Agenda packet — Orange City Council, July 28, 2026 (part 1 of 2)

Jarad L. Hildenbrand
City Manager
Nathalie Adourian
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
Orange City Council
July 28, 2026
5:00 PM Closed Session
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 on 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 on the City ’s website; in the City Clerk’s Office during normal business hours; and at the City Council meeting.

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

To join Zoom meeting online using a personal computer or smart device:
https://www.zoomgov.com/j/1656814425?pwd=kkolXX5D4diWS9q7Dhi0jJTDlnbdS9.1 Meeting ID: 165 681 4425
Passcode: 356107
To join Zoom meeting from any phone, dial (669) 216-1590 Meeting ID: 165 681 4425
Passcode: 356107
(Continued on page 2)

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1 Orange City Council Agenda July 28, 2026
Public Participation (continued)
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 identify yourself for the record, then proceed to address the City Council. All speakers shall observe civility, decorum, and good behavior.
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, members of the public are encouraged to submit written comments by 3:00 p.m. the day of the meeting. All written comments will be posted on the City’s website after the meeting.
3) Remote Public Comments
Members of the public may provide live public comments via Zoom during City Council meetings. To join the meeting, follow the instructions above. Instruction on how to participate will be provided during the meeting.

Please provide your name in the Zoom application to allow the City Clerk to identify you when it is your time to speak. Installing and familiarizing yourself with Zoom software prior to the commencement of the meeting is highly recommended.

If participating by telephone, the City Clerk will identify you by the last 4 digits of your phone number when it is your time to speak.

Please note, the City is not responsible for the public ’s use of Zoom as it relates to the software, configuration, and settings on a personal device. The public is encouraged to visit the Zoom website for information on successful use of this software. The City ’s use of Zoom is consistent with the platform features and functions as described on the Zoom website.

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 Orange City Council Agenda July 28, 2026
5:00 PM CLOSED SESSION

1. CALL TO ORDER

1.1 ROLL CALL

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, members of the public may address the Council on Closed Session items only. Public Comments are limited to three (3) minutes per speaker.

3. RECESS TO CLOSED SESSION
a. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957
Title: City Manager
b. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property Location: N. Batavia St., Orange CA 92865 (APN: 374-621-03) Agency Negotiator: Christopher Cash, Public Works Director Negotiating Parties: V & E Tree Service, Inc.

Under Negotiation: Price and terms of payment

4. CLOSED SESSION REPORT

5. ADJOURNMENT
The City Council will adjourn to the 6:00 p.m. Regular Session in the Council Chamber.

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3 Orange City Council Agenda July 28, 2026
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER

1.1 INVOCATION
Pastor Danny Kurimay, Bridge Community Church

1.2 PLEDGE OF ALLEGIANCE
Mayor pro tem Denis Bilodeau

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:

Staff ReportAttachments:

3.2. Approval of minutes of the City of Orange City Council Regular Meeting held on July 14, 2026
Approve minutes as presented.

Recommended Action:

Staff Report
July 14, 2026, Regular Meeting minutes
Attachments:

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4 Orange City Council Agenda July 28, 2026

3.3. Agreement with Sagecrest Planning and Environmental for environmental review services
Approve the agreement with Sagecrest Planning and Environmental in the amount of $150,000 for environmental review services; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Agreement with Sagecrest Planning and Environmental
Attachments:

3.4. Agreement with Raftelis Financial Consultants, Inc. for preparing the Water and Sewer Rate Study
Approve the agreement with Raftelis Financial Consultants, Inc. in the amount of $89,718 for the Water and Sewer Rate Study; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Rating Summation
Agreement with Raftelis Financial Consultants
Attachments:

3.5. Agreement with the State of California, Department of California Highway Patrol for the Cannabis Tax Fund Program for Fiscal Year 2026-2027

1. Approve the agreement with the State of California, Department of California Highway Patrol in the amount of $330,997.68 for the Cannabis Tax Fund Grant Program; and authorize the City Manager and City Clerk to execute on behalf of the City.

2. Adopt Resolution No. 11712. A Resolution of the City Council of the City of Orange accepting funds in the amount of $330,997.68 from the State of California Highway Patrol for the Cannabis Tax Fund Grant Program, and authorizing the City Manager to execute the grant program Agreement and related documents.

3. Accept into the City ’s General Fund (100) revenue budget $330,997.68 in grant funds from the State of California, Department of California Highway Patrol to:
100-4141-43299-274028-43- State-Other CTFGP FY 26-27

4. Authorize the appropriation of $330,997.68 to General Fund (100):
100-4141-51001-274028-10- Regular Salaries Safety-CTFGP $40,000 100-4141-51003-274028-10- Overtime Safety-CTFGP $288,650.18 100-4011-57101-274028-20- Local Training-CTFGP $2,347.50 Recommended Action:

Staff Report
CTFGP Agreement No. 30870
Resolution No. 11712
Attachments:

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5 Orange City Council Agenda July 28, 2026

3.6. Second Amendment to Agreement with Crosstown Electrical & Data, Inc. for On-Call Maintenance and Repair Services for Advance Traffic Management System and Communication System
Approve the Second Amendment to Agreement with Crosstown Electrical & Data, Inc . (Agreement No. 7616) for On -Call Maintenance and Repair Services for Advance Traffic Management System and Communication System; and authorize the Mayor and the City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Second Amendment
Attachments:

3.7. Second Amendment to Memorandum of Understanding with Milan REI X, LLC.

Approve the second amendment to the Memorandum of Understanding with Milan REI X, LLC; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Memorandum of Understanding Second Amendment
Attachments:

3.8. Award of Contract to Golden Coast Construction for Community Development Block Grant Fiscal Year 2025-2026 Americans with Disabilities Act Wheelchair Access Ramp Replacement

1. Approve the contract with Golden Coast Construction in the total amount of $71,286, representing an original bid amount of $61,988, plus 15% contingency of $9,298, for the construction of ten ADA Wheelchair Access Ramps; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the continuing appropriation of $97,723 from the Community Development Block Grant (310) Fiscal Year 2026 budget:
310-6411-88101-265092-20 ADA Improvements

3. Authorize the following budget transfer in Community Development Block Grant (310):

From: 310-6411-88101-265092-20 ADA Improvements $97,723 To: 310-6411-87102-265092-20 ADA Improvements $97,723
Recommended Action:

Staff Report
Contract with Golden Coast Construction
Bid Abstract
Attachments:

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6 Orange City Council Agenda July 28, 2026

3.9. Award of Contract to R .J. Noble Company, Inc. for Community Development Block Grant Fiscal Year 2025-2026 Street Rehabilitation; and appropriation of project balance from Fiscal Year 2025-2026

1. Approve the contract with R .J. Noble Company, Inc. in the amount of $526,221 representing an original amount of $457,583 plus a 15% contingency of $68,638 for Almond Avenue and Collins Avenue Street Improvements; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the continuing appropriation of $488,616 from the Community Development Block Grant (310) Fiscal Year 2026 CIP budget:
310-6411-88101-265086-20 CDBG Street Improvements FY26

3. Authorize the following budget transfer in Community Development Block Grant (310):

From: 310-6411-88101-265086-20 CDBG Street Improvements FY26 $488,616 To: 310-6411-87102-265086-20 CDBG Street Improvements FY26 $488,616 Recommended Action:

Staff Report
Contract with R.J. Noble Company, Inc.

Bid Abstract
FY 25-26 CDBG Location Maps
Attachments:

3.10. Award of Contract to Hydroblast, a sole proprietorship, for steam cleaning services at various locations
Approve a five -year contract with Hydroblast in the amount of $ 432,446, at $ 86,489.20 per year, for steam cleaning services at various locations; and authorize the Mayor and City Clerk to execute the agreement on behalf of the City.

Recommended Action:

Staff Report
Maintenance Services Agree
Outdoor Dining - Steam Cleaning Location - June 2026
Attachments:

3.11. Notice of Completion and Acceptance for Hart Park Pickleball and Fitness Circuit Site Project

1. Accept the Hart Park Pickleball and Fitness Circuit Site 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:

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7 Orange City Council Agenda July 28, 2026

3.12. Second Reading and adoption of Ordinance No. 12-26 approving Zone Change No. 1318 to change the zoning classification from Single Family Residential 10,000 square feet (R1-10) to Single Family Residential 10,000 square feet PUD No. 3203 on a 2.02-acre site located at 647 N Rancho Santiago Boulevard Adopt Ordinance No. 12-26.

Recommended Action:

Staff Report
Ordinance No. 12-26
Attachments:

3.13. Authorize purchase of print and audiovisual materials for the Orange Public Library from Ingram Content Group

1. Approve a purchase order for print and audiovisual materials from Ingram Content Group in the amount of $95,000.

2. Authorize the City Manager to approve increases to the purchase order should the Library receive donations designated for purchase of additional print and audiovisual materials.

Recommended Action:

Staff ReportAttachments:

3.14. Authorize the purchase and delivery of diesel fuel and gasoline for an amount not to exceed $ 1,100,000 from Southern Counties Oil Co. dba SC Fuels, a California Limited Partnership
Approve the purchase agreement with Southern Counties Oil Co ., a California Limited Partnership dba SC Fuels, in the amount not to exceed $ 1,100,000 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
Agreement with SC Fuels FY 26-27
Attachments:

3.15. Authorize purchase of Fire Department rescue equipment and safety gear from Allstar Fire Equipment Inc.

Approve the purchase of Fire Department rescue equipment and safety gear from Allstar Fire Equipment Inc. in an amount not to exceed $ 520,000 for Fiscal Year 2026-2027.

Recommended Action:

Staff Report
Allstar Fire Equipment Inc. Regional Cooperative Agreement No.

RCA-017-24010009
Attachments:

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8 Orange City Council Agenda July 28, 2026

3.16. Request to close the Orange Public Libraries for various dates during Fiscal Year 2026-2027
Approve closure of the Orange Public Libraries to the public as described in the staff report.

Recommended Action:

Staff ReportAttachments:

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

4. REPORTS FROM MAYOR SLATER

4.1. Consider removal of Adrienne Gladson from the Design Review Committee

1. Consider the removal of Adrienne Gladson from the Design Review Committee.

2. If necessary, direct the City Clerk to post a Notice of Vacancy pursuant to the Maddy Act.

Recommended Action:

Staff Report
OMC 2.55.010 Removal of Members
Attachments:

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.

7. REPORTS FROM CITY MANAGER

7.1. 2026 Fourth of July Update

8. ADMINISTRATIVE REPORTS

8.1. Renaming of the Orange Public Library and History Center as Mayor Mark and Vikki Murphy Library and History Center
Adopt Resolution No. 11713. A Resolution of the City Council of the City of Orange renaming the Orange Public Library & History Center as the Mayor Mark and Vikki Murphy Library & History Center.

Recommended Action:

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9 Orange City Council Agenda July 28, 2026
Staff Report
Resolution No. 11713
Attachments:

9. LEGAL AFFAIRS

9.1. Introduction and First Reading of Ordinance No. 13-26 amending Chapter 12.48 of the Orange Municipal Code pertaining to a prohibition of smoking in City parks Introduce and conduct First Reading of Ordinance No. 13-26. An Ordinance of the City Council of the City of Orange amending Chapter 12.48 of the Orange Municipal Code pertaining to parks to update sections related to smoking and vaping.

Recommended Action:

Staff Report
Ordinance No. 13-26
Ordinance No. 13-26 - Redline
Attachments:

10. ADJOURNMENT
The next Regular City Council meeting will be held on Tuesday, August 11, 2026, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.

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: July 23, 2026

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10 Agenda Item
Orange City Council
Item #: 3.1. 7/28/2026 File #: 26-0323
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, 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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11 Agenda Item
Orange City Council
Item #: 3.1. 7/28/2026 File #: 26-0323
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, 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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12 Agenda Item
Orange City Council
Item #: 3.2. 7/28/2026 File #: 26-0326
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Approval of minutes of the City of Orange City Council Regular Meeting held on July 14, 2026

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

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· July 14, 2026, Regular Meeting minutes
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13 Agenda Item
Orange City Council
Item #: 3.2. 7/28/2026 File #: 26-0326
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Pamela Coleman, City Clerk/City Clerk Services Director

1. SUBJECT
Approval of minutes of the City of Orange City Council Regular Meeting held on July 14, 2026

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

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· July 14, 2026, Regular Meeting minutes
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14 City of Orange
Orange City Council
July 14, 2026

MINUTES - DRAFT
The City Council of the City of Orange, California convened on Tuesday, July 14, 2026, at 5:00 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.
5:00 PM CLOSED SESSION

1. CALL TO ORDER
Mayor Slater called Closed Session to order at 5:02 p.m.

1.1 ROLL CALL

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

Absent: None
Councilmember Tavoularis joined Closed Session at 5:10 p.m.

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 5:03 p.m. with all Members present, except Councilmember Tavoularis who joined Closed Session at 5:10 p.m., to discuss the following:
a. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957
Title: City Manager
b. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957
Title: City Attorney

4. CLOSED SESSION REPORT
None

5. ADJOURNMENT
Closed Session was adjourned at 6:00 p.m.

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6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER
Mayor Slater called the meeting to order at 6:06 p.m.

1.1 INVOCATION
Given by Pastor Marco Salinas from Spirit and Truth Worship Center.

1.2 PLEDGE OF ALLEGIANCE
Led by Councilmember Kathy Tavoularis.

1.3 ROLL CALL

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

Absent: None

1.4 ANNOUNCEMENTS
None

1.5 REPORT ON CLOSED SESSION ACTIONS
None

2. PUBLIC COMMENTS
Public Speakers:

Dan Swoish spoke regarding a billboard installed in his neighborhood and dirt hauling activities from a nearby construction site.

Greg Arrowsmith spoke regarding federal funding provided to community colleges.

Curt Peterson spoke regarding the potential sale of all City -owned properties, including the Taft Library.

Joshua Hervol expressed concerns regarding permit parking restrictions that prevent him from parking on his street.

Craig Attanasio expressed concerns regarding the current state of the nation.

Donald Tolford, Holiday Skate Center owner, stated that the property owner is ending the facility's lease and requested assistance in identifying a new location for the skate center.

Mary Oberschlake expressed opposition to the use of Flock cameras in the City.

Jack Williams spoke regarding assistance available to small businesses affected by the Garden Grove hazardous materials incident.

Written Public Comment
Marci Carey submitted an eComment expressing concerns with the use of Flock cameras in the City.

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

ACTION: Approved.

3.2. Confirmation of accounts payable warrant registers dated June 4, 11, 18, and 25, 2026 and payroll check registers dated June 5 and 19, 2026 ACTION: Ratified the accompanying registers.

3.3. Approval of minutes of the City of Orange City Council Regular Meetings held on June 9, and June 23 2026; and Special Meeting held on June 29, 2026 ACTION: Approved minutes as presented.

3.4. Agreement with Triad Consulting & System Design Group, L .L.C. for security consulting services
Item 3.4 was removed from the Consent Calendar for separate consideration by Councilmember Dumitru.

Staff confirmed that no other parties would have access to the City's security camera network.

ACTION: A motion was made by Councilmember Dumitru, seconded by Councilmember Gutierrez, to approve the two -year with three optional annual extensions agreement with Triad Consulting & System Design Group, L .L.C. in the amount of $ 147,000.00 for security consulting services; and authorize the Mayor and City Clerk to execute on behalf of the City. The motion carried by the following vote:

Bilodeau, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

BarriosNoes:

NoneAbsent:

3.5. Approval of a new license agreement with the California Fire Museum to continue operating a fire department history museum at the Old Orange City Fire Department Headquarters located at 176 South Grand Street A speaker card was submitted for Item 3.5; therefore, the item was removed from the Consent Calendar for separate consideration.

