Agenda packet — Orange City Council, June 24, 2025 (part 1 of 7)

Tom Kisela
City Manager
Wayne Winthers
Interim City Attorney
Pamela Coleman
City Clerk

DAN SLATER
Mayor

DENIS BILODEAU
Mayor pro tem, District 4

ARIANNA BARRIOS
Councilmember, District 1

JON DUMITRU
Councilmember, District 2

KATHY TAVOULARIS
Councilmember, District 3

ANA GUTIERREZ
Councilmember, District 5

JOHN GYLLENHAMMER
Councilmember, District 6
AGENDA
City Council
June 24, 2025
6:00 PM Regular Session
City Council Chamber
300 E. Chapman Avenue
Orange, CA 92866
The City of Orange City Council welcomes you to this meeting and encourages your participation. Regular City Council meetings are held on the second and fourth Tuesday of each month at 6:00 p.m.

Agenda Information
The agenda contains a brief general description of each item to be considered. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda. The agenda and supporting documentation is available after 4:00 p.m. on the Thursday prior to the Council meeting on the City's website at www.cityoforange.org, at the City Clerk's Office located at 300 E. Chapman Avenue, and at the Main Public Library located at 407 E. Chapman Avenue. Written materials relating to an item on the agenda that are provided to the City Council after agenda packet distribution and within 72 hours before Council is to consider the item will be made available for public inspection in the City Clerk’s Office during normal business hours; at the City Council meeting; and made available on the City's website.

Public Participation
Regular meetings are televised live on Spectrum Cable Channel 3 and AT&T U-verse Channel 99, and streamed live and on-demand on the City's website at www.cityoforange.org.

Pursuant to Government Code Section 54954.3, members of the public may address the City Council on any agenda item before or during Council’s consideration of the item, and on any other matters within the City Council’s jurisdiction by using any of the following methods:
1) In-Person
To speak on an item on the agenda, complete a speaker card indicating your name, address, and identify the agenda item number or subject matter you wish to address. The card should be given to the City Clerk prior to the start of the meeting. General comments are received during the “Public Comments” section at the beginning of the Regular Session. No action may be taken on off-agenda items unless authorized by law.

Public Comments are limited to three (3) minutes per speaker unless a different time limit is announced. It is requested that you state your name for the record, then proceed to address the City Council. All speakers shall observe civility, decorum, and good behavior.
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1 City Council Agenda June 24, 2025
2) Written Public Comments via eComment
Members of the public can submit their written comments electronically for City Council consideration by using the eComment feature on the Agenda page of the City's website at www.cityoforange.org. To ensure distribution to the City Council prior to consideration of the agenda, we encourage the public to submit written comments by 3:00 p.m. the day of the meeting. All written comments will be provided to the Council for consideration and posted on the City’s website after the meeting. 3) Public Comments via recorded voicemail message
Finally, the public can record their comments by calling (714) 744-2234 no later than 3:00 p.m. the day of the meeting. Recorded messages will not be played at the meeting, but will be provided to the Council.

In accordance with Ordinance No. 10-01, any person making personal, impertinent, slanderous or profane remarks or who becomes boisterous while addressing the Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council further during that meeting, unless permission to continue is granted by a majority vote of the Council.

Please contact the City Clerk’s Office at (714) 744-5500 with any questions.

ADA Requirements: In compliance with the Americans with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (714) 744-5500. Notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting.

REMINDER: Please silence all electronic devices while City Council is in session.

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2 City Council Agenda June 24, 2025
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER

1.1 INVOCATION
Pastor Nathaniel Sevilla, Orange Seventh-day Adventist Church

1.2 PLEDGE OF ALLEGIANCE
Councilmember Ana Gutierrez

1.3 ROLL CALL

1.4 ANNOUNCEMENTS

1.5 REPORT ON CLOSED SESSION ACTIONS

2. PUBLIC COMMENTS
At this time, members of the public may address the Council on matters not listed on the agenda within the subject matter jurisdiction of the City Council, provided that NO action may be taken on off-agenda items unless authorized by law. Public Comments are limited to three (3) minutes per speaker unless a different time limit is announced.

3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion approving the recommended action listed on the Agenda. Any member of the City Council, staff, or the public may request an item be removed from the Consent Calendar for discussion or separate action. Unless otherwise specified in the request to remove an item from the Consent Calendar, all items removed shall be considered immediately following action on the remaining items on the Consent Calendar.

3.1. Waive reading in full of all ordinances on the Agenda.

Approve.

Recommended Action:

Attachments: Staff Report

3.2. Approval of minutes of the City of Orange City Council Special Meeting and Regular Meeting held on May 27, 2025.

Approve minutes as presented.

Recommended Action:

Staff Report
May 27, 2025 Special Meeting minutes
May 27, 2025 Regular Meeting minutes
Attachments:

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3.3. Agreement with the American National Red Cross for use of City facilities during disaster-related activities.

1. Approve the agreement with the American National Red Cross for use of City facilities during disaster-related activities at no cost.

2. Approve the Pet Addendum to the Facility Use Agreement with the American National Red Cross to allow clients’ pets in designated areas.

3. Authorize the City Manager and City Clerk to execute both the Facility Use Agreement and Pet Addendum on behalf of the City.

Recommended Action:

Staff Report
Facility Use Agreement with the American National Red Cross Pet Addendum to Facility Use Agreement with the American National Red Cross
Attachments:

3.4. Agreement with Nieves Landscape, LLC. for landscape maintenance services for City properties, right-of-way, and assessment districts.

Approve the agreement with Nieves Landscape, LLC. in the amount of $4,399,957 for landscape maintenance services; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Proposal Abstract Summary
Agreement with Nieves Landscape, LLC.

Attachments:

3.5. Agreements with the California Department of Health Care Services, CalOptima, and Kaiser Foundation Health Plan Inc. for a one-time Intergovernmental Transfer for Fiscal Year 2025-2026.

1. Approve the agreements with California Department of Health Care Services, CalOptima, and Kaiser Foundation Health Plan, Inc. in an amount not to exceed $850,000 representing approximately $627,111 in unreimbursed Medicare revenue plus a 20% administration fee, for a one-time Intergovernmental Transfer; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize an advancement in an amount not to exceed $850,000 from the General Fund (100) to the California Department of Health Care Services.

Recommended Action:

Staff Report
Intergovernmental Agreement with California Department of Health Care Services
Health Plan-Provider Agreement with CalOptima
Health Plan-Provider Agreement with Kaiser Foundation Health Plan Inc.

Attachments:

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3.6. First Amendment to agreement with Joseph C. Truxaw and Associates, Inc., a California corporation, for on-call surveyor services.

Approve First Amendment to agreement with Joseph C. Truxaw and Associates, Inc., a California corporation, in the amount of $30,500 for on-call surveyor services; and authorize the Mayor and the City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
First Amendment to Agreement
Attachments:

3.7. First Amendment to agreement with Common Area Maintenance Service, Inc., dba CAM Property Services, for sidewalk steam cleaning services.

Approve the First Amendment for a one-year extension to the agreement with CAM Property Services in the amount of $47,619 for sidewalk cleaning services, which includes a 10% contingency for any unscheduled cleaning; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
First Amendment to agreement with CAM Property Services Attachments:

3.8. Appropriation of $114,632.54 in designated Public Safety Realignment/Assembly Bill 109 funding received from the County of Orange.

1. Accept into the City’s General Fund (100) revenue budget a $114,632.54 deposit from the County of Orange to:
100.4031.45495.20159 Other Grant Revenue - Post Release Community Supervision

2. Authorize the appropriation of $114,632.54 into General Fund (100):
100.4031.50221.20159 Overtime - Post Release Community Supervision Recommended Action:

Attachments: Staff Report

3.9. Acceptance of $159,470.52 in revenue received from the Recreation class program and 2024 Special Events donations; and appropriation of $51,196.88 of the revenue to support corresponding programs.

1. Accept into the City’s General Fund revenue budget $159,470.52 in Recreation class program revenue and 2024 Special Event donations to:
100.7001.46540.00000 Recreation Classes $ 73,138.40
105.7015.48380.17552 Other Misc Revenue - Tree Lighting $ 86,332.12

2. Authorize the appropriation of $ 51,196.88 to the General Fund:
100.7011.51670.00000 Other Prof & Consulting Services $ 51,196.88 Recommended Action:

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Attachments: Staff Report

3.10. Award of Contract to Onyx Paving Company, Inc. for Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025; Bid No. 24-25.09.

Approve the contract with Onyx Paving Company, Inc. in the amount of $5,946,250 representing an original amount of $4,757,000 plus a 25% contingency of $1,189,250 for Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Contract with Onyx Paving Company Inc.

Bid Abstract
Location Maps
Attachments:

3.11. Award of Contract to Clinical Lab of San Bernardino for conducting water quality testing services.

Approve the contract with Clinical Lab of San Bernardino in the amount of $36,784 representing an original bid amount of $33,440, plus a 10% contingency of $3,344 for conducting routine water quality testing services; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Bid Abstract
Contract with Clinical Lab of San Bernardino
Attachments:

3.12. Second Amendment to the contract with Tunnelworks Services, Inc. for Sewer Line Cleaning, Video Inspection, and Emergency Response Services.

Approve the Second Amendment of a one-year extension to the contract with Tunnelworks Services, Inc., in the amount of $378,039 for Sewer Line Cleaning, Video Inspection, and Emergency Response Services; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Second Amendment to Contract with Tunnelworks Services, Inc.

Attachments:

3.13. Notice of Completion and Acceptance for Annual Pipeline Renewal Project, Bid No. 23-24.25 (W-722).

1. Accept Annual Pipeline Renewal Project as complete.

2. Authorize City Clerk to file Notice of Completion with the Orange County Recommended Action:

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Clerk-Recorder’s Office.

Staff Report
Notice of Completion and Acceptance
Attachments:

3.14. Notice of Completion and Acceptance for Community Development Block Grant Fiscal Year 2024-2025 Americans with Disabilities Act Wheelchair Access Ramp Replacement project, Bid No. 24-25.15 (SP-4295).

1. Accept the Community Development Block Grant Fiscal Year 2024-2025 Americans with Disabilities Act Wheelchair Access Ramp Replacement project as complete.

2. Authorize City Clerk to file Notice of Completion with the Orange County Clerk-Recorder’s Office.

Recommended Action:

Staff Report
Notice of Completion and Acceptance
Attachments:

3.15. Second Reading and adoption of an Ordinance of the City Council of the City of Orange adding Chapter 9.44 of the Orange Municipal Code regulating nitrous oxide. Ordinance No.09-25
Adopt Ordinance No. 09-25.

Recommended Action:

Staff Report
Ordinance No. 09-25
Attachments:

3.16. Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending various sections in Title 13 of the Orange Municipal Code to update references to conform with current law and code provisions. Ordinance No. 10-25.

Adopt Ordinance No. 10-25.

Recommended Action:

Staff Report
Ordinance No. 10-25
Attachments:

3.17. Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code to allow Single-Room Occupancy housing as a permitted use in certain zoning districts and related definitions and development standards. Ordinance No. 11-25.

Adopt Ordinance No. 11-25.

Recommended Action:

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Staff Report
Ordinance No. 11-25
Attachments:

3.18. Second Reading and adoption of an Ordinance of the City Council of the City of Orange adding Chapter 5.100 of the Orange Municipal Code establishing Code provisions including operational standards and permitting requirements for tobacco retail establishments. Ordinance No. 12-25.

Adopt Ordinance No. 12-25.

Recommended Action:

Staff Report
Ordinance No. 12-25
Attachments:

3.19. Authorize purchase of a one-year subscription for AutoCAD from DLT Solutions.

Approve the purchase of Autodesk AutoCAD one-year subscription license from DLT Solutions in the amount of $33,211.

Recommended Action:

Staff Report
Quote from DLT Solutions
Attachments:

3.20. Authorize purchase of medical supplies and medications from Life-Assist, Inc. under the National Purchasing Partners cooperative contract number PS20180 with League of Oregon Cities.

Approve the purchase of medical supplies and medications from Life-Assist, Inc. in an amount of $345,000 for Fiscal Year 2025-2026.

Recommended Action:

Staff Report
Intergovernmental Cooperative Purchasing Agreement
Attachments:

3.21. Authorize purchase of police uniforms and external load-bearing vests from Galls, LLC and BPS Tactical, Inc.

1. Approve the purchase of uniforms from Galls, LLC for $83,956, representing a uniform cost of $76,324, plus a 10% contingency of $7,632.

2. Approve the purchase of external load-bearing vests from BPS Tactical, Inc. for $116,688, representing a vest cost of $106,080, plus a 10% contingency of $10,608.

3. Authorize the appropriation of $210,000 from AB3229-COPS/State - Supplemental Law Enforcement Services (354) unreserved fund balance to:
354.4011.53030.00000 Uniforms & Other Clothing
Recommended Action:

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Staff Report
Proposed Uniforms
BPS Quote
Galls Quote
Master Agreement No. 106-498488
Master Agreement No. 106-498336
Attachments:

3.22. Authorize purchase of Fire Department uniforms, wildland safety gear and accessories from LineGear Fire & Rescue Equipment under the General Service Administration Contract number GS-07F-9246S.

Approve the purchase of Fire Department uniforms, wildland safety gear, and accessories from LineGear Fire & Rescue Equipment in the amount of $115,000 for Fiscal Year 2025-2026.

Recommended Action:

Staff Report
General Service Administration Contract number GS-07F-9246S Attachments:

3.23. Authorize purchase of Personal Protective Equipment, safety equipment and supplies, and department uniforms from L.N. Curtis & Sons under Sourcewell Cooperative Agreement numbers 020124-LNC and 010424-LNC.

Approve the purchase of Personal Protective Equipment, safety equipment and supplies, and department uniforms from L.N. Curtis & Sons in the amount of $125,000 for Fiscal Year 2025-2026.

Recommended Action:

Staff Report
2024 Sourcewell Cooperative Purchasing Agreement No.
020124-LNC
2024 Sourcewell Cooperative Purchasing Agreement No.
010424-LNC
Attachments:

3.24. Authorize purchase of specialized Emergency Medical Services equipment, supplies, and preventive maintenance services from Stryker Medical as the sole source provider.

Approve the purchase of emergency medical supplies, equipment and maintenance services from Stryker Medical in the amount of $55,000 for Fiscal Year 2025-2026.

Recommended Action:

Staff Report
Sole Source Agreement Stryker
Attachments:

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3.25. Authorize the purchase of specialized Emergency Medical Services equipment, supplies, and preventive maintenance services from Zoll Medical Corporation as the sole source provider.

Approve the purchase of Emergency Medical Services equipment, supplies, and preventive maintenance from Zoll Medical Corporation in the amount of $40,000 for Fiscal Year 2025-2026.

Recommended Action:

Staff Report
Zoll, AED Sole Source Letter 2025
Zoll, X Series A Sole Source Letter 2025
Attachments:

3.26. Authorize purchase and delivery of diesel fuel and gasoline from Southern Counties Oil Co., a California Limited Partnership dba SC Fuels.

Approve the purchase agreement with Southern Counties Oil Co. a California Limited Partnership dba SC Fuels, in the amount not to exceed $1,400,000 for the purchase and delivery of diesel and gasoline fuel using a cooperative purchasing agreement; and authorize the Mayor and the City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Purchase Agreement with SC Fuels
Attachments:

3.27. Designation of July 26, 2025, as Arbor Day in the City of Orange. Resolution No. 11613.

Adopt Resolution No. 11613. A Resolution of the City Council of the City of Orange designating July 26th, 2025, as Arbor Day.

Recommended Action:

Staff Report
Resolution No. 11613
Arbor Day Planting Map
Attachments:

3.28. Review and adoption of Mitigated Negative Declaration No. 1887-24 and approval of preliminary project plans for the Cannon Street widening project. Resolution No. 11616.

Adopt Resolution No. 11616. A Resolution of the City Council of the City of Orange approving and adopting Mitigated Negative Declaration No. 1887-24 and a Mitigation Monitoring and Reporting Program for the Cannon Street Widening Project, approving Preliminary Plans therefor, and making certain findings in connection therewith.

Recommended Action:

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Staff Report
Attachment 1 - Resolution No. 11616
Attachment 2 - Location Map
Attachment 3 - Preliminary Plans
Attachment 4 - Cannon Street Widening Project Final IS-MND No. 1887-24
Attachment 5 - Cannon Street Widening Project Rendering Attachments:

3.29. Adoption of a finding of exemption from the California Environmental Quality Act for the City of Orange Wells 25 and 27 Project. Resolution No. 11617.

Adopt Resolution No. 11617. A Resolution of the City Council of the City of Orange adopting the exemption from the California Environmental Quality Act (CEQA) for Wells 25 & 27 PFOA and PFOS Treatment Plants Construction and Operation.

Recommended Action:

Staff Report
Resolution No. 11617
Attachments:

3.30. Status and update of the Circulation Element and Mitigation Fee Program for the Measure M2 Program. Resolution No. 11618.

1. Adopt Resolution No. 11618. A Resolution of the City Council of the City of Orange concerning the status and update of the circulation element, and mitigation fee program for the Measure M (M2) program.

2. Authorize staff to submit M2 eligibility documentation to the Orange County Transportation Authority (OCTA).

Recommended Action:

Staff Report
Resolution No. 11618
Attachments:

END OF CONSENT CALENDAR
* * * * * * * *

4. REPORTS FROM MAYOR SLATER

5. REPORTS FROM COUNCILMEMBERS
An opportunity for Councilmembers to make a brief announcement, report, or request.

Pursuant to Government Code Section 54954.2(a)(3), no action(s) or discussion(s) shall be undertaken on any item not appearing on the posted agenda.

6. AB 1234 REPORTS
This is the time for all AB 1234 reports required pursuant to Government Code Section 53232.3(d) on meetings and conferences attended at the City's expense.

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7. REPORTS FROM CITY MANAGER

7.1. Consider renewing the City of Orange’s membership with the Association of California Cities - Orange County.

Consider renewing the City of Orange’s membership with the Association of California Cities - Orange County and provide direction to City staff.

Recommended Action:

Attachments: Staff Report

8. PUBLIC HEARINGS

8.1. Continued Public Hearing to consider introduction and First Reading of an ordinance amending provisions in Title 17 of the Orange Municipal Code (Zoning Ordinance) relating to the number of chickens allowed on residential properties and setback requirements; and finding of CEQA exemption. Ordinance No. 08-25. (Continued from June 10, 2025)

1. Conduct and close the Public Hearing.

2. Introduce and conduct First Reading of Ordinance No. 08-25. An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code to update the number of chickens permitted on residential properties and setback requirements.

3. Find the ordinance categorically exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15061(b)(3) and 15378.

Recommended Action:

Staff Report
Attachment 1 - Ordinance No. 08-25 Clean
Attachment 2 – Ordinance No. 08-25 Redlined
Attachment 3 - Planning Commission April 21, 2025, Staff Report Attachment 4 - Planning Commission April 21, 2025, Meeting Minutes Attachment 5 - Chicken Keeping Scenarios
Attachments:

8.2. Continued Public Hearing to consider approval of the 2025-2029 Consolidated Plan including the 2025-2026 Annual Action Plan and 2025-2029 Regional Analysis of Impediments to Fair Housing Choice. (Continued from May 13, 2025)

1. Conduct and close Public Hearing.

2. Approve the 2025-2029 Consolidated Plan including the 2025-2026 Annual Action plan and 2025-2029 Regional Analysis of Impediments to Fair Housing Choice.

3. Authorize staff to incorporate comments received at the Public Hearing or make non-substantial changes if needed to the 2025-2029 Consolidated Plan or the 2025 -2029 Regional Analysis of Impediments to Fair Housing Choice.

4. Authorize staff to submit the 2025-2029 Consolidated Plan to the Department of Recommended Action:

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Housing and Urban Development and authorize the City Manager or their designee to execute all forms and agreements, including those with Subrecipients, and any other documents required by the Department of Housing and Urban Development upon approval of the Plan.

