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HomeMy WebLinkAboutContract 1601 - C Alliant Consulting, Inc. AGREEMENT FOR LABOR COMPLIANCE CONSULTANT SERVICES ALLIANT CONSULTING, INC. AND CITY OF CATHEDRAL CITY This AGREEMENT is made and entered into this 10th day of October in the year 2014, by and between THE CITY OF CATHEDRAL CITY hereinafter referred to as "OWNER", and ALLIANT CONSULTING,INC., hereinafter referred to as "CONSULTANT". WHEREAS, The Department of Industrial Relations (DIR) and California Labor Code Section 1770 et seq. requires compliance with all State and Federal and Local labor standards requirements, including payment of State and Federal prevailing wages and compliance with prevailing wage laws; and WHEREAS, The requirements of the Proposition 84 grant include third party enforcement of a Labor Compliance Program to ensure compliance with prevailing wage laws; and WHEREAS, OWNER desires to obtain labor compliance consultant services for the Whitewater Park Project which is deriving funds from the State of California Proposition 84 grant among other public funds, hereinafter referred to collectively as"PROJECT"; and WHEREAS, CONSULTANT represents it has the necessary personnel, professional qualifications, expertise and financial capability to provide such special consultant services in conformity with the laws of the State of California; and WHEREAS, the period during which services are provided under this AGREEMENT shall not exceed 2 years including all extensions and subject to the provisions set forth in Article VI. NOW,THEREFORE, the parties hereto agree as follows: ARTICLE I—CONSULTANT'S RESPONSIBILITIES &SCOPE OF SERVICES 1. CONSULTANT's services shall consist of those services performed by CONSULTANT and CONSULTANT's employees. CONSULTANT shall not subcontract any work to any other parties for the duration of this project. 2. CONSULTANT's services shall be performed in a manner that is consistent with professional skill and care and the orderly progress of the work. CONSULTANT shall perform Whitewater Park Project Labor Compliance City of Cathedral City 1 Alliant Consulting, Inc. its services diligently, expeditiously and with adequate forces consistent with the requirements for the PROJECT. 3. CONSULTANT, upon notice to proceed from the OWNER, shall provide labor compliance related services as required for the administration and enforcement of State and Federal Labor Standards and proper payment of prevailing wages. CONSULTANT shall furnish and pay for all labor, materials and supervision necessary for the timely and efficient performance of such services. 4. CONSULTANT shall not subcontract or assign any services or responsibilities set forth in this AGREEMENT without the prior written consent and approval of the OWNER. 5. PRE-CONSTRUCTION PHASE a. Prior to the commencement of PROJECT construction,CONSULTANT shall work with the OWNER to do the following: i. Within five days of request by OWNER,CONSULTANT shall obtain the correct State and Federal prevailing wage determinations as well as all State, Federal and Local prevailing wage requirements and shall submit to OWNER as soon as received; ii. OWNER shall include the received wage determinations, outline of requirements and required forms in the bid and construction contract documents which shall be reviewed for accuracy by CONSULTANT; iii. CONSULTANT shall work with OWNER to include the appropriate labor standards provisions,contracting language and wage determinations in the construction contract; iv. CONSULTANT shall hold a pre-construction conference to explain labor standards requirements with OWNER and all subcontractors on PROJECT; v. CONSULTANT shall check the eligibility status of each contractor and subcontractor to work on the PROJECT(non-debarment certification and licensing); and b. After the award of the contract for a PROJECT, and prior to the commencement of any work by the Contractor or its Subcontractors, CONSULTANT shall conduct a Pre- Construction Conference with the OWNER, the prime Contractor and all available Subcontractors. c. At the Pre-Construction Conference, the CONSULTANT shall advise the prime Contractor and Subcontractors of their responsibilities and obligations regarding the labor standards provisions and State and Federal wage determinations contained in the contract documents. The CONSULTANT shall discuss and be prepared to answer questions regarding the labor law requirements applicable to the PROJECT, including, but not limited to the following: State, Local, and Federal prevailing wage requirements, State and Federal wage Whitewater Park Project Labor Compliance City of Cathedral City 2 Alliant Consulting, Inc. determinations, the respective record keeping responsibilities including but not limited to daily logs, certified payroll records and time sheets, the requirement for the submittal of certified payroll records to CONSULTANT and OWNER, apprenticeship requirements, the prohibition against discrimination in employment and required forms for filing and submittal of such forms. d. CONSULTANT shall prepare the necessary labor compliance documents and suggested reporting forms to be provided to the Contractor and Subcontractors at the Pre- Construction Conference including, but not limited to the following: the applicable State and Federal prevailing wage determinations, the WH 1321 "Notice to Employees" poster, blank certified payroll record forms (Form WH-347 or A-131 Form with Instructions), blank fringe benefit statement, payroll deduction authorization form, statement of non-performance form, certification of understanding and authorization form, Contractor's/Subcontractors certification concerning labor standards and prevailing wages form and apprenticeship requirements with supporting forms including the DAS 140 Form, the DAS 142 Form and the CAC 2 Form. e. At the Pre-construction conference, CONSULTANT shall provide and discuss in detail the responsibility of Contractors and Subcontractors of paying employees to ensure compliance with all State, Federal and Local labor standards provisions. CONSULTANT shall also inform all Contractors present of their responsibility to submit certified payroll reports to CONSULTANT. CONSULTANT shall review the following requirements in detail: I)Proper payment of prevailing wage rates to all workers on PROJECT; 2) Apprentice requirements including filing of DAS 140Form, requesting and hiring apprentices in 1 to 5 ratio to journeymen, proper payment of training contributions; 3)Penalties for willful noncompliance of Federal, State and Local laws; 4)Certified Payroll Records to be completed and sent on a weekly basis to CONSULTANT; 5)Nondiscrimination in employment pursuant to Federal and State laws; 6) Kickbacks prohibited; 7) Acceptance of Fees prohibited; 8)Proper listing of all subcontractors including tiered subcontractors; 9)Proper licensing for work to