03.16 Annual Sewer Replacement FY 19-20 Contract15 FPoRa''G.
AGENDA ITEM
May 12, 2020
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Christopher Cash, Public Works Directo
REVIEW: City Manager Finance`--
1. SUBJECT
Award Bid No. 190-28, S-243; Annual Sewer ReplacemenUMaintenance, Fiscal Year
2019-2020 to Vasilj, Inc.
2. SUMMARY
Bids for the Annual Sewer Replacement/Maintenance Project, Fiscal Year 2019-2020,
were received and opened on April 16, 2020. Ten bidders responded to the notice inviting
bids. The apparent low bidder is Vasifj, Inc., of Irwindale, California in the amount of
1,115,051. Two additional locations of sewer main will be added for replacement.
3. RECOMMENDED ACTION
Award the contract to Vasilj, Inc. of Irwindale, California for the total amount of
1,282,309, representing an original amount of $1,115,051, plus a 15% contingency of
167,258, for Annual Sewer Replacement/Maintenance, Fiscal Year 2019-2020, and
authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure including the 15% contingency for this contract is $1,282,309 and
will be funded in Sewer Line Maintenance/Replacement (15508) through Sewer
Construction (520).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
ITEM 3 . b i OS/12/2020
6. DISCUSSION AND BACKGROUND
The Annual Sewer ReplacemenUMaintenance Project, Fiscal Year 2019-2020, is
designed to replace the aging sewer infrastructure, replace pipes that are structurally
deficient, improve pipeline capacity and minimize maintenance issues. This project will
consist of sewer line maintenance, and replacement funded by Sewer Construction.
This project will replace/upsize approximately 1,850 linear feet of existing 6"diameter clay
pipe with 8" pipe, and approximately 1,100 linear feet of existing 12" clay pipe with 18"
pipe and reconnect the impacted service laterals.
The City Council previously approved advertisement for bids on February 11, 2020. The
bid solicitation was advertised on March 12, 2020 for a period of five weeks and bids were
opened on April 16, 2020. Ten bids were received as follows:
1. Vasilj Inc., Irwindale 1,115,051
2. GRFCO Inc., Brea 1,184,450
3. Mike Prlich and Sons Inc., Baldwin Park 1,328,705
4. Paulus Engineering Inc., Anaheim 1,356,456
5. Ramona Inc., Arcadia 1,385,990
6. T.E. Roberts Inc., Orange 1,485,445
7. Kordich Construction Inc., Cypress 1,572,600
8. G. Hurtado Construction, Riverside 1,625,900
9. Colich and Sons L.P., Gardena 1,812,405
10.Christensen Bros. Gen. Engr., Inc., Apple Valley 2,312,470
The low bid is about 12% lower than the engineer's estimate, and the next three
subsequent bids all fell within 10% of the engineer's estimate. Staff checked the
references and qualifications for Vasilj, Inc., and found them to be acceptable, with
adequate years of experience in completing contracts of similar nature to this project.
Therefore, staff recommends that Vasilj, Inc., be awarded the contract in the amount of
1,115,051 for the Annual Sewer ReplacemenUMaintenance Project, Fiscal Year 2019-
2020.
The proposed sewer replacement is categorically exempt from the provisions of the
California Environmental Quality Act (CEQA) under CEQA guidelines Section 15301
Existing Facilities" Class 1 (b). The Notice of Exemption has been filed with the County
Recorder's Office on April 16, 2020.
Construction is scheduled to begin in June 2020 and is expected to be completed within
120 calendar days.
7. ATTACHMENTS
1. Location Maps
2. Bid Abstract
3. Contract Agreement
ITEM 2 OS/12/2020
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CONTRACT
Annual Sewer Replacement/Maintenance FY19-20 (Bid No. 190-28)]
THIS CONTRACT (the "Contract") is made and entered into as of
2020 ("Effective Date") by and between the CITY OF ORANGE, a municipal corporation
City"),and VASILJ, INC., a California corporation("Contractor"),who agree as follows:
ARTICLE 1
Work Performed
a. For and in consideration of the payments and agreements hereinafter mentioned,to
be made and performed by City,and under the conditions expressed in the two(2)bonds presented
to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to
and shall do all the work and furnish all the labor, materials, tools and equipment, except such as
are mentioned in the specifications to be furnished by City to Contractor,necessary to complete in
good workmanship and substantial manner the work(the "Work") described in:
1) the Construction Plans for Annual Sewer Maintenance FY19-20 (Drawing 5-243])
prepared for City by Kevin Yamakawa, approved by the`Bngineer"(as defined herein below)on
March 11,2020, and consisting of sheets numbered 1 through 9, inclusive(the"Plans");
2) The latest edition of the "City of Orange Standard Plans and Specifications" (the
Orange Book") with the term "Engineer," as used in the Orange Book and in this Contract, to
specifically include the City Engineer(or his/her designee);
3) The "Standard Specifications for Public Works Construction"(the"Green Book"),
and all amendments thereto;
4) The "City of Orange Standard Special Provisions";
5) The Standard Plans; and
6) Contractar's Bid Proposal, which is on file with City's Department of Public
Works.
b. Contractor acknowledges that it has received the Plans from City and that a
complete copy of the Plans are in its possession and are hereby specifically referred to and by such
reference made a part hereo£ The Orange Book,Green Book and City of Orange Standard Special
Provisions and Standard Plans are on file with City's Public Works Director and are hereby
specifically referred to and by such reference made a part hereof. A copy of the Special Provisions
and Standard Plans will also be kept on file with the City Clerk. Contractor hereby acknowledges
that it has read,reviewed and understands the Plans,the Orange Book,the Green Book,the Special
Provisions, the Standard Plans, and the Encroachment Permit as they relate to the Work, all of
which documents shall be referred to herein collectively as the"Plans and Specifications."
c. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipal
Code which requires, among other things, that Contractor utilize City's exclusive solid waste
hauler for the rental of bins for trash and debris removal and imposes mandatory recycling
requirements for self-hauled construction and demolition waste. The terms and conditions set forth
in this Contract shall control over any terms and conditions in the Plans and Specifications to the
contrary.
d. The Work shall be performed in conformity with the Plans and Specifications and
the Bid Proposal and all applicable laws, including any and all applicable federal and state labor
laws and standards and applicable prevailing wage requirements and any and all state, federal and
local statutes, regulations and ordinances relating to the protection of human health or the
environment.
e. Unless and until otherwise notified in writing by City's Public Works Director,
City's Principal Engineer,Randy Nguyen("Authorized City Representative"),shall be the person
to whom Contractor will report for the performance of the Work hereunder. It is understood that
Contractor's performance hereunder shall be under the direction and supervision of the Authorized
City Representative or such other person as City's Public Works Director may designate from
time to time, that Contractor shall coordinate the Work hereunder with the Authorized City
Representative to the extent required by the Authorized City Representative, and that all
performances required hereunder by Contractor shall be performed to the satisfaction of the
Authorized City Representative or City's Public Works Director.
f.It is expressly agreed by and between the parties hereto that should there be any
conflict between the terms of this instrument and Contractar's Bid Proposal, then this instrument
shall control and nothing herein shall be considered as an acceptance of the said terms of said Bid
Proposal conflicting herewith.
