Agenda packet — Orange City Council, September 26, 2023 (part 2 of 3)

(i) If there is an approved multiemployer appr enticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used s olely for training apprentices. For purposes of this subparagraph, adequate records inc lude, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to receive any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate the process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime cont ractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.

Section 1813. Forfeiture for violations; contract stipulation; report of violations

The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty- five dollars ($25) for each worker employed in the execution of 158

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the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract, and shall report them to the Division of Labor Standards Enforcement.

Section 1815. Overtime

Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1 ½ times the basic rate of pay.
159

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ATTACHMENT NO. 2

CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204

Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017)

(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalti es for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 160

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(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return rece ipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days aft er the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 161

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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this sect ion or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 162
Lomita Neighborhood Street Improvement Location Map
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163
Agenda Item
City Council
Item #: 3.9. 9/26/2023 File #: 23-0602
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to Interior Demolition, Inc. for Bid No. 23-24.08; SP-4262; Demolition of Building at 2829 N. Glassell Street.

2. SUMMARY
Bids for the Demolition of Building at 2829 N. Glassell Street were received and opened on August 31, 2023. Four bidders responded to the notice inviting bids. The apparent low bidder is Interior Demolition, Inc. of Newhall, California in the amount of $124,200.

3. RECOMMENDED ACTION

1. Waive minor public works bidding irregularity in the bid proposal received by Interior Demolition, Inc.

2. Authorize the appropriation of $140,000 from the Capital Projects (500) unreserved fund balance to 500.7021.56012.20533 (2829 N. Glassell Street).

3. Award contract to Interior Demolition, Inc. in the total amount of $136,620, representing an original bid amount of $124,200, plus a 10% contingency of $12,420, for the Demolition of Building at 2829 N. Glassell Street; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure including a 10% contingency and utility service removal costs of $2,622 for this contract is $139,242 and will be funded in 2829 N. Glassell Street (20533) through Capital Projects (500).

Upon approval of this appropriation, the Capital Projects (500) estimated fund balance on September 26, 2023 will be $4,700,000.

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City Council previously approved the Purchase and Sale Agreement for the property located at City of Orange Printed on 9/21/2023Page 1 of 2
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Item #: 3.9. 9/26/2023 File #: 23-0602
The City Council previously approved the Purchase and Sale Agreement for the property located at 2829 N. Glassell Street on May 9, 2023. This property is located immediately adjacent to the parking lot for Olive Park.

As parking at Olive Park is inadequate to support the heavy use of the baseball fields, the subject property would be an ideal location to create additional overflow parking to support the park. The demolition of the site will include removal of the existing building, foundations, concrete slabs, grading and subgrade preparation, clearing and grubbing and placement of crushed aggregate base across the site.

The bid solicitation was advertised on August 17, 2023 as an informal bid for a period of two weeks and bids were opened on August 31, 2023. Four bids were received as follows:

Interior Demolition, Inc., Newhall $124,200.00
Resource Environmental, Inc., Cerritos $138,080.00
Danny Ryan Precision Contracting, Inc., Irvine $169,032.44 UBD, Inc., North Hollywood $184,983.00
There was a minor irregularity in the Interior Demolition, Inc. (Interior) bid. The bid package was missing pages P-6 (Public Contract Code Section 10285.1 Statement, Public Contract Code Section 10162 Questionnaire, and Public Contract Code Section 10232 Statement), P-7 (Non-Conclusion Affidavit), and P-8 (Debarment and Suspension Certification). The missing pages were subsequently submitted after the bid opening, so staff is recommending the City Council waive this minor public works bidding irregularity.

The low bid is about 30.7% lower than the Engineer’s Estimate of $179,000. Staff checked the references and qualifications for Interior Demolition, Inc., and found them to be acceptable, with adequate years of experience in completing contracts of a similar nature to this project. Therefore, staff recommends that Interior Demolition, Inc., be awarded the contract in the amount of $136,620, representing an original bid amount of $124,200, plus a 10% contingency of $12,420, for Demolition of Building at 2829 N. Glassell Street.

Construction is scheduled to begin in November 2023 and is expected to be completed by December 2023.

7. ATTACHMENTS
· Bid Abstract
· Location Map
· Contract with Interior Demolition, Inc.

City of Orange Printed on 9/21/2023Page 2 of 2
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165
Agenda Item
City Council
Item #: 3.9. 9/26/2023 File #: 23-0602
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to Interior Demolition, Inc. for Bid No. 23-24.08; SP-4262; Demolition of Building at 2829 N. Glassell Street.

3. RECOMMENDED ACTION

1. Waive minor public works bidding irregularity in the bid proposal received by Interior Demolition, Inc.

2. Authorize the appropriation of $140,000 from the Capital Projects (500) unreserved fund balance to 500.7021.56012.20533 (2829 N. Glassell Street).

Upon approval of this appropriation, the Capital Projects (500) estimated fund balance on September 26, 2023 will be $4,700,000.

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City Council previously approved the Purchase and Sale Agreement for the property located at City of Orange Printed on 9/21/2023Page 1 of 2
powered by Legistar™
166
Item #: 3.9. 9/26/2023 File #: 23-0602
The City Council previously approved the Purchase and Sale Agreement for the property located at 2829 N. Glassell Street on May 9, 2023. This property is located immediately adjacent to the parking lot for Olive Park.

The bid solicitation was advertised on August 17, 2023 as an informal bid for a period of two weeks and bids were opened on August 31, 2023. Four bids were received as follows:

Construction is scheduled to begin in November 2023 and is expected to be completed by December 2023.

7. ATTACHMENTS
· Bid Abstract
· Location Map
· Contract with Interior Demolition, Inc.

City of Orange Printed on 9/21/2023Page 2 of 2
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1 2 3 4
Bid No. 23-24.08; Project No. SP-4262
Date of Bid Opening: 8/31/2023
Tel. No. (818) 249-4932 Tel. No. (562) 468-7000 Tel. No. (949) 642-6664 Tel. No. (818) 482-8014 NO. DESCRIPTION OF WORK QUANTITY UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Existing Building Demolition (Wood
Frame, Two Stories, 6,540 SF) 1 LS 100,000.00$ $100,000.00 $83,060.00 $83,060.00 $96,000.00 $96,000.00 $133,000.00 $133,000.00 $154,009.00 $154,009.00 2 Clearing and Grubbing and Site
Grading Per Plan 15,800 SF 3.00$ $47,400.00 $2.00 $31,600.00 $1.08 $17,064.00 $1.39 $21,962.00 $0.31 $4,898.00 3 Install Crushed Miscellaneous Base,
(CMB), Depth = 4" 212 CY 150.00$ $31,800.00 $45.00 $9,540.00 $118.00 $25,016.00 $66.37 $14,070.44 $123.00 $26,076.00 $179,200.00 $124,200.00 $138,080.00 $169,032.44 $184,983.00 City of Orange: Summary of Bid Abstracts for:

Cerritos, CA Irvine, CA
Grand Total

ENGINEER'S ESTIMATE
Demolition of Building At 2829 Glassell Street

INTERIOR DEMOLITION,
INC. Resource Environmental, Inc. Danny Ryan Precision
Contracting, Inc.

Newhall, CA
UBD Inc
North Hollywood, CA

IMPROVEMENTS

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Location Map
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CONTRACT
[Demolition of Building At 2829 Glassell Street (Bid No. 23-24.08; SP-4262)]

THIS CONTRACT (the “Contract”) is made and ente red into as of ___ ___________, 2023 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and INTERIOR DEMOLITION, INC ., a California corporation (“Contractor”), who agree as follows.

ARTICLE 1
Work Performed

a. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by City, and under the conditions expressed in the two (2) bonds presented to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to and shall do all the work and furnish all the labor, materials, tools and equipment, except such as are mentioned in the specifications to be furnished by City to Contractor, necessary to complete in good workmanship and substantial manner the work (the “Work”) described in:

(1) The latest edition of the "City of Orange Standard Plans and Specifications" (the “Orange Book”) with the term "Engineer," as used in the Orange Book and in this Contract, to specifically include the City Engineer (or his/her designee);

(2) The "Standard Specifications for Public Works Construction” (the “Green Book”), and all amendments thereto , except the definition of “Subcontractor” in Section 1.2 (General – Terms and Definitions) of Part 1 (General Provisions) of the Green Book, which is hereby amended in its entirety to read as follows: “Subcontractor – An individual, firm, or corporation having a direct contract with the Contractor for the performance of a part of the Work;”

(3) The “City of Orange Standard Special Provisions;”

(4) The Standard Plans; and

(5) Contractor’s Bid Proposal , which is on file with City’s Department of Public Works.

b. Contractor acknowledges that it has received the Plans from City and that a complete copy of the Plans are in its possession and are hereby specifically referred to and by such reference made a part hereof. The Orange Book, Green Book and City of Orange Standard Special Provisions and Standard Plans are on file with City’s Public Works Director and are hereby specifically referred to and by such reference made a part hereof. Contractor hereby acknowledges that it has read, reviewed and understands the Plans, the Orange Book, the Green Book, the Special Provisions, the Standard Plans, and the Encroachment Permit as they relate to the Work, all of which documents shall be referred to herein collectively as the “Plans and Specifications.”

170
2 c. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal Code which requires, among other things, that Contractor utilize City’s exclusive solid waste hauler for the rental of bins for trash and debris removal and imposes mandatory recycling requirements for self-hauled construction and demolition waste. The terms and conditions set forth in this Contract shall control over any terms and conditions in the Plans and Specifications to the contrary.

d. The Work shall be performed in conformity with the Plans and Specifications and the Bid Proposal and all applicable laws, including any and all applicable federal and state labor laws and standards and applicable prevailing wage requirements and any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment.

e. Unless and until otherwise notified in writing by City’s Public Works Director, City’s Principle Engineer, Randy Nguyen (“Authorized City Representative”), shall be the person to whom Contractor will report for the performance of the Work hereunder. It is understood that Contractor’s performance hereunder shall be under the direction and supervision of the Authorized City Representative or such other person as City’s Public Works Director may designate from time to time, that Contractor shall coordinate the Work hereunder with the Authorized City Representative to the extent required by the Authorized City Representative, a nd that all performances required hereunder by Contractor shall be performed to the satisfaction of the Authorized City Representative or City’s Public Works Director.

f. It is expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and Contractor’s Bid Proposal, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said Bid Proposal conflicting herewith.

ARTICLE 2
Commencement of Work

Contractor shall commence the Work provided for in this Contract within ten (10) days of the date of the issuance by City of a Notice to Proceed and diligently prosecute completion of the Work within thirty (30) calendar days from such date, unless legal extension is granted in accordance with the terms set forth in the Green Book. Time is of the essence in this Contract.

Contractor shall do all things necessary and incidental to the prosecution of Contractor's Work.

ARTICLE 3
Compensation

a. Contractor agrees to receive and accept an amount not to exceed ONE HUNDRED TWENTY-FOUR THOUSAND TWO HUNDRED DOLLARS and 00/100 ($124,200.00) unless said amount is amended by Contract Change Order approved by the City, as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in 171
3 the prosecution of the Work until its acceptance by City, other than as provided below; (3) all risks of every description connected with the Work; (4) all expenses incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them. Retention amounts shall be withheld from progress payments as required by law unless Contractor provides securities in lieu of retention.

b. In addition to the scheduled Work to be performed by the Contractor, the parties recognize that additional, unforeseen work and services may be required by the Authorized City Representative. In anticipation of such contingencies, the sum of TWELVE THOUSAND FOUR HUNDRED TWENTY DOLLARS and 00/100 ($ 12,420.00) has been added to the total compensation of this Contract. The Authorized City Representative may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as the Authorized City Representative and the Contractor may agree upon in advance. Said additional work or services and the amount of compensation therefor, up to the amount of the authorized contingency, shall be memorialized in the form of a Contract Amendment approved by the City Manager on a form acceptable to the City Attorney . The Contractor agrees to perform only that work or those services that are specifically requested by the Authorized City Representative. Any and all additional work and services performed under this Contract shall be completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate or proposal submitted to and approved by the Authorized City Representative prior to the commencement of such Work or services.

c. The total amount of compensation under this Contract, including contingencies, shall not exceed ONE HUNDRED THIRTY -SIX THOUSAND SIX HUNDRED TWENTY DOLLARS and 00/100 ($136,620.00).

ARTICLE 4
Licenses

Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the Work contemplated by this Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.

ARTICLE 5
Guarantees

a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract.

b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any p art thereof fail to 172
4 function properly, as designed, due to any of the above causes within twelve (12) months after the date on which said Work is accepted by City, Contractor shall make repairs and furnish such materials and equipment as are necessary to be furnished and installed within fifteen (15) calendar days after the receipt of a demand from City.

c. Said Work will be deemed defective within the meaning of this guarantee in the event that it fails to function as originally intended either by the Plans and Specifications of this Contract or by the manufacturer(s) of the equipment incorporated into the Work.

d. In the event repairs are not made within fifteen (15) calendar days after Contractor's receipt of a demand from City, City shall have the unqualified option to make any needed repairs or replacements itself or by any other contractor. Contractor shall reimburse City, upon demand , for all expenses incurred in restoring said Work to the condition contemplated in this Contract, including the cost of any equipment or materials replaced.

e. It is understood that emergency repairs may, by necessity, be made by City.

Therefore, when defective equipment, materials or workmanship result in emergency repairs by City, Contractor shall reimburse City, upon demand, for all expenses incurred. Emergency repairs will be deemed as those repairs determined by City’s Director of Public Works to be necessary due to an immediate detriment to the health, safety, welfare or convenience of the residents of City.

ARTICLE 6
Water Quality

a. The Santa Ana Regional Water Quality Control Board (“RWQCB”) has issued National Pollutant Discharge Elimination System (“NPDES”) Permit No. R8 -2009-0030 (the “Permit”), which governs storm water and non -storm water discharges resulting from municipal activities performed by City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Drainage Area Management Plan (“DAMP”), containing Model Maintenance Procedures with Best Management Practices (“BMPs”) th at City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry -weather urban runoff, storm water runoff, and receiving water quali ty. Examples include: wash water from cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.

b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the office of City’s Director of Public Works. Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they relate to the Work and hereby shall perform the Work in conformance therewith.

ARTICLE 7
Independent Contractor; Contractor not Agent

a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this Contrac t. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this 173
5 Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Contract. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatso ever. Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights affo rded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long -term disability or workers' compensation insurance benefits.

b. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

ARTICLE 8
Public Work; Prevailing Wage

a. The Work which is the subject of this Contract is a “public work,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.

To the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed and understands those provisions of the Labor Code and shall prosecute and complete the Work under this Contract in strict compliance with all of those terms and provisions.

c. Contractor shall secure the payment of compensation to its employees in accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:

“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”

174
6 d. Contractor shall indemnify, protect, defend and hold harmless City and its officers, employees, contractors and agents, with counsel reasonably acceptable to City, from and against any and all loss, liability, damage, claim, cost, expense, and/or “increased costs” (including reasonable attorney’s fees, court and litigation costs, and fees of expert witnesses) which result or arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal law, including, without limitation, any applicable federal and/or state lab or laws (including, without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that, in connection with the construction of the W ork which is the subject of this Contract, Contractor shall bear all risks of payment or non -payment of state prevailing wages. “Increased costs” as used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time t o time. The foregoing indemnity shall survive termination of this Contract.

ARTICLE 9
Equal Employment Opportunity

During the performance of this Contract, Contractor agrees as follows:

a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

Such actions shall include, but not be limited to the following: 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. Contractor shall post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, men tal or physical disability, or any other basis prohibited by applicable law.

c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

ARTICLE 10
Conflicts of Interest

Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the builder for any project for which the design work is part of this Contract. 175
7 ARTICLE 11
Indemnity

Contractor shall defend, indemnify and hold harmless City and its officers, officials, agents, and employees from and against:

a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses (including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain or suffer arising from or as a result of the death of any person or any acc ident, injury, loss or damage whatsoever caused to any person or the property of any person which shall occur on or adjacent to the real property which is the subject of this Contract, or in connection with performance of this Contract which may be direc tly or indirectly caused by the acts or omissions of Contractor or its officers, employees, contractors or agents, or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract.

b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.

ARTICLE 12
Insurance

a. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder and the results of that Work by Contractor, its agents, representatives, employees or subcontractors. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Contract.

b. Contractor shall maintain the following minimum amount of insurance: the greater of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits carried by or available to Contractor.

(1) General Liability $2,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.
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8 (2) Automobile Liability $1,000,000 per accident for bodily injury and property damage.

(3) Workers’ Compensation as required by the State of California.

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

c. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of Contractor under this Contract.

d. Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self - insured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:

(1) City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of Contractor (any auto), and with respect to liability arising out of Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such Work or operations. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall apply to City as an additional insured.

(2) For any claims related to this Contract, Contractor’s insurance coverage shall be primary insurance with respect to City, its officers, officials, agents and employees. Any insurance or self-insurance maintained by City, its officers, officials, agents and employees shall be excess of Contractor’s insurance and shall not contribute with it.

(3) Coverage shall not be canceled, except after thirty (30) days’ prior written notice has been provided to City.

f. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Article 12. The endorsements shall be on forms acceptable to City. All certificates and endorsements are to be received and approved by City before the Work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
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9 g. All insurance procured and maintained by Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.

h. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Contract unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom by way of set-off from any sums owed Contractor.

i. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance t o either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

The Workers’ Compensation pol icy shall be endorsed with a waiver of subrogation in favor of City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor shall obtain any other endorsement that may be necessary to effect this waiver of subrogation.

j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.

ARTICLE 13
Termination

City, acting through its City Manager or his /her designee, reserves the right to terminate this Contract for any reason by giving five (5) days’ written notice of intent to terminate to Contractor. Upon receipt of notice, Contractor shall immediately cease work, unless the notice provides otherwise. Should City terminate this Contract, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Contract, unless such termination shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.

ARTICLE 14
Maintenance and Inspection of Records

In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records and other information (collectively, the “records”) pertaining to the co sts of and completion of services performed under this Contract. During the term of this Contract and for a period of three (3) years after termination or completion of this Contract, City shall have the right to inspect and/or audit Contractor's records pertaining to the performance of this Contract at Contractor's office. Contractor shall make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.

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10 ARTICLE 15
Compliance with Laws

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by Contractor or any subcontractor hereunder.

b. Contractor represents and warrants that it:

(1) Has complied and shall at all times during the term of this Contract comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Contract who is ineligible to work in the United States or under the terms of this Contract; and

(3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I-9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times during the term of this Contract respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Home land Security, the Department of Labor, or the Social Security Administration.

c. Contractor shall require all subcontractors and/or subconsultants to make the same representations and warranties required by this Article 15 when hired to perform services under this Contract.

d. Contractor shall, upon request of City, provide a list of all employees working under this Contract and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associ ated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Contract without written notice to City, accompanied by the verification required herein for such employees. Contractor shall require all subcontractors and/or sub-consultants to make the same verification when hired to perform services under this Contract.

e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee providing Work under this Contract who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee , such shall constitute a material breach of this Contract and may be cause for immediate termination of this Contract by City.

f. Contractor shall indemnify and hold City, its officials and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City 179
11 may sustain by reason of Contractor’s failure to comply with said laws, rules and regulations in connection with the performance of this Contract.

ARTICLE 16
Governing Law and Venue

This Contract shall be construed in accordance with and governed by the laws of the State of California and Contractor shall submit to the juri sdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California.

ARTICLE 17
Integration and Amendment

a. This Contract constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the Work to be performed under this Contract shall be of any force or effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent with or in violation of the provisions of this Contract shall not be compensated.

b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.

