AGR-6959 - DIVERSIFIED THERMAL SERVICES INC - CDBG FY 2019-20 ORANGE SENIOR CENTER HVAC MODIFICATION PROJECTA R-b95q
CONTRACT
CDBG Orange Senior Center HVAC ModificaHon FP 2019-2020
Bid No. 190-14)]
THIS CONTRACT (the "ConhacP') is made and entered into as of rCl' ,
2020 ("Effecrive Date") by and between the CITY OF ORANGE, a municipal corporation
City"), and DNERSIFIED THERMAL SERVICES, INC., a Califomia 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, Contractor hereby agrees to and shall do all the work and fumish
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) Contractor's Proposal (Exhibit A), which includes scope of services and labor
compliance documentation,
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 his/her designee);
3) The "Standard Specifications for Public Works Construction" (the"Green Book"),
and all amendments thereto;
b. Contractor acknowledges that it has received the Plans from City and that a
complete copy oFthe Plans aze in its possession and aze hereby specifically referred to and by such
reference made a part hereof. The Orange Book and Green Book 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 aclaiowledges that it has read,reviewed and understands the Scope of Services,
Orange Book, and Green Book, all of which documents shall be refened 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 conhol 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 Community Services
Director, CiTy's Park Supervisor, Paul Miller ("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
ofthe Authorized City Representative or such other person as City's CommuniTy Services 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
hat all performances required hereunder by Contractor shall be performed to the satisfaction of
the Authorized City Representative or City's Community Services Director.
f.It is expressly agreed by and be[ween the parties hereto that should there be any
conflict between the terms of this instrument and Contractor's Bid Proposal, then this instrument
shall control and nothing herein shall be considered as an acceptance of the said terms of said Bid
Proposal conflicting herewith.
ARTICLE 2
Commencement of Work
Contractor shall commence the Work provided for in this Contract within Fifteen(l5)days
of tbe date of the issuance by City of a Notice to Proceed and to diligently prosecute completion
of the Work within thirty (30) working days from such date, unless legal extension is granted in
accordance with the terms set forth in the Green Book. Time is of the essence in this Contract.
Contractor shall do all things necessary and incidental to the prosecution of Contractor's Work.
ARTICLE 3
Compensarion
Confractor agrees to receive and accept an amount not to exceed FOURTEEN
THOUSAND NINE IIUNDRED EIGHTEEN DOLLARS and 00/100 ($14,918.00) as
compensation for furnishing all materials and doing all the Work contemplated and embraced in
this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the
Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions whicl 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.
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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 conshuction and installation of all work included in the
Plans and Specifications for which Contractor has been awazded 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 hvelve (12) months after the
date on which said Work is accepted by City, Confractor shall make repairs and furnish such
materials and equipment as are necessary to be fumished and installed within fifreen(15) calendar
days after the receipt of a demand&om 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 Conhactor's
receipt of a demand from City, City shall have the unqualified option to make any needed repairs
or replacements itself or by any o[her contractor. Contractor shall reimburse City, upon demand,
for all expenses incuned 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 Community Services to be
necessary due to an immediate detriment to the health, safety, welfare or convenience of the
residents of Ciry.
ARTICLE 6
Water Quality
a. The Santa Ana Regional Water Quality Control Board ("RWQCB") has issued
National Pollutant Dischazge Elimination System ("NPDES") Permit No. R8-2009-0030 (the
PermiY'), 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,
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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 aze on file in the
office of Ci[y's Director of Public Works. Contractor hereby aclrnowledges that it has read,
reviewed and understands the Peanit,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 nat Agent
a. At all times during the term of this Contract, Contractor shall be an independent
conhactor and not an employee of City. City shall have the right[o 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, fiunish all facilities, materials and
equipment which may be required for fumishing 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 nahue whatsoever. Contractor acknowledges that Contractor and any subcontractors,
agents or employees employed by Contractor shall not, under any circumstances, be considered
employees of City, and that they shall not be entitled to any of the benefits or rights afforded
employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public
Employees Retirement System benefits, or health, life, dental, long-term disability or workers'
compensation insurance benefits.
b. Except as City may specify in writing, Contractor shall have no authority, express
or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor sball have
no authority, express or implied, to bind City to any obligation whatsoever.
ARTICLE 8
Public Work; Prevailing Wage
a. The Work which is the subject of this Contract is a"public work," as that term is
defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.
To the extent Contractor's employees will perform any work that falls within any of the
classifications for which the Department of Labor Relations of the State of Califomia promulgates
prevailing wage determinations, Contractor bereby agrees that Con[ractor, 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
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of Industrial Relations (www.dir.ca.eov/DLSR). Additionally, to perform work under this
Contract, Contractor must meet all State registration requirements and criteria, including project
compliance monitoring.
b. Attached here[o 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 Califomia Labor Code. Contractor hereby acknowledges that it has read, reviewed
and understands those provisions of the Labor Code and shall prosecute and comple[e 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 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 attomey'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 ageed by the parties that,
in connection with the construction of the Work which is the subject of this Contract, Con[ractor
shall beaz all risks of payment or non-payment of state prevailing wages. "Increased costs" as
used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the
same may be enacted, adopted or amended from time to time. The foregoing indemnity shall
survive termination of this Contract.
ARTICLE 9
Equal Employment Opportunity
During the performance of this Contract, Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, mental or physical disabiliTy, or
any other basis prohibited by applicable law. Con[ractor shall ensure that applicants are employed
and that employees are treated during employment, without regard to their race, color, religion,
sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include,but not be limited to the following: employment,upgrading, demotion
or transfer,recruihnent or recntitment advertising,layoff or termination,rates ofpay or other forms
of compensation and selection for training, including apprenticeship. Contractor shall post in
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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 Conhactor, 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 para aphs (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
Conhactor 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 Govemment Code.
ARTICLE 11
Indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials,
agents, employees, attorneys, and contractors from and against:
a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses
including reasonable attorneys'fees and court costs)which City may directly or indirectly sustain
or suffer arising from or as a result of the death of any person or any accident, injury, loss or
damage whatsoever caused to any person or the property of any person which shall occur on or
adjacent to the real property which is the subject of this Contract, or in connection with
performance of this Contract which may be directly or indirectly caused by the acts or omissions
of Contractor or its officers, employees, contractors or agents, or as a consequence of any use,
generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or
substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any
willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents,
employees, attorneys, or contractors. 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 Agreement,including any and all claims under any law pertaining
to Contractor's status as an independent contractor.
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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 Con[ractor, its agents,
representatives, employees or subcontractors.
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 occunence 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
projecUlocation or the general aggregate
limit shall be rivice the required
occurrence limit.
2) AutomobileLiability 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
suf£icient to cover the obligations of Contractor under this Conttact.
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 Con[ractor
shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related
inves[igations, claim administration, and defense expenses.
e. Each policy of general liability and automotive liability insurance shall contain, or
be endorsed to contain, the following provisions:
1) City, its officers, officials, agents, and employees are declared to be additional
insureds under the terms of the policy,with respect to liability arising ou[of automobiles owned,
leased, hired or borrowed by or on behalf of Contractor (any auto), and with respect to liability
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arising out of work or operations performed by or on behalf of Contractor, including materials,
parts or equipment fumished 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.
