03/26/2013CITY OF GRAND TERRACE
CITY COUNCIL
AGENDA • MARCH 26, 2013
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center • 22795 Barton Road
City of Grand Terrace Page 1 Updated 3/14/2013 12:04 PM
The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require
special assistance to participate in this meeting, please call the City Clerk’s office at (909) 824-6621 at
least 48 hours prior to the meeting.
If you desire to address the City Council during the meeting, please complete a request to speak form
available at the entrance and present it to the City Clerk. Speakers will be called upon by the Mayor at
the appropriate time.
Any documents provided to a majority of the City Council regarding any item on this agenda will be made
available for public inspection in the City Clerk’s office at city hall located at 22795 Barton Road during
normal business hours. In addition, such documents will be posted on the City’s website at
www.cityofgrandterrace.org
CALL TO ORDER
Convene City Council and City Council as the Successor Agency to the Community Redevelopment
Agency
Invocation
Pledge of Allegiance
Roll Call
Attendee Name Present Absent Late Arrived
Mayor Walt Stanckiewitz ¨¨¨
Mayor Pro Tem Bernardo Sandoval ¨¨¨
Council Member Darcy McNaboe ¨¨¨
Council Member Jackie Mitchell ¨¨¨
Council Member Sylvia Robles ¨¨¨
1.ITEMS TO DELETE
2.SPECIAL PRESENTATIONS
A.2012 FBI Stats for Grand Terrace
B.Emergency Operations Committee Update, Priorities & Plans for 2013
C.Grand Terrace Area Chamber of Commerce Business of the Month
D.Foundation of Grand Terrace Update
Agenda Grand Terrace City Council March 26, 2013
City of Grand Terrace Page 2 Updated 3/14/2013 12:04 PM
3.CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and noncontroversial. They will be
acted upon by the Council at one time without discussion. Any Council Member, Staff Member, or Citizen
may request removal of an item from the Consent Calendar for discussion.
A.Waive Full Reading of Full Ordinances on Agenda
B.Adopt a Resolution to Establish a Labor Compliance Program.
C.Approval of Check Register No. 03-26-2013
4.PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular
agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on
any item not on the agenda, but may briefly respond to statements made or ask a question for
clarification. The Mayor may also request a brief response from staff to questions raised during public
comment or may request a matter be agendized for a future meeting.
5.COUNCIL REPORTS
6.PUBLIC HEARINGS
7.UNFINISHED BUSINESS
8.NEW BUSINESS
A.Approval of Amendment No. 1, Professional Service Agreement for Animal Control Services with the
City of San Bernardino.
B.Resolutions and Letter in Support of Assembly Bill 981
C.Legal Services Agreements for City and Successor Agency
9.CLOSED SESSION
A.Employee Negotiations -Labor Negotiations Pursuant to Government Code 54957.6 -City Labor
Negotiator -Betsy Adams, City Manager -Negotiated with -All Unrepresented Employees
B.Conference with Legal Counsel Anticipated Litigation -Significant Exposure to Litigation Pursuant to
Paragraph (2) of Subdivision (d) of Ssection 54956.9; One Potential Case
C.Conference with Legal Counsel Anticipated Litigation -Initiation of Litigation Pursuant to Paragraph (4) of
Sudivision (d) 54956.9; One Potential Case
ADJOURN
The Next Regular City Council Meeting will be held on Tuesday, April 9, 2013 at 6:00 PM.
Agenda item requests must be submitted in writing to the City Clerk’s office no later than 14 calendar
days preceding the meeting.
AGENDA REPORT
MEETING DATE:March 26, 2013 Council Item
TITLE:Adopt a Resolution to Establish a Labor Compliance
Program.
PRESENTED BY:Richard Shields, Community Development Director
RECOMMENDATION:Adopt Resolution No. 2013- , establishing a Labor
Compliance Program for Grand Terrace Fitness Park
Project.
BACKGROUND:
The City entered into a contract with Albert A. Webb Associates to provide design work
and construction management services for the Grand Terrace Fitness Park. As part of
the Public Resource Code, an awarding body that contracts public works projects that
are financed in any part from funds made available pursuant to Proposition 84, shall
adopt and enforce, or contract with a third party to enforce, a Labor Compliant Program
(LCP) pursuant to the Labor Code, 1771.5. The purpose of the LCP is to ensure that the
construction contractors comply with the prevailing wage and other labor laws of the
State.
DISCUSSION:
At the completion of the Park project, audits by the State to determine compliance with
labor rules and regulation is possible. Implementing a LCP will assist the City in
compliance with the State labor laws.
Albert A. Webb Associates has hired Labor Compliance Providers, Inc, to provide labor
compliance services for Grand Terrace Fitness Park. Pursuant to the State law, the
awarding body (City of Grand Terrace) shall have a LCP adopted by the City Council
and approved by the Department of Industrial Relations. The cost associated with this
program will be charged directly to the grant funds.
In summery, Labor Compliance Providers Inc, will be providing the following service:
•With the assistance of Albert A. Webb Associates, conduct interviews with the
contractor’s employees to educate them on prevailing wage rules and ask
specific questions regarding hourly wage and overtime pay.
•Review, and if appropriate, audit payroll records to verify compliance.
•Withhold contract payments when payroll records are delinquent or inadequate.
•Withhold contract payments equal to the amount of underpayment along with
applicable penalties when, after investigation, it is established that underpayment
has occurred.
3.B
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•Provide evidence of compliance with State laws if the grant funds are audited.
Staff recommends that the City Council adopt Resolution No. 2013- , establishing a
LCP to monitor construction contractors with regards to the prevailing wage and
applicable State laws.
FISCAL IMPACT:
There will be no fiscal impact to the City other than preparing the staff report. The costs
associated with the LCP request will be absorbed by the grant funds which are an
allowable construction expense. Albert A. Webb Associates will manage the third party
contract so the City has no direct involvement or costs.
ATTACHMENTS:
·Resolution No. 2013____ adopting LCP
·City of Grand Terrace -LCP_Final.2
APPROVALS:
Richard Shields Completed 02/28/2013 1:19 PM
Finance Completed 03/06/2013 8:41 AM
City Attorney Completed 03/20/2013 3:01 PM
Community Development Completed 03/20/2013 4:19 PM
City Manager Completed 03/20/2013 4:35 PM
City Council Pending
3.B
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RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE, CALIFORNIA,TO ESTABLISH A
LABOR COMPLIANCE PROGRAM
WHEREAS,Public Resource Code Section 75075 requires a body that awards any
contract for a public works project financed in any form by funds made available
pursuant to Proposition 84,to adopt and enforce, or contract with a third party to
enforce, a Labor Compliance Program pursuant to Subdivision (b) of Labor Code
Section 1771.5; and
WHEREAS, the City of Grand Terrace seeks to establish a Department of Industrial
Relations in-house Labor Compliance Program approved by the Department of
Industrial Relations; and
WHEREAS,the City of Grand Terrace may utilize the services of a Labor Compliance
Program consulting firm to initiate or enforce its Labor Compliance Program,should it
be approved by the Department of Industrial Relations; and
WHEREAS,the purpose of the Labor Compliance Program is to ensure that
construction contractors comply with the prevailing wage and other applicable labor
laws; and
WHEREAS,the City of Grand Terrace has entered into a contract with Albert A. Webb
Associates to design and manage construction of the Grand Terrace Fitness Park, a
public works project;and
WHEREAS,Albert A. Webb Associates has hired Labor Compliance Providers, Inc.to
provide labor compliance services for the Grand Terrace Fitness Park.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of Grand
Terrace hereby establishes the Labor Compliance Program, attached hereto as
Attachment “A” and incorporated herein by this reference, to monitor and enforce
contractors’compliance with California labor and apprenticeship laws for its public
works construction projects financed in any part by Proposition 84.
PASSED, APPROVED AND ADOPTED this 26th day of March, 2013.
ATTEST:
_____________________________________________________________
City Clerk of the City of Grand Terrace Mayor of the City Of Grand Terrace
3.B.a
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I, TRACY MARTINEZ, City Clerk of the City of Grand Terrace, do hereby certify that
Resolution No. 2013- ,was introduced and adopted at a regular meeting of the City
Council of the City of Grand Terrace on the 26th day of March, 2013, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________
City Clerk
Approved as to Form:
___________________
City Attorney
3.B.a
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Attachment “A”
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CITY OF GRAND TERRACE
LABOR COMPLIANCE PROGRAM
March 2013
Conforms to Labor Compliance Program 2009 Amendments
3.B.b
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LABOR COMPLIANCE PROGRAM
TABLE OF CONTENTS
Pages
INTRODUCTION ............................................................................................................................................... 3
SECTION 1: PUBLIC WORKS SUBJECT TO PREVAILING WAGE LAWS .................................................... 4
A. Application ................................................................................................................................................ 4
B. Applicable Dates for Enforcement of a Labor Compliance Program .......................................................... 4
SECTION 2: COMPETITIVE BIDDING ON PUBLIC WORKS CONTRACTS ................................................... 4
SECTION 3: JOB START MEETING ................................................................................................................ 4
SECTION 4: INVESTIGATIVE METHODS ........................................................................................................ 5
A. Certified Payroll Records Required ........................................................................................................... 5
1. Submittal of Certified Payroll Records .................................................................................................... 6
2. Use of Electronic Reporting Forms ......................................................................................................... 6
3. Review Payroll Records ......................................................................................................................... 7
4. Confirmation of Payroll Records ............................................................................................................. 7
5. On-Site Visits ......................................................................................................................................... 7
6. Full Accountability .................................................................................................................................. 8
7. Responsibility for Subcontractors ........................................................................................................... 8
8. Payment to Employees .......................................................................................................................... 8
9. Requests for Certified Payroll Records .................................................................................................. 8
B. Apprentices ............................................................................................................................................ 11
1. Contractor Responsibility ..................................................................................................................... 11
2. Duties of a Labor Compliance Program with Respect to Apprenticeship Standards ............................. 11
C. Audit of Certified Payroll Records ............................................................................................................ 12
SECTION 5: REPORTING OF WILLFUL VIOLATIONS TO THE LABOR COMMISSIONER ......................... 13
A. Failure to Comply with Prevailing Wage Rate Requirements .................................................................. 13
B. Falsification of Payroll Records, Misclassification of Work, and/or Failure to Accurately Report Hours of
Work ....................................................................................................................................................... 13
C. Failure to Submit Certified Payroll Records ............................................................................................. 13
D. Failure to Make Employer Payments ...................................................................................................... 14
E. Failure to Pay the Correct Apprentice Rates and/or Misclassification of Workers as Apprentices ........... 14
F. Taking or Receiving Portions of Wages of Workmen or Working Subcontractors as Felony ................... 14
SECTION 6: ENFORCEMENT ACTION ......................................................................................................... 14
A. Duty of the Labor Compliance Program .................................................................................................. 14
B. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate ........................... 16
C. Withholding Contract Payments When, After Investigation, It Is Established That Underpayment or Other
Violation Has Occurred. .......................................................................................................................... 17
D. Forfeitures Requiring Approval by the Labor Commissioner ................................................................... 18
E. Determination of Amount of Forfeiture by the Labor Commissioner (Title 8 CCR §16437) ...................... 18
F. Notice of Withholding .............................................................................................................................. 20
G. Deposits of Penalties and Forfeitures Withheld ....................................................................................... 20
H. Debarment Policy.................................................................................................................................... 21
3.B.b
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SECTION 7: REQUEST FOR REVIEW OF LCP ENFORCEMENT ACTION/SETTLEMENT AUTHORITY .. 214
SECTION 8: PRIORITY DOSTRIBUTION OF FORFEITED SUMS ................................................................. 23
A. Withholding of Forfeited Sums ................................................................................................................ 23
B. Disposition of Forfeited Sums ................................................................................................................. 23
SECTION 9: ANNUAL REPORTS .................................................................................................................. 23
SECTION 10: OUTREACH ACTIVITIES ......................................................................................................... 24
ATTACHMENTS ............................................................................................................................................. 25
ATTACHMENT A - CHECKLIST OF LABOR LAW REQUIREMENTS ......................................................... 26
ATTACHMENT B - COMPLIANCE MONIROTING & AUDIT RECORD WORKSHEETS ............................. 28
ATTACHMENT C - REQUEST FOR APPROVAL OF FORFEITURE ........................................................... 35
ATTACHMENT D - NOTICE OF WITHHOLDING CONTRACT PAYMENTS ............................................... 40
ATTACHMENT E - NOTICE OF TEMPORARY WITHHOLDING OF CONTRACT PAYMENTS DUE TO
DELINQUENT OR INADEQUATE PAYROLL RECORDS ....................................................................... 43
ATTACHMENT F - CERTIFID PAYROLL RECORD (CPR) TEMPLATE ..................................................... 47
ATTACHMENT G - ANNUAL REPORT LCP-AR1 TEMPLATE FORM ........................................................ 49
3.B.b
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City of Grand Terrace
LABOR COMPLIANCE PROGRAM
Conforms to Labor Compliance Program 2009 Amendments
INTRODUCTION
The City of Grand Terrace (CITY) issues this Labor Compliance Program (LCP) for the purpose of identifying
its policy relative to the responsibilities and procedures applicable to the labor compliance provisions of state
and federally funded construction contracts. This program contains the labor compliance standards required by
state and federal laws, regulations & directives.
The California Labor Code § 1770 et seq. require that building trades contractors on public works pay their
workers based on the prevailing wage rates, which are established and issued by the Department of Industrial
Relations, Division of Labor Statistics and Research.
The CITY has adopted this LCP to meet any Labor Compliance mandates on its public works projects. The
CITY administers this LCP for monitoring the prevailing wage rates paid to construction workers on the
CITY’s public works projects. This LCP assures that all contractors and subcontractors comply with the
prevailing wage, certified payroll record laws and apprenticeship standards pursuant to the Labor Code §1710
thru §1861.
In establishing this LCP, the CITY adheres to the statutory requirements as promulgated in §1771.5 (b) of the
California Labor Code.
Further it is the intent of the CITY to actively enforce this LCP wherein the construction sites shall be
monitored for worker classification, apprenticeship standards, the payment of prevailing wage rates and,
wherein those contractors and subcontractors having workers on public works sites routinely submit copies of
certified payroll records and any other documents required for verification, demonstrating their compliance with
the payment of prevailing wage rates.
Questions regarding this Labor Compliance Program should be directed to:
Name: James Reed
Labor Compliance Providers, Inc.
Labor Compliance Administrator to the City of Grand Terrace for its Prop.84-funded New
Community Park Project
Phone: (951) 686-3482
E-mail: inbox@mylcp.org
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SECTION 1: PUBLIC WORKS SUBJECT TO PREVAILING WAGE LAWS
A. Application
State prevailing wage rates apply to all public works contracts as set forth in Labor Code Sections 1720, 1720.2,
1720.3, 1720.4 and 1771, and include, but are not limited to, such types of work as construction, alteration,
demolition, repair, or maintenance work. The Division of Labor Statistics and Research (DLSR) predetermine
the appropriate prevailing wage rates for particular construction trades and crafts by county.
B. Applicable Dates for Enforcement of a Labor Compliance Program
The applicable dates for enforcement of this Labor Compliance Program are established by Section 16426 of
the California Code of Regulations. Contracts are not subject to the jurisdiction of the Labor Compliance
Program until after the program has received initial approval or approved status.
SECTION 2: COMPETITIVE BIDDING ON PUBLIC WORKS CONTRACTS
The CITY shall publicly advertise upcoming public works projects to be awarded according to a competitive
bidding process. Further information regarding the requirements of the bidding process may be obtained
from the Bid Processing Section. All bid advertisements (or bid invitations) and public works contracts shall
contain appropriate language concerning the requirements of chapter 1 of part 7 of division 2 of the State
Labor Code.
SECTION 3: JOB START MEETING
After the award of the public works contract, and prior to the commencement of the work, a mandatory Job
Start meeting (Pre-Job Labor Compliance Conference) shall be conducted by the CITY’s LCP representative with
the contractor, subcontractors and any entity providing labor at the site of the work. Applicable Federal and
State labor law requirements shall be discussed and suggested reporting forms provided.
At the Pre-Job Labor Compliance Conference the LCP representative will provide the contractor and each
subcontractor with a Checklist of Labor Law Requirements (presented as Attachment A on pages 23 - 24) and
will discuss in detail the following checklist items:
1. The contractor’s & subcontractors duty to pay prevailing wages (Labor Code Section 1771, et seq.);
2. The contractor’s & subcontractor’s duty to employ registered apprentices on public works projects (Labor
Code Section 1777.5);
3. The penalties for failure to pay prevailing wages (for nonexempt projects) and to employ apprentices,
including forfeitures and debarment (Labor Code Sections 1775 and 1777.7& 1813);
4. The requirement to maintain and submit copies of certified payroll records to the Labor Compliance Group
upon request at least monthly or within (10 days) of request by the awarding body. (Labor Code Section
1776), and penalties for failure to do so (Labor Code Section 1776(h));
5. The prohibition against employment discrimination (Labor Code Sections 1735 and 1777.6; the Government
Code; and Title VII of the Civil Rights Act of 1964, as amended);
3.B.b
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6. The prohibition against taking or receiving a portion of an employee’s wages (Labor Code Section 1778);
7. The prohibition against accepting fees for registering any person for public works (Labor Code Section 1779)
or for filing work orders on public works (Labor Code Section 1780);
8. The requirement to list all subcontractors that are performing 1/2 of one percent of the total amount of the
contract (Government Code Section 4100, et seq.);
9. The requirement to be properly licensed and to require all subcontractors to be properly licensed, and the
penalty for employing workers while unlicensed (Labor Code Section 1021 and 1021.5, and Business and
Professions Code Section 7000, et seq., under California Contractors License Law);
10. The prohibition against unfair competition (Business and Professions Code Sections 17200-17208);
11. The requirement that the contractor & subcontractor be properly insured for Workers’ Compensation
(Labor Code Section 1861);
12. The requirement that the contractor abide by the Occupational Safety and Health laws and regulations that
apply to the particular public works project; and
13. The federal prohibition against hiring undocumented workers, and the requirement to secure proof of
eligibility and citizenship from all workers.
14. The requirement that all employees be given an itemized wage deduction statement with each payment of
wages (Labor Code Section 226 et. seq).
The contractors and subcontractors attending the Job Start meeting will be given the opportunity to ask
questions of the LCP representative relative to the items contained in the Labor Law Requirements Checklist.
The checklist will then be signed by the contractor’s/subcontractors authorized representative and the CITY’s
LCP representative. Signed copies from each conference shall be kept on file.
At the Job Start meeting, the LCP representative will provide the contractor with a copy of the LCP package
which includes: a copy of the approved Labor Compliance Program, the checklist of Labor Law Requirements,
applicable Prevailing Wage Determinations, blank certified payroll record forms, fringe benefit statement forms,
state apprenticeship requirements, and a copy of the Labor Code relating to Public Works and Public Agencies
(Part 7, Chapter 1, § 1720-1861). It will be the contractor’s responsibility to provide copies of the LCP package
to all listed subcontractors and to any substituted subcontractors.
SECTION 4: INVESTIGATIVE METHODS
A. Certified Payroll Records Required
The contractor shall maintain payrolls and basic records (timecards, canceled checks, cash receipts, trust
fund forms, accounting ledgers, tax forms, superintendent and foreman daily logs, etc.) during the course
of the work and shall preserve them for a period of three (3) years thereafter for all trades workers working
3.B.b
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at the public works project sites in accordance with Labor Code §1776. Such records shall include the name,
address, and social security number of each worker, his or her classification, a general description of the
work each employee performed each day, the rate of pay (including rates of contributions for, or costs to
provide fringe benefits), daily and weekly number of hours worked, deductions made, and actual wages
paid.
California Code of Regulations §16401(a) stipulates the format for reporting of payroll records requested
pursuant to Labor Code Section 1776 shall be on a form provided by the public entity. Copies of the forms may
be procured at any office of the Division of Labor Standards Enforcement (DLSE) throughout the state and/or:
Division of Labor Statistics & Research P.O. Box 420603 San Francisco, CA 94101; ATTENTION: Prevailing Wage
Unit.
Acceptance of any other format shall be conditioned upon the requirement that the alternate format contain all
of the information required pursuant to Labor Code Section 1776. If, however, the contractor does not comply
with the provisions of Labor Code Section 1776, the Labor Commissioner may require the use of DIR's
suggested format, "Public Works Payroll Reporting Form" (Form A-1-131). The wording / format for the
Certified Payroll Record’s Statement of Compliance acceptable by the CITY is included herein under
Attachment F.
1. Submittal of Certified Payroll Records
The contractor shall maintain weekly certified payroll records for submittal to the CITY’s labor
compliance office on a weekly basis. The contractor shall be responsible for the submittal of payroll
records of all its subcontractors. All certified payroll records shall be accompanied by a statement of
compliance signed by the contractor indicating that the payroll records are correct and complete, and
the wage rates contained therein are not less than those determined by the Director of the Department
of Industrial Relations, and that the classifications set forth for each employee conform with the work
performed by each employee.
The certified payroll records submitted pursuant to this section shall be on forms provided by the
Division of Labor Standards Enforcement (A-1-131) or shall contain the same information. Forms
missing any information as required on DLSE form (A-1-131) may be determined inadequate and
subject to withholding under section 1771.5 (b)(5) and §16435 (d) of Title 8 of the California Code of
Regulations, and as further described in section 6 (B) of this manual. Employer payments (fringe
benefits) when taken as a credit against the prevailing per diem wages shall be identified on form PW26
and submitted with the first certified payroll report and any subsequent certified payroll report where
wages or employer payments have changed.
Time cards, front and back copies of cancelled checks, daily logs, employee sign-in sheets and/or other
records maintained for the purpose of reporting payroll may be requested by the LCP at any time and
shall be provided within 10 days following the receipt of the request.
2. Use of Electronic Reporting Forms
The certified payroll records required by Labor Code Section 1776 may be maintained and submitted
electronically subject to all of the following conditions:
3.B.b
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(a) The reports must contain all of the information required by Labor Code Section 1776, with the
information organized in a manner that is similar or identical to how the information is reported on the
Department of Industrial Relations' suggested "Public Works Payroll Reporting Form" (Form A-1-131);
(b) The reports shall be in a format and use software that is readily accessible and available to
contractors, awarding bodies, Labor Compliance Programs, and the Department of Industrial Relations;
(c) Reports submitted to the CITY, the Division of Labor Standards Enforcement, or other entity within
the Department of Industrial Relations must be either (1) in the form of a non-modifiable image or
record that bears an electronic signature or includes a copy of any original certification made on paper,
or alternatively (2) printed out and submitted on paper with an original signature;
(d) The requirements for redacting certain information shall be followed when certified payroll records
are disclosed to the public pursuant to Labor Code Section 1776(e), whether the records are provided
electronically or as hard copies; and
(e) No contractor or subcontractor shall be mandated to submit or receive electronic reports when it
otherwise lacks the resources or capacity to do so, nor shall any contractor or subcontractor be required
to purchase or use proprietary software that is not generally available to the public.
3. Review Payroll Records
Payroll records submitted by contractors and subcontractors, shall be reviewed by the CITY’s LCP staff
as promptly as practicable after receipt thereof, but in no event more than (30) days after receipt.
“Review” for this purpose shall be defined as inspection of the records to determine if (1) all appropriate
data elements identified in Labor Code §1776 (a) have been reported; (2) certification forms have been
completed and signed in compliance with Labor Code §1776 (b); and (3) the correct prevailing wage
rates have been reported as paid for each classification of labor listed thereon, with confirmation of
payment in the manner and to the extent described below.
4. Confirmation of Payroll Records
Pursuant to California Code of Regulations 16432(c), “confirmation” of payroll records furnished by
contractors and subcontractors shall be defined as an independent corroboration of reported prevailing
wage payments. Confirmation may be accomplished through worker interviews, examination of
paychecks or paycheck stubs, direct confirmation of payments from third party recipients of “Employer
Payments” (as defined at section 16000 of Title 8 of the California Code of Regulations), or any other
reasonable method of corroboration. For each month in which a contractor or subcontractor reports
having workers employed on the public work, confirmation of furnished payroll records shall be
undertaken randomly for at least one worker for at least one weekly period within that month.
Confirmation shall also be undertaken whenever complaints from workers or other interested persons
or other circumstances or information reasonably suggest to the Labor Compliance Program that
payroll records furnished by a contractor or subcontractor are inaccurate.
