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 and 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 since 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 prevailing 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. 1055
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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) 1056
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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 contractor 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. 1057
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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 1776for 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 1059
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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 journeyman, 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. 1060
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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 labormanagement 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. 1061
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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 calendar 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 undergo 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 1062
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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, if 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 subcontractor, 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 1063
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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 the 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 Industrial 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 solely for training apprentices. For purposes of this subparagraph, adequate records include, 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 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 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 1065
Attachment No. 1
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.
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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 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. 1067
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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 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 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 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. 1068
Attachment No. 2
(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 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 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. 1069
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Agenda Item
City Council
Item #: 3.16. 11/14/2023 File #: 23-0724
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Contract for purchase of equipment and installation services for the mixers at Reservoirs 5, 8, and 10 from PAX Water Technologies as a sole source vendor.
2. SUMMARY
Authorize purchase of internal mixers and installation services to replace aging and non-functioning mixers at Reservoirs 5, 8, and 10 from PAX Water Technologies. PAX Water Technologies is the current manufacturer of all PAX mixer products and is the only vendor for the PAX mixers.
3. RECOMMENDED ACTION
Approve contract with PAX Water Technologies for the purchase of equipment and installation services of internal mixers for Reservoirs 5, 8, and 10; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this project is $133,920 and will be funded through Water Fund (600) expenditure account number 600.8011.51401.00000.
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 PAX mixers are used in water storage tanks to improve water quality especially during the hot summer months. The constant mixing of water in the reservoir reduces stratification, improves chlorine residuals, and increases the turnover rate. The mixers minimize potential negative effects on the water quality in the system. Since 2012, the Public Works Water Division has installed the PAX mixers at different reservoirs with excellent results. The existing mixers at Reservoirs 5, 8, and 10 have reached the end of their service life and need to be replaced with new equipment.
PAX Water Technologies is the current owner and manufacturer of the PAX mixer products and is the only vendor available. The City would be purchasing the mixers directly from the source. Staff is City of Orange Page 1 of 2 Printed on 11/8/2023
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Item #: 3.16. 11/14/2023 File #: 23-0724
only vendor available. The City would be purchasing the mixers directly from the source. Staff is requesting the City Council authorize the purchase of three new mixers and installation services from PAX Water Technologies for Reservoirs 5, 8, and 10 in the amount of $133,920.
7. ATTACHMENTS
· Contract with PAX Water Technologies
City of Orange Page 2 of 2 Printed on 11/8/2023
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Agenda Item
City Council
Item #: 3.16. 11/14/2023 File #: 23-0724
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Contract for purchase of equipment and installation services for the mixers at Reservoirs 5, 8, and 10 from PAX Water Technologies as a sole source vendor.
2. SUMMARY
Authorize purchase of internal mixers and installation services to replace aging and non-functioning mixers at Reservoirs 5, 8, and 10 from PAX Water Technologies. PAX Water Technologies is the current manufacturer of all PAX mixer products and is the only vendor for the PAX mixers.
3. RECOMMENDED ACTION
Approve contract with PAX Water Technologies for the purchase of equipment and installation services of internal mixers for Reservoirs 5, 8, and 10; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this project is $133,920 and will be funded through Water Fund (600) expenditure account number 600.8011.51401.00000.
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 PAX mixers are used in water storage tanks to improve water quality especially during the hot summer months. The constant mixing of water in the reservoir reduces stratification, improves chlorine residuals, and increases the turnover rate. The mixers minimize potential negative effects on the water quality in the system. Since 2012, the Public Works Water Division has installed the PAX mixers at different reservoirs with excellent results. The existing mixers at Reservoirs 5, 8, and 10 have reached the end of their service life and need to be replaced with new equipment.
PAX Water Technologies is the current owner and manufacturer of the PAX mixer products and is the only vendor available. The City would be purchasing the mixers directly from the source. Staff is City of Orange Page 1 of 2 Printed on 11/8/2023
powered by Legistar™1092
Item #: 3.16. 11/14/2023 File #: 23-0724
only vendor available. The City would be purchasing the mixers directly from the source. Staff is requesting the City Council authorize the purchase of three new mixers and installation services from PAX Water Technologies for Reservoirs 5, 8, and 10 in the amount of $133,920.
7. ATTACHMENTS
· Contract with PAX Water Technologies
City of Orange Page 2 of 2 Printed on 11/8/2023
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CONTRACT
[Purchase and Installation of the PAX Mixer for Reservoirs 5, 10 and 10] THIS CONTRACT (the “Contract”) is made and entered into as of ______________, 2023 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and UGSI CHEMICAL FEED, INC., dba PAX WATER TECHNOLOGIES, a Delaware 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 designee); (2) The "Standard Specifications for Public Works Construction” (the “Greenbook”), and all amendments thereto, except the definition of “Subcontractor” in Section 1.2 (General – Terms and Definitions) of Part 1 (General Provisions) of the Greenbook, 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) Contractor’s 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, Greenbook 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 Greenbook, 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.” 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 1094
2 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 Senior Civil Engineer, Tuan Cao (“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, and 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 fifteen (15) days of the date of the issuance by City of a Notice to Proceed and diligently prosecute completion of the Work within Forty-five (45) calendar days from such date, unless legal extension is granted in accordance with the terms set forth in the Greenbook. 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 THIRTY-THREE THOUSAND NINE HUNDRED TWENTY DOLLARS and 00/100 ($133,920.00) 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 1095
3 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.
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 part thereof fail to 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 1096
4 “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”) that 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 quality. 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 Contract. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this 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 whatsoever. 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 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.
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 rates of wages to all such workers. The 1097
5 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.”
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 labor 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 Work 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 to 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 1098
6 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, 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 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.
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 accident, 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 directly 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.
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7 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.
(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 selfinsured 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:
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8 (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.
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 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.
The Workers’ Compensation policy 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.
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9 ARTICLE 13
Termination
City, acting through its City Manager or 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 costs 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.
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
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10 (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 Homeland 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 associated 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 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 jurisdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California.
ARTICLE 17
Integration and Amendment
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. 1103
11 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”
UGSI Chemical Feed, Inc. City of Orange
d.b.a. PAX Water Technologies 300 E. Chapman Avenue
1901 W. Garden Road Orange, CA 92866-1591
Vineland, NJ 08360
Attn: Guy Chadwell Attn: Jose M. Diaz
Telephone: (609) 579-7582 Telephone: (714) 288-2475
E-Mail: [email protected] E-Mail: [email protected] 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] 1104
12 “CITY”
CONTRACT, BONDS AND INSURANCE
APPROVED BY:
Nathalie Adourian
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”
UGSI CHEMICAL FEED, INC., dba PAX
WATER TECHNOLOGIES, a Delaware
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:
√
1105
Attachment No. 1
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 and 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 since 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 prevailing 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. 1107
Attachment No. 1
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) 1108
Attachment No. 1
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 contractor 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. 1109
Attachment No. 1
(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 1776for 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 1111
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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 journeyman, 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. 1112
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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 labormanagement 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. 1113
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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 calendar 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 undergo 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 1114
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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, if 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 subcontractor, 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 1115
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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 the 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 Industrial 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 solely for training apprentices. For purposes of this subparagraph, adequate records include, 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 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 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 1117
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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.
1118
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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 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. 1119
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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 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 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 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. 1120
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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 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 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. 1121
Agenda Item
City Council
Item #: 3.17. 11/14/2023 File #: 23-0723
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Final Acceptance of Annual Sewer Line Replacement / Maintenance FY 21-22; and authorization to file Notice of Completion.
2. SUMMARY
The project consisted of replacing aging sewer infrastructure, replacing pipes that are structurally deficient, improving pipeline capacity, and minimizing maintenance issues.
The project included the replacement of 6,189 linear feet of existing 6” sewer main with 8” main and 1,187 linear feet of existing 15” sewer main with 18” main. In addition, 625 linear feet of 24” reinforced concrete pipe storm drain was installed to accommodate the higher discharge volume from the Public Works Water Division’s future Well No. 29. The project also replaced 1,010 linear feet of 8” drain line that has been a constant maintenance issue with blockage and broken line in several locations on Denise Avenue. The City of Orange entered into a contract with Big Ben Inc. The work was completed to the satisfaction of the Public Works Department.
3. RECOMMENDED ACTION
Accept Annual Sewer Line Replacement / Maintenance FY 21-22 (Bid No. 21-22.18, S-245) as complete, and authorize staff to file Notice of Completion with the County Recorder.
4. ATTACHMENTS
· Notice of Completion and Acceptance.
City of Orange Page 1 of 1 Printed on 11/8/2023
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Agenda Item
City Council
Item #: 3.17. 11/14/2023 File #: 23-0723
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Final Acceptance of Annual Sewer Line Replacement / Maintenance FY 21-22; and authorization to file Notice of Completion.
2. SUMMARY
The project consisted of replacing aging sewer infrastructure, replacing pipes that are structurally deficient, improving pipeline capacity, and minimizing maintenance issues.
The project included the replacement of 6,189 linear feet of existing 6” sewer main with 8” main and 1,187 linear feet of existing 15” sewer main with 18” main. In addition, 625 linear feet of 24” reinforced concrete pipe storm drain was installed to accommodate the higher discharge volume from the Public Works Water Division’s future Well No. 29. The project also replaced 1,010 linear feet of 8” drain line that has been a constant maintenance issue with blockage and broken line in several locations on Denise Avenue. The City of Orange entered into a contract with Big Ben Inc. The work was completed to the satisfaction of the Public Works Department.
3. RECOMMENDED ACTION
Accept Annual Sewer Line Replacement / Maintenance FY 21-22 (Bid No. 21-22.18, S-245) as complete, and authorize staff to file Notice of Completion with the County Recorder.
4. ATTACHMENTS
· Notice of Completion and Acceptance.
City of Orange Page 1 of 1 Printed on 11/8/2023
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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 “Annual Sewer Replacement / Maintenance FY 2021-2022 (Bid No. 21-22.18; S-245)” (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 November 14, 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 Big Ben, a California corporation, with its principal office at 4790 Irvine Blvd, Irvine, State of California.
The name of the surety on the Labor and Material Bond for the Project is Markel Insurance Company, Illinois (Bond No. 4451201) in the amount of $3,076.950.00.
DATED as of the 14th day of November 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 14th day of November 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
1124
Agenda Item
City Council
Item #: 3.18. 11/14/2023 File #: 23-0736
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 Title 16 (Subdivisions) and Title 17 (Zoning) of the Orange Municipal Code by Enacting Ministerial Standards Applicable to Lot Splits in Single-Family Residential Zones Allowed as a Result of SB 9, enacting Ministerial Standards Applicable to the Location, Access, Size and Setback of Second Dwelling Units in Single-Family Residential Zones Allowed as a Result of SB 9, and Adding and Revising Definitions to Clarify Said Development Standards. Ordinance No. 15-23.
2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on October 24, 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. 15-23.
4. ATTACHMENTS
· Ordinance No. 15-23
City of Orange Page 1 of 1 Printed on 11/8/2023
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Agenda Item
City Council
Item #: 3.18. 11/14/2023 File #: 23-0736
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 Title 16 (Subdivisions) and Title 17 (Zoning) of the Orange Municipal Code by Enacting Ministerial Standards Applicable to Lot Splits in Single-Family Residential Zones Allowed as a Result of SB 9, enacting Ministerial Standards Applicable to the Location, Access, Size and Setback of Second Dwelling Units in Single-Family Residential Zones Allowed as a Result of SB 9, and Adding and Revising Definitions to Clarify Said Development Standards. Ordinance No. 15-23.
2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on October 24, 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. 15-23.
4. ATTACHMENTS
· Ordinance No. 15-23
City of Orange Page 1 of 1 Printed on 11/8/2023
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ORDINANCE NO. 15-23
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING TITLE 16
(SUBDIVISIONS) AND TITLE 17 (ZONING) OF THE
ORANGE MUNICIPAL CODE BY ENACTING
MINISTERIAL STANDARDS APPLICABLE TO LOT
SPLITS IN SINGLE-FAMILY RESIDENTIAL ZONES
ALLOWED AS A RESULT OF SB 9, ENACTING
MINISTERIAL STANDARDS APPLICABLE TO THE
LOCATION, ACCESS, SIZE AND SETBACK OF
SECOND DWELLING UNITS IN SINGLE-FAMILY
RESIDENTIAL ZONES ALLOWED AS A RESULT OF
SB 9, AND ADDING AND REVISING DEFINITIONS
TO CLARIFY SAID DEVELOPMENT STANDARDS.