2) For any claims related to this project, 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 Ar[icle 12. The endorsements should be on
forms acceptable to CiTy. All certificates and endorsements aze to be received and approved by
City before 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 d'uected 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 Conffactor 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 waivex 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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ARTICLE 13
Termination
Ciry, acting through its City Manager or his/her designee, reserves the right to terminate
this Contract for any reason by giving five (5) days' written notice of intent to terminate to
Contractor. Upon receipt of notice, Contracror 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 terminarion 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") pedaining to the costs of and
completion of services performed under this Contract. During the term of this Contract and for a
period of three(3) years after termination or completion of this Contract, City shall have the right
to inspect and/or audit Contractor's records pertaining to the performance of this Contract at
Contractor's office. Contractor shall make available all such records for inspection or audit at its
offices during normal business hours and upon three(3) days' notice from City,and copies thereof
shall be furnished if requested.
ARTICLE 15
Compliance with Laws
a. Contractor shall be knowledgeable of and comply with all local, state and federal
laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by
Contractor or any subcontractor hereunder.
b. Contractor represents and warrants that Contractor:
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 limitarion, the Immigration Reform and Conhol Act of 1986 (IRCA); and
2) Has not and will not knowingly employ any individual to perform services under
this Contract who is ineligible to work in the United States or under the terms of this Contract; and
3) Has properly maintained, and shall at all times during the term of this Contract
properly maintain, all related employment documentation records including, without limitation,
the completion and maintenance of the Form I-9 for each of Contractor's employees; and
4) Has responded, and shall at all times during the term of this Confract respond, in a
timely fashion to any govemment inspection requests relating to immigration law compliance
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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 subcon[ractors and/or sub-consultants to make these
same representarions and warranties required by this Article 15 when hired to perform services
under this Contract.
d. Contractor shall,upon request oFCity,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 bome 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 Contrac[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 hazmless 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 cons[rued in accordance with and govemed by the laws of the State
of Califomia and Contractor shall submit to the jurisdiction of Califomia courts. Venue for any
dispute arising under this Contract shall be in Orange County, California.
ARTICLE 17
Integration and Amendment
a. This Contract consritutes 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
effec[unless it is in writing and signed by both parties. Any work performed which is inconsistent
with or in violation of the provisions of this Contract shall not be compensated.
b. Amendments to this Contract must be in writing and signed by both par[ies. 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.
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ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in
wriring 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 eazlier. Notices sent by e-mail shall be deemed received on
the date of the e-mail transmission.
CONTRACTOR" CITY"
Diversified Thermal Services, Inc.City of Orange
1220 N. Barsten Way 300 E. Chapman Avenue
Maheim, CA 92806 Orange, CA 92866-1591
Attn: Manuel Beltran Attn: Paul Miller
Telephone: 714-632-7401 Telephone: 714-532-6472
E-Mail: manuelb@dthermal.net E-Mail: pmiller@cityoforange.org
ARTICLE 19
Claim Resolutian
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 Califomia 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 elechonic mail shall have the same effect as original signatures.
Remainder of page intentionally left blank; signatures on next page]
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IN WITNESS WHEREOF, the parties have entered into this Contract as of the date and
year fust above written.
CITY"
CITY OF ORANGE, a municipal corporation
By:
Mark A. Murphy
Mayor of the City of O a e
V l
CONTRACT,tymvDS AND INSURANCE
APPROVED BY: ATTEST:
Z l'-=
Mary E, nning Pamela Coleman, City Clerk
Senior Assistant City Attorn
CONTRACTOR"
DIVERSIFIED THERMAL SERVICES, INC.,
a California corporarion
Note: Signature of Chairman of the By:_
Board, President or Vice President is Printe Name: 2. t Yr
required] Title: l/!G iZ srJET.T
Note: Signature of Secretary,Assistant
Secretary, Chief Financial Officer or inted Na e: i
Assistant Treasurer is also required) Tit e. it Si
12
EXHIBTT"A"
CONTRACTOR'SPROPOSAL
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Page 1
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CITY OF ORANGE
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COMMUNINSERVICESDEPARTMENT www.cityoforange.org PHONE: (714)744-7274 • FAX(714)744-7251
REQUEST FOR BID (RFB)
Bid No. 190-14
CDBG ORANGE SENIOR CENTER
HVAC MODIFICATION FY 2019-2020
COMMUNITY SERVICES DEPARTMENT
230 E. Chapman Ave.
Orange, CA 92866
714) 744-7274
Date: October 31, 2019
PROJECT NAME: CDBG ORANGE SENIOR CENTER HVAC MODIFICATION FY 2019-2020
Location Address: 170 S. Olive Street, Orange, Ca. 92866
Contact Name:Paul Miller, Park Maintenance Supervisor, 714-532-6472
E-Mail Address: pmiller@cityoforange.org
PROJECT DESCRIPTION: The City of Orange, California, a municipal corporation, is
requesting qualified contractors to provide bids to modify HVAC ducts in the lounge room
of the Orange Senior Center to correct capacity and distribution. All work shall conform
to City of Orange codes, ordinances, and standards. The work will generally include, but ,
not be limited to:
1. Provide, deliver, and install all job related material to the jobsite.
2. Remove (8) 8"supply and (4) 12" return ducts.
3. Remove (8) 8"x 8"and (4) 12"x12"return grills.
4. Install (8) new 10"supply and (4) 14"return spiral ducts and supports.
5. Install (8) new 10" manual balance dampers and secure.
6. Install (8) 10'k10"mod core supply grills and (4) 14'k14" return grills.
7. Seal and insulate all new ducts.
8. Start up units and test airFlow after duct modifications in order to adjust ducting
as needed to balance airtlow and properly maintain comfort in lounge area.
Page 1
Exhibit A
Page 2
GENERAL PROVISIONS:
This project is federally funded by the CommuniTy Development Block Grant
CDBG) requiring conformance to Federal Guidelines. All the Federal
requirements, the Davis Bacon Act,in parficular, shaR apply for this project.
If Federal and State wage rates are applicable, then the higher of the two will
prevail.
The Contractor shall be registered with the Department of Industrial Relations.The
contractor shall pay prevailing wages per the current Deparhnent of Industrial
Relations wage rate (including all scheduled increases) and fiunish Certified
Payroll Reports for all workdays. This project is subject to compliance and
enforcement by DIR.
NOTE: All consiraction work shall be performed in adherence to City of Orange
Standazds and Specifications (available at the Public Works counter for NON-
REFUNDABLE charge of$12.00 ($15.00 if mailed), the current edition of the
CalTrans "Green Book" and the City of Orange Public Works Standazds and
Specifications.
Confractor shall, at all times, carry valid insurance which meets all City of Orange
insurance requirements.
Contractor shall be required to provide a $1,000.00 deposit for use of a City water
meter on a City fue hydrant if needed for the project. Contractor shall be charged
2.00/day for water meter rental and shall be responsible for all water charges
associated with project.
Existing site amenities(ex.building,sidewalks,walls,etc.)are to be protected from
all construction work. Any damage to any existing site amenities outside of the
work azea and within the associated work area that may be affected by this work
will be repaired or replaced at the contractor's expense to the satisfaction of the
City of Orange.
All work shall conform to the specifications contained in the Request for Bids and
any subsequent Agreements.
SCOPE OF WORK AND PROJECT SPECIFICATIONS:
SITE PREPARATION:
1. Supply all equipment and labor necessary for all work to be performed under this
Request for Bids.
2. The contractor is responsible for making him/herself familiar with all existing site
conditions at the work site within the boundaries detailed of this project including,
but not limited to terrain, utilities, point of connection/supply,parking.