ARTICLE 18
Notice

Except as otherwise provided herein, all notices required under this Contract shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.

“CONTRACTOR” “CITY”

Interior Demolition, Inc. City of Orange
23508 Pine Street 300 E. Chapman Avenue
Newhall, CA 91321 Orange, CA 92866-1591

Attn: Maria Molina Attn: Randy Nguyen

Telephone: 818-249-4932 Telephone: 714-744-5531
E-Mail: [email protected] E-Mail: [email protected]

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12 ARTICLE 19
Claim Resolution

City and Contractor agree that the claim resolution process applicable to any claim by Contractor in connection with the Work provided herein shall be subject to the procedures set forth in California Public Contract Code Section 9204, attached hereto as Attachment No. 2, and incorporated herein by this reference.

ARTICLE 20
Counterparts

This Contract may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

[Remainder of page intentionally left blank; signatures on next page]

181
13 “CITY”

CONTRACT, BONDS AND INSURANCE
APPROVED BY:

Melissa M. Crosthwaite
Senior Assistant City Attorney

CITY OF ORANGE, a municipal corporation

By:

Daniel R. Slater
Mayor of the City of Orange

ATTEST:

Pamela Coleman, City Clerk

“CONTRACTOR”

INTERIOR DEMOLITION, INC., a
California corporation

[Note: Signature of Chairman of the By:

Board, President or Vice President is Printed Name:
required] Title:

[Note: Signature of Secretary, Assistant By:

Secretary, Chief Financial Officer or Printed Name:

Assistant Treasurer is also required] Title:

√

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ATTACHMENT NO. 1

CALIFORNIA LABOR CODE
SECTIONS 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815

Section 1725.5. Registration of contractors; mandatory registration; qualifications and application; fees; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract that is subject to the requirements of this chapter. For the purposes of this section, “contractor” includes a subcontractor as defined by Section 1722.1. (a) To qualify for registration under this section, a contractor shall do all of the following:
(1)(A) Register with the Department of Industrial Relations in the manner prescribed by the department and pay an initial nonrefundable application fee of four hundred dollars ($400) to qualify for registration under this section and an annual renewal fee on or before July 1 of each year thereafter. The annual renewal fee shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration and renewal fees may be adjusted no more than annually by the director to support the costs specified in Section 1771.3. (B) Beginning June 1, 2019, a contractor may register or renew according to this subdivision in annual increments up to three years from the date of registration. Contractors who wish to do so will be required to prepay the applicable nonrefundable application or renewal fees to qualify for the number of years for which they wish to preregister.
(2) Provide evidence, disclosures, or releases as are necessary to establish all of the following:
(A) Workers' compensation coverage that meets the requirements of Division 4 (commencing with Section 3200) and includes sufficient coverage for any worker whom the contractor employs to perform work that is subject to prevailing wage requirements other than a contractor who is separately registered under this section.

Coverage may be evidenced by a current an d valid certificate of workers' compensation insurance or certification of self-insurance required under Section 7125 of the Business and Professions Code. (B) If applicable, the contractor is licensed in accordance with Chapter 9 (commencing with Section 7000) of the Business and Professions Code.
(C) The contractor does not have any delinquent liability to an employee or the state for any assessment of back wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination by a court or any federal, state, or local administrative agency, including a confirmed arbitration award. However, for purposes of this paragraph, the contractor shall not be disqualified for any judgment, order, or determination that is under appeal, provided that the contractor has secured the payment of any amount eventually found due through a bond or other appropriate means. (D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law providing for the debarment of contractors from public works. (E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the performance of a contract for public works without being lawfully registered in accordance with this section, within the preceding 12 months or sinc e the effective date of the requirements set forth in subdivision (e), whichever is earlier. If a contractor is found to be in violation of the requirements of this paragraph, the period of disqualification shall be waived if both of the following are true:
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(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within the preceding 12 months.
(ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000). (b) Fees received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the performance of any contract for public work until once again registered pursuant to this section. If the failure to pay the renewal fee was inadvertent, the contractor may renew its registration retroactively by paying an additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the due date of the renewal fee.
(d) If, after a body awarding a contract accepts the contractor's bid or awards the contract, the work covered by the bid or contract is determined to be a public work to which Section 1771 applies, either as the result of a determination by the director pursuant to Section 1773.5 or a court decision, the requirements of this section shall not apply, subject to the following requirements:
(1) The body that awarded the contract failed, in the bid specification or in the contract documents, to identify as a public work that portion of the work that the determination or decision subsequently classifies as a public work.
(2) Within 20 days following service of notice on the awarding body of a determination by the Director of Industrial Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work as defined in this chapter, the contractor and any subcontractors are registered under this section or are replaced by a contractor or subcontractors who are registered under this section. (3) The requirements of this section shall apply prospectively only to any subsequent bid, bid proposal, contract, or work performed after the awarding body is served with notice of the determination or decision referred to in paragraph (2).
(e) The requirements of this section shall apply to any bid proposal submitted on or after March 1, 2015, to any contract for public work, as defined in this chapter, executed on or after April 1, 2015, and to any work performed under a contract for public work on or after January 1, 2018, regardless of when the contract for public work was executed.
(f) This section does not apply to work performed on a public works project of twenty -five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771. Payment of general prevailing rate

Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general pre vailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.

This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work. 184

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Section 1771.1 . Registration as a contractor or subcontractor required prior to bid submission; exceptions; violations; penalties
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code , or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code , provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a) shall be included in all bid invitations and public works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5. (c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5 in place of the unregistered subcontractor.
(e) The department shall maintain on its Internet Web site a list of contractors who are currently registered to perform public work pursuant to Section 1725.5.
(f) A contract entered into with any contractor or subcontractor in violation of subdivision (a) shall be subject to cancellation, provided that a contract for public work shall not be unlawful, void, or voidable solely due to the failure of the awarding body, contractor, or any subcontractor to comply with the requirements of Section 1725.5 or this section.
(g) If the Labor Commissioner or his or her designee determines that a contractor or subcontractor engaged in the performance of any public work contract without having been registered in accordance with this section, the contractor or subcontractor shall forfeit, as a civil penalty to the state, one hundred dollars ($100) for each day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of eight thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (h)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher tiered public works contractor or subcontractor who is found to have entered into a subcontract with an unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section 1725.5 or this section shall be subject to forfeiture, as a civil penalty to the state, of one hundred dollars ($100) 185

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for each day the unregistered lower tier subcontractor performs work in violation of the registration requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000). (2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and may waive the penalty for a first time violation that was unintentional and did not hinder the Labor Commissioner's ability to monitor and enforce compliance with the requirements of this chapter. (3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section 1725.5 due to the revocation of a previously approved registration. (4) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works contractor or subcontractor pursuant to paragraph (1). A higher tiered public works contractor or subcontractor may not require a lower tiered subcontractor to indemnify or otherwise be liable for any penalties pursuant to paragraph (1).
(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) and subparagraph (B) of paragraph (1) of subdivision (h). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742 . The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770), shall apply. (j)(1) Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of Section 1725.5 or this section, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public work.
(2) A stop order may be personally served upon the contractor or subcontractor by either of the following methods:
(A) Manual delivery of the order to the contractor or subcontractor personally. (B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public work and by thereafter mailing copies of the order by first class mail, postage prepaid to the con tractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 186

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(4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage rate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed 10 days.
(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both.
(l) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for public work entered into on or after April 1, 2015. This section shall also apply to the performance of any public work, as defined in this chapter, on or after January 1, 2018, regardless of when the contract for public work was entered.
(m) Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (n) This section shall not apply to work performed on a public works project of twenty -five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771.4. Additional requirements when bidding and awarding public works contracts

(a) All of the following are applicable to all public works projects that are otherwise subject to the requirements of this chapter:
(1) The call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. (2) The awarding body shall post or require the prime contractor to post job site notices, as prescribed by regulation.
(3) Each contractor and subcontractor shall furnish the records specified in Section 1776 directly to the Labor Commissioner, in the following manner:
(A) At least monthly or more frequently if specified in the contract with the awarding body. (B) In a format prescribed by the Labor Commissioner.
(4) If the contractor or subcontractor is not registered pursuant to Section 1725.5 and is performing work on a project for which registration is not required because of subdivision (f) of Section 1725.5, the unregistered contractor or subcontractor is not required to furnish the records specified in Section 1776 directly to the Labor Commissioner but shall retain the records specified in Section 1776 for at least three years after completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
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(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of Section 1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing work on the project and that includes a mechanism for resolving disputes about the payment of wages. (c) The requirements of paragraph (1) of subdivision (a) shall only apply to contracts for public works projects awarded on or after January 1, 2015.
(d) The requirements of paragraph (3) of subdivision (a) shall apply to all contracts for public work, whether new or ongoing, on or after January 1, 2016.

Section 1775. Penalties for violations

(a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor.
(2)(A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following:
(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.
(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.
(B)(i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor 188

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or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.

Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules

(a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journey man, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771 , 1811, and 1815 for any work performed by his or her employees on the public works project. 189

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(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.

The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft -Hartley trust fund ( 29 U.S.C. Sec. 186(c)(5) ) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor - management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 190

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(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each cal endar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code ) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.

Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program

(a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or underg o testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written 191

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apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o).
(e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.

The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, i f requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a s ubcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 192

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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1 -to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which th e apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002 -03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Indust rial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
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(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used s olely for training apprentices. For purposes of this subparagraph, adequate records incl ude, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to recei ve any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate th e process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.

Section 1813. Forfeiture for violations; contract stipulation; report of violations

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the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the executi on of the contract, and shall report them to the Division of Labor Standards Enforcement.

Section 1815. Overtime

Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 h ours per day at not less than 1 ½ times the basic rate of pay.
195

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ATTACHMENT NO. 2

CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204

Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017)

(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and f ormed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 196

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(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying w hat portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutu ally agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and conf er for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 197

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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behal f of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontrac tor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civi l action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 198
Agenda Item
City Council
Item #: 3.10. 9/26/2023 File #: 23-0615
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Contract with Sequel Contractors, Inc.; and Final Acceptance of Bid No. 22-

23.17; SP-4237; Community Development Block Grant, Fiscal Year 2022-2023, Sycamore and Palmyra Neighborhood Street Rehabilitation and Americans with Disabilities Act Wheelchair Access Ramp Replacement at Various Locations and authorization to file Notice of Completion.

2. SUMMARY
The City of Orange has entered into a contract with Sequel Contractors, Inc. for the Community Development Block Grant, Fiscal Year 2022-2023, Sycamore and Palmyra Neighborhood Street Rehabilitation and Americans with Disabilities Act Wheelchair Access Ramp Replacement at Various Locations. Due to the existing field conditions, extra work has been added at the bid unit price in the amount of $177,646.90. The work has been completed to the satisfaction of the Public Works Department.

3. RECOMMENDED ACTION

1. Approve the First Amendment to Contract in the amount of $92,345.85 to Sequel Contractors, Inc. for the additional work and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Accept Community Development Block Grant, Fiscal Year 2022-2023, Sycamore and Palmyra Neighborhood Street Rehabilitation and Americans with Disabilities Act Wheelchair Access Ramp Replacement at Various Locations as complete and authorize staff to file Notice of Completion with the County Recorder.

4. FISCAL IMPACT
The total expenditure for this contract is $1,030,657.40 and will be funded through:

Sycamore & Palmyra Neighborhoods St Rehab (20500) CDBG (310) $608,000.00 ADA Improvements (11328) CDBG (310) 68,000.00
Pavement Management Program (13120) M2 (263) 354,657.40 Total $1,030,657.40

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

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Goal 4: Provide outstanding public service.
b. Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City Council awarded the Community Development Block Grant, Fiscal Year 2022-2023, Sycamore and Palmyra Neighborhood Street Rehabilitation and Americans with Disabilities Act Wheelchair Access Ramp Replacement at Various Locations on January 10, 2023, to Sequel Contractors, Inc.

During construction, additional work was added due to the existing field conditions. The work has been completed to the satisfaction of the Public Works Department. The extra work was agreed at the bid unit price in the amount of $177,646.90 which represents a 20.8% increase from the original awarded contract amount.

The awarded contract amount for Sequel Contractors, Inc. was $938,311.55, representing an original amount of $853,010.50, plus a 10% contingency of $85,301.05. Staff is recommending that the City Council approves the First Amendment to Contract in the amount of $92,345.85 bringing the total awarded contract amount to $1,030,657.40.

7. ATTACHMENTS
· First Amendment to Contract
· Notice of Completion and Acceptance.

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Agenda Item
City Council
Item #: 3.10. 9/26/2023 File #: 23-0615
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Contract with Sequel Contractors, Inc.; and Final Acceptance of Bid No. 22-

3. RECOMMENDED ACTION

1. Approve the First Amendment to Contract in the amount of $92,345.85 to Sequel Contractors, Inc. for the additional work and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this contract is $1,030,657.40 and will be funded through:

Sycamore & Palmyra Neighborhoods St Rehab (20500) CDBG (310) $608,000.00 ADA Improvements (11328) CDBG (310) 68,000.00
Pavement Management Program (13120) M2 (263) 354,657.40 Total $1,030,657.40

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

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Goal 4: Provide outstanding public service.
b. Provide facilities and services to meet customer expectations.

7. ATTACHMENTS
· First Amendment to Contract
· Notice of Completion and Acceptance.

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FIRST AMENDMENT
TO

CONTRACT
[CDBG FY 2022-23 Sycamore and Palmyra Neighborhood Street Rehabilitation and ADA Wheelchair Access Ramp Replacement at Various Locations (Bid No. 22-23.17)]

THIS FIRST AMENDMENT TO CONTRACT (the “First Amendment to Contract”) is made and entered into as of ______________, 2023 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and SEQUEL CONTRACTORS, INC ., a California corporation (“Contractor”), with reference to the following.

A. City and Contractor entered into a Contract ( Agreement No. 7 465) dated as of February 6, 2023, which is incorporated herein by this reference (the “Original Contract”); and

B. City and Contractor desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Contract by revising the Scope of Services and increasing the compensation.

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Contract.

Section 2. Cross-References. City and Contractor agree that all references in this First Amendment are deemed and construed to refer to the Original Contract, as implemented by this First Amendment.

Section 3. Compensation. Article 3 of the Original Contract is hereby amended to increase the total not-to-exceed and total compensation for the services to be rendered by NINETY-TWO THOUSAND THREE HUNDRED FORTY-FIVE DOLLARS and 85/100 ($92,345.85) and Sections 3.a and 3.c are hereby amended in their entirety to read as follows:

“a. Contractor agrees to receive and accept an amount not to exceed NINE

HUNDRED AND FORTY -FIVE THOUSAND THREE HUNDRED FIFTY -
SIX DOLLARS and 35/100 ($945,356.35) as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract.

Said compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by City, other than as provided below; (3) all risks of every description connected with the Work; (4) all expenses incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them. Retention amounts shall be withheld from 203
2 progress payments as required by law unless Contractor provides securities in lieu of retention.”

“c. the total amount of compensation under this Contract, including contingencies, shall not exceed ONE MILLION THIRTY THOUSAND SIX HUNDRED FIFTY-SEVEN DOLLARS and 40/100 ($1,030,657.40).

Section 4. Integration. This First Amendment amends, as set forth herein, the Original Contract and, except as specifically amended hereby, the Original Contract shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Contract, the terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.

[Remainder of page intentionally left blank; signatures on next page]

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3 IN WITNESS of this Contract, the parties enter into this Contract on the year and day first above written.

“CONTRACTOR” “CITY”

SEQUEL CONTRACTORS, INC., CITY OF ORANGE, a municipal corporation a California corporation

*By: By:

Printed Name: Daniel R. Slater, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Melissa M. Crosthwaite
Senior Assistant City Attorney

*NOTE: If CONTRACTOR is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice -President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

√
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RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Orange
300 East Chapman Avenue
Orange, California 92866
Attention: City Clerk

[Space above this line for Recorder’s use only.]

THIS DOCUMENT IS RECORDED AT THE

REQUEST AND FOR THE BENEFIT OF THE CITY

OF ORANGE AND IS EXEMPT FROM THE

PAYMENT OF A RECORDING FEE PURSUANT
TO GOVERNMENT CODE SECTIONS 6103 AND
27383.

NOTICE OF COMPLETION AND ACCEPTANCE

NOTICE IS HEREBY GIVEN that work on that certain public work and improvements known as “CDBG FY 2022- 23 Sycamore and Palmyra Nieghborhood Street Rehabilitation and ADA Wheelchair Access Ramp Replacement at Various Locations (Bid No. 22-23.17; SP-4237)” (herein referred to as the “Project”) , for the owner, the City of Orange, a municipal corporation (herein referred to as the “City”), whose address is 300 E. Chapman Avenue, Orange, CA 92866, was completed and accepted by the City Council of the City of Orange on September 26, 2023 at a regular meeting of its members, at which a quorum was present and acting throughout. The Project is at various locations in the City of Orange, State of California. The contractor who performed (or caused to be performed) said public work and improvements were Sequel Contractors, a California corporation, with its principal office at 13546 Imperial Hwy, Sante Fe Springs, State of California.

The name of the surety on the Labor and Material Bond for the Project is Travelers Casualty and Surety Company of America, Connecticut (Bond No. 107696765) in the amount of $853.010.50.

DATED as of the 26th day of September 2023. CITY OF ORANGE, a municipal corporation

By:

Daniel R. Slater, Mayor, City of Orange

STATE OF CALIFORNIA

COUNTY OF ORANGE

I, Daniel R. Slater , Mayor of the City of Orange, state that I have read the foregoing document know the contents thereof, and that the facts therein stated are true of my own knowledge. I hereby declare under penalty of perjury that the foregoing is true and correct.

DATED as of the 26th day of September 2023 at Orange, California.

Daniel R. Slater, Mayor, City of Orange

I, Pamela Coleman, City Clerk for the City of Orange, hereby attest that Daniel R. Slater is known to me to be the Mayor of the City of Orange and known to me to be the person who executed the within instrument on behalf of said municipal corporation and acknowledged to me that the City of Orange executed the same.

Pamela Coleman, City Clerk, City of Orange
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Agenda Item
City Council
Item #: 3.11. 9/26/2023 File #: 23-0618
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Sections 3.08.080 and 3.08.410 of the Orange Municipal Code. Ordinance No. 12-23

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on September 12, 2023.

The Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Barrios, Dumitru, Tavoularis, Bilodeau Gutierrez, Gyllenhammer, Slater
NOES: None
ABSENT: None

3. RECOMMENDED ACTION
Adopt Ordinance No. 12-23.

4. ATTACHMENTS
· Ordinance No. 12-23
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Agenda Item
City Council
Item #: 3.11. 9/26/2023 File #: 23-0618
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Sections 3.08.080 and 3.08.410 of the Orange Municipal Code. Ordinance No. 12-23

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on September 12, 2023.

The Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Barrios, Dumitru, Tavoularis, Bilodeau Gutierrez, Gyllenhammer, Slater
NOES: None
ABSENT: None

3. RECOMMENDED ACTION
Adopt Ordinance No. 12-23.

4. ATTACHMENTS
· Ordinance No. 12-23
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ORDINANCE NO. 12-23

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF ORANGE AMENDING SECTIONS

3.08.080 AND 3.08.410 OF THE ORANGE
MUNICIPAL CODE TO UPDATE THE CITY’S

PURCHASING SYSTEM
WHEREAS, Chapter 3.08 of the Orange Municipal Code sets forth the City’s procedures for the purchase of materials, supplies and equipment, professional services, and the selection of contractors to perform public projects, and
WHEREAS, the purpose of this ordinance is to increase the thresholds for the use of purchase orders in connection with the procurement of materials, supplies and equipment, public projects, and professional services.