ARTICLE 2
Commencement of Work
Contractor shall commence the Work provided for in this Contract within fifteen(15)days
of the date of the issuance by City of a Notice to Proceed and diligently prosecute completion of
the Work within one hundred twenty(120) calendar 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
Compensation
a. Contractor agrees to receive and accept an amount not to exceed ONE MILLION
ONE HUNDRED FIFTEEN THOUSAND FIFTY-ONE DOLLARS and 00/100 ($1,115,051.00)
as compensation for furnishing all materials and doing all the Work contemplated and embraced
in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the
Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may
arise or be encountered in the prosecution of the Work until its acceptance by City, other than as
2
provided below; (3) all risks of every description connected with the Work; (4) all expenses
incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and
faithfully completing the Work, and for the whole thereof, in the manner and according to the
Plans and Specifications, and requirements of the Authorized City Representative under them.
Retention amounts shall be withheld from progress payments as required by law unless Contractor
provides securities in lieu of retention.
b. In addition to the scheduled Work to be performed by the Contractor, the parties
recognize that additional, unforeseen work and services may be required by the Authorized City
Representative. In anticipation of such contingencies, the sum of ONE HLTNDRED SIXTY-
SEVEN THOUSAND TWO HUNDRED FIFTY-SEVEN DOLLARS and 65/100 ($167,257.65)
has been added to the total compensation of this Contract. The Authorized City Representative
may approve the additional work and the actual costs incurred by the Contractor in performance
of additional work or services in accordance with such amount as the Authorized City
Representative and the Contractor may agree upon in advance. Said additional work or services
and the amount of compensation therefor, up to the amount of the authorized contingency, shall
be memorialized in the form of a Contract Amendment approved by the City Manager on a form
acceptable to the City Attorney. The Contractor agrees to perform only that work or those services
that are specifically requested by the Authorized City Representative. Any and all additional work
and services performed under this Contract shall be completed in such sequence as to assure their
completion as expeditiously as is consistent with professional skill and care in accordance with a
cost estimate ar proposal submitted to and approved by the Authorized City Representative prior
to the commencement of such Work or services.
c. The total amount of compensation under this Contract, including contingencies, shall
not exceed ONE MILLION TWO HUNDRED EIGHTY-TWO THOUSAND THREE
HLTNDRED EIGHT DOLLARS and 60/100 ($1,282,308.60).
ARTICLE 4
Licenses
Contractor represents that it and any subcontractors it may engage, possess any and all
licenses which are required under state or federal law to perform the Work contemplated by this
Contract and that Contractor and subcontractors shall maintain all appropriate licenses, including
a City of Orange business license, at its cost, during the performance of this Contract.
ARTICLE 5
Guarantees
a. Contractor guarantees the construction and installation of all Work included in the
Plans and Specifications for which Contractor has been awarded this Contract.
b. Should any of the materials or equipment installed pursuant to this Contract prove
defective or should the Work as a whole prove defective, due to faulty equipment, workmanship,
materials furnished or methods of installations, or should said Work or any part thereof fail to
function properly, as designed,due to any of the above causes within twelve(12)months after the
date on which said Work is accepted by City, Contractor shall make repairs and furnish such
3
materials and equipment as are necessary to be furnished and installed within fifteen(I S)calendar
days after the receipt of a demand from City.
c. Said Work will be deemed defective within the meaning of this guarantee in the
event that it fails to function as originally intended either by the Plans and Specifications of this
Contract or by the manufacturer(s)of the equipment incorporated into the Work.
d. In the event repairs are not made within fifteen(15)calendar days after Contractor's
receipt of a demand from City, City shall have the unqualified option to make any needed repairs
or replacements itself or by any other contractor. Contractor shall reimburse City, upon demand,
for all expenses incurred in restoring said Work to the condition contemplated in this Contract,
including the cost of any equipment or materials replaced.
e. It is understood that emergency repairs may, by necessity, be made by City.
Therefore, when defective equipment, materials or workmanship result in emergency repairs by
City, Contractor shall reimburse City,upon demand,for all expenses incurred. Emergency repairs
will be deemed as those repairs determined by City's Director of Public Works to be necessary
due to an immediate detriment to the health, safety, welfare or convenience of the residents of
City.
ARTICLE 6
Water Quality
a. The Santa Ana Regional Water Quality Control Board ("RWQCB") has issued
National Pollutant Discharge Elimination System ("NPDES") Permit No. R8-2009-0030 (the
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,
the County of Orange has prepared a Drainage Area Management Plan ("DAMP"), containing
Model Maintenance Procedures with Best Management Practices (`BMPs") that City and its
contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and
source control techniques to minimize the impact of those activities upon dry-weather urban
runoff, storm water runoff, and receiving water quality. Examples include: wash water from
cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped
areas.
b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the
office of City's Director of Public Works. Contractor hereby acknowledges that it has read,
reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures,as they
relate to the Work and hereby shall perform the Work in conformance therewith.
ARTICLE 7
Independent Contractor; Contractor not Agent
a. At all times during the term of this Contract, Contractor shall be an independent
contractor and not an employee of City. City shall have the right to control Contractor only insofar
as the result of Contractor's services rendered pursuant to this Contract. City shall not have the
right to control the means by which Contractor accomplishes services rendered pursuant to this
4
Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and
equipment which may be required for furnishing services pursuant to this Contract. Contractor
shall be solely responsible for,and shall indemnify,defend and save City harmless from all matters
relating to the payment of its subcontractors, agents and employees, including compliance with
social security,withholding and all other wages,salaries,benefits,taxes,exactions,and regulations
of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors,
agents or employees employed by Contractor shall not, under any circumstances, be considered
employees of City, and that they shall not be entitled to any of the benefits or rights afforded
employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public
Employees Retirement System benefits, or health, life, dental, long-term disability or workers'
compensation insurance benefits.
b. Except as City may specify in writing, Contractor shall have no authority, express
or implied,to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have
no authority,express or implied,to bind City to any obligation whatsoever.