Page 2
Exhibit A
Page 3
3. The contractor is to at all times during construction maintain/keep the job site in a
safe condition. This will include, but not be limi[ed to, the filling of all
exposed/open trenches or holes, securing all components and [he removal of
construction equipmenUtools from the job site.
4. At the conclusion of each day's work, the contractor shall remove all tools and
equipment and secure the work site to ensure safety. The project site shall be left
each day in a clean,neat and safe condition.
5. The Contractor is to verify all dimensions and conditions at site prior to bid and
construction.
6. The Contractor is responsible for all existing site conditions.
SPECIAL INSTRUCTIONS:
All demolition and conshuction work to be completed within 30 working days from
Notice to Proceed from the City of Orange.A"working da}'is considered Monday
through Friday, excluding weekends,holidays and rain delays.
Contractor and crew shall be on project daily until completion.
All questions, request for clarification, and comments shall be sent to the City by
e-mail, and must be clearly titled "Written Questions". All such e-mails shall be
sent to Paul Miller,Pazk Maintenance Supervisor at pmillernu citvoforanae.ore by
Thursday,November 21, 2019 at 10 a.m.The Ciry shall not be responsible for its
failure to respond to e-mail questions that have not been titled as such, and that
have not been sent directly to Mr. Miller.
Interpretation of Documents.The City Representative shall be promptly notified,
in writing, of any discrepancies, omissions, ambiguities, or requirements that are
likely to cause disputes between trades and similar matters. When appropriate, the
City shall issue Addenda. No communicarion by anyone as to snch matters except
by Addenda, affects the meaning or requirements of the Contract Documents.
Addenda. The City reserves the right to issue addenda to the Contract Documents
at any time up to 24 hours prior to the bid due time. Each potential bidder shall
leave their name at t6e job walk to ensure they receive addenda. The City shall post
addenda on the City website and shall email copies of addenda to potential bidders
that attended thejob walk.
Engineer's estimate for this project is $15,000.
A MANDATORY pre-bid walk-through has been scheduled for Monday,November
18, 2019 starting at 10:00 a.m. at the Orange Senior Center (170 S. Olive Street,
Orange, Ca. 92866).
Page 3
Exhibit A
Page 4
BID SUBMISSION:
Sealed bids are being invited under our Bid No. 190-14, CDBG Orange Senior
Center FIVAC ModiScarion FP 2019-2020.
Please respond to the above REQUEST FOR BIDS on attached Bid Sheet and
return all pages of the Request for Bids and addenda (if applicable). Please
snbmit THREE copies of the bid packet. Bids must be submitted to [he City
Clerk at 300 E. Chapman Ave., Orange, CA 92866.
The contractor shall provide with this bid, a minimum of three (3) references of
commensurate/equal work with cities and/or municipalities.
References shall include:
o HVAC work completed within last(3) years.
o A description and location of said HVAC work.
o An approximate cost of said HVAC work.
o A contact person and phone number to verify HVAC work.
Sealed bids will be received unti12:00 u.m.,Thursday.December 5,2019.
Responses may be submitted by mail or in person to the above address.
Bids will be publically opened and read in Conference Room C,by the
Purchasing Officer.
The City reserves the right to reject any contractor who they feel does not
meet a qualifying work experience or satisfying references.
The City reserves the rigbt to reject at any time any or all bids, or parts
thereof, and to waive any variances, technicalities, and informalities which
do not impair the quality, or perfoanance of the project.
Page 4
Exhibit A
Page 5
BID SHEET for Bid No. 190-14
CDBG ORANGE SENIOR CENTER HVAC N10DIC1CATION FY 2019-2020
Date: December 5, 2019
Bid Submitted by: Manuel Beltran
CompanyName:Diversified Thermal Services Inc.
Address: 1220 N. Barsten Wav
Anaheim, CA 92660
Phone#: 714) 632-7401
E-mail Adciress:manuelb@dthermal.net
ContactName: Manuel Beltran
Manuel Beltran, Account Manager
Signature of Responsible Officer or Employee Print Name
PROJ CT
PROJECT NAME: CDE3G ORANGE SENIOR CENTER HVAC MODIP[CA"CION FY 2019-2020
Location Address: I70 S. Olive Street, Orange, Ca. 92366
Contact Name: Paul Miller, Pa'k Maintenance Supe visor, 714-532-6472
E-Mail Address pmillerr citvoforans e.ora
The stated bid amount below constitutes the total dollar amount [o peiform the work
described in [he above s-cope of services to include all that is required to provide dte work
product ancl/or install all ma[erials required to complete the work [o fl professional
workntanship s[andard,and[o ins[all and apply all materials per[he approved plans and all
manufacturer's specifications and recommendations.
Contrac[or represents and wanants that it has Ihoroughly investigated and considered the
scope of seivices and ftilly understands the difticulties and restrictions in perfoiming the
work. Contractor represents that it is expeiienced in perfoiming the work and will follow
proFessional standards in performance of the work. All seivices provided shall confonn to
all tederal,state and local laws,rules and regula[ions and to the best professional standards
and practices.
Bid may be submit[ed on a company fonn in place of this bid sheet.
Total bid amount: 14,918.00
Page 5
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IVERsI I
CityofOrange
THERMFILSERVICES Exhibit C BGOrengeSeniorCenterHVACModification
PaQe 7
4.1) Letter of Interest
Diversified Thermal Services, Inc. City of Orenge, Community Services Dept.
1220 N. Barsten Way 230 E. Chapman Ave.
Anaheim, Ca 92806 Orange, CA 92566
P] (714) 632-7401 [F) (714) 632-7402 Bid No. 190-14
To The City of Orange,
Diversified Thermal Service, Inc. formally expresses in[erest and is pleased to provide a
comprehensive proposal to the City of Orange. It is our intent through this document[o provide a bid
for HVAC Modifications at the Orange Senior Center. We are committed to continuing to provide the
City with quality HVAC Service & Product. We are committed to teamwork within our organization,
with our suppliers,and with our Customers to suctessfully execute projects of[his magnitude.
Having reviewed the request for proposal,specifications, plans, and surveyed the existing conditions,
we have submitted this response confident that we have devised the best strategy to meet the needs
outlined by the district.This proposal is valid for 90 days from the date of proposal.
Best Regards,
Diversified Thermal Service, Inc.