5. On-Site Visits
Representatives of the LCP shall conduct in-person inspections at the site or sites at which the contract
for public work is being performed ("On-Site Visits"). On-Site Visits may be undertaken randomly or as
3.B.b
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deemed necessary by the Labor Compliance Program, but shall be undertaken during each week that
workers are present at sites at which the contract for public work is being performed. All On-Site Visits
shall include visual inspection of (1) the copy of the determination(s) of the Director of Industrial
Relations of the prevailing wage rate of per diem wages required to be posted at each job site in
compliance with Labor Code Section 1773.2, and (2) the Notice of Labor Compliance Program Approval
required to be posted at the job site in accordance with California Code of Regulations §16429, listing a
telephone number to call for inquiries, questions, or assistance with regard to the LCP. On-Site Visits
may include other activities deemed necessary by the LCP to independently corroborate prevailing
wage payments reported on payroll records furnished by contractors and subcontractors.
6. Full Accountability
Each individual, laborer or craftsperson working on a public works contract must appear on the payroll.
The basic concept is that the employer who pays the trades’ worker must report that individual on its
payroll. This includes individuals working as apprentices in an apprenticeable trade. Owner-operators
are to be reported by the contractor employing them; rental equipment operators are to be reported by
the rental company paying the workers’ wages. Sole owners and partners who work on a contract must
also submit a certified payroll record listing the days and hours worked, and the trade classification
descriptive of the work actually done. The contractor shall make the records required under this section
available for inspection by an authorized representative of the LCP and the Department of Industrial
Relations, and shall permit such representatives to interview trades workers during hours on the project
site.
7. Responsibility for Subcontractors
The contractor shall be responsible for ensuring adherence to labor standards provisions by its
subcontractors in the manner specified by Labor Code Section 1775
a. The contractor shall monitor the payment of the specified general prevailing per diem wages by each
subcontractor to its employees by weekly review of the subcontractor’s certified payroll records.
b. Upon becoming aware of a subcontractor’s failure to pay 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
(upon receipt of notification that a wage complaint has been resolved, the contractor shall pay any
money retained from and owed to a subcontractor).
c. Prior to making final payment to the subcontractor for work performed on the public works project,
the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the
subcontractor has paid the general prevailing rate of per diem wages to its employees on the public
works project, as well as any penalties, which have been imposed for working hours violations (Labor
Code § 1813).
8. Payment to Employees
a. Employees must be paid unconditionally, and not less often than once each week, the full amounts
that are due and payable for the period covered by the particular payday. An employer must, therefore,
3.B.b
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establish a fixed workweek (i.e., Sunday through Saturday) and an established payday (such as Friday or
the preceding day should such payday fall on a holiday). On each and every payday, each worker must
be paid all sums due as of the end of the preceding workweek and must be provided with an itemized
wage statement.
b. If an individual is called a subcontractor, when, in fact, he/she is merely a journey level mechanic
supplying only his/her labor, such an individual would not be deemed a bona fide subcontractor and
must be reported on the payroll of the contractor who contracted for his or her services as a trade’s
worker.
c. Moreover, any person who does not hold a valid contractor’s license cannot be a subcontractor, and
anyone hired by that person is the worker or employee of the contractor who contracted for his or her
services for purposes of prevailing wage requirements, certified payroll & workers compensation laws.
d. A worker’s rate for straight time hours must be equal to or exceed the rate specified in the contract
by reference to the Prevailing Wage Rate Determinations for the class of work actually performed. Any
work performed on Saturday, Sunday, and/or a holiday, or a portion thereof, must be paid the
prevailing rate established for those days regardless of the fixed workweek. The hourly rate for hours
worked in excess of 8 hours in a day or 40 hours in a workweek shall be premium pay. All work
performed in excess of eight hours per day, 40 hours per week, on Saturday, on Sunday, and on holiday
shall be paid in accordance with the applicable Prevailing Wage Determination.
9. Requests for Certified Payroll Records
Pursuant to California Code of Regulations §16400:
(a) Requests may be made by any person for certified copies of payroll records. Requests shall be made
to any of the following:
(1) the body awarding the contract, or
(2) any office of the Division of Labor Standards Enforcement, or the Division of Apprenticeship
8Standards.
(b) Requests for certified copies of payroll records pursuant to Section 1776 of the Labor Code may be
made by any person. However, any such request shall be in writing and contain at least the following
information:
(1) The body awarding the contract;
(2) The contract number and/or description;
(3) The particular job location if more than one;
(4) The name of the contractor;
(5) The regular business address, if known.
NOTE: Requests for records of more than one contractor of subcontractor must list the information
regarding that contractor individually, even if all requests pertain to the same particular public works
project. Blanket requests covering an entire public works project will not be accepted; unless contractor
and subcontractor responsibilities regarding the project are not clearly defined.
(c) Acknowledgment of Request. The public entity receiving a request for payroll records shall
acknowledge receipt of such, and indicate the cost of providing the payroll records based on an
3.B.b
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estimate by the contractor, subcontractor or public entity. The acknowledgment of the receipt of said
request for payroll records may be accomplished by the public entity's furnishing a copy of its written
correspondence requesting certified copies of the payroll records sent to the specific contractor
pursuant to Section 16400(d) below, to the person who requested said records.
(d) Request to Contractor. The request for copies of payroll records by the requesting public entity shall
be in any form and/or method which will assure and evidence receipt thereof. The request shall include
the following:
(1) Specify the records to be provided and the form upon which the information is to be
provided;
(2) Conspicuous notice of the following:
(A) that the person certifying the copies of the payroll records is, if not the contractor,
considered as an agent acting on behalf of the contractor; and
(B) that failure to provide certified copies of the records to the requesting public entity
within 10 working days of the receipt of the request will subject the contractor to a
penalty of twenty-five ($25.00) dollars per calendar day or portion thereof for each
worker until strict compliance is effectuated;
(3) Cost of preparation as provided in Section 16402; and
(4) Provide for inspection.
(e) Inspection of Payroll Records. Inspection of the original payroll records at the office of the
contractor(s) pursuant to subdivision (b) of Section 1776 of the Labor Code shall be limited to the
public entities upon reasonable written or oral notice.
Pursuant to California Code of Regulations §16402: the cost of preparation to each contractor,
subcontractor, or public entity when the request was made shall be provided in advance by the person
seeking the payroll record. Such cost shall be $1 for the first page of the payroll record and 25 cents for
each page thereafter, plus $10 to the contractor or subcontractor for handling costs. Payment in the
form of cash, check or certified money order shall be made prior to release of the documents to cover
the actual costs of preparation.
Pursuant to California Code of Regulations §16403 (Privacy Considerations):
(a) Records received from the employing contractor shall be kept on file in the office or entity that
processed the request for at least 6 months following completion and acceptance of the project.
Thereafter, they may be destroyed unless administrative, judicial or other pending litigation, including
arbitration, mediation or other methods of dispute resolution, are in process. Copies on file shall not be
obliterated in the manner prescribed in subdivision (b) below;
(b) copies provided to the public upon written request shall be marked, obliterated or provided in such
a manner that the name, address and Social Security number, and other private information pertaining
to each employee cannot be identified. All other information including identification of the contractor
shall not be obliterated;
(c) the public entity may affirm or deny that a person(s) was or is employed on a public works contract
(by a specific contractor) when asked, so long as the entity requires such information of an identifying
nature which will reasonably preclude release of private or confidential information.
3.B.b
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B. Apprentices
Apprentices shall be permitted to work as such only when they are registered, individually, under a bona fide
apprenticeship program registered and approved by the State Division of Apprenticeship Standards. The
allowable ratio of apprentices to journeypersons in any craft/classification shall not be greater than the ratio
permitted to the contractor as to its entire workforce under the registered program. Any worker listed on a
payroll at an apprentice wage rate who is not registered shall be paid the journey level wage rate determined
by the Department of Industrial Relations for the classification of the work he/she actually performed. A
journey level worker must always be present at the job site where an apprentice is performing the work of his
craft. Pre-apprentice trainees, trainees in non-apprenticeable crafts, and others who are not duly registered will
not be permitted on public works projects unless they are paid full prevailing wage rates as journeypersons.
1. Contractor Responsibility
The contractor shall furnish written evidence of the registration (i.e., Apprenticeship Agreement or
Statement of Registration) of its training program and apprentices, as well as the ratios allowed and the
wage rates required to be paid there under for the area of construction, prior to using any apprentices
in the contract work.
Compliance with California Labor Code § 1777.5 require all public works contractors and subcontractors
to do the following when apprenticeable crafts are employed on the project:
a. Prior to 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 form DAS 140 can be used for this purpose.
b. Employ apprentices on public works projects in a ratio to journeypersons as stipulated in the
apprenticeship standards under which each apprenticeship committee operates, but in no case shall the
ratio be less than one (1) apprentice to each five (5) journeypersons unless a lower/higher ratio is
allowed via exemption for a particular craft;
c. Contribute to the training fund in the amount identified in the prevailing wage rate publication for
journeypersons and apprentices. Where the trust fund administrators cannot accept the contributions,
then payment shall be made to the California Apprenticeship Council, Post Office Box 420603, San
Francisco, CA 94142; and
d. It should be noted that a prior approval for a specified project does not confirm approval to train on
any other project. The contractor/subcontractor must check with the applicable Joint Apprenticeship
Committee to verify status.
2. Duties of a Labor Compliance Program with Respect to Apprenticeship Standards
a. The CITY’s LCP staff shall:
1. Inform contractors and subcontractors bidding public works of the apprenticeship requirements
defined in Labor Code 1777.5 and CCR 230, 230.1;
2. Send copies of awards and notices of discrepancies to the Division of Apprenticeship Standards
as required under Section 1773.3 of the Labor Code, and
3.B.b
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3. Refer complaints and promptly report suspected violations of apprenticeship requirements to
the Division of Apprenticeship Standards.
b. The CITY’s LCP staff shall be responsible for enforcing prevailing wage pay requirements for
apprentices consistent with the practice of the Labor Commissioner, including:
1. That any contributions required pursuant to Labor Code Section 1777.5(m) are paid to the
appropriate entity,
2. That apprentices are paid no less than the prevailing apprentice rate,
3. That workers listed and paid as apprentices on the certified payroll records are duly registered
as apprentices with the Division of Apprenticeship Standards, and
4. Requiring that the regular prevailing wage rate be paid (i) to any worker who is not a duly
registered apprentice and (ii) for all hours in excess of the maximum ratio permitted under Labor
Code Section 1777.5(g), as determined at the conclusion of the employing contractor or
subcontractor's work on the public works contract.
C. Audit of Certified Payroll Records
1. An Audit, as defined herein, shall be prepared by the CITY’s LCP staff whenever the LCP has determined that
there has been a violation of the Public Works Chapter of the Labor Code resulting in the underpayment of
wages. An "Audit" for this purpose shall be defined as a written summary reflecting prevailing wage
deficiencies for each underpaid worker, and including any penalties to be assessed under Labor Code
Sections 1775 and 1813, as determined by the LCP after consideration of the best information available as to
actual hours worked, amounts paid, and classifications of workers employed in connection with the public
work. Such available information may include, but is not limited to, worker interviews, complaints from
workers or other interested persons, all time cards, cancelled checks, cash receipts, trust fund forms, books,
documents, schedules, forms, reports, receipts or other evidences which reflect job assignments, work
schedules by days and hours, and the disbursement by way of cash, check, or in whatever form or manner,
of funds to a person(s) by job classification and/or skill pursuant to a public works project. An Audit is
sufficiently detailed when it enables the Labor Commissioner, if requested to determine the amount of
forfeiture under section 16437, to draw reasonable conclusions as to compliance with the requirements of
the Public Works Chapter of the Labor Code, and to enable accurate computation of underpayments of
wages to workers and of applicable penalties and forfeitures. An Audit using the forms in Appendix B, when
accompanied by a brief narrative identifying the Bid Advertisement Date of the contract for public work and
summarizing the nature of the violation and the basis upon which the determination of underpayment was
made, presumptively demonstrates sufficiency. Records supporting an Audit shall be maintained by the
CITY’s LCP to satisfy its burden of coming forward with evidence in administrative review proceedings under
Labor Code Section 1742 and the Prevailing Wage Hearing Regulations found at sections 17201-17270 of
Title 8 of the California Code of Regulations.
2. After the LCP has determined that violations of the prevailing wage laws have resulted in the underpayment
of wages and an audit has been prepared, notification shall be provided to the contractor and affected
subcontractor of an opportunity to resolve the wage deficiency prior to a determination of the amount of
forfeiture by the Labor Commissioner pursuant to these regulations. The contractor and affected
subcontractor shall be provided at least 10 days following such notification to submit exculpatory
information consistent with the "good faith mistake" factors set forth in Labor Code Section 1775(a)(2)(A)(i)
and (ii). If, based upon the contractor's submission, the LCP reasonably concludes that the failure to pay the
correct wages was a good faith mistake, and has no knowledge that the contractor and affected
3.B.b
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subcontractor have a prior record of failing to meet their prevailing wage obligations, the LCP shall not be
required to request the Labor Commissioner for a determination of the amount of penalties to be assessed
under Labor Code Section 1775 if the underpayment of wages to workers is promptly corrected and proof of
such payment is submitted to the LCP. For each instance in which a wage deficiency is resolved in
accordance with this regulation, the LCP shall maintain a written record of the failure of the contractor or
subcontractor to meet its prevailing wage obligation. The record shall identify the public works project, the
contractor or affected subcontractor involved, and the gross amount of wages paid to workers to resolve the
prevailing wage deficiency; and the record shall also include a copy of the Audit prepared pursuant to
subpart (e) above along with any exculpatory information submitted to the Labor Compliance Program by
the affected contractor or subcontractor.
SECTION 5: REPORTING OF WILLFUL VIOLATIONS TO THE LABOR COMMISSIONER
If an investigation reveals that a willful violation of the Labor Code has occurred, the LCP will make a written
report to the Labor Commissioner which shall include:
1. A detailed report which shall accurately describe the nature of the alleged violation and a description of the
evidence which supports said allegations;
2. An audit consisting of a comparison of payroll records to the best available information as to the actual
hours worked and wages paid;
3. The classification of workers employed on the public works contract, and any other additional investigative
information as may be required to clarify the audit. Reports will be submitted on all appropriate willful
violations including intent to defraud and deliberate failure or refusal to comply with public works law. All
reports will include a recommendation regarding the appropriateness of debarment. Principal areas of
concern include, but are not limited to, the following:
A. Failure to Comply with Prevailing Wage Rate Requirements
Failure to comply with prevailing wage rate requirements (as set forth in the Labor Code and CITY contracts)
may be determined a willful violation whenever less than the stipulated basic hourly rate is paid to trades
workers, or if overtime, holiday rates, fringe benefits, and/or employer payments are paid at a rate less than
stipulated. The facts related to such willful violations may result in a determination that the contractor
intended to defraud its employees of their wages.
B. Falsification of Payroll Records, Misclassification of Work, and/or Failure to Accurately Report Hours
of Work
Falsification of payroll records and failure to accurately report hours of work is characterized by deliberate
underreporting of hours of work; underreporting the headcount; stating that the proper prevailing wage rate
was paid when, in fact, it was not; clearly misclassifying the work performed by the worker; and any other
deliberate and/or willful act which results in the falsification or inaccurate reporting of payroll records. Such
violations are deemed to be willful violations committed with the intent to defraud.
C. Failure to Submit Certified Payroll Records
The contractors and subcontractors shall have 10 days upon notification of the LCP representative in which to
comply with the requirement for submittal of weekly payroll records that are complete and accurate. Failure to
3.B.b
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provide certified payroll records as prescribed, will result in the withholding of contract payments pursuant to
labor code §1771.5 (b)(5) and §16435 (d) of Title 8 of the California Code of Regulations and as further
described in Section 6 (B) of this manual.
D. Failure to Make Employer Payments
Employer payments are defined as the amounts stipulated for fringe benefits or trust fund contributions and
are determined to be part of the required prevailing wage rate. Failure to make employer payments or provide
fringe benefits and/or make trust fund contributions in a timely manner is equivalent to payment of less than
the stipulated wage rate and shall be reported to the Labor Commissioner, upon completion of an
investigation and audit.
E. Failure to Pay the Correct Apprentice Rates and/or Misclassification of Workers as Apprentices
Failure to pay the correct apprentice rate or classifying a worker as an apprentice when not properly registered
is equivalent to payment of less than the stipulated wage rate and shall be reported to the Labor
Commissioner, as a willful violation, upon completion of an investigation and audit.
F. Taking or Receiving Portions of Wages of Workmen or Working Subcontractors as Felony
Every person, who individually or as a representative of the CITY, or as a contractor or subcontractor doing
public work, or agent or officer thereof, who takes, receives or conspires with another to take or receive, for his
own use or the use of any other person any portion of the wages of any workman or working subcontractor, in
connection with services rendered upon any public work is guilty of a felony.
SECTION 6: ENFORCEMENT ACTION
A. Duty of the Labor Compliance Program
Pursuant to California Code of Regulations §16434, Duties of Labor Compliance Program:
(a) A Labor Compliance Program shall have a duty to the Director to enforce the requirements of Chapter 1
of Part 7 of Division 2 of the Labor Code and these regulations in a manner consistent with the practice of
the Labor Commissioner. It is the practice of the Labor Commissioner to refer to the Director's ongoing
advisory service of web-posted public works coverage determinations as a source of information and
guidance in making enforcement decisions. It is also the practice of the Labor Commissioner to be
represented by an attorney in prevailing wage hearings conducted pursuant to Labor Code Section 1742(b)
and sections 17201-17270 of Title 8 of the California Code of Regulations.
(b) Upon receipt of a written complaint alleging that a contractor or subcontractor has failed to pay
prevailing wages as required by the Labor Code, the Labor Compliance Program shall do all of the
following:
(1) Within 15 days after receipt of the complaint, send a written acknowledgment to the complaining
party that the complaint has been received and identifying the name, address, and telephone
number of the investigator assigned to the complaint;
3.B.b
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(2) Within 15 days after receipt of the complaint, provide the affected contractor with the notice
required under Labor Code section 1775(c) if the complaint is against a subcontractor;
(3) Notify the complaining party in writing of the resolution of the complaint within ten days after
the complaint has been resolved by the Labor Compliance Program;
(4) Notify the complaining party in writing at least once every 30 days of the status of a complaint
that has not been resolved by the Labor Compliance Program; and
(5) Notify the complaining party in writing at least once every 90 days of the status of a complaint
that has been resolved by the Labor Compliance Program but remains under review or in litigation
before another entity.
(c) The duties of a Labor Compliance Program with respect to apprenticeship standards are as follows:
(1) Either the Awarding Body or the Labor Compliance Program acting on its behalf shall
(A) inform contractors and subcontractors bidding public works about apprenticeship
requirements, (B) send copies of awards and notices of discrepancies to the Division of
Apprenticeship Standards as required under Section 1773.3 of the Labor Code, and (C) refer
complaints and promptly report suspected violations of apprenticeship requirements to the
Division of Apprenticeship Standards.
(2) The Labor Compliance Program shall be responsible for enforcing prevailing wage pay
requirements for apprentices consistent with the practice of the Labor Commissioner, including:
(A) that any contributions required pursuant to Labor Code Section 1777.5(m) are paid to the
appropriate entity, (B) that apprentices are paid no less than the prevailing apprentice rate,
(C) that workers listed and paid as apprentices on the certified payroll records are duly
registered as apprentices with the Division of Apprenticeship Standards, and (D) requiring
that the regular prevailing wage rate be paid (i) to any worker who is not a duly registered
apprentice and (ii) for all hours in excess of the maximum ratio permitted under Labor Code
Section 1777.5(g), as determined at the conclusion of the employing contractor or
subcontractor's work on the public works contract.
(d) For each public work project subject to a Labor Compliance Program's enforcement of prevailing wage
requirements, a separate, written summary of labor compliance activities and relevant facts pertaining to
that particular project shall be maintained. That summary shall demonstrate that reasonable and sufficient
efforts have been made to enforce prevailing wage requirements consistent with the practice of the Labor
Commissioner. Appendix C following this section provides a suggested format for tracking and monitoring
enforcement activities. Compliance records for a project shall be retained until the later of (1) at least one
year after the acceptance of the public work or five years after the cessation of all labor on a public work
that has not been accepted, or (2) one year after a final decision or judgment in any litigation under Labor
Code Section 1742. For purposes of this section, a written summary or report includes information
maintained electronically, provided that the summary or report can be printed out in hard copy form or is in
an electronic format that (1) can be transmitted by e-mail or compact disk and (2) would be acceptable for
the filing of documents in a federal or state court of record within this state.
(e) The Labor Commissioner may provide, sponsor, or endorse training on how to enforce prevailing wage
3.B.b
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requirements, including but not necessarily limited to the subjects of (1) ascertaining prevailing wage
requirements and rates from the Division of Labor Statistics and Research, (2) monitoring and investigation
under section 16432 above, (3) enforcement responsibilities under this section and sections 16435-16439
below, and (4) procedural requirements and responsibilities as an enforcing agency under Labor Code
sections 1741-1743 and 1771.6 and sections 17201-17270 of Title 8 of the California Code of Regulations.
B. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate
1. “Withhold” means to cease payments by the CITY, or others who pay on its behalf, or agents, to the
contractor. Where the violation is by a subcontractor, the contractor shall be notified of the nature of the
violation and reference made to its rights under Labor Code § 1729. A release bond under Civil Code § 3196
may not be posted for the release of the funds being withheld for the violation of the prevailing wage law.
2. “Contracts” except as otherwise provided by agreement, means only contracts under a single master
contract, including a design build contract or contracts entered into as stages of a single project, which
may be the subject of withholding pursuant to Labor Code Sections 1720, 1720.2, 1720.3, 1720.4, 1771 and
1771.5;
a. “Delinquent payroll records” means those not submitted on the basis set forth in the CITY’s contract and
or the LCP;
b. “Inadequate payroll records” is any one of the following:
1. A record lacking the information required by Labor Code § 1776;
2. A record which contains all of the required information but which is not certified, or is certified by
someone who is not an agent of the contractor or subcontractor;
3. A record remaining uncorrected for one payroll period, after a notice has been given to the contractor
or subcontractor of inaccuracies detected by audit or record review; provided, however, prompt
correction will stop any duty to withhold if such inaccuracies do not amount to 1 percent of the entire
certified weekly payroll in dollar value and do not affect more than half the persons listed as workers
employed on that certified weekly payroll, as defined in Labor Code § 1776 and § 16401 of Title 8 of
the California Code of Regulations.
c. The withholding of contract payments when payroll records are delinquent or inadequate is required by
Labor Code §1771.5 (b)(5), and it does not require the prior approval of the Labor Commissioner. The
CITY shall only withhold those payments due or estimated to be due to the contractor or subcontractor
whose payroll records are delinquent or inadequate, plus any additional amount that the LCP has
reasonable cause to believe may be needed to cover a back wage and penalty assessment against the
contractor or subcontractor whose payroll records are delinquent or inadequate; provided that a
contractor shall be required in turn to cease all payments to a subcontractor whose payroll records are
delinquent or inadequate until the LCP provides notice that the subcontractor has cured the delinquency
or deficiency.
d. When contract payments are withheld under this section, the LCP shall provide the contractor and
subcontractor, if applicable, with immediate written notice that includes all of the following: (1) a
statement that payments are being withheld due to delinquent or inadequate payroll records, and that
identifies what records are missing or states why records that have been submitted are deemed
3.B.b
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inadequate; (2) specifies the amount being withheld; and (3) informs the contractor or subcontractor of
the right to request an expedited hearing to review the withholding of contract payments under Labor
Code Section 1742, limited to the issue of whether the records are delinquent or inadequate or the LCP
has exceeded its authority under this section.
e. No contract payments shall be withheld solely on the basis of delinquent or inadequate payroll records
after the required records have been produced.
f. In addition to withholding contract payments based on delinquent or inadequate payroll records, penalties
shall be assessed under Labor Code Section 1776(h) for failure to timely comply with a written request for
certified payroll records. The assessment of penalties under Labor Code Section 1776(h) does require the
prior approval of the Labor Commissioner under section 16436 of the California Code of Regulations.
C. Withholding Contract Payments When, After Investigation, It Is Established That Underpayment or
Other Violation Has Occurred.
1. "Withhold" and "contracts" have the same meaning set forth in sections 16435(a) and 16435(b) of these
regulations.
2. Where the violation is by a subcontractor, the general contractor shall be notified of the nature of the
violation and reference made to its rights under Labor Code Section 1729.