Public Speaker:

Peter Schumacher spoke in opposition, citing concerns about the City's current financial status.

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ACTION: A motion was made by Councilmember Gyllenhammer, seconded by Councilmember Dumitru, to approve the license agreement with the California Fire Museum to operate a fire department history museum on a temporary basis at 176 South Grand Street; and authorize the Mayor and City Clerk to execute on behalf of the City. The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

3.6. Approval of plans and specifications for Walnut Avenue at Orange Street Traffic Signal Installation and authorization to advertise for bids; and finding of California Environmental Quality Act (CEQA) exemption
Item 3.6 was removed from the Consent Calendar for separate consideration by Councilmember Barrios.

Council discussed the location and timing of the proposed traffic signal at Walnut Avenue and Orange Street with the Walnut Avenue and Glassell Street signal, including the possibility of restricting the intersection to left -turn only. Staff confirmed the intersection met traffic warrants.

Council discussed the proposed traffic signal at Walnut Avenue and Orange Street, including its location, timing, and coordination with nearby traffic signals; and the possibility of restricting the intersection to left -turn only. Staff confirmed that the intersection meets the applicable traffic signal warrants.

ACTION: A motion was made by Mayor pro tem Bilodeau, seconded by Mayor Slater, to:
1) Approve the plans and specifications and authorize advertising for Bid No. 26-27.01 (SP-4301), Walnut Avenue at Orange Street Traffic Signal Installation. 2) Find that the proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 1(c) - Existing Facilities).

The motion carried by the following vote:

Bilodeau, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

Barrios, and DumitruNoes:

NoneAbsent:

3.7. Appropriation of $ 220,000 from the Low- and Moderate -Income Housing Asset Fund for the final loan disbursement to Orange 702, L .P. for the Orion Senior Housing Apartments Project
ACTION: 1) Authorized the appropriation of $ 220,000 from the Low- and Moderate-Income Housing Fund (232) unreserved fund balance to:
232-8001-81999-256019 Orion Senior Housing Apartments Project 2) Authorized the Community Development Director, or designee, to disburse the remaining loan proceeds to Orange 702, L .P. upon verification that all conditions for final disbursement have been satisfied.

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3.8. Second Reading and adoption of Ordinance No. 04-26 adding Chapter 8.38 to the Orange Municipal Code relating to the maintenance and security standards for unoccupied or abandoned properties
ACTION: Adopted Ordinance No. 04-26.

3.9. Second Reading and adoption of Ordinance No. 11-26 amending Chapter 10.40 of the Orange Municipal Code pertaining to parking meter zones ACTION: Adopted Ordinance No. 11-26.

3.10. Authorize purchase of medical supplies and medications from Life-Assist, Inc.

ACTION: Approved the purchase of medical supplies and medications from Life -Assist, Inc. in an amount of $425,000 for Fiscal Year 2026-2027.

3.11. Authorize purchase of Fire Department uniforms, wildland safety gear, and ambulance operator equipment from LineGear, Inc.

ACTION: Approved the purchase of Fire Department uniforms, wildland safety gear, and ambulance operator equipment from LineGear, Inc. in an amount not to exceed $257,000.

3.12. Authorize purchase of Fire Department personal protective equipment, specialized safety equipment and supplies, and department uniforms from LN Curtis & Sons
ACTION: Approved the purchase of Fire Department personal protective equipment, specialized safety equipment and supplies, and department uniforms from LN Curtis & Sons in an amount not to exceed $157,000.

3.13. Adoption of Resolution No. 11710 designating certain City officials and employees required to complete Ethics Training and Fiscal and Financial Training pursuant to Government Code Sections 53234 et seq. and 53238 et seq . (Senate Bill 827, 2025)
ACTION: Adopted Resolution No. 11710. A Resolution of the City Council of the City of Orange designating certain officials and employees required to complete Ethics Training and Fiscal and Financial Training pursuant to Senate Bill 827 (2025).

3.14. Amend the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5
ACTION: Adopted Resolution No. 11711. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11651 and amending the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.

3.15. Establishment of a loading zone in front of 233 N. Lemon Street ACTION: Adopted Resolution No. 11706. A Resolution of the City Council of the City of Orange for the establishment of a loading zone on the east side of Lemon Street adjacent to the frontage of 233 N. Lemon Street (Accessor Parcel Number 039-162-21).

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19 Orange City Council Minutes - Draft July 14, 2026
Approval of the Consent Calendar
Items 3.4, 3.5, and 3.6 were removed from the Consent Calendar and heard separately. All other items were approved as recommended.

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

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

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

4. REPORTS FROM MAYOR SLATER
Mayor Slater announced that staff would present a report at the July 28 Council meeting regarding an update to July 4th and fireworks enforcement.

5. REPORTS FROM COUNCILMEMBERS

5.1. Chapman PILOT Agreement (Barrios)
Councilmember Barrios provided an overview of the negotiations with Chapman regarding a Payment in Lieu of Taxes (PILOT) program and requested that the item be agendized for a future Council meeting.

Council discussed the unlikely potential for a PILOT agreement with Chapman and the importance of maintaining a partnership with the university.

During further discussion, Mayor Slater distributed a letter from Chapman University dated June 2, 2025, indicating that the university had declined to continue pursuing a PILOT agreement with the City.

Public Speaker:

Doug Redding spoke in support of a PILOT program.

6. AB 1234 REPORTS
None

7. APPOINTMENTS TO BOARDS, COMMITTEES, AND COMMISSIONS

7.1. Appointments to the Design Review Committee and Planning Commission A motion was made by Councilmember Dumitru, seconded by Councilmember Tavoularis, to confirm Mayor Slater's recommendation to appoint Donnie DeWees to the Design Review Committee to fill an unexpired term ending on June 30, 2027, and Connie Benson to the Planning Commission for a four -year term expiring on June 30, 2030. The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

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20 Orange City Council Minutes - Draft July 14, 2026

8. REPORTS FROM CITY MANAGER
None

9. PUBLIC HEARINGS

9.1. Public Hearing to consider a request to establish a Planned Unit Development (PUD) and subdivide a 2.02-acre parcel into 11 single-family homes at 647 N.

Rancho Santiago Boulevard and Introduction and First Reading of Ordinance No . 12-26 approving Zone Change No. 1318, and finding of California Environmental Quality Act (CEQA) Exemption
Planning Manager Hayden Beckman presented the staff report utilizing a PowerPoint presentation.

During deliberations, Council discussed fire access, parking, and lack of parkway between sidewalk and curb.

Mayor Slater opened the Public Hearing at 8:02 p.m.; there being no speakers, Mayor Slater closed the Public Hearing at 8:02 p.m.

A motion was made by Councilmember Gutierrez, seconded by Councilmember Gyllenhammer, to: 1) Adopt City Council Resolution No. 11709. 2) Introduce and conduct First Reading of Ordinance No. 12-26. 3) Find the request categorically exempt from the California Environmental Quality Act (CEQA) in accordance with Section 15183 of the State CEQA Guidelines (Projects consistent with a Community Plan, General Plan, or Zoning).

Mayor Slater requested to amend the motion to allow for the creation of a parkway if possible. Councilmember Gutierrez and Councilmember Gyllenhammer agreed to the amendment.

An amended motion was made by Councilmember Gutierrez, seconded by Councilmember Gyllenhammer, to:
1) Adopt City Council Resolution No. 11709 with the inclusion of a parkway if possible .

A Resolution of the City Council of the City of Orange approving Tentative Tract Map No. 0052, Conditional Use Permit No. 3203, Design Review No. 5119, and Major Site Plan Review No. 1137, to establish an 11-unit Planned Unit Development and subdivide a 2.02-acre parcel into 11 separate parcels located at 647 N. Rancho Santiago Boulevard.
2) Introduce and conduct First Reading of Ordinance No. 12-26. An Ordinance of the City Council of the City of Orange Approving Zone Change No. 1318 to change the zoning classification from Single Family Residential 10,000 square feet (R1-10) to Single Family Residential 10,000 square feet - PUD No. 3203 (R1-10 [PUD 3203]) on a

2.02-acre site located at 647 N. Rancho Santiago Boulevard. 3) Find the request categorically exempt from the California Environmental Quality Act (CEQA) in accordance with Section 15183 of the State CEQA Guidelines (Projects consistent with a Community Plan, General Plan, or Zoning).

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21 Orange City Council Minutes - Draft July 14, 2026
The motion carried by the following vote:

Bilodeau, Barrios, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

NoneNoes:

NoneAbsent:

10. ADMINISTRATIVE REPORTS

10.1. Consider two resolutions that would submit to the voters a question adopting a City Charter, establishing priorities for filing written arguments, and directing the City Attorney to prepare an Impartial Analysis
Deputy City Manager Jack Morgan provided a brief overview of the five revised sections of the proposed City Charter.

Public Speakers:

Reggie Mundekis spoke in opposition citing concerns with Sections 400, 803, and 804.

Betty Talbert spoke in support of the revisions but expressed a preference for retaining an eight-year Council term limit rather than extending it to twelve years.

Mary Oberschlake spoke in opposition.

Council discussed each revised Charter section individually. Consensus was reached on the revisions to Section 204 regarding open space, Option 2 of Section 400 regarding the composition of the City Council, and Section 403 regarding eligibility.

Council then voted on the remaining proposed revisions.

A motion was made by Mayor Slater, seconded by Councilmember Gutierrez, to approve Section 501 of the proposed Charter, providing that "No person shall serve as a member of the City Council for more than two four-year terms in a lifetime." A substitute motion was made by Councilmember Tavoularis, seconded by Councilmember Dumitru, to approve Section 501 of the proposed Charter as submitted, providing that "No person shall serve as a member of the City Council for more than three four-year terms in a lifetime. The motion carried by the following vote:

Bilodeau, Dumitru, Tavoularis, and SlaterAyes:

Barrios, Gutierrez, and GyllenhammerNoes:

NoneAbsent:

A motion was made by Mayor Slater, seconded by Councilmember Dumitru, to approve Section 603, Protection of Private Property Rights, in the proposed City Charter. The motion carried by the following vote:

Bilodeau, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

BarriosNoes:

NoneAbsent:

A motion was made by Mayor Slater, seconded by Councilmember Dumitru, to remove the second paragraph in Section 803, Supermajority Vote Required to Submit New Taxes, in the proposed City Charter.

After discussion, Mayor Slater requested to amend his motion to remove the entire section. Councilmember Dumitru agreed to the amendment.

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22 Orange City Council Minutes - Draft July 14, 2026
An amended motion was made by Mayor Slater, seconded by Councilmember Dumitru, to remove Section 803, Supermajority Vote Required to Submit New Taxes, in the proposed City Charter. The motion carried by the following vote:

Bilodeau, Dumitru, Gutierrez, Tavoularis, Gyllenhammer, and SlaterAyes:

BarriosNoes:

NoneAbsent:

A motion was made by Mayor pro tem Bilodeau, seconded by Councilmember Dumitru, to strike the word "structural" from Section 801 in the proposed City Charter. The motion carried by the following vote:

Bilodeau, Dumitru, Gutierrez, Tavoularis, and SlaterAyes:

Barrios, and GyllenhammerNoes:

NoneAbsent:

A motion was made by Councilmember Tavoularis, seconded by Councilmember Dumitru, to adopt Resolution No. 11707 with revisions to the proposed City Charter as approved by the City Council. A Resolution of the City Council of the City of Orange ordering the submission to the voters a question relating to a proposed City Charter for adoption at the November 3, 2026, General Municipal Election as called by Resolution No. 11669.

The motion carried by the following vote:

Bilodeau, Dumitru, Tavoularis, and SlaterAyes:

Barrios, Gutierrez, and GyllenhammerNoes:

NoneAbsent:

A motion was made by Councilmember Tavoularis, seconded by Councilmember Dumitru, to adopt Resolution No. 11708 authorizing Councilmember Tavoularis and Councilmember Dumitru to author direct arguments in favor. A Resolution of the City Council of the City of Orange setting priorities for filing written arguments regarding a City measure and directing the City Attorney to prepare an Impartial Analysis for the measure to be submitted to the voters at the General Municipal Election held on Tuesday, November 3, 2026. The motion carried by the following vote:

Bilodeau, Dumitru, Tavoularis, and SlaterAyes:

Barrios, Gutierrez, and GyllenhammerNoes:

NoneAbsent:

11. ADJOURNMENT
There being no further business, the meeting was adjourned at 9:29 p.m.

The next Regular City Council Meeting will be held on Tuesday, July 28, 2026, at 6:00 p.m. in the Council Chamber, with Closed Session beginning at 5:00 p.m. if necessary. ______________________ _________________________ PAMELA COLEMAN DANIEL R. SLATER

CITY CLERK MAYOR

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23 Agenda Item
Orange City Council
Item #: 3.3. 7/28/2026 File #: 26-0308
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
Agreement with Sagecrest Planning and Environmental for environmental review services

2. SUMMARY
Agreement with Sagecrest Planning and Environmental to provide environmental review services for the City of Orange.

3. RECOMMENDED ACTION
Approve the agreement with Sagecrest Planning and Environmental in the amount of $150,000 for environmental review services; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
There is no direct impact to the General Fund. The total expenditure for this agreement is $150,000 and will be funded by the planning application deposits.

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

6. DISCUSSION AND BACKGROUND
The City is required to comply with all applicable state and federal environmental review requirements, including the California Environmental Quality Act (CEQA), prior to approval of discretionary projects. These reviews often involve detailed technical analyses, such as air quality, biological resources, cultural resources, traffic, noise, and other specialized studies, that must be completed by qualified environmental professionals.

Sagecrest Planning and Environmental has previously provided on-call environmental review services to the City on an as-needed basis and has demonstrated familiarity with local policies, procedures, and regulatory requirements. Their expertise enables the City to meet compliance obligations efficiently while maintaining high standards for technical accuracy and objectivity.

7. ATTACHMENTS
· Agreement with Sagecrest Planning and Environmental
City of Orange Printed on 7/23/2026Page 1 of 1
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24 Agenda Item
Orange City Council
Item #: 3.3. 7/28/2026 File #: 26-0308
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
Agreement with Sagecrest Planning and Environmental for environmental review services

2. SUMMARY
Agreement with Sagecrest Planning and Environmental to provide environmental review services for the City of Orange.

4. FISCAL IMPACT
There is no direct impact to the General Fund. The total expenditure for this agreement is $150,000 and will be funded by the planning application deposits.

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

7. ATTACHMENTS
· Agreement with Sagecrest Planning and Environmental
City of Orange Printed on 7/23/2026Page 1 of 1
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IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.
"CONTRACTOR" "CITY"

SAGECREST PLANNING AND
ENVIRONMENT AL, a California corporation
CITY OF ORANGE, a municipal corporation
*By: �V<R
PrintedNanY: __ �--------
Title:

By: ___________ _
Daniel R. Slater, Mayor
--------------
*By: ______________ ATTEST:

Printed Name:-----------
Title: --------------
*NOTE:

Pamela Coleman, City Clerk
APPROVED AS TO FORM:

Connor Hyland
Senior Assistant City Attorney
City requires the following signature(s) on behalf of the Contractor:
(1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to City.
✓
10 Amy Vazquez
President
Amy Vazquez
Secretary
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Agenda Item
Orange City Council
Item #: 3.4. 7/28/2026 File #: 26-0378
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Raftelis Financial Consultants, Inc. for preparing the Water and Sewer Rate Study

2. SUMMARY
Agreement with Raftelis Financial Consultants, Inc. to update the Water and Sewer Rate Study and provide recommendation on rates adjustment.