M 3 12/OS/2019
Signa[ure Date
Manuel Beltran Account Manager
Name Title
DTS Bid Respondent Contacts:
Manuel Beltran,Account Manager(714) 632-7401
Email: manuelb@dthermal.net
i Sarah Mendrin, Sales Administrator(714) 632-7401
Email:sarahm@dthermal.net
Proprie[ary&Con%dential Page 0 12/5/2019
1220 N.BARSTEN WAY•ANAHEIM,CA 92806•(714)632-]401•FN((]14 632-7402•LICENSE p609967
City of Orange
IVERSIFI D ExhibitA
THERMIa SERVICES Page BCDBG Orenge Senior Center HVAC Modification
Licenses & Registration
CONTRACTORS
dCa STATE4CEYSEBOAROBLiNELICENSE /
iOC10MMINE
s•Y•Y
H[C 60.9.967 CORP
IVERSIFIED THERMAL SERVICES
INC
OIVERSIFIEO THERXAi SERVICES
s u m a;xzcn
czoc asc o006099fi7 . 'SC948825
a""'cv= 2/1/2020
y,qM
o1q12o27 wnwcslocaqovd
DIR Registration No. 1000001071
Project References
Southern California Gas Company
Pico Rivera Prover/Metrology Room Chiller,Air Handler, & Ducting Upgrade
Contract Amount: $228,500.00
Contact: Glen Petris(714) 231-6448
Date:09/2019
Col6urn School
Data Aire Units& Ducting Replacements
Contract Amount: $72,620.00
Contact:Chuck Scroggins (562) 237-4227
Date: 07/2019
Buena Park Unified School District
District-Wide Prop. 39 HVAC Upgrade
Contrect Amount: $324,925.00
Contact:Timothy Spenser(714 474-6639
Date:04/2019
Proprie[ary&Confidential Page 1 12/S/2019
1220 N.BARSTEN WAY•ANAHEIM,CA 92806•(714)632-7401•FAX(714)632-7402•LICENSE q609967
Exhibit A
Page 9
Attachment 1
U.S. Deparhnent of Housing and Urban Development
Office of Labor Relations
Federal Labor Standards Provisions
Form 4010
Page 6
Exhibit A
Page 10
Applicability 1) The work to be performed by the classification
The Project or Program to which the construction work requested is not performed by a classification in the wage
coveretl by this contract pertains is being assisted by the determination; and
United States of America and Ihe tollowing Federal Labor 2) The classification is utilized in Ihe area by ihe
Standards Provisions are included in ihis Contract construction industry; and
pursuant to the provisions applicable to such Federal 3) The proposed wage rale, including any bona fide
assistance. fringe benefits, bears a reasonable relationship to ihe
A. 1. (i) Minimum Wages. All laborers and mechanics wage rates contained in the wage de[ermination.
employed or working upon the site of the work, will be paid b) It Ihe contractor and the laborers and mechanics lo be
unconditionally and not less often than once a week, and employed in the classification (it known), or Iheir
wi[hout subsequent deduction or rebate on any account represen[atives, and HUD or its designee agree on the
except such payroll deductions as are permitted by classification antl wage rate (including the amount
regulations issued by the Secrelary of Labor under the tlesignated for fringe benefits where appropriate), a report
Copeland Act (29 CFR Part 3), the full amount of wages ot the action taken shall be sent by HUD or its designee to
and bona fitle fringe 6enefits (or cash equivalenls thereof) the Administralor o! lhe Wage and Hour Division,
due at time of payment computed at reles not less than Employment Slandards Administration, U.S. Department of
those contained in the wage determination of the Labor, Washing[on, D.0. 20270. The Administrator, or an
Secratary of Labor which is a[tached hereto and made a authorized represen[ative, will approve, modify, or
part hereof, regardless of any contractual relationship disapprove every additional classification action within 30
which may he alleged to exist between the contractor and days of receipt and so advise HUD or its designee or will
such laborers and mechanics. Contributions made or notify HUD or its designee within the 30-day period that
costs reasonably anticipated for bona fide fringe benefits additional time is necessary. (Approved by the Office of
under Section I(b)(2) of lhe Davis-Bacon Act on behalf of Management and Budget under OMB control number 1215-
laborers or mechanics are considered wages paid to such 0140.)
laborers or mechanics, subjec[ to the provisions of 29 CFR
5.5(a)(1)(iv): also, regular coniributions made or costs 1) In the event the contrector, the laborers or mechanics
incurred for more ihan a weekly period (but not less often
to be employed in the classification or their
than quarterly) under plans, funds, or programs, which
epresentatives, and HUD or its designee do not agree on
cover ihe particular weekly period, are deemed to be the proposed classification and wage rete (including the
constructively made or incurred during such weekly period.
amount designatetl for fringe benefits, where appropriate),
HUD or its designee shall refer the questions, including
Such laborers and mechanics shall be paid the appropriate the views of all interested parties and the recommendation
wage rate and (ringe benefits on the wage tleterminetion of HUD or its designee, lo the Administrator for
for the classification of work actually performed, without determination. The Administrator, or an authorized
regard to skill, except as provided in 29 CFR 5.5(a)(4). representalive, will issue a determination within 30 days of
Laborers or mechanics performing work in more than one recelpt and so advise HUD or its designee or will notify
classification may be compensatetl at tha rate specified for HUD or its designee within the 30-day period that
each classification for Ihe time actually worked thereln: additional time is necessary. (Approved by the Office ot
Provided, That the employer's payroll records accurately Management and Budget under OMB Control Number
set forth the time spent in each classification in which 7275-0140.)
work is performed. The wage determination (including any
additional classification and wage rates conformed under
d) The wage rate (includin9 fringe benefits where
29 CFR 5.5(a)(i)(ii) and the Davis-Bacon poster (WH- appropriate) determined pursuant to subparagrephs
132'I) shall be postetl at all times by the con[ractor antl its b) or (c) of this paragreph, shall be paid to all
subconlractors at the site of the work in a prominent and n'orkers perfarming work in the classification under this
accessible, place where it can be easily saen by the contract from Ihe first day on which work is performed in
workers.
the classification.
li) (a) Any class of laborers or mechanics which is not Whenever the minimum wage rate prescribed in the
listed In ihe wage determination and which Is to be
contract tor a class of laborers or mechanics includes a
employed under the contrac[ shall be classified in fringe bene(it which is not expressed as an hourly rate, [he
conformance with the wa9e determination. HUD shall contractor shall either pay the benefit as slated in the
approve an additional classification and wage rate and age determination or shall pay another bona fide fringe
fringe benefits therefor only when the following criteria
benefit or an hourly cash equivalent thereof.
have been met: iv) If the contractor does not make paymenis to a trustee
or other third person, the contrector may consitler as part
form HUD 010(O6/2009)
Previous editions are obsolete Page 1 of 5 ref.Handbook 1344.1
Page 7
Exhibit A
Page 11
of the wages of any laborer or mechanic the amount of any communicated in writing to the laborers or mechanics
costs reasonably anticipated in providing bona fide fringe aftected, and records which show the cos[s anticipated or
benefils under a plan or program, Provided, That the ihe actual cost incurretl in providing such be efits.
Secretary of Labor has found, upon Ihe written reques[ of Contractors employing apprentices or trainees under
the conhactor, Ihat lhe applicable standards of the Davis- approved programs shall maintain written evidence of the
Bacon Act have been met. The Secre[ary of Labor may registration of apprenticeship programs and certification of
require the contractor to set aside in a separate account irainee programs, the regisUation of the appren[ices and
assets for [he meeting of obligations under the plan or irainees, and the retios and wage retas prescribed in the
program. (Approved by the Office o( Management and applicable programs. (Approved 6y the Office of
Budget under OMB Control Number 1215-0140.) Management and Budget under OMB Control Numbers
2. Withholding. HUD or its designee shall upon its own 1215-0140 and 1215-0017.)
action or upon written request of an authorizetl ii) (a) The contractor shall submit weekly for each week
representative of the Department of Labor withhold or in which any contract work is performed a copy of all
cause to be withheld from the contractor under [his payrolls to HUD or its designee if the agency is a party lo
conirect or any other Federal contract with the same prime the conirect, 6ut if the agency is not such a party, the
contractor, or any other Federelly-assisted contrac contractor will submit the payrolls to the applicant
subject to Davis-Bacon prevailing wage requirements, sponsor, or owner, as ihe case may be, for transmission to
which is held by the same prime contractor so much of the HUD or its designee. The payrolls submitted shall set out
accrued payments or advances as may be considered accurately and completely all of the information required
necessary lo pay laborers and mechanics, including to be maintained under 29 CFR 5.5(a)(3)(i) except that full
apprentices, trainees and helpers, employed by the social security numbers and home addresses shall not be
con[ractor or any subcontractor the full amount of wages included on weekly transmittals. Instead the payrolls shall
required by the conirect In the event ot failure to pay any only need to include an individually identifying number tor
laborer or mechanic, including any apprentice, trainee or each employee (e.g., the last four digits of the employee's
helper, employed or working on the site of the work, all or social security num6ar). The required weekly payroll
part of the wages required by the contract, HUD or its information may be submitted in any Porm desired.
