Contracts subject to the Davis-Bacon Act are generally required to pay at least the applicable minimum wage rate required under Executive Order 14026 or Executive Order 13658.

Please note that these Executive Orders apply to covered contracts entered into by the federal government that are subject to the Davis-Bacon Act itself, but do not apply to contracts subject only to the Davis-Bacon Related Acts, including those set forth at 29 CFR 5.1(a)(1).
______________________________________________________________ |If the contract is entered |. Executive Order 14026 |
|into on or after January 30, | generally applies to the | |2022, or the contract is | contract. |
|renewed or extended (e.g., an |. The contractor must pay | |option is exercised) on or | all covered workers at |
|after January 30, 2022: | least $17.20 per hour (or |
| | the applicable wage rate |
| | listed on this wage |
| | determination, if it is |
| | higher) for all hours |
| | spent performing on the |
| | contract in 2024. |
|______________________________|_____________________________| |If the contract was awarded on|. Executive Order 13658 | |or between January 1, 2015 and| generally applies to the | |January 29, 2022, and the | contract. |
|contract is not renewed or |. The contractor must pay all| |extended on or after January | covered workers at least | |30, 2022: | $12.90 per hour (or the |
| | applicable wage rate listed|
| | on this wage determination,|
| | if it is higher) for all |
| | hours spent performing on |
| | that contract in 2024. |
|______________________________|_____________________________| The applicable Executive Order minimum wage rate will be adjusted annually. If this contract is covered by one of the Executive Orders and a classification considered necessary for performance of work on the contract does not appear on this wage determination, the contractor must still submit a
conformance request.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 913 of 1671 C-19
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Additional information on contractor requirements and worker protections under the Executive Orders is available at
http://www.dol.gov/whd/govcontracts.

Modification Number Publication Date
0 01/05/2024
1 01/12/2024
2 01/19/2024
3 02/23/2024
4 03/08/2024
ASBE0005-002 09/01/2023
Rates Fringes
Asbestos Workers/Insulator
(Includes the application of
all insulating materials,
protective coverings,
coatings, and finishes to all
types of mechanical systems).....$ 49.58 25.27
Fire Stop Technician
(Application of Firestopping
Materials for wall openings
and penetrations in walls,
floors, ceilings and curtain
walls)...........................$ 36.97 20.36
---------------------------------------------------------------- ASBE0005-004 07/04/2022
Rates Fringes
Asbestos Removal
worker/hazardous material
handler (Includes
preparation, wetting,
stripping, removal,
scrapping, vacuuming, bagging
and disposing of all
insulation materials from
mechanical systems, whether
they contain asbestos or not)....$ 23.52 13.37
---------------------------------------------------------------- BOIL0092-003 01/01/2024
Rates Fringes
BOILERMAKER......................$ 51.98 42.11
---------------------------------------------------------------- * BRCA0004-011 05/01/2020
Rates Fringes
BRICKLAYER; MARBLE SETTER........$ 41.48 18.63
*The wage scale for prevailing wage projects performed in

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 914 of 1671 C-20
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Blythe, China lake, Death Valley, Fort Irwin, Twenty-Nine Palms, Needles and 1-15 corridor (Barstow to the Nevada State Line) will be Three Dollars ($3.00) above the
standard San Bernardino/Riverside County hourly wage rate ---------------------------------------------------------------- BRCA0018-004 06/01/2022
Rates Fringes
MARBLE FINISHER..................$ 37.87 14.13
TILE FINISHER....................$ 32.44 12.54
TILE LAYER.......................$ 45.05 18.33
---------------------------------------------------------------- BRCA0018-010 09/01/2022
Rates Fringes
TERRAZZO FINISHER................$ 38.37 14.13
TERRAZZO WORKER/SETTER...........$ 46.49 14.66
---------------------------------------------------------------- CARP0213-001 07/01/2021
Rates Fringes

CARPENTER
(1) Carpenter, Cabinet
Installer, Insulation
Installer, Hardwood Floor
Worker and acoustical
installer...................$ 51.60 16.28
(2) Millwright..............$ 52.10 16.48
(3) Piledrivermen/Derrick
Bargeman, Bridge or Dock
Carpenter, Heavy Framer,
Rock Bargeman or Scowman,
Rockslinger, Shingler
(Commercial)................$ 51.73 16.28
(4) Pneumatic Nailer,
Power Stapler...............$ 51.85 16.28
(5) Sawfiler...............$ 51.69 16.28
(6) Scaffold Builder.......$ 42.80 16.28
(7) Table Power Saw
Operator....................$ 51.70 16.28
FOOTNOTE: Work of forming in the construction of open cut sewers or storm drains, on operations in which horizontal lagging is used in conjunction with steel H-Beams driven or placed in pre- drilled holes, for that portion of a lagged trench against which concrete is poured, namely, as a
substitute for back forms (which work is performed by
piledrivers): $0.13 per hour additional.
---------------------------------------------------------------- CARP0213-002 07/01/2021
Rates Fringes

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 915 of 1671 C-21
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Diver
(1) Wet.....................$ 834.40 16.28
(2) Standby.................$ 445.84 16.28
(3) Tender..................$ 437.84 16.28
(4) Assistant Tender........$ 413.84 16.28
Amounts in ""Rates' column are per day
---------------------------------------------------------------- CARP0213-004 07/01/2021
Rates Fringes
Drywall
DRYWALL INSTALLER/LATHER....$ 51.60 16.28
STOCKER/SCRAPPER............$ 22.16 8.62
---------------------------------------------------------------- CARP0721-001 07/01/2021
Rates Fringes
Modular Furniture Installer......$ 21.85 7.15
---------------------------------------------------------------- ELEC0440-001 01/01/2024
Rates Fringes

ELECTRICIAN
INSIDE ELECTRICIAN..........$ 53.76 3%+27.50

INTELLIGENT TRANSPORTATION

SYSTEMS
Electrician................$ 36.99 3%+23.18
Technician.................$ 27.75 3%+23.18
ZONE PAY: Zone A: Free travel zone for all contractors
performing work in Zone A.

Zone B:Any work performed in Zone (B) shall add $12.00 per hour to the current wage scale. Zone (B) shall be the area from the eastern perimeter of Zone (A) to a line which runs north and south begininng at Little Morongo Canyon (San Bernardino/Riverside County Line), Southeast along the
Coachella Tunnels, Colorado River Aqueduct and Mecca
Tunnels to Pinkham Wash then South to Box Canyon Road, then southwest along Box Canyon Road to Highway 195 west onto 195 south to Highway 86 to Riverside/Imperial County Line. ---------------------------------------------------------------- ELEC1245-001 06/01/2022
Rates Fringes

LINE CONSTRUCTION
(1) Lineman; Cable splicer..$ 64.40 22.58
(2) Equipment specialist
(operates crawler
tractors, commercial motor
vehicles, backhoes,
trenchers, cranes (50 tons
and below), overhead &

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 916 of 1671 C-22
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
underground distribution
line equipment).............$ 50.00 21.30
(3) Groundman...............$ 38.23 20.89
(4) Powderman...............$ 51.87 18.79
HOLIDAYS: New Year's Day, M.L. King Day, Memorial Day,
Independence Day, Labor Day, Veterans Day, Thanksgiving Day and day after Thanksgiving, Christmas Day
---------------------------------------------------------------- ELEV0018-001 01/01/2024
Rates Fringes
ELEVATOR MECHANIC................$ 66.63 37.885+a+b
FOOTNOTE:
a. PAID VACATION: Employer contributes 8% of regular hourly rate as vacation pay credit for employees with more than 5 years of service, and 6% for 6 months to 5 years of service. b. PAID HOLIDAYS: New Year's Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, Friday after Thanksgiving, and Christmas Day.
---------------------------------------------------------------- ENGI0012-004 08/01/2023
Rates Fringes
OPERATOR: Power Equipment
(DREDGING)
(1) Leverman................$ 64.10 34.60
(2) Dredge dozer............$ 58.13 34.60
(3) Deckmate................$ 58.02 34.60
(4) Winch operator (stern
winch on dredge)............$ 57.47 34.60
(5) Fireman-Oiler,
Deckhand, Bargeman,
Leveehand...................$ 56.93 34.60
(6) Barge Mate..............$ 57.54 34.60
---------------------------------------------------------------- ENGI0012-024 07/01/2023
Rates Fringes
OPERATOR: Power Equipment
(All Other Work)
GROUP 1....................$ 53.90 32.80
GROUP 2....................$ 54.68 32.80
GROUP 3....................$ 54.97 32.80
GROUP 4....................$ 56.46 32.80
GROUP 6....................$ 56.68 32.80
GROUP 8....................$ 56.79 32.80
GROUP 10....................$ 56.91 32.80
GROUP 12....................$ 57.08 32.80
GROUP 13....................$ 57.18 32.80
GROUP 14....................$ 57.21 32.80

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 917 of 1671 C-23
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
GROUP 15....................$ 57.29 32.80
GROUP 16....................$ 57.41 32.80
GROUP 17....................$ 57.58 32.80
GROUP 18....................$ 57.68 32.80
GROUP 19....................$ 57.79 32.80
GROUP 20....................$ 57.91 32.80
GROUP 21....................$ 58.08 32.80
GROUP 22....................$ 58.18 32.80
GROUP 23....................$ 58.29 32.80
GROUP 24....................$ 58.41 32.80
GROUP 25....................$ 58.58 32.80
OPERATOR: Power Equipment
(Cranes, Piledriving &
Hoisting)
GROUP 1....................$ 55.25 32.80
GROUP 2....................$ 56.03 32.80
GROUP 3....................$ 56.32 32.80
GROUP 4....................$ 56.46 32.80
GROUP 5....................$ 56.68 32.80
GROUP 6....................$ 56.79 32.80
GROUP 7....................$ 56.91 32.80
GROUP 8....................$ 57.08 32.80
GROUP 9....................$ 57.25 32.80
GROUP 10....................$ 58.25 32.80
GROUP 11....................$ 59.25 32.80
GROUP 12....................$ 60.25 32.80
GROUP 13....................$ 61.25 32.80
OPERATOR: Power Equipment
(Tunnel Work)
GROUP 1....................$ 55.75 32.80
GROUP 2....................$ 56.53 32.80
GROUP 3....................$ 56.82 32.80
GROUP 4....................$ 56.96 32.80
GROUP 5....................$ 57.18 32.80
GROUP 6....................$ 57.29 32.80
GROUP 7....................$ 57.41 32.80
PREMIUM PAY:
$10.00 per hour shall be paid on all Power Equipment Operator work on the followng Military Bases: China Lake Naval
Reserve, Vandenberg AFB, Point Arguello, Seely Naval Base, Fort Irwin, Nebo Annex Marine Base, Marine Corp Logistics Base Yermo, Edwards AFB, 29 Palms Marine Base and Camp
Pendleton
Workers required to suit up and work in a hazardous material environment: $2.00 per hour additional. Combination mixer and compressor operator on gunite work shall be classified as a concrete mobile mixer operator.

SEE ZONE DEFINITIONS AFTER CLASSIFICATIONS

POWER EQUIPMENT OPERATORS CLASSIFICATIONS
GROUP 1: Bargeman; Brakeman; Compressor operator; Ditch Witch, with seat or similar type equipment; Elevator
operator-inside; Engineer Oiler; Forklift operator
(includes loed, lull or similar types under 5 tons;

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 918 of 1671 C-24
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Generator operator; Generator, pump or compressor plant operator; Pump operator; Signalman; Switchman
GROUP 2: Asphalt-rubber plant operator (nurse tank
operator);Coil Tubing Rig Operator, Concrete mixer
operator-skip type; Conveyor operator; Fireman; Forklift operator (includes loed, lull or similar types over 5 tons; Hydrostatic pump operator; oiler crusher (asphalt or
concrete plant); Petromat laydown machine; PJU side dum jack; Screening and conveyor machine operator (or similar types); Skiploader (wheel type up to 3/4 yd. without
attachment); Tar pot fireman; Temporary heating plant
operator; Trenching machine oiler
GROUP 3: Asphalt-rubber blend operator; Bobcat or similar type (Skid steer); Equipment greaser (rack); Ford Ferguson (with dragtype attachments); Helicopter radioman (ground); Stationary pipe wrapping and cleaning machine operator
GROUP 4: Asphalt plant fireman; Backhoe operator (mini-max or similar type); Boring machine operator; Boxman or mixerman (asphalt or concrete); Chip spreading machine operator; Concrete cleaning decontamination machine operator;
Concrete Pump Operator (small portable);Direct Push
Operator (Geoprobe or similar types) Drilling machine
operator, small auger types (Texoma super economatic or similar types - Hughes 100 or 200 or similar types -
drilling depth of 30' maximum); Equipment greaser (grease truck); Guard rail post driver operator; Highline cableway signalman; Hydra-hammer-aero stomper; Micro Tunneling
(above ground tunnel); Power concrete curing machine
operator; Power concrete saw operator; Power-driven jumbo form setter operator; Power sweeper operator; Rock Wheel Saw/Trencher; Roller operator (compacting); Screed operator (asphalt or concrete); Trenching machine operator (up to 6 ft.); Vacuum or much truck
GROUP 6: Articulating material hauler; Asphalt plant
engineer; Batch plant operator; Bit sharpener; Concrete joint machine operator (canal and similar type); Concrete planer operator; Dandy digger; Deck engine operator;
Derrickman (oilfield type); Drilling machine operator,
bucket or auger types (Calweld 100 bucket or similar types - Watson 1000 auger or similar types - Texoma 330, 500 or 600 auger or similar types - drilling depth of 45'
maximum); Drilling machine operator; Hydrographic seeder machine operator (straw, pulp or seed), Jackson track
maintainer, or similar type; Kalamazoo Switch tamper, or similar type; Machine tool operator; Maginnis internal full slab vibrator, Mechanical berm, curb or gutter(concrete or asphalt); Mechanical finisher operator (concrete,
Clary-Johnson-Bidwell or similar); Micro tunnel system
(below ground); Pavement breaker operator (truck mounted); Road oil mixing machine operator; Roller operator (asphalt or finish), rubber-tired earth moving equipment (single engine, up to and including 25 yds. struck); Self-propelled tar pipelining machine operator; Skiploader operator