ARTICLE 8
Public Work; Prevailing Wage
a. The Work which is the subject of this Contract is a "public work," as that term is
defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.
To the extent Contractor's employees will perform any work that falls within any of the
classifications for which the Department of Labor Relations of the State of California promulgates
prevailing wage determinations, Contractor hereby agrees that Contractor, and any subcontractor
under it, shall pay not less than the specified prevailing rates of wages to all such workers. The
general prevailing wage determinations for crafts can be located on the website of the Department
of lndusri-ial Relations (www.dir.ca.ov/DLSR). Additionally, to perform work under this
Contract, Contractor must meet all State registration requirements and criteria, including project
compliance monitoring.
b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a
copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and
1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed
and understands those provisions of the Labor Code and shall prosecute and complete the Work
under this Contract in strict compliance with all of those terms and provisions.
c. Contractor shall secure the payment of compensation to its employees in
accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and
as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:
I am aware of the provisions of Section 3700 of the Labor Code which require
every employer to be insured against liability for workers' compensation or to
undertake self-insurance in accordance with the provisions of that code, and I
will comply with such provisions before commencing the performance of the
work of this contract."
5
d. Contractor shall indemnify,protect,defend and hold harmless City and its officers,
employees, contractors and agents, with counsel reasonably acceptable to City, from and against
any and all loss, liability, damage, claim, cost, expense, and/or "increased costs" (including
reasonable attorney's fees, court and litigation costs, and fees of expert witnesses)which result ar
arise in any way from the noncompliance by Contractor of any applicable local,state and/or federal
law, including, without limitation, any applicable federal and/or state labor laws (including,
without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that,
in connection with the construction of the Work which is the subject of this Contract, Contractor
shall bear all risks of payment ar non-payment of state prevailing wages. "Increased costs" as
used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the
same may be enacted, adopted or amended from time to time. The foregoing indemnity shall
survive termination of this Contract.
ARTICLE 9
Equal Employment Opportunity
During the performance of this Contract,Contractor agrees as follows:
a. Contractor shall not discriminate against any employee or applicant for
employment because of race, color,religion, sex, national origin, mental or physical disability, or
any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed
and that employees are treated during employment, without regard to their race, color, religion,
sex,national origin, mental or physical disability, or any other basis prohibited by applicable law.
Such actions shall include,but not be limited to the following: employment,upgrading, demotion
or transfer,recruitment or recruitment advertising,layoff or termination,rates of pay or other forms
of compensation and selection for training, including apprenticeship. Contractor shall post in
conspicuous places, available to employees and applicants for employment, a notice setting forth
provisions of this non-discrimination clause.
b. Contractor shall,in all solicitations and advertisements for employees placed by,or
on behalf of Contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex, national origin, mental or physical
disability, or any other basis prohibited by applicable law.
c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all
subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall
not apply to subcontracts for standard commercial supplies or raw materials.
ARTICLE 10
Conflicts of Interest
Contractor agrees that it shall not make, participate in the making, or in any way attempt
to use its position as a contractor to influence any decision of City in which Contractor knows or
has reason to know that Contractor,its officers, partners,or employees have a financial interest as
defined in Section 87103 of the Government Code.
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ARTICLE 11
indemnity
Contractor shall defend, indemnify and hold harmless City and its officers, officials,
agents, and employees from and against:
a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses
including reasonable attorneys'fees and court costs)which City may directly or indirectly sustain
or suffer arising from or as a result of the death of any person or any accident, injury, loss or
damage whatsoever caused to any person or the property of any person which shall occur on or
adjacent to the real property which is the subject of this Contract, or in connection with
performance of this Contract which may be directly or indirectly caused by the acts or omissions
of Contractor or its officers, employees, contractors or agents, or as a consequence of any use,
generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or
substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any
willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents,
and employees. The foregoing indemnity shall survive termination of this Contract.
b. Any and all claims under workers' compensation acts and other employee benefit
acts with respect to Contractor's employees or Contractor's subcontractor's employees arising out
of Contractor's Work under this Contract, including any and all claims under any law pertaining
to Contractor's status as an independent contractor.
ARTICLE 12
Insurance
a. Contractor shall procure and maintain for the duration of this Contract insurance
against claims for injuries to persons or damages to property which may arise from or in connection
with the performance of the Work hereunder and the results of that Work by Contractor, 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 occurrence for bodily injury,personal
injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.
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2) Automobile Liability 1,000,000 per accident for bodily injury and
property damage.
3) Workers' Compensation as required by the State of California.
4) Employer's Liability 1,000,000 per accident for bodily injury or disease.
c. Any insurance proceeds in excess of or broader than the minimum required
coverage and/or minimum required limits which are applicable to a given loss shall be available
to City. No representation is made that the minimum insurance requirements of this Contract are
sufficient to cover the obligations of Contractor under this Contract.
d. Any deductibles or self-insured retentions must be declared to and approved by
City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-
insured retentions with respect to City, its officers, officials, agents and employees; or Contractor
shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related
investigations, claim administration, and defense expenses.
e. Each policy of general liability and automotive liability insurance shall contain, or
be endorsed to contain, the following provisions:
1) City, its officers, officials, agents, and employees are declared to be additional
insureds under the terms of the policy,with respect to liability arising out of automobiles owned,
leased, hired or borrowed by or on behalf of Contractor (any auto), and with respect to liability
arising out of Work or operations performed by or on behalf of Contractor, including materials,
parts or equipment furnished in connection with such Work or operations. A policy endorsement
to that effect shall be provided to City along with the certificate of insurance. In lieu of an
endorsement, City will accept a copy of the policy(ies)which evidences that City is an additional
insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall
apply to City as an additional insured.
2) For any claims related to this Contract, Contractor's insurance coverage shall be
primary insurance with respect to City,its officers,officials,agents and employees. Any insurance
or self-insurance maintained by City, its officers, officials, agents and employees shall be excess
of Contractor's insurance and shall not contribute with it.
3) Coverage shall not be canceled, except after thirty (30) days' prior written notice
has been provided to City.
f.Contractor shall furnish City with original certificates of insurance and
endorsements effecting coverage required by this Article 12. The endorsements shall be on forms
acceptable to City. All certificates and endorsements are to be received and approved by City
before the Wark 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.