be performed; 10)Unfair competition prohibited; 11)Workers' Compensation Insurance required; 12) OSHA regulations must be followed; 13)Undocumented workers are prohibited on PROJECT; 14)Workers must receive itemized wage statements with each paycheck. f. CONSULTANT shall ensure that the Contractor's and all of the Subcontractors' representatives certify that they acknowledge and understand the labor standards provisions and requirements for the PROJECT by signing the Appendix A form. Whitewater Park Project Labor Compliance City of Cathedral City 3 Alliant Consulting, Inc. g. CONSULTANT shall answer all questions regarding labor standards requirements and shall have all in attendance at Pre-construction conference sign in their attendance and acknowledge receipt of materials and forms distributed by CONSULTANT. h. CONSULTANT shall document the pertinent data as to the items discussed at the Pre-construction conference and shall prepare a report of minutes to be given to the OWNER.The minutes shall contain the following: i. Project name, location and description, State and Federal wage determination numbers and dates. ii. Name of Consultant. iii. Contract amount. iv. Date and place of conference. v. Conference attendees (sign-in sheet). vi. Summary of items covered (including but not limited to: pre-construction handout, Appendix A Form, DAS 140 Form, Fringe Benefit Statement Form, DAS 142 Form, CAC 2 Form,Certification of Authorization and Understanding Form,WH 347 Form, A-131 Form, Statement of Compliance, Non-Performance Form & Section 3 Form with all supporting documentation. 6. CERTIFIED PAYROLL RECORDS a. CONSULTANT shall monitor Contractor and Subcontractors to ensure they maintain weekly certified payroll records ("CPR") and submit CPRs to CONSULTANT and OWNER. Subcontractors shall submit their payroll directly to CONSULTANT. Weekly payrolls shall be completed and submitted to CONSULTANT in a timely manner, preferably no later than seven work days following completion of the work week. Should contractors not submit CPR's within the required timeframe, CONSULTANT shall notify contractor in writing of the requirement and set new deadline for contractor. Should CPRs not be submitted, CONSULTANT shall notify OWNER of noncompliance and request withholding or delay of next pay application until compliance is met. b. When received, CONSULTANT shall review all submitted CPRs to ensure compliance with all State, Federal and Local labor standards. CONSULTANT shall ensure each CPR is accompanied by a statement of compliance signed by the Contractor and each Subcontractor(if applicable) indicating that the payroll records are correct and complete, that the wage rates contained therein are not less than the State and Federal rates determined for the PROJECT and that the classifications set forth for each employee conform with the work performed. CONSULTANT shall also ensure that only classifications appearing on and the State and Federal wage determinations are used and shall check for disproportionate employment of laborers, helpers, apprentices or trainees. CONSULTANT shall review all Whitewater Park Project Labor Compliance City of Cathedral City 4 Alliant Consulting, Inc. CPRs in a manner as to not delay payment to the Contractor and Subcontractors if CONSULTANT does not have a basis for recommending withholding of contract payments based on its review of such CPRs. c. CONSULTANT shall date payrolls upon receipt and initial them upon review. The payrolls shall be examined by CONSULTANT upon receipt so that any necessary corrective action may be initiated before the problem multiplies, and may be accomplished while any affected workers are still available. CONSULTANT shall use Project Tracking Log and CPR Log to record payroll accuracies and/or omissions. d. CONSULTANT shall review all CPRs to ensure the following: that the worker's rate for straight time hours equal or exceed the rate specified in the contract by reference to the State and Federal Prevailing Wage Determinations for the class of work actually performed, overtime payments, subsistence, travel, shift differential and other payments are made in accordance with the applicable State and Federal Prevailing Wage Determinations and applicable laws. e. If collected payrolls are incomplete or incorrect, CONSULTANT shall return the incomplete payrolls to the Contractor for completion except when falsification is suspected. If a payroll is false, the CONSULTANT shall prepare a report of such findings and shall send it to OWNER. Incorrect payroll shall be revised by contractor. In the case of an incomplete payroll, the CONSULTANT may request supplemental payroll to supply missing information in lieu of returning it to the Contractor. f. In addition to verifying information in Section 6 (b), (d), CONSULTANT shall review all CPRs to ensure the following: payroll computations are correct, all deductions on payroll are permissible, and the statement of compliance is signed by the owner, officer, or designated employee of the contractor. When incorrect, CONSULTANT shall notify contractor immediately with a Request for Information (RFI) where a new deadline shall be set for compliance, usually within ten days. When the corrected documents are received and verified for compliance, the contractor shall be notified and the file completed for that week. Strict deadlines, use of forms during review and checklists to be completed all aid in CONSULTANT's duties to avoid penalties for noncompliance. g. CONSULTANT shall keep detailed records of the compliance of each payroll received, supporting documentation received and RFI's sent to contractors. All outstanding requests, missing information, payroll or supporting documentation shall be detailed by CONSULTANT on a monthly summary submitted to OWNER via email by the 15`h of the following month. Only noncompliance issues shall be addressed to OWNER. h. CONSULTANT shall notify OWNER via email when noncompliant contractors have met compliance. If contractors are still noncompliant after the ten day deadline, CONSULTANT shall notify OWNER of the request to withhold payment to contractor until Whitewater Park Project Labor Compliance City of Cathedral City 5 Alliant Consulting, Inc. compliance is met. OWNER shall only get involved with requesting documents from contractor if CONSULTANT is unable. 