1 AGREEMENT
2 BETWEEN THE
3 CITY OF ORANGE
4 AND THE
5 COUNTY OF ORANGE
6 7 THIS AGREEMENT is entered into this First day of April, 2025, which date 8 is enumerated for purposes of reference only, by and between the CITY OF ORANGE, 9 hereinafter referred to as “CITY”, and the COUNTY OF ORANGE, a political subdivision 10 of the State of California, hereinafter referred to as “COUNTY”. 11 WITNESSETH:
12 WHEREAS, CITY wishes to contract with COUNTY for enhanced 13 fingerprint examiner and related services for major crimes; and 14 WHEREAS, COUNTY is agreeable to the rendering of such services, as 15 authorized in Government Code Sections 51301 and 55632, on the terms and conditions 16 hereinafter set forth,
17 NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
18 //
19 //
20 //
21 //
22 //
23 //
24 //
25 //
26 //
27 //
28 //
2751121
1 2 TABLE OF CONTENTS
3 4 SECTION PAGE
5 A. Term 3
6 B. Optional Termination 3
7 C. Regular Services by COUNTY 3
8 D. Duties of CITY 5
9 E. Payment 5
10 F. Notices 7
11 G. Status of COUNTY 8
12 H. State Audit 9
13 I. Alteration of Terms 9
14 J. Indemnification 9
15 Signature Page 11
16 Attachment A: County Billing Policy
17 //
18 //
19 //
20 //
21 //
22 //
23 //
24 //
25 //
26 //
27 //
28 //
2761122
2771123
1 A. TERM:
2 The term of this Agreement shall be for three (3) years, commencing July 1, 2025 3 and terminating June 30, 2028 unless earlier terminated by either party in the 4 manner set forth herein.
5 B. OPTIONAL TERMINATION:
6 COUNTY or CITY may terminate this Agreement, without cause, upon ninety (90) 7 days written notice to the other party.
8 C. REGULAR SERVICES BY COUNTY:
9 1. COUNTY, through its Sheriff-Coroner Department, hereinafter referred to as 10 “SHERIFF”, shall render to CITY enhanced fingerprint examination and 11 related services for criminal investigations as provided in Subsection C-2 and 12 C-3 below. Criminal investigations include, but may not be limited to, 13 homicide, aggravated assault, sexual assault, property crimes, etc. and the 14 services provided by COUNTY pursuant to this Agreement shall be limited to 15 fingerprint examination and related services for said crimes committed within 16 the city limits of CITY. COUNTY shall provide the services described herein 17 for such crimes when requested by CITY’s designated police staff, to the 18 extent that requested services reasonably can be provided by the SHERIFF 19 personnel assigned to provide services hereunder within the working hours 20 specified herein.
21 2. SHERIFF shall provide all staffing, supervision, management, training, 22 services, supplies and equipment necessary to deliver services as provided 23 in this Agreement. Services will include court testimony by assigned 24 SHERIFF staff pertaining to the fingerprint examination and related services 25 provided pursuant to this Agreement.
26 //
27 //
28 //
2781124
1 C. REGULAR SERVICES BY COUNTY: (Continued)
2 3. SHERIFF shall provide CITY with services as follows:
3 a. One (1) Lead Forensic Specialist –The Lead Forensic Specialist will be a 4 dedicated position, assigned to CITY’s Police Department casework on a 5 full-time basis to conduct fingerprint examinations, automated Fingerprint 6 Identification System tenprint and latent fingerprint entry and related 7 services that support the operation of CITY. Office hours will be eight 8 hours per day Monday through Friday, served at the SHERIFF’s Brad 9 Gates Forensic Science Center, unless a different work schedule is 10 requested by CITY and approved by SHERIFF. “Assignment on a full time 11 basis” means that the assigned COUNTY employee will devote 80 hours 12 per two-week pay period, less paid holidays, vacation, sick leave and other 13 types of short-time paid leave available to said employee pursuant to 14 applicable COUNTY personnel policy, providing services pursuant to this 15 Agreement. If the assigned COUNTY employee takes vacation or other 16 leave for a period in excess of 10 successive working days, SHERIFF shall 17 assign another employee of similar rank and skill level to perform services 18 hereunder for the remainder of the assigned employee’s extended leave. 19 4. Supplies and Processing
20 a. COUNTY will provide supplies needed for fingerprint examination and 21 related services conducted by SHERIFF.
22 Included in the supplies to be provided by COUNTY will be digital media 23 submitted by SHERIFF to the SHERIFF’s photo lab, in conformance with 24 existing SHERIFF’s policies.
25 b. Digital media supplies for cases investigated by CITY personnel are not 26 included in the services and supplies to be provided by COUNTY pursuant 27 to this Agreement, but may be provided, at the option of the SHERIFF, 28 upon payment by CITY of the full additional costs thereof. 2791125
1 D. DUTIES OF CITY:
2 1. CITY and its police personnel shall cooperate with and appropriately assist 3 SHERIFF personnel providing services pursuant to this Agreement, so as to 4 further the Parties’ shared goal of ensuring that fingerprint examinations for 5 crimes committed in CITY are conducted accurately, efficiently and in a timely 6 fashion, in accordance with the highest professional standards. 7 E. PAYMENT:
8 1. Pursuant to Government Code Section 51350, CITY agrees to pay to 9 COUNTY the costs of the services, equipment and supplies provided by 10 COUNTY pursuant to this Agreement. Said costs include salaries, wages, 11 benefits, mileage, services, supplies, equipment, and divisional, department 12 and COUNTY Overhead.
13 2. The cost of regular services, equipment and supplies provided by COUNTY 14 for the period from July 1, 2025 through June 30, 2028 shall be as follows:
15 SERVICE COST OF SERVICE
16 Personnel Costs:
17 • One (1) Lead Forensic Specialist $ 212,476
18 TOTAL COST $ 212,476
19 3. COUNTY shall invoice CITY monthly. During the period July 1, 2025 through 20 June 30, 2028 said invoices will require payment by City of one-twelfth (1/12) 21 of the cost for services referenced in paragraph E-2 of this Agreement. 22 4. a. Each fiscal year, SHERIFF shall submit to CITY, in writing, a 23 recommended level of service and an estimate of the costs to COUNTY of 24 providing said services to CITY in the following fiscal year. Said estimate 25 shall reflect the full anticipated costs to COUNTY of providing said 26 services, equipment and supplies and shall be computed by SHERIFF In 27 accordance with current COUNTY cost data. Within thirty days after 28 receipt of said cost estimate, CITY shall transmit to SHERIFF its written 2801126
1 E. PAYMENT: (Continued)
2 acceptance or rejection of said estimates. CITY’s Chief of Police is hereby 3 authorized to determine whether to accept or reject said cost estimates. 4 b. If CITY accepts said cost estimate, then SHERIFF or her designee, on 5 behalf of COUNTY, and CITY’s Chief of Police, on behalf of CITY, are 6 authorized to execute a written amendment to this Agreement reflecting 7 the service level and CITY’s obligation to pay said cost for the ensuing 8 fiscal year. Said amendment shall not change other terms and conditions 9 of this Agreement, except the service level and cost, unless first approved 10 by COUNTY’s Board of Supervisors and CITY’s Council. SHERIFF and 11 CITY’s Chief of Police shall cause originals of any amendments to this 12 Agreement that are executed to be filed with COUNTY’s Clerk of the Board 13 of Supervisors and CITY’s Clerk immediately upon execution. 14 c. If the Parties are unable to agree by June 30 of any fiscal year on the level 15 of service to be provided by COUNTY to CITY or on the amount to be paid 16 by CITY for services to be provided by COUNTY for the following fiscal 17 year, this Agreement will terminate as of September 30, of the following 18 fiscal year. The period of July 1 through September 30, if applicable, 19 provides the Parties up to the date of termination on September 30 to 20 continue contract negotiations. During said period of continuing 21 negotiations July 1 through September 30, COUNTY will provide the level 22 of service provided in the preceding fiscal year, and CITY shall be 23 obligated to pay the cost of such services provided in the prior fiscal year. 24 The full cost of such services may exceed the cost of similar services 25 provided in the prior fiscal year.
26 5. CITY shall pay COUNTY in accordance with COUNTY Board of Supervisors’ 27 approved County Billing Policy, which is attached hereto as Attachment A, 28 and incorporated herein by this reference.
2811127
1 E. PAYMENT: (Continued)
2 6. COUNTY shall charge CITY late payment penalties in accordance with 3 COUNTY Board of Supervisors’ approved County Billing Policy. 4 7. The cost of potential future salary and benefit increases or decreases are not 5 included in the costs set forth in Subsection E-2 of this Agreement. If COUNTY 6 incurs or becomes obligated to pay for any such increases for or on account 7 of personnel whose costs are included in the calculations of costs charged to 8 CITY hereunder, CITY shall pay COUNTY, in addition to the cost of service 9 set forth in Subsection E-2 of this Agreement, the full costs of said increases 10 to the extent such increases are attributable to work performed by such 11 personnel after July 1, 2025, and CITY’s cost of service hereunder shall be 12 deemed to have increased accordingly. CITY shall pay COUNTY in full for 13 such increases on a pro-rata basis over the portion of the period between 14 July 1, 2025 and June 30, 2028 remaining after COUNTY notifies CITY that 15 increases are payable.
16 In the event that salaries and benefits costs for COUNTY employees 17 decrease for or on account of personnel whose costs are included in the 18 calculations of costs charged to CITY hereunder, COUNTY shall notify CITY 19 of decreased cost and bill accordingly.
20 F. NOTICES:
21 1. Except for the notices provided for in subparagraph 2 of this paragraph, all 22 notices authorized or required by this Agreement shall be effective when 23 written and deposited in the United States mail, first class postage prepaid 24 and addressed as follows:
25 CITY: LIEUTENANT - ADMINISTRATION
26 ORANGE POLICE DEPARTMENT
27 300 E. CHAPMAN AVE.
28 ORANGE, CA 92866
2821128
1 F. NOTICES: (Continued)
2 COUNTY: DIRECTOR
3 ORANGE COUNTY CRIME LABORATORY
4 SHERIFF-CORONER DEPARTMENT
5 320 NORTH FLOWER STREET
6 SANTA ANA, CA 92703
7 8 LAW ENFORCEMENT CONTRACT MANAGER
9 SHERIFF-CORONER DEPARTMENT
10 FINANCIAL/ADMINISTRATIVE SERVICES DIVISION
11 320 NORTH FLOWER STREET, SUITE 108
12 SANTA ANA, CA 92703
13 //
14 2. Termination notices shall be effective when written and deposited in the 15 United States mail, certified, return receipt requested and addressed as 16 above.
17 G. STATUS OF COUNTY:
18 COUNTY is, and shall at all times be deemed to be, an independent contractor 19 and shall be wholly responsible for the manner in which it performs the services 20 required of it by the terms of this Agreement. Nothing herein contained shall be 21 construed as creating the relationship of employer and employee, or principal and 22 agent, between CITY and COUNTY or any of COUNTY’s agents or employees. 23 Nothing herein contained shall be construed as creating the relationship of 24 employer, or principal and agent, between COUNTY and any of CITY’s agents or 25 employees. COUNTY and its SHERIFF shall retain all authority for rendition of 26 services, standards of performance, control of personnel, and other matters 27 incident to the performance of services by COUNTY pursuant to this Agreement. 28 COUNTY, its agents and employees, shall not be entitled to any rights or 2831129
1 G. STATUS OF COUNTY: (Continued)
2 privileges of CITY employees and shall not be considered in any manner to be 3 CITY employees. CITY, its agents and employees shall not be entitled to any 4 rights or privileges of COUNTY employees and shall not be considered in any 5 manner to be COUNTY employees.
6 H. STATE AUDIT:
7 Pursuant to Government Code Section 8546.7, CITY and COUNTY shall be 8 subject to examination and audit by the State Auditor for a period of three (3) 9 years after final payment by CITY to COUNTY under this Agreement. CITY and 10 COUNTY shall retain all records relating to the performance of this Agreement 11 for said three-year period, except that records pertaining to any audit then in 12 progress, or any claim or litigation shall be retained beyond said three-year period 13 until final resolution of said audit, claim or litigation. 14 I. ALTERATION OF TERMS:
15 This Agreement fully expresses all understanding of CITY and COUNTY with 16 respect to this subject matter of this Agreement, and shall constitute the total 17 Agreement between the parties for these purposes. No addition to, or alteration 18 of, the terms of this Agreement shall be valid unless made in writing, formally 19 approved and executed by duly authorized agents of both parties. 20 J. INDEMNIFICATION:
21 1. COUNTY, its elected and appointed officials, officers, employees, agents, 22 subcontractors, independent contractors and those special districts and 23 agencies for which COUNTY’s Board of Supervisors acts as the governing 24 Board (“COUNTY INDEMNITEES”) shall not be deemed to have assumed any 25 liability for the negligence or any other act or omission of CITY or any of its 26 officers, agents, employees, subcontractors or independent contractors, or for 27 any dangerous or defective condition of any public street or work or property 28 of CITY, or for any illegality or unconstitutionality of state statutes or CITY’s 2841130
1 J. INDEMNIFICATION: (Continued)
2 municipal ordinances. CITY agrees to indemnify, defend with counsel 3 approved in writing by COUNTY, and hold all COUNTY INDEMNITEES 4 harmless from any claims, demands or liability of any kind or nature, including 5 but not limited to personal injury or property damage, arising from or related 6 to the services, products or other performance provided by City and including 7 those based or asserted upon the condition of any public street or work or 8 property of CITY, or upon the illegality or unconstitutionality of any state statute 9 or municipal ordinance of CITY of which SHERIFF has investigated an alleged 10 or actual violation, or upon any act or omission of CITY, its officers, agents, 11 employees, subcontractors and independent contractors related to this 12 Agreement. If judgment is entered against CITY and COUNTY by a court of 13 competent jurisdiction because of the concurrent active negligence of 14 COUNTY or COUNTY INDEMNITEES, CITY and COUNTY agree that liability 15 will be apportioned as determined by the court. Neither party shall request a 16 jury apportionment.