Staff Report
Attachment A: Draft 2025-2029 Regional Analysis of Impediments to Fair Housing Choice
Attachment B: Draft 2025-2029 Consolidated Plan
Attachments:

9. ADMINISTRATIVE REPORTS

9.1. Agreement for Employment with City Manager Jarad L. Hildenbrand.

Approve Agreement for Employment with City Manager Jarad L. Hildenbrand; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Agreement for Employment
Attachments:

9.2. Employment Agreement of a retired annuitant for the vacant position of City Manager pursuant to Government Code Sections 21221(h) and 7522.56.

Resolution 11619.

Adopt Resolution No. 11619. A Resolution of the City Council of the City of Orange approving the Employment Agreement of a retired annuitant for the position of Interim City Manager, pursuant to Government Code Sections 21221(h) and 7522.56.

Recommended Action:

Staff Report
Resolution No. 11619
Retired Annuitant Employment Agreement
Attachments:

9.3. Amend the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5. Resolution No. 11623.

Adopt Resolution No. 11623. A Resolution of the City Council of the City of Orange amending the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.

Recommended Action:

Staff Report
Resolution No. 11623
Attachments:

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9.4. Fiscal Year 2025-26 City of Orange Budget and Five-Year Capital Improvement Program.

The following action items are recommended to adopt the Fiscal Year 2025-26 Budget, effective July 1, 2025:

1. Adopt Resolution No. 11620. A Resolution of the City Council of the City of Orange adopting said City’s Budget for the Fiscal Year 2025-26 and authorizing transfer of funds within and between appropriations, transfer of funds between funds, and additional appropriations.

2. Adopt Resolution No. 11622. A Resolution of the City Council of the City of Orange adopting the appropriations limit for the Fiscal Year 2025-2026.

3. Adopt Resolution No. 11621. A Resolution of the City Council of The City of Orange approving and authorizing staff to submit to the Orange County Transportation Authority the Measure M2 Seven-Year Capital Improvement Program for Fiscal Year 2025-2026 through 2031-2032 to comply with Measure M2 eligibility criteria.

Recommended Action:

Staff Report
Attachment A - Budget Message
Attachment B - Resolution No. 11620
Attachment C - Resolution No. 11622
Attachment D - Resolution No. 11621
Attachment E - Schedule of Changes in Fund Balance
Attachment F - Historical Summary of Revenues and Expenditures by Fund
Attachment G - Schedule of Revenues by Fund Type and Category Attachment H - Schedule of Expenditures by Fund Type and Category
Attachment I - Recommended Staffing Changes
Attachment J - Schedule of Positions by Department
Attachment K - Five-Year Capital Improvement Plan
Attachment L - Budget Reductions
Attachments:

9.5. Agreement with ACE Parking III, LLC for Paid Parking Implementation, Enforcement, and Management Services in the Orange Plaza area, specifically the Old Towne Commercial Core.

Approve the agreement with ACE Parking III, LLC in the amount of $1,824,457 for Paid Parking Implementation, Enforcement, and Management Services in the Orange Plaza area, specifically the Old Towne Commercial Core; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Professional Services Agreement with ACE Parking III, LLC Attachments:

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10. ADJOURNMENT
The next Regular City Council meeting will be held on Tuesday, July 22, 2025, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.

The July 8, 2025, Regular City Council meeting has been cancelled.

I, Pamela Coleman, CMC, City Clerk for the City of Orange, do hereby declare, under penalty of perjury, that a full and correct copy of this agenda was posted pursuant to Government Code Section 54950 et. seq., at the following locations: Orange Civic Center kiosk and Orange City Clerk's Office at 300 E. Chapman Avenue, Orange Main Public Library at 407 E. Chapman Avenue, Police facility at 1107 N. Batavia Street, and uploaded to the City's website www.cityoforange.org.

Date posted: June 19, 2025

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15 Agenda Item
City Council
Item #: 3.1. 6/24/2025 File #: 25-0349
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

State law requires that all ordinances be read in full either at the time of the introduction or at the time of passage, unless a motion waiving further reading is adopted by a majority of the City Council (Gov.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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Agenda Item
City Council
Item #: 3.1. 6/24/2025 File #: 25-0349
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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Agenda Item
City Council
Item #: 3.2. 6/24/2025 File #: 25-0351
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Approval of minutes of the City of Orange City Council Special Meeting and Regular Meeting held on May 27, 2025.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meeting(s).

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· May 27, 2025 Special Meeting minutes
· May 27, 2025 Regular Meeting minutes
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Agenda Item
City Council
Item #: 3.2. 6/24/2025 File #: 25-0351
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Approval of minutes of the City of Orange City Council Special Meeting and Regular Meeting held on May 27, 2025.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meeting(s).

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· May 27, 2025 Special Meeting minutes
· May 27, 2025 Regular Meeting minutes
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City of Orange
City Council
May 27, 2025

MINUTES
The City Council of the City of Orange, California convened on Tuesday, May 27, 2025, at 4:30 p.m. for a Special Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.

Pursuant to Government Code Section 54953(b), Councilmember Gyllenhammer participated in this meeting via teleconference from Seattle Marriott Bellevue, First Floor Lobby, 200 110th Avenue NE, Bellevue, WA 98004. A copy of the agenda was posted at this location. 4:30 PM CLOSED SESSION

1. CALL TO ORDER
Mayor Slater called the meeting to order at 4:30 p.m.

1.1 ROLL CALL

Present: Barrios, Dumitru, Tavoularis, Gyllenhammer, and Slater

Absent: Bilodeau, and Gutierrez
Councilmember Gyllenhammer joined the Closed Session via teleconference at 5:03 p.m.

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None.

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 4:33 p.m. with all Members present, except Mayor Pro Tem Bilodeau and Councilmember Gutierrez who were absent, and Councilmember Gyllenhammer who joined the Closed Session by teleconference at 5:03 p.m. to discuss the following:
a. PUBLIC EMPLOYMENT
Pursuant to Government Code Section 54957(b)1
Title: City Manager
b. PUBLIC EMPLOYMENT
Pursuant to Government Code Section 54957(b)1
Title: City Attorney

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20 City Council Minutes May 27, 2025
c. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
City Negotiators: Tom Kisela, City Manager; Monica Espinoza, Human Resources Director
Employee Organizations: Orange Management Association, Orange Municipal Employees’ Association, and International Brotherhood of Electrical Workers (IBEW) Local 47 (Maintenance and Crafts and Water Division)

4. CLOSED SESSION REPORT
None

5. ADJOURNMENT
Closed Session was adjourned at 5:22 p.m.
______________________ _________________________
JENNIFER CONNALLY DANIEL R. SLATER

DEPUTY CITY CLERK MAYOR

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DRAFT
21 City of Orange
City Council
May 27, 2025

MINUTES
The City Council of the City of Orange, California convened on Tuesday, May 27, 2025, at 6:00 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.

Pursuant to Government Code Section 54953(b), Councilmember Gyllenhammer participated in this meeting via teleconference from the First Floor Lobby, Seattle Marriott Bellevue, 200 110th Avenue NE, Bellevue, WA 98004. A copy of the agenda was posted at this location. 6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER
Mayor Slater called the meeting to order at 6:01 p.m.

1.1 INVOCATION
Given by Father Wadih Kaldawi from St. John Maron Maronite Catholic Church.

1.2 PLEDGE OF ALLEGIANCE
Led by Councilmember Jon Dumitru.

1.3 ROLL CALL

Present: Barrios, Dumitru, Tavoularis, Gyllenhammer, and Slater

Absent: Bilodeau, and Gutierrez

1.4 ANNOUNCEMENTS
None

1.5 REPORT ON CLOSED SESSION ACTIONS
None

2. PUBLIC COMMENTS
Public Speakers:

Doug Redding provided details and arrangements for The Wall the Heals visit on October 2.

Joe Avila, President, Orange Municipal Employees Association, advocated for honest negotiations with City employee bargaining groups.

Kerensa Schupmann urged Council to seek problem solving solutions and find a path forward with all City bargaining groups.

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Michelle Rubio urged fairness in negotiations with City bargaining groups.

Martin Varona asked the Council not to penalize employees for the current budget status.

Eric Perez urged Council to recognize the long term value in the City workforce.

Alyse DeCavallas read a statement from Darla Luzon which requested honest and fairness in negotiations with City bargaining groups.

Christine Walton highlighted the daily interactions staff performs to keep the City operating at the service level expected by residents.

Nicole Bovey, Orange resident, recognized the consistent efforts of staff to keep City operating.

Adam Ribota highlighted how negotiations with the City's bargaining groups factors into achieving the City's strategic goals.

Laurie Cesena questioned the legality of a structure built on a neighboring property.

Written Public Comment:

Janice Brownfield encouraged the City to adopt the Citywide Sustainability Plan.

This was Approved.

3.1. Waive reading in full of all ordinances on the Agenda.

ACTION: Approved.

3.2. Approval of minutes of the City of Orange City Council Special Meeting and Regular Meeting held on May 13, 2025; Special Meeting held on May 17, 2025; Adjourned Special Meeting held on May 18, 2025; and Special Meeting held on May 19, 2025.

ACTION: Approved minutes as presented.

3.3. Third Extension of Tolling Agreements between the City and Milan REI, LLC to further evaluate non-residential uses for the “Brandman site” and the “Creekside Village site.”
ACTION: Approved the extension of the Tolling Agreements with Milan REI X, LLC, for 90 days; and authorized the City Manager to execute the agreements on behalf of the City.

3.4. Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Chapter 8.13.130 Subsection A of the Orange Municipal Code relating to the prohibition of Safe and Sane Fireworks in certain areas of the City.

Ordinance No. 04-25.

A speaker card was submitted for Item 3.4; therefore, the item was removed from the Consent Calendar for separate consideration.

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23 City Council Minutes May 27, 2025
Public Comments:

Jonathan Zimmerman inquired about the financial breakdown for the sale of safe and sane fireworks.

ACTION: A motion was made by Councilmember Dumitru, seconded by Councilmember Tavoularis to adopt Ordinance No. 04-25. The motion carried by the following vote:

Ayes: Dumitru, Tavoularis, Gyllenhammer, and Slater
Noes: Barrios

Absent: Bilodeau, and Gutierrez

3.5. Second Reading and adoption of an Ordinance of the City Council of the City of Orange adopting the recommended map for local responsibility areas provided by the office of the California state fire marshal and as required by Assembly Bill 211. Ordinance No. 07-25.

ACTION: Adopted Ordinance No. 07-25.

3.6. Authorize purchase of consulting services from 1903 Solutions LLC.

ACTION: Approved the purchase of consulting services from 1903 Solutions LLC for $10,000.00.

3.7. Fiscal Years 2025-2030 Citywide Strategic Plan Quarterly Update.

A speaker card was submitted for Item 3.7; therefore, the item was removed from the Consent Calendar for separate consideration.

Public Comments:

Maryanne Skorpanich urged the Council to hire a Historic Planner to help achieve the Strategic Goals related to preservation.

ACTION: A motion was made by Councilmember Barrios, seconded by Councilmember Tavoularis to receive and file an update on the Fiscal Years 2025-2030 Citywide Strategic Plan. The motion carried by the following vote:

Ayes: Barrios, Dumitru, Tavoularis, Gyllenhammer, and Slater Noes: None

Absent: Bilodeau, and Gutierrez
Approval of the Consent Calendar
Items 3.4 and 3.7 were removed from the Consent Calendar and heard separately. All other items were approved as recommended.

A motion was made by Councilmember Dumitru, seconded by Councilmember Tavoularis, to approve the Consent Calendar. The motion carried by the following vote:

Ayes: Barrios, Dumitru, Tavoularis, Gyllenhammer, and Slater Noes: None

Absent: Bilodeau, and Gutierrez

END OF CONSENT CALENDAR
* * * * * * * *

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4. REPORTS FROM MAYOR SLATER
Mayor Slater thanked staff for the successful Fleet Week event.

5. REPORTS FROM COUNCILMEMBERS
None.

6. AB 1234 REPORTS
Councilmember Dumitru disclosed his attendance, at no cost to the City, at the annual Southern California Association of Governments Annual Conference April 30 through May 1.

Councilmember Barrios disclosed correspondence with multiple legislators regarding SB 79, the Abundant & Affordable Homes Near Transit Act, proposed by Senator Weiner.

7. REPORTS FROM CITY MANAGER
None

8. PUBLIC HEARINGS

8.1. Continued Public Hearing to consider introduction and First Reading of an ordinance re-zoning certain properties in the historic Cypress Barrio neighborhood to establish consistency between the Low Density Residential General Plan Land Use Designation in accordance with state law; and finding that Zone Change No. 1267-12(B) is within the scope of the previously certified Final Program Environmental Impact Report No. 1815-09 for the Comprehensive General Plan Update certified on March 9, 2010. Ordinance No. 06-25. (Continued from May 13, 2025)
Public Comments:

Robert Boice spoke regarding the need to hear the item as part of the City's preservation efforts.

Written Public Comment:

The Kennedy Commission submitted a letter in opposition to a zone change for the Cypress Street Barrio.

A motion was made by Councilmember Tavoularis, seconded by Councilmember Dumitru to continue the Public Hearing to a date uncertain. The motion carried by the following vote:

Ayes: Barrios, Dumitru, Tavoularis, Gyllenhammer, and Slater Noes: None

Absent: Bilodeau, and Gutierrez

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9. ADMINISTRATIVE REPORTS

9.1. Fiscal Year 2025-2026 City of Orange Preliminary Budget and Five-Year Capital Improvement Program.

Budget Manager Michelle Kresan and Finance Director Trang Nguyen reviewed the powerpoint presentation and addressed Council's questions regarding fund balances, revenue increasing efforts and staffing level details.

Staff was directed to return with a list of FTE (Full-time Equivalent) positions by department indicating which are filled by third party contracts.

Public Comments
Robert Boice spoke about the need to keep a Historic Planner within the City's FTE positions.

A motion was made by Councilmember Barrios, seconded by Councilmember Dumitru to:
1) Review and approve the Fiscal Year 2025-2026 Preliminary Budget for General Fund, consisting of revenues totaling $147.0 million, and expenditures totaling $149.6 million, including transfers, with the following changes since the March 25, 2025 Budget Study Session:
a. $1.9 million decrease in Fiscal Year 2025-2026 General Fund Revenues, including transfers.
b. $1 million decrease in Fiscal Year 2025-2026 General Fund Expenditures, including transfers.
c. Approve a one-time use of the General Fund undesignated/unrestricted fund balance to support the shortfall in Fiscal Year 2025-2026. 2) Review and approve the Fiscal Year 2025-2026 Preliminary Citywide Budget consisting of total revenues of $253.5 million and total expenditures of $280.1 million for all funds, including transfers.
3) Review and approve the staffing changes for Fiscal Year 2025-2026. 4) Review and approve the Five-Year Capital Improvement Program. 5) Direct staff to return on June 24, 2025, for the Fiscal Year 2025-2026 budget adoption.

The motion carried by the following vote:

Ayes: Barrios, Dumitru, Tavoularis, Gyllenhammer, and Slater Noes: None

Absent: Bilodeau, and Gutierrez

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10. ADJOURNMENT
There being no further business, the meeting was adjourned at 7:48 p.m.

The next Regular City Council Meeting will be held on Tuesday, June 10, 2025, at 6:00 p.m. in the Council Chamber, with a Special Meeting for Closed Session beginning at 4:30 p.m.
______________________ _________________________
JENNIFER CONNALLY DANIEL R. SLATER

DEPUTY CITY CLERK MAYOR

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27 Agenda Item
City Council
Item #: 3.3. 6/24/2025 File #: 25-0312
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
Agreement with the American National Red Cross for use of City facilities during disaster-related activities.

2. SUMMARY
The American National Red Cross seeks to use designated City facilities as temporary shelters or service centers during disaster response. The agreement allows the Red Cross to request access to Grijalva Park Sports Center, Orange Senior Center, and Shaffer Park for emergency operations. The City retains discretion over facility use.

3. RECOMMENDED ACTION

1. Approve the agreement with the American National Red Cross for use of City facilities during disaster-related activities at no cost.

2. Approve the Pet Addendum to the Facility Use Agreement with the American National Red Cross to allow clients’ pets in designated areas.

3. Authorize the City Manager and City Clerk to execute both the Facility Use Agreement and Pet Addendum on behalf of the City.

4. FISCAL IMPACT
None. The agreement stipulates that the American National Red Cross will not be charged a fee for facility use during disaster-related activities. The Red Cross will reimburse the City for any damages or reasonable costs for custodial, food service, or utilities incurred due to their use, per the agreement terms.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
Objective1.10: Strengthen interagency coordination and response

6. DISCUSSION AND BACKGROUND
The City of Orange has a history of supporting community resilience during emergencies. The proposed Facility Use Agreement with the American National Red Cross (Red Cross) establishes a framework for the Red Cross to request temporary use of City facilities-specifically Grijalva Park Sports Center, Orange Senior Center, and Shaffer Park-for disaster-related activities such as shelters, service centers, storage, or parking. The agreement ensures that facility use is at the City’s City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.3. 6/24/2025 File #: 25-0312
discretion and only activated upon Red Cross request during a disaster.

The agreement outlines responsibilities, including joint facility inspections before and after use to document conditions, and requires the Red Cross to exercise reasonable care and obtain written approval for any modifications. The Red Cross will designate a manager to oversee operations, while the City will appoint a Facility Coordinator to ensure coordination. The Pet Addendum allows clients’ household pets, including service and assistance animals, in designated areas, with the Red Cross responsible for pet welfare compliance through an Animal Welfare Organization.

No fee will be charged for facility use during disaster operations, but the Red Cross will reimburse the City for damages (beyond reasonable wear and tear) and reasonable costs for custodial, food service, or utilities (water, gas, electricity, waste disposal) incurred due to their activities. For federally declared disasters, the City may seek reimbursement through the Federal Emergency Management Agency’s Public Assistance Category B program. The agreement term begins upon signing and ends 30 days after written notice by either party.

This agreement strengthens the City’s emergency response capabilities by formalizing a partnership with the Red Cross, aligning with the City’s commitment to public safety and effective disaster management.

7. ATTACHMENTS
· Facility Use Agreement with the American National Red Cross · Pet Addendum to Facility Use Agreement with the American National Red Cross City of Orange Page 2 of 2 Printed on 6/19/2025
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Agenda Item
City Council
Item #: 3.3. 6/24/2025 File #: 25-0312
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
Agreement with the American National Red Cross for use of City facilities during disaster-related activities.

3. RECOMMENDED ACTION

1. Approve the agreement with the American National Red Cross for use of City facilities during disaster-related activities at no cost.

2. Approve the Pet Addendum to the Facility Use Agreement with the American National Red Cross to allow clients’ pets in designated areas.

3. Authorize the City Manager and City Clerk to execute both the Facility Use Agreement and Pet Addendum on behalf of the City.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
Objective1.10: Strengthen interagency coordination and response

6. DISCUSSION AND BACKGROUND
The City of Orange has a history of supporting community resilience during emergencies. The proposed Facility Use Agreement with the American National Red Cross (Red Cross) establishes a framework for the Red Cross to request temporary use of City facilities-specifically Grijalva Park Sports Center, Orange Senior Center, and Shaffer Park-for disaster-related activities such as shelters, service centers, storage, or parking. The agreement ensures that facility use is at the City’s City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.3. 6/24/2025 File #: 25-0312
discretion and only activated upon Red Cross request during a disaster.

7. ATTACHMENTS
· Facility Use Agreement with the American National Red Cross · Pet Addendum to Facility Use Agreement with the American National Red Cross City of Orange Page 2 of 2 Printed on 6/19/2025
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LOG Facility Use Agreement Form V.6.0 2025-03-20 1
Facility Use Agreement
The American National Red Cross (“Red Cross”), a non-profit corporation chartered by the United States Congress, provides services to individuals, families, and communities when disasters strike. The disaster relief activities of the Red Cross are made possible by the American public, who support the Red Cross with generous donations. The Red Cross’s disaster services are also supported by facility owners who permit the Red Cross to use their buildings as shelters and other service delivery sites for disaster victims.