THE CITY COUNCIL OF THE CITY OF ORANGE DOES ORDAIN AS
FOLLOWS:

SECTION I:

The subject Ordinance is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a "project" as defined in Guideline 15378.

SECTION II:

Section 3.08.080, “Revenue and Finance – Purchasing System – General -- Purchase Orders,” and Section 3.08.410, “Revenue and Finance – Purchasing System – Professional Services – Limits and Approvals,” of the Orange Municipal Code are hereby amended to read as follows:

3.08.080 General – Purchase Orders.

The procurement of all materials, supplies or equipment, public projects and professional services of $5,000 or more shall be made only by written purchase orders issued by the Purchasing Officer and any other contractual document deemed necessary and appropriate by the Purchasing Officer and the City Attorney. Except as otherwise provided herein, no purchase order shall be issued unless the prior approval of the Purchasing Officer, or his or her designated representative, has first been obtained. Supplies, equipment, public projects and professional services of less than $5,000 in any one transaction shall be made using simplified and cost- effective operational procedures and forms approved by the Purchasing Officer without the use of formal or informal bid procedures and do not require a written purchase order. (Ord. 25-04) 209
2 3.08.410 Professional Services—Limits and Approvals.

A Professional services of less than $5,000 require the approval of the initiating department head, shall be processed using operational procedures and forms approved by the Purchasing Officer and do not require a written purchase order.

B. Professional services with a value in excess of $5,000.00 but not more than $30,000.00 require the approval of the initiating department head and shall be made by written contract executed by the City Manager and approved as to form by the City Attorney.

C. Professional services with a value in excess of $30,000.00 require the approval of the City Council and shall be made by written contract executed by the Mayor and approved as to form by the City Attorney. (Ord. 25-04)
SECTION III:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION IV:

The City Clerk is hereby directed to certify the adoption of this Ordinance and cause the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage.

ADOPTED this day of , 2023.

Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange
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3 STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the ____ day of _______, 2023, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2023 was duly passed and adopted by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
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Agenda Item
City Council
Item #: 7.1. 9/26/2023 File #: 23-0612
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Consideration of a two-year professional services agreement with Townsend Public Affairs, Inc. for grant writing and legislative advocacy services.

2. SUMMARY
The California State Legislature introduces thousands of bills each legislative session with varying degrees of potential impact on local agencies. Over the past year, Townsend Public Affairs, Inc. has provided excellent services to the Orange community, bringing the City’sattention to consequential grants and legislation. In considering the benefits Townsend Public Affairs, Inc. has brought to the City coupled with their understanding of the community’sneeds, it is recommended the City Council approve a two-year agreement with Townsend Public Affairs, Inc.

3. RECOMMENDED ACTION
Approve a two-year agreement with Townsend Public Affairs, Inc. in the amount of $216,000 for legislative advocacy and grant writing services expended from account number 100.0201.51780.00000, and authorize the Mayor and City Clerk to execute the two-year agreement on behalf of the City.

4. FISCAL IMPACT
The total expenditure for FY24 is $81,000 which will be paid through the General Fund, account number 100.0201.51780.00000.

5. STRATEGIC PLAN GOALS
Goal 2: Be a Fiscally Healthy Community
b. Analyze future fiscal needs and potential revenue opportunities.

Goal 3: Enhance and Promote Quality of Life in the Community e. Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.

6. DISCUSSION AND BACKGROUND
On October 11, 2022, the Orange City Council approved a one-year, $96,000 professional services agreement (PSA) with Townsend Public Affairs, Inc. (TPA) for legislative advocacy and grant writing services. Upon entering into a PSA, City representatives met with TPA to identify legislative and grant priorities. In relying on their experience, professional network, and legislative acumen, TPA was able City of Orange Printed on 9/21/2023Page 1 of 2
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Item #: 7.1. 9/26/2023 File #: 23-0612
priorities. In relying on their experience, professional network, and legislative acumen, TPA was able to strategize a clear plan and produce significant benefits for the Orange Community.

While competitive grants, the California State budget process, and the federal appropriations process are excellent methods to secure proceeds for community projects, thousands of projects are submitted for consideration. TPA has demonstrated a clear understanding of the best methods to employ in order to secure funding through these processes. The TPA team worked with City staff to identify projects with the greatest likelihood of grant or earmark selections. As a result of these efforts, TPA secured $3,189,950 through various funding opportunities (with over $3,000,000 in additional funds pending approval).

The total proposed annual agreement amount represents only 3% of the funding secured through TPA in the past year. Additionally, continued investment provides the City of Orange a significant opportunity to advance important community projects. With TPA’srecent success and demonstrated understanding of the Orange community, City staff recommends the City Council approve a two-year agreement with TPA totaling $216,000. The proposed two-year agreement locks in a $1,000 per month increase to more proactively engage in securing funding on behalf of the City through the State and Federal funding cycles. It should also be noted that despite the $1,000 per month increase, TPA’s rate remains lower than the other proposals received last year for all-inclusive services (i.e., legislative advocacy and grant writing) making TPA the most cost-effective, responsible bidder.

Should the City Council approve this agreement, City staff will continue to work with TPA on identifying viable funding opportunities while ensuring Orange has a greater legislative voice in Sacramento.

7. ATTACHMENTS
· Townsend Public Affairs Agreement
· Listing of Awarded Projects and Funding Programs
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Agenda Item
City Council
Item #: 7.1. 9/26/2023 File #: 23-0612
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Consideration of a two-year professional services agreement with Townsend Public Affairs, Inc. for grant writing and legislative advocacy services.

4. FISCAL IMPACT
The total expenditure for FY24 is $81,000 which will be paid through the General Fund, account number 100.0201.51780.00000.

5. STRATEGIC PLAN GOALS
Goal 2: Be a Fiscally Healthy Community
b. Analyze future fiscal needs and potential revenue opportunities.

Goal 3: Enhance and Promote Quality of Life in the Community e. Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.

6. DISCUSSION AND BACKGROUND
On October 11, 2022, the Orange City Council approved a one-year, $96,000 professional services agreement (PSA) with Townsend Public Affairs, Inc. (TPA) for legislative advocacy and grant writing services. Upon entering into a PSA, City representatives met with TPA to identify legislative and grant priorities. In relying on their experience, professional network, and legislative acumen, TPA was able City of Orange Printed on 9/21/2023Page 1 of 2
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priorities. In relying on their experience, professional network, and legislative acumen, TPA was able to strategize a clear plan and produce significant benefits for the Orange Community.

7. ATTACHMENTS
· Townsend Public Affairs Agreement
· Listing of Awarded Projects and Funding Programs
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PROFESSIONAL SERVICES AGREEMENT
[Grant Writing and Legislative Advocacy Services]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on this ____ day of ________________, 2023 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and TOWNSEND PUBLIC AFFAIRS, INC., a California corporation (“Contractor”), who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. As a material inducement to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are th e subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.

Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provid ing such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.

Jack Morgan, Senior Assistant to the City Manager (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or his/her designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.

2. Compensation and Fees.

a. Contractor's total compensation for all services performed under this Agreement, shall not exceed TWO HUNDRED SIXTEEN THOUSAND and 00/100 ($216,000.00) without the prior written authorization of City.

b. The above compensation shall include all costs, including, but not limited to, all clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto rental, subsistence and all related expenses.

3. Payment.

a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.
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2 b. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

c. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.

4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously authorized in writing and approved by City as an amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

5. Licenses. Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement.

6. Independent Contractor . At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relatin g to the payment of its subcontractors, agents and employees, including compliance with social security withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.

Contractor acknowledges that it and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

7. Contractor Not Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.

It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.
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3 9. Assignment or Subcontracting. No assignment or subcontracting by Contractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.

10. Time of Completion . Except as otherwise specified in Exhibit “A,” Contractor shall commence the work provided for in this Agreement within five (5) days of the Effective Date of this Agreement and diligently prosecute completion of the work in accordance with the time period set forth in Exhibit “A” hereto or as otherwise agreed to by and between the representatives of the parties.

11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work.

12. Reserved.

13. Delays and Extensions of Time . Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor’s control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writing, wh y the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.

14. Products of Contractor. The documents, studies, evaluations, asses sments, reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products produced or provided by Contractor for this Agreement shall become the property of City upon receipt. Contractor shall deliver all such products to City prior to payment for same. City may use, reuse or otherwise utilize such products without restriction.

15. Equal Employment Opportunity . During the performance of this Agreement, Contractor agrees as follows:

a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

Such actions shall include, but not be limited to the following: 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. Contractor agrees to post in 218
4 conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a consultant to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code.

17. Indemnity.

a. To the fullest extent permitted by law , Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:

(1) Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s work under this Agreement, including any and all claims under any law pertaining to Contractor or its employees’ status as an independent contractor and any and all claims under Labor Code section 1720 related to the payment of prevailing wages for public works projects; and

(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgmen t that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph.

b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability 219
5 arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.

c. Except for the Indemnitees, the indemnifications provided in this Agreement shall not be construed to extend any third-party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.

d. The indemniti es set forth in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors.

18. Insurance.

a. Contractor shall carry workers ’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker s’ compensation benefits under any City program.

b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) One Million Dollars ($1,000,000) per occurrence ; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.

c. Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($ 1,000,000); or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis.

d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Contractor under this Agreement.

e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement.

220
6 f. Reserved.

g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy.

Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.

h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days’ prior written notice to City.

i. Except for professional liability insurance coverage that may be required by this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of professional liability insurance coverage, such coverage shall be issued by companies either licensed or admitted to conduct business in Califo rnia so long as such insurer pos sesses the aforementioned Best rating.

j Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City.

In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set -off from any sums owed Contractor.

k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery.

Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

l. Contractor shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to City for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein.

19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days’ written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise.

Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits. 221
7 20. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.

City and its authorized representatives shall have access to and the right to audit and reproduce any of Contractor's records regarding the services provided under this Agreement. Contractor shall maintain all such records for a period of at least three (3) years after termination or completion of this Agreement. Contractor agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.

21. Compliance with all Laws/Immigration Laws.

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement.

b. If the work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, to the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified p revailing rates of wages to all such workers . The general prevailing wage determinations for c rafts can be located on the web site of the Department of Industrial Relations (www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

c. Contractor represents and warrants that it:

(1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and

(3) Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to 222
8 immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.

e. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.

f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.

g. If Contractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee, that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City.

h. Contractor agrees to indemnify and hold City, its officers, officials, agents and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures City may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in connection with the performance of this Agreement.

22. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California and Contractor agrees to submit to the jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, California.

23. Integration. This Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any wo rk performed which is inconsistent with or in violation of the provisions of this Agree ment shall not be compensated.

24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally , by e -mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission.

223
9 “CONTRACTOR” “CITY”

Townsend Public Affairs, Inc. City of Orange
1401 Dove Street, Ste. 330 300 E. Chapman Avenue
Newport Beach, CA 92660 Orange, CA 92866-1591
Attn.: Christopher Townsend Attn.: Jack Morgan

Telephone: 949-399-9050 Telephone: 714-744-2220
E-Mail: [email protected] E-Mail: [email protected]

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

[Remainder of page intentionally left blank; signatures on next page]

224
10 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

TOWNSEND PUBLIC AFFAIRS, INC., CITY OF ORANGE, a municipal corporation a California corporation

*By: By:

Printed Name: Daniel R. Slater, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Nathalie Adourian
Senior Assistant City Attorney

*NOTE: City requires the following signature(s) on behalf of the Contractor:
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to City.

√

225

EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
226

Exhibit “A”

Page 1 of 3 ends

EXHIBIT “A”
S

COPE OF SERVICES

A. STATE LEGISLATIVE ADVOCACY

1. Work with the City Council, the City Manager, and key staff to discuss goals, objectives, opportunities, and priorities.

2. Maintain a working relationship with the City’s legislative delegation.

3. Work effectively at the Sacramento -level with the Governor’s office and various state departments.

4. Demonstrate an extensive knowledge of state laws, regulations and issues impacting the City.

5. On an annual basis, work with the City to update its Legislative Platform to look at upcoming legislative trends.

6. Undertake advocacy, including strategy development and all related activities to attain the objectives of the City. Related activities include policy analysis, drafting legislation, meeting with legislators and staff, obtaining sponsor(s) for legislation, drafting legislative amendments, coordinating testimony at legislative hearings and administrative agencies, attending meetings, organizing advocacy trips, and otherwise representing the City’s positions.

7. Review all proposed, introduced, and amended legislation and administrative rules and regulations, to determine and provide analysis as appropriate on their impact on the City and recommend positions to be taken on the legislation and administrative rules and regulations.

8. Provide monthly electronic reports on status of legislation and other related matters such as bill language and committee analysis, an annual report giving an overview of approved legislation and final administrative rules and regulations and a forecast of important issues in the upcoming year.

9. Coordinate and cooperate with the League of California Cities, Association of California Cities – Orange County and other organizations, municipalities, companies and firms having similar legislative obje ctives as the City. Where appropriate, advocate positions on legislation and work to secure language in law that will advance the City’s interests.

10. Regularly communicate with the City to assess legislative options, analyze legislation and discuss policy objectives including review and input into the City’s legislative policy guide. Present legislative issues to the full City Council as needed/upon request.

11. Participate in regular informational, planning and coordination meetings with City staff as needed. As sist City Management and City Council during visits to Sacramento on official business.

12. Undertake advocacy on technical matters, compliance reporting and associated activities.

13. Prepare and file all applicable Fair Political Practices Commission lobbying documents and reports within all applicable deadlines, per the provisions of the Political Reform Act of 1974 as amended. Provide the City notification of any changes or modifications that may be pertinent.
227

Exhibit “A”

Page 2 of 3 ends

B. FEDERAL LEGISLATIVE ADVOCACY

1. Work with the City Council, the City Manager, and key staff to discuss goals, objectives, opportunities, and priorities.

2. Maintain a working relationship with the City’s legislative delegation.

3. Work effectively at the federal level with various federal departments.

4. Demonstrate an extensive knowledge of federal laws, regulations and issues impacting the City.

5. On an annual basis, work with the City to update its Legislative Platform to look at upcoming legislative trends.

9. Coordinate and cooperate with the League of C alifornia Cities, Association of California Cities – Orange County and other organizations, municipalities, companies and firms having similar legislative objectives as the City. Where appropriate, advocate positions on legislation and work to secure langu age in law that will advance the City’s interests.

11. Participate in regular informational, planning and coordination meetings with City staff as needed. Assist City Management and City Council during visits to Washington D.C. on official business.

12. Undertake advocacy on technical matters, compliance reporting and associated activities.

13. Prepare and file all applicable Fair Political Practices Commission lobbying documents and reports within all applicable deadlines, per the provisions of the Political Ref orm Act of 1974 as amended. Provide the City notification of any changes or modifications that may be pertinent.

228

Exhibit “A”

Page 3 of 3 ends

C. GRANT WRITING

1. Work with City staff to facilitate meetings with City departments to assess the validity of current funding priority areas, identify changes in funding priority areas, and identify new priority areas for possible funding.

2. Conduct research to identify grant resources including, but not limited to, federal, state, foundation, agencies and organizations that support the City’s funding needs and priorities (emphasizing grants which require no “matching” funds), including, but not limited to:
a. Infrastructure and park development/maintenance
b. Public safety
c. Economic development
d. Housing and housing programs
e. Technology
f. Parks and recreation programs
g. Multimodal transportation
h. Workforce development
i. Records management
j. Senior, family, and youth programs
k. Energy, efficiency and sustainability
l. Historic building maintenance and reuse
m. Acquisition of open space

3. Provide general grant proposal writing services associated with the completion of grant applications on behalf of the City, including the preparation of funding abstracts and production and submittal of applications to funding sources. Provide a copy of each grant applica tion package submitted for funding, in its entirety, to the City.

4. Submit monthly reports to the City summarizing the amount of time expended, describe activities undertaken during the previous month, and status of those activities.

5. Manage grants awarded to the City as needed.

D. CONTRACT TERM
Unless otherwise terminated pursuant to Section 19 of the agreement, this agreement shall remain in full force and effect until Septem ber 26, 2025 and shall not exceed the Contractor's total compensation as further detailed in Section 2 of the agreement. 229
Townsend Public Affairs Activity Report
Townsend Public Affairs has been working with the City of Orange since October of 2022. Since then, TPA has been focused on providing legislative advocacy, identifying priority projects of the City to position for state and federal funding through competitive grants, the state budget process, and community project funding through the federal appropriations process. Since working with the City, TPA is proud to have secured$3,189,950 million with over$3 million in additional funds pending. The following are highlights of the grant applications and legislative directed spending applications.

Funding Program Project Amount Outcome
Department of
Energy – Efficiency
Block Grant
Purchase of ZEV’s
for City Fleet
$189,950 Awarded
State Budget Homeless Resource
Center
$3 Million Awarded
Federal Community
Project
Public Safety
Equipment – Axon
Software
$1,100,000 Pending
Sponsors – Rep. Kim
and Senator Padilla
Federal Community
Project
West Orange Park $2,000,000 Pending
Sponsors: Rep.

Correa
230
Agenda Item
City Council
Item #: 7.2. 9/26/2023 File #: 23-0600
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director

1. SUBJECT
Consideration of a 50-Year Lease Agreement with Orange County Flood Control District for West Orange Park.

2. SUMMARY
Underscoring the City’sefforts to expand parks and open space as well as to complement newer developments in west Orange, a 2.38-acre site managed by Orange County Flood Control District was identified for passive park uses. A proposed 50-year lease agreement between Orange County Flood Control District and the City of Orange for park development and management is presented for City Council consideration.

3. RECOMMENDED ACTION
Approve a 50-Year Lease Agreement between Orange County Flood Control District and the City of Orange, allowing the City to develop and operate a passive park on approximately 2.38 acres of land owned by Orange County Flood Control District.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and Promote Quality of Life in the Community a. Renovate, maintain, develop, and/or expand public use places and spaces.

6. DISCUSSION AND BACKGROUND
To expand the City of Orange’sparks/open space and to augment existing recreational amenities, City staff evaluated park development options in proximity and accessible to west Orange residents.

As a result of these efforts, an approximately 2.38-acre site was identified (“Site”).Owned by Orange County Flood Control District (“OCFCD”),the Site is located west adjacent to the Santa Ana River, north and east of the Interstate 5 Freeway, and south of West Chapman Avenue.

A park feasibility study and a conceptual design was completed by Agora Partners and funded by BLDG Partners (project sponsor of Allure Apartments). The conceptual design includes features such as exercise equipment, passive areas, a dog amenity, kids play feature, landscape, and seating. The City of Orange Printed on 9/21/2023Page 1 of 2
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Item #: 7.2. 9/26/2023 File #: 23-0600
as exercise equipment, passive areas, a dog amenity, kids play feature, landscape, and seating. The proximity to the existing Santa Ana River bike trail also presents an opportunity to create interface features between the park and trail. In addition, the park will serve residents in existing developments, and complement future development(s) west of the Site.

While the Site development process may entail multiple steps, a critical milestone is to secure the County of Orange’sapproval to utilize the Site for passive park uses. The County of Orange has been in ongoing communication with City staff, culminating in the proposed long-term lease agreement for City Council consideration. Provided below are key tenants in the proposed lease agreement:
· 50-Year Lease Agreement.
· Site leased to City on a rent-free basis.
· Passive Park uses, including walkways, monumentation/trail signage, and landscape improvements.
· No restroom facilities are permitted.
· City cannot collect park entry fees.
· City must manage and maintain the premises consistent with other parks within the City of Orange and will apply/enforce City of Orange park rules. · OCFCD reserves the right to enter the Site for flood control operation purposes.

