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HomeMy WebLinkAbout FULL AGENDA PACKET_2021-05-04City Council Meeting Packet May 4, 2021 CLOSED SESSION MEETING - 5:00 PM REGULAR OPEN MEETING - 5:45 PM (Immediately following the Closed Session Meeting) CITY COUNCIL CHAMBER 22 Civic Center Plaza Santa Ana, CA 92/01 $,,r! I 'm p.r•n,%m, ^; .. . I ,,Bv e i,l I r 9 [pf Cn— i,. "a+. ° rpr dlAr r. m raf p n:: A ll '+gip '`o/.. P mrn I i UU U 3 r� r, U r i" ¶ at n U p,,, U i c, T Irfw 11 Vicente Sarmiento Mayor Thai Viet Phan Councilmember —Ward 1 Jessie Lopez Councilmember- Ward 3 Johnathan Ryan Hernandez Councilmember- Ward 5 David Penaloza Mayor Pro Tcm - Ward 2 Phil Bacerra Councilmember- Ward 4 Nelida Mendoza Councilmember- Ward 6 Mayor and Council telephone: 714-647-6900 Agenda item inquiries: 714-647-6520 Sonia R. Carvalho Kristine Ridge Daisy Gomez City Attorney City Manager Clerk of the Council In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, lacontact Michael Ortiz, City ADA Progran, Coordinator, at (714) 647-5624. Notification 48 hours prior to the Meeting will enable the City lu make reasonable arrangements to assure accessihilily to Lhis ruee.Ling. The City Council ygenda and supporting documentation can be found on the City's wohsito—www.santa-ana.org/city-meetings. City Council 1 5/4/2021 The City of Santa Ana is committed to achieving a shared vision for the organization and its community. The Vision, Mission and Guiding Principles (Values) are the result of a thoughtful and inclusive process designed to set the City and organization on a course that meets the challenges of today and tomorrow, as follows: Vision - The dynamic center of Orange County which is acclaimed for our: Investment in youth • Safe and healthy community • Neighborhood pride • Thriving economic climate Enriched and diverse culture • Quality government services Mission - To deliver efficient public services in partnership with our community which ensures public safety, a prosperous economic environment, opportunities for our youth, and a high quality of life for residents. Guiding Principles - Collaboration • Efficiency • Equity • Excellence • Fiscal Responsibility Innovation • Transparency Code of Ethics and Conduct - At the Special Municipal Election held on February 5, 2008, voters approved an amendment to the City Charter which established the Code of Ethics and Conduct for elected officials and members of appointed boards, commissions, and committees to assure public confidence. The following are the core values expressed: Integrity • Honesty • Responsibility • Fairness • Accountability • Respect • Efficiency City Council 2 5/4/2021 Due to Governor Gavin Newsom's Executive Order and the City Council's Proclamation of Local Emergency, there will be no in -person meeting location for members of the public to attend the City Council meeting. The City Council meeting will occur live via teleconference Zoom webinar. You may view the meeting from your computer, tablet or smart phone via YouTube LiveStream at,ul.vy.m/,on CTV3, available on Spectrum channel 3 and AT&T U-verse channel 99. PUBLIC COMMENTS — Members of the public who wish to address the City Council on closed session items, items on the regular agenda or on matters which are not on the agenda, but are within the subject matter jurisdiction of the City Council may do so by: 1. MAILING OPTION written communications — Public comments may be mailed to: Office of the Clerk of the Council, 20 Civic Center Plaza M-30, Santa Ana, CA 92701. All written communications received via mail by 4:00 p.m. on the day of the meeting will be distributed to the City Council and imaged into the City's document archive system which is available for public review. 2. SENDING E-MAIL OPTION — Public comments may be sent via email to the City Clerk's office at!:lrK! rr6rrsa r�l(i iir anla n .=rrc . Please note the agenda item you are commenting on in the subject line of the email. All emails received before 4:00 p.m. on the day of the meeting will be distributed to the City Council and imaged into the City's document archive system which is available for public review. 3. PROVIDING LIVE COMMENTS OPTION — Members of the public may provide live comments during the meeting by Zoom or Conference Call. To join by Zoom click on or type the following address into your web browser.Y.:l:t .;;i ((�q J?.?uy. .::zf,)j�tr,,Ual . To join the Conference Call: Dial (669) 900-9128 and enter MEETING ID: 315 965 149#. You will be prompted by the City Clerk when it is time for i) general public comment, ii) to speak on a specific agenda item or iii) for a public hearing item. You may request to speak by dialing "9 from your phone or you may virtually raise your hand from Zoom. After the Clerk confirms the last three digits of the caller's phone number or Zoom ID and unmutes them, the caller must press *6 or microphone icon to speak. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak, unless due to the number of speakers wanting to speak a decision is made to provide a different amount of time to speak. LIVE PUBLIC COMMENTS ON CLOSED SESSION ITEMS — You can provide live comments on closed session items by joining Zoom or the Conference Call as described in the LIVE COMMENTS OPTION above. Speaker queue will open at 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL BY 5:00 p.m. Speakers who are not in the speaker queue by 5:00 p.m. will not be permitted to speak. LIVE PUBLIC COMMENTS ON REGULAR AGENDA ITEMS AND NON -AGENDA ITEMS (GENERAL PUBLIC COMMEN 1) — You can provide comments byjoining Loam or the Conference Call as described in the LIVE COMMENTS OPTION above. Speaker queue will open at 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL PRIOR TO 6:00 p.m. Speakers who are not in the speaker queue by 6:00 p.m. will not be permitted to speak. City Council 3 5/4/2021 LIVE PUBLIC COMMENTS ON PUBLIC HEARING ITEMS — You can provide comments by joining Zoom or the Conference Call as described in the LIVE COMMENTS OPTION above. Speakers not in the queue by 6:00 p.m. will not be permitted to speak. About the Agenda To download or view the attachments (staff report and other supporting documentation) for each agenda item, you must select the agenda item to see the attachments to either open in a new link (the eyeball ) or download a pdf (the cloud symbol with the down arrow ). CALL TO ORDER ATTENDANCE Council Members Mayor Pro Tom Mayor City Manager City Attorney Clerk of the Council Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez Nelida Mendoza Thai Viet Phan Vicente Sarmiento Kristine Ridge Sonia R. Carvalho Daisy Gomez PUBLIC COMMENTS — Members of the public may address the City Council on Closed Session items. CLOSED SESSION ITEMS — The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: 1. CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code - A. Santa Ana Needs Equity, et al v. City of Santa Ana, et al., Orange County Superior Court, Case No. 30-2019-01113224-CU-WM-CXC B. City of Santa Ana v. County of Orange, et al, United States District Court Case No. SA CV 20-0069-DOC (DFMx) C. Orange County Catholic Worker, et al. v. Orange County, et al.., U.S. District Court (Central District of California), Case No. SA CV 18-0155-DOC (KESx) D. City of Santa Ana v. County of Orange, et al., (Cross-Cornplaint), U.S. District Court (Central District of California), Case No. SA CV 18-0155-DOC (KESx) City Council 4 5/4/2021 2. CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9 of the Government Code- One Case A. El Centro Cultural de Mexico — 831 N. Ross 3. CONFERENCE WITH REAL PROPERTY NEGOTIATOR pursuant to Government Code Section 54956.8' Address of Property: 625 S. Cypress Avenue, Santa Ana, CA 92701 (APN# 404-102- 06) Negotiators: City Manager Kristine Ridge Negotiating Party' T.R. Customs, Owner, Taylor J. Rudd Terms: Potential Sale of Cypress Fire Station CLOSED SESSION REPORT — The City Attorney will report on any action(s) to be taken at the Regular Open Session which will begin immediately following the Closed Session. RE E —City Council will recess to Closed Session for the purpose of conducting regular City business. RECONVENE — City Council will reconvene to continue regular City business. City Council 5 5/4/2021 CALL TO ORDER PLEDGE OF ALLEGIANCE Mayor Sarmiento INVOCATION Moment of Reflection — Gustavo Hernandez CEREMONIAL PRESENTATIONS 1. Certificate of Recognition presented by Mayor Sarmiento to Juan Tariffa, Bolmex Financial Group in recognition of the 30-Year Anniversary and Outstanding Contributions to the Community. 2. Proclamation presented by Mayor Pro Tern Penaloza recognizing May 9th — May 15th, 2021 as National Police Week. 3. Proclamation presented by Councilmember Lopez recognizing May as Drowning Prevention Awareness Month. STAFF PRESENTATIONS 4. COVID-19 Update in the Community. CLOSED SESSION REPORT— The City Attorney will report on any action(s) from Closed Session. PUBLIC COMMENT— Public comments will be held during the beginning of the meeting for ALL comments on agenda and non -agenda items, with the exception of public hearings. Comments for public hearings will take place after the hearing is opened. I CONSENT CALENDAR RECOMMENDED ACT/ON: Approve staff recommendations on the following Consent Calendar Items: 5 through 19. 5. Excused Absences Department(s): Clerk of the Council Recommended Action: Excuse the absent members. 6. Appoint Various Boards and Commissions Members Nominated by Councilmember Lopez as the Ward 3 Representatives for a Full Term Expiring December 10, 2024 City Council 6 5/4/2021 Department(s): Clerk of the Council Recommended Action: Appoint. 1. Dorian Romero — Fnvironmental and Transportation Advisory Commission 2. Edward Murashie— Hisloric Resources Commission 7. Quarterly Report for Housing Division Projects and Activities for the Period of January 2021 — March 2021 Department(s): Community Development Agency Recommended Action: Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of January 2021 — March 2021. S. Receive and File Standards and Guidelines for Wireless Telecommunication Facilities in the Public Right -of -Way Department(s): Public Works Agency Recommended Action: Receive and file Standards and Guidelines for Wireless Telecommunication Facilities in the Public Right -of -Way. 9. Approve an Appropriation Adjustment to Recognize $100,000 of Estimated Revenues in Fiscal Year 2020-21 from CIP Construction Permits Department(s): Public Works Agency Recommended Action: Approve an appropriation adjustment to recognize an estimated $100,000 of receipts from Capital Improvement Program (CIP) construction permit fees into the Public Works Agency, CIP Construction Projects Permits revenue account and appropriate the same amount into the Public Works Agency Services, Contract Services-PWA CIP Construction Permits expenditure account for consultant services to provide labor oversight on the Community Workforce Agreement for CIP construction projects. (Requires five affirmative votes) 10. Award a Purchase Order Contract for the Purchase of 100 Combination Waste - Recycle Receptacles for City I rails to Outdoor Creations, Inc. in an Amount Not to Exceed $214,130 (Specification No. 21-056) (General Fund) Department(s): Parks, Recreation, and Community Services Recommended Action: Authorize a one-time purchase and payment of purchase order contract for 100 combination waste -recycle receptacles for City trails to Outdoor Creations, Inc. in the amount of $214,130, subject to non -substantive changes approved by the City Manager and City Attorney. 11. Award Blanket Purchase Order Contracts for Zoo Animal Feed, Hay, and Tack to Newco Distributors, Midway City Feed Company, Inc., and Kruse Feed & Supply, Inc. in an Annual Aggregate Amount Not to Exceed $35,000 for up to a Five -Year Term City Council 7 5/4/2021 (Specification No. 21-035) (General Fund) Department(s): Parks, Recreation, and Community Services Recommended Action: Award blanket purchase order contracts for zoo animal hay feed, and lack to Newco Distributors, Midway City Feed Company, Inc., and Kruse Feed & Supply, Inc. in an annual aggregate amount of $35,000 for a one-year period beginning June 1, 2021 and expiring May 31, 2022, with provisions for four, one-year renewal options exercisable by the City Manager, subject to non -substantive changes approved by the City Manager and City Attorney. 12. Award a Purchase Order to PSI Water Technologies, Inc. for Hypochlorite Generator Units and Equipment in an Amount not to Exceed $3,300,000 (Specification 21-013) (Non -General Fund) Department(s): Public Works Agency Recommended Action: Award a blanket order contract to PSI Water Technologies, Inc. for hypochlorite generator units, in an annual amount not to exceed of $660,000, for a two-year period beginning May 4, 2021 and expiring May 3, 2023, with provisions for three one-year renewal periods exercisable by the City Manager and City Attorney, for a total not -to -exceed amount of $3,300,000, subject to non - substantive changes approved by the City Manager and City Attorney. 13. Award a Contract to Pacific Mobile Structures, Inc. for a Modular Restroom Building at the Centennial Park Training Facility for a Five -Year Period in the Amount of $126,758 (Specification No. 21-057) (General Fund) Department(s): Police Department Recommended Action: Award a contract to Pacific Mobile Structures, Inc. for the lease of a new modular restroom building at the Centennial Park Training Facility, for the period of June 1, 2021 through May 31, 2026, in an amount not to exceed $126,758, subject to non -substantive changes approved by the City Manager and City Attorney. 14. Approve an Amendment to Fiscal Year (FY) 2020-2021 Emergency Solutions Grant (ESG) Memorandum of Understanding (MOU) Agreement with Santa Ana Police Department HEART Program for Additional Street Outreach and ESG Subrecipient Agreement with 2-1-1 Orange County for HMIS Data Collection (Non -General Fund) Department(s): Community Development Agency Recommended Action: 1. Authorize the City Manager to execute an amendment to the Santa Ana Police Department HEART Program Memorandum of Understanding to increase the amount of the agreement by $7,954 for program year July 1, 2020 — June 30, 2021 for additional street outreach activities, subject to non -substantive changes approved by the City Manager and City Attorney (Agreement No. 2021- XXX). City Council 8 5/4/2021 2. Authorize the City Manager to execute an amendment to the 2-1-1 Orange County Subrecipient Agreement to increase the amount of the agreement by $6,248.40 for program year July 1, 2020 — June 30, 2021 for additional Homeless Management Information Systems data collection, subject to non -substantive changes approved by the City Manager and City Attorney (Agreement No. 2021-XXX). 15. Approve Agreement with CliftonLarsonAllen LLP for Professional Auditing Services in an Aggregate Amount Not to Exceed $759,245, for Up to a Four -Year Term (General and Non -General Fund) Department(s): Finance and Management Services Recommended Action: Authorize the City Manager to execute an agreement with CliftonLarsonAllen LLP for professional auditing services, for a two-year period beginning with the fiscal year -ending June 30, 2021 and June 30, 2022, with a provision for one two-year renewal for the fiscal year -ending June 30, 2023 and June 30, 2024, for a total aggregate amount not to exceed $759,245, subject to non - substantive changes approved by the City Manager and City Attorney (Agreement No. 2021-XXX). 16. Approve a Resolution, Appropriation Adjustment and Agreement for Fiscal Year 2021 Homeland Security Grant Program Funding in the Amount of $4,993,750 (Non - General Fund) Department(s): Police Department Recommended Action: 1. Resolution No. 2021-XXX —Adopt a resolution authorizing the City Manager and the Chief of Police, or his dcsignce(s), to enter into an agreement with the State of California, California Governor's Office of Emergency Services (Cal OES) for the FY2021 Urban Areas Security Initiative (UASI) funding program, for the period of October 1, 2021 through September 30, 2024, in the amount of $4,993,750, of which $715,000 is obligated to the Orange County Intelligence Assessment Center. 2. Direct the City Attorney to prepare and authorize the Chief of Police and the Clerk of the Council to enter into reimbursement agreements for all grant related program and project activities, to include planning, organization, equipment, training, exercise, and management and administration costs, with the County of Orange or any of the cities located in the designated Anaheim/Santa Ana Urban Area subject to non - substantive changes approved by the City Manager and City Attorney (Agreement No. 2021-XXX). 3. Approve an Appropriation Adjustment recognizing $4,993,750 in the FY 2021 Urban Area Security Initiative revenue account and appropriate same to expenditures accounts. (Requires five affirmative votes) 17. Adopt a Resolution to Provide for Continuation of Partially Paid Temporary Military Leave of Absence for City Employees Called to Active Duty with the Armed Forces and Continuation of Benefits for Employees and Their Eligible Dependents City Council 9 5/4/2021 Department(s): Human Resources Recommended Action: Resolution No. 2021-XXX — Adopt a resolution authorizing the City Manager to continue to provide additional partially -paid temporary military leave of absence and benefits for City employees and their eligible dependents called to active duty with the armed forces. 18. Adopt a Resolution Authorizing a Grant Application Submission for Funding from the Proposition 68 Urban Flood Protection Program for the Downtown Flood Reduction and Stormwater Infiltration Project Department(s): Public Works Agency Recommended Action: Resolution No. 2021-XXX — Adopt a resolution authorizing the Executive Director of the Public Works Agency to submit a grant application to the California Natural Resources Agency for the Downtown Flood Reduction and Stormwater Infiltration Project, in an amount of up to $3.805 million subject to non - substantive changes approved by the City Manager and City Attorney (Agreement No. 2021-XXX). 19. Authorize a Budget Reallocation in the Amount of $41,937 for the Grant -Funded Westminster Avenue / 17th Street Regional Traffic Signal Synchronization Project (No. 16-6869) (Non -General Fund) Department(s): Public Works Agency Recommended Action: Authorize Reallocation of $31,306 in unspent Measure M2 Local Fairshare funds from the Bristol St. Traffic Signal Synchronization Project (No. 15-6829) and $10,631 from the Traffic Safety Project (No. 21-6905) for a total of $41,937 to fulfill the City matching funds requirement for the Westminster Avenue / 17th Street Regional Traffic Signal Synchronization Project (No. 16-6869). **END OF CONSENT CALENDAR** I BUSINESS CALENDAR 20. City Council Fiscal Year 2021-22 Budget Workshop Session Department(s): Finance and Management Services Recommended Action: Provide additional direction to staff. as needed. 21. Resolution Declaring the City of Santa Ana's Support for Assembly Bill 937 (the "VISION Act") Department(s): City Manager Office City Council 10 5/4/2021 Recommended Action: Resolution No. 2021-XXX —Adopt a resolution supporting Assembly Bill 937 (the "VISION Act'). **END OF BUSINESS CALENDAR** 22. Public Hearing —Approve the Fiscal Year 2021-2022 Annual Action Plan and Budgets for the Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant, and Authorize Submission to the U.S. Department of Housing and Urban Development Legal Notice published in the Orange County Register, La Opinion and Nguoi Viet on April 9, 2021. Department(s): Community Development Agency Recommended Action: 1. Approve the Fiscal Year 2021-2022 Annual Action Plan and authorize the submission of the Fiscal Year 2021-2022 Annual Action Plan to the U.S. Department of Housing and Urban Development. 2. Approve the Fiscal Year 2021-2022 budgets for the Community Development Block Grant Program in the total amount of $6,171,499 that includes $5,558,720 from Grant Year 2021 allocation and a re -allocation of $612,779 in prior -year program funds; HOME Investment Partnerships grant in the amount of $1,706,231 from the Grant Year 2021 allocation; and Emergency Solutions Grant in the amount of $489,141 from the Grant Year 2021 allocation. 3. Direct the City Attorney to finalize and authorize the City Manager to execute memorandums of understanding with various City departments awarded funds as part of the approved Community Development Block Grant program budget for a term beginning July 1, 2021 through June 30, 2022, subject to non -substantive changes approved by the City Manager and City Attorney (Agreement No. 2021-XXX). 4. Direct the City Attorney to finalize and authorize the City Manager to execute a memorandum of understanding with the Santa Ana Police Department and agreements with non-profit homeless service providers awarded funds as part of the approved Emergency Solutions Grant program budget for a term beginning July 1, 2021 through June 30, 2022, subject to non -substantive changes approved by the City Manager and City Attorney (Agreement No. 2021-XXX). 23. Public Hearing- Zoning Ordinance Amendment (ZOA) No. 2021-01 to Amend Sections 41-472 and 41-472.5 of the Santa Ana Municipal Code (SAMC) to Require a Conditional Use Permit (CUP) for Light Processing Facilities as Defined by (SAMC) 41-1250 (d) Legal Notice published in the Orange County Reporter on April 23, 2021. Department(s): Planning and Building Agency City Council 11 5/4/2021 Recommended Action: Ordinance No. NS-XXXX — Approve ZOA No. 2021-01 to adopt an Urgency Ordinance to amend Sections 41-472 and 41-472.5 of the Santa Ana Municipal Code (SAMC) to require a conditional use permit (CUP) for Light Processing Facilities in the I ight Industrial (M-1) coning district. (Requires five affirmative votes) COUNCILMEMBER REQUESTED ITEMS 24. Discuss and Consider Directing the City Manager to Direct Staff to Prepare a Resolution Declaring the City Of Santa Ana's Support for Senate Bill 2 (Wiener) for Consideration by the City Council — Mayor Sarmiento and Councilmembers Lopez and Phan 25. Discuss and Consider Directing the City Manager to Direct Staff to Expand the Sunshine Ordinance — Councilmember Lopez 26. Discuss and Consider Directing the City Manager to Direct Staff to Look Into Project Roomkey or Alternative Housing — Councilmember Hernandez 27. Discuss and Consider Directing the City Clerk to Take the Appropriate Action Necessary to Resume the Option of In -Person Participation for Members of the Public at City Council Meetings to Allow for Formal and Robust Participation During the Budget Process — Mayor Pro Tern Penaloza CITY MANAGER COMMENTS ADJOURNMENT— Adjourn the City Council meeting and convene to the Housing Authority meeting. 1. Solid Waste Services Work Study Session 2. Carnegie Shelter Operator 3. Reasonable Accommodation and Group Homes Regulatory Update City Council 12 5/4/2021 CALL TO ORDER ATTFNDANCF Authority Members Vice Chair Chair City Manager City Attorney Clerk of the Council Phil Bacerra Johnathan Ryan Hernandez Jessie Lopez Nelida Mendoza Thai Viet Phan David Penaloza Vicente Sarmiento Kristine Ridge Sonia R. Carvalho Daisy Gomez PUBLIC COMMENTS — Members of the public may address Housing Authority on items on the Housing Authority agenda. I CONSENT CALENDAR RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 1 through 5. 1. Excused Absences Department(s): Clerk of the Council Recommended Action: Excuse the absent members. 2. Receive and File the Quarterly Report for the Housing Choice Voucher Program for the Period of .January 2021 to March 2021 Department(s): Community Development Agency Recommended Action: Receive and file the Quarterly Report for the Housing Choice Voucher Program for the period of January 2021 to March 2021. 3. Approve an Agreement with Happy Software, LLC for Housing Authority Management Software Department(s): Community Development Agency Recommended Action: Authorize the Executive Director of the Housing Authority to execute an agreement with Happy Software, LLC to provide housing authority management software services beginning June 1, 2021 and expiring May 31, 2024, for City Council 13 5/4/2021 a total amount not to exceed $200,000 over a three-year period, subject to non - substantive changes approved by the Executive Director and Authority General Counsel. 4. Approve an Agreement with Nan McKay and Associates, LLC for Housing Authority Case Management Service Department(s): Community Development Agency Recommended Action: Authorize the FxeCUtlVe Director of the Housing Authority to execute an agreement with Nan McKay and Associates, Inc. to provide case management services for the Housing Authority beginning May 4, 2021 and expiring April 30, 2024, for a total amount not to exceed $300,000 over a three-year period, subject to non -substantive changes approved by the Executive Director and Authority General Counsel. 5. Approve a First Amendment to the Memorandum of Agreement for Inter -Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority, and Garden Grove Housing Authority Department(s): Community Development Agency Recommended Action: Authorize the Executive Director of the Housing Authority to execute a First Amendment to the Memorandum of Agreement for Inter -Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority, and Garden Grove Housing Authority effective May 4, 2021, subject to non -substantive changes approved by the Executive Director and the Housing Authority General Counsel. 211 RX01 M907L PWk 4.46 ADJOURNMENT— Adjourn the Housing Authority meeting. City Council 14 5/4/2021 Community Development Agency https://www.santa-ana.org/cd Item # 7 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Quarterly Report for Housing Division Projects and Activities AGENDA TITLE: Quarterly Report for Housing Division Projects and Activities for the Period of January 2021 — March 2021 RECOMMENDED ACTION Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of January 2021 — March 2021. DISCUSSION This report for the quarter ending on March 31, 2021 provides statistics for all of the affordable housing projects and activities for the Housing Division. The report is divided into four sections: Loan Activity, Loan Portfolio Management and Monitoring, Affordable Housing Funds and Commitments, and Development Projects. Loan Activity Applications The Housing Division offers several different programs including down payment assistance for first-time homebuyers and rehabilitation loans for mobile homes, single- family, multi -family, and historic homes. Inquiries are received from the public and applications are mailed out, received, and approved for these programs on a continual basis. Table 1 shows the number of inquiries, applications sent out, received, and approved by type for the quarter and for the total fiscal year. Table 1: Applications Sent Out, Received & Approved Program Inquiries Applications Sent Out Applications Received Applications Approved Q3 1 Total FY Q3 Total FY 03 Total FY Q3 Total FY Single—FamilySingle-Farnily Rehabilitation 12 36 10 32 1 1 0 0 Mobile Home Rehabilitation 0 14 0 13 1 0 0 0 Multi -Family Rehabilitation 0 0 0 0 0 0 0 0 Historic Home Restoration 0 1 0 1 0 0 0 0 Homeownership / DPAP 14 40 14 34 6 11 3 6 Loan Suburdinations 5 17 5 17 5 17 5 17 City Council 7-1 5/4/2021 Quarterly Report for Housing Division May 4, 2021 Page 2 The number of applications received is typically lower than the number of applications sent out in any given period due to the stringent program guidelines for eligibility regulated by the federal government, which makes it difficult for most applicants to qualify. Due to the Coronavirus pandemic (COVID-19), application processing for the Single -Family and Mobile Home Rehabilitation Program continues to be on hold during the third quarter. There are currently nine (9) applications for the Single -Family Rehabilitation Program and four (4) applications for the Mobile Home Rehabilitation Program currently on hold. Homeowners who have second liens with the City of Santa Ana have been interested in refinancing their first lien mortgage to take advantage of the low interest rates. When the first lien is refinanced, it is necessary for the City to subordinate its second lien. During the third quarter, five (5) requests for subordination were received, approved, and processed. Rehabilitation Loan Underwriting and Approval Progress During this quarter, no mobile home rehabilitation loans were funded due to the program being on hold. Rehabilitation Program Construction Progress Homeowners receiving rehabilitation loans are guided through an open selection of contractors to complete the work on their homes. Each homeowner is given a list of contractors that have been screened by staff for license and insurance requirements. However, homeowners are allowed to select any contractor that meets these same requirements. Staff assists the homeowners with the evaluation of bids and selection of a contractor. Staff also monitors the construction work, approves payments to contractors, and tracks expenditures to ensure compliance with the loan agreement and program guidelines. During [his quarter, zero (0) addiLional homes were completed. Down Payment Assistance Loan Program (DPAP) Progress For the Down Payment Assistance Loan Program, staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program guidelines and requirements established by the U.S. Department of Housing and Urban Development (HUD). During this quarter, staff conducted three (3) down payment assistance virtual workshops via Zoom with 47 attendees. Two (2) down payment assistance loans closed escrow. Six (6) down payment assistance applications were received and three (3) applications were approved. Loan Portfolio Management & Monitoring The Housing Division is responsible for managing the residential loan portfolio, which includes all of the loans entered into by the City and Housing Authority acting as the Housing Successor Agency. As of the end of the third quarter, the principal balance was $136,791,474.75. This is composed of 368 loans, of which 345 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated $432,499.80 in City Council 7-2 5/4/2021 Quarterly Report for Housing Division May 4, 2021 Page 3 payments of principal and interest during the third quarter. The amount of residual receipts payments changes every quarter. Table 2: Portfolio Revenue Funding Source HOME CDBG Redevelopment NSP CaIHOME Loan Payoffs 0 0 0 $10,491 0 Residual Receipts Payments $220.969 0 $118 051 $47,271 0 Amortized Loan Payments $2,885 $7,681 $19,149 0 $5,000 Total for Q3 $223,855 $7,681 $137,200 $57,762 $5,000 Monitoring As part of the requirements for these funds, staff must monitor the owner -occupancy of single-family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 65 owner - occupancy recertification letters were mailed and 49 were returned and processed. This number includes letters sent from previous months - On -site compliance monitoring of the tenant files was not conducted this quarter due to COVID-19. HUD has temporarily waived the requirement for ongoing periodic inspections of HOME -assisted rental housing through September 30, 2021. Available Funds and Land Assets for Affordable Housing Development Projects The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency manages multiple sources of local, state and federal funds to promote and facilitate the development of affordable housing as well as land assets held by the Housing Authority. Exhibit 1 provides a summary of the funds available as of March 31, 2021. Exhibit 2 provides a summary of available land assets. Housing Opportunity Ordinance On -Site Development. Since 2011, a total of 33 units have been developed on -site as a result of the Ordinance, including 23 ownership units for -sale and 10 rental units: Units Built On -Site Ownership Rental Total 23 ±77 10 33 Regulatory agreements have been signed with two market rate developments that will Wild 30 additional rental units on -site affordable to very -low income households. In -Lieu Fees Generated: All in -lieu fees, penalties and other monies collected pursuant to the Housing Opportunity Ordinance, including interest, are deposited into the Inclusionary Housing Fund. Since City Council 7-3 5/4/2021 Quarterly Report for Housing Division May 4, 2021 Page 4 inception, the Inclusionary Housing Fund has generated $21,510,125 to be used for the development of housing affordable to low- and moderate -income households, with a reasonable amount spent on administrative or related expenses associated with the administration of the Housing Opportunity Ordinance. In -lieu fees generated have been used to develop new affordable housing opportunities, provide emergency shelter, and create homeownership opportunities. Below is a summary of how in -lieu fees have been used by the City: Project Inclusionary Housing # of Units Address Funds Spent Santa Ana Arts Collective $4,775,000 57 1666 N. Main Street Tiny Tim Plaza $1,300,000 50 2239 West 5th Street The Link Interim $4,140,295 N/A 2320 S Rcdhill Avcnuc Emergency Shelter TOTAL $10,215,295 107 Project Inclusionary Housing # of Units Address Funds Committed Habitat for Humanity $565,271 2 416 Vance Street & 826 Lacy & Vance" N. Lacy Street Westview House $1,514,113 84 2530 and 2534 Westminster Avenue WISE Place Steps to Independence Public $90,000 N/A N/A Service Pro ram Down Payment $280,000 N/A N/A Assistance TOTAL $2.115.607 86 Affordable Housing Development Projects There are Iwo (2) affordable housing projects under construction and five (5) affordable housing projects in pre -development. Below are brief summaries for one (1) recently completed projects and the seven (7) projects under construction / pre -development. Exhibit 3 provides a development timeline for the larger development projects. Projects Completed Casa Querencia - fonnerly Aaua Housina (317 E. 17", Street) Developer Community Development Partners with Mercy House as the service provider Acquisition, demolition and new construction of a former motel yielding 56 Description units of affordable permanent supportive housing with wrap -around SUpporlive services for chronically homeless individuals and one 1 City Council 7-4 5/4/2021 Quarterly Report for Housing Division May 4, 2021 Page 5 manager's unit. 28 of the 56 units are funded by MHSA/SNHP funds from the County of Orange. City Funds Fifty-six (56) Project -Based Vouchers (PBVs) Construction is 100% complete and received final building sign -off on Update December 31, 2020. 100%, lease -up status was achieved on March, 23, 2021 and all units are now occupied by qualified tenants who were previously homeless in Santa Ana. Projects under Construction La Placita Cinco- formerly Tiny Tim Plaza (2239 West 51" Street) Developer Community Development Partners New construction of an affordable rnultifarTiily apartment complex consisting Description of 50 units of rental housing serving very -low and extremely -low income families, and one 1 manager's unit. City Funds Inclusionary Housing ($1,300,000), Housing Successor Agency ($4,700,000) The project is 99% complete, with final close-out items remaining. A temporary Certificate of Occupancy was issued in January 2021, and a final Update Certificate of Occupancy is anticipated no later than June 1, 2021. Retail renovations are complete, with final signage in progress. The project is current) 50% leased. Le ac S uare 609 North Spurgeon Street Developer National Community Renaissance with Mercy House as the service provider New construction of a 100% affordable multifamily apartment complex Description consisting of 92 units of rental housing and one (1) manager's unit. All units will be affordable to households earning less than 60 /o AMI of which 33 units will be set -aside for permanent supportive housing. City Funds Eight (8) PBVs On December 15, 2020, City Council approved the developer's $3,170,547 Loan Agreement and subordination agreement with Bank of America as the Senior Lender. Subsequently, the Consolidated Appropriations Act of 2021 passed by Congress on December 27, 2020, included a provision to create a permanent minimum 4% low-income housing tax credit rate that allowed the Update developer to generate more tax credit equity. As a result, the developer was able to decline the City's $3,170.547 in funding because they were able to generate more funding from their tax credits. However, the Housing Authority still has a commitment of eight (8) PBVs to this project. The developer closed on their construction financing on February 11, 2021 and has started construction of the project. Construction is currently ongoing. City Council 7-5 5/4/2021 Quarterly Report for Housing Division May 4, 2021 Page 6 Projects in Pre -Development Crossroads at Washinqton (1126 and 1146 E. Washington Avenue) Developer Related Companies of California with A Community of Friends (ACOF) as co- developer and lead service provider New construction of a 100% affordable multifamily apartment complex consisting of 85 units of rental housing and one (1) manager's unit. All units Description will be affordable to households earning less than 30% AMI of which 43 units will be set -aside for permanent supportive housing. HOME Investment Partnerships Program ($3,007,489), Neighborhood City Funds Stabilization Program ($963,951), sixty-five (65) year ground lease agreement for 1126 and 1146 E. Washington Avenue (Appraised Value as of September 22, 2019: $4,108,136 The Developer submitted an application in March 2021 for the Orange County Housing Finance Trust (OCHFT) Permanent Supportive Housing (PSH) Notice of Funding Availability (NOFA) and awards are expected to be Update announced in May 2021. The Developer continues to work with the City, County and the California Department of Toxic Substances Control (DTSC) for environmental investigations onsite and for a Voluntary Oversight Agreement between the City, County and DTSC foragency oversight. FX Residences (801, 809, 809 % East Santa Ana Boulevard) Developer HomeAid Orange County, Inc. with Mercy House as the service provider Description New construction of an affordable multifamily apartment complex consisting of 16 units of permanent supportive housing, and one 1 manager's unit. Housing Successor Agency ($1,069,947), three (3) PBVs, 99-year ground City Funds lease agreement for 801 E. Santa Ana Blvd. (Appraised Value as of Oct 25, 2018: $788,000 FX Residences was approved unanimously by the Planning Commission on March 22, 2021. HomeAid Orange County applied for $300,000 from Federal Update Home Loan Bank of San Francisco through their Affordable Housing Program Loan Program at the beginning of March. Funding awards will be announced in June 2021. Habitat for Humanity (416 Vance Street & 826 N. Lacv Street) Developer Habitat for Humanity of Orange County Description New construction of two single-family detached homes for homeownership serving households up to 120% AMI. Inclusionary Housing ($565,271) and a 99-year ground lease agreement for City Funds 416 Vance Street and 826 N. Lacy Street (Appraised Value as of Oct 25, 2018: $578.000 The developer has completed discussions with the Historic French Park Committee and received a letter of approval for the design of both homes on Update February 11, 2021. The Neighborhood Review Application was submitted to city staff and corrections were addressed. Site Plan Review will be submitted in April 2021. The developer is awaiting final documentation from Southern City Council 7-6 5/4/2021 Quarterly Report for Housing Division May 4, 2021 Page 7 California Edison regarding the abandonment of the easement that currently exists between the two (2) parcels. On April 6, 2021, City Council approved a First Amendment to the Conditional Grant Agreement with Habitat for Humanity of Orange County for an additional $333,777 in Inclusionary Housing Funds for a total Inclusionary Grant amount of $565,271 for the development of the Lacy Street affordable housing project. North Harbor Village 0108 N. Harbor) Developer Jamhoree Housing Corporation Description Acquisition and rehabilitation of a former motel yielding 89 units of permanent Supportive housing. City Funds Eight -nine (89) PBVs and CDBG ($1,687,047) [The 89 PBVs consist of 34 HUD-VASH PBVs and 55 non HUD-VASH PBVs The developer received their building permit ready letter on March 23, 2021. OCHFT provided a firm commitment with the official award from HCD on Update February 3, 2021. The developer closed on their construction financing on April 1, 2021 and will begin rehabilitation of the Budget Inn motel. The developer closed on their financing with floating 4% acquisition tax credits which will be determined at the 8609 conversion. Westview House (2530 Westminster Avenue) Developer Community Development Partners New construction of an affordable multifamily apartment development Description consisting of 85 units of both large family and PSH with one (1) manager's unit. Twenty-six of the units will be funded by MHSA funds and the NPLH program. Inclusionary Housing ($1,514,113), HOME Investment Partnerships Program City Funds ($2,003,705), Rental Rehabilitation Program ($386,523), and twenty-six (26) Mainstream Program PBVs The developer applied for the OC 2020 Supportive Housing NOFA MHSA funds and has received this funding award. The developer also submitted an application for competitive NPLH funds on January 19th and have since received a point scoring letter from HCD which shows the project receiving Update 194.99 points out of a possible 200. The project went before City Council on January 19, 2021 and received full entitlement approval as well as approval of twenty-six (26) Mainstream Program project -based vouchers. On March 15, 2021 the developer applied for OCHFT funds and is awaiting a response on this funding award. Regional Housing Needs Assessment Housing projects that have been approved, permitted, or received a certificate of occupancy after June 30, 2021 may be counted towards the 6th Regional Housing Needs Assessment (RHNA) Cycle (October 2021 to October 2029). A total of 419 units in projects that are completed or under construction will count towards the current RHNA cycl e City Council 7-7 5/4/2021 Quarterly Report for Housing Division May 4, 2021 Page 8 Project Units Santa Ana Arts Collective 57 Heroes' Landing 75 Casa Querencia 56 La Placita Cinco 50 North Harbor Village 89 Legacy Square 92 TOTAL 419 A total of 188 units in projects in pre -development will count toward the upcoming RHNA cvcle (October 2021 throuah October 2029). Project Units Crossroads at Washington 85 Westview House 85 FX Residences 16 Habitat for Humanity 2 TOTAL 188 FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Available Funds for Affordable Housing Development Projects 2. Available Land Assets for Affordable Housing Development 3. Project Timelines Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager City Council 7-8 5/4/2021 Exhibit 1 Available Funds for Affordable Housing Development Projects As of March 31. 2021 Housing Successor Agency (Housing Authority) $3,650.079 Cash onIland (`.61,069.947) Frances Xavier Residence Project Pre -Commitment Loan' (fu250,000) Administrative Costs Allowance ` ($2,076,527) Administrative Costs Allowance for Future Fiscal Years' ('6157„86) Crossroads at Washington Option Agreement Amendment " $0 Available Funds Inclusionary Housing Funds $10,436.303 Cash on Hand ($210,000) Uown Payment Assistance Program 5 ($731 294) 1 acy Street Project Pre -Commitment I oen" (:G1,514,113) Westview House Pre -Commitment Loan 7 ($70,273) WISEPlace Steps to Independence Program Agreement" ($2,0701579) Administrative Costs Allowance (CDAIPBA) $6,339,844 Available Funds HOME Program $7,202.730 Funds to Drawdown ($9,0074P,9) Crossroads at Washington Pre-Cornrnilment Loan (fj; 2,(10's,705) Westview House Pre -Commitment Loan 7 $2,191.536 Available Funds to Drawdown CDBG Program (Acquisition/Rehabilitation Projects Only) $2,134,716 Funds to Drawdown ($1,HR7,647) North Harbor Village Project Pre -Commitment I nan i0 $447,669 Available Funds to Drawdown NSP Program (Abandoned. Foreclosed or Vacant Propertics Only) $1,394,088 Funds to Drawdown ($963.951) Crossroads at Washington Pre -Commitment Loan ($96,39ti) Crossroads at Washington Project Costs ($333,742) Transfer to CDBG in FY 20/21 $0 Available Funds to Drawdown Rental Rehabilitation Grant Program $392.875 Cash on Hand " ($388,523) Westview House Pre -Commitment Loan $6,352 Available Funds $8.985,402 Total Available Funds APf, V-1 T .iiQI Ig AlIti-rllyr.n IP),Ply 1�'M S T,nmmny .n...., 4yei Pv d- ,,. IeNe!adl ru] Jm bipa i._.fda 4... o.. 1,1,, R lie k ie Redevel,yief. AgoWei L,., I,lnmm r nw ,o_ t, ,_&f.wl d- , an o,..nr (11AU v, n o n«rr lr gorr mvn rI. It r,,, _ Ipp:.v_nny np h.mlh-lry u.r m. _r ..._n. $.I,IPnn or I dlvPf 1.,. -4 ,yrlry[ ! I V IA. IIe Fl— It A I froth-,, - d. _wpmmue.r 9n,n_ AalI-Jrad1y C ItCI U 11Ull".c1A. r ,evonMa. -1010 A.nJd n..14.13f777a1n v. vrl1,Ill ,I A,,l13, tRt0(x .e ol—od I, m101l AYprlv'_d py GIv LUn11C1 011 APrI7, T02Q In, ,d dy City COImrI on A,,I r,>n>n Apprnvad ny rby,, n Ig,I en .ply n. ^o tc._ k rl— dtrrrh7 . III- Li0A l I., euMa L5.2MR Lem ap.rnl I A, .1 0 CI, .I r, 1.r,,, , ool- I'd ro,Yr_n ...bpl< lf,, Jc .,u. orp u+.. w.1,1'.UD. City Council 7-9 5/4/2021 EXHIBIT 2 AVAILABLE LAND ASSETS FOR AFFORDABLE HOUSING DEVELOPMENT (1) 302 E. Twenty -Second Street a. APN:003-122-25 b. Lot Size: 27,817sf c. Current Zoning: R1 Single -Family Residence, which allows one house per lot. d. Parcel was acquired 10/30/2002 using Low and Moderate Income Housing Asset Fund - 20% Set Aside. c. Previous Use: Purchased from Cal Trans. It was a remnant parcel from the freeway widening project. The site was vacant and undeveloped at the time it was acquired. f. General Plan: Low Density Residential, which allows single-family residences and ancillary uses. g. Maximum du/ac: Seven units per acre. h. Sitc Condition / Environmental Conditions: Property is irregular in shape, is below the rninirnum lot size for a residential lot, and will most likely require the approval of several variances from the zoning code in order to facilitate a residential unit. City Council 7 — 10 5/4/2021 EXHIBIT 3 Current Affordable Housing Development Project Timelines Projects Completed Casa Querencia — formerly Aqua Housing — 317 E. 17th Street Dec 16 RFP Issued for PBVs Apr 17 Approved PBVs Jun 17 Planning entitlements approved Jun 17 Approved additional PBVs Jan 18 Awarded County Special Needs Housing Funds Jan 18 Submitted application for HCD Infill Infrastructure Funds Jun 18 Award of HCD Infill Infrastructure Funds Aug 18 Submittal of 4% Low -Income Housing Tax Credit Application Oct 18 Allocation of 4% Low -Income Housing Tax Credits Apr 19 Close of escrow Jun 19 Construction initiated Dec 20 Construction completion Mar 21 100% lease -up achieved Projects Under Construction La Placita Cinco— 2223 W. 51h Street Dec 16 Developer submitted request for funds to CDA Jun 17 Awarded City and Housing Successor Agency Funds Jan 18 Planning entitlements approved Jul 18 Submittal of 9% Low -Income Housing Tax Credit Application Oct 18 Award of 9% Low -Income Housing Tax Credits May 19 Close of Escrow Jun 19 Construction initiated Jan 21 Anticipated construction completion Legacy Square — 609 North Spurgeon Street Aug 18 Santa Ana CDA Funding Application Dec 18 Applied for NPLH and SNHP Funds Jan 19 Santa Ana funding award Feb 19 Planning entitlements approved Feb 19 Applied for Round 4 AHSC Funding May 19 Award of SNHP funds Jul 19 Applied for Round 1 MHP Nov 19 Applied for State 4% tax credits Jan 20 Construction drawings (8-12 weeks) Feb 20 Apply for Round 5 AHSC funding City Council ' uyo ' , 7— 11 514/2021 EXHIBIT 3 May 20 Apply for 4% tax credits May 20 Plan check (12-16 weeks) Jun 20 Award of AHSC funds July 20 Award of 4% Tax Credits July 20 Award of Tax -Exempt Bonds May 20 Plan Check (12-16 weeks) Jan 21 Building permit issuance Feb 21 Construction closing/syndication Feb 21 Begin construction (24 months) Feb 23 Construction complete June 23 100% fully leased (2 months) Projects In Pre -Development Crossroads at Washington — 1126 and 1146 E. Washington Avenue Aug 19 Submitted PSH application to County Oct 19 Submitted for Planning entitlements Oct 19 Community meeting Nov 19 Approval of Joint Powers Agreement, Option to Ground Lease, Voucher Resolution and Cooperation Agreement, and Regional Housing Needs Assessment (RHNA) Agreement and Density Bonus Dec 19 NEPA EA City Approval — City of Santa Ana submits NEPA EA to HUD Feb 20 PSH Funds and Voucher approval from County Board of Supervisors Feb 20 Planning entitlements approved Mar 20 TCAC 9% Application — 111 Round 2020 Jul 20 TCAC FCAA/9% Application — 2110 Round 2020 Oct 20 TCAC FCAA/9% Award — 2n' Round 2020 Mar 21 Submitted OCHFT PSH NOFA Application May 21 Projected Award for OCHFT PSH NOFA Dec 21 Submit for 1 st plan check May 22 City issues permit ready letter May 22 Start construction Aug 23 Construction complete Dec 23 Full occupancy FX Residences — 801, 809, 809'/2 E. Santa Ana Boulevard Jan 19 Council approval for land lease and project funding Jan 19 Submittal of application for NPLH funding Feb 19 Confirm with City staff that project site can yield additional units under existing zoning Mar 19 Revise conceptual drawings for additional 5 units (17 total units, up from the original 12 units) Mar 19 SNHP funding application submitted to County Apr 19 City staff to review revised conceptual design City Council ' uyo "" 7— 12 5/4/2021 EXHIBIT 3 Apr 19 Begin development agreement May 19 Board of Supervisors meeting for SNHP funding Jul 19 Execute Development Agreement Jul 19 Formal awards letters for NPLH funding to be issued Aug 19 Initial planning submittal Sept 19 Sunshine Ordinance Meeting Mar 21 Planning Commission Meeting (ministerial approval of density bonus) May/Jun 21 City Council Meeting (ministerial approval of density bonus) Jun 21 Submit for first plan check Sept 21 Building Permit Oct 21 Begin construction (grading, weather permitting) Nov 22 Completion of construction Habitat for Humanity — 416 Vance Street & 826 N. Lacy Street May 20 DDA signed June 20 Prepare grading plans Oct 20 Prepare architectural plans Oct 20 Submit Neighborhood Review Application Feb 21 Final Approval from Historic French Park Committee Apr 21 Submit Site Review Application May 21 Submit grading/improvements May 21 Submit architectural plans Jun 21 Grading permit issued Aug 21 Commence Grading Aug 21 Building Permits issued Sep 21 Begin construction Aug 22 Anticipated construction completion Aug 22 Certificate of Occupancy / Closings North Harbor Village — 1108 N. Harbor Mar 19 Start of design development Mar 19 Applied to FHLBSF for AHP Financing ($890,000) Mar 19 Award of VASH Vouchers & City Loan by City Council (89 Vouchers and $1,687,047) Mar 19 Start environmental approval process with City of Santa Ana (CEQA/NEPA) Mar 19 Applied for Home Depot Grant ($500,000) Jun 19 CEQA / NEPA Approval — City of Santa Ana Jun 19 AHP Award Date ($890,000) Aug 20 Applied to HCD for MHP 15t Round Funding ($13,316,412) Dec 19 Notified project did not receive 1�1 Round MHP funding Feb 20 Applied to HCD for VHHP Funding ($10,000,000) Mar 20 Applied to HCD for MHP 2nd round funding Mar 20 Applied to OCHFT Financing ($2,292,920) May 20 Notified project did not receive 25t Round MHP funding City Council ' uyo " "17 — 13 5/4/2021 EXHIBIT 3 May 20 Received OCHFT funding award ($2,292,920) Jun 20 Received VHHP funding award ($10,000,000) Jun 20 Submitted Plans for Ministerial Design Approval Jun 20 Applied for CDLAC tax exempt bond allocation ($24,000,000) Jul 20 Applied for TCAC 4% competitive state and federal tax credits ($9,896,911) Sept 20 CDLAC Allocation Nov 20 Ministerial Design Approval (upon completion of community meeting on 11 /4/2020) Oct 20 TCAC Allocation Oct 20 Start construction documents for rehab Nov 20 Submit first plan check Dec 20 Awarded Home Depot Grant Jan 21 Receipt of first plan check comments Jan 21 Submit second plan check Feb 21 Receipt of second plan check comments Feb 21 Submit third plan check Mar 21 Received permit ready Apr 21 Construction loan closing Apr 21 Pull Permits and start construction Oct 22 Construction complete Oct 22 Start of lease up Apr 23 Full occupancy Westview House — 2530 Westminster Avenue Oct 19 City of Santa Ana RFP submittal May 20 OC 2020 Supportive Housing NOFA Submittal Dec 20 OC 2020 Supportive Housing NOFA award Jan 21 City of Santa Ana PBV Award Jan 21 Construction/permanent debt commitments Jan 21 Receive Entitlements Jan 21 No Place Like Home application Mar 21 OCHFT application May 21 OCHFT Award Jun 21 No Place Like Home commitment Sep 21 CDLAC/TCAC 4% application Dec 21 CDLAC/TCAC 4% award May 22 Construction permits issued May 22 Construction start Sep 23 Construction complete Dec 23 Lease -Up complete City Council ' "yam',7- 14 5/4/2021 Public Works Agency https://www.santa-ana.org/pw Item # 8 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Wireless Telecommunication Facilities Guidelines AGENDA TITLE Receive and File Standards and Guidelines for Wireless Telecommunication Facilities in the Public Right -of -Way RECOMMENDED ACTION Receive and file Standards and Guidelines for Wireless Telecommunication Facilities in the Public Right -of -Way. DISCUSSION In 2018, the City Council adopted Ordinance NS-2954, revising Article X to Chapter 33 of the Santa Ana Municipal Code to regulate wireless facilities in the public right-of-way. The revision was to accommodate wireless technology advancements and new Federal and State laws. In addition, the ordinance also authorized the Director of Public Works to create the Standards and Guidelines for Wireless Facilities in the Public Right -of -Way (Guidelines) to provide procedural and design guidance, and specific design standards and requirements for project applicants proposing wireless facilities in the public right- of-way (Exhibit 1). Staff initially prepared the Guidelines in April 2019 and they have been revised to provide control and hierarchy of the proposed wireless facilities on support structures, which will facilitate staff's review of wireless facility applications. BACKGROUND Telecommunications advancements and consumer demand network data capacity have led to the need for smaller and more densified wireless antenna locations. Different types of antennas are required to deliver various wireless coverages and capacities. A "macro cell" is used for larger coverage, with a radius of several miles. These facilities are typically located on freestanding towers, faux tree poles, tall buildings, water tanks, etc., and until recently, have been the most common cell type utilized. In recent years, wireless telecommunication providers have increasingly proposed placing single, "small cell" antennas and equipment on existing infrastructure located within the public right-of-way. The small cell antennas are usually deployed in areas that cannot be effectively served by a traditional macro cell, or areas that may have coverage but not enough capacily. A small cell is not intended to replace macro cell sites, but to fill City Council 8-1 5/4/2021 Guidelines for Wireless Facilities in the Public Right of Way May 4, 2021 Page 2 coverage gaps in areas that do not have sufficient capacity. These small cells are placed in locations that are densely populated and/or need additional network capacity, such as downtown areas, around heavily traveled arterial streets, or within residential neighborhoods. In recent months, some of the small cell antennas proposals have included installations adjacent to historic properties or in neighborhoods with decorative streetlights, which are unsuitable for attachments. To help respond to and regulate the proposed applications, the Director of Public Works Agency is updating the Guidelines. The revised Guidelines now contain specifications on preferred structures and locations. This section provides a hierarchy for support structures and a list of prohibited structures for wireless facility installations. Also included is a distance requirement for installations near historic properties or resources to ensure that the character of the historic structure is preserved. Other changes to the Guidelines include the prohibition of new poles in the public right- of-way. Provisions have been made to allow the Director to consider such requests. Wireless telecommunication installations outside of public streets and alley rights -of -way (such as within parks and on private property) will continue to require a conditional use permit administered by the Planning and Building Agency; that process remains unchanged. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIRIT(S) 1. Guidelines for Wireless Facilities in the Public Right -of -Way Submitted By: Nabil Saba, P.E., Executive Director — Public Works Agency Approved By: Kristine Ridge, City Manager City Council 8-2 5/4/2021 EXHIBIT 1 CITY OF SANTA ANA GUIDELINES FOR WIRELESS FACILITIES IN THE PUBLIC RIGHT OF WAY May 2021 Revision 05/2021 "" `tity Council 8-3 51412021 GUIDELINES FOR WIRELESS FACILITIES �����! ''0"� IN THE PUBLIC RIGHT -OF- WAY !/,�� z,f _Ah ,E Htam_/nc A, EE) �L E �� i Chr ,I )L FHI an j TI ITY Hnx ---------� The City of Santa Ana seeks to permit wireless carriers to install small cell wireless facilities within the public right-of-way in order to provide improved cellular coverage and capacity throughout the City; while ensuring facilities are well -maintained and do not significantly detract from City streetscapes. the Public Works Agency may update the Design Guidelines and Standards from time to time at the discretion of the Director of Public Works. These Design Guidelines are published on the City's Public Works website (httgs1/www.santa- ana.org/sites/default/files/pw/documents/wireless design standards guidelines). The public is encouraged to check this websile regularly for updales. 1. Stealth DeSign a. A ':stealth facility' (or "stealth facilities") means a wireless facility designed to look like something other than a wireless tower or base station. b. Stealth. All wireless facilities shall be stealth. Stealth elements and techniques should be used to blend the facility with surrounding materials and colors of the support structure and make the facility appear to be something other than a wireless tacility. Stealth elements include, but are not limited to, the following i. Radio frequency (RF) transparent screening or shrouds, ii. Matching the color of the existing supporl structure by pairiling, coaling, or otherwise coloring the wireless facility, equipment, mounting brackets, and cabling; iii. Placing cables and wires inside the pole or beneath conduit of the smallest size possible; iv. Minimizing the size of the site, v. Installing new infrastructure that matches existing infrastructure in the area surrounding the proposed site; and vi. Using paint of durable quality. 2 1 1 I City Council 8-4 5/4/2021 GUIDELINES FOR WIRELESS FACILITIES, IN THE PUBLIC RIGHT-OF-WAY/����� ter. fir, 2. Preferred Structures and Locations: a. Support Structure Hierarchy. The following is the City's required hierarchy for small cell wireless facility attachments to support structures in the public rights -of -way, ordered frortl the most preferred to the least preferred. Provide an alternative analysis, demonstrating that a more preferred wireless facility attachment was not technically feasible. Existing or new replacement Cobra Head streetlight i. New Cobra Head streetlight; ii. New steel stand-alone pole;** iii. Strand Mounted, iv. Attachment to an existing or new replacement wood utility pole, and v. Any other type of poles that the Director determines meets these Guidelines. b. Prohibited Support Structures. Small cell wireless facilities shall not be permitted on the following! i. Existing decorative poles: ii. Traffic signals. iii. Any utility pole scheduled for removal or relocation within 18 months frorn the tirrle the Director acts on the wireless facility application: or iv. New, non -replacement wood utility poles. c. Location Hierarchy. The following is the City's required hierarchy for locations for small cell wireless facilities in the public right-of-way, ordered from most preferred to least preferred: i. Non -Residential Districts. 1. Locations within, or immediately adjacent to, districts where residential uses are not permitted uses (e.g. industrial, commercial and industrial districts with no residential overlay) on or along major, primary or secondary arterials; Z Locations within, or immediately adjacent to, districts where residential uses are not permitted on or along divided collector arterials or collector arterials; or 3. Locations within, or immediately adjacent to, districts where residential uses are not permitted uses on or along local strocts. ii. Residential Districts and Schools 1. Locations within, or immediately adjacent to, districts where residential uses are permitted uses on or along major, primary or secondary arterials; Z Locations within, or immediately adjacent to, districts where residential uses are permitted uses on or along divided collector arterials or collector arterials; or 3. Locations (a) within, or immediately adjacent to, districts where residential uses are permitted uses on or along local streets. 31 " 'preterre. In UnJ erlit A ei` Ind Udinq (lrc,)p with dettrrnpvt Ilght; it me I Ipce,j Street hn3 preJpmin, n(Qnhr, HeOJ Streetll ,tI , Jtilenvi3e, new (;ptlrp HEAd Str22tllgllt IoftA111%)n^ will hE Cnn4l&iH ri on 3 fASf-hY-ci33 - When an appl'. cant proposes to install a small cell in a Historical D'. strict or neignnorhood/_on'idor rhat In aintains un';ue srreerlight aesthetics. the applicant may propose small toll 7nfrasti.idure Ihai. most closely matches adjacent r fra,rL1C.cre to rho maxin1urT1 extent feasple- The charactersrlcs of onlgoc use O V.es r ; y 'idt , ...... Jc ur, l��t ydt hosts, O'Lri tectyra I. .... .... a m: rr �� h,.to. yule cdws, t.c. lbol Jew'. a',c Gam thtsc DP.ign 111110 liner: Ann 51:i0fl:irtl4 Annrnrvprl by the DirfriM. City Council 8 — 5 5/4l2021 GUIDELINES FOR WIRELESS FACILITIES �����! ''0"� IN THE PUBLIC RIGHT -OF- WAY !