3. “Amount equal to the underpayment” is the total of the following determined by payroll review, audit, or
admission of the contractor or subcontractor:
a. The difference between the amounts paid to workers and the correct General Prevailing Wage Rate of Per
Diem Wages as defined in Labor Code §1773 and determined to be the prevailing rate due workers in
such crafts, classifications or trade in which they were employed.
b. The difference between the amounts paid to workers and the correct amounts of employer payments, as
defined in Labor Code §1773 .1 and determined to be part of the prevailing wage costs of contractors due
for employment of workers in such craft, classification, or trade in which they were employed.
c. Estimated amounts of “illegal taking of wages”; and
d. Amounts of apprenticeship training contributions paid to neither the program sponsor’s training trust nor
the California Apprenticeship Council.
The withholding of contract payments when, after investigation, it is established that underpayment or other
violations have occurred requires the prior approval of the Labor Commissioner under sections 16436 and
16437 of the California Code of Regulations.
4. Provisions relating to the penalties under Labor Code Sections 1775, 1776, 1777.7, and 1813:
a. Pursuant to Labor Code §1775, the contractor shall, as a penalty to the CITY, forfeit not more than two
hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the
prevailing wages.
3.B.b
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b. Pursuant to Labor Code § 1776(h), the contractor shall, as a penalty to the CITY, forfeit one hundred
dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is
effectuated. The assessment of penalties under this section does require the prior approval of the Labor
Commissioner under §16436 of Title 8 of the California Code of Regulations.
c. Pursuant to Labor Code § 1777.5, contractors and subcontractors are required to employ registered
apprentices on public works projects. Each contractor and subcontractor shall keep an accurate payroll
record relative to apprentices per §1776 of the Labor Code.
d. In situations involving overtime, the contractor shall, as an additional penalty to the CITY forfeit twenty-
five dollars ($25) for each worker employed in the execution of the contract by the contractor or by any
subcontractor for each calendar day during which such 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 §1813 of the Labor Code.
D. Forfeitures Requiring Approval by the Labor Commissioner
1. For the purposes of this section and §16437 below, “forfeitures” means the amount of wages, penalties and
forfeitures assessed by the Labor Commissioner and proposed to be withheld pursuant to Labor Code
§1771.6(a), and includes the following: (1) 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 by the contractor; and (2) penalties assessed under Labor Code §1775, 1776 and 1813.
2. If the aggregate amount of forfeitures assessed as to a contractor or subcontractor is less than $1,000.00,
the forfeiture shall be deemed approved by the Labor Commissioner upon service and the Labor
Commissioner’s receipt of copies of the following: (1) The Notice of Withholding of Contract Payments
authorized by Labor Code §1771.6(a); (2) an audit as defined is §16432(e) of the California Code of
Regulations, and (3) a brief narrative identifying the Bid Advertisement Date of the contract for public work
and summarizing the nature of the violation, the basis of the underpayment, and the factors considered in
determining the assessment of penalties, if any, under Labor Code §1775.
3. For all other forfeitures, approval by the Labor Commissioner shall be requested and obtained in accordance
with §16437 of the California Code of Regulations.
E. Determination of Amount of Forfeiture by the Labor Commissioner (Title 8 CCR §16437)
1. Where the Labor Compliance Program requests a determination of the amount of forfeiture, the request
(included as an appendix to this manual) shall include a file or report to the Labor Commissioner which
contains at least the information: specified in subparts (a) through (i) below.
a. Whether the public work has been accepted by the CITY and whether a valid notice of completion has
been filed, the dates if any when those occurred, and the amount of funds being held in retention by the
CITY;
b. Any other deadline which, if missed, would impede collection;
3.B.b
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c. Evidence of violation in narrative form;
d. Evidence of violation obtained under §16432 of the California Code of Regulations and a copy of the
audit prepared in accordance with §16432(e) setting forth the amount of unpaid wages and applicable
penalties;
e. Evidence that before the forfeiture was sent to the Labor Commissioner (1) the contractor and
subcontractor were given the opportunity to explain why there was no violation, or that any violation was
caused by good faith mistake and promptly corrected when brought to the contractors or subcontractors
attention, and (2) the contractor and subcontractor either did not do so or failed to convince the LCP of
its position.
f. Where the LCP seeks not only wages but also a penalty as part of the forfeiture, and the contractor or
subcontractor has unsuccessfully contended that the cause of violation was a good faith mistake that was
promptly corrected when brought to the contractors or subcontractors attention, a statement should
accompany the proposal for a forfeiture with a recommended penalty amount, pursuant to Labor Code §
1775(a);
g. Where the LCP seeks only wages or a penalty less than $50 per day as part of the forfeiture because the
contractor or subcontractor has successfully contended that the cause of violation was a good faith
mistake that was promptly corrected when brought to the contractor or subcontractors attention, the file
should include the evidence as to the contractor or subcontractors knowledge of his or her obligation,
including the programs communication to the contractor or subcontractor of the obligation in the bid
invitation, at the Pre-Job Conference agenda and records, and any other notice given as part of the
contracting process. Included with the file should be a statement similar to that described in subsection
(f) above and recommended penalty amounts, pursuant to Labor Code § 1775(a);
h. The previous record of the contactor and subcontractor in meeting prevailing wage obligations; and
i. Whether the Labor Compliance Program has been granted approval on only an interim or
temporary basis under §16425 or 16426 of the California Code of Regulations or whether it has been
granted extended approval under §16427 of the California Code of Regulations.
2. The file or report shall be served on the Labor Commissioner as soon as practicable after the violation has
been discovered, and not less than 30 days before the final payment or, but in no event not less than 30
days before the expiration of the limitations period set forth in Labor Code §1742
3. A copy of the recommended forfeiture and the file or report shall be served on the contractor and
subcontractor at the same time as it is sent to the Labor Commissioner. The LCP may exclude from the
documents served on the contractor and subcontractor copies of documents secured from the contractor
during an audit, investigation, or meeting if those documents are clearly referenced in the file or report.
4. The Labor Commissioner shall affirm, reject, or modify the forfeiture in whole or in part as to the wages and
penalties due.
5. The Labor Commissioner’s determination of the forfeiture is effective on one of the two following dates:
3.B.b
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a. For all programs other than those having extended authority under §16427 of the California Code of
Regulations, on the date the Labor Commissioner serves by first class mail, on the CITY’s LCP, on the
contractor and on the subcontractor, if any, an endorsed copy of the proposed forfeiture, or a newly
drafted forfeiture statement which sets out the amount of the forfeiture approved. Service on the
contractor and subcontractor is effective if made on the last address supplied by the contractor or
subcontractor in the record.
b. For programs with extended authority under §16427 of the California Code of regulations, approval is
effective 20 days after the requested forfeitures are served on the Labor Commissioner, unless the Labor
Commissioner services a notice on the parties, within that time period, that this forfeiture request is
subject to further review. For such programs, a notice that approval will follow such a procedure will be
included in the transmittal of the forfeiture request to the contractor. If the Labor Commissioner notifies
the parties of a decision to undertake further review, the Labor Commissioner’s final approval,
modification or disapproval of the proposed forfeiture shall be served within 30 days of the date of the
notice of further review.
F. Notice of Withholding
1. As a matter of enforcing this chapter in accordance with Section 1726 or 1771.5, The CITY shall provide
Notice of the Withholding of Contract Payments (included as an appendix to this manual) to the contractor
and subcontractor, if applicable. The notice shall be in writing and shall describe the nature of the violation
and the amount of wages, penalties, and forfeitures withheld. Service of the Notice shall be completed
pursuant to Section 1013 of the Code of Civil Procedure by first-class and certified mail to the contractor
and subcontractor, if applicable. The Notice shall advise the contractor and subcontractor, if applicable, of
the procedure for obtaining review of the withholding of contract payments. The CITY shall also serve a copy
of the notice by certified mail to any bonding company issuing a bond that secures the payment of wages
covered by the notice and to any surety on a bond, if their identities are known to the CITY.
2. The withholding of contract payments in accordance with Section 1726 or 1771.5 shall be reviewable under
Section 1742 in the same manner as if the Notice of the Withholding was a civil penalty order of the Labor
Commissioner under this chapter. If review is requested, the Labor Commissioner may intervene to
represent the awarding body.
3. Pending a final order, or the expiration of the time period for seeking review of the Notice of Withholding,
the CITY shall not disburse any contract payments withheld.
4. From the amount recovered, the wage claim shall be satisfied prior to the amount being applied to penalties.
If insufficient money is recovered to pay each worker in full, the money shall be prorated among all workers.
5. Wages for workers who cannot be located shall be placed in the Industrial Relations Unpaid Wage Fund and
held in trust for the workers pursuant to Section 96.7. Penalties shall be paid into the General Fund of the
CITY that has enforced this chapter pursuant to Section 1771.5.
G. Deposits of Penalties and Forfeitures Withheld
1. Where the involvement of the Labor Commissioner has been limited to a determination of the actual
amount of penalty, forfeiture, or underpayment of wages and the matter has been resolved without
3.B.b
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Litigation by or against the Labor Commissioner, the CITY shall deposit penalties and forfeitures into its
general fund or fund of its choice.
2. Where collection of fines, penalties, or forfeitures results from Administrative proceedings or court action to
which the Labor Commissioner and the CITY are both parties, the fines, penalties, or forfeitures shall be
divided between the General Funds of the State and the CITY, as the court so deems.
3. All penalties recovered in administrative proceedings or court action brought by or against the Labor
Commissioner and to which the CITY’s Labor Compliance Program is not a party, shall be deposited in the
general fund of the State.
4. All wages and benefits which belong to an employee and are withheld or collected from a contractor or
subcontractor, either by withholding or as a result of court action pursuant to Labor Code § 1775, and which
have not been paid to the worker or irrevocably committed on the worker’s behalf to a benefits fund, shall
be deposited with the Labor Commissioner, who will deal with such wages and benefits in accordance with
Labor Code §96.7.
H. Debarment Policy
It is the policy of the LCP that the Public Works Prevailing Wage requirements set forth in the California Labor
Code, Section 1720-1861, be strictly enforced. In furtherance thereof, construction contractors and
subcontractors found to be repeat violators of the California Labor Code shall be referred to the Labor
Commissioner for debarment from bidding on or otherwise being awarded any public work contract, within the
state of California, for the performance of construction and/or maintenance services for the period not to
exceed three (3) years in duration. The duration of the debarment period shall depend upon the nature and
severity of the labor code violations and any mitigating and/or aggravating factors, which may be present at
the hearing conducted by the Labor Commissioner for such purpose.
SECTION 7: REQUEST FOR REVIEW OF A LABOR COMPLIANCE PROGRAM ENFORCEMENT
ACTION / SETTLEMENT AUTHORITY
1. After 60 days following the service of a civil wage and penalty assessment under Section 1741 or a notice of
withholding under subdivision (a) of Section 1771.6, the affected contractor, subcontractor, and surety on a
bond or bonds issued to secure the payment of wages covered by the assessment or notice shall be liable
for liquidated damages in an amount equal to the wages, or portion thereof, that still remain unpaid. If the
assessment or notice subsequently is overturned or modified after administrative or judicial review,
liquidated damages shall be payable only on the wages found to be due and unpaid. Additionally, if the
contractor or subcontractor demonstrates to the satisfaction of the director that he or she had substantial
grounds for appealing the assessment or notice with respect to a portion of the unpaid wages covered by
the assessment or notice, the director may exercise his or her discretion to waive payment of the liquidated
damages with respect to that portion of the unpaid wages. Any liquidated damages shall be distributed to
the employee along with the unpaid wages. Section 203.5 shall not apply to claims for prevailing wages
under this chapter. (b) Notwithstanding subdivision (a), there shall be no liability for liquidated damages if
the full amount of the assessment or notice, including penalties, has been deposited with the Department of
Industrial Relations, within 60 days following service of the assessment or notice, for the Department to hold
in escrow pending administrative and judicial review. The department shall release such funds, plus any
3.B.b
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interest earned, at the conclusion of all administrative and judicial review to the persons and entities who are
found to be entitled to such funds.
2. A contractor or subcontractor may request a settlement meeting pursuant to Labor Code §1742.1(b) and
may request review of a LCP enforcement action in accordance with Labor Code §1771.6(b) and 1742 and
the regulations found at §17201-17270 of Title 8 of the California Code of Regulations. The LCP shall have
the rights and responsibilities of the enforcing agency (as defined in § 17202(f) of Title 8 of the California
Code of Regulations, in responding to such a Request For Review, including but not limited to the
obligations to serve notices, transmit the Request for Review to the hearing officer, and provide an
opportunity to review evidence in a timely manner, to participate through counsel in all hearing procedures,
and to meet the burden of establishing prima fascia support for the Notice of Withholding of Contract
Payments.
3. If a contractor or a subcontractor seeks review of a LCP enforcement action, the Labor Commissioner may
intervene to represent the CITY, or to enforce relevant provisions of the Labor Code consistent with the
practices of the Labor Commissioner, or both.
4. Except in cases where the Labor Commissioner has intervened pursuant to section (B) above, the LCP shall
have the authority to prosecute, settle, or seek the dismissal of any Notice of Withholding of Contract
Payment issued pursuant to Labor Code §1771.6 and any review proceeding under Labor Code §1742,
without any further need for approval by the Labor Commissioner. Whenever a LCP settles in whole or in
part or seeks and obtains the dismissal of a Notice of Withholding of Contract Payments or a review
proceeding under Labor Code §1742, the LCP shall document the reasons for the settlement or request for
dismissal and shall make that document available to the Labor Commissioner upon request.
5. For each public work project subject to a LCP’s enforcement of prevailing wage requirements, a separate,
written summary of labor compliance activities and relevant facts pertaining to that particular project shall
be maintained. That summary shall demonstrate that reasonable and sufficient efforts have been made to
enforce prevailing wage requirements consistent with the practice of the Labor Commissioner. Appendix C
following this section provides a suggested format for tracking and monitoring enforcement activities.
Compliance records for a project shall be retained until the later of (1) at least one year after the acceptance
of the public work or five years after the cessation of all labor on a public work that has not been accepted,
or (2) one year after a final decision or judgment in any litigation under Labor Code Section 1742. For
purposes of this section, a written summary or report includes information maintained electronically,
provided that the summary or report can be printed out in hard copy form or is in an electronic format that
(1) can be transmitted by e-mail or compact disk and (2) would be acceptable for the filing of documents in
a federal or state court of record within this state.
6. The Labor Commissioner may provide, sponsor, or endorse training on how to enforce prevailing wage
requirements, including but not necessarily limited to the subjects of (1) ascertaining prevailing wage
requirements and rates from the Division of Labor Statistics and Research, (2) monitoring and investigation
under section 16432 above, (3) enforcement responsibilities under this section and sections 16435-16439
below, and (4) procedural requirements and responsibilities as an enforcing agency under Labor Code
sections 1741-1743 and 1771.6 and sections 17201-17270 of Title 8 of the California Code of Regulations.
3.B.b
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SECTION 8: PRIORITY DISTRIBUTION OF FORFEITED SUMS
A. Withholding of Forfeited Sums
1. Before making payments to the contractor of money due under a contract for public work, the CITY shall
withhold and retain there from all amounts required to satisfy any civil wage and penalty assessment issued
by the Labor Commissioner. The amounts required to satisfy a civil wage and penalty assessment shall not
be disbursed by the CITY until receipt of a final order that is no longer subject to judicial review.
B. Disposition of Forfeited Sums
1. The prevailing wage recovery process of this LCP is in accordance with Labor Code § 1775, which provides
that out of any funds withheld, recovered, or both, there shall first be paid the amount due each worker
notwithstanding the filing of any Stop Notice by any person pursuant to Civil Code § 3179, et seq.
Therefore, all workers employed on a public works project who are paid less than the prevailing wage rate
shall have priority over all Stop Notices filed against the contractor.
2. In the event that there are insufficient funds available in the contractor’s account to pay the total amounts
due, the unpaid prevailing wages shall have priority and must, therefore, be paid first, in accordance with
Labor Code § 1775. Furthermore, if insufficient funds are withheld, recovered, or both, to pay each
underpaid worker in full, the money shall be prorated among all said underpaid workers; and all penalties
shall be deposited in the General Fund of the CITY.
SECTION 9: ANNUAL REPORTS
Per section 16431 of the California Code of Regulations, the LCP shall submit to the Director of the DIR an
annual report on the operation of its LCP no later than August 31 of each year. The reporting period will cover
a 12 month period from July 1 of the preceding calendar year and will end on June 30 of the year that the
annual report is due. The CITY’s annual report shall be made on form LCP-AR1, which is included herein under
Attachment G.
Information in the annual report shall be reported in sufficient detail to afford a basis for evaluating the scope
and level of enforcement activity of the LCP. An annual report shall also include such additional information as
the LCP may be required to report as a condition of its approval.
Pursuant to California Code of Regulations §16430, the CITY shall file a Statement of Economic Interest (FPPC
Form 700) along with its Annual Report; specifically:
16430(a) An Awarding Body that operates either its own labor compliance program or that contracts with a
third party to operate all or part of its labor compliance program shall determine and designate those
employees and consultants of the program who participate in making governmental decisions for the
Awarding Body within the meaning of Title 2, California Code of Regulations, sections 18700 - 18702.4. Those
designated employees and consultants shall be required to file Statements of Economic Interest (FPPC Form
700) and to comply with other applicable requirements of the Political Reform Act (commencing with Section
87100 of the Government Code) in connection with work performed on behalf of the Awarding Body.
16430(b): Designated employees and consultants who operate or are employed by a third party labor
3.B.b
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compliance program shall file their Statements of Economic Interest (FPPC Form 700) with the filing officer of
each Awarding Body with which the third party program contracts, unless the Department of Industrial
Relations or the Fair Political Practices Commission specifies a different or alternative filing location.
SECTION 10: OUTREACH ACTIVITIES
To ensure the successful implementation of this Labor Compliance Program, there shall be several outreach
activities initiated and maintained. The LCP Administrator shall be responsible for communication and
outreach activities relative to public information on the Labor Compliance Program:
1. Regular presentations to contractors at all job walk meetings (pre-bid conferences) and job start meetings
(pre-job conferences);
2. Ongoing communication via correspondence and with workers at job sites when review of the CPR’s reveals
the possibility of prevailing wage violations.
3. Periodic meetings with contractor and labor organizations, prime contractors and subcontractors or work
preservation volunteers interested in public works contracting.
3.B.b
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ATTACHMENTS
This section contains the attachments applicable to the CITY’s Labor Compliance Program
3.B.b
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ATTACHMENT A - CHECKLIST OF LABOR LAW REQUIREMENTS
FOR REVIEW AT PER-JOB CONFERENCE
(In accordance with CCR § 16421)
The federal and state labor law requirements applicable to the contract are composed of, but not limited to, the following:
1. Payment of Prevailing Wage Rates The award of a public works contract requires that all workers employed on the project be paid not less than the specified general prevailing wage rates by the contractor and its subcontractors, unless subject to exemption per Labor Code § 1771.5. Should a contract exceed exemption amounts, the contractor and its subcontractors are required to pay not less than the specified general prevailing wage rates. The contractor is responsible for obtaining and complying with all applicable general prevailing wage rates for trades workers and any rate changes,
which may occur during the term of the contract. Prevailing wage rates and rate changes are to be posted at the job site for workers to view.
2. Apprentices
It is the duty of the contractor and subcontractor to employ registered apprentices on public works
projects per Labor Code § 1777.5.
3. Penalties
Penalties, included forfeitures, and debarment, shall be imposed for contractor/subcontractor failure to pay prevailing wages (for nonexempt
projects), failure to maintain and submit accurate certified payroll records upon request, failure to employ apprentices, and for failure to pay employees for all hours worked at the correct prevailing wage rate, in accordance with Labor Code §§ 1775, 1776, 1777.7, and 1813. 4. Certified Payroll Records Per Labor Code § 1776, contractors and subcontractors are required to keep accurate payroll records which reflect the name, address, social security
number, and work classification of each employee; the straight time and overtime hours worked each day and each week; the fringe benefits; and the
actual per diem wages paid to each journeyperson, apprentice, worker, or other employee hired in connection with a public works project. Employee
payroll records shall be certified and shall be made available for inspection at all reasonable hours at the principal office of the contractor/subcontractor, or shall be furnished to any employee, or to his or her authorized representative on request. Contractors and subcontractors shall maintain their certified payrolls on a weekly basis and shall submit said payrolls to the Labor Compliance office on a weekly basis. In the event that there has been no work performed during a given week, the Certified Payroll Record shall be annotated “No Work” for that week and the final payroll for each contractor and subcontractor shall be identified in bold markings as “Final Project Payroll”.
5. Nondiscrimination in Employment
Prohibitions against employment discrimination are contained in Labor Code Sections 1735 and 1777.6; the Government Code; the Public Contracts
Code; and Title VII of the Civil Rights Act of 1964, as amended. All contractors and subcontractors are required to implement equal employment
opportunity practices for women and ethnic groups as delineated below:
a. Equal Employment Poster
The equal employment poster shall be posted at the job site in a conspicuous place visible to
employees and employment applicants for the duration of the project.
b. The contractor and each subcontractor shall maintain accurate records of employment information as required by the Monthly Employment Utilization Report. This report shall specify the ethnicity and gender for each employee in a craft, trade, or classification. c. Further, efforts should be made to employ apprentices on public works contracts per Labor Code §1777.5 efforts to employ apprentices should also be documented.
6. Kickback Prohibited
Per Labor Code § 1778, contractors and subcontractors are prohibited from accepting, taking wages illegally, or extracting “kickback” from employee
wages;
7. Acceptance of Fees Prohibited
Contractors and subcontractors are prohibited from exacting any type of fee for registering individuals for public work (Labor Code § 1779); or for filing work orders on public works contracts (Labor Code § 1780). 8. Listing of Subcontractors
Contractors are required to list all subcontractors hired to perform work on a public works project when that work is equivalent to more than one-half
of one percent of the total effort (Government Code § 4100, et seq.);
3.B.b
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9. Proper Licensing
Contractors and subcontractors are required to be properly licensed. Penalties will be imposed for employing workers while unlicensed (Labor Code
§ 1021 and Business and Professions Code § 7000, et seq. under California Contractors License Law);
10. Unfair Competition Prohibited
Contractors and subcontractors are prohibited from engaging in unfair competition (Business and Professions Code §§ 17200-17208);
11. Workers’ Compensation Insurance
All contractors and subcontractors are required to be insured against liability for workers’ compensation, or to undertake self-insurance in
accordance with the provisions of Labor Code § 3700 (Labor Code § 1861); 12. OSHA Contractors and subcontractors are required to comply with the Occupational, Safety and Health laws and regulations applicable to the particular public works project; and
13. Undocumented Workers
The Federal prohibition against hiring undocumented workers, and the requirement to secure proof of eligibility/citizenship from all workers.
14. Itemized Wage Statements
Every employer shall, semimonthly or at the time of each payment of wages, furnish each of his or her employees, either as a detachable part of the
check, draft or voucher paying the employee’s wages, or separately when wages are paid by personal check or cash, an accurate itemized
statement as per §226 of the state labor code.
I acknowledge that I have been informed and am aware of the foregoing requirements and that I am authorized to make this certification on behalf of _____________________ (contractor) For the Contractor: For the CITY’s Labor Compliance Administrator --------------------------------------------- -------------------------------------- Signature Signature
--------------------------------------------- --------------------------------------
Date Date
3.B.b
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ATTACHMENT B – COMPLIANCE MONITORING & AUDIT RECORD WORKSHEETS
Audit Record Worksheets [8 Cal. Code Reg. §16432]
Public Works Investigation Worksheet
Public Works Audit Worksheet
Prevailing Wage Determination Summary
Suggested Single Project Labor Compliance Review and Enforcement Report Form [Appendix C
following 8 CCR §16434]
3.B.b
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3.B.b
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3.B.b
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3.B.b
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Suggested Single Project Labor Compliance Review and Enforcement Report Form
[Appendix C following 8 CCR §16434]
Awarding Body:
Project Name:
Name of Approved Labor Compliance Program:
Bid Advertisement Date:
Acceptance Date:
Notice of Completion Recordation Date:
Summary of Labor Compliance Activities
1. Contract Documents Containing Prevailing Wage Requirements (Identify)
2. Prejob Conference(s) -- Attach list(s) of attendees and dates
3. Notification to Project Workers of Labor Compliance Program’s Contact Person. (Explain
Manner of Notification for each project work site.)