17 2. COUNTY agrees to defend, indemnify, and hold CITY, and its elected and 18 appointed officials, officers, employees, agents, subcontractors and 19 independent contractors harmless from any claims, demands or liability of any 20 kind or nature, including but not limited to personal injury or property damage, 21 arising from or related to the services, products or other performance provided 22 by COUNTY pursuant to this agreement. If judgment is entered against 23 COUNTY and CITY by a court of competent jurisdiction because of the 24 concurrent active negligence of CITY, COUNTY and CITY agree that liability 25 will be apportioned as determined by the court. Neither party shall request a 26 jury apportionment.
27 //
28 //
2851131
1 IN WITNESS WHEREOF, the parties have executed the AGREEMENT 2 in the County of Orange, State of California.
3 4
5 ATTEST:
City Clerk
6 7
8 APPROVED AS TO FORM:
9 BY:
City Attorney
10 11
12 DATED:
DATED:
CITY OF ORANGE
BY:
Mayor
13 14 BY:
Chairman of the Board of Supervisors
15 County of Orange, California
16 17 Signed and certified that a copy of this
Document has been delivered to the Chair
18 of the Board per G.C. Sec. 25103, Reso 79-1535
Attest:
19 20
Robin Stieler
21 Clerk of the Board of Supervisors
County of Orange, California
22 APPROVED AS TO FORM:
23 Office of the County Counsel
County of Orange, California
24 25 BY:
26 Deputy
27 28 DATED:
3/31/2025
2861132
Agenda Item
City Council
Item #: 3.8. 4/8/2025 File #: 25-0176
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Monica Espinoza, Human Resources Director
1. SUBJECT
Professional Services Agreement with Mosaic Public Partners, LLC for executive search services.
2. SUMMARY
Professional Services Agreement with Mosaic Public Partners, LLC for executive search services for the position of City Attorney.
3. RECOMMENDED ACTION
Approve Professional Services Agreement with Mosaic Public Partners, LLC in the amount of $25,000, plus a $5,000 contingency representing the cost for executive search services; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expense for this agreement is $25,000 and will be funded through General Fund (100):
100.0000.52011.00000 Non-Departmental Miscellaneous Expenditures.
5. STRATEGIC PLAN GOALS
Goal 4: Improve Employee Retention and Recruitment
Objective 4.5: Implement Succession Planning Strategies
6. DISCUSSION AND BACKGROUND
The City engaged Mosaic Public Partners, LLC in January 2025 for the purpose of City Manager executive search services in the amount of $25,000. The City now has an additional critical vacancy of City Attorney and desires to have Mosaic Public Partners, LLC conduct an additional executive search.
In the aggregate both searches exceed the City Manager approval threshold of $30,000 therefore, City Council action is required to approve the $25,000 agreement, with a 10% contingency of $5,000.
7. ATTACHMENT
· Professional Services Agreement with Mosaic Public Partners, LLC City of Orange Printed on 4/3/2025Page 1 of 1
powered by Legistar™
287
Agenda Item
City Council
Item #: 3.8. 4/8/2025 File #: 25-0176
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Monica Espinoza, Human Resources Director
1. SUBJECT
Professional Services Agreement with Mosaic Public Partners, LLC for executive search services.
2. SUMMARY
Professional Services Agreement with Mosaic Public Partners, LLC for executive search services for the position of City Attorney.
3. RECOMMENDED ACTION
Approve Professional Services Agreement with Mosaic Public Partners, LLC in the amount of $25,000, plus a $5,000 contingency representing the cost for executive search services; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expense for this agreement is $25,000 and will be funded through General Fund (100):
100.0000.52011.00000 Non-Departmental Miscellaneous Expenditures.
5. STRATEGIC PLAN GOALS
Goal 4: Improve Employee Retention and Recruitment
Objective 4.5: Implement Succession Planning Strategies
6. DISCUSSION AND BACKGROUND
The City engaged Mosaic Public Partners, LLC in January 2025 for the purpose of City Manager executive search services in the amount of $25,000. The City now has an additional critical vacancy of City Attorney and desires to have Mosaic Public Partners, LLC conduct an additional executive search.
In the aggregate both searches exceed the City Manager approval threshold of $30,000 therefore, City Council action is required to approve the $25,000 agreement, with a 10% contingency of $5,000.
7. ATTACHMENT
· Professional Services Agreement with Mosaic Public Partners, LLC City of Orange Printed on 4/3/2025Page 1 of 1
powered by Legistar™
288
289
290
291
292
293
Agenda Item
City Council
Item #: 3.9. 4/8/2025 File #: 25-0136
TO: Honorable Mayor and Members of the City Council
FROM: Russell Bunim, Community Development Director
1. SUBJECT
First Amendment to an Agreement with Sagecrest Planning and Environmental for Planning staff services.
2. SUMMARY
A First Amendment to an Agreement with Sagecrest Planning and Environmental to provide planning staff services for the City of Orange to maintain service levels and support economic development activity given vacant Planning positions in the Community Development Department.
3. RECOMMENDED ACTION
Approve the First Amendment to an Agreement with Sagecrest Planning and Environmental in the amount of $70,000 for planning staff services; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this amendment is $70,000 and will be funded through General Fund (100) utilizing salary savings from staff vacancies.
The requested funding anticipates approximately six months of contract staffing.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability Goal 4: Improve Employee Retention and Recruitment
6. DISCUSSION AND BACKGROUND
Sagecrest Planning and Environmental (Sagecrest) provides contract planning staff services to local jurisdictions. As part of those services, the firm offers staff with various backgrounds and expertise that function as an extension of staff to serve customers at the public counter and perform the review and processing of development applications, preparation of policy documents, and project management. In recent years, the City has intermittently retained Sagecrest to backfill vacant positions in the Planning Division while recruitments are underway.
With recent staff turnover in the Planning Division, a contract staffing services Agreement in the amount of $30,000 was executed by the City Manager. With the recent departure of key Planning staff from the Community Development Department, and anticipated timing for recruitment and on- boarding of new staff, the need for contract staffing is expected through the end of the calendar year to maintain a high level of customer service and organizational expectations for timely development City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
294
Item #: 3.9. 4/8/2025 File #: 25-0136
review that supports economic development and property reinvestment.
7. ATTACHMENTS
· First Amendment to Agreement with Sagecrest Planning and Environmental City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
295
Agenda Item
City Council
Item #: 3.9. 4/8/2025 File #: 25-0136
TO: Honorable Mayor and Members of the City Council
FROM: Russell Bunim, Community Development Director
1. SUBJECT
First Amendment to an Agreement with Sagecrest Planning and Environmental for Planning staff services.
2. SUMMARY
A First Amendment to an Agreement with Sagecrest Planning and Environmental to provide planning staff services for the City of Orange to maintain service levels and support economic development activity given vacant Planning positions in the Community Development Department.
3. RECOMMENDED ACTION
Approve the First Amendment to an Agreement with Sagecrest Planning and Environmental in the amount of $70,000 for planning staff services; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this amendment is $70,000 and will be funded through General Fund (100) utilizing salary savings from staff vacancies.
The requested funding anticipates approximately six months of contract staffing.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability Goal 4: Improve Employee Retention and Recruitment
6. DISCUSSION AND BACKGROUND
Sagecrest Planning and Environmental (Sagecrest) provides contract planning staff services to local jurisdictions. As part of those services, the firm offers staff with various backgrounds and expertise that function as an extension of staff to serve customers at the public counter and perform the review and processing of development applications, preparation of policy documents, and project management. In recent years, the City has intermittently retained Sagecrest to backfill vacant positions in the Planning Division while recruitments are underway.
With recent staff turnover in the Planning Division, a contract staffing services Agreement in the amount of $30,000 was executed by the City Manager. With the recent departure of key Planning staff from the Community Development Department, and anticipated timing for recruitment and on- boarding of new staff, the need for contract staffing is expected through the end of the calendar year to maintain a high level of customer service and organizational expectations for timely development City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
296
Item #: 3.9. 4/8/2025 File #: 25-0136
review that supports economic development and property reinvestment.
7. ATTACHMENTS
· First Amendment to Agreement with Sagecrest Planning and Environmental City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
297
FIRST AMENDMENT
TO
PROFESSIONAL SERVICES AGREEMENT
[Staffing Services]
THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (the “First Amendment”) is made and entered into as of ________ _________, 2025, by and between the CITY OF ORANGE, a municipal corporation (“City”), and SAGECREST PLANNING AND ENVIRONMENTAL, a California corporation (“Contractor”), with reference to the following:
A. City and Contractor entered into a Professional Services Agreement (Agreement No. 7819) dated as of March 27, 2025, which is incorporated herein by this reference (the “Original Agreement”); and
B. City and Contractor desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement by increasing the compensation.
NOW, THEREFORE, the parties hereby agree as follows:
Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.
Section 2. Cross-References. City and Contractor agree that all references in this First Amendment are deemed and construed to refer to the Original Agreement, as implemented by this First Amendment.
Section 3 Compensation. The total not -to-exceed compensation for the services to be rendered as set forth in Section 2.a of the Original Agreement is increas ed by SEVENTY THOUSAND DOLLARS and 00/100 ($ 70,000.00) and Section 2.a is hereby amended in its entirety to read as follows:
“Contractor's total compensation for all services performed under this Agreement, shall not exceed ONE HUNDRED THOUSAND DOLLARS and 00/100 ($100,000.00) without the prior written authorization of City.”
Section 4. Integration. This First Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Ame ndment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.
298
299
Agenda Item
City Council
Item #: 3.10. 4/8/2025 File #: 25-0168
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
First Amendment to Subrecipient Agreement with Shelter Providers of Orange County to revise the scope of work and total compensation.
2. SUMMARY
First Amendment to the Subrecipient Agreement with Shelter Providers of Orange County to revise the scope of work and correct the total compensation approved through the 2024-2025 Annual Action Plan.
3. RECOMMENDED ACTION
Approve the amendment to subrecipient agreement with Shelter Providers of Orange County for plumbing and sewer improvements of the Family Care Center; and authorize the Mayor and the City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life
6. DISCUSSION AND BACKGROUND
The City receives annual federal funds from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) and the HOME Investment Partnerships (HOME) programs for the benefit of primarily low- and moderate-income residents. The funds are allocated to projects and programs that include street improvements, handicap accessibility improvements, after-school programs, transitional housing, and supportive services.
On February 15, 2024, the Community Development Block Grant (CDBG) Program Committee conducted a Public Hearing to review proposals for the allocation of CDBG funds for the Fiscal Year 2024-2025. Subsequently, on March 15, 2024, the committee convened to deliberate and finalize funding recommendations for proposed projects and programs to be presented to the City Council.
As part of these recommendations, Shelter Providers of Orange County was allocated $34,997 to fund plumbing and sewer system upgrades at the Family CareCenter. The Family CareCenter serves City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
300
Item #: 3.10. 4/8/2025 File #: 25-0168
fund plumbing and sewer system upgrades at the Family CareCenter. The Family CareCenter serves as an essential emergency shelter, dedicated to supporting families experiencing homelessness in the City of Orange. By offering safe and dignified short-term housing, the CareCenter provides families with the opportunity to rebuild their lives and work towards a stable future. The center includes communal living accommodations with 56 beds, arranged in semi-private, flexible sleeping areas, and has the capacity to house up to 16 families each night. By addressing the critical needs of vulnerable families, the Family CareCenter plays a vital role in fostering stability and hope within the community.
On May 28, 2024, the City Council approved the funding recommendations provided by the CDBG Program Committee. This amendment rectifies a typographical error in the agreement regarding the approved compensation, revising it to $34,997. Furthermore, during the implementation of the plumbing and sewer system upgrades, it was identified that the water heater required replacement.
The water heater is deemed ancillary to the approved plumbing and sewer upgrades. Its inclusion in the project scope will not result in any increase to the approved compensation, as the costs can be accommodated within the existing budget allocation.
7. ATTACHMENTS
· First Amendment to Subrecipient Agreement with Shelter Providers of Orange County · Scope of Work
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
301
Agenda Item
City Council
Item #: 3.10. 4/8/2025 File #: 25-0168
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
First Amendment to Subrecipient Agreement with Shelter Providers of Orange County to revise the scope of work and total compensation.
2. SUMMARY
First Amendment to the Subrecipient Agreement with Shelter Providers of Orange County to revise the scope of work and correct the total compensation approved through the 2024-2025 Annual Action Plan.
3. RECOMMENDED ACTION
Approve the amendment to subrecipient agreement with Shelter Providers of Orange County for plumbing and sewer improvements of the Family Care Center; and authorize the Mayor and the City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life
6. DISCUSSION AND BACKGROUND
The City receives annual federal funds from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) and the HOME Investment Partnerships (HOME) programs for the benefit of primarily low- and moderate-income residents. The funds are allocated to projects and programs that include street improvements, handicap accessibility improvements, after-school programs, transitional housing, and supportive services.
On February 15, 2024, the Community Development Block Grant (CDBG) Program Committee conducted a Public Hearing to review proposals for the allocation of CDBG funds for the Fiscal Year 2024-2025. Subsequently, on March 15, 2024, the committee convened to deliberate and finalize funding recommendations for proposed projects and programs to be presented to the City Council.