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 919 of 1671 C-25
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
(crawler and wheel type, over 3/4 yd. and up to and
including 1-1/2 yds.); Slip form pump operator (power
driven hydraulic lifting device for concrete forms);
Tractor operator-bulldozer, tamper-scraper (single engine, up to 100 h.p. flywheel and similar types, up to and
including D-5 and similar types); Tugger hoist operator (1 drum); Ultra high pressure waterjet cutting tool system operator; Vacuum blasting machine operator
GROUP 8: Asphalt or concrete spreading operator (tamping or finishing); Asphalt paving machine operator (Barber Greene or similar type); Asphalt-rubber distribution operator; Backhoe operator (up to and including 3/4 yd.), small ford, Case or similar types; Cable Bundling Machine Operator
(excluding handheld); Cable Trenching Machine Operator
(Spider Plow or similar types) Cast-in-place pipe laying machine operator; Combination mixer and compressor operator (gunite work); Compactor operator (self-propelled);
Concrete mixer operator (paving); Crushing plant operator; Drill Doctor; Drilling machine operator, Bucket or auger types (Calweld 150 bucket or similar types - Watson 1500, 2000 2500 auger or similar types - Texoma 700, 800 auger or similar types - drilling depth of 60' maximum); Elevating grader operator; Grade checker; Gradall operator; Grouting machine operator; Heavy-duty repairman; Heavy equipment robotics operator; Kalamazoo balliste regulator or similar type; Kolman belt loader and similar type; Le Tourneau blob compactor or similar type; Loader operator (Athey, Euclid, Sierra and similar types); Mobark Chipper or similar; Ozzie padder or similar types; P.C. slot saw; Pneumatic concrete placing machine operator (Hackley-Presswell or similar
type); Pumpcrete gun operator; RCM Cementing Unit Operator, Rail/Switch Grinder Operator (Harsco or similar types)
Rock Drill or similar types; Rotary drill operator
(excluding caisson type); Rubber-tired earth-moving
equipment operator (single engine, caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. up to and including 50 cu. yds. struck);
Rubber-tired earth-moving equipment operator (multiple
engine up to and including 25 yds. struck); Rubber-tired scraper operator (self-loading paddle wheel type-John
Deere, 1040 and similar single unit); Self- propelled curb and gutter machine operator; Shuttle buggy; Skiploader
operator (crawler and wheel type over 1-1/2 yds. up to and including 6-1/2 yds.); Soil remediation plant operator; Surface heaters and planer operator; Tractor compressor drill combination operator; Tractor operator (any type
larger than D-5 - 100 flywheel h.p. and over, or
similar-bulldozer, tamper, scraper and push tractor single engine); Tractor operator (boom attachments), Traveling pipe wrapping, cleaning and bendng machine operator;
Trenching machine operator (over 6 ft. depth capacity,
manufacturer's rating); trenching Machine with Road Miner attachment (over 6 ft depth capacity): Ultra high pressure waterjet cutting tool system mechanic; Water pull
(compaction) operator
GROUP 10: Drilling machine operator, Bucket or auger types

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 920 of 1671 C-26
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
(Calweld 200 B bucket or similar types-Watson 3000 or 5000 auger or similar types-Texoma 900 auger or similar
types-drilling depth of 105' maximum); Dual drum mixer, dynamic compactor LDC350 (or similar types); Monorail
locomotive operator (diesel, gas or electric); Motor
patrol-blade operator (single engine); Multiple engine
tractor operator (Euclid and similar type-except Quad 9 cat.); Rubber-tired earth-moving equipment operator (single engine, over 50 yds. struck); Pneumatic pipe ramming tool and similar types; Prestressed wrapping machine operator; Rubber-tired earth-moving equipment operator (single
engine, over 50 yds. struck); Rubber tired earth moving equipment operator (multiple engine, Euclid, caterpillar and similar over 25 yds. and up to 50 yds. struck), Tower crane repairman; Tractor loader operator (crawler and wheel type over 6-1/2 yds.); Woods mixer operator (and similar Pugmill equipment)
GROUP 12: Auto grader operator; Automatic slip form operator; Drilling machine operator, bucket or auger types (Calweld, auger 200 CA or similar types - Watson, auger 6000 or
similar types - Hughes Super Duty, auger 200 or similar types - drilling depth of 175' maximum); Hoe ram or similar with compressor; Mass excavator operator less tha 750 cu. yards; Mechanical finishing machine operator; Mobile form traveler operator; Motor patrol operator (multi-engine); Pipe mobile machine operator; Rubber-tired earth- moving equipment operator (multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck); Rubber-tired self- loading scraper operator (paddle-wheel-auger type self-loading - two (2) or more units)
GROUP 13: Rubber-tired earth-moving equipment operator
operating equipment with push-pull system (single engine, up to and including 25 yds. struck)
GROUP 14: Canal liner operator; Canal trimmer operator; Remote- control earth-moving equipment operator (operating a second piece of equipment: $1.00 per hour additional); Wheel excavator operator (over 750 cu. yds.)
GROUP 15: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple
engine-up to and including 25 yds. struck)
GROUP 16: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, over 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system
(multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 17: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple engine,

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 921 of 1671 C-27
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Euclid, Caterpillar and similar, over 50 cu. yds. struck); Tandem tractor operator (operating crawler type tractors in tandem - Quad 9 and similar type)
GROUP 18: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
single engine, up to and including 25 yds. struck)
GROUP 19: Rotex concrete belt operator (or similar types); Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar types in any
combination, excluding compaction units - single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds.and up to and including 50 cu. yds. struck); Rubber-tired earth-moving equipment
operator, operating in tandem (scrapers, belly dumps and similar types in any combination, excluding compaction
units - multiple engine, up to and including 25 yds. struck) GROUP 20: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating in tandem
(scrapers, belly dumps, and similar types in any
combination, excluding compaction units - multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 21: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck)
GROUP 22: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, up to and including 25 yds. struck)
GROUP 23: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, Caterpillar, Euclid, Athey Wagon and
similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating with the tandem push-pull system (multiple engine, up to and including 25 yds. struck)
GROUP 24: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 25: Concrete pump operator-truck mounted; Rubber-tired

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 922 of 1671 C-28
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
Caterpillar and similar type, over 50 cu. yds. struck); Spyder Excavator Operator, with all attachments

CRANES, PILEDRIVING AND HOISTING EQUIPMENT CLASSIFICATIONS GROUP 1: Engineer oiler; Fork lift operator (includes loed, lull or similar types)
GROUP 2: Truck crane oiler
GROUP 3: A-frame or winch truck operator; Ross carrier
operator (jobsite)
GROUP 4: Bridge-type unloader and turntable operator;
Helicopter hoist operator
GROUP 5: Hydraulic boom truck; Stinger crane (Austin-Western or similar type); Tugger hoist operator (1 drum)
GROUP 6: Bridge crane operator; Cretor crane operator; Hoist operator (Chicago boom and similar type); Lift mobile
operator; Lift slab machine operator (Vagtborg and similar types); Material hoist and/or manlift operator; Polar
gantry crane operator; Self Climbing scaffold (or similar type); Shovel, backhoe, dragline, clamshell operator (over 3/4 yd. and up to 5 cu. yds. mrc); Tugger hoist operator GROUP 7: Pedestal crane operator; Shovel, backhoe, dragline, clamshell operator (over 5 cu. yds. mrc); Tower crane
repair; Tugger hoist operator (3 drum)
GROUP 8: Crane operator (up to and including 25 ton
capacity); Crawler transporter operator; Derrick barge
operator (up to and including 25 ton capacity); Hoist
operator, stiff legs, Guy derrick or similar type (up to and including 25 ton capacity); Shovel, backhoe, dragline, clamshell operator (over 7 cu. yds., M.R.C.)
GROUP 9: Crane operator (over 25 tons and up to and including 50 tons mrc); Derrick barge operator (over 25 tons up to and including 50 tons mrc); Highline cableway operator; Hoist operator, stiff legs, Guy derrick or similar type (over 25 tons up to and including 50 tons mrc); K-crane operator; Polar crane operator; Self erecting tower crane operator maximum lifting capacity ten tons
GROUP 10: Crane operator (over 50 tons and up to and
including 100 tons mrc); Derrick barge operator (over 50 tons up to and including 100 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 50 tons up to and including 100 tons mrc), Mobile tower crane operator (over 50 tons, up to and including 100 tons M.R.C.);
GROUP 11: Crane operator (over 100 tons and up to and
including 200 tons mrc); Derrick barge operator (over 100 tons up to and including 200 tons mrc); Hoist operator,

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 923 of 1671 C-29
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
stiff legs, Guy derrick or similar type (over 100 tons up to and including 200 tons mrc); Mobile tower crane operator (over 100 tons up to and including 200 tons mrc) ; Tower crane operator and tower gantry
GROUP 12: Crane operator (over 200 tons up to and including 300 tons mrc); Derrick barge operator (over 200 tons up to and including 300 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 200 tons, up to and
including 300 tons mrc); Mobile tower crane operator (over 200 tons, up to and including 300 tons mrc)
GROUP 13: Crane operator (over 300 tons); Derrick barge operator (over 300 tons); Helicopter pilot; Hoist operator, stiff legs, Guy derrick or similar type (over 300 tons); Mobile tower crane operator (over 300 tons)

TUNNEL CLASSIFICATIONS
GROUP 1: Skiploader (wheel type up to 3/4 yd. without
attachment)
GROUP 2: Power-driven jumbo form setter operator
GROUP 3: Dinkey locomotive or motorperson (up to and
including 10 tons)
GROUP 4: Bit sharpener; Equipment greaser (grease truck); Slip form pump operator (power-driven hydraulic lifting device for concrete forms); Tugger hoist operator (1 drum); Tunnel locomotive operator (over 10 and up to and including 30 tons)
GROUP 5: Backhoe operator (up to and including 3/4 yd.); Small Ford, Case or similar; Drill doctor; Grouting machine operator; Heading shield operator; Heavy-duty repairperson; Loader operator (Athey, Euclid, Sierra and similar types); Mucking machine operator (1/4 yd., rubber-tired, rail or track type); Pneumatic concrete placing machine operator (Hackley-Presswell or similar type); Pneumatic heading
shield (tunnel); Pumpcrete gun operator; Tractor compressor drill combination operator; Tugger hoist operator (2 drum); Tunnel locomotive operator (over 30 tons)
GROUP 6: Heavy Duty Repairman
GROUP 7: Tunnel mole boring machine operator

ENGINEERS ZONES
$1.00 additional per hour for all of IMPERIAL County and the portions of KERN, RIVERSIDE & SAN BERNARDINO Counties as defined below:

That area within the following Boundary: Begin in San
Bernardino County, approximately 3 miles NE of the intersection of I-15 and the California State line at that point which is the NW corner of Section 1, T17N,m R14E, San Bernardino

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 924 of 1671 C-30
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Meridian. Continue W in a straight line to that point which is the SW corner of the northwest quarter of Section 6, T27S, R42E, Mt. Diablo Meridian. Continue North to the intersection with the Inyo County Boundary at that point which is the NE corner of the western half of the northern quarter of Section 6, T25S, R42E, MDM. Continue W along the Inyo and San
Bernardino County boundary until the intersection with Kern County, as that point which is the SE corner of Section 34, T24S, R40E, MDM. Continue W along the Inyo and Kern County boundary until the intersection with Tulare County, at that point which is the SW corner of the SE quarter of Section 32, T24S, R37E, MDM. Continue W along the Kern and Tulare County boundary, until that point which is the NW corner of T25S, R32E, MDM. Continue S following R32E lines to the NW corner of T31S, R32E, MDM. Continue W to the NW corner of T31S, R31E, MDM. Continue S to the SW corner of T32S, R31E, MDM. Continue W to SW corner of SE quarter of Section 34, T32S, R30E, MDM.

Continue S to SW corner of T11N, R17W, SBM. Continue E along south boundary of T11N, SBM to SW corner of T11N, R7W, SBM.

Continue S to SW corner of T9N, R7W, SBM. Continue E along south boundary of T9N, SBM to SW corner of T9N, R1E, SBM.

Continue S along west boundary of R1E, SMB to Riverside County line at the SW corner of T1S, R1E, SBM. Continue E along south boundary of T1s, SBM (Riverside County Line) to SW corner of T1S, R10E, SBM. Continue S along west boundary of R10E, SBM to Imperial County line at the SW corner of T8S, R10E, SBM.

Continue W along Imperial and Riverside county line to NW corner of T9S, R9E, SBM. Continue S along the boundary between Imperial and San Diego Counties, along the west edge of R9E, SBM to the south boundary of Imperial County/California state line. Follow the California state line west to Arizona state line, then north to Nevada state line, then continuing NW back to start at the point which is the NW corner of Section 1, T17N, R14E, SBM
$1.00 additional per hour for portions of SAN LUIS OBISPO, KERN, SANTA BARBARA & VENTURA as defined below:

That area within the following Boundary: Begin approximately 5 miles north of the community of Cholame, on the Monterey County and San Luis Obispo County boundary at the NW corner of T25S, R16E, Mt. Diablo Meridian. Continue south along the west side of R16E to the SW corner of T30S, R16E, MDM. Continue E to SW corner of T30S, R17E, MDM. Continue S to SW corner of T31S, R17E, MDM. Continue E to SW corner of T31S, R18E, MDM.

Continue S along West side of R18E, MDM as it crosses into San Bernardino Meridian numbering area and becomes R30W. Follow the west side of R30W, SBM to the SW corner of T9N, R30W, SBM.

Continue E along the south edge of T9N, SBM to the Santa Barbara County and Ventura County boundary at that point whch is the SW corner of Section 34.T9N, R24W, SBM, continue S along the Ventura County line to that point which is the SW corner of the SE quarter of Section 32, T7N, R24W, SBM. Continue E along the south edge of T7N, SBM to the SE corner to T7N, R21W, SBM. Continue N along East side of R21W, SBM to Ventura County and Kern County boundary at the NE corner of T8N, R21W.

Continue W along the Ventura County and Kern County boundary to the SE corner of T9N, R21W. Continue North along the East edge

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 925 of 1671 C-31
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
of R21W, SBM to the NE corner of T12N, R21W, SBM. Continue West along the north edge of T12N, SBM to the SE corner of T32S, R21E, MDM. [T12N SBM is a think strip between T11N SBM and T32S MDM]. Continue North along the East side of R21E, MDM to the Kings County and Kern County border at the NE corner of T25S, R21E, MDM, continue West along the Kings County and Kern County Boundary until the intersection of San Luis Obispo County. Continue west along the Kings County and San Luis Obispo County boundary until the intersection with Monterey County. Continue West along the Monterey County and San Luis Obispo County boundary to the beginning point at the NW corner of T25S, R16E, MDM.
$2.00 additional per hour for INYO and MONO Counties and the Northern portion of SAN BERNARDINO County as defined below:

That area within the following Boundary: Begin at the
intersection of the northern boundary of Mono County and the California state line at the point which is the center of Section 17, T10N, R22E, Mt. Diablo Meridian. Continue S then SE along the entire western boundary of Mono County, until it reaches Inyo County at the point which is the NE corner of the Western half of the NW quarter of Section 2, T8S, R29E, MDM.