WHEREAS, the Governor of the State of California signed into law legislation (“SB 9”), effective January 1, 2022, which generally requires the City to ministerially approve certain applications for a lot split on a single-family residentially-zoned property, which allows the creation of two half-sized lots where previously there was one lot; and WHEREAS, SB 9 also generally requires the City to ministerially approve certain applications to build a second unit on a single-family residentially-zoned property, which allows two residential dwellings on a single-family (R-1) lot where there was previously only one dwelling permitted; and
WHEREAS, the single-family residential (R-1) zones in the City, which include neighborhoods with lots ranging from 6,000 to 20,000 square feet, one acre, and one-and-a-half acres and up, were thoughtfully planned based on the goals of the General Plan of the City, the quality of life in single-family residential neighborhoods, the public safety resources, the utility and transportation infrastructure, City recreational resources, including parks and libraries, school district considerations, and many other elements associated with sound and established planning practices; and
WHEREAS, the City’s Zoning Code and General Plan also designate numerous duplex and multi-family residential zones allowing higher density housing opportunities, that were also carefully planned to ensure a high quality of life in multi-family residential neighborhoods, access to public safety resources, an efficient utility and transportation infrastructure, and an appropriate level of City recreational, park and library resources; and WHEREAS, SB 9 allows the City to impose certain objective requirements regulating said applications to split and/or to build additional residential units on a single-family residentiallyzoned property; and WHEREAS, on December 14, 2021, the City Council adopted interim Ordinance No. 18- 21, imposing development standards on lot split and second dwelling unit development projects 1127
2 submitted pursuant to SB 9, which Ordinance was effective for forty-five days; and on January 11, 2022, the City Council extended interim Ordinance No. 18-21 for an additional ten months and fifteen days, until December 13, 2022; and
WHEREAS, on November 15, 2022, the City Council extended interim Ordinance No. 18-21 with the adoption of interim Ordinance 18-21-B, continuing the imposition of development standards on lot split and second dwelling unit development projects submitted pursuant to SB 9, for an additional year, until December 13, 2023; and
WHEREAS, pursuant to Government Code Section 65858(a), no further extension of the interim Ordinance imposing development standards on lot split and second dwelling unit development projects submitted pursuant to SB 9, is available; and WHEREAS, on October 2, 2023, at a regularly scheduled public hearing noticed in accordance with Government Code Section 65090, the Planning Commission of the City of Orange recommended by a vote of 6 to 0 that the City Council of the City of Orange adopt Ordinance No. 15-23 imposing development standards on lot split and second dwelling unit development projects submitted pursuant to SB 9; and
WHEREAS, notice of a City Council of the City of Orange public hearing on the subject matter was published in a newspaper of general circulation in accordance with Government Code Section 65090; and
WHEREAS, the City Council of the City of Orange public hearing was held on October 24, 2023, to consider Ordinance No. 15-23; and
WHEREAS, this Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City’s environmental procedures, and has been found to be exempt, consistent with the findings in Section XXI of this Ordinance; and
WHEREAS, the City Council having considered the proposed revisions to the Orange Municipal Code (OMC) at a public hearing held on October 24, 2023, including review of the staff report, and having received public testimony on the item, therefore determine that Ordinance No. 15-23 incorporates reasonable development standards for lot split and second dwelling unit development projects submitted pursuant to SB 9, and the Ordinance would promote orderly development in the City necessary for the preservation of the public peace, health, safety and welfare of the community; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I:
That the recitals and findings contained herein are true and correct, incorporated herein, and with the public record, form the basis for the extension of this interim Ordinance. 1128
3 SECTION II:
Section 16.08.010.E of the Orange Municipal Code, “Subdivisions – Maps – General Provisions,” is hereby amended to read as follows:
E. The advisory agency with the power of final approval over the tentative parcel map, shall thereupon make a finding that the proposed division of land complies with all requirements of the Subdivision Map Act or this title, and all other resolutions and ordinances of this City, including, but not limited to, requirements concerning area, improvements and design, floodwater drainage control, appropriate improved public roads, sanitary disposal facilities, water supply availability, public safety facilities and environmental protection. For parcel maps submitted pursuant to SB 9, the Community Development Director shall approve or deny the application for a parcel map for an urban lot split ministerially without discretionary review.
SECTION III:
The title of Section 16.12.030 of the Orange Municipal Code, “Subdivisions – Procedure – Tentative Parcel Map – Staff Review Committee Approval,” is hereby amended to read as follows:
16.12.030 Tentative Parcel Map — Approval or Denial.
SECTION IV:
Section 16.12.030 of the Orange Municipal Code, “Subdivisions – Procedure – Tentative Parcel Map –Approval or Denial,” is hereby amended to add the following:
E. The Community Development Director shall have authority to approve all parcel map applications for an urban lot split proposed in a single-family residential zone, pursuant to SB
9. Approval shall be a ministerial action without discretionary review.
1. For approval of a parcel map, the Community Development Director shall find the following:
a. The parcel map subdivides an existing parcel to create no more than two (2) new parcels of approximately equal lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. b. Both newly created parcels are no smaller than 1,200 square feet. c. The parcel being subdivided meets all the following requirements:
i. The parcel is located within a single-family residential zone. ii. The parcel meets all requirements of Section
17.13.040.GGG.1.
1129
4 iii. The parcel has not been established through prior exercise of an urban lot split as provided for in SB 9.
iv. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot split as provided for in SB 9.
v. The parcel map conforms to all applicable objective
requirements of the Subdivision Map Act (commencing with Section 66410), except as otherwise expressly provided in SB 9.
d. In furtherance of the intent of SB 9 to create dwelling units, plans for units on a lot undergoing a parcel map application shall have received approval through the building permit plan check process and be ready for building permit issuance concurrently with final parcel map approval.
2. The Community Development Director shall place the following conditions on approval of the parcel map, as appropriate:
a. A requirement for easements for the provision of public safety services and facilities.
b. A requirement that the parcels have access to, provide access to, or adjoin the public right-of-way.
c. A requirement for off-street parking pursuant to the single-family residence parking requirement specified in Table 17.34.060.A, except as otherwise expressly provided under SB 9.
d. A requirement that the uses allowed on the lots be limited to residential uses.
3. The City shall not require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map.
4. The authority for denial of a parcel map submitted pursuant to SB 9 is the building official. For denial of a parcel map the building official shall make a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment, for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.
SECTION V:
Section 16.16.020 of the Orange Municipal Code, “Subdivisions – RequirementsDedications-Fees – Street, Alley and Easement Dedications,” is hereby amended to add the following:
1130
5 E. The City shall not require dedications of rights-of-way or the construction of offsite improvements for parcels created pursuant to SB 9. Easements for public safety services and facilities for such parcels may be required by the Community Development Director.
SECTION VI:
Section 16.16.170 of the Orange Municipal Code, “Subdivisions – RequirementsDedications-Fees – Soils Report Required,” is hereby amended to add the following:
D. For parcel maps submitted pursuant to SB 9, with residential units connected to an onsite wastewater treatment system, the applicant may submit a percolation test completed within the last five (5) years, or, if the percolation test has been recertified, within the last ten (10) years.
SECTION VII:
Section 17.04.021 of the Orange Municipal Code, “Zoning – Definitions – “B” Definitions,” is hereby amended to read as follows:
“Bedroom” - Any habitable room in a dwelling unit other than a bathroom, kitchen, dining room or living room with the following features: an interior door that can be closed or an opening into the room in which an interior door or double door can be easily installed; a window; and a closet or room for a wardrobe in addition to a bed. For planning development standards purposes, not to be confused with any building code standards, a room may be deemed not a bedroom if a floor to ceiling horizontal distance of at least 7 feet remains open and without any type of door and no closet exists.
SECTION VIII:
Section 17.04.023 of the Orange Municipal Code, “Zoning – Definitions – “D” Definitions,” is hereby amended to read as follows:
“Duplex or duplex residential” - An attached or detached building containing two dwelling units wherein the occupants of each individual dwelling unit are living and functioning together as a single housekeeping unit, meaning that they have established ties and familiarity with each other, jointly use common areas, interact with each other, share meals, household activities, expenses and responsibilities, membership in the single housekeeping unit is fairly stable as opposed to transient, and members have some control over who becomes a member of the single housekeeping unit. A property designated Duplex Residential is neither a single-family nor a multi-family property.
SECTION IX:
Section 17.04.025 of the Orange Municipal Code, “Zoning – Definitions – “F” Definitions,” is hereby amended to read as follows:
“Floor area ratio” (F.A.R. or FAR) - The building square footage divided by lot area.
Building square footage shall include all structures on a lot, including garages and accessory 1131
6 structures, unless otherwise provided in this Code. Parking structures and patio covers open on at least two sides shall not be included in the calculation of F.A.R. F.A.R. shall not include ADUs but ADUs shall count against future primary building additions and future accessory structures.
SECTION X:
Section 17.04.031 of the Orange Municipal Code, “Zoning – Definitions – “L” Definitions,” is hereby amended to read as follows:
LOT LINE, FRONT - In the case of an interior lot, the line dividing the lot from the street.
In the case of a corner lot or through lot, the shorter lot line abutting a street shall be deemed the front lot line and the longer lot line abutting a street shall be deemed an exterior side, unless determined otherwise by the Zoning Administrator. In the case of a through lot or a corner lot whose exterior lot lines are the same length, the lot line where the principal access to the lot is provided shall be deemed to be the front lot line. In the case of an interior lot, when the lot line abutting a street is curved, the front lot line follows the curve; for corner lots, separation of lines occurs at the middle of the curve. For a flag lot, the front lot line is the shortest lot line adjoining the pole portion of the lot including the width of the pole as shown in the figure that follows.
SECTION XI:
Section 17.04.038 of the Orange Municipal Code, “Zoning – Definitions – “S” Definitions,” is hereby amended to read as follows:
“Story, half” - One half-story as opposed to full story buildings are structures in which the top floor area is within the established roof line, and room heights within the half-story space conform to the California Building Code regulations for “habitable” space. The building has two floors of habitable rooms but appears as a one story structure from an architectural standpoint. The half-story may contain dormers. Within the Old Towne or established Historic District, the habitable space for the expansion of existing half-story structures and/or the new construction of half-story structures, including any dormers, shed roofs, and unfinished areas, shall not exceed sixty (60) percent of the gross floor area of the floor below. “Story, habitable” - A story maintaining room heights conforming to the California Building Code regulations for “habitable” space. Height-qualifying habitable stories shall be considered a story regardless of interior finish status. 1132
7 SECTION XII:
Section 17.10.060.D.1.b of the Orange Municipal Code, “Zoning – Specific Administrative Procedures – Site Plan Review – Minor Site Plan Review - Criteria,” is hereby amended to read as follows:
b. Construction of six (6) or fewer residential units on a single parcel, when only one parcel is being developed. Units constructed in single-family (R-1) districts pursuant to SB 9 shall not require site plan review under this section.
SECTION XIII:
Section 17.10.060.D.1.f of the Orange Municipal Code, “Zoning – Specific Administrative Procedures – Site Plan Review – Minor Site Plan Review - Criteria,” is hereby amended to read as follows:
f. Creation of lots or building sites with no direct access to a public street except for those units with access easements created to accommodate the construction of units pursuant to SB 9.
SECTION XIV:
Section 17.10.070.B.7 of the Orange Municipal Code, “Zoning – Specific Administrative Procedures – Design Review – When Design Review is Required - Exception,” is hereby added to read as follows:
7. Exception. Units created in a single-family (R-1) residential zone pursuant to SB 9 shall not require design review but shall instead meet all objective design review standards specified in Section 17.13.040.GGG and Chapter 17.14.