In consideration of the above, it is recommended the City Council approve a 50-year lease Agreement with OCFCD and authorize the Mayor and City Clerk to execute the agreement on behalf of the City of Orange. Should the City Council approve the proposed lease agreement, City staff will continue to work on Site development funding opportunities and next steps.

7. ATTACHMENTS
· Proposed OCFCD Lease Agreement
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Agenda Item
City Council
Item #: 7.1. 9/26/2023 File #: 23-0600
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director

1. SUBJECT
Consideration of a 50-Year Lease Agreement with Orange County Flood Control District for West Orange Park.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and Promote Quality of Life in the Community a. Renovate, maintain, develop, and/or expand public use places and spaces.

A park feasibility study and a conceptual design was completed by Agora Partners and funded by BLDG Partners (project sponsor of Allure Apartments). The conceptual design includes features such as exercise equipment, passive areas, a dog amenity, kids play feature, landscape, and seating. The City of Orange Printed on 9/21/2023Page 1 of 2
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Item #: 7.1. 9/26/2023 File #: 23-0600
as exercise equipment, passive areas, a dog amenity, kids play feature, landscape, and seating. The proximity to the existing Santa Ana River bike trail also presents an opportunity to create interface features between the park and trail. In addition, the park will serve residents in existing developments, and complement future development(s) west of the Site.

7. ATTACHMENTS
· Proposed OCFCD Lease Agreement
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234

1 OCFCD – SART
Santa Ana River (E01-1116.01)
City of Orange- West Orange Park

MA# 080-_____

LEASE AGREEMENT

THIS LEASE (“ Lease”) is made ________, 2023 (" Effective Date "), by and between the ORANGE COUNTY FLOOD CONTROL DISTRICT, a body corporate and politic, (hereinafter referred to as "DISTRICT") and the CITY OF ORANGE, a municipal corporation (hereinafter referred to as "TENANT") without regard to number and gender. DISTRICT and TENANT may sometimes hereinafter individually be referred to as “Party,” or jointly as “Parties.”

RECITALS
A. DISTRICT owns an approximately 8.9 -acre parcel of land identified as Parcel E01 -1116.01 (the “Parcel”) the boundaries of which are approximately Chapman Avenue to the north, the overpass of the Santa Ana Freeway to the south, the border of the Santa Ana River Flood Channel (“Channel”) to the east, and the Santa Ana River Trail (“SART”) to the west in the City of Orange. The Parcel serves DISTRICT’s operation and maintenance in accordance with the Orange County Flood Control Act set forth in California uncodified Water Code, Act 5682, section 2, also referred to as Water Code App. Sections 36-1 et seq, also referred to as Chapter 723 of the State of California Statutes of 1927 (“Flood Control Act”).

B. In conformance with the City of Orange’s General Plan, TENANT is proposing to develop and operate on a portion of the Parcel a passive park on approximately 2.389-acres along the western boundary of the Parcel, with a parking area, walkways, monumentation/trail signage, and landscape improvements. No restroom facilities will be permitted on the Parcel.

C. DISTRICT and TENANT desire to enter this Lease to accommodate the City’s passive park development and operation on a portion of DISTRICT’s Parcel, provided it will not interfere with DISTRICT’s purposes and use of the land.

NOW, THEREFORE, in consideration of the foregoing Recitals and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

1. DEFINITIONS (PMA2.1 S)
The terms described hereinabove in the Recitals are incorporated herein by this reference and the following words in this Lease have the significance attached to them in this clause, unless otherwise apparent from context:
"Board of Supervisors" means the Board of Supervisors of the County of Orange acting as the governing board of the Orange County Flood Control District.
"Chief Real Estate Officer" means the Chief Real Estate Officer, County of Orange, or designee. "County" means the County of Orange, a political subdivision of the State of California. “Director of OCPW” means the Director, OC Public Works, County of Orange, or designee. “Tenant Improvements” means and includes all buildings (including above -ground and below ground portions thereof, and all foundations and supports), building systems and equipment (such as HVAC, electrical and plumbing equipment), physical structures, fixtures, hardscape, pav ing, curbs, gutters, sidewalks, fences, landscaping and all other improvements of any type or nature whatsoever now or hereafter made or constructed on the Premises by Tenant. Under no circumstances shall the Tenant Improvements include a restroom or a structure for human habitation. 235

2 OCFCD – SART
Santa Ana River (E01-1116.01)
City of Orange- West Orange Park

2. PREMISES (PMA3.1 N)
Commencing with the Effective Date of this Lease, DISTRICT leases to TENANT a portion of the Parcel, as more particularly described in Exhibit A and depicted in Exhibit B , which are attached hereto, incorporated by this reference, and hereinafter referred to as the "Premises."

3. TERMINATION OF PRIOR AGREEMENTS (PMA4.1 S) – Intentionally omitted

4. LIMITATION OF THE LEASEHOLD & DISTRICT’S RESERVED RIGHTS (PMA5.1 S) This Lease and the rights and privileges granted TENANT to use the Premises are subject to all easements, covenants, conditions, restrictions, and exceptions of record, or apparent. Nothing contained in this Lease or in any document related hereto shall be construed to imply the conveyance to TENANT of rights in the Premises which exceed those owned by DISTRICT, or any representation or warranty, either express or implied, relating to the nature or condition of the Premises or DISTRICT's interest therein. TENANT acknowledges that TENANT has conducted a complete and adequate investigation of the Premises and that TENANT has accepted the Premises in its "where is-as is" condition.

DISTRICT reserves the right for DISTRICT and DISTRICT ’s authorized representatives to enter the Premises and perform work or take other actions in accordance with the Flood Control Act, including but not limited to improving, construction, reconstructing, rehabilitating, operating, and maintaining the Channel and/or SART. At any reasonable time, DISTRICT may also enter the Premises to (i) determine whether TENANT is complying with TENANT’s obligations hereunder, or (ii) enforce any rights held by DISTRICT in said Premises. DISTRICT shall take care not to unreasonably interfere with TENANT’s use of the Premises in exercising its rights under this Section.

Further, DISTRICT’s reserved rights to enter onto, over, or under the Premises and participate fully in any flood control operations related thereto shall be superior to TENANT’s leasehold rights contained herein.

DISTRICT further reserves a right to utilize a portion of the Parcel and Premises for revenue generation in its sole and absolute discretion. TENANT agrees to cooperate with DISTRICT to accommodate any future DISTRICT desire to facilitate revenue generation on this Parcel and Premises, provided TENANT does not incur costs related to such DISTRICT endeavors and TENANT operation of a passive park is allowed to continue on the remaining portion of the Parcel rent-free. The Parties agree to amend this Lease as necessary to reflect the area utilized by the Tenant as a passive park.

5. USE (PMB1.2 N)
TENANT’s use of the Premises shall be limited to the operation of a passive public recreational park, including access to and from the Premises for its use, maintenance, repair, and upkeep related thereto. The Premises and its amenities and TENANT Improvements shall be made available for use by and at no cost to the public, including all Orange County residents. These Tenant Improvements and related costs shall be at the sole expense of TENANT. Notwithstanding the above, there shall be no commercial use of the Premises at any time nor any cultivation or distribution of marijuana allowed thereon.

TENANT may not collect money for use of the Premises. Under no circumstances shall an entrance fee or fee be charged by TENANT to those who use the Premises. Reservations for use of Premises are not permitted. Premises are to remain open to the public during normal operating hours as determined by TENANT. TENANT shall ensure Premises are not utilized for habitation purposes and shall be responsible for taking action to prevent encampments and overnight occupancy.

TENANT agrees not to conduct or permit to be conducted any public or private nuisance in, on, or from the Premises, or to commit or permit to be committed any waste, including, but not limited to Hazardous Materials (defined in Section 19), within the Premises, nor shall TENANT engage in or authorize activities 236

3 OCFCD – SART
Santa Ana River (E01-1116.01)
City of Orange- West Orange Park

within or upon the Premises which are incompatible or interfere with DISTRICT’s flood control activities in, on or about the Premises. TENANT’s use of the Premises for any other purpose without DISTRICT’s prior written approval shall cause this Lease and all TENANT’s rights hereunder to immediately terminate upon written notice from Chief Real Estate Officer, and without further action on the part of DISTRICT.

NO ALCOHOL, TOBACCO, OR MARIJUANA PRODUCTS SHALL BE SOLD FROM OR CONSUMED WITHIN THE PREMISES.

6. TERM (PMB2.1 N)
The term of this Lease shall be fifty (50) years, commencing on the Effective Date of this Lease.

7. RELOCATION OR TERMINATION BY DISTRICT
TENANT acknowledges that the Premises lie on, over or about a portion of the Channel and TENANT further acknowledges that the primary purpose of the Premises is for flood control purposes per the Flood Control Act. Upon determination by the Chief Real Estate Officer, in the exercise of his/her reasonable discretion, that the Tenant Improvements or uses interfere with DISTRICT’s use of the area or impede a critically important public infrastructure project, TENANT shall, following receipt of written request , relocate or remove the Tenant Improvements pursuant to this Lease (“Notice to Relocate”) within 5 days of DISTRICT’s written request.

DISTRICT shall, upon written request of TENANT, have the Chief Real Estate Officer or designee meet and confer with TENANT to determine whether the Tenant Improvements can remain in place or whether modifications to the Tenant Improvements may be made to avoid the need for relocation or removal. To the extent TENANT cannot mitigate interference with DISTRICT’s operations to the reasonable satisfaction of the Chief Real Estate Officer or Director of OCPW , the Chief Real Estate Officer may terminate this Lease one hundred (100) days from the date of the Notice to Relocate or as such relocation date may be extended. TENANT agrees this Lease does not create an obligation for DISTRICT to relocate TENANT or find a replacement location for providing a passive park at no cost to the public.

8. RENT (N)
In consideration of TENANT maintaining the Premises to a standard which complies with the Flood Control Act, at no cost to DISTRICT, and performing operations without charging a fee to the public, the Premises are leased to TENANT on a rent-free basis.

9. CONSTRUCTION AND MAINTENANCE (PMES2.2N)
Should TENANT plan to build, erect, install, or construct any Tenant Improvements or conduct any construction, landscaping, maintenance or excavation activities or otherwise disturb the surface of the Premises, TENANT agrees to notify Chief Real Estate Officer in writing sixty (60) days in advance of such planned activities, obtain Chief Real Estate Officer’s written approval of all related plans, and obtain a permit through Orange County Property Permits (“CPP”) department with payment of normal processing fees therefor and shall provide evidence of adequate insurance coverage prior to commencement of any construction of the facilities in, on, under or about the Premises; and upon completion of any such construction, TENANT shall immediately notify Chief Real Estate Officer in writing of such completion.

DISTRICT approval of TENANT’s construction, landscaping and/or maintenance plans shall not be deemed approval from the standpoint of structural safety, suitability for purpose or conformance with building or other codes or other governmental requirements. DISTRIC T is not responsible for permitting of any construction and/or maintenance, design, environmental clearances, assumptions, or accuracy of TENANT’s construction and/or maintenance plans. DISTRICT will rely on the professional expertise of the Engineer of Record when approving TENANT’s construction and/or maintenance plans. The Engineer 237

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of Record is defined as the licensed professional engineer who is in responsible charge for the preparation, signing, dating, sealing and issuing of the engineering documents supporting TENANT’s construction and/or maintenance plans.

Prior DISTRICT approval shall not be necessary in any emergency situation or in conducting routine maintenance activities, which do not involve disturbance of the surface area. However, TENANT shall notify Orange County Operations and Maintenance at 714 -955-0200 w ithin five (5) business days of commencing any emergency repair work and, if so required by Chief Real Estate Officer, TENANT shall secure a permit through CPP for the purpose of documenting such emergency work.

TENANT acknowledges the Premises are within areas which may be designated as environmentally sensitive or in which cutting roots and other activities may require regulatory agency approval ( e.g., approvals or permits from U.S. Army Corps of Engineers, California Department of Fish and Wildlife, and California Regional Water Quality Control Board). TENANT shall obtain and remain in compliance with all regulations and laws pertaining to its activities under this LEASE and shall make every effort to ensure any cutting of roots or like activities, and any excavation shall be implemented in such a manner as will cause the least injury to the surface of the ground and any improvements and/or landscaping around such excavation, and that the earth so removed shall be rep laced and the surface of the ground and any improvements and/or landscaping around such excavation, damaged shall be promptly restored by TENANT at its expense to the same condition as existed prior to excavation, to Chief Real Estate Officer’s satisfaction.

TENANT shall, at no cost to DISTRICT, maintain in good repair and in safe condition all facilities constructed, used or placed within the Premises by or on behalf of TENANT pursuant to this Lease.

10. MECHANICS LIENS OR STOP-NOTICES (PMD4.1 S)
In addition to the responsibilities described in Section 21 (Indemnification) below, TENANT shall at all times indemnify, defend with counsel approved in writing by DISTRICT, and save DISTRICT and County harmless from all claims, losses, demands, damages, costs, expenses, or liabilities arising from mechanics liens or stop notices in connection with the use, construction, repair, alteration, or installation of structures, improvements, equipment, or facilities by TENANT over, across, within, upon, or under the Premises, and from the cost of defending against such claims, including attorney fees and costs.

In the event a lien or stop -notice is imposed upon the Premises as a result of such construction, repair, alteration, or installation, TENANT shall either:

A. Record a valid Release of Lien, or
B. Procure and record a bond in accordance with Section 8424 or 9364 of the California Civil Code, which frees the Premises from the claim of the lien or stop-notice and from any action brought to foreclose the lien.

Should TENANT fail to accomplish one of the two actions above within fifteen (15) days after the file of such a lien or stop-notice, this Lease shall be in default and shall be subject to immediate termination. Such termination, however, shall not relieve TENANT from any of its obligations set forth in this Section.

11. "AS-BUILT" PLANS (PMD5.2 S)
Within sixty ( 60) days following completion of any substantial improvement within the Premises, TENANT shall furnish Chief Real Estate Officer a complete set of reproducible Mylars and two sets of prints of "As-Built" plans. TENANT shall also furnish the Chief Real Estate Officer with all CAD data stored on compact disc ROM as "read only" files which shall be in one of the following software formats:

AutoCAD DXF format; Microsoft Windows based system.
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Other (generic) DXF format; Microsoft Windows based system.

All CAD files are also to be converted to Acrobat Reader (*.pdf format), which shall be included on CD ROM. No other formats are acceptable. Chief Real Estate Officer reserves the right to reject CAD files delivered in any other formats not specified above.

12. CONSTRUCTION AND/OR ALTERATION BY DISTRICT (N)
Except in an emergency found to exist by the Chief Real Estate Officer or the Director of OCPW , if DISTRICT intends to disturb the surface or subsurface of the Premises, then Chief Real Estate Officer shall give TENANT not less than thirty (30) calendar days' prior written notice specifying the date of such entry, the duration thereof, and the nature of the work to be performed by DISTRICT.

In the event DISTRICT finds it necessary to enter on and disturb the surface or subsurface of the Premises in order to maintain, repair, reconstruct, replace, improve or enlarge DISTRICT ’s Channel or any flood control facilities (e.g., the Orange Reservoir or Impoundment Area), DISTRICT’s only responsibility under this Lease shall be to backfill the affected portion of the Premises with compacted earth to the grade of the surrounding property following completion of DISTRICT's activity. DISTRICT shall have no responsibility or liability under this Lease for restoring improvements owned, constructed, placed or permitted by TENANT within, upon, under or above the Premises, including but not limited to the Tenant Improvements as defined in Section 13 below. DISTRICT shall endeavor to minimize any damage, disruption or extirpation of any improvements during such DISTRICT activities.

13. OWNERSHIP OF TENANT IMPROVEMENTS (PMD6.1 N)
All Tenant Improvements must, upon completion, be free and clear of all liens, claims, or liability for labor or materials and excepting trade fixtures shall, at DISTRICT’s option, become the property of DISTRICT at the expiration or sooner termination of this Lease. DISTRICT r etains the right to require TENANT, at TENANT’s cost, to remove any or all of Tenant Improvements located within, upon, under, or above the Premises at the expiration or termination hereof. TENANT agrees that should DISTRICT require removal of said Tenant Improvements , TENANT shall: (i) remove the Tenant Improvements , including any underground obstructions, at TENANT’s cost within sixty (60) days of being notified by DISTRICT ; (ii) leave the Premises in a level, safe, clean, sanitary and neat condition free of weeds and debris; (iii) remove any underground obstructions ; (iv) leave any excavated area compacted to ninety percent (90%) compaction; and (v) replace any erosion control landscaping that may have been destroyed or removed as the result of any of the aforesaid activities.14. CONDEMNATION If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively, “Condemnation”), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. TENANT hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure, or any similar or successor Laws.

15. UTILITIES & TAXES (PME1.1 N)
A. Utilities. TENANT shall construct, or cause to be constructed, all necessary utility facilities to be used by TENANT within the Premises in accordance with the terms of this Lease and shall be responsible for and pay, prior to the delinquency date, all charges, assessments for utilities used by TENANT on the Premises.

B. Taxes. During the Term, TENANT shall pay directly to the taxing authorities all Taxes (as herein defined) at least ten (10) days prior to delinquency thereof. For purposes hereof, “Taxes” shall include any form of assessment, license fee, license tax, business license fee, commercial rental tax, levy, penalty, sewer use fee, real property tax, charge, possessory interest tax, tax or similar imposition (other than inheritance or estate taxes), imposed by any authority having the direct or indirect power to tax, including any city, county, state 239

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or federal government, or any school, agricultural, lighting, drainage, flood control, water pollution control, public transit or other special district thereof, as against any legal or equitable interest of DISTRICT in the Premises or any payments in lieu of taxes required to be made by DISTRICT, including, but not limited to, the following:
(1) Any assessment, tax, fee, levy, improvement district tax, charge or similar imposition in substitution, partially or totally, of any assessment, tax, fee, levy, charge or similar imposition previously included within the definition of Taxes. It is the intention of TENANT and DISTRICT that all such new and increased assessments, taxes, fees, levies, charges and similar impositions be included within the definition of “Taxes” for the purpose of this Lease.
(2) Any assessment, tax, fee, levy, charge or similar imposition allocable to or measured by the area of the Premises or the rent payable hereunder, including, without limitation, any gross income tax or excise tax levied by the city, county, state or federal government, or any political subdivision thereof, with respect to the receipt of such rent, or upon or with respect to the possession, leasing, operating, management, maintenance, alteration, repair, use or occupancy by TENANT of the Premises, or any portion thereof; (3) Any assessment, tax, fee, levy, charge or similar imposition upon this transaction or any document to which TENANT is a party, creating or transferring an interest or an estate in the Premises, including any possessory interest tax levied on TENANT’s interest under this Lease;
(4) Any assessment, tax, fee, levy, charge or similar imposition by any governmental agency related to any transportation plan, fund or system instituted within the geographic area of which the Premises are a part.

The definition of “Taxes,” including any additional tax the nature of which was previously included within the definition of Taxes, shall include any increases in such taxes, levies, charges or assessments occasioned by increases in tax rates or increases in assessed valuations, whether occurring as a result of a sale or otherwise.