Continue SSE along the entire western boundary of Inyo County, until the intersection with Kern County at the point which is the SW corner of the SE 1/4 of Section 32, T24S, R37E, MDM.

Continue E along the Inyo and Kern County boundary until the intersection with San Bernardino County at that point which is the SE corner of section 34, T24S, R40E, MDM. Continue E along the Inyo and San Bernardino County boundary until the point which is the NE corner of the Western half of the NW quarter of Section 6, T25S, R42E, MDM. Continue S to that point which is the SW corner of the NW quarter of Section 6, T27S, R42E, MDM.

Continue E in a straight line to the California and Nevada state border at the point which is the NW corner of Section 1, T17N, R14E, San Bernardino Meridian. Then continue NW along the state line to the starting point, which is the center of Section 18, T10N, R22E, MDM.

REMAINING AREA NOT DEFINED ABOVE RECIEVES BASE RATE
---------------------------------------------------------------- IRON0433-006 01/01/2024
Rates Fringes

IRONWORKER
Fence Erector...............$ 42.53 26.26
Ornamental, Reinforcing
and Structural..............$ 47.45 34.90
PREMIUM PAY:
$9.00 additional per hour at the following locations:

China Lake Naval Test Station, Chocolate Mountains Naval

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 926 of 1671 C-32
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Reserve-Niland,
Edwards AFB, Fort Irwin Military Station, Fort Irwin Training Center-Goldstone, San Clemente Island, San Nicholas Island, Susanville Federal Prison, 29 Palms - Marine Corps, U.S. Marine Base - Barstow, U.S. Naval Air Facility - Sealey, Vandenberg AFB Army Defense Language Institute - Monterey, Fallon Air Base, Naval Post Graduate School - Monterey, Yermo Marine Corps Logistics Center
Port Hueneme, Port Mugu, U.S. Coast Guard Station - Two Rock ---------------------------------------------------------------- LABO0300-005 08/01/2022
Rates Fringes
Asbestos Removal Laborer.........$ 39.23 23.28
SCOPE OF WORK: Includes site mobilization, initial site cleanup, site preparation, removal of asbestos-containing material and toxic waste, encapsulation, enclosure and
disposal of asbestos- containing materials and toxic waste by hand or with equipment or machinery; scaffolding,
fabrication of temporary wooden barriers and assembly of decontamination stations.
---------------------------------------------------------------- LABO0345-001 07/01/2022
Rates Fringes

LABORER (GUNITE)
GROUP 1.....................$ 48.50 21.37
GROUP 2.....................$ 47.55 21.37
GROUP 3.....................$ 44.01 21.37
FOOTNOTE: GUNITE PREMIUM PAY: Workers working from a
Bosn'n's Chair or suspended from a rope or cable shall
receive 40 cents per hour above the foregoing applicable classification rates. Workers doing gunite and/or
shotcrete work in a tunnel shall receive 35 cents per hour above the foregoing applicable classification rates, paid on a portal-to-portal basis. Any work performed on, in or above any smoke stack, silo, storage elevator or similar type of structure, when such structure is in excess of
75'-0"" above base level and which work must be performed in whole or in part more than 75'-0"" above base level, that work performed above the 75'-0"" level shall be compensated for at 35 cents per hour above the applicable
classification wage rate.

GUNITE LABORER CLASSIFICATIONS
GROUP 1: Rodmen, Nozzlemen
GROUP 2: Gunmen
GROUP 3: Reboundmen

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 927 of 1671 C-33
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
---------------------------------------------------------------- LABO1184-001 07/01/2022
Rates Fringes
Laborers: (HORIZONTAL

DIRECTIONAL DRILLING)
(1) Drilling Crew Laborer...$ 40.69 18.25
(2) Vehicle Operator/Hauler.$ 40.86 18.25
(3) Horizontal Directional
Drill Operator..............$ 42.71 18.25
(4) Electronic Tracking
Locator.....................$ 44.71 18.25
Laborers: (STRIPING/SLURRY
SEAL)
GROUP 1.....................$ 41.90 21.32
GROUP 2.....................$ 43.20 21.32
GROUP 3.....................$ 45.21 21.32
GROUP 4.....................$ 46.95 21.32

LABORERS - STRIPING CLASSIFICATIONS
GROUP 1: Protective coating, pavement sealing, including repair and filling of cracks by any method on any surface in parking lots, game courts and playgrounds; carstops; operation of all related machinery and equipment; equipment repair technician
GROUP 2: Traffic surface abrasive blaster; pot tender - removal of all traffic lines and markings by any method (sandblasting, waterblasting, grinding, etc.) and
preparation of surface for coatings. Traffic control
person: controlling and directing traffic through both
conventional and moving lane closures; operation of all related machinery and equipment
GROUP 3: Traffic delineating device applicator: Layout and application of pavement markers, delineating signs, rumble and traffic bars, adhesives, guide markers, other traffic delineating devices including traffic control. This
category includes all traffic related surface preparation (sandblasting, waterblasting, grinding) as part of the
application process. Traffic protective delineating system installer: removes, relocates, installs, permanently
affixed roadside and parking delineation barricades,
fencing, cable anchor, guard rail, reference signs,
monument markers; operation of all related machinery and equipment; power broom sweeper
GROUP 4: Striper: layout and application of traffic stripes and markings; hot thermo plastic; tape traffic stripes and markings, including traffic control; operation of all
related machinery and equipment
---------------------------------------------------------------- LABO1184-002 07/01/2022

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 928 of 1671 C-34
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Rates Fringes

LABORER (TUNNEL)
GROUP 1.....................$ 45.68 23.30
GROUP 2.....................$ 46.00 23.30
GROUP 3.....................$ 46.46 23.30
GROUP 4.....................$ 47.15 23.30

LABORER
GROUP 1.....................$ 36.39 21.04
GROUP 2.....................$ 36.94 21.04
GROUP 3.....................$ 37.49 21.04
GROUP 4.....................$ 39.04 21.04
GROUP 5.....................$ 39.39 21.04

LABORER CLASSIFICATIONS
GROUP 1: Cleaning and handling of panel forms; Concrete screeding for rough strike-off; Concrete, water curing; Demolition laborer, the cleaning of brick if performed by a worker performing any other phase of demolition work, and the cleaning of lumber; Fire watcher, limber, brush loader, piler and debris handler; Flag person; Gas, oil and/or
water pipeline laborer; Laborer, asphalt-rubber material loader; Laborer, general or construction; Laborer, general clean-up; Laborer, landscaping; Laborer, jetting; Laborer, temporary water and air lines; Material hose operator
(walls, slabs, floors and decks); Plugging, filling of shee bolt holes; Dry packing of concrete; Railroad maintenance, repair track person and road beds; Streetcar and railroad construction track laborers; Rigging and signaling; Scaler; Slip form raiser; Tar and mortar; Tool crib or tool house laborer; Traffic control by any method; Window cleaner; Wire mesh pulling - all concrete pouring operations
GROUP 2: Asphalt shoveler; Cement dumper (on 1 yd. or larger mixer and handling bulk cement); Cesspool digger and
installer; Chucktender; Chute handler, pouring concrete, the handling of the chute from readymix trucks, such as walls, slabs, decks, floors, foundation, footings, curbs, gutters and sidewalks; Concrete curer, impervious membrane and form oiler; Cutting torch operator (demolition); Fine grader, highways and street paving, airport, runways and similar type heavy construction; Gas, oil and/or water
pipeline wrapper - pot tender and form person; Guinea
chaser; Headerboard person - asphalt; Laborer, packing rod steel and pans; Membrane vapor barrier installer; Power broom sweeper (small); Riprap stonepaver, placing stone or wet sacked concrete; Roto scraper and tiller; Sandblaster (pot tender); Septic tank digger and installer(lead); Tank scaler and cleaner; Tree climber, faller, chain saw
operator, Pittsburgh chipper and similar type brush
shredder; Underground laborer, including caisson bellower GROUP 3: Buggymobile person; Concrete cutting torch; Concrete pile cutter; Driller, jackhammer, 2-1/2 ft. drill steel or longer; Dri-pak-it machine; Gas, oil and/or water pipeline wrapper, 6-in. pipe and over, by any method, inside and out; High scaler (including drilling of same); Hydro seeder

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 929 of 1671 C-35
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
and similar type; Impact wrench multi-plate; Kettle person, pot person and workers applying asphalt, lay-kold,
creosote, lime caustic and similar type materials
(""applying"" means applying, dipping, brushing or handling of such materials for pipe wrapping and waterproofing); Operator of pneumatic, gas, electric tools, vibrating
machine, pavement breaker, air blasting, come-alongs, and similar mechanical tools not separately classified herein; Pipelayer's backup person, coating, grouting, making of joints, sealing, caulking, diapering and including rubber gasket joints, pointing and any and all other services; Rock slinger; Rotary scarifier or multiple head concrete chipping scarifier; Steel headerboard and guideline setter; Tamper, Barko, Wacker and similar type; Trenching machine, hand-propelled
GROUP 4: Asphalt raker, lute person, ironer, asphalt dump person, and asphalt spreader boxes (all types); Concrete core cutter (walls, floors or ceilings), grinder or sander; Concrete saw person, cutting walls or flat work, scoring old or new concrete; Cribber, shorer, lagging, sheeting and trench bracing, hand-guided lagging hammer; Head rock
slinger; Laborer, asphalt- rubber distributor boot person; Laser beam in connection with laborers' work; Oversize
concrete vibrator operator, 70 lbs. and over; Pipelayer performing all services in the laying and installation of pipe from the point of receiving pipe in the ditch until completion of operation, including any and all forms of tubular material, whether pipe, metallic or non-metallic, conduit and any other stationary type of tubular device used for the conveying of any substance or element, whether water, sewage, solid gas, air, or other product whatsoever and without regard to the nature of material from which the tubular material is fabricated; No-joint pipe and stripping of same; Prefabricated manhole installer; Sandblaster
(nozzle person), water blasting, Porta Shot-Blast
GROUP 5: Blaster powder, all work of loading holes, placing and blasting of all powder and explosives of whatever type, regardless of method used for such loading and placing; Driller: All power drills, excluding jackhammer, whether core, diamond, wagon, track, multiple unit, and any and all other types of mechanical drills without regard to the form of motive power; Toxic waste removal

TUNNEL LABORER CLASSIFICATIONS
GROUP 1: Batch plant laborer; Changehouse person; Dump
person; Dump person (outside); Swamper (brake person and switch person on tunnel work); Tunnel materials handling person; Nipper; Pot tender, using mastic or other materials (for example, but not by way of limitation, shotcrete, etc.) GROUP 2: Chucktender, cabletender; Loading and unloading agitator cars; Vibrator person, jack hammer, pneumatic
tools (except driller); Bull gang mucker, track person; Concrete crew, including rodder and spreader

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 930 of 1671 C-36
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
GROUP 3: Blaster, driller, powder person; Chemical grout jet person; Cherry picker person; Grout gun person; Grout mixer person; Grout pump person; Jackleg miner; Jumbo person; Kemper and other pneumatic concrete placer operator; Miner, tunnel (hand or machine); Nozzle person; Operating of
troweling and/or grouting machines; Powder person (primer house); Primer person; Sandblaster; Shotcrete person; Steel form raiser and setter; Timber person, retimber person, wood or steel; Tunnel Concrete finisher
GROUP 4: Diamond driller; Sandblaster; Shaft and raise work ---------------------------------------------------------------- LABO1184-004 07/01/2022
Rates Fringes
Brick Tender.....................$ 37.32 21.45
---------------------------------------------------------------- LABO1414-001 08/03/2022
Rates Fringes

LABORER
PLASTER CLEAN-UP LABORER....$ 38.92 23.32
PLASTER TENDER..............$ 41.47 23.32
Work on a swing stage scaffold: $1.00 per hour additional. ---------------------------------------------------------------- PAIN0036-001 07/01/2023
Rates Fringes
Painters: (Including Lead
Abatement)
(1) Repaint (excludes San
Diego County)...............$ 29.59 17.12
(2) All Other Work..........$ 38.52 18.64
REPAINT of any previously painted structure. Exceptions:
work involving the aerospace industry, breweries,
commercial recreational facilities, hotels which operate commercial establishments as part of hotel service, and sports facilities.
---------------------------------------------------------------- PAIN0036-008 09/01/2022
Rates Fringes
DRYWALL FINISHER/TAPER...........$ 46.28 23.52
---------------------------------------------------------------- PAIN0036-015 01/01/2020
Rates Fringes
GLAZIER..........................$ 43.45 23.39

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 931 of 1671 C-37
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
FOOTNOTE: Additional $1.25 per hour for work in a condor, from the third (3rd) floor and up Additional $1.25 per
hour for work on the outside of the building from a swing stage or any suspended contrivance, from the ground up
---------------------------------------------------------------- PLAS0200-009 08/03/2022
Rates Fringes
PLASTERER........................$ 47.37 19.64
---------------------------------------------------------------- PLAS0500-002 07/01/2020
Rates Fringes
CEMENT MASON/CONCRETE FINISHER...$ 38.50 25.91
---------------------------------------------------------------- * PLUM0016-001 09/01/2023
Rates Fringes

PLUMBER/PIPEFITTER
Work ONLY on new additions
and remodeling of bars,
restaurant, stores and
commercial buildings not
to exceed 5,000 sq. ft. of
floor space.................$ 53.51 25.28
Work ONLY on strip malls,
light commercial, tenant
improvement and remodel
work........................$ 42.49 23.86
All other work except work
on new additions and
remodeling of bars,
restaurant, stores and
commercial buildings not
to exceed 5,000 sq. ft. of
floor space and work on
strip malls, light
commercial, tenant
improvement and remodel
work........................$ 57.18 26.51
---------------------------------------------------------------- PLUM0345-001 09/01/2023
Rates Fringes

PLUMBER
Landscape/Irrigation Fitter.$ 40.20 25.90
Sewer & Storm Drain Work....$ 44.29 23.28
---------------------------------------------------------------- ROOF0036-002 08/13/2023
Rates Fringes
ROOFER...........................$ 46.02 20.05