As part of these recommendations, Shelter Providers of Orange County was allocated $34,997 to fund plumbing and sewer system upgrades at the Family CareCenter. The Family CareCenter serves City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
302
Item #: 3.10. 4/8/2025 File #: 25-0168
fund plumbing and sewer system upgrades at the Family CareCenter. The Family CareCenter serves as an essential emergency shelter, dedicated to supporting families experiencing homelessness in the City of Orange. By offering safe and dignified short-term housing, the CareCenter provides families with the opportunity to rebuild their lives and work towards a stable future. The center includes communal living accommodations with 56 beds, arranged in semi-private, flexible sleeping areas, and has the capacity to house up to 16 families each night. By addressing the critical needs of vulnerable families, the Family CareCenter plays a vital role in fostering stability and hope within the community.
On May 28, 2024, the City Council approved the funding recommendations provided by the CDBG Program Committee. This amendment rectifies a typographical error in the agreement regarding the approved compensation, revising it to $34,997. Furthermore, during the implementation of the plumbing and sewer system upgrades, it was identified that the water heater required replacement.
The water heater is deemed ancillary to the approved plumbing and sewer upgrades. Its inclusion in the project scope will not result in any increase to the approved compensation, as the costs can be accommodated within the existing budget allocation.
7. ATTACHMENTS
· First Amendment to Subrecipient Agreement with Shelter Providers of Orange County · Scope of Work
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
303
FIRST AMENDMENT TO
FY 2024-2025
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF ORANGE AND SHELTER PROVIDERS OF ORANGE COUNTY, INC. dba HOMEAID ORANGE COUNTY
This FIRST AMENDMENT TO FY 2024-2025 COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF ORANGE AND THE SHELTER PROVIDERS OF ORANGE COUNTY, INC. DBA HOMEAID ORANGE COUNTY (“First Amendment”) is entered into as of JULY 1, 2024, by and between the CITY OF ORANGE, a municipal corporation (“ CITY”) and SHELTER PROVIDERS OF ORANGE COUNTY, INC. DBA HOMEAID ORANGE COUNTY (“SUBRECIPIENT”) with reference to the following:
A. CITY and SUBRECIPIENT entered into a FY 2024-2025 Community Development Block Grant Program Subrecipient Agreement Between the City of Orange and the Shelter Providers of Orange County, Inc. dba HomeAid Orange County (Agreement No. 7699), dated July 1, 2024 (the “AGREEMENT”); and
B. CITY and SUBRECIPIENT desire to amend the SUBRECIPIENT to reflect AMENDED BUDGET.
NOW, THEREFORE, the parties hereby agree as follows:
Section 1. Defined Terms. Except as otherwise defined herein, all quoted or capitalized terms used herein shall have the meanings set forth for such terms in the AGREEMENT.
Section 2. Cross-References. CITY and SUBRECIPIENT hereby agree that (a) all references in the AGREEMENT or this First Amendment are deemed and construed to refer to the AGREEMENT as amended by this First Amendment, and (b) all references in this First Amendment to any section or provision in the AGREEMENT are deemed and construed to refer to such section or provision of the AGREEMENT, as amended by this First Amendment.
Section 3. Revised Compensation. Section 2 of the AGREEMENT, “Compensation” is hereby corrected to reflect the amount of THIRTY-FOUR THOUSAND NINE HUNDRED NINETY SEVEN DOLLARS and 00/100 ($34,997.00).
Section 4. Integration. This First Amendment amends, as set forth herein, the AGREEMENT and, except as specifically amended hereby, the AGREEMENT shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the AGREEMENT, the 304
terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.
IN WITNESS WHEREOF, the parties enter into this First Amendment on the year and day first above written.
“CITY”
CITY OF ORANGE, a municipal corporation
By:
Daniel R. Slater
Mayor
APPROVED AS TO FORM:
By:
Nathalie Adourian
Senior Assistant City Attorney
The terms and conditions of the foregoing Memorandum are understood and accepted:
“SUBRECIPIENT”
By:
Gina R. Cunningham
Executive Director
√
305
terms and provisions of this First Amendment shall control and govern the rights and obligations ofthe parties.
IN WITNESS WHEREOF, the parties enter into this First Amendment on the year and day first above written.
.CITY"
CITY OF ORANGE, a municipal corporation
By:
Daniel R. Slater
Mayor
APPROVED AS TO FORM:
B),
Nathalie Adourian
Senior Assistant City Attomey
The terms and conditions ofthe foregoing Memorandum are understood and accepted:
.SUBRECIPIENT'
Br'
Gina R.
Executive Director
.l
306
Attachment “A”
FY 2024-25
CITY OF ORANGE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Subrecipient Agreement
ATTACHMENT “A”
1. Nonprofit Organization
Nonprofit Name: Shelter Providers of Orange County, Inc. DBA HomeAid Orange County
Director: Gina Cunningham
Contact Person: Dyson Posey
Title: Program Manager
Phone: (949) 301-9873
E-mail: [email protected]
2. Project/Program Title: Plumbing and Sewage Upgrade at the Family CareCenter
3. Project/Program Location: 1130 N. Citrus Street
4. Funding Period: July 1, 2024 - June 30, 2025
5. CDBG Funds Amount: $34,997.00
6. Funding Summary:
Cost Category CDBG Funds Other Funding
Sources
Total
Program/Project
Budget
(All Funding
Sources)
1. Personnel Services
(Salaries, benefits, etc.) $ 0.00 $ 0.00 $0.00
2. Miscellaneous Program/Project Costs
(Office supplies, travel expenses, professional
services, etc.)
$ 0.00 $0.00 $0.00
3. Capital Outlay
(Property acquisition, construction costs, etc.) $ 34,997.00 $ 0.00 $34,997.00
4. TOTAL $34,997.00 $ 0.00 $34,997.00
7. Activity Summary:
Describe project/program for which CDBG funds will be used.
The Family CareCenter is an emergency shelter for families experiencing homelessness in Orange County. The CareCenter gives families a dignified place to rebuild for the future by providing desperately needed short-term housing. Designed to keep families together, the CareCenter is a place where parents can feel confident their children are safe, enabling them to focus on finding a secure place to live. The communal living space currently provides 56 beds in semi-private, flexible sleeping areas for up to 16 families each night. There are approximately 9,880 square feet of space on 18,630 square feet of land. The property 307
Attachment “A”
contains two ADA showers, 4 shower and toilet units, and 6 toilet and sink units. The site is open for guests’ habitation from 5pm to 9am.
With the funds provided by the Community Development Block Grant, HomeAid Orange County will improve the facilities at the Family CareCenter by performing a deep fix and improvement of the plumbing and sewer system and replacing the water heater unit. Project scope is listed below.
Descale main sewer line from wall clean out on the right-hand side when facing the street, near showers. Approximately 10’ of old cast iron piping. Pull toilet and descale toilet line approximately 5’, then hydro jet to remove scale.
Install epoxy coating down the wall clean out approximately 10’, and down the toilet flange approximately 5’.
Reset toilet.
Excavate approximately 3’ down to repair sewer mainline, avoiding gas meters, in front of building 1130.
Remove piping section with bad offset.
Install a new section of pipe with heavy duty ARC shielded bands. Backfill and compact all soil.
Excavate approximately 3’ down to sewer mainline in front of building 1140. Remove toilet in far left bathroom when facing the street. Jack hammer 4’x4’ hole in slab floor, remove and haul away concrete. Tunnel under wall to adjacent shower, and tunnel under slab to lavatory sink to expose sewer mainline, sink, and shower drains.
Replace sewer mainline by pipe bursting and installing a new 4” HDPE pipe, roughly 35’ long.
Run new ABS piping for toilet, sink, and shower.
Connect new HDPE pipe to the clay mainline in front of the building with new heavy duty ARC shielded bands.
Backfill and compact all soil.
Replace the water heater unit and any related costs to the water heater’s replacement
The CDBG funds will cover the cost of labor and materials and the cost of replacing the water heater unit. Improvements will significantly improve the quality of life for guests in the CareCenter, who currently navigate numerous jams and plumbing challenges due to worn, dated, and damaged plumbing.
This is a timely opportunity, as HomeAid Orange County is also in collaboration with the City of Orange to expand CareCenter capacity from 56 individuals up to 80. By addressing the need for plumbing improvements, the CareCenter will be better equipped to accommodate the increased number of individuals and maximize its capacity to serve individuals experiencing or at risk of homelessness in Orange County. Every step of this expansion, including the plumbing improvements, will be completed in July 2024.
Timeline Expenditures
Q1 – 2024 $34,997.00
Q2 – 2024 $0.00
Q3 – 2025 $0.00
308
Attachment “A”
Q4 – 2025 $0.00
8. Estimated Accomplishments and estimated timelines:
Describe planned goals and accomplishments.
Timeline Milestone
Est. #
Students
Served
Q1 – 2024 Begin and complete project
Q2 – 2024
Q3 – 2025
Q4 – 2025
Project work will proceed in two stages. In the first stage, descaling and a new epoxy application will occur for plumbing inside the CareCenter. In the second stage, outside trenching to expose the city sewer will occur, followed by the installation of new epoxy up the line to the Center and a new perma liner in the connection piping. Repairs will also include the installation of 4” of ABS piping to replace aging clay piping at the connection point and replacement of water heater unit. All work, including backfill for the small trench, is estimated to be completed by Friday, July 5th, 2024.
9. Beneficiary Information
For programs that will serve specific areas, provide the following documentation. Attach a map (Attachment “A” – Exhibit 1 ) showing the location of the program and the boundaries of the service area that will benefit from the program. In the table below, list the Census Tracts, Block Groups, and income data for the service area. Add rows as needed.
Presumed Benefit Population served.
309
Agenda Item
City Council
Item #: 3.11. 4/8/2025 File #: 25-0145
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Third Amendment to Agreement with Yunex, LLC for on-call traffic signal and street lighting repair services.
2. SUMMARY
Yunex, LLC provides critical support for the City’s traffic signal and street lighting maintenance program. Cumulative expenditures against the existing five-year agreement are approaching the not- to-exceed limit of $700,000. The proposed Third Amendment will increase the not-to-exceed amount by $250,000 for a total amount not to exceed $950,000 and extend the term of the Agreement by three months, from June 30, 2025, to September 30, 2025.
3. RECOMMENDED ACTION
Approve a Third Amendment to Agreement with Yunex, LLC for on-call signal and lighting repair services in the amount of $250,000; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The expense for this amendment is $250,000 and will be funded through Capital Projects (500) through:
500.5032.56100.16302 Minor Traffic Control Devices $125,000 500.5032.56100.20374 Street Light Pole Replacement Program $125,000
5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology
6. DISCUSSION AND BACKGROUND
In August 2020, Yunex, LLC (Yunex) was awarded a contract, on a competitive basis, for on-call traffic signal and street lighting repair services. The contract, Agreement 7017, was for an initial term of three years in the amount of $240,000, with a provision for a two-year term extension and $160,000 increase. The term extension and increase were exercised and memorialized as an amendment in May 2023. Additionally, to cover costs and repairs due to significant increases in copper street light wire theft in the City, the contract was amended in March 2022 for an additional $300,000 in contract capacity. The current Agreement, as previously amended, expires June 30, City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
310
Item #: 3.11. 4/8/2025 File #: 25-0145
2025, and has a contract capacity of $700,000.
Since November 2024, Yunex’sservices have been required at a higher frequency than originally anticipated due to:
1. The Public Works Traffic Division, which oversees signal and lighting maintenance, experiencing a staffing reduction due to retirement.
2. Repairs necessitated by recent storm events and a series of higher-than-average traffic signal and street light pole “knock-downs”.
The combined effect of the above has resulted in accelerated use, and near depletion of the contract’sremaining capacity. For Yunex to continue providing critical on-call traffic signal and street lighting repair services through the end of the fiscal year, a Third Amendment, to increase the contract’s capacity, will be needed. Based on current trends and a conservative estimate, staff recommends increasing the not-to-exceed limit by $250,000, to $950,000.
At the same time and considering the upcoming Yunex expiration date of June 30, staff have begun the process to competitively procure a successor contract for on-call signal and lighting repair services. It is anticipated that the successor contract will be presented to City Council for potential award before the Yunex Agreement expires. However, to ensure there are no service lapses in the unlikely event there are unforeseen delays awarding a successor contract, staff also recommends extending the term of the Yunex Agreement an additional three months. This would amend the Agreement’send date from June 30, 2025, to September 30, 2025. Yunex’scurrent rates for services performed in 2025 will remain unchanged during the extension period.
Lastly, no budget appropriation is being requested. Funding for the Third Amendment is already available in the approved FY 25 budget, through two of the City’smaintenance-type capital projects:
Minor Traffic Control Devices (16302) and Street Light Pole Replacement Program (20374). Once a successor contract is awarded, this Agreement can be terminated with any remaining contract capacity unused.
7. ATTACHMENT
· Third Amendment to Agreement with Yunex, LLC
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
311
Agenda Item
City Council
Item #: 3.11. 4/8/2025 File #: 25-0145
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Third Amendment to Agreement with Yunex, LLC for on-call traffic signal and street lighting repair services.
2. SUMMARY
Yunex, LLC provides critical support for the City’s traffic signal and street lighting maintenance program. Cumulative expenditures against the existing five-year agreement are approaching the not- to-exceed limit of $700,000. The proposed Third Amendment will increase the not-to-exceed amount by $250,000 for a total amount not to exceed $950,000 and extend the term of the Agreement by three months, from June 30, 2025, to September 30, 2025.
3. RECOMMENDED ACTION
Approve a Third Amendment to Agreement with Yunex, LLC for on-call signal and lighting repair services in the amount of $250,000; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The expense for this amendment is $250,000 and will be funded through Capital Projects (500) through:
500.5032.56100.16302 Minor Traffic Control Devices $125,000 500.5032.56100.20374 Street Light Pole Replacement Program $125,000
5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology
6. DISCUSSION AND BACKGROUND
In August 2020, Yunex, LLC (Yunex) was awarded a contract, on a competitive basis, for on-call traffic signal and street lighting repair services. The contract, Agreement 7017, was for an initial term of three years in the amount of $240,000, with a provision for a two-year term extension and $160,000 increase. The term extension and increase were exercised and memorialized as an amendment in May 2023. Additionally, to cover costs and repairs due to significant increases in copper street light wire theft in the City, the contract was amended in March 2022 for an additional $300,000 in contract capacity. The current Agreement, as previously amended, expires June 30, City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
312
Item #: 3.11. 4/8/2025 File #: 25-0145
2025, and has a contract capacity of $700,000.