SECTION XV:
Table 17.13.030 of the Orange Municipal Code, “Zoning – Master Land Use Table – Permitted Uses,” is hereby amended to add the following:
[See next page]
1133
8 Table 17.13.030 Permitted Uses.
ZONING RESIDENTIAL COMMERCIAL MIXED USE INDUSTRIAL
AGRICULTURAL
OPEN SPACE PI OVERLAY
SAND &
GRAVEL
LAND
USE
R1-5R1-6Rto
-15
R1-20 toR-140 &R1-RR2-6 toR2-8R-3R-4MHOPCP/C1CTRC2C3CROTMU-15 S
OTMU-15OTMU-24NMU-24UMUM1M2A1ROSHPIFP-1FP-2SG
Housing—Includes all structures permitted as living quarters whether they be for short or long-term occupancy. Includes all uses identified in California Building Code definitions that are preceded with main entry words (key terms) that include one of the following: Dwelling, unit, house, housing, congregate, residence, multifamily, dormitory, home(s), hotel, motel, residential care facility, residential facility, or lodging.
Singlefamily
dwelling
P* P P P P P - P - - - - - P* P* P* - - - - P - - - - - - Singlefamily
dwelling
created
pursuant
to SB 9
P* P* P* - - - - - - - - - - - - - - - - - - - - - - - - 1134
9 SECTION XVI:
Section 17.13.040 of the Orange Municipal Code, “Zoning – Master Land Use Table – Special Use Regulations,” is hereby amended to add the following:
GGG. Single-family Dwelling Created Pursuant to SB 9.
1. Approval shall be subject to the proposed housing development meeting all the requirements of SB 9 which include:
a. The parcel is not located on a site specified in subparagraphs (B) to (K), inclusive, of Government Code Section 65913.4(a)(6) as summarized below:
i. Prime farmland, farmland or statewide importance, or land that is zoned or designated for agricultural protection or preservation by the voters. ii. A wetland
iii. Within a very high fire hazard severity zone, unless the site complies with all fire-hazard mitigation required by existing building standards. iv. A hazardous waste site that has cleared the site for residential use or residential mixed uses.
v. Within a delineated earthquake fault zone unless the development complies with applicable seismic protection building code standards. vi. Within a 100 year flood hazard area, unless it has either:
(I) Been subject to a Letter of Map Revision prepared
by the Federal Emergency Management Agency and
issued to the local jurisdiction, or
(II) Meets Federal Emergency Management Agency
requirements necessary to meet minimum flood plain
management criteria of the National Flood Insurance
Program.
vii. Within a regulatory floodway unless the development has received a no-rise certification.
viii. Land identified for conservation in an adopted natural community conservation plan or other adopted natural resource protection plan. ix. Habitat for protected species.
x. Land under conservation easement.
1135
10 b. The proposed housing development would not require demolition or alteration of any of the following types of housing:
i. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. ii. Housing that has been occupied by a tenant in the last three (3) years. c. The parcel subject to the proposed housing development is not a parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. d. Notwithstanding any provision in the Orange Municipal Code to the contrary, the proposed housing development does not allow the demolition of more than 25 percent of the existing exterior structural walls, unless the site has not been occupied by a tenant in the last three (3) years.
e. The development is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
2. The proposed housing development may be denied if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project or urban lot split would have a specific, adverse impact, as defined and determined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment, for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.
3. The ministerial approval may include the conditions for a parcel map specified in section 16.12.030.E, if applicable.
4. All rental units shall be rented for a term longer than 30 days.
5. An applicant for a parcel map to create an urban lot split shall sign an affidavit stating their intent to occupy one of the housing units as their principal residence for a minimum of three (3) years from the date of the approval of the urban lot split. Any “community land trust,” as defined in Revenue and Taxation Code Section 402.1(a)(11)(C)(ii), or a “qualified nonprofit corporation” as described in Revenue and Taxation Code Section 214.15, shall be exempt from the affidavit.
6. Separate conveyance of the resulting lots in an urban lot split is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the urban lot split boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. Separate conveyance of units within a lot resulting from an urban lot split shall be subject to the following:
1136
11 a. Primary dwelling units within a lot that is created by an urban lot split may not be owned or conveyed separately from each other. b. Condominium airspace divisions and common interest
developments are not permitted within a lot that is created by an urban lot split.
c. All fee interest within a lot and all dwellings on the lot must be held equally and undivided by all individual property owners.
7. Separate conveyance of units on an undivided lot is subject to the following:
a. Primary dwelling units on an undivided lot may not be owed or conveyed separately from each other.
b. Condominium airspace divisions and common interest
developments are not permitted within the undivided lot c. All fee interest in the undivided lot and all the dwellings on the undivided lot must be held equally and undivided by all individual property owners.
8. All development, design, and parcel map standards in this section and in Chapter
17.14 shall be applied to units created under SB 9, provided that at least an 800 square foot unit is allowed to be constructed.
9. The following objective design standards shall apply to all single-family dwellings created pursuant to SB 9 and to associated on-site improvements:
a. Units with identical building elevations and/or floor plans shall not be located on adjacent lots or directly across the street from each other. b. Design elements and detailing shall be continued completely around the structure. Such design elements shall include window treatments, trim detailing, exterior wall materials, and color pallet. Firewalls are not exempt from the required design elements. c. At least two (2) building materials shall be used on any building frontage (excluding roof and foundation) in addition to glazing and railings. Any one material shall comprise at least 20% of the building frontage.
d. At least two (2) exterior colors shall be used. Elements that count toward this requirement include cladding material, trim/accent colors, and visually significant colors for doors, and similar elements. Primary colors shall be used as accent colors only. e. Trash receptacles locations shall be identified on project plans and shall demonstrate screening from public view via equivalent-height landscaping or a solid wall or fence. 1137
12 f. The main entry shall not be the garage door and shall be prominently placed on the elevation facing the street.
g. Linear streetscape appearance in the building facade shall be avoided by providing variations in horizontal plane in a minimum of 50% of the building front and street side elevations. Variations shall include indentations, recesses, or projections of two (2) feet or greater.
Vertical architectural elements (pilasters, columns, piers, other structural elements) shall vertically project a minimum of eight (8) feet in height and project a minimum of eight (8) inches from the building face.
h. Units shall include a minimum three (3) element(s) from the following list to add visual variety and interest to building facades and enhance the connection between public and private realms: eaves, cornices, trellises, overhangs, exposed structural elements such as rafters, recessed windows, columns, bay windows. Other elements may be approved if they provide equivalent visual variety and interest.
i. Primary interior living spaces (bedroom and living areas) shall be offset a minimum eight (8) feet from a facing neighboring primary interior space on the same story. j. A minimum eight (8) feet shall be maintained between any primary interior living space (bedroom and living area) and an existing neighboring primary living space on the same story.
k. Trim surrounds shall be provided at all exterior window and door openings. Trim shall be substantial, visible, and at least two (2) inches in depth. l. Classical window proportions shall be provided such as 2:1, 3:2, or 4:3. m. No building facade may extend in a continuous plane for more than 20 feet without a window, door, variation in horizontal plane, or vertical architectural element. n. A minimum three (3) foot wide interior clear planter width landscaping shall be provided between the closest parallel property line to a driveway and the subject property. For flag lots, the planter shall only be required adjacent to the property not part of the project. Within the planter area, landscaping shall be maintained at a height of no greater than 42 inches to allow for line of sight to pedestrians and motorists for vehicles exiting the driveway. o. Driveways to required parking shall not be asphalt, shall be a minimum 12 feet in width, and shall be concrete, pavers, stone, brick, or similar material. No driveway shall be allowed for units that do not require an on-site covered parking space and are not electing to include covered parking. Controlled or restricted entrances to required or provided parking are prohibited.
SECTION XVII:
Section 17.14.060 of the Orange Municipal Code, “Zoning – Residential Districts – Reserved,” is hereby replaced with the following:
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13 17.14.060 - Units Created in a Single-family (R-1) Residential Zone Pursuant to SB 9.
The development standards specified in Section 17.13.040.GGG and Table 17.14.060 shall apply to dwelling units created under SB 9. In addition, the following shall apply:
A. In the event development standards physically preclude the construction of up to two (2) units or preclude either of the two (2) units from being at least 800 square feet in floor area, a minimum 800 square foot unit shall be allowed with code waivers chosen and authorized by the Community Development Director based on prioritizing preservation of neighborhood character and privacy to adjacent properties. The Director may consider waivers such as, but not limited to:
1. Allowing half basement construction to facilitate two-story construction no greater than 16 feet tall.
2. Allowing a reduced front yard setback.
3. Reducing distancing from an existing structure on the original parcel.
B. Parking shall be provided as specified in Chapter 17.34 C. One (1) bedroom is allowed for each five hundred (500) square foot increment of unit square feet. Increments are rounded up, e.g., a 1,001 square foot unit may have 3 bedrooms. Bedroom and bathroom square feet shall be limited to no greater than 63.5% of the total square feet of the unit.
Direct exterior access to bedrooms is prohibited, except for the largest bedroom.
D. All accessory structures, including garages, shall be subject to the provisions of Title 17, including but not limited to setbacks, floor area ratio, lot coverage, distancing from other structures, ratio of structures to dwelling, open space, and height.
Table 17.14.060
RESIDENTIAL DEVELOPMENT STANDARDS FOR UNITS CREATED IN A SINGLEFAMILY (R-1) RESIDENTIAL ZONE PURSUANT TO SB 9 [See next page]
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14 Table 17.14.060
RESIDENTIAL DEVELOPMENT STANDARDS FOR UNITS CREATED IN A SINGLE-FAMILY (R-1) RESIDENTIAL ZONE PURSUANT TO SB 9
District Maximum
Units Per Lot
Minimum
Lot Area in
Sq. Ft. (a)
Minimum
Lot Area Per
Unit in Sq.
Ft. (a)
Minimum
Lot Frontage
in Feet (b)
Minimum
Lot Depth in
Feet
Minimum Yard Setback in Feet
(c)(d)(e)
Maximum
Height (FeetStories)
whichever
height is less
Maximum
Floor Area
Ratio (f)
Minimum
Usable Open
Space in Sq.
Ft.
Front Side Rear
All R1
districts
4 (i) 1,200 (a) 30 40 20 4 4 16′ -1 story N/R (g) (h)
N/R = No requirement
(a) If the lot is created by a new parcel map and the parcel map subdivides an existing parcel to create no more than two (2) new parcels, the parcels shall be of approximately equal lot area, provided that one parcel shall not be smaller than 40% of the lot area of the original parcel proposed for subdivision. No lot shall be smaller than 1,200 square feet.
(b) The required width of the pole segment of a flag lot, or easement for access to a lot with required parking, shall be 15 feet, which includes the required 12-foot driveway width and a three-foot property line landscape buffer. Such width is also required for lots without required driveways and parking. A lesser or greater easement width may be authorized by the Community Development Director based on evidence justifying the adjustment. Units located further than Fire Department hose pull reach requirements shall provide a 20-foot wide easement for emergency vehicle access and a paved surface meeting Fire Code weight bearing requirements. (c) No setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. (d) An application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. Therefore, connected units may be authorized, including units connected to units on an adjacent lot pursuant to SB 9. (e) Garages are accessory structures. Attached garages shall adhere to setback requirements of each respective zoning district in Table 17.14.070. Detached garages and accessory structures shall adhere to the requirements of Section 17.14.160. (f) Where accessory structures are proposed or exist, including attached or detached garages, the maximum Floor Area Ratio (FAR) for accessory structures shall be calculated by combining the sum of square feet of the proposed unit, any existing units, and all accessory structures, and shall be limited by the district maximum FAR specified in Table 17.14.070.