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 932 of 1671 C-38
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
FOOTNOTE: Pitch premium: Work on which employees are exposed to pitch fumes or required to handle pitch, pitch base or pitch impregnated products, or any material containing coal tar pitch, the entire roofing crew shall receive $1.75 per hour ""pitch premium"" pay.
---------------------------------------------------------------- SFCA0669-002 01/01/2024
Rates Fringes
SPRINKLER FITTER.................$ 45.31 27.91
---------------------------------------------------------------- SHEE0105-003 01/01/2024
LOS ANGELES (South of a straight line drawn between Gorman and Big Pines)and Catalina Island, INYO, KERN (Northeast part, East of Hwy 395), MONO ORANGE, RIVERSIDE, AND SAN BERNARDINO COUNTIES Rates Fringes

SHEET METAL WORKER
(1) Commercial - New
Construction and Remodel
work........................$ 56.95 30.04
(2) Industrial work
including air pollution
control systems, noise
abatement, hand rails,
guard rails, excluding
aritechtural sheet metal
work, excluding A-C,
heating, ventilating
systems for human comfort...$ 56.95 30.04
---------------------------------------------------------------- TEAM0011-002 07/01/2023
Rates Fringes

TRUCK DRIVER
GROUP 1....................$ 38.19 33.69
GROUP 2....................$ 38.34 33.69
GROUP 3....................$ 38.47 33.69
GROUP 4....................$ 38.66 33.69
GROUP 5....................$ 38.69 33.69
GROUP 6....................$ 38.72 33.69
GROUP 7....................$ 38.97 33.69
GROUP 8....................$ 39.22 33.69
GROUP 9....................$ 39.42 33.69
GROUP 10....................$ 39.72 33.69
GROUP 11....................$ 40.22 33.69
GROUP 12....................$ 40.65 33.69
WORK ON ALL MILITARY BASES:

PREMIUM PAY: $3.00 per hour additional.
[29 palms Marine Base, Camp Roberts, China Lake, Edwards AFB,

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 933 of 1671 C-39
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
El Centro Naval Facility, Fort Irwin, Marine Corps
Logistics Base at Nebo & Yermo, Mountain Warfare Training Center, Bridgeport, Point Arguello, Point Conception,
Vandenberg AFB]

TRUCK DRIVERS CLASSIFICATIONS
GROUP 1: Truck driver
GROUP 2: Driver of vehicle or combination of vehicles - 2 axles; Traffic control pilot car excluding moving heavy equipment permit load; Truck mounted broom
GROUP 3: Driver of vehicle or combination of vehicles - 3 axles; Boot person; Cement mason distribution truck; Fuel truck driver; Water truck - 2 axle; Dump truck, less than 16 yds. water level; Erosion control driver
GROUP 4: Driver of transit mix truck, under 3 yds.; Dumpcrete truck, less than 6-1/2 yds. water level
GROUP 5: Water truck, 3 or more axles; Truck greaser and tire person ($0.50 additional for tire person); Pipeline and utility working truck driver, including winch truck and plastic fusion, limited to pipeline and utility work;
Slurry truck driver
GROUP 6: Transit mix truck, 3 yds. or more; Dumpcrete truck, 6-1/2 yds. water level and over; Vehicle or combination of vehicles - 4 or more axles; Oil spreader truck; Dump truck, 16 yds. to 25 yds. water level
GROUP 7: A Frame, Swedish crane or similar; Forklift driver; Ross carrier driver
GROUP 8: Dump truck, 25 yds. to 49 yds. water level; Truck repair person; Water pull - single engine; Welder
GROUP 9: Truck repair person/welder; Low bed driver, 9 axles or over
GROUP 10: Dump truck - 50 yds. or more water level; Water pull - single engine with attachment
GROUP 11: Water pull - twin engine; Water pull - twin engine with attachments; Winch truck driver - $1.25 additional when operating winch or similar special attachments
GROUP 12: Boom Truck 17K and above
---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 934 of 1671 C-40
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year.

Employees must be permitted to use paid sick leave for their own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is a victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at
https://www.dol.gov/agencies/whd/government-contracts.

Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (iii)).
---------------------------------------------------------------- The body of each wage determination lists the classification and wage rates that have been found to be prevailing for the cited type(s) of construction in the area covered by the wage determination. The classifications are listed in alphabetical order of ""identifiers"" that indicate whether the particular rate is a union rate (current union negotiated rate for local), a survey rate (weighted average rate) or a union average rate (weighted union average rate).

Union Rate Identifiers
A four letter classification abbreviation identifier enclosed in dotted lines beginning with characters other than ""SU"" or ""UAVG"" denotes that the union classification and rate were prevailing for that classification in the survey. Example:

PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of the union which prevailed in the survey for this
classification, which in this example would be Plumbers. 0198 indicates the local union number or district council number where applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination. 07/01/2014 is the effective date of the most current negotiated rate, which in this example is July 1, 2014.

Union prevailing wage rates are updated to reflect all rate changes in the collective bargaining agreement (CBA) governing this classification and rate.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 935 of 1671 C-41
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Survey Rate Identifiers
Classifications listed under the ""SU"" identifier indicate that no one rate prevailed for this classification in the survey and the published rate is derived by computing a weighted average rate based on all the rates reported in the survey for that classification. As this weighted average rate includes all rates reported in the survey, it may include both union and non-union rates. Example: SULA2012-007 5/13/2014. SU indicates the rates are survey rates based on a weighted average
calculation of rates and are not majority rates. LA indicates the State of Louisiana. 2012 is the year of survey on which these classifications and rates are based. The next number, 007 in the example, is an internal number used in producing the wage determination. 5/13/2014 indicates the survey completion date for the classifications and rates under that identifier.

Survey wage rates are not updated and remain in effect until a new survey is conducted.

Union Average Rate Identifiers
Classification(s) listed under the UAVG identifier indicate that no single majority rate prevailed for those
classifications; however, 100% of the data reported for the classifications was union data. EXAMPLE: UAVG-OH-0010
08/29/2014. UAVG indicates that the rate is a weighted union average rate. OH indicates the state. The next number, 0010 in the example, is an internal number used in producing the wage determination. 08/29/2014 indicates the survey completion date for the classifications and rates under that identifier.

A UAVG rate will be updated once a year, usually in January of each year, to reflect a weighted average of the current negotiated/CBA rate of the union locals from which the rate is based.
----------------------------------------------------------------

WAGE DETERMINATION APPEALS PROCESS

1.) Has there been an initial decision in the matter? This can be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on a wage determination matter
* a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour National Office because National Office has responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 936 of 1671 C-42
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to:

Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.

Washington, DC 20210

2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to:

Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.

Washington, DC 20210
The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue.

3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to:

Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.

Washington, DC 20210

4.) All decisions by the Administrative Review Board are final. ================================================================ END OF GENERAL DECISION"

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 937 of 1671 C-43
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Bond No. __________

PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Indio (“City”), State of California, has awarded to (“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
(Project name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars ($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 938 of 1671 C-44
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 939 of 1671 C-45
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
Bond No. __________

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Indio (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
(Project name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and
,
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Dollars ($ ), this amount being not less than the
total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 940 of 1671 C-46
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 941 of 1671 C-47
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)
WORKERS’ COMPENSATION

CERTIFICATE OF INSURANCE
WHEREAS, the City of Indio (“City”) has required certain insurance to be provided by:

NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time:

1. This certificate is issued to:

City of Indio
City Hall
100 Civic Center Mall
Indio, California 92201
The insureds under such policy or policies are:

2. Workers’ Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows:

Policy Number Effective Date Expiration Date
By:

Its Authorized Representative

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 942 of 1671 C-48
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)

ADDITIONAL INSURED ENDORSEMENT

COMPREHENSIVE GENERAL LIABILITY
Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Indio (“City”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company’s liability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as thirdparty claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereof. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 943 of 1671 C-49
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)

9. This endorsement and all notices given hereunder shall be sent to City at:

City Manager
City of Indio
100 Civic Center Mall
Indio, California 92201

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:
□ Contractual Liability □ Explosion Hazard
□ Owners/Landlords/Tenants □ Collapse Hazard
□ Manufacturers/Contractors □ Underground Property Damage □ Products/Completed Operations □ Pollution Liability
□ Broad Form Property Damage □ Liquor Liability
□ Extended Bodily Injury □
□ Broad Form Comprehensive □
□ General Liability Endorsement □

12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number .

I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 944 of 1671 C-50
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)

ADDITIONAL INSURED ENDORSEMENT

EXCESS LIABILITY
Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Indio (“City”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought, except with respect to the limits of the Company’s liability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as thirdparty claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 945 of 1671 C-51
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)

9. This endorsement and all notices given hereunder shall be sent to City at:

City Manager
City of Indio
100 Civic Center Mall
Indio, California 92201

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY
□ Following Form
□ Umbrella Liability
□

11. Applicable underlying coverages:

INSURANCE COMPANY POLICY NUMBER AMOUNT

12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages:

13. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
(if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

14. This is an □ occurrence or □ claims made policy (check one).

15. This endorsement is effective on _________________ at 12:01 a.m. and forms a part of Policy Number _________________.

I, (print name), hereby declare under penalty of
perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 946 of 1671 C-1
City Project: BR1101 City of Indio Public Works
Federal Project No.: BRLKS-5275(024)

CONTRACT

CHECKLIST FOR EXECUTION OF CONTRACT
TO BE SUBMITTED BY SUCCESSFUL BIDDER:
____ Two (2) executed and notarized copies of the Contract ____ Evidence satisfactory to the City indicating the capacity of the person(s) signing the Contract to bind the Contractor
_____ Payment Bond in amount of the Contract
____ Performance Bond in amount of the Contract
____ Workers’ Compensation Certificate
____ Liability insurance certificate in the amounts specified in Section 5-4.2 of the General Provisions, naming the City, et al., as additional insureds ____ Automobile insurance certificate in the amount specified in Section 5-4.4 of the General Provisions, naming the City, et al., as additional insureds ____ Copy of City business license
____ Additional insured endorsement – comprehensive general liability ____ Additional insured endorsement – excess liability

Construction contract with Ortiz Enterprises, Inc., in an amount not to ... Page 947 of 1671 City of Indio
City Council
July 17, 2024

STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Conflict: Yes Member: Oscar Ortiz
Subject: Deed Restriction on the parcels for the Miles Avenue Park Irrigation Improvements Project, PK1705
RECOMMENDATION:

Approve a Deed Restriction on the parcels for the Miles Avenue Park Irrigation Improvements Project, Project No. PK1705, authorize the City Engineer to coordinate any necessary technical corrections deemed necessary for the legal description of the parcels for the Deed Restriction, and authorize the City Manager to execute the Deed Restriction and all associated documents and file with the County’s Recorder Office.

SUMMARY:

On May 2, 2022, the City received Proposition 68 - 2018 Parks Bond Act funding to construct Miles Avenue Park irrigation improvements within the recently annexed Miles Avenue Park area west of Arabia Street, north of Miles Avenue. The improvements included installing a new larger irrigation main line and booster pump for additional flow and a weather-based irrigation controller. As a condition of receiving the grant funding, the City must record a Deed Restriction over the parcels to ensure continued use as a public park.

BACKGROUND INFORMATION:

On October 7, 2020, Council approved Resolution No. 10180, approving the California Department of Parks and Recreation Per Capita Grant Program application. The City received notification on May 2, 2022, that the City’s application was approved for funding to renovate the existing irrigation system as proposed making for better play and maximizing the enjoyment of the park users.

The scope of the project included constructing irrigation improvements in the new Miles Avenue Park Annex area west of Arabia Street and north of Miles Avenue. These improvements include installation of a new larger irrigation main line and booster pump for additional flow and a weatherbased irrigation controller. This irrigation renovation was for the entire sports field area. The existing system did not have the flow or pressure required to irrigate the turf uniformly. The improvements allow the irrigation system to keep all areas of the turf in the best condition. The weather-based irrigation controller helps reduce water use while making sure the turf has the water needed for best health.

The Miles Avenue Park Annex is located within Assessor’s Parcel Numbers 611-075-008, 611-075- 014, 611-075-015, 611-075-020, 611-075-021, 611-075-022, 611-075-024, 611-075-025, 611-075- AGENDA ITEM #8.21
Deed Restriction on the parcels for the Miles Avenue Park Irrigation Imp... Page 948 of 1671 026, and 611-075-027, which were annexed into Miles Avenue Park by the City in August 2013. As a condition of receiving the grant funds, the City must file a Deed Restriction to restrict the property's title, safeguarding the property for the intent consistent with the Grant Scope for the period running from July 1, 2018, to June 30, 2048. The City Engineer will work with a licensed land surveyor to prepare a legal description of this parcel for inclusion in the Grand Deed.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$0 In current year budget: N/A
Current FY General
Fund Impact:
$0 Budget adjustment: N/A
Next FY Financial
Impact:
$0 Strategic Objective: Community Infrastructure
Source of funds: N/a Fund-Org-Object
Reference:

N/A
Additional Financial Details:

The California Department of Parks and Recreation Per Capita Grant Program provided the City of Indio a sum not to exceed $197,249 for the Miles Avenue Park Irrigation Improvements Project.

There will be no costs associated with approving the Deed Restriction. The Deed Restriction is required to be recorded on the title of the property prior to any approval of payments by the Office of Grants and Local Services (OGALS). If not approved, the funds subject to the Grant will not be received.