/,�� z,f Additional Location Requirements. The City also requires small wireless facilities in the public rights -of -way to be installed as follows: i. Sight Distance Triangles. New or new replacement poles shall not be placed within any sight distance triangles at any intersections. ii. Setbacks from Driveways. New or new replacement poles, regardless of zone, must be placed at least 10 feet away from any driveway. iii. Near Property Lines. New or new replacement poles regardless of zone, shall be placed as close as feasible and in no event more than five feet of a property line between two parcels that abut the public righl-of-way. iv. Historic Structures or Public Art. Small cell wireless facility shall not be installed within 100 feet of the property boundary of designated historic structures or local landmarks or public art. v. Facility DISta OCP. The minimum hori7or)[Al diRtanne between a new wirP.le3R facility and any other existing or permitted but unconslrucled, wireless facility on the same side of the right-of-way, at the time a complete application is filed with the City, irrespective of the owners/operators, shall be not less than 300 linear feet, as measured parallel to the right- of-way. 3. Description of Tiers (The followintr Tiers are as referenced In SAMC Section 33-239 Indleatlna noticing preferences) and Helated Design Standards a. Tier 1: Eligible Facilities Requests Modification Eligible Facilities Requests (EFRs) as set forth in Section 1455 of Title 47 of the United States Code and 47 C.F.R. § 1.6100. Involves certain modifications of an existing support structure that do not substantially change the physical dimensions of such support structure, involving (i) the collocation of new transmission equipment, (ii) removal of transmission equipment, or (iii) replacement of transmission equipment. b. Tier 2 Small cell installations or modifications to an existing tower or base station that substantially changes the physical dimensions of such tower or base station as defined by the FCC in 47 C.F.R. § 1.6100, as may be amended. Tier 2 involves the installation of a new small cell wireless facility that substantially changes an existing support structure: or involves the modification of a small cell facility on an existing support structure and such modification constitutes a substantial change. The preferred location for new small cell wireless facility installations shall be on existing infrastructure, or replacements of existing infrastructure, such as utility poles or streetlights. An applicant may proposc to install new infrastructure to accommodate a small ccll wircless facility. See Tier 3 for guidelines. City Council 5/4/2021 GUIDELINES FOR WIRELESS FACILITIES, IN THE PUBLIC RIGHT-OF-WAY/����� i. Streetlight Attachment Too -of -Pole Mounted Antenna 1.1 A top-of-polc mountcd antcnna is prcfcrrcd, when technically feasible. 1.2 The antenna shall be the smallest possible volume but in no case greater than three (3) cubic feet. 1.3 To the extent technically feasible, the antenna must be concealed in a radio frequency (RF) transparent screen. If concealment is not technically feasible, the Antenna shall be as close as possible to the pole or installed flushed to pole and coated or painted an approved color to 1.4 Match the existing pole. The small size of the antenna or RF screen and color treatment is considered to camouflage the installation. 1.5 Top -of -pole mounted installations shall not increase the height by more than five (5) feet over the height of the existing pole. The maximum height of the streetlight, including shroud, shall be thirty five (35) feet. 1.6 Comply with City Standard Plan #1126K. 2. Side Mounted Antenna 2A Equipment shroud shall be mounted flush to the pole. 2.2 The antenna shall be the smallest possible volume but in no case greater than thrcc (3) cubic fcct. 2.3 Equipment shroud mounted facing away from approaching traffic is preferred. 2A Equipment shroud shall be no wider than the maximurn outside diameter of the pole, to the extent possible. 2.5 Antenna and/or equipment shroud shall not protrude more than eighteen (18) inches from the surface of the streetlight. All cables shall be concealed inside the pole. 2.6 When the antenna is mounted to the pole with a bracket, the bracket shall be coated or painted an approved color to match the existing pole. 2.7 Comply with City Standard Plan #1126K. ii. Streetlight Replacement 1. The applicant may propose a streetlight replacement in order to accommodate a wireless facility. In such rase, the new infrastructure shall be dedicated to the City and will have a primary purpose other than a wireless facility and the wireless facility will be the secondary use. 2. If a replacement streetlight is proposed to accommodate a wireless facility, the replacement pole shall be a stealth facility and designed to resemble existing poles s1 City Council 8-7 5/4/2021 GUIDELINES FOR WIRELESS FACILITIES, IN THE PUBLIC RIGHT-OF-WAY/����� in the right-of-way near that location, including size, height, color, materials, and style, with the exception of any existing pole designs that are scheduled to be removed and not replaced. 3. 1 he replacement streetlight shall be offset at the minimum distance technically feasible from the existing streetlight. 4. Integrated streetlight poles may be installed at existing streetlight locations (replacement) or at new locations that comply with City standards for spacing and conform to the character of the Surrounding neighborhood, as approved by the Director. 5. In the event the streetlight mast arm and luminaire are required to be replaced, the equipment must match requirements on City Standard Plan #1126H. 6. Equipment, other than antennas and radios, must be underground or below grade. 7. Comply with City Standard Plans #1126N and 1126H. iii. Strand Mounted Shroud on Existing Aerial Utility Wires 1. Strand mounted wireless facilities are permitted provided that such facilities comply with the applicable provisions of California Public Utilities Commission General Order 95 and any other applicable health and safety regulations, as may be revised or superseded. 2. When technically feasible, it is preferred to have all wireless facility equipment, including antenna and radios, concealed within an equipment shroud. 3. Only one strand mounted antenna is permitted per cable between two existing poles. 4. All components of strand mounted wireless facilities, including but not limited to the antenna, radio units, power converters, power amplifiers and fiber splice boxes, shall not exceed three (3) cubic feet in total volume. Fgmprnent should be ns narrow as possible to mimic the cable profile, and should be painted a neutral color. 5. Strand mounted wireless facilities shall be placed as close as technically feasible to the nearest utility pole, in no event more than six (6) feet from the pole, unless a greater distance is required by the pole owner for safety clearance. 6. No strand mounted wireless Facility shall be located in or above the portion of the roadway open to vehicular traffic. Strand Mounted Shroud n rv1,,,r -MN N 1V5 7. When utility companies do not allow cabling to be concealed within the pole, one cable rnay run outside [tie pole, attached to 1� the pole, painted to match. Cables must not hang or loop and should be directly against the pole until the transition to the cable strand, then should run directly along the strand (painted to match) to the wireless facility. 8. More than one cable must be concealed within a cable riser/drop attached directly to 61 City Council 8-8 5/4/2021 GUIDELINES FOR WIRELESS FACILITIES, IN THE PUBLIC RIGHT-OF-WAY/����� the pole and running parallel to the pole, of the absolute minimum diameter necessary for concealment, and painted to match the pole. At transition to strand, should run directly along the strand (painted to match) to wireless facility. iv. Wood Utility Pole Attachment 1.1 Antenna and/or equipment shall be mounted to a cross arm. 1.2 Antenna and/or equipment Shall be concealed in a cylindrical shroud, including cables connections, antenna mount and Other hardware. GPS antennas must be placed within the shroud or directly above the shroud, not to exceed six (6) inches. 1.3 The antenna shall be the smallest possible volume but in no case greater than three (3) cubic feet. 1A The cross arm should be parallel to roadway. 1.5 All horizontal cables shall be encased within the bracket arm to the extent technically feasible. 1.6 The bracket used to attach antenna and/or equipment to cross arm shall be coated or painted an approved color to match the existing pole and create a single, unified body. 1.7 To the extent technically feasible, all wiring running along the length of the pole shall be enclosed in appropriate conduit colored to match the existing pole and installed flush to the pole (no riser/drop or equipment stand-off brackets). Otherwise, cabling traversing the pole shall be covered using minimum two (2) inches in diameter riser/drop. Side Mounted Antenna On Cross Aim 1.8 Equipment installed on a cross arm shall be coated or painted an approved color to match the existing pole. 1.9 Maximum length of cross arm: 48' 1.10 Max antenna height: 36" 1.11 Antennas and/or equipment should be placed in an effort to minimize visual clutter and obtrusiveness. 1.12 Equipment shall be mounted directly to the pole at a minimum of eight (8) feet above the existing grade and coated or painted an approved color to match the existing pole. 1.13 Equipment, other than antennas and radios, are preferred underground or below grade. 1.14 A wood utility pole may be replaced with a taller pole for the purposes of accommodating a wireless facility, provided, that the replacement pole shall not increase the height of the existing pole by more than ten percent (10%) of 71 City Council 8 — 9 5/4/2021 GUIDELINES FOR WIRELESS FACILITIES, IN THE PUBLIC RIGHT-OF-WAY/����� the height of the existing pole or result in the overall height of the existing pole to exceed fifty (50) feet, whichever is greater, unless a further height increase is required and confirmed in writing by the pole owner and that such height extension is the minimum extension possible to provide sufficient separation and/or clearance from electrical and wireline facilities. 1.15 If the existing utility pole already has more than two existing risers/drops, the pole must be replaced with a pole that conforms to the character of the surrounding neighborhood, and that allows the new cables arid wires to be inside the pole, in conduit, as approved by the Director. 1.16 The maximum height for attachments to wood utility poles, from ground level as mcasurcd from the ncarest strcot curb, including wircloss facility, shall be thirty-five (35) feet when placement is within one hundred forty (140) feet of property zoned or used for residential purposes. For attachments outside property zoned or used for residential purposes, the maximum height, including wireless facility, shall be sixty (60) feet. c. Tier 3 Small Cell Installations on New Infrastructure i. Waiver Required. New poles are prohibited, unless a waiver is approved by the Director to prevent a prohibition of service. ii. The new infrastructure shall be a stealth facility, as defined above, and designed to resemble existing poles in the right-of-way near that location, including size, height, color, materials, and style, with the exception of any existing pole designs that are scheduled to be removed and not replaced. iii. The new infrastructure shall conform to the character of the surrounding neighborhood, as approved by the Director and as required by these guidelines. iv. New locations should be positioned at property corners or shared property lines, where technically feasible. V. Tier 2 Guidelines are applicable. City Council $ — 10 5/4l2021 GUIDELINES FOR WIRELESS FACILITIES, IN THE PUBLIC RIGHT-OF-WAY/����� General Notes' (a) All installations shall fully comply with the California Public Utilities Commission ("CPUC") General Orders, including, but not limited to General Order 95 ("GO 95"). None of the design guidelines are meant to conflict with or cause a violation of GO 95, including, but not limited to, its standards for a safe installation on a utility pole. Accordingly, the Guidelines can be adjusted at the City's discretion to ensure compliance with CPUC rules on safety. (h) If multiple requests are received to collocate a wireless facility on the same wireless support structure, priority will be given to the first request received that meets the Wireless Facilities guidelines. (e) Wireless facilities installed on City -owned infrastructure in the public rights -of -way shall use a valid master license agreement with the City. In the event of a conflict with the master license agreement and these guidelines, the terms of the master license agreement shall control. (d) A wireless facility shall not be located within any portion of the right-of-way that interferes or may interfere with City and emergency operations and pedestrian/vehicular access. (e) No component of a wireless facility shall extend six (6) feet beyond the top of a pole. (t) To the extent technically feasible, all wireless facilities that operate normally when coated or painted or are otherwise coated shall have subdued colors and non -reflective materials that blend with the materials and colors of the surrounding aroa and structures to the rcasonablo satisfaction of tho City. (g) The. Cily Slrnngly ennournge, Sile operalorS 10 uSe fIA-role &Vnlric Service when it wnuld elinlinale the need for a meter. Where meters are required, use the narrowest electric meter and disconnect available. (h) Vaults and pull boxes shall be installed flush to grade. (it Equipment shall not interfere with existing City facilities. (j) Equipment shall maintain appropriate clearance frorn existing utilities. (k) No installation shall be within ten (10) feet of a door or window nor placed within ten (10) feet of a window located at a similar height of the wireless facility. (1) well -camouflaged stealth designs and screening shall be used to minimize visual impact of the wireless facility. For example, the visual impact of a wireless facility may be mitigated by integrating it into existing functional facilities, by the planting of trees to screen the antenna from adjacent private properties. (rri) Existing landscaping and irrigation systems shall be restored to like or better condition approved by the Director in accordance with the City's landscaping standards. (n) Please note that as a condition of approval, the applicant must submit the following upon the construction and completion of a wireless facility 1) Photographs of the installed wireless facility. 2) Digital data to be used by the City's Geographical Information System (GIS) in preparing exhibits, reaps, etc. to include the following: • Provide data in a vector format. Examples of some acceptable formats are: Autocad (.dwg or.dxt) • Google Earth (.knit or.kniz) Shapefile (.shp) Use underscores or hyphens in the file name, not spaces. Provide a separate drawing file 91 City Council $ — 11 5/4l2021 GUIDELINES FOR WIRELESS FACILITIES, IN THE PUBLIC RIGHT-OF-WAY/����� for each individual sheet created in Autocad. • For Autocad files or Shapefiles, define the coordinate system as NAD 1983 State Plane. California Zone 6 (US Feet) For Autocad files, create all data elements in model space, add layout elements in layout space, save the model in model space, do not add viewports to model space and explode the blocks. • Provide data for all wnduits, boxes, nodes, etc. installed during the project. Submittal shall be from "As -Built" data, not Original designs. These general notes are in addition to the items listed under Article X to Chapter 33 of the Santa Ana Municipal Code. 10 City Council $ — 12 5/4l2021 Public Works Agency https://www.santa-ana.org/pw Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Community Workforce Agreement Oversight Funding Appropriation AGENDA TITLE Approve an Appropriation Adjustment to Recognize $100,000 of Estimated Revenues in Fiscal Year 2020-21 from CIP Construction Permits RECOMMENDED ACTION Approve an appropriation adjustment to recognize an estimated $100,000 of receipts from Capital Improvement Program (CIP) construction permit fees into the Public Works Agency, CIP Construction Projects Permits revenue account and appropriate the same amount into the Public Works Agency Services, Contract Services-PWA CIP Construction Permits expenditure account for consultant services to provide labor oversight on the Community Workforce Agreement for CIP construction projects. DISCUSSION In August 2017, the City of Santa Ana adopted a Community Workforce Agreement (CWA). The purpose of the CWA is to increase employment opportunities for residents of Santa Ana, and increase training and employment opportunities for the City's construction trade students through apprenticeships. A key goal of the CWA is for workers residing in Santa Ana, Orange County, or veterans, regardless of where they reside, to perform at least thirty percent of the total work hours on CIP construction projects under this agreement. In September 2020, the City hired a consultant, The Solis Group, to actively administer and enforce the obligations of the CWA, thereby ensuring the benefits envisioned for our local community materialize. To facilitate the implementation of the CWA, a Capital Improvement Program Construction Permit was established in the FY 2020-21 Miscellaneous Fee Schedule. The permit fee ranges from a minimum of $349.19 to 8.75 percent of the constriction contract amount and will be used to administer the CWA program. When the Miscellaneous Fee Schedule was prepared, a specific account number had not been identified. This City Council action recognizes $100,000 in FY 2020-21 permit fees into the revenue account No. 05317002-51708 and appropriates the same amount into the expenditure account No. 05317021-62340 for CWA administration expenditures. As the CWA program continues, staff will include estimated CWA permit revenues and expendilures in fulure budgels. City Council 9-1 5/4/2021 Approve an Appropriation Adjustment to Recognize Receipts May 4, 2021 Page 2 ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT Upon approval of the appropriation adjustment, funds in the amount of $100,000 will be available for expenditure in Fiscal Year 2020-21 in the Public Works Agency, CIP Construction Projects Permits revenue account (No. 05317002-51708) and appropriate the same amount into the Public Works Agency Services, Contract Services-PWA CIP Construction Permits expenditure account (No. 05317021-62340) to pay the City consultant providing the labor oversight on the Community Workforce Agreement. Submitted By: Nabil Saba, P.E., Executive Director— Public Works Agency Approved By: Kristine Ridge, City Manager City Council 9-2 5/4/2021 Parks, Recreation, and Community Services https://www.santa-ana.org/parks Item # 10 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Waste -Recycle Receptacles AGENDA TITLE: Award a Purchase Order Contract for the Purchase of 100 Combination Waste -Recycle Receptacles for City Trails to Outdoor Creations, Inc. in an Amount Not to Exceed $214,130 (Specification No. 21-056) (General Fund) RECOMMENDED ACTION Authorize a one-time purchase and payment of purchase order contract for 100 combination waste -recycle receptacles for City trails to Outdoor Creations, Inc. in the amount of $214,130, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Parks, Recreation and Community Services agency is responsible for the maintenance and repair of over 10 miles of City bike trails (Exhibit 1). Over the years, the City has made purchases of a variety of different types of waste receptacles from various vendors for heavy-duty, concrete or lightweight, plastic receptacles. The proposed heavy-duty concrete receptacles meet the needs of the trail users and create a consistent look throughout the trail system. The dual compartment receptacles are made of reinforced tan -colored concrete with stainless steel lockable doors, hardware that is very durable, and that offers anti- graffiti protection. The receptacle includes the City logo and graphics indicating Trash and Recycle. The two compartments are manufactured as one unit with a round top, making it very heavy to move, difficult to tip over, and difficult to remove trash. Trash cans/bags are located inside the units that can only be accessible through the lockable doors. The Santa Ana Municipal Code Section 2-807 requires that contracts for City purchases be awarded through a competitive bid process. The SAMC also allows for the direct award whenever there is only one known or reasonably available source due to proprietary features, which is the case with the specified combination waste -recycle receptacles. Outdoor Creations. Inc. is the sole manufacturer of the specified combination receptacles. City staff researched various local vendors, catalogs and the Internet, and was unable to locate a comparable product in quality. Currently, seven of These City Council 10-1 5/4/2021 Waste -Recycle Receptacles May 4, 2021 Page 2 combination waste -recycle receptacles have been installed along a portion of the Pacific - Electric Bike Trail. Future purchases will be made for the same unit, as funding is made available, in order to maintain consistency and uniformity among the City park system. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and made available in the following account for the specified year - Fiscal Accounting Unit- Fund Accounting Unit, Account Amount Year Account # Description Description FY 20-21 01113250-63200 General PRCSA-Park Facilities, $214,130 Fund Operating Malerials & Supplies Buildings/Grounds EXHIBIT(S) 1. Quote 2. Bike Trail Map Submitted By: Lisa Rudloff, Executive Director of Parks, Recreation and Community Services Approved By. Kristine Ridge, City Manager City Council 10 — 2 5/4/2021 QUOTATION AUTHORIZED SALES PERSON SIGNATURE Tim L. Hudson 2/25I21 Outdoor Creations Inc. 2270 Barney Road Anderson, CA 96007 USA PH#1 530-365-6106 FX# 530-365-5129 Email tim@outdoorcroations. com SOLD TO City of Santa Ana Purchasing Division M 16 20 Civic Center Plaza RM *429 Santa Ana, CA 92701 USA Date: 2/25121 Quoin No.. Q3397 SHIP TO City of Santa Ana -511's SS Doors Ali Borujerdi 714-647-3551 aoo rujerd i@ @santa-ana. org Santa Ana, CA 92701 USA Exhibit 1 OUTDOOR I,111.11 '1'lll\a 1N/:. Sales Rep Good Thru Terms.. Purchase Order Tim L. Hudson 3127121 Net 30 Days City. Model # Description Unit Price Amount 100 511 (2) Compartment TrasrvRecycle Receptacle - Open 1,875.00 187 50000 on Both Sides DUAL ENTRY DISPOSAL, 50 511 SS DOOR HAN GFRN 511 STAINLESS STEEL DOOR WRiANDLE GREEN (C006-GN03) 50 511 SS DOOR HAN BLUE 511 STAINLESS S1EEL DOOR VV/HANDLE BLUE (TO09-BL01) 50 Vinyl Trash Vinyl Trash Sticker 50 V'. nyl Recycle Vinyl Recycle Sticker 100 Cast In Logo (City logo Cast in 2 sides, Santa Ana and Sky Painted recycle blue) 100 Cast In Logo Cast In I...ogo(Recycle Triangle Logo on Back opposite Blue Door Painted Blue on white back ground) 100 Cast In Logo Cast In Logo(trash Logo on Back opposite Green Door painted black on white background) Smooth Finish Smooth Finish NANO Nano - Non -sacrificial sealer Tan CDC Tan Color(Sequoia Sand) 1 Shipping Must Be Taxed, Company Owned rruck 8,500.00 8.500.00 PLEASE FILL IN THE REQUIRED INFORMATION ON THE ADDITIONAL PAGE WITH THE TERMS AND CONDITIONS. Subtotal 196,000.00 Sales Tax 18.130 00 Please sign here to confirm your order and acknowledge that you have read and TOTAL 214,130.00 understand our terms and conditions Forklift required upon delivery unless other arrangements made prior to order. STANDARD Dai EFi26d&iND APPROVFD SUBMITTALSIORDCR IS 12-14 W PMS4CSes not apply to custom products). 5/4/202 1 f Rl U (4 m UVJ c m ¢ c; d mL C1U x JyO U3 a; Khc , bNm w cYi�� � CL I IIr H. CD CD w? O W 0 J xv r L v o] N w \ w O N Nt_ @� ��1• U C d7 V tC /' � � m N N = w v r mo N C U T hU` NNC Cn0.0 ov � rO���Oo• � +-O ¢w Uo N I ram- T 29 � u G ^ v 9 A E s y c p �P 6 � w & R - 1 R City Council 10 — 4 O N cu Qco �_ (6 a] G m p) C CJJ N O fC5 ciz� a a aa� City Council �R E`wA � Eli G I A VFTA AV. I •r ........ .....W SS raA�DEN GROVE UL (f ® r vIm n y r" � a Jyt�f ,�' Y� o Ji r' FAIHI IA AV. T r 11T1�IIF,tOV TRASK AV. — SANTACLARA AV. 17TH ST 1 _WASHINGTON AV. nr. f m CIVICCFNTFR Dp. �3 TH,T _ ff STII _cT 6TH iT SANTAANA RL 4TH ST b; _ _ m l�4fVu Is -,I m I I F HF TN TAV rm Q T)1�r Y Lil. r ��� i4 RUJNG AV C) - 7 i MCFADDEN AV 01® N A tDINCLR AV. o i ( ST ANDREW PL T F T I ,Fi.i .Tt FIOpLpF11 WARNFR AI'I)YJAITMAI 4AV ARTIIURz4:SllIKF'. OWFR AV. ) n1RU19 SANTA ANA BIKE TRAILS II II II II II HIKE I RAIL (C:ity-owned) ... is RIKETRAIL((ounty-owned) CLASS "Offroad"Lrail PARK 1. Santa Ana River Blke'lrall-6,42 Flower St, Bike Trail-1,74 e. Ma[ArthUr Blvd, Bike Trail -'1,09 Class I, along Santa Ana River bed. Class I, along Orange County Flood Control Class I, along active Railroad. Channel, 3. Gmenvllla St MkaTrail-0.44 9. Santiago Craak BlkeTrail-➢.06 Class I 6. I'aCIAC Ele[trlC Blkehall-22,0$ Paved Class I. trail connects MamPlace to Landscaped, Cla;; I, follow; former Pacific Santiago Park. 3. Raltt St. Bike Trail -0.24 Flectric Railroad. CIo„ 1, J,ny Ownyc CoonLy I loud union P,u f, Rikc hai 10. F02 Flood Control Channal Bike Trail 4. Bear St Bike Trail -ANN 7. Alton Ave. Bike Trail-"LgH I andscaped. Class 1, along railroad Clan: 1, along active Railroad, rlyhL of way.Co11 rol Channel_ City Council 10 — 6 5/4/2021 Parks, Recreation, and Community Services https://www.santa-ana.org/parks Item # 11 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Santa Ana Zoo Animal Feed, Hay, and Tack AGENDA TITLE: Award Blanket Purchase Order Contracts for Zoo Animal Feed, Hay, and Tack to Newco Distributors, Midway City Feed Company, Inc., and Kruse Feed & Supply, Inc. in an Annual Aggregate Amount Not to Exceed $35,000 for up to a Five -Year Term (Specification No. 21-035) (General Fund) RECOMMENDED ACTION Award blanket purchase order contracts for zoo animal hay, feed, and tack to Newco Distributors, Midway City Feed Company, Inc., and Kruse Feed & Supply, Inc. in an annual aggregate amount of $35,000 for a one-year period beginning June 1, 2021 and expiring May 31, 2022, with provisions for four, one-year renewal options exercisable by the City Manager, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION An invitation for Bids for hay, feed, and tack was advertised on March 9, 2021 on the City's online bid and management publication system. A summary of the Invitation for Bids and bids received is as follows' 20 Vendors notified 0 Santa Ana vendor notified 9 Vendors downloaded the bid packet 3 Bids received 0 Bid received from a Santa Ana vendor The bids were received, opened, and evaluated on April 1, 2021 (Exhibit 1). All three bids were determined to be responsive. The bids received from Newco Distributors, Midway City Feed Company, Inc., and Kruse Feed & Supply, Inc., were the lowest responsive to specifications and meet the City's requirements. Awarding to all three bidders allows for variety of products and availability. City Council 11 — 1 5/4/2021 Zoo Animal Feed, Hay and Tack May 4, 2021 Page 2 Outreach Efforts The Purchasing Division advertised this project on the City's online bid management and publication system. Through an online search and through the online bid management system, no Santa Ana vendors were found offering these products ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are budgeted and made available in the following account for the specified year: Fiscal Year Accounting Unit- Fund Accounting Unit, Amount Account # Description Account Description 2020-2021 01113220-63400 General Fund PRCSA-Zoo, Animal Food $2,916.67 & Supply 2021-2022 01113220-63400 General Fund PRCSA-Zoo, Animal Food $35,000.00 & Supply 2022-2023 01113220-63400 General Fund PRCSA-Zoo, Animal Food $35,000.00 & Supply 2023-2024 01113220-63400 General Fund PRCSA-Zoo, Animal Food $35,000.00 & Supply 2024-2025 01113220-63400 General Fund PRCSA-Zoo, Animal Food $35,000.00 & Supply 2025-2026 01113220-63400 General Fund PRCSA-Zoo, Animal Food $32,083.33 & Supply EXHIBIT(S) 1. Bid Abstract Submitted By: Lisa Rudloff, Executive Director of Parks, Recreation and Community Services Approved By: Kristine Ridge, City Manager City Council 11 — 2 5/4/2021 City of Santa Ana Bid Rewits for Project Animal feed, Hay and Tock (21-035) Issued on 03/09/2021, Bid Due on April 01, 2027 2�OO PM (PDT) Line Totals (Unit Price * QuanLiw) Newco Midway City Feed Kruse Feed & Item Dezcription UOM QTY Distributors Company, Inc. ISupply, Inc- 1 ALFALFA HAY Al GRADE PREMIUM APPROX. DIMLNSIOr BALL 1 no bid $20.00 $20.00 2 BIRD GRIT, SOLB BAG 1 $7.69 512.50 513.20 3 CHICKEN SCRATCH, 50LB BAG 1 $12.07 $15.00 $19.90 4 COSEQUIN EQUINE POWDER, 1400 GRAM CNTR 1 no bid $146.9S $185.00 S LAMB & RICE DOG FOOD, 40LB BAG 1 $31.78 $32.SO $40.99 6 FRESH PINE BEDDING, 25LB BAG 1 $8.84 $9.50 $11.00 7 GOAT FEED, SOUR BAG 1 $23.70 $20.00 $21.70 8 DRYSTALL, � nLB BAG 1 no bid $22.5n $22.00 9 LARGE HOOKBILL CUISINE, 25LB BAG 1 $21.97 $47.50 $32.00 10 MAZURI MINI PIG, ADULT 25LB BAG 1 $14.24 $17.7S $24.00 11 MAZURI NEW WORL PRIMATE, 25LB BAG 1 $43.17 $40.00 $49.00 12 MAZURI PARROT MAINTENANCE 25LB BAG 1 $33.43 $37.00 $39.00 13 MAZURI LLAMA CHEWS, SOLBS BAG 1 $2S.68 $26.oO $33.25 14 MAZURI MONKEY CRUNCH 20 BISCUIT BAG 1 $34.33 $34.00 $42.95 15 MAZURI INSECTIVORE DIET SMKS, 25LB BAG 1 $45.70 $40.00 $43.95 16 MAZURI PETTING ZOO DIET, 5nLB BAG 1 $3n.16 534.no $39.00 17 MAZURI ADF 25 HERBIVORE 5ZZZ, 50LB BAG 1 $23.39 $30.00 $29.00 18 MAZURI EXOTIC GAMEBIRD, SOLB BAG 1 S2&4S S2&uO S29.OD 19 MAZURI PRIMATE GROWTH & RE PRO BISCUITS 2S BAG 1 $24.19 $29.00 $29.00 20 MAZURI LEAFEATER MINI BISCUIT PRIMATE DIET S672, : BAG 1 $2S.97 $2R.7S $32.00 21 MAZURI PRIMATE BROWSE BISCUIT25LB BAG 1 $24.16 $39.50 $49.00 22 MAZURI TORTOISE DIET 25LB BAG 1 $29.02 $33.00 $39.95 23 MAZURI WATERFOWL MAINTENANCE 50LB BAG 1 540.50 543.00 $50.8S 24 MAZURI ZULIFE SOFTBILL IRON, 25LB BAG 1 $41.17 $45.00 $49.00 25 MINERAL BLOCK WITH SELENIUM, SOLB BILK 1 no bid no bid $15.75 26 NASCO FROG BRITTLE LARGE NUGGETS FOR ADULT XEN BAG 1 no bid S30.9S S39.9S 27 NATURAL GLO RICE STABALIZED BRAN, 40LBS BAG 1 $17.30 $33.00 $36.99 28 ORCHARD HAY, 111 GRADE PREMIUM BALE 1 $23.71 $28.00 $30.00 29 POOP OFF REMOVER, 1 GALLON BTL 1 no bid $28.50 574.95 30 PYRANHA WIPE N' SPRAY FLY REPELENT, 1 GALLON BTL 1 no bid $b2.95 $8&99 31 RABBIT PELLETS, SO LB BAG 1 S19.60 $16.50 $19.4S 32 REDMOND ROCK LOOSE MINERAL SALT, 25 LB TUB 1 $14.99 $52.00 $48.00 33 SAND -FREE PSYLLIUM, 1S LB TUB 1 no bid $130.00 $13R.00 34 SELENIUM / TRACE MINERAL BLOCK, SO LB BLK 1 $13.92 $16.(ID $1S.7S 35 SHREDDED ASPEN BEDDING, 25 LB BAG 1 $1851 $16.00 $30.55 36 STALL MAT, 6 X 4 (3/4" THICK) EA 1 no bid $7S�00 $GO.00 37 STRAW BALE APPROX. DIMENSIONS 4' x 2' x 16? BALE 1 no bid $12.00 $15.00 38 SWAT FLY REPELLENT OINTMENT, 7 OZ. - CLEAR EA 1 no bid $15.50 $15.99 39 2S LB. SWEETLIX MEAT MAKER LOOSE MINERAL BAG 1 no bid $2&00 $29.00 40 TEKLAD MOUSE BREEDER STERILIZABLE DIET, 7004, 25 L BAG 1 S48.OS S34.00 no bid 41 TIMOTHY HAY #1 GRADF PRFMIIIM RAI F 1 5;)l 61 5:n nn 537.00 City Council 11 - 3 5/4/2021 42 TURKEY GAME KRACKETTS, 50 LB 43 ULTRASHIELD FLY SPRAY, 1 GALLON 44 WHLAI BRAN, 2S Lb 4S ZUPREEM MARMOSET DIET 14.50Z 12/CS 46 ZUPREEM PRIMATE 14.50Z 12/CS 47 PLAIN WHITE SALT BLOCK, 50 LB Total Bid Offer: BAG 1 $24.63 $21.00 $25-20 BTL 1 no bid $77.50 $95.99 BAG 1 $11.90 $12.00 $22.65 CASE 1 $19.50 $21.00 $29.00 CASE 1 $19.50 $21.00 $29.00 BILK 1 $12.38 $12.50 $14.4S Newco Midway City Feed Kruse Feed & Distributors Company, Inc. Supply, Inc. $833.21 $1.603.85 $1,851.40 City Council 11 — 4 5/4/2021 Public Works Agency https://www.santa-ana.org/pw Item # 12 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Hypochlorite Generator Units and Equipment Purchase AGENDA TITLE Award a Purchase Order to PSI Water Technologies, Inc. for Hypochlorite Generator Units and Equipment in an Amount not to Exceed $3,300.000 (Specification 21-013) (Non -General Fund) RECOMMENDED ACTION Award a blanket order contract to PSI Water Technologies, Inc. for hypochlorite generator units, in an annual amount not to exceed of $660,000, for a two-year period beginning May 4, 2021 and expiring May 3, 2023, with provisions for three one-year renewal periods exercisable by the City Manager and City Attorney, for a total not -to -exceed amount of $3,300,000, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Public Works Agency's Water Resources Division is committed to maintaining a water production system that provides high quality drinking water to all City residents. To this end, the City disinfects all groundwater with a sodium hypochlorite solution prior to it entering the distribution system. Sodium hypochlorite is a water disinfectant produced by on -site generation units through the combination of table salt, water, and electricity. The replacement and service of these generation units is part of a regular preventative maintenance program used to ensure the water system remains in compliance with all applicable standards and regulations. An Invitation for Bids for annual maintenance and repair of the City's 15 hypochlorite generator units and for procurement of replacement parts and installation of new submersible tank mixing systems for use in the City's ten potable water storage tanks was advertised on February 12, 2021 on the City's online bid and management publication system. A summary of the Invitation for Bids and bids received is as follows. 179 Vendors nolified 7 Santa Ana vendors notified 8 Vendors downloaded the bid packet 1 Bid received 0 Bid received from a Santa Aria vendor City Council 12-1 5/4/2021 Award Purchase Order for Hypochlorite Units and Equipment May 4, 2021 Page 2 One bid was received and opened on March 11, 2021 and evaluated. The bid submitted by PSI Water Technologies, Inc. was determined to be responsive to specifications. Outreach Efforts The Purchasing Division advertised this project on the City's online bid management and publication system, which directly notified seven Santa Ana vendors. No Santa Ana vendors downloaded or submitted a bid packet for consideration. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT City staff will place an order for product upon Purchase Order issuance. However, the current production lead-time is several weeks. Because of this, no expenses will be incurred during FY 2020-21. Funds in the amount of $660,000 will be included in proposed budgets for future years as follows. Fiscal Accounting Unit Fund Accounting Unit, Amount Year -Account # Description Account Description Contract (2-Year Term) Water Utility 2021-22 06017640-62300 Water Fund Production & Supply, $660,000 Contract Services - Professional Water Utility 2022-23 06017640-62300 Water Fund Production & Supply, $660,000 Contract Services - Professional Renewal Options (1-Year Terms) Water Utility 2023-24 06017640-62300 Water Fund Production & Supply, $660,000 Contract Services - Professional Water Utility Production & Supply, 2024-25 06017640-62300 Water Fund Contract Services - $660,000 Professional 2025-26 06017640-62300 Water Fund Water Utility $660,000 Production & Supply, City Council 12 — 2 5/4/2021 Award Purchase Order for Hypochlorite Units and Equipment May 4, 2021 Page 3 Fiscal Accounting Unit Fund Accounting Unit, Amount Year - Account # Description Account Description Contract Services - Professional Total: $3,300,000 Submitted By: Nabil Saba, P.E., Executive Director— Public Works Agency Approved By. Krisline Ridge, Cily Manager City Council 12 — 3 5/4/2021 Police Department https://www.santa-ana.org/pd Item # 13 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Contract for Modular Restroom Building at the Centennial Park Police Department Training Facility AGENDA TITLE: Award a Contract to Pacific Mobile Structures, Inc. for a Modular Restroom Building at the Centennial Park Training Facility for a Five -Year Period in the Amount of $126,758 (Specification No. 21-057) (General Fund) RECOMMENDED ACTION Award a contract to Pacific Mobile Structures, Inc. for the lease of a new modular restroom building at the Centennial Park Training Facility, for the period of June 1, 2021 through May 31, 2026, in an amount not to exceed $126,758, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Centennial Park Training Facility is located on the south/west corner of Centennial Park and is utilized by the Police Department, Parks and Recreation Department, Orange County Fire Authority, and the Public Works Department to train personnel in various disciplines. On average, the Centennial Park Training Facility is reserved for use fifteen (15) days per month. The Santa Ana Police Department Training Division utilizes the Centennial Park Training Facility to provide Police personnel throughout the County with continuous professional training, as required by the California Police Officer Standards and Training. Additionally, the Training Division regularly hosts police training presented by outside instructors. Finally, the Human Resources Division also utilizes the facility to conduct testing for police applicants. To provide this training, the Training Division requires safe, working restroom facilities for instructors and course attendees. The current modular restroom building was installed over 15 years ago, and despite numerous repairs through normal wear and tear, has reached a point where it is no longer serviceable and is in need of replacement. In researching options for replacing the existing modular restrooms, the Santa Ana Police Training Division has determined the best option is to lease a new modular restroom building for a period of five years, rather lhan purchasing the mobile struclure. The Police Deparlmenl Training Division plans to City Council 13 — 1 5/4/2021 Contract for Modular Restroom Building at the Centennial Park Police Department Training Facility May 4, 2021 Page 2 conduct future improvements to the training facility and leasing the mobile structure offers flexibility in future improvement design and layout. The contract includes a monthly lease amount of $1,729.81, a $7,474.56 startup charge, a $3,971.56 end of lease charge, and a $11,523.48 contingency for cost of repairs that may fall outside of the vendor's standard warranty. Purchasing and Police Department staff reviewed procurement options for modular restroom buildings. The Pacific Mobile Structures, Inc. and The Interlocal Purchasing System (TIPS) cooperative agreement was selected based on their competitive pricing, service levels, and product offering that meets standardized equipment requirements. Santa Ana Ordinance No. NS-2312 authorizes the City to utilize purchase contracts from any public agency employing a competitive bid process. TIPS has awarded an agreement for portable modular buildings and made it available to public agencies. Utilizing the contract awarded to Pacific Mobile Structures, Inc. will ensure efficient procurement of a replacement modular restroom building. FISCAL IMPACT Funds for this contract in the amount of $126,758 are available in the Police Department's Training Division contract services account (no. 01114410 62300), and will be budgeted in future fiscal years as follows: Accounting Unit - Accounting Unit, Account Fiscal Year Account# Description Amount 01114410 62300 Training Division, Contract $9,396 FY 2020-21 Scrviccs 01114410 62300 Training Division, Contract $23,062 FY 2022-23 Services 01114410 62300 Training Division, Contract $23,062 FY 2023-24 Services 01114410 62300 Training Division, Contract 523,062 FY 2024-25 Services 01114410 62300 Training Division, Contract $23,062 FY 2025-26 Services 01114410 62300 Training Division, Contract FY 2026-27 1 1 Services 1$25,112 Total 1126,758 Submitted By: David Valentin, Police Chief Approved By: Kristine Ridge, City Manager City Council 13 — 2 5/4/2021 Community Development Agency https://www.santa-ana.org/cd Item # 14 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Amendment to FY 2020-2021 MOU with the Santa Ana Police Department HEART Program and ESG Subrecipient Agreement with 2-1-1 Orange County AGENDA TITLE: Approve an Amendment to Fiscal Year (FY) 2020-2021 Emergency Solutions Grant (ESG) Memorandum of Understanding (MOU) Agreement with Santa Ana Police Department HEART Program for Additional Street Outreach and ESG Subrecipient Agreement with 2-1-1 Orange County for HMIS Data Collection (Non -General Fund) RECOMMENDED ACTION 1. Authorize the City Manager to execute an amendment to the Santa Ana Police Department HEART Program Memorandum of Understanding to increase the amount of the agreement by $7,954 for program year July 1, 2020 — June 30, 2021 for additional street outreach activities, subject to non -substantive changes approved by the City Manager and City Attorney. 2. Authorize the City Manager to execute an amendment to the 2-1-1 Orange County Subrecipient Agreement to increase the amount of the agreement by $6,248.40 for program year July 1, 2020 — June 30, 2021 for additional Homeless Management Information Systems data collection, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION On April 7, 2020, the City Council authorized the City Manager to execute a Memorandum of Understanding with the Santa Ana Police Department and agreements with non-profit organizations as part of the program year 2020-2021 Emergency Solutions Grant (ESG) Program allocation to provide housing assistance, emergency shelter, and street outreach to Santa Ana residents experiencing homelessness. At the close of Fiscal Year (FY) 2019-2020. unspent funds from ESG Program recipients totaling $14,202.40 were recaptured for redistribution. Staff recommends reallocating FY 2019-2020 unspent funds to the Santa Ana Police Department HEART Program and 2- 1-1 Orange County to expand services to people experiencing homelessness. The funds City Council 14 — 1 5/4/2021 Amendment to FY 2020-2021 MOU with the Santa Ana Police Department HEART Program and ESG Subrecipient Agreement with 2-1-1 Orange County. May 4, 2021 Page 2 for the HEART Program will provide additional street outreach services to individuals experiencing homelessness to provide them with necessary resources. The funds for 2- 1-1 Orange County will provide additional funds for Homeless Management Information System (HMIS) data collection and analysis. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The Emergency Solutions Grant funds have been carried forward from FY 2019-2020 to FY 2020-2021 in the amount of $14,202.40 in account no. (13518785-various) for expenditure in the current fiscal year. EXHIBITS) 1. Staff Report from April 7, 2020 11tI;II;1: /i�Jr.l I'yI BOf:_f ryC`i„$£M r61sA-_a B:B �_a, r) rc1/W P3 Pl l„ B rB fi/:I /d 7.7Fi6l PcaCje l,_,1sp 2. Amendment to Memorandum of Understanding with SAPID Heart Program 3. Amendment to Subrecipient Agreement with 2-1-1 Orange County Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager City Council 14 — 2 5/4/2021 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 7, 2020 TITLE: APPROVE THE FISCAL YEAR 2020 — 2021 EMERGENCY SOLUTIONS GRANTS PROGRAM FOR A TOTAL AMOUNT OF $500,947 /s/ Kristine Ridg CITY MANAGER RECOMMENDED ACTION EXHIBIT 1 CLERK OF COUNCIL USE ONLY: APPROVED As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2`1 Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve an allocation of the Emergency Solutions Grants Program for Fiscal Year 2020-2021 in the amount equal to the Grant Year 2020 award of $500,947 from the United States Department of Housing and Urban Development. 2. Direct the City Attorney to finalize and authorize the City Manager to execute a memorandum of understanding with the Santa Ana Police Department and agreements with non-profit homeless service providers awarded funds as part of the approved program for a one-year term beginning July 1, 2020 and expiring June 30, 2021 from the United States Department of Housing and Urban Development, subject to non -substantive changes approved by the City Manager and City Attorney. Organization Amount HEART- Outreach and engagement by SAPID $ 51,880 Interval House - Shelter as a result of domestic violence $ 40,000 Mercy House — Financial assistance for those at -risk of homelessness, rental assistance, case management, and housing search placement. $125,000 • $25,000 for Homeless Prevention and $100,000 for Rapid Re - Housing. Mercy House and New Santa Ana Homeless Shelter Operator • $151,468 for Emergency Shelter at The Link through October $151,468 2020. Any remaining funds will be allocated to the new shelter operator. Second Chance OC — shelter services, case management $ 30,000 WISEPlace - Financial assistance, case management and housing search $ 50,000 and placement 2-1-1 Orange Coun —Data collection $ 15,028 Total for Non -Profit Organizations $463,376 Administration $ 37,571 TOTAL $500 947 City Council 14 — 3 5/4/2021 60A-1 Fiscal Year 2020 — 2021 Emergency Solutions Grants Program EXHIBIT 1 April 7, 2020 Page 2 DISCUSSION The Emergency Solutions Grants (ESG) Program provides funds to assist sheltered and unsheltered homeless individuals, as well as those at risk of homelessness to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. Recipients of ESG Program funding in Orange County include the following entitlement jurisdictions: County of Orange, City of Anaheim, City of Irvine, City of Santa Ana and City of Garden Grove. Collectively, this group is referred to as the Orange County ESG Collaborative that was formed over five years ago. To ensure that funds are leveraged to create maximum impact, the Orange County ESG Collaborative has created a single Request for Proposals process, developed aligned values and priorities, and makes funding recommendations collaboratively to achieve the Orange County Continuum of Care goal to end homelessness. On November 7, 2019, three member cities of the Orange County ESG Collaborative released a combined ESG Request for Proposals (RFP) to support the Orange County Continuum of Care's goal to end homelessness (the County of Orange and City of Irvine allocated their funding independent of the Collaborative this funding cycle). The Collaborative accepted applications until December 10, 2019, with supplemental applications and requirements for both the City of Santa Ana and Anaheim. The RFP included a provision for up to four one-year renewals that could be exercised by each Collaborative member. Should the OC Collaborative determine to exercise these annual renewals past the end of FY 20-21, an RFP will not be released again. This means that current subrecipients awarded funding in FY 20-21 will be required to submit a new budget and program summary each year, but a new RFP will not be issued again for five years. Any new forms and information will be provided by the Collaborative each year. In addition, the Collaborative reserves the right to redistribute funding and/or issue a new RFP at its discretion. Each annual renewal for the City of Santa Ana will be recommended for approval by City Council. Applications were reviewed by City staff together with housing and community development commissioners from Santa Ana, Garden Grove and Anaheim. Applicants were interviewed by the review panel on February 5, 2020. Following this RFP process, staff are recommending FY 2020- 21 ESG program funding to seven organizations. Exhibit 1 identifies the summary of FY 2020-21 funding recommendations. The funding recommendations are based upon applications received, performance and current needs identified by staff. The allocation is broken down by category to provide more detail on funds allocated to specific eligible ESG activities. A template of the grant agreement that will be executed with each organization after approval by City Council is provided as Exhibit 2. The memorandum of understanding with the Santa Ana Police Department is provided as Exhibit 3. In regards to the $151,468 recommended for Mercy House for Shelter Operations and Essential Services, this specific allocation is to count toward the $6,398,123 already approved for the Link shelter by City Council. On September 18, 2018, City Council authorized the City Manager to execute an agreement with Mercy House to operate an interim emergency homeless shelter with a total budget in an amount not to exceed $6,398,123. The Link will be operational at least through the end of October 2020. A total of $151,468 of the $6,398,123 for the Link will be allocated from the ESG Program for FY 2020-2021. If the total ESG funds of $151,468 allocated City Council 14 — 4 5/4/2021 60A-2 Fiscal Year 2020 — 2021 Emergency Solutions Grants Program EXHIBIT 1 April 7, 2020 Page 3 to Mercy House to operate the Link interim shelter are not expended before the Link ceases operation, the remaining funds will be reallocated to the nonprofit operator of the new shelter, which has yet to be determined. The grant agreement that will be executed with Mercy House after approval by City Council is provided as Exhibit 4. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #6, (Focus projects and programs on improving the health and wellness of all residents). FISCAL IMPACT Funds will be budgeted and available in the Emergency Solutions Grants account (no. 13518785- various) upon execution of a grant agreement between the City and HUD and adoption of the FY 2020-21 annual budget. It is anticipated that the ESG allocation will be expended as follows: Grant Year Program Account No. Anticipated Expenditure in FY Amount 2020 ESG 13518785-various 2020-21 $500,947 Exhibits- 1. FY 2020 — 2021 Emergency Solutions Grant Allocation Recommendations 2. Emergency Solutions Grant Agreement Template 3. Memorandum of Understanding with Santa Ana Police Department 4. Mercy House Emergency Solutions Grant Agreement City Council 14 — 5 5/4/2021 60A-3 y � b O Cl O r C 0 O O O O 4 ,r • U r �- N � � O b y O O V R O b O O a o O w o 0 N u� csi u> U o 0 o O o 0 4 0 0 O V 0 0 @ N U C N A O M O M 'C L m O y y o a 0 o 0 0 0 0 0 0 0 a x o b Cl G O T N O O h N 2 y (n r U) �- 4A G O b Yy Q m y m GO to c 0 °c S N T un U1 EFi Vi a N O o 0 O O o = O b O O C a o v O a a c � � 0 0 0 0 � m ao 6 4/D 1A O O O O O O O O O O O O O O O 00 O O o0 1-: OR O O O N N N r 4i V1 � M 1A Hi Vi 69 Vi N y C O � C O � Fm L N V N 'c C UI 01 G ^C W fVG y L C N .� o (n O yJ a+ d O O Q `0 y W W 4, rn O rn v a a p 3 m ci w w w o x m City C 5/4/2021 60A-4 .. : 41 EMERGENCY SOLUTIONS GRANT SUI3124:C`IPII?NT AGI21%F.MI�N7 RI:CWE:IsN THE CITY OF SANTA ANA AND (24 (TR Tarts 91 and 576) THIS (RANI AGRLL''MIiNI, is hereby made and entered into this 12020, by and between the City of Santa Ana, a charter city and municipal corporation of the State of California, herein called the "CITY", and a California nonprofit organization, herein called the "SURRFCIPIFiNT RECITALS: 1. The CITY is the recipient of Emergency Solutions Grant ("ESG") lunds from the United States Department of Housing and Urban Development ("HUD"), pursuant to subtitle B of title IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11371-11378]. for the rehabilitation or conversion of buildings for use as emergency shelter for the homeless, for the payment of certain expenses related to operating emergency shelters, for essential services related to emergency shelters and street outreach for the homeless, and for homelessness prevention and rapid re -housing assisunce. Catalogue of Federal Domestic Assistance ("CFDA') 14.231 and Federal Award Identification Number (FAIN) E-20-MC-06-0508. 2. The CITY has approved the provision of federal funds under the FSG to be used in the operation of an emergency solutions program ("program") for the homeless or at -risk of homelessness off the City oSanta Ana as further described by Exhibit A, Scope of Work, attached hereto and by this reference incorporated herein. 3. The SURRECIPIENT represents that it has the requisite qualifications, expertise, and experience in the provision of emergency solutions programs for the homeless or at -risk of homelessness and is willing to use said federal funds to operate said program. 4. The SUBRF.CIPIF,NT agrees to assist individuals and families that are homeless or at risk of homelessness in obtaining appropriate supportive services including, but not limited to: temporary and permanent housing, relocation and stabilization service, rapid re -housing assistance, medical and mental health treatment, counseling supervision, and other services essential for achieving independent living. 5. The SUBRECIPIENT has agreed to be reimburse{ for the above services in an amount not to exceed S'XX,XXX in grant funding for Shelter, Outreach Services, Rapid Re -Housing or Homeless Prevention. 6. Phis AGRCLMI:NI is contingent upon the award of Lmergency Solutions Grant finds from the United State Department of Housing and Urban Development. T 'Ihe CITY and the SUBRI:CIPIENI have duly executed this AGRI:I MINT for the expenditure and utilization of said fiords_ NOW I'lli 1REFORF:, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this AGRI-i.T„MI NT and the following terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entire AGRFF.MFNT between the CITY and the SUBUC'IPIF,NT: City Council 14 — 7 5/4/2021 60A-5 EXHIBIT 1 I. SCOPE, OF PROGRAM A. General Adininisyation The SUBRE.CIPIENT agrees to implement this activity as set firth in detail in Exhibit A, Scope of Work, which shall provide a description of each activity, including the services to be performed, the person or entity providing the service, the estimated number of recipients of the service, and the manner and means of the services. 13. Levels of Accomplishment — Goals and Performance Measures The SUBRECIPIENT shall be responsible to accomplish the levels of performance as set forth in Exhibit A and report such measures quarterly to the CITY. If the SUBRECIPIENI' estimates such goals will not be met, the SUBRECIPIENTis to contact the CITY, at which time the CITY will detenuine if any adjustments to the grant award is appropriate. C. Staffin The SUBRECIPIENT shall ensure adequate and appropriate staffing is allocated to each ESG activity. Nothing contained in this AGREEMENT is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. IL TERM OF AGREEMENT This AGREEMENT shall take effect on July 1, 2020, and shall terminate on June 30, 2021, unless otherwise cancelled or modified according to the terms of this AGRLEMEN L III.. DISBURSEMENT AND FIrNDS The City was allocated $500,947 in Emei-gency Solutions Grant finds under the McKinney-Vento Homeless Assistance Act for fiscal yeas- 2020-2021 from the Department of Housing and Urban Developtent. CITY agrees to pay to SUBRI:C'IPIEN T when, if and to the extent federal funds are received under provisions of the Act a sum not to exceed SXX,XXX for SUBRICIPIEN f'S performance in accordance with the Budget attached hereto as "Exhibit B" during the period of this Agree mcnt_ Said sum shall be paid after CITY rcceiveS invoices submitted by SUBRF,CIPIFNT as provided hereinabove. A. Amount and Expenditure T;nd Date The CITY agrees to reimburse the SUBRECIPIENT a maximum amount net to exceed S XX,XXX from Emergency Solutions Grant (ESG) funds, as outlined in Exhibit B, Final Budget, and such funds shall be expended by the SUBRECIPIENT on or beforeJune 30, 2021. SITBRFCIPIFNT has the ability to adjust line item amounts in the Budget with the written approval of the CITY's Executive Director of the Community Development Agcncy, so long as the total Budget amount does not increase. B. Invoicing I?roc�clure.. The SUBRECIPIENh shall submit quarterly invoices (on or before the 15`' day of October, January, April, and July) in a form prescribed by the CITY, detailing such expenses. Such schedule may be modified with the approval of the CITY. City Council 14 — 8 5/4/2021 60A-6 EXHIBIT 1 C. Payment Payment is subject to the receipt and approval of such invoices and quarterly activity reports, as hereinafter more fully set forth below under Reporting, with the final payment subject to the satisfaction of the condition precedent of submittal of complete invoicing and reporting information due on or before July 15 of the applicable ftmding year the CITY shall pay such invoices within thirty (30) clays after receipt thereof, provided the CITY is satisfied that such expenses have been incurred within the scope of this AGREEMENT and that the SUBRECIPIENT is in compliance with the terms and conditions of this AGREEMENT. The thirty (30) day period will discontinue if the reimbursement request is determined to be incomplete and will restart the thirty -day timeline once the remaining required elements have been submitted_ Failure to provide any of tare required documentation and reporting will cause the CIIY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the CIIY. D. Use of f unds 'The SI113R6CIPII:NT agrees to use said fiends pursuant to this AGRI EMIXY to pay for necessary and reasonable costs allowable under federal law and regulations to operate said program only_ Said amounts shall include and will be limited to, street outreach, emergency shelter, homelessness prevention, rapid re -housing assistancc, housing relocation and stabilization services, short-term and medium -term rental assistancc, and Itorneless Management Infonnation Systems ("HMIs") data contribution as set forth in 24 CFR § 576-101 — § 576.107. Allowable program costs are detailed in the Budget, as set forth in Exhibit B, attached hereto and by this referLtice incorporated herein. The SLIBRECIPIENT'S failure to perform as required may, in addition to other rennchcs set forth in this AGREEMENT, result in readjustment of the amount of funds the CITY is otherwise obligated to pay to the SUBRECIPIENT pursuant to the terns hereof. The SUBRECIPIENT agrees that the homeless shelter/services under said program shall be available for the entire period during which said funds are provided. 1S. Condition of Funding (1) The CITY advises the SUBRECIPIENT that a significant change in entitlement funding may result it a change in the current process utilized by the CITY to determine funding allocations. The SUBRECIPIENT aclmowledges that the obligation of the CITY is contingent upon the availability of Federal, State or Local government fimds, which are appropriated or allocated for the payment of such an obligation. If funding levels are significantly affected by Federal budgeting or if funds are not allocated and available for the continuance of the function performed by the SUBRECIPIENT', this AGREEMENT may be terminated by the CITY at the end of the period for which funds are available. At the earliest opportunity, the CI"fY shall notify the SUBRECIPIENT' of any service which may be affected by a shortage of funds. No penalty shall accrue to the CITY in the event this provision is exercised and the CITY shall not be liable for any damages as a result of termination under this provision of thi, AGRFFMFNT. Nothing herein shall be construed as obligating the CITY to expend funds in excess of appropriations authori/ed by law. (2) The SUBRECIPIENT shall allow representatives of the CITY or HUD to inspect facilities which are used in connection with the AGREEMENT or which implement programs funded under this AGRF..EMF.,N"f. F. Matchine Ilre SUBREICIPIE,NT is required to make matching contributions to supplermeut the FSG program in an amount that equals or exceeds the amount of FSG fiends provided by III TD through the CITY. Such contributions shall be entirely consistent with the Matching Requireinenu as outlined by 24 CFR § 576.201. The anticipated source: and City Council 14 — 9 5/4/2021 60A-7 EXHIBIT 1 amount of all matching funds contributed by the SUBRECIPIENT will be enumerated in Exhibit B, Final Budget. G- Program Income (1) Definition- Program income means, as provided by 2 CFR 200M, gross income received by the S;UBRYC1PIFsNf directly vcneraied by a grant supported activity, or earned only as a result of the grant agreement during the grant period. For purposes of ESG, program income will also include any amount of a security or utility deposit returned to the SUBRECIPIENT. (2) Use. The SUBRECIPIENT shall use all income received from said funds only for the same putposes for which said finds may be expended pursuant to the terms and conditions of this AGREEMENT. (3) Counts toward Matching- Costs paid by program income may count toward meeting the matching requirements, provided the costs are eligible ESG costs that supplement the program- 1I. Seoaration of Accounts All funds received by the SUBRI CIPIFNT from the CITY pursuant to this AGRI NIFNT shall be maintained separate and apart from any other funds of the SUBRECIPIENT, or of any principal or member of the SUBRECIPIENT, in an account (the "Account) at a federally insured banking or savings and loan instrurtion with record keeping of such Accounts maintained pursuant to applicable legal requirements- fie SUBRECIPII_Nf shall keep all records of the Account in a mariner that is consistent with generally accepted accounting principles- No monies shall be withdrawn fi-om die Account except tin- expendinu-es relating to essential services, homeless prevention, and/or operations costs, as authorized hereunder. All disbursements from the Account shall be for obligations incurred in the performance of this AGREEMENT and shall be supported by contracts, invoices, vouchers, and other data, as appropriate, evidencing the necessity of such expenditure. The CITY may withhold payment allocation requests if the SUBRECIPIENT fails to comply with the above requirements until such compliance is demonstrated. I- 1_xhenditure of Funds. Much like how HUD requires the CITY, pursuant to 24 CFR 576.203, to expend all of the grant funds for eligible activity costs within 24 months after the date that HUD signs the grant agrxmcnt with the CITY, it is a requirement for the SUBRECIPIENT to expend all of the grant funds for eligible activity costs within the aforementioned period. For the purposes of this paras raph, expenditure means either an actual cash disbursement for a direct charge for a good/service or an indirect cost, or the accrual of a diet charge for a goocllservice or an indirect cost. Failure to expend said funds within said timefranne can result in a reallocation of funds. Prohibited Use ............................................ (1) Generally. Tlne SUBRECIPIENT hereby certifies and agrees that it will not use funds provided through this AGRLEML.Nf to pay for meals for persons other than those identified as homeless or at risk of homelessness. Said funds shall not be used for entertainment purposes or for gifts. The SUBRI_C1111INT cetifies that it will not use said finds for illegal or dishonest conduct, rather, fund use will rennain in compliance with all applicable federal, state, and local laws, including applicable laws not outlined in this AGREEMENT. (2) Lobbying. The SIJ13RYCIP1FNT certifies and agrees that it will comply with federal law (31 U-SC 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the recipient of' a federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an officer or employee of a Member of City Council 14 — 10 5/4/2021 EXHIBIT 1 Congress in correction with awarding of any federal contract, the making of any federal grant or loan, entering into any cooperative agrennent and the extension, renewal, amendinent, or modification of any fcdeal contract, grail, loan, or cooperative agreement. The SUBRECIPIENT shall sign a certification to that effect in a fort as set forth in Exhibit C, attached hereto and by this reference incorporated herein. The SUBRECIPIENI' shall submit said signed certification to the CITY prior to performing any of its obligations under this AGREEMENT and prior to any obligation arising on the part of the CI lY to pay any sums to the SUBRI:CIPIEN'f under the toms and conditions of this AGRFFMFNT- If any funds other than Federal appropriated fiends have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of airy agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Diaclosurc Form to Retort Lobbying," in accordance with its instructions (see Exhibit D). IV. NOTICES The SUBRECIPIENT and the CITY agree that all notices required by this AGREEMENT shall be made in writing and delivered via mail (postage prepaid); conmmcreial courier; personal dchvcay; or sent by faacsimile or other electronic means (provided that receipt is confirmed). Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending- All notices and other written communications under this AGREEMENT shall be addressed to the individuals in the capacities indicated below, unless modified by subsequent written notice_ Communication and details concerning the AGREEMI Nf shall be delivered to the office of, and directed to, the following representatives: CITY: STJBRFCIPIFNT Mikelle Daily Community Development Analyst City of Santa Ana Community Development Agency (M-25) 20 C'ivic ('enter Plaza P.O. Box 1988 Santa Ana, CA 92702-1988 (714)667-2256 (714) 647-6549 FAX mdai ly (n)'.mta •a na.org V. GENERAL CONDITIONS A. Coordination with Continuum of Care The SitTIRFCIPTI NT must work with the Continuum of (anti ("Co("') to ensure the screening, assessment, and referral of program participants are consistent with the CTT'Y's written standards for providing ESG assistance as described in its consolidawd plain. The SUBRECIPIENT must keep documeitaiion evidencing the use of', and written intake procedures for, the centralized or coordinate] asse;sment systein(s) developed by the CoC in accordance with the iequiremertts established by I-iiJD- Sec 24 CFR 576A00. City Council 14 — 11 5/4/2021 60A-9 EXHIBIT 1 R. Evaluation of Program Participants Eligibility and Needs The SUBRECIPIENT must conduct evaluations and rc-evaluations to determine the eligibility of each individual or farmly's eligibility for ESCJ assistance in accordance with 24 CFR 576-40I- C. Terminatinu* Assistance If a program participant violates program zequirements, the SUBRFCJPIFNT may terminate the assistance in accordance with a formal process established by the SUBRECIPIENT that recognizes the rights of individuals, affected. Sec 24 CFR 576.402 D. Shelter and Housing Standards The SUBRECIPIENT certifies that shelters and housing supported by ESG finds and used by FSG beneficiaries will conform to 24 CFR 576AO3. F- ITomclesx Involvement the SUBRECIPIL'N'f certifies that it will involve, to the maximum extent practicable, homeless individuals and families in constructing, renovating, maintaining, and operating facilities assisted under the FSG program, and in providing services for occupants of these facihtics- See 24 CFR 576.405(c) and 42 USC I I375(d). F. Independent Contractor Nothing contained in this AGREEMENT is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employe betwecan the parties. The SUBRECIPIENT and its subcontractors shall at all times remain independent contractors with respect to the services to be performed under this AGREEMENT. The CITY shall be exempt from payment of any Unemployment Compensation, FICA, retirement, life anti/or medical insurance and Workers' Compensation Insurance as the SUBRECIPIENT is an independent contractor. G. Subcorntracu (1) Content Requirements. Tlnc SUBRECIPIENT will include all relevant provisions of this AGREEMENT in all subcontracts entered into as part of the activities undertaken in furtherance of this AGREEMENT and will take appropriate action pursuant to any subcontract upon a finding that the subcontractor is in violation of regulations issued by any federal agency. 'the SUBRECIPIENT will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 (Economic Opportunities for Low- and Very Low-income Persons) and will not allow any subcontract unless the entity has first provided it with a preliminary stateneut of ability to comply with the reyuirenents ofthese regulations. (2) Submission to the CITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the CITY. City Council 14 — 12 5/4/2021 60A-10 EXHIBIT 1 If. Licensing The SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation, and inspections from all ageAncic governing its operatiom. The SUBRECIPIENT shall cnsurc that its staff and subcontractors shall also obtain and maintain all required licenses, registrations accreditation and inspections from all agencies governing the SUBRE APILNT's operations hereunder. Such licensing requirements include obtaining a City business license, as applicable. I. Responsibilities Toward Emnlovees The SUBRECIPIENT accepts full responsibility for payment of any and all unemployment compensation, insurance prenuunts, workers' cornpettsation prettuunts, income tax withholdings, social security withholdings, and any and all Other taxes or payroll withholdings required for all employces engaged in the performance of the work and activities authorized by the AGRLEMEN'l. the SUBRECIPILNT accepts full responsibility for providing workers with proper safety equipment and taking any and all necessary precautions to guarantee the safety ol'workers or persons otherwise affected. J. Insurance and Bondnna (])Generally. 'lhe SUI3RECIPTENT shall maintain liability and property insuranee to cover actionable legal claims for liability or loss which are the result of injury to or death of any person, or damage to property (including property of Grantee) caused by the negligent acts or omissions, or negligent conduct of the SUBRECIPIENT, its employees, agents or subcontractors, to the extent permitted by law, in connection with the activities pursuant to this AGRT LMF:N'f. The SUBRECIPIENT shall comply with the bonding and insurance: requirements of CFR 200.427, and 2 CFR 200.447. The SUBRECIPIENT shall undertake sel'insurance, or shall obtain, at its sole cost, a policy or policies of commercial general liability insurance, or equivalent form. Such insurance: shall: (1) name the City of Santa Ana, its officers, agents, employees and voluirceas as additional insureds; (2) be primary with respect to insurance or self-insurance programs maintained by the CITY; (1) contain standard separation of insureds provisions; and (4) give to the CITY prompt and timely notice of claim made or suit instituted arising out of the SUBRLCIPILNT's operations hereunder. (2) Limits. The SUBRECIPIENT shall maintain, at all tines the following minimum levels of Insurance, and shall, without in any way altering its liability, obtain, pay for, and maintain insurance for the coverages and amounts of coverage not less than those set forth below: a. Workers" Compensation. Amount must comply with State and Federal Laws b. Comprehensive General Liability. $1,000.000 combined single limit of liability for bodily injuries, death, and property damage resulting from any one ocxtuxe nCe, including the following coverages: i. Premises and Operations; and City Council 14 — 13 5/4/2021 60A-11 EXHIBIT 1 ii_ Broad Form Commercial General Liability Fudorsernent to include blanket contractual liability (specifically covering, but not limited to, the contactual obligations assumed by the SUBRECIPIENT'); Personal Injury (with employment and contractual exclusions deleted); and Broad F orm Property Damage coverage. c. TTne ST fBR1;CIPIFN'l"s self -insured retention or deductible per line of coverage shall not exceed S25,000 without the permission of the CITY. (3) Proof of Insurance_ The SURRLCIPII ANT shall furnish the CITY's Clerk of the Council with an insurance certificate from insurance carrier certifying that it caries such insurance and that the policy shall not be canceled nor the coverage reduced except upon thirty (30) days prior notice to the CITY. The SUBRECIPIENI shall, prior to exercising any right under this AGREEMENT'. a. furnish properly executed certificates of insurance and additional insured endorsement to the CITY which shall dearly evidence all coverage required above; b. provide; that such insurance shall not be materially changed or terminated except on thirty (30) days prior written notice to the CITY; c. maintain such insurance for the period covered by this AGREEMENT; and d. replace such certificates for policies expiring prior to the expiration of this AGREEMENT- (4) Company Rating. All insurance coverage shall be written with a company having an A.M. Best Rating of "A" or better and financial size of VIII or larger. (5) Failure to Comply. In the event of any failure by the SURRFCIPIENT to comply with these provisions, the CITY may, aller notice: to the SUBRECIPIENT, suspend the program for cause wntil there is full compliance:. K. Zoning. The SUBRECIPIENT agrees that any facility/property used it furtherance of said program shall be specifically zoned and permitted for such use(s) and activity(ics). Should the SUBRECIPIEN'r fail to have the required land entitlement and/or permits, thus violating any local, state, or federal rules and regulations relating thereto, the SUBRCIPILNT shall immediately make good -faith efforts to gain compliance with local, state, or federal rule; and regulations following written notification of said violation(s) from the CITY or other authorized citing agency. The SUBRECIPIENI' shall notify the CITY immediately of any pending violations. Failure to notify the CITY of pending violations, or to remedy such known violation(s), shall result in termination of grant finding hereunder_ The SURRYCIPIFNT most make all correction., required to bring the facility/prnperty into compliance with tine law within sixty (60) days of notification of the violation(s); failure to gain compliance within such time shall result in tennimtion of grant funding hereunder. L. Displac,�inait and Relocation. The SUBRECIPIENT must asstuc that it has taken all reasonable steps to minimi/c displacement of persons. Relocation must be consistent with requirements as set forth in 24 CFR § 576.408. City Council 14 — 14 5/4/2021 60A-12 EXHIBIT 1 M_ Provisions Required by Law Deemed Inserted_ Each and every provision of law and clause required by law to be inserted in this contract shall be dcemcd to be inserted herein and the AGREEMENT shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted or correctly inserted, then upon the application of either party the contract shall forthwith be physically amended to make such insertion or correction - VI. ASSURANCES AND CERTIFIC.'ATIONS A. Non -Profit Status I he SUBRECIPIEN'1' certifies that: (1) The SUBRECIPIFNT is a duly organized and existing non-profit corporation in good standing and authorized to do business under the laws of the State of California and in possession of required non-profit status under the United States Internal Revenue Code Ifor example, 26 USC § 501(c)(3)1_ The SUBIZECIP11Xl'has lull Tight, power, and lawful authority to accept the funding hereunder and to undertake all obligations as provided herein and the execution, performance, and delivery of this AGREEMENT by the SUBRECIPIENT has been fully authorized by all requisite: actions on the part of the SUBRECIPIENT. (2) If the SUBRECIPIENT"s non-profit status changes at anytine during this AGREEMENT, it will advise the CITY within 15 days. (3) If the SUBRIiCIPILN'f is a private non-profit, it hereby agrees that the members of its Board of Directors will receive no compensation, directly or indirectly, other than reimbursement for expenses, from any funds generated from or because of the ESG program, for their service . (4) As a non-profit, the SUBRECIPIENT" acknowledges that administration of its operation and services are subject to the roquirenetnts as established in 2 CI:R 200_ B. Adherence to Federal, State, and Local Laws and Renulations (1) General_ The SUBRECIPIENT agree, to comply with all requicrnerts of the FSG program and applicable cross -cutting Federal, State, and Local requirements. (2) Economic Opportunities for Low- and Vey Low-income Persons_ The SUBRECIPIENT shall cosmic that employment and other economic opportunities generated by the Pro. -rani shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly those who are recipients of govemnunt assistance for housing. Section 3 of the Housing and Urban Development Act of 1968. 12 U.S.C. 1701u, and regulations at 24 CFR part 135 apply, except that homeless individuals have priority over other Section 3 residents in accordance with § 576.405(e). (3) Civil Rights. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of the Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discinnination Act of 1975, and 41 CFR Chapter 60_ (4) Nondiscrimination and Equal Iimployment Opportunity_ During the performance under this AGREEMENT, the SUI?RECIPIENT shall not discriminate against any employee or applicant for employment City Council 14 — 15 5/4/2021 60A-13 EXHIBIT 1 based on race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, sexual orientation, or any other basis prohibited by applicable law. The SUBRECIPIEN1 shall take affirmative action to ensure that all applicants and employees are treated without regard to race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital starts, familial status, and sexual orientation. The SUBREC'IPIEN'T shall comply with all provisions of Executive Order 11246, Equal Employment Opportunity, as amended by Executive Order 11375 and 12086. (5) Nondiscrimination and Equal Opportunity in Participation_ 'The requirements in 24 CFR part 5, subpart A are applicable, including the nondiscrimination and equal opportunity requirements at 24 C'T R 5105(a). the SUI RYCIPIFNT shall not discriminate against any participant on the ground of race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familiar status, sexual orientation, or any other basis prohibited by applicable law. The SUBREC'IPIFNT shall, through affirmative outreach, make known that use of the facilities, resistance, and services arc available to all on a. nondiscriminatory basis. The SUBRECIPIENT must take appropriate steps to ensure effective communication with persons with disabilities. (6) Americans with Disabilities Act. The SUBRECIPIENT agrees to comply with any federal regulations issued pursuant to compliance with the Americans with Disabilities Act which prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, State and Local government services, and public accommodations. (7) Fair Housing. Under section 808(e)(5) of the Fair Housing Act, HUD has a statutory duty to affirmatively further fair housing. HUD requires the same of its funded sub -recipients_ T'he SUl3RECYPIENT has a duty to affirmatively further fair housing opportunities for classes protected under the Fair tIousing Act. C. Falsification of Information The S1 JBRFCIPIENT represents and warrants that it has made no false statements to the CITY in the process of obtaining this award of the F,SG Funds. D. Drug Free Workplace T'he SUBRECIPILM represents and warrants that it has established the following drug -free workplace policy (1) The unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace for any employee involved in a federally funded program. (2) As an employee working in conjunction with a federally funded program, the employs of the SiJBRFCIPIFNT will be required to: a. Abide by the teams above in statement (1), and b. Notify the appropriate SUBRF,CIPIFNT authorities and CITY officials of any criminal drug statute conviction for a violation occurring in the workplace. Such noullcation shall be made no later than five (5) days after conviction. (3) The CITY and the United States Department of Housing and Urban Development will be notified within City Council 14 — 16 5/4/2021 60A-14 EXHIBIT 1 tern days after receiving notice of any such violation- (4) Within thirty (30) clays of receiving such notice, appropriate personnel action will be taken against such employee, up to and including termination- (5) Each such employee shall be required to participate satisfactorily in a drug abusc assistance or rehabilitation program approved for such purposes by a Federal, State or Local health, law enforcement, or other appropriate agency. E. Religious Organization the SUBRECIPILNT may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of -said program or services_ If the SiIS12ECIPII NT conducts such activities, the activities must be offered separately, in time or location, from said programs or services, and participation must be voluntary for the program participants_ The SIIBRFCIPIFNT shall not, in providing program assistance, discriminate against a program participant or prospective program participant on the basis of religion or religious belief. If the SUBRUCIPIFNT is a religious organization, it retains its independence from Federal, State, and Local govcrmnents, and may continue to cant' out ite mission, including the definition, practice, and expression of its religious beliefs, provided that the religious organization does not use direct ESG funds to support any inherently religious activities. The SUBRECIPIENT agrees that rehabilitation of structures by the religious organization in connection with said program must be in sound accord with the provisions under 24 CFR § 576.406. F. Additiorn<a1 Terms between the CITY and HUD The SUBRECIPIENT agrees further that it shall be bound by the standard terms and conditions used in the Grant Agreement between HUD and the CITY and such other rules, regulations, or requirements as IILTD may reasonably impose in addition to the aforementioned assurances at or subsequent to the execution of this AGRJ;FM6.NI' by the parties hereto. G. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or tinder working conditions which are unsanitary, hazardous, or dangerous to the participants' health or safety. H. Hatch Act The SI IBRFCIPIFNT agrees that no funds provided, nor personnel employed uncle- tbrs AGREEMENT. shall be in any way or to any extent engaged in the conduct of political activities in violation of the Hatch Act, 5 U.S.C. Section 1501 ct seq. City Council 14 — 17 5/4/2021 60A-15 EXHIBIT 1 I. Davis -Bacon Act All laborers and mechanics employed by contractors or subcontractors in the performance of construction work, including alterations and repairs, in excess of $2,000.00, fuianced in whole or in part with federal fimds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 IJ.S_C. sections 276a - 276a-5_ Any such construction contract shall include and comply with the required contract provisions and rules set forth in 29 C.F.R. §5.5. Further, the payroll reports (along with the "Statement of Compliance") and basic records are required to be maintained and submitted, or made available, pursuant to 29 C-F.R. §5.5(a)(3)_ No pa}nnent, advance, grant, loan or guarantee of tunds shall be approved by the federal agency unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of 29 C.F.R. §5.5. A breach ofthe contract clauses in 29 C.F.R. §5.5 may be grounds for termination of the contract, and for debarment as a contractor/subrnnuactor, as provided in 29 C.F.R. §5.12. Labor standards interviews/investigations shall be made as necessary to assure compliance. Sec 29 C.F.R. §5.6(a)(3). VIL AD MINI STRATIVEREO1rIRE.MENTS A. Generally Tine following requirements and standards must be complied with: 2 CFR Part 200, et al. SUBRECIPIENT shall procure all materials, property, or services in accordance with the requirements of 2 CFR 200.318-326_ B. Procurement (1) Compliance. The SUBRECIPIENT shall comply with current HUD and Cll'Y policies concerning the procurement of equipment, goods, and service,, and shall maintain inventory records of all non -expandable personal property as defined by such policy as may be procured with funds provided herein. The SUBRECIPIENT shall report to the CITY all program assets (unexpended progtarn income, property, equipment, etc_), and upon the CITY S request, such assets shall revert to the (71 Y upon termination of this AGRI TMFNT_ (2) Pursuant to 2 CFR 200.331 (a) (4), the Indirect Cost Rate for the SUBRECIPIENT's award shall be an approved federally recognized castrate negotiated between the SI IBRIECIPIL'NT and the Federal government, or, if no cost rate exists, the de miniins indirect cost rate as defined in 2 CFR 200.414(b) Indirect (1 & A) costs shall be used. For this agreement, the de minims indirect cost of 10% will apply. (3) Use and Reversion of Assets. The use and disposition of equipment under this AGREEMENT shall be irn compliance with the requirements of 2 CFR Part 200. C. Reporting Reporting requirements must conform to the policies and procedures as established by the CP1Y and 24 CFR § 576500_ The SUBRECIPIENT shall submit to the CITY, on or before the 15"' clay of October, January, April, and July, as part of the (Quarterly Report: (1) Payment Request_ An original request for reimbursement and true copies of invoices, receipts, agrenncots, or other documentation supporting and evidencing how the ESG Foods have been expended during the applicable quarter. City Council 14 — 18 5/4/2021 60A-16 EXHIBIT 1 (2.) Quarterly Activities and written cumulative (year--to-date) reports of activities, program accomplishments, new program information, and up-to-date program statistic on expenditures, caseload and activities. Failure to provide any of the required documentation and reporting will cause the CITY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the CITY- (3) Matching. Quarterly certification of match, plus docurnentattion of match source. (4) Any other such reports as the CI l'Y (or HUD) shall reasonably require and/or request, including but not limited to the following information_ monthly records of all ethnic and racial statistics of parsons and farm lies benetn"I by the SUBRECIPIENT in the pertimmarce of its obligations under this AGREEMENT. D. Record Keening Sufficient records must be established and maintained to enable the CITY and IJUD to determine whether the ESG requirements are being met_ Record keeping requirements must conform to the policies and procedures as established by the CITY. All accounting records, reports, all evidence pertaining to costs, expenses, and ESG Funds of the SUBRECIPIENT, and all docmncrtts relatcrd to this AGREEMENT shall be maintained and kept available at the SUBRECIPIENT'S office or place of business for the duration of the AGREEMENT and thereafter for five (5) years postconnpletion of an audit in conformity with the LSG requirements, except as hereinafter provided relating to retention of any records or documentation existing, created, or maintained in compliance with Lead -based Paint regulations, which likely require longer retention as outlined below. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this AGRI LMI I', or (b) costs and expenses of this ACiRI1_MI_N`f to which the CITY or any other governmental agency takes exception, shall be retained beyond the five (5) years until complete resolution or disposition of such appeals, litigation claims, or exceptions_ All said records must be retained for the greater of the -- aforementioned dtuation or the periods specified in 24 CFR 576.500(y). All records relating to, or created or maintained in compliance with, the Lead -Based Paint regulations shall be retained and ma im ain-d by the SUBRECIPIENT indefinitely, including without limitation, all inspection report(s), disclosure statement(s), and Clearance report(s). Copies made by microfilming, photocopying, or similar methods may be substituted tor the original records. The CITY, HUD and auditors shall have the right to access all the SUBRECIPIENT records fior as long as the records are retained by the SUBRECIPIENT. In the event the SUBRECIPIENT does not make the above -referenced docmnents available within the City of Santa Ana, California, the SUBRECIPIENT agrees to pay all necessary and reasonable expenses incurred by the CITY in conducting any audit at the location where said records and books of account are maintained - 'I he SUBRLCIPILNT agrees to meet the requirements set forth in 24 CTR § 576.500_ F. Ilomeless Manasement Information System; (IIMIS) (1) Generally. The SUBRECIPIENT must ensure that data on all persons served and all activities assisted under ESG arc entered into the applicable community -wide HMIS in the area in which those persons and activities are located, or with the express knowledge and written consent of the CITY, a comparable database, in accordance with FIUD's standards on participation, data collection, and reporting under a local HMIS. (2) HMIS Agency Agreement. The SUBRECIPIENT shall have an agreement in place with the HMIS lead agency to participate in the regionally HMIS system. A copy of the SUBIREC'IPILNTS agreement with the HMIS lead agency shall be attached to this agreement as Exhibit F. In the case of Domestic Violence service providers City Council 14 — 19 5/4/2021 60A-17 EXHIBIT 1 or other agencies prohibited trom eiteaitng data into IIMIS, documentation from the FIMIS lead agency certifying that the SLIBRECIPIENT is using a comparable database shall be attached to this agreement as Exhibit E. (3) FIMIS Interagency Data Sharing Agreement. The SLBRECIPIENT shall enter into an Interagency Data Sharing Agreement with the I3MIS Lead Agency where the SUBRL-C:IPILM agrees to share HMIS data with other 1:SG horded agencies regarding clients that are served in PSG funded programs, unless prohibited by law - A copy of such agreement shall be attached as Exhibit F-1. (A-) '1 he SUBRI VIPII NT agrees to provide 21 lOC with all required data needed to complete data analysis regarding project performance, data timeliness, or data quality. F. Audit Report Requirements The SLBBRECIPIENT agrees that if the SLIBRECIPIENT expends Seven Hundred Fifty Thousand Dollans (S750,000.00) or more in federal hinds, the SJ IBRECIPIENT shall have an annual audit conducted by a c c ufic d public accountant in accordance with the stanclarcts as set forth and published by the United Staics Office of Management and Budget (2 CFR 200.501a). The SLBRECIPIENT shall provide the CITY with a copy of said audit by April 1 of the year following the program year in which this AGREEMENT is executed. Further, the SLIBRS:CIPIEN'1 shall comply and/or cause compliance with audit report(s) required by applicable provisions of the Lead-13ased Paint Regulations as further detailed below- VIII. EVALUATION AND MONF1'ORING A- Getnenally The CI IN will monitor the performance of the SUBRECIPIENT against goals and performance standards as required ]Herein- The SiJJIR1 CIPIFNT shall provide the CITY all necessary reporting information as required by the CITY in the adaninistration and review of the Prosaram. Substandard pci-formance as determined by the CITY will constitute noncompliant: with this AGREEMENT. If action to correct such substandard performance is not talcen by the SLIBRECIPIENT within a reasonable period of tmnc after being notified by the CITY, contract suspension or tenmination procedure will be initiated- B. Access to Records The SLIBRECIPIENT gives the CITY and HUD, including their authorized representative, access to and the right to examine all records, books, papers, items, emails, and documents, both physical and electronic, relating to the program. C. Audit The CITY shall have the right to audit and nnonitor any program income as a result of an ESG activity. Upon request by the CITY and for audit purposes, the SUBRI:CIPIENT further agrees to provide all files, records, and documents pertaining to related activities and clientele demographic data. Ix. LIABILITY A- Generally City Council 14 — 20 5/4/2021 EXHIBIT 1 Each party to this AGRFF,MFNT acknowledges that it will be liable: for its own negligent acts or negligent omissions by or through itself, its employee,_ agents, and subcontractors. Each patty further agrees to defend itself and themselves, and to pay any judgments and costs arising out of such negligent acts or omissions, and nothing in this AGREEMENT shall unpute or transfer any such liability from one to the other. In other words, the SUBRECIPIENT agrees to be fully responsible for its negligent acts or omissions, or any intentional torarous acts which result in claims or suits against the CITY, and agrees to be liable for any damages proximately caused by said acts or otmis ions_ Nothing herein shall be construed as consent by a State or CITY agency or subdivision to be sued by third parties in any matter arising out of any contract, and nothing herein is intended to serve as a waiver of sovereign immunity where sovereign immunity applies. B_ CITY not Diable for Funds The SUBRECIPIENT further acknowledges that the source of the IiSG Funds is a federal pass -through grant to the SIJBRFCIPIFNT_ The CITY shall have no obligation to advance or pay the SUBRECIPIENT with any funnds other than the ESG Funds the CITY receives from HUD. C. Hold Harmless The SUBRECIPIENT shall defend, indemnify and save harmless the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the CITY, and shall defend, indemnify and save harmless the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers compensation claims and attorney fees/expense for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or omissions of the SUI3RIVINI NT, its officers, directors, cmployees, agents, subcontractors, and suppliers arising out of the SUBRFCIPIFNT's performance of this AGREEMENT- X. ENVIRONMENTAL CONDITIONS A. Generally ESG activities are subject to environmental review by HUD undo the environmental regulations in 24 CFR SO - The SUBRECIPIENT or any contracunr of the SUBRECIPIENT, may not acquire, rehabilitate, convert, lease, repair, dispose of', demolish, or construct property for a project under this part, or commit or expend HUD or local funds for eligible activities under this part, until HUD has performed an environmental review under 24 CFR pan 50 and the recipient has received HUD approval of the property. The SUBRECIPIENT agrees to comply with all applicable environmental requirements insofar as they apply to the performance of this AGREEMENT, including but not limited to the Clean Air Act, the Federal Water Pollution Control Act and the Flood Disaster Protection Act. If applicable, the SUBRLCIPIL-NT also shall comply with the Historic Preservation requirements of National Historic ['reservation Act of 1966_ B. Lead -based paint remediation and disclosure The Lead -Based Paint Poisoning Prevention Act (42 U_S_C_ 4821-4846), the Residential Lead -Based Paint Flazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations in 24 CFR part 35, subparts A, B, H, J, K, M, and R apply to all shelters assisted under ESG program and all housing occupied by program participants that were built before 1978. City Council 14 — 21 5/4/2021 60A-19 EXHIBIT 1 C. Assignment of'Responsibilitics By this AGREEMENT, the SUBRECIPIENI' will accept assignment from the CITY of all responsibilities set forth in Subpart K of 24 CFR 35. D. Compliancewith Subpart K lone purpose of Subpart K is to establish procedures to eliminate as far as practicable lead -based paint ("I AP-) hazards in a residential property that receives Federal assistance under- certain IdUD programs for acquisition, leasing, support services, or operation. In connection with the grant funds under this AGREEMENT, the CITY requires that the SUBRECIPIENT comply and show evidence of compliance with all applicable subparts of 24 CFR 35, and especially, Subpart K (`IMP Regs" y The SUBRECIPIENT shall conduct the following activities, for the dwelling unit, common areas servicing the dwelling unit, and the exterior surfaces of the building in which the dwelling unit is located: (1) A visual assessment of all painted surfaces in order to identrly deteriorated paint; (2) Paint stabilization of each deteriorated paint surface, and clearance, in accordance with §§ 35.1330(a) and (b), before occupancy of a vacant dwelling unit or, where a unit is occupied, immediately after receipt of Federal assistance; and (3) C)ngoin, lead -based paint maintenance activities into regular building operations, in accordance with § 35.1355(a), if the dwelling unit has a continuing, active financial relationship with a Federal housing assistance program, except that mortgage insurance or loan guarantees are not considered to constitute all active programmatic relationship for the purposes of'this part- (4) And, notice to occupants in accordance with §§ 35125(b)(1) and (c), describing the results of the cleai antic examination- F. Notification of l,I3P 1la/ard The SUBRECIPIENT shall provide to all occupants of housing: (1) In accordance with Section 35.130 of the LBP Regs - the 1,13P bazard information pamphlet. The pamphlet shall be the EPA/1-IUD/Consumer Product Safety Commission lead hazard information pamphlet or an EPA -approved equivalent. Tlie current form and version of the pamphlet can be found at: http://www.hud.gov/offices/lead/library/enforcement/fs-disdl pdf (2) In accordance with 24 CFR 35, Subpart A, all available information and knowledge regarding the presence of LBP and LBP hazards prior to leasing a horsing trait. City Council 14 — 22 5/4/2021 60A-20 EXHIBIT 1 (3) In accordance with 24 CFR 35, Subpart A, notification in writing of the results of the presumption of LBP and/or LBP hazards, results of any lead hazard evaluation, and any lead hazard reducuon work. I'. LBP Information Summary For purposes of information only and in no respect intended to be a representation or warranty of the provisions of the LISP Regulations, the CITY has caused to be prepared an information summary relating to the LBP Regulations and Application to dwelling units that may be occupied by recipients of services and/or funding from the SUBRECIPIENT under this AGRLEMEN'L CITY staff will cooperate with and be available to the SUBREC'1PIEN1 to assist in implementation of compliance with the LBP Regs as to residential dwelling units to be assisted by the SUI3RVC1PIFNT_ The parties acknowledge and agree the CITY shall not be bable or responsible for the accuracy of such summary, and the SUBRECIPENT is directed to the LBP Regulations and implementing guidance: published and provided by HUD relating to compliance with such LBP Regulations. G. I'xcmptions Section 35.115(a) provides exemptions from Subparts B through R. For example, lead -based paint requirements do not apply to housing assistance if the assistance lasts less than one hundred (100) days. XL CONFLICTS OF INTEREST The SUBRLOPIENT shall comply with 2 (FR ?00.11) with respect to the use of program funds to procure services, equipment, supplies, or other property. With respect to all other decisions involving the use of program funds, the following restriction shall apply: No person who is an employee, agent, consultant, officer, or elected or appointed official of the SUBRECIPIENT and who exercises or has exercised any tunctions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have in interest in any eonti act, subcontract, or agreement with respect thereto, or the proceeds there under, either for himself or herself, or for those with who he or she has family or business tics, during his or her tenure or for one (1) year thereafter_ The SIJBREC'"IPIENT agrees to abide by the ESG Program's Conflict of Interest provisions as expressly detailed in 24 CFR § 576.404 regarding Organizational Conflicts of Interest and Personal Conflicts of Interest. All contractors of the SUBRECIPIENT must comply with the same requirements that apply to the SUBRECIPIENT under this section. XII. ASSIGNABILFFY None of the duties of, or work to be performed by, the S'UBRIiCIPILNT under this AGRI:I,'MEN`I' shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of the CITY_ The SUBRECIPIENT roust submit all Subcontracts and other agreements that relate to this AGREEMENT to the CITY. No subcontract or assignment shall terminate or alter the legal obligations of the SUBRECIPIENT pursuant to this AGRITMEN L XI11. EXCLUSIVI"I'Y OF AGREEMENT This AGRJ EMFNT superwedes any and all other agreements, either- oral or in writing, between the parties hereto City Council 14 — 23 5/4/2021 60A-21 EXHIBIT 1 with respect to the use of tlne CITY's FSG Funds by the SUBRECIPIENT and contains all the covenanu and agreements between the parties with respect to such ESG Funds in any manner whatsoever. Each patty to this AGREEMENT aclmowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in writing and signed by both the CITY and the SIJBRI VIPIENT. XIV. AMENDMENTS OR MODIFICATIONS The SUBRECIPIENT shall not obligate, encumber, spend, or otherwise utilize program flutds for any activity or purpose not included or not in conformance with the budget as apportioned and as submitted to the CITY unless: (1 ) The SUBRFCIPIFNT has received explicit written approval from the CITY to undertake sueh actions, or (2) Budget change may be made among approved program activities and among approved budget categories so long as the specific project activity has been approved, there is no change to the touil grant amount, and the chatngc� to the budget are docurriented_ Any program modification request by the SUBRECIPIENT must be requested at least forty-five (45) days prior to the end of the term of this AGREEMENT. No modification to this AGREEMENT shall be binding by either party unless in writing and signed by both parties. In the event that the CITY approves any amendment to the funding allocation, the SUBRECIPIENT shall be notified in writing and such notification shall constitute am official amendment. The CITY may, at itg discretion and upon provision of proper notice to the SUBRECIPIENT, amend this AGREEMENT to conform with changes in Federal, State, and/or the CITY laws, regulations, guidelines, directives, and objectives_ Such amendments shall be incorporated by written amendment as a part of this AGRti EMENT- XV. VIOLATION OT TL<'RMS AND CONDITIONS A. Termination If, due to any cause, the SIIBRECIPIEW fails to comply with the terms, conditions or requirements of this AGRLI::MIiNT', or any prior AGRI FMFNT whereby ESG hutcl, were: received by the SUBRICIPIENT, whether- stated in a Federal statntc or regulation, an assurance, a State plan or application, a notice of awat d, or elsewheic, the CITY may terminate or suspend this AGREEMENT in accordance with 2 CFR 200.339 and in accordance with 2 CFR 200.140 by giving written notice, and the CITY may request in writing that all or some of the grant funds be returned even if the SUBRECIPIENT leas expended the funds. If the SUBRECIPIENT reports inaccurately, or if on audit ttnerc is a disallowance of certain expenditures, the SUBRE.CIPIENf agrees to remedy the acts or omissions causing the disallowance and repay the CfTY all amounts spent in violation thereof If the SUBRECIPIENf engaged in fraudulent activity to obtain and/or,justify expenditure of the ESG timds granted hereunder, the SUBRCCIPIEN1 shall be required to reimburse the CITY of all such fluids that were obtained and/or spent under fraudulent circumstances, and the CITY reserves the right to take other- re-itnedies that may be legally available. City Council 14 — 24 5/4/2021 60A-22 EXHIBIT 1 The SUBRECIPIENT agrees to return all tunds as requested by the CITY under ibis section within thirty (30) days of receipt of the written request. Any objections regarding terminations or suspensions shall be made by the SUBRECIPIENT in writing and mailed to the CITY pursuant to the above NOTICES section. XVI. CLOSE-OUT Tlnc SUBRECIPIENT agree; to comply with the closeout procedures detailed in 2 CFR 200.343, including the following: 1. SUBRhCIPILM must submit, no later than ninety (90) calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terns and conditions of the Federal award: 2. Unless the CITY authori7c� an extension, SUBRECIPIENT must liquidate all obligations incurred under the Federal award not later than ninety (90) calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award; 3. SUBRECIPIENT must promptly refund any balances of unobligated cash that the CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for use in other projects (See OMG Circular A-129 and 2 CFR 200.345); 4. SUBRECIPIENT must account for any real and personal property acquired with Federal funds or received from the Federal government in accordance with 2 CFR 200310-20031G and 200329; and, 5. 'ITie CITY should complete all closeout actions for the Federal award no later than one year after receipt and acceptance of all required final reports_ XVIL VALIDITY AND SEVERAB11.P1Y The invalidity in whole or in part of any provision of this ARGRITMGNT shall not void or affect the validity of any other provision of tbii AGREEMENT_ Whenever possible, each provision of this AGREEMENT shall be interpreted in such manner as to be effective and valid tinder applicable law, but if any provision of this AGR1:LMl`NT is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of sueb prohibition or invalidity, without invalidating the remainder of such provisions of this AGREEMENT. XVIII. LAWS GOVERNING THIS AGREEMENT This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, and all applicable federal laws and regulations. XIX. WAIVER No delay or omission by the C1-1Y hereto to exercise any right or power accruing upon any noncompliance or default by the S UBRLOPIEN'f with respect to any of the terms of this AGRLE• MEN'I' shall impair any such right or power or be construed to be a waiver thereof A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be pe fornel by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition, or agreement hereto contained. City Council 14 — 25 5/4/2021 60A-23 EXHIBIT 1 XX. AGREEMENT DOCUMENT, EXIIIIII-IS, AND A7"[ACIIMI'N7"S All of the attachments and exhibits attached to this AGREEMENT are deemed incorporated by referLnee. This document may be executed in three (3) countctpans, each of which shall be dcx mcd to be an original. Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terns of this AGREEMENT, and shall indemnify the CITY fully, including reasonable costs arid attorneys fees, fox- any injuries or damages to the CITY in the event that such authority or power is not, in fact, lield by the sigpatory or is withdrawn. IN WI7NFSS WITERLOE, the patties hereto have executed this AGRUNIFNT on the date and year test above written. ATTEST: EST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONiA CARVALHO City Attorney By: RYA N 0 Assistant City RECOMMENDED FOR APPROVAL: STEVEN A. MINDOZA Executive Director Community Development Agency CITY OF SANTA ANA a municipal corporation KRISTINE RIDGE City Manager SUBRECIPIENT. Tax ID: DUNS #: City Council 14 — 26 5/4/2021 60A-24 .M;X41 EMERGENCY SOLUTIONS GRANT MLMORANDUM Oh UNDERSTANDING BETWEEN THE CITX OF SANTA ANA AND SANTA ANA POLICE DEPARTMENT (24 CER Parts 91 and 576) THIS GRANT AGREEMENI, is hereby made and enured into this , 2020 by and between the City of Santa Ana, a charter city and municipal corporation of the State of California, herein called the "CITY" and SANTA ANA POT,ICE DEPARTMENT, a California nonprofit organization, herein called the "SIJBRF,CIPIENT". RECITALS: 1. The CITY is the recipient of Emergency Solutions Grant ("ESG") funds from the United States Department of Housing and Urban Development ("IIUD"), pursuant to subtitle B of title IV of the McKinney-Vcnto Homeless Assistance Act [42 U.S.C. 11371-11378], for the rehabilitation or conversion of buildings for use as emergency shelter for the homeless, for the payment of certain expenses related to operating emergency shelters, for essential services relate] to emergency shelters and street outreach for the homeless, and for homelessness prevention and rapid re -housing assistance Catalogue of Federal Domestic Assistance ("('I'DA") 14231 and Federal Award Identification Number (FAIN) E-20-MC-06-0508. 2. The CITY has approved the provision of federal funds under the LSG to be used in the operation of an emergency solutions program ("program") for tine homeless or at -risk of homelessrness of the City of Santa Ana is turthe described by Exhibit A, Scope of Work, attached hereto and by this reference incorporated herein. 3. The STTBRECIPIENT represents that it has the requisite qualifications, expertise, and expeience in the provision of emergency solutions programs for the homeless or at -risk of homelessness and is willing to use said liederal ftmds to operate said program. 4. The SITBRECIPIE.,NT atnces to assist individuals and families that are homeless or at risk of homelessness in obtaining appropriate supportive services including, but not limited to: temporary and permanent housing, relocation and stabilisation services, rapid rc-housing assistance, medical and mental health treatment, counseling supervision, and other services essential for achieving independent living, as well as other federal, state, local and private assistance available for such individuals_ 5. 1lie SUBRECIPIENT has agreed to be reimbursed for the above services in an amoaunt not to exceed S XX,XXX in grant fimding for Data Collection and Outreach and Engagement Services. 6. This AGREEMENT is contingent upon the award of Emergency Solutions Grant funds frorn the United States Department oT Housing and Urban Development. T The CITY and the SITI3RECIPII:NT have duly executed iris AGRJ;EME.NT for the expendinuTe and utilization of said hinds. NOW THEREFORE., it is agreed by and between the parties that the foregoing Recitals are a substantive part of thrs AGREEMENT and the following tenns and conditions are approval and together with all exhibits and attachments hereto, shall constitute the entire AGREEMENT between the CITY and the SUBRECIPIENT: City Council 14 — 27 5/4/2021 60A-25 EXHIBIT 1 A. General Administration I lie SUBRECIPIL-M' agrees to implement this activity as set forth in detail in Exhibit A, Scope of Work, which shall provide a description of each activity, including the services to be performed, the person or entity providing the service, the estunated number of recipients of the service, and the manner and means of the services_ I3. Levels of Accomnlishment — Goals and performance Measures The SUBRECIPIENT shall be responsible to accomplish the levels of perfonnance as set forth in Exhibit A and report such treasures quarterly to the CITY. If the SUBRECIPIENT estimates such goals will not be meat, the SUBRECIPIENT is to contact the CITY, at which time the CITY will determine if any adjustments to the grant award is appropriate. C. Staffing 'lhe SUBRECIPIENT shall ensure adequate and appropriate staffing is allocated to each ESC4 activity. Nothing contained in thi, AGRFl:MFNT is intended to, or shall be construed in any manner, as creating or cstablishing the relationship of employer/employee between the parties. This AGRE..EMEN"C shall take eft'eet on July 1, 2020, and shall tenninate on June 30, 202 t, unless otherwise cancelled or modified according to the terms of this AGREFMP.NI'_ The City was allocated $500,947 in Emergency Solutions Chant finds under the McKinney-Vento Homeless Assistance Act for fiscal year 2019-2020 from the Department of Housing and Urban Development CITY agrees to pay to SUBRECIPIENT when, if and to the extent federal Binds are received under provisions of the Act a sum not to exceed $XX,XXX for SUBRECIPIENTS performance in accordance with the Budget attached hereto as "Exhibit B" during the period of this Agreement. Said stun shall be paid after CI'I Y receives invoices submitted by SUBRECIPIENT as provided hereinabove. A. Amount and Expenditure End Date The CITY agfces to reimburse the: SUBRECIPIENT a maximum amount not to exceed $XY XXX from Emergency Solutions Grant (ESG) funds, as outlined in Exhibit B, final Budget, and such funds shall be expended by the SUBRECIPIENT on or before June 30, 2021. SUBRECIPIENT has the ability to adjust line item amounts in the Budget with the written approval of the CI'l Y-s Executive Director of the Community Development Agency, so long as the total Budget amount does not increase_ B. Invoicing Procedure The Si TBRECIPIENT shall submit quarterly invoices (on or before the 15" clay of October, January, April, and July) in a fonn prescribed by the CITY, detailing such expenses. Such schedule may be modified with the approval of the CITY. 2 City Council 14 — 28 5/4/2021 60A-26 EXHIBIT 1 C. payment Payment is subject to the receipt and approval of such invoices and quarterly activity reports, as hereinafter more fully set forth below under Repotting, with the final payment subject to the satisfaction of the condition precedent of submittal of complete invoicing and reporting information due on or before July 15 of the applicable funding year. The CITY shall pay .such invoices withum thirty (30) days after receipt thereof, provide{ the CITY is satisfied that such expenses have been incurred within the scope of this AGREEMENT and that tlra SUBRF,CIPIF,NT is in compliance with the terms and conditions of this AGREEMENT. -[he thirty (30) day period will discontinue if the reimbursement request is determined to be incomplete and will restart the thirty day timclinc once the remaining required elements have been submitted. Failure to provide any of the required documentation and reporting will cause the CI TY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the CI FY. D. Use of Fundy The SUBRECIPIENT agrees to use said finds pursuant to this AGREEMENT to pay for necessary and reasonable costs allowable under federal law and regulations to operate said program only. Said amounts shall include and will be limited to, street outreach, emergency shelter, homelessness prevention, rapid re -housing assistance, housing relocation and stabilization services, short-term and medium -term rental assistance, and ITonrele�s Managemeut Information Systems ("IIMIS') data contribution as set forth in 24 CFR § 576.101 — § 576.107. Allowable program costs are detailed in the Budget, as set forth in Exhibit B, attached hereto and by this reference incorporated herein_ "the SUBRI?CIPIENI S failure to perform as required may, in addition to other remedies set forth in this ACIRI LMFNT, result in reaclimtment of the amount of fiords the CITY is othewise obligated to pay to the SITBRECIPIENT pursuant to the tc'ruS hereof_ The SUBRECIPIFNT agrees that the homeless shelter/services under said program shall be available for the entire period during which said finds are provided. E. Condition of Funding (1) The CI I advises the SUBRI:CIPIENT that a significant change in entitlement funding may result in a change in the current process utilized by the CITY to determine funding allocations_ the SUBRFOPI1 NI' acknowledges that the obligation of the CITY is contingent upon the availability of Federal, State or Local govern rent funds, which are appropriated or allocated for the payment of such an obligation. If trending levels are significantly affected by Federal budgeting or if funds are not allocated and available for the continuance of the function performed by the S11IIRI;('IPIL"NT, this AGR1:I:MIiNT may be terminated by the CITY at the end of the period for which fiends are available. At the eathest opportunity, the CITY shall notify the SIJBRECIPIFNT of any service which may be affected by a shortage of funds. No penalty shall accrue to the CITY in the event this provision is exercised and the CITY shall not be liable for any damages as a result of termination under this provision of this AGREEMENT. Nothung herein shall be construed as obligating the CITY to expend funds in excess of appropriations authorized by law- (2) The Si T3RECIPIENT shall allow representatives of the CITY or ITUD to inspect faeilitie� which are used in connection with the AGREEMENT or which implement programs funded tinder this AGREEMENT. F. Matchine The SUBRECIPIENT is required to snake matching contributions to supplement the ESG program in an amount that equals or exceeds the amount of ESG funds provided by HUD through the CITY_ Such contributions shall be entirely consistent with the Matching Requirements as outlined by 24 CI R § 576.201. The anticipated source and 3 City Council 14 — 29 5/4/2021 soy-27 EXHIBIT 1 amount of all matching funds contributed by the SUBRECIPIENT will be enumerated in Exhibit B, Final Budget- G. Protnam Income (1) Definition. Program income means, as provided by 2 CFR 200.80, gross income received by the SIIBRECIPIEN"I directly generated by a grant support activity, or earned only as a result of the grant agraancm during the grant period. For purposes of ESG, program income will also include any amount of a security or utility deposit returned to the SUBRECIPIENT. (2) Usc- The SUBRFCIP11:NT shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the nrnns and wnditions of this AGRFFMFNT- (3) Counts toward Matching. Costs paid by program income may count toward meeting the matching requirements, provided the costs are eligible ESG costs that supplement the program. H- Separation of Accounts All funds received by the SUBRI CIPIFNT from the CITY pursuant to this AGRFIiMENT shall be maintained separate and apart from any other funds of the SUBRFCIPIFNT, or of any principal or member of the SUBRECIPIENT, in an account (the -Account") at a federally insured banking or savings and loan institution with record ke-ping of such Accounts maintained pursuant to applicable legal rcquicments. The SUBRECIPIENT shall keep all records of the Account in a manner that is consistent with generally accepted accounting principles. No monies shall be withdrawn from the Account except for expenditures relating to essential services, homeless prevention, and/or operations costs, as authorized hereunder- All disbursements front the Account shall be for obligations incurred in the performance of this AGREEMENT and shall be supported by contracts, invoices, vouchers, and other data, as appropriate, evidencing the necessity of such expenditure. Tlne CITY may withhold payment allocation requests if the SUBILLCIPIL:NT fails to comply with the above requirements until such compliance is demonstrated - I. Expenditure of Funds Much like how HUD requires the CITY, pursuant to 24 CFR 576.203, to expend all of the grant limds for eligible activity costs within 24 months after the date that HUD signs the grant agreement with the CITY, it is a requirement for the SUBRECIPIENT to expend all of the grant funds for eligible activity costs within the aforementioned period- For the purposes of this paragraph, expenditure means either an actual cash disbursement for a direct charge for a good/service or an indirect cost, or the accrual of a direct charge for a good/service or an indirect cost- Failure to expand said funds within said timeframe can result in a reallocation of funds- k Prohibited Use (1) Generally. Tlne SUBRECIPIENT hereby certifies and agrecs that it will not use funds provided through this AGREEMENT to pay for meals for persons other than those identified as homeless or at risk of homelessness. Said funds shall not be used for entertainment purposes or for gifts. The SUBRECIPIFNT certifies that it will not use said funds for illegal or dishonest conduct, rather, fund use will remain in compliance with all applicable federal, state, and local laws, including applicable laws not outlined in this AGREEMENT. (2) Lobbying. The SUBRECIPIENT certifies and agree that it will comply with federal law (31 U.S.C. 1352) and regulations found at 24 C:FR Part 87, which provide that no appropriated funds may be expended by the recipient of a federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an office- or employee of a Member of rd City Council 14 — 30 5/4/2021 60A-28 EXHIBIT 1 IV V Congress in connection with awarding of any federal contract, the making of any federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement_ the SUBIZE('1131LNT shall sign a certification to that effect in a form as set forth in Exhibit (', attached hereto and by this reference incorporated beein. The Si BRFCIPIFNT shall submit said signed eerutiieation to the CITY prior to performing any of its obligations under this AGREEMENT and prior to any obligation arising on the part of the CITY to pay any stmns to the SUBREC'IPIENT under the terns and conditions of this AGRFFMF:NT_ If any funds other than Federal appropriated fiends have been paid or will be paid to any per no n for influencing or attcnnpting to influence: an officer or employee of any agency, a Member of Congress, an oflice or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions (see Exhibit D). 'I lie SUBRiiCIPILNT and the CI'I Y agree that all notices required by this AGRUS:MLNT shall be made in writing and delivered via mail (postage prepaid); commercial courier; personal delivery; or sent by facsimile or other electronic means (provided that receipt is conf rnied)_ Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this AGREEMENT shall be addressed to the individuals in the anpacitic.s indicated below, unless modified by subsequent written notice. Communication and details concerning the AGRLLMLNf shall be delivered to the office of, and directed to, the following representatives 0 IN Mikekle Daily Community Development Analyst City of Santa Ana Community Development Agency (M-25) 20 Civic Centex Plaza P.O. Box 1988 Santa Ana, CA 92702-1988 (714) 667-2256 (714) 647-6549 FAX radar1y0)'.anta ana.ong A. Coordunation with Continuum of Care SCIBREOPILNf: David Valentin Chief of Police Santa Ana Police Department 60 C'ivie Center Plaza Santa Ana, CA 92701 714-245-8249 The SURRECIPIENT ruust work with the Continuum of Cara (" Co(') to ensure the screroing, assessment, and referral of program participants are consistent with the CIT'Y's wrincu standards for providing FSG assistance as described in its consolidawd plan. The SUBRECIPIENT must keep documentation evidencing the use of, and written intake procedures for, the ecntralized or coordinated assessment systenn(s) developed by the CoC in accordance with the requirements established by HUD. See 24 CPR 576.400. City Council 14-31 60A-29 5/4/2021 EXHIBIT 1 B. Evaluation of Program Participants Eligibility and Needs The SUI3RLCIPIFNT must conduct evaluations and re-evaluations to determine the eligibility of each individual or family-s eligibility for ESG assistance in accordance with 24 CFR 576.401. C. Terminating Assistance If a program participant violates program requirements, the SUBRECIPIENT may terminate the assistance in accordance with a formal process established by the SU13RECIPIEN'1 that recognizes the rights of individuals affected _ See 24 CFR 576A02 D. Sheltr_ai�d_IIousvig_Standards The Si J13RFCIPIENT cettitics that sbeltes and housing supported by FSG Sands and used by FSG beneticiaies will conform to 24 CFR 576.403. F. florneless Involvement The SUBRECIPIENT cc^rtific-s that it will involve, to the maximum extent practicable, homcl ss individuals and families in constructing, renovating, maintaining, and operating facilities assisted under the FSG program, and in providing semcs for occupants of these facilntcs_ See 24 CFR 576.405(e) and 421 JSC 11375(d). F. Independent Contractor Nothing conta ned in this AGREEMENT is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties_ The SiJBIZECIPIENT and its subcontractors shall at all times rennayn independent contractors with respect to the services to be performed under this AGREEMENT. 'Tlne CITY shall be exempt from payment of any Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the SIJBRECIPIENf is an independent contractor- G. Subcontracts (1) Content Requirements. The SUBRFCIPIF,NT will include all relevant provisions of this AGRFFMFNT in all subcontracts entered into as part of the activities undertaken in furtherance: of this AGREEMENT and will take appropriate action pursuant to any subcontract upon a finding that the subcontractor is in violation of regulations issued by any, federal agency. The SUBRECIPIENT will not subcontract with any entity where it has notice or knowledge that the latter- has been found in violation of regulations under 24 CFR Part 135 (Economic Opportunities for Low- and Very Low -Income Persons) and will not allow any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. (2) Submission to the CITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the CITY. M City Council 14 — 32 5/4/2021 60A-30 EXHIBIT 1 H. Licensing The SUBRYCIPII_NT agrecs to obtain and maintain all required licenses, registrations, accreditation, and inspections from all agencies governing its operations. The SUBRECIPIENT shall ensure that its staff and subcontractors shall also obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing the SUBRECIPIENT's operations hereunder. Such licensing requirements include obtaining a City business license, as applicable. I. ResponsibilitiesTowardEmplovees The SlJBRFCIPILNT accepts lull rcponsibility for payment of any and all unemployment compensation, insurance premiums, workers' cotnpenaation prcinimna, income tans withboldings, social security withholdings, and any and all other taxes or payroll withholdings required for all employees engaged in the performance of the work and activities authorized by the AGREEMENT. The SUBRE,CIPIENT accepts full responsibility fen providing workers with proper safety equipment and taking any and all necessary precautions to guarantee the safety of workers or persons otherwise affected- J. Insurance and Bondiig (I)Gencrally. The SUBRECIPIENT shall maintain liability and property insurance to Cover actionable legal claim for liability or loss which are the result of injury to or death of any person, or damage to property (including property of Grantees) caused by the negligent acts or omissions, or negligent conduct of the SUBRECIPIENT, its employees, agents or subcontractors, to the extent permitted by law, in connection with the activities pursuant to this AGREEMENT. 'Fhe SUBRECIPIENT shall comply with the bonding and insurance requirements of 2 CF12 200.427, and 2 CFR 200.447. the SUBRFCIPILNT shall undertake self-insurance, or shall obtain, at its sole cost, a policy or policies of commercial general liability insurance, or equivalent form. Such insurance shall: (1) name the City of Santa Ana, its officers, agents, employees and volunteers as additional insureds; (2) be primary with respect to insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of insureds provisions; and (4) give to the CITY prompt and timely notice of claim made or suit instituted arising out of the SUBRECIPIENT's operations hereunder. (2) Limits_ The SUBRECIPIENT shall maintain, at all time,,, the following minitnuin levels of Insurance, and shall, without in any way altering its liability, obtain, pay for, and maintain insurance for the coverages and amounts of coverage not less than those set forth below: a. Workers' Compensation. Amount must comply with State and Federal Laws b. Comprehensive General Liability. $1,000,000 combined single limit of liability for bodily injuries, death, and property damage resulting from any one occurrence, including the following coverages: i_ Premises and Operations; and 7 City Council 14 — 33 5/4/2021 60A-31 EXHIBIT 1 ii. Broad Form Commercial General Liability Endorsement to include blwket contractual liability (specifically covering, but not limited to, the contractual obligations assumed by the SUBRECIPIEN'I); Personal Injury (with employment and contractual exclntsions deletcd); and Broad Fonn Property Damage coverage- C. The SUDRECIPIENT's self -insured retention or deductible per line of coverage shall not exceed S'25,000 without the permission of the CITY. (3) Proof of Insurance. The SUBRECIPIENT shall furnish the CITY's Clerk of the Council with an insurance certificate from insurance carrier certifying that it carries such insurance and that the policy shall not be canceled nor the coverage reduced except upon thirty (30) clays prior notice to the CITY - The SI TBRFCIPIFNT shall, prior to exercising any tight under this AGREEMENT: a. furnish properly cxe utcd certificates ates of iusnnance and additional desired endorsement un the CITY which shall clearly evidence all coverage required above; b- provide that such insurance shall not be materially changed or terminated except on thirty (30) days prior written notice to the CITY; c. maintain such insurance for the period covered by this AGREEMENT; and d. replace such certificates for policies expiring prior to the expiration of this AGREEMENT. (4) Company Rating- All insurance coverage shall be written with a company having an AM- Best Rating of "A" or better and financial size of VIII or larger- (5) Failure to Comply- In the event of any failure by the SUBRLCIPIL'N'I to comply with these provisions, the CITY may, after notice to the SUBRECIPIENT, suspend the program for cause until there is full compliance- K- zoninfr. The SUBRECIPILN'f agrees that any facility/property used in furtherance of said program shall be specifically zoned and pannitted for such use(s) and activity(ie )- Should the SUBRFCIPIFNT fail to have the requited lanil cntidanant and/or permits, thus violating any local, state, or federal rules and regulations relating thereto, the SUBRF,CIPIENT shall inmehately make good -faith efforts to gain compliance with local, state, or federal rules and regulations following written notification of said violation(s) from the CITY or other authorize) citing agency. The SUBRECIPIENT shall notity the CITY immediately of any pending violations. Failure to notify the CITY of pending violations, or to remedy .such lniown violation(s), shall result in termination of grant finding hcreundc. The SUBRECIPIENT must male all connections required to bring the facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure to gain compliance within such time shall result in termination of grant finding hereunder. L. Displacement and Relocation. T'he SUBRGCIPILNT must assure that it has taken all reasonable steps to minimize ilisplaeement of pasons- Relocation must be comistcnt with rcquirancnts as set forth in 24 CFR § 576AW City Council 14 — 34 5/4/2021 60A-32 EXHIBIT 1 M. Provisions Required by Law Deemed Inserted. F.ach and every provision of law and clause required by law to be inserted in this contract shall be deemed to be inserted herein and the AGREEMENT shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted or correctly inserted, then upon the application of either party the contract shall forthwith be physically amended to make such insertion or correction. V1. ASSURANCES AND CERTIFICATIONS A. Non -Profit Status The SUBRECIPIENT certifies that (1) The SUBItLCIPIL.NT is a duly organized and existing non-profit corporation in good standing and authorized to clo business uncle- the laws of the State of California and in possession of required non-profit status under the United States Internal Revenue Cock [for example, 26 USC § 501(c)(3)]. The SUBRECIPIENT has full right, power, and lawful authority to accept the funding hereunder and to undertake all obligations as provided herein and the execution, performance, and delivery of this AGREEMENT by the S(313RECIPIENT has been fully authorized by all requisite actions on the part of the SUBRLCI PI1NT_ (2) If the SUBRECIPIENT's non-profit status changes at anytime during this AGREEMENT, it will advise the CIF Y within 15 clays. (3) If the SI JBRECIPIENT is a private non-profit, it hereby agrees that the members of its Board of Director, will receive no compensation, directly or indirectly, other than reimbursement for expenses, from any funds generated from or because of the ESG program, for their service. (4) As a non-profit, the SUBRECIPIENT acknowledges that administration of its operation and services are subject to the requirements as established in 2 CF'R 200. 