This agreement is between the Red Cross and a facility owner (“Owner”) so the Red Cross can use the facility to provide services during a disaster. This agreement only applies when Red Cross requests use of the facility and is managing the activity at the facility.

Parties and Facility
Owner:

Full Name of Owner City of Orange
Address 300 E. Chapman Avenue
24-Hour Point of Contact
Name and
Title Work
Phone Cell
Emily Bustamante
Community Services Assistant Director
562-308-8189
Address for Official
Notices (only if different
from above
Fire Headquarters
1176 E. Chapman Avenue
Orange, CA 92866
Red Cross:

Chapter Name American Red Cross of Orange County
Chapter Address 600 Parkcenter Drive, Santa Ana, CA 92705 24-Hour Point of Contact
Name and
Title Work
Phone Cell
Monica Ruzich
Disaster Program Manager
(714) 673-7423
(714) 481-5329
Address for Official
Notices
American Red Cross, Disaster Cycle Services Logistics, 8550 Arlington Blvd., Fairfax, VA 22031
Facility:

Grijalva Park Sports Center: 368 N. Prospect St. Orange, CA 92869 Orange Senior Center: 170 S. Olive St Orange, CA 92866
Shaffer Park: 1930 N. Shaffer St. Orange, CA 92865
32 LOG Facility Use Agreement Form V.6.0 2025-03-20 2
Terms and Conditions

1. Use of Facility: Upon request and if feasible, Owner will permit the Red Cross to use and occupy the Facility on a temporary basis to conduct emergency, disaster-related activities. The Facility may be used for the following purposes (both parties must initial all that apply):

Facility Purpose Owner Initials Red Cross
Initials
Service Center (Operations, Client Services, or Volunteer Intake)
Storage of supplies
Parking of vehicles
Disaster Shelter

2. Facility Management: The Red Cross will designate a Red Cross official to manage the activities at the Facility (“Red Cross Manager”). The Owner will designate a Facility Coordinator to coordinate with the Red Cross Manager regarding the use of the Facility by the Red Cross.

3. Condition of Facility: The Facility Coordinator and Red Cross Manager (or designee) will jointly conduct a survey of the Facility before it is turned over to the Red Cross. They will use the first page of the Red Cross’s Facility/Shelter Opening/Closing Form to record any existing damage or conditions. The Facility Coordinator will identify and secure all equipment in the Facility that the Red Cross should not use. The Red Cross will exercise reasonable care while using the Facility and will not modify the Facility without the Owner’s express written approval.

4. Food Services (This paragraph applies only when the Facility is used as a shelter or service center.): Upon request by the Red Cross, and if such resources are available, the Owner will make the food service resources of the Facility, including food, supplies, equipment and food service workers, available to feed the shelter occupants. The Facility Coordinator will designate a Food Service Manager to coordinate meals at the direction of and in cooperation with the Red Cross Manager. The Food Service Manager will establish a feeding schedule and supervise meal planning and preparation. The Food Service Manager and Red Cross Manager will jointly conduct a pre-occupancy inventory of the food and food service supplies before the Facility is turned over to the Red Cross. When the Red Cross vacates the Facility, the Red Cross Manager and Facility Coordinator or Food Service Manager will conduct a post-occupancy inventory of the food and supplies used during the Red Cross’s activities at the Facility.

5. Custodial Services (This paragraph applies only when the Facility is used as a shelter or service center.): Upon request of the Red Cross and if such resources are available, the Owner will make its custodial resources, including supplies and workers, available to provide cleaning and sanitation services at the Facility. The Facility Coordinator will designate a Facility Custodian to coordinate these services at the direction of and in cooperation with the Red Cross Manager.

6. Security/Safety: In coordination with the Facility Coordinator, the Red Cross Manager, as he or she deems necessary and appropriate, will coordinate with law enforcement regarding any security and safety issues at the Facility.

7. Signage and Publicity: The Red Cross may post signs identifying the Facility as a site of Red Cross operations in locations approved by the Facility Coordinator. The Red Cross will remove such signs when the Red Cross concludes its activities at the Facility. The Owner will not issue press releases or other publicity concerning the Red Cross’s activities at the Facility without the 33 LOG Facility Use Agreement Form V.6.0 2025-03-20 3
written consent of the Red Cross Manager. The Owner will refer all media questions about the Red Cross activities to the Red Cross Manager.

8. Closing the Facility: The Red Cross will notify the Owner or Facility Coordinator of the date when the Red Cross will vacate the Facility. Before the Red Cross vacates the Facility, the Red Cross Manager and Facility Coordinator will jointly conduct a post-occupancy inspection, using the second page of the Shelter/Facility Opening/Closing Form, to record any damage or conditions.

9. Fee (This paragraph does not apply when the Facility is used as a shelter. The Red Cross does not pay fees to use facilities as shelters.): Both parties must initial one of the two statements below:
a. Owner will not charge a fee for the use of the Facility.

Owner Initials _______ Red Cross Initials ______
b. The Red Cross will pay $ per: for the right to use and occupy the Facility Owner Initials ________ Red Cross Initials ______

10. Reimbursement: Subject to the conditions in paragraph 10(e) below, the Red Cross will reimburse the Owner for the following:
a. Damage to the Facility or other property of Owner, reasonable wear and tear excepted, resulting from the operations of the Red Cross. Reimbursement for facility damage will be based on replacement at actual cash value. The Red Cross, in consultation with the Owner, will select from bids from at least three reputable contractors. The Red Cross is not responsible for storm damage or other damage caused by the disaster. b. Reasonable costs associated with custodial and food service personnel and supplies which would not have been incurred but for the Red Cross’s use of the Facility. The Red Cross will reimburse at per-hour, straight-time rate for wages actually incurred but will not reimburse for (i) overtime or (ii) costs of salaried staff. c. Reasonable, actual, out-of-pocket costs for the utilities indicated below, to the extent that such costs would not have been incurred but for the Red Cross’s use of the Facility. (Both parties must initial all utilities that may be reimbursed by the Red Cross):

Owner Initials Red Cross Initials
Water
Gas
Electricity
Waste Disposal
d. The Owner will submit any request for reimbursement to the Red Cross within 60 days after the occupancy of the Red Cross ends. Any request for reimbursement must be accompanied by supporting invoices. Any request for reimbursement for personnel costs must be accompanied by a list of the personnel with the dates and hours worked. e. If the disaster is a Federally declared disaster and Owner is a municipal, county, parish, or state government entity, then the Owner will work with appropriate emergency management agencies to seek cost reimbursement through the Federal Emergency Management Agency’s program for administering Public Assistance Category B under the Robert T. Stafford Act. The Red Cross is not obligated to reimburse the Owner for costs covered by Public Assistance Category B.
34 LOG Facility Use Agreement Form V.6.0 2025-03-20 4

11. Insurance: The Red Cross shall carry insurance coverage in the amounts of at least $1,000,000 per occurrence for Commercial General Liability and Automobile Liability. The Red Cross shall also carry Workers’ Compensation coverage with statutory limits for the jurisdiction within which the facility is located and $1,000,000 in Employers’ Liability.

12. Indemnification: The Red Cross shall defend, hold harmless, and indemnify Owner against any legal liability, including reasonable attorney fees, in respect to claims for bodily injury, death, and property damage arising from the negligence of the Red Cross during the use of the Facility.

13. Term: The term of this agreement begins on the date of the last signature below and ends 30 days after written notice by either party.

Digital Signature: Each party agrees that either party’s execution of this agreement by DIGITAL signature (whether ELECTRONIC or encrypted) is expressly intended to authenticate this AGREEMENT and to have the same force and effect as manual signatures. The term DIGITAL signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures. The use of digital signatures is intended to facilitate more efficient execution and delivery of signed documents.

City of Orange The American National Red Cross
Owner (Legal Name) (Legal Name)
By (Signature) By (Signature)
Thomas C. Kisela
Name (Printed) Name (Printed)
City Manager
Title Title
Date Date
ATTEST:

Pamela Coleman, City Clerk
APPROVED AS TO FORM:

Nathalie Adourian
Senior Assistant City Attorney
√
35

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PET ADDENDUM TO FACILITY USE AGREEMENT
This Pet Addendum to Facility Use Agreement (“Addendum”) is hereby annexed to and made a part of the Facility Use Agreement (“Agreement”) having an effective date of _________________, 2025, and entered into between City of Orange (“Owner”) and The American National Red Cross, a nonprofit corporation, a Federally chartered instrumentality of the United States, and a body corporate under the laws of the United State (36 U.S.C. §§ 300101-300111 (2007) (“Red Cross”). Owner and Red Cross are each sometimes referred to herein as a “Party” and collectively, as “Parties”, as the context requires. Capitalized terms used, but not defined herein have the meanings set forth in the “Agreement”.

Owner hereby grants permission to the Red Cross to permit its clients while occupying a portion of the Premises (“Client”) to keep only those pet(s) described below upon the terms and conditions in this Addendum. All pets are subject to the following general policies:

1. Clients’ household pets, including assistance/therapy animals (each as defined by applicable law) are permitted to be kept on and in the area of the Facility or other areas (designated by Owner) in the building.

2. Clients’ service and/or guide animals (as defined by applicable law) are permitted to be kept in the same area of the Facility as the Client.

3. At all times when a client’s pet is outside the Pet Area, the pet must be secured by either a leash, or in a carrier or other container and restrained in such a way so as not to cause any damage to people or the Facility. Except for service and/or guide animals, no pet is permitted in any part of the Facility, other than the Pet Area, or other areas designated and approved by Owner.

4. Owner’s personnel shall avoid physical contact with any pet and shall enter the Pet Area only accompanied by the Red Cross Representative (identified in the Agreement) or Animal Welfare Organization (AWO) providing care and/or support of the pet.

5. Red Cross agrees that it, acting through the AWO, shall be responsible for sheltering, feeding, maintaining, and overseeing the welfare of the pets in compliance with all applicable laws and regulations, including but not limited to all state law and local ordinances regarding pet ownership and liability.

6. The Parties may execute and deliver this Addendum in counterparts.

7. Except as otherwise set forth in this Addendum, the terms of the Agreement remain in effect.

8. The term of this Addendum shall be coterminous with the term of the Agreement.

The Parties have executed and delivered this Addendum as of the Effective Date. [Signatures follow on next page]
36

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IN WITNESS WHEREOF, the Parties, acting through their duly authorized officers, have executed this Contract, which shall come into force as of the latest date of the signatures below.

OWNER RED CROSS
City of Orange, a municipal corporation
By: _____________________________________
Print Name: Thomas C. Kisela
Title: City Manager
ATTEST:
________________________________________
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
________________________________________
Nathalie Adourian
Senior Assistant City Attorney
The American National Red Cross
By: _____________________________________
Signature
Print Name: _____________________________
Title: ___________________________________
√
37 Agenda Item
City Council
Item #: 3.4. 6/24/2025 File #: 25-0330
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Nieves Landscape, LLC. for landscape maintenance services for City properties, right-of-way, and assessment districts.

2. SUMMARY
A five-year agreement with Nieves Landscape, LLC to provide landscape maintenance services for City properties, right-of-way, and assessment districts. The total amount of the agreement is $4,399,957 with an initial annual amount of $860,301 which includes a 10% contingency. This total amount includes a fixed annual consumer price index adjustment of 2.5% for portions of the agreement. The agreement also includes a potential five-year extension which would be brought before City Council, if merited by Nieves Landscape, LLC.

3. RECOMMENDED ACTION
Approve the agreement with Nieves Landscape, LLC. in the amount of $4,399,957 for landscape maintenance services; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The expense for this agreement is $860,301 (initial annual amount plus a 10% contingency) and will be funded through General Fund (100), Traffic Improvement-Measure M2 (263), Landscape Districts (291, 293, and 294), Old Towne Parking Facility (540), and Water (600), respectively:
100.5025.51431.00000 Landscape Maintenance - City Property $204,070 263.5021.51431.00000 Landscape Maintenance - City Property $92,939 291.5025.51431.00000 Landscape Maintenance - City Property $398,152 293.5025.51431.00000 Landscape Maintenance - City Property $20,439 294.5025.51431.00000 Landscape Maintenance - City Property $57,613 540.5025.51431.00000 Landscape Maintenance - City Property $15,062 600.5025.51431.00000 Landscape Maintenance - City Property $72,026 This agreement is for five years totaling $4,399,957 including contingency, payable in annual installments. FY26 and future installments will be requested in conjunction with the annual operating City of Orange Page 1 of 3 Printed on 6/19/2025
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Item #: 3.4. 6/24/2025 File #: 25-0330
budget.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The City’s current landscape maintenance contract expires at the end of June 2025. In anticipation of this, staff issued an RFP to ensure the continuity of service and maintain competitive pricing. On April 10 and April 17, 2025, the Public Works Department issued a Request for Proposals (RFP 24-25.18) for citywide landscape maintenance services (not including parks). Proposals were due on May 8, 2025, and seven proposals were received.

Each proposal was evaluated based on several key criteria: the firm’s experience and qualifications, capacity for timely performance, availability of personnel, client references, and overall pricing.

Attachment 1-Proposal Abstract Summary provides a summary of the proposal evaluations.

Following a comprehensive review, Nieves Landscape, LLC received the highest overall score of 93 out of 100. Nieves is the City’s current landscape maintenance provider and has consistently demonstrated strong performance over several years of service. The firm’s proposal highlighted the strength of its team, including their licenses, certifications, education, and extensive experience in municipal landscaping work. Nieves also provided detailed staffing plans and scheduling flexibility to meet City service requirements. Staff verified the firm’s qualifications and customer service reputation through reference checks with other public agencies. The feedback was uniformly positive, confirming the firm’s reliability, quality of work, and responsiveness.

Nieves submitted a five-year cost proposal totaling $3,999,961, the second lowest among all proposals received. Notably, this new proposal reflects only a 2.5% increase from the City’s current contract with Nieves, despite inflation and rising labor and material costs. The proposal is considered competitive and cost-effective when weighed against the scope of work and the evaluation criteria.

Staff recommends including a 10% contingency of $399,996 to address unforeseen repairs and replenish existing landscaping as needed, bringing the total not-to-exceed contract amount to $4,399,957.

The agreement also reflects adjustments to service frequencies to match the budget cuts from Fiscal Year 2025. The initial annual base cost is $782,092. With the 10% contingency ($78,209), the total first-year cost is $860,301. Annual contract costs will increase by a fixed 2.5% Consumer Price Index (CPI) escalator in subsequent years, except in designated assessment districts. A cost breakdown for the full term of the agreement is provided below:

Fiscal Year Base Cost Contingency (10%) Amount
2025-26 $782,092 $78,209 $860,301
2026-27 $790,821 $79,082 $869,903
2027-28 $799,768 $79,977 $879,745
2028-29 $808,940 $80,894 $889,834
2029-30 $818,340 $81,834 $900,174
Total $3,999,961 $399,996 $4,399,957
Funding for subsequent years is contingent on City Council approval of the annual operating budget City of Orange Page 2 of 3 Printed on 6/19/2025 powered by Legistar™ 39
Item #: 3.4. 6/24/2025 File #: 25-0330
Funding for subsequent years is contingent on City Council approval of the annual operating budget through Fiscal Year 2029-2030. Should funding not be appropriated in any given year, the agreement includes provisions for termination with proper notice.

Based on their qualifications, competitive pricing, minimal cost increase over the existing contract, positive service history with the City, and favorable references, staff recommends awarding the fiveyear agreement to Nieves Landscape, LLC.

7. ATTACHMENTS
· Proposal Abstract Summary
· Agreement with Nieves Landscape, LLC.

City of Orange Page 3 of 3 Printed on 6/19/2025
powered by Legistar™ 40
Agenda Item
City Council
Item #: 3.4. 6/24/2025 File #: 25-0330
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Nieves Landscape, LLC. for landscape maintenance services for City properties, right-of-way, and assessment districts.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability Goal 5: Improve Infrastructure, Mobility, and Technology

Attachment 1-Proposal Abstract Summary provides a summary of the proposal evaluations.

Staff recommends including a 10% contingency of $399,996 to address unforeseen repairs and replenish existing landscaping as needed, bringing the total not-to-exceed contract amount to $4,399,957.

Fiscal Year Base Cost Contingency (10%) Amount
2025-26 $782,092 $78,209 $860,301
2026-27 $790,821 $79,082 $869,903
2027-28 $799,768 $79,977 $879,745
2028-29 $808,940 $80,894 $889,834
2029-30 $818,340 $81,834 $900,174
Total $3,999,961 $399,996 $4,399,957
Funding for subsequent years is contingent on City Council approval of the annual operating budget City of Orange Page 2 of 3 Printed on 6/19/2025 powered by Legistar™ 42
Item #: 3.4. 6/24/2025 File #: 25-0330
Funding for subsequent years is contingent on City Council approval of the annual operating budget through Fiscal Year 2029-2030. Should funding not be appropriated in any given year, the agreement includes provisions for termination with proper notice.

7. ATTACHMENTS
· Proposal Abstract Summary
· Agreement with Nieves Landscape, LLC.

City of Orange Page 3 of 3 Printed on 6/19/2025
powered by Legistar™ 43
Elite
Maintenance
and Tree
Service
Landscape
West
Management
Services, Inc
Mariposa
Landscapes,
Inc
Merchants
Landscape
Services, Inc
Nieves
Landscape,
LLC
JAS
Landscape,
LLC Stay Green
Contractor's Price. (10%) 7 9 7 7 9 4 6
Indication of timely
performance/crew availability (40%) 22 26 33 26 38 23 33 Contractors qualifications based on
professional experience (40%) 24 29 33 29 37 20 33
Client References (10%) 6 7 7 7 8 5 7
Total Scores 59 71 81 69 93 52 78
RFP# 24-25.18 Citywide Landscaping Maintenance Services 44 MAINTENANCE SERVICES AGREEMENT
[Landscape Maintenance Servicesl
THIS MAINTENANCE SERVICES AGREEMENT (the "Agreement") is made at Orange, Califomia, on this _ day of 2025 by and between the CITY OF ORANGE, a municipal corporation ("City") and NIEVES LANDSCAPE, LLC, a Delaware limited liability company ("Contractor"), who agree as follows.

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit "A," which is attached hereto and incorporated herein by this reference. As a material inducement to City to enter into this Agreement, Conhactor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. Contractor represents that it is experienced in performing the work and will follow the highest professional standards in performance of the work. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices.

The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exlibit "A" to the contrary.

Grant Pickering, Landscape Coordinator ("City's Project Manager"), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor's performance hereunder shall be under the supervision of City's Project Manager (or his/her designee), that Contractor shall coordinate its sewices hereunder with City's Project Manager to the extent required by City's Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City's Project Manager and the City Manager.

2. Total Comoensation. Annual Compensation and Fee Schedule a. Contractor's total compensation for all services performed under this Agreement, shall not exceed THREE MILLION NINE HLTNDRED NINETY-NINE THOUSAND NINE HUNDRED SIXTY-ONE DOLLARS and 261100 ($3,999,961.26) without the prior written authorization of City.
b. The compensation for services perfomed under this Agreement shall be paid as specified in Exhibit "B."
c. In addition to the scheduled services to be performed by the Contractor, the parties recognize that additional, unforeseen work and seruices may be required by City's Project Manager. In anticipation of such contingencies, the sum of THREE HTINDRED NINETY-NINE THOUSANDNINE HUNDREDNINETY-SIX DOLLARS and 13/100 (S399,996.13) has been added to the total compensation ofthis Agreement. City's Project Manager 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 City's Project Manager 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 an Amendment to Agreement 45 approved by the City Manager on a form acceptable to the City Attomey. The Contractor agrees to perform only that work or those services that are specifically requested by the City's Project Manager.