3. RECOMMENDED ACTION
Approve the agreement with Raftelis Financial Consultants, Inc. in the amount of $89,718 for the Water and Sewer Rate Study; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The expense for this agreement is $89,718 and will be funded through Water (600):
600-5802-55101- Professional/Technical Service

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

6. DISCUSSION AND BACKGROUND
In 2022, the City conducted a comprehensive rate study for the Water and Sewer (Sanitation) Funds to ensure the adequacy of revenue for maintenance and operations. Utilizing the public noticing process, the City Council established water and sewer rates through January 1, 2027. Due to continually escalating wholesale water supply costs, the effects of the groundwater treatment systems, ongoing water conservation impacts, and escalating capital improvement and maintenance costs, the City needs to update its financial analysis of the City’sWater and Sewer Funds to ensure a balance between revenues and expenditures, while maintaining reasonable fund reserves for emergency purposes. These analyses will show if a rate adjustment is needed for a five-year period, to be commenced as early as January 2028. Pursuant to Proposition 218, any proposed increase cannot exceed the City’s estimated reasonable cost of providing water and sewer service.

As a part of the study, the consultant is to provide the City with financial, economic, and general consulting services in the areas of rate-setting, revenue requirement analyses, cost-of-service studies, rate design, financial planning and budgeting, and related services. Work on the project is City of Orange Printed on 7/23/2026Page 1 of 2
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69 Item #: 3.4. 7/28/2026 File #: 26-0378
anticipated to begin in August 2026 and to be completed by March 2027.

The Request for Proposal for the Water and Sewer Rate study was distributed to four firms on April 27, 2026, with a due date of June 1, 2026. One of the firms, Black & Veatch, did not submit a proposal. Staff evaluated the proposals based on the firm’sunderstanding of the project, description of work, relevant experience, project team, and project schedule. The consultant’sfee schedule and labor rates were submitted in separate sealed envelopes and were reviewed after the rating process was completed. Raftelis Financial Consultants, Inc. received the highest point total and is the top- ranked consultant. Below is the summary of the firms that proposed including the ranking and fee:

Firm Rank Proposed Fee
Raftelis Financial Consultants 1 $89,718
Water Resources Economics 2 $88,259
RDN 3 $104,600
Raftelis Financial Consultants, Inc. showed a thorough understanding of the project scope and challenges involved, had the most relevant local experience with this type of project, understood the requirements, and proposed a reasonable fee. They are also familiar with the City of Orange through the completion of a previous water and sewer rate study. Therefore, staff recommend that Raftelis Financial Consultants, Inc. be awarded an agreement in the amount of $89,718.

7. ATTACHMENTS
· Rating Summation
· Agreement with Raftelis Financial Consultants, Inc.

City of Orange Printed on 7/23/2026Page 2 of 2
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70 Agenda Item
Orange City Council
Item #: 3.4. 7/28/2026 File #: 26-0378
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Raftelis Financial Consultants, Inc. for preparing the Water and Sewer Rate Study

2. SUMMARY
Agreement with Raftelis Financial Consultants, Inc. to update the Water and Sewer Rate Study and provide recommendation on rates adjustment.

4. FISCAL IMPACT
The expense for this agreement is $89,718 and will be funded through Water (600):
600-5802-55101- Professional/Technical Service

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

As a part of the study, the consultant is to provide the City with financial, economic, and general consulting services in the areas of rate-setting, revenue requirement analyses, cost-of-service studies, rate design, financial planning and budgeting, and related services. Work on the project is City of Orange Printed on 7/23/2026Page 1 of 2
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71 Item #: 3.4. 7/28/2026 File #: 26-0378
anticipated to begin in August 2026 and to be completed by March 2027.

7. ATTACHMENTS
· Rating Summation
· Agreement with Raftelis Financial Consultants, Inc.

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72 FIRM Cost Hours Rater
Overview and
Understanding of
Project (15 pts)
Relevant of Experience
(30 pts)
Description of work
(25 pts)
Project Team
(20 pts)
Schedule &
Progress Activity
(10pts)
Total
(100 pts) Rank
Raftelis $ 89,718.00 306 1 15 30 25 20 8 98
Raftelis 2 5 30 25 20 8 88
Raftelis 3 15 30 25 20 8 98
Total= 284 1
Water Resources
Economics $ 88,259.00 412 1 15 25 25 19 7 91
Water Resources
Economics 2 10 20 15 15 5 65
Water Resources
Economics 3 15 28 23 18 8 92
Total= 248 2
RDN $ 104,600.00 388 1 13 25 23 18 9 88
RDN 2 10 20 20 10 9 69
RDN 3 12 24 23 16 8 83
Total= 240 3
Black & Veatch
Black & Veatch
Black & Veatch

RATING SUMMATION FOR WATER & SANITATION RATES STUDY
Did not submit proposal due to workload
73 PROFESSIONAL SERVICES AGREEMENT
[Water and Sanitation Rate Study Services]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s _____ day of ____________, 20 26 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and RAFTELIS FINANCIAL CONSULTANTS, INC., a North Carolina corporation (“Contractor”), who agree as follows:

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

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

2. Compensation and Fees.

a. Contractor's total compensation for all services performed under this Agreement, shall not exceed EIGHTY-NINE THOUSAND SEVEN HUNDRED EIGHTEEN DOLLARS and 00/100 ($89,718.00) without the prior written authorization of City.

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

3. Payment.

a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.

b. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

c. City will pay Contractor the amount invoiced within thirty (30) days after the approval of the invoice.

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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. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

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

6. Independent Contractor . At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters 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 or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

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

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

It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.

9. Assignment or Subcontracting. No assignment or subcontracting by Contractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has the prior written approval of City. City may terminate this 75 3
Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.

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

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

12. Reserved.

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

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

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

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 76 4
for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

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

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

17. Indemnity.

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

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

(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any 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. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.

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

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

18. Insurance.

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

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

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

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

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

f. Contractor shall maintain during the life of this Agreement professional liability insurance covering errors and omissions arising out of the performance of this Agreement with a minimum limit of One Million Dollars ($1,000,000) per claim. Contractor agrees to keep 78 6
such policy in force and effect for at least five (5) years from the date of completion of this Agreement.

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

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

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

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

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

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

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

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

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

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

Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with 79 7
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 Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.

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

21. Compliance with all Laws/Immigration Laws.

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

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

c. Contractor represents and warrants that it:

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

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

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

80 8
(4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

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

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

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

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

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

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

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

24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally , by e -mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission. 81 9

“CONTRACTOR” “CITY”

Raftelis Financial Consultants, Inc. City of Orange
611 Wilshire Boulevard, Suite 900 300 E. Chapman Avenue Los Angeles, CA 90017 Orange, CA 92866-1591
Attn.: Steve Gagnon Attn.: Sonny Tran

Telephone: 213-262-9308 Telephone: 714-288-2497
E-Mail: [email protected] E-Mail: [email protected]

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

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

82 X
83 10
IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

RAFTELIS FINANCIAL CONSULTANTS, CITY OF ORANGE, a municipal corporation INC., a North Carolina corporation

*By: By:

Printed Name: Daniel R. Slater, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Connor Hyland
Senior Assistant City Attorney

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

√

X
84 EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
85 86
87 88
89 90
91 92
93 Agenda Item
Orange City Council
Item #: 3.5. 7/28/2026 File #: 26-0418
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Adam Jevec, Chief of Police

1. SUBJECT
Agreement with the State of California, Department of California Highway Patrol for the Cannabis Tax Fund Program for Fiscal Year 2026-2027

2. SUMMARY
Funding for the Cannabis Tax Fund Grant Program is being awarded in the amount of $330,997.68 to augment officer education and training programs that reduce and mitigate the impacts of impaired driving.

3. RECOMMENDED ACTION

3. Accept into the City’sGeneral Fund (100) revenue budget $330,997.68 in grant funds from the State of California, Department of California Highway Patrol to:
100-4141-43299-274028-43- State-Other CTFGP FY 26-27

4. FISCAL IMPACT
There is no direct fiscal impact to the City. The additional revenue received from the State of California, Department of California Highway Patrol will fund the expense for this program.

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
City of Orange Printed on 7/23/2026Page 1 of 2
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94 Item #: 3.5. 7/28/2026 File #: 26-0418

6. DISCUSSION AND BACKGROUND
Proposition 64, The Control, Regulate and Tax Adult Use Marijuana Act, was approved by voters in 2016. The measure legalized the adult use of marijuana for individuals 21 years of age and older and established a regulatory framework governing the cultivation, distribution, sale, and use of cannabis.

The Act also provides funding to support public safety efforts by requiring the State to allocate Cannabis Tax Fund revenues to the California Highway Patrol (CHP) for grants to local law enforcement agencies focused on education, prevention, and enforcement of impaired driving laws.

In February 2026, the Police Department submitted an application for funding through the Cannabis Tax Fund Grant Program (CTFGP). The application was conditionally approved for an award of $330,997.68 for Fiscal Year 2026-2027 (FY27). The CTFGP is a reimbursement-based grant that will fund impaired driving enforcement operations, officer training, and public education initiatives designed to enhance the department’s ability to identify and address drug and alcohol impaired drivers.

Grant funded objectives for FY27 include:
· Hosting two Standard Field Sobriety (SFST) training courses for up to 10 officers per course · Hosting two Advanced Roadside Impaired Driving Enforcement (ARIDE) training courses for up to five officers per course
· One officer to attend a Drug Recognition Expert (DRE) course · One officer to attend an SFST Instructor course
· Hosting one DRE Recertification course for up to four officers · Conduct 30 DUI Saturation patrols
Acceptance of the CTFGP award will provide the Department with the necessary funding to support specialized training and impaired driving enforcement activities throughout FY27, enhancing officer capabilities and promoting roadway safety within the community.

7. ATTACHMENTS
· CTFGP Agreement No. 30870
· Resolution No. 11712
City of Orange Printed on 7/23/2026Page 2 of 2
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95 Agenda Item
Orange City Council
Item #: 3.5. 7/28/2026 File #: 26-0418
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Adam Jevec, Chief of Police

1. SUBJECT
Agreement with the State of California, Department of California Highway Patrol for the Cannabis Tax Fund Program for Fiscal Year 2026-2027

3. RECOMMENDED ACTION

3. Accept into the City’sGeneral Fund (100) revenue budget $330,997.68 in grant funds from the State of California, Department of California Highway Patrol to:
100-4141-43299-274028-43- State-Other CTFGP FY 26-27

5. STRATEGIC PLAN GOALS
Goal 1: Maintain Strong Emergency and Safety Services
City of Orange Printed on 7/23/2026Page 1 of 2
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96 Item #: 3.5. 7/28/2026 File #: 26-0418

7. ATTACHMENTS
· CTFGP Agreement No. 30870
· Resolution No. 11712
City of Orange Printed on 7/23/2026Page 2 of 2
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97 State of California

DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
GRANT AGREEMENT - Page 1
Award Number
30870
________________________________________________________________

1. GRANT TITLE
FY26/27 CTFGP Law Enforcement - Orange Police Department

2. NAME OF ORGANIZATION/AGENCY
Orange Police Department

3. ORGANIZATION/AGENCY SECTION TO ADMINISTER GRANT
Orange Police Department/Field Services Division/Traffic Bureau

4. PROJECT PERFORMANCE PERIOD
From: 07/01/2026 To: 06/30/2027

5. PURCHASE ORDER NUMBER

6. G RANT OPPORTUNITY INFORMATION DESCRIPTION
Law Enforcement grants provide financial assistance to allied agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products.

The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency’s effectiveness through training and development of new strategies.

7. FUNDS ALLOCATED UNDER THIS GRANT AGREEMENT SHALL NOT EXCEED $330,997.68

8. TERMS AND CONDITIONS
The Grantee agrees to complete the Project, as described in the Project Description. The Grantee’s Grant Application, and the California Code of Regulations, Title 13, Division 2, Chapter 13, Sections 1890.00- 1890.27, are hereby incorporated into this Grant Agreement by reference.

The parties hereto agree to comply with the Terms and Conditions of the following attachments:
• Schedule A – Project Description, Problem Statement, Goals and Objectives, and Method of Procedure • Schedule B – Detailed Budget Estimate
• Schedule B-1 – Budget Narrative

We, the officials named below, hereby swear, under penalty of perjury under the laws of the State of California, that we are duly authorized to legally bind the Grant recipient to the above-described Grant Terms and Conditions.

IN WITNESS WHEREOF, this Grant Agreement is executed by the parties hereto.

9. APPROVAL SIGNATURES
A. AUTHORIZED OFFICIAL OF ORGANIZATION/AGENCY
Name: Jared Hildenbrand
Title: City Manager
Phone: (714) 744-2222

Address: 300 East Chapman Avenue
Orange, CA 92866

E-Mail: [email protected]

___________________________ _______________
(Signature) (Date)
B. AUTHORIZED OFFICIAL OF CHP
Name: Elliotte Johnson Phone: (916) 843-4360
Title: Captain Fax: (916) 322-3169

Address: 601 North 7th Street
Sacramento, CA 95811

E-Mail: [email protected]

___________________________ _______________
(Signature) (Date)
C. ACCOUNTING OFFICER OF CHP
Name: M. V. Fojas Phone: (916) 843-3531
Title: Commander Fax: (916) 322-3159

Address: 601 North 7th Street
Sacramento, CA 95811

E-Mail: [email protected]

___________________________ _______________
(Signature) (Date)

10. AUTHORIZED FINANCIAL CONTACT TO RECEIVE

REIMBURSEMENT PAYMENTS

Name: Hilda Montoya
Title: Senior Administrative Analyst
Phone: (714) 744-2222

Address: 300 East Chapman Avenue
Orange, CA 92866

98 TERMS AND CONDITIONS

Grantee shall comply with the California Code of Regulations, Title 13, Division 2, Chapter 13 Section 1890, et seq. and all other Terms and Conditions noted in this Grant Agreement. Failure by the Grantee to comply may result in the termination of this Grant Agreement by the California Highway Patrol (hereafter referred to as State). The State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.

A. EXECUTION

1. The State (the California Highway Patrol) hereby awards, to the Grantee, the sum of money stated on page one of this Grant Agreement. This funding is awarded to the Grantee to carry out the Project set forth in the Project Description and the terms and conditions set forth in this Grant Agreement.

2. The funding for this Grant Agreement is allocated pursuant to California Revenue and Taxation Code Section 34019(f)(3)(B). The Grantee agrees that the State’s obligation to pay any sum under this Grant Agreement is contingent upon availability of funds disbursed from the California Cannabis Tax Fund to the State. If there is insufficient funding, the State shall have the option to either: 1) terminate this Grant Agreement; whereby, no party shall have any further obligations or liabilities under this Grant Agreement, or 2) negotiate a Grant Agreement Amendment to reduce the grant award and scope of work to be provided under this Grant Agree ment.

3. The Grantee is not to commence or proceed with any work in advance of receiving notice that the Grant Agreement is approved. Any work performed by the Grantee in advance of the date of approval by the State shall be deemed volunteer work and will not be reimbursed by the State.

4. The Grantee agrees to provide any additional funding, beyond what the State has agreed to provide, pursuant to this Grant Agreement, and necessary to complete or carry out the Project, as described in this Grant Agreement. Any modification or alteration of this Grant Agreement, as set forth in the Grant Application submitted by the Grantee and on file with the State, must be submitted in writing thirty (30) calendar days in advance to the State for approval.