1140
15 (g) In lieu of a Floor Area Ratio requirement, each unit shall be limited in square feet based on lot size as follows:
Lot Area in Square
Feet
Maximum Unit
Square Feet*
1,200 – 4,999 800 square feet
5,000 – 5,999 800 square feet
6,000 – 6,999 800 square feet
7,000 – 7,999 800 square feet
8,000 – 9,999 850 square feet
10,000 – 11,999 900 square feet
12,000 – 14,999 950 square feet
15,000 – 19,999 1,000 square feet
20,000 – 39,999 1,100 square feet
40,000 and greater 1,200 square feet
* Existing units may maintain existing FAR and lot coverage but any expansion shall comply with development standards in Table 17.14.070 (h) Minimum usable open space, as defined in Section 17.04.034, shall require the following square feet per district:
District
Minimum
Usable Open
Space in Sq.
Ft. (q)
R1-5 1,000 sf
R1-6 1,100 sf
R1-7 1,100 sf
R1-8 1,200 sf
R1-10 1,200 sf
R1-12 1,300 sf
R1-15 1,700 sf
R1-20 2,500 sf
R1-40 2,500 sf
1141
16 (i) Up to four (4) units are allowed which may consist of two (2) units on a lot or a primary dwelling and an accessory dwelling unit on a lot .However, all units must meet safety needs and all specified development standards.
1142
17 SECTION XVIII:
Table 17.14.070 of the Orange Municipal Code, “Zoning – Residential Districts – Residential Development Standards,” is hereby amended to read as follows:
Table 17.14.070
RESIDENTIAL DEVELOPMENT STANDARDS
[See next page]
1143
18 Table 17.14.070
RESIDENTIAL DEVELOPMENT STANDARDS
District Units
Per
Lot
Minimum
Lot Area in
Sq. Ft. (x)
Minimum
Lot Area
Per Unit in
Sq. Ft.
Minimum
Lot
Frontage in
Feet (a)
Minimum
Lot Depth in
Feet
Minimum Yard Setback in Feet (b,h) Maximum
Height (Ft.-
Stories)
whichever
is less (g)
Maximum
Floor Area
Ratio (o) or
Lot
Coverage
(p)
Minimum
Usable
Open
Space in
Sq. Ft. (q)
Front Side Rear
R1-5
(aa)
1 5,000(v.1) N/R 50(k) 90 Bld-15
Gar-20 (v.2)
(c,v.2) (v.2) 32′—2
stories
Based on
bldg.
pad(v.3.w)
875 sf
R1-6
(aa)
1 6,000 N/R 60(k) 100 20 5(c) 20(d,e,f) 32′—2
stories(y)
(u) 900 sf
R1-7
(aa)
1 7,000 N/R 60(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
(u) 950 sf
R1-8
(aa)
1 8,000 N/R 60(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
(u) 1,000 sf
R1-10
(aa)
1 10,000 N/R 80(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
(u) 1,000 sf
R1-12
(aa)
1 12,000 N/R 80(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
(u) 1,000 sf
R1-15
(aa)
1 15,000 N/R 80(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
(u) 1,200 sf
R1-20
(aa)
1 20,000 N/R 100(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
(u) 1,500 sf
R1-40
(aa)
1 43,560 N/R 100(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
0.40 FAR 2,000 sf
R1-R
(aa)
1 108,900 N/R 100(k) 100 20 5(c) 20(d,e,f) 32′—2
stories
0.40 FAR 2,000 sf
Notes:
(aa) For all units constructed or lots created pursuant to SB 9, apply the development standards in Table 17.14.060. 1144
19 SECTION XIX:
The first paragraph of Section 17.14.080 of the Orange Municipal Code, “Zoning – Residential Districts – Building Lot Area Requirements,” is hereby amended to read as follows:
Tables 17.14.060 and 17.14.070 indicate the minimum building lot area for individual lots.
The following portions of a lot shall not be included in the minimum building lot calculation:
SECTION XX:
The Single-family Dwelling Use provisions of Table 17.34.060.A of the Orange Municipal Code, “Zoning – Off-Street Parking and Loading – Required Number of Parking Spaces for Residential Uses,” is hereby amended to read as follows:
Table 17.34.060.A
REQUIRED NUMBER OF PARKING SPACES FOR RESIDENTIAL USES
USE REQUIRED NUMBER OF SPACES
Singlefamily
Dwelling
2 enclosed garage spaces/unit up to 4 bedrooms accessed by a 12 foot wide 20 foot long driveway. For 5 or more bedrooms, 1 additional enclosed space which may be in tandem configuration but may not be in a required front yard setback.
For bedroom additions to homes built prior to the effective date of Ordinance 17- 08, refer to Section 17.34.020(A). Enclosed spaces demolished or converted in association with construction of an accessory dwelling unit shall not require replacement.
For PUDs, units with 3 or more bedrooms shall provide an additional 1.5 guest parking spaces per dwelling unit. Of this requirement, 1 open parking space may be provided at the residence subject to compliance with Section 17.16.060.
Enclosed spaces demolished or converted in association with construction of an accessory dwelling unit shall not require replacement.
For dwelling units created under SB 9: one enclosed parking space, accessed by a 12 foot wide 20 foot long driveway, shall be provided for parcels unless they are located within ½ mile walking distance of either a high-quality transit corridor, a major transit stop, or within 1 block of a car share vehicle. No parking space shall be required for parcels within ½ mile walking distance of either a high-quality transit corridor, a major transit stop, or within 1 block of a car share vehicle.
SECTION XXI:
Section 17.38.080 of the Orange Municipal Code, “Zoning – Nonconforming Uses – Urban Lot Split (SB 9) Exception to Compliance (Nonconformities),” is hereby added to read as follows:
1145
20 17.38.080 Urban Lot Split (SB 9) Exception to Compliance (Nonconformities).
The City shall not require the correction of nonconforming zoning conditions as a condition for ministerial approval of a parcel map application for the creation of an urban lot split pursuant to SB 9.
SECTION XXII:
As stated in the California Department of Housing and Community Development SB 9 Fact Sheet: “…the preparation and adoption of the ordinance is not considered a project under CEQA. In other words, the preparation and adoption of the ordinance is statutorily exempt from CEQA.” The subject Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15060(c)(2), 15060(c)(3) and 15061(b)(3) because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility it will have a significant effect on the environment, and it is not a "project", as defined in Section 15378 of the State CEQA Guidelines. In the unlikely event the Ordinance would constitute a project under CEQA, it is exempt from the provisions of CEQA per State CEQA Guideline 15321 (Class 21, Enforcement Actions by Regulatory Agencies) because it is an action taken by the City as a regulatory agency, as authorized by local ordinance, to regulate as authorized by SB 9, the processing of lot splits and applications for construction of second dwelling units in single-family residential zones in order to prevent a public nuisance. As such, no further analysis is warranted or required. The proposed Ordinance is exempt from CEQA per Guideline 15061(b)(3) because it can be seen with certainty, after review and evaluation of the facts regarding parking standards in the City of Orange, that there is substantial evidence that adoption of this Ordinance would not have a significant effect on the environment and the common sense exemption applies.
SECTION XXIII:
This Ordinance is intended to immediately supersede any existing provisions of the Orange Municipal Code to the extent those existing provisions are inconsistent with this Ordinance.
SECTION XXIV:
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 interim Ordinance. The City Council hereby declares that it would have passed this interim 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. [Signatures on next page]
1146
21 ADOPTED this ____ day of ________________, 2023.
_____________________________________
Daniel R. Slater, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:
Michael J. Vigliotta, City Attorney
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
1147
Agenda Item
City Council
Item #: 3.19. 11/14/2023 File #: 23-0727
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Authorize continued rental services for portable restrooms and sinks with United Rentals (North America), Inc. for the HUB Resource Center.
2. SUMMARY
Request for City Council to authorize an increase of $22,000 to an existing purchase order with United Rentals (North America), Inc. bringing the total purchase order amount to $52,000.
3. RECOMMENDED ACTION
Approve an increase to a blanket purchase order for a total of $52,000 with United Rentals of California, Inc. for portable restroom and sink rentals.
4. FISCAL IMPACT
The total expenditure for this purchase order is $52,000 and will be funded through:
Home Fund (317) account number 317.9660.51670.30206 - Other Professional and Consulting Services
$43,553.41
General Fund (100) account number 100.00000.51670.30200 - Other Professional and Consulting Services-517 W. Struck Transit 8,446.59
Total: $52,000.00
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 Homeless Resource Center (HRC), located at 517 W. Struck Ave and operated by the HUB OC was established to provide services for the unhoused community. The City retained facility rentals in order to continue offering services to the community. Of the existing rentals, United Rentals (North America), Inc. (United Rentals) provides portable restrooms and sinks. The City opened a blanket Purchase Order (PO) with United Rentals for the maximum $30,000 to retain rental services for the first few months of the fiscal year.
Rental service for one year will cost approximately $52,000 total. This includes the rental, servicing, City of Orange Page 1 of 2 Printed on 11/8/2023
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Item #: 3.19. 11/14/2023 File #: 23-0727
Rental service for one year will cost approximately $52,000 total. This includes the rental, servicing, and any emergency call-outs for repairs and/or additional services. Therefore, staff is requesting that the City Council approve an additional $22,000 to the existing PO, bringing the total blanket PO amount to $52,000, which will fund these rental expenses through June 2024.
In Fiscal Year 2021, the American Rescue Plan Act of 2021 (ARP) appropriated $5 billion to provide housing, supportive services, and homeless prevention services to individuals experiencing homelessness and other vulnerable populations to jurisdictions that qualified for HOME Investment Partnership Program allocations. In Fiscal Year 2023, the City of Orange received $1,655,244 in HOME ARP funding in response to the allocation plan submitted by the City for the use of funds. The City Council and the Department of Housing and Urban Development (HUD) approved allocation plan allows for funding of services provided at the HRC; thus the City’s HOME ARP allocation will fund a large majority of this rental service
HOME ARP funding will be utilized first. The remaining funding will come from a General Fund (100) appropriation for the HRC approved through the Fiscal Year 2023-24 budget adoption process.
However, if other grant funding is available, staff will prioritize using other grant funds and reserve the General Fund appropriation. Additionally, the City is the recipient of $3 million in state funding for the HRC. This funding has not yet been received; however, should the grant regulations allow, the City may be able to use this funding toward these rental services.
7. ATTACHMENTS
· None
City of Orange Page 2 of 2 Printed on 11/8/2023
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Agenda Item
City Council
Item #: 3.19. 11/14/2023 File #: 23-0727
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Authorize continued rental services for portable restrooms and sinks with United Rentals (North America), Inc. for the HUB Resource Center.
2. SUMMARY
Request for City Council to authorize an increase of $22,000 to an existing purchase order with United Rentals (North America), Inc. bringing the total purchase order amount to $52,000.
3. RECOMMENDED ACTION
Approve an increase to a blanket purchase order for a total of $52,000 with United Rentals of California, Inc. for portable restroom and sink rentals.
4. FISCAL IMPACT
The total expenditure for this purchase order is $52,000 and will be funded through:
Home Fund (317) account number 317.9660.51670.30206 - Other Professional and Consulting Services
$43,553.41
General Fund (100) account number 100.00000.51670.30200 - Other Professional and Consulting Services-517 W. Struck Transit 8,446.59
Total: $52,000.00
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 Homeless Resource Center (HRC), located at 517 W. Struck Ave and operated by the HUB OC was established to provide services for the unhoused community. The City retained facility rentals in order to continue offering services to the community. Of the existing rentals, United Rentals (North America), Inc. (United Rentals) provides portable restrooms and sinks. The City opened a blanket Purchase Order (PO) with United Rentals for the maximum $30,000 to retain rental services for the first few months of the fiscal year.
Rental service for one year will cost approximately $52,000 total. This includes the rental, servicing, City of Orange Page 1 of 2 Printed on 11/8/2023
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Item #: 3.19. 11/14/2023 File #: 23-0727
Rental service for one year will cost approximately $52,000 total. This includes the rental, servicing, and any emergency call-outs for repairs and/or additional services. Therefore, staff is requesting that the City Council approve an additional $22,000 to the existing PO, bringing the total blanket PO amount to $52,000, which will fund these rental expenses through June 2024.