16. MAINTENANCE OBLIGATIONS OF TENANT (PME2.1 N)
TENANT agrees to maintain the Premises and all TENANT Improvements thereon in good order and repair, and to keep said Premises in a neat, clean, orderly, safe, and sanitary condition to the satisfaction of Chief Real Estate Officer, and in compliance with all applicable laws. TENANT shall keep all Tenant Improvements free from graffiti at its sole cost. TENANT further agrees to provide approved containers for trash and garbage, which shall be emptied by TENANT at frequent and regular intervals, and to keep the Premises free and clear of rubbish, litter, and waste to prevent the accumulation of any refuse or waste materials which might constitute a fire hazard or a public or private nuisance. TENANT agrees to manage and maintain the premises consistent with other parks within the City of Orange, and as such will follow City of Orange park rules. control trespassing consistent with the County’s current park management plan.

TENANT shall ensure Premises are not utilized for habitation purposes and shall be responsible for taking action to prevent encampments and overnight occupancy.

TENANT shall designate in writing to Chief Real Estate Officer a representative who shall be responsible for the day-to-day operation and level of maintenance, cleanliness, and general order of the Premises.

Chief Real Estate Officer shall have the right to enter upon and inspect the Premises anytime for cleanliness and safety and to confirm compliance with terms and conditions of this Lease. If TENANT fails to maintain or make repairs or replacements as requ ired herein, Chief Real Estate Officer shall notify TENANT in writing of said failure. Should TENANT fail to correct the situation within three (3) days after receipt of 240

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written notice, Chief Real Estate Officer may make the necessary correction or cause it to be made and the cost thereof, including but not limited to the cost of labor, materials, equipment, and an administrative fee equal to fifteen percent (15%) of the sum of such items, shall be paid by TENANT within ten (10) days of receipt of a statement of said cost from Chief Real Estate Officer. Chief Real Estate Officer may, at Chief Real Estate Officer’s option, choose other remedies available herein, or by law. Failure of TENANT to properly maintain and repair the Premises shall constitute a material breach of the terms of this Lease, upon which the Chief Real Estate Officer may immediately suspend or terminate this Lease.

17. INSURANCE (AML10.1 N)
TENANT agrees to purchase all required insurance at TENANT’s expense and to deposit with the Chief Real Estate Officer certificates of insurance, including all endorsements required herein, or valid evidence of self-insurance necessary to satisfy DISTRICT that the insurance provisions of this Lease have been complied with and to keep such insurance coverage and the evidence, certificates and endorsements therefore on deposit with DISTRICT during the entire term of this Lease.

TENANT agrees that TENANT shall not operate on the Premises at any time the required insurance is not in full force and effect as evidenced by a certificate of insurance and necessary endorsements or, in the interim, an official binder being in the possession of Chief Real Estate Officer. In no cases shall assurances by TENANT, its employees, agents, including any insurance agent, be construed as adequate evidence of insurance. Chief Real Estate Officer will only accept valid certificates of insurance and endorsements, or in the interim, an insurance binder as adequate evidence of insurance. TENANT also agrees that upon cancellation, termination, or expiration of TENANT's insurance, DISTRICT may take whatever steps are necessary to interrupt any operation from or on the Premises until such time as the Chief Real Estate Officer reinstates the Lease.

If TENANT fails to provide Chief Real Estate Officer with a valid certificate of insurance and endorsements, or binder at any time during the term of the Lease, DISTRICT and TENANT agree that this shall constitute a material breach of the Lease. Whether or not a notice of default has or has not been sent to TENANT, said material breach shall permit DISTRICT to take whatever steps necessary to interrupt any operation from or on the Premises, and to prevent any persons, including, but not limited to, members of the general public, and TENANT's employees and agents, from entering the Premises until such time as Chief Real Estate Officer is provided with adequate evidence of insurance required herein. TENANT further agrees to hold DISTRICT and County, their ele cted and appointed officials, officers, agents and employees when acting within the scope of their appointment or employment, harmless for any damages resulting from such interruption of business and possession, including, but not limited to, damages resulting from any loss of income or business resulting from DISTRICT's action.

TENANT may occupy the Premises only upon providing to DISTRICT the required insurance stated herein and maintain such insurance for the entire term of this Lease. DISTRICT reserves the right to terminate this Lease at any time TENANT’s insurance is cancel ed or terminated and not reinstated within ten (10) days of said cancellation or termination. TENANT shall pay DISTRICT a fee of One Thousand Five Hundred Dollars ($1,500) for processing the reinstatement of the Lease. TENANT shall provide to DISTRICT immediate notice of said insurance cancellation or termination.

All contractors performing work on behalf of TENANT pursuant to this Lease shall obtain insurance subject to the same terms and conditions as set forth herein for TENANT. TENANT shall not allow contractors or subcontractors to work if contractors have les s than the level of coverage required by DISTRICT from TENANT under this Lease. It is the obligation of TENANT to provide written notice of the insurance requirements to every contractor and to receive proof of insurance prior to allowing any contractor to begin 241

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work within the Premises. Such proof of insurance must be maintained by TENANT through the entirety of this Lease and be available for inspection by a DISTRICT representative at any reasonable time.

All self-insured retentions (SIRs) shall be clearly stated on the Certificate of Insurance. If TENANT has an SIR, TENANT, in addition to, and without limitation of, any other indemnity provision(s) in this Lease, agrees to all of the following:
1) In addition to the duty to indemnify and hold DISTRICT harmless against any and all liability, claim, demand or suit resulting from TENANT’s, its agents, employee’s or subcontractor’s performance of this Agreement, TENANT shall defend DISTRICT at its sole cost and expense with counsel approved by Board of Supervisors against same; and 2) TENANT’s duty to defend, as stated above, shall be absolute and irrespective of any duty to indemnify or hold harmless; and
3) The provisions of California Civil Code Section 2860 shall apply to any and all actions to which the duty to defend stated above applies, and TENANT’s SIR provision shall be interpreted as though TENANT was an insurer and DISTRICT was the insured.

Qualified Insurer
The policy or policies of insurance must be issued by an insurer with a minimum rating of A- (Secure A.M.

Best's Rating) and VIII (Financial Size Category as determined by the most current edition of the Best's Key Rating Guide/Property-Casualty/United States or ambest.com). It is preferred, but not mandatory, that the insurer be licensed to do business in the state of California (California Admitted Carrier).

If the insurance carrier does not have an A.M. Best Rating of A-/VIII, the CEO/Office of Risk Management retains the right to approve or reject a carrier after a review of the company's performance and financial ratings.

The policy or policies of insurance maintained by TENANT shall provide the minimum limits and coverage as set forth below:

Coverages Minimum Limits
Commercial General Liability $1,000,000 per occurrence $2,000,000 aggregate
Automobile Liability including coverage for
owned, non-owned and hired vehicles
$1,000,000 limit per occurrence
Workers' Compensation Statutory
Employers' Liability Insurance $1,000,000 per occurrence 242

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Coverages Minimum Limits
Commercial Property Insurance on an “All
Risk” or “Special Causes of Loss” basis
covering all, contents and any tenant
improvements including Business
Interruption/Loss of Rents with a 12 month
limit.
100% of the Replacement Cost Value and no
coinsurance provision.

Required Coverage Forms
The Commercial General Liability coverage shall be written on Insurance Services Office (ISO) form CG 00 01, or a substitute form providing liability coverage at least as broad.

The Business Auto Liability coverage shall be written on ISO form CA 00 01, CA 00 05, CA 00 12, CA 00 20, or a substitute form providing liability coverage as broad.

Required Endorsements
The Commercial General Liability policy shall contain the following endorsements, which shall accompany the Certificate of insurance:
1) An Additional Insured endorsement using ISO form CG 20 26 04 13 or a form at least as broad naming DISTRICT and the County of Orange, its elected and appointed officials, officers, employees, agents as Additional Insureds. Blanket coverage may also be provided which will state words to the effect of - “As Required By Written Agreement.”
2) A primary non-contributing endorsement using ISO form CG 20 01 04 13, or a form at least as broad, evidencing that TENANT’s insurance is primary and any insurance or self-insurance maintained by DISTRICT or the County of Orange shall be excess and non-contributing.

The Workers’ Compensation policy shall contain a waiver of subrogation endorsement waiving all rights of subrogation against DISTRICT and the County of Orange, its elected and appointed officials, officers, agents and employees. Blanket coverage may also be provided which will state words to the effect of – “As Required By Written Agreement.”
All insurance policies required by this Lease shall waive all rights of subrogation against DISTRICT and the County of Orange, its elected and appointed officials, officers, agents and employees when acting within the scope of their appointment or employment.

The Commercial Property policy shall contain a Loss Payee endorsement naming the County of Orange as respects DISTRICT’s or the County’s financial interest when applicable.

The Commercial General Liability policy shall contain a severability of interests clause, also known as a “separation of insureds” clause (standard in the ISO CG 001 policy).

Insurance certificates should be forwarded to DISTRICT address provided in Clause 22 (NOTICES) below or to an address provided by Chief Real Estate Officer. TENANT has ten (10) business days to provide adequate evidence of insurance or this Lease may be cancelled.

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DISTRICT expressly retains the right to require TENANT to increase or decrease insurance of any of the above insurance types throughout the term of this Lease. Any increase or decrease in insurance will be as deemed by County of Orange Risk Manager as appropriate to adequately protect DISTRICT.

Chief Real Estate Officer shall notify TENANT in writing of changes in the insurance requirements. If TENANT does not deposit copies of acceptable certificates of insurance and endorsements with the Chief Real Estate Officer incorporating such changes within thirty (30) days of receipt of such notice, this Lease may be in breach without further notice to TENANT, and DISTRICT shall be entitled to all legal remedies.

The procuring of such required policy or policies of insurance shall not be construed to limit TENANT's liability hereunder nor to fulfill the indemnification provisions and requirements of this Lease, nor in any way to reduce the policy coverage and limits available from the insurer.

18. ASSIGNING, SUBLETTING, AND ENCUMBERING PROHIBITED (PME7.3S) Any mortgage, pledge, hypothecation, encumbrance, transfer, sublease, sublease amendment, or assignment (hereinafter in this clause referred to collectively as "Encumbrance") of TENANT's interest in the Premises, or any part or portion thereof, is prohibited. Any attempted Encumbrance shall be null and void and shall confer no right, title, or interest in or to this Lease.

19. HAZARDOUS MATERIALS (PMF9.1 S)
A. Definition of Hazardous Materials . For purposes of this Lease, the term " Hazardous Material" or "Hazardous Materials" shall mean any hazardous or toxic substance, material, product, byproduct, or waste which is or shall become regulated by any governmental entity, including, without limitation, DISTRICT, acting in its governmental capacity, the State of California, or the United States government.

B. Use of Hazardous Materials. TENANT or TENANT ’s employees, agents, independent contractors or invitees (collectively "Tenant Parties") shall not cause or permit any Hazardous Materials to be brought upon, stored, kept, used, generated, released into the environment or disposed of on, under, over, from or about the Premises (which for purposes of this clause shall include the subsurface soil and ground water). Notwithstanding the foregoing, TENANT may, subject to Chief Real Estate Officer's prior written permission, keep on or about the Premises small quantities of Hazardous Materials that are used in the ordinary, customary, and lawful cleaning of and operations on the Premises. Said permitted Hazardous Materials shall be stored in a safe location and shall be disposed of in a manner provided by law.

C. TENANT Obligations. If the presence of any Hazardous Materials on, under, over, or about the Premises caused or permitted by TENANT or by any of the Tenant Parties results in (i) injury to any person, (ii) injury to or contamination of the Premises (or a portion thereof), or (iii) injury to or contamination of any real or personal property wherever situated, TENANT shall immediately notify the Chief Real Estate Officer of said damages, and/or contamination and/or injuries, and TENANT, at its sole cost and expense, shall promptly take all actions necessary or appropriate to return the Premises and/or any real or personal property wherever situated to the condition existing prior to the introduction of such Hazardous Materials and to remedy or repair any such injury, damage or contamination. Without limiting any other rights or remedies of DISTRICT under this Lease, TENANT shall pay the cost of any cleanup or remedial work performed in, on, under, over , or about the Premises or any real or personal proper ty wherever situated as required by this Lease or by applicable laws in connection with the removal, disposal, neutralization or other treatment of such Hazardous Materials caused or permitted by TENANT or any of the Tenant Parties. Notwithstanding the foregoing, TENANT shall not take any remedial action in response to the presence, discharge or release, of any Hazardous Materials in, on, under, over, or about the Premises caused or permitted by TENANT or any of the Tenant Parties, or enter into any settle ment agreement, consent decree or other compromise with any governmental or quasi -governmental entity without first 244

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obtaining the prior written consent of DISTRICT. All work performed or caused to be performed by TENANT as provided for above shall be done in good and workmanlike manner and in compliance with plans, specifications, permits, and other requirements for su ch work approved by the Chief Real Estate Officer.

D. Indemnification for Hazardous Materials. To the fullest extent permitted by law, TENANT hereby agrees to indemnify, hold harmless, protect and defend (with counsel approved in writing by DISTRICT) DISTRICT and County, their elected officials, officers, employees, agents, and independent contractors, the Premises, and any owner of real or personal property wherever located, from and against any and all liabilities, losses, damages (including, but not limited to, damages for the loss or restriction of use of rentable or usable space or any amenity of the Premises or damages arising from any adverse impact on marketing and diminution in the value of the Premises, or any real or personal property wherever located), judgments, fines, demands, claims, recover ies, deficiencies, costs and expenses (including, but not limited to, reasonable attorney fees, disbursements and court costs and all other professional or consultant expenses), whether foreseeable or unforeseeable, arising directly or indirectly out of th e presence, use, generation, storage, treatment, on or off -site disposal or transportation of Hazardous Materials on, into, from, under, over or about the Premises by TENANT or any of the Tenant Parties. The foregoing indemnity shall also specifically include the cost of any required or necessary repair, restoration, clean-up or detoxification of the Premises and the preparation of any closure or other required plans.

20. BEST MANAGEMENT PRACTICES (PMF11.2S)
TENANT and all Tenant Parties shall conduct operations and activities under this Lease so as to assure that pollutants do not enter municipal storm drain systems which systems are comprised of, but are not limited to curbs and gutters that are part of the street systems (" Stormwater Drainage System"), and to ensure that pollutants do not directly impact "Receiving Waters" (as used herein, Receiving Waters include, but are not limited to, rivers, creeks, streams, estuaries, lakes, harbors, bays and oceans).

The Santa Ana and San Diego Regional Water Quality Control Boards have issued National Pollutant Discharge Elimination System permits (" Stormwater Permits ") to the County of Orange, and to the Orange County Flood Control District and cities within Orange County, as co -permittees (hereinafter collectively referred to as "County Parties") which regulate the discharge of urban runoff from areas within the County of Orange, including the Premises leased under this Lease. The County Parties have enacted water quality ordinances that prohibit conditions and activities that may result in polluted runoff being discharged into the Stormwater Drainage System.

To assure compliance with the Stormwater Permits and water quality ordinances, the County Parties have developed a Drainage Area Management Plan ( “DAMP”) which includes a Local Implementation Plan (“LIP”) for each jurisdiction that contains Best Management Practices ( “BMP(s)”) that parties using properties within Orange County must adhere to. As used herein, a BMP is defined as a technique, measure, or structural control that is used for a given set of conditions to manage the quantity and improve the quality of stormwater runoff in a cost effective manner. These BMPs are found within the County’s LIP in the form of Model Maintenance Procedures and BMP Fact Sheets (the Model Maintenance Procedures and BMP Fact Sheets contained in the DAMP/LIP shall be referred to hereinafter collectively as "BMP Fact Sheets") and contain pollution prevention and source control techniques to eliminate non-stormwater discharges and minimize the impact of pollutants on stormwater runoff.

BMP Fact Sheets that apply to uses authorized under this Lease include the BMP Fact Sheets that are attached hereto as Exhibit D. These BMP Fact Sheets may be modified during the term of the Lease; and TENANT shall be responsible for the acquisition of any updated BMP Fact sheets in a timely manner.

TENANT and Tenant Parties shall, throughout the term of this Lease, comply with the BMP Fact Sheets as they exist now or are modified, and shall comply with all other requirements of the Stormwater Permits, as they exist at the time this Lease commences or as the Stormwater Permits may be modified. TENANT 245

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agrees to maintain current copies of the BMP Fact Sheets in TENANT’s administrative offices throughout the term of this Lease. The BMPs applicable to uses authorized under this Lease must be performed as described within all applicable BMP Fact Sheets.

TENANT may propose alternative BMPs that meet or exceed the pollution prevention performance of the BMP Fact Sheets. Any such alternative BMPs shall be submitted to the Chief Real Estate Officer through the CPP process for review and approval prior to implementation.

Chief Real Estate Officer may enter the Premises and/or review TENANT’s records at any time to assure that activities conducted on the Premises comply with the requirements of this Section. TENANT may be required to implement a self-evaluation program to demonstrate compliance with the requirements of this Section.

21. INDEMNIFICATION AND HOLD HARMLESS (PMGE 10.2N)
TENANT acknowledges that the Premises may be subject to all hazards associated therewith including, but not limited, to noise, dust, inundation, erosion, settling, overflow and rapid and potentially dangerous increases in the volume of water due to the Premises location by the Channel. TENANT on behalf of itself, its assigns, and successors in interests agrees to assume all risks, financial or otherwise, associated therewith, including but not limited to, destruction of its improvements or facilities, and/ or interruption in or restricted use of or access to the Premises whether temporary or permanent, due to flood conditions, storm runoff, dust, noise, or due to DISTRICT’s use of or operations conducted in, on, over, or about the Premises.

TENANT hereby agrees to indemnify, defend (with counsel approved in writing by DISTRICT), and hold harmless, DISTRICT and the County, their respective elected and appointed officials, officers, agents, employees and contractors against any and all claims, losses, demands, damages, cost, expenses or liability for injury to any persons or property, arising out of the opera tion or maintenance of the Premises, and/or TENANT's exercise of the rights under this Lease including use of the Premises by the general p ublic, except for liability arising out of the active or sole negligence of DISTRICT, its elected and appointed officials, officers, agents, employees or contractors including the cost of defense of any lawsuit arising therefrom. If DISTRICT and/or County is named as co-defendant in a lawsuit in connection with this Lease, TENANT shall notify DISTRICT of such fact and shall represent DISTRICT and/or County in such legal action unless DISTRICT undertakes to represent itself as co-defendant in such legal action, in which event, TENANT shall pay to DISTRICT and County their litigation costs, expenses, and attorney fees. If judgment is entered against DISTRICT and TENANT by a court of competent jurisdiction because of the concurrent active negligence of DISTRICT and TENANT, DISTRICT and TENANT agree that liability will be apportioned as determined by the court. Neither party shall request a jury apportionment. A judgment or other judicial determination regarding DISTRICT's negligence shall not be a condition prec edent to TENANT's obligations stated in this Section.

TENANT acknowledges that it is familiar with the language and provisions of California Civil Code Section 1542 which provides as follows:

A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.

TENANT, being aware of and understanding the terms of Section 1542, hereby waives all benefit of its provisions to the extent described in this Section.

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22. NOTICES (PMF10.1 N)
All notices, documents, correspondence, and communications concerning this Lease shall be addressed as set forth in this Section, or as the Parties may hereafter designate by written notice, and shall be sent through the United States mail, with postage prepaid. Any such mailing shall be deemed served or delivered forty- eight (48) hours after mailing. Each Party may change the address for notices by giving the other Party at least ten (10) calendar days’ prior written notice of the new address.

Notwithstanding the above, either Party may also provide notices, documents, correspondence, or such other communications to the other by personal delivery, or by courier service such as FedEx and, so given, shall be deemed to have been given upon receipt.