4. Certified Payroll Record Review
a. CPRs Received From:
Contractor/Subcontractor For weeks ending (“w/e”) through w/e
3.B.b
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b. Classifications identified in CPRs and applicable Prevailing Wage Determinations
Classification Determination No.
5. Further investigation or audit due to CPR review, information or complaint from worker or other interested
person, or other reason:
a. Independent Confirmation of CPR Data
Worker Interviews Reconciled CPRs with Pay-
Contractor/Subcontractor (Yes/No) checks or Stubs (Yes/No)
b. Employer Payments (Health & Welfare, Pension, Vacation/Holiday) Confirmation
Recipients of Written confirmation
Contractor/Subcontractor Employer Payments Obtained (Yes/No)
c. Contributions to California Apprenticeship Council or Other Approved Apprenticeship Program
Recipients of Written confirmation
Contractor/Subcontractor Contributions Obtained (Yes/No)
3.B.b
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d. Additional Wage Payments or Training Fund Contributions Resulting from Review of CPRs
Additional amounts Additional Expla-
Contractor/Subcontractor Paid to Workers Training Fund nation
*
*
*
*
* Use separate page(s) for explanation
6. Complaints Received Alleging Noncompliance with Prevailing Wage Requirements.
Name of Resolution or
Complainant Date Received Current Status
*
*
*
*
*Use separate page(s) to explain resolution or current status
7. Requests for Approval of Forfeiture to Labor Commissioner
Contractor/Subcontractor Date of Request Approved/Modified/Denied
8. Litigation Pending Under Labor Code Section 1742
Contractor/Subcontractor DIR Case Number
9. (Check one): Final report this project Annual report this project
Authorized Representative for Labor Compliance Program
3.B.b
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ATTACHMENT C - REQUEST FOR APPROVAL OF FORFEITURE
1. AWARDING BODY / THIRD PARTY LCP:
Name and Contact Information for Awarding Body:
City of Grand Terrace
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Fax: (909) 825-7506
E-mail: mwirz@cityofgrandterrace.org
Date of Request:
LCP Approval Status (specify if either
interim or temporary or if LCP has
extended authority):
2. PROJECT INFORMATION:
Project Name:
Contract Number:
Project Location:
Bid Advertisement Dates:
Estimated Date Project is to be completed:
Acceptance Date of Project by the Awarding
Body:
Notice of Completion/Date Recorded with County
Recorder:
Other Relevant Deadline (specify): Amount being held in Retention:
3. CONTRACTOR INFORMATION:
Name and address of Affected Contractor:
Name and address of Affected Subcontractor:
General Description of Scope of Work of the Entire Project:
General Description of Scope of Work covered in the proposed Forfeiture (describe and attach relevant
portions of contract or subcontract):
3.B.b
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4. LABOR COMPLIANCE PROGRAM INVESTIGATION AND FINDINGS:
Total Amount of Request for Notice of Withholding of Contract Payments:
Wages Due:
Training Funds
Due:
Total Penalties Due:
Potential Liquidated Damages
[Wages + Training Funds]:
LC 1775 Penalties Due: LC 1813 Penalties
Due:
LC 1776 Penalties Due:
Other:
[Provide narrative summaries covering the following]:
A. Statement of Issues.
B. Investigative Report (detailed narrative including but not limited to how the investigation was conducted
including worker declarations, reviewing certified payroll records, verification of employer payment
contributions, etc.).
C. Audit Report (detailed explanation of how audit was completed addressing each of the issues above).
D. Affected contractor and subcontractor information (how affected contractor and subcontractor were
informed of potential violations; summary of their response with respect to violations and penalty issues;
and any other information considered in determining recommended penalties).
E. Recommended penalties under Labor Code Section 1775(a) and basis for recommendation, including
how factors in subsection (a)(2) of Section 1775 were applied to arrive at the recommended amount(s).
ATTACHMENTS
1. Audit Summary (Appendix B)
2. 1st Bid Advertisement Publication
3. Notice of Completion
4. Scope of Work
5. Complaint form(s) and Declarations, if any
Send the Request and all Attachments to:
Division of Labor Standards Enforcement
Bureau of Field Enforcement
Attn.: Regional Manager
300 Oceangate Blvd., No. 850
Long Beach, CA 90802
COPIES OF THIS REQUEST, INCLUDING ALL ATTACHMENTS, SHALL BE SERVED ON THE
AFFECTED CONTRACTOR AND AFFECTED SUBCONTRACTOR AT THE SAME TIME THAT IT
IS SENT TO THE DIVISION OF LABOR STANDARDS ENFORCEMENT.
3.B.b
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LABOR COMPLIANCE PROGRAM
City of Grand Terrace
Review Office - Notice of Withholding
of Contract Payments
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Fax: (909) 825-7506
Date:
In Reply Refer to Case No.:
Notice of Opportunity to Review Evidence Pursuant to Labor Code Section 1742(b)
To: Prime Contractor
__________________________
__________________________
__________________________
Subcontractor
__________________________
__________________________
__________________________
Please be advised that this office has received your Request for Review, dated _____________, and pertaining
to the Notice of Withholding of Contract Payments issued by the Labor Compliance Program in Case No.
_____________.
In accordance with Labor Code section 1742(b), this notice provides you with an opportunity to review
evidence to be utilized by the Labor Compliance Program at the hearing on the Request for Review, and the
procedures for reviewing such evidence.
Rule 17224 of the Prevailing Wage Hearing Regulations provides as follows:
A(a) Within ten (10) days following its receipt of a Request for Review, the Enforcing Agency
shall also notify the affected contractor or subcontractor of its opportunity and the procedures for
reviewing evidence to be utilized by the Enforcing Agency at the hearing of the Request for
Review.
3.B.b
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(b) An Enforcing Agency shall be deemed to have provided the opportunity to
review evidence required by this Rule if it (1) gives the affected contractor or
subcontractor the option at said party's own expense to either (i) obtain copies of all
such evidence through a commercial copying service or (ii) inspect and copy such
evidence at the office of the Enforcing Agency during normal business hours; or if
(2) the Enforcing Agency at its own expense forwards copies of all such evidence to
the affected contractor or subcontractor.
(c) The evidence required to be provided under this Rule shall include the identity of
witnesses whose testimony the Enforcing Agency intends to present, either in person
at the hearing or by declaration or affidavit. This provision shall not be construed as
requiring the Enforcing Agency to prepare or provide any separate listing of
witnesses whose identities are disclosed within the written materials made available
under subpart (a).
(d) The Enforcing Agency shall make evidence available for review as specified in
subparts (a) through (c) within 20 days of its receipt of the Request for Review;
provided that, this deadline may be extended by written request or agreement of the
affected contractor or subcontractor. The Enforcing Agency's failure to make
evidence available for review as required by Labor Code section 1742(b) and this
Rule, shall preclude the enforcing agency from introducing such evidence in
proceedings before the Hearing officer or the Director.
(e) This Rule shall not preclude the Enforcing Agency from relying upon or
presenting any evidence first obtained after the initial disclosure of evidence under
subparts (a) through (d), provided that, such evidence is promptly disclosed to the
affected contractor or subcontractor. This Rule also shall not preclude the Enforcing
Agency from presenting previously undisclosed evidence to rebut new or collateral
claims raised by another party in the proceeding.@
In accordance with the above Rule, please be advised that the Labor Compliance Program's
procedure for you to exercise your opportunity to review evidence is as follows:
Within five calendar days of the date of this notice, please transmit the attached
Request to Review Evidence to the following address:
City of Grand Terrace
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Fax: (909) 825-7506
3.B.b
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Request to Review Evidence
To: ______________________________
______________________________
______________________________
______________________________
From:
City of Grand Terrace
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Fax: (909) 825-7506
Regarding Notice of Withholding of Contract Payments Dated ____________
Our Case No.: _________________
The undersigned hereby requests an opportunity to review evidence to be utilized by
the Labor Compliance Program at the hearing on the Request for Review.
________________________________
Phone No.:_______________________
Fax No.:_________________________
3.B.b
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Labor Compliance Program
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Date: In Reply Refer to Case No.:
ATTACHMENT D - Notice of Withholding of Contract Payments
Awarding Body Work Performed in County of Project Name Project No. Prime Contractor Subcontractor
After an investigation concerning the payment of wages to workers employed in the execution of the
contract for the above-named public works project, the Labor Compliance Program for _______________
_______________________ (Labor Compliance Program) has determined that violations of the California
Labor Code have been committed by the contractor and/or subcontractor identified above. In accordance
with Labor Code sections 1771.5 and 1771.6, the Labor Compliance Program hereby issues this Notice of
Withholding of Contract Payments.
The nature of the violations of the Labor Code and the basis for the assessment are as follows:
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
The Labor Compliance Program has determined that the total amount of wages due is:
$___________________
The Labor Compliance Program has determined that the total amount of penalties assessed under Labor
Code sections 1775 and 1813 is: $__________________
The Labor Compliance Program has determined that the amount of penalties assessed under Labor Code
section 1776 is: $__________________
LABOR COMPLIANCE PROGRAM
_____________________________________
By:__________________________________
3.B.b
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Notice of Right to Obtain Review - Formal Hearing
In accordance with Labor Code sections 1742 and 1771.6, an affected contractor or subcontractor may
obtain review of this Notice of Withholding of Contract Payments by transmitting a written request to
the office of the Labor Compliance Program that appears below within 60 days after service of the
notice. To obtain a hearing, a written Request for Review must be transmitted to the following
address:
Labor Compliance Program
Review Office-Notice of Withholding of Contract Payments
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Fax: (909) 825-7506
A Request for Review either shall clearly identify the Notice of Withholding of Contract Payments
from which review is sought, including the date of the notice, or it shall include a copy of the notice as
an attachment, and shall also set forth the basis upon which the notice is being contested. In accordance
with Labor Code section 1742, the contractor or subcontractor shall be provided an opportunity to
review evidence to be utilized by the Labor Compliance Program at the hearing within 20 days of the
Labor Compliance Program's receipt of the written Request for Review.
Failure by a contractor or subcontractor to submit a timely Request
for Review will result in a final order which shall be binding on the
contractor and subcontractor, and which shall also be binding, with
respect to the amount due, on a bonding company issuing a bond that
secures the payment of wages and a surety on a bond. Labor Code
section 1743.
In accordance with Labor Code section 1742(d), a certified copy of a final order may be filed by the
Labor Commissioner in the office of the clerk of the superior court in any county in which the affected
contractor or subcontractor has property or has or had a place of business. The clerk, immediately upon
the filing, shall enter judgment for the State against the person assessed in the amount shown on the
certified order.
(continued on next page)
3.B.b
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Opportunity for Settlement Meeting
In accordance with Labor Code Section 1742.1 (b), the Labor Compliance Program shall, upon
receipt of a request from the affected contractor or subcontractor within 30 days following the
service of this Notice of Withholding of Contract Payments, afford the contractor or subcontractor
the opportunity to meet with the Labor Compliance Program's designee to attempt to settle a
dispute regarding the notice. The settlement meeting may be held in person or by telephone and
shall take place before the expiration of the 60-day period for seeking a hearing as set forth above
under the heading Notice of Right to Obtain Review. No evidence of anything said or any
admission made for the purpose of, in the course of, or pursuant to, the settlement meeting is
admissible or subject to discovery in any administrative or civil proceeding. No writing prepared
for the purpose of, in the course of, or pursuant to, the settlement meeting, other than a final
settlement agreement, is admissible or subject to discovery in any administrative or civil
proceeding. This opportunity to timely request an informal settlement meeting is in addition to the
right to obtain a formal hearing, and a settlement meeting may be requested even if a written
Request for Review has already been made. Requesting a settlement meeting, however, does not
extend the 60-day period during which a formal hearing may be requested.
A written request to meet with the Labor Compliance Program's designee to attempt to settle a
dispute regarding this notice must be transmitted to the contact named below at the following
address:
City of Grand Terrace
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Fax: (909) 825-7506
Liquidated Damages
In accordance with Labor Code section 1742.1, after 60 days following the service of this Notice of
Withholding of Contract Payments, the affected contractor, subcontractor, and surety on a bond or
bonds issued to secure the payment of wages covered by the notice shall be liable for liquidated
damages in an amount equal to the wages, or portion thereof that still remain unpaid. If the notice
subsequently is overturned or modified after administrative or judicial review, liquidated damages
shall be payable only on the wages found to be due and unpaid. If the contractor or subcontractor
demonstrates to the satisfaction of the Director of the Department of Industrial Relations that he or
she had substantial grounds for believing the assessment or notice to be an error, the Director shall
waive payment of the liquidated damages.
The Amount of Liquidated Damages Available Under this Notice is $_______________.
Distribution: Attach:
Prime Contractor Audit Summary
Subcontractor Proof of Service
Surety(s) on Bond
3.B.b
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City of Grand Terrace
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Fax: (909) 825-7506
Date: Case or Contract No.:
ATTACHMENT E - NOTICE OF TEMPORARY WITHHOLDING OF CONTRACT PAYMENTS
DUE TO DELINQUENT OR INADEQUATE PAYROLL RECORDS
(8 CCR §16435)
Awarding Body:
Work performed in County of:
Project Name and Number (if any):
Prime Contractor:
Subcontractor:
Pursuant to Labor Code §1771.5(b)(5) and 8 CCR §16435, contract payments are being withheld
due to delinquent or inadequate payroll records.
Contractor or subcontractor whose payroll records are delinquent or inadequate:
The following payroll records are delinquent (specify weeks and due dates):
The following payroll records are inadequate (specify weeks and ways in which records are
deemed inadequate under 8 CCR §16435(d)):
Estimated amount of contract payments due to contractor or subcontractor that are being withheld
pursuant to this Notice:
See page 2 for additional information, including appeal rights.
Labor Compliance Officer
3.B.b
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Prime Contractor Obligations: If contract payments are being withheld due to the delinquency or
inadequacy of your subcontractor’s payroll records, you are required to cease all payments to that
subcontractor until the Labor Compliance Program provides notice that the subcontractor has cured
the delinquency or deficiency.
Notice of Right to Obtain Review – Expedited Hearing
An affected contractor or subcontractor may request review an expedited hearing to review this
Notice of Withholding of Contract Payments under Labor Code §1742. The only issue in any such
review proceeding is whether the specified payroll records are in fact delinquent or inadequate
within the meaning of 8 CCR §16435 or whether the Labor Compliance Program has exceeded its
authority under 8 CCR §16435. To obtain an expedited hearing, a written request must be
transmitted to the both the Labor Compliance Program and to the Lead Hearing Officer for
the Director of the Department of Industrial Relations, as follows:
City of Grand Terrace
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Fax: (909) 825-7506
Office of the Director – Legal Unit
Attention: Lead Hearing Officer
Expedited Hearing Request
Fax to: (415) 703-4277
The request for expedited hearing should specify the basis for challenging this Notice and include a
copy of this Notice as an attachment. The request should also identify and provide contact
information for the person who will represent the contractor or subcontractor at the hearing.
Important Additional Information: This is a Notice of Temporary Withholding of Contract
Payments for Delinquent or Inadequate Payroll Records only. This is not a determination of
liability for wages or penalties under Labor Code §§1775 and 1776 or any other statute. Contract
payments cannot continue to be withheld pursuant to this notice, once the required records have
been produced. However, the contractor and subcontractor may still be subject to the assessment of
back wages and penalties and the withholding of contract payments if, upon investigation, a
determination is made that the contractor or subcontractor violated the public works requirements of
the Labor Code.
This Notice only addresses rights and responsibilities under state law. Awarding bodies, labor
compliance programs, and contractors may have other rights or responsibilities under federal or
local law, where applicable, and may also have additional rights or remedies under the public works
contract.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Enclosure – text of 8 CCR §16435
§16435. Withholding Contract Payments When Payroll Records are Delinquent or Inadequate.
(a) "Withhold" means to cease payments by the Awarding Body, or others who pay on its behalf, or agents,
to the general contractor. Where the violation is by a subcontractor, the general contractor shall be notified
of the nature of the violation and reference made to its rights under Labor Code Section 1729.
(b) "Contracts." Except as otherwise provided by agreement, only contracts under a single master contract,
including a Design-Build contract, or contracts entered into as stages of a single project, may be the subject
of withholding.
(c) "Delinquent payroll records" means those not submitted on the date set in the contract.
(d) "Inadequate payroll records" are any one of the following:
(1) A record lacking any of the information required by Labor Code Section 1776;
(2) A record which contains all of the required information but is not certified, or is certified by someone
who is not an agent of the contractor or subcontractor;
(3) A record remaining uncorrected for one payroll period after the Labor Compliance Program has given the
contractor or subcontractor notice of inaccuracies detected by audit or record review. However, prompt
correction will stop any duty to withhold if such inaccuracies do not amount to one (1) percent of the entire
Certified Weekly Payroll in dollar value and do not affect more than half the persons listed as workers
employed on that Certified Weekly Payroll, as defined in Labor Code Section 1776 and section 16401 of
Title 8 of the California Code of Regulations.
(e) The withholding of contract payments when payroll records are delinquent or inadequate is required by
Labor Code Section 1771.5(b)(5), and it does not require the prior approval of the Labor Commissioner. The
Awarding Body shall only withhold those payments due or estimated to be due to the contractor or
subcontractor whose payroll records are delinquent or inadequate, plus any additional amount that the Labor
Compliance Program has reasonable cause to believe may be needed to cover a back wage and penalty
assessment against the contractor or subcontractor whose payroll records are delinquent or inadequate;
provided that a contractor shall be required in turn to cease all payments to a subcontractor whose payroll
records are delinquent or inadequate until the Labor Compliance Program provides notice that the
subcontractor has cured the delinquency or deficiency.
(f) When contract payments are withheld under this section, the Labor Compliance Program shall provide the
contractor and subcontractor, if applicable, with immediate written notice that includes all of the following:
(1) a statement that payments are being withheld due to delinquent or inadequate payroll records, and that
identifies what records are missing or states why records that have been submitted are deemed inadequate;
(2) specifies the amount being withheld; and (3) informs the contractor or subcontractor of the right to
request an expedited hearing to review the withholding of contract payments under Labor Code Section
1742, limited to the issue of whether the records are delinquent or inadequate or the Labor Compliance
Program has exceeded its authority under this section.
(g) No contract payments shall be withheld solely on the basis of delinquent or inadequate payroll records
after the required records have been produced.
(h) In addition to withholding contract payments based on delinquent or inadequate payroll records, penalties
shall be assessed under Labor Code Section 1776(h) for failure to timely comply with a written request for
certified payroll records. The assessment of penalties under Labor Code Section 1776(h) does require the
prior approval of the Labor Commissioner under section 16436 of these regulations.
3.B.b
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LABOR COMPLIANCE PROGRAM
City of Grand Terrace
Review Office - Notice of Withholding
of Contract Payments
c/o Matt Wirz
22795 Barton Road
Grand Terrace, CA 92313
Phone: (909) 430-2255
Fax: (909) 825-7506
Date: In Reply Refer to Case No.:
Notice of Transmittal
To: Department of Industrial Relations
Office of the Director-Legal Unit
Attention: Lead Hearing Officer
P. O. Box 420603
San Francisco, CA 94142-0603
Enclosed herewith please find a Request for Review, dated __________________, postmarked
___________________, and received by this office on ____________________.
Also enclosed please find the following:
____ Copy of Notice of Withholding of Contract Payments
____ Copy of Audit Summary
LABOR COMPLIANCE PROGRAM
City of Grand Terrace
By:_____________________________
cc: Prime Contractor
Subcontractor
Bonding Company
Please be advised that the Request for Review identified above has been received
and transmitted to the address indicated. Please be further advised that the governing
procedures applicable to these hearings are set forth at Title 8, California Code of
Regulations sections 17201-17270. These hearings are not governed by Chapter 5 of
the Government Code, commencing with section 11500.
3.B.b
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ATTACHMENT F – CERTIFID PAYROLL RECORD (CPR) TEMPLATE
3.B.b
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3.B.b
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ATTACHMENT G – ANNUAL REPORT LCP-AR1 TEMPLATE FORM
3.B.b
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3.B.b
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3.B.b
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AGENDA REPORT
MEETING DATE:March 26, 2013 Council Item
TITLE:Approval of Check Register No. 03-26-2013
PRESENTED BY:Cynthia Fortune, Finance Manager
RECOMMENDATION:Approve Attached Check Register for March 26, 2013, as
submitted, which includes the Check Register Account Index
and Voucher Listings for Fiscal Year 2012-13.
BACKGROUND:
The Check Register for March 26, 2013 is presented in accordance with Government
Code §37202 and is hereby submitted for the City Council’s approval.
The attached index to the Check Register is a guideline account list only and is not
intended to replace the comprehensive chart of accounts used by the City and CRA
Successor Agency. Expenditure account number formats are XX-XXX-XXX [Fund-
Department-Account]. Expenditures may be made from trust/agency accounts (Fund
23-XXX-) or temporary clearing accounts which do not have a budgetary impact.
A total of $173,901.32 in accounts payable checks was issued during the period for
services, reimbursements, supplies and contracts and are detailed in the attached
check register.
New vendors:
Check
No.Payee Description Amount
69090 Maureen Kane &
Associates Inc Technical Training for Clerks-Martinez $1,500.00
Payments larger than $10,000:
Check
No.Payee Description Amount
69089 Public Emp.
Retirement Sys
PERS Contributions for payroll ending
date 2/1/2013 $14,212.89
69103 Albert A. Webb
Associates
GT Fitness Park Professional Services
for February $14,052.79
69112 Hamel
Construction Inc
West Side Park Construction
Payment # 1 $90,670.85
3.C
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Payroll costs for the period ending March 15, 2013
Pay
Per.Period Ending Period Amount
6 03/15/2013 Biweekly $53,626.43
FISCAL IMPACT:
All disbursements are made in accordance with the Adopted Budget for Fiscal Year
2012-13.