13. Adher�tce,to l ederal ,_Stan,_altd. Lgca1.1,1ws.ailcl_12egulaticn7s (1) General. The SUBRECIPIENf agrees to comply with all requirements of the ESG program and applicable cross -cutting Federal, State, and Local requirements_ (2) Economic Opportunities for Low- and Very Low-income Persons. Tine SUBRECIPIENI shall ensure that employment and other economic opportunities generated by the Program shall, to the greatest extent feasible, be directed to low- and very low-income person,, particularly those who are recipients of government assistance for housing. Section 3 of the Housing and Urban Development Act of 1968, 1.2 U.S-C. 1701u, and regulations at 24 CER part 135 apply, except that homeless individuate have priority over other Section 3 residents in accordance with § 576.405(e). (3) Civil Rights. The SIIBRECIPIENC agrees to comply with Title VI of the Civil Rights Act of 1964, as amencled, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of the Title I of the Housing; and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, and 41 CER Chapter 60. (4) Nondiscrimination and Equal Employment Opportunity. During the performance under this AGREEMENT, the SUBRECIPIENT shall not discriminate against any employee or applicant for employment City Council 14 — 35 5/4/2021 60A-33 EXHIBIT 1 based on race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, sexual orientation, or any other basis prohibited by applicable law. Tine SUBRECIPIENT shall take affirmative action to ensure that all applicants and employees are treated without regard to race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, and sexual orientation. The SUBRECIPIENT shall comply with all provisions of Executive Order 11246, Equal Employment Opportunity, as amended by Executive Orders 11375 and 12086. (5) Nondiscrimination and Equal Opportunity in Participation. The requirements in 24 CFR part 5, subpart A are applicable, including the nondiscrimination and equal opportunity requirements at 24 CFR 5.105(a). The SUBRECIPIENT shall not discriminate against any participant on the ground of race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familiar status, sexual orientation, or any othch- basis prohibited by applicable law. The SUBRECIPIENT shall, through affirmative outreach, make known that use of the facilities, assistance, and services arc available to all on a nondiscriminatory basis. The SUBRECIPIENT must take appropriate steps to ensure effective communication with persons with disabilities. (6) Americans with Disabilities Act. 'fhe SUBRF.CIPIFNT agrees to comply with any federal regulations issued pursuant to compliance with the Americans with Disabilities Act which prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, State and Local government services, and public accommodations- (7) Fair- Housing. Under section 80S(e)(5) of the Fair Housing Act, HUD has a statutory duty to affumativcly further fair housing. HUD requires the same of its funded sub -recipients. The SUBRECIPIENT has a duty to affirmatively further fair housing opportunities for classes protected under the Fair Housing Act. C. Falsification of Information f'he SUBRECIPIENT represents and warrants that it has made no false statements to the CITY in the process of obtaining this award of the ESG Funds. D. Drug Free Workplace T'he SUBREC'IPIENT'represents and warrants that it has established the following drug -free workplace policy! (1) The unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace for any employee involved in a federally funded program. (2) As an employee working in conjunction with a federally funded program, the employees of the SUBRECIPIENT will be required to: a. Abide by the terms above in statement (1), and b. Notify the appropriate SUBRL•C'IPIENT authorities and CITY officials of any criminal drug statute conviction for a violation occurring in the workplace. Such notification shall be made no later than five (5) days after conviction. (3) The CITY and the United States Department of Housing and Urban Development will be notified within 10 City Council 14 — 36 5/4/2021 60A-34 EXHIBIT 1 ten days after receiving notice of any such violation. (4) Within thirty (30) clays of receiving such notice, appropriate personnel action will be taken against such employe, up to and ineluding termination- (5) Each such employee shall be raluicd to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State or Local health, law enforcement, or other appropriate agency. F; I2eliRiou Organi?ation The SUBRECIPIENT may not engage in inherently religious aeuvrties, such as worship, religious instruction, or proselytization as part of said program or services. If the SUBRECIPIENT conducts such activities, the activities must be offelel separately, in time or location, from said programs or services, and participation must be voluntary fin the program participants. The SUBRECIPIENT shall not, in providing program assistance, discrinimate against a program participant or prospective program participant on the basis of religion or religious belief. If the SUBRECIPIENT is a religious organization, it retains its independence from Federal, Suite, and Local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that the religious organization does not use direct ISG funds to support any inherently religious activities_ The SUBRECIPIENT ages that rehabilitation of structure by the religious organization in connection with said program must be in sound accord with the provisions tinder 24 CFR § 576.406. F. Additional Terns between the CITY and HUD The SUBRECIPIENT agrees further that it shall be bound by the standard terns and conditions used in the Grant Agreement between HUD and the CITY and such other rules, regulatTOIIS, oI requnenentS a.s FIIJD may reasonably impose in addition to the aforenwriLioncd assurances at or subsequent to the execution of this AGREEMENT by the parties hereto. G. OSH Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be twined, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous, or dangerous to the participants' health or safety. H. Hatch Act The Si T3RFCIPIENT agrees that no funds provided, nor personnel employed under thn,� AGREEMENT. shall be in any way or to any extent engaged in the conduct of political acuviucs in violation of the Hatch Act, 5 U.S.C. Section 1501 et seq_ 17. City Council 14 — 37 5/4/2021 60A-35 EXHIBIT 1 I. Davis -Bacon Act All laborers and mechanics enployed by contractors or subcontractors in the performance of construction work, including alterations and repairs, in exss of 52,000.00, financed in whole or in pats with federal hinds shall be paid wages at rate not less than those prevailing on smile construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 U.S.C. sections 276a - 276a-5. Any such construction contract shall include and comply with the required contract provisions and rule sct forth in 29 C.F_R_ §5.5_ Ftuthc7, the payroll reports (along with the "Statement of (..ompliance") and basic records are required to be maintained and submitted, or made available, pursuant to 29 C'.F.R. 45.5(a)(3). No payment, advance, grant, loan or guarantee of funds shall be approved by the federal agency unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of 29 C.F.R. §5.5. A breach of the contract clauses in 29 ('_I.R_ §5.5 may be grounds for termination of the contract, and for debarment as a contractor/subcontraetor, as provided in 29 C_F.R_ §5.12_ Labor standards interviews/investigations shall be made as necessary to assure compliance. See 29 C.F.R. §5.6(a)(3). Genera The following rcquircmcnts and standards most be complied with: 2 CFR Part 200, ct al. SUBRECIPIENT shall procure all materials, property, or services in accordance with the requirements of CFR 200.118-326. A. procurement (1) Compliance. The SUBRECIPIEN'I' shall comply with current HUD and CIFY policies concerning the procurement of equipment, goods, and services, and shall maintain inventory records of all non -expendable personal property as defined by such policy as may be procured with funds provided herein. 'I'he SUBRFCIPIENT shall report to the CITY all program assets (unexpended program income, property, eluiptnent, etc.), and upon the CITY'S request, Such assets shall revert to the CITY upon termination of this AGREEMENT. (2) Pursuant to 2 CFR 200.331 (a) (4), the Indirect Cost Rate for the SUBRECIPIENT's award shall be an approved federally recognized cost rate negotiated between the SUBIUECIPIENT and the Federal government, or, if no cost rate exists, the de minims indirect cost rate as defines] in 2 CFR 200.414(b) Indirect (F & A) costs shall be user For this agreement, the de minims indirect cost of 10% will apply- (3) Use and Reversion of Assets. The use and disposition of equipment under this AGREEMENT shall be in compliance with the requirements of 2 CFR Part 200. 1091111110m..A Reporting requirements must conform to the policies and procedures as established by the CITY and 24 CFR § 576.500. The SUBRL0PIE'NT shall submit to the CITY, on or before the 15"` day of October, January, April, and July, as part of the Quarterly Report: (1) Payment Request An original request for reimbursement and tote copies of invoices, receipts, agreements, or other documentation supporting and evidencing how the ESG Funds have been expended during the applicable quarter. 12 City Council 14 — 38 5/4/2021 60A-36 EXHIBIT 1 (2) Quarterly Activities and written cumulative (year-to-date) reports of activities, program accomplishments, new program information, and up-to-date program statistics on expenditures, caseload and activities- Failure to provide any of the required documentation and reporting will cause the CITY to withhold all or a portion of a requc.�t for reimbursement until such documentation and reporting has been received and approved by the CITY. (3) Matching_ Quarterly certification of match, plus doeumentation of match source. (4) Any other such reports as the CITY (or HUD) shall reasonably require and/or request, including but not limited to the following information: monthly records of all ethnic and racial statistics of persons and families benefited by the SUBRLCIPILN'I' in the performance of its obligations under this AGREEMENT. C. Record Keening Sufficient records must be established and maintained to enable the CITY and HUD to determine whether the ESG requirements are being met. Record keeping requirements must conform to the policies and procedures as established by the CITY. All accounting records, reports, all evidence pertaining to costs, expenses, and LSG Funds of the SUBRI:C'IPIFNL, and all documents related to this AGRI I:MUNT shall be maintained and kept available at the SUBRFCIPIFNT'S office or place of business for the duration of the AC,RFFMENT and thereafter for live (5) years post -completion of an audit in eonlmmity with the FSG requirements, except a hereinafter provided relating to retention of any records or documentation existing, created, or maintained nn compliance. with Lead -based Paint regulations, which likely require longer retention as outlined below. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this AGREEMENT or (b) costs and expenses of this AGREEMENT to which the CITY or any other governmental agency takes exception, shall be retained beyond the five (5) year,; until complete resolution or disposition of such appeals, litigation claims, or exceptions. All said records must be retained for the greater of the aforementioned duration or the periods specified in 24 CFR 576.500(y)_ All records relating to, or created or maintained in compliance with, the Lead -Based Paint regulations shall be retained and maintained by the STJBRFCIPIF,.NT indefinitely, including without limitation, all inspection report(s), cdisclosurc statenent(s), and clearance report(s). Copies made by microfilming, photocopying, or similar methods may be substituted for the original records The CH Y, HUl) and auditors shall have the right to access all the SLJBRIiCIPIEN1" records for as long as the records are retained by tine St1t3I2J CIPII'NT. In the event the SIlI3RFCIPIFNT doss not make the above-re£cenced documents available within the City of Santa Ana, California, the SURRECIPIFNT agrees to pay all necessary and reasonable expense natured by the CITY it conducting any audit at the location where said records and books of account are maintained - The SUBRECIPIENT agrees to meet the requirements set firth in 24 CFR § 576.500. U. Homeless Management Information Systems (HMIS) L Generally_ the SUBRECIPILNT must ensure that data on all persons served and all activities assisted under FSG are entered into the applicable community -wide HMIS in the area in which those persons and activities are located, or with the express knowledge and written consent of the CITY, a comparable database, in accordance with HLJD's standards on participation, data collection, and reporting under a local HMIS. 2. HMIS Agency Agreement_ The SUBRFCIPTENT shall have an agreement in place with the HMIS lead agency to participate in the regionally HMIS system. A copy ofthe SUBRECiPIENTS agreement with the HMIS lead agency shall be attached to this agreement as Exhibit F. In the ease of Domc^stic Violence service providers 13 City Council 14 — 39 5/4/2021 60A-37 EXHIBIT 1 or other agencies prohibited from entering data into HMIS, documentation from the HMIS lead agency certifying that the SUBRECIPIEN't is using a comparable database shall be attached to this agreement as Exhibit E. 3. FIMIS Interagency Data Sharing Agreement. line SUBRECIPIENT shall enter into an Interagency Data Sharing Agreement with the IIMIS Lead Agency where the SUBI ILCIPILNI' agrees to share IiMIS data with other ESG funded agencies regarding clients that are served in ESG funded prop�rams, unless prohibited by law - A copy of such agreement shall he attachecl as Exhibit F-L E. Audit Report Reoui emenu The SUBRECIPIENT agree; that it' the SUBRF,C'IPIF,NT cxpcmtl Seven Flundt-ed Fifty Thousand Dollars ($750,000.00) or more in lWe al funds, the SUBRECIPIENT shall have an annual audit conducted by a certified public a cotuntant in accordance with the surncitrds as set forth and published by the United States Office of Management and Budget (2 CFR 200-501a). The SUBRECIPIENT shall provide the CI I Y with a copy of said audit by April I of the year following the program year in which this AGREEMENT is executed. Further, the SUBRECIPIENT shall comply and/or cause compliance with audit report(s) required by applicable provisions of the Lead -Based Paint Regulations as further detailed below. VI11. EVALUATION AND MONITORING a. Generallv The CITY will monitor the performance of the SUBRECIPIENT against goals and perfonuance standards as required herein. The SIJRRFCIPIENT shall provide the CITY all necessary reporting infortnation as required by the CITY in the administration and review of the Program. Substandard performance as deWriumed by the CITY will constitute noncompliance with this AGREEMENT. If action to correct such substandard performance is not taken by the SIJBRFCIPIFNT within a reasonable period of time after being notified by the CITY, contract suspension or termination procedures will be initiated. b. Access to Records The SUBRECIPIENT gives the CITY and HUD, including their authorized representative, access to and the tight to examine all records, books, papers, items, emails, and documents, both physical and electronic, relating to the program. c. Audit Trine CITY shall have the right to audit and monitor any program income as a result of an ESG activity. Upon request by the CITY and for audit purposes, the SUI31ZFC'IPIFNT further agrees to provide all files, records, and documents pertaining to related activities and clientele demographic data. IX LIARILITV A. Generally Each party to this AGREEMENT acknowledges that it will be liable for its own negligent acts or negligent omissions by or through itself, its employees, agents, and subcontractors. Each patty further alnees to defend itself and thcnisclves, and to pay any judgments and costs arising out of such negligent acts or omissions, and nothing in this AGREEMENT shall impute of transfer any such liability from one to the other. In other words, the 14 City Council 14 — 40 5/4/2021 60A-38 EXHIBIT 1 SUBREC'IPIEN'f agrees to be fully responsible for its negligent acts or omissions, or any intentional tortuous acts which result in claims or suits against the CITY, and agrees to be liable for any damages proximately caused by said acts or omissions_ Nothing herein shall be construed as consent by a State or CITY agency or subdivision to be sued by third patties in any matte- arising out of any contract, and nothing herein is intended to serve as a waive- of sovereign immunity where sovereign immunity applies. R CITY not Liable for Funds The SUBRECIPIENT further acknowledges that the source of the ESG Funds is a fcdcral pass -through grant to the SUBRECIPIENT. The CITY shall have no obligation to advance or pay the SUBRECIPIENT with any funds other than the ESG Funds the CITY receives from HUD. C. Hold Harmless the SUBRECINI NT shall defend, indemnify and save harniless the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the CITY, and shall defend, indemnify and save harmless the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers compensation claims and attorney fees/expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or omissions of the SLJBRFCIPIENT, its officers, directors, employees, agents, subcontractors, and suppliers arising out of the SUBRECIPIENT's pefornnance of this AGREEMENT. A. Generally ESG activities are subject to environmental review by HUE) under tine environmental regulations in 24 CER 50. The SUBRECIPIENT, or any contractor of the SUBRECIPIEN'I, may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct property for a project under this part, or commit or expend HUD or local funds for eligible activities under this part, until HUD has performed an environmental review under 24 CTR part 50 and tine recipient has received HUD approval of the property. the SUBRI CIPIENf agrees to comply with all applicable environmental requirements insofar as they apply to the performance of this ACiR1 FMFNT, including but not limited to the Clean Air Act, the Federal Water Pollution Control Act and the Flood Disaster Ptotection Act. It' applicable, the SUBRFCIPIFNT also shall comply with the Historic Preservation requirements of National Historic Piescvation Act of 1966. B_ Lead -based paint remeiliatirnt and disclo-sure The Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Ecad-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 4856), and implementing regulations in 24 OR part 35, subparts A, B, H, J, K, M, and R apply to all shelters assisted under P.SG program and all housing occupied by program participants that were built before 1978_ 15 City Council 14 — 41 5/4/2021 60A-39 EXHIBIT 1 C. Assignment of Responsibilities By this AC1I21 I:MI3NT, the SUBRYCIPIENT will accept assignment from the CITY of all responsibilities set forth in Subpart K of 24 CFR 35. D. Compliance with Subpart IC The purpose of Subpart K is to establish procedures to eliminate as far as practicable lead -based paint ("LBP") hazards in a residential property that receives Federal assistance under certain HUD programs for acquisition, leasing, support services, or operation. In connection with the grant finds under this AGREEMENT, the CITY requires that the SUBRL-C'IPIENT comply and show evidence of compliance with all applicable subparts of 24 CPR 35, and especially, Subpart K ("I MP Regs"). The SUBRECIPIENT shall conduct the following activities for the dwelling unit, common areas servicing the dwelling trait, and the exterior surfaces of the building in which the dwelling trait is located- (1) A visual assessment of all painted surfaces in order to identify deteriorated paint; (2) Paint stabilization of each deteriorated paint surface, and clearance, in accordance with §§ 35.1330(a) and (b), before occupancy of a vacant dwelling unit or, where a unit is occupied, immediately after receipt of Federal assistance; and (3) Onttoim! lead -based paint maintenance activities into regular building operations, in accordance with § 35.1355(a), if the dwelling unit has a continuing, active financial relationship with a Federal housing assistance program, except that mortgage insurance or loan guarantees arc not considered to constitute an active programmatic relationship for the purposes of this part. (4) And, notice: to occupants in accordance with §§ 35.125(b)(1) and (c), describing the results of the clearance examination. L. Notification of LBP Hazard The SUBRECIPIEN'T shall provide to all occupants of housing: (1) In accordance with Section 35.130 of the L1313 kegs the LBP hazard information pamphlet. 'Hie pamphlet shall be the EPA/HUD/Constuner Product Safety Commission lead hazard infornation pamphlet or an LPA-approved equivalent. The current form and version of the pamphlet can be found at: hrttp://www.hud.gCw/c�fficos/Ie.ad/library/enforcemnnt;/fs discl.pdf (2) In accordance with 24 CFR 35, Subpart A, all available information and knowledge regarding the presence of LISP and LBP hazards prior to leasing a housing unit. (3) In accordance with 24 CFR 35, Subpart A, notification in writing of the results of the presumption of LBP and/or LBP hazards, results of any lead hazard evaluation, and any lead hazard reduction work. 16 City Council 14 — 42 5/4/2021 60A-40 EXHIBIT 1 F. LBP Information Summary For purposes of information only and in no respect intended to be a representation or warranty of the provisions of the 1.13P Regulations, the CITY has caused to be prepared an information summary relating to the 1,13P Regulations and Application to dwelling units that may he occupied by recipiejun of services and/or funding from the SUBRF..CIPIENT under this AGREEMENT. CITY stall' will cooperate with and be available to the SUBRECIPIENT I to assist in implementation of compliance with the LBP Rcgs as to residential dwelling units to be assisted by the SUB1iECIPIENT. 'the parties acknowledge and agree the CITY shall not be liable or responsible for the accuracy of such summary, and the SUBRECIPENT is directed to the LBP Regulations and implc-rneniing guidance: published and provided by HIJI) relating io compliance: with such I,BP Regulations. G. Lxcnnntions Section 35.115(a) provide exemptions from Subparts B through R. For example, lead -based paint requirements do not apply to housing assistance if the assistance lasts less than one hundred (100) days. XL CONFLICTS OF INTERENT The SUBRECIPIFINT shall comply with 2 CFR 200.11? with respect to the use of program funds to procure services, equipment, supplies, or other property. With respect to all other decisions involving the use of program funds, the following restriction shall apply: No person who is an etmployee, agent, consultant, officer, or elected or appointed official of the SUBRFC'IPIF.NT and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds there under, either for himself or herself, or for those with who he or she has family or business ties, during his or her tenure or for one (1) year thereafter. The SUBRECIPILNT agrees to abide by the ESG Prograrn's Conflict of Interest provisions as expressly detailed in 24 CPR § 576 404 regarding Organizational Conflicts of Interest and Personal Conflicts of Interest_ All contractors of the SUBRECIPIENT must comply with the same requirements that apply to the SUBRECIPIENT under this section. XIL ASSIGNABILITY None of the duties of, or work to be performed by, the SUBIRCIPIENT under this AGREEMENT shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of the CITY_ The SIJBRh.ClP1bNT must submit all subconnacts and other agreements that relate to this ACTRihMFNT to the CITY. No subcontract or assignment shall terminate or alter the legal obligations of the SUBRECIPTENT pursuant to this AGREEMENT. X111. E:XCI,USIVI'IN OF AGREEMENT This AGREEMENT supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the use of the CI'I'Y's ESG Funds by the SUBRI.C'1PIENT and contains all the covenants and agreements between the parties with respect to such ESG Funds in any manner whatsoever. Each party to this AGREEMENT aelmowledges that no representations, inducements, promises or agreements, orally or otherwise, 17 City Council 14 — 43 5/4/2021 60A-41 EXHIBIT 1 XN XV have been made by any party, or anyone acting on behalf of any parry, which are not embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in writing and signed by both the CFFY and the SiJ13RF('IP1I N'I'. The SUBRECIPIENT shall not obligate, encumber, spend, or otherwise utibzc program tends for any activity or purpose not included or not in conformance with the budget as apportioned and as submitted to the CITY unless: (1) The SUBRECIPIENT has received explicit written approval from the CITY to undertake such actions, or (2) Budget changes may be made among approved program activities and among approved budget categories so long as the specific project activity has been approved, there is no change to the total grant amount, and the changes to the budget are documented. Any program modification request by the SUBRECIPIENT must be requested at least forty-five (45) days prior to the end of the term of this AGREEMENT. No modification to this AGREEMENT shall be binding by either party unless in writing and signed by both parties_ In the event that the CITY approves any amendment to the funding allocation, the SITRRECIPIENT sball be notified in writing and such notification shall constitute an official amendment. The CITY may, at its diseretion and upon provision of proper notice AGREEMENT to conform with changes in Federal, State, and/or the directives, and objcctivc,;. Such amendmcnts shall be incorporated by AGREEMENT. A. Termination to the SUBRECIPIENT, amend this CITY laws, regulations, gtudclines, written amendment as it part of this If, due to any cause, the SUBRECIPIENT Eels to comply with the terns, conditions or requirements of this AGREEMENT', or any prior AGREEMENT whereby ESG fluids were received by the SUBRECIPIENT, whether stated in a Federal statute or regulation, an assurance, a State plan or application, a notice of award, or elsewhere, the ('ITY may terminate or suspend this AGRELMI=NT in accordance with 2 CFR 200339 and in accordance with 2 CFR 200.340 by giving written notice, and the CITY may request in writing that all or some of the grant funds be returned even if the SUBRECIPIENT has expended the heels_ If the SUBRECIPIENT reports inaccurately, or if on audit there is a disallowauce of certain expoudintres, the SUBRECIPIENT agrees to remedy the acts or omissiom causing the disallowance and repay the CITY all aunoturts spent in violation thereof. If the SUBRECIPIENT engaged it fraudulent activity to obtain an(/or justify expenditure of the ESG trends granted hereunder, the SUBRI VIPIFNT shall be required to reimbume the CITY of all such funds that were obtained ardor spent under fraudulent eicumstiirnces, and the CITY rcserve; the right to take other remedies that may be legally available. The SUBRECIPIENT agrees to return all funds as requested by the CITY under this section within thirty (30) days of receipt of' the writtenn request. LU City Council 14 — 44 5/4/2021 60A-42 EXHIBIT 1 Any objections regarding terminations or suspensions shall be made by the SUBRECIPIEN'f in writing and mailed to the CH pursuant to the above NOTICES section. XVL C1101SE-0I1T The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR 200.343, including the following: (1) SUBRF,CIPIF.,NT must submit, no later than ninety (90) calendar days after the end date of the period of pelorniaree, all financial, performance, and other reports as required by the terms and conditions of the Federal award; (2) Unless the CllY authorizes an extension, SUBRECIPI1 NT must liquidate all obligations incurred under the Federal award not later than ninety (90) calendar days after the end date of the period of performance as sepecitied in the terms and conditions of the Federal award; (3) SUBRLCIPIfiNT must promptly refund any balances of unobligated cash that the CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENI for use in other projects (See OMG Circular A-129 and 2 CFR 200345); (4) S1J11RI CIPIFNT must account for any real and personal property acquired with Federal funds or received from the Federal government in accordance with 2 CFR 200.310-200.316 and 200.329: and, (5) The CITY should complete all closeout actions for the Federal award no late- than one year attar receipt and acceptance of all required final reports. The invalidity in whole or in part of any provision of this ARGREEMENT shall not void or affect the validity of any other provision of this AGREEMENT. Whenever possible, each provision of this AGREEMENT shall be interpreted in such marine as to be cffeetive and valid under applicable law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions of this AGREEMENT. XV1II. LAWS GOVERNING THIS AGREEMENT I his AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, and all applicable federal laws and regulations_ XIX_ WAIVER No delay or omission by the CITY hereto to exercise any right or power accruing upon any noncompliance or default by the SITBRECIPIF:NT with respect to any of the toms of this AGRFFMFNT shall impair any such tight or power or be construed to be a waive- thereof. A waive- by either of the parties hereto oT any of the covenants, conditions, or agreements to be performed by the other -shall not be construed to be a waive of any succeeding breach thereof or of any other covenant, condition, or agreement herein contained. 19 City Council 14 — 45 5/4/2021 60A-43 EXHIBIT 1 L%MWtq U3151►iIlAati ul30mvwaNMI 1(swe:1-almew All of the attachments and exhibits attached to this ACiREEMENf are deemed incorporated by reference. This document may be executed in three (3) counterparts, each of which shall be deemed to be an original. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind thei respective tive parties to caeh of the toms of this AGREEMENT, and shall indemnify the CITY fully, including reasonable costs and attoriney's fees, for any injuries or damages to the CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. IN WITNESS WHEREOF, the panics hereto have executed this AGREEMENT on the date and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA CARV�LHO City Attorney By: RYAN 9. IIOIDGE t} Assistant C'r Attorriey RECOMMENDED FOR APPROVAL: S'1'I:VI N A. MENDOZA Executive Director Community Development Agency CITY OF SAN7A ANA a municipal corporation KRIST INE RIDG City Manager S U BREC'IPIENT: Name: David Valentin 1 itle: Chief of Police fax ID: 95-6000785 DUNS 4:083153)470000 20 City Council 14-46 60A-44 5/4/2021 .. i iEll l EMERGENCY SOLUTIONS GRANT SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND MERCY HOUSE LIVING CENTERS, INC. (24 Ch'R Parts 91 and 576) THIS GRANT AGREEMENI-, is hereby made and entered into this July 1, 2020, by and between the City of Santa Ana, a charter city and municipal corporation of the State of California, herein called the "CITY", and Mercy House Living Centers, Inc., a California nonprofit organization, herein called the "SUBRECIPIENT". RECITALS: 1. The CITY is the recipient of Emergency Solutions Grant ('ESG") funds from the United States Department of Housing and Urban Development ("HUD"), pursuant to subtitle B of title IV of the MpKitmcy-Vento Iomeless Assistance Act [42 IJ.S.C. 11371-113781, for the rehabilitation or conversion of buildings for use as emergency shelter for the: homeless, for the payment of certain expenses related to operating emergency shelters, for essential services related to emergency shelters and street outreach for the homeless, and for homelessness prevention and rapid re -housing assistance. Catalogue of Federal Domestic Assistance ("CFDA") 14.231 and Federal Award Identification Number (FAIN) E-20-MC-06-0508. 2. The CITY has approved the provision of federal funds under the ESG to be used in the operation of an emergency solutions program ('program") for the homeless or at -risk of homelessness of the City of Santa Ana as further described by Exhibit A, Scope of Work, attached hereto and by this reference incorporated herein. 3. The SUBRECIPIENT represents that it has the requisite qualifications, expertise, and experience in the provision of emergency solutions programs for the homeless or at -risk of homelessness and is willing to use said federal funds to operate said program. 4. The SUBRECIPIENT agrees to assist individuals and families that are homeless or at risk of homelessness in obtaining appropriate supportive services including, but not limited to: temporary and permanent housing, relocation and stabilization services, rapid re -housing assistance, medical and mental 'health treatment, counseling supervision, and other services essential for achieving independent living. S. The SIJBREClPIF:NT has agreed to be reimbursed for the above services in an amount not to exceed $276,468 in grant funding for Emergency Shelter - Operations, Rapid Re -Housing and Homeless Prevention. fi_ The CITY previously entered into an Agreement with Mercy Housing Living Centers to Operate an Interim Emergency Hornless Shelter, Agreement No. A-2018-221, as amended, dated September 18, 2018, by which the City committed a set amount of funds to SUBRECWIENT for the operation of The Link Interim Emergency Homeless Shelter. As part of this ESG AGREEMENT, the CITY is committing up to $151,468 to SUBRECIPIENT for Emergency Shelter Operations at The Link. This 5151,468 shall count toward the amount of funds due from the CITY to SLTBRECFPEINT under Agreement No. 2018-221, as amended. 7_ This AGREEM,FNT is contingent upon the award of Emergency Solutions Grant fluids from the United States Department of Housing and Urban Development. 1 City Council 14 — 47 5/4/2021 60A-45 EXHIBIT 1 8. The CITY and the SUBRECIPIENT have duly executed this AGREEMENT for the expenditure and utilization of said funds. NOW THEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this AGREEMENT and the followings terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entire AGREEMENT between the CITY and the SUBRECIPIENT_ 1. SCOPE. OF PROGRAM A. General Administration The SUBRECIPIENTf agrees to implement this activity as set forth in detail in Exhibit A, Scope of Work, which shall provide a description of each activity, including the services to be performed, the person or entity providing the service, the estimated number of recipients of the service, and the manner and means of the services. B. Levels of Accomplishment Goals and Performance Measures The SUBRECIPIENT shall be responsible to accomplish the levels of performance as set forth in Exhibit A and report such measures quarterly to the CITY_ If the SITFIR,ECIPIENT estimates such goats will not be met, the SUBRECIPIENT is to contact the CITY, at which time the CITY will detennine if any adjustments to the grant award is appropriate. C. Staffing The SURR.ECIPIENT shall ensure adequate and appropriate staffing is allocated to each ESG activity. Nothing contained in this AGREEMENT is intended to, or shall he construed it) any manner, as creating or establishing the relationship of employer/employee between the parties. II. TERM OF AGREEMENT This AGREEMENT shall take effect on July 1, 2020, and shall terminate on June 30, 2021, unless otherwise cancelled or modified according to the terms of this AGREEMENT. III. DISBURSEMENT AND FUNDS The City was allocated $500,947 in Emergency Solutions Grant finds under the McKinney-Vento Homeless Assistance Act for fiscal year 2020-2021 from the Department of Housing and Urban Development. CITY agrees to pay to SUBRECIPIENT when, if and to the extent federal funds are received under provisions of the Act a sum not to exceed $276,468 for SUBRECIPIENT'S performance in accordance with the Budget attached hereto as "Exhibit B" (luring the period of this Agreement_ Said sum shall be paid after CITY receives invoices submitted by SUBRECIPIENT as provided hereinabove. Pursuant to said Budget, SUBRECIPIENT shall receive up to $151,468 in ESG funds for Emergency Shelter — Operations at The Link. The amount of funds, up to $151,469, reimbursed to SUBRECIPIENT for Emergency Shelter — Operations at The Link pursuant to this AGREEMENT, shall apply toward the funds that the CITY owes to SUBRECIPIENT for operation of The Link pursuant to Agreement No. A-2018-221, as amended. City Council 14 — 48 5/4/2021 60A-46 EXHIBIT 1 A. Amount and Expenditure End Date The CITY agrees to reimburse the SUBRECIPIENT a maximum amount not to exceed $276,468 from Emergency Solutions Grant (E-SG) funds, as outlined in Exhibit B, Final Budget, and such funds shall be expended by the SUBRECIPIENT on or before .Tune 30, 2021. SUBRECIPIENT has the ability to adjust line item amounts in the Budget with the written approval of the CITY's Executive Director of the Community Development Agency, so long as the total Budget amount does not increase. B Invoicing Procedures 'The SUBRECIPIENT shall submit quarterly invoices (on or before the 15`i' day of October, January, April, and July) in a form prescribed by the CITY, detailing such expenses. Such schedule may be modified with the approval of the CITY. C. Payment Payment is subject to the receipt and approval of such invoices and quarterly activity reports, as hereinafter more fully set forth below under Reporting, with the final payment subject to the satisfaction of the condition precedent of submittal of complete invoicing and reporting information due on or before July 15 of the applicable funding year. The CITY shall pay such invoices within thirty (30) days after receipt thereof, provided the CITY is satisfied that such expenses have been incurred within the scope of this AGREEMENT and that the SUBRECIPIENT is in compliance with the terms and conditions of this AGREEMENT. The thirty (30) day period will discontinue if the reimbur5emerrt request is determined to be incomplete and will restart the thirty -day timeline once the remaining required elements have been submitted. Failure to provide any of the required documentation and reporting will cause the CITY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the CITY. D. Use of Funds The SLJ13RECIPIENT agrees to use said funds pursuant to this AGRI'sEMENT to pay for necessary and reasonable costs allowable under federal law and regulations to operate said program only. Said amounts shall include and will be limited to, street outreach, emergency shelter, homelessness prevention, rapid re -housing assistance, housing relocation and stabilization services, short-term and medium -term rental assistance, and Homeless Management Information Systems ("HMIS") data contribution as set forth to 24 CFR § 576.101 — § 576.107. Allowable program costs are detailed in the Budget, as set forth in Exhibit B, attached hereto and by this reference incorporated herein_ The SUBRECIPITNT'S failure to perform as required may, in addition to other remedies set forth in this AGREEMENT, result in readjustment of the amount of funds the CITY is otherwise obligated to pay to the SUBRECIPIENT pursuant to the terms hereof_ The SUBRECIPIENT agrees that the homeless shelter/services under said program shall be available for the entire period during which said funds are provided. E. Condition of Funding (1) The CITY advises the SUBRECIPIENT that: a signifeant change in entitlement funding may result in a change in the current process utilized by the CITY to determine funding allocations. The SUBRECIPIENT acknowledges that the obligation of the CI'lY is contingent upon the availability of Federal, State or Local 3 City Council 14 — 49 5/4/2021 60A-47 EXHIBIT 1 government funds, which are appropriated or allocated for the payment of such an obligation. If funding levels are significantly affected by Federal budgeting or if funds are not allocated and available for the continuance of the function performed by the SIBRECIPIENT, This AGREEMENT may be tenninated by the CITY at the end of the period for which funds are available. At the earliest opportunity, the MY shall notify the SUBRECIPIENT of any service which may be affected by a shortage of funds. No penalty shall accrue to the CITY in the event this provision is exercised and the CITY shall not he liable for any damages as a result of termination under this provision of this AGREEMENT. Nothing herein shall be construed as obligating the CITY to expend fiords in excess of appropriations authorized by law. (2) The SUBRECIPIENT shall allow representatives of; the CITY or ITUD to inspect facilities which are used in connection with the AGREEMENT or which implement programs funded under this AGREEMENT- F. Matching The SUBRECIPIENT is required to make matching contributions to supplement the ESG program in an amount that equals or exceeds the amount of ESG funds provided by HUD through the CITY_ Such contributions shall be entirely consistent with the Matching Requirements as outlined by 24 CFR § 576.201. The anticipated source and amount of all matching funds contributed by the SUBRECIPIENT will be enumerated in Exhibit B, Final Budget. G. Program Income (1) Dcfinition. Program income means, as provided by 2 CPR 200M, gross income received by the SUBRI,CIPIENl' directly generated by it grant supported activity, or earned only as a result of the grant agreement during the grant period. For purposes of ESG, program income will also include any amount of a security or utility deposit returned to the SUBRECIPIENT. (2) Use. The SUBRECIPIENT shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the terms and conditions of this AGREEMENT. (3) Counts toward Matching. Costs paid by program income may count toward meeting Lire matching requirements, provided the costs are eligible ESG costs that supplement the program_ I I. Separatign of Accounts All hands received by the SUBRECIPIENT from the CITY pursuant to this AGREEMENT shall be maintained separate and apart from any other funds of the SUBRECIPIENT, or of any principal or member of the SUBRECIPIENT, in an account (the "Account') at a federally insured banking or savings and loan institution with record keeping of such Accounts maintained pursuant to applicable legal requirements. The SUBRECIPIF..NT shall keep all records of the Account in a [Hamner that is consistent with generally accepted accounting principles. No ironies shall be withdrawn from the Account except for expenditures relating to essential services, homeless prevention, and/or operations costs, as authorized hereunder. All disbursements from the Account shall be for obligations incurred in the performance of this AGREEMENT and shall be supported by contracts, invoices, vouchers, and other data, as appropriate, evidencing the necessity of such expenditure. The CITY may withhold payment allocation requests if the SUBRECIPIENT fails to comply with the above requirements until such compliance is demonstrated. I. Expenditure of Funds Much like how HUD requires the CITY, pursuant to 24 CFR 576.203, to expend all of the grant funds for eligible activity costs within 24 months after the date that HUD signs the grant agreement with the CITY, it is a requirement for the SUBRECIPIENT to expend all of the grant fiords for eligible activity costs within the 4 City Council 14 — 50 5/4/2021 son-48 EXHIBIT 1 aforementioned period. For the purposes of this paragraph, expenditure means either an actual cash disbursement for a direct charge for a good/service or an indirect cost, or the accrual of a direct charge for a good/service or an indirect cost. Failure to expend said funds within said tinieframe can result in a reallocation of funds. Prohibited I.1se (1) Generally. The SUBRECIPIENT hereby certifies and agrees that it will not use funds provided through this AGREEMENT to pay for meals for persons other than those identified as homeless or at risk of homelessness. Said hands shall not be used for entertairnnent purposes or for gifts. 'I he SUBRECIPIENT certifies that it will not use said funds for illegal or dishonest conduct, rather, fund use will remain in compliance with all applicable federal, state, and local laws, including applicable laws not outlined in this AGREEMENT. (2) Lobbying. The SUBRECIPIENT certifies and agrees that it will comply with federal law (31 U.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the recipient of a federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an officer or employee of a Member of Congress in cormection with awarding of any federal contract, the making of any federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. The SUBRECIPIENT shall sign a certification to that effect in a form as set forth in Exhibit C, attached hereto and by this reference incorporated herein. The SUBRECIPIENT shall submit said signed certification to the CITY prior to performing any of its obligations under this AGREEMENT and prior to any obligation arising on the part of the CITY to pay any sums to the SUBRECIPIENT under the terms and conditions of this AGREEMENT. If any funds other than Federal appropriated funds have been paid or will be paid to airy person for influencing or attempting to influence an office' or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions (see Exhibit D). IV. NOTICES The SUBRECIPIENT and the CITY agree that all notices required by this AGREEMENT shall be made in writing and delivered via mail (postage prepaid); commercial courier; personal delivery; or sent by facsimile or other electronic means (provided that receipt is confirmed). Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending_ All notices and other written communications under this AGREEMENT shall be addressed to the individuals in the capacities indicated below, unless modified by subsequent written notice. Cormnunication and details concerning the AGREEMENT shall be delivered to the office of, and directed to, the following representatives: CITY T e1Tr Eggers Homeless Services Manager City of Santa Ana Community Development Agency (M-25) 20 Civic Center Plaza P.O. Box 1988 Santa Ana, CA 92702-1988 (714)647-5378, teggers@santa-ana.org SUBRECIPIENT: Larry Ilaynes Executive Director Mercy House Living Centers, Iuc_ P_O_ Box 1905 Santa Ana, CA 92701 714-836-7188 City Council 14-51 60A-49 5/4/2021 EXHIBIT 1 V. GENERAL CONDITIONS A. Coordination with Continuum of Care The SUBRECIPIENT must work with the Continuum of Care ("CoC") to ensure the screening, assessment, and referral of program participants are consistent with the CITY's written standards for providing ESG assistance as described in its consolidated plan. The SURRECIPIENT must keep documentation evidencing the use of, and written intake procedures for, the centralized or coordinated assessment systems) developed by the CoC in accordance with the requirements established by IIUD_ See 24 CFR 576.400. B. Evaluation of Program Participants Eligibility and Needs, The SUBRECIPIENT must conduct evaluations and re -evacuations to determine the eligibility of each individual Or fanuly's eligibility for FSG assistance in accordance with 24 CFR 576.401. C. Terminatirw Assistance If a program participant violates program requirements, the SUBRECIPIENT may terminate the assistance in accordance with a formal process established by the SUBRECIPIENT that recognizes the rights of individuals affected. See 24 CFR 576.402 D Shelter and Housing Standards The SUBRECIPIENT certifies that shelters and housing supported by ESG funds and used by ESG beneficiaries will conform to 24 CFR 576.403. E. Homeless Involvement The SUBRECIPIENT certifies that it will involve, to the maximum extent practicable, homeless individuals and families in constructing, renovating, maintaining, and operating facilities assisted under the ESG program, and in providing services for occupants of these facilities. See 24 CFR 576.405(c) and 42 USC 11375(d). -_ e en ent Contractor. Nothing contained in this AGREEMENf is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The SUBkECIPIE-NT and its subcontractors shall at all times remain independent contractors with respect to the services to he performed under this AGREEMENT. The CITY shall be exempt from payment of any Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the SUBRECIPIENT is an independent contractor. City Council 14 — 52 5/4/2021 60A-50 EXHIBIT 1 G. Subcontracts (1) Content Requirements_ The SUBRECTMENT will include all relevant provisions of this AGREEMENT in all subcontracts entered into as part of the activities undertaken in furtherance of this AGREEMENT and will take appropriate action pursuant to any subcontract upon a finding that the subcontractor is in violation of regulations issued by any federal agency_ The SiJBRECLPIENT will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 (Econonuc Opportunities for Low- and Very Low -Income Persons) and will not allow any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. (2) Submission to the CITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENTto the CITY. H. Licensin2 The SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation, and inspections from all agencies governing its operations. The SUBRECIPIENT shall ensure that its staff and subcontractors shall also obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing the SUBRECIPIENT's operations hereunder. Such licensing requirements include obtaining a City business license, as applicable. I. Responsibilities Toward Employees The SUBRECIPIENT accepts full responsibility for payment of any and all unemployment compensation, insurance premiums, workers' compensation premiums, income tax withholdings, social security withholdings, and any and all other taxes or payroll withholdings required for all employees engaged in the performance of the work and activities authorized by the AGREEMENT. The SUBRECIPIENT accepts full responsibility for providing workers with proper safety equipment and taking any and all necessary precautions to guarantee the safety of workers or persons otherwise affected. J. Insurance and Bondine (I)Generally. The SUBRECIPIENT shall maintain liability and property insurance to cover actionable legal claims for liability or loss which are the result of injury to or death of any person, or damage to property (including property of Grantee) caused by the negligent acts or omissions, or negligent conduct of the SUBRECIPIENT, its employees, agents or subcontractors, to the extent permitted by law, in conriection with the activities pursuant to this AGREEMENT. The SUBRECIPIENT shall comply with the bonding and insurance requirements of 2 CER 200.427, and 2 CFR 200.447. The SUBRECIPIENT shall undertake self-insurance, or shall obtain, at its sole cost, a policy or policies of commercial general liability insurance, or equivalent form. City Council 14 — 53 5/4/2021 60A-51 EXHIBIT 1 Such insurance shall: (1) name the City of Santa Ana, its officers, agents, employees and volunteers as additional insureds; (2) be primary with respect to insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of insureds provisions; and (4) give to the CITY prompt and timely notice of claim made or suit instituted arising out of the SUBRECIPIPNT's operations hereunder. (2) Limits. The SUBRECIPIENT shall maintain, at all tunes, the following minimum levels of Insurance, and shall, without in any way altering its liability, obtain, pay for, and maintain insurance for the coverages and amounts of coverage not less than those set forth below: a. Workers' Compensation_ Amount trust comply with State and Federal Laws b. Comprehensive General Liability_ $1,000,000 combined single limit of liability for bodily injuries, death, and property damage resulting from any one occurrence, including the following coverages: Premises and Operations; and Broad Form Commercial General Liability Endorsement to include blanket contractual liability (specifically covering, but not limited to, the contractual obligations assumed by the SUBRECIPIENT); Personal Injury (with employment and contractual exclusions deleted); and Broad Form Property Damage coverage. c_ The SUBRECIPIENT's self -insured retention or deductible per line of coverage shall not exceed $25,000 without the permission of the CITY- (3) Proof of Insurance. The SUBRECIPIENT shall furnish the CH Y's Clerk of the Council with an insurance certificate from insurance carrier certifying that it caries such insurance and that the policy shall not be canceled nor the coverage reduced except upon thirty (30) days prior notice to the CITY. The SUBRECIPIENT shall, prior to exercising any right under this AGREEMENT- a- furnish properly executed certificates of insurance and additional insured endorsement to the CITY which shall clearly evidence all coverage required above; b. provide that such insurance shall not be materially changed or terminated except on thirty (30) days prior written notice to the CITY; c. maintain such insurance for the period covered by this AGREEMENT; and d_ replace such certificates for policies expiring prior to the expiration of this AGREEMENP. (4) Company Rating. All insurance coverage shall be written with a company having an A.M. Best Rating of "A" or better and financial size of VIII or larger. (5) Failure to Comply. hn the event of any failure by the SUBRECIPIENT to comply with these provisions, the CITY may, after notice to the SUBRECIPIENT, suspend the program for cause until there is full compliance. City Council 14 — 54 5/4/2021 60A-52 EXHIBIT 1 K. Zoning. The SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall be specifically zoned and permitted for such use(s) and activny(ics). Should the SUBRECIPIENT fail to have the required land entitlement and/or peznaits, thus violating any local, state, or federal rules and regulations relating thereto, the SUBRECIPIENT shalt immediately snake good -faith efforts to gain compliance with local, state, or federal rules and regulations following written notification of said violation(s) from the CII'Y or other authorized citing agency. The SUBRECIMENT shall notify the CITY immediately of any pending violations_ Failure to notify the CITY of pending violations, or to remedy such known viotation(s), shall result in termination of grant funding hereunder. Tire SUBRECIPIENT must rake all corrections required to bring the facilitylproperty into compliance with the law within sixty (60) days of notification of the violation(s), failure to gain compliance within such time shall result in termination of grant funding hereunder. [, Displacement and Relocation. The SUBRECIPIENI must assure that it has taken all reasonable steps to minimize displacement of persons. Relocation must be consistent with requirements as set forth in 24 CFR § 576.408. M. Provisions Required by Law Deemed Inserted. Each and every provision of law and clause required by law to be inserted in this contract shall be deemed to be inserted herein and the AGREEMENT shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted or correctly inserted, then upon the application of either party the contract shall forthwith be physically amended to make such insertion or correction. VI. ASSURANCES AND CERTIFICATIONS A. Non -Profit Status The SUBRECIPIENT" certifies that: (1) The SIJ13RECTPIF-NT is a duly organized and existing non-profit corporation in good standing and authorized to do business under the laws of the State of California and in possession of required non-profit status under the United States Internal Revenue Code [for example, 26 USC § 501(c)(3)]. The SUBRECIPIENT has full right, power, and lawful authority to accept the finding hereunder and to undertake all obligations as provided herein and the execution, performance, and delivery of this AGREEMENT by the SUBRECIPIENI' has been fully authorized by all requisite actions on the part of the SUBRECIPIE-NT. (2) If the SUBRECIPIENT's non-profit status changes at anytime during this AGREEMENT, it will advise the CITY within 15 clays. (3) If the SUBRECIPIENT is a private non-profit, it hereby agrees that the members of its Board of Directors will receive no compensation, directly or indirectly, other than reimbursement for expenses, from any funds generated from or because of the ESG program, for their services. (4) As a non-profit, the SUBRECIPIENT acknowledges that administration of its operation and services are subject to the requirements as established in 2 CFR 200. City Council 14 — 55 5/4/2021 60A-53 EXHIBIT 1 B. Adherence to federal, State, and Local Laws and Regulat 1s (1) General_ The SUBRE-CIPILNT agrees to comply with all requirements of the F;SG program and applicable cross -cutting Federal, Stare, and Local requirements. (2) Economic Opportunities for Low- and Very Low-income Persons. The SUBRECIPIENT shall ensw e that employment and other economic opportunities generated by the Program shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing. Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u, and regulations at 24 CFR part 135 apply, except that homeless individuals have priority over other Section 3 residents in accordance with § 576.405(c). (3) Civil Rights_ The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of the Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, and 41 CFR Chapter 60. (4) Nondiscrimination and Equal Employment Opportunity. During the performance under this AGREEMENT, the SUBRECIPIENT shall not discriminate against any employee or applicant for employment based on race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, sexual orientation, or any other basis prohibited by applicable law. The SUBRECIPIENT shall take affirmative action to ensure that all applicants and employees are treated without regard to race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, and sexual orientation_ The SUBRECIPIENT shall comply with all provisions of Executive Order 11246, Equal Employment Opportunity, as amended by Executive Orders 11375 and 12086. (5) Nondiscrimination and Equal Opportunity in Participation_ The requirements in 24 CFR part 5, subpart A are applicable, including the nondiscrimination and equal opportunity requirements at 24 CPR 5.105(a). The SUBRECIPIENT shall not discriminate against any participant on the ground of race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familiar status, sexual orientation, or any other basis prohibited by applicable law. The SUBRECIPIENT shall, through affirmative outreach, make known that use of the facilities, assistance, and services are available to all or) a nondiscriminatory basis. The SUBRECIPIENT must take appropriate steps 10 ensure effective; communication with persons with disabilities. (6) Americans with Disabilities Act. The SUBRECIPIENT agrees to comply with any federal regulations issued pursuant to compliance with the Americans with Disabilities Act which prohibits discrimination and ensures equal opportunity f'or persons with disabilities in employment, State and Local government services, and public accommodations. (7) Fair Housing. Under section 808(c)(5) of the Fair Housing Act, HUD has a statutory duty to affirmatively further fair housing. H1ID requires the same of its funded sub -recipients. The SUBRECIPIENT has a duty to affirmatively further fair' housing opportunities for classes protected under the fair IIousing Act. 10 City Council 14 — 56 5/4/2021 60A-54 EXHIBIT 1 C. Falsification of Information The SUBRECIPIENT represents and warrants that it has made no false statements to the CITY in the process of obtaining this award of the ESG Funds. D. Drug Free Workplace The SUBRECIPIENT represents and warrants that it has established the following drug -free workplace policy: (1) The unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace for any employee involved in a federally funded program. (2) As an employee working in conjunction with a federally funded program, the employees of the SUBRECIPIENT will be required to: a. Abide by the terms above in statement (1), and b. Notify the appropriate SUBRECIPIENT authorities and CITY officials of any criminal drug statute conviction for a violation occurring in the workplace. Such notification shall be made no later than five (5) days after conviction. (3) The CITY and the United States Department of Housing and Urban Development will be notified within ten days after receiving notice of any such violation. (4) Within thirty (30) days of receiving such notice, appropriate personnel action will be taken against such employee, up to and including termination. (5) Each such employee shall be required to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by aFederal, State or Local health, law enforcement, or other appropriate agency- E. Rclieious Oradnization The SUBRECIPIENT may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of said program or services. If the SUBRECIPIENT conducts such activities, the activities must be offered separately, in time or location, from said programs or services, and participation must be voluntary for the program participants. The SUBRECIPIENT shall not, in providing program assistance, discriminate against a program participant or prospective program participant on the basis of religion or religious belief. If the SUBRECIPIENT is a religious organization, it retains its independence from Federal, State, and Local governments, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that the religious organization does not use direct ESG funds to support any inherently religious activities. 