5. The Grantee agrees to complete the Project within the timeframe indicated in the Project Performance Period, which is on page one of this Grant Agreement.

B. PROJECT ADMINISTRATION

1. The Grantee shall submit all reimbursements, progress, performance, and/or other required reports concerning the status of work performed in furtherance of this Grant Agreement on a quarterly basis, or as requested by the State.

2. The Grantee shall provide the State with a final report showing all Project expenditures, which includes all State and any other Project funding expended, within sixty (60) calendar days after completion of this Grant Agreement.

3. The Grantee shall ensure all equipment which is purchased, maintained, operated, and/or developed is available for inspection by the State.

4. Equipment purchased through this Grant Agreement shall be used for the education, prevention, and enforcement of impaired driving laws, unless the Grantee is funding a portion of the purchased price not dedicated to impaired driving and that portion is not part of the Project costs.

Equipment purchased under this Grant Agreement must only be used for approved Project- related purposes, unless otherwise approved by the State in writing.

5. Prior to disposition of equipment acquired under this Grant Agreement, the Grantee shall notify the State via e- mail, and by telephone, by calling the California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit at (916) 843-4360. 99 TERMS AND CONDITIONS

C. PROJECT TERMINATION

1. Grantee or the State may terminate this Grant Agreement at any time prior to the commencement of the Project. Once the Project has commenced, this Grant Agreement may only be terminated if the party withdrawing provides thirty (30) calendar days written notice of their intent to withdraw.

a. If by reason of force majeure the performance hereunder is delayed or prevented, then the term end date may be extended by mutual consent for the same amount of time of such delay or prevention. The term “force majeure” shall mean any fire, flood, earthquake, or public disaster, strike, labor dispute or unrest, embargo, riot, war, insurrection or civil unrest, any act of God, any act of legally constituted authority, or any other cause beyond the Grantee’s control which would excuse the Grantee’s performance as a matter of law.

b. Grantee agrees to provide written notice of an event of force majeure under this Grant Agreement within ten (10) calendar days of the commencement of such event, and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure.

2. Any violations of law committed by the Grantee, misrepresentations of Project information by the Grantee to the State, submission of falsified documents by the Grantee to the State, or failure to provide records by the Grantee to the State when requested for audit or site visit purposes may be cause for termination. If the Project is terminated for the reasons described in this paragraph, the State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.

3. The State may terminate this Grant Agreement and be relieved of any payments should the Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein provided. Furthermore, the Grantee, upon termination, shall return grant funds not expended by the Grantee as of the date of termination.

4. If this Grant Agreement is terminated, the State may choose to exclude the Grantee from future Grant Opportunities.

D. FINANCIAL RECORDS

1. The Grantee agrees the State, or their designated representative, shall have the right to review and to copy all records and supporting documentation pertaining to the performance of this Grant Agreement. Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after final payment, unless a longer period of records retention is stipulated or required by law. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Furthermore, the Grantee agrees to include a similar right for the State to audit all records and interview staff in any subcontract related to performance of this Grant Agreement.

E. HOLD HARMLESS

1. The Grantee agrees to indemnify, defend, and save harmless the State, its officials, agents and employees from any and all claims and losses accruing or resulting to any and all Grantee’s staff, contractors, subcontractors, suppliers, and other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Grant Agreement, and from any and all claims and losses accruing or resulting to any person, agency, firm, corporation who may be injured or damaged by the Grantee in performance of this Grant Agreement.
100

TERMS AND CONDITIONS

F. NONDISCRIMINATION

1. The Grantee agrees to comply with State and federal laws outlawing discrimination, including, but not limited to, those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment- related leave. (GC 12990 [a-f] and CCR, Title 2, Section 8103.)

G. AMERICANS WITH DISABILITIES ACT

1. The Grantee assures the State it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

H. DRUG-FREE WORKPLACE

1. The Grantee shall comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:

a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.

b. Establish a Drug-Free Awareness Program to inform employees about:

i. The dangers of drug abuse in the workplace.

ii. The person's or Organization/Agency's policy of maintaining a drug-free workplace.

iii. Any available counseling, rehabilitation, and employee assistance programs.

iv. Penalties that may be imposed upon employees for drug abuse violations.

c. Every employee who works on the Project will:

i. Receive a copy of the company's drug-free workplace policy statement.

ii. Agree to abide by the terms of the company's statement as a condition of employment on the Grant Agreement.

2. Failure to comply with these requirements may result in suspension of payments under this Grant Agreement, or termination of this Grant Agreement, or both, and Grantee may be ineligible for award of any future Grant Agreements if the department determines that any of the following has occurred:

a. The Grantee has made false certification or violated the certification by failing to carry out the requirements, as noted above. (GC 8350 et seq.)

I. LAW ENFORCEMENT AGENCIES

1. All law enforcement Organization/Agency Grantees shall comply with California law regarding racial profiling. Specifically, law enforcement Organization/Agency Grantees shall not engage in the act of racial profiling, as defined in California Penal Code Section 13519.4. 101

TERMS AND CONDITIONS

J. LABOR CODE/WORKERS' COMPENSATION

1. The Grantee is advised and made aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Grant Agreement, (refer to Labor Code Section 3700).

K. GRANT APPLICATION INCORPORATION

1. The Grantee agrees the Grant Application and any subsequent changes or additions approved or required by the State is hereby incorporated into this Grant Agreement.

L. STATE LOBBYING

1. The Grantee is advised that none of the funds provided under this Grant Agreement may be used for any activity specifically designed to urge or influence a state or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any state or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a state official, whose salary is supported by this Grant Agreement, from engaging in direct communications with the state or local legislative officials, in accordance with customary state and/or local practice.

M. REPRESENTATION AND WARRANTIES

1. The Grantee represents and warrants that:

a. It is validly existing and in good standing under the laws of the State of California, has, or will have the requisite power, authority, licenses, permits, and the like necessary to carry on its business as it is now being conducted and as contemplated in this Grant Agreement, and will, at all times, lawfully conduct its business in compliance with all applicable federal, state, and local laws, regulations, and rules.

b. It is not a party to any Grant Agreement, written or oral, creating obligations that would prevent it from entering into this Grant Agreement or satisfying the terms herein.

c. If the Grantee is a Nonprofit Organization/Agency, it will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California tax - exempt status. If the Grantee subcontracts with a Nonprofit as part of this Grant Agreement, the Grantee shall ensure the Nonprofit will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California tax-exempt status.

d. All of the information in its Grant Application and all materials submitted are true and accurate.

N. AIR OR WATER POLLUTION VIOLATION

1. Under the state laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution. 102

TERMS AND CONDITIONS

O. GRANTEE NAME CHANGE

1. Grantee agrees to immediately inform the State, in writing, of any changes to the name of the person within the Organization/Agency with delegated signing authority.

2. An Amendment is required to change the Grantee's name, as listed on this Grant Agreement. Upon receipt of legal documentation of the name change, the State will process the Amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said Amendment.

P. RESOLUTION

1. A county, city, district, or other local public body shall provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body, which by law, has authority to enter into a Grant Agreement, authorizing execution of the Grant Agreement.

Q. PAYEE DATA RECORD FORM STD. 204

1. This form shall be completed by all non-governmental Grantees.

R. FINANCIAL INFORMATION SYSTEM FOR CALIFORNIA GOVERNMENT AGENCY TAXPAYER ID FORM

1. This form shall be completed by all Grantees.

S. CONFLICT OF INTEREST

1. This section serves to make the Grantee aware of specific provisions related to current or former state employees. If Grantee has any questions regarding the status of any person rendering services or involved with the Grant Agreement, the Grantee shall contact the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) immediately for clarification.

2. Current State Employees:

a. No officer or employee shall engage in any employment, activity, or enterprise, from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required, as a condition of regular state employment.

b. No officer or employee shall contract on their own behalf, as an independent Grantee, with any state agency to provide goods or services.

3. Former State Employees:

a. For the two-year period from the date they left state employment, no former state officer or employee may enter into a contract in which they engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to this Grant Agreement while employed in any capacity by any state agency.

b. For the 12-month period from the date they left state employment, no former state officer or employee may enter into a contract with any state agency if they were employed by that state agency in a policy-making position in the same general subject area as the proposed Grant Agreement within the 12-month period prior to their leaving state service.

4. The authorized representative of the Grantee Organization/Agency, named within this Grant Agreement, warrants their Organization/Agency and its employees have no personal or financial interest and no present or past employment or activity, which would be incompatible with 103

TERMS AND CONDITIONS

participating in any activity related to this Grant Agreement. For the duration of this Grant Agreement, the Organization/Agency and its employees will not accept any gift, benefit, gratuity or consideration, or begin a personal or financial interest in a party who is associated with this Grant Agreement.

5. The Grantee Organization/Agency and its employees shall not disclose any financial, statistical, personal, technical, media-related, and/or other information or data derived from this Grant Agreement, made available for use by the State, for the purposes of providing services to the State, in conjunction with this Grant Agreement, except as otherwise required by law or explicitly permitted by the State in writing. The Grantee shall immediately advise the State of any person(s) who has access to confidential Project information and intends to disclose that information in violation of this Grant Agreement.

6. The Grantee will not enter into any Grant Agreement or discussions with third parties concerning materials described in paragraph five (5) prior to receiving written confirmation from the State that such third party has a Grant Agreement with the State, similar in nature to this one.

7. The Grantee warrants that only those employees who are authorized and required to use the materials described in paragraph 5 will have access to them.

8. If the Grantee violates any provisions in the above paragraphs, such action by the Grantee shall render this Grant Agreement void.

T. EQUIPMENT-USE TERMS

1. The Grantee agrees any equipment purchased under this Grant Agreement shall be used for impaired driving efforts.

2. Law Enforcement Projects:

a. Oral Fluid Drug Screening Devices and Cannabis/Marijuana Breath Testing Equipment - The Grantee agrees to ensure all personnel using road-side drug testing equipment, including oral fluid drug testing devices and/or cannabis/marijuana breath testing devices, purchased with grant funds from this Grant Agreement, are trained to recognize alcohol and drug impairment.

At a minimum, personnel using these devices should receive Standardized Field Sobriety Testing training. These personnel are also encouraged to attend Advanced Roadside Impaired Driving Enforcement and Drug Recognition Evaluator training. Prior to using these devices, the Grantee agrees to obtain permission from their local prosecutor’s office, establish a policy ensuring appropriate use, and require the staff using these devices to receive appropriate training, which may include training from the manufacturer. This will help ensure the equipment is used appropriately. The Grantee shall advise the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) of any legal challenges or other items of significance that may affect the use or legal acceptance of these devices.

Additionally, the State may request additional information about the performance of these devices, including information about their use, accuracy, and feedback from personnel using the devices.

b. Law Enforcement Vehicles – The Grantee agrees any law enforcement vehicles purchased with Grant funds, from this Grant Agreement, will be primarily used for the enforcement of driving under the influence laws and/or providing public education, related to the dangers of driving under the influence. Additionally, any vehicle purchased using funds from this Grant Agreement shall comply with all California Vehicle Code and California Code of Regulation requirements. The State may require the Grantee to mark these vehicles with a decal and/or emblem, indicating the vehicle is used for driving under the influence enforcement. 104
Schedule A

Orange Police Department

The Grantor determined awards and adjustments based on the Project’s merit, operational scale, compliance with the Request for Application (RFA), and program regulations. Certain activities or budget items proposed in Schedule A may have been deemed ineligible for funding. The final, binding list of authorized activities and expenses is set forth in Schedule B - Detailed Budget Estimate.

Project Description
During 2025, DUI as a “primary collision factor” dropped from #2 to #3 when compared to 2024 statistics. This would not have been possible without our aggressive enforcement efforts and increased activity by our SFST/ARIDE/DRE trained officers. To highlight the department's commitment to keeping our roadways safe, our agency effected 513 DUI arrests in 2025. This has been the result of aggressive enforcement targeting impaired driving, but also due to our self-funded full-time DUI enforcement officer. These efforts are made possible by grant related activities funded by OTS and the CHP “Cannabis” grants. '

The OPD was awarded 24 DUI saturations through the 24/25 CHP "Cannabis" grant. For the 25/26 cycle, we are requesting 30 DUI Saturations so we may maintain our high-level enforcement efforts. These operations will be imperative in the absence of our previously mentioned dedicated DUI enforcement unit, which is vacant at this time.

The training of our police officers is an essential component of our plan to reduce traffic -related injuries and deaths in the City of Orange. SFST, ARIDE, and DRE training are crucial elements of this plan. Providing training to officers will equip them with the necessary skills to keep the community safe. With an influx of new officers to our agency due to attrition and other staffing factors, we intend to host (2) SFST courses immediately followed by (2) ARIDE courses during the proposed grant cycle. Additionally, we intend to host (1) DRE Recertification course to maintain our experienced DRE cadre. We will send (1) qualified officer to SFST Instructor school. IACP IDTS conference and backfill listed in budget.

Problem Statement
The City of Orange is the seventh largest city in Orange County and 43rd in the state. With a population of approximately 140,000, it serves as an integral component of the county's transportation infrastructure supporting five major freeways, a Metrolink railroad terminal and the 241/261 Eastern Transportation Corridor.

The Orange Traffic Study of 2024 identified an average vehicle flow of approximately 3,531,322 trips daily, which was a 2.4% increase from 2022.

The City of Orange experienced 14 fatal traffic collisions in 2022, 9 in 2023, and 5 in 2024. In 2025, the Orange Police Department investigated 6 fatal traffic collisions, with only one of those being DUI -related.

These results would most likely be much larger given the increase in traffic flow had it not been for our aggressive impaired driving efforts and increased activity by certified DRE, ARIDE and SFST trained officers.

The overall goal is to continue to reduce the number of victims impacted by impaired drivers and other traffic related offenses, which can be accomplished by providing essential training within the department and throughout the county. The primary concern is that of impaired drivers and their impact on society. It remains evident, year after year, that our grant funded DUI/DUID enforcement efforts are having a positive impact.

A growing concern for the community is the development and expansion of Chapman University. The University has aggressively expanded their footprint to include many new off-sight satellite campuses located throughout the downtown area. Recreational cannabis uses amongst students statewide, with limited public education regarding the effects of impairment, lends itself to an increase of DUI crashes.

Chapman University hosts a wide variety of events in and around their campuses, most notably at the Musco Center for the Arts. Additionally, the City of Orange opened a multi-level free parking structure adjacent to Chapman University and the downtown area which holds more than 600 vehicles. The parking structure serves to accommodate the continuously evolving downtown area. Old Towne Orange, once known for antique and specialty shops, has now become a robust entertainment district featuring fine dining res taurants, multiple bars and coffee houses. These prominent locations have significantly increased the amount of vehicle traffic in the downtown area, which has also led to an increase in DUI related crashes and arrests.

105
Schedule A

In addition to our downtown area, the City of Orange holds a large outdoor shopping mall, The Outlets of Orange. Filled with retail stores, The Outlets offer several restaurants and businesses licensed for the sale of alcohol. Traffic is impacted in the area daily, as the mall is a popular shopping and entertainment experience for residents and tourists visiting nearby theme parks. Also is proximity to The Outlets is Angel Stadium and the Honda Center. While those venues are situated outside of our city limits, they are both located within one - quarter mile of our border and contribute to a considerable increase for vehicular and pedestrian traffic.

Patrons park their vehicles in various areas around the adjoining businesses and neighborhoods to avoid paying the parking fee at the venues. During these event periods, there is heavy pedestrian and vehicle traffic in and around the areas of Katella and Orangewood. The events held at these venues contribute to an increase of intoxicated pedestrians, bicyclists and motorists in the city.