ATTACHMENTS:
·Check Register Account Index
·Check Register 3-26-13
APPROVALS:
Finance Completed 03/21/2013 12:19 PM
Cynthia Fortune Skipped 03/21/2013 12:22 PM
City Attorney Completed 03/21/2013 1:37 PM
City Manager Completed 03/21/2013 1:40 PM
City Council Pending
3.C
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City of Grand Terrace
Check Register Index
FD No.Fund Name Dept No.Department Name/Cost Center Acct No.General Account Numbers
09 CHILD CARE FUND 110 CITY COUNCIL 110 SALARIES/WAGES
10 GENERAL FUND 120 CITY MANAGER 139 EMPLOYEES' BENEFIT PLAN
11 STREET FUND 125 CITY CLERK 140 RETIREMENT
12 STORM DRAIN FUND 140 FINANCE 142 HEALTH/LIFE INSURANCE
13 PARK FUND 160 CITY ATTORNEY 143 WORKERS' COMPENSATION
14 AB 3229 COPS FUND 172 BUILDING & SAFETY 138/141 MEDICARE / SUI
15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS 210 OFFICE EXPENSE
16 GAS TAX FUND 180 COMMUNITY EVENTS 218-219 NON-CAPITAL FURN/SMALL TOOLS
17 TRAFFIC SAFETY FUND/ TDA FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP
19 FACILITIES DEVELOPMENT FUND 187 ENFORCEMENT PROGRAM 230 ADVERTISING
20 MEASURE I FUND 190 GENERAL GOVERNMENT (NON-DEPT) 235 COMMUNICATIONS
21 WASTE WATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 238-239 UTILITIES
22 COMMUNITY DEV. BLOCK GRANT 370 COMMUNITY & ECONOMIC DEV 240-242 RENTS & LEASES
26 LSCPG/ LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 245-246 MAINT BLDG GRNDS EQUIPMNT
44 BIKE LANE CAPITAL FUND 410 LAW ENFORCEMENT 250-251 PROFESSIONAL SERVICES
46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES 255-256 CONTRACTUAL SERVICES
47 BARTON RD. BRIDGE PROJECT 440 CHILD CARE 260 INSURANCE & SURETY BONDS
48 CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 265 MEMBERSHIPS & DUES
32 CRA-CAPITAL PROJECTS FUND 510 STREET & SIGNAL LIGHTING 268 TRAINING
33 CRA-DEBT SERVICE FUND 600 WEST SIDE PARK 270 TRAVEL/CONFERENCES/MTGS
34 CRA-LOW & MOD HOUSING 601 TRACT 14471 PICO & ORIOLE 272 FUEL & VEHICLE MAINTENANCE
602 FORREST CITY PHASE II 570 WASTEWATER TREATMENT
631 STORM DRAIN MAINTENANCE 33-300 DEBT SERVICE
801 PLANNING COMMISSION 7XX FACILITIES IMPRV (NO CIP)
802 CRIME PREVENTION UNIT 700 COMPUTER-RELATED
804 HISTORICAL & CULTURAL COMM. 701 VEHICLES & EQUIPMENT
805 SENIOR CITIZENS PROGRAM
807 PARKS & REC COMMITTEE
808 EMERGENCY OPERATIONS PROG.
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Attachment: Check Register Account Index (1235 : Check Register No. 03-26-2013)
03/20/2013
Voucher List
CITY OF GRAND TERRACE
1
6:58:02PM
Page:vchlist
Bank code :bofa
Voucher Date Vendor Invoice Description/Account Amount
69089 3/7/2013 005702 PUBLIC EMPLOYEES' RETIREMENT PR End 2/1/13 PERS Contributions-PR End 2/1/13
10-022-62-00 14,212.89
Total : 14,212.89
69090 3/11/2013 011266 MAUREEN KANE & ASSOCIATES, INC 02262013 Technical Training for Clerks-Martinez
10-125-270-000-000 1,500.00
Total : 1,500.00
69091 3/13/2013 010171 SIEMENS INDUSTRY INC 400094111 Dec Signal Response Call-Outs
16-510-255-000-000 1,767.41
Total : 1,767.41
69092 3/20/2013 001206 ARROWHEAD CREDIT UNION Jan-Feb 2012 January-February Visa Charges
10-120-210-000-000 Software
25.46
10-110-270-000-000 Council Travel - Lodging/Flights 1,070.55
09-440-228-000-000 Child Care Center Supplies 464.73
09-440-220-000-000 Child Care Kitchen Supplies 24.06
10-450-246-000-000 John Deere Tractor 198.22
10-808-246-000-000 EOC Generator Plug 22.56
Total : 1,805.58
69093 3/20/2013 001213 AT & T Mar 2013 Feb/Mar Phones & Internet Service
09-440-235-000-000 405.56
10-190-235-000-000 543.74
10-450-235-000-000 47.11
10-805-235-000-000 162.55
10-808-235-000-000 87.19
Total : 1,246.15
69094 3/20/2013 010218 CHEVRON & TEXACO CARD SERVICES 37405910 February Vehicle fuel
10-175-272-000-000 472.75
09-440-272-000-000 88.55
10-185-272-000-000 33.32
Total : 594.62
69095 3/20/2013 001907 COSTCO #478 0478 07 0177 111 FOOD & SNACKS FOR ALL PROGRAMS
09-440-220-000-000 233.56
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2
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Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 233.56 69095 3/20/2013 001907 COSTCO #478
69096 3/20/2013 003210 DEPT 32-2500233683 6035322500233683Inv 2012179 and Inv 7014286
10-195-245-000-000 48.80
10-450-245-000-000 94.21
10-195-245-000-000 9.76
Total : 152.77
69097 3/20/2013 010812 LOWE'S COMMERCIAL SERVICES 9800 6821213 Inv 900001 Maint Supplies
10-450-245-000-000 87.51
Total : 87.51
69098 3/20/2013 010664 SHELL FLEET MANAGEMENT 8000209687303 February Vehicle Fuel
10-175-272-000-000 115.01
Total : 115.01
69099 3/20/2013 006720 SO.CA.EDISON COMPANY Feb 2013 February Energy Usage
10-805-238-000-000 724.65
16-510-238-000-000 5,860.65
26-600-238-000-000 49.80
26-601-238-000-000 41.50
26-602-238-000-000 58.10
Total : 6,734.70
69100 3/20/2013 006730 SO.CA.GAS COMPANY Feb 2013 February CNG/Natural Gas Usage
10-190-238-000-000 731.01
10-805-238-000-000 227.70
09-440-238-000-000 179.92
10-175-272-000-000 7.80
10-185-272-000-000 2.60
09-440-272-000-000 2.60
Total : 1,151.63
69101 3/20/2013 011138 SPARKLETTS 9637116 030113 February Bottled Water
10-190-238-000-000 41.28
10-805-238-000-000 13.52
09-440-238-000-000 59.66
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Bank code :bofa
Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 114.46 69101 3/20/2013 011138 SPARKLETTS
69102 3/20/2013 011199 PRUDENTIAL MUNICIPAL POOL Feb 0000338643 Feb EAP, Life, AD&D, Dep Care, STD & LTD
16-175-142-000-000 11.64
21-175-142-000-000 6.82
21-625-142-000-000 2.20
32-200-142-000-000 27.18
10-022-66-00 812.73
09-440-142-000-000 109.48
10-120-142-000-000 19.60
10-125-142-000-000 7.53
10-140-142-000-000 5.14
10-172-142-000-000 10.08
10-175-142-000-000 10.78
10-185-142-000-000 12.33
10-370-142-000-000 13.60
10-380-142-000-000 9.00
10-450-142-000-000 3.38
10-625-142-000-000 5.14
Total : 1,066.63
69103 3/26/2013 011143 ALBERT A. WEBB ASSOCIATES 130535 FEB FITNESS PARK PROFESSIONAL SRVS
48-600-325-003-000 14,052.79
Total : 14,052.79
69104 3/26/2013 001683 CA. STATE DEPT OF CONSERVATION 2nd Qtr 2012-13 2nd Qtr Strong Motion Mapping Fees
10-700-01 -0.50
23-200-21-00 10.07
Total : 9.57
69105 3/26/2013 011031 CINTAS CORPORATION #150 150792993 REST ROOM SUPPLIES
09-440-228-000-000 166.96
150802103 REST ROOM SUPPLIES
09-440-228-000-000 168.12
Total : 335.08
69106 3/26/2013 001810 CITY NEWSPAPER GROUP 17458 NOTICE OF HEARING PUBLICATION
10-125-230-000-000 155.40
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Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 155.40 69106 3/26/2013 001810 CITY NEWSPAPER GROUP
69107 3/26/2013 006435 CITY OF SAN BERNARDINO 2013-10000055 MARCH ANIMAL CONTROL SRVS
10-187-256-000-000 8,682.00
Total : 8,682.00
69108 3/26/2013 011166 CORNERSTONE RECORDS MANAGEMENT 0202080 FEBRUARY ARCHIVE TAPE STORAGE
10-140-250-000-000 56.65
10-380-250-000-000 56.65
Total : 113.30
69109 3/26/2013 001950 DATA QUICK B1-2128790 FEBRUARY SUBSCRIPTION SVCS
10-370-250-000-000 87.00
10-380-250-000-000 43.50
Total : 130.50
69110 3/26/2013 002500 FIREMASTER 0000057360 EOC Fire Extinguisher Maintenance
10-808-221-000-000 368.18
Total : 368.18
69111 3/26/2013 002500 FIREMASTER 0000061056 Sr Cntr Kitchen Hood Inspection
10-805-246-000-000 285.00
Total : 285.00
69112 3/26/2013 011030 HAMEL CONTRACTING INC.Application#1 WEST SIDE PARK Construction Pymt#1
48-600-325-005-000 90,670.85
Total : 90,670.85
69113 3/26/2013 010632 HIGH TECH SECURITY SYSTEMS 103759 APRIL SECURITY CAMERA MONITORING
10-450-246-000-000 60.00
10-195-247-000-000 20.00
Total : 80.00
69114 3/26/2013 011269 HOEBEL, JASON 16670 C.Care Balance Reimbursement-Hoebel
09-440-23 33.40
Total : 33.40
69115 3/26/2013 003224 HYDRO-SCAPE PRODUCTS INC.7497367-00 PARK MAINT SUPPLIES
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Bank code :bofa
Voucher Date Vendor Invoice Description/Account Amount
69115 3/26/2013 (Continued)003224 HYDRO-SCAPE PRODUCTS INC.
10-450-245-000-000 900.56
7497868-00 PARK MAINT SUPPLIES
10-450-245-000-000 880.55
Total : 1,781.11
69116 3/26/2013 011235 IQM2 INC.4339 MARCH MINUTETRAQ SUBSCRICPTION
10-125-250-000-000 550.00
Total : 550.00
69117 3/26/2013 002727 J.R. FREEMAN COMPANY 505065-0 OFFICE SUPPLIES
10-125-210-000-000 277.15
505065-1 OFFICE SUPPLIES
10-125-210-000-000 133.92
Total : 411.07
69118 3/26/2013 011216 JONES & MAYER 62908 Grand Terrace RLA: February Retainer
10-160-250-000-000 4,047.97
32-200-251-000-000 4,047.98
Total : 8,095.95
69119 3/26/2013 010773 KELLAR SWEEPING INC.7482 FEBRUARY STREET SWEEPING SVCS
16-900-254-000-000 4,200.00
Total : 4,200.00
69120 3/26/2013 010771 LASER TEC 109735 Toner Cartridge-EOC
10-808-210-000-000 86.40
Total : 86.40
69121 3/26/2013 011268 LEAL, TRACEY 03072013 Mileage Reimbursement-Leal 2/16/13
09-440-271-000-000 74.58
Total : 74.58
69122 3/26/2013 004788 MUNIMETRIX INC.1301005 IMAGE FLOW LITE SUPP
10-125-250-000-000 499.00
Total : 499.00
69123 3/26/2013 005400 OFFICE DEPOT 643991351001 EOC Office Supplies
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6
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Page:vchlist
Bank code :bofa
Voucher Date Vendor Invoice Description/Account Amount
69123 3/26/2013 (Continued)005400 OFFICE DEPOT
10-808-210-000-000 22.71
643991508001 EOC Office Supplies
10-808-210-000-000 32.32
647938989001 Office Supplies
10-140-210-000-000 6.78
10-410-701-011-000 34.34
Total : 96.15
69124 3/26/2013 005586 PETTY CASH 03142013 Replenish C.Care Petty Cash
09-440-220-000-000 9.87
09-440-221-000-000 44.76
09-440-223-000-000 12.00
09-440-228-000-000 96.78
Total : 163.41
69125 3/26/2013 005688 PROTECTION ONE 31891344 4TH QTR ALARM MONITORING
10-195-247-000-000 140.39
Total : 140.39
69126 3/26/2013 010171 SIEMENS INDUSTRY INC 400096552 FEB TRAFFIC SIGNAL & QUIKNET MAINT
16-510-255-000-000 1,163.36
400097759 FEBRUARY RESPONSE CALL OUTS
16-510-255-000-000 2,774.87
Total : 3,938.23
69127 3/26/2013 006341 ROSENOW SPEVACEK GROUP INC.0028897 Successor Agency Cash Flow Analysis
32-200-250-000-000 1,830.00
Total : 1,830.00
69128 3/26/2013 006510 S.B. COUNTY INFORMATION 14578 FEBRUARY PAGER ACCESS
10-175-240-000-000 9.00
Total : 9.00
69129 3/26/2013 011071 STANCKIEWITZ, W.March 2013 March Health Ins Reim-Stanckiewitz
10-110-142-000-000 453.35
Total : 453.35
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Page:vchlist
Bank code :bofa
Voucher Date Vendor Invoice Description/Account Amount
69130 3/26/2013 011110 TIME WARNER CABLE 844840...7245 MAR/APR SR. CNTR. CABLE & INTERNET SVCS
10-805-238-000-000 130.18
Total : 130.18
69131 3/26/2013 011253 TLMA ADMINSTRATION TL0000009502 FEBRUARY SFL COSTS
16-510-255-000-000 117.25
Total : 117.25
69132 3/26/2013 011243 TRAFFIC MANAGEMENT, INC.152405 Child Care Signs
09-440-245-000-000 21.60
Total : 21.60
69133 3/26/2013 007034 TRANSPORTATION ENGINEERING 1263 JANUARY TRAFFIC ENG SVCS
10-175-250-000-000 610.30
Total : 610.30
69134 3/26/2013 007220 UNDERGROUND SERVICE ALERT 220130290 MARCH DIG ALERT TICKETS
16-900-220-000-000 57.00
Total : 57.00
69135 3/26/2013 001038 VERIZON WIRELESS-LA 9700392385 FEB/MAR CELL PHONE SRVS-CDD DIRECTOR
10-175-235-000-000 111.23
Total : 111.23
69136 3/26/2013 007854 WESTERN EXTERMINATORS CO 1011579 FEBRUARY PEST CONTROL SERVICES
10-195-245-000-000 95.00
10-805-245-000-000 36.50
Total : 131.50
69137 3/26/2013 007920 WILLDAN 002-13126 Feb PLANCHECK/INSPECTION SVCS
10-172-250-000-000 2,550.00
Total : 2,550.00
69138 3/26/2013 007987 XEROX CORPORATION 065934379 AUG-DEC WC7556P XEROX COPIER LEASE
10-190-700-000-000 1,348.31
065963134 AUG-DEC WC7556P COLOR COPIES
10-190-212-000-000 202.80
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8
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Bank code :bofa
Voucher Date Vendor Invoice Description/Account Amount
69138 3/26/2013 (Continued)007987 XEROX CORPORATION
066340952 JAN WC7556P XEROX LEASE
10-190-700-000-000 287.54
066809007 FEBRUARY WC5755A XEROX COPIER LEASE
10-190-700-000-000 305.98
Total : 2,144.63
Bank total : 173,901.32 50 Vouchers for bank code :bofa
173,901.32Total vouchers :Vouchers in this report 50
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AGENDA REPORT
MEETING DATE:March 26, 2013 Council Item
TITLE:Approval of Amendment No. 1, Professional Service
Agreement for Animal Control Services with the City of San
Bernardino.
PRESENTED BY:Richard Shields, Community Development Director
RECOMMENDATION:1.Approve Amendment No 1, to the existing
Professional Service Agreement, substantially the form as
attached and authorize the City Manager to sign the
Amendment.
2. Appropriate $4,400 to Account No. 10-187-256, from
the General Fund for the remaining months of fiscal year
2012-2013.
BACKGROUND:
The City of San Bernardino currently provides animal control services to Grand Terrace
for $104,184 per year through a Professional Service Agreement. The Professional
Services Agreement is effective April 5, 2010 through April 1, 2013. The current
Agreement may be extended up to two years at the discretion of the City Manager and
the acceptance of the City of San Bernardino.
DISCUSSION:
City staff and representatives from the City of San Bernardino met to discuss extending
the current Agreement for one year. The City of San Bernardino proposed extending
the Agreement with an increase in service fees to cover their increase in costs to
provide the service. The proposed increase is approximately $17,445 above the
agreement we currently have in place for the entire year.
City Staff explained that the City has a fixed budgeted amount for animal services and
suggested a possible reduction in the scope of service to match the budgeted amount.
Staff was advised that San Bernardino’s administration is not in favor of decreasing the
scope of service and explained that decreasing the scope of service will only negatively
affect the City of San Bernardino. The current Agreement was calculated three years
ago, and unfortunately the new rates for services have increased.
City Staff also contacted the City of Moreno Valley,Loma Linda, County of San
Bernardino and the County of Riverside. The City of Moreno Valley did not submit a
proposal for consideration. The City of Loma Linda maybe creating a position for an
animal control officer however at this time they have not. The County of San
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Bernardino was contacted and declined to submit a proposal due to maximum capacity
levels at their animal shelter.
The County of Riverside submitted a proposal with four options for animal control
services. The options are:
1.5 days per week/4 hours per day -estimated total $113,099
2.5 days per week/8hours per day -estimated total $176,612
3.4 days per week/9hours per day -estimated total $203,090
4.4 days per week/6 hours per day -estimated total $151,922
Currently, The City of San Bernardino Animal Control is providing 24-7 on-call animal
control services and will continue to provide this service with Amendment No. 1. If the
City was to change to the lower cost submitted by Riverside County ($113,099) we
would be reducing animal control services and our Citizens would be required to obtain
yearly licensing from Riverside County rather than the City.
Staff will continue to look at outside agencies to provide animal services to the City.
Based on staff’s evaluation of the proposals, the City of San Bernardino is the least
expensive for the services provided and therefore a recommendation is being made to
extend the existing Professional Services Agreement to March 31, 2014 at the annual
cost of $121,629.
FISCAL IMPACT:
The fiscal year 2012-2013, Code Enforcement Professional Service account for animal
control services has an adopted budget of $104,200, Account Number (10-187-256).
The additional appropriation of $4,400 will cover the increased cost of Amendment
No.1, from April through June 2013. Fiscal year 2013-2014 animal control service
contract cost has been included in the fiscal year 2013-2014 proposed operating
budget.
Appropriation (Fiscal Year 2012-2013)
Fund Cost Center Approved
Budget
Proposed
Increase
Revised
Budget
10 187-256 $104,200 $4,400 $108,600
ATTACHMENTS:
·Animal cntrl cnt 2010
·AC Amendment No.1
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APPROVALS:
Richard Shields Completed 03/21/2013 10:03 AM
Finance Completed 03/21/2013 1:11 PM
City Attorney Completed 03/21/2013 1:25 PM
Community Development Completed 03/21/2013 1:27 PM
City Manager Completed 03/21/2013 1:30 PM
City Council Pending
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PROFESSIONAL SERVICES AGREEMENT
City of San Bernardino
Animal Control and Housing Services
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered
into this 5th day of April, 2010, ("Effective Date") by and between the CITY OF GRAND
TERRACE ("City"), a public entity, and the CITY OF SAN BERNARDINO, a public entity
("Service Provider").
1.Scope of Services. City agrees to retain and does hereby retain Service Provider and
Service Provider agrees to provide the services more particularly described in Exhibit "1",
"Scope of Services and Fees", attached hereto and incorporated herein by reference, in
conjunction with Animal Control and Housing Services ("Services").
2.Term. This Agreement shall be effective on the date first written above unless
otherwise provided in Exhibit "1" and the Agreement shall remain in effect until April 1, 2013,
unless otherwise terminated pursuant to the provisions herein. This Agreement may be extended
up to two years at the discretion of the City Manager and the acquiescence of Service Provider.
3.Compensation/Payment. Service Provider shall perform the Services under this
Agreement for fees not to exceed $104,184.00 annually, payable monthly, in accordance with the
terms set forth in Exhibit "A". Said payment shall be made in accordance with the City's usual
accounting procedures upon receipt and approval of an invoice setting forth the services
performed. The invoices shall be delivered to the City at the address set forth in Section 4
hereof.
4.Notices. Any notices required to be given hereunder shall be in writing and shall
either be personally served or mailed first class, postage paid. Any notice given by mail shall be
deemed given when deposited in the United States Mail, first class postage prepaid, addressed to
the party to be served as follows:
To City:
City of Grand Terrace
City Clerk
22795 Barton Road
Grand Terrace, California 92313
To Service Provider:
City of San Bernardino
Attn: Sue Hoak, Manager, Animal Control
300 North "D" Street
San Bernardino, California 92418
5.Prevailing Wage. Service Provider shall abide by all applicable labor laws.
6.Contract Administration. A designee of the City will be appointed to administer
this Agreement on behalf of the City and shall be referred to herein as Contract Administrator.
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7.Standard of Performance. While performing the Services, Service Provider shall
exercise the reasonable professional care and skill customarily exercised by reputable members
of Service Provider's profession practicing in the Metropolitan Southern California Area, and
shall use reasonable diligence and best judgment while exercising its professional skill and
expertise.
8.Personnel. Service Provider shall furnish all personnel necessary to perform the
Services and shall be responsible for their performance and compensation. Service Provider
recognizes that the qualifications and experience of the personnel to be used are vital to
professional and timely completion of the Services.
9.Assignment and Subcontracting. Neither party shall transfer any right, interest, or
obligation in or under this Agreement to any other entity without prior written consent of the
other party. In any event, no assignment shall be made unless the assignee expressly assumes the
obligations of assignor under this Agreement, in a writing satisfactory to the parties. Service
Provider shall not subcontract any portion of the work required by this Agreement without prior
written approval by the City's Contract Administrator. Subcontracts, if any, shall contain a
provision making them subject to all provisions stipulated in this Agreement, including without
limitation, the insurance obligations set forth in Section 12. Service Provider acknowledges that
any transfer of rights may require City Manager and/or City Council approval.
10.Independent Contractor. In the performance of this Agreement, Service Provider,
and Service Provider's employees, subcontractors and agents, shall act in an independent
capacity as independent contractors, and not as officers or employees of the City of Grand
Terrace. Service Provider acknowledges and agrees that City has no obligation to pay or
withhold state or federal taxes or to provide workers' compensation or unemployment insurance
to Service Provider, or to Service Provider's employees, subcontractors and agents. Service
Provider, as an independent contractor, shall be responsible for any and all taxes that apply to
Service Provider as an employer.
11.Indemnification.
Service Provider agrees and promises to indemnify, defend and hold harmless City, its
officers, elected officials, employees and agents, from and against all actions, causes of action,
claims, demands, lawsuits, costs and expenses and liability for damages to persons or property
that may be asserted or claimed by any person, firm, entity, corporation, political subdivision, or
other organizations arising out of, or in connection with, the performance of this Agreement,
excluding such actions, claims demands, lawsuits and liability for damages to persons or
property arising from gross or willful misconduct of City, its officers, employees or agents. Said
sums shall include, in the event of legal action, court costs, expenses of litigation, and reasonable
attorney's fees. The costs, salary and expenses of any retained counsel and/or the City Attorney
and members of his/her office shall be considered as "attorney fees" for the purpose of this
paragraph.
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City agrees and promises to indemnify, defend and hold harmless Service Provider, its
officers, elected officials, employees and agents, from and against all actions, causes of action,
claims, demands, lawsuits, costs and expenses and liability for damages to persons or property
that may be asserted or claimed by any person, firm, entity, corporation, political subdivision, or
other organizations arising out of, or in connection with, the performance of this Agreement,
excluding such actions, claims demands, lawsuits and liability for damages to persons or
property arising from gross or willful misconduct of Service Provider, its officers, employees or
agents. Said sums shall include, in the event of legal action, court costs, expenses of litigation,
and reasonable attorney's fees. The costs, salary and expenses of any retained counsel and/or the
City Attorney and members of his/her office shall be considered as "attorney fees" for the
purpose of this paragraph.
12. Insurance.
12.1 General Provisions. Prior to the City's execution of this Agreement, Service
Provider shall provide satisfactory evidence of, and shall thereafter maintain during the term of
this Agreement, such insurance policies and coverages in the types, limits, forms and ratings
required herein. The rating and required insurance policies and coverages may be modified in
writing by the City's Risk Manager or City Attorney, or a designee, unless such modification is
prohibited by law.
12.1.1 Limitations. These minimum amounts of coverage shall not constitute any
limitation or cap on Service Provider's indemnification obligations under Section 11 hereof.
12.1.2 Ratings. Any insurance policy or coverage provided by Service Provider or
subcontractors as required by this Agreement shall be deemed inadequate and a material breach
of this Agreement, unless such policy or coverage is issued by insurance companies authorized
to transact insurance business in the State of California with a policy holder's rating of B+ or
higher and a Financial Class of VII or higher.
12.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior
written notification of intended cancellation has been given to City by certified or registered
mail, postage prepaid.
12.1.4 Adequacy. The City, its officers, employees and agents make no representation
that the types or limits of insurance specified to be carried by Service Provider pursuant to this
Agreement are adequate to protect Service Provider. If Service Provider believes that any
required insurance coverage is inadequate, Service Provider will obtain such additional insurance
coverage as Service Provider deems adequate, at Service Provider's sole expense.
12.2 Workers' Compensation Insurance: By executing this Agreement, Service
Provider certifies that Service Provider is aware of and will comply with Section 3700 of the
Labor Code of the State of California requiring every employer to be insured against liability for
workers' compensation, or to undertake self-insurance before commencing any of the work.
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Service Provider shall carry the insurance or provide for self-insurance required by California
law to protect said Service Provider from claims under the Workers' Compensation Act. Prior to
City's execution of this Agreement, Service Provider shall file with City either (1) a certificate of
insurance showing that such insurance is in effect, or that Service Provider is self-insured for
such coverage, or (2) a certified statement that Service Provider has no employees, and
acknowledging that if Service Provider does employ any person, the necessary certificate of
insurance will immediately be filed with City. Any certificate filed with City shall provide that
City will be given ten (10) days prior written notice before modification or cancellation thereof.