To DISTRICT:

Orange County Flood Control District
c/o Chief Real Estate Officer
RE: Riverview Park, Orange
400 W. Civic Center Dr., 5Th fl.

Santa Ana, CA 92702
To TENANT:

City of Orange
c/o Community Services Department
RE: Riverview Park
300 E. Chapman Ave
Orange, CA 92866

23. SURVIVAL OF TERMS, COVENANTS, AND CONDITIONS
The terms, covenants, and conditions set forth in Section 13 (Ownership of Tenant Improvements), Section 19 (Hazardous Materials), and Section 21 (Indemnification & Hold Harmless) shall survive the termination of this Lease.

24. ENTIRE AGREEMENT
This Lease and any related CPP permit shall contain the entire agreement between the Parties with respect to the matters herein and there are no restrictions, promises, warranties or undertakings other than those set forth or referred to herein. Additionally, this Lease supersedes all prior agreemen ts and understandings between the Parties with respect to the Premises that is the subject of this Lease and in the event of a conflict between the terms of this Lease and any other agreement, communication, or other form of communication between DISTRICT and TENANT, the provisions of this Lease shall prevail.

24. GENERAL CONDITIONS
This Lease includes the General Conditions, attached hereto as Exhibit C and by this reference made a part hereof.

25. ATTACHMENTS TO LEASE (AMLC-15.1 S)
This Lease includes the following, which are attached hereto and made a part hereof:

I. Exhibit A – Description of Property
II. Exhibit B – Depiction of Premises
III. Exhibit C – General Conditions
IV. Exhibit D – Best Management Practices

//
//
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IN WITNESS WHEREOF, the Parties have executed this Lease the day and year first above written.

APPROVED AS TO FORM:

Office of the County Counsel
Orange County, California

By: _____________________________
Deputy

Signed and certified that a copy of this
document has been delivered to the Chair
of the Board per G.C. Sec. 25103,
Reso 79-1535

ATTEST:

__________________________________
Robin Stieler
Clerk of the Board of Supervisors
Orange County Flood Control District
Orange County, California

DISTRICT

ORANGE COUNTY FLOOD CONTROL,
a body corporate and politic

By: _________________________________
Chairman of the Board of Supervisors
Orange County, California

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APPROVED AS TO FORM:

City Attorney

By: __________________________
Michael J. Vigliotta
City Attorney

TENANT

CITY OF ORANGE,
a municipal corporation

By: ____________________________
Daniel R. Slater
Mayor

By: ____________________________
Pamela Coleman
City Clerk

√

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Description of Property

250

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251

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Depiction of Premises

252

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253

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Exhibit C
General Conditions

1. TIME (PMG1.1 S)
Time is of the essence of this Lease. Failure to comply with any time requirement of this Lease shall constitute a material breach of this Lease.

2. SIGNS (PMG2.1 S)
TENANT agrees not to construct, maintain, or allow any signs, banners, flags, etc., upon the Premises except as approved by Chief Real Estate Officer. Unapproved signs, banners, flags, etc., may be removed by Chief Real Estate Officer without prior notice to TENANT.

3. PERMITS AND LICENSES (PMG3.1 S)
TENANT shall be required to obtain any and all approvals, permits and/or licenses which may be required in connection with the operation of the Premises as set out herein. No permit, approval, or consent given hereunder by DISTRICT, in its governmental ca pacity, shall affect or limit TENANT ’s obligations hereunder, nor shall any approvals or consents given by DISTRICT, as a party to this Lease, be deemed approval as to compliance or conformance with applicable governmental codes, laws, rules, or regulations.

4. CONTROL OF HOURS, AND PROCEDURES (PMG4.1 N)
TENANT shall at all times maintain a written schedule delineating the operating hours and operating procedures for the Premises. Upon written request, TENANT shall furnish the Chief Real Estate Officer a copy of said schedule and procedures. Should Chief Real Estate Officer, upon review and conference with TENANT, decide any part of said schedules or procedures is not justified with regard to fairly satisfying the needs of the public, TENANT, upon written notice from Chief Real Estate Officer, shall modif y said schedules or procedures to the satisfaction of said Chief Real Estate Officer.

Primary consideration shall be given to the public's benefit in implementing this clause. TENANT agrees that it will operate and manage the facilities offered in a competent and efficient manner at least comparable to other well managed parks of similar type.

TENANT shall at all times retain active, qualified, competent, and experienced personnel to supervise TENANT’s operation and to represent and act for TENANT.

TENANT shall require its attendants and employees to be properly dressed, clean, courteous, efficient, and neat in appearance at all times. TENANT shall not employ any person(s) in or about the Premises who shall use offensive language or act in a loud, boisterous, or otherwise improper manner.

TENANT shall maintain a close check over attendants and employees to insure the maintenance of a high standard of service to the public. TENANT shall replace any employee whose conduct is detrimental to the best interests of the public.

TENANT’s failure to comply with the provisions of this clause shall constitute a serious breach of this Lease and DISTRICT may immediately terminate this Lease. 254

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5. LEASE ORGANIZATION (PMG5.1 S)
The various headings and numbers herein, the grouping of provisions of this Lease into separate clauses and paragraphs, and the organization hereof, are for the purpose of convenience only and shall not be considered otherwise.

6. AMENDMENTS (PMG6.1 S)
This Lease is the sole and only agreement between the parties regarding the subject matter hereof; other agreements, either oral or written, are void. Any changes to this Lease shall be in writing and shall be properly executed by both parties.

7. UNLAWFUL USE (PMG7.1 S)
TENANT agrees no improvements shall be erected, placed upon, operated, nor maintained within the Premises, nor any business conducted or carried on therein or therefrom, in violation of the terms of this Lease, or of any regulation, order of law, statute, bylaw, or ordinance of a governmental agency having jurisdiction.

8. NONDISCRIMINATION (PMG8.1 S)
TENANT agrees not to discriminate against any person or class of persons by reason of sex, age, race, color, creed, physical handicap, or national origin in employment practices and in the activities conducted pursuant to this Lease. TENANT shall make its accommodations and services available to the public on fair and reasonable terms.

9. INSPECTION (PMG9.1 S)
DISTRICT or its authorized representative shall have the right at all reasonable times to inspect the Premises to determine if the provisions of this Lease are being complied with.

10. HOLD HARMLESS (PMGE10.1 S) – Intentionally Omitted

11. TAXES AND ASSESSMENTS (PMG11.1 S)
This Lease may create a possessory interest which is subject to the payment of taxes levied on such interest.

It is understood and agreed that all taxes and assessments (including but not limited to said possessory interest tax) which become due and payab le upon the Premises or upon fixtures, equipment, or other property installed or constructed thereon, shall be the full responsibility of TENANT, and TENANT shall cause said taxes and assessments to be paid promptly.

12. SUCCESSORS IN INTEREST (PMG12.1 S)
Unless otherwise provided in this Lease, the terms, covenants, and conditions contained herein shall apply to and bind the heirs, successors, executors, administrators, and assigns of all the parties hereto, all of whom shall be jointly and severally liable hereunder.

13. CIRCUMSTANCES WHICH EXCUSE PERFORMANCE (PMG13.1 S)
If DISTRICT shall be delayed or prevented from the performance of any act required hereunder by reason of Acts of God, restrictive governmental laws or regulations, or other cause without fault and beyond the control of the party obligated (financial inabi lity excepted), performance of such act shall be excused for 255

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the period of the delay and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay.

14. PARTIAL INVALIDITY (PMG14.1 S)
If any term, covenant, condition, or provision of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby.

15. WAIVER OF RIGHTS (PMG15.1 S)
The failure of DISTRICT or TENANT to insist upon strict performance of any of the terms, covenants, or conditions of this Lease shall not be deemed a waiver of any right or remedy that DISTRICT or TENANT may have, and shall not be deemed a waiver of the ri ght to require strict performance of all the terms, covenants, and conditions of the Lease thereafter, nor a waiver of any remedy for the subsequent breach or default of any term, covenant, or condition of the Lease. Any waiver, in order to be effective, must be signed by the party whose right or remedy is being waived.

16. DEFAULT AND REMEDIES (PMG16.1 S)
A. Events Of Default. The occurrence of any one or more of the following events shall constitute a default hereunder by TENANT:

1. The abandonment or vacation of the Premises by TENANT.

2. The failure or inability by TENANT to observe or perform any of the provisions of this Lease to be observed or performed by TENANT, where such failure shall continue for a period of ten (10) days after written notice thereof from DISTRICT to TENANT; prov ided, however, that any such notice shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure Section 1161 et seq.; provided, further, that if the nature of such failure is such that it can be cured by TENANT but that more than ten (10) days are reasonably required for its cure (for any reason other than financial inability), then TENANT shall not be deemed to be in default if TENANT shall commence such cure within said ten (10) days, and thereafter diligently prosecute such cure to completion.

3. The making by TENANT of any general assignment for the benefit of creditors.

4. A case is commenced by or against TENANT under Chapters 7, 11 or 13 of the Bankruptcy Code, Title 11 of the United States Code as now in force or hereafter amended and if so commenced against TENANT, the same is not dismissed within sixty (60) days of such commencement.

5. The appointment of a trustee or receiver to take possession of substantially all of TENANT’s assets located at the Premises or of TENANT’s interest in this Lease, where such seizure is not discharged within thirty (30) days.

6. TENANT’s convening of a meeting of its creditors or any class thereof for the purpose of effecting a moratorium upon or composition of its debts. In the event of any such default, neither this Lease nor any interests of TENANT in and to the Premises shall become an asset in any of such proceedings and, in any such event and in addition to any and all rights or remedies of DISTRICT hereunder or by law; provided, it shall be lawful for DISTRICT to declare the term hereof ended and to re -enter the Premises and take possession thereof and remove all persons therefrom, and TENANT and its creditors (other than DISTRICT) shall have no further claim thereon or hereunder. 256

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B. Remedies. In the event of any default by TENANT, then, in addition to any other remedies available to DISTRICT at law or in equity, DISTRICT may exercise the following remedies:

1. DISTRICT may terminate this Lease and all rights of TENANT hereunder by giving written notice of such termination to TENANT. In the event that DISTRICT shall so elect to terminate this Lease, then DISTRICT may recover from TENANT:
(a) The worth at the time of award of the unpaid rent and other charges, which had been earned as of the date of the termination hereof;
(b) The worth at the time of award of the amount by which the unpaid rent and other charges which would have been earned after the date of the termination hereof until the time of award exceeds the amount of such rental loss that TENANT proves could have been reasonably avoided; (c) The worth at the time of award of the amount by which the unpaid rent and other charges for the balance of the term hereof after the time of award exceeds the amount of such rental loss that TENANT proves could be reasonably avoided;
(d) Any other amount necessary to compensate DISTRICT for all the detriment proximately caused by TENANT’s failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom, including, but not limited to, the cost of recovering possession of the Premises, expenses of reletting, including necessary repair, renovation and alteration of the Premises, reasonable attorneys' fees, expert witness costs, and any other reasonable costs; and (e) Any other amount which DISTRICT may by law hereafter be permitted to recover from TENANT to compensate DISTRICT for the detriment caused by TENANT’s default.

The term "rent" as used herein shall be deemed to be and to mean the annual rent and all other sums required to be paid by TENANT pursuant to the terms of this Lease. All such sums, other than the annual rent, shall be computed on the basis of the average monthly amount thereof accruing during the 24-month period immediately prior to default, except that if it becomes necessary to compute such rental before such 24-month period has occurred, then such sums shall be computed on the basis of the average mon thly amount during such shorter period. As used in subparagraphs B.1.(a) and B.1.(b) above, the "worth at the time of award" shall be computed by allowing interest at the maximum rate permitted by law. As used in subparagraph B.1.(c) above, the "worth at the time of award" shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%), but not in excess of ten percent (10%) per annum.

2. DISTRICT may c ontinue this Lease in effect without terminating TENANT ’s right to possession even though TENANT has breached this Lease and abandoned the Premises and to enforce all of DISTRICT’s rights and remedies under this Lease, at law or in equity, including the right to recover the rent as it becomes due under this Lease; provided, however, that DISTRICT may at any time thereafter elect to terminate this Lease for such previous breach by no tifying TENANT in writing that TENANT ’s right to possession of the Premises has been terminated.

Nothing in this Section shall be deemed to affect TENANT’s indemnity of DISTRICT liability or liabilities based upon occurrences prior to the termination of this Lease for personal injuries or property damage under the indemnification clause or clauses contained in this Lease.

No delay or omission of DISTRICT to exercise any right or remedy shall be construed as a waiver of such right or remedy or any default by TENANT hereunder. The acceptance by DISTRICT of rent or any other 257

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sums hereunder shall not be (a) a waiver of any preceding breach or default by TENANT of any provision thereof, other than the failure of TENANT to pay the particular rent or sum accepted, regardless of DISTRICT’s knowledge of such preceding breach or default at the time of acceptance of such rent or sum, or (b) waiver of DISTRICT’s right to exercise any remedy available to DISTRICT by virtue of such breach or default. No act or thing done by DISTRICT or DISTRICT ’s agents during the term of this Lease shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept a surrender shall be valid unless in writing and signed by DISTRICT.

Any installment or rent due under this Lease or any other sums not paid to DISTRICT when due (other than interest) shall bear interest at the maximum rate allowed by law from the date such payment is due until paid, provided, however, that the payment of such interest shall not excuse or cure the default.

All covenants and agreements to be performed by TENANT under any of the terms of this Lease shall be performed by TENANT at TENANT ’s sole cost and expenses and without any abatement of rent. If TENANT shall fail to pay any sum of money, other than rent required to be paid by it hereunder or shall fail to perform any other act on its part to be performed hereunder, or to provide any insurance or evidence of insurance to be provided by TENANT, then in addition to any other remedies provided herein, DISTRICT may, but shall not be obligated to do so, and without waiving or releasing TENANT from any obligations of TENANT, make any such payment or perform any such act on TENANT’s part to be made or performed as provided in this Lease or to provide such insurance. Any payment or performance of any act or the provision of any such insurance by DISTRICT on TENANT ’s behalf shall not give rise to any responsibility of DISTRICT to continue making the same or similar payments or performing the same or similar acts. All costs, expenses, and other sums incurred or paid by DISTRICT in connection therewith, together with interest at the maximum rate permitted by law from the date incurred or paid by DISTRICT shall be deemed to be additional rent hereunder and shall be paid by TENANT with and at the same time as the next monthly installment of rent hereunder, and any default therein shall constitute a breach of the covenants and conditions of this Lease.

17. RESERVATIONS TO DISTRICT (PMG18.1 S)
The Premises are accepted as is and where is by TENANT subject to any and all existing easements and Encumbrances. DISTRICT reserves the right to install, lay, construct, maintain, repair, and operate such sanitary sewers, drains, storm water sewers, pipe lines, manholes, and connections; water, oil, and gas pipelines; telephone and telegraph power lines; and the appliances and appurtenances necessary or convenient in connection therewith, in, over, upon, through, across, and along the Premises or any part thereof, and to enter the Premises for any and all such purposes. DISTRICT also reserves the right to grant franchises, easements, rights of way, and permits in, over, upon, through, across, and along any and all portions of the Premises. No right reserved by DISTRICT in this clause shall be so exercised as to interfere unreasonably with TENANT’s operations hereunder or to impair the security of any secured creditor of TENANT.

DISTRICT agrees that rights granted to third parties by reason of this clause shall contain provisions that the surface of the land shall be restored as nearly as practicable to its original condition upon the completion of any construction. DISTRICT further agrees that should the exercise of these rights temporarily interfere with the use of any or all of the Premises by TENANT, the rental shall be reduced in proportion to the interference with TENANT’s use of the Premises.

18. HOLDING OVER (PMG19.1 S)
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In the event TENANT shall continue in possession of the Premises after the term of this Lease, such possession shall not be considered a renewal of this Lease but a tenancy from month to month and shall be governed by the conditions and covenants contained in this Lease.

19. CONDITION OF PREMISES UPON TERMINATION (PMG20.1 S)
Except as otherwise agreed to herein, upon termination of this Lease, TENANT shall re-deliver possession of said Premises to DISTRICT in substantially the same condition that existed immediately prior to TENANT’s entry thereon, reasonable wear and tear, flood, earthquakes, war, and any act of war, excepted.

References to the "termination of the Lease" in this Lease shall include termination by reason of the expiration of the Lease term.

20. DISPOSITION OF ABANDONED PERSONAL PROPERTY (PMG21.1 S) If TENANT abandons or quits the Premises or is dispossessed thereof by process of law or otherwise, title to any personal property belonging to and left on the Premises fifteen (15) days after such event shall, at DISTRICT's option, be deemed to have been transferred to DISTRICT. DISTRICT shall have the right to remove and to dispose of such property without liability therefor to TENANT or to any person claiming under TENANT, and shall have no need to account therefor.

21. QUITCLAIM OF TENANT'S INTEREST UPON TERMINATION (PMG22.1 S) Upon termination of this Lease for any reason, including but not limited to termination because of default by TENANT, TENANT shall execute, acknowledge, and deliver to DISTRICT, within thirty (30) days after receipt of written demand therefor, a good and s ufficient deed whereby all right, title, and interest of TENANT in the Premises is quitclaimed to DISTRICT. Should TENANT fail or refuse to deliver the required deed to DISTRICT, DISTRICT may prepare and record a notice reciting the failure of TENANT to e xecute, acknowledge, and deliver such deed and said notice shall be conclusive evidence of the termination of this Lease and of all rights of TENANT or those claiming under TENANT in and to the Premises.

22. DISTRICT'S RIGHT TO RE-ENTER (PMG23.1 S)
TENANT agrees to yield and peaceably deliver possession of the Premises to DISTRICT on the date of termination of this Lease, whatsoever the reason for such termination.

Upon giving written notice of termination to TENANT, DISTRICT shall have the right to re-enter and take possession of the Premises on the date such termination becomes effective without further notice of any kind and without institution of summary or regular legal proceedings. Termination of the Lease and re-entry of the Premises by DISTRICT shall in no way alter or diminish any obligation of TENANT under the Lease terms and shall not constitute an acceptance or surrender.

TENANT waives any and all right of redemption under any existing or future law or statute in the event of eviction from or dispossession of the Premises for any lawful reason or in the event DISTRICT re -enters and takes possession of the Premises in a lawful manner.

23. AUTHORITY OF TENANT (PMG 24.1 S)
If TENANT is a corporation, each individual executing this Lease on behalf of said corporation represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of said corporation, in accordance with the by-laws of said corporation, and that this Lease is binding upon said corporation. 259

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24. PUBLIC RECORDS (PMG25.1 S)
Any and all written information submitted to and/or obtained by DISTRICT from TENANT or any other person or entity having to do with or related to this Lease and/or the Premises, either pursuant to this Lease or otherwise, at the option of DISTRICT, may be treated as a public record open to inspection by the public pursuant to the California Public Records Act (California Government Code Section 7920, et seq.) as now in force or hereafter amended, or any Act in substitution thereof, or otherwise made available to the public and TENANT hereby waives, for itself, its agents, employees, subtenants, and any person claiming by, through or under TENANT, any right or claim that any such information is not a public record or that the same is a trade secret or confid ential information and hereby agrees to indemnify and hold DISTRICT harmless from any and all claims, demands, liabilities, and/or obligations arising out of or resulting from a claim by TENANT or any third party that such information is a trade secret, or confidential, or not subject to inspection by the public, including without limitation reasonable attorneys' fees and costs.