Since November 2024, Yunex’sservices have been required at a higher frequency than originally anticipated due to:
1. The Public Works Traffic Division, which oversees signal and lighting maintenance, experiencing a staffing reduction due to retirement.
2. Repairs necessitated by recent storm events and a series of higher-than-average traffic signal and street light pole “knock-downs”.
The combined effect of the above has resulted in accelerated use, and near depletion of the contract’sremaining capacity. For Yunex to continue providing critical on-call traffic signal and street lighting repair services through the end of the fiscal year, a Third Amendment, to increase the contract’s capacity, will be needed. Based on current trends and a conservative estimate, staff recommends increasing the not-to-exceed limit by $250,000, to $950,000.
At the same time and considering the upcoming Yunex expiration date of June 30, staff have begun the process to competitively procure a successor contract for on-call signal and lighting repair services. It is anticipated that the successor contract will be presented to City Council for potential award before the Yunex Agreement expires. However, to ensure there are no service lapses in the unlikely event there are unforeseen delays awarding a successor contract, staff also recommends extending the term of the Yunex Agreement an additional three months. This would amend the Agreement’send date from June 30, 2025, to September 30, 2025. Yunex’scurrent rates for services performed in 2025 will remain unchanged during the extension period.
Lastly, no budget appropriation is being requested. Funding for the Third Amendment is already available in the approved FY 25 budget, through two of the City’smaintenance-type capital projects:
Minor Traffic Control Devices (16302) and Street Light Pole Replacement Program (20374). Once a successor contract is awarded, this Agreement can be terminated with any remaining contract capacity unused.
7. ATTACHMENT
· Third Amendment to Agreement with Yunex, LLC
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
313
314
315
316
Agenda Item
City Council
Item #: 3.12. 4/8/2025 File #: 25-0144
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community & Library Services Director
1. SUBJECT
Appropriation of $23,000 in designated donation funding received from the Friends of Orange Public Library.
2. SUMMARY
Donation funds from the Friends of Orange Public Library will be used to enhance and expand the Library’s collections, programming, and resources.
3. RECOMMENDED ACTION
1. Accept into the City’sGeneral Fund (100) revenue budget $23,000 in donation funds from the Friends of Orange Public Library to:
100.2001.48390.19990 Donations
2. Authorize the appropriation of $23,000 to General Fund (100):
100.2001.53011.19990 Employee Appreciation $1,600
100.2001.53301.19990 Library Books $20,400
100.2014.53340.19990 Craft Supplies $1,000
4. FISCAL IMPACT
There is no direct fiscal impact to the City. The additional revenue received from the Friends of Orange Public Library will fund the expense for these services.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life
6. DISCUSSION AND BACKGROUND
The Friends of Orange Public Library (Friends) are donating $23,000 to meet various Library needs, including:
· $20,400 for audio-visual, digital film, and magazine resources for the public. · $1,600 for the Library’s employee appreciation program.
City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
317
Item #: 3.12. 4/8/2025 File #: 25-0144
· $1,000 for supplies to support Library tours and outreach.
The Orange Public Library will publicize the Friends’contributions in a variety of ways, including bookplates and credit for collections support on the Library’s website.
7. ATTACHMENTS
· None
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
318
Agenda Item
City Council
Item #: 3.12. 4/8/2025 File #: 25-0144
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community & Library Services Director
1. SUBJECT
Appropriation of $23,000 in designated donation funding received from the Friends of Orange Public Library.
2. SUMMARY
Donation funds from the Friends of Orange Public Library will be used to enhance and expand the Library’s collections, programming, and resources.
3. RECOMMENDED ACTION
1. Accept into the City’sGeneral Fund (100) revenue budget $23,000 in donation funds from the Friends of Orange Public Library to:
100.2001.48390.19990 Donations
2. Authorize the appropriation of $23,000 to General Fund (100):
100.2001.53011.19990 Employee Appreciation $1,600
100.2001.53301.19990 Library Books $20,400
100.2014.53340.19990 Craft Supplies $1,000
4. FISCAL IMPACT
There is no direct fiscal impact to the City. The additional revenue received from the Friends of Orange Public Library will fund the expense for these services.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life
6. DISCUSSION AND BACKGROUND
The Friends of Orange Public Library (Friends) are donating $23,000 to meet various Library needs, including:
· $20,400 for audio-visual, digital film, and magazine resources for the public. · $1,600 for the Library’s employee appreciation program.
City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
319
Item #: 3.12. 4/8/2025 File #: 25-0144
· $1,000 for supplies to support Library tours and outreach.
The Orange Public Library will publicize the Friends’contributions in a variety of ways, including bookplates and credit for collections support on the Library’s website.
7. ATTACHMENTS
· None
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
320
Agenda Item
City Council
Item #: 3.13. 4/8/2025 File #: 25-0117
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Sourcewell Contract to MDJ Management, LLC for the Police Department shower and restroom repairs (SP-4305); and finding of California Environmental Quality Act exemption.
2. SUMMARY
Award MDJ Management, LLC a construction contract for the Police Department shower and restroom repairs.
3. RECOMMENDED ACTION
1. Approve the contract with MDJ Management LLC in the amount of $225,706 for the repair of the Police Department shower and restroom; and authorize the Mayor and City Clerk to execute on behalf of the City.
2. Find that the proposed project is categorically exempt from the provisions of the California Environmental Quality Act.
3. Authorize the appropriation of $25,000 from Police Facility Fees (570) unreserved fund balance to:
570.4011.56020.19809 Repairs to Buildings and Fixed Equipment
4. FISCAL IMPACT
The expense for this contract is $225,706 and will be funded through Capital Project Fund (500) and Police Facility Fees (570) respectively:
500.5028.56020.19809 Capital Project Fund $200,706
570.4011.56020.19809 Police Facility Fees $25,000
5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
Goal 5: Improve Infrastructure, Mobility, and Technology
6. DISCUSSION AND BACKGROUND
The showers and restrooms adjacent to the Police Department locker rooms urgently need repairs due to leaks and aging pipes. The sewer pipes frequently back up, and the water supply leaks consistently. Immediate action is essential to restore functionality and maintain the structural and City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
321
Item #: 3.13. 4/8/2025 File #: 25-0117
consistently. Immediate action is essential to restore functionality and maintain the structural and sanitary integrity of the facilities.
The Public Works Department contacted several vendors and utilized various procurement strategies to hire a skilled contractor for this project at a reasonable cost. Staff worked with the project coordinator from Gordian EzIQC to develop the scope of work for this project, using a contractor from Sourcewell. This procurement method involves a cooperative purchasing arrangement employed by multiple government agencies to reduce costs and minimize the impact on staff resources. The City Council has previously authorized a Cooperative Purchasing Agreement (CPA) for a similar project, and this contract continues that policy.
By utilizing Sourcewell, the City can access highly qualified specialty contractors while lowering overall capital costs. Sourcewell provides competitive bids for construction tasks, specifications, materials, equipment, and labor costs. The City has previously used the CPA procurement process and is a member of Sourcewell.
The repairs will primarily focus on replacing the affected piping in the men's and women's showers and restrooms, ensuring long-term reliability and extending the building's lifespan. After thorough consideration, staff recommends MDJ Management, LLC (Contract No. CA-RA-GB-101723-MDJ) for the project. The proposed price of $225,706 for the repairs has been reviewed and deemed fair, reasonable, and consistent with the established unit prices outlined in the contract with Sourcewell.
The project is scheduled to commence in May 2025 and will be completed within 90 days.
7. ENVIRONMENTAL REVIEW
Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15301 (Class 1 - Existing Facilities) because the project consists of interior shower and restroom repairs at an existing facility involving negligible or no expansion of existing or former use.
8. ATTACHMENT
· Contract with MDJ Management, LLC
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
322
Agenda Item
City Council
Item #: 3.13. 4/8/2025 File #: 25-0117
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Sourcewell Contract to MDJ Management, LLC for the Police Department shower and restroom repairs (SP-4305); and finding of California Environmental Quality Act exemption.
2. SUMMARY
Award MDJ Management, LLC a construction contract for the Police Department shower and restroom repairs.
3. RECOMMENDED ACTION
1. Approve the contract with MDJ Management LLC in the amount of $225,706 for the repair of the Police Department shower and restroom; and authorize the Mayor and City Clerk to execute on behalf of the City.
2. Find that the proposed project is categorically exempt from the provisions of the California Environmental Quality Act.
3. Authorize the appropriation of $25,000 from Police Facility Fees (570) unreserved fund balance to:
570.4011.56020.19809 Repairs to Buildings and Fixed Equipment
4. FISCAL IMPACT
The expense for this contract is $225,706 and will be funded through Capital Project Fund (500) and Police Facility Fees (570) respectively:
500.5028.56020.19809 Capital Project Fund $200,706
570.4011.56020.19809 Police Facility Fees $25,000
5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
Goal 5: Improve Infrastructure, Mobility, and Technology
6. DISCUSSION AND BACKGROUND
The showers and restrooms adjacent to the Police Department locker rooms urgently need repairs due to leaks and aging pipes. The sewer pipes frequently back up, and the water supply leaks consistently. Immediate action is essential to restore functionality and maintain the structural and City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
323
Item #: 3.13. 4/8/2025 File #: 25-0117
consistently. Immediate action is essential to restore functionality and maintain the structural and sanitary integrity of the facilities.
The Public Works Department contacted several vendors and utilized various procurement strategies to hire a skilled contractor for this project at a reasonable cost. Staff worked with the project coordinator from Gordian EzIQC to develop the scope of work for this project, using a contractor from Sourcewell. This procurement method involves a cooperative purchasing arrangement employed by multiple government agencies to reduce costs and minimize the impact on staff resources. The City Council has previously authorized a Cooperative Purchasing Agreement (CPA) for a similar project, and this contract continues that policy.
By utilizing Sourcewell, the City can access highly qualified specialty contractors while lowering overall capital costs. Sourcewell provides competitive bids for construction tasks, specifications, materials, equipment, and labor costs. The City has previously used the CPA procurement process and is a member of Sourcewell.
The repairs will primarily focus on replacing the affected piping in the men's and women's showers and restrooms, ensuring long-term reliability and extending the building's lifespan. After thorough consideration, staff recommends MDJ Management, LLC (Contract No. CA-RA-GB-101723-MDJ) for the project. The proposed price of $225,706 for the repairs has been reviewed and deemed fair, reasonable, and consistent with the established unit prices outlined in the contract with Sourcewell.
The project is scheduled to commence in May 2025 and will be completed within 90 days.
7. ENVIRONMENTAL REVIEW
Categorical Exemption: The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15301 (Class 1 - Existing Facilities) because the project consists of interior shower and restroom repairs at an existing facility involving negligible or no expansion of existing or former use.
8. ATTACHMENT
· Contract with MDJ Management, LLC
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
324
CONTRACT
[Police Department Shower & Restroom Repairs (SP-4305)
Sourcewell Contract # CA-R8-GB-101723-MDJ]
THIS CONTRACT (the “Contract”) is made and entered into as of ________________, 2025 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and MDJ MANAGEMENT, LLC, a California limited liability company (“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) The “City of Orange Standard Special Provisions;”
(4) The Standard Plans; and
(5) Contractor’s Bid Proposal , which is on file with City’s Department of Public Works.
b. Contractor acknowledges that it has received the Plans from City and that a complete copy of the Plans are in its possession and are hereby specifically referred to and by such reference made a part hereof. The Orange Book, 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.”
325
2 c. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal Code which requires, among other things, that Contractor utilize City’s exclusive solid waste hauler for the rental of bins for trash and debris removal and imposes mandatory recycling requirements for self-hauled construction and demolition waste. The terms and conditions set forth in this Contract shall control over any terms and conditions in the Plans and Specifications to the contrary.
d. The Work shall be performed in conformity with the Plans and Specifications and the Bid Proposal and all applicable laws, including any and all applicable federal and state labor laws and standards and applicable prevailing wage requirements and any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment.
e. Unless and until otherwise notified in writing by City’s Public Works Director, City’s Assistant Field Service Manager , Ruben Hernandez (“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 ninety (90) 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
Contractor agrees to receive and accept an amount not to exceed TWO HUNDRED TWENTY-FIVE THOUSAND SEVEN HUNDRED FIVE DOLLARS and 11/100 ($225,705.11) 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 326
3 incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them.
Retention amounts shall be withheld from progress payments as required by law unless Contractor provides securities in lieu of retention.
ARTICLE 4
Licenses
Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the Work contemplated by this Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.
ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract.
b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any p art thereof fail to 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 re imburse 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.
327
4 ARTICLE 6
Water Quality
a. The Santa Ana Regional Water Quality Control Board (“RWQCB”) has issued National Pollutant Discharge Elimination System (“NPDES”) Permit No. R8 -2009-0030 (the “Permit”), which governs storm water and non -storm water discharges resulting from municipal activities performed by City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Drainage Area Management Plan (“DAMP”), containing Model Maintenance Procedures with Best Management Practices (“BMPs”) th at City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry -weather urban runoff, storm water runoff, and receiving water quali ty. Examples include: wash water from cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.
b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the office of City’s Director of Public Works. Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they relate to the Work and hereby shall perform the Work in conformance therewith.
ARTICLE 7
Independent Contractor; Contractor not Agent
a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this 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 328
5 classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.
b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed and understands those provisions of the Labor Code and shall prosecute and complete the Work under this Contract in strict compliance with all of those terms and provisions.
c. Contractor shall secure the payment of compensation to its employees in accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
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 W ork which is the subject of this Contract, Contractor shall bear all risks of payment or non -payment of state prevailing wages. “Increased costs” as used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time t o time. The foregoing indemnity shall survive termination of this Contract.