Public awareness is key to voluntary compliance of the law. High visibility and public awareness efforts are essential to reducing traffic collisions. Having the ability to deploy teams of officers to conduct high visibility enforcement activity at locations with a high crash rate or a corridor known to have an increased density of DUI drivers, significantly raises awareness and could dissuade impaired drivers from entering the roadway.

This could not be accomplished without CHP funding for new officer training and dedicated enforcement operations.

To accomplish these goals, the Orange Police Department is committed to reducing traffic related injuries and fatalities through an aggressive educational and enforcement campaign, targeting impaired/unlicensed drivers, repeat DUI offenders and other traffic related violators. To highlight the department's commitment to keeping our roadways safe, we made 513 DUI arrests in 2025. This was possible in part to our full -time DUI officer, but largely due to additional funds from the Office of Traffic Safety and the CHP "Cannabis" grant to conduct additional DUI saturations. Funding provided to send officers to SFST, ARIDE and DRE trainings has proven to increase the confidence of officers to conduct effective enforcement. For the first time in several years, our dedicated DUI enforcement unit is vacant due to staffing-related issues. While these issues will not affect our ability to staff regular saturation operations, we expect our arrest numbers to decrease until this position is staffed once again. The request for additional saturation operations will help offset this vacancy until it can be staffed, which we anticipate will occur sometime during this grant cycle.

For the 26/27 year, we are committed to conducting 30 OTS funded DUI saturations. The OPD is looking to increase the number of impaired drivers we remove from the roadway by requesting additional funding through the CHP "Cannabis" grant. These funds will allow the Orange Police Department to continue to be a leader in DUI enforcement and shows our commitment to keeping our roadways safe.

Performance Measures/Scope of Work (Proposed Solution)
The Orange Police Department plans to continue its efforts to expand SFST, ARIDE and DRE certified officers and training cadre. The department’s ability to teach not only our own officers, but officers throughout Southern California, creates a synergistic atmosphere required to positively impact impaired driving. The OPD has always placed an emphasis on DUI training, only bound by our financial limitations. During our 26/27 grant cycle, we will host (2) SFST courses which will be open to outside agencies; we will train (10) OPD officers and (10) allied agency officers per course. We will also host (2) ARIDE courses which will be open to outside agencies; we will train (5) OPD officers and (15) allied agency officers per course. Additionally, we will host (1) DRE Recertification course which will also be open to outside agencies. We will recertify (4) OPD DRE's who are anticipated to expire during the grant cycle, and (10) outside agency officers. We are committed to sending (1) OPD officer to SFST Instructor school, which should satisfy the current needs our of training cadre, pending any future instructor departures. Due to natural attrition, the Orange Police Department expects to continually hire new officers for the next several years. These new officers will require SFST and ARIDE training. In providing the aforementioned training, the department is committed to working collaboratively with our regional partners to address the issue of impaired driving for the long term. To aid in our mission to provide training to our personnel and allied partners, we request the ability to backfill our officers as noted below, should it be necessary. The increased number of proficient officers investigating DUI's will assist us in working towards the goal of impacting impaired driving. The ongoing education of our current DRE's is important to the effectiveness of our program and success of our enforcement. We request the ability to send (3) DRE's to the IACP IDTS conference in Anaheim, CA. The cost would be minimal for this conference due to the location.

106
Schedule A

Finally, we request the ability to conduct an additional (30) DUI saturation operations during the 26/27 grant cycle. These operations will assist us with our goal of decreasing DUI collisions by 10% while increasing our overall DUI arrests by 5%, both of which can be measured on a quarterly basis. This will be imperative in the temporary absence of our dedicated DUI enforcement unit.

OBJECTIVES:

• Send (10) eligible Orange Police Department Officers to (2) OPD hosted SFST Training course on overtime, regular time, and/or hire backfill. (Estimated to be completed in Q1 & Q3) • (4) Instructors to provide instruction for (2) SFST Training courses hosted by OPD on overtime, regular time, and/or hire backfill. (To be completed in Q1 & Q3) • Send (5) officers to (2) OPD hosted ARIDE Training courses on overtime, regular time, and/or hire backfill. (Estimated to complete in Q2 or Q4)
• (2) Instructors to provide instruction for (2) ARIDE Training courses hosted by OPD on overtime, regular time, and/or hire backfill. (To be completed in Q2 & Q4) • Send (1) eligible Orange Police Department officer to a DRE course on overtime, regular time, and/or hire backfill. (Including cost of field certifications) (Completed by Q4) • Send (1) eligible Orange Police Department officer to SFST Instructor course on overtime, regular time, and/or hire backfill (Estimated completed by Q3)
• Send (4) DRE trained officers to (1) OPD hosted DRE recertification course on overtime, regular time, and/or hire backfill (Estimated to be completed by Q4)
• (2) Instructors to provide instruction for (1) OPD hosted DRE recertification course on overtime, regular time, and/or hire backfill. (To be completed in Q2) • Conduct (30) DUI saturation patrols on overtime (Q1=7, Q2=7, Q3=8, Q4=8): AIM to increase DUI arrests by 5%
• Send (3) DRE trained officers to the upcoming IACP Impaired Driving and Traffic Safety Conference in Anaheim, CA from August 21, 2026, to August 23, 2026. (Including cost of training/registration -- **travel/lodging not needed due to regional proximity**)

Project Performance Evaluation
As part of our computer statistics crime and traffic program, internal quarterly presentations will be presented to OPD staff to evaluate overall effectiveness. The analysis of traffic collisions, including DUI collisions, will be presented. This will help us achieve our goals and evaluate the appropriate use of police resources.

The Orange Police Department staff will record and maintain statistics related to impaired driving arrests.

Maintaining these statistics will allow the department to accurately report the effectiveness of our training and efforts or substantiate a need for additional training by in-house experts.

The Orange Police Department staff will keep any applicable notes as well as course/instructor evaluation documents over the duration of the grant period. These notes and evaluations will assist in proper record keeping and quality control. The review of these records will allow for adjustments to be made when necessary to provide the highest quality of training possible.

Program Sustainability
The Orange Police Department strives to become independent of federal funding in the future. This will be accomplished by building a cadre of highly trained DUI officers/instructors which will reduce the need to seek outside agency assistance. The OPD is already recognized within the Southern California region as a tenured training site for DUI enforcement. OPD officers have frequently topped the county -wide list of top performing DUI officers. Most recently, an OPD officer was recognized by Mothers Against Drunk Driving for earning the Triple Century and Top Cop awards in 2023 and 2024, as well as the Law Enforcement Leadership award in 2024. In 2025, the OPD arrested 513 impaired drivers. Although our overall arrests are down slightly from 2024, we did achieve a 33% reduction in DUI-related fatalities. This reduction is evidence of the aggressive enforcement efforts by our officers which has a positive impact in the community. This level of enforcement and expertise is not uncommon for our agency, and we aim to continue providing high quality trainings both internally and to allied agencies to aid in the reduction of impaired driving. Our sustainability is dependent on the immediate training of new OPD officers. Inherently, these officers are less capable of identifying and arresting impaired drivers. By offering SFST and ARIDE training to agencies free of charge, we can help assure more officers are able to receive the important and evolving information. 107
Schedule A

By conducting 30 DUI saturation patrols, these officers will be able to put into practice the skills they have learned in the SFST, ARIDE and DRE courses.

Administrative Support
The Orange Police Department staff will incorporate data collection throughout the project in order to evaluate program effectiveness. Staff to be involved in monitoring project progress will include a Traffic Lieutenant, Traffic Sergeant, Crime Analyst, and the Financial Analyst. The Orange Police Department wi ll quantify its performance during the grant cycle by recording the number of Orange Police Department and outside agency employees who attend and successfully complete SFST courses we host.

The Orange Police Department has successfully managed and operated several traffic and DUI -related grants (OTS STEP) and has both the fiscal staff and resources to properly administer grant funds. Because of our agencies experience, there will be minimal need for training or other startup delays for this grant. The Orange Police Department administrative staff strongly supports our mission to stop impaired driving. All requested documentation and proof of proper fund use will be maintained and provided in a timely manner. 108
Schedule B
Detailed Budget Estimate
Award Number Organization/Agency Total Amount
30870 Orange Police Department $330,997.68
Cost Category Line Item Name Total Cost to Grant
Other Direct Costs
Registration Fees $2,100.00
Category Sub-Total $2,100.00
Personnel
DRE Field Certification - Attend $3,054.92
DRE Training - Attend $6,873.58
SFST Instructor Training - Attend $5,078.00
DRE Recertification - Attend $4,062.40
DRE Recertification - Instruct $2,258.69
ARIDE Training - Attend $15,274.62
ARIDE Training - Instruct $9,034.78
SFST Training - Attend $45,823.87
SFST Training - Instruct $15,128.38
Backfill $109,451.21
DUI Saturation Patrol $112,609.73
Category Sub-Total $328,650.18
Travel
Conference Travel $247.50
Category Sub-Total $247.50
Grant Total $330,997.68
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Schedule B-1
Budget Narrative

Orange Police Department

Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.

Other Direct Costs

Registration Fees
$2,100.00
2026 IACP Impaired Driving & Traffic Safety Conference 8/21-23, 2026 Anaheim, CA 3 Motor Officers x $700 Registration = $2,100

Personnel

DUI Saturation Patrol
$112,609.73
30 DUI Saturations x 3 Motor Officers x 7 hours x OT/$125 x 1.56% Benefit = $79,978.50 & 30 DUI Saturations x 1 Sergeant x 7 hours x OT/$153 x 1.56% Benefit = $32,631.23

Backfill
$109,451.21

OT for Backfill $107,770 x 1.56% Benefit = $109,451.21
20 Officers for SFST Training, 24 hrs x 20 officers = $60,000, 10 Officers for ARIDE Training, 16 hrs x 10 officers = $20,000, 1 officer for DRE Training (classroom + field certification), 104 hrs x 1 officer = $13,000, 4 officers for DRE Recertification Training, 8 hrs x 4 officers = $4,000.

SFST Training - Instruct
$15,128.38

Day 1 & 2 of instruction - 2 instructors for (8hrsx 2days) 16 hours each. 1 Sergeant x 16 hours x OT/$153= $2,448 & 1 Motor Officers x 16 hours x OT/$125= $2,000 = $4,448. Day 3 (Wet Lab) 4 instructors for 8 hours each. 1 Sergeant x 8 hours x OT/$153= 1224 & 3 Motor Officers x 8 hours x OT/$125 = $3,000. TOTAL COST PER COURSE $7,448 x 1.56% Benefit = $7,564.19 x 2 Courses =$15,128.38 ALL INSTRUCTORS MUST HAVE CURRENT CERTIFICATION; ALL STAFF MUST BE INSTRUCTING THE CLASS AND MAY ONLY CHARGE TIME FOR THE PORTION INSTRUCTING.

SFST Training - Attend
$45,823.87
Reg or OT budgeted at OT rate to attend 2 SFST Courses: 10 Officers x 24 hours x OT/$94 x 1.56% Benefit x 2 Courses = $45,823.87

ARIDE Training - Instruct
$9,034.78

Reg or OT budgeted at OT rate to Instruct 2 ARIDE courses: 1 Sergeant x 16 hours x OT/$153 x 1.56% Benefit x 2 Courses = $4,972.38 & 1 Motor Officer x 16 hours x OT/$125 x 1.56% Benefit x 2 Courses = $4,062.40

ALL INSTRUCTORS MUST HAVE CURRENT CERTIFICATION, ALL STAFF MUST BE INSTRUCTING THE CLASS AND MAY ONLY CHARGE TIME FOR THE PORTION INSTRUCTING.

ARIDE Training - Attend
$15,274.62
Reg or OT budgeted at OT rate to attend 2 ARIDE courses: 5 officers x 16 hours x OT/$94 x 1.56% Benefit x 2 Courses = $15,274.62

110
Schedule B-1
Budget Narrative

Orange Police Department

DRE Recertification - Instruct
$2,258.69

Reg or OT budgeted at OT rate to instruct 1 DRE Recert course: 1 Sergeant x 8 hours x OT/$153 x 1.56% Benefit = $1,243.09 & 1 Motor Officer x 8 hours x OT/$125 x 1.56% Benefit = $1,015.60 ALL INSTRUCTORS MUST HAVE CURRENT CERTIFICATION; ALL STAFF MUST BE INSTRUCTING THE CLASS AND MAY ONLY CHARGE TIME FOR THE PORTION INSTRUCTING.

DRE Recertification - Attend
$4,062.40
Reg or OT budgeted at OT rate to attend 1 DRE Recertification course: 4 Motor Officers x 8 hours x OT/$125 x

1.56% Benefit = $4,062.40

SFST Instructor Training - Attend
$5,078.00
Reg or OT budgeted at OT rate to attend SFST Instructor Course: 1 Motor Officer x 40 hours x OT/$125 x 1.56% Benefit = $5,078

DRE Training - Attend
$6,873.58
Reg or OT budgeted at OT rate to attend 1 DRE Course: 1 Officer x 72 hours x OT/$94 x 1.56% Benefit = $6,873.58

DRE Field Certification - Attend
$3,054.92
Reg or OT budgeted at OT rate to attend Field Certification: 1 Officer x 32 hours x OT/$94 x 1.56% Benefit = $3,054.92

Travel

Conference Travel
$247.50

2026 IACP Impaired Driving & Traffic Safety Conference 8/21-23, 2026, Anaheim, CA 3 Motor Officers: LUNCH ((14.25+14.25+19) *3), PARKING:(35*3) CITY TO CITY IS 7.3 MILES ONE WAY

111
RESOLUTION NO. 11712

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE ACCEPTING FUNDS IN
THE AMOUNT OF $ 330,997.68 FROM THE

STATE OF CALIFORNIA HIGHWAY PATROL

FOR THE CANNABIS TAX FUND GRANT

PROGRAM, AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE GRANT

PROGRAM AGREEMENT AND RELATED
DOCUMENTS.

WHEREAS, the City of Orange (City) is interested in participating in the Cannabis Tax Fund Grant Program (“the Grant Program”), which is made available through the Control, Regulate and Tax Adult Use of Marijuana Act of 2016, or Proposition 64, and administered by the California Highway Patrol to support local law enforcement for education, prevention and enforcement of impaired driving laws in the City; and

WHEREAS, following the City’s submittal of Grant Program application to the California Highway Patrol, the City was awarded $330,997.68 in grant funds (“Grant”); and

WHEREAS, the City is familiar with and willing and able to comply with each of the terms, conditions and limitations imposed upon the City pursuant to the Grant in implementing education, prevention and enforcement of impaired driving laws in the City; and

WHEREAS, in order to be considered eligible to receive Grant Program funding, the City must adopt a Resolution accepting the award and execute the required documents in relation thereto.

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

1. The submission of the application for the Grant Program funding on behalf of the City is hereby ratified and approved.

2. The City of Orange hereby accepts an award in the amount of $330,997.68 from the California Highway Patrol for the Grant Program.

3. The City hereby agrees to comply with each and all of the terms, conditions and limitations imposed by the Grant Program.

4. The City Manager is hereby authorized and directed, on behalf of the City, to execute any and all documents related to acceptance of Grant Program funding or implementation of the Grant Program including, without limitation, agreements, amendments, extensions, and any other documents related thereto.

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2 5. The City Manager is hereby authorized and directed to establish all required accounts and make any and all expenditures, appropriations, transfers, and/or distributions of funds on behalf of the City as are necessary and appropriate to carry out the purpose and intent of this Resolution.