8
g. All insurance procured and maintained by Contractor shall be issued by insurers
admitted to conduct the pertinent line of insurance business in California and having a rating of
Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.
h. Contractor shall immediately notify City if any required insurance lapses or is
otherwise modified and cease performance of this Contract unless otherwise directed by City. In
such a case,City may procure insurance or self-insure the risk and charge Contractor for such costs
and any and all damages resulting therefrom by way of set-off from any sums owed Contractor.
i.Contractor agrees that in the event of loss due to any of the perils for which it has
agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor
hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City
with respect to the services of Contractor herein, a waiver of any right to subrogation which any
such insurer may acquire against City by virtue of the payment of any loss under such insurance.
The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of
City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor
shall obtain any other endorsement that may be necessary to effect this waiver of subrogation.
j.Contractor shall require and verify that all subcontractors maintain insurance
meeting all of the requirements stated herein.
ARTICLE 13
Termination
City, acting through its City Manager or 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, Contractor shall immediately cease work, unless the notice
provides otherwise. Should City terminate this Contract, City shall pay Contractor for services
satisfactorily provided and all allowable reimbursements incurred to the date of termination in
compliance with this Contract,unless such termination shall be for cause,in which event City may
withhold any disputed compensation. City shall not be liable for any claim of lost profits.
ARTICLE 14
Maintenance and Inspection of Records
ln accordance with generally accepted accounting principles, Contractor and its
subcontractors shall maintain reasonably full and complete books, documents, papers, accounting
records and other information (collectively, the "records") pertaining to the costs of and
completion of services performed under this Contract. During the term of this Contract and for a
period of three (3)years after termination or completion of this Contract, City shall have the right
to inspect and/or audit Contractor's records pertaining to the performance of this Contract at
Contractor's office. Contractor shall make available all such records for inspection or audit at its
offices during normal business hours and upon three(3)days' notice from City,and copies thereof
shall be furnished if requested.
9
ARTICLE 15
Compliance with Laws
a. Contractor shall be knowledgeable of and comply with all local, state and federal
laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by
Contractor or any subcontractor hereunder.
b. Contractor represents and warrants that it:
1) Has complied and shall at all times during the term of this Contract comply, in all
respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including,
without limitation, the Immigration Reform and Control Act of 1986(IRCA); and
2) Has not and will not knowingly employ any individual to perform services under
this Contract who is ineligible to work in the United States or under the terms of this Contract; and
3) Has properly maintained, and shall at all times during the term of this Contract
properly maintain, all related employment documentation records including, without limitation,
the completion and maintenance of the Form I-9 for each of Contractor's employees; and
4) Has responded, and shall at all times during the term of this Contract respond, in a
timely fashion to any government inspection requests relating to immigration law compliance
and/or Form I-9 compliance and/or worksite enforcement by the Department of Homeland
Security,the Department of Labor, or the Social Security Administration.
c. Contractor shall require all subcontractors and/or subconsultants to make the same
representations and warranties required by this Article 15 when hired to perform services under
this Contract.
d. Contractor shall,upon request of City,provide a list of all employees working under
this Contract and shall provide, to the reasonable satisfaction of City, verification that all such
employees are eligible to work in the United States. All costs associated with such verification
shall be borne by Contractor. Once such request has been made, Contractor may not change
employees working under this Contract without written notice to City, accompanied by the
verification required herein for such employees. Contractor shall require all subcontractors and/or
sub-consultants to make the same verification when hired to perform services under this Contract.
e. If Contractor,or a subcontractor or subconsultant,knowingly employs an employee
providing Work under this Contract who is not authorized to work in the United States, and/or
fails to follow federal laws to determine the status of such employee, such shall constitute a
material breach of this Contract and may be cause for immediate termination of this Contract by
City.
f.Contractor shall indemnify and hold City, its officials and employees harmless for,
of and from any loss, including but not limited to fines, penalties and corrective measures, City
may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in
connection with the performance of this Contract.
10
ARTICLE 16
Governing Law and Venue
This Contract shall be construed in accordance with and governed by the laws of the State
of California and Contractor shall submit to the jurisdiction of California courts. Venue for any
dispute arising under this Contract shall be in Orange County, California.
ARTICLE 17
Integration and Amendment
a. This Contract constitutes the entire agreement of the parties. No other agreement,
oral or written,pertaining to the Work to be performed under this Contract shall be of any force or
effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent
with or in violation of the provisions of this Contract shall not be compensated.
b. Amendments to this Contract must be in writing and signed by both parties. The
City Manager is authorized to execute amendments to this Contract up to the amounts specified in
Chapter 3.08 of the Orange Municipal Code.
ARTICLE 18
Notice
Except as otherwise provided herein, all notices required under this Contract shall be in
writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party
at the address listed below. Either party may change the notice address by notifying the other party
in writing. Notices shall be deemed received upon receipt of same or within three (3) days of
deposit in the U.S. Mail,whichever is earlier. Notices sent by e-mail shall be deemed received on
the date of the e-mail transmission.
CONTRACTOR" CITY"
Vasilj, Inc. City of Orange
15531 Arrow Hwy 300 E. Chapman Avenue
Irwindale, CA 91706 Orange, CA 92866-1591
Attn: Joe Vasilj Attn: Randy Nguyen
Telephone: 626-480-1442 Telephone: 714-744-5531
E-Mail: joevasilj@yahoo.com E-Mail: rnguyen@cityoforange.org
ARTICLE 19
Claim Resolution
City and Contractor agree that the claim resolution process applicable to any claim by
Contractor in connection with the Work provided herein shall be subject to the procedures set forth
11
in California Public Contract Code Section 9204, attached hereto as Attachment No. 2, and
incorporated herein by this reference.
ARTICLE 20
Counterparts
This Contract may be executed in one or more counterparts,each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. Signatures
transmitted via facsimile and electronic mail shall have the same effect as original signatures.
IN WITNESS of this Contract, the parties have entered into this Contract as of the year
and day first above written.