12.3 Automobile Insurance. Prior to City's execution of this Agreement, Service
Provider shall obtain, and shall thereafter maintain during the term of this Agreement,
automobile liability insurance as required to insure Service Provider against damages for
personal injury, including accidental death, as well as from claims for property damage, which
may arise from or which may concern operations by anyone directly or indirectly employed by,
connected with, or acting for or on behalf of Service Provider. The City, and its officers,
employees and agents, shall be named as additional insureds under the Service Provider's
insurance policies.
12.3.1 Service Provider's automobile liability policy shall cover both bodily injury and
property damage in an amount not less than $500,000 per occurrence and an aggregate limit of
not less than $1,000,000. All of Service Provider's automobile and/or commercial general
liability insurance policies shall cover all vehicles used in connection with Service Provider's
performance of this Agreement, which vehicles shall include, but are not limited to, Service
Provider owned vehicles, Service Provider leased vehicles, Service Provider's employee
vehicles, non-Service Provider owned vehicles and hired vehicles.
12.3.2 Prior to City's execution of this Agreement, copies of insurance policies or
original certificates and additional insured endorsements evidencing the coverage required by
this Agreement, for automobile liability insurance, shall be filed with the City and shall include
the City and its officers, employees and agents, as additional insureds. Said policies shall be in
the usual form of commercial general and automobile liability insurance policies, but shall
include the following provisions:
It is agreed that the City of Grand Terrace and its officers, employees and agents,
are added as additional insureds under this policy, solely for work done by and on
behalf of the named insured for the City of Grand Terrace.
12.4 Errors and Omissions Insurance. Prior to City's execution of this Agreement,
Service Provider shall obtain, and shall thereafter maintain during the term of this Agreement,
errors and omissions professional liability insurance in the minimum amount of $1,000,000 to
protect the City from claims resulting from the Service Provider's activities.
12.5 Subcontractors' Insurance. Service Provider shall require all of its subcontractors
to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss, that may
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be caused by the subcontractors' scope of work and activities provided in furtherance of this
Agreement, including, but without limitation, the following coverages: Workers Compensation
(except for a sole proprietor), Commercial General Liability, and Automobile liability. Upon
City's request, Service Provider shall provide the City with satisfactory evidence that
Subcontractors have obtained insurance policies and coverages required by this section.
12.6 Certificate of Self-Insurance. In lieu of the foregoing policy(ies) of insurance,
Service Provider may file a Certificate of Self-insurance with City to satisfy the insurance
requirements under this Agreement.
13.Business Tax. Service Provider is a municipal government and exempt from the
City's Business Tax.
14.Time of Essence. Time is of the essence for each and every provision of this Agreement.
15.City's Right to Employ Other Service Providers. City reserves the right to
employ other Service Providers in connection with the Services .
16.Accounting Records. Service Provider shall maintain complete and accurate
records with respect to costs incurred under this Agreement. All such records shall be clearly
identifiable. Service Provider shall allow a representative of City during normal business hours
and upon reasonable notice to examine, audit, and make transcripts or copies of such records and
any other documents created pursuant to this Agreement. Service Provider shall allow inspection
of all work, data, documents, proceedings, and activities related to the Agreement for a period of
three (3) years from the date of final payment under this Agreement.
17.Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings,
descriptions, computer program data, input record data, written information, and other materials
either created by or provided to Service Provider in connection with the performance of this
Agreement shall be held confidential by Service Provider, except as otherwise directed by City's
Contract Administrator, or as provided by law. Nothing furnished to Service Provider which is
otherwise known to the Service Provider or is generally known, or has become known, to the
related industry shall be deemed confidential. Service Provider shall not use City's name or
insignia, photographs of the Services, or any publicity pertaining to the Services in any
magazine, trade paper, newspaper, television or radio production, website, or other similar
medium without the prior written consent of the City.
18.Ownership of Documents. All contracts and invoices prepared under this
Agreement by Service Provider shall be and remain the property of City upon City's
compensation to Service Provider for its services as herein provided. Service Provider shall not
release to others information furnished by City without prior express written approval of City
except as provided by law.
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19.Conflict of Interest. Service Provider warrants that if Service Provider has any real
property, business interests or income interests that will be affected by this project it will notify
City, or, alternatively, that Service Provider will file with the City an affidavit disclosing any
such interest.
20.Solicitation. Service Provider warrants that Service Provider has not employed or
retained any person or City to solicit or secure this Agreement, nor has it entered into any
agreement or understanding for a commission, percentage, brokerage, or contingent fee to be
paid to secure this Agreement. For breach of this warranty, City shall have the right to terminate
this Agreement without liability and pay Service Provider only for the value of work Service
Provider has actually performed, or, in its sole discretion, to deduct from the Agreement price or
otherwise recover from Service Provider the full amount of such commission, percentage,
brokerage or commission fee. The remedies specified in this section shall be in addition to and
not in lieu of those remedies otherwise specified in this Agreement.
21.General Compliance with Laws. Service Provider shall keep fully informed of
federal, state and local laws and ordinances and regulations which in any manner affect those
employed by Service Provider, or in any way affect the performance of services by Service
Provider pursuant to this Agreement. Service Provider shall at all times observe and comply with
all such laws, ordinances and regulations, and shall be solely responsible for any failure to
comply with all applicable laws, ordinances and regulations.
22.Amendments. This Agreement may be modified or amended only by a written
Agreement and/or change order executed by the Service Provider and City.
23.Termination. City and the Service Provider, by notifying the other party in writing,
shall have the right to terminate any or all of Service Provider's services and work covered by
this Agreement at any time. In the event of such termination, Service Provider may submit
Service Provider's final written statement of the amount of Service Provider's services as of the
date of such termination based upon the ratio that the work completed bears to the total work
required to make the report complete, subject to the City's rights under Sections 15 and 24
hereof. In ascertaining the work actually rendered through the termination date, City shall
consider completed work, work in progress and complete and incomplete reports and other
documents only after delivered to City.
23.1 Other than as stated below, City and Service Provider shall provide the other party
thirty (30) days prior written notice prior to termination.
23.2 City may terminate this Agreement upon fifteen (15) days written notice to Service
Provider, in the event:
23.2.1 Service Provider substantially fails to perform or materially breaches the
Agreement; or
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23.2.2 City decides to abandon or postpone the Services.
24.Successors and Assigns. This Agreement shall be binding upon City and its
successors and assigns, and upon Service Provider and its permitted successors and assigns, and
shall not be assigned by Service Provider, either in whole or in part, except as otherwise
provided in paragraph 9 of this Agreement.
25.Venue and Attorneys' Fees. Any action at law or in equity brought by either of the
parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall
be tried in a court of competent jurisdiction in the County of San Bernardino, State of California,
or, if applicable, the United States District Court, Central District of California, and the parties
hereby waive all provisions of law providing for a change of venue in such proceedings to any
other county. In the event either party hereto shall bring suit to enforce any term of this
Agreement or to recover any damages for and on account of the breach of any term or condition
of this Agreement, it is mutually agreed that the prevailing party in such action shall recover all
costs thereof, including reasonable attorneys' fees, to be set by the court in such action.
26.Nondiscrimination. During Service Provider's performance of this Agreement,
Service Provider shall not discriminate on the grounds of race, religious creed, color, national
origin, ancestry, age, physical disability, mental disability, medical condition, including the
medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related
thereto, marital status, sex, or sexual orientation, in the selection and retention of employees and
subcontractors and the procurement of materials and equipment, except as provided in Section
12940 of the California Government Code. Further, Service Provider agrees to conform to the
requirements of the Americans with Disabilities Act in the performance of this Agreement.
27.Severability. Each provision, term, condition, covenant and/or restriction, in whole
and in part, of this Agreement shall be considered severable. In the event any provision, term,
condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared
invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed
from this Agreement and shall not affect any other provision, term, condition, covenant and/or
restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect.
28.Authority: The individuals executing this Agreement and the instruments referenced
herein on behalf of Service Provider each represent and warrant that they have the legal power,
right and actual authority to bind Service Provider to the terms and conditions hereof and thereof.
29.Entire Agreement: This Agreement constitutes the final, complete, and exclusive
statement of the terms of the agreement between the parties pertaining to the subject matter of
this Agreement, and supersedes all prior and contemporaneous understandings or agreements of
the parties. Neither party has been induced to enter into this Agreement by, and neither party is
relying on, any representation or warranty outside those expressly set forth in this Agreement.
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CITY OF GRAND TERRACE
A Public Entit
Ci y Ma/lager
APPROVED AS TO FORM:
Bye
City Attorney — City Attorne y' — San Bernardino
21-4
CITY OF AN BERNARDINO
Servic= ovid r
By:
VED AS TO FOR APP
ity Manager
30.Interpretation. City and Service Provider acknowledge and agree that this
Agreement is the product of mutual arms-length negotiations and accordingly, the rule of
construction, which provides that the ambiguities in a document shall be construed against the
drafter of that document, shall have no application to the interpretation and enforcement of this
Agreement.
30.1 Titles and captions are for convenience of reference only and do not define,
describe or limit the scope or the intent of the Agreement or any of its terms. Reference to
section numbers are to sections in the Agreement unless expressly stated otherwise.
30.2 This Agreement shall be governed by and construed in accordance with the laws
of the State of California in effect at the time of the execution of this Agreement.
30.3 In the event of a conflict between the body of this Agreement and Exhibit "1" hereto, the terms contained in Exhibit "1" shall be controlling.
31.No Third Party Beneficiaries. The parties to this Agreement do not intend for
any third party to obtain a right by virtue of this Agreement.
32.Exhibits. The following exhibits attached hereto are incorporated herein to this
Agreement by this reference:
Exhibit "1" — Scope of Work, Schedule, and Fees
IN WITNESS WHEREOF City and Service Provider have caused this Agreement to be
duly executed the day and year first above written.
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EXHIBIT "1"
SCOPE OF SERVICES, SCHEDULE, AND FEES
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EXHIBIT 1
City of Grand Terrace
Scope of Services, Schedule and Fees
Animal Care and Control Program
1 City Ordinance
The City of San Bernardino ("San Bernardino") will provide a comprehensive animal care
and control program for the City of Grand Terrace ("Grand Terrace") under the
provisions of the Municipal Code of Grand Terrace which prescribes procedures and
standards for licensing, impounding, regulation and control of dogs, cats and other
domestic and wild animals. San Bernardino Animal Control Department and its officers
have the authority to enforce those codes relating to all matters of animal control
contained in the Municipal Code of Grand Terrace, including any codes contained in any
supplemental documents to Municipal Code of Grand Terrace related to zoning and
development code that also affect animals. Further, Grand Terrace will consult with San
Bernardino on any proposed new ordinance or ordinance change dealing with animal
control matters.
2.Term
The term of the Agreement shall be April 1, 2010 through April 1, 2013.
3.Consideration
Grand Terrace agrees to compensate San Bernardino $8,682.00 per month for services
and work products as defined in this exhibit for the period April 1, 2010 through April 1,
2013.
4.Impound, Care and Disposal of Dogs and other Domestic and Wild Animals
Subject to any exclusions, San Bernardino will operate an animal care and control
program for Grand Terrace consisting of the following activities: field services, and
shelter services. In the conduct of this program, San Bernardino will perform the
following specific functions:
(a)Enforce all provisions of Grand Terrace City Ordinances pertaining to animals, to
include issuing warning notices or citations as necessary. San Bernardino may
also file citations directly with the Court. The City Attorney for Grand Terrace will
process any legal action and appear in court, as necessary, on animal related
cases.
(b)Impound all animals caught at large and collect all impound fees assessed.
(c)Remove dead animals from the public right-of-way, except state freeways.
(d)Respond to requests for assistance in the trapping and removal of domestic
animals from public or private property during normal operating hours. San
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Bernardino will offer advice in setting a trap in any enclosed space and will
remove wild animals (not including rodents or insects) caught in a trap or found
inside any human dwelling. Animal Control employees shall not be required to
maintain on-premise surveillance unless in the opinion of the Director of Animal
Control or designee there is a direct, clear and present danger to human life.
San Bernardino will provide traps for nuisance animals upon request.
(e) Investigate reported animal bites and quarantine, as prescribed by law, all biting
animals and animals suspected to be rabid. San Bernardino shall take
appropriate steps consistent with the circumstances of each separate incident to
locate and impound the suspect animal or animals and or assist the complainant
and or injured party or parties to trap the suspected animal or animals.
Provide euthanasia services as required for animals held for the state-mandated
legal holding period if these animals are not reclaimed by their owners and are
deemed unsuitable or unavailable by San Bernardino for adoption. All
impounded animals will be scanned for microchips. Animals with identification,
licenses or microchips will be held up to ten (10) days and attempts will be made
to contact the owner.
Respond to every call for service either by animal control officer, letter or phone,
except for excluded items.
(h) Cats: San Bernardino will not be required to respond to calls of cats running at
large, confined stray cats or trapped cats. Traps for the purpose of capturing
cats shall be made available to the residents of Grand Terrace. Unless
exceptional circumstances exist, residents of Grand Terrace shall be responsible
for obtaining, monitoring and returning all traps used for this purpose.
All services available to San Bernardino residents for which there is a fee shall
be made available to Grand Terrace residents for the same fee.
(j) Grand Terrace residents may bring stray, un-owned animals to the San
Bernardino shelter at no charge to the resident.
5.Dog Licensing
Grand Terrace residents redeeming their dog(s) will be required to pay a license deposit
prior to the dog's release. All licensing deposits generated by Grand Terrace residents
will be accounted for in monthly accounting statements provided to Grand Terrace by
San Bernardino and remitted by San Bernardino to Grand Terrace on a monthly basis.
6.Animal Care Education and Information Program
San Bernardino will provide public educational/information programs to Grand Terrace
Schools, City employee groups, service groups and other organizations, upon request.
7.Veterinary Services Program
San Bernardino will provide private veterinary services for the care of injured and sick
animals that are impounded. The cost of this service is included in the contract price.
(f)
(g)
(i)
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8. Staffing Level and Hours of Service
(a) Field Services
San Bernardino will provide routine field services for Grand Terrace Monday
through Friday between 8:00 a.m. and 5:00 p.m. A more limited service is
provided on Saturdays, Sundays and Holidays. Calls to be considered routine
and to be handled during the normal course of the officer's shift and include:
•Confined strays
•Dead animals
•Stray dogs running at large
•Humane/Animal Cruelty investigations
•Animal bites
•Wildlife in human dwellings (not including rodents or insects)
•Miscellaneous calls such as pet shop investigations, sanitation complaints,
license checks, for-fee pick-ups, courtesy pick-ups, etc.
After hour emergency call-out service is provided daily from 5:00 p.m. to 8:00
a.m. Grand Terrace may contact animal control field personnel via emergency
pager, for after-hour service. A live after-hour answering service is available for
Grand Terrace residents.
(b)Shelter Hours and Telephone Line:
The San Bernardino shelter shall be open to the public Tuesday through
Saturday from 10:00 a.m. to 5:00 p.m. The shelter will be closed on Sundays,
Monday and holidays. The phone lines will be answered twenty-four hours per
day.
(c)Emergency After-Hours Procedures:
The reporting party (RP) will contact the Grand Terrace Police/Fire Dispatch, or
the City of San Bernardino Animal Control. If the dispatcher deems the call an
emergency (see criteria below) the dispatcher will page the on-call animal control
officer (ACO). The ACO will contact Grand Terrace Dispatch; obtain the RP's
name and phone number and follow-up with the RP for additional information.
The dispatcher will advise the RP, to remain by a phone for contact by the ACO.
Unless requested by Grand Terrace, it will not be necessary for the ACO to notify
the dispatcher of the disposition of the call. If the emergency response is an
agency assist request by Grand Terrace Police/Fire, the ACO will automatically
respond.
San Bernardino will provide a monthly listing of on-call animal control personnel.
San Bernardino will provide personnel to train Grand Terrace dispatchers in on-
call procedures, as requested.
Criteria for Emergency Call-Out
•Injured stray animals
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¨Loose "aggressive" animals.
¨Animal bites/attacks.
¨Loose livestock if a threat to public safety
¨Other dangerous or Poisonous animal situations posing public safety.
¨Agency Assists for Fire, Police, Sheriff, etc.
Emergency Calls will be responded to within thirty (30) minutes of receipt by San
Bernardino when practicable. If the dispatcher determines that the call does not
meet emergency call-out criteria, the RP will be instructed to contact animal
control during regular business hours. San Bernardino personnel will not
respond on an emergency basis to loose animals, dead animals, wildlife,
confined strays and sick or injured animals.
9.Inspection
Designated personnel from Grand Terrace may, at any time during normal business
hours, inspect the office, shelter, vehicles and other facilities connected to servicing this
Agreement.
10.Reclaimed Animals
Animals reclaimed by their owners will be charged redemption fees in accordance with
City of San Bernardino resolutions and applicable state laws. San Bernardino will retain
such fees.
10. Exclusions
San Bernardino will not be required to:
•Conduct rabies vaccination and license clinics.
•Provide dog license canvassers.
•Administer and sell Grand Terrace dog licenses.
•Handle animal noise complaints.
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AGENDA REPORT
MEETING DATE:March 26, 2013 Council & Successor Agency Item
TITLE:Resolutions and Letter in Support of Assembly Bill 981
PRESENTED BY:Betsy Adams, City Manager
RECOMMENDATION:1. Adopt a City Council Resolution in support of Assembly
Bill 981 to allow successor agencies to use tax allocation
bonds issued in 2011.
2. Adopt a Successor Agency Resolution in support of
Assembly Bill 981 to allow successor agencies to use tax
allocation bonds issued in 2011.
3. Authorize the Mayor to sign a letter in support of
Assembly Bill 981 to the California State Assembly Local
Government.
4. Authorize the Mayor to sign a letter in support of
Assembly Bill 981 to the California State Assembly Housing
and Community Development Committee.
5. Direct staff to send copies of the adopted resolutions and
authorized letters to the committee membership of the two
committees to which Assembly Bill 981 has been assigned,
other key legislators, the League of California Cities, and
other community partners.
BACKGROUND:
On February 1, 2012, pursuant to Assembly Bill x1 26 (AB x1 26) all redevelopment
agencies in the State were dissolved and successor agencies were established to wind
down their operations and obligations. On June 27, 2012, Assembly Bill 1484 (AB
1484), a clean-up bill to the redevelopment dissolution legislation was enacted by the
State Legislature. During the first half of 2011, prior to the dissolution of the former
redevelopment agencies, approximately 50 agencies legally issued bonds. Of those
agencies, approximately 37 successor agencies are now unable to use the proceeds
from those bonds.
DISCUSSION:
AB 1484 granted successor agencies the ability to use bond proceeds issued prior to
January 1, 2011 which are not needed to satisfy enforceable obligations. These bond
proceeds must be spent by a successor agency in a manner consistent with the
originals bond covenants. While AB 1484 allowed successor agencies the ability to use
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pre-2011 bond proceeds, it was silent on the use of 2011 bond proceeds (bonds issued
between January 1, 2011 and June 28, 2011).
The State Department of Finance (DOF) has asserted that the vast majority of the
bonds issued in 2011 must be defeased and the proceeds cannot be spent on the
project for which the bonds were issued. It is estimated that over 90% of these bonds
cannot be defeased for ten years due to significant early prepayment penalties. During
this time period, nearly $1 billion would be spent on debt services payments for these
bonds.
It is estimated that approximately $650 million in 2011 bond proceeds cannot be spent
due to the DOF’s interpretation of AB 1484. These bonds were issued to finance a
variety of public works projects such as infrastructure construction and repair, new
public facilities and affordable housing.
FISCAL IMPACT:
For Grand Terrace, the passage of Assembly Bill 981 (AB 981) would allow the
Successor Agency to complete the second half of the design phase for the
City Wide Storm Water Master Plan and related improvement along Michigan Street.
During the Recognized Obligation Payment Schedule (ROPS) period for January 1,
2013 through June 30, 2013, the DOF denied the City’s enforceable obligation for this
design work while having allowed the first half of the design to proceed in the prior
ROPS time period (July 1, 2012 through December 31, 2012).
If the State Legislature passes AB 981 and it is not vetoed by the Governor, the
Successor Agency would use the 2011 Tax Allocation Bonds proceeds to complete the
Citywide Storm Water Master Plan and related Michigan Street improvements. Any
remaining proceeds after the completion of this project could be used two any other
public improvement project specifically listed in the bond covenants.
ATTACHMENTS:
·GT CC Reso Supporting AB 981
·GT SA Reso Supporting AB 981
·GT CC AB 981 Support Letter_Assembly Local Gov Com
·GT CC AB 981 Support Letter_Assembly Housing & Community Devel Com
·AB 981 FACTSHEET 3 20 13
APPROVALS:
Betsy Adams Completed 03/14/2013 6:28 PM
Finance Completed 03/18/2013 9:58 AM
City Attorney Completed 03/19/2013 2:01 PM
City Manager Completed 03/19/2013 4:20 PM
City Council Pending
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RESOLUTION 2013 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE IN SUPPORT OF ASSEMBLY BILL 981, RELATING TO THE
USE OF BOND PROCEEDS ISSUED IN 2011 BY FORMER
REDEVELOPMENT AGENCIES.
WHEREAS,the State Legislature dissolved redevelopment agencies by enacting
Assembly Bill Nos. 1x 26 and 1484, relating to redevelopment dissolution, (“Dissolution
Statutes”) which became effective on June 28, 2011 and June 27, 2012, respectively;
WHEREAS,the Community Redevelopment Agency of the City of Grand Terrace
(“former-RDA”) issued bonds for the purpose of redevelopment on June 17, 2011
pursuant to existing law at the time of issuance (“2011 Bonds”);
WHEREAS,the covenants relating to the 2011 Bonds required the bond proceeds
received therefrom to be used for the specific purpose of any or all of the following
public infrastructure projects:
Southwest area: infrastructure study and design
Southwest area: infrastructure construction
Barton Road:infrastructure improvements
Michigan Street improvements: design and right-of-way acquisition
Michigan Street improvements: construction
Union Pacific/Barton Road bridge:construction
Van Buren, Pico, and Main Streets:storm drain and street rehabilitation
Mt. Vernon Avenue: slope stabilization
Vista Grande Park:construction
WHEREAS,the California Department of Finance (“DOF”) has incorrectly interpreted
the Dissolution Statutes to prohibit the use of those proceeds derived from the 2011
Bonds for the purposes for which they were issued and has improperly directed the
Successor Agency for the Grand Terrace Redevelopment Agency (“Successor Agency”)
to defease or repurchase the 2011 Bonds on the open market (“Directive”);
WHEREAS,even if the DOF’s interpretation did not expressly conflict with Dissolution
Statutes, the DOF has not provided any meaningful guidance on how to adequately
follow the Directive;
WHEREAS,compliance with the Directive could result in the default by the Successor
Agency on its legal obligations under the 2011 Bonds;
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WHEREAS,complying with the Directive will result in harm to holders of the bonds, and
particularly those who purchased tax exempt bonds, because compliance with the
Directive will cause interest payments to become taxable to bondholders;
WHEREAS,the City of Grand Terrace (“City”) and Successor Agency disagree with the
Directive and continues to assert that the use of proceeds derived from the 2011 Bonds
is permissible under current law;
WHEREAS,the City and Successor Agency therefore continues to assert that the 2011
Bonds issued prior to June 28, 2011 are enforceable obligations, as defined by the
Dissolution Statutes, and the proceeds derived therefrom must be used pursuant to the
2011 Bond covenants;
WHEREAS,the City Council believes that Assembly Bill Number 981 could alleviate
concerns of downgrading of the State’s and local municipalities’ bond credit ratings by
various bond rating companies;
WHEREAS,the Successor Agency defaulting on the 2011 Bonds is not beneficial to the
Taxing Entities, which include, but is not limited to, the City of Grand Terrace and other
local agencies, as defined under the Dissolution Statutes;
WHEREAS,the Taxing Entities will not benefit in any way by the Directive or by the
defeasance or repurchase of the 2011 bonds because interest payments on those
bonds will continue to accrue for many years before defeasance can occur and will far
exceed any interest earnings on unused proceeds;
WHEREAS,allowing the bonds to be expended for the purposes for which they were
issued will benefit all the Taxing Entities by creating or improving infrastructure,
affordable housing, and other essential projects that will in turn increase property tax
values and revenues available to all Taxing Entities;
WHEREAS,the expenditure of the proceeds derived from the 2011 Bonds for the
purposes for which they were issued is beneficial to the community that formed the
former-RDA, the Taxing Entities as defined under the Dissolution Statutes, and to the
State of California as a whole;
WHEREAS,the City Council supports Assembly Bill No. 981 (“AB 981”) because it
would clarify the Legislature’s intent to allow the Successor Agency to use the proceeds
derived from the 2011 Bonds for the purposes for which they were issued and resolve
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the dispute between the DOF and Successor Agency regarding the 2011 Bonds to the
benefit of the State and the Taxing Entities;
WHEREAS,the City Council desires to express its support of AB 981 and urge its
passage by the State Legislature and approval by the Governor.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS
FOLLOWS:
Section 1.The City Council hereby finds that all of the above recitals are true and
correct and are incorporated herein by reference.