6. Grant Program funds received hereunder shall not be used to supplant ongoing law enforcement expenditures.

ADOPTED this____ day of ____________________, 2026.

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney,
City of Orange

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF ORANGE )

I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the day of , 2026, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange
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Agenda Item
Orange City Council
Item #: 3.6. 7/28/2026 File #: 26-0416
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Second Amendment to Agreement with Crosstown Electrical & Data, Inc. for On-Call Maintenance and Repair Services for Advance Traffic Management System and Communication System

2. SUMMARY
The City currently has an agreement with Crosstown Electrical & Data, Inc. to provide routine maintenance, minor upgrades, and emergency repair services necessary to maintain and operate the City’s Advanced Traffic Management and Communication systems. The amount of the original agreement and First Amendment has been expended. The proposed Second Amendment will increase the amended agreement amount by $130,000 for a total amount not to exceed $220,000 and extend the term of the contract by an additional year.

3. RECOMMENDED ACTION
Approve the Second Amendment to Agreement with Crosstown Electrical & Data, Inc. (Agreement No. 7616) for On-Call Maintenance and Repair Services for Advance Traffic Management System and Communication System; and authorize the Mayor and the City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expense for this amendment is $130,000 and will be funded through General Fund (100):
100-5702-56999- Other Repair/Maintenance Services $30,000 100-5702-55999- Other Prof./Technical Services $100,000 Total $130,000

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

6. DISCUSSION AND BACKGROUND
The City’sAdvanced Traffic Management System (ATMS) comprises the Traffic Management Center (TMC), Closed Circuit Television (CCTV) system, and communications network. These systems utilize a combination of copper wire, fiber optics, and wireless broadband to provide communication between the TMC and field equipment. The network also provides connections to and from various city facilities, including fire stations and parks. The communication system requires routine maintenance, minor upgrades, and emergency repairs resulting from malfunctions or damage that occur due to obsolete equipment, traffic collisions, or construction activities. Moreover, as the city City of Orange Printed on 7/23/2026Page 1 of 2
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Item #: 3.6. 7/28/2026 File #: 26-0416
occur due to obsolete equipment, traffic collisions, or construction activities. Moreover, as the city lays the groundwork for a future real-time crime center that will rely on the functionality of many of the above-mentioned components, communication system maintenance is critically important.

A two-year, $60,000 maintenance agreement with Crosstown Electrical & Data, Inc. was approved by City Council on November 14, 2023, after a competitive procurement process. That agreement also contained provisions for three separate one-year, $30,000 extensions that, if exercised, would result in a five-year, $150,000, contract.

The First Amendment to the agreement, approved by the City Manager on July 31, 2025, increased contract capacity by $30,000 and extended the term by one additional year. A Second Amendment is now required to: (1) extend the term into a fourth year, (2) provide contract capacity to handle recurring maintenance needs for the new fiscal year, and (3) provide additional contract capacity necessary to implement certain field upgrades that are expected to extend the life expectancy of the city’s aging communications system.

The Second Amendment would extend the term of the contract by one year and increase the limits by $130,000, of which $30,000 is for recurring annual maintenance and $100,000 is for the field upgrades, for an agreement total of $220,000. Council action is being requested because the resulting contract limit exceeds the amount originally approved. Funding for the Second Amendment was included in the approved Fiscal Year 2026-2027 (FY27) operating budget. No additional appropriation is being requested.

7. ATTACHMENTS
· Second Amendment
City of Orange Printed on 7/23/2026Page 2 of 2
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115
Agenda Item
Orange City Council
Item #: 3.6. 7/28/2026 File #: 26-0416
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Second Amendment to Agreement with Crosstown Electrical & Data, Inc. for On-Call Maintenance and Repair Services for Advance Traffic Management System and Communication System

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

6. DISCUSSION AND BACKGROUND
The City’sAdvanced Traffic Management System (ATMS) comprises the Traffic Management Center (TMC), Closed Circuit Television (CCTV) system, and communications network. These systems utilize a combination of copper wire, fiber optics, and wireless broadband to provide communication between the TMC and field equipment. The network also provides connections to and from various city facilities, including fire stations and parks. The communication system requires routine maintenance, minor upgrades, and emergency repairs resulting from malfunctions or damage that occur due to obsolete equipment, traffic collisions, or construction activities. Moreover, as the city City of Orange Printed on 7/23/2026Page 1 of 2
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Item #: 3.6. 7/28/2026 File #: 26-0416
occur due to obsolete equipment, traffic collisions, or construction activities. Moreover, as the city lays the groundwork for a future real-time crime center that will rely on the functionality of many of the above-mentioned components, communication system maintenance is critically important.

7. ATTACHMENTS
· Second Amendment
City of Orange Printed on 7/23/2026Page 2 of 2
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117

SECOND AMENDMENT
TO

ON-CALL MAINTENANCE AND REPAIR SERVICES AGREEMENT
[Maintenance and Repair Services for Advance Traffic Management System and Communication System]

THIS SECOND AMENDMENT TO ON-CALL M AINTENANCE SERVICES
AGREEMENT (the “Second Amendment”) is made and entered into as of ________________, 2026, by and between the CITY OF ORANGE, a municipal corporation ( “City”), and CROSSTOWN ELECTRICAL & DATA, INC., a California corporation (“Contractor”), with reference to the following:

A. City and Contractor entered into an On -Call Maintenance and Repair Services Agreement (Agreement No. AGR-7616) dated November 11, 2023, which is incorporated herein by this reference (the “Original Agreement”); and

B. City and Contractor amended the Original Agreement to extend the term and increase the compensation by a First Amendment to On-Call Maintenance Services Agreement (Agreement No. AGR-7616.1) dated July 31, 2025 , which is incorporated herein by this reference (the “First Amendment”); and

C. City and Contractor desire to further amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement reflecting the Second Extension Term and increasing the Second Extension Term’s 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 Second Amendment are deemed and construed to refer to the Original Agreement, as implemented by this Second Amendment.

Section 3 Second Extension Term. Pursuant to Section 2.1.a of the Original Agreement, the City hereby extends the term of this Agreement to reflect the Second Extension Term commencing November 14, 2026, and terminating on November 13, 2027.

Section 4 Second Extension Compensation. The total not-to-exceed compensation for the services to be rendered as set forth in Section 2.1.a of the Second Extension Term’s compensation is increased by an additional ONE HUNDRED THOUSAND DOLLARS and 00/100 ($100,000.00) from the original Secon d Extension and Section 2. 1.a of the Second Extension Term is hereby amended in its entirety to read as follows:

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2 “Second Extension (the “Second Extension Term”) commencing November 14, 2026, and terminating November 13, 2027 , shall be an additional amount not to exceed ONE HUNDRED THIRTY THOUSAND DOLLARS and 00/100
($130,000.00) to be added to the Agreement, for a total compensation of TWO HUNDRED TWENTY THOUSAND DOLLARS and 00/100 ($ 220,000.00) without the prior written authorization of City. Compensation for the Second Extension Term, including contingencies, shall be based upon the same terms and conditions as contained in Exhibit B of this Agreement , with an increase in unit price of an additional two percent (2%) above the unit price under the First Extension.”

Section 5. Integration. This Second 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 Second Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this Second Amendment shall control and govern the rights and obligations of the parties.

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

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

“CONTRACTOR” “CITY”

CROSSTOWN ELECTRICAL & DATA, 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, 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. √
X
121
Agenda Item
Orange City Council
Item #: 3.7. 7/28/2026 File #: 26-0442
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Nathalie Adourian, City Attorney

1. SUBJECT
Second Amendment to Memorandum of Understanding with Milan REI X, LLC.

2. SUMMARY
On July 22, 2025, the City Council approved a Memorandum of Understanding (MOU) with Milan REI X, LLC establishing a framework for the City to expeditiously process certain development applications while Milan agreed to toll and ultimately withdraw its pending Senate Bill 330 (Builder's Remedy) applications upon satisfaction of the MOU's terms. The First Amendment extended the processing deadlines and related Builder's Remedy Tolling Agreements. The proposed Second Amendment provides Milan the option to extend the applicable tolling agreement if litigation is filed challenging the City's approval of the Residential Project and/or the Open Space Project, thereby preserving the parties' negotiated framework while the litigation is resolved.

3. RECOMMENDED ACTION
Approve the second amendment to the Memorandum of Understanding with Milan REI X, LLC; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
None.

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

6. DISCUSSION AND BACKGROUND
On July 22, 2025, the Orange City Council approved a Memorandum of Understanding (MOU) with Milan REI X, LLC (Milan). The MOU established a cooperative framework under which the City agreed to use its best efforts to expeditiously process Milan's development applications while Milan agreed to toll and ultimately withdraw its pending Senate Bill 330 (Builder's Remedy) applications, subject to the terms of the agreement.

The MOU contemplated the processing of the following projects:
· Mabury-22 (22 single-family homes north of Santiago Creek); · Arena Residential Project (30 residential units at 6146 E. Santiago Canyon Road); and · Sully-Miller Open Space Project.

The MOU did not approve any development project or guarantee approval of any application. Rather, City of Orange Printed on 7/23/2026Page 1 of 3
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The MOU did not approve any development project or guarantee approval of any application. Rather, it established a process for the City to review each project in accordance with applicable law while preserving the parties' negotiated rights and obligations.

Prior to execution of the MOU, Milan submitted preliminary Builder's Remedy applications in November 2023, resulting in the execution of Builder's Remedy Tolling Agreements while the parties pursued the negotiated framework.

First Amendment
On May 26, 2026, the City Council approved the First Amendment to the MOU. The amendment:
· Extended the Builder's Remedy Tolling Agreements through August 21, 2026; · Extended the City's target approval deadline to August 21, 2026; · Authorized the City Manager to approve additional 30-day extensions, not to exceed six months in total, upon determining that each extension is in the City's best interest; · Required Milan to provide written progress updates regarding the Mabury-22 Project, Arena Residential Project, and Sully-Miller Open Space Project; and · Required that any administrative extension not materially impair the City's ability to enforce the MOU.

Second Amendment
The proposed Second Amendment addresses a circumstance not expressly addressed in the original MOU or the First Amendment.

If the City approves the Arena Residential Project and/or the Sully-Miller Open Space Project, those approvals could become the subject of litigation under CEQA or other applicable law. Such litigation could extend well beyond the term of the existing Builder's Remedy Tolling Agreements.

To address this possibility, the proposed Second Amendment allows Milan, at its option, to extend the applicable Builder's Remedy Tolling Agreement for the duration of any litigation challenging either project, including any appeals and the period during which an appeal may be filed.

The amendment is procedural in nature. It does not approve any development project, grant any development entitlement, modify the City's land use authority, or alter the City's obligations under CEQA, the Housing Accountability Act, the Density Bonus Law, or any other applicable law.

Public Benefit
The original MOU was negotiated as a comprehensive resolution intended to advance multiple public objectives, including:
· Processing a revised residential project in lieu of continued Builder's Remedy litigation; · Preservation and future public ownership of the Sully-Miller property as open space; · Completion of the Mabury-22 subdivision; and
· Resolution of multiple development matters through a coordinated agreement.

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Item #: 3.7. 7/28/2026 File #: 26-0442
The proposed Second Amendment preserves this negotiated framework if litigation delays implementation of either the Residential Project or the Open Space Project.

Consequences of Not Approving the Amendment
If litigation extends beyond the existing term of the Builder's Remedy Tolling Agreements, those agreements could expire before the litigation is resolved.

Expiration of the tolling agreements could substantially undermine the negotiated framework established by the MOU. In that circumstance, Milan could elect to discontinue participation in the negotiated process and instead pursue its previously submitted Builder's Remedy applications, consistent with its legal rights and the terms of the parties' agreement.

Should that occur, the City could lose the opportunity to realize the comprehensive public benefits contemplated by the MOU, including the coordinated path toward restoration and public ownership of the Sully-Miller property, while increasing uncertainty regarding future development of the site.

Approval of the proposed Second Amendment reduces this risk by preserving the parties' negotiated framework until any litigation has been finally resolved.

7. ATTACHMENTS
· Memorandum of Understanding Second Amendment
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Agenda Item
Orange City Council
Item #: 3.7. 7/28/2026 File #: 26-0442
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Nathalie Adourian, City Attorney

1. SUBJECT
Second Amendment to Memorandum of Understanding with Milan REI X, LLC.

3. RECOMMENDED ACTION
Approve the second amendment to the Memorandum of Understanding with Milan REI X, LLC; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
None.

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

The MOU did not approve any development project or guarantee approval of any application. Rather, City of Orange Printed on 7/23/2026Page 1 of 3
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Item #: 3.7. 7/28/2026 File #: 26-0442
The MOU did not approve any development project or guarantee approval of any application. Rather, it established a process for the City to review each project in accordance with applicable law while preserving the parties' negotiated rights and obligations.

Second Amendment
The proposed Second Amendment addresses a circumstance not expressly addressed in the original MOU or the First Amendment.

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Item #: 3.7. 7/28/2026 File #: 26-0442
The proposed Second Amendment preserves this negotiated framework if litigation delays implementation of either the Residential Project or the Open Space Project.

Consequences of Not Approving the Amendment
If litigation extends beyond the existing term of the Builder's Remedy Tolling Agreements, those agreements could expire before the litigation is resolved.

Approval of the proposed Second Amendment reduces this risk by preserving the parties' negotiated framework until any litigation has been finally resolved.

7. ATTACHMENTS
· Memorandum of Understanding Second Amendment
City of Orange Printed on 7/23/2026Page 3 of 3
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082654\19577637v3

SECOND AMENDMENT TO MEMORANDUM OF UNDERSTANDING

RECITALS

WHEREAS, on July 22, 2025 (the “Reference Date”), the City of Orange (“City”) and Milan REI X, LLC (“Developer”) (collectively, “Parties”) entered into a Memorandum of Understanding (“MOU”) regarding the development of various Developer properties.

WHEREAS, among other things, the MOU extended for one year from the Reference Date existing Builder’s Remedy Tolling Agreements (the “Agreements”) between the City and Developer, to July 22, 2026.

WHEREAS, on May 12, 2026, the City approved a First Amendment to the MOU that (i) extended the Agreements, (ii) extended the target date for the City, using its best efforts, to approve Developer’s 30-unit residential project (the “Residential Project”), (iii) extended the date for the City to process and approve, as appropriate and subject to applicable law, any necessary permits for development of the Developer’s Sully -Miller site into public open space (the “Open Space Project”), all until August 21, 2026 (collectively, the “Approval Deadline” extension), and (iv) authorized the City Manager to approve further extension of the Agreements and Approval Deadline in 30-day increments, up to six months from July 22, 2026.

WHEREAS, in the event the City approves either the Residential Project or the Open Space Project, or both of them, lawsuits could be filed, under CEQA or other law, challenging the City’s approval(s) or either or both projects (the “Project Lawsuit(s)”). The filing of such lawsuits could delay development of either or both projects and place either or both projects at risk. Due to this risk, the Parties desire to provide for an option for the Developer to further extend either or both Agreements for the duration of the Project Lawsuit (s), including appeals of any trial court decision(s).

WHEREAS, t he Parties desire to provide for the extension of either or both of the Builder’s Remedy Tolling Agreements in the event of the filing of Project Lawsuit(s), at the option of the Developer.