In Fiscal Year 2021, the American Rescue Plan Act of 2021 (ARP) appropriated $5 billion to provide housing, supportive services, and homeless prevention services to individuals experiencing homelessness and other vulnerable populations to jurisdictions that qualified for HOME Investment Partnership Program allocations. In Fiscal Year 2023, the City of Orange received $1,655,244 in HOME ARP funding in response to the allocation plan submitted by the City for the use of funds. The City Council and the Department of Housing and Urban Development (HUD) approved allocation plan allows for funding of services provided at the HRC; thus the City’s HOME ARP allocation will fund a large majority of this rental service
HOME ARP funding will be utilized first. The remaining funding will come from a General Fund (100) appropriation for the HRC approved through the Fiscal Year 2023-24 budget adoption process.
However, if other grant funding is available, staff will prioritize using other grant funds and reserve the General Fund appropriation. Additionally, the City is the recipient of $3 million in state funding for the HRC. This funding has not yet been received; however, should the grant regulations allow, the City may be able to use this funding toward these rental services.
7. ATTACHMENTS
· None
City of Orange Page 2 of 2 Printed on 11/8/2023
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Agenda Item
City Council
Item #: 3.20. 11/14/2023 File #: 23-0728
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Authorize continued rental services for mobile ADA shower stalls with Royal Restrooms of California, Inc. for the HUB Resource Center.
2. SUMMARY
Request for City Council to authorize an increase of $54,000 to an existing purchase order with Royal Restrooms of California, Inc. bringing the total purchase order amount to $84,000.
3. RECOMMENDED ACTION
Approve an increase to a blanket purchase order for a total of $84,000 with Royal Restrooms of California, Inc. for mobile shower rentals.
4. FISCAL IMPACT
The total expenditure for this purchase order is $84,000 and will be funded through the Home Fund (317) account number 317.9660.51670.30206 - Other Professional and Consulting Services.
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 Homeless Resource Center (HRC), located at 517 W. Struck Ave and operated by the HUB OC was established to provide services for the unhoused community. The City retained facility rentals in order to continue offering services to the community. Of the existing rentals, Royal Restrooms of California, Inc. (Royal Restrooms) provides ADA compliant shower stalls. The City opened a blanket Purchase Order (PO) with Royal Restrooms for the maximum $30,000 to retain rental services for the first few months of the fiscal year.
Rental services for one year will cost approximately $84,000 total. This includes the facility rental, servicing, and any emergency call-outs for repairs and/or additional services for unforeseen circumstances. Therefore, staff is requesting that the City Council approve an additional $54,000 to the existing PO, bringing the total blanket PO amount to $84,000, which will fund these rental expenses through June 2024. In Fiscal Year 2021 the American Rescue Plan Act of 2021 (ARP) appropriated $5 billion to provide housing, supportive services, and homeless prevention services to individuals experiencing homelessness and other vulnerable populations to jurisdictions that qualified City of Orange Page 1 of 2 Printed on 11/8/2023
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Item #: 3.20. 11/14/2023 File #: 23-0728
individuals experiencing homelessness and other vulnerable populations to jurisdictions that qualified for HOME Investment Partnership Program allocations. In Fiscal Year 2023, the City of Orange received $1,655,244 in HOME ARP funding in response to the allocation plan submitted by the City for the use of funds. The City Council and the Department of Housing and Urban Development (HUD) approved allocation plan allows for funding of services provided at the HRC; thus the City’s HOME ARP allocation will fund this rental service. The City is investigating the possibility of repairing the on-site showers at the HRC. In the event that these showers are repaired, and rental of the ADA shower units are no longer necessary, staff will liquidate the remaining amount of this blanket PO and the balance will return to the HOME ARP Fund (317) balance.
7. ATTACHMENTS
· None
City of Orange Page 2 of 2 Printed on 11/8/2023
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Agenda Item
City Council
Item #: 3.20. 11/14/2023 File #: 23-0728
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Authorize continued rental services for mobile ADA shower stalls with Royal Restrooms of California, Inc. for the HUB Resource Center.
2. SUMMARY
Request for City Council to authorize an increase of $54,000 to an existing purchase order with Royal Restrooms of California, Inc. bringing the total purchase order amount to $84,000.
3. RECOMMENDED ACTION
Approve an increase to a blanket purchase order for a total of $84,000 with Royal Restrooms of California, Inc. for mobile shower rentals.
4. FISCAL IMPACT
The total expenditure for this purchase order is $84,000 and will be funded through the Home Fund (317) account number 317.9660.51670.30206 - Other Professional and Consulting Services.
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 Homeless Resource Center (HRC), located at 517 W. Struck Ave and operated by the HUB OC was established to provide services for the unhoused community. The City retained facility rentals in order to continue offering services to the community. Of the existing rentals, Royal Restrooms of California, Inc. (Royal Restrooms) provides ADA compliant shower stalls. The City opened a blanket Purchase Order (PO) with Royal Restrooms for the maximum $30,000 to retain rental services for the first few months of the fiscal year.
Rental services for one year will cost approximately $84,000 total. This includes the facility rental, servicing, and any emergency call-outs for repairs and/or additional services for unforeseen circumstances. Therefore, staff is requesting that the City Council approve an additional $54,000 to the existing PO, bringing the total blanket PO amount to $84,000, which will fund these rental expenses through June 2024. In Fiscal Year 2021 the American Rescue Plan Act of 2021 (ARP) appropriated $5 billion to provide housing, supportive services, and homeless prevention services to individuals experiencing homelessness and other vulnerable populations to jurisdictions that qualified City of Orange Page 1 of 2 Printed on 11/8/2023
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Item #: 3.20. 11/14/2023 File #: 23-0728
individuals experiencing homelessness and other vulnerable populations to jurisdictions that qualified for HOME Investment Partnership Program allocations. In Fiscal Year 2023, the City of Orange received $1,655,244 in HOME ARP funding in response to the allocation plan submitted by the City for the use of funds. The City Council and the Department of Housing and Urban Development (HUD) approved allocation plan allows for funding of services provided at the HRC; thus the City’s HOME ARP allocation will fund this rental service. The City is investigating the possibility of repairing the on-site showers at the HRC. In the event that these showers are repaired, and rental of the ADA shower units are no longer necessary, staff will liquidate the remaining amount of this blanket PO and the balance will return to the HOME ARP Fund (317) balance.
7. ATTACHMENTS
· None
City of Orange Page 2 of 2 Printed on 11/8/2023
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Agenda Item
City Council
Item #: 3.21. 11/14/2023 File #: 23-0746
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. SUBJECT
Adoption of Resolution No. 11499 establishing criteria and meeting information for the Santiago Creek Commission.
2. SUMMARY
Resolution No. 11499 establishes the number of commissioners, commissioner qualifications, purpose/duties, compensation, and meeting dates for the newly formed Santiago Creek Commission.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 11499. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11492 and re-establishing the number of members, qualifications for membership, purpose, compensation, and meeting information for specified city boards, committees, and commissions.
2. Direct the City Clerk to post a Notice of Vacancy for the newly created positions pursuant to the Maddy Act, Government Code Section 54974.
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. b. Deliver high quality and safe recreational, educational, and cultural services.
6. DISCUSSION AND BACKGROUND
On September 26, 2023, the Orange City Council approved the Introduction and First Reading of Ordinance No 13-23, adding Chapter 2.62 to Title 2 of the Orange Municipal Code to establish a new advisory commission regarding Santiago Creek. Ordinance No. 13-23 was adopted by the City Council at the October 10, 2023, City Council meeting, and pursuant to California Government Code, went into effect 30 days thereafter. The newly formed commission has been tasked to:
· Advise and make recommendations to the City Council concerning the implementation of public projects in/along the Santiago Creek Area.
· Advise and make recommendations to the City Council concerning implementation of the City of Orange Page 1 of 2 Printed on 11/9/2023
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Item #: 3.21. 11/14/2023 File #: 23-0746
Santiago Creek Plans for the Santiago Creek Area regarding public property. · Advise and make recommendations to the City Council regarding preservation/enhancements of public open space within the Santiago Creek Area.
· Advise and make recommendations to the City Council on the acquisition of private property when it becomes available.
· Perform other duties (or refrain from performing duties) as prescribed by the City Council.
The proposed resolution will establish Santiago Creek Commission meeting dates, commissioner qualifications, compensation, and number of commissioners. As further detailed in Resolution No. 11499, the following is proposed for the Santiago Creek Commission:
· The Santiago Creek Commission will consist of seven members. · The term will be for four years.
· Santiago Creek Commissioners shall have primary residence in the City with general knowledge of the Santiago Creek area.
· There will be no compensation for serving on the Santiago Creek Commission. · Meetings will occur quarterly on the fourth Wednesday of January, April, July, and October with meetings beginning at 5:30 p.m.
7. ATTACHMENTS
· Resolution No. 11499
City of Orange Page 2 of 2 Printed on 11/9/2023
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Agenda Item
City Council
Item #: 3.21. 11/14/2023 File #: 23-0746
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. SUBJECT
Adoption of Resolution No. 11499 establishing criteria and meeting information for the Santiago Creek Commission.
2. SUMMARY
Resolution No. 11499 establishes the number of commissioners, commissioner qualifications, purpose/duties, compensation, and meeting dates for the newly formed Santiago Creek Commission.
3. RECOMMENDED ACTION
1. Adopt Resolution No. 11499. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11492 and re-establishing the number of members, qualifications for membership, purpose, compensation, and meeting information for specified city boards, committees, and commissions.
2. Direct the City Clerk to post a Notice of Vacancy for the newly created positions pursuant to the Maddy Act, Government Code Section 54974.
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. b. Deliver high quality and safe recreational, educational, and cultural services.
6. DISCUSSION AND BACKGROUND
On September 26, 2023, the Orange City Council approved the Introduction and First Reading of Ordinance No 13-23, adding Chapter 2.62 to Title 2 of the Orange Municipal Code to establish a new advisory commission regarding Santiago Creek. Ordinance No. 13-23 was adopted by the City Council at the October 10, 2023, City Council meeting, and pursuant to California Government Code, went into effect 30 days thereafter. The newly formed commission has been tasked to:
· Advise and make recommendations to the City Council concerning the implementation of public projects in/along the Santiago Creek Area.
· Advise and make recommendations to the City Council concerning implementation of the City of Orange Page 1 of 2 Printed on 11/9/2023
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Item #: 3.21. 11/14/2023 File #: 23-0746
Santiago Creek Plans for the Santiago Creek Area regarding public property. · Advise and make recommendations to the City Council regarding preservation/enhancements of public open space within the Santiago Creek Area.
· Advise and make recommendations to the City Council on the acquisition of private property when it becomes available.
· Perform other duties (or refrain from performing duties) as prescribed by the City Council.
The proposed resolution will establish Santiago Creek Commission meeting dates, commissioner qualifications, compensation, and number of commissioners. As further detailed in Resolution No. 11499, the following is proposed for the Santiago Creek Commission:
· The Santiago Creek Commission will consist of seven members. · The term will be for four years.
· Santiago Creek Commissioners shall have primary residence in the City with general knowledge of the Santiago Creek area.
· There will be no compensation for serving on the Santiago Creek Commission. · Meetings will occur quarterly on the fourth Wednesday of January, April, July, and October with meetings beginning at 5:30 p.m.
7. ATTACHMENTS
· Resolution No. 11499
City of Orange Page 2 of 2 Printed on 11/9/2023
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RESOLUTION NO. 11499
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE RESCINDING RESOLUTION
NO. 11492 AND RE-ESTABLISHING THE NUMBER
OF MEMBERS, QUALIFICATIONS FOR
MEMBERSHIP, PURPOSE, COMPENSATION AND
MEETING INFORMATION FOR SPECIFIED CITY
BOARDS, COMMITTEES AND COMMISSIONS.
WHEREAS, the City Council of the City of Orange creates boards, committees, and commissions and appoints members thereof to assist in carrying out of the City’s business and to further the public interest; and
WHEREAS, by Resolution No. 11492, the City Council established criteria and meeting times for such various boards, committees, and commissions; and WHEREAS, the City Council desires to set the criteria and meetings times of the Santiago Creek Commission.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:
• That Resolution No. 11492 is hereby repealed in its entirety. • As set forth in Exhibit A, effective November 14, 2023, the Santiago Creek Commission shall meet in regular session on the 4th Wednesday of January, April, July, and October, convening at 5:30 p.m. If such date is a legal holiday observed by the City, the meeting shall be held the following day. • The criteria for the remaining boards, committees, and commissions shall be as set forth in Exhibit A.