25. RELATIONSHIP OF PARTIES (PMG26.1 S)
The relationship of the parties hereto is that of DISTRICT and TENANT, and it is expressly understood and agreed that DISTRICT does not in any way or for any purpose become a partner of or a joint venturer with TENANT in the conduct of TENANT ’s business or otherwise, and the provisions of this Lease and the agreements relating to rent payable hereunder are included solely for the purpose of providing a method by which rental payments are to be measured and ascertained.

26. CHILD SUPPORT ENFORCEMENT (PMG27.1S) – Intentionally Deleted

27. ATTORNEYS' FEES (PMG28.1)
In any action or proceeding brought to enforce or interpret any provision of this Lease, or where any provision hereof is validly asserted as a defense, each Party shall bear its own attorney fees and costs.

28. VENUE (PMG29.1)
The parties hereto agree that this Lease has been negotiated and executed in the State of California and shall be governed by and construed under the laws of California. In the event of any legal action to enforce or interpret this Lease, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding California Code of Civil Procedure Section 394. Furthermo re, the parties hereto specifically agree to waive any and all rights to request that an action be transferred for trial to another county.

260

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Exhibit D

Best Management Practices (“BMPs” Fact Sheets)

Best Management Practices can be found at: https://ocerws.ocpublicworks.com/ which website may change from time to time.

TENANT shall be responsible for implementing and complying with all BMP Fact Sheet requirements that apply to this TENANT’s operations. TENANT is to be aware that the BMP clause within this Lease, along with all related BMP Exhibits, may be revised, and m ay incorporate more than what is initially being presented in this Lease.

Suggested BMPs Fact Sheets may include, but may not be limited to, the following list shown below and can be found at:

https://ocerws.ocpublicworks.com/service-areas/oc-environmental-resources/oc- watersheds/documents/best-management-practices-bmp (which website may change from time to time):
• IC5 Concrete & Asphalt Production, Application, & Cutting • IC6 Contaminated or Erodible Surface Areas
• IC7 Landscape Maintenance
• IC9 Outdoor Drainage from Indoor Areas
• IC10 Outdoor Loading/Unloading of Materials
• IC11 Outdoor Process Equipment Operations & Maintenance • IC15 Parking & Storage Area Maintenance
• IC17 Spill Prevention & Cleanup
• IC21 Waste Handling & Disposal
• IC24 Wastewater Disposal Guidelines

261
Agenda Item
City Council
Item #: 7.3. 9/26/2023 File #: 23-0613
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Implementation of permit parking on both sides of Palm Avenue from Wayfield Street to Park Lane; both sides of Wayfield Circle south of Palm Avenue; both sides of Park Lane from Dana Place to Palm Avenue; and both sides of Wayfield Street between Palm and Walnut Avenues. Resolution No. 11495.

2. SUMMARY
A request for permit parking was evaluated in accordance with the City’s Neighborhood Permit Parking Program. The proposal received adequate support from the affected property owners and was approved by the City Traffic Commission. The affected streets are located within Permit Parking Opportunity Area #3.

3. RECOMMENDED ACTION

1. Approve permit parking on the streets listed above.

2. Adopt Resolution No. 11495. A Resolution of the City Council of the City of Orange adopting a revised master resolution of designated permit parking areas within the City of Orange.

4. FISCAL IMPACT
None. Implementing permit parking would require nominal staff time.

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
The City’s Neighborhood Permit Parking Program (NPPP) provides a mechanism for protecting residential streets from external parking overflow when certain criteria are satisfied. To streamline the permit parking application process in certain highly parked areas, the City Council established five Permit Parking Opportunity Areas (PPOA’s). PPOA’sare subject to different criteria and procedures.

Specifically, the application fee and parking occupancy study typically required are waived, and the required neighborhood support level is reduced from 75% to 55%. Moreover, the PPOA’s were created with the expectation that an initial surge in permit parking requests would occur, as affected residents begin responding to long-standing parking concerns. The number of permit parking applications is expected to ultimately stabilize once permit parking is activated within the core areas City of Orange Printed on 9/21/2023Page 1 of 2
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Item #: 7.3. 9/26/2023 File #: 23-0613
of each PPOA.

After receiving multiple written requests for permit parking on the aforementioned streets (in PPOA #3), staff mailed petition packages to affected property owners in June 2023. The poling process concluded in July, the results of which indicated that Palm Avenue (57%); Wayfield Circle (75%); and Park Lane (78%) each exceeded the minimum required 55% support stipulated in the NPPP. In accordance with NPPP guidelines, staff recommended that the City Traffic Commission (CTC) approve permit parking for Palm Avenue, Wayfield Circle, and Park Lane at their August 9, 2023, regular meeting. The CTC granted approval with a 5-0 vote. Wayfield Street, which at the time had not yet demonstrated the necessary support level, was not a part of staff’srecommendation to the CTC.

Notwithstanding the above and based on public input, the Commission moved a separate motion (which passed 5-0) to also approve permit parking on Wayfield Street, conditioned upon the necessary number of supporting petitions being delivered to the City before August 31, 2023. As of the August 31 deadline, Wayfield Street achieved 70% support, thus satisfying the CTC condition.

Based on the above, staff is recommending that the City Council grant final approval to implement permit parking on said segments of Palm Avenue, Wayfield Circle, Park Lane, and Wayfield Street. It should be noted that property owners on any other street(s) within the PPOA may request permit parking in the future by following the activation (opt-in) procedures described above.

7. ATTACHMENTS
· NPPP Policy, August 2022
· Resolution No. 11495
· Area Map
· Map of PPOA #3
· August 9, 2023, CTC Staff Report
· August 9, 2023, CTC DRAFT minutes
· Notification Letter
City of Orange Printed on 9/21/2023Page 2 of 2
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263
Agenda Item
City Council
Item #: 7.2. 9/26/2023 File #: 23-0613
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

3. RECOMMENDED ACTION

1. Approve permit parking on the streets listed above.

2. Adopt Resolution No. 11495. A Resolution of the City Council of the City of Orange adopting a revised master resolution of designated permit parking areas within the City of Orange.

4. FISCAL IMPACT
None. Implementing permit parking would require nominal staff time.

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

Specifically, the application fee and parking occupancy study typically required are waived, and the required neighborhood support level is reduced from 75% to 55%. Moreover, the PPOA’s were created with the expectation that an initial surge in permit parking requests would occur, as affected residents begin responding to long-standing parking concerns. The number of permit parking applications is expected to ultimately stabilize once permit parking is activated within the core areas City of Orange Printed on 9/21/2023Page 1 of 2
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264
Item #: 7.2. 9/26/2023 File #: 23-0613
of each PPOA.

NEIGHBORHOOD PARKING PERMIT PROGRAM

IMPLEMENTATION POLICY

APPROVED BY CITY COUNCIL
August 9, 2022
1 Note: The Neighborhood Parking Permit Policy below does not apply to area “A”

• The program to mitigate the int rusion of college -oriented, commercial, institutional, multi - family residential (more than two units) or other long -term vehicular parking on streets in residential areas to assure that local residents and their guests have convenient parking on streets in proximity to their homes shall be referred to as the Neighborhood Parking Permit Program.

• Permit Parking shall only be permitted in single-family residential areas, where the problem is ongoing, and it is determined that the permit parking is the only solution. Only single- family residences and duplexes (two units on one lot) are qualified for this program.

• The Traffic Engineering Division shall determine the boundaries of the permit area for each request.

• Since Permit Parking Areas benefit certain residents, and not the general public, a “Permit Parking Program Application Fee” $1,000 shall be paid by the proponent(s) of each new or additional permit area, for consideration of the implementation of permit parking. (This could also be implemented with a $500 deposit and an additional $500 when the petition is issued.) (Exception: If within one year of implementing a new permit parking area there is spillover onto adjacent streets(s), a property owner o n the affected street(s) may request expansion of that permit parking area. Such requests shall be exempt from the application fee but would need to meet the parking study and petition requirements.)

• The neighborhood parking permit areas that are adjacent to a K-12 school shall not be enforced during the school A.M. drop-off (from 7:30 am to 8:30 am) and P.M. pick-up time (from 1:30 pm to 3:00 pm) on days school is in session.

• Implement restricted hours for permit parking enforcement on an as-needed basis to address Recreational Intrusions and Business Intrusions. The intent of this policy change is to maximize the benefits of permit parking to t he applicant neighborhood while minimizing impacts to adjacent property use to balance parking need with quality of lifestyle.

o Institutional Intrusions (Universities, hospitals) shall remain 24/7/365.

o Recreational Intrusions (Parks, Schools and Sports Complexes) shall be enforced from 8:00 a.m. to 8:00 p.m. or as otherwise approved.

o Business Intrusions (Commercial Businesses) shall be enforced Monday through Friday 7:00 a.m. to 5:00 p.m. or as otherwise approved.

266

NEIGHBORHOOD PARKING PERMIT PROGRAM

IMPLEMENTATION POLICY

APPROVED BY CITY COUNCIL
August 9, 2022
2 • Implementation of Permit Parking Program areas will only be considered when the following are satisfied:

1. The area must abut an institutional, residential apartment, commercial or industrial use which is generating the parking intrusion.

2. A minimum of 75% of the area residents must sign the petition in favor.

3. Any identified problem must be on-going, not occasional or temporary.

4. To demonstrate a need, 75% of the available on-street space in a proposed permit area must be occupied during the perceived problem times. Staff, through consultation with the applicant, shall determine appropriate dates and times for conducting the parking occupancy study. Up to three observations may be performed, at the discretion of the Traffic Engineering Division

5. Staff must see evidence that required off street parking is being utilized. • Program shall not be approved to attempt to solve social problems that should be addressed through other means, such as Police or Code Enforcement.

• Program shall not be approved if the identified parking problems can be mitigated by less restrictive parking control measures. Council directs staff to identify the least restrictive permit hours to achieve the desired results.

• If recommended for approval by the City Traffic Commission, the Commission will direct the Traffic Engineering Division to prepare a resolution for adoption by the City Council.

• Number of permits per household (single family residence) shall be limited to 5 permits including guest permits. The total numb er of permits shall not exceed 5 per household. (Updated 6/12/18 per City Council)

• Number of permits for each unit of a duplex shall be limited to 2 permits (for registered vehicles only), plus 2 guest permits. The total of permits shall not exceed 4 permits per unit.

• Permits cost $30 per household and are valid for 3 years. Permits are non-transferable and are invalid if the registered permittee moves from the household. (Updated 6/12/18 per City Council)

• Single day event guest permit (up to maximum of 20) are available 4 times per year at no cost to a resident.

267

NEIGHBORHOOD PARKING PERMIT PROGRAM

IMPLEMENTATION POLICY

APPROVED BY CITY COUNCIL
August 9, 2022
3 • To minimize sign pollution, permit parking area shall be identified by area posting wherever possible.

• The City Council may, at its discretion, create city -defined permit parking “opportunity” areas in locations with high parking demand potential . Residents within the boundaries of such areas can opt into permit parking on a block -by-block basis, similar to Area “A”.

Requests in these areas shall be processed in a streamlined manner similar to Area “A ” requests, with no application fee, no parking study, and minimum 55% support of the affected residents.

The City Manager/or his designee shall have the authority to suspend enforcement of neighborhood parking permit enforcement on a case-by-case basis for special requests.

268
RESOLUTION NO. 11495

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ORANGE ADOPTING A REVISED

MASTER RESOLUTION OF DESIGNATED PERMIT

PARKING AREAS WITHIN THE CITY OF ORANGE

WHEREAS, pursuant to California Vehicle Code Section 22507, local authorities may generally prohibit or restrict the stopping, parking, or standing of vehicles on certain streets or highways, or portions thereof, during all or certain hours of the day; and

WHEREAS, local authorities may also include a designation of certain streets upon which preferential parking privileges are established with a permit or permits that exempt them from the prohibition or restriction of the ordinance or resolution; and

WHEREAS, pursuant to the authority provided by the California Vehicle Code, the City Council of the City of Orange codified Chapter 10.30 of the Orange Municipal Code generally establishing parking requirements for the City of Orange; and

WHEREAS, Section 10.30.040 specifically establishes the Neighborhood Parking Permit Program designating portions of certain public streets for permit-parking and explicitly authorizes the City Council of the City of Orange to add, remove or modify designated areas within the Neighborhood Permit Parking Program by resolution; and

WHEREAS, the creation of a “Master Resolution” containing all the permit parking areas in a single document eliminates the need to potentially revise multiple resolutions when an area is added, deleted, or modified within the Neighborhood Permit Parking Program; and

WHEREAS, the City Council of the City of Orange most recently adopted said Master Resolution on September 12, 2023 (Resolution No. 11488), containing a list of all permit parking areas within the City; and

WHEREAS, staff now recommends designating and adding Parking Permit Opportunity Area “4” to the Master Resolution of Permit Parking Areas within the City of Orange; and

WHEREAS, accordingly, the City Council desires to rescind Resolution No. 11488 and replace it with a revised Resolution containing all areas designated for permit- parking, adding Parking Permit Opportunity Area “ 3,” as further described in Section II of this Resolution and further contained in the attached Exhibit A.

NOW, THEREFORE, BE IT RESOLVED , by the City Council of the City of Orange does resolve as follows:

SECTION I:

That Resolution No. 11488, adopted September 12, 2023, is hereby rescinded, effective immediately upon the date of the adoption of Resolution No. 11495.

269
2 SECTION II:

The following streets be included to the permit parking program Opportunity Area “3”:

Wayfield St. between Palm Ave. and Walnut Ave.

Palm Ave. between Park Ln. and Wayfield St.

Park Ln. between Dana Pl. and Palm Ave.

Wayfield Cr. south of Palm Ave.

SECTION III:

That the Master Resolution of Permit Parking Area for the Neighborhood Permit Parking program attached hereto as Exhibit “A” is hereby adopted.

ADOPTED this ____ day of ____________________, 2023

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )

I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the day of , 2023 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

270

Exhibit A

Page 1 of 6 ends

EXHIBIT A

The following areas are all areas that have been approved by the City Council for inclusion in the Neighborhood Permit Parking Program and are subject to Chapter 10.30 of the Orange Municipal Code. Any additions or deletions to the Neighborhood Permit Parking Program shall be made by amending this Master Resolution.

CHAPMAN UNIVERSITY NEIGHBORHOOD PERMIT PARKING AREA “A”

1. West side of Cambridge St. from Chapman Ave. to Lomita Ave. adjacent to residential land uses.

2. Both sides of Center St. from Chapman Ave. to Palm Ave. adjacent to residential land uses.

3. East side of Center St. from Palm Ave. to Walnut Ave.

4. Both sides of Cleveland St. from Chapman Ave. to Sycamore Ave. adjacent to residential l and uses.

5. East side of Cypress St. from Palm Ave. to 637 feet north of Walnut Ave.

6. Both sides of Cypress St. from Walnut Ave. to Sycamore Ave.

7. Both sides of Everett Pl. from Shaffer St. to Glassell St.

8. Both sides of Glassell St. from Walnut Ave. to Rose Ave.

9. Both sides of Glassell St. from Lomita Ave. to Walnut Ave.

10. East side of Grand St. from Chapman Ave. to Maple Ave. adjacent to residential land uses.

11. Both sides of Grand St. from Maple Ave. to Palm Ave.

12. Both sides of Grand St. from Everett Pl. to Walnut Ave.

13. Both sides of Grand St. from Everett Pl. to Lomita Ave.

14. Both sides of Harwood St. from 146 feet north of Chapman Ave. to the northern terminus of Harwood St.

15. Both sides of Jefferson Ave. from Harwood St. to Shaffer St.

16. East side of Lemon St. from Chapman Ave. to Palm Ave. adjacent to residential land uses.

17. Both sides of Lemon St. from Palm Ave. to Walnut Ave. adjacent to residential land uses.

18. West side of Lemon St. from Walnut Ave. to 644 feet north of Walnut Ave.

19. Both sides of Lomita Ave. from Cambridge St. to Lemon St. adjacent to residential land uses.

20. Both sides of Maple Ave. from Cambridge to Cypress St. adjacent to residential land uses.

21. Both sides of Mayfair Ave. from Shaffer St. to Lemon St.

22. Both sides of Olive St. from Chapman Ave. to the northern terminus of Olive St. adjacent to residential land uses.

23. Both sides of Olive St. from Sycamore Ave. to Rose Ave.

24. Both sides of Orange St. from Maple Ave. and Palm Ave.

25. Both sides of Orange St. from Walnut Ave. to the northern terminus of Orange St.

26. Both sides of Orange St. from Lomita Ave. to the southern terminus of Orange St.

27. Both sides of Palm Ave. from Cambridge St. to Lemon St. adjacent to residential land uses.

28. Both sides of Rose Ave. from Glassell St. to Orange St.

29. Both sides of Shaffer St. from Chapman Ave. to Lomita Ave. adjacent to residential land uses.

30. Both sides of Sycamore Ave. from Cambridge St. to Center St. adjacent to residential land uses.

31. North side of Sycamore Ave. at 145 W. Sycamore Ave. adjacent to residential land uses.

32. Both sides of Walnut Ave. from Cambridge St. to Cypress St. adjacent to residential land uses. 271

Exhibit A

Page 2 of 6 ends

33. Both sides of N. Shaffer St. between Chapman Ave. and Walnut Ave.

34. Both sides of E. Maple Ave. between Shaffer St. and Cleveland Ave.

35. Both sides of E. Mayfair Ave. between Shaffer St. and Grand St.

AREA “B”

1. Both sides of Adams Ave. from Glassell St. to Grand St.

2. Both sides of Hoover Ave. from Glassell St. to Grand St.

3. Both sides of Quincy Ave. from Glassell St. to Grand St.

4. Both sides of Wilson Ave. from Glassell St. to Grand St.

AREA “C”

1. Both sides of Compton Ave. from Manchester Ave. to Lewis St.

2. East side of Lewis St. from the northerly property line at 4035 Compton Ave. to the southern property line of 119 N. Lewis St.

3. West side of Manchester Ave. from Sheringham Ave. to Compton Ave.

4. North side of Sheringham Ave. from Manchester Ave. to Windgap Dr.

5. South sides of Sheringham Ave. from Woodridge Cr. to Windgap Dr.

6. Both sides of Sunningdale Cr. from Compton Ave. south to include the cul-de-sac.

7. Both sides of Windgap Dr. from Compton Ave. south to include the cul-de-sac.

8. West side of Woodridge Cr. from Sheringham Ave. south to include the cul-de-sac.

9. East side of Woodridge Cr. from the northerly property line of 119 N. Woodridge Cr. south to include the cul-de-sac.

AREA “D”

1. Both sides of Dunas St. from Maple Ave. north to include the cul-de-sac.

2. Both sides of Maple Ave. from Prospect St. to Olympia Way.

3. Both sides of Olympia Way from Maple Ave. to Spring St.

4. Both sides of Shasta St. from Maple Ave. north to include the cul-de-sac.

5. Both sides of Vine Ave. from Olympia Way to its western terminus.

6. Both sides of First St. from Chapman Ave. north to include the cul-de-sac.

7. Both sides of Pearl Ave. from First St. to McPherson Rd.

8. East side of McPherson Rd. from 131 to 133 N. McPherson Rd.

AREA “E”

1. West side of Elm St. south of Sycamore Ave. to include the cul-de-sac.

AREA “F”
Permit Parking between the hours of 10:00 p.m. and 6:00 a.m.