Section 2.The City Council hereby determines and resolves to support and
encourage the passage of AB 981, which would operate to clarify the Legislature’s
intent to allow the Successor Agency to expend those proceeds derived from the 2011
Bonds for the purpose they were issued, under the Dissolution Statutes.
Section 3.The City Council hereby determines and resolves to support and
encourage the Governor to sign AB 981 into law.
Section 4.The City Council hereby authorizes the City Manager to take all actions
necessary and required to carry out this Resolution. This authorization includes, but is
not limited to, sending a letter in support of AB 981 to the State Legislature, its
members, and committees; sending a letter in support of AB 981 to the Governor;
contacting the relevant Taxing Entities for the purpose of seeking their support; and
contacting other affected successor agencies to coordinate efforts to support AB 981.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand
Terrace at a regular meeting held on the 26th day of March, 2013.
____________________________
Mayor of the City of Grand Terrace
and of the City Council thereof.
ATTEST:
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______________________________
City Clerk of the City of Grand Terrace
I TRACEY R. MARTINEZ, CITY CLERK of the City of Grand Terrace, do hereby certify
that the foregoing Resolution was introduced and adopted at a regular meeting of the
City Council of the City of Grand Terrace held on the 26th day of March, 2013 by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________
Tracey R. Martinez, City Clerk
APPROVED AS TO FORM
______________________________
City Attorney
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RESOLUTION 2013 -
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER
GRAND TERRACE REDEVELOPMENT AGENCY IN SUPPORT OF
ASSEMBLY BILL 981, RELATING TO THE USE OF BOND PROCEEDS
ISSUED IN 2011 BY FORMER REDEVELOPMENT AGENCIES.
WHEREAS,the State Legislature dissolved redevelopment agencies by enacting
Assembly Bill Nos. 1x 26 and 1484, relating to redevelopment dissolution, (“Dissolution
Statutes”) which became effective on June 28, 2011 and June 27, 2012, respectively;
WHEREAS,the Community Redevelopment Agency of the City of Grand Terrace
(“former-RDA”) issued bonds for the purpose of redevelopment on June 17, 2011
pursuant to existing law at the time of issuance (“2011 Bonds”);
WHEREAS,the covenants relating to the 2011 Bonds required the bond proceeds
received therefrom to be used for the specific purpose of any or all of the following
public infrastructure projects:
Southwest area: infrastructure study and design
Southwest area: infrastructure construction
Barton Road:infrastructure improvements
Michigan Street improvements: design and right-of-way acquisition
Michigan Street improvements: construction
Union Pacific/Barton Road bridge:construction
Van Buren, Pico, and Main Streets:storm drain and street rehabilitation
Mt. Vernon Avenue: slope stabilization
Vista Grande Park:construction
WHEREAS,the California Department of Finance (“DOF”) has incorrectly interpreted
the Dissolution Statutes to prohibit the use of those proceeds derived from the 2011
Bonds for the purposes for which they were issued and has improperly directed the
Successor Agency for the Grand Terrace Redevelopment Agency (“Successor Agency”)
to defease or repurchase the 2011 Bonds on the open market (“Directive”);
WHEREAS,even if the DOF’s interpretation did not expressly conflict with Dissolution
Statutes, the DOF has not provided any meaningful guidance on how to adequately
follow the Directive;
WHEREAS,compliance with the Directive could result in the default by the Successor
Agency on its legal obligations under the 2011 Bonds;
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WHEREAS,complying with the Directive will result in harm to holders of the bonds, and
particularly those who purchased tax exempt bonds, because compliance with the
Directive will cause interest payments to become taxable to bondholders;
WHEREAS,the City of Grand Terrace (“City”) and Successor Agency disagree with the
Directive and continues to assert that the use of proceeds derived from the 2011 Bonds
is permissible under current law;
WHEREAS,the City and Successor Agency therefore continues to assert that the 2011
Bonds issued prior to June 28, 2011 are enforceable obligations, as defined by the
Dissolution Statutes, and the proceeds derived therefrom must be used pursuant to the
2011 Bond covenants;
WHEREAS,the Successor Agency believes that Assembly Bill Number 981 could
alleviate concerns of downgrading of the State’s and local municipalities’ bond credit
ratings by various bond rating companies;
WHEREAS,the Successor Agency defaulting on the 2011 Bonds is not beneficial to the
Taxing Entities, which include, but is not limited to, the City of Grand Terrace and other
local agencies, as defined under the Dissolution Statutes;
WHEREAS,the Taxing Entities will not benefit in any way by the Directive or by the
defeasance or repurchase of the 2011 bonds because interest payments on those
bonds will continue to accrue for many years before defeasance can occur and will far
exceed any interest earnings on unused proceeds;
WHEREAS,allowing the bonds to be expended for the purposes for which they were
issued will benefit all the Taxing Entities by creating or improving infrastructure,
affordable housing, and other essential projects that will in turn increase property tax
values and revenues available to all Taxing Entities;
WHEREAS,the expenditure of the proceeds derived from the 2011 Bonds for the
purposes for which they were issued is beneficial to the community that formed the
former-RDA, the Taxing Entities as defined under the Dissolution Statutes, and to the
State of California as a whole;
WHEREAS,the Successor Agency supports Assembly Bill No. 981 (“AB 981”) because
it would clarify the Legislature’s intent to allow the Successor Agency to use the
proceeds derived from the 2011 Bonds for the purposes for which they were issued and
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resolve the dispute between the DOF and Successor Agency regarding the 2011 Bonds
to the benefit of the State and the Taxing Entities;
WHEREAS,the Successor Agency desires to express its support of AB 981 and urge
its passage by the State Legislature and approval by the Governor.
NOW THEREFORE, BE IT RESOLVED THAT THE GRAND TERRACE CITY
COUNCIL, ACTING AS THE SUCCESSOR AGNECY,DOES RESOLVE,
DETERMINE, FIND AND ORDER AS FOLLOWS:
Section 1.The Successor Agency hereby finds that all of the above recitals are true
and correct and are incorporated herein by reference.
Section 2.The Successor Agency hereby determines and resolves to support and
encourage the passage of AB 981, which would operate to clarify the Legislature’s
intent to allow the Successor Agency to expend those proceeds derived from the 2011
Bonds for the purpose they were issued, under the Dissolution Statutes.
Section 3.The Successor Agency hereby determines and resolves to support and
encourage the Governor to sign AB 981 into law.
Section 4.The Successor Agency hereby authorizes the Executive Director to take
all actions necessary and required to carry out this Resolution. This authorization
includes, but is not limited to, sending a letter in support of AB 981 to the State
Legislature, its members, and committees; sending a letter in support of AB 981 to the
Governor; contacting the relevant Taxing Entities for the purpose of seeking their
support; and contacting other affected successor agencies to coordinate efforts to
support AB 981.
PASSED, APPROVED AND ADOPTED by the Successor Agency for the Grand
Terrace Redevelopment Agency at a regular meeting held on the 26th day of March,
2013.
____________________________
Chair of the Successor Agency for the
Community Redevelopment Agency of
the City of Grand Terrace
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ATTEST:
______________________________
Agency Secretary
I TRACEY R. MARTINEZ, AGENCY SECRETARY of the Successor Agency for the
Community Redevelopment Agency of the City of Grand Terrace, do hereby certify that
the foregoing Resolution was introduced and adopted at a regular meeting of the
Successor Agency Board of the Successor Agency for the Community Redevelopment
Agency of the City of Grand Terrace held on the 26th day of March, 2013 by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Tracey R. Martinez, Agency Secretary
APPROVED AS TO FORM
______________________________
Successor Agency Counsel
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March 26, 2013
Hon. Assembly Member Katcho Achadjian
Chair of the Local Government Committee
California State Assembly
P.O. Box 942849, Room 4098
Sacramento, CA 94249-0035
Subject: Support of Assembly Bill 981
Dear Assembly Member Achadjian:
On behalf of the City of Grand Terrace, I write to you to express the City Council’s support of
Assembly Bill No. 981 (“AB 981”). AB 981 would enable successor agencies throughout
California to comply with the requirements of bonds which were lawfully issued prior to
dissolution of the State’s redevelopment agencies. The elimination of redevelopment
agencies has put the State, cities, counties, and other local public agencies in a difficult
predicament and at risk for costly litigation while jobs are desperately needed. Between
January and June of 2011, bonds were legally issued for redevelopment and public works
purposes by a large number of cities. Thereafter, the State Legislature and Governor
eliminated redevelopment agencies (RDAs). The legislation created successor agencies
that are tasked with winding down the RDAs and transferring assets to taxing entities (e.g.,
school districts). In the meantime, these 2011 bond proceeds of lawfully issued 2011 Bonds
are not being used for the purposes for which they were issued, even though the
redevelopment dissolution bills made clear that bond proceeds were to be used for the
purposes for which they were issued. See Health and Safety Code sections 34171(d)(1)(A),
34177(c), and 34177(i). The projects—and resulting high paying construction jobs have
been halted and the bond funds sit idle. By putting these funds to work, jobs will be created
and will result in an increase in statewide economic activity. The following are some key
points on this issue:
·During the first half of 2011, prior to the dissolution of all redevelopment agencies,
approximately 50 agencies legally issued bonds.
·The California Department of Finance has asserted that the vast majority of these
bonds must be defeased and their proceeds not spent on any projects required by
their bond covenants, including projects that were already designed or otherwise
underway, in spite of contrary language in the dissolution bills.
·While California’s unemployment rate sits at approximately 9.8%; approximately
$650 million dollars of bond funds sit unused.
·These “unused funds” mean hundreds of construction projects have stalled and
thousands of construction workers sit waiting for high wage construction jobs.
·If these funds were put to work, they could generate jobs and additional State and
local tax revenues and substantially increase statewide economic activity.
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City of Grand Terrace
Letter of Support
AB 981
Page 2
·The Department of Finance has asserted that the bonds should be defeased,
however, many of these bonds cannot be defeased for 10 years or more.
Additionally, the Department of Finance has mandated that these funds be allowed
to unproductively sit until the 10 year or longer period has run.
·During this ten year time period over $1 billion will be spent on the interest payments
for these bonds, and the bond proceeds will continue to go unused.If the proceeds
from the bonds were used for construction projects, the projects would generate
enough money to pay the interest on the bonds.
·The vast majority of these bonds were issued for public works projects such as
infrastructure construction and repair, new public facilities, and affordable housing.
·Bondholders who purchased tax-exempt bonds (approximately 60% of the bonds in
question) for specific public works projects were promised tax-free returns.
·Pursuant to Federal Tax Law, tax-exempt bond proceeds must be used for their
intended purpose, or the bonds could be subject to losing their tax-exempt status.
This would deprive bondholders of the tax exemption they were promised.
·There are approximately 40 successor agencies (former redevelopment agencies)
holding these bond proceeds and they are located throughout the State.
·Passage of AB 981 could alleviate recent concerns of downgrading the State’s and
local municipalities’ bond credit ratings by private rating companies.
·The Department of Finance has ignored oversight board approvals for the use of
2011 bond proceeds for projects required to be constructed even though the
oversight board’s membership includes representatives of the affected taxing entities
whose interests the Department of Finance purports to represent.
·The use of these bond proceeds derived from 2011 Bonds would not have any effect
upon the taxing entities. In fact, they stand to benefit from the use of the proceeds
because of the potential increase in tax revenue received due to completion of the
projects and because the projects benefit the communities in which the taxing
entities operate.
·The use of these bond proceeds derived from the 2011 Bonds would be beneficial,
as determined by oversight boards, because it would increase tax revenue, create
jobs, provide affordable housing, and provide much needed public infrastructure.
AB 981 would address all of these issues. It would make clear the legislative intent that
successor agencies may utilize those bond proceeds for the purposes for which they were
issued after a successor agency has been issued a finding of completion by the Department
of Finance. This would free up approximately $650 million for jobs, economic development,
affordable housing, and community development at little to no cost to the State. The State
has nothing to lose and everything to win with AB 981. We urge your support of AB 981 and
ask for your commitment to ensure that AB 981 reaches the Governor’s desk.
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City of Grand Terrace
Letter of Support
AB 981
Page 3
Should you have any questions regarding this letter, please do not hesitate to contact me
at 909-430-2212 or via email at Walt@cityofgrandterrace.org.
Sincerely,
Walt Stanckiewitz
Mayor
encl: Resolutions in Support of AB 981
cc.California State Assembly Local Government Committee
8.B.c
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March 26, 2013
Hon. Assembly Member Norma J. Torres
Chair of the Local Government Committee
California State Assembly
P.O. Box 942849, Room 2179
Sacramento, CA 94249-0052
Subject: Support of Assembly Bill 981
Dear Assembly Member Torres:
On behalf of the City of Grand Terrace, I write to you to express the City Council’s support of
Assembly Bill No. 981 (“AB 981”). AB 981 would enable successor agencies throughout
California to comply with the requirements of bonds which were lawfully issued prior to
dissolution of the State’s redevelopment agencies. The elimination of redevelopment
agencies has put the State, cities, counties, and other local public agencies in a difficult
predicament and at risk for costly litigation while jobs are desperately needed. Between
January and June of 2011, bonds were legally issued for redevelopment and public works
purposes by a large number of cities. Thereafter, the State Legislature and Governor
eliminated redevelopment agencies (RDAs). The legislation created successor agencies
that are tasked with winding down the RDAs and transferring assets to taxing entities (e.g.,
school districts). In the meantime, these 2011 bond proceeds of lawfully issued 2011 Bonds
are not being used for the purposes for which they were issued, even though the
redevelopment dissolution bills made clear that bond proceeds were to be used for the
purposes for which they were issued. See Health and Safety Code sections 34171(d)(1)(A),
34177(c), and 34177(i). The projects—and resulting high paying construction jobs have
been halted and the bond funds sit idle. By putting these funds to work, jobs will be created
and will result in an increase in statewide economic activity. The following are some key
points on this issue:
·During the first half of 2011, prior to the dissolution of all redevelopment agencies,
approximately 50 agencies legally issued bonds.
·The California Department of Finance has asserted that the vast majority of these
bonds must be defeased and their proceeds not spent on any projects required by
their bond covenants, including projects that were already designed or otherwise
underway, in spite of contrary language in the dissolution bills.
·While California’s unemployment rate sits at approximately 9.8%; approximately
$650 million dollars of bond funds sit unused.
·These “unused funds” mean hundreds of construction projects have stalled and
thousands of construction workers sit waiting for high wage construction jobs.
·If these funds were put to work, they could generate jobs and additional State and
local tax revenues and substantially increase statewide economic activity.
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City of Grand Terrace
Letter of Support
AB 981
Page 2
·The Department of Finance has asserted that the bonds should be defeased,
however, many of these bonds cannot be defeased for 10 years or more.
Additionally, the Department of Finance has mandated that these funds be allowed
to unproductively sit until the 10 year or longer period has run.
·During this ten year time period over $1 billion will be spent on the interest payments
for these bonds, and the bond proceeds will continue to go unused.If the proceeds
from the bonds were used for construction projects, the projects would generate
enough money to pay the interest on the bonds.
·The vast majority of these bonds were issued for public works projects such as
infrastructure construction and repair, new public facilities, and affordable housing.
·Bondholders who purchased tax-exempt bonds (approximately 60% of the bonds in
question) for specific public works projects were promised tax-free returns.
·Pursuant to Federal Tax Law, tax-exempt bond proceeds must be used for their
intended purpose, or the bonds could be subject to losing their tax-exempt status.
This would deprive bondholders of the tax exemption they were promised.
·There are approximately 40 successor agencies (former redevelopment agencies)
holding these bond proceeds and they are located throughout the State.
·Passage of AB 981 could alleviate recent concerns of downgrading the State’s and
local municipalities’ bond credit ratings by private rating companies.
·The Department of Finance has ignored oversight board approvals for the use of
2011 bond proceeds for projects required to be constructed even though the
oversight board’s membership includes representatives of the affected taxing entities
whose interests the Department of Finance purports to represent.
·The use of these bond proceeds derived from 2011 Bonds would not have any effect
upon the taxing entities. In fact, they stand to benefit from the use of the proceeds
because of the potential increase in tax revenue received due to completion of the
projects and because the projects benefit the communities in which the taxing
entities operate.
·The use of these bond proceeds derived from the 2011 Bonds would be beneficial,
as determined by oversight boards, because it would increase tax revenue, create
jobs, provide affordable housing, and provide much needed public infrastructure.
AB 981 would address all of these issues. It would make clear the legislative intent that
successor agencies may utilize those bond proceeds for the purposes for which they were
issued after a successor agency has been issued a finding of completion by the Department
of Finance. This would free up approximately $650 million for jobs, economic development,
affordable housing, and community development at little to no cost to the State. The State
has nothing to lose and everything to win with AB 981. We urge your support of AB 981 and
ask for your commitment to ensure that AB 981 reaches the Governor’s desk.
8.B.d
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City of Grand Terrace
Letter of Support
AB 981
Page 3
Should you have any questions regarding this letter, please do not hesitate to contact me
at 909-430-2212 or via email at Walt@cityofgrandterrace.org.
Sincerely,
Walt Stanckiewitz
Mayor
encl: Resolutions in Support of AB 981
cc.California State Assembly Housing and Community Development Committee
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Office of Assemblymember Richard Bloom
AB 981 - Fact Sheet
Contact: Guy Strahl
(916) 319-2050
Page 1
AB 981 (Bloom)
Redevelopment Agencies:
Statewide Economic Development, Infrastructure Construction,
Affordable Housing and Job Creation
Fact Sheet
PURPOSE
It is estimated that approximately $650 million in
2011 redevelopment bond proceeds are currently
sitting idle and cannot be used. If these proceeds
were spent on their intended projects, it is estimated
that approximately 9,300 high wage construction and
related jobs would be generated.
The elimination of redevelopment agencies has put
the State in a difficult predicament and at risk for
costly litigation while jobs are desperately needed.
During the first half of 2011, prior to the dissolution of
all redevelopment agencies, approximately 50
agencies legally issued bonds, of those cities, 37
have outstanding bond proceeds they are now not
allowed to use.
If these funds were put to work, it is estimated they
could generate approximately 9,300 jobs and,
conservatively, over $1.2 billion in statewide
economic activity and $60 million dollars in new
State and local tax revenues.
The State has asserted that the vast majority of the
2011 redevelopment bonds must be defeased and
their proceeds not spent on projects, however, over
90% of these bonds cannot be defeased for 10
years.
During this ten year period nearly $1 billion will be
spent on the debt service payments for these bonds,
and the bond proceeds will continue to go unused. If
the proceeds were used for their intended purposes,
the construction of these projects would generate
over $1.2 billion in statewide economic activity, more
than the debt service payments during the ten year
period.
The vast majority of these bonds were issued for
public works projects such as infrastructure
construction and repair, new public facilities, and
affordable housing.
Bondholders who purchased tax-exempt bonds
(approximately 70% of the bonds in question) for
specific public works projects were promised tax-free
returns.
Per Federal Tax Law, tax-exempt bond proceeds
must be used for their intended purpose, or the
bonds could be subject to losing their tax-exempt
status.
There are 37 successor agencies (former
redevelopment agencies) holding these bond
proceeds and they are located throughout the State.
SUMMARY
AB 981 would adjust the cutoff date for the use of
redevelopment bond proceeds, from December 31,
2010, as currently established in AB 1484, to June
28, 2011, the date the dissolution legislation was
signed, thus allowing 2011 bond funds to be used for
economic development and job creation.
EXISTING LAW
AB 1484, a clean-up bill to AB X1 26 (the dissolution
legislation), granted successor agencies the ability to
use bond proceeds issued prior to January 1, 2011,
but was ambiguous on the use of bonds issued
between January 1, 2011 and June 28, 2011 (legally
issued prior to the dissolution of redevelopment
agencies).
The Department of Finance has interpreted AB 1484
to mean that successor agencies cannot use 2011
bond proceeds unless the former redevelopment
agency had entered into third party contract to
expend the proceeds, prior to agency dissolution.
The Department of Finance contends that the bonds
must be defeased using the remaining proceeds.
However, the majority of the 2011 bonds cannot be
defeased for 10 years.
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Office of Assemblymember Richard Bloom
AB 981 - Fact Sheet
Contact: Guy Strahl
(916) 319-2050
Page 2
BACKGROUND
Prior to the dissolution of redevelopment agencies in
the State, several cities through their local
Redevelopment Agencies (RDA) legally issued
bonds between January 1, 2011 and June 28, 2011,
for qualified local projects, including infrastructure,
public works, and affordable housing projects.
Chapter 5, Statutes of 2011 (AB X1 26, Blumenfield),
imposed an immediate freeze on RDA authority to
engage in most of their previous functions, including
incurring new debt, making loans or grants, entering
into new contracts or amending existing contracts,
acquiring or disposing of assets, or altering
redevelopment plans. The bill also dissolved RDAs,
effective February 1, 2012 (Supreme Court adjusted
date) and created a process for winding down
redevelopment financial affairs and distributing any
net funds from assets or property taxes to other local
taxing agencies.
Chapter 6, Statutes of 2011 (ABX1 27, Blumenfield)
allowed RDAs to opt into a voluntary alternative
program to avoid the dissolution included in AB X1
26. The program included annual payments to K–12
districts ($1.7 billion in 2011–12 and about $400
million in future years) to offset the fiscal effect of
redevelopment. AB X1 27 was struck down by the
State Supreme court on a 6-1 vote in 2011, on the
grounds that it violated Prop 22 (Passed by voters in
2010).
Because of the decision, redevelopment agencies
were dissolved and replaced by successor agencies
and oversight boards. After the court decisions, AB
1484 was enacted and specifies how the successor
agencies will manage and administer the functions of
the former redevelopment agencies, the role of the
oversight boards and state Department of Finance in
the Redevelopment Dissolution process.
SPONSOR
Author Sponsored
SUPPORT
City of West Hollywood
City of Lynwood
City of Palm
City of Signal Hill
OPPOSITION
None on File
Version: 3/20/2013
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AGENDA REPORT
MEETING DATE:March 26, 2013 Council & Successor Agency Item
TITLE:Legal Services Agreements for City and Successor Agency
PRESENTED BY:Betsy Adams, City Manager
RECOMMENDATION:The Council Ad Hoc Committee on Legal Services
recommends the following actions by the City Council and
Successor Agency Board:
1. Approve hourly rate agreement for Successor Agency
legal services in substantially the form as attached.
2. Approve new retainer agreement for City legal services in
substantially the form as attached.
3. Authorize the Executive Director and City Manager to
execute the agreements on behalf of the Successor Agency
and City respectively.
BACKGROUND:
On January 22, 2013, the City Council established an Ad Hoc Committee on Legal
Services (Committee) to review the services provided to the City and the Successor
Agency by Jones & Mayer. Mayor Stanckiewitz and Council Member McNaboe were
appointed to this Committee along with the City Attorney and City Manager.
DISCUSSION:
The Committee met six times to review Grand Terrace’s legal services needs and to
resolve a billing dispute created when Jones & Mayer began invoicing for Successor
Agency hours outside of the monthly retainer after Assembly Bill 1484 was signed into
law on June 27, 2012. After its initial meeting, the Committee included staff from the
Finance Department in its meetings. The outcome from these meetings is
recommendations from the Committee in three areas which are discussed below.
Successor Agency Agreement for Legal Services
The current agreement for legal services with Jones & Mayer does not specifically list
the Successor Agency because the agreement was enacted prior to the dissolution of
redevelopment agencies. The Committee recommends the Successor Agency enter
into its own agreement for legal services for two reasons. The first reason is that Jones
& Mayer recommends the Successor Agency take this action to enhance its position
that legal services continues to be an enforceable obligation rather than administrative
expense. The second reason is that as a separate agreement the Successor Agency
could pay for legal services on an hourly basis. While legal services have been
8.C
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relatively high since the start of redevelopment dissolution, the Successor Agency has
completed a significant portion of the legally mandated dissolution requirements and it is
anticipated that over the next few years the need for legal services will greatly diminish.