Any and all additional work and services performed under this Agreement 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 City's Project Manager prior to the commencement of such services.
d. The total amount of compensation under this Agreement, including contingencies, shall not exceed FOUR MILLION THREE HUNDRED NINETY-NINE THOUSAND NINE HUNDRED FIFTY-SEVEN DOLLARS and 391100 (94,399,957.39).

3. Payment.
a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incured.
b. All such invoices shall state the basis for the amount invoiced, inciuding services completed, the number ofhours spent and any extra work performed. c. City will pay Contractor the amount invoiced within thidy (30) days after the approval of the invoice.
d, Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.
4, Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously authorized in writing and approved by City as an amendment to this Agreement. The amendment shall set forth the changes ofwork, extension oftime, and adjustment ofthe compensation to be paid by City to Contractor.

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

6. Independent Contractor. At all times during the term ofthis Agreement, Contractor shail be an independent contractor and not an employee of City. Ciry shall have the right to control Contractor only insofar as the result of Confactor's services rendered pursuant to this Agreement.

City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, fumish all facilities, materials and equipment which may be required for fumishing services pursuant to this Agreement.

Contractor shall be solely responsible for, and shall indemnifu, 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 it and any subcontractors, agents 2 46
or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any ofthe benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employces Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

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

Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

8. Designated Persons. Except as otherwise authorized by City's Project Manager, only the employees of Contractor shall perform work provided for under this Agreement. It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.

9. Assisnment or Subcontracting. No assignment or subcontracting by Contractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has had the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.

10. Term. The term ofthis Agreement shall be for five years (5) years, commencing on Itily l,2025, and ending on June 30,2030.

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

12. Reserved.

13. Delavs and Extensions of Time. Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length ofthe delay outside Contractor's control. IfContractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writrng, why the delay has caused additional costs to be incured and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.
3 14, Products of Contractor. The documents, studies, evaluations, assessments, reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products produced or provided by Contractor for this A$eement shall become the property ofCity upon receipt. Contractor shall deliver all such products to City prior to payment for same. City may use, reuse or otherwise utilize such products without restriction.
47 15. Eoual Emolovment ODDortunitY. During the performance of this Agreement, Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for emplol.rnent because ofrace, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
b. Contractor sha1l, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a 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 ofthe Government Code. 17 . Indemnitv.
a. To the fullest extent permitted by law, Contractor agrees to indemnifu, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the "Indemnitees") entirely harmless from all liability arising out of (2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission ofContractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out o{ or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City's property; but not for any loss, injury, death or damage caused 4 (l) Any and all claims under workers' compensation acts and other employee benefit acts with respect to Contractor's employees or subcontractor's employees arising out ofcontractor's work under this Agreement, including any and all claims under any law pertaining to Contractor or its employees' status as an independent conhactor and any and all claims under Labor Code section 1720 related to the payment ofprevailing wages for public works projects; and 48 by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnift any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfu any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph. b. Reserved
c. Except for the Indemnitees, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.
d. The indemnities set fodh in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors.

18. Insurance.
a. Workers' Compensation and Emplover's Liability. Contractor shall carry workers' compensation insurance as required by law for the protection of its employees during the progress ofthe work. Contractor understands that it is an independent contractor and not entitled to any workers' compensation benefits under any City program. Contractor shall also maintain during the life of this Agreement employer's liability insurance in the amount of One Million Dollars ($ 1,000,000) per accident for bodily injury or disease. b. General Liability. Contractor shall maintain during the life of this Agreement the foliowing minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) Four Million Dollars ($4,000,000) per occurrence; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurence basis. c. Automobile Liabiliry. Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($1,000,000); or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis. d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Contractor under this Agreement. e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of 5 49
an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Agreement.
f. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy. Contractor will determine its own needs in procurement ofinsurance to cover liabilities other than as stated above. g. Before Conhactor perfornrs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days'prior written notice to City.
h. All insurance maintained by Contractor shall be issued by companies admitted to conduct the peftinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition ofBest Key Rating Guide. i. Contractor sha[[ immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set-off fiom any sums owed Contractor. j. Contractor agrees that in the event ofloss due to any ofthe perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services ofContractor herein, a waiver ofany right to subrogation which any such insurer may acquire against City by virtue ofthe payment ofany loss under such insurance. k. Contractor shall include all subcontractors, ifany, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to City for review and approval. A[1 coverages for subcontractors shall be subject to all of the requirements stated herein.

19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days' written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise. Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits. 20, Maintenance and InsDection 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") 6 50

21. Comnliance with Laws/Background.
a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement. b. The work provided for in this Agreement constitutes a "public works," as that term is defined in Section 1720 of the Califomia 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 Califomia promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified prevailing rates ofwages to all such workers and shall comply with all statutory requirements thereunder. Statutory provisions for penalties for failure to comply with prevailing wage laws will be enforced. The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations (y1Ury-dU.SA€AyDLSD.

Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring. c. Contractor represents and warrants that it:
(1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the knmigration Reform and Control Act of 1986 (IRCA); and (2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and
(3) Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance ofthe Form I-9 for each ofContractor's employees; and (4) Has responded, and shall at all times during the term ofthis Agreement respond, in a timely fashion to any govemment 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. d. Contractor shall, upon request ofCity, provide a list ofall employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such 7 pedaining to the costs of and completion of selices performed under this Agreement. City and its authorized representatives shall have access to and the right to audit and reproduce any ofContractor's records regarding the services provided under this Agreement. Contractor shall maintain all such records for a period of at least three (3) years after termination or compietion of this Agreement.

Contractor agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days' notice from City, and copies thereof shall be furnished if requested.
51 employees are eligible to work in the United States. All costs associated with such verification shall be bome by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.
e. Contractor shall require all subcontractors to make the same representations and warranties as set forth herein.
f. IfContractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status ofsuch employee, that shall constitute a material breach ofthis Agreement and may be cause for immediate termination olthis Agreement by City. g. All personnel perlorming any seruices to City under this Contract shall possess sufficient experience and security records to perform the work at public facilities. Contractor shall conduct and complete, to City's satisfaction, sufficient background checks to ensure no personnel performing services under this Contract is listed on the National Sex Offender Public Registry ('NSOPR'). Contractor shall monitor personnel security records to ensure no existing or new employees performing services under this Contract are added to the NSOPR or convicted ofany cnmes that would disqualif,i them from adhering to conduct conducive to public safety. h. All costs associated with the documentation and verification required herein shall be bome by Contractor. Contractor shall require all subcontractors to provide the same documentation and verification when hired to perform services under this Contract. City has the right, in its sole and absolute discretion, to reject any employee of Contractor assigned to perform services for City, with or without cause, at the time ofsuch assignment or at any time thereafter, and Contractor shall remove that employee from providing services to City to the extent permitted by law and any applicable collective bargaining agreement. City's rights under this Article shall not be exercised in an arbitrary or capricious manner, or with the intent of forcing a termination of this Contmct. i. Contractor agrees to indemnify and hold City, its officials, and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in connection with the performance ofthis Agreement.

22. Governing Law and Venue. This Agreement shall be construed in accordance with and govemed by the laws ofthe State of Califomia and Contractor agrees to submit to the jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, Califomia.
23, Integration. This Agreement constitutes the entire agreement ofthe parties. No other agreement, oral or written, pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any work performed which is inconsistent with or in violation of the provisions of this Agreement shall not be compensated. 8 52
24, Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifuing the other party in writing. Notices shall be deemed received upon receipt of same or within 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"
Nieves Landscape, LLC
1629 E. Edinger Avenue
Santa Ana, CA, 92705
Attn.: Greg Nieves
Telephone: 7 14-641-307 1
E-Mail: [email protected]
City of Orange
300 E. Chapman Avenue
Orange, CA 92866-1591
Attn.: Grant Pickering
Telephone: 7 14-532-6464
E-Mail: [email protected]

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures kansmitted via facsimile and electronic mail shall have the same effect as original signatures.
[Remainder of page intentionally left blank; signatures on next page] 9 *CITY"
53 IN \ryITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.
*CONTRACTOR" "CITY"
NIE\'ES LANDSCAPE, LL a Delaware
limited lia mpany
*By: By
Printed Nam d tevw Daniel R. Slater, Mayor
Title:

L
/
ATTEST:
t
Pamela Coleman, City Clerk
APPROVED AS TO FORM:

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

Printed
Title:
*ryE
a. -.
10 CITY OF ORANGE, a municipal corporation
54 EXHIBIT "A"
SCOPE OF SER\'ICES
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EXHIBIT "8"

COMPENSATION FOR SERVICES
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Agenda Item
City Council
Item #: 3.5. 6/24/2025 File #: 25-0340
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
Agreements with the California Department of Health Care Services, CalOptima, and Kaiser Foundation Health Plan Inc. for a one-time Intergovernmental Transfer for Fiscal Year 2025-2026.

2. SUMMARY
Request for City Council approval to participate in a one-time Intergovernmental Transfer for the twelve-month period ending December 31, 2024, to access additional Federal Medicaid dollars to support unreimbursed care.

3. RECOMMENDED ACTION

2. Authorize an advancement in an amount not to exceed $850,000 from the General Fund (100) to the California Department of Health Care Services.

4. FISCAL IMPACT
The General Fund (100) will advance the Department of Health Care Services an approximate amount not to exceed $850,000; however, the City will receive a total approximate return of $1,379,644 which includes the initial advance and the City’s share of unreimbursed Medicaid funds from the Intergovernmental Transfer revenue.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

6. DISCUSSION AND BACKGROUND
An Intergovernmental Transfer (IGT) allows California’s Medi-Cal managed care plans to partner with local government units to access additional federal Medicaid dollars to support unreimbursed care and provide health care services. Since the City provides ambulance transport services and has unreimbursed Medicaid expenses, it became eligible to participate in the IGT program in Fiscal Year 2014-2015. Currently, the University of California, Irvine (UCI), the City of Newport Beach, Huntington Beach, and the City of Orange are participants. In Fiscal Year 2024-2025 (FY25), the net revenue City of Orange Page 1 of 3 Printed on 6/19/2025
powered by Legistar™197
Item #: 3.5. 6/24/2025 File #: 25-0340
received from the program was $1,002,745.

Provisions of the IGT require the City to transfer an amount representing 50% of unreimbursed CalOptima and Kaiser Foundation Health Plan, Inc. (Kaiser) patient charges (the IGT amount) to the California State Department of Health Services (DHCS). The City also remits an administrative fee equal to 20% of the IGT amount. DHCS uses the original IGT amount to access the Federal government’s highest allowable Medi-Cal reimbursement rate, enabling them to draw down additional Federal funds on behalf of the City. Upon reimbursement from the Federal government, CalOptima, and Kaiser reimburses the City the original IGT amount, the 20% administration fee, and 50% of the additional reimbursement revenue (the maximum allowed recovery amount under the program). The amount received is based on the rate range and the number of Cal Optima and Kaiser providers.

DHCS reached out to the City to participate in the program for Calendar Year 2024 (CY24). The details of the City’s participation are as follows:

IGT Contribution from City $ 627,111
20% Admin Fee $ 125,422
Total IGT Transfer to DHCS for CY23
Program
$
752,533
Estimated unreimbursed IGT Revenue
available for CY24
$
1,254,222
Where of,
50% of that additional revenue goes to
City, and
$ 627,111
50% of remaining revenue available
goes to CalOptima and Kaiser
$ 627,111
Upon reimbursement,
CalOptima and Kaiser will return to the
City the original IGT contribution, 20%
administrative fee, and 50% of IGT
revenue available
$
1,379,644
Estimated net revenue that will be
received by the City in Fiscal Year
2024-2025 (FY25)
$ 627,111
In March 2025, the City submitted a non-binding letter to DHCS confirming our interest in participating in the program. If the City intends to move forward, three agreements need to be executed:
1) Intergovernmental Agreement regarding transfer of public funds between the City and DHCS; and
2) Health Plan-Provider Agreement between the City and CalOptima. 3) Health Plan-Provider Agreement between the City and Kaiser.

Approximate Timeframe for IGT participation:

March 2025: CalOptima and Kaiser advised DHCS the City will be participating in the IGT program.

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Item #: 3.5. 6/24/2025 File #: 25-0340
July 2025: Agreements will be signed and submitted to DHCS for their review and approval.

October 2025: City will receive an invoice from DHCS representing estimated unreimbursed Medicaid expenses for the twelve months ending December 31, 2024.

After payment is received DHCS will send the additional revenue to CalOptima and Kaiser for disbursement. CalOptima and Kaiser will distribute an estimated amount of $1,379,644 back to the City within the 30 days specified in the Provider Agreement, of which $627,111 is the estimated net revenue to the City.

Specifics of this IGT participation require additional monies received to be used for transport services. Allowable expenditures include salaries for transport personnel, related materials and supplies, and capital expenses. While there are no specific guidelines or obligations, the additional revenue received should be used within a year after receipt. There are no guarantees that future monies for reimbursement will be available; as such, this revenue should be viewed as one-time funding only.

DHCS requires program participants to obtain City Council approval before routing final agreements for execution. While funding is not guaranteed, successful participation in previous program years has generated supplementary revenue for the City and staff recommends that the City pursue this additional reimbursement.

7. ATTACHMENTS
· Intergovernmental Agreement with California Department of Health Care Services · Health Plan-Provider Agreement with CalOptima
· Health Plan-Provider Agreement with Kaiser Foundation Health Plan Inc.

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Agenda Item
City Council
Item #: 3.5. 6/24/2025 File #: 25-0340
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
Agreements with the California Department of Health Care Services, CalOptima, and Kaiser Foundation Health Plan Inc. for a one-time Intergovernmental Transfer for Fiscal Year 2025-2026.

3. RECOMMENDED ACTION

2. Authorize an advancement in an amount not to exceed $850,000 from the General Fund (100) to the California Department of Health Care Services.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.

6. DISCUSSION AND BACKGROUND
An Intergovernmental Transfer (IGT) allows California’s Medi-Cal managed care plans to partner with local government units to access additional federal Medicaid dollars to support unreimbursed care and provide health care services. Since the City provides ambulance transport services and has unreimbursed Medicaid expenses, it became eligible to participate in the IGT program in Fiscal Year 2014-2015. Currently, the University of California, Irvine (UCI), the City of Newport Beach, Huntington Beach, and the City of Orange are participants. In Fiscal Year 2024-2025 (FY25), the net revenue City of Orange Page 1 of 3 Printed on 6/19/2025
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Item #: 3.5. 6/24/2025 File #: 25-0340
received from the program was $1,002,745.

DHCS reached out to the City to participate in the program for Calendar Year 2024 (CY24). The details of the City’s participation are as follows:

Approximate Timeframe for IGT participation:

March 2025: CalOptima and Kaiser advised DHCS the City will be participating in the IGT program.

City of Orange Page 2 of 3 Printed on 6/19/2025
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Item #: 3.5. 6/24/2025 File #: 25-0340
July 2025: Agreements will be signed and submitted to DHCS for their review and approval.

October 2025: City will receive an invoice from DHCS representing estimated unreimbursed Medicaid expenses for the twelve months ending December 31, 2024.

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CONTRACT # IGT-24-0018
1 Template Version - 4/2025

INTERGOVERNMENTAL AGREEMENT REGARDING

TRANSFER OF PUBLIC FUNDS
This Agreement is entered into between the CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (“DHCS”) and CITY OF ORANGE (“GOVERNMENTAL FUNDING ENTITY”) with respect to the matters set forth below.

The parties agree as follows:

AGREEMENT

1. Transfer of Public Funds

1.1 The GOVERNMENTAL FUNDING ENTITY agrees to make a transfer of funds to DHCS pursuant to sections 14164 and 14301.4 of the Welfare and Institutions Code.

The amount transferred shall be based on the sum of the applicable rate category per member per month (“PMPM”) contribution increments multiplied by member months, as reflected in Exhibit

1. The GOVERNMENTAL FUNDING ENTITY agrees to initially transfer amounts that are calculated using the Estimated Member Months in Exhibit 1, which will be reconciled to actual enrollment for the service period of January 1, 2024 through December 31, 2024 in accordance with Sub-Section 1.3 of this Agreement. The funds transferred shall be used as described in SubSection 2.2 of this Agreement. The funds shall be transferred in accordance with the terms and conditions, including schedule and amount, established by DHCS.

1.2 The GOVERNMENTAL FUNDING ENTITY shall certify that the funds transferred qualify for Federal Financial Participation pursuant to 42 C.F.R. part 433, subpart B, and are not derived from impermissible sources such as recycled Medicaid payments, Federal money excluded from use as State match, impermissible taxes, and non-bona fide provider203 CONTRACT # IGT-24-0018
2 Template Version - 4/2025
related donations. Impermissible sources do not include patient care or other revenue received from programs such as Medicare or Medicaid to the extent that the program revenue is not obligated to the State as the source of funding.

1.3 DHCS shall reconcile the “Estimated Member Months,” in Exhibit 1, to actual enrollment in HEALTH PLAN(S) for the service period of January 1, 2024 through December 31, 2024 using actual enrollment figures taken from DHCS records. Enrollment reconciliation will occur on an ongoing basis as updated enrollment figures become available.

Actual enrollment figures will be considered final two years after December 31, 2024. If reconciliation results in an increase to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, the GOVERNMENTAL FUNDING ENTITY agrees to transfer any additional funds necessary to cover the difference. If reconciliation results in a decrease to the total amount necessary to fund the nonfederal share of the payments described in Sub-Section 2.2, DHCS agrees to return the unexpended funds to the GOVERNMENTAL FUNDING ENTITY. If DHCS and the GOVERNMENTAL FUNDING ENTITY mutually agree, amounts due to or owed by the GOVERNMENTAL FUNDING ENTITY may be offset against future transfers.

2. Acceptance and Use of Transferred Funds

2.1 DHCS shall exercise its authority under section 14164 of the Welfare and Institutions Code to accept funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to this Agreement as Intergovernmental Transfer (IGTs), to use for the purpose set forth in Sub-Section 2.2.

2.2 The funds transferred by the GOVERNMENTAL FUNDING ENTITY pursuant to Section 1 and Exhibit 1 of this Agreement shall be used to fund the non-federal share 204
CONTRACT # IGT-24-0018
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of Medi-Cal Managed Care actuarially sound capitation rates described in section 14301.4(b)(4) of the Welfare and Institutions Code as reflected in the contribution PMPM and rate categories reflected in Exhibit 1. The funds transferred shall be paid, together with the related Federal Financial Participation, by DHCS to HEALTH PLAN(S) as part of HEALTH PLAN(S)’ capitation rates for the service period of January 1, 2024 through December 31, 2024, in accordance with section 14301.4 of the Welfare and Institutions Code.

2.3 DHCS shall seek Federal Financial Participation for the capitation rates specified in Sub-Section 2.2 to the full extent permitted by federal law.

2.4 The parties acknowledge that DHCS will obtain any necessary approvals from the Centers for Medicare and Medicaid Services.

2.5 DHCS shall not direct HEALTH PLAN(S)’ expenditure of the payments received pursuant to Sub-Section 2.2.

3. Assessment Fee

3.1 DHCS shall exercise its authority under section 14301.4 of the Welfare and Institutions Code to assess a 20 percent fee related to the amounts transferred pursuant to Section 1 of this Agreement, except as provided in Sub-Section 3.2. GOVERNMENTAL FUNDING ENTITY agrees to pay the full amount of that assessment in addition to the funds transferred pursuant to Section 1 of this Agreement.

3.2 The 20-percent assessment fee shall not be applied to any portion of funds transferred pursuant to Section 1 that are exempt in accordance with sections 14301.4(d) or 14301.5(b)(4) of the Welfare and Institutions Code. DHCS shall have sole discretion to determine the amount of the funds transferred pursuant to Section 1 that will not be subject to a 205
CONTRACT # IGT-24-0018
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20 percent fee. DHCS has determined that $0.00 of the transfer amounts will not be assessed a 20 percent fee, subject to Sub-Section 3.3.