1. Both sides of Almond Ave. from Prospect St. to Violet Ln.

2. Both sides of Kathleen St. from Chapman Ave. to Palmyra Ave.

3. Both sides of Palmyra Ave. from Craig Dr. to Prospect St.

4. East side of Prospect St. from Almond Ave. to Palmyra Ave.

5. Both sides of Violet Ln. from Almond Ave. to Palmyra Ave. 272

Exhibit A

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AREA “G”
Permit Parking between the hours of 10:00 p.m. and 6:00 a.m.

1. Both sides of Euclid Ave. from James St. to Seranado St.

2. Both sides of James St. from Sycamore Ave. to Euclid Ave.

3. Both sides of Palm Ave. from Swidler St. to Seranado St.

4. Both sides of Sycamore Ave. from Swidler St. to Seranado St.

5. Both sides of Seranado St. from Spring St. to Walnut Ave.

6. Both sides of Silverleaf Ave. from Thomas St. to Seranado St.

7. Both sides of Spring St. from Swidler St. to Seranado St.

8. Both sides of Swidler St. from Spring St. to Walnut Ave.

9. Both sides of Thomas St. from Sycamore Ave. to Silverleaf Ave.

10. Both sides of Walnut Ave. from Swidler St. to Seranado St.

AREA “H”

1. Both sides of Shaffer St. beginning 390 feet north of Katella Ave. and ending at Trenton Ave. (R-1 zoned single-family residences only.)

AREA “I”

1. Both sides of Almond Ave. from Prospect St. to Dunas St.

2. Both sides of Century Ave. from James St. to Thomas St.

3. Both sides of Craig Dr. 100 feet south of Roberta Dr. to Prospect St.

4. Both sides of Dunas St. from Palmyra Ave. to Almond Ave.

5. Both sides of James St. from Century Dr. to LaVeta Ave.

6. North side of LaVeta Ave. from Prospect St. to Dunas St.

7. Both sides of Merelet Ln. from Craig Dr. to include the cul-de-sac.

8. Both sides of Olympia Way from Palmyra Ave. to Almond Ave.

9. North side of Palmyra Ave. from Prospect St. to Thomas St.

10. Both sides of Ruth Pl. easterly of James St.

11. Both sides of Ruth Pl. from Prospect St. to Olympia Way.

12. Both sides of Shasta St. from Palmyra Ave. to Almond Ave.

13. Both sides of Thomas St. from Century Dr. to Palmyra Ave.

AREA “J”

1. Both sides of Binnacle Ave. from Jetty Dr. to its easterly terminus.

2. North side of Chapman Ave. from Jetty Dr. to 4537 W. Chapman Ave.

3. North side of Chapman Ave. frontage road from Jetty Dr. to cul-de-sac.

4. Both sides of Grant Pl. from Chapman Ave. northerly to include the cul-de-sac.

5. Both sides of Jetty Dr. from Chapman Ave. to Sirius Ave.

6. West side of Lewis St. from Sirius Ave. to Simmons Ave.

7. South side of Simmons Ave. from Lewis St. to Spinnaker St.

8. Both sides of Sirius Ave. from Lewis St. to Jetty Dr.

9. Both sides of Spinnaker St. from Binnacle Ave. to Simmons Ave. 273

Exhibit A

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10. Both sides of Stay Court easterly of Jetty Dr.

11. Both sides of Tiller Ave. from Lewis St. to Spinnaker St.

AREA “K”

1. Both sides of the 2700 block of E. Bennett Ave.

2. Both sides of the 2700 block of E. Killingsworth Ave.

3. Both sides of the 100-200 blocks of N. Malena Dr.

4. Both sides of the 2700 block of E. Sherman Ave.

5. Both sides of the 100-200 blocks of N. Wheeler St.

AREA “L”

1. Both sides of Jacaranda Ave. from Morgan St. to Mallard St.

2. Both sides of Juniper Ave. from Morgan St. to Mallard St.

3. Both sides of Mallard St. from Collins Ave. northerly to 985 N. Mallard St.

4. Both sides of Morgan St. from Collins Ave. northerly to 986 N. Morgan St.

AREA “M”

1. Both sides of Citrus St. from Almond Ave. to the southerly commercial property lines south of Chapman Ave.

AREA “N”

1. West side of Bedford Rd. from LaVeta Ave. to Bronson Ave.

AREA “O”

1. North side of Spring St. from Hewes St. to Earlham St.

AREA “P”

1. Both sides of the 1000 block of Gardner Dr.

2. Both sides of the 1000 block of Greengrove St.

3. Both sides of Monroe Ave. from California St. to Lincoln St.

4. Both sides of Quincy Ave. from California St. to Lincoln St.

5. Both sides of Lincoln St. between Adams Ave. and Wilson Ave. including the cul-de-sac.

6. West side of Lincoln St. from 990 N. Lincoln St. to Adams Ave.

7. East side of Lincoln St. from 1073 N. Lincoln St. to Adams Ave.

8. Both sides of Adams Ave. between Lincoln St. and California St.

AREA “Q”

1. Both sides of the 8500 block of Biscayne Way.

2. Both sides of the 8500 block of Deershire Ct.

3. Both sides of the 200 block of Fairfield Ln.

4. Both sides of the 200 block of Firenza Way.

5. Both sides of the 8500 block of Heatherview Ln.

274

Exhibit A

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AREA “R”

1. Both sides of San Luis Dr. from 7821 (north side) to Santa Cruz Ave., and from 7816 (south side) to the beginning of 8132.

2. 8102 and 8110 Santa Cruz Ave. (south side).

3. Both sides of Santa Maria St. between San Luis Dr. and Santa Cruz Ave.

AREA “S”

1. Both sides of Poplar St. between Maple Ave. and the cul-de-sac.

2. North side of Maple Ave. between Stevens St. and 1949 W. Maple Ave.

3. South side of Maple Ave. from Stevens St. to 2010 W. Maple Ave.

4. Both sides of Eckhoff St. between 130-283 N. Eckhoff St.

AREA “T”

1. Both sides of Cully Dr. from the westerly property lines of 861 and 864 W. Cully Dr. to the cul-de-sac.

2. Four spaces on the east side of Eckhoff St. from the southerly limit to W. Arbor Way (approximately 110 feet).

3. Five spaces on the east side of Eckhoff St. from 45 feet north of W. Arbor Way end of curb return to Maple Ave. (approximately 140 feet. It allows one parking space to remain in the permit parking program just north of the driveway at 2037 W. Arbor Way for visibility).

4. Three spaces on the east side of Eckhoff St. north of Willow Ave. to the northerly limit (approximately 70 feet).

5. Two spaces on the east side of Eckhoff St. from the existing red curb north of Maple Ave. to the driveway south of 206 N. Eckhoff St.

AREA “U”

1. Both sides of Waverly St. from the northerly property lines of 133 and 138 S. Waverly St. to Almond Ave.

AREA “V”

1. The south side of E. Rose Ave. from 1932/1934 to N. Highland St.

2. Both sides of N. Highland St. from E. Rose Ave. to E. Barkley Ave.

3. Both sides of E. Mayfair Ave. from 1740 E. Mayfair Ave. to N. Highland St.

4. The south side of E. Lomita Ave. from 1734/1736 to N. Highland St.

5. The north side of E. Lomita Ave. from 1901 to N. Highland St.

6. Both sides of E. Barkley Ave. from the cul-de-sac to N. Highland St.

7. Both sides of the cul-de-sacs of N. Victoria Dr., N. Russell Dr., and N. Shirley Dr., north of E.

Mayfair Ave.

AREA “W”

1. Both sides of Madison Ave. from Wayfield St. to the cul-de-sac. 275

Exhibit A

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2. Both sides of Orange Grove Ave. from Wayfield St. to the westerly property lines of 1743/1744 E. Orange Grove Ave.

3. East side Wayfield St. between Orange Grove Ave. and the southerly property lines of 550/555 Wayfield St.

4. West side of Wayfield St. between Orange Grove Ave. and Madison Ave.

AREA “X”

1. South side of Collins Ave. from Hart St. to 2842 E. Collins Ave.

AREA “Y”

1. Both sides N. Citrus St. from Walnut Ave. to W. Sycamore Ave.

AREA “Z”

1. Both sides of Sycamore Ave. from Rancho Santiago Blvd. to Richard St.

2. Both sides Rancho Santiago Blvd. from the south city limits to Silverleaf Ave.

3. Both sides of Silverleaf Ave. from Rancho Santiago Blvd. to Richard St.

4. Both sides of Christine St. from Silverleaf Ave. to Sycamore Ave.

5. Both sides of Richard St. from Silverleaf Ave. to Sycamore Ave.

OPPORTUNITY AREA “1”

1. Both sides of Lilac Ln. from Culver Ave. to Orchard Ave.

2. Both sides of Plum Ln. from Culver Ave. to Orchard Ave.

3. Both sides of Orchard Ave. from Flower St. to the easterly terminus of the street.

OPPORTUNITY AREA “3”

1. Wayfield St. between Palm Ave. and Walnut Ave.

2. Palm Ave. between Park Ln. and Wayfield St.

3. Park Ln. between Dana Pl. and Palm Ave.

4. Wayfield Cr. south of Palm Ave.

OPPORTUNITY AREA “4”

1. Both sides of Trenton Ave. from the westerly property lines of 331 E. Trenton Ave. and 1482 N. Grant St. to Shaffer St.

2. Both sides of Grant St. from Trenton Ave. to the cul-de sac.

OPPORTUNITY AREA “5”

1. Both sides of Greengrove St. from Meats Ave. to the southern terminus.

2. Both sides of Del Mar Ave. from Cambridge St. to Greengrove St.

276
277
278
Agenda Item
City Traffic Commission
Item #: 4.1. 8/9/2023 File #: 23-0523
TO: Chair and Members of the City Traffic Commission
THRU: Larry Tay, City Traffic Engineer
FROM: Dave Allenbach, Transportation Analyst

1. SUBJECT
Request for Permit Parking on both sides of Palm Avenue between Wayfield Street and Park Lane; Wayfield Circle south of Palm Avenue; and Park Lane between Palm and Dana Avenues.

2. SUMMARY
This is a request to implement permit parking on the aforementioned streets which are located in Permit Parking Opportunity Area #3. The request meets all of the requirements set forth in the City’s Neighborhood Permit Parking Program.

3. RECOMMENDED ACTION

1. Approve the implementation of permit parking on the aforementioned streets.

2. Forward to the City Council for final action.

4. FISCAL IMPACT
The total expenditure for the project is $2,000 and will be funded in Minor Traffic Control Devices (16302) through Traffic Improvement Measure M2 (263).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community.
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
The City’s Neighborhood Permit Parking Program (NPPP) provides a mechanism for protecting residential streets from external parking overflow when certain criteria are satisfied. In order to streamline the permit parking application process in certain highly parked areas, the City Council established five Permit Parking Opportunity Areas (PPOA). PPOA are subject to different criteria and procedures. Specifically, the application fee and parking occupancy study typically required are waived, and the required neighborhood support level is reduced from 75% to 55%.

After receiving two separate written requests for permit parking for the aforementioned streets (in PPOA #3) from two eligible residents, staff mailed petition packages to the property owners on the affected streets in June 2023. The poling process concluded in July, the results of which indicated that each of the streets individually demonstrated sufficient support for permit parking: 57% on Palm Avenue; 75% on Wayfield Circle; and 78% on Park Lane. Because the levels of support exceed the City of Orange Printed on 8/2/2023Page 1 of 2
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Item #: 4.1. 8/9/2023 File #: 23-0523
Avenue; 75% on Wayfield Circle; and 78% on Park Lane. Because the levels of support exceed the 55% stipulated in the NPPP, staff recommends permit parking.

The requests for permit parking also included Wayfield Street between Palm and Walnut avenues.

As a result, Wayfield Street was also petitioned; however, because the 55% threshold was not satisfied, staff cannot recommend permit parking at this time. Staff will continue to accept incoming petitions within a reasonable period and, should the necessary support level be achieved, can recommend Wayfield Street for permit parking on a future (October) City Traffic Commission agenda.

Moreover, it should be noted that property owners of any other street(s) within this PPOA may request permit parking in the future by following the procedures described above. Furthermore, permit parking does not supersede other parking restrictions such as street sweeping. Participation in the permit parking program is voluntary; however, any vehicle parked on the street without a permit will be subject to citation.

7. ATTACHMENTS
· Letters of Request
· Petition Area Map
· PPOA #3 Area Map
· NPPP Implementation Policy Update 2022
City of Orange Printed on 8/2/2023Page 2 of 2
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13280
1 Dave Allenbach
From: Cindy Pace <[email protected]>
Sent: Saturday, May 27, 2023 9:33 PM
To: Dave Allenbach
Subject: Re: Parking Permit Letter of Request for Area 3 May, 26, 2023

Hi Dave,
Can you tell me the status of this parking permit project? My neighbors and I would really like to know how much longer this will take. Please respond to this email or call me to discuss at your earliest convenience.

Thanks

Cindy Pace
1904 E. Palm Ave
Orange, CA 92867
714-478-9227

On Wed, Apr 26, 2023 at 3:13 PM Cindy Pace <[email protected]> wrote:

April 26, 2023

City of Orange
Dave Allenbach

Hi Dave,

This is a letter of request for the Parking Permit Project. I am requesting this parking permit opportunity for Area 3 which is Palm Avenue and Wayfield Circle. This is also a request for Wayfield Street and Park Lane area.

I live at 1904 E. Palm Avenue and parking is definitely a daily problem.

If there is anything further you need from me, please let me know.

Cindy Pace
1904 E. Palm Ave
Orange, CA 92867
714-478-9227
You don't often get email from [email protected]. Learn why this is important 14 AAAAAAAAAAAA
281
1 Dave Allenbach
From: Dave Allenbach
Sent: Tuesday, May 16, 2023 12:07 PM
To: Josh Sanchez
Cc: Larry Tay
Subject: RE: July 12 Council Agenda Item No. 7.1 - Permit Parking on Sections of Palm Ave, Park Ln, and Wayfield Cir
Attachments: NPPP Implementation Policy Update 2022.pdf Hello Mr. Sanchez,

The issue of parking permits in your area that was being discussed two years ago has died. However, last August the City Council approved a new permit parking policy which established “Parking Permit Opportunity Areas” (PPOA’s) and your neighborhood is located in PPOA #3. What this means for you is that there are no application fees in the opportunity areas, no parking study and the level of approval by the property owners is now 55% instead of 75%. We simply need a letter of request from a resident. Your email will suffice as a letter of request, however, You may submit another request if you wish to add other streets in your neighborhood such as Palm Ave. and Wayfield Cir. For example. We will begin putting together a petition package for you and the other property owners along Watfield Street. You should receive them within the next two weeks.

I have attached a copy of the current Parking Permit Policy for you to examine page 3 describes the Permit Parking Opportunity Areas. , if you have any questions please feel free to call me.

Regards,
Dave Allenbach

From: Josh Sanchez <[email protected]>
Sent: Sunday, May 14, 2023 12:32 PM
To: Larry Tay <[email protected]>
Cc: Dave Allenbach <[email protected]>
Subject: Re: July 12 Council Agenda Item No. 7.1 - Permit Parking on Sections of Palm Ave, Park Ln, and Wayfield Cir

Hello,

It’s been about a year since the permit parking was discussed with no sight of a follow up. Parking as continued to get worse to the point where residents on N Wayfield cannot park on our own street. Vehicles have been known to stay parked in front of our houses for numerous of days and I have called multiple times to OPD to send out parking enforcement.
15 282
2 I am still at 404 N Wayfield which is in the middle of the street and cannot have guests over because they’ll have to figure out how far to park. It’s bad enough that majority of the vehicles on this street don’t belong to the home owners or renters, but we also have the deal with these vehicles who park right in the middle to prevent other vehicles from parking next to them. (See
image).

Some home owners are forced to leave out our trash cans just to prevent vehicles from taking up parking spots so we may utilize our own streets.

What can be done to revive this permit request and attempt to gather enough approval signatures?

Thank you,
Josh Sanchez

On Jul 11, 2022, at 17:27, Larry Tay <[email protected]> wrote:

Dear Property Owner/Resident:

Thank you for your interest and input over the idea of permit parking on/in the vicinity of the above- referenced streets. A notification letter was sent out early last week indicating that this matter was 16 283
3 scheduled to be considered by City Council at its July 12, 2022, meeting. However, this is to inform you that a continuance is being requested for the corresponding item on tomorrow evening’s agenda (Item No. 7.1), and the continuance will be to a date uncertain. As a result, this matter is not expected to be considered tomorrow.

Concurrent with the proposed continuance, staff will be reviewing the city’s existing Neighborhood Permit Parking Program (NPPP) to determine whether any program/policy changes could be made in order to better reflect the City’s current needs. Any potential NPPP updates might then be used to complete the processing of this issue. We apologize for any inconvenience. Please feel free to contact Dave Allenbach, Transportation Analyst, at 714/744-5525 should you have any questions in the interim.

Regards,

Larry Tay, PE, TE, PTOE
City Traffic Engineer
City of Orange Public Works
(714) 744-5537

E-mail correspondence, along with any attachments, may be subject to the California Public Records Act; and as such may be subject to public disclosure unless otherwise exempt under the Act.
17 284

WALNUT AVE

PARK LN

PALM AVE

WAYFIELD ST

SYCAMORE AVE

PARK LN
OAK ST

WAYFIELD CIR

DANA PL
OAK ST

WAYFIELD ST

PARK LN

HIGHLAND ST
MT. VERNON AVE

MARTHA AVE

WALNUT AVE

TUSTIN ST
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AREA MAP

PETITION
AREA

PROPOSED
PERMIT
AREA
18285
MT. VERNON
WAYFIELD ST.

SYCAMORE AVE.

MARTHA

WAYFIELD CIR
PALM AVE.

HIGHLAND ST.

PARK
LN.

WALNUT AVE.

OAK ST.

TUSTIN ST.

S.R. 55 FWY
Area V
Area W

AREA MAP

NPPP OPPORTUNITY
AREA 3
.
0 0.065 0.13 0.195 0.260.0325
Miles
19286
City of Orange
City Traffic Commission
August 09, 2023

MINUTES - DRAFT
The Traffic Commission of the City of Orange, California convened on August 9, 2023, at 5:30 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.

1. OPENING/CALL TO ORDER
Chair Feliz called the meeting to order at 5:32 p.m.

1.1 PLEDGE OF ALLEGIANCE
Commissioner Hamilton led the flag salute.

1.2 ROLL CALL

Present: Ricci, Barbeito, Hamilton, Jurjis, and Feliz

Absent: Dick, and Tran

2. PUBLIC COMMENT
None.

3. APPROVAL OF MINUTES

3.1. Approval of minutes of the City of Orange Traffic Commission Regular Meeting held on June 14, 2023.

A motion was made by Commissioner Barbeito, seconded by Vice Chair Ricci, to approve the minutes as presented. The motion carried by the following vote:

Ricci, Barbeito, Hamilton, Jurjis, and FelizAyes:

NoneNoes:

Dick, and TranAbsent:

4. NEW BUSINESS

4.1. Request for Permit Parking on both sides of Palm Avenue between Wayfield Street and Park Lane; Wayfield Circle south of Palm Avenue; and Park Lane between Palm and Dana Avenues.

Public Speakers
John Bivens spoke in support but with conditions.

Stacy Mohler spoke in support and asked for information on how to get permits.

Rose Cunningham spoke in support.

A motion was made by Vice Chair Ricci, seconded by Commissioner Jurjis, to 1) approve the implementation of permit parking on the aforementioned streets and 2) forward to the City Council for final action. The motion carried by the following vote:

Page 1 of 3 ends

Orange City CouncilSeptember 26, 2023

Orange City Council
September 26, 2023