7. APPRENTICESHIP REQUIREMENTS a. CONSULTANT shall ensure that the Contractor and all Subcontractors comply with the apprenticeship requirements set forth in CA Labor Code Section 1777.5 and California Code of Regulations Section 230.1. CONSULTANT shall collect copies of DAS 140 and DAS 142 forms with supporting documentation to prove appropriate submission of forms, shall verify apprentices are individually registered in a bona fide apprenticeship program registered with a State or Federal Apprenticeship Agency recognized by the Bureau using the online verification system. The approval shall be printed out and put in contractor file. b. CONSULTANT shall ensure that the allowable ratio of apprentices to journeymen in any craft classification shall not be greater than the ratio permitted to the Contractor as to their entire work force under the registered program. The general ratio shall be no less than 1 apprentice hour for each 5 journeymen hours. c. CONSULTANT shall ensure the registration of a Contractor or Subcontractor to an approved apprentice program using the online verification process. A copy of such registration shall be printed out and put in file. If verification is not found online,CONSULTANT shall contact contractor to furnish proof of registration. d. CONSULTANT shall ensure the proper payment of apprentices with the wage rate determined by the DIR or DOL (WHD) for the classification of the work actually performed by comparing the payroll rates with the published rates for PROJECT. 8. ON SITE INSPECTIONS a. CONSULTANT shall conduct on-site interviews with workers on the PROJECT on a regular, frequent basis, most likely weekly, depending on State, Federal and Local requirements for site visits. Consultant will follow set site-visitation schedule. Consultant shall conduct site interviews more often if there is any evidence that a violation may have occurred or to ensure interviews are done for each craft and classification on the PROJECT. Site interviews will be conducted on a random basis. Consultant shall conduct bilingual interviews so as to be certain that there is no communication barrier with workers who don't speak English. CONSULTANT shall ensure site interviews are done as often as necessary to verify compliance and compare information with payrolls received. Whitewater Park Project Labor Compliance City of Cathedral City 6 Alliant Consulting, Inc. b. When on the PROJECT site, CONSULTANT shall ensure that the State and Federal wage determinations and other required material are posted by the Contractor at the site in a prominent and accessible place where they can be easily read by workers. The poster WH-1321 "Notice to Employees" shall be included in this. c. CONSULTANT shall interview workers in all trades and make an effort to interview up to 10% of workers in all trades. Interviewer shall use HUD Record of Employee Interview form. d. CONSULTANT shall initiate the interview by identifying himself/herself to the worker to be interviewed and shall explain their purpose for being on PROJECT site. CONSULTANT shall inform the worker of the specific location at which the State wage decisions are posted at the PROJECT site. e. CONSULTANT shall ask worker all questions on form and question the worker for more information if needed to verify compliance with labor standards. f. CONSULTANT shall compare information collected during the interview with payroll received from Contractor to ensure compliance. If discrepancies are found, CONSULTANT shall initiate an investigation. g. CONSULTANT shall complete the Record of Employee Interview form, take detailed notes of equipment on site, subcontractors and trades on site, work being completed and estimated headcount of workers on site. Interviewer shall take pictures of equipment and work being done for the file. h. CONSULTANT shall return to the office and prepare a Site Interview Summary for PROJECT detailing all workers interviewed, equipment seen on site, problems (if any) on site and include any notes they feel are required to verify compliance. Summary shall be printed for the file and saved electronically on server. i. CONSULTANT shall enter required information on the Site Visitation Log which will be verified with certified payroll records once received. The log will be updated as compliant or noncompliant. Noncompliance means the payroll information does not match information received on site during the interview. If noncompliance is found, CONSULTANT shall immediately contact contractor with discrepancy and request corrected information by set deadline. If this information is not received by set deadline, OWNER shall be notified and the audit/investigative process shall start. 9. INVESTIGATION AND ENFORCEMENT ACTION Whitewater Park Project Labor Compliance City of Cathedral City 7 Alliant Consulting, Inc. a. CONSULTANT shall investigate any and all complaints or discrepancies promptly. The investigation of labor standards complaints received from workers on the PROJECT receives priority attention. - b. CONSULTANT's duties in investigating include, but are not limited to, the following: i. State and Federal Wage rate decision posting requirements. ii. Examination of payrolls. iii. Examination of basic time and work records including daily reports. iv. Conformity with Apprentice/Trainee requirements v. Laborers and Mechanics not listed in the wage decision. vi. Employee interviews. vii. Obtaining written statements from employees viii. Preparing investigation report, notifying contractor and OWNER. ix. Collecting all corrected documents to ensure compliance. c. When an underpayment of wages or labor violation has occurred, CONSULTANT's duties in enforcing include,but are not limited to,the following: i. Notifying OWNER via email immediately of discrepancy and results of investigation. ii. Making written recommendations, after a full and complete investigation to the satisfaction of the CONSULTANT, to OWNER to withhold contract payments and assess appropriate penalties for not paying the per diem prevailing wages. iii. Making written recommendations to OWNER to withhold contract payments and assess appropriate penalties for failing to comply with the required apprenticeship requirements for the PROJECT. iv. Making written recommendations to OWNER and State, Federal & Local agencies if needed for forfeitures and preparing the required file or reports. v. Forwarding the written recommendations for forfeitures and the required file or reports to affected parties. • Whitewater Park Project Labor Compliance City of Cathedral City 8 Alliant Consulting, Inc. d. After determination of the amount of forfeiture, CONSULTANT shall assist the OWNER in preparing and serving the appropriate notice of withholding of contract payments to the Contractor and/or Subcontractor and ensure payment of wage restitution when funds have been withheld. • CONSULTANT shall devote the necessary personnel for performance of its obligations under this AGREEMENT and shall designate a Labor Compliance Officer who will be responsible for coordinating the CONSULTANT's performance under this AGREEMENT. 