ADOPTED this ____ day of ____________________, 2023
Daniel R. Slater, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
1160
2 APPROVED AS TO FORM:
Mike Vigliotta, City Attorney
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
1161
Exhibit “A”
EXHIBIT A
QUALIFICATIONS FOR CITY COUNCIL CREATED
BOARDS, COMMITTEES AND COMMISSIONS
1. Community Development Block Grant Program Committee
• Number: The Committee shall consist of seven members. • Term: Two years.
• Qualifications: Members shall have their primary residence in the City.
Members shall show an interest in and knowledge of housing and community development issues, especially as they relate to affordable housing and public service for residents of low and moderate income. • Purpose: To provide a public engagement process in the allocation of CDBG funds as required by 24 C.F.R. Part 91.105
• Duties: As set forth in the CDBG Program Policies and Procedures Manual maintained by the City.
• Compensation: None.
• Meeting Dates: As determined by City staff.
2. Design Review Committee
• Number: The Committee shall consist of seven members. • Term: Four years.
• Qualifications: Members shall have their primary residence or primary place of employment in the City. Members shall be qualified to analyze and interpret architectural and site planning information, and shall include, but not be limited to, licensed landscape architects, architects, urban planners, engineers and licensed general contractors. At least two members shall have professional experience in urban planning, architectural history or historic preservation and possess a general knowledge of architecture in the City’s Historic Districts.
• Purpose: As set forth in Section 17.08.020.D of the Orange Municipal Code. • Duties: As set forth in Section 17.08.020.D of the Orange Municipal Code. • Compensation: $50 per meeting attended with a maximum of $200 per month.
• Meeting Dates: The 1st and 3rd Wednesday of each month convening at 5:30 p.m. If such date is a legal holiday observed by the City, the meeting shall be held the following day.
3. Investment and Audit Committee
• Number: The Committee shall consist of seven members: the City Treasurer and six representatives from the public.
• Term: Two years.
• Qualifications: Members shall have their primary residence or primary place of employment in the City. In addition, they must meet at least one of 1162
Exhibit “A”
the following criteria: (a) have the designation of Certified Public Accountant (CPA) or other business-related experience; and/or (b) have substantial education and demonstrated managerial experience of no less than five years in one or more of the following areas: investment banking, investment brokerage and sales, investment management, financial management and planning, or commercial banking. The qualifications of the applicants for the public representatives will be reviewed by the City Manager, the Finance Director, and an outside expert in finance, investments, or auditing who shall submit qualified applicants to the Mayor and City Council. The City Council shall endeavor to ensure that there is at least one citizen representative that meets the qualifications of criteria (a) above, and one citizen representative that meets the qualifications of criteria (b) above. No member of the Committee shall be financially interested in any contract, or otherwise conduct any business with any member of the City Council, the City Manager, the Finance Director, the City Treasurer, or the City or any of its agencies, either on an individual basis or as a partner, major shareholder, member, or employee of any firm.
• Purpose: The primary purpose of the Committee is to assist the City Council in discharging its responsibility for the overall stewardship of the City’s financial affairs, including determining that the City’s investments are consistent with the City’s investment policy’s principal objectives of safety first, liquidity second, and total rate of return third. The Committee reports to and acts as an advisory body to the City Council, and augments management’s accountability to the City Council. The Committee shall act solely as an advisory body and shall not exercise decision-making authority, nor shall it be involved in day-to-day financial and accounting operations of the City. The Committee shall not make, or direct City staff to make, any particular Investment, purchase any particular investment products, or do business with any particular investment companies, brokers, or advisors. • Duties: The Committee’s duties are to:
o Select the independent financial auditor for the financial statement audit;
o Monitor the progress and evaluate the results of the financial statement audit;
o Ensure the prompt and effective remedy of any control weaknesses and legal compliance violations identified in the course of the financial statement audit;
o Serve as a direct communications link between the City Council and the independent auditor;
o Monitor the adequacy of the City’s internal control structure on an ongoing basis, such as cash disbursements, cash receipting, treasury transactions, etc., as examined by the internal audit function and the independent financial auditor;
o Review results of contract compliance audits and financial statement reviews conducted by the City’s internal audit function, such as trash contracts, internal controls, and revenue audits; 1163
Exhibit “A”
o Review results of compliance audits and reviews conducted by outside agencies, such as Department of Transportation grants, M2 funds for the Senior Mobility program and the Ground Emergency Medical Transport (GEMT) supplemental reimbursement program; o Review the City’s Investment Policy annually and recommend revisions as necessary;
o Review the Treasurer’s Report as defined by the State of California Government Code Section 53646 to ensure conformance with the City’s Statement of Investment Policy and review related factors such as risk, diversification, and maturity;
o Provide advice regarding potential investment, potential investment strategies, and suitability of pools such as the Local Agency Investment Fund (LAIF);
o Provide written recommendations to the City Council;
o Maintain minutes of the Committee proceedings and report to the City Council quarterly.
• Compensation: None.
• Meeting Dates: Quarterly and additional meetings as needed on dates determined by City staff.
4. Park Planning and Community Events Commission
• Number: The Commission shall consist of seven members. • Term: Four years.
• Qualifications: Members shall have their primary residence in the City.
Members shall have knowledge of sports complexes and/or park development, and knowledge of City-sponsored events.
• Purpose: As set forth in Chapter 2.60 of the Orange Municipal Code. • Duties: As set forth in Chapter 2.60 of the Orange Municipal Code. • Compensation: None.
• Meeting Dates: The 3rd Tuesday of January, March, May, July, September, and October and convening at 5:30 p.m. If such date is a legal holiday observed by the City, the meeting shall be held the following Thursday.
5. Planning Commission
• Number: The Commission shall consist of seven members. • Term: Four years.
• Qualifications: Members shall have their primary residence in the City.
Members shall have general knowledge of land use and development. • Purpose: As set forth in Section 17.08.020.B
• Duties: Duties are set forth in Section 17.08.020 of the Orange Municipal Code.
• Compensation: $60 per meeting attended with a maximum of $240 per month.
1164
Exhibit “A”
• Meeting Dates: The 1st and 3rd Monday of each month convening at 5:30 p.m. If such date is a legal holiday observed by the City, the meeting shall be held the following Thursday.
6. Traffic Commission
• Number: The Commission shall consist of seven members. • Term: Four years.
• Qualifications: Members shall have their primary residence in the City. The Chief of Police or designee and the City Traffic Engineer or designee, shall be non-voting members of the Commission.
• Purpose: As set forth in Chapter 10.06 of the Orange Municipal Code. • Duties: As set forth in Chapter 10.06 of the Orange Municipal Code. • Compensation: None. Reimbursement for incidental expenses allowed. • Meeting Dates: The 2nd Wednesday of February, April, June, August, October, and December, convening at 5:30 p.m. If such date is a legal holiday observed by the City, the meeting shall be held the following day.
7. Santiago Creek Commission
• Number: The Commission shall consist of seven members. • Term: Four years.
• Qualifications: Members shall have their primary residence in the City.
Members shall have general knowledge of the Santiago Creek Area. • Purpose: As set forth in Chapter 2.62 of the Orange Municipal Code. • Duties: As set forth in Chapter 2.62 of the Orange Municipal Code. • Compensation: None.
• Meeting Dates: The 4th Wednesday January, April, July, and October, convening at 5:30 p.m. If such date is a legal holiday observed by the City, the meeting shall be held the following day.
1165
Agenda Item
City Council
Item #: 7.1. 11/14/2023 File #: 23-0732
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk
1. SUBJECT
Appointment of Orange County Mosquito and Vector Control District Board of Trustees representative.
2. SUMMARY
The term of office for the City’s current representative, Councilmember Jon Dumitru, expires on January 1, 2024. The Board is requesting that the City reappoint Councilmember Dumitru, or a successor to him, for the next term of office.
3. RECOMMENDED ACTION
Appoint a representative to the Orange County Mosquito and Vector Control District Board of Trustees for a term of two (or four) years commencing at noon January 1, 2024.
4. ATTACHMENTS
· Orange County Mosquito and Vector Control District letter City of Orange Page 1 of 1 Printed on 11/9/2023
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Agenda Item
City Council
Item #: 7.1. 11/14/2023 File #: 23-0732
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk
1. SUBJECT
Appointment of Orange County Mosquito and Vector Control District Board of Trustees representative.
2. SUMMARY
The term of office for the City’s current representative, Councilmember Jon Dumitru, expires on January 1, 2024. The Board is requesting that the City reappoint Councilmember Dumitru, or a successor to him, for the next term of office.
3. RECOMMENDED ACTION
Appoint a representative to the Orange County Mosquito and Vector Control District Board of Trustees for a term of two (or four) years commencing at noon January 1, 2024.
4. ATTACHMENTS
· Orange County Mosquito and Vector Control District letter City of Orange Page 1 of 1 Printed on 11/9/2023
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1168
Agenda Item
City Council
Item #: 8.1. 11/14/2023 File #: 23-0751
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 additional streets within Permit Parking Opportunity Areas #1 and #3. Resolution No. 11500.
2. SUMMARY
Several requests for permit parking were evaluated in accordance with the City’s Neighborhood Permit Parking Program. The proposals received adequate support from the affected property owners and were approved by the City Traffic Commission. The affected streets are located within Permit Parking Opportunity Areas (PPOA) #1 and #3 and have been combined together for City Council approval.
3. RECOMMENDED ACTION
1. Approve permit parking in PPOA #1 on:
· Both sides of Bedford Road between Culver Avenue and La Veta Avenue. · Both sides of Devon Road between Palmyra Avenue and Culver Avenue.
2. Approve permit parking in PPOA #3 on:
· Both sides of Mount Vernon Avenue between Wayfield Street and Le May Court. · Both sides of Park Lane between Mount Vernon Avenue and Sycamore Avenue. · Both sides of Martha Avenue east of Park Lane.
· Both sides of Sycamore Avenue between Wayfield Street and Highland Street. · Both sides of Highland Street between Sycamore Avenue and the south terminus.
3. Adopt Resolution No. 11500. 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
City of Orange Page 1 of 3 Printed on 11/9/2023
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Item #: 8.1. 11/14/2023 File #: 23-0751
None.
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’s). PPOA’s 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%. 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 of each PPOA.
Staff, after consulting with the City Attorney’s Office, believed it would be more efficient to combine multiple permit parking requests (in this case 3 City Traffic Commission agenda items) into a single City Council report. This deviates from the prior practice of presenting no more than one permit parking request at any Council meeting.
PPOA #1 (Bedford Road and Devon Road)
After receiving written requests for permit parking from eligible residents, staff mailed petition packages to affected property owners. The returned petitions indicate that 55 and 60 percent of the property owners, respectively, on the segments of Bedford Road and Devon Road, respectively, support permit parking.
Because the level of support meets the minimum required 55% stipulated in the NPPP, the City Traffic Commission approved permit parking and forwarding to City Council for final approval.
PPOA #3 (Mount Vernon Avenue, Park Lane, Martha Avenue, Sycamore Avenue, and Highland Avenue)
After receiving requests for permit parking from eligible residents, staff mailed petition packages to affected property owners. The returned petitions indicate support for permit parking as follows: 85% on Mt. Vernon Avenue; 68% on Park Lane; 75% on Martha Avenue; 62% on Sycamore Avenue; and 66% on Highland Street.
Because the level of support meets the minimum required 55% stipulated in the NPPP, the City Traffic Commission approved permit parking and forwarding to City Council for final approval.
It should be noted that property owners of any other street(s) within PPOA #1 may request permit parking in the future by following the procedures described above. PPOA #3 will, with this approval, be fully “activated.” Lastly, permit parking does not supersede other parking restrictions such as street sweeping. Participation is voluntary; however, once implemented, any vehicle parked on the City of Orange Page 2 of 3 Printed on 11/9/2023
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Item #: 8.1. 11/14/2023 File #: 23-0751
street without a permit is subject to citation.