AGREEMENT

NOW, THEREFORE , in consideration of the foregoing and the mutual covenants contained herein, and for other good and valuable consideration, the receipt of sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Builder’s Remedy Tolling Agreement Extension . Upon the filing of a lawsuit , under CEQA or other law, challenging the City’s approval of the Residential Project or the Open Space Project, the Developer shall have the option, upon notice to the City, to extend the Builder’s Remedy Tolling Agreement for the project subject to the lawsuit, for up to the duration of the lawsuit , including the duration of any appeals, (the “Lawsuit Extension”), terminable at the Developer’s option . The Lawsuit Extension 128
2 shall also include the time in which any party has to file an appeal following a trial court decision, in the event no appeal is filed.

2. Multiple Lawsuits Extension. In the event lawsuits are filed, under CEQA or other law, challenging the City’s approval of both the Residential Project and the Open Space Project, the Developer shall have the option, upon notice to the City, to extend the Builder’s Remedy Tolling Agreement for each project, for up to the duration of the lawsuit, including the duration of any appeals, terminable at the Developer’s option, or to extend the Builder’s Remedy Tolling Agreement for only one project, for up to the duration of the lawsuit, including any appeals, terminable at the Developer’s option (the “Multiple Lawsuits Extension”). The Multiple Lawsuits Extension shall also include the time in which any party has to file an appeal of either lawsuit following a trial court decision, in the event no appeal of either case is filed.

MILAN REI X, LLC, A California limited liability company

By:

Christopher Nichelson
President of its Managing Agent

CITY OF ORANGE, a municipal corporation

By:

Daniel R. Slater, Mayor

ATTEST:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Nathalie Adourian, City Attorney √

129
Agenda Item
Orange City Council
Item #: 3.8. 7/28/2026 File #: 26-0381
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to Golden Coast Construction for Community Development Block Grant Fiscal Year 2025-2026 Americans with Disabilities Act Wheelchair Access Ramp Replacement

2. SUMMARY
Bids for the Community Development Block Grant Fiscal Year 2025-2026 Americans with Disabilities Act Wheelchair Access Ramp Replacement Project were received and opened on June 18, 2026 (Bid No. 25-26.19; SP-4330). Six bidders responded to the notice inviting bids. The apparent low bidder is Golden Coast Construction of La Habra, California in the amount of $61,988.

3. RECOMMENDED ACTION

2. Authorize the continuing appropriation of $97,723 from the Community Development Block Grant (310) Fiscal Year 2026 budget:
310-6411-88101-265092-20 ADA Improvements

3. Authorize the following budget transfer in Community Development Block Grant (310):

From: 310-6411-88101-265092-20 ADA Improvements $97,723 To: 310-6411-87102-265092-20 ADA Improvements $97,723

4. FISCAL IMPACT
The expense for this contract is $71,286.00 and will be funded through Community Development Block Grant (310):
310-6411-88102-265092-20 ADA Improvements

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

6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in Low- and Moderate-Income Areas within their City of Orange Printed on 7/23/2026Page 1 of 2
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eligible localities to construct public improvements in Low- and Moderate-Income Areas within their jurisdiction. The proposed wheelchair ramp improvements project was approved through the 2025- 2026 Action Plan process on June 24, 2025.

The scope of the project mainly includes removal of existing wheelchair access ramps and replacement with Americans with Disabilities Act (ADA) compliant wheelchair access ramps. This project will include the construction of ten ADA compliant access ramps at various locations. As a part of this project, detectable warning surfaces (truncated domes) will be installed per American with Disabilities Act Accessibility Guidelines (ADAAG) requirements.

The City Council previously approved an advertisement for bid on May 26, 2026. The bid solicitation was advertised on May 28, 2026 for a period of three weeks and bids were opened June 18, 2026.

Six bids were received as follows:

1. Golden Coast Construction $61,987.50

2. Pavement Rehab Company $94,000.00

3. Hardy & Harper, Inc. $125,000.00

4. Van Engineering Inc. $125,000.00

5. Gentry General Engineering, Inc. $159,650.00

6. Hzs Engineering and Construction $197,000.00
Construction is scheduled to begin in September 2026 and is expected to be completed within 30 calendar days.

7. ATTACHMENTS
· Contract with Golden Coast Construction
· Bid Abstract
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Agenda Item
Orange City Council
Item #: 3.8. 7/28/2026 File #: 26-0381
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to Golden Coast Construction for Community Development Block Grant Fiscal Year 2025-2026 Americans with Disabilities Act Wheelchair Access Ramp Replacement

3. RECOMMENDED ACTION

2. Authorize the continuing appropriation of $97,723 from the Community Development Block Grant (310) Fiscal Year 2026 budget:
310-6411-88101-265092-20 ADA Improvements

3. Authorize the following budget transfer in Community Development Block Grant (310):

From: 310-6411-88101-265092-20 ADA Improvements $97,723 To: 310-6411-87102-265092-20 ADA Improvements $97,723

4. FISCAL IMPACT
The expense for this contract is $71,286.00 and will be funded through Community Development Block Grant (310):
310-6411-88102-265092-20 ADA Improvements

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

6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in Low- and Moderate-Income Areas within their City of Orange Printed on 7/23/2026Page 1 of 2
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Item #: 3.8. 7/28/2026 File #: 26-0381
eligible localities to construct public improvements in Low- and Moderate-Income Areas within their jurisdiction. The proposed wheelchair ramp improvements project was approved through the 2025- 2026 Action Plan process on June 24, 2025.

The City Council previously approved an advertisement for bid on May 26, 2026. The bid solicitation was advertised on May 28, 2026 for a period of three weeks and bids were opened June 18, 2026.

Six bids were received as follows:

1. Golden Coast Construction $61,987.50

2. Pavement Rehab Company $94,000.00

3. Hardy & Harper, Inc. $125,000.00

4. Van Engineering Inc. $125,000.00

5. Gentry General Engineering, Inc. $159,650.00

6. Hzs Engineering and Construction $197,000.00
Construction is scheduled to begin in September 2026 and is expected to be completed within 30 calendar days.

7. ATTACHMENTS
· Contract with Golden Coast Construction
· Bid Abstract
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CONTRACT
[CDBG FY 2025-2026 Americans With Disabilities Act (ADA) Wheelchair Access Ramp Replacement (Bid No.25-26.19)]

THIS CONTRACT (the “Contract”) is made and ente red into as of ___ ___________, 2026 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and G COAST ENTERPRISE INC, a California corporation, dba GOLDEN COAST CONSTRUCTION (“Contractor”), who agree as follows.

ARTICLE 1
Work Performed

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

(1) The Construction Plans for CDBG FY 202 5-2026 Americans With Disabilities Act (ADA) Wheelchair Access Ramp Replacement (Drawing SP-4330) prepared for City by Darwin Taylor, and consisting of sheets numbered 1 through 1, inclusive (the “Plans”);

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

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

(4) The Labor Relations Forms attached as Attachment No. 3 and incorporated herein by this reference; and

(5) The Federal Provisions and Requirements attached as Attachment No. 4 and incorporated herein by this reference; and

(6) The Federal Prevailing Wage Rates attached as Attachment No. 5 and incorporated herein by this reference; and

(7) The Build America, Buy America (BABA) Requirements attached as Attachment No. 6 and incorporated herein by this reference; and

(8) The “City of Orange Standard Special Provisions;”
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2 (9) The Standard Plans; and

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

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

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

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

e. Unless and until otherwise notified in writing by City’s Public Works Director, City’s Principal Civil Engineer, Behrooz Nikjoo (“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 135
3 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 thirty (30) calendar days from such date, unless legal extension is granted in accordance with the terms set forth in the Greenbook. Time is of the essence in this Contract.

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

ARTICLE 3
Compensation

a. Contractor agrees to receive and accept an amount not to exceed SIXTY-ONE THOUSAND NINE HUNDRED EIGHTY-EIGHT DOLLARS and 00/100 ($61,988.00), unless said amount is amended by Contract Change Order approved by the City , as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by City, other than as provided below; (3) all risks of every description connected with the Work; (4) all expenses incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them. Retention amounts shall be withheld from progress payments as required by law unless Contractor provides securities in lieu of retention.

b. In addition to the scheduled Work to be performed by the Contractor, the parties recognize that additional, unforeseen work and services may be required by the Authorized City Representative. In anticipation of such contingencies, the sum of NINE THOUSAND TWO HUNDRED NINETY-EIGHT DOLLARS and 00/100 ($ 9,298.00) has been added to the total compensation of this Contract. The Authorized City Representative may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as the Authorized City Representative and the Contractor may agree upon in advance. Said additional work or services and the amount of compensation therefore, 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 136
4 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 SEVENTY-ONE THOUSAND TWO HUNDRED EIGHTY-SIX DOLLARS and 00/100 ($71,286.00).

ARTICLE 4
Licenses

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

ARTICLE 5
Guarantees

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

b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any pa rt 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.

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5 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 cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.

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

ARTICLE 7
Independent Contractor; Contractor not Agent

a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this Contrac t. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Contract. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under 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 w orkers' 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 138
6 classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

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

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

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

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

ARTICLE 9
Equal Employment Opportunity

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

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. 139
7 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 a pprenticeship. Contractor shall post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, ment al 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 acci dent, 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. Co ntractor shall not be responsible for (and such indemnity shall not apply to) any willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract.

b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.
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8 ARTICLE 12
Insurance

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

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

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

(2) Automobile Liability $1,000,000 per accident for bodily injury and property damage.

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

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

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

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

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

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

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

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

f. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Article 12. The endorsements shall be on forms acceptable to City. All certificates and endorsements are to be received and approved by City before the Work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

g. All insurance procured and maintained by Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.

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

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

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

j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.
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10 ARTICLE 13
Termination

City, acting through its City Manager or designee, reserves the right to terminate this Contract for any reason by giving five (5) days’ written notice of intent to terminate to Contractor.

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

ARTICLE 14
Maintenance and Inspection of Records

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

ARTICLE 15
Compliance with Laws

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

b. Contractor represents and warrants that it:

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

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

(3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and
143
11 (4) Has responded, and shall at all times during the term of this Contract respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

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

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

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

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

ARTICLE 16
Governing Law and Venue

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

ARTICLE 17
Integration and Amendment

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

144
12 b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.

ARTICLE 18
Notice

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

“CONTRACTOR” “CITY”

G Coast Enterprise Inc, dba Golden City of Orange
Coast Construction 300 E. Chapman Avenue
625 S. Palm Street, Suite A, Orange, CA 92866-1591
La Habra, CA 90631
Attn: Stephen Nolin Attn: Behrooz Nikjoo

Telephone: 562-201-6137 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] 145
X
146
13 “CITY”

CONTRACT, BONDS AND INSURANCE
APPROVED BY:

Connor Hyland
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”

G COAST ENTERPRISE INC, a California
corporation, dba GOLDEN COAST

CONSTRUCTION,

[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:

√

Stephen Nolin
Julia Nolin
President
Secretary
X
147

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ATTACHMENT NO. 1

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

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

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

Section 1771. Payment of general prevailing rate

Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prev ailing 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. 149

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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) 150

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for each day the unregistered lower tier subcontractor performs work in violation of the registration requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000). (2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and may waive the penalty for a first time violation that was unintentional and did not hinder the Labor Commissioner's ability to monitor and enforce compliance with the requirements of this chapter. (3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section 1725.5 due to the revocation of a previously approved registration. (4) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works contractor or subcontractor pursuant to paragraph (1). A higher tiered public works contractor or subcontractor may not require a lower tiered subcontractor to indemnify or otherwise be liable for any penalties pursuant to paragraph (1).
(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, in accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) and subparagraph (B) of paragraph (1) of subdivision (h). Review of a civil wage and penalty assessment issued under this subdivision may be requested in accordance with the provisions of Section 1742 . The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770), shall apply. (j)(1) Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of Section 1725.5 or this section, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public work.
(2) A stop order may be personally served upon the contractor or subcontractor by either of the following methods:
(A) Manual delivery of the order to the contractor or subcontractor personally. (B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public work and by thereafter mailing copies of the order by first class mail, postage prepaid to the con tractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 151

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

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

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

Section 1775. Penalties for violations

(a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor.
(2)(A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following:
(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.
(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.
(B)(i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor 153

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

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

(a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journey man, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771 , 1811, and 1815 for any work performed by his or her employees on the public works project. 154

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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 reque st was made. The public may not be given access to the records at the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.

The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft -Hartley trust fund ( 29 U.S.C. Sec. 186(c)(5) ) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor - management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 155

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

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

(a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or underg o testing, training, an examination, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written 156

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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 approvi ng 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 157

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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1 -to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or the specific task to which th e apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the director determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002 -03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Indust rial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
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(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contributions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i ) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department of Industrial Relations is able to verify that grant funds were used s olely for training apprentices. For purposes of this subparagraph, adequate records 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 recei ve 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 159

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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 h ours per day at not less than 1 ½ times the basic rate of pay.
160

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ATTACHMENT NO. 2

CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204

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

(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and f ormed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 161

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(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying w hat portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutu ally agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and conf er for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutua lly 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 neutr al mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 162

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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 civi l action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 163
Bid No. 25-26.19; Project No. SP-4330
Date of Bid Opening: 6/18/2026
Tel. No. (562)-201-6137 Tel. No. (714)-238-1444 Tel. No. (714)-444-1851 Tel. No. (949)-558-6186 Tel. No. (909)-330-1128 Tel. No. (949)-415-9556 NO. DESCRIPTION OF WORK QUANTITY UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Sawcut, Remove, and Construct New
Wheelchair Access Ramp with Detectable
Waring Surface per City St. 121 10 EA 7,800.00$ $78,000.00 $6,198.75 $61,987.50 $9,400.00 $94,000.00 $12,500.00 $125,000.00 $12,500.00 $125,000.00 $15,965.00 $159,650.00 $19,700.00 $197,000.00 $78,000.00 $61,987.50 $94,000.00 $125,000.00 $125,000.00 $159,650.00 $197,000.00 Hzr Engineering
1 3 4 5 6 2
Orange, CA
City of Orange: Summary of Bid Abstracts for:

Yorba Linda, CA Lake Forest, CA
Grand Total

ENGINEER'S ESTIMATE
CDBG FY2025-2026 ADA Wheelchair Access Ramp
Replacement
Golden Coast Construction Pavement Rehab Company Hardy & Harper, Inc.

La Habra, CA
ADA Ramp Replacement
Wildomar, CA Colton, CA
Van Engineering Inc. Gentery General Engineering, Inc.

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Agenda Item
Orange City Council
Item #: 3.9. 7/28/2026 File #: 26-0382
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to R.J. Noble Company, Inc. for Community Development Block Grant Fiscal Year 2025-2026 Street Rehabilitation; and appropriation of project balance from Fiscal Year 2025-2026

2. SUMMARY
Bids for Community Development Block Grant Fiscal Year 2025-2026 Street Rehabilitation were received and opened on June 18, 2026 (Bid No. 25-26.20 SP-4329). Seven bidders responded to the notice inviting bids. The apparent low bidder is R.J. Noble Company, Inc. of Orange, California in the amount of $457,583.

3. RECOMMENDED ACTION

1. Approve the contract with R.J. Noble Company, Inc. in the amount of $526,221 representing an original amount of $457,583 plus a 15% contingency of $68,638 for Almond Avenue and Collins Avenue Street Improvements; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the continuing appropriation of $488,616 from the Community Development Block Grant (310) Fiscal Year 2026 CIP budget:
310-6411-88101-265086-20 CDBG Street Improvements FY26

3. Authorize the following budget transfer in Community Development Block Grant (310):

From: 310-6411-88101-265086-20 CDBG Street Improvements FY26 $488,616 To:310-6411-87102-265086-20 CDBG Street Improvements FY26 $488,616

4. FISCAL IMPACT
The expense for this contract is $526,221 and will be funded through Community Development Block Grant (310) and Measure M2- Traffic Improvement (263):
310-6411-88102-265086-20 CDBG Street Improvements FY26 $ 393,198 263-5101-87102-255702-20 Pavement Management Program $ 133,023 Total: $ 526,221
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5. STRATEGIC PLAN GOALS
Goal 5: Improve Infrastructure, Mobility, and Technology

6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in low- and moderate-income areas within their jurisdiction. The proposed street improvements project was approved through the Fiscal Year 2025- 2026 Action Plan on June 24, 2025.