10. OUTREACH ACTIVITIES CONSULTANT shall assist in the successful implementation of labor compliance by conducting the following outreach activities: a. General communication and outreach relative to public information regarding the State, Federal and Local labor standards provisions, notifications, updates, pre-determined increases and any prevailing wage questions contractors may have. b. Presentations to Contractors and Subcontractors at all Pre-construction conferences and additional meetings is required. c. Ongoing communication (via correspondence or meetings) with workers at the PROJECT when review of the CPRs reveals the possibility of State or Federal prevailing wage violations as well as violations of State, Federal or Local compliance law. d. Periodic meetings with Contractor and Subcontractors interested in public works contracting with the OWNER. e. Monthly status updates via email notifying OWNER of records received by all subcontractors and outstanding payroll and/or discrepancies. Additional updates if contractors are found to be in noncompliance or withholding of payment is required. f. Providing advice and expertise to answer any questions from the OWNERs staff, Contractors and Subcontractors relative to the terms, requirements and administration of the labor compliance enforcement. ARTICLE H—OWNER'S RESPONSIBILITIES, Whitewater Park Project Labor Compliance City of Cathedral City 9 Alliant Consulting, Inc. 1. The OWNER, through the CONSULTANT, ultimately has the duty to ensure the State and Federal prevailing wages are being paid correctly to workers on the PROJECT and all contractors are abiding by State, Federal and Local prevailing wage law. 2. OWNER shall assist and provide all requested information by CONSULTANT promptly and as is reasonably required for CONSULTANT to perform its obligations under this AGREEMENT. 3. OWNER shall allow CONSULTANT access on the PROJECT for site interviews to the extent reasonably determined by CONSULTANT to be appropriate to perform its obligations under this AGREEMENT. ARTICLE III—CONSULTANT'S DOCUMENTS Any and all documents prepared by CONSULTANT for the PROJECT shall be and remain the property of the OWNER pursuant to applicable codes. ARTICLE IV -ACCOUNTING RECORDS OF CONSULTANT Records of CONSULTANT's direct personnel and other expenses pertaining to the PROJECT, and records of accounts between the OWNER and CONSULTANT shall be kept on a generally recognized accounting basis and shall be available to the OWNER or OWNER's authorized representative at mutually convenient times. Detailed monthly time tracking reports shall accompany all invoices submitted on a monthly basis. ARTICLE V - COMPENSATION TO CONSULTANT The OWNER shall compensate CONSULTANT in accordance with Attachment "A" attached hereto("Fee Schedule"). ARTICLE VI-TERMINATION I. This AGREEMENT may be terminated by either party upon fourteen (14) days' written notice to the other party in the event of a failure of performance by such other party, including insolvency of CONSULTANT or OWNER, or if the OWNER should decide to abandon or indefinitely postpone the PROJECT, as long as such termination is approved beforehand by the OWNER. Whitewater Park Project Labor Compliance City of Cathedral City 10 2. In the event of a termination based upon abandonment or postponement by OWNER, the OWNER shall pay CONSULTANT for all services performed and all expenses incurred under this AGREEMENT supported by documentary evidence, including review of payroll records, and expense reports up until the date of the abandonment or postponement. In ascertaining the services actually rendered hereunder up to the date of termination of this AGREEMENT, consideration shall be given to both completed work and work in process of completion and other documents whether delivered to the OWNER or in the possession of the CONSULTANT. In the event termination is for a failure of performance, all damages and costs associated with the termination, including increased consultant and replacement consultant costs shall be deducted from payments to CONSULTANT. 3. This AGREEMENT may be terminated without cause by OWNER upon fourteen (14) days' written notice to CONSULTANT as long as such termination has been previously approved by the OWNER. In the event of a termination without cause, the OWNER shall pay CONSULTANT for all services performed and all expenses incurred under this AGREEMENT supported by documentary evidence, including payroll records, and expense reports up until the date of notice of termination. In ascertaining the services actually rendered hereunder up to the date of termination of this AGREEMENT, consideration shall be given to both completed work and work in process of completion and to other documents whether delivered to the OWNER or in the possession of the CONSULTANT. In addition, CONSULTANT will be reimbursed for reasonable termination costs through the payment of no more than 3% of all actual costs incurred up until the date of termination, but not more than the actual documented costs incurred by CONSULTANT for four months prior to the date of termination, as termination costs upon CONSULTANT's provision of substantiating justification documents. This payment is agreed to compensate CONSULTANT for the unpaid profit CONSULTANT would have made under the PROJECT on the date of termination and is consideration for entry into this termination for convenience clause. 4. In the event of a dispute between the parties as to performance of the work or the interpretation of this AGREEMENT, or payment or nonpayment for work performed or not performed, the parties shall attempt to resolve the dispute. Pending resolution of this dispute, CONSULTANT agrees to continue the work diligently to completion. If the dispute is not resolved, CONSULTANT agrees it will neither rescind the AGREEMENT nor stop the progress of the work, but CONSULTANT's sole remedy shall be to submit such controversy to determination by a court having competent jurisdiction of the dispute, after the PROJECT has been completed, and not before. ARTICLE VI -MISCELLANEOUS 1. To the fullest extent permitted by law, CONSULTANT agrees to indemnify, defend and hold OWNER, subcontractors and service contractors entirely harmless from all liability arising out of: Whitewater Park Project Labor Compliance City of Cathedral City 11 • Alliant Consulting, Inc. a. Any and all claims under Workers' Compensation acts and other employee benefit acts with respect to CONSULTANT's employees arising out of CONSULTANT's work under this AGREEMENT; b. Liability for damages for(1)death or bodily injury to person; (2) injury to, loss or theft of property; (3) any failure or alleged failure to comply with any provision of law or(4) any other loss, damage or expense arising under either (1), (2), or (3) above, sustained by CONSULTANT or the OWNER, or any person, firm or corporation employed by CONSULTANT in connection with the Labor Compliance Services, except for liability resulting from the sole or active negligence, or willful misconduct of the OWNER, its officers,employees, agents or independent consultants who are directly employed by the OWNER; c. Any loss, injury to or death of persons or damage to property caused by any