11 City Council 14 — 57 5/4/2021 60A-55 EXHIBIT 1 The SUBRECIPIENT agrees that rehabilitation of structures by the religious organization in connection with said program must be in sound accord with the provisions under 24 CFR § 576.406. F. Additional Tcmis between the CITY and HUD The SUBRFC7PITNT agrees further that it shall be bound by the standard terms and conditions used in the Grant Agreement between HUD and the CITY and such other rules, regulations, or requirements as IIUD may reasonably impose in addition to the aforementioned assurances at or subsequent to the execution of this AGREEMENT by the parties hereto. G. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or tinder working conditions which are unsanitary, hazardous, or dangerous to the participants' health or safety. FL Hatch Act The SUBRECIPIE.NT agrees that no funds provided, nor personnel employed under this AGREEMENT, shall be in any way or to any extent engaged in the conduct of political activities in violation of the Hatch Act, 5 U_S_C. Section 1501 et seq. 1. Davis -Bacon Act All laborers and mechanics employed by contractors or subcontractors in the performance of construction work, including alterations and repairs, in excess of $2,000.00, financed in whole or in part with federal funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 U.S_C_ sections 276a - 276a-5. Any such constriction contract shall include and comply with the required contract provisions and rules set forth in 29 C.F.R. §5.5. Further, the payroll reports (along with the "Statement of Compliance") and basic records are required to be maintained and submitted, or hnade available, pursuant to 29 C.F.R. §5.5(a)(3). No payment, advance, grant, loan or guarantee of funds shall be approved by the federal agency unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of 29 C.P.R. §5.5. A breach of the contract clauses in 29 C-FR_ §5.5 may be grounds for termination of the contract, and for debarment as a contractor/subcontractor, as provided in 29 C.F.R. §5.12. Labor standards interviews/investigations shall be made as necessary to assure compliance. See 29 C.F.R. §5.6(a)(3)_ VIL ADMINISTRATIVE REQUIREMENTS A. Generally The following requirements and standards must be complied with: 2 CFR Part 200, et al. SUBRECIPIENI' shall procure all materials, property, or services in accordance with the requirements of 2 CFR 200.318-326. B. Procurement (1) Compliance. The SUBRLCIPIENT shall comply with current HUD and CITY policies concerning the procurement of equipment, goods, and services, and shall maintain inventory records of all non -expendable 12 City Council 14 — 58 5/4/2021 60A-56 EXHIBIT 1 personal property as defined by such policy as may be procured with funds provided herein. The SUBRECIPIENT shall report to the CITY all program assets (unexpended program income, property, equipment, etc.), and upon the CITY'S request, such assets shall revert to the CITY upon termination of this AGREEMENT_ (2) Pursuant to 2 CFR 200.331 (a) (4), the htdirect Cost Ratc for the SUBRECIPIENT's award shall be an approved federally recognized cost rate negotiated between the SUBRECIPIENT" and the Federal government, or, if no cost rate exists, the de minims indirect cost rate as defined in 2 CFR 200.414(b) Indirect (F & A) costs shall be used. For this agreement, the de minims indirect cost of 10% will apply. (3) Use and Reversion of Assets. The use and disposition of equipment under this AGREEMENT shall be in compliance with the requirements of 2 CFR Part 200. C. Reporting Reporting requirements must conform to the policies and procedures as established by the CITY and 24 CFR § 576.500. The SUBRECIPIENT shall submit to the CITY, on or before the 15"' day of October, .January, April, and July, as part of the Quarterly Report: (1) Payment Request. An original request for reimbursement and true copies of invoices, receipts, agreements, or other documentation supporting and evidencing how the ESG Funds have been expended during the applicable quarter. (2) Quarterly Activities and written cumulative (year-to-date) reports of activities, program accomplishments, new program information, and up-to-date program statistics on expenditures, caseload and activities. Failure to provide any of the required documentation and reporting will cause the CITY to withhold all or a portion of a request for reirmbursermcm until such documentation and reporting has been received and approved by the CITY. (3) Matching. Quarterly certification of thatch, plus documentation of match source. (A) Any other such reports as the CITY (or HUD) shall reasonably require and/or request, including but not limited to the following information: monthly records of all ethnic and racial statistics of persons and families benefited by the SUBRECIPIENT in the performance of its obligations under this AGREEMENT. D. Record Keepig Sufficient records must be established and maintained to enable the CITY and HUD to determine whether the FSG requirements are being met_ Record keeping requirements nest conform to the policies and procedures as established by the CITY. All accounting records, reports, all evidence pertaining to costs, expenses, and 1SG Funds of the SUBRECIPIENT, and all documents related to this AGREEMENT shall be maintained and kept available at the SUBRECIPIENT'S office or place of business for the duration of the AGREEMENT and thereafter for five (5) years post -completion of an audit in conformity with the ESG requirements, except as hereinafter provided relating to retention of any records or documentation existing, create{, or maintained in compliance with Lead -based Paint regulations, which likely require longer retention as outlined below. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this AGREEMENT, or (b) costs and expenses of this AGREEMENT to which the CITY or any other govertmental agency takes exception, shall be retained beyond the five (5) years until complete resolution or 13 City Council 14 — 59 5/4/2021 60A-57 EXHIBIT 1 disposition of such appeals, litigation claims, or exceptions. All said records must be retained for the greater of the aforementioned duration or the periods specified in 24 CPR 576.500(y). All records relating to, or created or maintained in compliance with, the Lead -Based Paint regulations shall be retained and maintained by the SUBRECIPIENT indefinitely, including without limitation, all inspection report(s), disclosure statement(s), and clearance report(s). Copies made by microfilming, photocopying, or similar methods may be substituted for the original records. The CITY, HUD and auditors shall have the right to access all the SUBRECIPIENT records for as long as the records are retained by the SUBRECIPIENT. In the event the SUBRECIPIENT does not make the above -referenced documents available within the City of Santa Ana, California, the SUBRECIPIENT agrees to pay all necessary and reasonable expenses incurred by the CITY in conducting any audit atthe location where said records and books of account are maintained. The SUBRECIPIENT agrees to meet the requirements set forth in 24 CFR § 576.500. F. Ilorneless Manaf£ernent Information Systems (FIMIS) (1) Generally. The SUBRECIPIENT must ensure that data on all persons served and all activities assisted under ESG are entered into the applicable community -wide HMIS in the area in which those persons and activities are located, or with the express knowledge and written consent of the CITY, a comparable database, in accordance with lIUD's standards on participation, data collection, and reporting under a local HMIS. (2) HMIS Agency Agreement. The SUBRECIPIENT shall have an agreement in place with the HMIS lead agency to participate in the regionally HMIS system. A copy of the SUBRECIPIENTS agreement with the HMIS lead agency shall be attached to this agreement as Exhibit F. In the case of Domestic Violence service providers or other agencies prohibited from entering data into HMIS, documentation from the HMIS lead agency certifying that the SUBRECIPIENT is using a comparable database shall be attached to this agreement as Exhibit E. (3) 1IMIS Interagency Data Sharing Agreement. The SUBRECIPIENT shall enter into an Interagency Data Sharing Agreement with the HMIS Lead Agency where the SUUBRFCIPIENT agrees to share HMIS data with other PSG funded agencies regarding clients that are served in FSG funded programs, unless prohibited by law. A copy of such agreement shall be attached as Exhibit F-1. (A.) The SUBRECIPIENT agrees to provide 211 OC with all required data needed to complete data analysis regarding project performance, data timeliness, or data quality. F. Audit Report Requirements The SUBRECIPIENT agrees that if the SUBRECIPIENT expends Seven Hundred Fitly TTnousand Dollars ($750,000.00) or more in federal funds, the SUBRECIPIENT shall have an annual audit conducted by a certified public accountant in accordance with the standards as set forth and published by the United States Office of Management and Budget (2 CFR 200.501a). The SUBRECIPIENT shall provide the CITY with a copy of said audit by April 1 of the year following the program year in which this AGREEMENT is executed. Further, the SIBRECIPIENT shall comply and/or cause compliance with audit report(s) required by applicable provisions of the Lead -Based Paint Regulations as further detailed below. Vill. EVALUATION AND MONITORING A. Generally 14 City Council 14 — 60 5/4/2021 60A-58 EXHIBIT 1 The CITY will monitor the performance of the SUBRECIPIENT against goals and performance standards as required herein. The WBRFCIPIENT shall provide the CITY all necessary reporting information as required by the CITY in the administration and review of the Program. Substandard performance as determined by the CITY will constitute noncompliance with this AGREEMENT_ If action to correct such substandard performance is not taken by the SUBRECIPIENT within a reasonable period of time alter being notified by the CITY, contract suspension or tervination procedures will be initiated. B. Access to Records The SIJBRECIPIENT gives the CITY and HUD, including their authorized representative, access to and the right to examine all records, books, papers, items, emails, and documents, both physical and electronic, relating to the program. C. Audit The CITY shall have the right to audit and monitor any program income as a result of an ESG activity. Upon request by the CITY and for audit purposes, the SUBRECIPIENT further agrees to provide all files, records, and documents pertaining to related activities and clientele demographic data. IX. LIABILITY A Generally Each party to this AGREEMENF acknowledges that it will be liable for its own negligent acts or negligent omissions by or through itself, its employees, agents, and subcontractors. Each party further agrees to defend itself and themselves, and to pay any judgments and costs arising out of such negligent acts or omnssions, and nothing in this AGREEMENT shall impute or transfer any such liability from one to the other. In other words, the SUBRECIPIENT agrees to be fully responsible for its negligent acts or omissions, or any intentional tortuous acts which result in claims or suits against the CITY, and agrees to be liable for any damages proximately caused by said acts or omissions. Nothing herein shall be construed as consent by a State or CITY agency or subdivision to be sued by third parties in any matter arising out of any contract, and nothing herein is intended to serve as a waiver of sovereign immmunity where sovereign immunity applies. B. CITY not Liable for Funds The SUBRECIPIENT further acknowledges that the source of the FSG Funds is a federal pass -through grant to the SUBRECIPIENT. The CITY shall have no obligation to advance or pay the SUBRECIPIENT with any funds other than the L-SG Funds the CITY receives from HUD. C. Hold Harmless The SUBRECIPIENT shall defend, indemnify and save harmless the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the CITY, and shall defend, indemnify and save harmless the CITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers compensation claims and attorney fees/expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or omissions of the SUBRECIPIENT, its officers, directors, employees, agents, subcontractors, and suppliers arising out of the is City Council 14 — 61 5/4/2021 60A-59 EXHIBIT 1 SUBRECIPIENT's performance of this AGREEMEN'I'. X. ENVIRONMENTAL CONDITIONS A. Generally ESG activities are subject to environmental review by HUD under the environmental regulations in 24 CFR 50. The SUBRECII?IEN'T, or any contractor of the SUBRECIPIENT, may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct property for a project under this part, or commit or expend HUD or local funds for eligible activities under this part, until HUD has performed an envirorunental review under 24 CFR part 50 and the recipient has received HUD approval of the property. The SUBRECIPIENT agrees to comply with all applicable environmental requirements insofar as they apply to the performance of this AGREEMENT, including but not limited to the Clean Air Act, the Federal Water Pollution Control Act and the Flood Disaster Protection Act. If applicable, the SUBRECIPIENT also shall comply with the Historic Preservation requirements of National Historic Preservation Act of 1966. p_ • aeon and, disclosure B. ea ase autt remedi The bead -Based Paint Poisoning Prevention Act (42 U_S.C. 4821-4846), the Residential Lead -Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4951-1856), and implementing regulations in 24 CFR part 35, subparts A, B, H, J, K, M, and R apply to all shelters assisted under ESG program and all housing occupied by program participants that were built before 1978. C. Assignment of Responsib lities. By this AGREEMENT, the SUBRECIPIENT will accept assignment from the CITY of all responsibilities set forth in Subpart K of 24 CFR 35. D. Co plianee with Subpart K The purpose of Subpart K is to establish procedures to eliminate as Iar as practicable lead -based paint ("LAP") hazards in a residential property that receives Federal assistance under certain MUD programs for acquisition, leasing, support services, or operation. In connection with the grant finds under this AGREEMENT, the CITY requires that the SUBRECIPIENT comply and show evidence of compliance with all applicable subparts of 24 CFR 35, and especially, Subpart K ("LBP Regs"). The SUBRECIPIENT shall conduct the following activities for the dwelling unit, common areas servicing the dwelling unit, and the exterior surfaces of the building in which the dwelling unit is located: (1) A visual assessment of all painted surfaces in order to identify deteriorated paint; (2) Paint stabilization of each deteriorated paint surface, and clearance, in accordance with §§ 35.1330(a) and (b), before occupancy of a vacant dwelling unit or, where a unit is occupied, immediately after receipt of Federal assistance; and (3) Ong -pin held-liased paint maintenance activities into regular building operations, in accordance with § 35.1355(a), if the dwelling unit has a continuing, active financial relationship with a Federal housing assistance program, except that mortgage insurance or loan guarantees are not considered to constitute an active programmatic relationship for the purposes of this part. 16 City Council 14 — 62 5/4/2021 60A-so EXHIBIT 1 (4) And, notice to occupants in accordance with §§ 35.125(b)(1) and (c), describing the results of the clearance examination. 1'. Notification of LBP Hazard The SUBRECIPILNT shall provide to all occupants of housing: (1) In accordance with Section 35.130 of the LBP Regs - the LBP hazard information pamphlet. The pamphlet shall be the EPA/HUD/Consumer Product Safety Convnission lead hazard information pamphlet or an EPA -approved equivalent. The current form and version of the pamphlet can be found at: ftttp://www.hud.gov/offices/lead/library/enforcement/R-disd,pdI (2) In accordance with 24 CFR 35, Subpart A, all available information and knowledge regarding the presence of LBP and LBP hazards prior to leasing a housing unit. (3) In accordance with 24 CFR 35, Subpart A, notification in writing of the results of the presumption of LBP and/or LBP hazards, results of any lead hazard evaluation, and any lead'nazard reduction work. I' LBP htlounacion Sununar For purposes of information only and in no respect intended to be a representation or warranty of the provisions of the LBP Regulations, the CITY has caused to be prepared an information summary relating to the LBP Regulations and Application to dwelling units that may be occupied by recipients of services and/or funding from the SiTBRECIPIENT under this AGREEMENT. CITY staff will cooperate with and be available to the SUBRECIPILNT to assist in implementation of compliance with the LBP Regs as to residential dwelling units to be assisted by the SUBItECIPIENT. The parties acknowledge and agree the CTTY shall not be liable or responsihle for the accuracy of such summary, and the SUBRECIPENT is directed to the LBP Regulations and implementing guidance published and provided by I -IUD relating to compliance with such LBP Regulations. G. I_xemLnic lls Section 35.115(a) provides exemptions from Subparts B through R. For example, lead -based paint requirements do not apply to housing assistance if the assistance lasts less than one hundred (100) days. XI. CONFLICTS OF INTEREST The SUBRECIPILNT Shall comply with 2 CFR 200.112 with respect to the use of program funds to procure services, equipment, supplies, or other property. With respect to all other decisions involving the use of program funds, the following restriction shall apply: No person who is an employee, agent, consultant, officer, or elected or appointed official of the SUBRECIPILNT and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds there under, 17 City Council 14 — 63 5/4/2021 60A-61 EXHIBIT 1 either for himself or herself, or for those with who he or she has family or business ties, during his or her tenure or for one (1) year thereafter. The SUBRECIPIENT agrees to abide by the ESG Program',, Conflict of Interest provisions as expressly detailed in 24 CFR § 576.404 regarding Organizational Conflicts of Interest and Personal Conflicts of Interest. All contractors of the SUBRECIPIENT must comply with the same requirements that apply to the SUBRECIPIENT under this section. XII. ASSIGNABILLCY None of the duties of, or work to be pet%nned by, the SUBRECIPIENT under this AGkEEMENT shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of the CITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the CITY. No subcontract or assignment shall tenninate or alter the legal obligations of the SUBRECIPIENT pursuant to this AGREEMENT. MR. EXCLUSIVITY OF AGREEMENT This AGREEMENT supersedes any and all otb,er agreements, either oral or in writing, between the parties hereto with respect to the use of the CITY's ESG Funds by the SUBRECIPIENT and contains all the covenants and agreements between the parties with respect to such ESG Funds in any manner whatsoever. Each party to this AGREEMENT acknowledges that no representations, inducement, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in writing and signed by both the CITY and the SUBRECIPIENT. XIV. AMENDMENTS OR MODIFICATIONS The SUBRECIPIENT shall riot obligate, encumber, spend, or otherwise utilize program funds for any activity or purpose not included or not in conformance with the budget as apportioned and as submitted to the CITY unless: (1) The SUBRECIPIENT has received explicit written approval from the CITY to undertake such actions, or (2) Budget changes may be made among approved program activities and among approved budget categories so long as the specific project activity has been approved, there is no change to the total grant amount, and the changes to the budget are documented. Any program modification request by the SUBRECIPIENT must be requested at least forty-five (45) days prior to the end of the term of this AGREEMENT. No modification to this AGRL-E-MENT shall he binding by either party unless in writing and sigricd by both parties. In the event that the CITY approves any amendment to the funding allocation, the SUBRECIPIENT shall be notified in writing and such notification shall constitute an official amendment. The CITY may, at its discretion and upon provision of proper notice to the SUBRECIPIENT, amend this AGREEMENT to confonrr with changes in Federal, State, and/or the CITY laws, regulations, guidelines, directives, and objectives. Such amendments shall be incorporated by written amendment as a part of this AGREEMENT. 18 City Council 14 — 64 5/4/2021 60A-62 EXHIBIT 1 XV. VIOLATION OF TERMS AND CONDITIONS A. Termination If, due to any cause, the SUBRECIPIENT fails to comply with the terms, conditions or requirements of thus AGREEMENT, or any prior AGREEMENT whereby ESG funds were received by the SUBRECIPIL-NT, whether stated in it Federal statute or regulation, an assurance, a State plan o; application, it notice of award, or elsewhere, the CITY may terminate or suspend this AGREEMENT in accordance with 2 CFR 200.339 and in accordance with 2 CFR 200.340 by giving written notice, and the CITY may request in writing that all or some of the grant funds be returned even if the SUBRECIPIENT has expended the fiends. If the SUBRECIPTENT reports inaccurately, or if on audit there is a disallowance of certain expenditures, the SUBRECIPIENT agrees to remedy the acts or omissions causing the disallowance and repay the CITY all amounts spent in violation thereof. If the SUBRECIPIF,NT engaged in fraudulent activity to obtain and/or justify expenditure of the ESG funds granted hereunder, the SUBRECIPIENT shall be required to reimburse the CITY of all such funds that were obtained and/or spent under fraudulent circumstances, and the CITY reserves the right to take other remedies that may be legally available. The SUBRECIPIENT agrees to return all funds as requested by the CITY under this section within thirty (30) days of receipt of the written request. Any objections regarding terminations or suspensions shall be made by the SUBRECIPIENT in writing and mailed to the CITY pursuant to the above NOTICES section_ XVI. CLOSE-OUT The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR 200.343, including the following: 1. SUBRECIPIENT must submit, no later than ninety (90) calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award; 2. Unless the CITY authorizes an extension, SiJBRFCIPIENT must liquidate all obligations incurred under the Federal award not later than ninety (90) calendar days after the end date of the period of performance as specified in the terns and conditions of the Federal award; 3. SUBRECIPIENF must promptly refund any balances of unobligated cash that the CITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for use in other projects (See OMG Circular A-129 and 2 CFR 200.345), 4. SUBRECIPIENT must account for any real and personal properly acquired with Federal funds or received from the Federal government in accordance with 2 CFR 200.310-200.316 and 200.329; and, 5. The CITY should complete all closeout actions for the Federal award no later than one year after receipt and acceptance of all required final reports. 19 City Council 14 — 65 5/4/2021 60A-63 EXHIBIT 1 XVII. VALIDITY AND SEVERABILITY The invalidity in whole or in part of any provision of this ARGREEMENT shall not void or affect the validity of any other provision of this AGREEMENT'. Whenever possible, each provision of this AGREEMENT" shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such probibition or invalidity, without invalidating the remainder of such provisions of this AGREEMENT. XVIII. LAWS GOVERNING THIS AGREEMENT This AGREEMENT shall be governed by and construed in accordance with the laws of the State of California, and all applicable federal laws and regulations. XIX. WAIVER No delay or omission by the CITY hereto to exercise any right or power accruing upon any noncompliance or default by the SUBRECIPIENT with respect to any of the terns of this AGREEMENT" shall impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be construed to he a waiver of any succeeding breach thereof or of any other covenant, condition, or agreement herein contained. 911 City Council 14 — 66 5/4/2021 60A-64 EXHIBIT 1 XX. AGREEMENT DOCUMENT, EXHIBITS, AND ATTACHMENTS All of the attaclunents and exhibits attached to this AGREEMENT are deemed incorporated by reference_ This document may be executed in three (3) counterparts, each of which shall be deemed to be an original_ Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the. tens of this AGREEMENT, and shall indemnify the CITY fully, including reasonable costs and attorney's fees, for any injuries or damages to the CITY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. IN WITNESS WHEREOF, the patties hereto have executed this AGREEMENT on the date and year first above written. ATTEST: DAISY GOMIiZ Clerk of the Council APPROVED AS TO FORM: SONIA LARVA LHO City Attorney? P / I � 411 /—" By. RYA O. H( DGE Assistantty' Attorney RECOMMENDED FOR APPROVAL.: SIEVEN A. MENDOZA Executive Director Community Development Agency CITY Of SANTA ANA a municipal corporation KRISTINE RIDGE City Manager SUBRECIPIENT 1/—- rarry4laynes Executive Director Mercy House Living Centers, Inc. Fax ID: 33-0315864 DUNS #: 87-979-7165 21 City Council 14-67 60A-65 5/4/2021 EXHIBIT 1 City of Santa Ana Scope of Work Name of Organization Mercy House Living Centers Name of Funded Program Homeless Prevention Program Annual Accomplishment Goal I. Total number of unduplicated clients (Santa Ana and Non -Santa Ana Residents) anticipated to be served by the fund ram, named above, during the 12-month contract period. 150 Persons II. Number of unduplicated Santa Ana residents expected to be served by the funded program during the 12-month contract period. 35 Persons Program and Funding Description III. Description of Work - In the space below, describe the program to be funded during the 12-month contract period. What specific activities will be undertaken during the contract period. Please be concise in your response. Only the viewable space will print. The Homeless Prevention program provides short term financial assistance and case management to Santa Ana Resident households who are at -risk of homelessness and who without assistance would become homeless. Mercy House anticipates serving 35 people during the grant term. Schedule of Performance Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 12-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter. If they were served in quarter 1 do not count them again in quarter 2 Quarter 1: July 1 - September 30 LjTotal Persons Quarter 2: October 1 -December 31 Persons Quarter 3: January 1 - March 31 Persons Quarter 4: April 1 -June 30 Persons unduplicated Santa Ana Residents to be served. Schedule of Invoicing Estimate the amount of grant funds to be requested during the 12-month contract period on a quarterly basis. Quarter 1: July 1 - September 30 Quarter 2: October 1 - December 31 Quarter 3: January 1 - March 31 Quarter 4: April 1 -June 30 W$5,C)DO-00 $0.00 $ 25,000.00 Total Grant City Council Exhibit A+114 — 68 5/4/2021 Wig► ��'"6 EXHIBIT 1 rSG Funded Personnel Name of Organization: Mercy Ilouse Laving Centers Name of Program Program Staff Homeless Prevention Program Position Tide (only list funded positions) Budget Category Annual Salary Hourly Rate Approximate ti of Howl per montli serving Santa Ana Total Amount Requested Case Manager Case Mgr $ 38,480 $ 18.50 13% $5,000 Total F..SG Requested $ 5,000.00 City Council 14 — 69 5/4/2021 60A-67 EXHIBIT 1 Organization Name Program Name ESG Final Budget Mercy House Living Centers Homeless Prevention Progran Expenditures Category Expenses Funded 6y Santa Ana Expenses Funded I by Other Sources Total Program Budget Total Organizational Budget Housing Relocation and Stabilization Services Financial Assistance Rent Deposit $ $ 179,984 Rental Application fees $ Utility Deposit $ Utility $ $ 217,892 Moving Costs $ $ 40,000 Service Assistance $ $ 1,984,088 Hsg Search & Placement $ $ 760,000 Case Management $:' 5.000 $ 26,500 $ 31,500 $ 7,544.976 Mediation $ _ Legal $ Credit Repair $ Rental Assistance Rent $ 19,500 $ 55,500 $ 75,000 $ 4,764,164 Other Insurance $ $ 194,992 Professional Fees $ $ 153,400 Admin/Office $ $ 481,686 Local Expenses $ $ 76,418 Indirect Cost $ 500 $ 10,500 $ 11,000 $ 1,317,648 Facility Expenses _ S $ 6,115,738 Fundraising $ - $ 202,20 1 Total $ 25,000 $ 92,500 $ 117,500 $ 24,033,189 LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED (Total Funds for Program must equal Total Program Budget above) Source Amount Santa Ana $ 25,000 Garden Grove $ 15,000 EFSP $ 37,500 General Funds $ 40,000 Total Funds for the Program $ 117,500 Exhibit B City Council Pagel of 1 14 — 70 5/4/2021 60A-68 EXHIBIT 1 City of Santa Ana Scope of Work Name of Organization Mercy House Living Centers Name of Funded Program The Link - Interim Emergency Shelter Annual Accomplishment Goal I. Total number of unduplicated clients (Santa Ana and Non -Santa Ana Residents) anticipated to be served by the funded ro ram, named above, during the 12-month contract period. 375 Persons II. Number of unduplicated Santa Ana residents expected to be served by the funded program during the 12-month contract period. 375 Persons Program and Funding Description III. Description of Work - In the space below, describe the program to be funded during the 12-month contract period. What specific activities will be undertaken during the contract period. Please be concise in your response. Only the viewable space will print. Emergency Shelter will be provided to homeless adults and families with ties to the City of Santa Ana at the Link - Interim Emergency Shelter location. While in the program participants will have access to emergency assistance including shelter, meals, and hygiene facilities. Additionally, participants receive assessment and housing navigation services as well as connections to employment, mental health, veteran, and substance use services. Employment and Housing Navigators conduct individual assessment of needs, followed by provision of targeted services (Housing Plan) focused on returning individuals to permanent housing as quickly as possible. Navigators conduct VI-SPDAT assessments and enter participants in the Orange County Coordinated Entry System and prioritization list, ensuring that shelter clients are connected to permanent supportive and rapid rehousing opportunities in the community. Shelter clients are provided assistance to obtain necessary documents, employment guidance and linkages to community resources and meet weekly with their assigned Navigators. ESG funding will be used to support Essential Services and Operations including expenses associated with the salary and benefits of the site lead and housing navigators at the shelter and logicial staff. Schedule of Performance Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 12-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter. If they were served in quarter 1 do not count them again in quarter 2 Quarter 1: July 1 - September 30 lTotal Persons Quarter 2: October 1 - December 31 Persons Quarter 3: January 1 - March 31 Persons Quarter 4: April 1 -June 30 Persons unduplicated Santa Ana Residents to be served. Schedule of Invoicing Estimate the amount of grant funds to be requested during the Quarter 1: July 1 - September 30 $50,490.00 Quarter 2: October 1 - December 31 $50M15146&00 490.00 Quarter 3: January 1 - March 31 Quarter 4: April 1 -June 30 12-month contract period on a quarterly basis. Total Grant City Council Exhibit A 14 — 71 5/4/2021 61YA=5'-19 EXHIBIT 1 Organization Name Program Name ESG Final Budget House Livinq Centers The Link - Interim Emerqencv Shelter Expenditures Category Expenses Funded by Santa Ana Expenses Funded b Other Sources Total Program Budget Total Organizational Budget Essential Services Case Management $ 51.468 $ 97,650 $ 149,118 $ 1,157,587 Support Services $ 6,000 $ 6,000 $ 7,186,128 Transportation $ 200,000 $ 200,000 $ 874,100 $ Shelter Operations Shelter Staff $ 100,000 $ 779,382 $ 879,382 $ 5,159,722 Security Guards $ 560,000 $ 560,000 $ 2.777,000 Facility Expenses $ 661,000 $ 661,000 $ 1,797,461 Equipment Rentals $ 10.000 $ 10,000 $ 37,250 Shelter Supplies $ 315,000 $ 315,000 $ 1,424,027 Insurance $ 10,000 $ 10,000 $ 194,992 Other Misc. Agency Expenses $ $ 2,107,274 Indirect Cost $ 85,134 $ 85.134 $ 1,317,648 $ Total $ 151,468 $ 2,724,166 $ 2.875.634 $ 24,033,189 LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED (Total Funds for Program must equal Total Program Budget above) Source Amount Santa Ana $ 151,468 City of Santa Ana $ 2,724,166 Total Funds for the Program 1 $ 2,875,634 Exhibit B Page 1 of 1 City Council 14 — 72 5/4/2021 60A-70 EXHIBIT 1 Name of Organization: Name of Program Proeraut Staff ESG Funded Personnel Mercy house Living Centers The Link -Interim Emergency Shelter Position Title (only list fiiuded positions) Budget Category Annual Salary Hourly Rate Approximate # of Hours per month serving Santa Ana Total Amount Requested Housing Navigators Essential $ 33,568 $16.14 100% $51,468 Site Lead Operations $ 35,360 MT00 100% S20,000 Logistics Staff Operations $ 31,200 $15.00 1001% $80,000 Total ESG Requested $ 151,468 00 City Council 14 — 73 5/4/2021 60A-71 EXHIBIT 1 City of Santa Ana Scope of Work Name of Organization Mercy House Living Centers Name of Funded Program Rapid Rehousing Program Annual Accomplishment Goal I. Total number of unduplicated clients (Santa Ana and Non -Santa Ana Residents) anticipated to be served by the funded pro ram, named above, during the 12-month contract period. 500 Persons II. Number of unduplicated Santa Ana residents expected to be served by the funded program during the 12-month contract period. 12 Persons Program and Funding Description III. Description of Work - In the space below, describe the program to be funded during the 12-month contract period. What specific activities will be undertaken during the contract period. Please be concise in your response. Only the viewable space will print. Mercy House will provide Rapid Rehousing assistance to12 homeless persons who will receive security deposit assistance , rental assistance, case managment and housing search and placement services. It is anticipated that the majority of clients will need medium term assistance (6-12 months). As required by ESG , all referrals for the program will come from the Coordinated Entry System and will have connections to the City of Santa Ana . Priority will be given to those who are exiting directly from The Link emergency shelter. Schedule of Performance Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 12-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter. If they were served in quarter 1 do not count them again in quarter 2 Quarter 1: July 1 - September 30 F3 Persons Quarter 2: October 1 - December 31 7 Persons Quarter 3: January 1 - March 31 2 Persons Quarter 4: Aoril 1 -June 30 0 Persons 12 Total unduplicated Santa Ana Residents to be served. Schedule of Invoicing Estimate the amount of grant funds to be requested during the 12-month contract period on a quarterly basis. Quarter 1: July 1 - September 30 Quarter 2: October 1 - December 31 Quarter 3: January 1 - March 31 Quarter 4: April 1 -June 30 M Total Grant City Council Exhibit oA�14 — 74 5/4/2021 b� A- / 2 EXHIBIT 1 Organization Name ESG Final Budget House Living Centers Program Name Rapid Rehousing Program Expenditures Category Expenses Funded by Santa Ana Expenses Funded Lby Other Sources Total Program Budget Total Organizational Budget Housing Relocation and Stabilization Services Financial Assistance Rent Deposit $ 19,700 $ 138,556 $ 158,256 $ 179,984 Rental Application fees $ - Utility Deposit $ _ Utility $ 39,151 $ 39,151 $ 217892 Moving Costs $ 4,320 $ 4,320 $ 40,000 Service Assistance $ 6,624 $ 6,624 $ 1.984,088 Hsg Search & Placement $ 227,978 $ 227,978 $ 760,000 Case Management $ s 34,600 $ 903,701 $ 938,301 $ 7.544,978 Mediation $ Le al $ Credit Repair $ Rental Assistance Rent $ 042,300 $ 2,058,485 $ 2,100,785 $ 4,764,164 Other Insurance $ 5,285 $ 5,285 $ 194,992 Professional Fees $ 10,080 $ 10,080 $ 153,400 Admin/Office $ 49,196 $ 49.1 66 $ 481,686 Local Expenses $ 15,264 $ 15,264 $ 76,418 Indirect Cost $' 3,400' $ 69,752 $ 73,152 $ 1,317,648 Facility Expenses $ - $ 6,115,738 Fundraisingg $ - $ 202,201 Total $ 100,000 $ 3,528.391 $ 3,628,391 $ 24,033,189 LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED (Total Funds for Program must equal Total Program Budget above) Source Amount City Council Santa Ana _ $ 100,000 HDAP CA State $ 167,704 State ESG $ 227,114 Anaheim ESG $ 20,000 Garden Grove TBRA $ 250,000 Huntington Beach TBRA $ 305,694 Anaheim TBRA $ 182,538 Adult ReEntr CA State $ 601,819 CA State General Funds $ 550,000 HEAP Funds $ 72,247 Bringing Families Home $ 901,275 Private Funds $ 250,000 lotal Fund s Or a rogr 3,628,391 5/4/2021 b'6X-73 EXHIBIT 1 ESG I+unded Personnel Name of Organization: Mercy House Living Centers Name of Program Rapid Rehousing Program Program Staff Position Tide (only list funded positions) Budget Category AnnualHourly Salary Rate Approximate It of Hours per month serving Santa Ana Total Amount Requested Case manager(s) Case Mgr $ 38,480 $ 1850 90% $34,600 Total ESG Requested $ 34,600.00 City Council 14 — 76 5/4/2021 60A-74 EXHIBIT 1 Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 29 CPR Part 98, Section 98.510, Participants' responsibilities. The regulations were published as Part VII of the May 26, 1988 Federal Regist (pages 19160-19211). (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS F OR CERTIFICATION - Attached) (1) The prospective recipient of federal assistance funds certifies, by subrnission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debannent, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. (2) Where the prospective recipient of federal assistance funds is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. Name and Title of Authorized Representative Signature Date City Council EXHIBIT t,4 — 77 5/4/2021 6#A1-PM EXHIBIT 1 INSTRUCTIONS FOR CERTIFICATION 1. By signing and submitting this proposal, the prospective recipient of federal assistance funds is providing the certification as set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective recipient of federal assistance fiords knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Govcmment, the Department of Labor (DOL) may pursue available remedies, including suspension and/or debarment. 3. The prospective recipient of federal assistance funds shall provide inunediate written notice to the person to which this proposal is submitted if at any time the prospective recipient of federal assistance funds learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. 5. 'fhe prospective recipient of federal assistance funds agrees by su'brnitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the DOL. 6. The prospective recipient of federal assistance fiends further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded fi-om the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to check the List of Parties Excluded from Procurement or Non- Procuremeiit_Programs. 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the DOL may pursue available remedies, including suspension and/or- debarment. City Council EXHIBIT%} — 78 5/4/2021 46 EXHIBIT 1 Certification Regarding Lobbying Certification for Contracts, Grants, Loa and Cooperativc Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contact, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an cmployee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Fonn-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions_ (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontract, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U. S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than S 100,000 for each such failure. Grantee/Contactor Organization Program Title Name of Certifying Officer Signature Date City Council ,'� - 79 5/4/2021 1� Odx- q/4 EXHIBIT 1 SUBRECIPIENT warrants the following: 1. SUBRECIPIENT will comply with Public Law 88-352, Title VI of the Civil Rights Act of 1964 (42 U_ S_ C_ section 2000 et seq.) and implementing regulation in 24 CFR. Part 1. 2. No person in the United States shall on the ground of race, color, religion, national origin, or sex, be excluded from participation in, or be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with community development funds made available pursuant to the ACT. 3. All laborers and mcchanies, employed by contractors or subcontractors in the performance of construction work financed in whole or in part with community development funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis -Bacon Act, as amended, 40 U. S. C. Sections 276 a 1-5, except for individuals who perform services for which they volunteered, do not receive compensation for such services; or are paid expenses, reasonable benefits, or a nominal fee for such services; and are not otherwise employed at any time in construction work. 4_ SUBRECIPIENT will comply with all Federal statutes applicable to projects funded with community development funds, except that (a) SUBRECIPIENT does not assume CITY'S environmental responsibilities described at 24 CPR 570.604; and (b) SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process under Executive Order 12372. City Council """"" ` T4 - 80 5/4/2021 ddX-!8 EXHIBIT 1 Grange County Coc Inter -Agency Data Sharing Memorandum of Agreement The agency agrees to share client data among participating agencies via the LA/OC HMIS (Homeless Management Information System) for the purposes outlined below. Each participating agency must complete and comply with the Agency Agreement. Each individual HMIS user must complete and comply with the HMIS User Agreement. This document is available on the OCHMIS website http;//w .Qchmis.or . Uses of HMIS Data: • Coordinate housing services for families and individuals experiencing homelessness or facing a housing crisis in Orange County • Understand the extent and the nature of homelessness in Orange County • Evaluate performance and progress toward community benchmarks • Improve the programs and services available to Orange County residents experiencing homelessness or a housing crisis • Improve access to services for all Orange County homeless and at -risk populations • Reduce inefficiencies and duplication of services within our community • Ensure that services are targeted to those most in need, including "hard to servo" populations • Ensure that clients receive the amount and type of services that "best fits" their needs and preferences • Pursue additional resources for ending homelessness • Advocate for policies and legislation that will support efforts to end homelessness in Orange County Client Protection: • Informed consent must be given by clients In order for their identifying information to be entered into HMIS and shared among agencies in the LA/OC HMIS (sea Orange County HMIS participating agencies on OCHMIS.org). Non -identifying client information may be entered in the system for all clients regardless of whether they give their informed consent and regardless of their domestic violence status. • Only non -identifying information will be entered for clients currently fleeing or in danger from a domestic violence, dating violence, sexual assault or stalking situation. • Identifying client information will only be shared among agencies that have signed this agreement. At the time of informed consent, and at any point after, the client has the right to see a current list of the OC HMIS participating agencies. • Additional agencies may join the LA/OC HMIS and will be added to the list of HMIS participating agencies. As part of the informed consent process, clients must be informed that additional agencies may join the collaborative at any time and will have access to their information. • HMIS Users will maintain HMIS data in such a way as to protect against revealing the identity of clients to unauthorized agencies, individuals, or entities (see the 'OC HMIS Client Consent Form," and the "Client Rights Brochure OC" available on the OCHMIS.org website). • Clients may not be denied services based on their choice to withhold their consent. Each party to this memorandum of agreement shall defend, indemnify, and hold all other parties harmless from any and all claims arising out of that party's negligent performance of this agreement. Any loss or liability to third parties resulting from negligent acts, errors, or omissions of a LAIOC HMIS user while acting within the scope of their authority under this Agreement shall be borne by that user exclusively. Agreed to and signed by the following agency representative: Printed Name City Council 11 81 514/?P1 60A-79 EXHIBIT 1 GREATER Los ANGELES Ht ORANGE COUNTY HOMELESS MANAGEMENT INFORMATION SYSTEM (LA/OC HMIS) PARTICIPATING ORGANIZATION AGREEMENT I. Purpose The HMIS is a HUD -mandated information technology system that is designed to capture client -level information overtime, on the characteristics and service needs of homeless persons. Client data is maintained on a central server, which will contain all client information in an encrypted state. HMIS integrates data from all homeless service providers andorganizations in the community and captures basic descriptive information on every person served. Participation mLA/OC HMIS allows organizations to share information with other participating organizations to create a morecoordinated and effective delivery system. The LA/OC HMIS is the secured electronic database for the Greater Los Angeles and Orange Counties and is a valuable resource for local communities. The LA/OC HMIS Collaborative consists of four separate Continuums of Care {CoC). The continuums are: Los Angeles City and County; Santa Ana/Anaheim/Orange County; Glendale; and Pasadena. The LA/OC HMIS Collaborative's goal is to provide a comprehensive case management system to advance the provision of quality services for homeless persons, improve data collection, and promote more responsive policies to end homelessness in the Greater Los Angeles and Orange Counties. IL Agreement and Understanding This Agreement authorizes this Participating Organization (Organization) to designate HMIS Users (User). A user is a staff person entrusted to enter Protected Personal Information (PPI) into the LA/QC HMIS, on behalf of this Organization. In order to allow a user to access the LA/OC HMIS, a User Agreement must be signed by the User, the HMIS Administrator, and this Organization's Authorized Representative. III. Confidentiality and Informed Consent Confidentiality: This Organization must require all Users to abide by its organization's policies and procedures; uphold all privacy protection standards established by the LA/OC HMIS Collaborative Policies and Procedures; and comply with all relevant federal and State of California confidentiality laws and regulations that protect client records. Except where otherwise provided for by law, this Organization shall ensure that confidential client records are released with the client's written consent. Written Consent: To obtain written consent, prior to each client's assessment, each client must be informed that the client's information will be entered into an electronic database called HMIS. The terms of the ConSeot to Share Protected Personal Information form must also be explained to each client. Clients who agree to have their PPI entered into the LA/QC HMIS must sign the Consent to Share Protected Personal Information form. Verbal Consent: Verbal consent to enter PPI into the LA/OC HMIS may be obtained during circumstances such as phone screenings, street outreach, or community access center sign -iris. Each client must be informed that his or her information will be entered into the HMIS database. The terms of the Consent to Share Protected Personal Information form must also be explained to each client. The client's written consent must be obtained once the client appears for his or her initial assessment. Version 1.5 Page 1 of 3 Modified 3012112015 City Council 14 - 82 5/4/2021 EXHIBIT 1 IV. Client's Rights The client has a right to receive a copy of this notice at the time of request. Each client has the right to receive the following, no later than five (5) business days of a written request: • A correction of inaccurate or incomplete PPI • A copy of his or her consent form • A copy of his or her HMIS records • A current list of participating organizations that have access to HMIS data V. Data Use This Organization must protect HMIS data by ensuring that: • A link to the Privacy Notice is accessed from the Organization's webslte. • LA/OC HMIS is not accessible to unauthorized users • LA/QC HMIS is only accessed by computers approved by the Organization • HMIS Users are trained regarding, user responsibilities and conduct • HMIS users sign and comply with the LA/OC HMIS User Agreement • HMIS Users forward a copy of a client's Revocation of Consent to the HMIS Administrator within 24 hours of receipt. VI. Responsibilities This Organization is responsible to ensure that: • The Notice Regarding Collection of Personal Information is posted at each intake desk or comparable location. • HMIS Users do not misuse the system • Clients are notified if a breach of their PPI is discovered • Any HMIS User who finds a possible security lapse on the systern is obligated to immediately report it to the HMIS Administrator. • A signed copy of the Consent to Share Protected Personal Information is retained for a period of seven (7) years after the PPI was created or last changed. VII. System Use Computer equipment and services provided by a CoC are intended only for LA/OC HMIS-related activities. Prohibited uses include, but are not limited to: malicious or illegal activities; unauthorized access; the creation, sending and/or storing of fraudulent, threatening, harassing, or obscene messages; inappropriate mass mailing (spamming, flooding, bombing); denial of service attacks; and the creation or intentional distribution of computer viruses, worms, and/or Trojan horses. Equipment, if applicable: All CoC-provided computer equipment including, but not limited to, printers, scanners, laptops and monitors, were provided through grant funds from HUD. The maintenance arid upgrades of these devices are subject to the requirements and funding limitations of the HUD grant. Maintenance and/or upgrade costs to equipment, incurred after the HUD grant funds have been exhausted, become the sole responsibility of this Organization. Software, Licenses, and/or Services, if applicable: CoC-provided services to each organization may include, but are not limited to, purchasing and installing Anti -virus Software and licenses, Firewall software and licenses, Windows software updates and High -Speed Internet Connections. The software and/or services are provided for HMIS purposes through HUD grant funds. The maintenance, upgrades and license purchases are subject to the requirements and funding limitations of the HUD grant. Additional maintenance, upgrades and license purchases, incurred after the grant funds have been exhausted, become the sole responsibility of this Organization. Version 1.5 Page. 2 of 3 Modified 2012112015 City Council 14 — 83 5/4/2021 60A-81 EXHIBIT 1 Vill. Rights and Privileges LA/OC HMIS data is stored in one central database and is owned by the LA/OC HMIS Collaborative. The LA/OC HMIS Collaborative reserves all rights to the HMIS data. use of the LA/QC HMIS equipment, software, licenses, and/or services is a privilege and is assigned and managed by each HMIS Administrator. IX. Copyright The LA/OC HMIS and other CoC provided software are protected by copyright and are not to be copied, except as permitted by law or by contract with the owner of the copyright. The number and distribution of copies of any CoC provided software are at the sole discretion of the HMIS Administrator. X. Violations Any violations or suspected violations of any of the terms and conditions of this agreement, the HMIS User Agreement, and/or the HMIS Policies and Procedures, must be immediately and confidentially reported to the HMIS Administrator and the Executive Director or other authorized representative of this Organization. XI. Term This Participating Organization Agreement becomes effective on the date of final execution and shall remain in effect unless terminated pursuant to paragraph XI. Termination, below. XII. Amendment and Termination • The LA/OC CoC reserves the right to amend this agreement by providing a 3-day notice to this Organization. • Either party has the right to terminate this agreement, with or without cause, by providing a 3-day written notice to the other party. • If this agreement is terminated, this Organization shall no longer have access to HMIS or any Information therein. The remaining LA/OC HMIS participating organizations shall retain the right to use all client data previously entered by this Organization, subject to any restrictions requested by the client. All organizations that sign this agreement and are granted access to the LA/OC HMIS agree to abide by LA/OC's HMIS Collaborative Policies and Procedures. The signature of the Executive Director or other authorized representative of this Organization indicates acceptance of all terms and conditions set forth in this agreement. This Agreement is executed between the CoC and the Participating Organization. Upon final execution, this Organization will be given access to the LA/OC HMIS. Organization Name Organization Administrator/Authorized Representative (Print Name) Signature Date of Signature version 1.5 CoC Name ........ ........... --- -.._..-_..._ HMIS Administrator Name (Print Name) _......--- .... . Signature Date of Signature Page 3 of 3 Modified 1012112015 City Council 14 — 84 5/4/2021 60A-82 EXHIBIT 1 Memorandum of Understanding (MOU) between ORGANIZATION NAME and The City of Santa Ana W/O/R/K Center I. PARTIES: The parties to this Memorandum of Understanding (MOU) are and ....... ,a nd the City of Santa Ana W/O/R/K Center ("Work Center"). 2. PURPOSE: The Work Center, in conjunction with endeavors to establish a cooperative working relationship between the parties in order to provide program beneficiaries with information about Work Center opportunities to find better jobs and careers. The MOU serves to establish the framework for providing services to employees, job seekers and others needing workforce services. The goal is to ensure that all program beneficiaries have been provided an opportunity to connect with the Work Center and be assisted with the tools and knowledge necessary to enter the workforce or obtain a higher - paying job. 3. RTSPONSIBILITIES: A) The Work Center shall perform the following: 1) Accept referrals to the Work Center_ B) shall perform the following: 1) Provide Work Center information to participants and their families; and, 2) Refer participants in need of employment, training, or career counseling to the Work Center utilizing the referral form attached hereto as Attachment 1 and incorporated herein by reference. 4. DURATION: This MOU shall commence on July 1, 2019, and shall remain in effect through June 30, 2020. 5. AMENDMENTS: Either party may propose amendments to this MOU at any time by providing written notice to the other party. Amendments to this MOU shall require the approval of the City Manager, or her/his designee ("City Manager"), on behalf of the Work Center. 6. CONFIDENTIALITY: If receives information, which due to the nature of such information is reasonably understood to be confidential and/or proprietary, such information shall not be used or disclosed except in the performance of this MOU, and agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all non-public information. Confidential City Council 14 — 85 5/4/2021 60A-83 EXHIBIT 1 information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either patty by any subsidiary and/or agent of the other party is covered by this MOU. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of disclosed in a publicly available source; (c) is in rightful possession of ___ without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by without reference to information disclosed by the City of Santa Ana. 7. ACCESSABILITY: ORGANIZATION NAME. will assure that its services and premises are accessible to persons with disabilities pursuant to the requirements of the Americans with Disabilities Act. 8. HOLD HARMLESS CLAUSE: Each party to this MOU agrees to indemnify and hold harmless the other parties, their officers, agents, employees, and volunteers from and against any and all loss or damage, and from any and all suits, actions and claims filed or brought by any person or persons arising out of acts or omissions of the party or its officers, agents, employees or volunteers in the performance of this MOU. DISPUTES: The parties shall first attempt to resolve all disputes informally. Any party may call a meeting of all parties to discuss and resolve disputes. Should informal resolution efforts fail, the dispute shall be referred to the City Manager to act as mediator, to attempt to resolve the dispute by holding an infonnal hearing with presentations by both parties. If the City Manager's resolution efforts fail, any party may file a grievance with the City Manager for review and hearing_ The parties agree to be bound by the final determination resulting from that procedure. Each party to bear its own costs associated with any grievance procedures. 10. DISCRIMINATION: shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. _ affirms that it is an equal opportunity employer and shall comply with alla applicable p y pp • federal, state and local laws and regulations. 11. SEVERABILITY: If any part of this MOU is found to be mill and void, or is otherwise stricken, the rest of this MOU shall remain in force. 12. JURISDICTION: Jurisdiction over any disputes arising under this MOU shall reside in Orange County, California. 13. AUTHORITY AND SIGNATURES: The individuals signing this MOU or its attachments have the authority to commit the party they represent to the terns of this MOU, and do so commit by signing. City Council 14 — 86 5/4/2021 EXHIBIT 2 FIRSTAMENDMENT T'O EMERGENCY SOLUTIONS GRANT MEMORANDUM OF UNDERSTANDING; BETWEEN THE CITY OF SANTA ANA AND TLIF:: SANTA ANA POLICE DEPARTMENT (24 CFR Parts 91 and 576) THIS FIRST AMENDMENT TO THE, EMERGENCY SOLUTIONS GRANT MEMORANDUM OF UNDERSTANDING is entered into this 4"' clay of May, 2021, by and between the City of Santa Ana, a charter- city and municipal corporation of the State of California ("City"), and the Santa Ana Police Department ("Subrecipient"). RECITALS A. On July 1, 2020, the City entered into an Emergency Solutions Grant Memorandum o1' Understanding with the Santa Ana Police Department to provide Emergency Funds from the United States Depanment of Housing and urban Development (11UD) to be used in the operation of an emergency solution program for the homeless or at risk of homelessness of the City of Santa Ana ("said Agreement"). B. In an effort to provide additional housing assistance activities to serve Santa Ana residents experiencing homelessness, $7,954 will be reallocated to the Santa Ana Police Department 1-1EART program. C. In accordance with the tents and conditions of said Agreement, the parties desire to amend to increase funds to the Subrecipient, which need to be spent by June 30, 2021. NOW THF;REFORE, in consideration of the mutual and respective promises, and subject to the terns and conditions of said Agreement, except as herein modified, the panics agree as follows: 1. Paragraph 5, shall be amended to increase funding to Subrecipient by $7,954 in additional Data Collection and Outreach and Engagement Services. The new total sum shall be increased from 551,880 to an amount not to exceed $59,834 in grant funding. 2. Section I, subsection A, shall be amended to add the specific tasks required of the new funds as depicted in Subrecipicnt's Scope of Services attached hereto as Exhibit A and incorporated herein by reference. 3. Section III, shall be amended to increase funding to Subrecipient by $7,954, for a total sum not to exceed $59,834_ Subrecipient's Budget for these new fiends is attached hereto as Exhibit B and incorporated herein by reference. 4. Except as hereinabove modified, the tens and conditions of said Agreement remain unchanged and in full force and effect. City Council 14 — 87 5/4/2021 EXHIBIT 2 IN W I I N, LSS 1UI ILRL'OF, dte parties Iicrcto have ceccoktl this Firm Amendment to said ALocamcml the date and year lust above w iticn. Al"l ES..1.: DAISY QOME7 ClL;lk of 1,hce Council APPROVLD AS'l0 FORM_ Soma R. Cair\ alhn City Attoln3y. I ky, R r ..._ Assia, stnt (:pity Allonic} RECOMNIL.NDED FOR APPROVAL: STFVf N A. S1I;N[)C)1_A ExecllhVc Dircctor Community Development AgcuLy CITY OF S.AN7A ANA ICRiSTINF RIDE City Mat tiger SURRFC'IPIFN`I': _ Ntaii'it: DA`<'ID V AI LN'l IN f'itle: C'hicf ui'Poliec lax IDr 95-0000785 Dl1NS4' 08515,2470000 City Council 14 — 88 5/4/2021 EXHIBIT 2 EXHIBIT A SCOPE OF SERVICES City Council 14 — 89 5/4/2021 EXHIBIT 2 City of Santa Ana Scope of Work Name of Organization City of Santa Ana/Santa Dana Police Name of Funded Program H.E.A.fb.T. Annual Accomplishment Goal I. Total number of unduplicated clients (Santa Ana and Non -Santa Ana Residents) anticipated to be served by the funded program, named above, during the 12-month contract period. 200 Persons 11. Number of unduplicated Santa Ana residents expected to be served by the funded program during the 12-month contract period. 