3.3 The 20-percent assessment fee pursuant to this Agreement is nonrefundable and shall be wired to DHCS simultaneously with the transfer amounts made under Section 1 of this Agreement. If at the time of the reconciliation performed pursuant to SubSection 1.3 of this Agreement, there is a change in the amount transferred that is subject to the 20-percent assessment in accordance with Sub-Section 3.1, then a proportional adjustment to the assessment fee will be made.

4. Amendments

4.1 No amendment or modification to this Agreement shall be binding on either party unless made in writing and executed by both parties.

4.2 The parties shall negotiate in good faith to amend this Agreement as necessary and appropriate to implement the requirements set forth in Section 2 of this Agreement.

5. Notices. Any and all notices required, permitted, or desired to be given hereunder by one party to the other shall either be sent via secure email or submitted in writing to the other party personally or by United States First Class, Certified or Registered mail with postage prepaid, addressed to the other party at the address as set forth below:

To the GOVERNMENTAL FUNDING ENTITY:

Bryan Johnson, EMS Manager
206
CONTRACT # IGT-24-0018
5 Template Version - 4/2025
1176 E. Chapman Ave.

Orange, CA 92866
(714) 288-2503
[email protected]
With copies to:

Nathalia Flores, Admin Analyst
1176 E. Chapman Ave.

Orange, CA 92866
(714) 288-2533
[email protected]
To DHCS:

Vivian Beeck
California Department of Health Care Services
Capitated Rates Development Division
1501 Capitol Ave., MS 4413
Sacramento, CA 95814
[email protected]

6. Other Provisions

6.1 This Agreement contains the entire Agreement between the parties with respect to the Medi-Cal payments described in Sub-Section 2.2 of this Agreement that are funded by the GOVERNMENTAL FUNDING ENTITY, and supersedes any previous or contemporaneous oral or written proposals, statements, discussions, negotiations or other agreements between the GOVERNMENTAL FUNDING ENTITY and DHCS relating to the subject matter of this Agreement. This Agreement is not, however, intended to be the sole agreement between the parties on matters relating to the funding and administration of the MediCal program. This Agreement shall not modify the terms of any other agreement, existing or entered into in the future, between the parties.
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6.2 The non-enforcement or other waiver of any provision of this Agreement shall not be construed as a continuing waiver or as a waiver of any other provision of this Agreement.

6.3 Sections 2 and 3 of this Agreement shall survive the expiration or termination of this Agreement.

6.4 Nothing in this Agreement is intended to confer any rights or remedies on any third party, including, without limitation, any provider(s) or groups of providers, or any right to medical services for any individual(s) or groups of individuals. Accordingly, there shall be no third party beneficiary of this Agreement.

6.5 Time is of the essence in this Agreement.

6.6 Each party hereby represents that the person(s) executing this Agreement on its behalf is duly authorized to do so. Any required signature(s) on any documents must be in compliance with California Government Code section 16.5 and any other applicable state or federal regulations.

7. State Authority. Except as expressly provided herein, nothing in this Agreement shall be construed to limit, restrict, or modify the DHCS’ powers, authorities, and duties under Federal and State law and regulations.

8. Approval. This Agreement is of no force and effect until signed by the parties.

9. Term. This Agreement shall be effective as of January 1, 2024 and shall expire as of June 30, 2027 unless terminated earlier by mutual agreement of the parties. 208
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SIGNATURES
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date of the last signature below.

CITY OF ORANGE:

By: Date: _______________________
THE STATE OF CALIFORNIA, DEPARTMENT OF HEALTH CARE SERVICES:

By: Date: _______________________
Authorized Representative, Department of Health Care Services 209
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Exhibit 1
Health Plan Funding Entity Rating Region Service Period Participation % CalOptima City of Orange Orange 1/2024 - 12/2024 0.83%
Category of Aid SIS/UIS Contribution
PMPM
Estimated Member
Months*
Estimated
Contribution (NonFederal Share)
Child SIS $ 0.03 3,087,562 $ 92,627
Child UIS $ 0.01 189,630 $ 1,896
Adult SIS $ 0.07 999,357 $ 69,955
Adult UIS $ 0.05 614,214 $ 30,711
Adult Expansion SIS $ 0.01 3,264,674 $ 32,647
Adult Expansion UIS $ 0.01 746,598 $ 7,466
SPD SIS $ 0.23 401,788 $ 92,411
SPD UIS $ 0.14 116,938 $ 16,371
SPD Dual SIS $ 0.09 1,241,498 $ 111,735
SPD Dual UIS $ 0.02 10,576 $ 212
LTC SIS $ 0.23 1,997 $ 459
LTC UIS $ 0.14 1,429 $ 200
LTC Dual SIS $ 0.09 26,935 $ 2,424
LTC Dual UIS $ 0.02 302 $ 6
WCM SIS $ 0.29 112,441 $ 32,608
WCM UIS $ 0.10 4,199 $ 420
Est. FE Total 10,820,138 $ 492,148
Health Plan Funding Entity Rating Region Service Period Participation % Kaiser Foundation Health
Plan City of Orange Orange 1/2024 - 12/2024 3.50%
Category of Aid SIS/UIS Contribution
PMPM
Estimated Member
Months*
Estimated
Contribution (NonFederal Share)
Child SIS $ 0.14 288,405 $ 40,377
Child UIS $ 0.05 3,313 $ 166
Adult SIS $ 0.33 109,292 $ 36,066
Adult UIS $ 0.21 16,616 $ 3,489
Adult Expansion SIS $ - 237,771 $ -
Adult Expansion UIS $ - 20,608 $ -
SPD SIS $ 0.70 26,043 $ 18,230
SPD UIS $ 0.56 1,325 $ 742
SPD Dual SIS $ 0.18 103,461 $ 18,623
SPD Dual UIS $ 0.09 805 $ 72
LTC SIS $ 7.86 16 $ 126
LTC UIS $ - - $ -
LTC Dual SIS $ 5.19 880 $ 4,567
LTC Dual UIS $ 0.30 6 $ 2
WCM SIS $ 1.26 9,839 $ 12,397
WCM UIS $ 0.47 225 $ 106
Est. FE Total 818,605 $ 134,963
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* Note that Estimated Member Months are subject to variation, and the actual total Contribution (Non-Federal Share) may differ from the amount listed here. * FMAP is a weighted blend of multiple FMAPs.
211

HEALTH PLAN-PROVIDER AGREEMENT

INTERGOVERNMENTAL TRANSFER RATE RANGE PROGRAM AGREEMENT This Agreement is made this 1
st day of September, 2025, by and CALOPTIMA HEALTH,
a California public agency hereinafter referred to as "PLAN", and the City of Orange, a California municipal corporation operating through its Fire Department, hereinafter referred to as "PROVIDER".

RECITALS:

WHEREAS, PLAN is a public agency formed pursuant to California Welfare and Institutions Code Section 14087.54 and Orange County Ordinance No. 3896 as amended by Ordinance Nos. 00-8, 05-008, 06-012, 09-001, 11-013, 14-002 and 16-001, and is party to a MediCal managed care contract with DHCS, entered into pursuant to Welfare and Institutions Code Section 14087.3, under which PLAN arranges and pays for the provision of covered Medi-Cal health care services to eligible Medi-Cal members residing in Orange County; WHEREAS, the City of Orange is an emergency transport provider who provides transportation on a non-contract basis, including to CalOptima Health Medi-Cal Members; WHEREAS, PLAN and PROVIDER desire to enter into this Agreement to provide for Medi-Cal managed care capitation rate increases to PLAN as a result of intergovernmental transfers (“IGTs”) from the City of Orange (GOVERNMENTAL FUNDING ENTITY) to the California Department of Health Care Services (“State DHCS”) to maintain the availability of Medi-Cal health care services to Medi-Cal beneficiaries.

NOW, THEREFORE, PLAN and PROVIDER hereby agree as follows:

IGT MEDI-CAL MANAGED CARE CAPITATION RATE RANGE INCREASES

1. IGT Capitation Rate Range Increases to PLAN
A. Payment
Should PLAN receive any Medi-Cal managed care capitation rate increases from State DHCS where the nonfederal share is funded by the GOVERNMENTAL FUNDING ENTITY specifically pursuant to the provisions of the Intergovernmental Agreement Regarding Transfer of Public Funds, # IGT-24-0018, (“Intergovernmental Agreement”) effective for the period of and January 1, 2024 through December 31, 2024 for Intergovernmental Transfer MediCal Managed Care Rate Range Increases (“IGT MMCRRIs”), PLAN shall pay to PROVIDER the amount of the IGT MMCRRIsreceived from State DHCS, in accordance with paragraph 1.E below regarding the form and timing of Local Medi-Cal Managed Care Rate Range (“LMMCRR”) IGT Payments. LMMCRR IGT Payments paid to PROVIDER shall not replace or supplant any other amounts paid or payable to PROVIDER by PLAN.
212
2 B. Health Plan Retention
(1) a. PLAN shall retain two percent (2.0%) of the net proceeds (after reimbursing PROVIDER’s initial contribution for the transaction), from the Medi-Cal managed care rate increases paid to PLAN by DHCS as described in this agreement prior to disbursing LMMCRR IGT Payments to PROVIDER. The retained funds will be expended by PLAN for Covered Services under PLAN’s contract with DHCS for Medi-Cal, in either the State fiscal year received, or in subsequent State fiscal years, as appropriated by the CalOptima Health Board of Directors.

Each provider’s share of the retained funds shall be calculated based on the provider’s proportionate share of the LMMCRR IGT payment made by PLAN in Orange County. b. The amounts referenced in this agreement are estimates. The parties understand and agree that the total amount of the Medi-Cal managed care capitation rate increases paid by DHCS to PLAN may fluctuate as a result of enrollment. The parties further understand and agree that any such fluctuations will likewise affect the amount to be retained by the PLAN and the amount payable to PROVIDER by the same percentage as the variance in the capitation rate increases, if any.
(2) PLAN will not retain any other portion of the IGT MMCRRIs received from the State DHCS other than those mentioned above.

C. Conditions for Receiving Local Medi-Cal Managed Care Rate Range IGT Payments
As a condition for receiving LMMCRR IGT Payments, PROVIDER shall, as of the date the particular LMMCRR IGT Payment is due:
(1) continue to provide emergency transport services to PLAN Members promptly and in a manner which ensures access to care consistent with PROVIDER’s regular business practices for providing such services; and
(2) not discriminate against PLAN Members or in any way impose limitations on the acceptance of PLAN Members for care or treatment that are not imposed on other patients of PROVIDER.

D. Schedule and Notice of Transfer of Non-Federal Funds

1. PROVIDER shall provide PLAN with a copy of the schedule regarding the transfer of funds to State DHCS referred to in the Intergovernmental Transfer Agreement within fifteen (15) calendar days of establishing such schedule with State DHCS. Additionally, PROVIDER shall notify PLAN, in writing, no less than seven (7) calendar days prior to any changes to an existing schedule, including but not limited to, changes to the amounts specified therein.
213
3 2. PROVIDER shall provide PLAN with written notice of the amount and date of the transfer within seven (7) calendar days after funds have been transferred to State DHCS for use as the nonfederal share of any IGT MMCRRIs.

E. Form and Timing of Payments
PLAN agrees to pay LMMCRR IGT Payments to PROVIDER in the following form and according to the following schedule:
(1) PLAN agrees to pay the LMMCRR IGT Payments to PROVIDER using the same mechanism through which compensation and payments are normally paid to PROVIDER (e.g., electronic transfer).
(2) PLAN will pay the LMMCRR IGT Payments to PROVIDER no later than thirty (30) calendar days after receipt of the IGT MMCRRIs from State DHCS.

F. Consideration
(1) As consideration for the LMMCRR IGT Payments, PROVIDER shall use the LMMCRR IGT Payments for the following purposes and shall treat the LMMCRR IGT Payments in the following manner:
(a) The LMMCRR IGT Payments shall represent compensation for emergency ambulance services rendered to Medi-Cal PLAN members by PROVIDER between January 1, 2024, and December 31, 2024, and shall be used by PROVIDER solely to fund the costs that exceed the fee-for-service rates paid by Medi-Cal PLAN for covered services provided to Medi-Cal PLAN Members during that period.
(b) To the extent that total payments received by PROVIDER for any State fiscal year under this Agreement exceed the cost of Covered Services provided to Medi-Cal PLAN members by PROVIDER during that fiscal year, any remaining LMMCRR IGT Payment amounts shall constitute an overpayment, and shall by returned to Medi-Cal PLAN pursuant to the provisions of Section 1.K., below
(2) Both parties agree that none of these funds, either from the GOVERNMENTAL FUNDING ENTITY or federal matching funds will be recycled back to the GOVERNMENTAL FUNDING ENTITY’S general fund, the State, or any other intermediary organization. Payments made by the health plan to providers under the terms of this Agreement constitute patient care revenues.

G. PLAN’s Oversight Responsibilities
PLAN’s oversight responsibilities regarding PROVIDER’s use of the LMMCRR IGT Payments shall be limited as described in this paragraph. PLAN shall request, within thirty (30) calendar days after the end of each State fiscal year in which LMMCRR IGT Payments were transferred to PROVIDER, a written confirmation that states whether and how PROVIDER complied with the provisions set forth in Paragraph 1.F above. In each instance, PROVIDER shall 214
4 provide PLAN with written confirmation of compliance within thirty (30) calendar days of PLAN’s request.

H. Cooperation Among Parties
Should disputes or disagreements arise regarding the ultimate computation or appropriateness of any aspect of the LMMCRR IGT Payments, PROVIDER and PLAN agree to work together in all respects to support and preserve the LMMCRR IGT Payments to the full extent possible on behalf of the safety net in Orange County.

I. Reconciliation
Within one hundred twenty (120) calendar days after the end of each of PLAN’s fiscal years in which LMMCRR IGT Payments were made to PROVIDER, PLAN shall perform a reconciliation of the LMMCRR IGT Payments transmitted to the PROVIDER during the preceding fiscal year to ensure that the supporting amount of IGT MMCRRIs were received by PLAN from State DHCS. PROVIDER agrees to return to PLAN any overpayment of LMMCRR IGT Payments made in error to PROVIDER within thirty (30) calendar days after receipt from PLAN of a written notice of the overpayment error, unless PROVIDER submits a written objection to PLAN. Any such objection shall be resolved in accordance with the dispute resolution process set forth in Section 1.H. The reconciliation processes established under this paragraph are distinct from the indemnification provisions set forth in Paragraph 1.J below. PLAN agrees to transmit to the PROVIDER any underpayment of LMMCRR IGT Payments within thirty (30) calendar days of PLAN’s identification of such underpayment.

J. Indemnification
PROVIDER agrees to and acknowledges the following: (1) PLAN has no obligation to make any payments hereunder until PLAN has received IGT MMCRRIs from State DHCS; (2) that PLAN is not responsible for State DHCS payments to PLAN, including any mathematical calculations made by DHCS, and (3) PLAN is not responsible for the timing of the payments from DHCS to PLAN (including the conditions precedent to the timing of such payments which includes the timing of DHCS submission to CMS and/or CMS review and approval). In addition, PLAN and PROVIDER agree and acknowledge that nothing herein is intended to create an obligation on the part of PLAN to agree to delays in capitation payment(s) from DHCS in order to accommodate this IGT.

K. Overpayments and CalOptima Health Right to Recover
PROVIDER has an obligation to report any overpayment identified by PROVIDER, and to repay such overpayment to CalOptima Health within sixty (60) days of such identification by PROVIDER, or of receipt of notice of an overpayment identified by CalOptima Health. PROVIDER acknowledges and agrees that, in the event that CalOptima Health determines that an amount has been overpaid or paid in duplicate, or that funds were paid which were not due under this Contract to PROVIDER, CalOptima Health shall have the right to recover such amounts from PROVIDER by recoupment or offset from current or future amounts due from CalOptima Health to PROVIDER, after giving notice and an opportunity to return/pay such amounts. This right to recoupment or offset shall extend to any amounts due from PROVIDER to CalOptima 215
5 Health, including, but not limited to, amounts due because of overpayments as described in the provisions of this agreement.

2. Term
The term of this agreement shall commence on January 1, 2024 and shall terminate on June 30, 2027.

SIGNATURES
HEALTH PLAN: CalOptima Health
Date:

By: Yunkyung Kim, Chief Operating Officer
PROVIDER: City of Orange
Date: _____________
By: Daniel R. Slater, Mayor
ATTEST:
________________________________________________ Date: _____________ Pamela Coleman, City Clerk
APPROVED AS TO FORM:
________________________________________________ Date: _____________ Nathalie Adourian
Senior Asstistant City Attorney
√
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Plan-Provider Agreement City of Orange and Kaiser Foundation Health Plan, Inc.

Page 1 of 7 ends

HEALTH PLAN-PROVIDER AGREEMENT

BY AND BETWEEN
KAISER FOUNDATION HEALTH PLAN, INC.

AND

CITY OF ORANGE

TO IMPLEMENT THE VOLUNTARY RATE RANGE PROGRAM

INTERGOVERNMENTAL TRANSFERS
This Health Plan-Provider Agreement to implement Voluntary Rate Range Program (VRRP) Intergovernmental Transfers (“IGTs”) (“IGT AGREEMENT”) is entered into by and between Kaiser Foundation Health Plan, Inc., a California nonprofit public benefit corporation, on behalf of its Southern California region, hereinafter referred to as “PLAN”, and City of Orange, hereinafter referred to as “PROVIDER”, and is made effective as of the last date it is signed by the parties (the “Effective Date”).

RECITALS:

WHEREAS, PLAN is a health care service plan licensed under and subject to the KnoxKeene Care Service Plan Act of 1975, as amended, and is a party to a Medi-Cal managed care contract with the California Department of Health Care Services (“DHCS”) pursuant to which PLAN arranges and pays for the provision of covered Medi-Cal health care services to eligible Medi-Cal members, including Medi-Cal members residing in the Orange Rating Region (as defined by DHCS).

WHEREAS, PROVIDER provides emergency ambulance transports to Medi-Cal beneficiaries residing in the Orange Rating Region.

WHEREAS, PROVIDER desires to maintain the availability of Medi-Cal transportation services to Medi-Cal beneficiaries by making annual IGTs to DHCS, enabling DHCS to secure additional federal funds that DHCS will provide PLAN through capitation rate range increases; WHEREAS, PLAN desires to transfer an applicable portion of such capitation rate range increases from DHCS to PROVIDER; and
WHEREAS, PLAN and PROVIDER desire to enter into an Agreement to document the IGT process applicable to PLAN and PROVIDER, and the total amounts transferred from PLAN to PROVIDER.

NOW, THEREFORE, PLAN and PROVIDER hereby agree as follows:

1. IGT Capitation Rate Range Increases to PLAN
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Plan-Provider Agreement City of Orange and Kaiser Foundation Health Plan, Inc.

Page 2 of 7 ends

A. Payment
Should PLAN receive any Intergovernmental Transfer Medi-Cal Managed Care Rate Range Increases (“IGT MMCRRIs”) from DHCS where the nonfederal share is funded by PROVIDER specifically pursuant to the provisions of this IGT AGREEMENT regarding transfer of public funds effective during the applicable rating period, PLAN shall, subject to the conditions set forth in Section 1.B below, make payments to PROVIDER in the amount of the IGT MMCRRIs received from DHCS. Such payments from PLAN to PROVIDER are referred to herein as Local Medi-Cal Managed Care Rate Range (“LMMCRR”) IGT payments and shall be made in accordance with Section 1.C below, subject to reconciliation as described in Section 1.D below.

LMMCRR IGT payments paid to PROVIDER shall not replace or supplant any other amounts paid or payable to PROVIDER under any separate contractual agreements.

B. Conditions for Receiving Local Medi-Cal Managed Care Rate Range IGT Payments As a condition of receiving LMMCRR IGT payments under this IGT AGREEMENT, PROVIDER represents and warrants that it shall, as of the date any LMMCRR IGT payment is payable hereunder:
(1) Remain a Medi-Cal enrolled provider for ambulance transport services; (2) Remain in material compliance with its obligations under this IGT AGREEMENT and applicable law;
C. Timing of Payments
Subject to Sections 1.B and E hereof, PLAN agrees to pay to PROVIDER LMMCRR IGT payments no later than forty-five (45) calendar days after PLAN’s receipt of each IGT MMCRRI payment from DHCS.