act, neglect, default or omission of CONSULTANT, or any person, firm or corporation employed by CONSULTANT, either directly or by independent contract, including all damages due to loss or theft, sustained by any person, firm or corporation including the OWNER, arising out of, or in any way connected with the Labor Compliance Services, including injury or damage either on or off OWNER property; but not for any loss, injury, death or damages caused by the sole or active negligence, or willful misconduct of the OWNER. Notwithstanding the foregoing, CONSULTANT shall not be responsible to defend the OWNER, nor shall CONSULTANT reimburse the OWNER for any damages or costs attendant to Contractor or Subcontractor claims for delay arising out of the requirement that they comply with the provisions of the Labor Compliance requirements and all applicable labor law. 2. CONSULTANT shall purchase and maintain policies of insurance required by OWNER. Each policy of insurance required in (b) above shall name OWNER and its officers, agents and employees as additional insured's; shall state that, with respect to the operations of CONSULTANT hereunder, such policy is primary and any insurance carried by CONSULTANT shall notify OWNER in the event of material change in, or failure to renew, each policy. Prior to commencing work, CONSULTANT shall deliver to OWNER certificates of insurance as evidence of compliance with the requirements herein. In the event CONSULTANT fails to secure or maintain any policy of insurance required hereby, OWNER may, at its sole discretion, secure such policy of insurance in the name of and for the account of CONSULTANT, and in such event CONSULTANT shall reimburse OWNER upon demand for the cost thereof. 3. CONSULTANT, in the performance of this AGREEMENT, shall be and act as an independent Contractor. CONSULTANT understands and agrees that CONSULTANT and all of CONSULTANT's employees shall not be considered officers, employees or agents of the OWNER, and are not entitled to benefits of any kind or nature normally provided employees of the OWNER and/or to which OWNER's employees are normally entitled, including, but not limited to, State Unemployment Compensation or Workers' Compensation. CONSULTANT assumes the full responsibility for the acts and/or omissions of CONSULTANT'S employees or Whitewater Park Project Labor Compliance City of Cathedral City 12 Alliant Consulting, Inc. agents as they relate to the services to be provided under this AGREEMENT. CONSULTANT shall assume full responsibility for payment of all, state and local taxes or contributions, including unemployment insurance, social security and income taxes for the respective CONSULTANT's employees. 4. Nothing contained in this AGREEMENT shall create a contractual relationship with or a cause of action in favor of any third party against either the OWNER or CONSULTANT. 5. The OWNER and CONSULTANT, respectively, bind themselves, their partners,officers, successors, assigns and legal representatives to the other party to this AGREEMENT with respect to the terms of this AGREEMENT. 6. This AGREEMENT shall be governed by the laws of the State of California. 7. This AGREEMENT represents the entire AGREEMENT between the OWNER and CONSULTANT and supersedes all prior negotiations, representations or agreements, either written or oral. This AGREEMENT may be amended or modified only by an agreement in writing signed by both the OWNER and CONSULTANT. This AGREEMENT entered into as of the day and year first written above. OWNER CONSULTANT City of Cathedral City Alliant Consulting, Inc. By dO/ • By: . t.. Name: 4iG`Q T , 4 /OS Name: ChristaJ. S : t Title: diivrncu,,p .7v,,l,pl,�,,�{�rec�r Title: President DATE: /0-.Z d -/1 / DATE: October 10, 2014 Whitewater Park Project Labor Compliance City of Cathedral City 13 Alliant Consulting, Inc. ATTACHMENT A "FEE SCHEDULE" Whitewater Park Project Labor Compliance City of Cathedral City 13 ALLIANT NSULTING, INC. LABOR PI.IANCE MONflORINO August 19, 2014 John Corella, P.E. Senior Engineer City of Cathedral City 68700 Avenida Lalo Guerrero Cathedral City, CA 92234 Subject: Labor Compliance Consulting Services for the City of Cathedral City Proposition 84 Whitewater Park Project. Dear Mr. Corella and the City of Cathedral City, Welcome to Alliant Consulting, Inc. Labor Compliance Monitoring. We would like to present you the following information regarding Labor Compliance Consultant Services for projects with Proposition 84 funding. As requested, we have enclosed a copy of our proposal for Labor Compliance Monitoring Services for the Cathedral City Whitewater Park Project. Alliant Consulting prefers quality over quantity which is evident in our performance. Our project and staff growth for the past eleven years has been strong but steady. We are always current with new regulation changes implemented by State and Federal Agencies to monitor and enforce labor compliance with contractors accordingly. Alliant Consulting has superior knowledge of the prevailing wage and apprenticeship requirements under California and Federal law. Since our company was established in 2003, Alliant Consulting has been successfully monitoring and enforcing a labor compliance on thousands of construction projects for Cities, Counties, Transit Authorities, Housing Authorities, Water Districts and Schools within the California Region that we serve. Through this proposal, we trust that you will understand how Alliant Consulting has become one of Southern California's most trusted providers of Labor Compliance Consultant Services. Please feel free to contact us with any questions regarding our Labor Compliance Program and Consulting Services. Thank you for your time and consideration. Sincerely, Christa J. Schott President www.alliantconsultinq.net 1 ALuANT INSULTING , INce LABOR • • MIMIANCE MONITORING Name of Firm: Alliant Consulting, Inc. Principal Office Location: 555 Cajon Street, Suite A Redlands, CA 92373 Telephone: (909) 792-8812 Fax: (909) 747-0404 Other Office Locations: 44300 Lowtree Avenue, Suite 116 Lancaster, CA 93534 2815 Camino Del Rio South, Suite126 San Diego, CA 92108 Website Address: www.alliantconsulting.net Form of Organization: California Corporation Certified California Small Business Primary Contacts: Christa Schott, President Vickie Westfall, Vice President Organization Details: 1 President 1 Vice President 1 Labor Compliance Director 1 Office Manager (FT) 1 Labor Compliance Manager (FT) 7 Labor Compliance Consultants (6 FT, 1 PT) Services: Alliant Consulting specializes in providing Labor Compliance Program monitoring and enforcement services. Years in Business: Alliant Consulting has been providing Labor Compliance services for over 8 years, since the state's DIR approval of its LCP in 2003. Principle Contact: Christa Schott, President. Alliant Consulting has superior knowledge of the prevailing wage and apprentice- ship requirements under California law. Since LCP's were introduced on April 1, 2003, Alliant Consulting has been successfully monitoring and enforcing an LCP on more than $1 billion of combined construction projects for Water Districts, School Districts, Utilities, Counties and Cities within the Southern California Region that we serve. 