ATTACHMENTS:

Attachment 1 - Site Plan
Attachment 2 - Deed Restriction
APPROVAL(S):

Timothy Wassil, Public Works Director Approved - 11 Jul 2024 Jennifer A. Mizrahi, Assistant City Attorney Approved - 11 Jul 2024 Bryan H. Montgomery, City Manager Approved - 11 Jul 2024

Deed Restriction on the parcels for the Miles Avenue Park Irrigation Imp... Page 949 of 1671 $77$&+0(17

SITE PLAN

Deed Restriction on the parcels for the Miles Avenue Park Irrigation Imp... Page 950 of 1671 City of Indio
Site Plan
Miles Avenue Park Irrigation Improvements
New Weather-Based Irrigation
Controller with Pedestal
New Irrigation Booster Pump
82491 Miles Ave, Indio, CA
Park Project Boundary
New Irrigation Main Line

$77$&+0(172

DEED RESTRICTION

Deed Restriction on the parcels for the Miles Avenue Park Irrigation Imp... Page 952 of 1671 1 RECORDING REQUESTED BY:

California Department of Parks and Recreation
Office of Grants and Local Services
WHEN RECORDED MAIL TO:

Office of Grants and Local Services
PO Box 942896
Sacramento, CA 94296-0001
Attn: Sara Schlussler
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

DEED RESTRICTION
I. WHEREAS, _____________________________________________________________ _____________________________________ (hereinafter referred to as “Owner(s)” is/are recorded owner(s) of the real property described in Exhibit A, attached and incorporated herein by reference (hereinafter referred to as the “Property”); and
II. WHEREAS, the California Department of Parks and Recreation (hereinafter referred to as “DPR”) is a public agency created and existing under the authority of section 5001 of the California Public Resources Code (hereinafter referred to as the “PRC”). And III. WHEREAS, Owner(s) (or Grantee) applied to DPR for grant funds available pursuant to the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All of 2018 Parks Bond Act, 2018 Parks Bond Act Per Capita Program to install new irrigation system for sports field on the Property; and
IV. WHEREAS, on _July 1, 2020 , DPR’s Office of Grants and Local Services conditionally approved Grant 18-33-040 , (hereinafter referred to as “Grant”) to install new irrigation system for sports field on the Property, subject to, among other conditions, recordation of this Deed Restriction on the Property; and
V. WHEREAS, but for the imposition of the Deed Restriction condition of the Grant, the Grant would not be consistent with the public purposes of the 2018 Parks Bond Act, 2018 Parks Bond City of Indio

Deed Restriction on the parcels for the Miles Avenue Park Irrigation Imp... Page 953 of 1671 2 Act Per Capita Program and the funds that are the subject of the Grant could therefore not have been granted; and
VI. WHEREAS, Owner(s) has/ve elected to comply with the Deed Restriction of the Grant, so as to enable Owner(s), to receive the Grant funds and perform the work described in the Grant; NOW, THEREFORE, in consideration of the issuance of the Grant funds by DPR, the undersigned Owner(s) for himself/herself/themselves and for his/her/their heirs, assigns, and successorsin-interest, hereby irrevocably covenant(s) with DPR that the condition of the grant (set forth at paragraph(s) 1 through 5 and in Exhibit B hereto) shall at all times on and after the date on which this Deed Restriction is recorded constitute for all purposes covenants, conditions and restrictions on the use and enjoyment of the Property that are hereby attached to the deed to the Property as fully effective components thereof.

1. DURATION. (a) This Deed Restriction shall remain in full force and effect and shall bind Owner(s) and all his/her/their assigns or successors-in-interest for the period running from July 1, 2018 through June 30, 2048.

2. TAXES AND ASSESMENTS. It is intended that this Deed Restriction is irrevocable and shall constitute an enforceable restriction within the meaning of a) Article XIII, section 8, of the California Constitution; and b) section 402.1 of the California Revenue and Taxation Code or successor statute. Furthermore, this Deed Restriction shall be deemed to constitute a servitude upon and burden to the Property within the meaning of section 3712(d) of the California Revenue and Taxation Code, or successor statute, which survives a sale of tax-deeded property.

3. RIGHT OF ENTRY. DPR or its agent or employees may enter onto the Property at times reasonably acceptable to Owner(s) to ascertain whether the use restrictions set forth above are being observed.

4. REMEDIES. Any act, conveyance, contract, or authorization by Owner(s) whether written or oral which uses or would cause to be used or would permit use of the Property contrary to the terms of this Deed Restriction will be deemed a violation and a breach hereof. DPR may pursue any and

Deed Restriction on the parcels for the Miles Avenue Park Irrigation Imp... Page 954 of 1671 3 all available legal and/or equitable remedies to enforce the terms and conditions of this Deed Restriction up to and including a lien sale of the property. In the event of a breach, any forbearance on the part of DPR to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach.

5. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired.

Dated: ______________________, 20 ____
Business Name (if property is owned by a business): __________________________________________ Owner(s) Name(s): ____________________________________________________________________ _____________________________________________________________________________________ Signed: ________________________________ Signed: ________________________________ ________________________________ ________________________________ PRINT/TYPE NAME & TITLE OF ABOVE PRINT/TYPE NAME & TITLE OF ABOVE (GRANTEE’S AUTHORIZED REPRESENTATIVE) (ADDITIONAL SIGNATURE, AS REQUIRED) **NOTARY ACKNOWLEDGEMENT ON THE NEXT PAGE**
City of Indio
Bryan H. Montgomery, City Manager

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County of _______________
On __________________ before me, __________________________, a Notary Public, personally appeared _____________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

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City Council
July 17, 2024

STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Ruby D. Walla, Director of Finance
Subject: Resolution No. 10463 - Adoption of updated City Investment Policy and annual delegation of investment authority to the City Treasurer and the Treasurer of the Component Municipal Entities pursuant to Government Code Section 53607.

RECOMMENDATION:

Adopt Resolution No. 10463 approving the City's updated Investment Policy; approve the delegation of authority to the City Treasurer and the Treasurer of the Component Municipal Entities pursuant to Government Code Section 53607.

SUMMARY:

The City in collaboration with the City of Indio's investment advisor, Chandler Asset Management, recently reviewed and updated the City's investment policy to capture recent changes to California Government Code (Code) sections that govern the investment of public funds. Staff also reviewed the policy to ensure inclusion of the latest best practices from recognized industry groups such as Government Finance Officers Association (GFOA), California Society of Municipal Finance Officers (CSMFO), and the California Municipal Treasurers Association (CMTA). Per the City's investment policy, the City Council may annually delegate its investment authority. This delegation expired on May 17, 2024 and is being presented for consideration of re-delegation. The annual review and adoption of the City's investment policy delegates the investment authority to the City Treasurer and the Treasurer of the Component Municipal Entities.

BACKGROUND INFORMATION:

The City invest public funds in conformance with federal, state, and other legal requirements. These requirements, along with general objectives, delegation of authority, procedures, internal controls, and reporting requirements are detailed in the Investment Policy.

The City's investment policy (attachment 1) is periodically updated to be in conformity with modernized state code and recommendations form the City's investment advisor Chandler Asset Management.

Below is a summary of the investment policy changes:

Section VII Competitive Transactions, Delivery and Safekeeping AGENDA ITEM #9.1
Resolution No. 10463 , Adopting an updated City Investment Policy and an... Page 965 of 1671  Section C: Added language referencing which securities (LGIPS, Time certificates of Deposits and mutual fund/ money market mutual funds) are excepted from the safekeeping rule because they are not deliverable.

Section VIII Authorized and Suitable Investments
 Section 12 Money Market mutual Funds
o Added risk management language limiting the investment in any one money market fund to 20%.

IX Portfolio Risk Management
 Section C Mitigating Market Risk in the Portfolio
o Adjusted the % of the portfolio duration relative to that of the market benchmark from (plus or minus) 10% to 20%
 Section D Collateralization
o Updated the language of collateralization requirements to be in line with Best Practices The requirement to re-delegate authority annually is detailed in Section V.A. of the City's investment policy.

ATTACHMENTS:

Resolution No. 10463 - Indio Investment Policy 2023_redline 04232024 APPROVAL(S):

Jennifer A. Mizrahi, Assistant City Attorney Approved - 09 Jul 2024 Ruby D. Walla, Director of Finance Approved - 09 Jul 2024 Bryan H. Montgomery, City Manager Approved - 10 Jul 2024

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RESOLUTION NO. 10463

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA

ADOPTING AN INVESTMENT POLICY
WHEREAS, Chapter 33.001 of the Code of the City of Indio establishes a general policy that the City of Indio, and its related entities for which the members of the City Council serve as the governing body (the “Component Municipal Entities”), will establish and maintain investment policies in accordance with state laws that stress safety and liquidity over yield; and WHEREAS, Chapter 32.90 of the Code of the City of Indio establishes an Investment Committee composed of the City Treasurer, Finance Director, two members of the City Council and one citizen from the community; and
WHEREAS, Article 1 of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, including but not limited to Sections 53601 and 53607 therein, vests in the City Council, as legislative body of the City and the Component Municipal Entities, the authority to invest and reinvest funds of City and the Component Municipal Entities, respectively, and to sell or exchange securities so purchased for investment; and
WHEREAS, Section 53607 of the Government Code authorizes Indio’s City Council, for itself and as legislative body of the Component Municipal Entities, to annually delegate authority to the City Treasurer and the Treasurer of the Component Municipal Entities, respectively, to invest, reinvest, sell, or exchange securities until such time as this delegation of authority is revoked or expires; and
WHEREAS, It is the desire of the City Council to renew the delegation of such authority; and
WHEREAS, the City’s Treasurer and Finance Director have presented a revised Statement of Investment Policy for the fiscal year 2024-25, which shall be applicable to subsequent fiscal years unless sooner reviewed and revised by the City Council; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That the City Council of the City of Indio, on behalf of itself and the Component Municipal Entities, does hereby delegate authority to invest and reinvest funds of the City and the Component Municipal Entities to the City Treasurer and the Treasurer of the Component Municipal Entities, respectively, pursuant to all applicable laws, statutes, and regulations of the State of California as set forth in this Resolution.

Section 2. That the proposed Investment Policy as set forth in Exhibit “A” attached to this Resolution, which is incorporated by this reference and shall be deemed to be effective on July 17, 2024 and each calendar year hereafter unless changed or modified by further action of the Council.

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Section 3. That Resolution No. 10355 of the City of Indio is rescinded effective July 17, 2024.

PASSED, APPROVED and ADOPTED this 17th day of July, 2024 by the following vote:

AYES:

NOES:

LUPE RAMOS-AMITH, MAYOR
ATTEST:

CYNTHIA HERNANDEZ, CMC

CITY CLERK
APPROVED AS TO FORM:

STEVEN GRAHAM,

CITY ATTORNEY

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1 EXHIBIT A

CITY OF INDIO, CALIFORNIA, INVESTMENT POLICY
July 17, 2024
I. INTRODUCTION
Chapter 33.001 of the Code of the City of Indio establishes a general policy that the City of Indio, and its related entities for which the members of the City Council serve as the governing body (the “Component Municipal Entities”), will establish and maintain investment policies in accordance with state laws that stress safety and liquidity over yield.

Article 1 of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code (CGC), including but not limited to Sections 53601 and 53607 therein, vests in the City Council, as legislative body of the City and the Component Municipal Entities, the authority to invest and reinvest funds of City and the Component Municipal Entities, respectively, and to sell or exchange securities so purchased for investment.

As used in this policy, the term “City” may refer to the City, or the City and the Component Municipal Entities, as the context may require.

CGC Section 53646 provides for the consideration and approval of the Investment Policy of the City, as well as any changes thereto, by the City Council at a public meeting. This Investment Policy is endorsed and adopted by resolution by the City of Indio’s City Council.

The City’s Finance Director (the “Finance Director”) may annually render to the City Council a Statement of Investment Policy for consideration and approval by the City Council at a public meeting, incorporating updates and modifications as necessary, convenient, or desirable.

All investments shall comply with this Investment Policy and governing laws. This Investment Policy addresses the methods, procedures and practices, which must be exercised to ensure effective and judicious fiscal and investment management of the City’s funds. The City’s investment program shall be operated in conformance with federal, state, and other legal requirements, including CGC Sections 16429.1-16429.4, 53600-53610 and 53630-53686.

It is the policy of the City to invest public funds in a manner which will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City.

While the City Council recognizes that it possesses the authority to make investment decisions on behalf of the City, in connection with adoption of this Investment Policy and pursuant to CGC Section 53607, the City Council has delegated its investment authority for a one-year period to the City Treasurer and the Treasurer of the Component Municipal Entities, subject to review by the City Council and annual renewal at the City Council’s discretion of such delegation of investment authority, as described in more detail and subject to the provisions of Section V.A. of this Investment Policy. The City Council recognizes that the City Treasurer and the Treasurer of the Component Municipal Entities each may appoint

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2 such deputies as such treasurer reasonably may deem necessary or appropriate to carry out and fulfill the responsibilities and fiduciary duties attendant to such delegated investment authority, subject to the oversight of the appointing treasurer.

In the event that the City Council revokes its delegation of investment authority to the City Treasurer and/or the Treasurer of the Component Municipal Entities, the City Council shall invest funds of the City and/or the Component Municipal Entities, as applicable, in a manner consistent with its fiduciary duties and in accordance with this Investment Policy. Upon such a revocation, treasurer responsibilities set forth herein which comprise a portion of the City Council’s delegated investment authority would instead revert to and be performed by the City Council (or by qualified agents designated and selected by the City Council and acting under the City Council’s direction and supervision, so long as the City Council exercises prudence in the selection of the agent, imposes suitable safeguards to prevent abuse in the exercise of discretion by the agent, and remains responsible for any investment decisions made by the agent with respect to the funds of the City).

II. SCOPE
This Investment Policy applies to all investments and deposits of the City of Indio and the Component Municipal Entities.

This Investment Policy, however, specifically excludes the employees’ retirement and deferred compensation funds. Additionally, money held by a trustee or fiscal agent pledged to the payment or security of bonds or other indebtedness shall comply with CGC Sections 5922(d) and 53601(m).

The City also participates as a member, or designates members of the governing body of, certain public agencies whose governing body includes members other than members of the City Council of the City (collectively, the “Other Public Agencies”). Pursuant to their respective authorizations, the Other Public Agencies may from time to time voluntarily deposit their monetary resources with the City of Indio for investment on a pooled basis.

Any Other Public Agency, by depositing its funds with the City of Indio for management on a pooled basis, acknowledges that those funds will be invested in accordance with this Investment Policy, as in effect and amended from time to time, and by so depositing its funds, consents to such investment of its respective funds. See Section V.C. of this Investment Policy for additional provisions regarding pooling of investment funds.

III. GENERAL OBJECTIVES
All investment management decisions and activities must assure ongoing compliance with all Federal, State and local laws governing the investment of moneys under the control of the City Council. The primary objectives, in priority order, of the City’s investment activities shall be:

1. Safety: Safety of principal is the foremost objective of the investment program.

Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

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3 2. Liquidity: The investment portfolio shall remain sufficiently liquid to enable the City of Indio to meet all operating requirements that may be reasonably anticipated.

3. Return: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

IV. PRUDENCE, INDEMNIFICATION AND ETHICS
A. Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” B. Indemnification: The City Treasurer and the Treasurer of the Component Municipal Entities, and other authorized persons responsible for managing City funds, acting in accordance with written procedures and this Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments.