ARTICLE 9
Equal Employment Opportunity
During the performance of this Contract, Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. 329
6 Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor shall post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, men tal or physical disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.
ARTICLE 10
Conflicts of Interest
Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the builder for any project for which the design work is part of this Contract.
ARTICLE 11
Indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials, agents, and employees from and against:
a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses (including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain or suffer arising from or as a result of the death of any person or any acc ident, injury, loss or damage whatsoever caused to any person or the property of any person which shall occur on or adjacent to the real property which is the subject of this Contract, or in connection with performance of this Contract which may be direc tly or indirectly caused by the acts or omissions of Contractor or its officers, employees, contractors or agents, or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract.
b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.
330
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 self - insured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.
e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:
(1) City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, with respect to liability arising out of automobiles 331
8 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 contrac ting 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 t o either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.
The Workers’ Compensation pol icy shall be endorsed with a waiver of subrogation in favor of City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor shall obtain any other endorsement that may be necessary to effect this waiver of subrogation.
j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.
332
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 te rmination shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.
ARTICLE 14
Maintenance and Inspection of Records
In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records and other information (collectively, the “records”) pertaining to the co sts of and completion of services performed under this Contract. During the term of this Contract and for a period of three (3) years after termination or completion of this Contract, City shall have the right to inspect and/or audit Contractor's records pertaining to the performance of this Contract at Contractor's office. Contractor shall make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.
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
333
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 associ ated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Contract without written notice to City, accompanied by the verification required herein for such employees. Contractor shall require all subcontractors and/or sub-consultants to make the same verification when hired to perform services under this Contract.
e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee providing Work under this Contract who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee , such shall constitute a material breach of this Contract and may be cause for immediate termination of this Contract by City.
f. Contractor shall indemnify and hold City, its officials and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of Contractor’s failure to comply with said laws, rules and regulati ons in connection with the performance of this Contract.
ARTICLE 16
Governing Law and Venue
This Contract shall be construed in accordance with and governed by the laws of the State of California and Contractor shall submit to the juri sdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California.
ARTICLE 17
Integration and Amendment
a. This Contract constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the Work to be performed under this Contract shall be of any force or effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent with or in violation of the provisions of this Contract shall not be compensated.
b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.
334
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”
MDJ Management, LLC City of Orange
531 Main Street # 611 300 E. Chapman Avenue
El Segundo, CA 90245 Orange, CA 92866-1591
Attn: Matthew McMillon Attn: Ruben Hernandez
Telephone: 310-490-1521 Telephone: 714-532-6455
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] 335
336
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 an d valid certificate of workers' compensation insurance or certification of self-insurance required under Section 7125 of the Business and Professions Code. (B) If applicable, the contractor is licensed in accordance with Chapter 9 (commencing with Section 7000) of the Business and Professions Code.
(C) The contractor does not have any delinquent liability to an employee or the state for any assessment of back wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination by a court or any federal, state, or local administrative agency, including a confirmed arbitration award. However, for purposes of this paragraph, the contractor shall not be disqualified for any judgment, order, or determination that is under appeal, provided that the contractor has secured the payment of any amount eventually found due through a bond or other appropriate means. (D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law providing for the debarment of contractors from public works. (E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the performance of a contract for public works without being lawfully registered in accordance with this section, within the preceding 12 months or since the ef fective 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:
337
Attachment No. 1
(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. 338
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) 339
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 con tractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 340
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 1776 for at least three years after completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
341
Attachment No. 1
(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 342
Attachment No. 1
or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.
Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules
(a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journey man, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771 , 1811, and 1815 for any work performed by his or her employees on the public works project. 343
Attachment No. 1
(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.
The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft -Hartley trust fund ( 29 U.S.C. Sec. 186(c)(5) ) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor - management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 344
Attachment No. 1
(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each cal endar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code ) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.
Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program
(a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or underg o testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written 345
Attachment No. 1
apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o).
(e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, i f requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a s ubcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 346
Attachment No. 1
of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1 -to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which th e apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002 -03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Indust rial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
347
Attachment No. 1
(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used s olely for training apprentices. For purposes of this subparagraph, adequate records incl ude, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to recei ve any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate th e process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.
Section 1813. Forfeiture for violations; contract stipulation; report of violations
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 348
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 executi on of the contract, and shall report them to the Division of Labor Standards Enforcement.
Section 1815. Overtime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 h ours per day at not less than 1 ½ times the basic rate of pay.
349
Attachment No. 2
ATTACHMENT NO. 2
CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204
Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017)
(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and f ormed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 350
Attachment No. 2
(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying w hat portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutu ally agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and conf er for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 351
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 behal f of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontrac tor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civi l action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 352
Agenda Item
City Council
Item #: 3.14. 4/8/2025 File #: 25-0164
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Contract to CT&T Concrete Paving, Inc. for Community Development Block Grant Fiscal Year 2024-2025 Americans with Disabilities Act Wheelchair Ramp Replacement; Bid No. 24-25.15 (SP-4295).
2. SUMMARY
Bids for the Community Development Block Grant Fiscal Year 2024-2025 Americans With Disabilities Act Wheelchair Ramp Replacement Project were received and opened on March 6, 2025. Six bidders responded to the notice inviting bids. The apparent low bidder and the next two lowest bidders were deemed non-responsive, therefore staff is recommending to award the project to the fourth lowest bidder, CT&T Concrete Paving, Inc. of Pomona, CA.
3. RECOMMENDED ACTION
1. Authorize the Amendment to the Memorandum of Understanding between the City of Orange and the Public Works Department to increase the 2024-2025 Americans with Disabilities Act Wheelchair Access Ramp Project by $10,000, for a total not-to-exceed amount of $110,000; and authorize the City Manager or his designee to execute the amendment on behalf of the City.
2. Authorize the Amendment to the 2024-2025 Annual Action Plan to increase the allocation to the 2024-2025 Americans with Disabilities Act Wheelchair Access Ramp Project by $10,000 for a total allocation of $110,000 and submit the Amendment to the Department of Housing and Urban Development (HUD).
3. Authorize the following budget transfer in Community Development Block Grant (310):
From: 310.9645.56582.30243 Pixley & Walnut St Rehab Grant $10,000 To: 310.9645.56330.11328 ADA Improvements - Curbs $10,000
4. Reject the bids received from the apparent low bidder, CJ Concrete Construction, Inc., and the next two lowest bidders, SAVI Construction, Inc. and Gentry General Engineering, Inc., on the basis that the bids were not responsive.
5. Waive minor bidding irregularity in the bid proposal received by CT&T Concrete Paving, Inc.
6. Approve the contract with CT&T Concrete Paving, Inc. in the amount of $93,456, representing an original bid amount of $84,960, plus a 10% contingency of $8,496, for Community City of Orange Printed on 4/3/2025Page 1 of 3
powered by Legistar™
353
Item #: 3.14. 4/8/2025 File #: 25-0164
an original bid amount of $84,960, plus a 10% contingency of $8,496, for Community Development Block Grant Fiscal Year 2024-2025 Americans With Disabilities Act Wheelchair Ramp Replacement; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The expense for this contract is $93,456 and will be funded through Community Development Block Grant (310):
310.9645.56330.11328 ADA Improvements - Curbs
5. STRATEGIC PLAN GOALS
Goal 5: Improve infrastructure, mobility, and technology.
6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in Low and Moderate Income Areas within their jurisdiction. The proposed wheelchair ramp improvements project was approved through the 2024- 2025 Action Plan process on May 28, 2024.
The scope of the project mainly includes removal of existing wheelchair access ramps and replacement with Americans with Disabilities Act (ADA) compliant wheelchair access ramps. This project will include the construction of ten ADA compliant access ramps at various locations. As part of this project, detectable warning surfaces (truncated domes) will be installed per the American with Disabilities Act Accessibility Guidelines (ADAAG) requirements.
The City Council previously approved an advertisement for bids on January 28, 2025. The bid solicitation was advertised on February 6, 2025, for a period of four weeks and bids were opened on March 6, 2025. Six bids were received as follows:
1. CJ Concrete Construction, Inc., Santa Fe Springs $72,000
2. SAVI Construction, Inc., Chino $78,000
3. Gentry General Engineering, Inc, Colton $83,000
4. CT&T Concrete Paving, Inc., Pomona $84,960
5. We R Builders, Inc., Glendale $89,000
6. Carter Enterprises Group, Inc., Anaheim $120,000
There was a minor bidding irregularity in the CT&T Concrete Paving, Inc. bid. The bid was missing the required Build America, Buy America Act (BABA) Self-Certification form. The missing form was subsequently submitted after the bid opening, so staff is recommending the City Council waive this minor bidding irregularity.
Upon review of the bids received, staff determined that the apparent low bidder, CJ Concrete Construction, Inc., and the second and third lowest bidders, SAVI Construction, Inc. and Gentry General Engineering, Inc., respectively, were not responsive to and did not conform in all material respects to the specifications contained in the City’sinvitation for bids. CJ Concrete Construction, Inc. and Gentry General Engineering, Inc. failed to meet the Disadvantaged Business Enterprise (DBE) goal of 8% and did not provide documented good faith efforts to acquire DBE participation in lieu of meeting the minimum DBE goal. SAVI Construction, Inc. failed to meet the minimum required City of Orange Printed on 4/3/2025Page 2 of 3
powered by Legistar™
354
Item #: 3.14. 4/8/2025 File #: 25-0164
lieu of meeting the minimum DBE goal. SAVI Construction, Inc. failed to meet the minimum required work experience in the form of at least three projects of similar scope completed as the prime contractor in the past seven years.
The fourth lowest bid in the amount of $84,960 was from CT&T Concrete Paving, Inc. and is approximately 18% higher than the engineer’s estimate. Staff checked the references and qualifications for CT&T Concrete Paving, Inc. and found them to be acceptable, with adequate years of experience in completing contracts of similar nature to this project. Therefore, staff recommends that CT&T Concrete Paving, Inc. be awarded the contract in the total amount of $93,456, representing an original amount of $84,960, plus a 10% contingency of $8,496 for the CDBG Fiscal Year 2024-2025 ADA Wheelchair Access Ramp Replacement Project.
Construction is scheduled to begin in May 2025 and is expected to be completed within 30 calendar days.
Annual Action Plan/Citizen Participation Plan
The City’sCitizen Participation Plan (CPP) provides a guide to ensure citizen and interested party participation in the development of the City’sAnnual Action Plan. The Annual Action Plan outlines the City’splans for the use of CDBG funding received in a specific year. Per the CPP, an increase of over 20% of the original allocation to an approved project requires a substantial amendment to the Annual Action Plan in which the project was approved and would require a 30-day public review for comment and Public Hearing at City Council. The proposed increase of $10,000 to the CDBG Fiscal Year 2024 -2025 ADA Wheelchair Access Ramp Replacement Project does not meet the criteria for a substantial amendment to the 2024-2025 Annual Action Plan as it is below 20% (or $20,000) of the original allocation. The amendment, therefore, requires only City Council approval to be submitted and accepted by the U.S. Department of Housing and HUD.
7. ATTACHMENTS
· Attachment 1 Contract with CT&T Concrete Paving, Inc. · Attachment 2 Bid Abstract
· Attachment 3 Amendment to 2024-2025 Annual Action Plan · Attachment 4 Amendment to Memorandum of Understanding between the City of Orange and the Public Works Department
City of Orange Printed on 4/3/2025Page 3 of 3
powered by Legistar™
355
Agenda Item
City Council
Item #: 3.14. 4/8/2025 File #: 25-0164
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Contract to CT&T Concrete Paving, Inc. for Community Development Block Grant Fiscal Year 2024-2025 Americans with Disabilities Act Wheelchair Ramp Replacement; Bid No. 24-25.15 (SP-4295).
2. SUMMARY
Bids for the Community Development Block Grant Fiscal Year 2024-2025 Americans With Disabilities Act Wheelchair Ramp Replacement Project were received and opened on March 6, 2025. Six bidders responded to the notice inviting bids. The apparent low bidder and the next two lowest bidders were deemed non-responsive, therefore staff is recommending to award the project to the fourth lowest bidder, CT&T Concrete Paving, Inc. of Pomona, CA.
3. RECOMMENDED ACTION
1. Authorize the Amendment to the Memorandum of Understanding between the City of Orange and the Public Works Department to increase the 2024-2025 Americans with Disabilities Act Wheelchair Access Ramp Project by $10,000, for a total not-to-exceed amount of $110,000; and authorize the City Manager or his designee to execute the amendment on behalf of the City.
2. Authorize the Amendment to the 2024-2025 Annual Action Plan to increase the allocation to the 2024-2025 Americans with Disabilities Act Wheelchair Access Ramp Project by $10,000 for a total allocation of $110,000 and submit the Amendment to the Department of Housing and Urban Development (HUD).
3. Authorize the following budget transfer in Community Development Block Grant (310):
From: 310.9645.56582.30243 Pixley & Walnut St Rehab Grant $10,000 To: 310.9645.56330.11328 ADA Improvements - Curbs $10,000
4. Reject the bids received from the apparent low bidder, CJ Concrete Construction, Inc., and the next two lowest bidders, SAVI Construction, Inc. and Gentry General Engineering, Inc., on the basis that the bids were not responsive.