designee may. after written notice to the contrector, Op[ional Form WH-347 is available for this purpose from
sponsor, applicant, or owner, take such action as may be ha Wage and Hour Division Web site at
necessary [o cause the suspension of any further http://www.dol.aov/esa/whd//orms/wh347instchtm or its
payment, advance, or guarantee of funds uniil such successor site. The prime contrector is responsible for
violations have ceased. HUD or its designea may, after the submission of copies of payrolls by all subcontractors.
written notice to the contractor, disburse such amounis Contractore antl subcontractors shall maintain the full
withheld for and on account of the contractor or social security number and wrrent address of each
subcontractor to the respective employees to whom they covered worker, and shall provide them upon request to
are due. The Comptroller General shall make such HUD or its designee if the agency is a party to the
disbursements in the case of direct Davis-Bacon Act contract, but if the agency is not such a party, the
contrecis. contractor will submit ihe payrolls to the applicant
3. (i) Payrolls and basic records. Payrolls and basic sponsor, or owner, as the case may be, for transmission to
records relating thereto shall be maintalned by the HUD or its designee, the contractor, or the Wage and Hour
contractor tluring the course of the work preserved for a Division of the Department of Labor for purposes of an
period of Ihree years thereafter for all laborers and investigation or audii of compliance with prevailing wage
mechanics working at Ihe site of the work. Such records requirements. It is not a violation of this suhparagraph for
shall contain the name, address, and social security a prime contractor to require a su6contractor to provide
number of each such worker, his or her correct addresses and social security numbers lo the prime
classification, hourly ra es of wages paitl (inclutlin9 rates contractor for ils own records, without weekly submission
of contributions or costs anticipated for bona fide fringe o HUD or its designae. (Approved by the O(fice of
benefits or cash equivalents lhereof of the types described Management and Budget under OMB Control Number
in Section I(b)(2)(B) of the Davis-bacon Act), daily and Z 5-0149.)
weekly number of hours worked, deductions made and b) Each payroll submitted shall be accompanied by a
actual wages peid. Whenever the Secretary of Labor has Statement of Compliance,' signed by the conlraclor or
found under 29 CFR 5.5 (a)(1)(iv) that the wages of any subcontractor or his or her agent who pays or supervises
laborer or mechanic include the amount of any costs the payment ot the persons employed under the contract
reasonably anticipated in providing benefits under a plan and shall certify ihe following:
or program described in Section I(b)(2)(B) of the Davis- That the payroll for ihe payroll period contains the
Bacon Act, the contractor shall maintain rewrds which information requiretl to be provided under 29 CFR 5.5
show that he commitment to provide such benefits is a)(3)(ii), the appropria[e information is beiog maintained
enforceable, that the plan or progrem is financially under 29 CFR 5.5(a)(3)(i), and that such information is
responsible, and that the plan or program has been correct and complete;
Previous edilions are obsolete fortn HUD-0010(06/2009)
Page 2 of 5 ref.Handbook 1344.1
Page 8
Euhibit A
Page 12
2) That each laborer or mechanic (including each helper, is not registered or otherwise employed as stated above,
apprentice, and trainee) employed on the contract during shall be paid not less than the applicable wage rate on tha
the payroll period has been paid [he full weekly wages wage de[ermination for the classification o( work aclually
earned, wi[hout rebate, either directly or indirectly, and performed. In atldition, any apprenlice performing work on
that no deductions have been made eithar directly or the job site in excess of the ratio permit[eE under the
indirectly from the full wages earned, other than registered program shall be paid nol less than the
permissible deductions as set forth in 29 CFR Part 3;applicable wage rate on the waga determination for the
3) That each laborer or mechanic has been paid not less work actually per(ormed. Where a contraclor is performing
than the applicable wage rates and fringe benefits or cash onstruction on a project in a locality other than that in
equivalenis for the classification oi work performed, as which its program is registered, ihe ratios antl wage rates
specified in the applicable wage determination expressed in percantages of the journeyman's hourly
incorporated into the contrect. rale) specified in the conlractor's or subcontrector's
c The weekl submission of a
egistered program shall be observed. Every apprenlice
y properly executed
must be paid at not less than the rate specified in the
certifica[ion set forih on the reverse side of Optional Form
registered program for the apprentice's level of progress,WH-347 shall satisfy the requiremenl for submission of the
expressed as a percenlage of the journeymen hourly rateStatementofCompliance" required by subparagraph
specified in the applicable wage determination.
A.3.(ii)(b).
Apprentices shall be paid fringe benefils in accordance
d) The falsification of any of the above certificetions may with [he provisions of the apprenticeship program. If ihe
subject the contractor or subcontractor to civil or criminal apprenticeship program does not specify fringe benefits,
prosecution under Section 1001 of Title 18 and Section apprentices must be paitl the full amount of fringe benefits
231 of Title 31 of[he United S[ates Code. listed on the wage determination tor the applicable
iii) The contrector or subcontrector shall make the classifica[ion. If the Administrator determines that a
records required under subparagraph A.3.(i) available for different practice prevails for lhe applicable apprentice
inspection, copying, or transcription by authorized classifica[ion, (ringes shall be paid in acmrdance with that
representatives of HUD or its designee or the Department determinatlon. In the event the Office of Apprenticeship
of Labor, and shall permit such representa[ives to Training, Employer and Labor Services, or a State
interview employees during working hours on the job. If Apprenticeship Agency recognized by the Office,
the contractor or subcontractor fails to submit the required withdraws approval of an apprenticeship program, the
records or to make them available, HUD or its designee contractor will no longer be permitted to utilize
may, afler written notice to the coMractoq sponsor, apprentices at less than tha applicable predetermined rete
applicanl or owner, take such action as may be necessary for the work pertormed until an acceptable progrem is
to cause the suspension of any further payment, advance, approved.