2 Alliant Consulting, Inc. Consulting Services Alliant Consulting recognizes the dilemmas that California Districts and Agencies are facing in becoming AB 1506 compliant in order to receive their proper funds from the Proposition 47, 50, 55, 84 and future bond measures. Alliant Consulting provides the State approved third party Labor Compliance Consultant Services to actively initiate and enforce labor compliance on behalf of the Awarding Agency that uses State funds on their construction projects. Alliant Consulting knows that a Labor Compliance Program (LCP) must be approved by the Department of Industrial Relations before their implementation and enforcement on a public works construction project. Alliant presently has such an Agency adopted and approved LCP but can also use the Agency's own LCP as a third party consultant. Alliant Consulting encourages a team approach for the implementation and enforcement of the Labor Compliance Program and Certified Payroll Review (CPR) Services, working in concert with the staff of the Agency and contractor/subcontractor representatives to ensure the applicable legal requirements for both sides are met. While Alliant Consulting's primary focus is on the LCP implementation and enforcement and CPR review, our staff (with bilingual capabilities) is familiar with State and Federal laws and regulations, including the Labor Code, Public Contract Code, Apprenticeship Standards, California Code of Regulations and OSHA standards, all of which aid in their monitoring and enforcement duties. Because of our established experience within the construction and modernization industry, Alliant Consulting has superior knowledge of the prevailing wage and apprenticeship requirements under California law. Since LCP's were introduced on April 1, 2003, Alliant Consulting has been successfully monitoring and enforcing an LCP on thousands of various types of construction projects within Southern California including airports, cities, counties, schools, utilities and housing projects. Alliant Consulting Labor Compliance Consultant Services can help solve the problems that many Agencies face in all aspects of the LCP process from concept to completion in their construction projects. 3 Alliant Consulting, Inc. Staffing Resources Personnel Assigned to the City of Cathedral City The primary contact for the City of Cathedral City will be the assigned Labor Compliance Director/Manager who in conjunction with his or her other duties, will function as a liaison between the City, the contractors and the Alliant Consulting team. One Labor Compliance Consultant will be assigned to every $35 million worth of work. The project(s) will be managed primarily from our office in Redlands, CA, but also utilizing the resources of the other Alliant Consulting offices located in Lancaster and San Diego, CA as required. Management At the helm of Alliant Consulting is a group of management professionals who each have established careers in the construction industry. Most of these individuals began their careers in the field and have specific, first hand knowledge of the trades and field operations. This allows our management staff to provide knowledgeable leadership to the various project teams and remain proactively involved in the day to day operations of each project, assuring their timely progress and completion. As building and maintaining long-term client relationships is a cornerstone of Alliant Consulting's success, we know that it can only be achieved by offering unparalleled service to clients and continued training to employees. Through ongoing training programs and active participation in DIR (Department of Industrial Relations) workshops, Davis-Bacon compliance workshops and DLSE, CDBG, and local compliance meetings, the Alliant Consulting team stays up to date on new and upcoming developments in the State funding process and the legal requirements for modernization and new construction programs. 4 Alliant Consulting, Inc. Resumes/Team Member Experience CHRISTA J. SCHOTT President, Alliant Consulting, Inc. Christa J. Schott is an experienced labor compliance expert whose company focuses on monitoring and enforcing prevailing wage laws on publicly funded construction projects in the state of California. As President of Alliant Consulting, Inc., she developed and oversees the Department of Industrial Relations (DIR) approved Labor Compliance Program (LCP) to actively monitor and enforce an LCP on behalf of awarding agencies such as School Districts, Housing Authorities, Water Utility Agencies and Cities to ensure proper payment of prevailing wages and benefits, use of registered Apprentices, payment of taxes, proper licensing, proper classification and payment of overtime and holiday pay. Ms. Schott has been involved in public works construction and in charge of certified payroll compliance for over fourteen years, owning her company for eleven. Her experience includes working with general and electrical contractors and State, Federal, and Local authorities within five counties in Southern California. Ms. Schott oversees a staff of 12 people in three offices and is involved in every aspect of the Company, overseeing the compliance process from pre-bid through the hearing and wage/penalty collection phases. In addition to attending dozens of training workshops and seminars over the past eight years, Ms. Schott has held presentations and led workshops regarding labor compliance enforcement for the Associated General Contractors of America, the Coalition for Adequate School Housing, the California Association of School Business Officials, the National Association of Women in Construction and for multiple contractors and public agencies. Education Azusa Pacific University University of Pittsburgh Professional Affiliations Coalition for Adequate School Housing (CASH) California Association of School Business Officials (CASBO) National Association of Women in Construction (NAWIC) CASH Board Working Group on Labor Compliance Institute of Journalism, Washington, D.C. Leadership Moreno Valley Contact Information Address: 2815 Camino Del Rio South, Suite 126, San Diego, CA 92108 Phone: 909-792-8812, Fax: 909-747-0404, Email: Christa@alliantconsulting.net 5 Alliant Consulting, Inc. Management Vickie Westfall Vice President Vickie Westfall is a seasoned labor compliance expert who's more than ten years of enforcement experience overseeing Public Works construction projects is utilized to maximize the benefits to Districts and Contractors alike. She contributes her expertise in the development and presentation processes