5. Waive minor bidding irregularity in the bid proposal received by CT&T Concrete Paving, Inc.
6. Approve the contract with CT&T Concrete Paving, Inc. in the amount of $93,456, representing an original bid amount of $84,960, plus a 10% contingency of $8,496, for Community City of Orange Printed on 4/3/2025Page 1 of 3
powered by Legistar™
356
Item #: 3.14. 4/8/2025 File #: 25-0164
an original bid amount of $84,960, plus a 10% contingency of $8,496, for Community Development Block Grant Fiscal Year 2024-2025 Americans With Disabilities Act Wheelchair Ramp Replacement; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The expense for this contract is $93,456 and will be funded through Community Development Block Grant (310):
310.9645.56330.11328 ADA Improvements - Curbs
5. STRATEGIC PLAN GOALS
Goal 5: Improve infrastructure, mobility, and technology.
6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in Low and Moderate Income Areas within their jurisdiction. The proposed wheelchair ramp improvements project was approved through the 2024- 2025 Action Plan process on May 28, 2024.
The scope of the project mainly includes removal of existing wheelchair access ramps and replacement with Americans with Disabilities Act (ADA) compliant wheelchair access ramps. This project will include the construction of ten ADA compliant access ramps at various locations. As part of this project, detectable warning surfaces (truncated domes) will be installed per the American with Disabilities Act Accessibility Guidelines (ADAAG) requirements.
The City Council previously approved an advertisement for bids on January 28, 2025. The bid solicitation was advertised on February 6, 2025, for a period of four weeks and bids were opened on March 6, 2025. Six bids were received as follows:
1. CJ Concrete Construction, Inc., Santa Fe Springs $72,000
2. SAVI Construction, Inc., Chino $78,000
3. Gentry General Engineering, Inc, Colton $83,000
4. CT&T Concrete Paving, Inc., Pomona $84,960
5. We R Builders, Inc., Glendale $89,000
6. Carter Enterprises Group, Inc., Anaheim $120,000
There was a minor bidding irregularity in the CT&T Concrete Paving, Inc. bid. The bid was missing the required Build America, Buy America Act (BABA) Self-Certification form. The missing form was subsequently submitted after the bid opening, so staff is recommending the City Council waive this minor bidding irregularity.
Upon review of the bids received, staff determined that the apparent low bidder, CJ Concrete Construction, Inc., and the second and third lowest bidders, SAVI Construction, Inc. and Gentry General Engineering, Inc., respectively, were not responsive to and did not conform in all material respects to the specifications contained in the City’sinvitation for bids. CJ Concrete Construction, Inc. and Gentry General Engineering, Inc. failed to meet the Disadvantaged Business Enterprise (DBE) goal of 8% and did not provide documented good faith efforts to acquire DBE participation in lieu of meeting the minimum DBE goal. SAVI Construction, Inc. failed to meet the minimum required City of Orange Printed on 4/3/2025Page 2 of 3
powered by Legistar™
357
Item #: 3.14. 4/8/2025 File #: 25-0164
lieu of meeting the minimum DBE goal. SAVI Construction, Inc. failed to meet the minimum required work experience in the form of at least three projects of similar scope completed as the prime contractor in the past seven years.
The fourth lowest bid in the amount of $84,960 was from CT&T Concrete Paving, Inc. and is approximately 18% higher than the engineer’s estimate. Staff checked the references and qualifications for CT&T Concrete Paving, Inc. and found them to be acceptable, with adequate years of experience in completing contracts of similar nature to this project. Therefore, staff recommends that CT&T Concrete Paving, Inc. be awarded the contract in the total amount of $93,456, representing an original amount of $84,960, plus a 10% contingency of $8,496 for the CDBG Fiscal Year 2024-2025 ADA Wheelchair Access Ramp Replacement Project.
Construction is scheduled to begin in May 2025 and is expected to be completed within 30 calendar days.
Annual Action Plan/Citizen Participation Plan
The City’sCitizen Participation Plan (CPP) provides a guide to ensure citizen and interested party participation in the development of the City’sAnnual Action Plan. The Annual Action Plan outlines the City’splans for the use of CDBG funding received in a specific year. Per the CPP, an increase of over 20% of the original allocation to an approved project requires a substantial amendment to the Annual Action Plan in which the project was approved and would require a 30-day public review for comment and Public Hearing at City Council. The proposed increase of $10,000 to the CDBG Fiscal Year 2024 -2025 ADA Wheelchair Access Ramp Replacement Project does not meet the criteria for a substantial amendment to the 2024-2025 Annual Action Plan as it is below 20% (or $20,000) of the original allocation. The amendment, therefore, requires only City Council approval to be submitted and accepted by the U.S. Department of Housing and HUD.
7. ATTACHMENTS
· Attachment 1 Contract with CT&T Concrete Paving, Inc. · Attachment 2 Bid Abstract
· Attachment 3 Amendment to 2024-2025 Annual Action Plan · Attachment 4 Amendment to Memorandum of Understanding between the City of Orange and the Public Works Department
City of Orange Printed on 4/3/2025Page 3 of 3
powered by Legistar™
358
CONTRACT
[CDBG FY 2024-2025 Americans With Disabilities Act (ADA) Wheelchair Access Ramp Replacement (Bid No.24-25.15)]
THIS CONTRACT (the “Contract”) is made and ente red into as of ___ ___________, 2025 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and CT&T CONCRETE PAVING, INC., a California corporation (“Contractor”), who agree as follows.
ARTICLE 1
Work Performed
a. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by City, and under the conditions expressed in the two (2) bonds presented to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to and shall do all the work and furnish all the labor, materials, tools and equipment, except such as are mentioned in the specifications to be furnished by City to Contractor, necessary to complete in good workmanship and substantial manner the work (the “Work”) described in:
(1) The Construction Plans for CDBG FY 2024 -2025 Pixley Neighborhood Street Rehabilitation (Drawing SP-4295) prepared for City by Martin Varona, and consisting of sheets numbered 1 through 1, inclusive (the “Plans”);
(2) 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);
(3) 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;”
(4) The Compliance Documents attached as Attachment No. 3 and incorporated herein by this reference; and
(5) The Labor Relations Forms attached as Attachment No. 4 and incorporated herein by this reference; and
(6) The Federal Provisions and Requirements attached as Attachment No. 5 and incorporated herein by this reference; and
(7) The Federal Prevailing Wage Rates attached as Attachment No. 6 and incorporated herein by this reference; and
359
2 (8) The Build America, Buy America (BABA) Requirements attached as Attachment No. 7 and incorporated herein by this reference; and
(9) The “City of Orange Standard Special Provisions;”
(10) The Standard Plans; and
(11) Contractor’s Bid Proposal , which is on file with City’s Department of Public Works.
b. Contractor acknowledges that it has received the Plans from City and that a complete copy of the Plans are in its possession and are hereby specifically referred to and by such reference made a part hereof. The Orange Book, 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 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 Principal Civil Engineer, Randy Nguyen (“Authorized City Representative”), shall be the person to whom Contractor will report for the performance of the Work hereunder. It is understood that Contractor’s performance hereunder shall be under the direction and supervision of the Authorized City Representative or such other person as City’s Public Works Director may designate from time to time, that Contractor shall coordinate the Work hereunder with the Authorized City Representative to the extent required by the Authorized City Representative, 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.
360
3 g. Contractor agrees that it has an obligation to reset all permanent survey markers as stated in the Orange Book, Part 4, Section 400-2, “Permanent Survey Markers ,” and obtain the approval for pre- and post-construction centerline tie sheets and Corner Records from the County of Orange and deliver said approved documents to City as soon as they are received. This obligation extends to any of its subcontractors that have performed work in this regard. This subsection survives completion of the Work, the Notice of Completion, a nd final payment and shall be an enforceable obligation until fulfilled.
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 THIRTY (30) 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 EIGHTY-FOUR THOUSAND NINE HUNDRED SIXTY DOLLARS and 00/100 ($84,960.00), unless said amount is amended by Contract Change Order approved by the City , as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the Work , from the acts of the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by City, other than as provided below; (3) all risks of every description connected with the Work; (4) all expenses incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them. Retention amounts shall be withheld from progress payments as required by law unless Contractor provides securities in lieu of retention.
b. In addition to the scheduled Work to be performed by the Contractor, the parties recognize that additional, unforeseen work and services may be required by the Authorized City Representative. In anticipation of such contingencies, the sum of EIGHT THOUSAND FOUR HUNDRED NINETY -SIX DOLLARS and 00/100 ($ 8,496.00) has been added to the total compensation of this Contract. The Authorized City Representative may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as the Authorized City Representative and the Contracto r may agree upon in advance. Said additional work or services and the amount of compensation therefor, up to the amount of the authorized contingency, shall be memorialized in the form of a Contract Amendment approved by the City Manager on a form acceptable to the City Attorney . The Contractor agrees to perform only that work or those services that are specifically requested by the 361
4 Authorized City Representative. Any and all additional work and services performed under this Contract shall be completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate or proposal submitted to and approved by the Authorized City Representative prior to the commencement of such Work or services.
c. The total amount of compensation under this Contract, including contingencies, shall not exceed NINETY-THREE THOUSAND FOUR HUNDRED FIFTY -SIX DOLLARS and 00/100 ($93,456.00).
ARTICLE 4
Licenses
Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the Work contemplated by this Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.
ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract.
b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any p art thereof fail to 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 362
5 due to an immediate detriment to the health, safety, welfare or convenience of the residents of City.
ARTICLE 6
Water Quality
a. The Santa Ana Regional Water Quality Control Board (“RWQCB”) has issued National Pollutant Discharge Elimination System (“NPDES”) Permit No. R8 -2009-0030 (the “Permit”), which governs storm water and non -storm water discharges resulting from municipal activities performed by City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Drainage Area Management Plan (“DAMP”), containing Model Maintenance Procedures with Best Management Practices (“BMPs”) th at City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry -weather urban runoff, storm water runoff, and receiving water quali ty. Examples include: wash water from cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.
b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the office of City’s Director of Public Works. Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they relate to the Work and hereby shall perform the Work in conformance therewith.
ARTICLE 7
Independent Contractor; Contractor not Agent
a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this Contrac t. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this 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 an y 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 be nefits, 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.
363
6 ARTICLE 8
Public Work; Prevailing Wage
a. The Work which is the subject of this Contract is a “public work,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.
To the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.
b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed and understands those provisions of the Labor Code and shall prosecute and complete the Work under this Contract in strict compliance with all of those terms and provisions.
c. Contractor shall secure the payment of compensation to its employees in accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
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 W ork which is the subject of this Contract, Contractor shall bear all risks of payment or non -payment of state prevailing wages. “Increased costs” as used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time t o time. The foregoing indemnity shall survive termination of this Contract.
ARTICLE 9
Equal Employment Opportunity
During the performance of this Contract, Contractor agrees as follows:
364
7 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 emp loyment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor shall post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, men tal or physical disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.
ARTICLE 10
Conflicts of Interest
Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the builder for any project for which the design work is part of this Contract.
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 sub ject 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 office rs, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract. 365
8 b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.
ARTICLE 12
Insurance
a. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder and the results of that Work by Contractor, its agents, representatives, employees or subcontractors. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Contract.
b. Contractor shall maintain the following minimum amount of insurance: the greater of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits carried by or available to Contractor.
(1) General Liability $2,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.
(2) Automobile Liability $1,000,000 per accident for bodily injury and property damage.
(3) Workers’ Compensation as required by the State of California.
(4) Employer’s Liability $1,000,000 per accident for bodily injury or disease.
c. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of Contractor under this Contract.
d. Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self - insured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 366
9 e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:
(1) City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of Contractor (any auto), and with respect to liability arising out of Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such Work or operations. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall apply to City as an additional insured.
(2) For any claims related to this Contract, Contractor’s insurance coverage shall be primary insurance with respect to City, its officers, officials, agents and employees. Any insurance or self-insurance maintained by City, its officers, officials, agents and employees shall be excess of Contractor’s insurance and shall not contribute with it.
(3) Coverage shall not be canceled, except after thirty (30) days’ prior written notice has been provided to City.
f. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Article 12. The endorsements shall be on forms acceptable to City. All certificates and endorsements are to be received and approved by City before the Work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
g. All insurance procured and maintained by Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.
h. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Contract unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom by way of set-off from any sums owed Contractor.
i. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance t o either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.
The Workers’ Compensation pol icy shall be endorsed with a waiver of subrogation in favor of City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor shall obtain any other endorsement that may be necessary to effect this waiver of subrogation. 367
10 j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.
ARTICLE 13
Termination
City, acting through its City Manager or 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 te rmination shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.
ARTICLE 14
Maintenance and Inspection of Records
In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records and other information (collectively, the “records”) pertaining to the co sts of and completion of services performed under this Contract. During the term of this Contract and for a period of three (3) years after termination or completion of this Contract, City shall have the right to inspect and/or audit Contractor's records pertaining to the performance of this Contract at Contractor's office. Contractor shall make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.
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
368
11 (3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and
(4) Has responded, and shall at all times during the term of this Contract respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of 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 associ ated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Contract without written notice to City, accompanied by the verification required herein for such employees. Contractor shall require all subcontractors and/or sub-consultants to make the same verification when hired to perform services under this Contract.
e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee providing Work under this Contract who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee , such shall constitute a material breach of this Contract and may be cause for immediate termination of this Contract by City.
f. Contractor shall indemnify and hold City, its officials and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of Contractor’s failure to comply with said laws, rules and regulati ons in connection with the performance of this Contract.
ARTICLE 16
Governing Law and Venue
This Contract shall be construed in accordance with and governed by the laws of the State of California and Contractor shall submit to the juri sdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California.
ARTICLE 17
Integration and Amendment
a. This Contract constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the Work to be performed under this Contract shall be of any force or 369
12 effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent with or in violation of the provisions of this Contract shall not be compensated.
b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.
ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.
“CONTRACTOR” “CITY”
CT&T Concrete Paving, Inc. City of Orange
324 S. Diamond Bar Blvd, PMB 275 300 E. Chapman Avenue Diamond Bar, CA 91765 Orange, CA 92866-1591
Attn: Jose Carvajal Attn: Randy Nguyen
Telephone: 909-629-8000 Telephone: 714-744-5531
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.