CONTRACTOR" CITY"
VASILJ, INC.,a California corporation CITY OF ORANGE, a municipal corporation
By: By:
Printed Name: Mark A. Murphy,Mayor
Title:
By: ATTEST:
Printed Name:
Title:
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
Mary E. Binning
Senior Assistant City Attorney
NOTE: The City requires the following signature(s) on behalf of the Contractor:
1)the Chairman of the Board,the President or a Vice-President,AND(2)the
Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary
or an Assistant Treasurer. If only one corporate officer exists or one corporate
officer holds more than one corporate office,please so indicate.OR
The corporate officer named in a corporate resolution as authorized to enter
into this Contract. A copy of the corporate resolution, certified by the
Secretary close in time to the execution of the Contract, must be provided to
the City
12
ATTACHMENT NO. 1
CALIFORNIA LABOR CODE
SECTIONS 1725.5, 1771, 17711, 1771.4, 1775, 1776, 1777.5, 1813 and 1815
Section 1725.5. Registration of contractors; mandatory registration; qualifications and application;
fees; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal,
subject to the requirements of Section 4104 of the Public Contract Code,or engage in the performance of any
public work contract that is subject to the requirements of this chapter. For the purposes of this section,
contractor" includes a subcontractor as defined by Section 1722.1.
a) To qualify for registration under this section, a contractor shall do all of the following:
1)(A) Register with the Department of Industrial Relations in the manner prescribed by the department and
pay an initial nonrefundable application fee of four hundred dollars ($400) to qualify for registration under
this section and an annual renewal fee on or before July 1 of each year thereafter. The annual renewal fee
shall be in a uniform amount set by the Director of Industrial Relations,and the initial registration and renewal
fees may be adjusted no more than annually by the director to support the costs specified in Section 17713.
B) Beginning June 1, 2019, a contractor may register or renew according to this subdivision in annual
increments up to three years from the date of registration. Contractors who wish to do so will be required to
prepay the applicable nonrefundable application or renewal fees to qualify for the number of years for which
they wish to preregister.
2)Provide evidence, disclosures, or releases as are necessary to establish all of the following:
A) Workers' compensation coverage that meets the requirements of Division 4 (commencing with Section
3200) and includes sufficient coverage for any worker whom the contractor employs to perform work that is
subject to prevailing wage requirements other than a contractor who is separately registered under this section.
Coverage may be evidenced by a current and valid certificate of workers' compensation insurance or
certification of self-insurance required under Section 7125 of the Business and Professions Code.
B) If applicable,the contractor is licensed in accordance with Chapter 9(commencing with Section 7000)of
the Business and Professions Code.
C) The contractor does not have any delinquent liability to an employee or the state for any assessment of
back wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or
determination by a court or any federal,state,or local administrative agency,including a confirmed arbitration
award. Iowever, for purposes of this paragraph, the contractor shall not be disqualified for any judgment,
order, or determination that is under appeal, provided that the contractor has secured the payment of any
amount eventually found due through a bond or other appropriate means.
D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law
providing for the debarment of contractors from public works.
E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the
performance of a contract for public works without being lawfully registered in accordance with this section,
within the preceding 12 months or since the effective date of the requirements set forth in subdivision (e),
whichever is earlier. If a contractor is found to be in violation of the requirements of this paragraph,the period
Attachment No. 1 roir9
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 two thousand dollars($2,000).
b) Fees received pursuant to this section shall be deposited in the State Public Works Enforcement Fund
established by Section 1771.3 and shall be used only for the purposes specified in that section.
c) A contractor who fails to pay the renewal fee required under paragraph (1)of subdivision(a) on ar before
the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the
performance of any contract for public work until once again registered pursuant to this section. If the failure
to pay the renewal fee was inadvertent, the contractor may renew its registration retroactively by paying an
additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the
due date of the renewal fee.
d) If, after a body awarding a contract accepts the contractor's bid or awards the contract, the work covered
by the bid or contract is determined to be a public work to which Section 1771 applies, either as the result of
a determination by the director pursuant to Section 1773.5 or a court decision,the requirements of this section
shall not apply, subject to the following requirements:
1)The body that awarded the contract failed, in the bid specification or in the contract documents,to identify
as a public work that portion of the work that the determination or decision subsequently classifies as a public
work.
2) Within 20 days following service of notice on the awarding body of a determination by the Director of
Industrial Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work
as defined in this chapter, the contractor and any subcontractors are registered under this section or are
replaced by a contractor or subcontractors who are registered under this section.
3) The requirements of this section shall apply prospectively only to any subsequent bid, bid proposal,
contract, or work performed after the awarding body is served with notice of the determination or decision
referred to in paragraph(2).
e) The requirements of this section shall apply to any bid proposal submitted on or after March 1, 2015, to
any contract for public work, as defined in this chapter, executed on or after April 1, 2015, and to any work
performed under a contract for public work on or after January 1, 2018, regardless of when the contract for
public work was executed.
This section does not apply to work performed on a public works project of twenty-five thousand dollars
25,000)or less when the project is for construction, alteration, demolition, installation, or repair work or to
work performed on a public works project of fifteen thousand dollars($15,000)or less when the project is for
maintenance work.
Section 1771. Payment of general prevailing rate
Except for public works projects of one thousand dollars ($1,000) or less, not less than the general
prevailing rate of per diem wages for work of a similar character in the locality in which the public work is
performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work
fixed as provided in this chapter, shall be paid to all workers employed on public works.
Attachment No. 1 loi v
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 perform public work pursuant to Section
1725.5 at the time the contract is awarded.
b) Notice of the requirement described in subdivision (a) shall be included in all bid invitations and public
works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of
the contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5.
c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid
proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive,
provided that any of the following apply:
1)The subcontractor is registered prior to the bid opening.
2)Within 24 hours after the bid opening,the subcontractor is registered and has paid the penalty registration
fee specified in subparagraph(E)of paragraph(2)of subdivision(a)of Section 1725.5.
3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public
Contract Code.
d) Failure by a subcontractor to be registered to perform public work as required by subdivision(a) shall be
grounds under Section 4107 of the Public Contract Code for the contractor,with the consent of the awarding
authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5
in place of the unregistered subcontractor.
e) The department shall maintain on its Internet Web site a list of contractors who are currently registered to
perform public work pursuant to Section 1725.5.
A contract entered into with any contractor or subcontractar in violation of subdivision(a)shall be subject
to cancellation,provided that a contract for public work shall not be unlawful,void, or voidable solely due to
the failure of the awarding body, contractor,or any subcontractor to comply with the requirements of Section
1725.5 or this section.
g) If the Labor Commissioner or his or her designee determines that a contractor or subcontractor engaged
in the performance of any public work contract without having been registered in accordance with this section,
the contractor or subcontractor shall forfeit, as a civil penalty to the state,one hundred dollars($100) for each
day of work performed in violation of the registration requirement,not to exceed an aggregate penalty of eight
thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of
subparagraph(E) of paragraph(2) of subdivision(a) of Section 1725.5.
h)(1) In addition to, ar in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher
Attachment No. 1 roir9
Page 3 of 13
tiered public works contractor or subcontractor who is found to have entered into a subcontract with an
unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section
1725.5 or this section shall be subject to forfeiture,as a civil penalty to the state,of one hundred dollars($100)
for each day the unregistered lower tier subcontractor performs work in violation of the registration
requirement,not to exceed an aggregate penalty of ten thousand dollars($10,000).