7. ATTACHMENTS · NPPP Policy, August 2022
· Resolution No. 11500
· Area Map PPOA #1
· Activation Map PPOA #1
· Area Map PPOA #3
· Activation Map PPOA #3
· August 9, 2023, CTC Staff Report - Devon Rd.
· August 9, 2023, CTC Minutes
· October 11, 2023, CTC Staff Report - Bedford
· October 11, 2023, CTC Staff Report - Mt. Vernon Neighborhood · October 11, 2023, CTC Draft Minutes
· Notification Letters
City of Orange Page 3 of 3 Printed on 11/9/2023
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Agenda Item
City Council
Item #: 8.1. 11/14/2023 File #: 23-0751
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 additional streets within Permit Parking Opportunity Areas #1 and #3. Resolution No. 11500.
2. SUMMARY
Several requests for permit parking were evaluated in accordance with the City’s Neighborhood Permit Parking Program. The proposals received adequate support from the affected property owners and were approved by the City Traffic Commission. The affected streets are located within Permit Parking Opportunity Areas (PPOA) #1 and #3 and have been combined together for City Council approval.
3. RECOMMENDED ACTION
1. Approve permit parking in PPOA #1 on:
· Both sides of Bedford Road between Culver Avenue and La Veta Avenue. · Both sides of Devon Road between Palmyra Avenue and Culver Avenue.
2. Approve permit parking in PPOA #3 on:
· Both sides of Mount Vernon Avenue between Wayfield Street and Le May Court. · Both sides of Park Lane between Mount Vernon Avenue and Sycamore Avenue. · Both sides of Martha Avenue east of Park Lane.
· Both sides of Sycamore Avenue between Wayfield Street and Highland Street. · Both sides of Highland Street between Sycamore Avenue and the south terminus.
3. Adopt Resolution No. 11500. 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
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Item #: 8.1. 11/14/2023 File #: 23-0751
None.
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’s). PPOA’s 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%. 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 of each PPOA.
Staff, after consulting with the City Attorney’s Office, believed it would be more efficient to combine multiple permit parking requests (in this case 3 City Traffic Commission agenda items) into a single City Council report. This deviates from the prior practice of presenting no more than one permit parking request at any Council meeting.
PPOA #1 (Bedford Road and Devon Road)
After receiving written requests for permit parking from eligible residents, staff mailed petition packages to affected property owners. The returned petitions indicate that 55 and 60 percent of the property owners, respectively, on the segments of Bedford Road and Devon Road, respectively, support permit parking.
Because the level of support meets the minimum required 55% stipulated in the NPPP, the City Traffic Commission approved permit parking and forwarding to City Council for final approval.
PPOA #3 (Mount Vernon Avenue, Park Lane, Martha Avenue, Sycamore Avenue, and Highland Avenue)
After receiving requests for permit parking from eligible residents, staff mailed petition packages to affected property owners. The returned petitions indicate support for permit parking as follows: 85% on Mt. Vernon Avenue; 68% on Park Lane; 75% on Martha Avenue; 62% on Sycamore Avenue; and 66% on Highland Street.
Because the level of support meets the minimum required 55% stipulated in the NPPP, the City Traffic Commission approved permit parking and forwarding to City Council for final approval.
It should be noted that property owners of any other street(s) within PPOA #1 may request permit parking in the future by following the procedures described above. PPOA #3 will, with this approval, be fully “activated.” Lastly, permit parking does not supersede other parking restrictions such as street sweeping. Participation is voluntary; however, once implemented, any vehicle parked on the City of Orange Page 2 of 3 Printed on 11/9/2023
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Item #: 8.1. 11/14/2023 File #: 23-0751
street without a permit is subject to citation.
7. ATTACHMENTS · NPPP Policy, August 2022
· Resolution No. 11500
· Area Map PPOA #1
· Activation Map PPOA #1
· Area Map PPOA #3
· Activation Map PPOA #3
· August 9, 2023, CTC Staff Report - Devon Rd.
· August 9, 2023, CTC Minutes
· October 11, 2023, CTC Staff Report - Bedford
· October 11, 2023, CTC Staff Report - Mt. Vernon Neighborhood · October 11, 2023, CTC Draft Minutes
· Notification Letters
City of Orange Page 3 of 3 Printed on 11/9/2023
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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 intrusion of college-oriented, commercial, institutional, multifamily 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 singlefamily 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 on 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 the 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.
1175
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 orindustrial 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 number 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.
1176
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. 1177
RESOLUTION NO. 11500
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 26, 2023 (Resolution No. 11495), containing a list of all permit parking areas within the City; and
WHEREAS, staff now recommends amending Parking Permit Opportunity Area “1”, Parking Permit Opportunity Area “3” and Parking Permit Opportunity Area “5” to add certain streets to these Parking Permit Opportunity Areas within the City of Orange; and WHEREAS, accordingly, the City Council desires to rescind Resolution No. 11495 and replace it with a revised Resolution containing all areas designated for permit-parking, and amending Parking Permit Opportunity Areas “1”, “3” and “5”, 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. 11495, adopted September 26, 2023, is hereby rescinded, effective immediately upon the date of the adoption of Resolution No. 11500. 1178
2 SECTION II:
The following streets be included to the permit parking program Opportunity Area “1”:
Both sides of Bedford Rd. between Culver Ave. and La Veta Ave.
Both sides of Devon Rd. between Palmyra Ave. and Culver Ave.
The following streets be included to the permit parking program Opportunity Area “3”:
Both sides of Mount Vernon Ave. between Wayfield St. and La May Ct.
Both sides of Park Ln. between Mount Vernon Ave. and Sycamore Ave.
Both sides of Martha Ave. east of Park Ln.
Both sides of Sycamore Ave. between Wayfield St. and Highland St.
Both sides of Highland St. between Sycamore Ave. and south terminus.
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
APPROVED AS TO FORM:
Mike Vigliotta, City Attorney
1179
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 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
1180
Exhibit A
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 land 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. 1181
Exhibit A
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. 1182
Exhibit A
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 La Veta Ave.
6. North side of La Veta 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. 1183
Exhibit A
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 La Veta 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.
1184
Exhibit A
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. 1185
Exhibit A
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.
4. Both sides of Bedford Rd. between Culver Ave. and La Veta Ave.
5. Both sides of Devon Rd. between Palmyra Ave. and Culver Ave.
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.
5. Both sides of Mount Vernon Ave. between Wayfield St. and La May Ct.
6. Both sides of Park Ln. between Mount Vernon Ave. and Sycamore Ave.
7. Both sides of Martha Ave. east of Park Ln.
8. Both sides of Sycamore Ave. between Wayfield St. and Highland St.
9. Both sides of Highland St. between Sycamore Ave. and south terminus.
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. 1186
Exhibit A
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. 1187
1188
1189
1190
1191
1192
1193
1194
1195
1196
1197
1198
1199
1200
1201
1202
1203
1204
1205
1206
1207
1208
1209
1210
1211
1212
1213
1214
1215
1216
1217
1218
1219
1220
Draft
1221
Draft
1222
Draft
1223
Draft
1224
Draft
1225
1226
1227
Agenda Item
City Council
Item #: 8.2. 11/14/2023 File #: 23-0739
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
Consideration of a Tenant Based Rental Assistance Program for security and utilities deposit rental assistance to be funded out of the HOME Investment Partnerships Program.
2. SUMMARY
The U.S. Department of Housing and Urban Development (HUD) requires the City to prepare a fiveyear strategic plan, the Consolidated Plan, for Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds that includes an Action Plan for use of the funds. The proposed Tenant Based Rental Assistance Program is identified in the City’s 2023-2024 Action Plan.
The CDBG Committee has recommended allocation of a portion of the City’s HOME funding to establish a program that assists qualifying households with security and utility deposit rental assistance.
3. RECOMMENDED ACTION
Direct staff to establish a program that includes:
1. Security deposit assistance to qualifying households.
2. Utility deposit assistance to qualifying households.
3. Participant referral from a supportive services organization serving residents of the City of Orange as part of the qualification criteria for applying for the Tenant Based Rental Assistance Program.
4. A preference criterion (in order of preference):
a. Current City of Orange resident with intention to continue to reside in the City of Orange;
b. Families with children under 12;
c. Veterans with honorable discharge; and
d. Elderly as defined by the Social Security Administration for full retirement qualification
5. Security and utility deposits be paid directly to the landlord or property manager and any remaining funds at the end of residency be returned to the City as Program Income.
6. The security and utility deposit assistance be defined as a grant, with any remaining funds at the end of tenancy returned by the landlord directly to the City as program income.
4. FISCAL IMPACT
The total expenditure for this program is $150,000 and will be funded through HOME (317) and is included as part of the approved 2023-2024 City budget and Community Development Block Grant City of Orange Page 1 of 3 Printed on 11/9/2023
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Item #: 8.2. 11/14/2023 File #: 23-0739
included as part of the approved 2023-2024 City budget and Community Development Block Grant 2023-2024 Annual Action Plan.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c: Support and enhance attractive, diverse living environments.
6. DISCUSSION AND BACKGROUND
On March 11, 2021, the American Rescue Plan (ARP) was passed in response to the COVID-19 pandemic. Congress appropriated $5 billion in ARP funds to be administered through the HOME Investment Partnerships Program (HOME) and authorized the Department of Housing and Urban Development (HUD) to distribute the funds to participating jurisdictions (PJ) that qualified for an allocation of HOME funds in Fiscal Year (FY) 2021, of which Orange was a recipient.
On September 20, 2021, the City was notified that it was allocated $1,655,186 in HOME-ARP funds.
In order to access the funds, the City developed a HOME-ARP Allocation Plan (Plan) that described the consultation and public participation process that the City engaged in developing the Plan and outlines how the City will use HOME-ARP funds. The Plan was approved by HUD on May 8, 2023.
To meet the housing requirement of the HOME-ARP grant and address some of the housing assistance needed within the City, the Plan proposed to establish a Tenant Based Rental Assistance (TBRA) Program with its annual HOME entitlement funds. A TBRA Program is a rental subsidy to assist individual households afford housing costs such as rent or security deposits.
On May 9, 2023, the City approved $150,000 for a TBRA Program as part of its 2023-2024 Annual Action Plan using HOME entitlement funds. The Annual Action Plan is required by HUD and outlines the City’s intent for the use of funds in a given entitlement year.
On September 21, 2023, the CDBG Committee convened to review different options for a TBRA Program based on the below budget breakdown:
· $15,000 for consultant support. As a new program, consultant support will be required to set up the program, develop agreements with applicants, and assist with compliance in the first year;
· $7,500 for City staff time. Staff time for administering the program and code enforcement time for inspecting rental units;
· $127,500 for rental assistance.
· The approximate cost breakdown for assistance is as follows:
o Security Deposit: $5,100 per household
o Utility Deposit: $255 per household
o Month to Month rental assistance: $25,000 - $30,000 (depending on income) The following comparisons were also taken into consideration:
Month to Month Rental Assistance Security Deposit Assistance Funding for approximately 5 households Funding for approximately 25 households Requires significantly more staff time to
monitor
More sustainable with current staffing as it
is a one-time allowance
Continuous until household no longer
qualifies - City required to continue
assistance
Identified by Fair Housing Foundation as a
priority need
City of Orange Page 2 of 3 Printed on 11/9/2023
powered by Legistar™1229
Item #: 8.2. 11/14/2023 File #: 23-0739 Month to Month Rental Assistance Security Deposit Assistance Funding for approximately 5 households Funding for approximately 25 households Requires significantly more staff time to
monitor
More sustainable with current staffing as it
is a one-time allowance
Continuous until household no longer
qualifies - City required to continue
assistance
Identified by Fair Housing Foundation as a
priority need
Not a loan - no return Can be returned to City as Program Income at end of residency
The CDBG Committee recommends that the City Council establish a TBRA Program for security and utility deposit assistance because it would assist a greater number of households and would not obligate the City to provide the assistance in perpetuity. Additionally, the Committee voted to recommend that a referral from the Hub Resource Center (HRC) be required to apply for funds and assistance be paid directly to the landlord or management company. Furthermore, the Committee moved to set preference for the following applicants:
1. Current City of Orange resident with intention of remaining in the City of Orange;
2. Families with children;
3. Veterans with honorable discharge; and
4. Elderly as defined by retirement or social security requirements.
To further define the criteria set forth in the preferences, staff recommends including “children under the age of 12” in the criteria for “families with children” and to define elderly as defined by the “Social Security Administration for full retirement age”
to avoid any confusion. Furthermore, staff recommends amending the requirement of a referral from the HRC to a referral from a supportive services organization serving the residents of the City of Orange (i.e. HRC, Housing Authority, Fair Housing, etc.) Additionally, staff is recommending that any funds to be reimbursed at the end of the tenant’s residency be returned directly to the City as Program Income to be used for future TBRA assistance or affordable housing development projects.