The scope of the project includes the rehabilitation of pavement on the following street segments:

1. Wheeler Street - Killingsworth Avenue to Chapman Avenue

2. Highland Street - Adams Avenue to Collins Avenue

3. Quincy Avenue - West Alley to N. Highland Street and N. Highland Street to East Alley

4. Monroe Avenue - West Alley to N. Highland Street and N. Highland Street to East Alley The City Council previously approved an advertisement for bids on May 26, 2026. The bid solicitation was advertised on May 28, 2026, for a period of three weeks and bids were opened June 18, 2026.

Seven bids were received as follows:

1. R.J. Noble Company, Inc., Orange $457,582.70

2. COPP Contracting, Inc., Yorba Linda $458,674.75

3. Sequel Contractors, Inc., Santa Fe Springs $509,344.00

4. Onyx Paving Company, Inc., Yorba Linda $583,032.00

5. Hardy & Harper, Inc., Lake Forest $585,000.00

6. Elegant Construction, Inc., Irvine $586,420.70

7. Estate Design and Construction, Inc., Marina Del Ray $595,400.00 The low bid is approximately 22.2% lower than the Engineer’sEstimate of $588,000. Staff reviewed the references and qualifications of the apparent low bidder and found them to be acceptable, with adequate experience completing contracts of similar scope and complexity. Therefore, staff recommend R.J. Noble Company, Inc. be awarded the contract in the amount of $526,221, representing an original bid amount of $457,583 plus a 15% contingency of $68,638 for Community Development Block Grant Fiscal Year 2025-2026 Street Rehabilitation.

Construction is scheduled to begin in September 2026 and is expected to be completed within 45 calendar days.

7. ATTACHMENTS
· Contract with R.J. Noble Company, Inc.

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· Bid Abstract
· FY 25-26 CDBG Location Maps
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Agenda Item
Orange City Council
Item #: 3.9. 7/28/2026 File #: 26-0382
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Christopher Cash, Public Works Director

3. RECOMMENDED ACTION

1. Approve the contract with R.J. Noble Company, Inc. in the amount of $526,221 representing an original amount of $457,583 plus a 15% contingency of $68,638 for Almond Avenue and Collins Avenue Street Improvements; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the continuing appropriation of $488,616 from the Community Development Block Grant (310) Fiscal Year 2026 CIP budget:
310-6411-88101-265086-20 CDBG Street Improvements FY26

3. Authorize the following budget transfer in Community Development Block Grant (310):

From: 310-6411-88101-265086-20 CDBG Street Improvements FY26 $488,616 To:310-6411-87102-265086-20 CDBG Street Improvements FY26 $488,616

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

6. DISCUSSION AND BACKGROUND
The Federal Community Development Block Grant Program (CDBG) provides grant funds to enable eligible localities to construct public improvements in low- and moderate-income areas within their jurisdiction. The proposed street improvements project was approved through the Fiscal Year 2025- 2026 Action Plan on June 24, 2025.

The scope of the project includes the rehabilitation of pavement on the following street segments:

1. Wheeler Street - Killingsworth Avenue to Chapman Avenue

2. Highland Street - Adams Avenue to Collins Avenue

3. Quincy Avenue - West Alley to N. Highland Street and N. Highland Street to East Alley

Seven bids were received as follows:

1. R.J. Noble Company, Inc., Orange $457,582.70

2. COPP Contracting, Inc., Yorba Linda $458,674.75

3. Sequel Contractors, Inc., Santa Fe Springs $509,344.00

4. Onyx Paving Company, Inc., Yorba Linda $583,032.00

5. Hardy & Harper, Inc., Lake Forest $585,000.00

6. Elegant Construction, Inc., Irvine $586,420.70

Construction is scheduled to begin in September 2026 and is expected to be completed within 45 calendar days.

7. ATTACHMENTS
· Contract with R.J. Noble Company, Inc.

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· Bid Abstract
· FY 25-26 CDBG Location Maps
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CONTRACT
ICDBG FY 2025-2026 Street Rehabilitation, (Bid No.25-26.20)l THIS CONTRACT (the "Contract") is made and entered into as of 2026 ("Effective Date") by and between the CITY OF ORANGE, a municipal corporation ("City"), and R.J. NOBLE COMPANY, 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 fumished by City to Contractor, necessary to complete in good workmanship and substantial manner the work (the "Work") described in:
(l) The Construction Plans for CDBG FY 2025-2026 Street Rehabilitation (Drawing SP-4329) prepared for City by Gerlene Samia, approved by the "Engineer" (as defined herein below) on May 26, 2026, and consisting of sheets numbered I through 8, inclusive (the "Plans");
(2) The latest edition ofthe "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 I (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 Labor Relations Forms attached as Attachment No. 3 and incorporated herein by this reference; and
(5) The Federal Provisions and Requirements attached as Attachment No. 4 and incorporated herein by this reference; and
(6) The Federal Prevailing Wage Rates attached as Attachment No. 5 and incorporated herein by this reference; and
(7) The Build America, Buy America (BABA) Requirements attached as Attachment No. 6 and incorporated herein by this reference; and 171
The "City of Orange Standard Special Provisions;"
The Standard Plans; and
Contractor's Bid Proposal, which is on file with City's Department of b. Contractor acknowledges that it has received the Plans from City and that a complete copy of the Plans are in its possession and are hereby specifically referred to and by such reference made a part hereof. The Orange Book, Greenbook and City of Orange Standard Special Provisions and Standard Plans are on file with City's Public Works Director and are hereby specifically referred to and by such reference made a part hereof. Contractor hereby acknowledges that it has read, reviewed and understands the Plans, the Orange Book, the Greenbook, the Special Provisions, the Standard Plans, and the Encroachment Permit as they relate to the Work, all of which documents shall be referred to herein collectively as the "Plans and Specifications." c. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal Code which requires, among other things, that Contractor utilize City's exclusive solid waste hauler for the rental of bins for trash and debris removal and imposes mandatory recycling requirements for self-hauled construction and demolition waste. The terms and conditions set forth in this Contract shall control over any terms and conditions in the Plans and Specifications to the contrary.
d. The Work shall be performed in conformity with the Plans and Specifications and the Bid Proposal and all applicable laws, including any and all applicable federal and state labor laws and standards and applicable prevailing wage requirements and any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment.
e. Unless and until otherwise notified in writing by City's Public Works Director, City's Principal Civil Engineer, Behrooz Nikjoo ("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 controland nothing herein shall be considered as an acceptance of the said terms of said Bid Proposal confl icting 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 (8)
(e)
(10)
Public Works.
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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 aNotice to Proceed and diligently prosecute completion of the Work within Forty five (45) calendar days from such date, unless legal extension is granted in accordance with the terms set forth in the Greenbook. Time is of the essence in this Contract.

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

ARTICLE 3
Compensation
a. Contractor agrees to receive and accept an amount not to exceed FOUR HLINDRED FIFTY-SEVEN THOUSAND FIVE HLINDRED EIGHTY-THREE DOLLARS and 00/100 ($457,583.00), unless said amount is amended by Contract Change Order approved by the City, as compensation for fumishing 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 orobstructions 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; (a) 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 SIXTY- EIGHT THOUSAND SIX HLTNDRED THIRTY-EIGHT DOLLARS and 00/100 ($68,638.00) has been added to the total compensation of this Contract. The Authorized City Representative may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as the Authorized City Representative and the Contractor may agree upon in advance. Said additional work or services and the amount of compensation therefor, up to the amount of the authorized contingency, shall be memorialized in the form of a Contract Amendment approved by the City Manager on a form acceptable to the City Attorney. The Contractor agrees to perform only that work or those services that are specifically requested by the Authorized City Representative. Any and all additional work and services performed under this Contract shall be completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate J
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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 HUNDRED TWENTY-SIX THOUSAND TWO HUNDRED TWENTY- ONE DOLLARS and 00/100 ($526,221.00).

ARTICLE 4
Licenses
Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the Work contemplated by this Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.

ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract. b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equipment, workmanship, materials furnished or methods of installations, or should said Work or any part thereof fail to function properly, as designed, due to any of the above causes within twelve ( I 2) months after the date on which said Work is accepted by City, Contractor shall make repairs and fumish 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 eventthat 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.
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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 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 noto 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. 5 175
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.
b. Attached hereto as Attachment No. I 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 l8l5 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 Califomia 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 ofthe 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. "lncreased 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, eolor, religion, 6 176
sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor shall post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, 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 furtheragrees 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 ahazatdous 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 7 177
of Contractor's Work under this Contract, including any and all claims under any law pertaining to Contractor's status as an independent contractor.

ARTICLE 12
Insurance
a. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder and the results of that Work by Contractor, its agents, representatives, employees or subcontractors. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Contract.
b. Contractor shall maintain the following minimum amount of insurance: the greater of either the limits set forth in (l) through (4), below; or all of the insurance coverage and/or limits carried by or available to Contractor.
(l) 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 Califomia. (4) Employer's Liability $1,000,000 per accident for bodily injury or disease. c. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of Contractor under this Contract. d. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self- insured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 8 178
e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:
(l) 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 borowed by or on behalf of Contractor (any auto), and with respect to liability arising out of Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such Work or operations. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall apply to City as an additional insured.
(2\ For any claims related to this Contract, Contractor's insurance coverage shall be primary insurance with respect to City, its officers, officials, agents and employees. Any insurance or self-insurance maintained by City, its officers, officials, agents and employees shall be excess of Contractor's insurance and shall not contribute with it. (3) Coverage shall not be canceled, except after thirry (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 Califomia 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. 9 179
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.

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 fumished 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
(l) 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 individualto perform services under this Contract who is ineligible to work in the United States or under the terms of this Contract; and
l0
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(3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I-9 for each of Contractor's employees; and
(4) Has responded, and shall at all times during the term of this Contract respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I-9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration. c. Contractor shall require all subcontractors and/or subconsultants to make the same representations and warranties required by this Article l5 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 shallrequire 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, Califomia.

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. 1t
181
b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.

ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.
..CONTRACTOR" ..CITY"
R.J. Noble Company
15505 E. Lincoln Ave
Orange, CA 92865
Attn: Steven L. Mendoza
Telephone: 7 l4-637 -1550
E-Mail : [email protected]
City of Orange
300 E. Chapman Avenue
Orange, CA 92866-1591
Attn: Behrooz Nikjoo
Telephone: 7 I 4-7 44-5531
E-Mail : bnikj [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 transmiffed via facsimile and electronic mail shall have the same effect as original signatures. [Remainder of page intentionally left blank; signatures on next pagel t2
182

CONTRACT, BONDS AND INSURANCE
APPROVED BY:

Connor Hyland
Senior Assistant City Anorney
[Note: Signature of Chuirman of the
Board, President or Vice President is
requiredl
lNote: Signalure of Secretary, Assistant
Secretary, Chief Financial Oflicer or
Assistant Treasurer is also requiredJ
"CITY''
CITY OF ORANGE, a municipal corporarion
Daniel R. Slater
Mayor of the City of Orange
ATTEST:

Pamela Coleman, City Clerk
"CONTRACTOR
R.J. NOBLE COMPANY. a California corporation
x
Printed
x
By
Titl
-\-
l3
Printed
By
183
CALIFORNIA ACKNOWLEDGMENT crvrL coDE E 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of ORANGE
On 0711612026 before me, I. DEIONGH, NOTARY PUBLIC
Here lnsert Nome ond Title of the Officer
personally appeared STEVEN L. MENDOZA
Nome(x) of Signer($.
who proved to me on the basis of satisfactory evidence to be the person(4 whose name($ is/are subscribed to the within instrument and acknowledged to me that helllulthuy executed the same in his/herftbefu( authorized capacity(ies[ and that by his/hExtHxsignature({ on the instrument the person(x), or the entity upon behalf of which the person(g acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
x
Ploce Notory Seol ond/or Stomp Above of Notory Public

OPTIONAL
Completing this informotion can deter olterotion of the document or froudulent reattochment of this form to on unintended document.

Description of Attached Document
Title or Type of Document:

DocumentDate: NumberofPages:_
Signe(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s|
Signer's Name: Signer's Name:
tr Corporate Officer - Title(s):
tr Partner- tr Limited tr General
tr lndividual Er Attorney in Fact
tr Trustee tr Guardian or Conservator
tr Corporate Officer - Title(s):
tr Other: D Other:

Signer is Representing:

Dote
tr Partner- E Limited tr General
tr lndividual tr Attorney in Fact
tr Trustee E Guardian or Conservator
02019 National Notary Association
Signer is Representing:
)
184
CALIFORNIA ACKNOWLEDGMENT ctvtL coDE 51189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of ORANGE
0711612026 J. DEIONGH, NOTARY PUBLICbefore me,
Dote Here lnsert Nome ond Title of the Officer
personally appeared JACOB BREEDLOVE
Nome$)of Signer($
who proved to me on the basis of satisfactory evidence to be the persong)whose name6) is/Iib subscribed to the within instrument and acknowledged to me that hsEnsltxEy executed the same in hislheI,udfi authorized capacityffi, and that by his/hE9tfi{f signatureg) on the instrument the persong), or the entity upon behalf of which the person$) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
Ploce Notory Seol ond/or Stomp Above of Notory Public

OPTIONAL
Completing this informotion con deter olterotion of the document or froudulent reottochment of this form to on unintended document.

Description of Attached Document
Title or Type of Document
DocumentDate: Numberofpages:_
Signe(s)Other Than Named Above:

Capacity(ies) Claimed by Signer(sl
Signer's Name: Signer's Name:
tr corporate officer - Tifle(s): El corporate officer - Title(s):

On
tr Partner- tr Limited tr General
tr lndividual tr Attorney in Fact
tr Trustee tr Guardian or Conservator
tr Other:
tr Partner- tr Limited tr General
tr lndividual tr Attorney in Fact
tr Trustee o Guardian or Conservator
tr Other:

Signer is Representing: Signer is Representing:
02019 National Notary Association
185
ATTACHMENT NO. 1

CALIFORNIA LABOR CODE
SECTIONS 1725.5, 177 1, 177 t.t, 1771.4, t77 5, 177 6, 1777.5, 1913 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, subjectto the requirements of Section4104 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:
( 1XA) Register with the Department of Industrial Relations in the manner prescribed by the department and pay an initial nonrefundable application fee of fourhundred dollars ($400) to qualify for registration under this section and an annual renewal fee on or before July I 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 l77l .3. (B) Beginning June l, 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:

Attachment No. 1
Page I of 13
186
(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within the preceding l2 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 ( I ) 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 177 | 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:
(l) 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 refemed to in paragraph (2).
(e) The requirements of this section shall apply to any bid proposal submitted on or after March l, 2015, to any contract for public work, as defined in this chapter, executed on or after April I ,2015, and to any work performed under a contract for public work on or after January l, 2018, regardless of when the contract for public work was executed.
(f1 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.

Attachment No. I

Page 2 of 13 ends

Orange City CouncilJuly 28, 2026

Orange City Council
July 28, 2026