or guarantee of funds. Furthermore, failure to submit the i) Trainees. Except as provided in 29 CFR 5.16,
required records upon request or to make such records trainees will not be permitted to work at less than the
available may be grounds for dabarment action pu suant lo p edetermined rate for the work performed unless they are
29 CFR 5.12. employetl pursuant ',to and indivitlually registered in a
4, Apprentices and 7rainees. program which has received prior approval, evidenced by
i A rentices. A formal certitication by the U.S. Department of Labor,pp pprentices will be permitted to work at
less ihan the predelermined rete for the work they Employmen[ and Training Administration. The ratio ot
performed when ihey are employed pursuant to and trainees lo journeymen on the Job site shall not be greater
individually registered in a bona fitle appreniiceship than permitted under the plan approved by the
program registered with the U.S. Department o( Labor, Employment and Trainin9 Administration. Every trainee
Employment and Treining Adminislretion, Office of must be paid at not less ihan the rate specified in the
Apprenliceship Training, Employer and Labor Services, or approved program for the lrainee's level of progress,
with a State Apprenticeship Agency recognized by ihe expressed as a percentage of the journeyman hourly rate
Office, or if a person is employed in his or her first 90 specified in the applicable wage determination. Treinees
days of probationary employment as an apprentice in such shall be paid fringe benefits in accordance with the
an apprenticeship program, who is not individually Provisions of the trainee program. If the trainee program
registered in Ihe program, but who has been certified by does not mention fdnge benefits, trainees shall be paid
the Office of Apprenticeship Training, Employer and Labor the full amount of fringe benefits listed on lhe wage
Services or a State Apprenticeship Agency (where
determination unless the Adminislrator of the Wage and
appropriata) to be eligible for probationary employment as Hour Division determines that there is an apprenticeship
an apprenlice. The allowable ratio of apprentices to program associatetl with the corresponding journeyman
journeymen on the job site in any craft classification shall age rate on the wage determination which provides for
nol be greater than the retio permilted lo the contractor as
less ihan full fringe benefits for apprentices. Any
to the entire work force untler the registered program. Any employee listed on lhe payroll at a Uainee rete who is not
workar listed on a payroll at an apprentice wage rete, who registered and participating in a training plan approved by
Previous editions are obsolete form HUD-0070(06/2009)
Page 3 of 5 ref.Handbook 1344.7
Page 9
Exhibit A
Page 13
the Employment and Training Administration shall be paid awarded HUD contracts or participate in HUD programs
not less than the applicable wage rate on the wage pursuant to 24 CFR Part 24.
determination for the work actually per(ormed. In addition, ii) No part of this contract shall be subcontracted to any
any trainee performing work on Ihe job site in ezcess ot pyrson or lirm ineligible for awartl of a Government
ihe retio permitted under the registered program shall be contract by virtue of Section 3(a) of the Davis-Bacon Act
paid not less lhan the applicable wage rate on the wage or 29 CFR 5.12(a)(1) or to be awarded HUD conlracts or
determination tor tha work actually performed. In the participate in HUD programs pursuant to 24 CFR Part 24.
event the Employment and Training Adminisiration
The penalty for making false statements is prescribedwithdrawsapprovalo( a Iraining program, ihe contractor
will no longer be permitted to utilize trainees a less than in the U.S. Criminal Code, 78 U.S.C. 1001. Additionally,
the applicable predeterminetl rete for the work perPormed
U.S. Criminal Code, Section 1 01 0, Title 18, U.S.C.,
until an acceptable program is approved. Federal Housing Administration transactions", provides in
part: "Whoever, for the purpose of . . . influencing in any
iii) Equal employment opportunity. The utilization of
yay the action of such Administration..... makes, utters or
apprentices, trainees and journeymen under 29 CFR Part 5 publishes any statement knowing the same lo be false.....
shall be in conformity with the equal employment shall he fined not more than $5,000 or imprisoned not
opportunity requirements of Exewtive Order 11246, as more than two years, or both."
amended, and 29 CFR Part 30.
71. Complaints, Proceedings, or Testimony by
5. Compliance with Copeland Act requirements. The Employees. No laborer or mechanic to whom the wage,
contractor shall comply with [he requirements of 29 CFR salary, or other labor standards provisions of ihis Contract
Part 3 which are incorporeted by reference in this contract are applicable shall be discharged or in any other manner
6. Subcontrocts. The con[rector or subcontractor will discriminated against by the Contractor or any
insert in any subcontracts lhe clauses con ained in subcontractor because such amployee has filed any
subparagraphs 1 ihrough 11 In this paragraph A and such complaint or instituted or caused to be inslituted any
other clauses as HUD or i[s designee may by appropriate proceeding or has tesHfied or is about o testify in any
instructions require, and a copy of the applicable proceeding under or relating to the labor standards
prevailing wage decision, and also a clause requiring the applicable under this Contract to his employer.
subcon[rac[ors to include these clauses in any lower tier B. Contract Work Hours and Safety Standards Act. The
subcontracts. The prime contractor shall be responsible provisions of this paragraph B are applicable where the amount of ihe
tor the compliance by any subcontrector or lower tier prime contract exceeds $100,000. As used in ihis paragraph, Ihe
subcontractor with all the contract clauses in this ertns'la6orers'and"mechanics"includewalchmenandguards.
paragraph. 7) Overtime requirements. No conirector or subcontractor
7. Contract termination; debarment. A breach ot the contracting for any part ot the contract work which may require or
contract clauses in 29 CFR 5.5 may be grounds for involve Ihe employment of laborers or mechanics shall require or
termination of the contract and for deharment as a pertnit any such laborer or mechanic in any workweek in which the
contractor and a subcontrac[or as provided in 29 CFR individual is employed on such work to work in excess of 40 hours in
5.z_ such workweek unless such laborer or mechanic receives
8. Compliance with Davis-Bacon and Related Act Requirements. compensation at a rate not less than one and one-half times the basic
All rulings and interpretations of the Davis-eacon and rate of pay for all houre worked in excess ot 40 hours In such
Related Acts contained In 29 CFR Parts 1, 3, and 5 are workweek.
herein incorporated by reference in this contract 2) Vioiation; liability for unpaid wages; Iiquidated
9. Disputes concerning labor stantlards. Disputes damages. In the event o( any violation of the clause set
arising ou[ of ihe labor standards provisions of this forth in subparagraph (1) of Ihis paragraph, the contrector
contract shall not be subject to the general disputes antl any subcontractor responsible therefor shall be liable
clause of [his contract. Such dispules shall be resolvetl in for lhe unpaid wages. In addi ion, such conirector antl
accordance with the procedures of the Department of subcontractor shall be liable to the United States (in the
Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes case of work done under contract for the District of
within the meaning of this clause include disputes between Columbia or a territory, lo such District or [o such
the contractor (or any of its subcontractors) and HUD or territory), for liquidated tlamages. Such liquida[ed
its designee, the U.S. Department of Labor, or ihe damages shall be computed with respect to each indivitlual
employees or iheir representatives. laborer or mechanic, including watchmen and guards,
10. (i) Certitication af Eliglbllity. By entering into ihis employed in violation of the clause sel forth in
contract the contractor certifies ihat neither it (nor he or subparagraph (i) of this paragraph, inthesumof$tOforeach
she) nor any person or firm who has an interest in ihe endar day on which such individual was required or permitted to
conlrector's firm is a person or firm ineligible to be Nork In excess of Ihe standard workweek of 40 houre withou[payment
awarded Government contracts by virtue of Section 3(a) of o[he overtime wages requlred by the clause set forth in sub
the Davis-Bacon Act or 29 CFR 5.12(a)(7) or to be paragraph (1) o( this paragraph.
Previous editions are obsolete fortn HUD-0070(O6/2009)
Paga 4 of 5 reL Handbook 1344.1
Page 10
E chibit A
Page 14
3) Withhalding for unpaid wages antl Iiquidated
damages. HUD or its designee shall upon its own action
or upon written request o( an authorized representative of
the Department of Labor withhold or cause to be withheld,
from any moneys payable on account of work performed by
the contractor or subcontrector under any such contract or
any olher Federal contrect with the same prime contract,
or any other Federally-assisted contract subject lo lhe
Coniract Work Hours and Safety Standards Act which is
held by the same prime coniractor such sums as may be
determined to be necessary to satisfy any liabilities of
such coNrector or subcontractor tor unpaid wages antl
liquidated damages as provided in the dause set forth in
subparagraph (2) otihis paragraph.