[Signatures on next page]
370
371
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 an d valid certificate of workers' compensation insurance or certification of self-insurance required under Section 7125 of the Business and Professions Code. (B) If applicable, the contractor is licensed in accordance with Chapter 9 (commencing with Section 7000) of the Business and Professions Code.
(C) The contractor does not have any delinquent liability to an employee or the state for any assessment of back wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination by a court or any federal, state, or local administrative agency, including a confirmed arbitration award. However, for purposes of this paragraph, the contractor shall not be disqualified for any judgment, order, or determination that is under appeal, provided that the contractor has secured the payment of any amount eventually found due through a bond or other appropriate means. (D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law providing for the debarment of contractors from public works. (E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the performance of a contract for public works without being lawfully registered in accordance with this section, within the preceding 12 months or sinc e the effective date of the requirements set forth in subdivision (e), whichever is earlier. If a contractor is found to be in violation of the requirements of this paragraph, the period of disqualification shall be waived if both of the following are true:
372
Attachment No. 1
(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within the preceding 12 months.
(ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000). (b) Fees received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the performance of any contract for public work until once again registered pursuant to this section. If the failure to pay the renewal fee was inadvertent, the contractor may renew its registration retroactively by paying an additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the due date of the renewal fee.
(d) If, after a body awarding a contract accepts the contractor's bid or awards the contract, the work covered by the bid or contract is determined to be a public work to which Section 1771 applies, either as the result of a determination by the director pursuant to Section 1773.5 or a court decision, the requirements of this section shall not apply, subject to the following requirements:
(1) The body that awarded the contract failed, in the bid specification or in the contract documents, to identify as a public work that portion of the work that the determination or decision subsequently classifies as a public work.
(2) Within 20 days following service of notice on the awarding body of a determination by the Director of Industrial Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work as defined in this chapter, the contractor and any subcontractors are registered under this section or are replaced by a contractor or subcontractors who are registered under this section. (3) The requirements of this section shall apply prospectively only to any subsequent bid, bid proposal, contract, or work performed after the awarding body is served with notice of the determination or decision referred to in paragraph (2).
(e) The requirements of this section shall apply to any bid proposal submitted on or after March 1, 2015, to any contract for public work, as defined in this chapter, executed on or after April 1, 2015, and to any work performed under a contract for public work on or after January 1, 2018, regardless of when the contract for public work was executed.
(f) This section does not apply to work performed on a public works project of twenty -five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.
Section 1771. Payment of general prevailing rate
Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general pre vailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.
This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work. 373
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) 374
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 con tractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 375
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 1776 for at least three years after completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
376
Attachment No. 1
(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 377
Attachment No. 1
or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.
Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules
(a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journey man, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771 , 1811, and 1815 for any work performed by his or her employees on the public works project. 378
Attachment No. 1
(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.
The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft -Hartley trust fund ( 29 U.S.C. Sec. 186(c)(5) ) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor - management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 379
Attachment No. 1
(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each cal endar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code ) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.
Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program
(a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or undergo testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time sp ent 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 380
Attachment No. 1
apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o).
(e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, i f requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a s ubcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 381
Attachment No. 1
of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1 -to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which th e apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002 -03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Indust rial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
382
Attachment No. 1
(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used s olely for training apprentices. For purposes of this subparagraph, adequate records incl ude, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to recei ve any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate th e process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.
Section 1813. Forfeiture for violations; contract stipulation; report of violations
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 383
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 executi on of the contract, and shall report them to the Division of Labor Standards Enforcement.
Section 1815. Overtime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 h ours per day at not less than 1 ½ times the basic rate of pay.
384
Attachment No. 2
ATTACHMENT NO. 2
CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204
Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017)
(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and f ormed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 385
Attachment No. 2
(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying w hat portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutu ally agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and conf er for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 386
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 behal f of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontrac tor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civi l action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 387
1 2 3 4 5 6
Bid No. 24-25.15; Project No. SP-4295
Date of Bid Opening: 3/6/2025
Tel. No. (562) 777-2222 Tel. No. (805) 889-3547 Tel. No. (909) 330-1128 Tel. No. (909) 629-8000 Tel. No. (714) 874-5275 Tel. No. (714) 238-1444 NO. DESCRIPTION OF WORK QUANTITY UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Sawcut, Remove, and Construct New
Wheelchair Access Ramp with Detectable
Warning Surface per City Std. 121 10 EA 7,800.00$ $78,000.00 $7,200.00 $72,000.00 $7,800.00 $78,000.00 $8,300.00 $83,000.00 $8,496.00 $84,960.00 $8,900.00 $89,000.00 $12,000.00 $120,000.00 $78,000.00 $72,000.00 $78,000.00 $83,000.00 $84,960.00 $89,000.00 $120,000.00Grand Total
PAVEMENT IMPROVEMENTS
ENGINEER'S ESTIMATE
CDBG FY 2024-2025 ADA Wheelchair Access Ramp
Replacement
CJ Concrete Construction, Inc. SAVI Construction, Inc. Gentry General Engineering, Inc.
Santa Fe Springs, CA
CT&T Concrete Paving, Inc.
Pomona, CA
We R Builders Carter Enterprises Group, Inc.
dba Pavement Rehab Company
Glendale, CA Anaheim, CA
City of Orange: Summary of Bid Abstracts for:
Chino, CA Colton, CA
CITY OF ORANGE
AMENDMENT TO THE
2024-2025 ANNUAL ACTION PLAN
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) mandates that jurisdictions receiving annual entitlement funding through the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs develop a Consolidated Plan (Con Plan) every five years. This plan is designed to establish the city’s housing and community development priorities, ensuring alignment with the objectives of the CDBG and HOME programs. Serving as a comprehensive strategic framework, the Con Plan enables the city to assess affordable housing and community development needs, evaluate market conditions, and make informed decisions based on data analysis.
The Consolidated Plan is implemented through Annual Action Plans, which provide a comprehensive summary of the strategies, activities, and federal and non-federal resources allocated each year to address the specific needs and objectives outlined in the Con Plan.
The City shall amend the approved Consolidated Plan and Annual Action Plans when:
A substantial change (e.g., 20% or more) in its allocation priorities or a substantial change in the method of distribution of funds takes place; or Carries out an activity, using funds from any program covered by the consolidated plan (including program income), not previously described in the action plan; or Substantially change the purpose, scope, location, or beneficiaries of an activity.
The substantial change criteria utilized by the City of Orange in this case, is determined by a the addition of a new activity that was not previously considered by the Council for the use of HUD funding and in which the change would exceed:
1. 20% of the original allocations or when beneficiaries are impacted by the change; and/or
2. Carries out an activity, using funds from any program covered by the consolidated plan (including program income), not previously described in the action plan As required by Title I of the Cranston-Gonzalez National Affordable Housing Act, the City of Orange has submitted an Annual Action Plan for the 2024-2025 fiscal year. This Plans outlines the activities and expected allocation for this year. The City also has a Citizen Participation Plan which outlines procedures for citizen participation in the 389
Second Amendment
2024-2025 Annual Action Plan
planning process of the Consolidated Plan and Annual Action Plan particularly to those areas to be affected by the proposed funds.
AMENDMENT TO 2023-2024 ANNUAL ACTION PLAN
At the May 28, 2024, City Council meeting, members of the City Council approved the allocation of the HUD funds for the 2024–2025 fiscal year. Through the Community Development Block Grant (CDBG), the city will allocate an additional $10,000.00 of available funding that has remained unspent on the 2024-2025 ADA Wheelchair Access Ramp Project to cover the administrative and constructions costs related to the removal of ten existing wheelchair access ramps and replacing them with Americans with Disabilities Act (ADA) compliant wheelchair access ramps.
These eligible activities are allowed under the CDBG guidelines.
CITIZEN PARTICIPATION
Per the Citizen Participation Plan, the increased compensation to the 2024-2025 ADA Wheelchair Access Ramp Project does not constitute a substantial amendment to the 2024-2025 Action Plan as it is below 20% (below $20,000) of the original allocation. 390
FIRST AMENDMENT TO
FY 2024-2025
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND
THE CITY OF ORANGE PUBLIC WORKS DEPARTMENT
This FIRST AMENDMENT TO FY 2024-2025 COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND THE CITY OF ORANGE PUBLIC WORKS DEPARTMENT (“First Amendment”) is entered into as of , 2025, by and between the CITY OF ORANGE, a municipal corporation (“CITY”) and the CITY’s PUBLIC WORKS DEPARTMENT (“DEPARTMENT”) with reference to the following:
A. CITY and DEPARTMENT entered into a FY 2024-2025 Community Development Block Grant Program Memorandum of Understanding between the City of Orange and the City of Orange Public Works Department (Agreement No. 6648.G), dated July 1, 2024 (the “MOU”); and
B. CITY and DEPARTMENT desire to amend the MOU to reflect increased budget.
NOW, THEREFORE, the parties hereby agree as follows:
Section 1. Defined Terms. Except as otherwise defined herein, all quoted or capitalized terms used herein shall have the meanings set forth for such terms in the MOU.
Section 2. Cross-References. CITY and DEPARTMENT hereby agree that (a) all references in the MOU or this First Amendment are deemed and construed to refer to the MOU as amended by this First Amendment, and (b) all references in this First Amendment to any section or provision in the MOU are deemed and construed to refer to such section or provision of the MOU, as amended by this First Amendment.
Section 3. Revised Compensation . Section 2 of the MOU, “Compensation.” Is hereby amended to reflect an increase in the compensation for the service to be rendered pursuant to the MOU in the amount of TEN THOUSAND DOLLARS and 00/100 ($10,000.00). Section 2 of the MOU is hereby amended to reflect a total amount of CDBG funds to be disbursed to the Department not to exceed ONE HUNDRED TEN THOUSAND DOLLARS and 00/100 ($110,000.00) without prior authorization from the City.
Section 4. Integration. This First Amendment amends, as set forth herein, the MOU and, except as specifically amended hereby, the MOU shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the MOU, the terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.
391
IN WITNESS WHEREOF, the parties enter into this First Amendment on the year and day first above written.
“CITY”
CITY OF ORANGE, a municipal corporation
By:
Thomas C. Kisela
City Manager
ATTEST:
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
Nathalie Adourian
Senior Assistant City Attorney
The terms and conditions of the MOU are understood and accepted:
“DEPARTMENT”
PUBLIC WORKS DEPARTMENT, a department
of the City of Orange
By:
Christopher Cash
Director
√
392
Agenda Item
City Council
Item #: 3.15. 4/8/2025 File #: 25-0165
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Contract to Calmex Engineering, Inc. for Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation; Bid No. 24-25.14 (SP-4293).
2. SUMMARY
Bids for the Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation Project were received and opened on March 6, 2025. Seven bidders responded to the notice inviting bids. The apparent low bidder is Calmex Engineering, Inc. of Bloomington, CA in the amount of $443,181.
3. RECOMMENDED ACTION
1. Waive the minor bidding irregularity in the bid proposal received by Calmex Engineering, Inc.
2. Approve the contract with Calmex Engineering, Inc. in the amount of $487,499, representing an original bid amount of $443,181, plus a 10% contingency of $44,318, for Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The expense for this contract is $487,499 and will be funded through Community Development Block Grant (310):
310.9645.56582.30243 Pixley & Walnut St Rehab-Develop Grant
5. STRATEGIC PLAN GOALS
Goal 5: Improve infrastructure, mobility, and technology
6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in low and moderate income areas within their jurisdiction. The proposed street improvements project was approved through the Fiscal Year 2024- 2025 Action Plan on May 28, 2024.
The scope of the project includes the rehabilitation of pavement on the following street segments:
City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
393
Item #: 3.15. 4/8/2025 File #: 25-0165
1. Parker Street - Almond Avenue to Culver Avenue
2. Clark Street - Almond Avenue to Culver Avenue
3. Pixley Street - Palmyra Avenue to Culver Avenue
4. Pixley Street - Palmyra Avenue to North End Cul-de-sac
5. Foley Place - Almond Avenue to South End Cul-de-sac
6. Marietta Avenue - Clark Street to East End Cul-de-sac
7. Washington Avenue - Clark Street to East End Cul-de-sac The City Council previously approved an advertisement for bids on January 28, 2025. The bid solicitation was advertised on February 6, 2025, for a period of four weeks and bids were opened on March 6, 2025. Seven bids were received as follows:
1. Calmex Engineering, Inc., Bloomington $443,181
2. R. J. Noble Company, Orange $467,018.40
3. COPP Contracting, Inc., Buena Park $487,832.40
4. PALP Inc., dba Excel Paving Company, Long Beach $496,950
5. Hardy & Harper, Inc., Lake Forest $500,000
6. Onyx Paving Company, Inc., Anaheim $507,830
7. All American Asphalt, Corona $514,415
There was a minor bidding irregularity in the Calmex Engineering, Inc. bid. The bid was missing the required Build America, Buy America Act (BABA) Self-Certification form. The missing form was subsequently submitted after the bid opening, so staff is recommending the City Council waive this minor bidding irregularity.
The low bid is about 13% higher than the engineer’sestimate. This may be due to the increasing costs of construction and materials, and federal funding stipulations requiring the purchase of domestic construction materials over imported. Staff checked the references and qualifications for Calmex Engineering, Inc. and found them to be acceptable, with adequate years of experience in completing contracts of similar nature to this project. Therefore, staff recommends that Calmex Engineering, Inc. be awarded the contract in the total amount of $487,499, representing an original bid amount of $443,181, plus a 10% contingency of $44,318, for the CDBG FY 2024-2025 Pixley Neighborhood Street Rehabilitation Project.
Construction is scheduled to begin in May 2025 and is expected to be completed within 30 calendar days.
7. ATTACHMENTS
· Contract with Calmex Engineering, Inc.