D. Reconciliation
Within one hundred twenty (120) calendar days after the end of each of PLAN’s fiscal years in which LMMCRR IGT payments were made to PROVIDER, PLAN shall perform a reconciliation of the LMMCRR IGT payments transmitted to the PROVIDER during the preceding fiscal year to ensure that the supporting amount of IGT MMCRRI payments were received by PLAN from DHCS. PROVIDER agrees to return to PLAN any overpayment of LMMCRR IGT payments made in error to PROVIDER within thirty (30) calendar days after receipt from PLAN of a written notice of the overpayment error, unless PROVIDER submits a written objection to PLAN. The reconciliation processes established under this Section are distinct from the indemnification provisions set forth in Section 4 of this IGT AGREEMENT. PLAN agrees to transmit to the PROVIDER any uncontested underpayment of LMMCRR IGT payments within thirty (30) calendar days of the PLAN’s identification of such underpayment. Any disputes between the parties regarding overpayments or underpayments shall be resolved in accordance with Section 5 below.
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Plan-Provider Agreement City of Orange and Kaiser Foundation Health Plan, Inc.

Page 3 of 7 ends

E. Plan Compensation
(1) As compensation for its administrative services in connection with this IGT AGREEMENT, PLAN shall retain a two percent (2%) administrative fee based on the total amount of each IGT MMCRRI payment received from DHCS.
(2) PLAN shall not retain any other portion of the IGT MMCRRI payments received from DHCS other than those specified above.

F. Consideration
(1) As consideration for the LMMCRR IGT payments, PROVIDER shall use the LMMCRR IGT payments solely for the following purposes and shall treat the LMMCRR IGT payments in the following manner:
(a) The LMMCRR IGT payments shall represent compensation for Medi-Cal services rendered to PLAN’s Medi-Cal members by PROVIDER during the State fiscal year to which the LMMCRR IGT payments apply. (b) To the extent total payments received by PROVIDER for a State fiscal year under this IGT AGREEMENT exceed the cost of Medi-Cal services provided to Medi-Cal beneficiaries by PROVIDER during such fiscal year, any remaining LMMCRR IGT payment amounts shall be retained by PROVIDER and shall be expended solely for health care services. Retained LMMCRR IGT payment amounts may be used by the PROVIDER in either the State fiscal year for which the payments are received or subsequent State fiscal years. (2) For purposes of subsection (1)( b) above, if the retained LMMCRR IGT payments, if any, are not used by PROVIDER in the State fiscal year received, retention of funds by PROVIDER will be established by demonstrating that the retained earnings account of PROVIDER at the end of any State fiscal year in which it received LMMCRR IGT payments pursuant to this IGT AGREEMENT, has increased over the unspent portion of the prior State fiscal year’s balance by the amount of LMMCRR IGT payments received, but not used. These retained PROVIDER funds may be commingled with other PROVIDER funds for cash management purposes, provided that such funds are appropriately tracked, and only the depositing facility is authorized to expend them. (3) None of these funds, either from the PLAN or federal matching funds, will be recycled back to the PROVIDER’s general fund, the State, or any other intermediary organization. Payments made under the terms of this IGT AGREEMENT constitute patient care revenues.

2. PLAN’s Oversight Responsibilities
PLAN’s oversight responsibilities regarding PROVIDER’s use of the LMMCRR IGT payments shall be limited as described in this Section. PLAN may request, within thirty (30) calendar days after the end of each State fiscal year in which LMMCRR IGT payments were made by PLAN to PROVIDER, that PROVIDER submit a written confirmation to PLAN that states 219
Plan-Provider Agreement City of Orange and Kaiser Foundation Health Plan, Inc.

Page 4 of 7 ends

whether and how PROVIDER complied with the provisions set forth in Section 1.F above. In each instance, PROVIDER shall provide PLAN with written confirmation within thirty (30) calendar days of PLAN’s request.

3. Dispute Resolution
A. Cooperation Among Parties
Should disputes or disagreements arise regarding the ultimate computation or appropriateness of any aspect of the LMMCRR IGT payments, PROVIDER and PLAN agree to work together in all respects to support and preserve the LMMCRR IGT payments to the full extent permitted by law, on behalf of the safety net in the Orange Rating Region in which PROVIDER renders services.

B. Meet and Confer
If a dispute arises between the parties relating to this IGT AGREEMENT, either party may by written notice call a meeting regarding such dispute to be attended by a representative of each party who has the authority to negotiate and bind that party to a resolution. The parties will attempt in good faith to resolve the dispute through this process prior to seeking other available remedies or recourse. In the event such informal efforts at dispute resolution are not successful, either party may seek whatever remedies and/or recourse may be available in accordance with this IGT AGREEMENT and applicable law.

4. Indemnification
PROVIDER shall defend, indemnify and hold PLAN, its affiliated and related entities, and its and their respective officers, employees and agents harmless from and against any and all liability, loss, expense (including reasonable attorney’s fees), or claims from injury or damages arising out of the performance of this IGT AGREEMENT but only in proportion to the extent such liability, loss, expense, attorney’s fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of PROVIDER, its officers, employees or agents.

PLAN shall defend, indemnify and hold PROVIDER, its officers, employees and agents harmless from and against any and all liability, loss, expense (including reasonable attorney’s fees), or claims for injury or damages arising out of the performance of this IGT AGREEMENT but only in proportion to and to the extent such liability, loss, expense, attorney’s fees, or claims or injury or damages are caused by or result from the negligent or intentional acts or omissions of PLAN, its officers, employees or agents.

5. Severability
If a court of competent jurisdiction declares any provision of this IGT AGREEMENT or application thereof to any person or circumstances to be invalid or if any provision of this IGT AGREEMENT contravenes any federal, state or county statute, ordinance, or regulation, the 220
Plan-Provider Agreement City of Orange and Kaiser Foundation Health Plan, Inc.

Page 5 of 7 ends

remaining provisions of this IGT AGREEMENT or the application thereof shall remain valid and the remaining provisions of this IGT AGREEMENT shall remain in full force and effect, to the extent the provisions of this IGT AGREEMENT are severable.

6. Status of Parties
Each party is, and shall always be deemed to be, an independent contractor and shall be wholly responsible for the manner in which it performs the services required of it by the terms of this IGT AGREEMENT. Each party is entirely responsible for compensating staff, subcontractors, and consultants employed by that party. This IGT AGREEMENT shall not be construed as creating the relationship of employer and employee, or principal and agent, between PLAN and PROVIDER or any of either party’s employees, agents, consultants, or subcontractors. Each party assumes exclusively the responsibility for the acts of its employees, agents, consultants, or subcontractors as they relate to the services to be provided during the course and scope of their employment. Each party, its agents, employees, consultants, or subcontractors shall not be entitled to any rights or privileges of the other party’s employees and shall not be considered in any manner to be employees of the other party.

7. Term and Termination
The term of this IGT AGREEMENT shall commence on the Effective Date and, unless terminated earlier in accordance with this Section 7, will continue until the one-year anniversary of the Effective Date. Thereafter, this IGT AGREEMENT shall automatically renew for successive one-year terms, unless either party terminates this IGT AGREEMENT in accordance with this Section 7. Either party may immediately terminate this IGT AGREEMENT, by giving written notice of termination to the other Party, if (1) participation in the VRRP is no longer desired, or (2) DHCS discontinues VRRP. Notice of termination should be sent to the address set forth below.

8. Amendment
This IGT AGREEMENT may only be amended or modified in writing, executed by both Parties.

9. Notice
Any notice required or desired to be given pursuant to or in connection with this IGT AGREEMENT must be given in writing, addressed to the noticed party at the address set forth below. All notices provided under this IGT AGREEMENT shall be in writing, signed by an authorized signatory, and shall be deemed given upon receipt if sent as follows: (i) personally delivered; (ii) sent by registered U.S. mail, postage prepaid by sender, with confirmed delivery; (iii) sent by a commercial service with confirmed delivery; or (iv) sent by certified mail (return receipt requested). Any party may change its address for notice purposes by written notice to the other party.
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Plan-Provider Agreement City of Orange and Kaiser Foundation Health Plan, Inc.

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If to PLAN:

Kaiser Foundation Health Plan, Inc.

Attention: Kaycee Velarde
1 Kaiser Plaza, 25th Floor
Oakland, CA, 94612
Telephone: (626) 639-5374
Email: [email protected]; and
[email protected]
If to PROVIDER:

City of Orange
Attention: Bryan Johnson
300 E. Chapman Avenue
Orange, CA 92866
Telephone: (714) 288-2503
Email: [email protected]
[SIGNATURE PAGE FOLLOWS]
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Plan-Provider Agreement City of Orange and Kaiser Foundation Health Plan, Inc.

Page 7 of 7 ends

SIGNATURES
PLAN: Kaiser Foundation Health Plan, Inc.

By: ___________________________________________ Date________________ Mark A. Southworth
Executive Director, CA & HI Medicaid Finance
Kaiser Foundation Health Plan, Inc.

PROVIDER: City of Orange
By: Date:

Daniel R. Slater, Mayor
ATTEST:

Date:

Pamela Coleman, City Clerk
APPROVED AS TO FORM:

Date:

Nathalie Adourian
Senior Asstistant City Attorney
√
223
Agenda Item
City Council
Item #: 3.6. 6/24/2025 File #: 25-0336
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to agreement with Joseph C. Truxaw and Associates, Inc., a California corporation, for on-call surveyor services.

2. SUMMARY
This First Amendment will authorize Joseph C. Truxaw and Associates, Inc. to perform on-call surveyor services, increasing the original agreement amount of $29,500 by $30,500, for a total not to exceed amount of $60,000.

3. RECOMMENDED ACTION
Approve First Amendment to agreement with Joseph C. Truxaw and Associates, Inc., a California corporation, in the amount of $30,500 for on-call surveyor services; and authorize the Mayor and the City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
Fiscal impact to the City will be determined by the actual cost for each project on-call surveyor services. These costs will not impact the General Fund as alternate project funds will be used for this agreement.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The City of Orange entered into a professional services agreement with Joseph C. Truxaw and Associates, Inc. (Truxaw) for on-call surveyor services on July 8, 2024, in the amount of $29,500, under the City Manager’s authority. Truxaw’s total compensation has been exhausted, and this First Amendment authorizes an increase in the contract amount not to exceed $60,000. The total contract amount is based on the estimated cost on the number of projects pending that would require surveyor services, but payment will be made according to the actual cost for each project. The costs for this contract will be charged for various projects where the surveyor services are rendered. This expense will not impact the General Fund.

7. ATTACHMENTS
City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.6. 6/24/2025 File #: 25-0336
· First Amendment to Agreement
City of Orange Page 2 of 2 Printed on 6/19/2025
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Agenda Item
City Council
Item #: 3.6. 6/24/2025 File #: 25-0336
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Agreement with Joseph C. Truxaw and Associates, Inc., a California corporation, for on-call surveyor services.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

7. ATTACHMENTS
City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.6. 6/24/2025 File #: 25-0336
· First Amendment to Agreement
City of Orange Page 2 of 2 Printed on 6/19/2025
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FIRST AMENDMENT
TO

PROFESSIONAL SERVICES AGREEMENT
[On Call Surveyor 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 JOSEPH C. TRUXAW AND ASSOCIATES, INC., a California corporation (“Contractor”), with reference to the following:

A. City and Contractor entered into a Professional Services Agreement (Agreement No. 7000.C) dated as of July 8, 2024, 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 increased by THIRTY THOUSAND FIVE HUNDRED DOLLARS and 00/100 ($30,500.00) 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 SIXTY THOUSAND DOLLARS and 00/100 ($60,000.00) 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 Amendment 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.
228
IN WITNESS of this First Amendment, the parties enter into this First Amendment on the year and day first above written.
“CONTRACTOR” “CITY”
JOSEPH C. TRUXAW AND ASSOCIATES, CITY OF ORANGE, a municipal corporation INC., a California corporation
*By: By:

Printed Name: Daniel R. Slater, Mayor
Title:
*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk
APPROVED AS TO FORM:

Nathalie Adourian
Senior Assistant City Attorney
*NOTE: If Contractor is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.
√
229
230
Agenda Item
City Council
Item #: 3.7. 6/24/2025 File #: 25-0363
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to agreement with Common Area Maintenance Service, Inc., dba CAM Property Services, for sidewalk steam cleaning services.

2. SUMMARY
The initial agreement was for a three-year term, concluding on June 30, 2025. This agreement includes two optional one-year extensions, which can be exercised at the City Council's discretion.

Staff recommend exercising the first extension of the agreement for fiscal year 2026, with a total amount not to exceed $47,619.

3. RECOMMENDED ACTION
Approve the First Amendment for a one-year extension to the agreement with CAM Property Services in the amount of $47,619 for sidewalk cleaning services, which includes a 10% contingency for any unscheduled cleaning; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The expense for this amendment is $47,619 and will be funded through General Fund (100):
100.2001.51423.00000 - Maintenance Cont Buildings/Equipment $4,686.00 100.7022.51420.00000 - Maintenance Contracts $9,084.00
100.5022.51700.00000 - Contractual Services (Labor & Maintenance) $33,849.00

5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
In June 2022, Common Area Maintenance Service, Inc., dba CAM Property Services, was awarded an agreement for sidewalk steam cleaning services. The agreement, Agreement No. 7379, was for an initial three-year term in the amount of $255,578 and included provisions for two one-year extensions, each valued at $85,193. The current initial term is set to expire on June 30, 2025. This City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.7. 6/24/2025 File #: 25-0363
proposed action represents the first of the two optional extensions.

The scope of work includes steam cleaning at select locations throughout the Orange Plaza including Plaza Park, trash compactor enclosures in each quadrant, and metal trash receptacles located throughout the Plaza. The agreement also extends to areas designated under the City’s Outdoor Dining Permit Program, which through participant payments, funds approximately 25% of the agreement. Additional areas also included in the agreement are the City’s Main Library, the Train Depot, and Yorba Dog Park.

The amendment amount reflects adjusted service frequencies that align with budget reductions for Fiscal Year 2025. The base cost requested for the first year of the extension is $43,290. With the addition of 10% contingency ($4,329), the total not-to-exceed amount for this extension is $47,619.

7. ATTACHMENTS
· First Amendment to agreement with CAM Property Services City of Orange Page 2 of 2 Printed on 6/19/2025
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Agenda Item
City Council
Item #: 3.7. 6/24/2025 File #: 25-0363
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Agreement with Common Area Maintenance Service, Inc., dba CAM Property Services, for sidewalk steam cleaning services.

Staff recommend exercising the first extension of the agreement for fiscal year 2026, with a total amount not to exceed $47,619.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
In June 2022, Common Area Maintenance Service, Inc., dba CAM Property Services, was awarded an agreement for sidewalk steam cleaning services. The agreement, Agreement No. 7379, was for an initial three-year term in the amount of $255,578 and included provisions for two one-year extensions, each valued at $85,193. The current initial term is set to expire on June 30, 2025. This City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.7. 6/24/2025 File #: 25-0363
proposed action represents the first of the two optional extensions.

7. ATTACHMENTS
· First Amendment to agreement with CAM Property Services City of Orange Page 2 of 2 Printed on 6/19/2025
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FIRST AMENDMENT
TO

MAINTENANCE SERVICES AGREEMENT
[Maintenance Services for Steam Cleaning Services at Various Locations] THIS FIRST AMENDMENT TO MAINTENANCE SERVICES AGREEMENT (the “First Amendment to Contract”) is made and entered into as of ________________, 2025 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and COMMON AREA MAINTENANCE SERVICES. INC., a California corporation, dba CAM PROPERTY SERVICES (“Contractor”), with reference to the following.

A. City and Contractor entered into a Maintenance Services Agreement (Agreement No.7379) dated as of June 14, 2022, 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 extending the term and increasing the compensation.

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original 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. Term. Pursuant to Section 10.a of the Original Agreement, the City hereby extends the Term of this Agreement to reflect the First Extension Term, commencing on July 1, 2025, and terminating on June 30, 2026.

Section 4. Compensation. Section 10.a of the Original Agreement is hereby amended to increase the total not-to-exceed compensation for the services to be rendered by FORTYTHREE THOUSAND TWO HUNDRED NINETY DOLLARS and 00/100 ($43,290.00) and Sections 3.a and 3.c are hereby amended in their entirety to read as follows:
“a. Contractor agrees to receive and accept an amount not to exceed FORTYTHREE THOUSAND TWO HUNDRED NINETY DOLLARS and 00/100 ($43,290.00) as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by City, other than as provided below; (3) all risks of every description connected with the 235
2 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.” “c. The total amount of compensation under this Contract, including contingencies, shall not exceed FORTY-SEVEN THOUSAND SIX HUNDRED NINETEEN DOLLARS and 00/100 ($47,619.00).”
Section 5. 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 Amendment 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.
[Remainder of page intentionally left blank; signatures on next page] 236
IN WITNESS of this First Amendment, the parties enter into this First Amendment on the year and day fint above written.
..CONTRACTOR" *CITY"

COMMON AREA MAINTENANCE
SERVICES. INC., a California corporation,
Dba CAM PROPERTY SERVICES
CITY OF ORANGE, a municipal corporation
*By, By
Printed Name: Daniel R. Slater, Mayor
Title: g (.r.,,
ATTEST:

Pamela Coleman, Ciry Cterk
APPROVED AS TO FORM:

Nathalie Adourian
Senior Assistant City Attorney
*NOTE: If CONTRACTOR is a corporation, the Cig' requires the following signature(s):
(l) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Finoncial OfJicer, the Treusurer, an Assistant Secretory or an Assistant Treasurer. If only one corpo rte officer exists or one corporale fficer holds more than one corporate oflice, please so indicate. @ The corporate officer named in d corpordte resolution as authorited to enter into this Agreenent. A copy of the corporote resolution, certiJied hy the Secretary close in time to.lhe execution of the Agreenrcnt, must be provided to the City. \.
3 *By:

Printed Name:

Title:
237
EXHIBIT “A”

SUPPLEMENTAL SCOPE OF SERVICES
[Behind this page.]
238
Scooe of Work
Stprur Cleaning of City Hardscaped Arreas, Trash
Container:s, and Trash Enclosures
Steam cleaning/psn €r weqlfrg servioes:

Power, Wrrlfu/Steam Clerfu: Cotrac*or sbli provide fte srpervirion, watu, equipned, bols, labor, ad mtErials b sham oleadpower wash ilesignated lardscqre sno8s. lto sEam cloariog process sball r@ve grm, spills, dirt, spob, fu, vonig btoo4 oils, sd gtire ftm. fte desigmbd areas b lhe sctis&c'tim of lb City inspector. In 6s case oftard b ftrlove staim, fte Codaobr sball tse ao esvkoM[y smitivp sbin r@ver.

Ary ovaqnay odo pdvae properfi/sbre fiom cased by fte cleaning process md ary dehris (t&sb, cigare hib, pioc aeedles, eto,) wasbd iffi adjace* areas (sreet, parting areas, *) sball be rmveil pric b Leaviry 6e cleaaetl area. The mtracbr willbe rcspmiblo ftr dmaps t, $idswalh r€$rdtipg from crcessive walerpressrre, tsot or iryroper cleming techiques.