C. Ethics: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose any material financial interests that could be related to the performance of this Investment Policy annually or as necessary.

The City Treasurer and the Treasurer of the Component Municipal Entities are governed by the Political Reform Act of 1974 (CGC Section 81000 et seq.) regarding disclosure of material financial interests.

V. DELEGATION OF AUTHORITY; POOLING OF INVESTMENT FUNDS A. Authority to manage the City’s investment program is derived from California Government Code Sections 53600 et seq. The City Council is responsible for the City’s cash and investment management, including the administration of this Investment Policy.

Pursuant to CGC Section 53607, the Council may annually delegate its investment authority to the City Treasurer and the Treasurer of the Component Municipal Entities,

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4 who shall thereafter assume full responsibility for those transactions until the authority is revoked or expires. Management responsibility for the cash and investment management of City’s funds is hereby delegated to the City Treasurer and the Treasurer of the Component Municipal Entities, who shall operate consistent with this policy.

The City Treasurer and the Treasurer of the Component Municipal Entities shall establish written procedures for the operation of the cash management/investment program, consistent with this Investment Policy. Such procedures shall include explicit designation of persons responsible for carrying out investment transactions under the direction and supervision of the City Treasurer and the Treasurer of the Component Municipal Entities.

No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer and the Treasurer of the Component Municipal Entities. The City Treasurer and the Treasurer of the Component Municipal Entities shall be responsible for all transactions undertaken with respect to the applicable local agency’s funds and shall establish a system of controls to regulate the activities of subordinate employees and any third-party investment manager utilized pursuant to Section V.B. below.

B. The City may engage the services of an external investment manager to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives, provided that the City Treasurer and the Treasurer of the Component Municipal Entities, as the City Council’s delegates under CGC Section 53607, exercise prudence in the selection of the manager, impose suitable safeguards to prevent abuse in the exercise of discretion by the manager, and remain responsible for any investment decisions made by the manager with respect to the funds of the applicable local agency.

Such external manager may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such manager must be registered under the Investment Advisers Act of 1940.

C. Pooling of Funds:

1. The pooling of investment funds of the City and the Component Municipal Entities provides certain benefits, including greater diversification of risk in the investment portfolio, increased liquidity of funds, and efficiencies with regard to investment pricing, safekeeping, and administration. Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds of the City and the Component Municipal Entities to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.

The City Council acknowledges that, so long as the City Council’s annual delegation of investment authority pursuant to CGC Section 53607 to the City Treasurer and the Treasurer of the Component Municipal Entities is effective, the pooling of funds as set forth herein requires the mutual cooperation of the City Treasurer and the Treasurer of the Component Municipal Entities (such as, but not limited to, the appointment of such deputies as each such treasurer reasonably may deem necessary or appropriate to carry out and fulfill the day-to-day responsibilities and fiduciary

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5 duties attendant to such delegated investment authority, subject to the oversight of the appointing treasurer, and participation by each such treasurer in the Investment Committee established by Chapter 32.90 of the City’s Municipal Code).

In the event that the City Treasurer and the Treasurer of the Component Municipal Entities determine that they are no longer able or willing to cooperate in investing the funds of the City or the Component Municipal Entities, as applicable, on a pooled basis, the City Treasurer and the Treasurer of the Component Municipal Entities promptly shall so advise the City Council for further consideration and possible action consistent with the applicable provisions of the CGC and applicable legal authorities interpreting such provisions.

2. Pursuant to CGC Section 53647, the City Treasurer and the Treasurer of the Component Municipal Entities shall allocate all interest earned on funds of the City or the Component Municipal Entities to the General Fund unless otherwise required by law, including Federal or State regulation or local ordinance.

3. To the extent that an Other Public Agency (as defined in Section II) may from time to time voluntarily deposit its monies with the City of Indio for investment on a pooled basis, as contemplated by Section II of this Investment Policy, such monies shall be deemed to be subject to the investment authority annually delegated by the City Council to the City Treasurer and shall be invested in the same manner as the investment funds of the City pursuant to this Investment Policy.

VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS The Finance Director will maintain a list of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the Investment Procedures Manual who are authorized to provide investment services in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).

A. Institutions eligible to transact investment business with City include:

1. Primary government dealers as designated by the Federal Reserve Bank;

2. Nationally or state-chartered banks;

3. The Federal Reserve Bank; and,

4. Direct issuers of securities eligible for purchase.

Any financial institutions authorized to conduct purchase and sale investment services shall also meet the requirements of CGC Section 53601.5. The selection of financial institutions authorized to provide investment services for purchase and sale transactions

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6 shall be made by the City Treasurer and the Treasurer of the Component Municipal Entities pursuant to Section VI.B. below.

Any financial institutions, other than the State of California Local Agency Investment Fund, authorized to provide services for the custody and safekeeping of investments shall also meet the requirements of CGC Section 53608 or, as to time deposits (non-negotiable certificates of deposit), CGC Section 53635.2, and Section VII.C. of this Investment Policy.

Pursuant to CGC Section 53608, the City Council hereby delegates to the City Treasurer and the Treasurer of the Component Municipal Entities, respectively, the authority to deposit securities and other investments of the City and the Component Municipal Entities, as applicable, for custody and safekeeping of securities. Accordingly, subject to the foregoing requirements, the City Treasurer and the Treasurer of the Component Municipal Entities shall determine which financial institutions are eligible to provide custody and safekeeping services for investments.

B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City. An annual review of the financial condition and registrations of qualified bidders will be conducted by the City Treasurer and the Treasurer of the Component Municipal Entities. A current audited financial statement is required to be on file for each financial institution and broker/dealer which handles investment transactions or provides investment custody and safekeeping services for the City.

C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the City Treasurer and the Treasurer of the Component Municipal Entities with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City’s Investment Policy.

D. Selection of broker/dealers used by an external investment adviser retained by the City shall be at the sole discretion of the investment adviser, provided that the selected broker/dealers also meet the requirements of CGC Section 53601.5.

E. Public deposits shall be made only in qualified public depositories as established by State law (CGC Section 53630 et seq.). Deposits shall be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, shall be collateralized in accordance with State law (CGC Section 53630 et seq.).

VII. COMPETITIVE TRANSACTIONS, DELIVERY AND SAFEKEEPING A. Competitive transactions: All investment transactions shall be conducted on a competitive basis with quotes from a minimum of three brokers or financial institutions when possible.

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7 B. Delivery-versus-payment: Settlement of all investment transactions will be completed using standard delivery-vs.-payment procedures.

C. Third-party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City shall be held in safekeeping by a third-party bank custodian that meets the requirements of CGC Section 53608 and is selected and approved by the City Treasurer and the Treasurer of the Component Municipal Entities, acting as agent for the City, and pursuant to the terms of a written custody agreement executed by the bank and the City.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

C.

VIII. AUTHORIZED AND SUITABLE INVESTMENTS
All investments shall be made in accordance with Sections 53600 et seq. of the Government Code of California and as described within this Investment Policy. Where this Investment Policy specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Permitted investments under this policy shall include:

1. U.S. Treasury and other U.S. government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest.

There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries.

2. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.

3. Banker’s acceptances provided that:
a. They are issued by institutions with short term debt obligations rated “A-1” or higher, or the equivalent, by at least one nationally recognized statistical-rating organization (NRSRO); and have long-term debt obligations which in a rating category of ”A” or higher by at least one nationally recognized statistical rating organization;
b. The maturity does not exceed 180 days; and,
Commented [CM1]: CAM recommends adding language
related to the safekeeping and custody, providing exceptions to established langugage

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8 c. No more than 40% of the total portfolio may be invested in banker’s acceptances and no more than 5% per issuer.

4. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
a. The amount per institution is limited to the maximum covered under federal insurance; and,
b. No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
c. The maturity of such deposits does not exceed 5 years.

5. Time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
a. The maturity of such deposits does not exceed 5 years.

6. Negotiable certificates of deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association (as defined in Section 5102 of the California Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
a. The maturity does not exceed five years.
b. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
c. No more than 30% of the total portfolio is invested in NCDs (combined with CDARS).

7. Repurchase agreements collateralized with securities authorized under Sections VIII (1 and 2) of this policy, maintained at a level of at least 102% of the market value of the repurchase agreements, provided that:
a. The maximum maturity of repurchase agreements shall be 1 year; b. There is no limit to the amount to be invested in repurchase agreements; c. Securities used as collateral for repurchase agreements shall be delivered to the City’s custodian bank; and,

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9 d. The repurchase agreements are the subject of a master repurchase agreement between the City and the provider of the repurchase agreement. The master repurchase agreement shall be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).

8. Commercial paper provided that:
a. The maturity does not exceed 270 days from the date of purchase; b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million;
c. They are issued by institutions whose short term obligations are rated ”A-1” or higher, or the equivalent, by at least one nationally recognized statistical rating organization; and whose long-term obligations in a rating category of ”A” or higher by at least two nationally recognized statistical rating organizations; and, d. No more than 25% of the portfolio is invested in commercial paper and no more than 5% per issuer. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.

9. State of California Local Agency Investment Fund (LAIF), provided that:
a. City may invest up to the maximum permitted amount in LAIF; and, b. LAIF’s investments in instruments prohibited by or not specified in City’s policy do not exclude it from City’s list of allowable investments, provided that the fund’s reports allow the City Treasurer and the Treasurer of the Component Municipal Entities to adequately judge the risk inherent in LAIF’s portfolio.

10. Corporate medium term notes (MTNs), provided that:
a. Such notes have a maximum maturity of five years;
b. Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States;
c. Shall be rated ”A” category or better by at least one nationally recognized statistical rating organizations; and,
d. Holdings of medium-term notes may not exceed 30% of the portfolio and no more than 5% per issuer.

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10 11. Mortgage pass-through, mortgage backed, collateralized mortgage obligations and asset-backed securities, provided that:
a. Such securities shall have a maximum stated final maturity of five years; b. Shall be rated in a rating category of “AA” or its equivalent or better by at least one nationally recognized statistical rating organizations. c. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio.
d. No more than 5% of the portfolio may be invested in any single asset-backed or commercial mortgage security issuer. As provided in Sections VIII.1 and 2 above, there is no issuer limitation on any mortgage security where the issuer is the US Treasury, a Federal agency, or a United States government-sponsored enterprise.

12. Money market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and are purchased without commission:
a. Provided that such funds meet either of the following criteria:

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or,

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds and with assets under management in excess of $500 million.
b. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio and no more than 20% of the total portfolio may be invested in the shares of any one Money Market Fund..

13. Municipal investments include obligations of the City, the State of California, any of the other 49 states, and any local Agency within the State of California, provided that:
a. Such investments are specifically approved by City Council.

b. The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). c. No more than 10% of the portfolio is invested in municipal investments and no more than 5% per issuer.

Commented [CM2]: CAM recommends adding language
specifically limiting investment in an one money market funds.

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11 14. Supranational Securities, provided that;
a. Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
b. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
c. No more than 30% of the total portfolio may be invested in these securities. d. No more than 10% of the portfolio may be invested in any single issuer. e. The maximum maturity does not exceed five (5) years.

IX. PORTFOLIO RISK MANAGEMENT
A. Prohibited investment vehicles and practices:

1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.

2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.

3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.

4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

5. Purchasing or selling securities on margin is prohibited.

6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.

7. The purchase of foreign currency denominated securities is prohibited.

8. Securities with forward settlement date exceeding 45 days from the time of the investment is prohibited.

B. Mitigating credit risk in the portfolio
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City shall mitigate credit risk by adopting the following strategies:

1. The diversification requirements included in Section VIII are designed to mitigate credit risk in the portfolio;

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12 2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and instrumentalities, Supranational securities and money market mutual funds;

3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences; and,

4. If securities owned by the City are downgraded to a level below the quality required by this Investment Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
a. If a security is downgraded, the Finance Director will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

C. Mitigating market risk in the portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City shall mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cashflow purposes. The City adopts the following strategies to control and mitigate its exposure to market risk:

1. The City shall maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements;

2. The maximum percent of callable securities in the portfolio shall be 15%;

3. The maximum stated final maturity of individual securities in the portfolio shall be five years, except as otherwise stated in this policy or in the case of bond reserves and/or capitalized interest accounts held by third-party trustee; and, The duration of the portfolio shall at all times be approximately equal to the duration (plus or minus 120%) of the Market Benchmark Index selected by the City (B of A Merrill Lynch Index of 1-5 year Treasury Securities) based on the City’s investment objectives, constraints and risk tolerances.

D. Collateralization
Commented [CM3]: CAM recommends brining the benchmark
requirement to industry standards

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13 CERTIFICATES OF DEPOSIT (CDS). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a NonNegotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.
• Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
• The City shall receive monthly statements of collateralPublic deposits shall be made only in qualified public depositories as established by State law (CGC Section 53630 et seq.). Deposits shall be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, shall be collateralized in accordance with State law (CGC Section 53630 et seq.). See also Sections VI.E, VIII.5, and XI.A of this Investment Policy.

E. Procedures for selection & monitoring of pooled investments

1. To the extent the City has funds invested in the State of California Local Agency Investment Fund (LAIF) pursuant to Section VIII.9, or money market mutual funds pursuant to Section VIII.12, the City Treasurer and the Treasurer of the Component Municipal Entities shall assure that the City receives periodic investment reports.

2. Pursuant to CGC Section 16429.1 and CGC Section 53601(l)(2) and (4), respectively, investment by the City in LAIF or money market mutual funds does not require an analysis of the underlying securities held by these particular investment pools.

However, the applicable fund’s reports should allow the City Treasurer and the Treasurer of the Component Municipal Entities to adequately judge, from time to time, the risk inherent in LAIF’s portfolio or the money market mutual fund portfolio.

Commented [CM4]: CAM recommends updating
collateralization language

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14 3. Changes in amount, timing, and manner of payment of fees, or size or frequency of deposits or withdrawals, as well as performance history shall be duly noted as part of the ongoing monitoring of pooled investments, including investments in LAIF and money market mutual funds.

4. Prior to amendment or modification of this Investment Policy to authorize investment in any other government sponsored investment pool or any mutual funds that are not money market mutual funds, there shall be a thorough evaluation of the proposed pooled investment, which shall include review of the following information:
(a) a written statement of investment policy and objectives, including a description of eligible investment securities;
(b) a description of interest calculations and how it is distributed, and how gains and losses are treated.
(c) a description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. (d) a description of who may invest in the pool/fund, and frequency and size of deposits and withdrawals;
(e) a schedule for receiving statements and portfolio holdings reports; (f) a fee schedule, including amount, timing, and manner of fee payment; (g) performance history;
(h) a description of how the pool/fund utilizes reserves, retained earnings, etc.