· Bid Abstract
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
394
Agenda Item
City Council
Item #: 3.15. 4/8/2025 File #: 25-0165
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Contract to Calmex Engineering, Inc. for Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation; Bid No. 24-25.14 (SP-4293).
2. SUMMARY
Bids for the Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation Project were received and opened on March 6, 2025. Seven bidders responded to the notice inviting bids. The apparent low bidder is Calmex Engineering, Inc. of Bloomington, CA in the amount of $443,181.
3. RECOMMENDED ACTION
1. Waive the minor bidding irregularity in the bid proposal received by Calmex Engineering, Inc.
2. Approve the contract with Calmex Engineering, Inc. in the amount of $487,499, representing an original bid amount of $443,181, plus a 10% contingency of $44,318, for Community Development Block Grant Fiscal Year 2024-2025 Pixley Neighborhood Street Rehabilitation; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The expense for this contract is $487,499 and will be funded through Community Development Block Grant (310):
310.9645.56582.30243 Pixley & Walnut St Rehab-Develop Grant
5. STRATEGIC PLAN GOALS
Goal 5: Improve infrastructure, mobility, and technology
6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in low and moderate income areas within their jurisdiction. The proposed street improvements project was approved through the Fiscal Year 2024- 2025 Action Plan on May 28, 2024.
The scope of the project includes the rehabilitation of pavement on the following street segments:
City of Orange Printed on 4/3/2025Page 1 of 2
powered by Legistar™
395
Item #: 3.15. 4/8/2025 File #: 25-0165
1. Parker Street - Almond Avenue to Culver Avenue
2. Clark Street - Almond Avenue to Culver Avenue
3. Pixley Street - Palmyra Avenue to Culver Avenue
4. Pixley Street - Palmyra Avenue to North End Cul-de-sac
5. Foley Place - Almond Avenue to South End Cul-de-sac
6. Marietta Avenue - Clark Street to East End Cul-de-sac
7. Washington Avenue - Clark Street to East End Cul-de-sac The City Council previously approved an advertisement for bids on January 28, 2025. The bid solicitation was advertised on February 6, 2025, for a period of four weeks and bids were opened on March 6, 2025. Seven bids were received as follows:
1. Calmex Engineering, Inc., Bloomington $443,181
2. R. J. Noble Company, Orange $467,018.40
3. COPP Contracting, Inc., Buena Park $487,832.40
4. PALP Inc., dba Excel Paving Company, Long Beach $496,950
5. Hardy & Harper, Inc., Lake Forest $500,000
6. Onyx Paving Company, Inc., Anaheim $507,830
7. All American Asphalt, Corona $514,415
There was a minor bidding irregularity in the Calmex Engineering, Inc. bid. The bid was missing the required Build America, Buy America Act (BABA) Self-Certification form. The missing form was subsequently submitted after the bid opening, so staff is recommending the City Council waive this minor bidding irregularity.
The low bid is about 13% higher than the engineer’sestimate. This may be due to the increasing costs of construction and materials, and federal funding stipulations requiring the purchase of domestic construction materials over imported. Staff checked the references and qualifications for Calmex Engineering, Inc. and found them to be acceptable, with adequate years of experience in completing contracts of similar nature to this project. Therefore, staff recommends that Calmex Engineering, Inc. be awarded the contract in the total amount of $487,499, representing an original bid amount of $443,181, plus a 10% contingency of $44,318, for the CDBG FY 2024-2025 Pixley Neighborhood Street Rehabilitation Project.
Construction is scheduled to begin in May 2025 and is expected to be completed within 30 calendar days.
7. ATTACHMENTS
· Contract with Calmex Engineering, Inc.
· Bid Abstract
City of Orange Printed on 4/3/2025Page 2 of 2
powered by Legistar™
396
CONTRACT
[CDBG FY 2024-2025 Pixley Neighborhood Street Rehabilitation (Bid No.24-25.14)]
THIS CONTRACT (the “Contract”) is made and ente red into as of ___ ___________, 2025 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and CALMEX ENGINEERING, INC ., a California corporation (“Contractor”), who agree as follows.
ARTICLE 1
Work Performed
a. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by City, and under the conditions expressed in the two (2) bonds presented to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to and shall do all the work and furnish all the labor, materials, tools and equipment, except such as are mentioned in the specifications to be furnished by City to Contractor, necessary to complete in good workmanship and substantial manner the work (the “Work”) described in:
(1) The Construction Plans for CDBG FY 2024 -2025 Pixley Neighborhood Street Rehabilitation (Drawing SP-4293) prepared for City by Martin Varona, approved by the “Engineer” (as defined herein below) on February 5, 2025, and consisting of sheets numbered 1 through 6, inclusive (the “Plans”);
(2) 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);
(3) 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;”
(4) The Compliance Documents attached as Attachment No. 3 and incorporated herein by this reference; and
(5) The Labor Relations Forms attached as Attachment No. 4 and incorporated herein by this reference; and
(6) The Federal Provisions and Requirements attached as Attachment No. 5 and incorporated herein by this reference; and
(7) The Federal Prevailing Wage Rates attached as Attachment No. 6 and incorporated herein by this reference; and
397
2 (8) The Build America, Buy America (BABA) Requirements attached as Attachment No. 7 and incorporated herein by this reference; and
(9) The “City of Orange Standard Special Provisions;”
(10) The Standard Plans; and
(11) Contractor’s Bid Proposal , which is on file with City’s Department of Public Works.
b. Contractor acknowledges that it has received the Plans from City and that a complete copy of the Plans are in its possession and are hereby specifically referred to and by such reference made a part hereof. The Orange Book, 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 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 Principal Civil Engineer, Randy Nguyen (“Authorized City Representative”), shall be the person to whom Contractor will report for the performance of the Work hereunder. It is understood that Contractor’s performance hereunder shall be under the direction and supervision of the Authorized City Representative or such other person as City’s Public Works Director may designate from time to time, that Contractor shall coordinate the Work hereunder with the Authorized City Representative to the extent required by the Authorized City Representative, 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.
398
3 g. Contractor agrees that it has an obligation to reset all permanent survey markers as stated in the Orange Book, Part 4, Section 400-2, “Permanent Survey Markers ,” and obtain the approval for pre- and post-construction centerline tie sheets and Corner Records from the County of Orange and deliver said approved documents to City as soon as they are received. This obligation extends to any of its subcontractors that have performed work in this regard. This subsection survives completion of the Work, the Notice of Completion, a nd final payment and shall be an enforceable obligation until fulfilled.
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 THIRTY (30) 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 FOUR HUNDRED FORTY-THREE THOUSAND ONE HUNDRED EIGHTY -ONE DOLLARS and 00/100 ($443,181.00), unless said amount is amended by Contract Change Order approved by the City, as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by City, other than as provided below ; (3) all risks of every description connected with the Work; (4) all expenses incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them. Retention amounts shall be withheld from progress payments as required by law unless Contractor provides securities in lieu of retention.
b. In addition to the scheduled Work to be performed by the Contractor, the parties recognize that additional, unforeseen work and services may be required by the Authorized City Representative. In anticipation of such contingencies, the sum of FORTY-FOUR THOUSAND THREE HUNDRED EIGHTEEN DOLLARS and 00/100 ($44,318.00) has been added to the total compensation of this Contract. The Authorized City Representative may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as the Authorized City Representative and the Contractor may agree upon in advance. Said additional work or services and the amount of compensation therefor, up to the amount of the authorized contingency, shall be memorialized in the form of a Contract Amendment approved by the City Manager on a form acceptable to the City Attorney . The Contractor agrees to perform only that work or those services that are specifically requested by the 399
4 Authorized City Representative. Any and all additional work and services performed under this Contract shall be completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate or proposal submitted to and approved by the Authorized City Representative prior to the commencement of such Work or services.
c. The total amount of compensation under this Contract, including contingencies, shall not exceed FOUR HUNDRED EIGHTY -SEVEN THOUSAND FOUR HUNDRED NINETY - NINE DOLLARS and 00/100 ($487,499.00).
ARTICLE 4
Licenses
Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the Work contemplated by this Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.
ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract.
b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any p art thereof fail to 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 re imburse 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 400
5 due to an immediate detriment to the health, safety, welfare or convenience of the residents of City.
ARTICLE 6
Water Quality
a. The Santa Ana Regional Water Quality Control Board (“RWQCB”) has issued National Pollutant Discharge Elimination System (“NPDES”) Permit No. R8 -2009-0030 (the “Permit”), which governs storm water and non -storm water discharges resulting from municipal activities performed by City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Drainage Area Management Plan (“DAMP”), containing Model Maintenance Procedures with Best Management Practices (“BMPs”) th at City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry -weather urban runoff, storm water runoff, and receiving water quali ty. Examples include: wash water from cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.
b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the office of City’s Director of Public Works. Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they relate to the Work and hereby shall perform the Work in conformance therewith.
ARTICLE 7
Independent Contractor; Contractor not Agent
a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this Contrac t. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required f or 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 wit h 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.
401
6 ARTICLE 8
Public Work; Prevailing Wage
a. The Work which is the subject of this Contract is a “public work,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.
To the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.
b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed and understands those provisions of the Labor Code and shall prosecute and complete the Work under this Contract in strict compliance with all of those terms and provisions.
c. Contractor shall secure the payment of compensation to its employees in accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
d. Contractor shall indemnify, protect, defend and hold harmless City and its officers, employees, contractors and agents, with counsel reasonably acceptable to City, from and against any and all loss, liability, damage, claim, cost, expense, and/or “increased costs” (including reasonable attorney’s fees, court and litigation costs, and fees of expert witnesses) which result or arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal law, including, without limitation, any applicable federal and/or state lab or laws (including, without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that, in connection with the construction of the W ork which is the subject of this Contract, Contractor shall bear all risks of payment or non -payment of state prevailing wages. “Increased costs” as used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time t o time. The foregoing indemnity shall survive termination of this Contract.
ARTICLE 9
Equal Employment Opportunity
During the performance of this Contract, Contractor agrees as follows:
402
7 a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor shall post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, men tal or physical disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.
ARTICLE 10
Conflicts of Interest
Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the builder for any project for which the design work is part of this Contract.
ARTICLE 11
Indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials, agents, and employees from and against:
a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses (including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain or suffer arising from or as a result of the death of any person or any acc ident, injury, loss or damage whatsoever caused to any person or the property of any person which shall occur on or adjacent to the real property which is the subject of this Contract, or in connection with performance of this Contract which may be direc tly or indirectly caused by the acts or omissions of Contractor or its officers, employees, contractors or agents, or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract. 403
8 b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.
ARTICLE 12
Insurance
a. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder and the results of that Work by Contractor, its agents, representatives, employees or subcontractors. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Contract.
b. Contractor shall maintain the following minimum amount of insurance: the greater of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits carried by or available to Contractor.
(1) General Liability $2,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.
(2) Automobile Liability $1,000,000 per accident for bodily injury and property damage.
(3) Workers’ Compensation as required by the State of California.
(4) Employer’s Liability $1,000,000 per accident for bodily injury or disease.
c. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of Contractor under this Contract.
d. Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self - insured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 404
9 e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:
(1) City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of Contractor (any auto), and with respect to liability arising out of Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such Work or operations. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall apply to City as an additional insured.
(2) For any claims related to this Contract, Contractor’s insurance coverage shall be primary insurance with respect to City, its officers, officials, agents and employees. Any insurance or self-insurance maintained by City, its officers, officials, agents and employees shall be excess of Contractor’s insurance and shall not contribute with it.
(3) Coverage shall not be canceled, except after thirty (30) days’ prior written notice has been provided to City.
f. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Article 12. The endorsements shall be on forms acceptable to City. All certificates and endorsements are to be received and approved by City before the Work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
g. All insurance procured and maintained by Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.
h. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Contract unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom by way of set-off from any sums owed Contractor.
i. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance t o either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.
The Workers’ Compensation pol icy shall be endorsed with a waiver of subrogation in favor of City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor shall obtain any other endorsement that may be necessary to effect this waiver of subrogation. 405
10 j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.
ARTICLE 13
Termination
City, acting through its City Manager or 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 te rmination shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.
ARTICLE 14
Maintenance and Inspection of Records
In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records and other information (collectively, the “records”) pertaining to the co sts of and completion of services performed under this Contract. During the term of this Contract and for a period of three (3) years after termination or completion of this Contract, City shall have the right to inspect and/or audit Contractor's records pertaining to the performance of this Contract at Contractor's office. Contractor shall make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.
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
406
11 (3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and
(4) Has responded, and shall at all times during the term of this Contract respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of 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 associ ated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Contract without written notice to City, accompanied by the verification required herein for such employees. Contractor shall require all subcontractors and/or sub-consultants to make the same verification when hired to perform services under this Contract.
e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee providing Work under this Contract who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee , such shall constitute a material breach of this Contract and may be cause for immediate termination of this Contract by City.
f. Contractor shall indemnify and hold City, its officials and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of Contractor’s failure to comply with said laws, rules and regulati ons in connection with the performance of this Contract.
ARTICLE 16
Governing Law and Venue
This Contract shall be construed in accordance with and governed by the laws of the State of California and Contractor shall submit to the juri sdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California.
ARTICLE 17
Integration and Amendment
a. This Contract constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the Work to be performed under this Contract shall be of any force or 407
12 effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent with or in violation of the provisions of this Contract shall not be compensated.
b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.
ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.
“CONTRACTOR” “CITY”
Calmex Engineering, Inc. City of Orange
2750 S Lilac Avenue 300 E. Chapman Avenue
Bloomington, CA 92316 Orange, CA 92866-1591
Attn: Roger J. Stone Attn: Randy Nguyen
Telephone: 909-546-1311 Telephone: 714-744-5531
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.
[Signatures on next page]
408
409
Attachment No. 1