Upon approval, staff will return to the City Council at a later date to amend the 2020-2024 Consolidated Plan to add a TBRA program. The Consolidated Plan is required every five years by HUD and is designed to assist PJs assess their affordable housing and community development needs and market conditions. Moreover, the Consolidated Plan sets the priority goals for the yearly HUD entitlement funds received by the City.
7. ATTACHMENTS
· None.
City of Orange Page 3 of 3 Printed on 11/9/2023
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Agenda Item
City Council
Item #: 8.2. 11/14/2023 File #: 23-0739
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
Consideration of a Tenant Based Rental Assistance Program for security and utilities deposit rental assistance to be funded out of the HOME Investment Partnerships Program.
2. SUMMARY
The U.S. Department of Housing and Urban Development (HUD) requires the City to prepare a fiveyear strategic plan, the Consolidated Plan, for Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds that includes an Action Plan for use of the funds. The proposed Tenant Based Rental Assistance Program is identified in the City’s 2023-2024 Action Plan.
The CDBG Committee has recommended allocation of a portion of the City’s HOME funding to establish a program that assists qualifying households with security and utility deposit rental assistance.
3. RECOMMENDED ACTION
Direct staff to establish a program that includes:
1. Security deposit assistance to qualifying households.
2. Utility deposit assistance to qualifying households.
3. Participant referral from a supportive services organization serving residents of the City of Orange as part of the qualification criteria for applying for the Tenant Based Rental Assistance Program.
4. A preference criterion (in order of preference):
a. Current City of Orange resident with intention to continue to reside in the City of Orange;
b. Families with children under 12;
c. Veterans with honorable discharge; and
d. Elderly as defined by the Social Security Administration for full retirement qualification
5. Security and utility deposits be paid directly to the landlord or property manager and any remaining funds at the end of residency be returned to the City as Program Income.
6. The security and utility deposit assistance be defined as a grant, with any remaining funds at the end of tenancy returned by the landlord directly to the City as program income.
4. FISCAL IMPACT
The total expenditure for this program is $150,000 and will be funded through HOME (317) and is included as part of the approved 2023-2024 City budget and Community Development Block Grant City of Orange Page 1 of 3 Printed on 11/9/2023
powered by Legistar™1231
Item #: 8.2. 11/14/2023 File #: 23-0739
included as part of the approved 2023-2024 City budget and Community Development Block Grant 2023-2024 Annual Action Plan.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c: Support and enhance attractive, diverse living environments.
6. DISCUSSION AND BACKGROUND
On March 11, 2021, the American Rescue Plan (ARP) was passed in response to the COVID-19 pandemic. Congress appropriated $5 billion in ARP funds to be administered through the HOME Investment Partnerships Program (HOME) and authorized the Department of Housing and Urban Development (HUD) to distribute the funds to participating jurisdictions (PJ) that qualified for an allocation of HOME funds in Fiscal Year (FY) 2021, of which Orange was a recipient.
On September 20, 2021, the City was notified that it was allocated $1,655,186 in HOME-ARP funds.
In order to access the funds, the City developed a HOME-ARP Allocation Plan (Plan) that described the consultation and public participation process that the City engaged in developing the Plan and outlines how the City will use HOME-ARP funds. The Plan was approved by HUD on May 8, 2023.
To meet the housing requirement of the HOME-ARP grant and address some of the housing assistance needed within the City, the Plan proposed to establish a Tenant Based Rental Assistance (TBRA) Program with its annual HOME entitlement funds. A TBRA Program is a rental subsidy to assist individual households afford housing costs such as rent or security deposits.
On May 9, 2023, the City approved $150,000 for a TBRA Program as part of its 2023-2024 Annual Action Plan using HOME entitlement funds. The Annual Action Plan is required by HUD and outlines the City’s intent for the use of funds in a given entitlement year.
On September 21, 2023, the CDBG Committee convened to review different options for a TBRA Program based on the below budget breakdown:
· $15,000 for consultant support. As a new program, consultant support will be required to set up the program, develop agreements with applicants, and assist with compliance in the first year;
· $7,500 for City staff time. Staff time for administering the program and code enforcement time for inspecting rental units;
· $127,500 for rental assistance.
· The approximate cost breakdown for assistance is as follows:
o Security Deposit: $5,100 per household
o Utility Deposit: $255 per household
o Month to Month rental assistance: $25,000 - $30,000 (depending on income) The following comparisons were also taken into consideration:
Month to Month Rental Assistance Security Deposit Assistance Funding for approximately 5 households Funding for approximately 25 households Requires significantly more staff time to
monitor
More sustainable with current staffing as it
is a one-time allowance
Continuous until household no longer
qualifies - City required to continue
assistance
Identified by Fair Housing Foundation as a
priority need
City of Orange Page 2 of 3 Printed on 11/9/2023
powered by Legistar™1232
Item #: 8.2. 11/14/2023 File #: 23-0739 Month to Month Rental Assistance Security Deposit Assistance Funding for approximately 5 households Funding for approximately 25 households Requires significantly more staff time to
monitor
More sustainable with current staffing as it
is a one-time allowance
Continuous until household no longer
qualifies - City required to continue
assistance
Identified by Fair Housing Foundation as a
priority need
Not a loan - no return Can be returned to City as Program Income at end of residency
The CDBG Committee recommends that the City Council establish a TBRA Program for security and utility deposit assistance because it would assist a greater number of households and would not obligate the City to provide the assistance in perpetuity. Additionally, the Committee voted to recommend that a referral from the Hub Resource Center (HRC) be required to apply for funds and assistance be paid directly to the landlord or management company. Furthermore, the Committee moved to set preference for the following applicants:
1. Current City of Orange resident with intention of remaining in the City of Orange;
2. Families with children;
3. Veterans with honorable discharge; and
4. Elderly as defined by retirement or social security requirements.
To further define the criteria set forth in the preferences, staff recommends including “children under the age of 12” in the criteria for “families with children” and to define elderly as defined by the “Social Security Administration for full retirement age”
to avoid any confusion. Furthermore, staff recommends amending the requirement of a referral from the HRC to a referral from a supportive services organization serving the residents of the City of Orange (i.e. HRC, Housing Authority, Fair Housing, etc.) Additionally, staff is recommending that any funds to be reimbursed at the end of the tenant’s residency be returned directly to the City as Program Income to be used for future TBRA assistance or affordable housing development projects.
Upon approval, staff will return to the City Council at a later date to amend the 2020-2024 Consolidated Plan to add a TBRA program. The Consolidated Plan is required every five years by HUD and is designed to assist PJs assess their affordable housing and community development needs and market conditions. Moreover, the Consolidated Plan sets the priority goals for the yearly HUD entitlement funds received by the City.
7. ATTACHMENTS
· None.
City of Orange Page 3 of 3 Printed on 11/9/2023
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Agenda Item
City Council
Item #: 10.1. 11/14/2023 File #: 23-0667
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
Report from the Finance Director of the Industrial Development Authority of the City of Orange.
2. SUMMARY
The Bylaws of the Industrial Development Authority require that a report of the Authority’s activities for the prior fiscal year be presented to the Board of Directors by December of each year.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
e: Create an environment to attract, retain, and expand economic opportunities.
6. DISCUSSION AND BACKGROUND
The California Industrial Development Financing Advisory Commission (CIDFAC) administers the State’s Industrial Development Bond Financing Program and approves issuance of Industrial Development Bonds (IDB). IDBs provide manufacturing and processing companies low-cost, lowinterest financing for capital expenditures. Eligible capital expenditures include the acquisition of land, building construction, building renovation and the purchase of machinery and equipment. CIDFAC is a state agency within the California State Treasurer's Office.
The Industrial Development Authority (IDA) of the City of Orange was established in 1997 to provide an alternate method of financing for Control Air Conditioning (Control Air) to relocate its manufacturing facility into Orange. The IDA was the issuer for tax-exempt industrial development bonds in the amount of $5 million on behalf of Control Air in May 1997. The IDA only acted as a conduit for issuance of the bonds. It was the sole responsibility of Control Air to repay the bondholders.
In 2004, Control Air needed to expand its operation but was unable to find a suitable expansion location in Orange. In November 2004, Control Air relocated its manufacturing facility to Anaheim and subsequently sold its property in Orange. Control Air was required to repay the bonds in full. In City of Orange Page 1 of 2 Printed on 11/9/2023
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Item #: 10.1. 11/14/2023 File #: 23-0667
December 2004, the bonds were repaid.
In 2023, there were no outstanding bonds issued by the IDA. Staff recommends the continuation of the IDA as it is a unique economic development tool that offers industrial and manufacturing businesses an alternative source of financing for land acquisition, construction, and rehabilitation in Orange, through the State’s Industrial Development Bond Financing Program.
Agency staff continues to promote the IDA program and benefits through the City’s Economic Development website, outreach to the brokerage community specializing in industrial and manufacturing tenants, and ongoing communication with local manufacturing businesses in Orange.
7. ATTACHMENTS
· None
City of Orange Page 2 of 2 Printed on 11/9/2023
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Agenda Item
City Council
Item #: 10.1. 11/14/2023 File #: 23-0667
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
Report from the Finance Director of the Industrial Development Authority of the City of Orange.
2. SUMMARY
The Bylaws of the Industrial Development Authority require that a report of the Authority’s activities for the prior fiscal year be presented to the Board of Directors by December of each year.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
e: Create an environment to attract, retain, and expand economic opportunities.
6. DISCUSSION AND BACKGROUND
The California Industrial Development Financing Advisory Commission (CIDFAC) administers the State’s Industrial Development Bond Financing Program and approves issuance of Industrial Development Bonds (IDB). IDBs provide manufacturing and processing companies low-cost, lowinterest financing for capital expenditures. Eligible capital expenditures include the acquisition of land, building construction, building renovation and the purchase of machinery and equipment. CIDFAC is a state agency within the California State Treasurer's Office.
The Industrial Development Authority (IDA) of the City of Orange was established in 1997 to provide an alternate method of financing for Control Air Conditioning (Control Air) to relocate its manufacturing facility into Orange. The IDA was the issuer for tax-exempt industrial development bonds in the amount of $5 million on behalf of Control Air in May 1997. The IDA only acted as a conduit for issuance of the bonds. It was the sole responsibility of Control Air to repay the bondholders.
In 2004, Control Air needed to expand its operation but was unable to find a suitable expansion location in Orange. In November 2004, Control Air relocated its manufacturing facility to Anaheim and subsequently sold its property in Orange. Control Air was required to repay the bonds in full. In City of Orange Page 1 of 2 Printed on 11/9/2023
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Item #: 10.1. 11/14/2023 File #: 23-0667
December 2004, the bonds were repaid.
In 2023, there were no outstanding bonds issued by the IDA. Staff recommends the continuation of the IDA as it is a unique economic development tool that offers industrial and manufacturing businesses an alternative source of financing for land acquisition, construction, and rehabilitation in Orange, through the State’s Industrial Development Bond Financing Program.
Agency staff continues to promote the IDA program and benefits through the City’s Economic Development website, outreach to the brokerage community specializing in industrial and manufacturing tenants, and ongoing communication with local manufacturing businesses in Orange.
7. ATTACHMENTS
· None
City of Orange Page 2 of 2 Printed on 11/9/2023
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