4) Subcontracts. The contractor or subcontractor shall
insert in any subcontracts iha dauses set forth in
subparagraph (1) lhrough (4) of this paragraph and also a
clause requiring ihe subconiractors [o include Ihese
clauses in any lower tier subcontracts. The prime
contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the dauses
set forth in subparagraphs (1) throu9h (4) of this
paragraph.
C. Health antl Safety. The provisions of ihis paragreph C are
applicable where the amount of the pnme controct exceeds$100,000.
1) No laborer or mechanic shall be required to work in
surroundings or under working conditions which are
unsanitary, hazardous, or dangerous to his health and
safety as de[ermined under construction satety and health
standards promulgated by the Secretary of Labor by
regulation.
2) 7he Contractor shall comply with all regulations
issued by the Secretary of Labor pursuant to Title 29 Part
1926 and failure to comply may result in imposition of
sanctions pursuant to the Contrect Work Hours and Safety
Standards Act, (Public Law 97-54, 83 Stat 96). 40 USC
3701 et sea.
3) The contractor shall include ihe provisions o( this
paragraph in every subcon[ract so ihat such provisions will
be binding on each subcontractor. The con[ractor shall
take such action with respect to any subcontractor as Ihe
Secretary of Housing and Urban Development or the
Secretary of Labor shall direct as a means of enforcing
such provislons.
Previous edilions are obsolete form HUD 010(06/2009)
Page 5 of 5 ref.Handbook 1344.1
Page 11
Exhibit A
Page 15
Attachment 2
System for Award Management
Wage Determination
As of September 17, 2019
SNEET METAL KORKER
1) [oma¢rcial - Neu
Unsiruciion and pemodel
work.......................f a4.ae t8.46
ZJ Industriel uork
Sncluding air pollution
htlpsJhete.sem.gwlwsge deletminallanlC/019UU2414/document
Page 12
ATTACHMENT 1
Behind this page.]
ATTACHiVIENT 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 cantractors; mandatory registration; qualifications and applicaHon;
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 Conhact 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 Deparhnent 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 sectioo.
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 conhactor 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 ofthe requirements of this paragraph,the period
AttachmentNo. 1 poav
Page 1 of 13
of disqualification shall be waived if both of the following are true:
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 rivo thousand dollars($2,000).
b) Fees received pursuant to this section shall be deposited in the State Public Works Enforcement Fund
established by Section 17713 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 amoun[ of the renewal fee within 90 days of[he
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 awazding 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 [his 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.
This section does not apply to work performed on a public works project of[wenty-five thousand dollars
25,000) or less when the project is for construction, alteration, demolition, installa[ion, 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 genera]
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. 1 ponv
Page 2 of 13
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.
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 perfoan public work pursuant to Section
1725.5 at the time the contract is awazded.
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 subpazagraph (E)of pazagraph (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 perfonn 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 awazding
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
perfonn public work pursuant to Section 1725.5.
A contract entered in[o 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 subconuactor 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 sec6on,
the contractor or subcontractor shall forfeit, as a civil penalty ro the state, one hundred dollars ($100)for each
day ofwork performed in violation ofthe 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
subpazagraph (E) of pazagraph(2) of subdivision (a) of Section 1725.5.
I)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher
AttachmentNo. 1 poav
Page 3 of 13
tiered public works contractor or subcontractor who is found to have entered into a subcontract with an
unregistered lower tier subconhactor to perform any public work in violation of the requ'uements of Section
1725.5 or this section shall be subject to forfeiture,as a civil penalty to the state,of one hundred dollazs($100)
for each day the unregistered lower tier subconhactor performs work in violation of the registration
requirement, not to exceed an aggregate penalty of ten thousand dollazs ($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 en£orce 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 Secrion
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 prolubiting the use of the unregistered contractor or the
unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor
is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public
work.
2) A stop order may be personally served upon the contractor or subcontractor by either of the following
methods:
A) Manual delivery of the order to the contractor or subcontractor personally.
B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public
work and by thereafter mailing copies of the order by first class mail, postage prepaid to the contractor or
subcontractor at one of the following:
i)The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors'
State License Boazd.
ii) If the confractor 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,
Attachment No. 1 mnv
Page 4 of 13
or both. The appeal, hearing, and any further review of the hearing decision shall be govemed by the
procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1.
4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered
by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage
rate by that employer for any hours the employee would have worked but for the work stoppage,not to exceed
10 days.
k) Failure of a contractor or subcontractor, owner, director, o cer, 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 countyj ail not exceeding 60 days or by a fine not exceeding
ten thousand dollars ($10,000), or both.
I) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for
public work entered into on or after April I, 2015. This section shall also apply to the performance of any
public work, as defined in this chapter, on or afrer January 1,2018,regardless of when the contract for public
work was entered.
m)Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund
established by Section 17713 and shall be used only for the purposes specified in that section.
n) This section shall not apply to work performed on a public works project of twenty-five thousand dollars
25,000) or less when the project is for conshuction, alteration, demolition, installation, or repair work or to
work performed on a public works project of fifteen thousand dollars ($I5,000) 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 en£orcement 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 fumish 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 awazding 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 perfomiing work on
a project for which registration is not required because of subdivision ( of Section 1725.5, the unregistered
contractor or subconfractor is not required to fumish the records specified in Section 1776 directly to the
Labor Commissioner but shall retain the records specified in Section 1776for at least three yeazs after
completion of the work.
Attachment No. 1 ponv
Page 5 of 13
5)The department shall undertake those activities it deems necessary to monitor and enforce compliance
with prevailing wage requirements.
b) The Labor Commissioner may exempt a public works project &om compliance with all or part of the
requirements of subdivision(a) if either of the following ocwrs:
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 ofpazagraph(1)ofsubdivision(a)shall only apply to contracts forpublic 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 awazded,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 overtumed.
iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or por[ion
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.
Attachment No. 1 pon9
Page 6 of 13
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
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[hat this section will be complied with.
b) If a worker employed by a subcon[ractor on a public works project is not paid the general prevailing rate
ofper diem wages by the subcontractor,the prime con[ractor of the project is not liable for any penalties under
subdivision (a) unless the prime contractor had laiowledge 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 cer[ified payroll records of the subconfractor.
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
conhactor 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 Standazds 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 enriUed to receive
nonredacted copies of certified records; noncompliance penalties; rules
a) Each conhactor and subcontractor shall keep accurate payroll records, showing the name, address, social
security number, work classification, shaight time and overtime hours worked each day and week, and the
actual per diem wages paid to each joumeyman, 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 rive and correct.
Attachment No. 1 pons
Page 7 of 13
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.
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 fumished 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 ofLabor Standards Enforcement. Ifthe 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, subconh actors,and the entity through which
the request was made. The public may not be given access to the records at the principal office of the
con[ractor.
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 (fl, 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 mazked or obliterated. Any copy ofrecords made available for inspection
by, or furnished to, a multiemployer Taft-Hartley hvs[ fund (29 U.S.C. Sec. 186(c)(5)) that requests the
records for the pmpbses 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 nu ber. 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.
1)Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Shike
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 cer[ified payroll made available for
inspection and fumished upon request to the public by an agency included in the Joint Enforcement Strike
Attachment No. 1 rniiv
Page 8 of 13
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.