Tte cleadpg oftrash co&ircrs shall inolude sbao cloauing fre i&ic rd cxhrior offte iderfitrcd coffiiners. llash cilclosule oteadng wi[ iddo fto noving of tash birJg]Gaso coffiircrs b sllow fur fu sweepiog and disposal of tash md <ktris ad fu powor wa.shing b rmve dirl grire, and grease tom &o iderior aolosut floor, ittaio walls Etrd cierml coDcr€to pad
Fheoueder/Ihlg: Ths OLd Towao Plaza area willred b b€ stean clearEd weeldyor moffily as outlinstl io extibits A&8. Tfash ooolosuros willbe olearpd onco a nodh. Trash recapboles wi[be cleamd on a quarbdy baeis. Srrficos shll be olcared early Werhesday mrdng ad finisH no lahr ftan 4:00 AM To allow frr mititnrrn diuption b fte persom liviog and wortiag in the area- eec Exhibib frr specificiGrmatioo. Wort ghall not sffi ary earlierthn 12:30 AIVI Wednesday mdry in fu Plaza Area ard adjac€d stee6, to inolude tash rec€pholcs adl eoclosures. Exact tiffi Sr cleaoiry of ofter areas slall be reviewed aod approvedby tts CiE prior b stut Arrival and coryldion tinrs dnn be rEpoftdto lh€ $rabr D€partred 24 hour hotlino b€frre and aftr coryl*ion of wotk 6r mtificatioa purpoees.

Phobs mst bs hkea of tie areas ftat wero oleatrd ard submitbd to ftp City 15 (l) Old Towne Plaza lladscapes: publio sid€n alls, qurdrafr, rpoh stseeB (2) PlazaPart
(3) lvftin library wal*v'rays
(4) CivioCe Tmram Eudlwalhralar
(5) Plaza p$lic tuh cofrirers
(O Citytash€Doloflros
(7) DogPa*bardscape
(8) ftainDcpot

SCOPE OT'WORK
239
iupector, m labn - -n fto day following aay cioauing Ttr City my oleot to delete/cfrange service areas e'ul chmgo servioe teqmcie$ as eaossihEd by available firoding Gersral locatiors and rrers clerned: Below are tho geoeral looations by oabgory. Various oihibits provide oorc specitc locdioni6mirtion md rreasrremcG, (1) OkI Tosme Ptrza Err*capes
Sbam cleao aud pressrre washaU &o sid€walh hts Plaza, inoltding fte epole stoeb (Glassell and Chapmao), dlnirrg rears ad Plaza ryadranE as ddned on area Dsp, TxhlHt A" Freqtmoies aurl squore &otrgo frr eacih aroa als ebowtr on frtrftft E.
a)
(3) Mrhllbmrry Walkmyr
S&am oleaa and presure wash all lte Hishry Walk, budain moa" aod publio sidewalks sr:nounding fte lviain tibrary as dednod on fto Ubrary l\,{ry on Ertiffi C. (a) €hdcCeilerTerruzoQuadWa&myr
Steam clom aod preenre wash fu Terraa, quad ad waltn ays at City IIaII as defid m6e Civic Ceoier Irrhp on Erhlbfr D.
(5) PlazaPuMc. Ilarh Codahon
Steam clean &e publio tash oominors wifrin tto Ptara Pad(, Bpotp sb€6b, and plaza quadrads asshowa ooHffi f,-
(O Cby Trrrh Coryactorr
Rmve aad dispose of ddfis f,,i&in tasUgrease eoolosures d power wash6e ifrrior aad exhnio grouod d walq irchdiry fu concr& slab. Tb locations of tb existing eoologures are showl on &ffi F.
(D DogPortEor*cqe
Steam cleaa aod pressrro wa$ atl paved areas, focdgato poslb, aod corners of 6s buildiag ard botbor two (2) foot ofbuitding walls as stowr oo Erhihi+ G. (8) IlrhDepot
Sbam olean aod proesue wash alt mmeE paviry aress aod ddswalb, Tkah Deot lmdiry, tpper aad lowabridge crossings, RcstuEart durysH pa4 a'rr bus sop pe p mne asebwn oa kldffi E
E,hMROIIMEIYTAI REQUIREMENTS
Plaza Park
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Agenda Item
City Council
Item #: 3.8. 6/24/2025 File #: 25-0158
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Adam Jevec, Chief of Police

1. SUBJECT
Appropriation of $114,632.54 in designated Public Safety Realignment/Assembly Bill 109 funding received from the County of Orange.

2. SUMMARY
Appropriation of $114,632.54 in funding from the County of Orange to assist the Orange County Probation Department with case management of adult felon offenders during Fiscal Year 2024-2025.

3. RECOMMENDED ACTION

1. Accept into the City’s General Fund (100) revenue budget a $114,632.54 deposit from the County of Orange to:
100.4031.45495.20159 Other Grant Revenue - Post Release Community Supervision

2. Authorize the appropriation of $114,632.54 into General Fund (100):
100.4031.50221.20159 Overtime - Post Release Community Supervision

4. FISCAL IMPACT
There is no direct fiscal impact to the City. The additional revenue received from the County of Orange will fund the expense for this program.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

6. DISCUSSION AND BACKGROUND
In 2011, the Public Safety Realignment Act/Assembly Bill 109 (AB109) transferred the responsibility for managing and supervising adult felon offenders from the California Department of Corrections and Rehabilitation to each county under the Post Release Community Supervision (PRCS) program.

AB109 helps mitigate the impact of longer sentences and is an alternative frequently used to transition inmates back into the community. Inmates eligible for release to local jurisdictions for supervision under PRCS must be:
· Currently incarcerated for non-violent and non-serious offenses · Released on parole and non-revocable parole
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Item #: 3.8. 6/24/2025 File #: 25-0158
· Are not high-risk sex offenders
The Police Department is working closely with Orange County Probation to help manage these offenders by conducting scheduled sweeps. The allocation amount of $114,632.54 to the City of Orange Police Department provides funding for public safety services during Fiscal Year 2024-2025.

7. ATTACHMENTS
· None
City of Orange Page 2 of 2 Printed on 6/19/2025
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Agenda Item
City Council
Item #: 3.8. 6/24/2025 File #: 25-0158
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Adam Jevec, Chief of Police

1. SUBJECT
Appropriation of $114,632.54 in designated Public Safety Realignment/Assembly Bill 109 funding received from the County of Orange.

3. RECOMMENDED ACTION

1. Accept into the City’s General Fund (100) revenue budget a $114,632.54 deposit from the County of Orange to:
100.4031.45495.20159 Other Grant Revenue - Post Release Community Supervision

2. Authorize the appropriation of $114,632.54 into General Fund (100):
100.4031.50221.20159 Overtime - Post Release Community Supervision

4. FISCAL IMPACT
There is no direct fiscal impact to the City. The additional revenue received from the County of Orange will fund the expense for this program.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services

AB109 helps mitigate the impact of longer sentences and is an alternative frequently used to transition inmates back into the community. Inmates eligible for release to local jurisdictions for supervision under PRCS must be:
· Currently incarcerated for non-violent and non-serious offenses · Released on parole and non-revocable parole
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Item #: 3.8. 6/24/2025 File #: 25-0158
· Are not high-risk sex offenders
The Police Department is working closely with Orange County Probation to help manage these offenders by conducting scheduled sweeps. The allocation amount of $114,632.54 to the City of Orange Police Department provides funding for public safety services during Fiscal Year 2024-2025.

7. ATTACHMENTS
· None
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Agenda Item
City Council
Item #: 3.9. 6/24/2025 File #: 25-0346
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community and Library Services Director

1. SUBJECT
Acceptance of $159,470.52 in revenue received from the Recreation class program and 2024 Special Events donations; and appropriation of $51,196.88 of the revenue to support corresponding programs.

2. SUMMARY
Collected revenues of $159,470.52 are recommended to be accepted for Fiscal Year 2024-2025, including payments for contract class instructors for the City’s Recreation class program and donations for the 2024 Special Events. Staff is recommending the City Council appropriate a total of $51,196.88 of this revenue into expenditure accounts to support the corresponding programs.

3. RECOMMENDED ACTION

2. Authorize the appropriation of $ 51,196.88 to the General Fund:
100.7011.51670.00000 Other Prof & Consulting Services $ 51,196.88

4. FISCAL IMPACT
The revenue received from these programs will offset or fund the costs of programs, projects, and services.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability

6. DISCUSSION AND BACKGROUND
Recreation Class Program Revenue
The City offers recreational classes to the community through quarterly sessions conducted by contract instructors. Each contract instructor sets their class rates and agrees to a revenue sharing model (percentage split), wherein the City retains a portion of the revenue generated by class registration. Contract Class instructors are paid their revenue share through the General Fund (100) after the quarter is completed.

Staff periodically request that the City Council accept unbudgeted revenue generated through the City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.9. 6/24/2025 File #: 25-0346
Staff periodically request that the City Council accept unbudgeted revenue generated through the Recreation class program into the budget and appropriate a percentage of that revenue into the expenditure budget to pay the contract class instructors. This allows the City to use program revenue to pay the contract class instructors, better linking the revenue to the corresponding expenditure and minimally impacting the existing General Fund (100) balance.

The second and third quarters of contract classes encompass the months of October, November, December, January, February and March. The revenue received in quarters two and three of Fiscal Year 2024-2025 (FY25) was $73,138.40. Staff is requesting that this revenue be accepted into the City’s FY25 budget. Additionally, staff is requesting 70% or ($51,196.88) of the revenue be appropriated into the corresponding expenditure account to compensate the instructors for the applicable quarters.

Special Event Donations
The Community Foundation of Orange (CFO) previously took on the role of accepting donations for the 2024 Tree Lighting and Candlelight Choir Procession event on behalf of the Orange Community Master Chorale. The CFO made a series of progress payments to the City for the cost of the event, which need to be appropriated as revenue. Therefore, staff is requesting a total of $86,332.12 be accepted as revenue and appropriated into the corresponding Reimbursable (105) expenditure account. This is in addition to the prior $19,610.00 payment received and appropriated.

7. ATTACHMENTS
· None
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Agenda Item
City Council
Item #: 3.9. 6/24/2025 File #: 25-0346
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Leslie Hardy, Community and Library Services Director

3. RECOMMENDED ACTION

2. Authorize the appropriation of $ 51,196.88 to the General Fund:
100.7011.51670.00000 Other Prof & Consulting Services $ 51,196.88

4. FISCAL IMPACT
The revenue received from these programs will offset or fund the costs of programs, projects, and services.

5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability

Staff periodically request that the City Council accept unbudgeted revenue generated through the City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.9. 6/24/2025 File #: 25-0346
Staff periodically request that the City Council accept unbudgeted revenue generated through the Recreation class program into the budget and appropriate a percentage of that revenue into the expenditure budget to pay the contract class instructors. This allows the City to use program revenue to pay the contract class instructors, better linking the revenue to the corresponding expenditure and minimally impacting the existing General Fund (100) balance.

7. ATTACHMENTS
· None
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Agenda Item
City Council
Item #: 3.10. 6/24/2025 File #: 25-0300
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 Onyx Paving Company, Inc. for Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025; Bid No. 24-25.09.

2. SUMMARY
Bids for Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025 were received and opened on May 15, 2025. Six bidders responded to the notice inviting bids. The apparent low bidder is Onyx Paving Company Inc. of Anaheim, California in the amount of $4,757,000.

3. RECOMMENDED ACTION
Approve the contract with Onyx Paving Company, Inc. in the amount of $5,946,250 representing an original amount of $4,757,000 plus a 25% contingency of $1,189,250 for Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The expense for this contract is $5,946,250 and will be funded through Measure M2 (263), Gas Tax Maintenance (270), Capital Projects (500), and RMRA Road Maintenance Rehabilitation Account (274) respectively:
263.5011.56330.13120 Pavement Management Program $864,036 270.5011.56330.13120 Streets $250,000
500.5011.56330.13120 Pavement Management Program $1,432,214 274.5011.56330.13120 Pavement Management Program $3,400,000 Total: $5,946,250

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025 is part of the City’s Pavement Management Program FY25 (13120) activities and is designed to prolong the pavement life of city streets.

This asphalt concrete overlay project will rehabilitate approximately two arterial streets, one industrial City of Orange Page 1 of 2 Printed on 6/19/2025
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Item #: 3.10. 6/24/2025 File #: 25-0300
This asphalt concrete overlay project will rehabilitate approximately two arterial streets, one industrial street, and 12 residential areas throughout the city. The streets selected for maintenance are in accordance with our Pavement Management Plan and generally fall into the “poor to fair” category.

These streets require work at this time to prevent total pavement failure, which will result in complete reconstruction at a much higher future cost. Additionally, this project will replace over 3,000 linear feet of curb with curb and gutter, enhancing stormwater surface flow to reduce pooling and erosion while extending pavement life through improved drainage.

The City Council previously approved an advertisement for bids on February 25, 2025. The bid solicitation was advertised on April 24, 2025, for a period of three weeks and bids were opened on May 15, 2025. Six bids were received as follows:

1. Onyx Paving Company, Inc., Anaheim $4,757,000

2. R.J. Noble Company, Orange $4,959,225

3. Palp, Inc. Dba Excel Paving, Long Beach $5,298,940

4. Sequel Contractors, Santa Fe Springs $5,474,550

5. All American Asphalt, Corona $5,564,564

6. Hardy & Harper, Inc., Lake Forest $5,615,500
The low bid is approximately 13% lower than the Engineer’s Estimate of $5,485,525. Due to the favorable bid price, staff has tentatively identified Almond Avenue from Main Street to Cypress Street as an additional residential street to be rehabilitated for an additional estimated cost of $800,000.

This cost is a component of the requested 25% contingency, with approximately $389,250 remaining for construction management and other unanticipated costs.

Staff checked the references and qualifications of Onyx Paving Company, Inc. and found them to be acceptable, with adequate years of experience in completing contracts of similar nature to this project. Therefore, staff recommend Onyx Paving Company, Inc. be awarded the contract in the amount of $5,946,250, representing an original bid amount of $4,757,000 plus a 25% contingency of $1,189,250 for Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025.

Construction is scheduled to begin in July 2025 and is expected to be completed by November 2025.

7. ATTACHMENTS
· Contract with Onyx Paving Company, Inc.
· Bid Abstract
· Location Maps
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Agenda Item
City Council
Item #: 3.10. 6/24/2025 File #: 25-0300
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 Onyx Paving Company, Inc. for Annual Pavement Maintenance at Various Locations, Fiscal Year 2024-2025; Bid No. 24-25.09.

5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

This asphalt concrete overlay project will rehabilitate approximately two arterial streets, one industrial City of Orange Page 1 of 2 Printed on 6/19/2025
powered by Legistar™251
Item #: 3.10. 6/24/2025 File #: 25-0300
This asphalt concrete overlay project will rehabilitate approximately two arterial streets, one industrial street, and 12 residential areas throughout the city. The streets selected for maintenance are in accordance with our Pavement Management Plan and generally fall into the “poor to fair” category.

1. Onyx Paving Company, Inc., Anaheim $4,757,000

2. R.J. Noble Company, Orange $4,959,225

3. Palp, Inc. Dba Excel Paving, Long Beach $5,298,940

4. Sequel Contractors, Santa Fe Springs $5,474,550

5. All American Asphalt, Corona $5,564,564

This cost is a component of the requested 25% contingency, with approximately $389,250 remaining for construction management and other unanticipated costs.

Construction is scheduled to begin in July 2025 and is expected to be completed by November 2025.

7. ATTACHMENTS
· Contract with Onyx Paving Company, Inc.
· Bid Abstract
· Location Maps
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CONTRACT
[Annual Pavement Maintenance at Various Locations FY 2024-2025] (Bid No. 24-25.09; SP-4291)
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 ONYX PAVING COMPANY, 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 Annual Pavement Maintenance at Various Locations (SP-4291) approved by the “Engineer” (as defined herein below) on April 22, 2025, and consisting of sheets numbered 1 through 32, 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 “City of Orange Standard Special Provisions;”
(5) The Standard Plans; and
(6) 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 253
2 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.
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, and 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 ninety (90) calendar days from such date, unless legal extension is granted in 254
3 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 MILLION SEVEN HUNDRED FIFTY-SEVEN THOUSAND DOLLARS and 00/100 ($4,757,000) 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 ONE MILLION ONE HUNDRED EIGHTY-NINE THOUSAND TWO HUNDRED FIFTY DOLLARS and 00/100 ($1,189,250) has been added to the total compensation of this Contract. The Authorized City Representative may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as the Authorized City Representative and the Contractor may agree upon in advance. Said additional work or services and the amount of compensation therefor, up to the amount of the authorized contingency, shall be memorialized in the form of a Contract Amendment approved by the City Manager on a form acceptable to the City Attorney. The Contractor agrees to perform only that work or those services that are specifically requested by the Authorized City Representative. Any and all additional work and services performed under this Contract shall be completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate or proposal submitted to and approved by the Authorized City Representative prior to the commencement of such Work or services.
c. The total amount of compensation under this Contract, including contingencies, shall not exceed FIVE MILLION NINE HUNDRED FORTY-SIX THOUSAND TWO HUNDRED FIFTY DOLLARS and 00/100 ($5,946,250).

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 255
4 Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.

ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract. b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any part thereof fail to function properly, as designed, due to any of the above causes within twelve (12) months after the date on which said Work is accepted by City, Contractor shall make repairs and furnish such materials and equipment as are necessary to be furnished and installed within fifteen (15) calendar days after the receipt of a demand from City.
c. Said Work will be deemed defective within the meaning of this guarantee in the event that it fails to function as originally intended either by the Plans and Specifications of this Contract or by the manufacturer(s) of the equipment incorporated into the Work. d. In the event repairs are not made within fifteen (15) calendar days after Contractor's receipt of a demand from City, City shall have the unqualified option to make any needed repairs or replacements itself or by any other contractor. Contractor shall reimburse City, upon demand, for all expenses incurred in restoring said Work to the condition contemplated in this Contract, including the cost of any equipment or materials replaced. e. It is understood that emergency repairs may, by necessity, be made by City.

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

ARTICLE 6
Water Quality
a. The Santa Ana Regional Water Quality Control Board (“RWQCB”) has issued National Pollutant Discharge Elimination System (“NPDES”) Permit No. R8-2009-0030 (the “Permit”), which governs storm water and non-storm water discharges resulting from municipal activities performed by City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Drainage Area Management Plan (“DAMP”), containing Model Maintenance Procedures with Best Management Practices (“BMPs”) that City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry-weather urban runoff, storm water runoff, and receiving water quality. Examples include: wash water from 256
5 cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.
b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the office of City’s Director of Public Works. Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they relate to the Work and hereby shall perform the Work in conformance therewith.

ARTICLE 7
Independent Contractor; Contractor not Agent
a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this Contract. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Contract. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.
b. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

ARTICLE 8
Public Work; Prevailing Wage
a. The Work which is the subject of this Contract is a “public work,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.

To the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor under it, shall pay not less than the specified prevailing rates of wages to all such workers. The 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.
257
6 b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed and understands those provisions of the Labor Code and shall prosecute and complete the Work under this Contract in strict compliance with all of those terms and provisions. c. Contractor shall secure the payment of compensation to its employees in accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
d. Contractor shall indemnify, protect, defend and hold harmless City and its officers, employees, contractors and agents, with counsel reasonably acceptable to City, from and against any and all loss, liability, damage, claim, cost, expense, and/or “increased costs” (including reasonable attorney’s fees, court and litigation costs, and fees of expert witnesses) which result or arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that, in connection with the construction of the Work which is the subject of this Contract, Contractor shall bear all risks of payment or non-payment of state prevailing wages. “Increased costs” as used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time. The foregoing indemnity shall survive termination of this Contract.

ARTICLE 9
Equal Employment Opportunity
During the performance of this Contract, Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms 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.
258
7 b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

ARTICLE 10
Conflicts of Interest
Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the builder for any project for which the design work is part of this Contract.

ARTICLE 11
Indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials, agents, and employees from and against:
a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses (including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain or suffer arising from or as a result of the death of any person or any accident, injury, loss or damage whatsoever caused to any person or the property of any person which shall occur on or adjacent to the real property which is the subject of this Contract, or in connection with performance of this Contract which may be directly or indirectly caused by the acts or omissions of Contractor or its officers, employees, contractors or agents, or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract. b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.