X. INVESTMENT OBJECTIVES
A. Overall objective: The investment portfolio shall be designed with the overall objective of obtaining a total rate of return, throughout economic cycles, commensurate with investment risk constraints and cash flow needs.

B. Specific objective: The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on the ICE B of A Merrill Lynch Index of 1-5 Year Treasury securities.

XI. PROCEDURES AND INTERNAL CONTROLS; REVIEW OF INVESTMENT PORTFOLIO A. Procedures
The City Treasurer and the Treasurer of the Component Municipal Entities shall establish written investment policy procedures in an Investment Procedures Manual to assist investment staff with day-to-day operations of the investment program consistent with this policy. Such procedures shall include explicit designation of persons responsible for carrying out investment transactions under the direction and supervision of the City Treasurer and the Treasurer of the Component Municipal Entities. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer and the Treasurer of the Component Municipal Entities. The procedures should include reference to:

1. Review of daily cash balances;

2. Process for selecting investments;

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15 3. Steps for purchasing an investment;

4. Settlement and safekeeping process;

5. Wire transfer agreements;

6. Collateral/depository agreements.

B. Internal Controls
The City Treasurer and the Treasurer of the Component Municipal Entities are responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City and the Component Municipal Entities, respectively, are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met.

C. Review of Investment Portfolio
The securities and other investments held by the City must be in compliance with Section VIII (Authorized and Suitable Investments) at the time of purchase. The City Treasurer and the Treasurer of the Component Municipal Entities, and any external investment manager engaged to assist in the management of the City’s investment portfolio pursuant to Section V.B. of this Investment Policy, shall review the portfolios quarterly to identify any securities or other investments that are no longer in compliance and advise the Finance Director of any noncompliance in a timely fashion. Any major and critical incidences of noncompliance identified by the City Treasurer, the Treasurer of the Component Municipal Entities, or any such external investment manager shall be reported by the Finance Director in the quarterly investment reports submitted by the Finance Director to the City Council pursuant to Section XII.A. of this Investment Policy.

The following segregation of responsibilities will form the basic system of internal controls for investments.

The table attached shows the different levels of approval and oversight responsibility.

FUNCTION RESPONSIBILITY
Develop formal Investment Policy Finance Director, City Treasurer, and Treasurer of the Component
Municipal Entities
Recommend modifications to Investment Policy Investment Committee Review Investment Policy and recommend to City Council/Agency Board Investment Committee Adopt Investment Policy City Council
Select Investments City Treasurer/Treasurer of the
Component Municipal
Entities/Advisor
Approve Transactions City Treasurer and Treasurer of
the Component Municipal
Entities
Execute investment transactions. Finance Manager
Investment Verification (match broker confirmation to City investment records)
Accountant
Record investment transactions into accounting records Finance Manager

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16 FUNCTION RESPONSIBILITY
Reconcile City investment records to accounting records and bank statements
Accountant
Security Time CD’s or receipt will be
maintained in the City vault in
the care of the City Treasurer
and the Treasurer of the
Component Municipal Entities.

All other securities will be held
third-party safekeeping.

Review of portfolio to determine conformance to Investment Policy Independent Auditors XII. REPORTING, DISCLOSURE AND PROGRAM EVALUATION
A. Monthly reports
So long as the City Council’s annual delegation of investment authority pursuant to CGC Section 53607 to the City Treasurer and the Treasurer of the Component Municipal Entities is effective, the City Treasurer and the Treasurer of the Component Municipal Entities shall make a monthly report of all investment transactions of the applicable local agency’s funds to the City Council.

B. Quarterly reports
Quarterly investment reports shall be submitted by the Finance Director and/or the City Treasurer and the Treasurer of the Component Municipal Entities to the City Council within 45 days after the end of the quarter. These reports shall disclose, at a minimum, the following information about the risk characteristics of the City’s portfolio:

1. An asset listing showing par value, cost and accurate and complete market value of each security, type of investment, issuer, maturity date, and interest rate;

2. A one-page summary report which shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Average portfolio credit quality; and,
d. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months, year to date, and since inception compared to the Benchmark Index returns for the same periods;

3. A statement of compliance with this Investment Policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution; and,

4. A statement that the City has adequate funds to meet its cash flow requirements for the next six months (or an explanation of why sufficient money will or may not be available).

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17 C. Annual reports
A comprehensive annual report shall be presented in conjunction with the Investment Policy review within 120 days of the end of the fiscal year. This report shall include comparisons of the investment portfolio’s actual return to the Benchmark Index return, suggest policies and procedural improvements that might enhance the investment program, and include an investment plan for the coming year.

D. Annual audit
The Finance Director shall establish an annual process of independent review by an external independent auditor to assure compliance with standard internal controls. Such audit will include tests deemed appropriate by the auditor.

E. Special audits
The City Council may at any time order an audit of the investment portfolio and/or the investment practices of the City Treasurer or the Treasurer of the Component Municipal Entities.

XIII. INVESTMENT COMMITTEE
The investment committee is established by Section 32.90 of the City’s Municipal Code to serve in an advisory capacity. Per the Municipal Code, the investment committee will be composed of two members of the City Council, the City Treasurer, the Treasurer of the Component Municipal Entities, and the Finance Director of the City. The investment committee is responsible for reviewing the City’s Investment Policy at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends; and recommending to the City Council any modifications to the policy it deems necessary.

Individual investment trades and purchases shall be done by the City Treasurer and the Treasurer of the Component Municipal Entities within the approved policy and guidelines.

The investment committee will review quarterly reports as outlined in Section XII.B of this policy.

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18 GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations.

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds.

Asked. The price at which a seller offers to sell a security.

Average life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

Banker’s acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

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19 Bid. The price at which a buyer offers to buy a security.

Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate.

Large denomination CDs may be marketable.

Certificate Of Deposit Account Registry System (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage.

CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

Commercial paper. The short-term unsecured debt of corporations.

Cost yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

Coupon. The rate of return at which interest is paid on a bond.

Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

Current yield. The annual income from an investment divided by the current market value.

Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

Debenture. A bond secured only by the general credit of the issuer.

Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

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20 Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index.

Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

Federal funds rate. The rate of interest charged by banks for short-term loans to other banks.

The Federal Reserve Bank through open-market operations establishes it.

Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo).

Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

Liquidity: The speed and ease with which an asset can be converted to cash.

Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.

Market risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

Market value. The price at which a security can be traded.

Marking to market. The process of posting current market values for securities in a portfolio.

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21 Maturity. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

Medium term notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

Modified duration. The percent change in price for a 100 basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

Money market. The market in which short term debt instruments (T-bills, discount notes, commercial paper and banker’s acceptances) are issued and traded.

Mortgage pass-through securities. A securitized participation in the interest and principal cash-flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

Mutual fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

Prepayment speed. A measure of how quickly principal is repaid to investors in mortgage securities.

Prepayment window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

Prudent investor rule. A standard of responsibility which applies to fiduciaries. In California Government Code 53600.3, the rule with respect to the fiduciaries investing public funds is stated as “[Investments shall be managed] with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity

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22 with those matters would use in the conduct of funds of like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” Realized yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

Regional dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

Repurchase agreement (RP, Repo). Short term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.

Securities And Exchange Commission Sec Rule 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

Supranational. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

Structured note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

Total rate of return. A measure of a portfolio’ performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. Treasury obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

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23 Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually.

Treasury bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

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City Council
July 17, 2024

STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: James Curtis, Community Services Manager
Subject: Authorize the City Manager to execute an agreement for event management services for the Indio International Tamale Festival.

RECOMMENDATION:

Authorize the City Manager to execute an agreement for event management services with Pickering Events, LLC for the Indio International Tamale Festival in a form negotiated and approved by the City Attorney
SUMMARY:

Earlier this year, the City issued a Request for Qualifications for management of the Indio International Tamale Festival. Out of five (5) firms that responded, three (3) firms were identified as the most qualified to provide management services.

BACKGROUND INFORMATION:

The Indio International Tamale Festival is a City event in its 31st year and is held on the first weekend in December every year. The event was founded in 1992 by the Downtown Merchants Association and others as a half-day event with 15 tamale vendors and 2,500 people in attendance.

The City is the owner of the Indio International Tamale Festival, its logo and trademark. The Community Services Department oversees the agreement and assists in the overall operation of the Tamale Festival by supporting an event management firm in securing permits, coordinating street closures and mapping, etc. The City also contributes other in-kind services such as, police, fire and trash services.

The professional services agreement with the CUSP Agency, LLC for management of the festival expired on December 31, 2023.

Considerable input has been received indicating that the City should look to bring the Tamale Festival back to its original roots and put tamales first! For the past 3 years, the City has provided the CUSP Agency over $200,000 for the operation of the festival. The proposed, future agreement would have the City providing $100,000 to the chosen firm. .

On April 12, 2024, the City received RFQ responses. The following five (5) firms responded to the RFQ for event management of the Indio International Tamale Festival:
 Kevaworks LLC (Palm Desert, CA)
 Palma City Productions (Indio, CA)
AGENDA ITEM #9.2
Authorize the City Manager to execute an agreement for event management ... Page 992 of 1671  Pickering Events, LLC (Indio, CA)
 Rebirth 23 (Los Angeles, CA)
 SOUNDSKILZ (Temecula, CA)
Staff evaluated the responses and ranked the following firms the highest, based on their experience, event management services, and similar kind of work:
 Kevaworks, LLC
 Pickering Events, LLC
 SOUNDSKILZ
Kevaworks, LLC dropped out of contention, per their request. On June 6, 2024, City staff held interviews with Pickering Events, LLC and SOUNDSKILZ. Staff believes Pickering Events would be the best-suited to provide these services; however, based on its final review and consideration, the City Council may want to select one of the other firms.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$100,000 In current year budget: Yes
Current FY General
Fund Impact:
$100,000 Budget adjustment: N/A
Next FY Financial
Impact:
$100,000 Strategic Objective: Festivals, Events, Arts & Culture
Source of funds: Community Services Fund-Org-Object
Reference:
1011167-521079
Additional Financial Details:

The City will provide $100,000 to the chosen firm for the event management of the Indio International Tamale Festival, which is a reduction from the previous annual budget of $200,000.

ATTACHMENTS:

Attachment 1 - Rebirth RFQ
Attachment 2 - Palma City RFQ
Attachment 3 - Pickering RFQ
Attachment 4 - Soundskilz RFQ
Attachment 5 - Kevaworks RFQ
APPROVAL(S):

Carl S. Morgan, Dir. Of Economic Development Approved - 08 Jul 2024 Steven Graham Pacifico, City Attorney Approved - 09 Jul 2024 Ruby D. Walla, Director of Finance Approved - 09 Jul 2024 Bryan H. Montgomery, City Manager Approved - 10 Jul 2024

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INDIO INTERNATIONAL TAMALE FESTIVAL
Management Proposal 2024

Authorize the City Manager to execute an agreement for event management ... Page 1077 of 1671 1 April 11, 2024
Jim Curtis
City of Indio, Community Services Director
100 Civic Center Mall
Indio, CA 92201
Dear CTO,
We are pleased to reintroduce KevaWorks, LLC., a premier event management firm dedicated to orchestrating memorable and successful community events of all sizes.

Established in 2001, KevaWorks has become a leader in the amusement event consulting and management industry whereby we touch over 250 events per year. Our specialized community festival team works closely with venues, municipalities and local residents to produce regionalized fairs in several markets entertaining tens of thousands annually.

As noted above, our team brings together a wealth of expertise and experience in planning, coordinating, and executing a diverse range of events, including parking lot activations, regional fairs and community festivals including the Indio International Tamale Festival for 7 + years from 2013-2019. With a keen eye for detail, meticulous planning, and a commitment to client satisfaction, we strive to exceed expectations and deliver exceptional experiences tailored to the unique vision and objectives of each event.

KevaWorks is headquartered at 1420 NW Gilman Blvd., Suite 2722, Issaquah, WA 98027 with a satellite o\ice in Rancho Mirage, CA to keep our thumb on the pulse of the diverse cultural experiences the Coachella Valley o\ers.

Your dedicated representative for all things tamale is Craig Herkimer, the managing member, who can be reached directly at (760) 203-3133 or [email protected].

Enclosed, please find our comprehensive event management proposal detailing the array of services we o\er and how our team is the perfect fit for the Indio International Tamale Festival as it moves forward in the coming years.

We appreciate the opportunity to present our proposal and look forward to once again collaborating with the City of Indio to bring your vision for the future of the festival to life.

Sincerely,
Craig Herkimer
Managing Member

Authorize the City Manager to execute an agreement for event management ... Page 1078 of 1671 2 Table of Contents
Management Summary ........................................................................................... 3 Statement of Qualifications ..................................................................................... 4 Approach to Management and Operations ........................................................................ 4 Management Ethos............................................................................................................................4 Operations Directive ..........................................................................................................................5 Pro-Forma for Anticipated Festival Operations.................................................................. 6 5-Year Plan for Enhancing the Festival............................................................................... 7 Listing of Project Personnel.............................................................................................10 Promotions, Marketing, and Advertising Experience.........................................................11 Marketing Strategy..........................................................................................................12 Financial Position and Qualifications...............................................................................14 Annual Management Fee and Revenue Share Structure:...................................................15 Current Contracts, Workload and Integration Plan ...........................................................16 References.....................................................................................................................17

Authorize the City Manager to execute an agreement for event management ... Page 1079 of 1671 3 Management Summary
We are pleased to present this management summary as part of our proposal to promote and manage the Indio International Tamale Festival (IITF) from 2025 – 2029, outlining our unique approach and the significant benefits we o\er the City of Indio.

KevaWorks is committed to operating the IITF as a premiere public amenity, enriching the cultural landscape of the city and fostering community engagement locally, throughout the region and abroad. Our approach combines strategic planning, innovative programming, and meticulous attention to detail to ensure a memorable and enjoyable experience for attendees of all ages.

Our specific management approach to the IITF involve leveraging our extensive expertise in managing the IITF from 2013-2019 and to enhance the event's overall quality and appeal.

This includes curating a diverse lineup of entertainment, enhanced culinary o\erings, and interactive experiences to cater to a broad audience demographic. Additionally, we prioritize sustainability and inclusivity in our management practices, implementing ecofriendly initiatives and accessibility measures to ensure that the event is welcoming and accessible to all members of the community.