2)An employer shall not be liable for damages in a civil action for any reasonable act or omission take 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 conhactor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice
requesting the records enumerated in subdivision(a). In the event that the contractor or subcontractor fails to
comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose
behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion
thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor
Standards Enforcement, these penalties shall be withheld from progress paycnents 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 Califomia 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 Secrion 3070.
b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for
apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or
trade to which he or she is registered.
2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch
of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice
to fill out an application or undergo testing, training, an examination, or other preemployment process as a
condition of employment, the apprentice shall be paid for the time spent on the required preemployment
activity,including travel time to and from the required activity,if any,at the prevailing rate of per diem wages
for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective
bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on
preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or
she£ails to pass that test.
Attachment No. 1 pon9
Page 9 of 13
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
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 Califomia Apprenriceship Council.
d) If the contractor to whom the contract is awazded by the state or any political subdivision, in performing
any of the work under the contract, employs workers in any apprenticeable craft or frade, 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[rade that can provide apprentices to the site of the public work for a certificate approving the
contractor under the apprenticeship standazds for the employment and training of apprentices in the azea or
industry affected. However, the decision of the appren[iceship 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 anange 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 crafr or trade determined as an apprenticeable occupation in accordance with rules and
regulations prescribed by the Califomia Apprenticeship Council. As used in this section, "contractor"
includes any subcontractor under a confractor who performs any public works not excluded by subdivision
o).
e) Before commencing work on a contract for public works, every con[ractor 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 joumeyman 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 informarion under this subdivision shall be
public. The apprenticeship progams shall retain this information for 12 months.
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 appren[ices to joumeymen employed in a particulaz 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 standazds. 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 joumeyman work.
h) This ratio of apprentice work to joumeyman work shall apply during any day or portion of a day when
anyjourneyman is employed at the jobsite and shall be computed on the basis of the hours worked during the
day byjourneymen so employed. Any work performed by ajoumeyman 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 conhact 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
Attachment No. 1 roav
Page 10 of 13
apprentices dudng the same rime period that the joumeymen 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
of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less
than one apprentice for each five joumeymen in a craft or trade classification.
i)A confractor 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 crafr or trade,shall employ the number of apprentices or the ratio of apprentices to j ourneymen
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 per£ormed 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 crafr or trade.
k)An apprenticeship program has the discretion to grant to a participating conhactor 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£or the previous three-month period in the azea 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 crafr or trade is replacing at least one-thirtieth of its joumeymen
annually through apprenticeship h aining, either on a statewide basis or on a local basis.
4) Assignment of an apprenrice to any work performed under a public works contract would create a
condition that wouldjeopardize his or her life or the life,safety, or property of fellow employees or the public
at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be
provided by a joumeyman.
1) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a
specific trade from the 1-[0-5 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 standazds.
m)(1) A conhactor 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 azea 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 Califomia
Apprenticeship Council shall distribute training contributions received by the council under this subdivision,
less the expenses of the Department of Industrial Relations for administering this subdivision, by making
Attachment No. 1 pnnv
Page 11 of 13
grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be
distributed as follows:
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 con[ributions not distributed under clauses (i) and (ii) shall be used to defray the future
expenses of the Deparhnent 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 Deparhnent of Industrial Relations so
that the Deparhnent of Industrial Relations is able to verify that grant funds were used solely for training
apprentices. For purposes of this subparagraph, adequate records include, but are not limited to, invoices,
receipts, and canceled checks that account for[he expenditure of grant funds. This subpazagraph 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 expendihue 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
aze expended or if an apprenticeship program is found to be using grant funds for purposes other than haining
apprentices, then the apprenticeship program shall not be eligible to receive any future grant pursuant to this
subdivision and the Department of Industrial Relations may initiate the process to rescind the registration of
the apprenticeship program.
3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship
Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the
Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of
canying 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 o£compliance with this section for all apprenticeable
occupations with the prime conhactor.
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 d'uector, assist in the enforcement of this section under
the terms and conditions prescribed by the director.
Section 1813. Forfeiture for violations; contract stipulation; report of violations
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The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf[he
contract is made or awarded, forfeit twenty- five dollazs ($25) for each worker employed in the execution of
the contract by the respective confractor 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 awazding 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.
Secrion 1815. Overrime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any
stipulation inserted in any contract pursuant to the requirements of said sections, work performed by
employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted
upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1 %z
times the basic rate of pay.
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ATTACHMENT#2
Behind this page.]
ATTACFIbIENT 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 interes[s 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 Pad 3, this section shall apply to any claim by a contractor in connection
with a public works project.
c) Forpurposes ofthis section:
1) "Claim" means a separate demand by a confractor sent by registered mail or cer[ified 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
contractorpursuant to the contract for a public works project and payment for which is not otherwise expressly
provided or to which the claimant is not othenvise 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,
deparhnent, 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 dishict,public authority, political subdivision,public corporation, or
nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the
public agency.
B) "Public entity"shall not include the following:
i)The Department of Water Resources as to any project under the jurisdiction of that department.
ii)The Department of Transportation as to any project under the jurisdiction of that department.
iii)The Department of Parks and Recreation as to any project under the jurisdiction of that depar[ment.
iv) The Deparhnent 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.
Attachment No. 2
Page 1 of 3
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 projecY'means the erection, cons[ruction, alteration, repair, or improvement of any public
structure,building,road, or other public improvement of any ki d.
5)"Subcontractor"means any type of contractor within the meaning of Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or
is a lower tier subcontractor.
d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall
conduct a reasonable review of the claim and,within a period not to exceed 45 days,shall provide the claimant
a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon
receipt of a claim,a public entity and a contractor may,by mutual agreement, extend the time period provided
in this subdivision.
B) The claimant shall fixmish 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 goveming body does not
meet within the 45 days or witlun the mutually ageed 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 goveming body afrer the 45-day period, or extension,
expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion.
D)Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after
the public entiTy issues its written statement. If the public entity fails to issue a written statement, paragraph
3) shall apply.
2)(A) If the claimant disputes the public entity's written response, or if the public entity fails to respond to a
claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an
informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in
writing sent by registered mail or certified mail, retum receipt requested, the public entity shall schedule a
meet and confer conference within 30 days for settlement of the dispute.
B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any
portion of the claim remains in dispute, the public entity shall provide the claimant a written statement
identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment
due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity
issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall
be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs
equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the
disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each
party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with
regard to the disputed portion of the claim. Each par[y shall bear the fees and costs charged by its respective
mediator in connection with the selection of the neutral mediator. If inediation is nnsnccessful, the parts of
the claim remaining in dispute shall be subjec[to applicable procedures outside this section.
Attachment No. 2
Page 2 of 3
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 othenvise 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
azbitration or the Public Works Contract Arbitration Program,if inediation under this section does not resolve
the parties' dispute.
3) Failure by [he 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 ofthe 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 qnalifications 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 subconhactor lacks legal standing to asseR 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 fiunish reasonable documentation to support
the claim. Within 45 days of receipt of this written request, the contractor shall notify the subconhactor 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.
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 par[ies may mutually agree to waive,in writing,mediation and proceed directly
to the commenceme t of a civil action or binding arbitration, as applicable; and (2) a public entity may
prescribe reasonable change order, claim, and dispute resolution procedures and requuements 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 afrer 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 be£ore January 1, 2027, deletes or extends that date.
Attachment No. 2
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