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 259
8 with the performance of the Work hereunder and the results of that Work by Contractor, its agents, representatives, employees or subcontractors. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Contract.
b. Contractor shall maintain the following minimum amount of insurance: the greater of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits carried by or available to Contractor.
(1) General Liability $2,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.
(2) Automobile Liability $1,000,000 per accident for bodily injury and property damage.
(3) Workers’ Compensation as required by the State of California. (4) Employer’s Liability $1,000,000 per accident for bodily injury or disease. c. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of Contractor under this Contract. d. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or selfinsured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:
(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 260
9 of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall apply to City as an additional insured.
(2) For any claims related to this Contract, Contractor’s insurance coverage shall be primary insurance with respect to City, its officers, officials, agents and employees. Any insurance or self-insurance maintained by City, its officers, officials, agents and employees shall be excess of Contractor’s insurance and shall not contribute with it. (3) Coverage shall not be canceled, except after thirty (30) days’ prior written notice has been provided to City.
f. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Article 12. The endorsements shall be on forms acceptable to City. All certificates and endorsements are to be received and approved by City before the Work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
g. All insurance procured and maintained by Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. h. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Contract unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom by way of set-off from any sums owed Contractor. i. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor shall obtain any other endorsement that may be necessary to effect this waiver of subrogation. j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.

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. 261
10 Upon receipt of notice, Contractor shall immediately cease work, unless the notice provides otherwise. Should City terminate this Contract, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Contract, unless such termination shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.

ARTICLE 14
Maintenance and Inspection of Records
In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Contract. During the term of this Contract and for a period of three (3) years after termination or completion of this Contract, City shall have the right to inspect and/or audit Contractor's records pertaining to the performance of this Contract at Contractor's office. Contractor shall make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.

ARTICLE 15
Compliance with Laws
a. Contractor shall be knowledgeable of and comply with all local, state and federal laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by Contractor or any subcontractor hereunder.
b. Contractor represents and warrants that it:
(1) Has complied and shall at all times during the term of this Contract comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and (2) Has not and will not knowingly employ any individual to perform services under this Contract who is ineligible to work in the United States or under the terms of this Contract; and
(3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I-9 for each of Contractor’s employees; and
(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. 262
11 c. Contractor shall require all subcontractors and/or subconsultants to make the same representations and warranties required by this Article 15 when hired to perform services under this Contract.
d. Contractor shall, upon request of City, provide a list of all employees working under this Contract and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Contract without written notice to City, accompanied by the verification required herein for such employees. Contractor shall require all subcontractors and/or sub-consultants to make the same verification when hired to perform services under this Contract. e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee providing Work under this Contract who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee, such shall constitute a material breach of this Contract and may be cause for immediate termination of this Contract by City.
f. Contractor shall indemnify and hold City, its officials and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of Contractor’s failure to comply with said laws, rules and regulations in connection with the performance of this Contract.

ARTICLE 16
Governing Law and Venue
This Contract shall be construed in accordance with and governed by the laws of the State of California and Contractor shall submit to the jurisdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California.

ARTICLE 17
Integration and Amendment
a. This Contract constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the Work to be performed under this Contract shall be of any force or effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent with or in violation of the provisions of this Contract shall not be compensated. b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.

ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party 263
12 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”
Onyx Paving Company, Inc. City of Orange
2890 E La Cresta Ave. 300 E. Chapman Avenue
Anaheim, CA 92806 Orange, CA 92866-1591
Attn: Corey R. Kirschner Attn: Randy Nguyen
Telephone: 714-632-6699 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. [Remainder of page intentionally left blank; signatures on next page] 264
13 “CITY”

CONTRACT, BONDS AND INSURANCE
APPROVED BY:

Nathalie Adourian
Senior Assistant City Attorney
CITY OF ORANGE, a municipal corporation
By:

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

Pamela Coleman, City Clerk
“CONTRACTOR”
ONYX PAVING COMPANY, INC.,
a California corporation
[Note: Signature of Chairman of the By:

Board, President or Vice President is Printed Name:
required] Title:
[Note: Signature of Secretary, Assistant By:

Secretary, Chief Financial Officer or Printed Name:

Assistant Treasurer is also required] Title:
√
265
266
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ATTACHMENT NO. 1

CALIFORNIA LABOR CODE
SECTIONS 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 Section 1725.5. Registration of contractors; mandatory registration; qualifications and application; fees; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract that is subject to the requirements of this chapter. For the purposes of this section, “contractor” includes a subcontractor as defined by Section 1722.1. (a) To qualify for registration under this section, a contractor shall do all of the following:
(1)(A) Register with the Department of Industrial Relations in the manner prescribed by the department and pay an initial nonrefundable application fee of four hundred dollars ($400) to qualify for registration under this section and an annual renewal fee on or before July 1 of each year thereafter. The annual renewal fee shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration and renewal fees may be adjusted no more than annually by the director to support the costs specified in Section 1771.3. (B) Beginning June 1, 2019, a contractor may register or renew according to this subdivision in annual increments up to three years from the date of registration. Contractors who wish to do so will be required to prepay the applicable nonrefundable application or renewal fees to qualify for the number of years for which they wish to preregister.
(2) Provide evidence, disclosures, or releases as are necessary to establish all of the following:
(A) Workers' compensation coverage that meets the requirements of Division 4 (commencing with Section 3200) and includes sufficient coverage for any worker whom the contractor employs to perform work that is subject to prevailing wage requirements other than a contractor who is separately registered under this section.

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

Section 1771. Payment of general prevailing rate
Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.

This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work. 268
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Section 1771.1. Registration as a contractor or subcontractor required prior to bid submission; exceptions; violations; penalties
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a) shall be included in all bid invitations and public works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5. (c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5 in place of the unregistered subcontractor.
(e) The department shall maintain on its Internet Web site a list of contractors who are currently registered to perform public work pursuant to Section 1725.5.
(f) A contract entered into with any contractor or subcontractor in violation of subdivision (a) shall be subject to cancellation, provided that a contract for public work shall not be unlawful, void, or voidable solely due to the failure of the awarding body, contractor, or any subcontractor to comply with the requirements of Section 1725.5 or this section.
(g) If the Labor Commissioner or his or her designee determines that a contractor or subcontractor engaged in the performance of any public work contract without having been registered in accordance with this section, the contractor or subcontractor shall forfeit, as a civil penalty to the state, one hundred dollars ($100) for each day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of eight thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (h)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher tiered public works contractor or subcontractor who is found to have entered into a subcontract with an unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section 1725.5 or this section shall be subject to forfeiture, as a civil penalty to the state, of one hundred dollars ($100) 269
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for each day the unregistered lower tier subcontractor performs work in violation of the registration requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000). (2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and may waive the penalty for a first time violation that was unintentional and did not hinder the Labor Commissioner's ability to monitor and enforce compliance with the requirements of this chapter. (3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section 1725.5 due to the revocation of a previously approved registration. (4) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works contractor or subcontractor pursuant to paragraph (1). A higher tiered public works contractor or subcontractor may not require a lower tiered subcontractor to indemnify or otherwise be liable for any penalties pursuant to paragraph (1).
(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) and subparagraph (B) of paragraph (1) of subdivision (h). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742. The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770), shall apply. (j)(1) Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of Section 1725.5 or this section, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public work.
(2) A stop order may be personally served upon the contractor or subcontractor by either of the following methods:
(A) Manual delivery of the order to the contractor or subcontractor personally. (B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public work and by thereafter mailing copies of the order by first class mail, postage prepaid to the contractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 270
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(4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage rate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed 10 days.
(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both.
(l) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for public work entered into on or after April 1, 2015. This section shall also apply to the performance of any public work, as defined in this chapter, on or after January 1, 2018, regardless of when the contract for public work was entered.
(m) Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (n) This section shall not apply to work performed on a public works project of twenty-five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771.4. Additional requirements when bidding and awarding public works contracts (a) All of the following are applicable to all public works projects that are otherwise subject to the requirements of this chapter:
(1) The call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. (2) The awarding body shall post or require the prime contractor to post job site notices, as prescribed by regulation.
(3) Each contractor and subcontractor shall furnish the records specified in Section 1776 directly to the Labor Commissioner, in the following manner:
(A) At least monthly or more frequently if specified in the contract with the awarding body. (B) In a format prescribed by the Labor Commissioner.
(4) If the contractor or subcontractor is not registered pursuant to Section 1725.5 and is performing work on a project for which registration is not required because of subdivision (f) of Section 1725.5, the unregistered contractor or subcontractor is not required to furnish the records specified in Section 1776 directly to the Labor Commissioner but shall retain the records specified in Section 1776for at least three years after completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
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(b) The Labor Commissioner may exempt a public works project from compliance with all or part of the requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of Section 1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing work on the project and that includes a mechanism for resolving disputes about the payment of wages. (c) The requirements of paragraph (1) of subdivision (a) shall only apply to contracts for public works projects awarded on or after January 1, 2015.
(d) The requirements of paragraph (3) of subdivision (a) shall apply to all contracts for public work, whether new or ongoing, on or after January 1, 2016.

Section 1775. Penalties for violations
(a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor.
(2)(A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following:
(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.
(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.
(B)(i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor 272
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or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the performance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.

Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules (a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project. 273
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(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.

The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labormanagement committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 274
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(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.

Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program (a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or undergo testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written 275
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apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o).
(e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.

The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentices would be employed. A copy of this information shall also be submitted to the awarding body, if requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a subcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 276
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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1-to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002-03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Industrial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
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(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used solely for training apprentices. For purposes of this subparagraph, adequate records include, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to receive any future grant pursuant to this subdivision and the Department of Industrial Relations may initiate the process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under the terms and conditions prescribed by the director.

Section 1813. Forfeiture for violations; contract stipulation; report of violations The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit twenty- five dollars ($25) for each worker employed in the execution of 278
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the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract, and shall report them to the Division of Labor Standards Enforcement.

Section 1815. Overtime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1 ½ times the basic rate of pay.
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ATTACHMENT NO. 2
CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204
Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017) (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 280
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(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 281
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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 282
1 2 3 4 5 6
Bid No. 24-25.09; Project No. SP-4291
Date of Bid Opening: 5/15/2025
Tel. No. (714) 632-6699 Tel. No. (714) 637-1550 Tel. No. (562) 599-5841 Tel. No. (562) 802-7227 Tel. No. (951) 736-7600 Tel. No. (714) 444-1851 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 2" Cold Plane Existing AC Pavement -
Residential SY 5.00 105,000 $ $525,000.00 $3.25 $341,250.00 $2.80 $294,000.00 $3.20 $336,000.00 $3.40 $357,000.00 $3.80 $399,000.00 $3.80 $399,000.00 2 Remove Asphalt Concrete/Subgrade
(Residential 4" Unclassified Excavation) CY 180.00 300 $ $54,000.00 $211.00 $63,300.00 $230.00 $69,000.00 $123.00 $36,900.00 $150.00 $45,000.00 $320.00 $96,000.00 $255.00 $76,500.00 3 Asphalt Concrete Pavement - Residential
Base Course TON 185.00 600 $ $111,000.00 $206.00 $123,600.00 $155.00 $93,000.00 $142.00 $85,200.00 $320.00 $192,000.00 $195.00 $117,000.00 $300.00 $180,000.00 4 Asphalt Rubberized Hot Mix (ARHM) -
Residential Surface Course (1/2" Class

ARHM-GG-C)
TON 140.00 13,000 $ $1,820,000.00 $133.00 $1,729,000.00 $142.00 $1,846,000.00 $134.00 $1,742,000.00 $145.00 $1,885,000.00 $148.00 $1,924,000.00 $138.00 $1,794,000.00 5 Cold Plane Existing AC Pavement -
Arterial (Depth Per Plan) SY 5.00 33,000 $ $165,000.00 $2.80 $92,400.00 $3.00 $99,000.00 $3.20 $105,600.00 $3.40 $112,200.00 $4.90 $161,700.00 $3.80 $125,400.00 6 Remove Asphalt Concrete/Subgrade
(Arterial 8" Unclassified Excavation) CY 165.00 245 $ $40,425.00 $160.00 $39,200.00 $190.00 $46,550.00 $120.00 $29,400.00 $150.00 $36,750.00 $215.00 $52,675.00 $200.00 $49,000.00 7 Asphalt Concrete Pavement - Arterial
Base Course TON 160.00 510 $ $81,600.00 $167.00 $85,170.00 $145.00 $73,950.00 $134.00 $68,340.00 $320.00 $163,200.00 $153.00 $78,030.00 $175.00 $89,250.00 8 Asphalt Rubberized Hot Mix (ARHM) -
Arterial Surface Course (3/4" Class ARHMGG-B)
TON 145.00 4,000 $ $580,000.00 $133.00 $532,000.00 $142.00 $568,000.00 $135.00 $540,000.00 $145.00 $580,000.00 $140.00 $560,000.00 $145.00 $580,000.00 9 Adjust/Remove & Replace Water Valve
Box per OWD Std. No. 101 EA 1,300.00 216 $ $280,800.00 $1,400.00 $302,400.00 $1,100.00 $237,600.00 $1,400.00 $302,400.00 $1,400.00 $302,400.00 $1,350.00 $291,600.00 $1,600.00 $345,600.00 10 Adjust Manhole Frame & Cover to Grade
per City Std. No. 408 EA 1,300.00 153 $ $198,900.00 $1,400.00 $214,200.00 $950.00 $145,350.00 $1,400.00 $214,200.00 $1,500.00 $229,500.00 $1,350.00 $206,550.00 $1,300.00 $198,900.00 11 Provide & Install Type “E” Detector Loops
EA 550.00 50 $ $27,500.00 $425.00 $21,250.00 $425.00 $21,250.00 $410.00 $20,500.00 $450.00 $22,500.00 $405.00 $20,250.00 $425.00 $21,250.00 12 Remove and replace existing manhole
frame and cover, adjust manhole to
grade construct concrete collar per City
Std 407 and 408 (D)
EA 2,000.00 10 $ $20,000.00 $2,300.00 $23,000.00 $1,900.00 $19,000.00 $2,200.00 $22,000.00 $2,500.00 $25,000.00 $2,150.00 $21,500.00 $1,600.00 $16,000.00 13 Horizontally Saw-Cut Curb, Or Remove
Existing Curb And Sidewalk Access
Ramp, And Construct New Ramp Per
City Std. Plan No. 121 With Detectable
Warning Surface (Truncated Dome 4' X
3')
EA 7,500.00 33 $ $247,500.00 $6,400.00 $211,200.00 $5,400.00 $178,200.00 $7,000.00 $231,000.00 $7,000.00 $231,000.00 $9,200.00 $303,600.00 $7,000.00 $231,000.00 14 Install Detectable Warning Surface
(Truncated Dome 4' X 3') per City Std.

Plan No. 121 on existing curb ramp EA 1,600.00 3 $ $4,800.00 $800.00 $2,400.00 $775.00 $2,325.00 $2,000.00 $6,000.00 $1,000.00 $3,000.00 $1,000.00 $3,000.00 $3,000.00 $9,000.00 15 Sawcut & Remove Existing and Construct
Residential Concrete Curb and Gutter,
Type A per City Std. Plan No. 117 (8" or
Match Existing Curb Height)
LF 80.00 3,400 $ $272,000.00 $69.00 $234,600.00 $87.00 $295,800.00 $98.00 $333,200.00 $100.00 $340,000.00 $78.00 $265,200.00 $95.00 $323,000.00 16 Sawcut & Remove Existing and Construct
Arterial Concrete Curb and Gutter, Type
A per City Std. Plan No. 117 (8" or Match
Existing Curb Height)
LF 85.00 700 $ $59,500.00 $73.00 $51,100.00 $87.00 $60,900.00 $110.00 $77,000.00 $100.00 $70,000.00 $78.00 $54,600.00 $95.00 $66,500.00 17 Remove Existing and Construct
Concrete Cross Gutter and Spandrel
per City Std. Plan No. 119 SF 40.00 9,000 $ $360,000.00 $21.40 $192,600.00 $24.00 $216,000.00 $28.00 $252,000.00 $25.00 $225,000.00 $24.00 $216,000.00 $34.00 $306,000.00 18 Remove And Construct Concrete
Driveway Per City Std. Plan No. 114, 115,
And 116a (D) SF 30.00 400 $ $12,000.00 $14.40 $5,760.00 $15.00 $6,000.00 $24.00 $9,600.00 $20.00 $8,000.00 $24.00 $9,600.00 $35.00 $14,000.00 19 Remove Existing and Construct
Residential Concrete Sidewalk per City
Std. Plan No. 118 & 120
SF 20.00 2,500 $ $50,000.00 $9.50 $23,750.00 $10.50 $26,250.00 $17.00 $42,500.00 $16.00 $40,000.00 $14.00 $35,000.00 $16.00 $40,000.00 20 Remove Existing and Construct Arterial
Concrete Sidewalk per City Std. Plan No.
118 & 120 SF 25.00 100 $ $2,500.00 $11.00 $1,100.00 $10.50 $1,050.00 $21.00 $2,100.00 $20.00 $2,000.00 $20.00 $2,000.00 $25.00 $2,500.00 21 Tree and Stump Removal (D) 5 EA $ 3,500.00 $17,500.00 $5,200.00 $26,000.00 $5,000.00 $25,000.00 $5,200.00 $26,000.00 $5,000.00 $25,000.00 $5,000.00 $25,000.00 $6,000.00 $30,000.00 22 Install 24"x36" Grate Inlet Catch Basin
(Jensen Precast model DI243636 or
Approved Equal) and Connect to Ex. 24"
CMP.

EA 15,000.00 1 $ $15,000.00 $20,000.00 $20,000.00 $16,000.00 $16,000.00 $14,000.00 $14,000.00 $25,000.00 $25,000.00 $2,600.00 $2,600.00 $15,000.00 $15,000.00 23 Install 12" Square Atrium Area Drain
Grate (NDC Part No. 1280 or Approved
Equal) and Connect to Proposed Grate
Inlet Catch Basin with 6" PVC (Schedule
40) Area Drain Pipe.

EA 500.00 1 $ $500.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $6,000.00 $6,000.00 $15,000.00 $15,000.00 $18,200.00 $18,200.00 $3,000.00 $3,000.00 24 Install Traffic Signing & Striping,
pavement markings (legends), and Raised
Pavement Markers (RPM's) for Arterial
Streets per City's Plan and MUTCD
LS 60,000.00 1 $ $60,000.00 $52,400.00 $52,400.00 $50,000.00 $50,000.00 $29,000.00 $29,000.00 $70,000.00 $70,000.00 $28,600.00 $28,600.00 $30,000.00 $30,000.00 25 Inventory and Install Traffic Signing &
Striping, pavement markings (legends),
and Raised Pavement Markers (RPM's)
for Residential/Collector Streets per
MUTCD
LS 30,000.00 1 $ $30,000.00 $9,000.00 $9,000.00 $9,000.00 $9,000.00 $30,000.00 $30,000.00 $15,000.00 $15,000.00 $29,200.00 $29,200.00 $30,000.00 $30,000.00 26 Traffic Control & Construction Phasing
LS 450,000.00 1 $ $450,000.00 $355,320.00 $355,320.00 $555,000.00 $555,000.00 $738,000.00 $738,000.00 $455,000.00 $455,000.00 $643,659.00 $643,659.00 $640,600.00 $640,600.00 $5,485,525.00 $4,757,000.00 $4,959,225.00 $5,298,940.00 $5,474,550.00 $5,564,564.00 $5,615,500.00 City of Orange: Summary of Bid Abstracts for:

Orange, CA Long Beach, CA
Grand Total

PAVEMENT IMPROVEMENTS

ENGINEER'S ESTIMATE
Annual Pavement Maintenance at Various Locations
FY 2024-2025
Onyx Paving Company, Inc. R.J. Noble Company Palp, Inc. Dba Excel Paving Anaheim, CA
Hardy & Harper, Inc.

Santa Fe Springs, CA Lake Forest, CA
All American Asphalt
Corona, CA
Sequel Contractors Inc.

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Orange City CouncilJune 24, 2025

Orange City Council
June 24, 2025