for educational training in the form of pre-bid presentations, pre-construction ' v conferences, workshops, and private consulting. Vickie manages the Lancaster office and is responsible for overseeing all Labor Compliance projects in the Los Angeles Antelope Valley region, as well as many within the Imperial, Orange, San Bernardino, and Riverside counties. In addition to preparing proposals and contracts, Vickie conducts pre-bid presentations and pre-construction conferences, conducts site interviews, reviews certified payrolls, and investigates and audits documents and correspondence for possible errors. Vickie has extensive audit experience ranging from the initial review of paperwork and going through the entire audit process, concluding with the hearing phase. This mandates a close working relationship with both State and Federal officials. Vickie has over fifteen years of customer service experience and twelve years of office management experience, including four years of construction management / payroll administration experience. Vickie has a Bachelor of Science Degree from the University of Southern California, and continues her professional education by attending DOL, DIR, HUD/Housing, and Utility District sponsored workshops. Carla De La Cruz t Labor Compliance Director Carla is currently monitoring Labor Compliance projects in the San Bernardino, Riverside, Imperial and Orange County areas where the Redlands office is enforcing Labor Compliance. These projects include the school districts of Saddleback Valley, Chino Valley, Rim of the World, Beaumont, Magnolia, Brawley and Seeley Union school districts. Aside from the school district, Carla is responsible for overseeing labor compliance with other public awarding agencies including Coachella Valley Housing Coalition, Inland Empire Water Utilities Agency, East Valley Water District, and Linc Housing Development. Currently as Labor Compliance Director, she is responsible for ensuring compliance requirements for the different types of funding (Section 3, Section 8, HOME, HUD, ARRA, TCAC, and CDBG), reviewing Certified Payroll Reports, verifying that the appropriate Prevailing Wage rates are paid, looks at possible errors for audit and ensuring that contractors are compliant. In addition, she conducts site interviews, attends pre-bid, pre-con and Agency meetings, and conducts prevailing wage consultation services to contractor and/or private companies. Carla has five years experience in labor compliance from going through the audit and investigation process to submitting report of action to the State Labor Commissioner. Carla is a licensed Notary Public and has a Bachelor of Science Degree in Accounting. 6 Alliant Consulting, Inc. Experience and Client References Alliant Consulting prefers quality over quantity which is evident in our performance. Our project and staff growth for the past ten years has been strong but steady. Alliant Consulting will not take on a project that it cannot complete in a timely manner. Additional staff members will be hired and trained before Alliant Consulting will accept a new project should the project be anticipated to be large enough to be straining the resources of the existing staff. We strive to keep a seven day maximum timeframe of certified payroll review and have never had work we could not complete. Client References: Amy Hall-McGrade City of Covina 125 East College Street Covina, CA 9172 ahallmcgradeOcovinaca.gov (626) 384-5335 Sharlane Bailey Foothill Transit 100 S. Vincent Ave. Suite 200 West Covina, CA 91790 sbaileyPfoothilltransit.org (626) 931-7253 Josie Ripoly Moreno Valley Unified School District 25634 Alessandro Blvd., Moreno Valley, CA 92553 jriploy@mvusd.k12.ca.us (951) 571-7500 Noemi Avila Saddleback Valley Unified School District 25631 Peter A. Hartman Way Mission Viejo, CA 92691 Noemi.avila@svusd.org (949) 580-3250 Additional references available upon request 7 Additional References Available on Request Alliant Consulting, Inc. Method to Accomplish the Work All Inclusive Services I. Education Phase 1. Project LCP Meeting Alliant Consulting shall conduct or attend a job start meeting with the Prime Contractor, all listed subcontractors, and a representative of the City. At this meeting, the applicable federal and state labor laws and the contractual obligations of the LCP will be discussed, and a summary of the requirements will be signed by representatives of the Prime Contractor, all subcontractors, the City, and Alliant. A copy of the LCP and project-specific related documents, as well as applicable blank forms, will be prepared and distributed to the Contractor and the City. 2. Outreach Activities In addition, to presentations at all job start meetings, Alliant Consulting shall provide in-service training to City personnel regarding payroll collection and review, and LCP enforcement. Upon request, Alliant is available to conduct workshops with local contractors interested in public works projects within the City of Cathedral City. II. Monitoring and Review Phase 3. Collection and Review of Certified Payrolls Alliant Consulting shall request and ensure receipt of weekly certified payroll records of all workers from the Contractor on each project. The listed wage rate for every worker will be compared to the prevailing wage rates posted by DIR for each trade and work classification. Apprentice hours will also be checked to ensure proper standards are met. Any discrepancies, omissions, or inaccuracies in the submitted payrolls will be noted, and Alliant shall request, via certified mail, immediate clarification, or correction from the Contractor. On-going, regular 8 communication with the Contractors and City of Cathedral City is intended to help keep violations to a minimum. Alliant Consulting, Inc. Method to Accomplish the Work 4. Site Monitoring Alliant Consulting shall obtain work schedules from the Contractor for each project and provide them to site monitors in order to better coordinate site visits and increase efficiency, while minimizing impact on the productivity of the workers. Site interview forms will be provided to the monitors, for their use in conducting random work site interviews with 2-3 workers per contractor. These site visits will occur weekly as mandated by the State or more often as necessary to investigate possible violations or claims filed by workers. Alliant shall enter the information collected during these on-site interviews into a database for future reference and for use in performing audits of the payroll records, if necessary. Ill. Audit and Investigation Phase 5. Investigation and Audit of Certified Payrolls Alliant Consulting shall promptly investigate any unresolved violations or claims of inadequate payment of wages or fringe benefits made by workers. Paycheck stubs, time cards, daily logs, and any other applicable payroll records may be requested from the Contractor and subcontractors, and will be compared with the submitted certified payrolls for that project. Alliant shall conduct additional worker interviews, and maintain an open line of communication with workers on the project site in question. In addition to investigating payment of prevailing wage rates and benefits, Alliant shall audit workers' compensation insurance coverage, apprenticeship training, and trust contributions, work hour records including overtime wages, and illegal taking of wages (kickbacks). 