2) The Labor Commissioner shall use the same standards specified in subparagraph (A) of paragraph (2) of
subdivision(a)of Section 1775 when determining the severity of the violation and what penalty to assess,and
may waive the penalty for a first time violation that was unintentional and did not hinder the Labor
Commissioner's ability to monitor and enforce compliance with the requirements of this chapter.
3)A higher tiered public works contractor ar subcontractor shall not be liable for penalties assessed pursuant
to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section
1725.5 due to the revocation of a previously approved registration.
4) A subcontractar 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 Labar
Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the
unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor
is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public
work.
2) A stop order may be personally served upon the contractor or subcontractor by either of the following
methods:
A) Manual delivery of the order to the contractor or subcontractor personally.
B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public
work and by thereafter mailing copies of the order by first class mail, postage prepaid to the contractor or
subcontractor at one of the following:
i)The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors'
State License Board.
ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contractors'
State License Board, the address of the site of the public work.
3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party
contracting with the unregistered contractor or subcontractor,by the unregistered contractor or subcontractor,
Attachment No. 1 nir9
Page 4 of 13
or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the
procedures, time limits, and other requirements specified in subdivision(a) of Section 238.1.
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 contractar or subcontractor, owner, director, officer, or managing agent of the contractor or
subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision (j) is guilty
of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding
ten thousand dollars ($10,000), or both.
1) This section shall apply to any bid proposal submitted on or after March 1, 2015, and any contract for
public work entered into on ar after April 1, 2015. This section shall also apply to the performance of any
public work,as defined in this chapter,on or after January 1,2018,regardless of when the contract for public
work was entered.
m)Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund
established by Section 1771.3 and shall be used only for the purposes specified in that section.
n) This section shall not apply to work performed on a public works project of twenty-five thousand dollars
25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to
work performed on a public works project of fifteen thousand dollars($15,000)or less when the project is for
maintenance work.
Section 1771.4. Additional requirements when bidding and awarding public works contracts
a) All of the following are applicable to all public works projects that are otherwise subject to the
requirements of this chapter:
1)The call for bids and contract documents shall specify that the project is subject to compliance monitoring
and enforcement by the Department of Industrial Relations.
2) The awarding body shall post or require the prime contractor to post job site notices, as prescribed by
regulation.
3) Each contractor and subcontractor shall furnish the records specified in Section 1776 directly to the Labor
Commissioner, in the following manner:
A) At least monthly or more frequently if specified in the contract with the awarding body.
B) In a format prescribed by the Labor Commissioner.
4) If the contractor or subcontractor is not registered pursuant to Section 1725.5 and is performing work on
a project for which registration is not required because of subdivision( of Section 1725.5, the unregistered
contractor or subcontractor is not required to furnish the records specified in Section 1776 directly to the
Labor Commissioner but shall retain the records specified in Section 1776for at least three years after
completion of the work.
Attachment No. 1 roii9
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 from compliance with all or part of the
requirements of subdivision(a) if either of the following occurs:
1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5,on
all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of
Section 1771.5, continuously since December 31, 2011.
2)The awarding body has entered into a collective bargaining agreement that binds all contractors performing
work on the project and that includes a mechanism for resolving disputes about the payment of wages.
c)The requirements of paragraph(1)of subdivision(a)shall only apply to contracts for public works projects
awarded on or after January 1,2015.
d) The requirements of paragraph (3) of subdivision(a) shall apply to all contracts for public work, whether
new or ongoing, on or after January 1, 2016.
Section 1775. Penalties for violations
a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political
subdivision on whose behalf the contract is made ar awarded,forfeit not more than two hundred dollars($200)
for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as
determined by the director for the work or craft in which the worker is employed for any public work done
under the contract by the contractor or, except as provided in subdivision(b),by any subcontractor under the
contractor.
2)(A)The amount of the penalty shall be determined by the Labor Commissioner based on consideration of
both of the following:
i)Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good
faith mistake and, if so,the error was promptly and voluntarily corrected when brought to the attention of the
contractor or subcontractor.
ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage
obligations.
B)(i)The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each
worker paid less than the prevailing wage rate,unless the failure of the contractor or subcontractor to pay the
correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily
corrected when brought to the attention of the contractor or subcontractor.
ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each
worker paid less than the prevailing wage rate, if the contractor or subcontractor has been assessed penalties
within the previous three years for failing to meet its prevailing wage obligations on a separate contract,unless
those penalties were subsequently withdrawn or overtumed.
iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion
thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that
the violation was willful, as defined in subdivision(c)of Secrion 1777.1.
Attachment No. 1 m i9
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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 that this section will be complied with.
b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate
of per diem wages by the subcontractor,the prime contractor of the project is not liable for any penalties under
subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the
specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of
the following requirements:
1) The contract executed between the contractor and the subcontractor for the performance of work on the
public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5,
1813,and 1815.
2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the
subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor.
3)Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing
rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including,but
not limited to,retaining sufficient funds due the subcontractor for work performed on the public works project.
4) Priar to making final payment to the subcontractor for work performed on the public warks project, the
contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the
subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the
public works project and any amounts due pursuant to Section 1813.
c)The Division of Labor Standards Enforcement shall notify the contractor on a public works project within
15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a
subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.
Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive
nonredacted copies of certified records; noncompliance penalties; rules
a) Each contractor and subcontractor shall keep accurate payroll recards, showing the name, address, social
security number, work classification, straight time and overtime hours worked each day and week, and the
actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or
her in connection with the public work. Each payroll recard shall contain or be verified by a written
declaration that it is made under penalty of perjury, stating both of the following:
1)The information contained in the payroll record is true and conect.
Attachment No. 1 roirv
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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 furnished upon request to a representative of the body awarding the contract and the Division of Labor
Standards Enforcement of the Department of Industrial Relations.
3) A certified copy of all payroll records enumerated in subdivision(a)shall be made available upon request
by the public for inspection or for copies thereof. However, a request by the public shall be made through
either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll
records have not been provided pursuant to paragraph(2), the requesting party shall, prior to being provided
the records,reimburse the costs of preparation by the contractor, subcontractors,and the entity through which
the request was made. The public may not be given access to the records at the principal office of the
contractor.
c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of
subdivision(a)of Section 1771.4, the certified payroll records shall be on forms provided by the Division of
Labor Standards Enforcement or shall contain the same information as the forms provided by the division.