The recommended agreement has a rate of $185/hour for legal services, excluding
litigation. The Successor Agency will continue to list legal services as an enforceable
obligation of $30,000 per Recognized Obligation Payment Schedule (ROPS) period
which is $60,000 annually. Jones & Mayer has agreed that any legal services which
exceed $30,000 in a ROPS period would be placed on a subsequent ROPS to request
the funds for payment. If the Department of Finance (DOF) denies ROPS funding in
excess of the $30,000 then Jones & Mayer would not be paid for these additional costs.
City Agreement for Legal Services
The current agreement for legal services with Jones & Mayer is for a retainer of
$8,000/month, excluding litigation and special projects which would be billed at a rate of
$185/hour. The Committee recommends that the City enter into a new agreement for
legal services with a retainer of $5,000/month. The average monthly hours of legal
services for the City would be 35 hours under the new agreement rather than existing
range of 50 to 100 hours/month. It should be noted that the latter numbers included
redevelopment related legal services would now be addressed through the Successor
Agency’s separate agreement for legal services.
Resolution of Prior Invoicing
Since Jones & Mayer began billing separately for Successor Agency legal services at
the start of this fiscal year there have been a significant number of invoices which Grand
Terrace has not paid. To resolve this matter, the Committee recommends two actions
by Grand Terrace. The first is that the $8,000 retainer be paid for October 2012
services. This retainer invoice was inadvertently not been paid that month while a
Successor Agency invoice was paid. In addition, the Committee recommends that
Successor Agency invoices up to the ROPS amount of $30,000 (less the $4,000/month
applied toward the retainer) be paid for the ROPS2 and ROPS3 periods (July 1, 2012
through December 31, 2012 and January 1, 2013 through June 30, 2013). If there are
Successor Agency legal billings in excess of this, the Successor Agency will either
attempt to pay these through the ROPS “true up” process or by placing this on a
subsequent ROPS as an enforceable obligation.
FISCAL IMPACT:
There is minimal fiscal impact to Grand Terrace in having separate agreements for legal
services for the Successor Agency and the City. Successor Agency legal expenses will
not exceed $30,000 every six months unless specifically approved by the DOF either
through the ROPS “true up” process or through approval of the expenses in the
subsequent ROPS. The City’s legal expenses will increase from $4,000/month to
$5,000/month. It is anticipated that the additional $1,000 will be allocated to funds other
than the General Fund (e.g. Sewer Fund, etc.) either directly or through the General
Fund cost allocation. The funds needed to resolve the invoicing dispute with Jones &
Mayer are available within the Fiscal Year 2012-13 budget.
ATTACHMENTS:
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·City Attorney Retainer 3-13
·Successor Agency Retainer 3-13
APPROVALS:
Betsy Adams Completed 03/20/2013 1:36 PM
Finance Completed 03/21/2013 9:36 AM
City Attorney Completed 03/21/2013 9:53 AM
City Manager Completed 03/21/2013 10:24 AM
City Council Pending
8.C
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1
CITY ATTORNEY LEGAL SERVICES AGREEMENT
FOR THE CITY OF GRAND TERRACE
This Agreement for City Attorney legal Services ("Agreement') is made and entered
into by and between JONES & MAYER and the CITY OF GRAND TERRACE ("City"), a
municipal corporation of the State of California.
1. RECITALS
1.1.The City wishes to engage the services of JONES & MAYER as the City
Attorney on the terms set forth below.
1.2.JONES & MAYER represents it has the expertise, support staff and
facilities necessary to fully represent the City's interests in the
capacity as City Attorney.
1.3.JONES & MAYER represents it does not have an actual or potential
interest adverse to the City, nor does it presently represent a person or
firm with an interest adverse to the City with respect to the legal
services to be provided hereunder.
2.TERMS
2.1.Term.The term of this agreement shall commence on April 1, 2013 and
shall continue in full force until terminated in accordance with section 2.8.
2.2.Scope of Retainer Services.JONES & MAYER shall serve as City
Attorney and shall perform legal services ("Services") as may be required
from time to time by the City as set forth by this Agreement, unless
otherwise agreed to by City and JONES & MAYER. As part of the Retainer
Services to be performed hereunder, JONES & MAYER shall be
responsible for the following:
2.2.1.Preparation and attendance at all City Council meetings including
regular sessions, closed sessions and, as needed, work sessions
and Special Meetings;
2.2.2.Preparation for and attendance at all Planning Commission meetings
including regular sessions and, as needed, work sessions;
2.2.3.Attendance, as needed and as directed by the City Manager at certain
meetings of the City's Committees or Commissions.
2.2.4.Attendance at all Department Head meetings as requested;
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2.2.5.Review and/or preparation of ordinances, resolutions, orders, agreements,
forms, notices, declarations, certificates, deeds, leases, and other documents
required by the City. This shall include the review and revision documents and
agreements prepared by others;
2.2.6.Review of routine personnel matters (e.g., notices of intent, performance
improvement plans, disciplinary actions);
2.2.7.Consultation, with prior authorization, of the City Council majority or the City
Manager, to render legal advice and opinions concerning legal matters that
affect the City, including new legislation and court decisions; perform research
and interpret laws, court decisions and other legal authorities in order to
prepare legal opinions and to advise the Council and management staff on
legal matters pertaining to City operations;
2.2.8.Legal work pertaining to property acquisition, property disposal, public
improvements, public rights-of-way and easements, and matters
relating to public utilities;
2.2.9.Coordinate the work of outside legal counsel, as needed and as directed by
the City Council majority and City Manager; and
2.2.10.Provide office hours at City Hall as deemed necessary by the City
Manager.
2.3.Designated City Attorney.Richard L. Adams II shall be designated as City
Attorney. No change in this assignment shall be made without the consent of
the City. The City retains the right to request an alternate attorney should a
change in the designated attorney(s) become necessary.
2.4.Time for Performance.The Services of JONES & MAYER shall be performed
expeditiously in the time frames and as directed by a majority of the City Council,
City Manager and/or their designees.
2.5.Compensation.
2.5.1.Retainer.The City shall pay JONES & MAYER $5,000.00 per month for
retainer services as set forth in section 2.2 above. This contemplates that
City will require no more than thirty five (35)hours of legal services per
month on the average.
2.5.2.Special Project Services.The City shall pay JONES & MAYER an hourly
billing rate of One Hundred and Eighty-Five Dollars ($185.00) per hour for
special projects outside the scope of the retainer.
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2.5.3.Litigation Services. The City shall pay JONES & MAYER an hourly billing
rate of One Hundred and Eighty-Five Dollars ($185.00) per hour for all
litigation and City Prosecution related legal services.
2.5.4.Performance Reviews.The City and JONES & MAYER agree that a review
of performance shall occur every twelve months thereafter.
2.5.5.Reimbursement.The City shall reimburse JONES & MAYER for
reasonable and necessary expenses incurred by it in the performance of
the Services on behalf of the City, subject to approval by the City Manager.
Authorized, reimbursable expenses shall include, but are not limited to: (A)
parking fees at actual cost; (B) messenger fees: at actual cost for special
messenger deliveries (no cost for deliveries to City Hall); and (C)
conference registration and travel expenses chargeable only if specifically
requested by client.
2.5.6.Billing.JONES & MAYER shall submit monthly to the City a detailed
statement of account for Services. The City shall review JONES &
MAYER's monthly statements and pay JONES & MAYER for Services
rendered and costs incurred, as provided for in the Agreement, on a
monthly basis. Payment shall be made no later than thirty (30) days after
receipt of the statement.
2.6.Insurance Coverage.
2.6.1.Insurance.JONES & MAYER shall procure and maintain throughout the term
of this Agreement, with insurance carriers authorized to do business in
California, the following types and amounts of insurance: (A) commercial
general liability ($1,000,000); (B) business automobile liability ($1,000,000);
(C) employers' liability ($1,000,000); (D) errors and omissions professional
liability insurance ($1,000,000); and (E) workers' compensation (amount
required by California law). The commercial general liability and business
automobile policies shall be endorsed as follows: (1) the City shall be covered
as an additional insured with respect to the Services performed by or on
behalf of the City; and (2) the insurance coverage shall be primary insurance
over any insurance carried by the City.
2.6.2.Indemnification.JONES & MAYER shall defend, indemnify and hold the
City and its officials, officers, employees and agents free and harmless from
any and all claims, demands, causes of action, costs, expenses, liabilities,
losses, damages or injuries, in law or equity, to property or persons,
including wrongful death, to the extent arising out of or incident to any
negligent acts, errors, omissions or willful misconduct of JONES & MAYER
or it's officials, officers, employees and agents arising out of, or in
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connection with, the performance of the Services.
2.7.Cooperation with City Officials. JONES & MAYER shall work cooperatively with
the City Council and City Manager and keep them informed on all matters of
importance as they arise.
2.8.Termination of Agreement and Legal Services.This Agreement and the
Services to be rendered under it may be terminated at any time upon thirty (30)
days written notice from either party, with or without cause. In the event of such
termination, JONES & MAYER shall be paid for all services authorized by the
City and performed up through and including the effective date of termination.
2.9.Work Product Under This Agreement.All work is the property of the City,
including all evidence, files, research, notes, computerized indices, programs
and documents, and any other stored or generated information or documents. In
the event of termination of this Agreement or upon request of the City as to any
file or matter, JONES & MAYER shall promptly deliver all work product under this
Agreement to the City or its designees. JONES & MAYER also agrees that, upon
termination of the Agreement or services in any file or matter, JONES & MAYER
will provide to City or its designee a closing report, including a brief description of
the facts of the case, discussion of research conducted, and calendar of any
scheduled court appearances and deadlines.
2.10.Control and Payment of Subordinates: Independent Contractor.JONES &
MAYER shall determine the means, methods and details of performing the
Services subject to the requirements of this agreement. The City retains JONES
& MAYER on an independent contractor basis and not as an employee. Any
personnel performing the Services under this Agreement on behalf of JONES &
MAYER shall not be employees of the City, and shall at all times be under
JONES & MAYER exclusive directions and control. JONES & MAYER shall pay
all wages, salaries, and other amounts due such personnel in connection with
their performance of Services under the Agreement and as required by law.
JONES & MAYER shall be responsible for all reports and obligations respecting
such additional personnel, including, but not limited to: social security taxes,
income tax withholding,unemployment insurance, disability insurance, and
workers' compensation insurance.
2.11.Entire Agreement.This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements.
2.12.Governing Law.This Agreement shall be governed by the laws of the State of
California. Venue shall be in San Bernardino County.
2.13.Assignment or Transfer.JONES & MAYER shall not assign, hypothecate or
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transfer, either directly or by operation of law, this Agreement or any interest
herein without the prior written consent of the City. Any attempt to do so shall
be null and void, and any assignees, hypothecates or transferees shall acquire
no right or interest by reason of such attempted assignment, hypothecation or
transfer.
2.14.Amendment Modification.No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing and signed by both
parties.
2.15.Waiver.No waiver or any default shall constitute a waiver of any other default or
breach, whether of the same or other covenant or condition. No waiver, benefit,
privilege, or service voluntarily given or performed by a party shall give the other
party any contractual rights by custom, estoppel, or otherwise.
2.16.No Third Party Beneficiaries.There are no intended third party beneficiaries
of any right or obligation assumed by the parties.
2.17.Invalidity Severability.If any portion of this Agreement is declared invalid, illegal,
or otherwise unenforceable by a court of competent jurisdiction, the remaining
provisions shall continue in full force and effect.
2.18.Equal Opportunity Employment.JONES & MAYER represents that it is an
equal opportunity employer and it shall not discriminate against any
subcontractor, employee or applicant for employment because of race,religion,
color, national origin, handicap, ancestry, sex or age.
2.19.Counterparts.This Agreement may be signed in counterparts, each of which
shall constitute an original.
8.C.a
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2.20.Delivery of Notices.All notices permitted or required under this Agreement
shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
City of Grand Terrace:
Grand Terrace City Hall
Attention: Betsy Adams, City Manager
22795 Barton Road
Grand Terrace, CA 90270
Jones & Mayer:
Jones & Mayer
3777 N. Harbor Blvd.
Fullerton, CA 92835
Attn: Richard L. Adams, II
Such notices shall be deemed made when personally delivered, or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage
prepaid and addressed to the party at its applicable address. Actual notice
shall be deemed adequate notice on the date actual notice occurred,
regardless of the method of service.
IN WITNESS WHEREOF this Agreement is signed by the parties hereto on the
date first above written.
CITY OF GRAND TERRACE
Date _________________________________________________
Betsy Adams, City Manager
JONES & MAYER
Date _________________ _________________________________
Richard D. Jones, Managing Partner
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RETAINER AGREEMENT
FOR SUCCESSOR AGENCY ATTORNEY SERVICES
This Retainer Agreement for Successor Agency Attorney Services ("Agreement")
is made and entered into by and between the LAW OFFICES OF JONES & MAYER
("Jones & Mayer”) and the SUCCESSOR AGENCY FOR THE GRAND TERRACE
COMMUNITY REDEVELOPMENT AGENCY (the "Successor Agency").
RECITALS
A.Jones & Mayer is a firm in the general practice of law with extensive
municipal
experience, including in matters relating to Redevelopment Dissolution
and is fully able to carry out the duties described in this Agreement.
B.The Successor Agency desires to contract with Jones & Mayer to provide
contract legal services to the Successor Agency.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual terms and conditions set
forth in this Agreement, Jones & Mayer and the Successor Agency agree as follows:
1.APPOINTMENT OF CONTRACT SUCCESSOR AGENCY ATTORNEY
Jones & Mayer is hereby designated and appointed as Contract Successor
Agency Attorney (“Successor Agency Attorney”) of the Successor Agency and shall
serve and be compensated as provided by this Agreement. Richard L. Adams II, the
designated, Successor Agency Counsel shall be responsible during the term of this
Agreement for directing all activities of Jones & Mayer on behalf of the Successor
Agency and devoting such time as necessary to personally supervise such services.
Kimberly Hall Barlow of Jones & Mayer is designated and appointed to serve in Richard
L. Adams II’s absence.
2.TERM
The term of this Agreement shall commence on April 1, 2013 and shall continue
unless it is terminated, pursuant to Section 10 of this Agreement,or amended or until
Successor Agency is disestablished pursuant to law.
3. SCOPE OF WORK
A.Jones & Mayer shall perform all necessary Basic Legal Services as
Contract Successor Agency Attorney for the purpose of administering the day to day
operations of the Successor Agency. This includes helping the Successor Agency wind
down the activities of the former Grand Terrace Community Redevelopment Agency, as
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defined by Health & Safety Code section 34177.3(b), as it may be amended or
recodified, the California Department of Finance, and any other relevant law. The
services to be provided shall include, but are not limited to, the following activities:
1. Attend all regularly scheduled and special Successor Agency Board
meetings and Successor Agency Board study sessions and such meetings of the
Successor Agency Oversight Board as may be deemed necessary by the Successor
Agency Board or Executive Director.
2. Provide legal services on-site during office hours at Successor
Agency’s offices as needed. These hours of on-site service will be at regularly
scheduled times made known to all members of the Successor Agency Board and to all
department heads, as applicable,so as to facilitate informal, direct access to legal
counsel as necessary.
3. Attend other meetings at Successor Agency’s Offices as required
by the Successor Agency Board or the Executive Director.
4. Advise the Successor Agency Board; Successor Agency staff; and
other Successor Agency officials on all legal matters pertaining to Successor Agency
business.
5. Prepare, review, and approve as to form, contracts, agreements,
resolutions, and all other standard Successor Agency documents.
6. Prepare such written and oral legal opinions as shall, from time to
time, be requested by the Successor Agency.
7. Perform such other routine legal services as are required, from time
to time, by the Successor Agency Board or the Executive Director.
8. Represent the Successor Agency and the Successor Agency's
officials, officers, and employees in litigation and administrative proceedings as directed
by the Successor Agency Board, Executive Director, or any other relevant authority.
9.At the request of the Successor Agency, Jones & Mayer may be
asked to provide an estimate of hours and cost to complete a project or task assigned
by the Executive Director, or designee, or the Successor Agency Board.
B. Jones & Mayer will also provide Basic Legal Administrative Services, as
defined by Health & Safety Code section 34171(b), as it may be amended and
recodified , or by any other relevant law.
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4.COMPENSATION
Jones and Mayer shall be compensated under the terms of this Agreement as
follows:
A.Basic Legal Services and Basic Legal Administrative Services
The Successor Agency shall pay Jones & Mayer for non-litigation Basic Legal
Services and Basic Legal Administrative Services, as described above, at the rate of
$185.00 per hour. Paralegal services, for non-litigation legal services not included in
the retainer only shall be billed at the rate of $100 per hour. All costs and expenses,
except for those as set forth in Section 3.B below shall be deemed included in the
foregoing hourly billing rates.
B.Litigation Services
Litigation matters approved by the Executive Director and/or Successor Agency
Board shall be billed separately from Basic Legal Services and Basic Legal
Administrative Services, as described in Section 4.A above. Litigation legal services
shall be billed at the same rate as for Basic Legal Services and Basic Legal
Administrative Services, described under Section 4.A above. Paralegal services shall
be billed at the same rate as for Basic Legal Services and Basic Administrative Services
as described in Section 4.A above. All costs and expenses, except for those as set forth
in Section 4.E below shall be deemed included in the foregoing hourly billing rates.
C.Billing and Rate Increases
Jones & Mayer shall provide a monthly billing report indicating actual time
spent under the Basic Legal Services, Basic Legal Administrative Services, litigation
matters, and additional specialized projects.
D.Counsel Billable Activities for General Legal Services
Jones & Mayer does not bill mileage to and from City Hall, fax, word processing,
small reproduction matters (under 100 pages), or simple computer legal research costs.
Additionally, it is agreed that the cost for administrative staff to perform clerical duties
including but not limited to reviewing emails, scheduling meetings or general office filing
will not be billable expenditures.
E. Litigation Expenses
Jones & Mayer shall be reimbursed for direct out-of-pocket expenses actually
and necessarily incurred in the course of providing legal services under this Agreement,
including in preparation for and maintaining the prosecution or defense of litigation,
including without limitation: court costs, jury fees, service costs, witness fees, deposition
costs, reporters' fees, title reports, photographs, diagrams, maps, and similar expenses.
8.C.b
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H. Monthly Statements
Jones & Mayer shall submit statements of all payments due under this
Agreement on a monthly basis to the Executive Director. All work performed by Jones &
Mayer shall be billed in increments of tenths of an hour. The statement shall be in a
form approved by the Successor Agency, and shall set forth a description of all work
performed, the hours worked, the identity of each person performing the work, the rate
charged,and any litigation costs or expenses eligible for reimbursement.
5.PROHIBITION AGAINST SUBCONTRACTING DELEGATING OR
ASSIGNMENT
Jones & Mayer shall not contract with or delegate to any individual or other entity
to perform on the Successor Agency’s behalf, in whole or in part, any of the services
required under this Agreement without the prior express approval of the Successor
Agency. In addition, neither this Agreement nor any interest herein may be assigned or
transferred, voluntarily or by operation of law, without the prior express approval of the
Successor Agency.
6. CONFLICT OF INTEREST
Jones & Mayer shall at all times avoid conflicts of interest in the performance of
this Agreement. In the event that a conflict arises, Jones & Mayer shall immediately
notify Successor Agency. Within thirty (30) days following execution of this Agreement,
Jones & Mayer shall file a conflict of interest disclosure statement setting forth any
information related to potential conflicts of interest to the extent such disclosure is
required by law, including Successor Agency’s adopted conflict of interest code.
7. INDEPENDENT CONTRACTOR
Jones & Mayer shall perform all services required under this Agreement as an
independent contractor of the Successor Agency, and shall remain at all times as to
Successor Agency a wholly independent contractor with only such obligations as are
consistent with that role. Jones & Mayer shall not at any time or in any manner
represent that it or any of its employees or agents are Successor Agency employees.
8. INSURANCE AND INDEMNIFICATION
A. Insurance
Jones & Mayer shall procure and maintain, at its cost, throughout the term of this
Agreement, with insurance carriers authorized to do business in California, the following
types and amounts of insurance: (A) commercial general liability ($1,000,000); (B) business
automobile liability ($1,000,000); (C) employers' liability ($1,000,000); (D) errors and
omissions professional liability insurance ($1,000,000); and (E) workers' compensation
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(amount required by California law). The commercial general liability and business
automobile policies shall be endorsed as follows: (1) the City shall be covered as an
additional insured with respect to the Services performed by or on behalf of the City; and
(2) the insurance coverage shall be primary insurance over any insurance carried by the
City.
B. Indemnification
Jones & Mayer shall defend, indemnify, and hold harmless the Successor
Agency, and its officers and employees, from and against any and all actions, suits,
proceedings, claims, demands, losses, costs and expenses, including legal costs and
attorneys' fees, for injury to person(s) or damages to property (including property owned
by the Successor Agency), and for errors and omissions committed by Jones & Mayer,
its officers, employees, and agents, arising out of or relating to Jones & Mayer's
performance under this Agreement, except where such injury, damage, error(s) or
omission(s) may be caused by Successor Agency's sole negligence, active negligence,
or willful misconduct or that of the Successor Agency’s officers or employees.
9. RECORDS AND REPORTS
A. Records. Jones & Mayer shall keep such books and records as shall be
necessary to perform the services required by this Agreement and to enable the
Successor Agency to evaluate the performance of the required services. The Successor
Agency shall have full and free access to such books and records that deal specifically
with the services performed by Jones & Mayer for Successor Agency at all reasonable
times, including the right to inspect, copy, audit, and make summaries and transcripts
from such records.
B. Ownership of Documents. All reports, records, documents, and other
materials prepared by Jones & Mayer, its employees and agents in the performance of
this Agreement shall be the property of the Successor Agency and shall be delivered to
the Successor Agency upon request by the Successor Agency or upon termination of
this Agreement. Jones & Mayer shall have no claim for further or additional
compensation as a result of the exercise by the Successor Agency of its full rights of
ownership of the documents and material hereunder. Jones & Mayer may retain copies
of such documents for its own use.
10. TERMINATION
A. Termination By Successor Agency
Jones & Mayer shall at all times serve under the terms of this Agreement at the
pleasure of the Successor Agency Board, and the Successor Agency Board hereby
reserves the right to terminate this Agreement at will, with or without cause, by providing
written notice to Jones & Mayer. Upon receipt of any notice of termination, Jones &
Mayer shall cease all services under this Agreement except as may be specifically
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approved by the Successor Agency. At that time, all further obligations of the
Successor Agency to pay Jones & Mayer for services rendered under this Agreement
shall thereupon cease, except as set forth in Section 10.C below; provided, however,
that the Successor Agency shall be obliged to pay for all services, costs, and
expenditures lawfully incurred by Jones & Mayer prior to the effective date of such
termination.
B. Termination By Jones & Mayer
Jones & Mayer reserves the right to terminate this Agreement by giving ninety
(90) days' advance written notice to Successor Agency.
C. Mutual Obligations Upon Termination By Either Party
In the event of termination, Jones & Mayer shall cooperate with the Successor
Agency in transferring the files and assignments to the Successor Agency Secretary or
other person designated by Successor Agency pending the hiring of another Successor
Agency Attorney. Jones & Mayer shall be compensated at the hourly rates set forth in
Section 4.A of this Agreement should Jones & Mayer be called upon to perform any
services after the effective date of termination, including the transfer of files and
assignments.
11. NOTICES
Notices shall be personally delivered, or sent by U.S.Mail or overnight delivery,
to the parties at the following addresses:
Successor Agency for the Grand Terrace Community Redevelopment Agency
Grand Terrace City Hall
Attention: Betsy Adams, City Manager
22795 Barton Road
Grand Terrace, CA 90270
Jones & Mayer
Attention: Richard L. Adams, II
3777 North Harbor Boulevard
Fullerton, CA 92835
12. AMENDMENT OF AGREEMENT
This Agreement contains all of the agreements of Jones & Mayer and the
Successor Agency. This Agreement may be amended at any time by mutual consent of
the parties by an instrument in writing.
8.C.b
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IN WITNESS WHEREOF, the duly authorized representatives of the parties have
executed this Agreement in duplicate the ____day of March, 2013.
Successor Agency for the Grand Terrace
Community Redevelopment Agency
By:_____________________________
Betsy Adams, Executive Director
ATTEST:
________________________________
Successor Agency Secretary
JONES & MAYER
By:_____________________________
Richard D. Jones, Owner
8.C.b
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