9 Alliant Consulting, Inc. Method to Accomplish the Work IV. Enforcement Phase 6. Report to Department of Industrial Relations In the event that a violation is not remedied within 10 days of notification to the Contractor, Alliant shall prepare a report to the DIR describing the alleged violation, including the audit forms, and supporting documentation. The report will be accompanied by a Notice of Transmittal of the violation, as well as a recommendation for withholding of payments and penalties, if applicable. The affected Contractor will also receive a copy of this report, along with a Notice of Right to Review Evidence. In the event that a Contractor is found to have committed a willful violation of the Labor Codes applicable to the LCP, Alliant may submit a report to the City and Labor Commissioner recommending debarment of that Contractor from bidding on or being awarded any public works contract for up to three years. 7. Withholding and Forfeiture Upon approval of the amount of forfeiture, including underpayments and penalties, by the Labor Commissioner, Alliant Consulting shall authorize the withholding of contract payments to the Contractor. Alliant shall send, by certified mail, a Notice of Withholding of Contract Payments to the Contractor and DIR, as well as a Notice of Right to Review in Formal Hearing to the Contractor. After receiving final approval from DIR, Alliant shall facilitate disbursement of forfeitures to the appropriate District and State funds. to { Alliant Consulting, Inc. Method to Accomplish the Work V. Hearing Phase 8. Hearing Review Upon receipt of a Notice of Right to Review, a Contractor may request a formal hearing to review the withholding of contract payments. Alliant Consulting shall collect and transmit to DIR the appropriate documentation, and work with the attorneys to properly prepare for the review. Alliant shall represent the City Agency at pre-hearing conferences, settlement meetings, and formal hearings, as necessary, to bring the matter to conclusion. The City's own attorney may be required in this case as Alliant is not a legal firm. Alliant Consulting will do everything possible to prevent a case from entering a Hearing Phase. VI. Annual Report Phase 9. Annual Report to DIR Alliant Consulting shall submit to the Director of DIR, on behalf of the City, an annual report on the operation of its Labor Compliance Program within sixty (60) days after the close of its fiscal year. The annual report shall contain, at the minimum, the following information: 1. The number of public works contracts awarded using Bond Act funds, and their total value; 2. A summary of wages due to workers resulting from failure by contractors to pay prevailing wage rates, the total amount withheld from money due to the contractors, and the total amount recovered by action in any court of competent jurisdiction; 3. A summary of penalties and forfeitures imposed and withheld, or recovered in a court of competent jurisdiction; 4. The number, description, and total value of contracts awarded that are exempt from requirements of payment of prevailing wages, if any. 11 Alliant Consulting, Inc. Fee Schedule and Proposed Not to Exceed Amount for the Cathedral City Whitewater Park Project Alliant Consulting proposes to provide full Labor Compliance Monitoring and Enforcement services pursuant to requirements of Proposition 84 projects. Our hourly rates are inclusive of all time, materials, phone calls, equipment and data for providing such services. Our site interview rate is inclusive of all mileage, fuel, insurance and drive time to conduct weekly site interviews throughout the duration of the project. The interview rate is also inclusive of all site interview summaries. Alliant Consulting proposes to be compensated for services provided pursuant to the rates below: For full LCP implementation, Alliant Consulting's fee is based on the following: Labor Compliance Program =$31500(waived for repeat client discount) Payroll review, $65.00/ hr for est. 6 hours per week for 9 months duration = $15,198 Weekly site interviews, $360 per month for 8 months =$2,880 NOT TO EXCEED TOTAL: $18,078 *This fee schedule and not to exceed proposal is good for one year, and is good for this project only. For extension of services due to project delays, change orders or additional services past grant requirements, Alliant Consulting will honor the same hourly amount but the Not to Exceed amount will be changed to reflect the changes in Scope of Work. Alliant Consulting's monitoring cost will cover the pre-bid and pre-construction meetings, full review of certified payroll, on-going communication to affected parties for resolution of any issues, issuance of reports to the state for non-compliance if necessary, site interviews, and routine compliance reports as mandated by the City of Cathedral City. Fees for Hearing Review Should a case be prepared by Alliant for withholding and/or litigation that leads to a Hearing for a noncompliant Contractor over the normal Scope of Work due to Hearing, it will result in additional costs of$85 per hour, plus direct material expenses. These costs will not be included unless there is a case where a litigation package must be prepared for the State's formal review of forfeitures and withholding. Every effort will be made by Alliant Consulting to keep the Contractor in compliance with the laws of the Labor Codes in California. Menu of Services Personnel hours required for Phase III Audit and Investigation, Phase IV Enforcement, Phase V Hearing Review, and Phase VI Annual Report are dependent upon the compliance of the Contractors on each project. All services listed in the Proposed Method to Accomplish Work, will be provided solely by Alliant Consulting, Inc. 12 Alliant Consulting, Inc. Other Information Alliant Consulting, Inc. has never in its history been terminated or replaced by another firm on any project or failed to complete a project. Projects are completed on time and within budget unless affected by factors beyond our control such as noncompliant contractors who are taken through the Hearing process. Alliant Consulting, Inc. a privately held and financially sound, profitable firm, has grown carefully and steadily over an eleven year period utilizing sound, conservative accounting procedures. Financial Statements, provided upon request, are prepared by Cooper & Associates of San Diego, California. 13