The payroll records may consist of printouts of payroll data that are maintained as computer records, if the
printouts contain the same information as the forms provided by the division and the printouts are verified in
the manner specified in subdivision(a).
d)A contractor or subcontractar 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 marked or obliterated. Any copy of records made available for inspection
by, or furnished to, a multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the
records for the purposes of allocating contributions to participants shall be marked or obliterated only to
prevent disclosure of an individual's full social security number, but shall provide the last four digits of the
social security number. Any copy of records made available for inspection by, or furnished to, a joint labor-
management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29
U.S.C. Sea 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security
number.
fl(1)Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike
Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance
Code and other law enforcement agencies investigating violations of law shall, upon request, be provided
nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for
inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike
AttaChment No. 1 roir9
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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 far damages in a civil action for any reasonable act or omission taken in
good faith in compliance with this subdivision.
g)The contractor shall inform the body awarding the contract of the location of the records enumerated under
subdivision (a), including the street address, city, and county, and shall, within five working days, provide a
notice of a change of location and address.
h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice
requesting the records enumerated in subdivision(a). In the event that the contractor or subcontractor fails to
comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose
behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion
thereof, for each warker, until strict compliance is effectuated. Upon the request of the Division of Labor
Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is
not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply
with this section.
i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this
section.
j)The director shall adopt rules consistent with the California Public Records Act(Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of
1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the
release of these records, including the establishment of reasonable fees to be charged for reproducing copies
of records required by this section.
Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable
craft or trade; exemptions; contributions; compliance program
a)(1) This chapter does not prevent the employment upon public warks of properly registered
apprentices who are active participants in an approved apprenticeship program.
2) For purposes of this chapter, "apprenticeship program" means a program under the jurisdiction of the
California Apprenticeship Council established pursuant to Section 3070.
b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for
apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or
trade to which he or she is registered.
2)Unless otherwise provided by a collective bargaining agreement,when a contractor requests the dispatch
of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice
to fill out an application or undergo testing, training, an examination, or other preemployment process as a
condition of employment, the apprentice shall be paid for the time spent on the required preemployment
activity,including travel time to and from the required activity,if any,at the prevailing rate of per diem wages
for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective
bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on
preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or
she fails to pass that test.
Attachment No. 1 roii9
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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 California Apprenticeship Council.
d) If the contractor to whom the contract is awarded by the state or any political subdivision, in performing
any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall
employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program
in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the
contractor under the apprenticeship standards for the employment and training of apprentices in the area or
industry affected. However,the decision of the apprenticeship program to approve or deny a certificate shall
be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs,upon
approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered
by an apprenticeship program's standards shall not be required to submit any additional application in order
to include additional public works contracts under that program. "Apprenticeable craft or trade," as used in
this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and
regulations prescribed by the California Apprenticeship Council. As used in this section, "contractor"
includes any subcontractor under a contractor who performs any public works not excluded by subdivision
o).
e) Before commencing work on a contract for public works, every contractor shall submit contract award
information to an applicable apprenticeship program that can supply apprentices to the site of the public work.
The information submitted shall include an estimate of journeyman hours to be performed under the contract,
the number of apprentices proposed to be employed, and the approximate dates the apprentices would be
employed. A copy of this information shall also be submitted to the awarding body, if requested by the
awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor
shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the
journeyman and apprentice hours performed on the contract. The information under this subdivision shall be
public. The apprenticeship programs shall retain this information for 12 months.
The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure
equal employment and affirmative action in apprenticeship for women and minorities.
g) The ratio of work performed by apprentices to journeymen employed in a particular craft or trade on the
public work may be no higher than the ratio stipulated in the apprenticeship standards under which the
apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as
otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every
five hours of journeyman work.
h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day when
any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the
day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or
40 hours per week shall not be used to calculate the ratio. The contractor shall employ apprentices for the
number of hours computed as above before the end of the contract or, in the case of a subcontractor, before
the end of the subcontract. However,the contractor shall endeavor,to the greatest extent possible,to employ
Attachment No. 1 ioii9
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apprentices during the same time period that the journeymen in the same craft or trade are employed at the
jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator
of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less
than one apprentice for each five journeymen in a craft or trade classification.
i)A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards
upon the issuance ofthe approval certificate, or who has been previously approved for an apprenticeship
program in the craft or trade,shall employ the number of apprentices or the ratio of apprentices to journeymen
stipulated in the applicable apprenticeship standards, but in no event less than the 1-to-5 ratio required by
subdivision (g).
j)Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the
state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every
five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate
exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade.
k)An apprenticeship program has the discretion to grant to a participating contractor or contractor association
a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the
contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions
is met:
1)Unemployment for the previous three-month period in the area exceeds an average of 15 percent.
2) The number of apprentices in training in the area exceeds a ratio of 1 to 5.
3)There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen
annually through apprenticeship training, either on a statewide basis or on a local basis.
4) Assignment of an apprentice to any work performed under a public works contract would create a
condition that would jeopardize his or her life or the life,safety,or property of fellow employees or the public
at large, or the specific task to which the apprentice is to be assigned is of a nature that training cannot be
provided by a journeyman.
1) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a
specific trade from the 1-to-5 ratio on a local or statewide basis,the member contractors shall not be required
to submit individual applications for approval to local joint apprenticeship committees, if they are already
covered by the local apprenticeship standards.
m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract,
employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California
Apprenticeship Council the same amount that the director determines is the prevailing amount of
apprenticeship training contributions in the area of the public works site. A contractor may take as a credit
for payments to the council any amounts paid by the contractor to an approved apprenticeship program that
can supply apprentices to the site of the public works project. The contractor may add the amount of the
contributions in computing his or her bid for the contract.
2)(A) At the conclusion of the 2002-03 fiscal year and each fiscal year thereafter, the California
Apprenticeship Council shall distribute training contributions received by the council under this subdivision,
less the expenses of the Department of Industrial Relations for administering this subdivision, by making
Attachment No. 1 rni19
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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 contributions not distributed under clauses (i) and (ii) shall be used to defray the future
expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship
and preapprenticeship standards and requirements under this code.
B)An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the
apprenticeship program agrees,prior to the receipt of any grant funds,to keep adequate records that document
the expenditure of grant funds and to make all records available to the Department of Industrial Relations so
that the Department of Industrial Relations is able to verify that grant funds were used solely for training
apprentices. For purposes of this subparagraph, adequate records include, but are not limited to, invoices,
receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be
deemed to require an apprenticeship program to provide the Department of Industrial Relations with more
documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant to this
subdivision.