Furthermore, our comprehensive understanding of the scope of services required for the successful management of the IITF enables us to provide tailored solutions that meet and exceed the city's expectations. From logistical coordination and vendor management to marketing and promotion, our dedicated team is equipped to handle every aspect of event management with professionalism and proficiency.

Our proposal and history with the IITF o\er the city a unique opportunity to elevate the IITF to new heights, positioning it as a flagship public festival that celebrates the diversity and vibrancy of the community and international cultural significance of the tamale. We are confident that our proven track record, innovative approach, and commitment to excellence make us the ideal partner for the successful management of this esteemed in 2025 and beyond.

Authorize the City Manager to execute an agreement for event management ... Page 1080 of 1671 4 Statement of Qualifications
Approach to Management and Operations
Management Ethos
We wholeheartedly embrace the mission of cultivating an unparalleled event experience for both city residents and esteemed guests alike, underscoring our steadfast commitment to fostering community unity and delight. Our approach to festival management for the IITF transcends mere logistical coordination; it embodies a profound dedication to curating moments of joy, connection, and lasting memories.

Meticulous planning is the cornerstone of our methodology, where each detail is precisely crafted with the utmost care and consideration. From the selection of performers to the layout of interactive exhibits, every aspect is thoughtfully orchestrated to harmonize seamlessly and create a cohesive tapestry of wonder and excitement.

Innovation pulsates through the veins of our programming, infusing each element with fresh perspectives and creative energy. We continuously scour the cultural landscape for emerging trends and novel ideas, infusing our festivals with a dynamic vitality that resonates deeply with attendees of all ages and backgrounds.

Yet, it is our unwavering commitment to community engagement and feedback that truly sets us apart. We view our festival not merely as an event, but as a living, breathing entity that thrives on the vibrant pulse of community interaction. We actively solicit input from residents, local businesses, and community leaders, incorporating their insights and suggestions into our planning process to ensure that the festival reflects the diverse tapestry of voices within the city.

Moreover, we are steadfast in our pursuit of exceeding expectations, constantly challenging ourselves to raise the bar and surpass previous benchmarks of excellence. Whether through innovative activations, immersive experiences, or unparalleled guest services, we are relentless in our quest to deliver an event that leaves an indelible impression on all who attend.

In essence, our vision for the festival extends far beyond mere entertainment; it is a celebration of the collective spirit of our community, a testament to the power of unity, and a beacon of hope and inspiration for generations to come. Together, we will continually transform the IITF into not just a wonderful community event, but the cherished tradition that binds us together in shared joy and celebration.

Authorize the City Manager to execute an agreement for event management ... Page 1081 of 1671 5 Operations Directive
From coordinating street closures and securing city permits to implementing e\ective crowd control measures and overseeing security services, we handle every aspect of event logistics with e\iciency and expertise. Our proactive approach to risk management ensures the safety and well-being of all participants while maintaining a conducive environment for enjoyment and engagement.

Moreover, we take the lead in cultivating strategic sponsorships, securing reputable vendors, and executing targeted advertising and marketing campaigns to maximize visibility and attendance. Through diligent budget management and meticulous accounting practices, we uphold fiscal responsibility and transparency, ensuring optimal resource allocation and financial sustainability.

Our dedicated human resources team plays a pivotal role in recruiting, training, and managing sta\ and volunteers, fostering a collaborative and cohesive workforce dedicated to delivering exceptional service and hospitality.

In essence, our comprehensive approach to event management encompasses all aspects of the IITF, from plan inception to execution, ensuring a successful and memorable experience for all involved. With our expertise and dedication, we are committed to upholding the IITF's legacy as a premier international event and driving its continued success for years to come.

Above all, for over three decades, this festival has maintained its core essence—a celebration deeply rooted in community spirit. It honors the cultural significance of the tamale, aspiring to extend the reach of these cherished traditions and experiences to a diverse audience, welcoming participants from every corner of society. Our team and operation is a natural extension of that spirit, bridging the gap between vision and execution.

Authorize the City Manager to execute an agreement for event management ... Page 1082 of 1671 6 Pro-Forma for Anticipated Festival Operations
Upon bid acceptance, our team will work with the Community Services Director to create a comprehensive pro-forma outlining expected festival operations, projected costs, revenue forecasts, and sta\ing requirements.

For this RFQ specifically, and to create initial benchmarks, we have outlined the broad strokes of the anticipated pro-forma below based on the most recent data from the 2023 IITF.

Expenses
Production (stages, tents, sound systems, etc.) $165,000 Sta\ing (including wages, permits, and insurance) $130,000 Entertainment $75,000
Marketing and Promotion $40,000
Contingency $20,000
Total Anticipated Expenses $430,000
Revenue
Sponsorship Revenue $150,000
Vendors $85,000
Other Income (amusements, concessions, merchandise) $35,000 * City Partnership Investment $220,000
Total Anticipated Revenue $500,000
* The specifics of the City Partnership Investment are outlined in the “Annual Management Fee and Revenue Share” section, which is presented later in this proposal.

Authorize the City Manager to execute an agreement for event management ... Page 1083 of 1671 7 5-Year Plan for Enhancing the Festival
Year 1: Legacy Location Constraints
Optimizing the utilization of the current venue, recognizing that the event will return to its traditional location after 2024.

Expand Tamale ODerings:
• Collaborate with local vendors and chefs to diversify tamale o\erings, including traditional, gourmet, and innovative variations.
• Introduce tamale-making workshops and cooking demonstrations to engage attendees and provide hands-on experiences.

Cultural Programming:
• Curate a lineup of cultural performances, including dance, music, and storytelling, highlighting diverse traditions and heritage.
• Partner with cultural organizations and community groups to showcase art exhibitions, craft demonstrations, and interactive cultural experiences.

Musical Entertainment:
• Book a diverse range of musical acts representing various genres to appeal to a broad audience.
• Refocus on the themed music stages to create distinct atmospheres and cater to di\erent musical preferences.

Year 2: Return to Old Town Indio with Expansion and Promotion Reintroducing the IITF to downtown, emphasizing its historical significance through targeted marketing e\orts, thus reconnecting with our origins.

Community Engagement:
• Establishing a strong presence in a revitalized downtown area through strategic layout planning and coordination. Identifying and maximizing optimal space utilization for all festival components and activities. • Engage with local businesses, schools, and community organizations to foster support and participation in the event, encouraging collaboration and involvement in planning and promotion.
• Utilize digital marketing channels, social media influencers, and strategic partnerships to increase visibility and attract attendees from both local and regional markets.

Authorize the City Manager to execute an agreement for event management ... Page 1084 of 1671 8 Year 3: Integration and Innovation
Top 10 Food Festivals in the Nation:
• We aim to reclaim our status as one of the nation's top 10 food festivals through innovative programming, culinary excellence, and unparalleled guest experiences, drawing upon the successful strategies of our previous management from 2013- 2019.

Integration of Tamale Experiences:
• Incorporate tamale-centric activities and attractions throughout the event, including tamale tastings, competitions, and educational workshops. • Partner with local farms and suppliers to source high-quality ingredients and showcase the diversity of tamale recipes and traditions. • Work with Guinness on some new tamale records – size of tamale, number of people eating tamale at the same time, number of ingredients in a tamale, etc.

Innovative Cultural Programming:
• Introduce interactive cultural exhibits and installations that celebrate the rich heritage and diversity of the community, o\ering immersive experiences for attendees.

Live Streaming and Digital Content:
• Implement live streaming of key performances and events to reach a wider audience beyond the festival grounds, leveraging digital platforms to engage virtual attendees.

Year 4: Expansion and Infrastructure
Infrastructure Development:
• Invest in infrastructure upgrades and amenities to enhance the attendee experience, including improved facilities, seating areas, and signage. • Implement technology solutions for registration, and crowd management to streamline operations and improve e\iciency.

Expanded Musical Entertainment:
• Attract headline musical acts and internationally renowned artists to headline the festival, elevating the caliber of musical entertainment and drawing larger crowds.

Year 5: Celebration and Continuation
Historical Celebration:
• Plan a special anniversary edition of the IITF to commemorate the growth and success over 35+ years, featuring special events, performances, and attractions.

Authorize the City Manager to execute an agreement for event management ... Page 1085 of 1671 9 • Highlight the festival's impact on the community and its role in promoting cultural exchange, culinary arts, and artistic expression.

Continued Growth and Sustainability:
• Maintain momentum and continue to innovate and expand the size and scope of the IITF, while ensuring sustainability and responsible stewardship of resources. • Foster partnerships and collaborations with local stakeholders, businesses, and government agencies to secure long-term support and investment in the festival's success.

By adhering to this 5-year plan, the IITF will transform into a leading cultural destination, presenting unparalleled tamale experiences, cultural programming, and musical entertainment to attendees locally and globally.

Authorize the City Manager to execute an agreement for event management ... Page 1086 of 1671 10 Listing of Project Personnel
Our team consists of experienced professionals with a diverse range of expertise in event management, marketing, publicity, operations, and finance. Each member of our team brings valuable skills and knowledge to the table, contributing to the success of the festival. Resumes for key personnel can be provided, highlighting relevant experience and qualifications.
• Craig Herkimer - Chief Tamale O\icer: Responsible for all aspects of the planning, management and oversight of the event from start to finish. • Alieta Sampley - Talent Coordination: Responsible for sourcing and coordinating performers and entertainers, ensuring seamless execution of talent-related aspects of events.
• Jesse Sampley - Marketing and Publicity: Spearheads marketing campaigns and publicity e\orts, driving awareness and engagement for events through strategic promotions and media relations.
• Tim Donovan - Logistics Manager: Oversees logistical operations, including transportation, equipment, and venue coordination, to ensure smooth execution of events from start to finish.
• Taylor Thiessen - Vendor Management: Manages vendor relationships and logistics, coordinating vendor participation and ensuring a diverse and high-quality vendor lineup for events.
• Matt Olds - Sponsorship Sales: Leads sponsorship acquisition e\orts, cultivating relationships with sponsors and securing partnerships to support events and maximize revenue opportunities.
• Mark Whitney - Operations Management: Manages all operational aspects of events, from setup and execution to teardown, ensuring e\icient and e\ective event logistics and execution.
• Andra Lambert - Finances: Handles financial management and budgeting for events, overseeing accounting, expense tracking, and financial reporting to ensure fiscal responsibility and transparency.

Authorize the City Manager to execute an agreement for event management ... Page 1087 of 1671 11 Promotions, Marketing, and Advertising Experience
With more than 7 years of dedicated involvement in the promotion and marketing of the IITF, our firm boasts unparalleled expertise and a proven track record of success in elevating this esteemed event to new heights of prominence and acclaim. Our longstanding partnership with the IITF has enabled us to cultivate a deep understanding of its unique brand identity, audience demographics, and strategic objectives, empowering us to tailor our marketing e\orts with precision and finesse.

Utilizing a strategic approach informed by years of experience and insight, we deploy a multifaceted marketing strategy that leverages the full spectrum of digital, traditional, and grassroots channels to maximize visibility and drive attendance. From targeted social media campaigns and email marketing initiatives to traditional advertising channels such as print, radio, and television, we employ a comprehensive mix of tactics designed to resonate with diverse audiences and capture their imagination.

Furthermore, our grassroots e\orts extend far beyond conventional marketing channels, encompassing community outreach programs, strategic partnerships with local businesses, schools and organizations, and immersive experiential activations designed to engage audiences on a personal and emotional level. By fostering genuine connections and meaningful interactions with the community, we create a sense of anticipation and excitement that transcends mere advertising and fosters lasting loyalty and enthusiasm for the IITF.

In essence, our extensive experience and deep-rooted commitment to the success of the IITF position us as not just marketers, but passionate advocates and stewards of this cherished event. With our unwavering dedication, strategic acumen, and proven track record of excellence, we stand ready to elevate the IITF to even greater heights of acclaim and admiration, ensuring its enduring legacy as a beloved cornerstone of our community for years to come.

Authorize the City Manager to execute an agreement for event management ... Page 1088 of 1671 12 Marketing Strategy
To attract guests from both the local market and beyond the Coachella Valley, we will implement a multifaceted marketing strategy that leverages a combination of digital, traditional, and experiential tactics. Here's a detailed plan:

Identify Target Audiences:
• Work with the Community Services Director to identify key demographic segments within the local market and neighboring regions.
• Segment audiences based on factors such as age, interests, and geographical proximity.

Digital Marketing:
• Launch a targeted digital advertising campaign across various platforms, including social media (Facebook, Instagram, Twitter), search engines (Google, Bing), and display networks.
• Utilize geo-targeting and demographic targeting features to reach potential attendees within specific geographic areas and demographic groups. • Create engaging content, such as video teasers, behind-the-scenes footage, and interactive posts, to generate excitement and anticipation for the event. • Implement retargeting ads to re-engage users who have previously visited the event website or expressed interest in attending.

Traditional Marketing:
• Place advertisements in local newspapers, magazines, and radio stations to reach audiences who may be less active online.
• Distribute printed promotional materials, such as flyers, posters, and brochures, at local businesses, tourist attractions, and visitor centers.

Partnerships and Collaborations:
• Forge partnerships with local businesses, hotels, and tourism agencies to crosspromote the event and o\er exclusive discounts or packages for attendees. • Collaborate with influencers, bloggers, and community leaders to amplify the event's reach and credibility within the local community and surrounding regions. • Explore sponsorship opportunities with relevant brands or organizations to increase exposure and support for the event.

Experiential Marketing:
• Host pre-event activations and pop-up experiences in key target markets to generate buzz and excitement leading up to the event.

Authorize the City Manager to execute an agreement for event management ... Page 1089 of 1671 13 • Organize promotional events and contests, such as VIP experiences, and meet-andgreets with performers or vendors, to incentivize attendance and engagement. • Incorporate interactive elements into the event itself, such as photo booths, live demonstrations, and immersive installations, to create memorable experiences that attendees will share with their networks.

Community Engagement:
• Engage with local community groups, chambers of commerce, and neighborhood associations to foster support and participation from residents. • O\er volunteer opportunities and community outreach initiatives to encourage involvement and investment in the event's success.
• Solicit feedback and input from local stakeholders and City Council to ensure that the event aligns with the needs and interests of the community. • By implementing this comprehensive marketing strategy, we aim to attract a diverse audience from both the local market and outside the Coachella Valley, driving attendance, engagement, and excitement for the event while solidifying its position as a must-attend destination on the regional calendar.