C)The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used
solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds
are expended or if an apprenticeship program is found to be using grant funds for purposes other than training
apprentices, then the apprenticeship program shall not be eligible to receive any future grant pursuant to this
subdivision and the Department of Industrial Relations may initiate the process to rescind the registration of
the apprenticeship program.
3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship
Training Contribution Fund, which is hereby created in the State Treasury. Upon appropriation by the
Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of
carrying out this subdivision and to pay the expenses of the Department of Industrial Relations.
n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this
section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable
occupations with the prime contractor.
o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not
bidding for work through a general or prime contractor when the contracts of general contractors or those
specialty contractors involve less than thiriy thousand dollars ($30,000).
p)An awarding body that implements an approved labor compliance program in accordance with subdivision
b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this section under
the terms and conditions prescribed by the director.
Section 1813. Forfeiture for violations; contract stipulation; report of violations
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The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose behalf the
contract is made or awarded, forfeit twenty- five dollars ($25) for each worker employed in the execution of
the contract by the respective contractor or subcontractor for each calendar day during which the worker is
required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar
week in violation of the provisions of this article. In awarding any contract for public work, the awarding
body shall cause to be inserted in the contract a stipulation to this effect. The awarding body shall take
cognizance of all violations of this article committed in the course of the execution of the contract, and shall
report them to the Division of Labor Standards Enforcement.
Section 1815. Overtime
Notwithstanding the provisions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any
stipulation inserted in any contract pursuant to the requirements of said sections, work performed by
employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted
upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than 1 '/
times the basic rate of pay.
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ATTACHMENT NO. 2
CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204
Section 9204. Legislative findings and declarations regarding timely and complete payment of
contractors for public works projects; claims process (Ef£ January 1, 2017)
a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that
all construction business performed on a public works project in the state that is complete and not in dispute
is paid in full and in a timely manner.
b)Notwithstanding any other law,including,but not limited to,Article 7.1 (commencing with Section 10240)
of Chapter 1 of Part 2, Chapter 10(commencing with Section 19100)of Part 2, and Article 1.5 (commencing
with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection
with a public works project.
c) For purposes of this section:
1) "Claim" means a separate demand by a contractor sent by registered mail or certified mail with return
receipt requested, for one or more of the following:
A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed
by a public entity under a contract for a public works project.
B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the
contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly
provided or to which the claimant is not otherwise entitled.
C) Payment of an amount that is disputed by the public entity.
2) "Contractor" means any type of contractor within the meaning of Chapter 9 (commencing with Section
7000)of Division 3 of the Business and Professions Code who has entered into a direct contract with a public
entity for a public works project.
3)(A) "Public entity" means, without limitation, except as provided in subparagraph (B), a state agency,
department, office, division, bureau, board, or commission, the California State University,the University of
California, a city, including a charter city, county, including a charter county, city and county, including a
charter city and county,district, special district, public authority, political subdivision, public corporation, or
nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the
public agency.
B) "Public entity" shall not include the following:
i)The Department of Water Resources as to any project under the jurisdiction of that department.
ii)The Department of Transportation as to any project under the jurisdiction of that department.
iii)The Department of Parks and Recreation as to any project under the jurisdiction of that department.
iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction
pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code.
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, construction, alteration,repair, or improvement of any public
structure,building, road, or other public improvement of any kind.
5)"Subcontractor"means any type of contractor within the meaning of Chapter 9 (commencing with Section
7000)of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or
is a lower tier subcontractor.
d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall
conduct a reasonable review of the claim and,within a period not to exceed 45 days,shall provide the claimant
a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon
receipt of a claim,a public entity and a contractor may,by mutual agreement, extend the time period provided
in this subdivision.
B)The claimant shall furnish reasonable documentation to support the claim.
C) If the public entity needs approval from its governing body to provide the claimant a written statement
identifying the disputed portion and the undisputed portion of the claim, and the governing body does not
meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent
by registered mail or certified mail, retum receipt requested, the public entity shall have up to three days
following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension,
expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion.
D)Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after
the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph
3)shall apply.
2)(A) If the claimant disputes the public entity's written response, or if the public entity fails to respond to a
claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an
informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in
writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a
meet and confer conference within 30 days for settlement of the dispute.
B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any
portion of the claim remains in dispute, the public entity shall provide the claimant a written statement
identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment
due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity
issues its written statement. Any disputed portion of the claim,as identified by the contractor in writing, shall
be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs
equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the
disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each
party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with
regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective
mediator in connection with the selection of the neutral mediator. If inediation is unsuccessful, the parts of
the claim remaining in dispute shall be subject to applicable procedures outside this section.
Attachment No. 2
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C) For purposes of this section, mediation includes any nonbinding process, including but not limited to,
neutral evaluation or a dispute review board, in which an independent third party or board assists the parties
in dispute resolution through negotiation or by issuance of an evaluation.Any mediation utilized shall conform
to the timeframes in this section.
D) Unless otherwise agreed to by the public entity and the contractor in writing the mediation conducted
pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation
has been commenced.
E) This section does not preclude a public entity from requiring arbitration of disputes under private
arbitration or the Public Works Contract Arbitration Program,if inediation under this section does not resolve
the parties' dispute.
3) Failure by the public entity to respond to a claim from a contractor within the time periods described in
this subdivision or to otherwise meet the time requirements of this section shall result in the claim being
deemed rejected in its entirety.A claim that is denied by reason of the public entity's failure to have responded
to a claim,or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse
finding with regard to the merits of the claim or the responsibility or qualifications of the claimant.
4)Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
5)If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity
because privity of contract does not exist,the contractor may present to the public entity a claim on behalf of
a subcontractor or lower tier subcontractor. A subcontractor may request in writing,either on their own behalf
or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed
by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor
requesting that the claim be presented to the public entity shall furnish reasonable documentation to support
the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in
writing as to whether the contractor presented the claim to the public entity and, if the original contractor did
not present the claim,provide the subcontractor with a statement of the reasons for not having done so.
e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public
works project that may give rise to a claim under this section.
fl A waiver of the rights granted by this section is void and contrary to public policy,provided,however,that
1)upon receipt of a claim,the parties may mutually agree to waive,in writing,mediation and proceed directly
to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may
prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to
the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair
the timeframes and procedures set forth in this section.
g) This section applies to contracts entered into on or after January 1, 2017.
h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available
through a competitive application process, for the failure of an awardee to meet its contractual obligations.
i)This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later
enacted statute,that is enacted before January 1, 2027, deletes or extends that date.
Attachment No. 2
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