200 Persons Program and Funding Description 111. Description of Work - In the space below, describe the program to be funded during the 12-month contract period. What specific activities will be undertaken during the contract period. Please be concise in your response. Only the viewable space will print. Santa Ana Police Officers will contact individuals experiencing homelessness and attempt to provide the person(s) with necessary resources. The various resources will include lodging at the Link or Courtyard homeless shelters, transportation and social or mental health services utilizing the County PERT team members. Through a collaborative approach, officers will work the entire City in areas that are impacted by calls for service, citizen complaints, or noticeable encampments. Schedule of Performance Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 12-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter. If they were served in quarter 1 do not count them again in quarter 2) Quarter 1: July 1 - September 30 1 501 Persons Quarter 2: October 1 - December 31 50 Persons Quarter 3: January 1 - March 31 50 Persons Quarter 4: April 1 -June 30 50 Persons 200 Total unduplicated Santa Ana Residents to be served. Schedule of Invoicing Estimate the amount of grant funds to be requested during the 12-month contract period on a quarterly basis. Quarter 1: July 1 - September 30 $12,970.00 Quarter 2: October 1 - December 31 $12 970.00 Quarter 3: January 1 - March 31 $12,970.00 1$20,924.00 Quarter 4: April 1 -June 30 $59,834.00 (Total Grant City Council Page 1 of 114 — 90 5/4/2021 EXHIBIT 2 EXHIBIT B BUDGET City Council 14 — 91 5/4/2021 EXHIBIT 2 Organization Name Program Name ESG Final Budget Expenditures SAPID HEART Category §/1 �'KIII�m�„i ` `� °�"�'`"", j%%/ /S�rt ;i/%/// Expenses Funded by Other Sources Total Program Budget Total Organizational Budget Engagement - ,ld lr%lll�illlra%5i'$,_P $ 51,880 $ 111,714 - , J llllr � l l idl l /lllli/llla $ - 1(��„ $ - Case Management lF �lll������i�� ��f li $ /%ll 1/ll ill lll $ up l i ,' $ Emergency Health Svc. laf�III�IIIIIlI r �IiI/IIiIIII�/l $ l llll i /1 i l $ Emergency Mental Svc. $ $ Transportation iifll ll ' i l $ lll lllll /r`` ' Other Il 1 11/ 111 1/ l Indirect Cost $ Total %/,/5%j $ 51,8IIo $ 111,714 $ LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED (Total Funds for Program must equal Total Program Budget above) Source Amount Santa Ana ESG $ 59,834 Santa Ana $ 51,880 Total Funds for the Program $ 111,714 City Council Page 1 of 1 14 — 92 5/4/2021 EXHIBIT 2 ESG Funded Personnel Name of Organization: SAPD Name of Program HEART Program Staff Position Title (only list funded positions) Budget Category Annual Salary Hourly Rate Approximate N of Flours per montli serving Santa Ana Total Amount Requested Officer Cassandra Hawkins Officer Matthew Matherly Officer Amanda Brown Officer Jason McFall Officer Joshua Fspadas Officer Mark Gtiese Officer Nicholas Romero Total FSG Requested $ City Council 14 — 93 5/4/2021 EXHIBIT 3 FIRST AMENDMENT TO EMERGENCY SOLUTIONS GRANT SUBRECIPTENT AGREEMENT BETWEEN THE CITY OF SANTA ANA AND 211 ORANGE COUNTY (24 CFR Parts 91 and 576) THIS FIRST AMENDMENTTO TIIE EMERGENCY SOLUTIONS GRANT SUBRECIPIENT AGREEMENT is entered into this 0� day of May, 2021, by and between the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"), and 211 Orange County ("Subrecipient"). /I/ RECITALS A. On July 1, 2020, the City entered into an Eimergency Solutions Grant Subrecipient Agreement with 211 Orange County to provide Emergency Funds fi-onn the United States Department of Housing and urban Development (HUD) to be used in the operation of an einergency solution program for the homeless or at risk of homelessness of the City of Santa Ana ("said Agreement"). B. In an effort to provide additional housing assistance activities to serve Santa Ana residents experiencing homelessness, $6,248.40 will be reallocated to the 211 Orange County I-IMIS Data Collection. C. In accordance with the terns and conditions of said Agreement, the parties desire to arnend to increase funds to the Subrecipient, which need to be spent by June 30, 2021- NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Agreement, except as herein modified, the parties agree as follows: 1. Paragraph 5, shall be amended to increase founding to Subrecipient by $6,248.40 in additional Data Collection and Outreach and Engagement Services. The new total suns shall be increased from $1.5,028 to an amount not to exceed S21,276-40 in grant funding. 2. Section 1, subsection A, shall be amended to add the specific tasks required of the new funds as depicted in Subrecipient's Scope of Services attached hereto as Exhibit A and incorporated herein by reference. 3. Section III, shall be amended to increase funding to Subrecipient by $6,249-40, for a total sum not to exceed $21,276.40. Subrecipient's Budget for these new funds is attached hereto as Exhibit B and incorporated herein by reference- 4- Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in hill force and cffect. City Council 14 — 94 5/4/2021 EXHIBIT 3 IN WITNESS WI ILRLOI--, the ponies hereto have executed this First Amendment to said Agreemcnt the date and year first above written. ATTPST: DAISY 60M1.Z Clerk of the Council APPROVI-D AS TO FORM: Sonia R. Carvalho City A):torr cry `. By: RYn�t 01 HODGE Assistant 6ty Attorney RECOMMENDED FOR APPROVAL: STC-VFN A. MTNDOZA Executive Director Community Development Agency CFCY OF SANTA ANA KRISTINE RIDOE: City Manager SU13R1;CIPIENT: Name: KAREN W111IAMS 211 O•angc County Tax ITY1 33-0063532 OUNSH 884339003 City Council 14 — 95 5/4/2021 EXHIBIT 3 EXHIBIT A SCOPE OF SERVICES City Council 14 — 96 5/4/2021 EXHIBIT 3 City of Santa Ana Scope of Work Name of Organization People for Irvin_ a Community Health DBA 2-1-1 grange County (211OC) Name of Funded Program HMIS Data Coltection Annual Accomplishment Goal I. Total number of unduplicated clients (Santa Ana and Non -Santa Ana Residents) anticipated to be served by the funded program, named above, during the 12-month contract period. Persons II. Number of unduplicated Santa Ana residents expected to be served by the funded program during the 12-month contract period. I Persons Program and Funding Description III. Description of Work - In the space below, describe the program to be funded during the 12-month contract period. What specific activities will be undertaken during the contract period. Please be concise in your response. Only the viewable space will print. Host user meetings Perform site. visits Provide training and technical assistance Complete project set-ups Publish data quality and performance reports on our website (211oc.org) Schedule of Performance Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 12-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter. If they were served in quarter 1 do not count them again in quarter 2 Quarter 1: July 1 - September 30 Persons Quarter 2: October 1 - December 31 Persons Quarter 3: January 1 - March 31 Persons Quarter 4: April 1 -June 30 Persons 0 Total unduplicated Santa Ana Residents to be served. Schedule of Invoicing Estimate the amount of grant funds to be requested during the 12-month contract period on a quarterly basis. Quarter 1: July 1 - September 30 N21276 Quarter 2: October 1 - December 31 Quarter 3: January 1 - March 31 Quarter 4: April 1 -June 30 Total Grant Exhibit A Page 1 of 1 City Council 14 — 97 5/4/2021 EXHIBIT 3 EXHIBIT B BUDGET City Council 14 — 98 5/4/2021 EXHIBIT 3 ESG Final Budget Organization Name People for Irvine Community Health DBA 2-1-1 Orange County (2110C) Program Name HMIS Data Collection Expenditures Category ;lill%�� �ltit' 1%f"(ri' Expenses Funded by Other Sources Total Program Budget Total Organizational budget Housing Relocation and Stabilization Services Financial Assistance Rent Deposit iil) 1 1/lll $ Rental Application fees $ Utility Deposit Utility Moving Costs $ Service Assistance Hsg Search & Placement Case Management Mediation Legal /% 1f ll 1/lull r ' $ Credit Repair l i / llll $ Rental Assistance Rent $ - Other Salaries $ 451,826 $ 471,168 $ 1,996,303 Facility & Equipment //f%/ %/% %1� $ 25,762 $ 25,762 $ 104,806 Other Expenses $ 142,839 $ 142,839 $ 212,939 r/ l i 11 1 1(lIl 1 $ Indirect Cost l i�rllrl� ill ���r $ 46,325 $ 48,259 $ 385,952 l 11 rr l (l/ l $ rTot7al ��i�/�� 1I����1�/,�j $ 666,75`2 $ 688,028 $ 2,700,000 LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED (Total Funds for Program must equal Total Program Budget above) Source Amount Santa Ana $ 21,276 City of Anaheim $ 10,935 City of Garden Grove $ 5,242 HUD HMIS Consolidated $ 650,575 Total Funds for the Program $ 688,028 Exhibit B City Council raye 1 01 1 14 — 99 5/4/2021 Finance and Management Services https://www.santa-ana.org/finance Item # 15 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Agreement for Professional Auditing Services AGENDA TITLE: Approve Agreement with CliftonLarsonAllen LLP for Professional Auditing Services in an Aggregate Amount Not to Exceed $759,245, for Up to a Four -Year Term (General and Non -General Fund) RECOMMENDED ACTION Authorize the City Manager to execute an agreement with CliftonLarsonAllen LLP for professional auditing services, for a two-year period beginning with the fiscal year -ending June 30, 2021 and June 30, 2022, with a provision for one two-year renewal for the fiscal year -ending June 30, 2023 and June 30, 2024, for a total aggregate amount not to exceed $759,245, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSION The Finance and Management Services Agency (FMSA) is responsible for overseeing the financial statement audits and examinations, along with the preparation of the City's Comprehensive Annual Financial Report. Annually, the City of Santa Ana utilizes the services of an independent Certified Public Accounting firm to conduct the annual audit of the City's financial statements, and state and federal grant audits (Single Audit). The audits are conducted in accordance with the generally accepted auditing standards and the Government Auditing Standards issued by the Comptroller General of the United States. The standard annual audits include the following: evaluation of internal controls, determination of compliance to legal requirements, application of General Accounting Standards Board (GASB) requirements, and validation that the City's financial statements are presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America. A total of seven accounting firms submitted proposals in response to the Request for Proposal (RFP) No. 21-024 (Exhibit 2); Badawi & Associates, CliftonLarsonAllen LLP, Crowe LLP, Davis Farr LLP, Eide Bailey LLP, Macias, Gini & O'Connell LLP, and The Pun Group. The seven proposals were evaluated and ranked by a Review Committee (Committee) composed of the following: Police Administrative Budget Manager, Community Development Agency Principal Management Analyst, Assistant Director or City Council 15 — 1 5/4/2021 Agreement for Professional Auditing Services May 4, 2021 Page 2 Finance & Management Services Agency, Accounting Manager, and Supervising Accountant. The evaluation was based on the following factors: • Technical qualifications and experience of key members of the engagement team and the firm • Experience with similarly sized governmental agencies in providing the types of services outlined in the RFP • Financial stability and resources to handle all aspects of the engagement as specified in this RFP and provide ongoing support and technical assistance throughout the term of the agreement • Compliance with the requirements of the RFP. • Thoroughness of auditors' proposed scope of work, clearly defined schedule of work to be performed, and ability to meet required completion dates for key parts of the audit • Reasonableness of cost budget Based on the Committee's evaluation and review of references, CliftonLarsonAllen LLP (CLA) was selected as the most qualified firm to conduct the City's annual audit(s) and examinations (Exhibit 3). Thcy demonstrated a high Icvcl of technical knowledge regarding all aspects of the City's engagement, and experience in the field of government accounting and auditing with similarly sized governments. CLA, one of the leading national accounting firms, acquired the City's current auditors, White Nelson Diehl Evans LLP in October 2020. In accordance with the Government Finance Officers Association best practices, CLA will rotate their engagement partner and senior manager to provide a fresh perspective and ensure continued objectivity. CLA is also able to offer the resources of a national firm, including but not limited to, various information technology software programs to streamline the audit process and complimentary training opportunities for City staff throughout the year. Additionally, the firm has proposed to include two Engagement Partners, which will provide the City with additional technical assistance in implementation of complex accounting standards. Their highly experienced audit team will allow the City to have a comprehensive, effective, and efficient audit. CLA will conduct the following audits and reviews of the City: • City Audit (Comprehensive Annual Financial Report), including management and audit committee letters • Single Audit of Federal Grants • Audit of Air Quality Improvement Program • GANN Limit Review • Compliance Review of the City's investment policy City Council 15 — 2 5/4/2021 Agreement for Professional Auditing Services May 4, 2021 Page 3 • U.S. Department of Housing & Urban Development (HUD) Real Estate Assessment Center submission attestation and review of HUD Financial Data Schedule for the Housing Authority • Preparation of the City's State Controller's Report • Measure X (Sales Tax) Compliance Report • Agreed Upon Procedures or other services as requested by the Executive Director of Finance & Management Services Agency The proposed cost for the first year of the new contact is $181,260, which is a 2.4% decrease in annual cost to the City compared to the current year cost of $185,630. The aggregate contract amount reflects annual fee increases of 3% going forward. As such, staff recommends contracting with CLA to perform the annual auditing services for a period of two years and the option to renew for an additional two years. The Request for Proposal (RFP) No. 21-024 was advertised on February 22, 2021 and offers were solicited. A summary of the RFPs and offers received is as follows. • 114 Vendors were notified 18 Vendors downloaded the RFP • 8 Santa Ana vendors notified • 7 Proposals received Outreach Efforts The Purchasing Division advertised this project on the City's online bid management and publication system, which directly notified eight Santa Ana vendors, one of which downloaded the RFP. The vendor based in Santa Ana submitted a proposal for consideration and was invited to interview. However; it did not rank in the top three. Furthermore, staffs outreach efforts also included directly reaching out to audit firms well- known in the local government circles requesting submission of proposals for the above - referenced RFP. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds for these services will be included in the following fiscal years' budget within the accounts noted below along with their respective audit related costs. The allocations are subject to non -substantive changes based on the actual work performed. Fiscal Accounting Unit- I Fund I Accounting Unit, I Amount Y Account # Description Account Description City Council 15 — 3 5/4/2021 Agreement for May 4, 2021 Page 4 Professional Auditing Services FY20-21 01110110-62300 General Fund FIN/MGMT SVS- $30,000 Accounting FY21-22 01110110-62300 General Fund FIN/MGMT SVS- $100,000 Accountin FY21-22 01110130-62300 Gcncral Fund FIN/MGMT SVS- $2,275 Treasury Services FY21-22 03116510-62300 Air Quality Planning -Air Quality Imp $3,475 Improvement FY21-22 14018760-62400 Housing Housing Authority- $24,000 Authority- Voucher Admin Voucher Admin FY21-22 67118021-62400 COSA-RDA COSA RDA Blig Retire $5,000 Obligation Debt Sry Retirement FY21-22 Various-62300 General Fund Various $46,510 and Various Grant Funds FY22-23 01110110-62300 General Fund FIN/MGMT SVS- $100,000 ACCounLin FY22-23 01110130-62300 General Fund FIN/MGMT SVS- $2,343 Treasury Services FY22-23 03116510-62300 Air Quality Planning -Air Quality Imp $3,580 Improvement FY22-23 14018760-62400 Housing Housing Authority- $25,000 Authority- Voucher Admin Voucher Admin FY22-23 67118021-62400 COSA-RDA COSA RDA Blig Retire $5,000 Obligation Debt Sry Retirement FY22-23 Various-62300 General Fund Various $50,922 and Various Grant Funds FY23-24 01110110-62300 General Fund FIN/MGMT SVS- $100,000 Accounting FY23-24 01110130-62300 General Fund FIN/MGMT SVS- $2,413 Treasury Services FY23-24 03116510-62300 Air Quality Planning -Air Quality Imp $3,690 Improvement FY23-24 14018760-62400 Housing Housing Authority- $25,000 Authority- Voucher Admin Voucher Admin City Council 15 — 4 5/4/2021 Agreement for May 4, 2021 Page 5 Professional Auditing Services FY23-24 67118021-62400 COSA-RDA COSA RDA Blig Retire $5,000 Obligation Debt Sry Retirement FY23-24 Various-62300 General Fund Various $56,502 and Various Grant Funds FY24-25 01110110-62300 General Fund FIN/MGMT SVS- $70,000 Accounting FY24-25 01110130-62300 General Fund FIN/MGMT SVS- $2,485 Treasury Services FY24-25 03116510-62300 Air Quality Planning -Air Quality Imp $3,800 Improvement FY24-25 14018760-62400 Housing Housing Authority- $25,000 Authorily- Voucher Admin Voucher Admin FY24-25 67118021-62400 COSA-RDA COSA RDA Blig Retire $5,000 Obligation Debt Sry Retirement FY24-25 Various-62300 General Fund Various $62,250 and Various Grant Funds Total $759,245 EXHIBIT 1. Professional Services Agreement with Clifton LarsonAl len LLP 2. Request for Proposal (RFP) #21-024, Professional Auditing Services 3. Response to RFP - #21-024 — CliftonLarsonAllen LLP Submitted By: Kathryn Downs, FMSA Executive Director Approved By. Kristine Ridge, City Manager City Council 15 — 5 5/4/2021 EXHIBIT 1 AGREEMENT WITH CLIFI'ONLARSONALLEN LLP TO PROVIDE PROFESSIONAL. AUDITING SERVICES THIS AGREEMENT is made and entered into on this 4th day of May, 2021, by and between CliftonLarson.Allen, LLP, a Minnesota limited liability partnership ("Auditor"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITAL$ A. On February 22, 2021, the City issued Request for Proposal No. 21-024 ("RFP"), by which it sought an Auditor to perform Annual Independent Audits of the City's financial statements and records. B. Auditor submitted a timely and responsive proposal that was selected by the City. Auditor represents that it is recognized as a competent and qualified certified public accountant ("CPA"), licensed by the California State Board of Accountancy, and is able and willing to provide the services described in the scope of work that was included in the RFP, which shall be incorporated by reference as though attached hereto. C. In undertaking the performance of this Agreement, Auditor represents that it is knowledgeable in its field and that any services performed by Auditor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES AUDITOR shall perform its Annual Independent Audit for the two fiscal years ending June 30, 2021 through June 30, 2022 fiscal years, as detailed in Exhibit A, and as set forth in City's RFP, and Auditor'-s proposal, incorporated by reference as though fully attached hereto. Said services shall be performed in accordance with the process set forth in Auditor's Proposal. The Executive Director of Finance and Management for the City can request that Auditor provide other auditing services upon request in lieu of the two agreed upon procedure reviews identified in Exhibit B. 2. REYRESENi'ATIVES For ptuposes of implementing this Agreement, the representative of City shall be the Executive Director of the Finance and Management Services Agency, or her or his designated representative, and the representative of the Auditor shall be Daphnie Munoz, CPA Engagement Partner. Except as may be otherwise stated herein, such representatives shall have the authority to act on behalf of their respective parties in carrying out the terms of this Agreement. Page I of 9 City Council 15 — 6 5/4/2021 3. DELIVERY OF WORK PRODUCT... OWNERSHIP Auditor warrants and represents that it has the absolute right to enter into and perform this Agreement and will perform its obligations hereunder in accordance with standards and practices prevailing in the industry. Auditor's contribution to the Project, including works to be produced by Auditor hereunder, will not infringe or misappropriate the proprietary or personal rights of any third person or party. Auditor shall deliver to City any work product which results from the services provided. Said work product shall be submitted in hard copy and produced in a form compatible with City's information systems, as agreed between the Project Manager and Auditor. In regard to all material produced as a deliverable under this Agreement, including but not limited to records, papers, drawings, specifications, programs, systems and other materials prepared by Auditor, Auditor agrees, for itself and its affected officers, employees, agents, contractor,,;, and volunteer workers, that (a) other such material shall be the property of the City, and may not be copyrighted without prior review from the City, and ( b) the authors of all such material, whether copyrighted or not, award to the City, and to its officers, agents and employees acting within the scope of their official duties, as a condition of payment to the Auditor, a royalty -free, nonexclusive, irrevocable license throughout the world for governmental purposes to disclose, publish, translate, reproduce, and use such materials. 4_ COMPENSATION a. City agrees to pay, and Auditor agrees to accept as total payment for its services for City, the rates and charges identified in Exhibit B. The total amount to be expended under this Agreement shall not exceed $759,245 during the term of this Agreement, including tiny extension periods. b. Payments to Auditor shall be made within forty-five (45) days after receipt by City of invoices from Auditor, which shall be rendered not more often than monthly. Special examinations, surveys, or detailed reports of any nature outside the scope of this Agreement shall be billed separately by Auditor and must be specifically authorized in writing by City in advance of such additional services proposed to be provided. Payment need not be made for work which fails to meet the standards of performance set forth in the ltecitals which may reasonably be expected by City. 5. TERM The term of this Agreement shall be for a period of two (2) consecutive years, beginning with the fiscal year ending June 30, 2021 and .June 30, 2022. CITY shall retain an option in its sole discretion to extend auditing services for one additional two -year period, exercisable by the City Manager, for the fiscal year ending June 30, 2023 and June 30, 2024, subject to nonsubstantive changes approved by the City Manager and City Attorney. Page 2 of 9 City Council 15 — 7 5/4/2021 6. INDEPENDENT CONTRACTOR Auditor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional mariner in which Auditor performs the services which are the subject matter of this Agreement; however, the services to be provided by Auditor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Auditor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. INSURANCE Prior to undertaking performance of work under this Agreement, Auditor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial (Xeneral Liability Insurance. Auditor shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Auditor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurrnrcxe shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, agents, and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence, Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation Insurance. In accordance with the provisions of Section 3700 0£ the Labor Code, Auditor, if Auditor has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Auditor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Auditor is or employs a licensed professional such as an architect or engineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. C. The following requirements apply to the insurance to be provided by Auditor pursuant to this section: 3of9 City Council 15 — 8 5/4/2021 i. Auditor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. ii. Certificates of insurance shall be fimiished to the City upon execution of this Agreement and shall be approved by the City. iii. Certificates and policies shall state that the policies shall not be. canceled or reduced in coverage or changed .in any other material aspect without thirty (30) days prior written notice to the City. iv. 'Where the tunounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this Agreement, the amounts provided by the certificates of insurance shall be incorporated by reference into the Agreement. V. Auditor shall supply City with a fully executed additional insured endorsement. f If Auditor fails or refuses to produce or maintain the insurance required by this section or fails or refuges to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Auditor's right to be paid for its time and materials expended prior to notification of termination. Auditor waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. 8. INDEMNIFICATION Auditor agrees to defend, and shall indemnify and hold harmless the City, and its officers and employees fi-om liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Auditor, its subcontractors, agents, employees, or other persons actiug on its behalf which relates to the services described in section I of this Agreement; and (2) from any clai n that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of any breach of the terns of this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the negligent acts referred to in this Section or by reason of the breach of the terms of this .Agreement. The Auditor further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal procceding. Notwithstanding the foregoing, to the extent Auditor's services are subject to Civil Code Section 2782.8, the above indemnity and defense obligation shall be Limited to the extent provided by Civil Code Section 2782.8, and to claims that arise out of; pertain to, or relate to the negligence, reeldessness, or willful misconduct of the Auditor. 4of9 City Council 15 — 9 5/4/2021 4. CONFIDENTIALITY All information gained by Auditor in performance of this Agreement shall be considered confidential and shall not be released by Auditor without City's prior written authorization excepting that information which is a public record and subject to disclosure pursuant to the California Public Records Act, government Code Section 6250 et seq. Auditor, its officers, employees, agents, or subcontractors, shall 'not voluntarily provide declarations, letters of support, testimony at depositions, response to intcrrogatories or other information concerning the project or cooperate in any way with a party who may be adverse to City or whom Auditor reasonably should know may be adverse in any subsequent litigation. Auditor shall incur no liability under this Agreement for materials submitted by it, which are later released by City, its officers, employees, or agents. Auditor shall also incur no liability for statements made by it at any public meeting, or for any document released by it for which prior written City authorization was obtained. If Auditor or any of its officers, employees, consultants, or subcontractors does voluntarily provide information in violation of this Agreement, City has the right to reimbursement and indemnity from Auditor for any damages caused by Auditor's conduct -- including attorney's fees. Auditor shall promptly notify City sbould Auditor, its officers, employees, agents or subcontractors be served with any Summons, Complaint, Subpoena, Notice of Deposition, Request for Documents, Interrogatories, Request for Admissions or other discovery requests from any patty regarding this agreement and the work performed hereunder. City retains the right, but not the obligation, to represent Auditor and /or to be present at any deposition, hearing, or similar proceeding. Auditor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery request, provided by Auditor. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. City warrants that Auditor will have fully met the requirements of this provision by obtaining City's written approval prior to providing documents, testimony, or declarations;, Consulting with City before responding to a Subpoena or court order; in the case of depositions upon providing Notice to City of same; or providing City opportunity to review discovery responses prior submission. For purposes of this section, a written authorization from City shall include a "faxed" letter 10. CONFLICT OF INTEREST CLAUSE AUDITOR covenants that neither it nor any ofFiccr or principal of their Ern have any interests, nor shall they acquire any interest, directly or indirectly which will conflict in any manner or degree with the performance of their services hereunder. AUDITOR further covenants that in the performance of this Agreement, no person having such interest shall be employed by thorn as an officer, employee, agent, or subcontractor. Page 5 of 9 City Council 15 - 10 5/4/2021 11. NON-DISCRIMINATION Auditor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Auditor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 12. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and . Auditor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Auditor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Auditor or the City. Each party to tlus Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. 13. ASSIGNMENT Inasmuch &q this Agreement is intended to secure the specialized services of Auditor, Auditor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Auditors retained by City. 14. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Auditor shall be entitled to receive and the City shall pay Auditor compensation for all services performed by Auditor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Auditor to deliver to the City all work prodtu:t(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Auditor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. Page 6 of 9 City Council 15 — 11 5/4/2021 15. 'WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy_ No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 16. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of Califomia and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. ,Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 17. PROFESSIONAL LICENSES Auditor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Auditor shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreerent. 18. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind thew respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's foes, for any injuries or damages to City in the event that such authority or power is not, in tact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 19. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the mariner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) page 7 of 9 City Council 15 — 12 5/4/2021 P.U. Box 1988 Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Executive Director, Finance and Management Services Agency City of Santa Ana 20 Civic Center Plaza (M-17) P.O. Box 1988 Santa Ana, California 92702 Fax:714-647-5414 To Auditor: CliftonlarsonAllery LLP 2875 Michelle Drive, Ste. 300 Irvine, CA 92606 Fax: 714-978-7893 A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. I£ sent by mail, communication shall be effective or decmed to have been given three (3) days alter it has been deposited in the United States mail, duty registered or certified, with postage prepaid, and addressed as set forth above. If sent by fare, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time Crames, weekends, federal, state, County or City holidays shall be excluded. [signature page to follow] 8 ol'9 City Council 15 — 13 5/4/2021 IN WITNESS WHEREOF, the parties IIeI'etO have executed this Agreement the date and year first above written. ATTEST: Daisy Gomez Clerk of the C.ptlneH APPROVED AS TO FORM: SONIA IL CARVALHO City 71 R3 f1 V Ryan O. 1 odg Assistan amity Attorney RECOMMENDED FOR APPROVAL: Kathryn Downs, CPA Executive Director Finance and Management Services Agency CITY OF SANTA ANA Kristine Ridge City Manager AI1ll1TOR: -- Ry: Dcpl rl,e' Mvrlo? Title: 'hC I n a P n I Page 9 of'9 City Council 15 — 14 5/4/2021 Methodology. Our audit is performed based on a risk-bosed approach. We conduct our audits under the concept of "understanding the entity." This concept is based fundamentally on the fact that the City is unique. By understanding the City, we gain the necessary perspective for performing an effective audit. Our audit approach places particular emphasis on the planning phase to determine maximum efficiency and effectiveness. When performing an audit, we are sensitive and understanding of the fact that we report to those charged with governance. We maintain objectivity and independence in order to be able to issue our audit opinions. We will act within our philosophy of total client service, maintain the professional relationship refined with management, and fulfill our responsibilities with the utmost professionalism. Yearlong support: We encourage your staff to take advantage of our accessibility throughout the year for questions that may arise. Our people, working with you and your staff, can provide proactive advice on new accounting or GAAP pronouncements and their potential impact; help with immediate problems including answers to brief routine questions, and share insights and best practices to assist you in planning for your future success. The assessment phase of an engagement starts when an engagement letter is issued. Upon notice of contract award, we will prepare a contract and engagement letter. We will communicate our plan to start the work and to discuss the audit process. These discussions are intended to accomplish the following: • Identify Icey management and staff involved in the audit • Identify primary audit liaisons • Introduce our audit team and identify key CLA contact personnel • Discuss the timetable • Explain our means and ways of communication • Inquire about any issues, which we may need to be aware of • Discuss logistics and administrative matters • Complete a preliminary assessment of risk based on a review of prior year workpapers and knowledge of your organization Through all phases of the audit, we think it is important to have regular communications with the City's management to discuss the status of the engagement. We will provide timely communication of any critical issues, concerns, and potential findings with the person primarily responsible for the area and our audit liaisons. We will be available to meet with key management prior to issuance of the final audit report. This meeting will highlight some of the results of the audit, any outstanding items, and reporting and issuing processes. The main objective of the planning phase is to identify significant areas and design efficient audit procedures. We will accomplish our planning by following the methodology below: Conduct an entrance meeting with the City's personnel to mutually agree on an outline of responsibilities and timeframes. The agenda will include but not be limited to the following: - Establish audit approach and timing schedule - Assistance to be provided by the City's personnel - Application of generally accepted accounting principles Initial audit concerns Concerns of the City's management Establishment of report parameters and timetables - Progress reporting process Establish principal contacts • Gain an understanding of the operations of the City, including any changes in its organization, management style, and internal and external factors influencing the operating environment. We will utilize reference materials such as the budget and related materials, organizational charts, manuals and programs, financial, and other management information systems Identify significant accounts and accounting applications, critical audit areas, significant provisions of laws and regulations, and relevant controls over operations • Determine the likelihood of effective Information Systems (IS) - related controls Perform a preliminary overall risk assessment Confirm protocol for meeting with and requesting information from relevant staff • Establish a timetable for the fieldwork phase of the audit Determine a protocol for using TeamMate Analytics and Expert Analyzer (Tear -Mate), our data extraction and analysis software, to facilitate timely receipt and analysis of reports from management • Compile an initial comprehensive list of items to be prepared by the City, and establish mutually agreed upon deadlines We will document our planning through preparation of the following: • Entity Profile. 'I his profile will help us gain an understanding of the City's activities, organizational structure, services, management, key employees, and regulatory requirements • Preliminary Analytical Procedures. These procedures will assist in planning the nature, timing and extent of auditing procedures that will be used to obtain evidential matter. "I "hey will focus on enhancing our understanding of the financial results, and will be used to identify any significant transactions and events that have occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to the audit • General Risk Analysis. This will contain our overall audit plan, including materiality calculations, fraud risk assessments, overall audit risk assessments, effects of our IS assessment, timing, staffing, client assistance, a listing of significant provisions of laws and regulations and other key planning considerations • Account Risk Analysis. This document will contain the audit plan for the financial statements, including risk assessment and the extent and nature of testing by assertion Prepared by Client Listing. This document will contain a listing of schedules and reports to be prepared by the City's personnel with due dates for each item One of the key elements in the planning of this audit engagement will be the heavy involvement of principals and managers. We will clearly communicate any issues in a timely manner and will be in constant contact with the City as to what we are finding and where we expect it will lead. We will develop our audit programs during this phase. Utilizing the information, we have gathered, and the risks identified, we will produce an audit program specifically tailored to the City. This program will detail by major section the nature and types of tests to be performed. We view our programs as living documents, subject to change as conditions warrant. It, immma I��P�l During the systems evaluation phase, we will gain an understanding of the internal control structure of the City for financial accounting and relevant operations. Next, we will identify control objectives for each type of control that is material to the financial statements, and then identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. Finally, we will determine the nature, timing, and extent of our control testing and perform tests of controls. This phase of the audit will include testing of certain key internal controls: • Electronic data, including general and application controls reviews and various user controls Financial reporting and compliance with laws and regulations We will test controls over certain key cycles. One audit efficiency initiative is to rely heavily on internal controls when appropriate, and to creatively look at internal control testing to make it as efficient as possible. This means not routinely performing detailed tests of transactions using large samples. We first: seek to identify key controls, and then identify possible testing through alternative methods, such as observation, interviews, and re performance. These tests serve not only to gather evidence about the existence and effectiveness of internal control for purposes of assessing control risk, but also to gather evidence about the reasonableness of an account balance. We will also develop our internal control tests to assess the compliance with certain provisions of laws, regulations, contracts, and grants for which noncompliance could have a direct and material effect on the determination of financial statement amounts. Our use of multi -purpose tests allows us to provide a more efficient audit without sacrificing quality. Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met: • Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets • Assets are safeguarded against loss from unauthorized acquisition, use, or disposition Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements We will finalize our audit programs during this phase. We will also provide an updated Prepared by Client Listing based on our test results and our anticipated substantive testing. During the internal control phase, we will also perform a review of general and application Information Systems (IS) controls for the applications that are significant to financial statements to conclude whether IS general controls are properly designed and operating effectively, and consider application controls as part of the internal control assessment in the financial statement audit. Our strategy for the IS review of the applications will involve reviewing all the general control activities, including the computerized and manual processes. We will determine the scope of work by applying the concepts of materiality and risk assessment to effectively reduce examination inefficiencies. When planning this examination, we will gain an understanding of the City's operations by reviewing its current controls and control objectives as documented and will also review prior years' audit work and the status of corrective actions. Based on our preliminary review, we will perform an initial risk assessment of each critical element in each general control category, as well as an overall assessment of each control category. We will then proceed to assess the significant computer -related controls. For IS -related controls that we deem to be ineffectively designed or not operating as intended, we will gather sufficient evidence to support appropriate findings and will provide recommendations to improve internal controls. For those IS controls that we deem to be effectively designed, we will perform testing to determine if they are operating as intended through a combination of procedures, including observation, inquiry, inspection, and re -performance. The extent of our substantive testing will be based on results of our internal control tests. It has been our experience that governmental entities, like the City, often have a system of internal controls that, with appropriately designed tests and correlation to account balances, can be used to limit the extent of account balance substantiation testing. Audit sampling will be used only in those situations where it is the most effective method of testing. Before deciding to sample, we will consider all possible approaches and audit techniques. Items where, in our judgment, acceptance of some sampling risk is not justified will be examined 100 percent. These may include unusual items or items for which potential misstatements could individually equal or exceed tolerable error. After identifying individually significant or unusual items, we will decide on the audit approach for the remaining balance of items by considering tolerable error and audit risk. This may include (1) testing a sample of the remaining balance; (2) lowering the previously determined threshold for individually significant items to increase the percent of coverage of the account balance; or (3) applying analytical procedures to the remaining balance. When we elect to sample balances, we will use IOTA to efficiently control and select our samples. Our work papers during this phase will clearly document our work as outlined in our audit programs. We will also provide the City with status reports during the audit fieldwork. As in all phases of the audit, we will be in communication with the City to determine that all identified issues are resolved in a timely manner. We will also hold a final exit conference with the City to summarize the results of our fieldwork and review significant findings. Reports to management will include oral and/or written reports regarding: • Independent auditors' report • Management letter Written communication to those charged with governance, which includes the following areas: - Our responsibility under auditing standards generally accepted in the United States of America Changes in significant accounting policies or their application Unusual transactions - Management judgments and accounting estimates Significant audit adjustments Other information in documents containing the audited financial statements Disagreements with the City The City's consultations with other accountants Major issues discussed with management prior to retention Difficulties encountered in performing the audit Fraud or illegal acts Once the final review of working papers and financial statements are completed — a process that actually starts while the fieldwork is in process — our opinion, the financial statements, and management letter will be issued. The City will be provided a draft of any comments that we propose to include in the management letter, enabling you to review the comments for accuracy prior to final release. Any items that come to our attention that are not what we consider major items may be discussed verbally with management and not included in the management letter. Our management letter will include items noted during our analysis of your operations. We will also make a formal presentation of the results of the audit to those charged with governance of the City, if requested. Sample size and statistical sampling We follow the guidance of AU-C Section 530, Audit Sampling, in using statistical and nonstatistical approach. We use quality control material in all our audit engagements. These AU-C Section 530 , "Audit Sampling" forms guide our staff through a logical process of assessing inherent risk, control risk, and combined audit risk, followed by an assessment of appropriate sample size for testing. Sample sizes will vary depending on the nature of the testing (compliance versus substantive) and the size of the population being sampled. Sampling techniques are utilized in compliance and internal control testing, as well as substantive testing of certain asset and liability account balances. Sample sizes used for internal control testing depend on a number of factors, namely the number of expected or actual control deviations, size of population, and level of control assurance anticipated. Sample sizes can range from 20 to 90 possible selections. To illustrate, if no internal control deviations are anticipated and the frequency of the population (i.e., the number of times the control is performed in a given year) is less than 100, then we will test 20 transactions in order to obtain moderate control assurance. If 2 internal control deviations are anticipated, and the frequency of the population is greater than 200, then we will test 90 transactions in order to obtain low control assurance We are usually able to cover a substantial portion of the compliance and controls testing with one sample, resulting in a very efficient approach. Daia analylics In addition to standard auditing methodology, a distinguishing aspect of CLA's audit services incorporates the power of data analytics to multiply the value of the analyses and the results we produce for clients. CLA's data methodology is a six -phase, systematic approach to examining an organization's known risks and identifying unknown risks. Successful data analysis is a dynamic process that continuously evolves throughout the duration of an engagement and requires collaboration of the engagement team. Data analytics are utilized throughout our audit process, our A:'isk."ssessment, Cato ✓analytics and Review ("RADAR") is a specific application of general ledger data analytics that has been implemented on all audit engagements. RADAR is an innovative approach created and used only by CLA that aims to improve and replace traditional preliminary analytics that were being performed. The phases in our data analytics process are as follows: 1. Planning In the planning stage of the engagement, the use of data analysis is considered and discussed to determine that analytics are directed and focused on accomplishing objectives within the risk assessment. Areas of focus, such as journal entries, cash disbursements, inventory, and accounts receivable are common. 2. Expectations We consider the risks facing our client and design analytics to address these risks. Through preliminary discussions with management and governance, we develop and document expectations of financial transactions and results forth e year. These expectations will assist in identifying anomalies and significant audit areas in order to appropriately assess risk. 3. Data Acquisition Sufficient planning, a strong initial risk assessment, and an adequate understanding of your systems will serve as the foundation necessary to prepare our draft data request list. We will initially request information in written format and conduct follow-up conversations helping CLA practitioners our staff share a mutual understanding of the type of data requested and the format required. If there are going to be any challenges/obstacles related to obtaining data, or obtaining data in the preferred format, they will generally be discovered at this point. 4. Technical Data Analysis n9�,%k k Technical analysis of the data requires the skillful blend of knowledge and technical �16'�F capability. Meaningful technical analysis provides the engagement team with a ��%lV�j'� better understanding of the organization. The additional clarity assists the i d Inniyly Uulu engagement team to better assess what is "normal' and, in turn, be better suited to n,mYy spot anomalies, red -flags and other indications of risk. Analytics generally fall into five categories, each looking into the data set in a different way and deployed with a 1%W different purpose. 5. Interpret Results and Subsequent Risk Assessment Trends and anomalies will be identified through the performance of the above referenced analytics. Comments regarding the interpretation of those trends and anomalies will be captured. When trends are identified they are reconciled against expectations. For anomalies identified, the approach to further audit procedures will be considered. 6. Response and Document The last process is to capture responses and determine that our procedures are properly documented. Abstracts, charts or summaries of both trends and anomalies are retained in the audit documentation to support our identification of risks. Our analysis can be tailored and customized to help analyze an array of information, including client specific and proprietary data. Key benefits of data analytics include: Built-in audit functionality including powerful, audit specific commands and a self -documenting audit trail • 1,00 percent data coverage, which means that certain audit procedures can be performed on entire populations, and notjust samples • Unlimited data access allows us to access and analyze data from virtually any computing environment • Eliminates the need to extrapolate information from errors (a common effort when manually auditing data) and allows for more precise conclusions The below figure illustrates typical data analytics scenarios. Data Analytics. At the end of a series of pre -determined onalytics (often retrieved from multiple proprietary accounting systems) that are customized to the project at hand, we identify anomalies and potential errors in transactions. In every case, we review what appears to be inappropriate activity, including supporting documentation evidencing the transactions. procedures used to understand internal processes and controls We understand with a change in the engagement principal and a different approach with CLA would require a new to develop an understanding of the City and its internal control and operating structure. We also strive to develop our understanding in the least intrusive manner possible, while still maintaining our professional responsibilities. We would utilize a combination of internal control forms and interviews with key accounting personnel to gain and document our understanding of the City. We will also use as a baseline any existing internal control processes, policies, organizational charts, etc. the City may have already documented. Tests of design and operating effectiveness would then be performed to confirm our understanding. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a framework for internal control systems. Under the COSO framework, internal control is a process to provide reasonable assurance that those internal objectives, including effectiveness and COSO Internal Control. Integrated Framework efficiency of business operations, reliability of financial reporting, and compliance with applicable laws and regulations, will be met. Our audit approach is designed to evaluate and test the departmental internal controls in accordance with COSO concepts. Our procedures include a review of the overall control environment, determination of the internal controls which are determined to be direct and material to the federal program under review, determination of the adequacy of those procedures, and testing of the procedures to determine if they are functioning as designed. During the planning and internal control phases of our audit, we will develop our understanding of the City's business operations and internal control structure for financial accounting and relevant operations through observation, discussion, and inquiries with management and appropriate personnel. During this phase of the audit, we will review budgets and related materials, organization charts, accounting and purchase manuals, and other Systems documentation that may be available. Once we understand your operations, we will then identify control objectives for each type of control that is material to the financial statements. The next step will be to identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. We will then determine the nature, timing, and extent of our control testing, and perform tests of controls. This phase of the audit will include extensive testing of controls over transactions, financial reporting, and compliance with laws and regulations. Whenever possible, we will use dual-purpose tests to reduce the need to select multiple samples for internal control and compliance testing. We will be as efficient as possible, thereby reducing the disruption to your operations while achieving our audit objectives. Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met: • Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets • Assets are safeguarded against loss from unauthorized acquisition, use, or disposition • Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial staterents Our workpapers during this phase will clearly document our work through the preparation of the following for each significant transaction cycle or accounting application: • Audit program • Cycle memo and supporting documentation • Account risk analysis (ARA) • Specific control evaluation (SCE) Approach to be taken in determining laws and regulations that will be subject to audit test work We will obtain an understanding of the laws and regulations that have an impact on the City's operations by reviewing council minutes to identify any ordinances or resolutions that might have an impact to operations and reporting by the City, as well as interview key personnel and management of the City. Additionally, the staff assigned to the engagement attend regular trainings and are well versed in upcoming legislation, federal and state laws (i.e. Uniform Grant Guidance) and proactively discuss these upcoming changes with our clients. We will also review current operations, contracts and IGA's that may have an impact on current operations tdetrfification of anticipated potential audit problems In situations where authoritative guidance on a particular transaction or accounting issue is unclear or subject to interpretation, our approach is to proactively meet with management to discuss the issue and reach a conclusion that is hopefully agreed upon by both parties. We do not have specific "firm policies" that dictate our conclusions to be reached on all complex accounting issues. Rather, each issue must be evaluated independently by our engagement team. As discussed above, we will not only meet internally, but also facilitate discussion with the City's management team in order to obtain a mutual understanding of the particular accounting issue, determine the applicable authoritative guidance that most closely relates to the issue, and strive to reach an approach agreed upon by both parties. If there still remains any ambiguity or disagreement, we can explore other resources that could possibly assist, such as subject matter professionals within the Government Accounting Standards Board staff or the Government Finance Officers Association (GFOA) or perhaps other municipalities who may have dealt with similar issues. Use of technology in the L�Lldit We're reimagining the audit process through technology to elevate your experience! ygny�I Ililly�il ity�'�yyy IiIIII I�IIIII I�t uII IIIIi11IiPIl III ��IIp IIV�lu l� III II IIVIIIpI liliili lllllllll "III'IIII�iI�II�IIIVllp killl'Ilrl�l� lI� IIIIIIII'IIIIIII IpIIIIIiIY�'I ul pl�ilTil�ill??�I II��II?illlllilll lllllllll Ii III IIIIIIII"Ill,lll ��,I j�+II�iII Ilyuj li4Ji i luil�il Iilliililllllllll Pl liiili 11111 ill ll111111 �11�illi IIIIIF�II illl lil�fill^IF�RI Id I��ilyllllii�r�I� �i I I II IIII III II INII: I �I,��I ill.'I�I�III I 'I IIIII III iIIII •�r,�l III IiI�I�III IIIiII�I IyI IpIIIpI III IwwI Ipy }}�y III IIIIIi III III IIIIIIilillll III II III��i I� � III"Il it llll p��l!IIIIu IIIiI�Illl 111 �ilI IIIII�IiI VIIIrIITiIIII!)II�I'll'l IiPiIIII IIIIIiIPIuI Ijdl Assurance Information Exchange (AIE) —To make working with CLA a seamless experience, our team utilizes a proprietary, secure web -based application to request and obtain documents necessary to complete client engagements. This application allows CLA and our clients to view a live client assistance letter client, which provides detailed information, including due dates for all the open items CLA is requesting. Additionally, clients can attach electronic files and add commentary related to the document requests directly on the application. Follow the fink to view a brief tutorial of the As',U-JW-0 information ExChai�e. MicrosoftO Teams -- Our services approach focuses on impactful interactions. We've said goodbye to the days of setting up camp in our clients' conference rooms for weeks on end. We know our clients have organizations to run, so our interactions have purpose. To assist with communications when we are not onsite, we utilize tools such as Microsoft "Teams, which allow for two-way screen sharing and video. We've found this helps minimize disruptions in our clients' environments while continuing to effectively communication with each other. TeamMate Analytics and Expert Analyzer (TeamMate) —To analyze and understand large data sets, we use TeamMate Analytics and Expert Analyzer. We customize the application by industry in order to perform c.anR,on:a the most applicable procedures. This allows us to go beyond sampling, , and instead analyze the entire general ledger for targeted anomalies. Far beyond the audit application, our six -phase process of Risk Assessment, Data Analytics and Review (RADAR) can also provide actionable insights to help you understand your entity better. w �,��(ulptrGbn i iDAtS,AnPIy91P ' Commitment to Communication with Management As you will see, we are committed to ongoing communication throughout the engagement. Continual communication starts when an engagement letter is issued, continues until the completion or closeout of an engagement, and throughout the remainder of the year. We believe effective communication is critical to a successful engagement. This communication includes the exchange of ideas and advice as changes are considered or implemented by the entity or the accounting profession. During the engagement we will hold regular status meetings with the City to enhance day-to-day operations, to communicate results, and to ensure that any issues are commonly understood and addressed. The objectives of tracking and formally reporting the engagement status are to: • Provide a consistent technique for monitoring progress against plan • Identify any issues quickly to allow for timely corrective action • Provide an objective rather than subjective evaluation of status • Provide timely information on a regular basis • Assist with obtaining buy in of any audit recommendations on a timely basis Working remotely under special circumstances CLA exists to create opportunities for our clients, our people, and our communities. For several years now we have fostered a remote culture throughout the firm understanding that flexibility to work remotely enables us to better serve our clients under a variety of circumstances. In fact, we had already implemented a number of tools, before the Covid-19 pandemic developed, such as Assurance Information Exchange (AIE) and MicrosoftQO Teams, which we utilize to provide seamless service to our clients. As we continue to navigate these uncertain times, CLA will work with the District to determine the correct balance of in -person and remote field work to best meet the District's needs. If onsite work is performed, a senior supervising auditor will be on site for 100% of the time when procedures are performed, and the principals will be available throughout field work. Whether we are working with the District remotely or in person, CLA is committed to performing your audit services and meeting your deadlines. r. `,r.-�i'rrtr�r��:,aiJM, nil-ileliIia', ;II-)d cornf)kd:ion da[(�:, An important distinction between CLA and other firms is the amount of principal and manager involvement in the engagement. Because our principals and managers are directly involved in the engagement during fieldwork, we can proactively identify significant issues immediately and resolve them with management so that the engagement is essentially complete when fieldwork ends. We expect that the majority of our audit hours will be concentrated in the high -risk audit areas. Our approach is not to overwork every account with extensive substantive testing. While substantive testing remains part of the process, we think out -of -the -box analytically, identify relationships and truly learn about your operations. Assuming that the interim fieldwork commences in late May or early June and final fieldwork commencing in October, the following is an abbreviated suggested timeline and milestones to meet the deadlines listed in the RFP: Entrance conference Principal / Manager May 31 Preliminary risk assessment and initial audit plan Principals / Manager June 30 SEFA review & major program determination Manager / Senior December 1.5 Understanding of the City's internal controls Manager / Senior June 30 Per -form walkthroughs and internal control testing Senior / Staff June 30 Evaluate information system controls Manager / Senior June 30 Final risk assessment and comprehensive audit plan Principal / Manager June 30 Exit Conference to discuss interim fieldwork results Principal/Manager June 30 Single Audit: major program internal control and Senior/Staff January3l compliance testing Financial Statement substantive testing and analytical Senior/Staff Novemberl.5 procedures Exit Conference to discuss final fieldwork results Principal / Manages November 15 Drafting reports (, Management Letter, Single Audit, other Manager/Senior November 30 deliverables) and required communications Detailed review of work Principal / Manager November 15 Communications with management Principal / Manager November 15 Finalization of reports and required communications Principal /Manager December 10 Reports to be issued and due dates We make a cornmitment to issue the reports by the due dates specified below with interim fieldwork in May/June and final fieldwork completed by November15 for the June 30 year end audits Independent Auditor's Report on City of Santa Ana Financial Audit n/a December 10 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and other matters based on an Audit of November 30 December 10 Financial Statements Performed in Accordance with Government Auditing Standards Communication to those in charge of governance (Audit Committee November 30 December 10 Letter) Single Audit Report: Independent Auditors' Report on compliance for each major program and internal control over compliance required by Uniform Guidance, February 15 February 28 formerly OMB Circular A-133 Air Quality Improvement Fund (AQMD) November 30 December 10 GANN Limit computation November 30 December 10 Investment Policy Compliance Review November 30 December 10 U.S. Department of Housing of Urban Development (HUD) Real Estate Assessment Center (REAL) submission attestation and review of HUD n/a February 28 Financial Data Schedule (FDS) for the Housing Authority Annual State Controller's Report n/a January 31 Measure X (Sales Tax) Compliance Report November 30 December 10 Agreed -Upon -Procedures Report TBD TBD d. t ,fill„'.fltiulio n of hour" Proposed staffing plan and segmentation of the audit hours by principal and staff level are as follows: City audit, including management and audit committee letters 50 100 610 10 770 Single Audit of Federal Grants 12 40 220 3 275 AQMD Audit of the Air Quality Improvement Fund 1 4 24 -- 29 GANN limit Review -- 1 8 9 Compliance Review of the City's Investment Policy 2 12 16 30 Preparation of the Santa Ana Housing Authority's Financial Data Schedule 2 4 6 MeasureX-Agreed-Upon Procedures 4 8 36 2 50 Preparation of the City's State Controllers Report -- 8 40 -- 48 Total Hours 71 177 954 15 1,217 Two Agreed -Upon Procedures Reviews, Annually (1) 8 18 108 4 138 (.1) The hours for agreed -upon procedures are estimated and subject to negotiation once the scope of each agree -upon procedures ore determined. Proposed staffing plan and segmentation of audit hours by principal and staff level by phases are as follows City audit and related reports Phases 1 and 2 Phase 3 Phase 4 Phase 5 Measure X Single Audit Total Hours 3 8 8 1 20 12 24 130 166 12 32 440 -- 484 28 65 120 9 222 4 8 36 2 50 12 40 220 3 275 71 177 954 15 1,217 a. Co 4 ktr' aB<tia)wu1 :q r n'I.rrll.1 y(,;�r City of Santa Ana EXHIBIT B SCHEDULE OF PROFESSIONAL FEES AND EXPENSES The compensation for financial auditing and report preparation services to be provided in each fiscal year, in accordance with this agreement, is shown below: Option Years Description of Services FY 2020.21 FY 2021-22 FY 2022-23 FY 2023-2.4 City audit, including management and audit committee letters ........ _ ....... .._....... .... ............_.._......__. Single Audit of Federal Grants 5100,850 38,480 $1.04,025 39,635 $107,295 ..... 40,82S $110,6615 _ .......___ 42,050 AQMD Audit of the Air Quality Improvement Fund 3,47S 3,S80 3,690 3,800 GANN Limit Review 895 920 950 980 Compliance Review of the city's Investment Policy 4,550 4,685 4,82S 4,970 ........._ _ _...... ______.. ____._. ...._..__._ ....__.- _.. Preparation of the Santa Ana Housing Authority's Financial Data Schedule 1,3S0 1,390 ...... 1,430 .._.__ 7.,475 Measure X-Agreed-Upon Procedures 1,020 r,230 1,445 7,670 _... ........ ......._....................... ....... ..... Preparation of the Clty's State Controller's Report ............. _...... _........... _ _ _..... ___ .... ............. Two Agreed -Upon Procedures Reviews, Annually (1) ..__ 5,600 19,040 ._-- 5,770 19,610 5,945 20,200 ....._ 6,120 20,805 _._....................-_...._..__.-_. Maximum Not -to -Exceed Total Fee 5181,260 $186,845 $192,605 $198,535 (1)The hours and fees for the agreed. upon procedures are estimated and subjec t to negotiation once the scope of each agreed - upon procedures are determined. The City, during the term of this agreement, may request that Consultant provide special services in accordance with the provisions of this agreement. If Consultant agrees to perform the special services, the Consultant's hourly fees to perform these services for the term of the agreement are as follows unless a lesser fee is agreed to in a separate agreement between the City and Consultant. Option Years Title FY 2020-21 FY 2021-22 FY 2022-23 FY 2023.24 Partners S27S $283 $292 $300 ............ ..__ Managers .......... ..... .. .... 200 _.... ..._ 206 23.2 219 ......_____ ........_ .._........._...__ .... ^' Supervisory Staff 3.50 155 1S9 ....... 164 Staff Auditor 100 103 106 3.09 ... Clerical __..-..._.__..- ---.-- .-_. .. ......... 60 ._ _ 62 ....-_. 64 66 ..... ....... .... _ ..-_ ...... Exoenses All exoenses incurred by the Consultant in nerformine the services in accordance with this apnapm Pnt are included in the above annual fee quotes. These expenses include, but are not limited to: meals and lodging, transportation, communications, report preparation, word processing, and printing, and postage. THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. our fees are based on the timely delivery of services provided, the experience of personnel assigned to the engagement, and our commitment to meeting your deadlines. CLA understands the importance of providing our clients with value-added strategies. We propose to provide routine, proactive quarterly meetings . as part of our fee — that will allow us to review and discuss with you The impact of new accounting issues, as well as any other business issues you are facing and how they should be handled. This level and frequency of interaction will no doubt enable CLA to help you tackle challenges as they come up and take full advantage of every opportunity that presents itself. We have found over the years that our clients don't like fee surprises. Neither do we. We commit to you, as we do all of our clients, that: • We will be available for brief routine questions at no additional charge, a welcome investment in an on- going relationship. • Like most firms, we are investing heavily in technology to enhance the client experience, protect our data environment, and deliver quality services. We believe our clients deserve clarity around our t technology and client support fee, and we will continue to be transparent with our fee structure. • Any additional charges not discussed in this proposal will be mutually agreed upon up front. • We will always be candid and fair in our fee discussions, and we will avoid surprises. jt, fc s ;Llppl 'iaot?r�ttfl st.rvict_s It is not our policy or practice to bill our clients every time we receive a phone call. In the course of providing our services to you, we will regularly consult with you regarding accounting, financial reporting, and significant business issues. If a specific: project. is complex or requires significant time or resources, we will discuss the scope of the project and its fee with you first to make sure there are no surprises. While it is difficult to establish an exact policy for billing in these situations, we commit to discussing the request with you in advance of performing our services if we believe the time requirement to provide you the desired assistance is other than routine. We will discuss the scope of the project and our estimate to complete it prior to commencing work. We have a 24 to 48-hour response policy t:o return calls and emails from our clients to provide effective and timely communication. If the person you need to talk to is not available at the time you call, we will contact him/her and have him/her get back to you. We have a number of qualified professionals on our staff who can provide you with timely and competent assistance. Our last word on fees — we are committed to serving you. Therefore, if fees are a deciding factor in your selection of an accounting firm, we would appreciate the opportunity to discuss our audit plan. At CLA, it's more than just getting the job done. CliftonLar onAllen - Au difing rvices(l 22774. 1 ) Final Audit Report 2021-04-20 Created: 2021-0420 By: Kristin Andrade (kandrade@santa-ana.org) Status: Signed Transaction ID: CBJCI-IBCAASAA3_bXKBgwUcWiy01hgrnXP-ZVa.dfVst)(3w "CliftonLarsonAllen - Auditing Services(122774.1)" History ';-j Document created by Kristin Andrade (kandrade@santa-ana.org) 2021-04-20 - 10.01:12 PM GMT- IP address: 98.153.69.210 L,', Document ernailed to Kathryn Downs (kdowns@santa-ana.org) for signature 2021-04-20- 1D:01:35 PM GMT I Email viewed by Kathryn Downs (kdowns@santa-ana-org) 2021-04-20- 10:0.5:31 PM GMT- IP address. 98.153.69.210 FY,. Document e-signed by Kathryn Downs (kdowns@santa-ana.org) Signature Date. 2021-04-20 - 10:0557 PM GMT - Time Source. Sarver- IP address: 98. 153.69.210 D Agreement completed. 2021-04-2D - 10:05:57 PM GMT 15-30 5/4/2021 EXHIBIT 2 REQUEST FOR PROPOSALS (RFP) NO. 21-024 FOR PROFESSIONAL AUDITING SERVICES CITY OF SANTA ANA FINANCE & MANAGEMENT SERVICES AGENCY Sergio Vidal Assistant Director of Finance & Management Services Agency KEY RFP DATES: The schedule below is tentative and subject to change at the discretion of City, with appropriate notice to prospective Proposers. Issue Date: February 22, 2021 Deadline for Questions about RFP: March 3. 2021 Proposal Due Date: March 15, 2021, by 10:00 AM Review of Proposals. on or about March 16 — 31, 2021 Oral Interviews (conducted at City's discretion) on or about March 22, 2021 Projected Award Date: on or about May 4, 2021 City Council 15-31 5/4/2021 DCITY OF SA ANA Table of Contents I. BACKGROUND..............................................................................................................................3 II. PROJECT PURPOSE.................................................................................................................... 4 III. SCOPE OF SERVICES.................................................................................................................4 IV. TIME REQUIREMENTS.................................................................................................................6 V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR................................................................... 7 VI. MINIMUM QUALIFICATIONS........................................................................................................ 7 VII. TERM OF AGREEMENT............................................................................................................... 8 VIII. RFP SCHEDULE OF EVENTS...................................................................................................... 8 IX. RESPONSE TO RFP.................................................................................................................... 8 X. SELECTION PROCEDURES & CRITERIA.................................................................................. 13 XI. WITHDRAWALS..........................................................................................................................14 XII. PROTESTS.................................................................................................................................14 XIII. GENERAL TERMS AND CONDITIONS...................................................................................... 15 XIV. AWARD OF AGREEMENT......................................................................................................... 19 XV. IMPLEMENTATION.................................................................................................................... 19 EXHIBITS A SAMPLE AGREEMENT (FOR REFERENCE ONLY) B SCHEDULE OF PROFESSIONAL FEES AND EXPENSES (REQUIRED FORM TO BE SUBMITTED WITH PROPOSAL) ATTACHMENTS (REQUIRED FORMS TO BE SUBMITTED WITH PROPOSAL) A REFERENCES B PROPOSER'S STATEMENT C NON -COLLUSION AFFIDAVIT D NON -LOBBYING CERTIFICATION E NON-DISCRIMINATION CERTIFICATION RFP No. 21- i y Council ro OSS1ona u /0g rviS2S 5 4?z8of 34 BACKGROUND The City of Santa Ana is a Charter City in the State of California located in northern Orange County. The City was incorporated in 1886 and operates under a Council -Manager form of government. The City currently occupies a land area of 27.2 square miles and serves a population of approximately 335,000. The City is bordered by Garden Grove, Tustin, Orange, Costa Mesa, Fountain Valley, and Westminster. The City's fiscal year begins on July 1 and ends on June 30. The City of Santa Ana is a full service City of approximately 1,050 full-time and 300 part-time employees with twelve (12) agencies (departments). City services include police, water, sewer, sanitation, road maintenance, recreation, library, planning and building, and engineering services. The City contracted with the Orange County Fire Authority to outsource its fire services in 2012. The City Council is composed of an elected Mayor and six (6) Council Members. A. Fund Structure The following funds and account groups were presented in the City's fiscal year 2019-20 Comprehensive Annual Financial Report. Fund Types/Account Group Number of Individual Funds Number of Funds on CAFR General Fund 14 1 Special Revenue Funds Capital Projects Funds 38 45 7 7 Dcbt Scrvicc Funds 2 1 Enterprise Funds 9 7 Internal Service Funds 14 9 Private- Pur ose Trust Funds 1 7 1 1 Agency Funds 1 20 1 6 B. Finance Department Operations The Finance Department is headed by the Finance Director and consists of approximately 55 full-time and 22 part-time employees. The department is responsible for Treasury & Customer Service, Purchasing, Budgeting, Payroll, and Accounting. The accounting functions are computerized using Lawson Infor software. The applications operating on this system include but are not limited to; general ledger, accounts receivable, accounts payable, project accounting, grant management, purchasing, and asset management. C. Budgetary Basis of Accounting The City's budget is adopted annually by the City Council and is prepared for each fund in accordance with its basis of accounting (generally modified accrual). The City Manager is responsible for preparation and implementation of the annual budget. While all unencumbered appropriations are lapsed at year-end, valid outstanding encumbrances (those for which performance under executory contract is expected in the next year) are re - appropriated and becorne part of the subsequent year's budget. The City Council and the City Manager have the authority to amend the budget during the year. The City's fiscal year RFP No. 21- tily Council ProtOSSIOI)al AtiditfOg rviSts 5 41z8of 34 DCITY OF SA ANA 2020-21 total budget is approximately $772 million with the General Fund budget totaling approximately $326 million. The City maintains budgetary controls to ensure compliance with legal provisions embodied in the appropriated budget approved by the City Council. The level of budgetary control exists at the department level. D. Component Units The City identified the Successor Agency to the Community Redevelopment Agency as a Fiduciary Component Unit and the Housing Authority of the City of Santa Ana and the Santa Ana Financing Authority as Blended Component Units- E. Federal, State and Local Assistance The City receives financial assistance in the form of state and federal programs which vary from year to year. Accordingly, compliance with the Single Audit Act of 1996 and implementing regulations issued by the United States Office of Management and Budget (OMB) Circular A-133, and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) will be required. The City's Comprehensive Annual Financial Reports (CAFR) and the Single Audit Reports for the last ten years are available on the City's website at: https7//www.santa-ana.ora/finance/compreliensive-annual-f nancial-reporLs-cafr-and-other-financial- reoorls The audits of the City for the past five (5) fiscal years were performed by CliftonLarsonAllen LLP (formerly White Nelson Diehl Evans LLP). It is anticipated that their work papers will be available for review. II. PROJECT PURPOSE The City of Santa Ana (City) is requesting proposals from qualified Certified Public Accountant firms to perform its Annual Independent Audit for the two fiscal years ending June 30, 2021 through June 30, 2022, with the option to renew the contract for one additional two-year term for a total of four years. The audits are to be performed in accordance with the provisions contained in this Request for Proposals (RFP). III. SCOPE OF SERVICES A. Auditing Standards to be followed The audits shall be performed in accordance with, Auditing Standards generally accepted in the United States of America as set forth by the American Institute of Certified Public Accountants; The standards set forth for financial audits in the General Accounting Office's (GAO) GovernmentAudit Standards issued by the Comptroller General of the United States, RFP No. 21- tily Council HrotGSSIonal AtidittOg L1111W 51418A of 34 DCITY OF SA AA The provisions of the Federal Single Audit Act as amended; • Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and • Other or new pronouncements or regulations in place now or in the future B. Reports to be issued Comprehensive Annual Financial Report ("CAFR") —all funds including Fiduciary Funds, Successor Agency and I lousing Authority Financial Report • Single Audit of Federal Grants and Other Financial Information: During the fiscal year 2020-21, the City received and expended more than $32 million of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Funds. • Air Quality Improvement Fund (AQMD) Audit Report Report on the City's GANN LimiL computation • City's Investment Policy Compliance Review • U.S. Deparatment of Housing of Urban Development (HUD) Real Estate Assessment Center (REAC) submission attestation and review of HUD Financial Data Schedule (FDS) for the Housing Authority • Annual State Controller's Report • Measure X (Sales Tax) Compliance Report • Agreed -Upon -Procedures Report (up to two annually). The scope of review will include but not limited to the following. The City's internal control processes, contractual agreements, certain provisions of the municipal code. C. The City will prepare the CAFR and submit it to the Government Finance Officers Association (GFOA) for review in their Certificate of Achievement for Excellence in Financial Reporting program. The auditor shall review the CAFR and provide guidance to ensure full compliance with Generally Accepted Accounting Principles established by Government Accounting Standard Board (GASB) and the GFOA award program. The audit timeline must take into consideration the GFOA submittal deadline. D. The auditor shall issue a management letter containing comments and recommendations regarding the auditor's review and evaluation of the systems of internal control and accounting procedures as well as communications required by the Statements on Auditing Standards (SAS) 114 and 115. E. It is expected that the auditor will be available throughout the year for general consultation regarding matters of accounting at no additional cost to the City. The auditor may be asked to provide guidance on implementation of new GASB and SAS requirements and provide expertise and recommendations regarding specific of Federal and State regulations as to how they may impact local government accounting- F. If requested, the auditor may be required to meet with staff and Council Members to review the Management Letter and Audit. Attendance at Council meetings may also be requested. RFP No. 21- tily Council ro ess1ona tit atg rviW 5 49z11of 34 DCITY OF SA ANA G. The auditors shall be required to make an immediate, written report of irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties: City Manager and the Executive Director of Finance and Management Services. H. If requested by the member of the bond financing team, the auditor may be asked to issue a "consent and citation of expertise" and any necessary "comfort letters" in relationship to City financial statements and auditors' report, which are included in the Official Statement prepared in connection with sale of debt securities at no additional cost to the City. Working Paper Retention and Access to Working Papers Working papers are to be retained for a minimum of five (5) years following completion of the audit and are to be made available (upon reasonable notice) to City staff as well as any third parties authorized by the City. The auditor will be required to make working papers available to the City or government agencies included in the audit of federal grants. In addition, the firm shall respond to reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing audit significance. J. Subcontracting Should any firm submitting a proposal consider subcontracting portions of the engagement, that fact must be clearly identified in the proposal along with the name of the proposed subcontractor. Following the award of the audit contract, no additional subcontracting will be allowed without prior written consent by the City's Executive Director of Finance and Management Services. IV. TIME REQUIREMENTS A. CAFR and Related Reports It is anticipated that the audit work will be performed in two phases, Interim and Final Fieldwork: Interim Fieldwork Interim fieldwork shall take place in late May or early June and would consist of planning and interim audit procedures (such as gaining an understanding of relevant systems, procedures and internal controls, selected compliance and transaction testing, etc.). 2. Final Fieldwork Final fieldwork would involve completing the examination of the General Purpose Financial Statements, preparing opinion letters and other relevant financial reports. The final fieldwork is to begin no earlier than October 1, and shall be completed no later than November 15. This schedule may be altered only by mutual agreement between the City and the auditor. Any proposed audit adjustments must be identified no later than the conclusion of audit field work. 3. Draft Reports The CAFR will be prepared by City staff. The Auditor will review the draft CAFR prepared by the City and provide recommendations. The complete final draft of the City and its component units' financial statements, including footnotes and supplementary schedules shall be completed by third week of November. A draft of the managernent letter is due no later than November 30. RFP No. 21- tily Council ro esstona tit tng rvists 5/4111A of 34 • Drafts of the AQMD Audit Report, GANN Limit Reports and review of the City's Investment Policy are due no later than November 30. • Drafts of the Measure X Compliance Report and other Agreed -Upon Procedures reports are due no later than November 30. • First draft of the Annual State Controller's Report is due end of first week in January. • The City will review and provide comments or responses to the auditors within 10 calendar days of receipt of each of the draft reports. Final Fieldwork Final fieldwork would involve completing the examination of the Schedule of Expenditures of Federal Awards, major federal grant programs, preparing opinion letters and other relevant financial reports. The final fieldwork is to begin no earlier than October 1 and shall be completed by January 31. This schedule may be altered only by mutual agreement between the City and the auditor. 2. Draft Reports Draft of the Single Audit Report and HUD REAC submission attestation and review of HUD Financial Data Schedule (FDS) for the Housing Authority are due no later than 60 days from the date of the completion of the CAFR. V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR A. Finance Department and Clerical Assistance City staff will be available to assist in the audit. City staff will prepare any necessary schedules, provide documents (invoices, checks, council meeting minutes, etc.) and prepare all confirmations. In addition, we will be available to respond to any questions which may arise during the audit. B. The City will provide the auditors with suitable workspace, telephone, access to FAX machine and photocopier. VI. MINIMUM QUALIFICATIONS Firms submitting bids shall meet the following minimum qualifications: A. Firm shall have successfully completed audits of a minimum often (10) government agencies including cities, in the preceding twelve months. B. Staff assigned to the engagement shall have a minimum of one-year of experience in the audit of municipalities. Managers or supervisors assigned to the engagement shall have a minimum of five years of experience in the audit of municipalities. Partners assigned to the engagement shall have a minimum of five years of experience in the audit of municipalities. C. Firm shall have prepared and issued a minimurn of five Single Audit reports in the preceding twelve months. RFP No. 21- tily Council ProtGSSIonal AUdItMg L1111W 5 41111of 34 (Z) VII. TERM OF AGREEMENT The term of the agreement is two (2) years beginning with the fiscal year ending June 30, 2021. The City may, at its discretion, extend the agreement with the same or more limited scope of required services for up to one (1) additional two-year terms, contingent upon direction of the City Manager. VIII. RFP SCHEDULE OF EVENTS Schedule below is tentative and subject to change at discretion of City, with appropriate notice to prospective Proposers. Issue Datc: Deadline for Questions about RFP Proposal Due Date: Review of Proposals: Oral Interviews (conducted at City's discretion) Projected Award Date: IX. RESPONSE TO RFP A. SUBMITTAL INSTRUCTIONS Monday, February 22, 2021 Wednesday, March 3, 2021 Monday, March 15, 2021, by '10:00 AM on or about March 16 - 31, 2021 on or about March 22, 2021 on or about May 4, 2021 It is the responsibility of the Proposer to ensure that any proposals submitted have been uploaded to PlanetBids prior to the proposal due date and time. Proposals, including all required sections and forms, shall be submitted electronically via the City's Bid Management System, PlanetBids. No other form of submittal will be accepted. It is the responsibility of the Proposer to ensure that any proposals submitted has been uploaded to PlanetBids prior to this proposal due date and time. PlanetBids will not accept late bids and no exceptions shall be made. Proposers will receive an e-bid confirmation number with a time stamp from PlanetBids indicating that their proposal was submitted successfully. The City will only receive and consider those proposals that were transmitted successfully. Submit proposal online at: http://www.planett)ids-com/portal/portal-cfm?CompanvlD=20137. Proposer shall be solely responsible for informing itself with respect to the proper utilization of the bid management system, for ensuring the capability of their computer system to upload the required documents, and for the stability of their internet service. Failure of the Proposer to successfully submit an electronic proposal shall be at the Proposer's sole risk and no relief will be given for late and/or improperly submitted proposals. Proposers experiencing any technical difficulties with the bid submission process may contact PlanetBids at (818) 992-1771. Questions of an operational nature may be directed to the City's assigned Project Manager. Neither the City, nor PlanetBids, makes any guarantee as to the timely availability of assistance, or assurance that any given problem will be resolved by the bid submission deadline. Proposals shall NOT be mailed or sent via telegraphic, electronic or facsimile means. All notifications, updates and addenda will be posted online on PlanetBids at httos://www. 121anetbids.com/12ortal/12ortal-cFm?CompanylD=20137. Proposers shall be RFP No. 21- tily Council HrotGSSIonal Auditing wises 5 4?z11of 34 DCITY OF SA ANA responsible for monitoring the site to obtain information regarding this solicitation. Failure to respond to required updates may result in a determination of a nonresponsive proposal- B. COMMUNICATION / CONTACT WITH CITY STAFF Unless otherwise authorized herein, Proposers who are considering submitting a proposal in response to this RFP, or who submit a proposal in response to this RFP, are only to communicate with the assigned Project Coordinator(s), and no other City staff about this RFP from the dale [his RFP is issued until a contract is awarded. The City will provide all official communication concerning this RFP in writing via the City's Bid Management System, PlanetBids. General questions regarding this RFP may be directed to the City's assigned Buyer utilizing the City's PlanetBids system. The City will not be responsible for or bound by any oral communication or any other information or contact that occurs outside the official communication process specified herein, unless confirmed in writing by the designated Project Manager. C. REQUEST FOR INFORMATION OR CLARIFICATION / QUESTIONS Questions regarding this RFP shall be submitted via PlanetBids by 4:00 PM on March 3, 2021. Responses to all questions will be posted on PlanetBids no later than the date and time shown at the schedule of key RFP dates above. All prospective Proposers are advised to visit PlanetBids on a regular basis as the responses may be posted earlier than the date above. No verbal requests or responses will be accepted. Significant interpretations or clarifications will be addressed via addenda to this RFP. D. ADDENDA Any changes in RFP from the date of release to date of submittal will result in an addendum or amendment. Notification of such addendum or amendment shall be posted on City's PlanetBids system, httos://www.planetbids.com/portal/portal.cfm?CompanylD=20137. Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation. E. UNDERSTANDING PROPOSAL It is the responsibility of each Proposer to inquire about any criteria, condition, term, provision, or requirement of the RFP that the Proposer does not understand. Responses to inquiries, if they significantly change or clarify the RFP requirements or any aspect of the procurement process, will be forwarded by addenda to all Proposers. The City will not be bound by any oral responses to inquiries. By submitting proposals, Proposers assert that they have fully read the RFP and any addenda issued by the City, the proposed Contract and any other Contract Documents, and affirm that the terms and conditions stated therein are fully understood and are acceptable to the Proposer. Each Proposer accepts the terms and conditions of the Contract Documents and indicates their ability and willingness to perform the requested services under such terms and conditions. Any exceptions to the terms and conditions set forth in the Contract Document should be clearly noted in each Proposer's proposal. RFP No. 21- tily Council ro ess1ona u r rng rvMs 5/41M of 34 DCITY OF SA ANA Please direct all questions regarding the procurement process to: City of Santa Ana Finance & Management Services — Purchasing Division Karla Lopez, Buyer Email: klooez10Ca7santa-ana.org Phone: (714) 647-5466 F. PROPOSAL CONTENTS Proposals are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Colored displays, promotional materials, etc., are not necessary or desired. Emphasis should be concentrated on conformance to RFP instructions, responsiveness to the RFP requirements, and on completeness and clarity of content. Dividers and clear organization of content and material are encouraged. 1. Cover Letter Proposals shall include a letter signed by a principal or authorized representative who can make legally binding commitments for the entity. Include type of business entity. Cover Letter shall not exceed one page. Cover letter must be addressed to the following: Sergio Vidal, Assistant Director of Finance & Management Services Agency City of Santa Ana — Finance and Management Services Agency 20 Civic Center Plaza Santa Ana, CA 92701 2. Agreement Statement Proposal shall include a statement outlining your concurrence or concerns with any and all provisions as contained in the Standard Agreement attached as Exhibit A of this RFP. 3. Firm and Team Experience Proposal shall include a profile of the firm's experience including the following. a. A general description of the firm, including size, number of employees, and any past or contemplated changes in ownership. b. A description of the Size of the firm's governmental staff and the firm's experience with governmental agencies of a similar size, nature, and scope. Emphasis should be placed on assignments undertaken within the past three (3) years and on engagements undertaken by the personnel proposed to be assigned to this agreement. c. Name and contact information of the Project Manager to be assigned to the engagement. d. Resumes for the professional staff assigned to the engagement. A discussion of educational background and relevant experience of the Partner, Supervisor(s) and Staff which will be assigned to this engagement as well as their assigned responsibilities under the proposal shall be included. RFP No. 21- tily Council ProtOSS1011al AUdItMg rvi4®s /4920 of 34 e. A description of the Proposer's experience in providing similar services to those requested in this RFP, specifically the firm's most significant audit engagements in the last three (3) years including individuals whom we may contact for reference. This must include a discussion of the Proposer's qualifications and relevant experience including recent experience in compliance auditing under the Single Audit Act. f. A list of the local office's most significant engagements in the last five (5) years, indicating whether they are public or private sector, and including scope of work, dale, supervising actuaries, and name and telephone number of the client contact. g. Data requirements from the City. h. A statement that the firm is independent of the City and that it is unaware of potential conflicts of interest. i. An affirmative statement verifying the firm and all assigned key professional staff are properly licensed to practice in California. j. A copy of a report on its most recent external quality control review (peer review), with a statement whether that quality control review included a review of specific government engagements (required by Government Audit Standards). k. Information on the results of any Federal or State desk reviews or field reviews of its audits during the past three (3) years. In addition, the Proposer shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with State regulatory bodies or professional organizations. I. A description of limits on liability, if any. m. A warrant that the firm maintains a prudent amount of errors and omissions insurance that covers negligent acts and is applicable to the work requested in this RFP. n. An acknowledgement by signature that the signer is authorized to contractually bind the firm. o. Any pending legal actions and litigations against the firm. Legal actions against the firm in the previous five years shall be included. 4. Work Plan a. A description of the proposed work plan including nature of interim and final fieldwork testing procedures, explanation of the audit methodology to be followed to perform the services required of this RFP. This may include, but not be limited to discussion of: • Selection of sample size; • Type and extent of analytical procedures to be used; • Approach to gain understanding of the City's internal control structure, • Approach to determining laws/regulations subject to audit test work; • Approach to identifying any anticipated audit problems and the firm's approach to resolving these problems; • Approach to communicating audit findings to City staff, and • Ability to perform work remotely under a special circumstance. RFP No. 21- tily Council ProtOSSIOI)al AtidittOg rvifils /4920 ,lof 34 DCITY OF SANTA AA b. The extent of support which will be required from City staff (i.e. pulling invoices, checks, schedule preparation, etc.) Due to the City's limited staff, the City will not be able to provide copying services. c. A preliminary schedule including tentative dales for completion or interim and final field work, preparation of financial statements, footnotes, opinion letters and the management letter. d. A proposed budget including estimated hours for each member of the engagement team and hourly billing rates for each of the contract years. 5. Cost Proposal All proposers are required to submit Exhibit B, which contains. a. A cost breakdown by contract year (including renewal option term if exercised); including out-of-pocket expenses and a total not-tn-exceed cnst for all services outlined in Section 313 of this RFP- b. A listing of billing rates, by staffing level, which would apply to any supplemental services which may be requested by the City during the terra of this contract. Pricing instructions should be clearly defined to ensure fees proposed could be compared and evaluated. Proposals shall be valid for a minimum of ninety (90) days following Proposal deadline. The cost for developing the Proposal is the sole responsibility of the Proposer. All Proposals submitted become the property of the City. The proposed fees and rates for this contract will be fixed for the duration of the agreement, including allowable renewal options exercised at the discretion of the City. 6. Certifications (ATTACHMENTS AND EXHIBIT B) The following forms, included in this RFP, shall be signed and included as part of the proposal submittal package: Attachment A: References + Attachment B: Proposer's Statement + Attachment C: Non -Collusion Affidavit + Attachment D: Non -Lobbying Certification Attachment E. Non -Discrimination Certification Exhibit B: Schedule of Professional Fees and Expenses PLEASE NOTE_ City will not be waiving notarization requirement when applicable on any of the required attachents. 7. References Contractor shall provide three (3) references from public agency customers for which actuarial work similar to services specified in this RFP have been performed, including contact names and telephone numbers, and types of services your firm has provided. Use Attachment A— References. The respondent grants permission for the City to contact any individuals listed as references. RFP No. 21- tily Council Protessional Auditing rvi42s /4920 of 34 DCITY OF SA ANA City may disqualify a Proposer if.- • References fail to substantiate Proposer's description of services and deliverables provided: or • References fail to support that Proposer has a continuing pattern of providing capable, productive, and skilled personnel, or City is unable to reach the point of contact with reasonable effort. It is the Proposer's responsibility to inform the point of contact(s) of normal City working hours. S. Evidence of Financial Capacity Proposer may be requested to submit its most recent audited financial statement, evidencing Proposer's financial capacity to fully perform the required services, including provision of equipment and personnel expenses over a ninety (90) day period. If said financial statement does not reflect full ninety (90) day operational capacity, Proposer may include a letter of credit as evidence of supplemental capacity. 9. Insurance The selected Proposer shall provide the required evidence of insurance coverage as set forth in the standard agreement within ten (10) business days after receipt of Notice of Intent to Award. Contractor must maintain, for the duration of its contract, insurance coverages as required by the City. Subcontractors must comply with the City's insurance requirements as stated herein. Primary Contractor shall not allow any Subcontractor to commence work until all insurance required of Subcontractor is obtained. Additionally, Contractor shall provide the following insurance coverage: A warrant that the firm maintains a prudent amount of errors and ornissions insurance that covers negligent acts and is applicable to the work requested in this RFP. Work on the contract shall not begin until after the awarded Contractor has submitted acceptable evidence of the required insurance coverages. X. SELECTION PROCEDURES & CRITERIA A. The City will establish a proposal review committee, consisting of City staff designated by the Executive Director of Finance and Management Services. The review committee will evaluate proposals based on the response to the RFP, which includes adherence to outlined directions and format, and the City evaluation criteria set forth above- B. Proposers will be ranked by Finance staff based on the following criteria- RFP No. 21- tily Council ProtOSS10I)al AUdItMg rviW�s /4920 of 34 (Z) CATEGORY POINTS Experience of Firm and Personnel Technical qualifications and experience of key members of the engagement team and 25 the firm. Relevant Project Experience Experience with similarly sized governmental agencies in providing the types of 25 services outlined in this RFP Financial stability and resources to handle all aspects of the engagement as specified in this RFP and provide ongoing support and technical assistance throughout the term of 20 the agreement. Responsiveness to RFP Compliance with the requirernentS of this RFP. Thoroughness of auditors' proposed 15 scope of work, clearly defined schedule of work to be performed, and ability to meet required completion dates for key parts of the audit. Reasonableness of Cost Cost of delivering specified services is consistent with industry standards. - Expected overhead costs for the awarded entity as they apply to management of the contract 15 NOTE: Contractor shall pay all salaries and wages, employer's Social Security taxes, unemployment insurance, and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. TOTAL POSSIBLE SCORE 100 C. A final score will be calculated for each submitted proposal and used to rank Proposers. The City is under no obligation to accept any proposal and reserves the right to negotiate with respondents as to fees and terms. The City may reject proposals at its sole discretion. If a proposal fails to satisfy any requirements outlined in this RFP, it may be considered non- responsive and the proposal may be rejected. D. The City shall not be obligated to accept the lowest priced proposal, but will make an award in the best interests of the City of Santa Ana after all factors have been evaluated- E. Oral interviews will be conducted at the City's discretion tentatively on March 22, 2021. F. Finance staff will recommend the top ranked consulting firm to the City Manager or City Council for award of contract. XI. WITHDRAWALS Proposers are responsible for verifying all prices and information before submitting a proposal. Prior to the proposal due date, the Proposer or Proposer's representative may withdraw the proposal by providing written notice of the proposal withdrawal to the City Contact/Project Manager. Verbal or telephonic withdrawals are not permissible. XII. PROTESTS RFP No. 21- tily Council ro essrona tir atg 11-WLVIUS /4928 of 34 DCITY OF SA ANA Proposers may file a "protest" to an RFP with the City's assigned Project Manager. In order for Proposer's protest to be considered valid, the protest must: Be filed in writing within five (5) business days of either the RFP issued date or before 5:00 p.m. of the 5th business day following the posting of RFP Rcsults/Notice of Intent to Award Contract on the City's website; 2. Clearly identify the specific irregularity or accusation; 3. Clearly identify the specific City staff determination or recommendation being protested: 4. Specify, in detail, the grounds of the protest and the facts supporting the protest; and 5. Include all relevant, supporting documentation with the protest at time of filing. If the protest does not comply with each of these requirements, it will be rejected as invalid. If the protest is valid, the City's Project Manager, or other designated City staff member, shall review the basis of the protest and all relevant information. The Project Manager will provide a written decision to the protestor within ten (10) business days from receipt of protest. The decision from the Project Manager, or her/her designee, is final and no further appeals will be considered. XIII. GENERAL TERMS AND CONDITIONS By submitting a Proposal, the Proposer acknowledges that it has thoroughly examined and accepts the Terms and Conditions of this RFP as described below: A. AMERICANS WITH DISABILITIES ACT The awarded Contractor hereby certifies that it will comply, as applicable, with the Americans with Disabilities Act of 1990 ("ADA"). 42 USC §§ 12101 et seq., and its implementing regulations, including Subtitle A, Title II of the ADA. Contractor will not discriminate against persons with disabilities nor against persons due to their relationship to or association with a person with a disability. Any contract entered into by the awarded Contractor (or any subcontract thereof), relating to this RFP, shall be subject to the provisions of this paragraph. B. CITY RIGHT TO REJECT The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any agreement will be awarded pursuant to this RFP or otherwise. The City reserves the right to accept or reject the combined or separate components of this proposal in part or in its entirety or to waive any minor inconsistency, informality or technical defect in the proposal. C. CONFLICT OF INTCRCST Contractor shall exercise reasonable care and diligence to prevent any actions or conditions that could result in a conflict with the best interests of the City. This obligation shall apply to the Contractor; the Contractor's employees, agents, and Subcontractors associated with accomplishing work and services hereunder. The Contractor's efforts shall include, but not be limited to, establishing precautions to prevent its employees, agents, and Subcontractors from providing or offering gifts, entertainment, payments, loans or other considerations which could be deemed to influence or appear to influence City staff or elected officers from acting in the best interests of the City. RFP No. 21- tily Council ro ess1ona u t rng rvMs /4920 of 34 DCITY OF SA ANA Each Proposer must disclose any existing or potential conflict of interest relative to the performance of the contractual services resulting from this RFP. Any such relationship that might be perceived or represented as a conflict should be disclosed. The City reserves the right to disqualify any Proposer on the grounds of actual or apparent conflict of interest. No person, firm, or subsidiary thereof who has been awarded this Contract may be awarded a Contract for the provision of services, the delivery of supplies, or the provision of any other related action which is required, suggested, or otherwise deemed appropriate as an end product of this Contract. Therefore, Contractor is precluded from contracting for any work recommended as a result of this Contract. D. CONTRACTOR'S EXPENSE Pre -Contractual Expenses: The City is not liable for any costs incurred by Proposers prior to entering into a formal contract. Costs of developing a response to this RFP, are entirely the responsibility of the Proposer, and shall not be reimbursed in any manner by the City. Pre - contractual expenses are not to be included in the cost proposal. Pre -contractual expenses include, but are not limited to, preparation of the proposal, submission of the proposal and additional information, attendance at pre -proposal conference, negotiating any matter related to this RFP with City, and/or any other expenses incurred by the Proposer prior to the date of award and execution, if any, of the contract. Other Expenses: The Contractor will be responsible for all costs related to photo copying, telephone communications, fax communications, and parking while on City sites during the performance of work and services under this Contract. E. CONTRACTOR'S PROJECT MANAGER/KEY PERSONNEL Except as formally approved by the City, the key personnel identified in Contractor's proposal shall be the individuals who will actually complete the work. Changes in staffing must be reported in writing and approved by the City. The City shall have the right to require the removal and replacement of the Contractor's Project Manager and key personnel under the awarded contract. The City shall notify the Contractor in writing of such action. The City is not required to provide any reason, rationale, or additional factual information if it elects to request any specific key personnel be removed from performing services under the awarded contract. The City shall review and approve the appointment of the replacement for the Contractor's personnel. Said approval shall not be unreasonably withheld. Standards of Conduct: Contractor's personnel shall be courteous and maintain good working relationships with all stakeholders, state or outside agencies, other team members and staff within the City. Criminal Background Certification: Contractor certifies that all employees working on this contract have had a criminal background check at Contractor's cost and that said employees are clear of any sexual and drug -related convictions. Contractor further certifies that all employees hired by Contractor or Subcontractor shall be free from any felony convictions. City reserves the right to require Contractor to pay fingerprinting fees for personnel assigned to work in sensitive areas. F. COST PROPOSAL The price and amount of the Cost Proposal/Fee Schedule must have been arrived at independently and without consultation, communication, agreement or disclosure with or to any other Subcontractor, Proposer or prospective Proposer. RFP No. 21- tily Council ro ess1ona tit atg rviW�s /4920 of 34 (z) Prices offered by Proposers in their proposals are an irrevocable offer for the term of the contract and any contract extensions. The awarded Contractor agrees to provide the purchased services at the costs, rates, and fees as set forth in their Fee Schedule in response to this RFP. No other costs, rates or fees shall be payable to the awarded Subcontractor for implementation of their proposal. G. DATA RETENTION Contractor shall be responsible for retaining data, records, and documentation for the preparation of required items. These materials shall be made available to and as requested by City. All materials, documents, data or information obtained from the City Data files or any City medium furnished to Contractor in the performance of an awarded contract will at all times remain the property of the City. Such data or information may not be used or copied for direct or indirect use by Contractor after completion or termination of this Contract without the express written consent of the City. All materials, documents, data or information, including copies, must be returned to the City at the end of the contract. All data, documents and other products used, developed, or produced during response preparation of the RFP will become property of the City. All responses to the RFP shall become property of the City. Proposer information identified as proprietary shall be maintained confidential, to the extent allowed under the California Public Records Act- H. DRUG -FREE WORKPLACE The awarded Contractor certifies compliance with Government Code Section 8355 in matters relating to providing a drug -free workplace. Failure to comply with these requirements may result in suspension of payments under the Contract or termination of the contract or both, and the Contractor may be ineligible for award of any future City contracts. I. EXAMINATION Proposer represents that it has thoroughly examined and become familiar with the services and responsibilities required this RFP and that it is capable of effectively and efficiently performing quality work to achieve the City's objectives. Any attachments referenced herein or any interpretations, clarifications or amendments subsequently posted in relation to this RFP are fully incorporated. Any irregularities or lack of clarity in the RFP should be brought to the designated City Contact/Project Manager's attention as soon as possible so that corrective addenda may be furnished to prospective Proposers. Proposals which appear unrealistic in the terms of technical commitments, lack or technical competence, or are indicative of failure to comprehend the complexity and risk of this contract, may be rejected. J. EXECUTION OF AGREEMENT Upon successful negotiations, the City and the selected Proposer will enter into an Agreement similar to that as shown in EXHIBIT 3 STANDARD AGREEMENT in the Appendix of this RFP. If a Proposer is unwilling or unable to execute an Agreement within thirty (30) days after being notified of selection under this RFP, the City reserves the right to select the next most qualified Proposer or call for new Proposals, whichever the City deems most appropriate. RFP No. 21- tily Council ProtOSS1011al AtidItMg LI/Os /4920 ,lof 34 (z) K. JOINT OFFERS/SUBCONSULTANTS Where two or more Proposers desire to submit a single Proposal in response to this RFP, they should do so on a prime sub -consultant basis. The City intends to contract with a single firm and not with multiple firms doing business as a joint venture. Should the use of sub - consultants be offered, the Proposer shall provide the same assurances of competence for the sub -consultant plus the demonstrated ability to manage and supervise the subcontracted work. Sub -consultants shall not be allowed to further subcontract with others for work under the Agreement. The provisions of the Agreement shall apply to all sub -consultants in the same manner as the Proposer. The City reserves the right to reject, replace and approve any and all Subcontractors. All Subcontractor(s) shall be identified in the response to the RFP and the City reserves the right to reject any proposed Subcontractor(s). Subcontractors shall be the responsibility of the prime Contractor and the City shall assume no liability of such Subcontractors. L. INDEPENDENT CONTRACTOR Contractor is considered an independent Contractor and neither Contractor, its employees, nor anyone working under Contractor will be considered an agent or an employee of City. Neither Contractor, its employees, nor anyone working under Contractor, will qualify for workers' compensation or other fringe benefits of any kind through City. M. LITIGATION STATUS Each Proposer must include in its proposal a complete disclosure of any alleged significant prior or ongoing contract failures, any civil or criminal litigation or investigation pending which involves the Proposer or in which the Proposer has been judged guilty or liable. Failure to comply with the terms of this provision will disqualify any proposal. The City reserves the right to reject any proposal based upon the Proposer's prior history with the City or with any other party, which documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor, significant failure(s) to meet contract milestones or other contractual failures. N. NEGOTIATIONS The City reserves the right to negotiate final contract terms with any Proposer selected. The contract between the parties will consist of the RFP together with any modifications thereto, and the awarded Contractor's proposal, together with any modifications and clarifications thereto that are submitted at the request of the City during the evaluation and negotiation process. In the event of any conflict or contradiction between or among these documents, the documents shall control in the following order of precedence: the final executed contract, the RFP, any modifications and clarifications to the awarded Contractor's proposal, and the awarded Contractor's proposal. Specific exceptions to this general rule may be noted in the final executed contract. Negotiations shall be confidential and not subject to disclosure to competing Contractors unless and until an agreement is reached. If contract negotiations cannot be concluded successfully, the City reserves the right to negotiate a contract with another Contractor or withdraw the RFP. O. PROJECT MANAGER The selected Proposer will assume responsibility for all services in its proposal. The selected Proposer shall identify a sole point of contact, Project Manager, with the greatest knowledge RFP No. 21- tily Council HrotGSSIonal AtidItMg rvi49s /A920 of 34 DCITY OF SA AA in regard to the required service operations and contractual matters, including payment of any and all charges resulting from the Agreement- P. PROPOSAL VALIDITY Services, pricing, and warranties indicated in a Proposer's Proposal must be valid for a period of 90 days at minimum after the submission of the Proposal. Q. PUBLIC AGENCIES Other public agencies, as defined by California Government Code Section 6500, may choose to use the terms of this Contract, subject to Contractor's acceptance. The City is not liable or responsible for any obligations related to a subsequent contract between Contractor and another public agency. R. PUBLIC RECORDS Proposals will become public record after the award of a contract unless the proposal or specific parts or the proposal can be shown to be exernpt by law. Each Proposer may clearly label all or part of a proposal as "CONFIDENTIAL" provided that the Proposer thereby agrees to indemnify and defend the City for honoring such a designation. The failure to so label any information that is released by the City shall constitute a complete waiver of any and all claims for damages caused by any release of the information. Proposer information identified as proprietary shall be maintained confidential, to the extent allowed under the California Public Records Act. S. SUBCONTRACTORS Proposals in response to this RFP must identify any Subcontractors, and outline the contractual relationship between the Awarded Subcontractor and each Subcontractor. An official of each proposed Subcontractor must sign, and include as part of the proposal submitted by the Prime Contractor, a statement to the effect that the Subcontractor has read and will agree to abide by the awarded Contractor's obligations. Any Subcontractor proposed after award of contract must be approved by the City before commencement of work. The City will look solely to the awarded Contractor for the performance of all contractual obligations which may result from an award based on this RFP, and the awarded Contractor shall not be relieved for the non-performance of any or all Subcontractors. XIV. AWARD OF AGREEMENT Selected Contractor(s) will be notified in writing. Any award is contingent upon the successful negotiation of final contract terms. A. EXECUTION OF AGREEMENT A standard agreement is included as Exhibit A— Standard Agreement of this RFP. "Proposer" will hereinafter be referred to as "Consultant" or "Contractor" in standard agreement. The term of the agreement will begin after the agreement is fully executed, and all required bonds, insurance documents and contents of the payment information packet have been received and approved. XV. IMPLEMENTATION A. KICK-OFF MEETING A kick-off meeting will be held after award of contract. Contractor and its team will meet with City of Santa Ana staff to conduct introductions, discuss scope of services, and implementation process. RFP No. 21- tily Council ro essrona tJt rng rviW�s lr20 of 34 DCITY OF SA AA B. NOTICE TO PROCEED Following the kick-off meeting, a formal Notice to Proceed (NTP) may be issued after the agreement is fully executed, and all insurance documents and contents of the Payment Information Packet have been received and approved. C. TENTATIVE AUDIT CALENDAR FOR THE FIRST YEAR OF AGREEMENT (FY2020-21) Schedule below is tentative and subject to change at discretion of City. May/June 2021 Interim Audit Fieldwork June 30, 2021 Fiscal year-end October— November, 2021 Final Audit Fieldwork Complete Final Drafts of: -CAFR - Management Letter November 30, 2021 - AQMD Report - GANN Report - Investment Policy Review Report - Measure X Compliance Report - OtherAUPReports First week of December 2021 CAFR Finalized & Audit Opinion issued First Week of January 2022 Draft State Controller's Report January 2022 Single Audit Final Fieldwork -Single Audit Report issued February 2022 -Data Collection and related report submitted to the Federal Audit Clearinghouse - HUD REACT Report submitted RFP No. 21- tily Council ProtOSS10I)al AtidittOg 1rWLV186s /49of 34 (Z) EXHIBIT A SAMPLE AGREEMENT THIS AGREEMENT is made and entered into on this day of 2021 by and between , (`Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (`City'). RECITALS A. The City desires to retain a Consultant having special skill and knowledge in the field of B. Consultant represents that Consultant is able and willing to provide such services to the City C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firin in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and set forth in Scope of Services - Exhibit A, attached hereto and incorporated by reference. 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Compensation - Exhibit B. The total amount to be expended during the term of this Agreement shall not exceed $xxxxxx. b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, Subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on [enter a Start Date or "the date first written above"] for a number f#1 year term with the option for the City to grant up to a number (#)-year renewals, exercisable by a writing by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below. RFP No. 21- tily Council ro esstona tJ1 u)g rvr81s /49of 34 C!• I d 1 11111 4». I tC0ii7 dY tI:7_rii trel I Consultant shall, during the entire terra of this Agreement, be construed to be an independent Consultant and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer - employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. F OITAZI=1 -37IIXS1MIT, Kill i=117I_IM This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or I ublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Docurrients & Data"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City s sole risk. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance. Consultant shall maintain commercial general liability insurance naming the City, its officers, employees, agents, volunteers and representatives as additional insured(s) and shall include, but not be limited to protection against claims arising from budily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following! single limit coverage applying to bodily and personal injury, including death resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, with $2.000.000 in the aggregate. Such insurance shall (a) name the City, its Officers. employees. agents, and representatives as additional insured(s); (b) be primary and not contributory with respect to insurance or self-insurance programs maintained by the City; and (c) contain standard separation of insureds provisions. b. Business autoniobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non- owncd automobilcs. C. Worker's Compensation Insurance. In accordance with the provisions Of Section 3700 of the Labor Code, Contractor, if Consultant has any employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work under this Agreement, Consultant agrees to obtain and maintain any erployer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as an architect or engineer! Professional liability (errors and omissions) insurance, with a corribined single limit of not Tess than $1,000,000 per claim with $2,000,000 in the aggregate. RFP No. 21- tily Council ro essrona tJr rag rvi82s /49of 34 DCITY OF SANTA AA e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: i. Consultant shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. ii. Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall be approved by the City. iii. Certificates and policies shall state that the policies shall not be canceled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. IV. Where the amounts or coverage provided by the certificates of insurance provides coverage greater than those listed by this Agreement, the amounts provided by the certificates of insurance shall be incorporated by reference into the Agreement. V. Consultant shall supply City with a fully executed additional insured endorsement. If Consultant fails or refuses to produce or maintain the insurance required by this section or fails or refuses to furnish the City with required proof that insurance has been procured and is in force and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Contractor's right to be paid for its time and materials cxpondod prior to notification of termination. Consultant waivos tho right to r000ivc compow ation and agrees to indemnify the City for any work performed prior to approval of insurance by the City. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Contractor, its subcontractors, agents, ernployees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement, and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable rclicf is duc by reason of the terms of or effects arising from this Agroomcnt. This indomnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution. judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Contractor's services are subject to Civil Code Section 2782.8. the above indemnity shall be Iirnited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor. B. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. RFP No. 21- tily Council ro essIona tJr atg rviW /49of 34 DCITY OF SA ANA 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data. documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. irii Ts7.I9P7=1dY1IeT4Yi'1 If Consultant receives from the City information which due to the nature of such information is reasonably understood to he. confidential and/or proprietary, Consultant agrees that it shall not use or disclose surh information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidenlial Information" shall inch,ide all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources, (b) is, through no fault of the Consultant disclosed in a publicly available source, (c) is in rightful possession of the Consultant without an obligation of Confidentiality; (d) is required to be disclosed by operation of law; or (0) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parlies agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. RFP No. 21- tily Council ro esstona u t tng rvi84s 14 of 34 (Z) 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's priorwritten consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. is. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product(s) complcted as of such datc, and in such cast such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. i►94:t No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or tight, or remedy shall be deemed a waiver of any other breach. failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so spccifics. 17. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 18. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inabilityto obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. RFP No. 21- tily Council ro esstona tJr atg rviMs /49of 34 DCITY OF SANTA AA 19. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, CA 92702-1988 fax: 714- 647-6956 With courtesy copies to: Kathryn Downs Executive Director. Finance & Management Services Agency City of Santa Ana 20 Civic Contor Plaza (M-xx) P.O. Box 1988 Santa Ana. California 92102 Fax: To Contractor: First & Last Name Title Consultant Finn Name Address City, State. Zip Fax: A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. 20. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that Such authority or power is not, in fact, held by the signatory or is withdrawn. RFP No. 21- tily Council ro esstona tJr rng IrwLVIMS /49of 34 DCITY OF SA AA b. The Agreement is the final and complete agreement and any prior or contemporaneous agreements for similar services between the parties is superseded by this Agreement. This shall not apply where the Parties are currently engaged and Consultant is providing services not contemplated by this Agreement. c. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. /_\ii�616 Daisy Gomez Clerk of the Council APPROVED AS TO FORM! SONIA R. CARVALHO City Attorney M Assistant City Attorney Executive Director [INSERT] Agency CITY OF SANTA ANA Kristine Ridge City Manager CONSULTANT: (title) (name) (Lille) SAMPLE ONLY RFP No. 21- tily Council ro esstona u r atg rvi89s /49Hof 34 (z) EXHIBIT B SCHEDULE OF PROFESSIONAL FEES AND EXPENSES The compensation for financial auditing and report preparation services to be provided in each fiscal year, in accordance with this agreement, is shown below. Description of Services FY 2020-21 FY 2021-22 FY 2021-23 FY 2021-24 Total Cornprehenslve Annual Flnanclal Report $ Single Audit of Report AQMD AudiL Report _ Report on the City's GANN Limit computation _ City's Investment Policy Compliance Review HUD REAC Submission attestation and review of FDS for the Housing Authority - Annual State Controller's Report Measure X (Sales Tax) Compliance Report _ Agreed -Upon -Procedures Report (up to two annually) Out of pocket ex cnscs Icasc s ocif Maximum Not -to -Exceed Total Fee $ S S $ S The City, during the term of this agreement, may request that Consultant provide special services in accordance with the provisions of this agreement. If Consultant agrees to perform the special services, the Consultant's hourly fees to perform these services for the term of the agreement are as follows- unless a lesser fee is agreed to in a separate agreement between the City and Consultant. Title FY 2020-21 FY 2021-22 FY 2021-23 FY 2021-24 Partner Manager Supervisor Senior auditor Staff auditor Other leasespecify) Expenses All expenses incurred by the Consultant in performing the services in accordance with this agreement are included in the above annual fee quotes. These expenses include, but are not limited to, meals and lodging, transportation, communications, report preparation, word processing, and printing, and postage. THIS FORM MIDST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21- tily Council ro esstona u r atg rvi89s /49of 34 (z) ATTACHMENT A RFFFRFNCFS List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services included in the scope of the proposal specifications. Attach additional naaes if reouired. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference Customer Address: Contract Amount: Description of supplies, equipment, or services provided: Reference Customer Address: Contact Individual. Phone Number Facsimile Number: Year: Contact Individual Phone Number: Facsimile Number: Contract Amount: Year: Description of supplies, equipment, or services provided: Reference Customer Address: Contract Amount: Description of supplies, equipment, or services provided: Contact Individual Phone Number: Facsimile Number: Year: THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21- tily Council ProtGSSIonal Atiditing 1rVLV18§S /49of 34 ATTACHMENT B PROPOSER'S STATEMENT Proposer understands and agrees that this written RFP (or any part thereof specifically designated and accepted by the City of Santa Ana, hereinafter City) shall constitute the entire agreement between proposer and the City only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Executive Director or his duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to proposer or deposited with the United States Postal Service properly addressed to the proposer with the correct postage affixed thereto. Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish City all required bonds and certificate of liability insurance within ten (10) days (excluding Saturdays, Sundays and City's legal holidays), or the funds, check, draft, or proposer's bond substituted in lieu thereof accompanying this proposal shall become the property of the City and shall be considered as payment of damages due to the delay and other causes suffered by City because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by City is difficult to ascertain; otherwise said funds, check drafts, or proposer's bond substituted in lieu thereof shall be returned to the undersigned. Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. All terms contained in the specifications, the certification of nondiscrimination by contractors, and the required insurance certificates are to be incorporated by reference into this agreement and are made specifically as part of this RFP. Signed and Printed Name' Title Date THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21- tily Council ro essiona u r utg LV166s / of 34 ATTACHMENT C NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) To the CITY OF SANTA ANA In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the proposer declares that the proposal is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation: that the proposal is genuine and not collusive or sham; that the proposer has not directly or indirectly induced or solicited any other proposer to put in a false or sham proposal, and has not directly or indirectly colluded, conspired, connived or agreed with any proposer or anyone else to put in a sham proposal, or that anyone shall refrain from bidding: that the proposer has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price of the proposer or any proposer, or to fix any overhead, profit, or cost element of the proposal price, or of that of any other proposer, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the proposal arc true; and, further, that the proposer has not, directly or indirectly, submitted his or her proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham proposal. Note: The above noncollusion affidavit is part of the proposal. Signing this proposal on the signature portion thereof shall also constitute signature of this noncollusion affidavit. Proposers are cautioned that making a false certification may subject the certifier to criminal prosecution. State of California, County of Subscribed and sworn to (or affirmed) before me on this day of 120 , by , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. Notary Public Signature Notary Public Seal THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21- tily Council ro ess1ona tJt atg rvibC1s fv/49265of 34 (z) ATTACHMENT D NON -LOBBYING CERTIFICATION The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or allempling to influence an officer or employee or any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with its instructions. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such subrecipwmts shall certify and disclose accordingly. Signed: Title: Firm. Date: THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21- tily Council ro essiona tJt utg rv162S /49of 34 (Z) ATTACHMENT E NON-DISCRIMINATION CERTIFICATION The undersigned consultant or corporate officer, during the performance of this contract, certifies as follows: The Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following. employment, upgrading, demotion, or transfer, recruitment or recruitment advertising: layoff or termination, rates of pay or other forms of compensation: and selection for training, including apprenticeship. The Consultant agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Consultant shall, in all solicitations or advertisements for employees placed by or on behalf of the Consultant, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 3. The Consultant shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Consultant's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Consultant shall comply with all provisions of Executive Order 11246 of September 24, 1965. and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Consultant shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Consultant's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Consultant may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Ordor 11246 of Septomber 24, 1965, and such other sanctions may bo imposod and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. RFP No. 21- tily Council Proh9SS1011al AtidiftlOg 1rVLV1W / of 34 (z) 7. The Consultant shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions. including sanctions for noncompliance, provided, however, that in the event the Consultant becomes involved in, or is threatened with, litigation with a subconsultant or vendor as a result of such direction by the administering agency, the Consultant may request that the United States enter into such litigation to protect the interests of the United States. 8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any consultant of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed: Title: Firm: Date: THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21- tily Council ProtGSS1011al AtidItMg LI/164s 149of 34 EXHIBIT 3 March 12, 2021 Proposal to provide professional auditing services to: Technical Proposal RFP Number: 21-024 lilllli%ll(� ��.k CI-Aconnect.com Prepared by: WEALTH ADVISORY Daphnie Munoz, CPA, Principal OUTSOURCING daphnie. munoz@c1aconnect.com direct 714-795-5474 1 fax 714-978-7893 AUDIT, TAX, AND CONSULTING City Council 15 — 65 5/4/2021 CLA (Clifton LarsonAllen LLP) 2875 Michelle Dr v¢ &.0n. 300 rvine. CA 92606 rrryGiiilG'�i 714-978-13001 Iax714 918-7893 CLAconned cons March 12, 2021 Sergio Vidal, Assistant Director of Finance & Management Services Agency City of Santa Ana— Finance and Management Services Agency 20 Civic Center Plaza Santa Ana, CA 92701 Thank you for inviting CliftonlarsonAllen (CLA) to propose our services to the City of Santa Ana (City) for audit services for the fiscal years ending June 30, 2021. and 2022. We understand the City reserves the right to extend the contract for up to one additional one two-year term for a total of four years. CLA's extensive experience serving local governments in California and nationally— bolstered by our client -oriented philosophy— makes CLA the top qualified candidate to be your independent firm. The following are just a few differentiators offered for the City's consideration, Strong methodology and responsive timeline. In forming our overall audit approach, we have carefully reviewed the RFP and other information made available and considered our past experience performing similar won<for other local governments. In addition to our local government clients, we currently serve more than 4,150 governmental organizations nationally. From our work with you in the past, our staff understands your complexities not just from a compliance standpoint, but also from an operational point of view. We have developed a work plan that takes into consideration your unique needs as a governmental entity in the state of California. The work plan also minimizes the disruption of your staff and operations and provides a blueprint for timely delivery of your required reports. Experience auditing cities. Our Irvine office (legacy firm White Nelson Diehl Evans LLP) currently audits approximately 100 government entities an an annual basis including approximately 45 cities. WNDE served as the auditors for the City of Santa Ana for the period FY 201.6 to FY 2020. For a fresh perspective and to comply with the State of California requirements, we are proposing with a new engagement partner. CAFR assistance. We understand the City's desire to issue a CAFR and receive the Government Finance Officers Association (GFOA) certificate of achievement for excellence in financial reporting. Our team is comprised of individuals, dedicated to your engagement, with significant experience assisting governmental entities in receiving this award. We will work closely with the City to assist in your CAFR preparation and review of the GFOA checklist, to best position the City to receive this award. Verification Statements I, Daphnie Munoz, your engagement principal in charge, will serve as the primary contact person for this engagement. Furthermore, as principal of CLA, I am authorized to sign, bind, and commit the firm to the obligations contained in this proposal and the City's RFP. This proposal is valid for a period of 90 days following proposal deadline. We are eager to continue working with you and welcome the opportunity to present our proposal to the City's management team. If you have any questions about our offerings, please do not hesitate to call me directly. Sincerely, Clifton LarsonAllen LLP Daphnie Munoz, C A, Pri .ipal Direct 714-795-S474 l daphnie.munaz(g Llaconnect.corn „ r „ , r until 15 — 66 5/4/2021 1. Cover Letter 2 Agreement Statement 3 Fierro and Tearri Experience a. Firm overview b. Experience with similar governmental agencies c. Office information and primary contact for your engagement d. Proposed engagement team e. Experience f. List of local office's most significant engagements in the last five (5) years g. Data requirements from the City h.Independence L Licensed j. Quality control review and peer review k. Federal or state desk or field reviews I. Limits on liability mAnsurance n. Authorized to contractually bind the firm o. Disciplinary action---.__.._....... ........_.._._—._--._-- 4 Wark Plan a. Audit approach c. Segmentation, timeline, and completion dates ....,-,,,...__ d. Segmentation of hours 5 host proposal a. Cost breakdown by contract year--..-._ 6 Certifications I References 8 Evidence of Financial Capacity 9Insurance Additional lnForma'kion Engagement team biographies Attachments B through E ___ 2 4 4 4 4 _ 4 _ 5 6 10 1.1 1.1. 12 12 14 1.4 14 14 14 1.4 14 25 28 29 2.9 31 32 33 3/F 34 3S 35 42 k°2lY"lid': We have reviewed the City's standard agreement which was provided as Exhibit A of the request for proposal. We have no exceptions except for the following: • We reserve the right to discuss the modification of the wording in Section 7 of the agreement regarding indemnification to ensure that we will not be in violation of our insurance providers' requirements or generally accepted -auditing standards. .� �i-1B fY" rt "ao IB ,i�"IC G` � � ,1� ,..�. �? "r.� 9�i� � r7m. � � �.f ". "• li"' � i '' b"'� � ` iG "^: a�. For t1a ffve°rvoaw With 7,400 people in more than 1.30 U.S. locations, and a global affiliation, we bring a wide array of approaches to help clients in all markets, foreign and domestic. CLA exists to create opportunities for our clients, our people, and our communities through industry -focused wealth advisory, outsourcing, audit, tax, and consulting services. Our broad professional services allow us to serve clients more completely - from startup to succession and beyond. CLA has nearly 400 state and local government professionals' firm wide. Our professionals are immersed in the industries they serve and have specialized knowledge of their operating and regulatory environments. [d rgll l,INnM; � ;r n ii nD,I IO i�DO'➢ In tL'Ve II LIB AAHWIAl Among fhr nati n'ti — 0, taln� prnfessmnal -- sa rmrr , firms - Rlsn'JtC ,Nar�l-Q f.- l ^'hM Irlo)U?IPY IrItV/i q'i W.;,.rvt r�r.p.."k'�.�-@ {P� nlllv'n[.I rordlr; b, IxPerionce vvi''J1 Similar f77ovc/'rrlln nl a0 CLA understands and appreciated California governmental experience like no other firms. CLA has a team of professionals in our Irvine office that focus their efforts in the government industry. Our government services team specifically chose to work in this industry. As such, our people are passionate about what they do and eager to exceed your expectations both now and in the future. As a CPA firm experienced in serving state and local government, CLA is aware of the financial and legal compliance requirements that government officials are facing daily, specifically in the State of California. CLA's Irvine office currently audits approximately 100 governmental organizations which includes approximately 4.5 cities in California. (,. C)fRii (, iri� ui rn a9ion arid priiiiary C01')t:3Ct For yC)LIr F,rll,ag&orient The City will be served by our specialized government engagement team located in our Irvine, California office. We are a local firm with national resources. We are solely focused on providing high quality accounting, auditing, and consulting services to California municipalities, special districts, and other government entities. Uaphnie Munoz will be your assurance principal and is authorized to bind the firm. IIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII� y uuuuuuuuuuuuuuuuuuuuuuuuuum "i"' uu IIIIIIIIIIIIIIIII III ' hump %uiii I " "' IIIIIIIIIIIIIIIII II I V..VV V;;,v;;, ..� � ' I v.8, IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII II II uumu Y uumiiiiu Yuuml �uuuuuuumuu I �� I III Illdlllllllllllllllllllllllllll IIIIIIIIIIIII IIIIIIIIIIIIIIIIIIII IN',iN�i � uuum IIIIIIYI�uuum IIIIII IIIIIIIIII IIIIII IIII I IIIIIIIIIIIIIIIIIIIIIIIIII ul I ,�,�I"L. 'y uul u.,,,, „ IIR! calla uul uul IIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIV,.V.,,,,,, 8uumuuu8�Y� �y ,;;;;;; �,,,,,,,,,,,,,,,,,�,,,i IIIIIIIIIIIIIIIVIIuuul000!VV„„ II Yu IYI II II IIIIIIIIIIIIIIII�IIIIIIIIIIIIIIpIIIIIIIIIIIIIIYII I�uuuuuuuuuuuuul�Il Daphnie Munoz, CPA, Principal CliftonLarsonAllen LLP 71.4 795-5474 1 Fax: 714-978-7893 2875 Michelle Drive, Suite300 daphnie.munoz@CLAconnect.com Irvine, California CI. 1"ia)posed J �l(-,r1r�Q=31YfF°4Et: te'.,.,im An experienced engagement team has been aligned to provide the most value to your organization. The team members assigned to this engagement have performed numerous City Municipal Audit engagements of this nature and will commit the resources necessary to provide top quality service throughout the engagement. All management team INEMINKRINNEMEWMEM members are full-time employees from the Irvine Office, currently and properly licensed Certified Public Accountants. Additional staff will hold a minimum of a bachelor's degree from an accredited university, be a licensed CPA or CPA candidate, and will be closely managed by one of more of the individuals listed below. I uu ul I I 'Ru ii'tll a uum ul u u uul ul uul 'h lllllll "" II IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIF�i�iuuutluuuuuuuuuuuuuuuuuuuiiiiiiuolpuuuuuuuuuuuu0000l ul uuuml°°I I IIIIII. li i �hh�l�,�'�lili Daphnie Munoz, CPA Kassie Radermacher, CPA, CFE Robert Perl, CPA Nicole Racine, CPA James Kreiser, CISA, CRMA CFSA Engagement Principal 22+ Assurance Principal 16+ Manager 14+ Senior 3+ Information Systems Principal 22+ Detailed biographies are available in the Appendix of this proposal. Roles and responsibilities Engagement Principal— Daphnie Munoz will have overall engagement responsibility including planning the phase of the audit to assess risks related to the audit. Daphnie will perform a final review of the work papers and financial reports. Daphnie is responsible for total client satisfaction through the deployment of all required resources and continuous communication with management and the engagement team. Assurance Principal.. Kassie Radermacher will serve as the assurance principal and will perform a detailed review of the work papers and financial reports. Kassie will oversee the audit, supervise the staff, and maintaining client contact throughout the engagement and throughout the year Engagement Manager— Robert Ped, will act as the lead manager on the engagement. In this role, Robert will assist the engagement and assurance principals with planning the engagement, coordination of the timeline of the engagement status with the City and performing complex audit areas. He will perform a technical review of all work performed and is responsible for the review of the comprehensive annual financial report and all related reports. Information Systems Principal —James Kreiser will lead the audit team in documenting and evaluating general computer controls and IT application controls. Engagement Senior —Nicole Racine will act as the senior on the engagement. In this role, Nicole will be onsite performing the fieldwork, supervising, and reviewing the work of the staff accountants as the audit: fieldwork is being performed and providing updates to the City staff. Additional Staff— We will assign additional staff to your engagement based on your needs and their experience providing services to state and local governments. The staff assigned to your team will be from our Irvine office with state and local government as their industry focus at CLA. Government experience CLA offers the credibility, reputation, and resources of a leading professional services firm -- without sacrificing the small firm touch. We bring high levels of technical excellence, commitment, and dedication to our clients, which have made us one of the most successful professional service firms serving governmental entities. Our strong reputation for serving state and local government units provides the City the confidence in their decision to select CLA to continue as their professional service provider. CLA has one of the largest governmental audit and consulting practices in the country, serving thousands of governmental clients nationwide. Regulated industries clients represent approximately one -quarter of all firm - wide revenue, and each of the government services team members are thoroughly versed in the issues critical to complex governmental entities. Our professionals have deep, technical experience in serving governmental entities. As a professional service firm experienced in serving state and local units of government, we are very aware of the financial and legal compliance requirements that government officials face daily. f his creates complexities and service issues within a unique operational and regulatory environment. Because of our experience, we have become adept at providing our clients with insights in this environment not typical of other professional service firms. Certificate of achievement assistance The Government Finance Officers Association is awarded to state and local governments that go beyond the minimum requirements of generally accepted accounting principles. It is awarded to state and local governments who produce a comprehensive annual financial report that evidences the spirit of transparency and full disclosure. Members of the GFOA staff and the GFOA Special Review Committee (SRC) review reports submitted to the CAFR program. CLA provides audit services to many entities that received the GFOA Certificate of Excellence in Financial Report. All of the procedures noted in our audit approach and our technical review of the CAFR are done to help the City prepare and publish the top product possible. Our managers and principals who review the CAFR have a strong understanding of the GFOA requirement for the certificate. We understand that this is a prestigious award for the City and a great accomplishment for the Finance and Accounting departments. We will review the GFOA comment letter for each CAFR and provide the City advice regarding the response to the GFOA reviewer's comments. Our procedures with respect to the CAFR will be the review of the comments from GFOA on the prior year submission to determine they were adequately addressed, completion of the CAFR checklist, and review of the transmittal letter and statistical data to determine that information presented is reasonable and agrees with the information in the financial statements and management's discussion and analysis (MD&A), where applicable. We understand the interrelationships of the many and varied components of a governmental entity's financial statements, allowing us to quickly determine errors or problems with the financial statements. Our depth of knowledge and experience also allows us to assist the City with the preparation of the CAFR and improvement of the City's financial statements. Our involvement with clients in the GFOA Certificate program helps to determine that we are on the leading edge of reporting trends and techniques. We have been engaged by various entities to review their statements for compliance with program requirements. We have aided clients in the early implementation of professional pronouncements and regularly provide our clients with updates on new pronouncements which will affect them and will do the same for the City. California municipal entities the local Irvine office has recently audited that have received the GFOA award of excellence in financial reporting are: Alhambra Irvine Newport Beach Santa Ana Burbank La Canada Flintridge Cerritos La Habra Chino Laguna Hills Colton Lake Forest Del Mar Lancaster El Segundo Monterey Park Glendale Murrieta Hesperia La Palma Norco Santa Barbara Norwalk Santa Fe Springs Orange Signal Hill Palos Verdes Estates Stanton Pasadena Torrance Rancho Palos Verdes Tustin San Buenaventura West Hollywood San Juan Capistrano Westminster The table below identifies the professionals who are currently members of the GFOA Special Review Committee together with their length of service with the Committee: Robert Callanan, CPA Principal Irvine, CA 5+ Julie S. Fowler, CPA Signing Director Sebring, FL 10+ Rich Gonzalez, CPA Principal Roseville, CA 5+ Michelle Hoffman, CPA Principal Minneapolis, MN 4+ Christopher Kessler, CPA Principal Fort Myers, FL < 1 Christopher G. Knopik, CPA, CFE Principal Minneapolis, MN 5+ Jacob S. lenell, CPA Principal Milwaukee, WI 10+ Daphnie Munoz, CPA Principal Irvine, CA 5+ Remi Omisore, CPA Principal Baltimore, MD 6+ Nitin Patel, CPA Principal Irvine, CA 5+ Jeffrey Peek, CPA Manager Roseville, CA 4r Miranda Wendlandt, CPA, CFE Principal Alexandria, MN 3+ Single audit experience CLA has become the national leader in providing audit, tax, and many other financial services to government entities similar to the City. Our client portfolio of nonprofit, government, and health care institutions represents nearly half of the firm's total revenues. The chart below illustrates CLA's experience in serving organizations that receive federal funds and demonstrates our firm's dedication to serving the government and nonprofit industry. CLA performs the largest number of single audits in the United States! We audited nearly $56 billion dollars in federal funds in 2019. Number of Audit, Pe, form, W doll NihpiM6 A6m NNONAZI WlNA ONNf161B."I lVlhVr,VII�rMatl.�J!16Mifl11 �VNYwN lili �If�,IV,ryd �wN�rmhdtl'�tl,Vp�Iq�hL,�JlI�u�RN@dfiri9lrC�P�O�I@IPfi�Nf�Q117�iY�d�fINN z.��� __ _... r. 0 iG n9p bG� R:10 .�;0 i Yti noJ Yde rrrJannaNar Jar me fans above wo, pWIIO from n¢ I'(01W A,., Georvngrr0vse jar ouaRs with pscor yem enas between mnunry 1, 2019-Omemncr 31, 2019 In the current environment of increased oversight and new federal funding being available through the CARES Act in response to the COVID-19 pandemic, it is more important than ever to find qualified auditors who have significant experience with federal grants specific to the City and can enhance the quality of the City's single audit. Therefore, the single audit, if needed, will be performed by a team of individuals who are managed by personnel who specialize in single audits in accordance with OMB's UG and who will offer both knowledge and quality for the City. As part of our quality control process, the single audit will be reviewed by a firm Designated Single Audit Reviewer. The AICPA clarified auditing standard, AU-C 935 "Compliance Audits" requires risk -based concepts to be used in all compliance audits including those performed in accordance with OMB UG. Our risk -based approach incorporates this guidance. Single Audit Resource Center (SARC) Award CLA received the ` m, Ir Au�ln It ,uc�r� c C c i,1er /nward for Excellence in Knowledge, Value and Overall Client Satisfaction. SARC's award ® Jingle Audit recognizes audit firms that provide an outstanding service to their clients Resource Center based on feedback received from an independent survey in June 2018. The survey queried 10,762 nonprofit and government entities about the knowledge of their auditors, the value of their service, and overall satisfaction with their 2017 fiscal year-end audit. The SARC award demonstrates CLA's dedication to serving the government and nonprofit industry and maintaining the most stringent regulatory requirements in those sectors. Participation in Quality Improvement Programs We work with governmental entities across the country, and our exposure to the circumstances and issues that surround your industry will allow us to serve you with exceptional knowledge and insight. We understand the specific needs and challenges of the public sector and have been serving clients similar to the City for decades. We are actively involved in and/or are members of the following professional organizations: • American Institute of Certified Public Accountants (AICPA) ✓ AICPA's State and Local Government Expert Panel ✓ AICPA's Government Audit Quality Center (GAQC) ON A I CPA ✓ Government Finance Officers Association (GFOA) ✓ Special Review Committee for the GFOA's ✓ Certificate of Achievement for Excellence in Financial Reporting (Certificate) Program ✓ AICPA Single Audit Quality Task Force ✓ Association of Government Accountants ✓ California Society of Municipal Finance Officers ✓ Governmental Accounting and Audit Committee of the Orange County Chapter of the California Society of Certified Public Accountants Our participation/membership in the aforementioned professional organizations, combined with various other technical services we subscribe to, allows use to be at the forefront of change in the government environment. We take seriously our responsibility for staying current with new accounting pronouncements, auditing standards, other professional standards and laws and regulations. d' ;..Vie o �o(Cap toffict? S rn os) rll-jTffi( P.I U_ (-, Cr)`.I five ('�') yr�dlrS The below table provides related and relevant California projects that the CLA Irvine Office has successfully completed for Cities in the last five years. Client contact Ms. Shu-Jun l.i, Deputy I-inance Director Address 141 North Glendale Ave., Suite 346, Glendale, CA 91206 Phone number I email 818-551-3048 1 sli@Giendaleca.gov Engagement principal Daphne Munoz Dates of services 2020 — Present Scope of work City audit, Electric Utility Funds audit, Single Audit Client contact Dino Balos, Accounting Manager Address 27S East Olive Avenue, Burbank, CA 91502 Phone number I email 818-238-5518 1 dbalos@burbanl<ca.gov Engagement principal Nitin Patel Dates of services 2013-Present Scope of work City audit, Electric and Water Utility funds audit, Single Audit, Investment AUP, AQMD audit Client contact Ms. Stacey Dabbs, Finance Director Address 650 N. ha Cadena Drive, Colton, CA 92324 Phone number I email 909-370-5036 1 sdabbs@coltonca.gov Engagement principal Daphnie Munoz Dates of services 2014 — Present Scope of work City and Single Audits; Child Care Compliance Audit; Electric and Water Utility Funds; State Controller's Report &V����1P111111191111110)��S���iiP���?�11��9��((� Client contact Mr. Casey Brooksher, Finance Director Address 9700 Seventh Ave., Hesperia CA 92345 Phone number j email 760-947-1813 1 cbrool<sher@cityofhesperia.us Engagement principal Daphne Munoz Dates of services 2016 -- Present Scope of work City audit, Water and Sewer Utility Funds audit, Single Audit, State Controllers Reports Client contact Bobby Magee, Director of Finance Address 1.4343 Civic Dr., Victorville, CA 92392 Phone number j email 760-955-5055 1;cw Engagement principal I(assie Radermacher Dates of services 2019 - Present Scope of work Audits of the City, Victorville Water District, and Southern California Logistics Airport Authority, Single audit 2. )ata dl1 , f,li:Y We request that the City provide access to all records required for the audits and other requirements of the contract. In addition, we request that you assign a "project coordinator" through whom we will communicate and coordinate activities. We do not foresee needing the City's staff other than during normal business hours. To assist in this process, we will provide a detailed Prepared by Client list early in the engagement. We will ask that your accounting staff provide us with standard schedules, as well as additional requested supporting items. We anticipate that your accounting personnel will assist us in retrieving the documents stored electronically for certain invoices, vouchers, cancelled checks, and other documents and records. We are extremely flexible as to the format in which we receive this information and will determine through the use of the latest technology that your personnel will not be asked to perform any unnecessary or extensively disruptive tasks. We will depend on your staff to provide us with as much information as possible, in an effort to limit everyone's time on the engagement and, ultimately, to save your organization money. �I Iu�f�t,ptt��ruCiEtrla-f� CLA is not aware of any financial, business, or other relationship with the City of any member of the City staff that may have an impact on the outcome of the project. CLA is independent of the City as required by auditing standards generally accepted in the United States and the U.S. Government Accountability Office's Government Auditing Stondards. Our firm -wide quality control policies and procedures foster strict compliance with these professional standards. In addition, the individuals assigned to your audit are independent of the City. CLA is duly licensed to practice public accountancy in the state of California and other states. All management team members hold a CPA designation. Additional staff will hold a minimum of a bachelor's degree from an accredited university, be a licensed CPA or CPA candidate and will be closely managed by the proposed management team members. A copy of our state license is provided below: BOAR® OF ACCOUNTANCY LICENSING DETAILS FOR: 7083 NAME: CL.IFTONI.ARSONALLEN LLP LICENSE TYPE: CPA - PARTNERSHIPS LICENSE STATUSt CLEAR PREVIOUS NAMES: LARSONALLEN LLP ♦ LARSON, ALLEN, WEISHAIR & CO., LLP ADDRESS 60 S MARKET STREET SAN JOSE CA 95113 SANTA CLARA COUNTY E. Q,Ia gay coIPi,Xo) r('VKi N df) d lA-�a'f revVi vv ISSUANCE DATE JULY 27. 2006 EXPIRATION DATE JULY 31. 2022 CURRENT DATE I TIME JUNE 25 2020 7:3717 AM The most recent peer review report we received expressed a rating of pass, which is the most positive report a firm can receive. We are proud of this accomplishment and its strong evidence of our commitment to technical excellence and quality service. The full report is provided on the following page. In addition to an external peer review, we have implemented an intensive internal quality control system to provide reasonable assurance that the firm and our personnel comply with professional standards and applicable legal and regulatory requirements. Our quality control system includes the following: • A quality control document that dictates the quality control policies of our firm. In many cases, these policies exceed the requirements of standard setters and regulatory bodies. Firm leadership promotes and demonstrates a culture of quality that is pervasive throughout the firm's operations. To monitor our adherence to our policies and procedures, and to foster quality and accuracy in our services, internal inspections are performed annually. • Quality control standards as prescribed by the AICPA. The engagement principal is involved in the planning, fieldwork, and post -fieldwork review. In addition, an appropriately experienced professional performs a risk -based second review of the engagement prior to issuance of the reports. • Hiring decisions and professional development programs designed so personnel possess the competence, capabilities, and commitment to ethical principles, including independence, integrity, and objectivity, to perform our services with due professional care. • An annual internal inspection program to monitor compliance with CLA's quality control policies. Workpapers from a representative sample of engagements are reviewed and improvements to our practices and processes are made, if necessary, based on the results of the internal inspection. • Strict adherence to the AICPA's rules of professional conduct, which specifically require maintaining the confidentiality of client records and information. Privacy and trust are implicit in the accounting profession, and CLA strives to act in a way that will honor the public: trust. • A requirement that all single audit engagements be reviewed by a designated single audit reviewer, thereby confirming we are in compliance with the standards set forth in OMB Uniform Guidance. I. It C;herrylicci kfiI erra 11<11.6,:<1... Report on the Firm's System of Quality Control Novombcr21. 2019 TO the Principals of COIIonLarsory llan LLP and the National Peer Rdvlew Comli lnee We have refill into system of quality Control ref tile ffircowdinlf an<I B..ailing practice of CfiftonLalsonAllon LLP (file rem) applicable to engagements not aubgecl to PCAOB permanent inspection m offset for are year ended May 31. 2019. Our peer review was conducted in act-ntdava with tha StandlidS to: Perfonrdng and Repelling fin Pee: ROvicws eslablishod by the Peer Review Board of the Amoncan Insututo of Coltlloo Public Accountants (Slandaalg). A sunnnary of the natono, obcowIs, scope. limitations of. and the procedures PiIt fled In If system Review As duix,bad in Iho Standmds flay be found at www2lcP2orcgfp SldMIn ry_ The sunanaiy also Includes An explanation of how ongagemcnts ideliffiod as not par forma or reported In conformity with Applicable prafeS,:anal standards, If an, arc ovaluatoa by a peer reviewer to dalermine A peef feview ratify, Firm's Responsibility the film A responsible for designing a system of quality comer Afd Complying will, it to provide Ire ann with reasonable assurance of performing and reporting in conformity with Applicable pmfev10nal 3tantlafds in all matellal respeCL (fie firm Is Also respor` 1Va rot WPIVa6ng acl, s to p omptly fbrrllWow ensp,oulumis l comod as dot performed or reported in conformity writ profeil,onal %oux1t its, when appropriate, and for nu etdiating weaknesSee in Its ey5teln of Clua0ry Canal. i1 Any. Peer Reviewers Responsibility Our responslbilily IS 10 express an opinion on IAA, doSlgn of tho systorn of quality control still tile finis COlnpllonco lhelewlfh based on Ourrevlew_ Required Selection, and Considerations F,,,n9Ayevmenls selecle(I for At.I( includCd engn(lelnonts performed under Gowasnenf Rudlrng Sfanisaws. irldadnp (drnplianca All0b under the Singly Audit Act. audits of employee bereft pans. audits performed under FDICIA. audits of brokol4calats. and examinal ons of service organvito0i [SOC 1 and SOC 2 eng3gemewsj As a part of our peer review. wo conslaered leVfeM_ by reyulatMy emifea 0� COmmuni0ted by the Bnn, if appllcvtde. In detennMlMg ttte halme Alld Stan[ of our pn)c,rfjr L, Opinion to our Opinion the system of quafly cOnlrol for the accounting and audifing practice of CIIItonLarsonAllCn LLP ap,1w,ce to engagement, rot,umeet to PCAOB pimnanent Inspection in effect for the year ended May 31. 2010. has been suitably ro gncel antl Complied with to provide the firm with reasonable assurance of perfotming ana reporting in Como .... ity will applicable professional standards In all material respects_ Firms can receive a IatIng of pass. pass WAlr WficArcy cS) Or fail. Clittoni-amonAllaO LLP has received a peer review using of pass. Cneey 8012efl LLP k:. G r,cke �II oI >lale, de,,k crrAuc-Vd Ie_vi(��Ac CLA has been subject to several federal and state desk reviews by state oversight agencies during the past three years, and we have resolved all findings. In addition, our government audits are subject to review by each agency's Office of Inspector General, as well as the U.S. Government Accountability Office, and we have also resolved all findings identified in those reviews. e. Lirnhj (rn habibi_y See Section 9, Insurance. r�i. i)SU.A1)C('. CliftonLarsonAllen LLP carries commercially reasonable amounts of general liability and malpractice (aka professional liability) insurance. If requested, the firm will provide a certificate of coverage for an amount specified by the City upon being engaged. I'). AL lhor'ukld io conLracauaHy hi d tho fh m Daphnie Munoz, as principal of CLA, is authorized to sign, bind, and commit the firm to the obligations contained in this proposal and the City's RFP. This proposal is valid for a period of 90 days. O. ,.cil'flhiary of-titrrt From time to time, the firm is a defendant in lawsuits involving alleged professional malpractice. In all cases, the firm believes that it has a strong position and intends to defend itself vigorously. Should the ultimate outcome be unfavorable, however, net of the deductible provisions of the firm's malpractice insurance„ all cases are expected to be fully covered by insurance and will not have a material impact on the firm or its ability to perform these services. Moreover, in those cases where claims have been resolved by settlement (the vast majority of our eases), the firm is typically subject to confidentiality agreements that prohibit the disclosure of information regarding those matters. Disclosure by the firm of any details about those matters could invalidate the settlement agreements. a. Ar_Iffli a apro;)(,P'I Many organizations view an audit as a requirement that doesn't contribute to their overall operations or value. At CLA, we believe an audit should be an annual check-up that gives you insight into your organization, allowing you to take advantage of opportunities and improve your operations. CLA is one of a few firms that have developed its own proprietary audit program. Our audit teams can customize our audit programs to address the specific risks and unique characteristics of your operation. We do not perform the exact same procedures for every client. In addition, our audit programs are interactive, providing guidance to the staff while they are performing the audit procedures. Our audit approach for year one and subsequent years will have certain consistent elements. However, we expect that the subsequent years will result in fewer audit hours based on the efficiencies gained as we become more familiar with your operations. Our audit objective extends beyond the issuing of an opinion on financial statements. We believe that a good audit yields substantial information for management and is a valuable tool in recognizing opportunities and identifying areas that can be strengthened. An effective audit performed by our team will also provide: • An objective look at your policies and procedures • Valuable suggestions for improvements in your financial operations and other areas • An analysis of trends and unusual variations from year-to-year • Protection for current and future resources through improved internal controls • A deterrent to embezzlement and other fraudulent activities Through careful consideration of the above risks and their interrelationships, we will develop an audit plan and related procedures that concentrate our efforts on those elements of your financial statements that involve the greatest risk. At the same time, we will avoid the unnecessary application of commonplace and traditional procedures to low -risk areas. Throughout the engagement, we will communicate our observations to the City. T'he information we provide is intended to help you better manage your organization, and not just reside in a written report that is filed among your organization's records. Our teams are very deadline driven and have experience meeting and exceeding deadlines from working with numerous similar clients throughout the years. Through upfront planning and coordination with our clients we can establish timelines that meet their needs and enable us to perform our work efficiently and effectively, thus minimizing the disruption to their business. Your time has value. We recognize that you and your teams' day is filled with competing priorities and constant distractions. We elevate your experience by utilizing a variety of communication mediums, such as a web -based document portal, video conferencing, email, and phone calls, to keep everyone informed and on track. These mediums provide ultimate flexibility so that you can choose where and how your audit is performed. In contrast to a traditional engagement, where a team spends weeks on site at your location, our Seamless Assurance Advantage focuses on having the right team members on your engagement and isn't dependent upon any physical locations. Phases and methodology of financial statement audit The CLA audit methodology utilizes a five -phase approach. Methodology. Our audit is performed based on a risk -based approach. We conduct our audits under the concept of "understanding the entity." This concept is based fundamentally on the fact that the City is unique- By understanding the City, we gain the necessary perspective for performing on effective audit. Our audit approach places particular- emphasis on the planning phase to determine maximum efficiency and effectiveness. When performing an audit, we are sensitive and understanding of the fact that we report to those charged with governance. We maintain objectivity and independence in order to be able to issue our audit opinions. We will act within our philosophy of total client service, maintain the professional relationship refined with management, and fulfill our responsibilities with the utmost professionalism. Yearlong support: We encourage your staff to take advantage of our accessibility throughout the year for questions that may arise. Our people, working with you and your staff, can provide proactive advice on new accounting or GAAP pronouncements and their potential impact; help with immediate problems including answers to brief routine questions, and share insights and best practices to assist you in planning for your future success. The assessment phase of an engagement starts when an engagement letter is issued. Upon notice of contract award, we will prepare a contract and engagement letter. We will communicate our plan to start the work and to discuss the audit process. These discussions are intended to accomplish the following: • Identify key management and staff involved in the audit • Identify primary audit liaisons • Introduce our audit team and identify key CI..A contact personnel • Discuss the timetable • Explain our means and ways of communication • Inquire about any issues, which we may need to be aware of • Discuss logistics and administrative matters • Complete a preliminary assessment of risk based on a review of prior year workpapers and knowledge of your organization Through all phases of the audit, we think it is important to have regular communications with the City's management to discuss the status of the engagement. We will provide timely communication of any critical issues, concerns, and potential findings with the person primarily responsible for the area and our audit liaisons. We will be available to meet with key management prior to issuance of the final audit report. This meeting will highlight some of the results of the audit, any outstanding items, and reporting and issuing processes. o I�It �Slh'1 j�9 VII�.aA.�m,. ��I IINIIIInnnIIIIX�BIII�IIIIIImIIIIIIIO�In��IIII�VI�IIWllll'.ao - IWIW i� The main objective of the planning phase is to identify significant areas and design efficient audit procedures. We will accomplish our planning by following the methodology below: • Conduct an entrance meeting with the City's personnel to mutually agree on an outline of responsibilities and timeframes. The agenda will include but not be limited to the following: Establish audit approach and timing schedule Assistance to be provided by the City's personnel - Application of generally accepted accounting principles Initial audit concerns Concerns of the City's management Establishment of report parameters and timetables Progress reporting process - Establish principal contacts Gain an understanding of the operations of the City, including any changes in its organization, management style, and internal and external factors influencing the operating environment. We will utilize reference materials such as the budget and related materials, organizational charts, manuals and programs, financial, and other management information systems • Identify significant accounts and accounting applications, critical audit areas, significant provisions of laws and regulations, and relevant controls over operations • Determine the likelihood of effective Information Systems (IS) - related controls • Perform a preliminary overall risk assessment Confirm protocol for meeting with and requesting information from relevant staff • Establish a timetable for the fieldwork phase of the audit • Determine a protocol for using Team Mate Analytics and Expert Analyzer (TeamMate), our data extraction and analysis software, to facilitate timely receipt and analysis of reports from management • Compile an initial comprehensive list of items to be prepared by the City, and establish mutually agreed upon deadlines We will document our planning through preparation of the following: • Entity Profile. This profile will help us gain an understanding of the City's activities, organizational structure, services, management, key employees, and regulatory requirements • Preliminary Analytical Procedures. These procedures will assist in planning the nature, timing and extent of auditing procedures that will be used to obtain evidential matter. They will focus on enhancing our understanding of the financial results, and will be used to identify any significant transactions and events that have occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to the audit • General Risk Analysis. This will contain our overall audit plan, including materiality calculations, fraud risk assessments, overall audit risk assessments, effects of our IS assessment, timing, staffing, client assistance, a listing of significant provisions of laws and regulations and other key planning considerations • Account Risk Analysis. This document will contain the audit plan for the financial statements, including risk assessment and the extent and nature of testing by assertion • Prepared by Client Listing. This document will contain a listing of schedules and reports to be prepared by the City's personnel with due dates for each itern One of the key elements in the planning of this audit engagement will be the heavy involvement of principals and managers. We will clearly communicate any issues in a timely manner and will be in constant contact with the City as to what we are finding and where we expect it will lead. We will develop our audit programs during this phase. Utilizing the information, we have gathered, and the risks identified, we will produce an audit program specifically tailored to the City. This program will detail by major section the nature and types of tests to be performed. We view our progrars as living documents, subject to change as conditions warrant. N„�N"P'.,x�",",�'� NNfK.R'°�`dy:',7""'�"V;;W� N�'C4;n�"!h!Cr"N'��arli�u�INIWN;w��'��INN�1fi'u�Y�N�,I���'��IIN��GNII��NkN%(IMNIfIP�!E�Ni��Nf�I�NIYCd�VrY4i.Nnfi�N�i'�NdII�I�VI�Nrh���k"�'�;iINN�1111�IG�iiYrN)Y'�N�'�"(�i9191iNNiV�YNkiI���NN�NkNa➢ During the systems evaluation phase, we will gain an understanding of the internal control structure of the City for financial accounting and relevant operations. Next, we will identify control objectives for each type of control that is material to the financial statements, and then identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. Finally, we will determine the nature, timing, and extent of our control testing and perform tests of controls. This phase of the audit will include testing of certain key internal controls: • Electronic data, including general and application controls reviews and various user controls Financial reporting and compliance with laws and regulations We will test controls over certain key cycles. One audit efficiency initiative is to rely heavily on internal controls when appropriate, and to creatively look at internal control testing to make it as efficient as possible. This means not routinely performing detailed tests of transactions using large samples. We first seek to identify key controls, and then identify possible testing through alternative rnethods, such as observation, interviews, and re -performance. These tests serve not only to gather evidence about the existence and effectiveness of internal control for purposes of assessing control risk, but also to gather evidence about the reasonableness of an account balance. We will also develop our internal control tests to assess the compliance with certain provisions of laws, regulations, contracts, and grants for which noncompliance could have a direct: and material effect on the determination of financial statement amounts. Our use of multi purpose tests allows us to provide a more efficient audit without sacrificing quality. Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met: Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets Assets are safeguarded against loss from unauthorized acquisition, use, or disposition Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements We will finalize our audit programs during this phase. We will also provide an updated Prepared by Client Listing based on our test results and our anticipated substantive testing. During the internal control phase, we. will also perform a review of general and application Information Systems (IS) controls for the applications that are significant to financial statements to conclude whether IS general controls are properly designed and operating effectively, and consider application controls as part of the internal control assessment in the financial statement audit. Our strategy for the IS review of the applications will involve reviewing all the general control activities, including the computerized and manual processes. We will determine the scope of work by applying the concepts of materiality and risk assessment to effectively reduce examination inefficiencies. When planning this examination, we will gain an understanding of the City's operations by reviewing its current controls and control objectives as documented and will also review prior years' audit work and the status of corrective actions. Based on our preliminary review, we will perform an initial risk assessment of each critical element in each general control category, as well as an overall assessment of each control category. We will then proceed to assess the significant computer -related controls. I'or IS related controls that we deern to be ineffectively designed or not operating as intended, we will gather sufficient evidence to support appropriate findings and will provide recommendations to improve internal controls. For those IS controls that we deem to be effectively designed, we will perform testing to determine if they are operating as intended through a combination of procedures, including observation, inquiry, inspection, and re -performance. Liu Al I btl, The extent of our substantive testing will be based on results of our internal control tests. It has been our experience that governmental entities, like the City, often have a system of internal controls that, with appropriately designed tests and correlation to account balances, can be used to limit the extent of account balance substantiation testing. Audit sampling will be used only in those situations where it is the most effective method of testing. Before deciding to sample, we will consider all possible approaches and audit techniques. Items where, in our judgment, acceptance of some sampling risk is not justified will be examined 100 percent. These may include unusual iterns or items for which potential misstatements could individually equal or exceed tolerable error. After identifying individually significant or unusual items, we will decide on the audit approach for the rernaining balance of items by considering tolerable error and audit risk. This may include (1) testing a sample of the remaining, balance; (2) lowering the previously determined threshold for individually significant items to increase the percent of coverage of the account balance; or (3) applying analytical procedures to the, remaining balance. When we elect to sample balances, we will use IDEA to efficiently control and select our samples. Our work papers during this phase will clearly document our work as outlined in our audit programs. We will also provide the City with status reports during the audit fieldwork. As in all phases of the audit, we will be in communication with the City to determine that all identified issues are resolved in a timely manner. We will also hold a final exit conference with the City to summarize the results of our fieldwork and review significant findings. oo m Reports to management will include oral and/or written reports regarding: • Independent auditors' report • Management letter • Written communication to those charged with governance, which includes the following areas: Our responsibility under auditing standards generally accepted in the United States of America Changes in significant accounting policies or their application Unusual transactions — Management judgments and accounting estimates — Significant audit adjustments Other information in documents containing the audited financial statements Disagreements with the City The Clty's consultations with other accountants -- Major issues discussed with management prior to retention Difficulties encountered in performing the audit Fraud or illegal acts Once the final review of working papers and financial statements are completed -- a process that actually starts while the fieldwork is in process — our opinion, the financial statements, and management letter will be issued. The City will be provided a draft of any comments that we propose to include in the management letter, enabling you to review the comments for accuracy prior to final release. Any items that come to our attention that are not what we consider major items may be discussed verbally with management and not included in the management letter. Our management letter will include items noted during our analysis of your operations. We will also make a formal presentation of the results of the audit to those charged with governance of the City if requested Sample size and statistical sampling We follow the guidance of AU-C Section 530, Audit Sampling, in using statistical and nonstatistical approach. We use quality control material in all our audit engagements. These ALl-C Section 530 — "Audit Sampling" forms guide our staff through a logical process of assessing inherent risk, control risk, and combined audit risk, followed by an assessment of appropriate sample size for testing. Sample sizes will vary depending on the nature of the testing (compliance versus substantive) and the size of the population being sampled. Sampling techniques are utilized in compliance and internal control testing, as well as substantive testing of certain asset and liability account balances. Sample sizes used for internal control testing depend on a number of factors, namely the number of expected or actual control deviations, size of population, and level of control assurance anticipated. Sample sizes can range from 20 to 90 possible selections. To illustrate, if no internal control deviations are anticipated and the frequency of the population (i.e., the number of times the control is performed in a given year) is less than 100, then we will test 20 transactions in order to obtain moderate control assurance. If 2 internal control deviations are anticipated, and the frequency of the population is greater than 200, then we will test 90 transactions in order to obtain low control assurance. We are usually able to cover a substantial portion of the compliance and controls testing with one sample, resulting in a very efficient approach. Data analytics In addition to standard auditing methodology, a distinguishing aspect of CLA's audit services incorporates the power of data analytics to multiply the value of the analyses and the results we produce for clients. CLA's data methodology is a six -phase, systematic approach to examining an organization's known risks and identifying unknown risks. Successful data analysis is a dynamic process that continuously evolves throughout the duration of an engagement and requires collaboration of the engagement team. Data analytics are utilized throughout our audit process, our (disk Fssessment, oato analytics and Review ("RADAR") is a specific application of general ledger data analytics that has been implemented on all audit engagements. RADAR is an innovative approach created and used only by CLA that aims to improve and replace traditional preliminary analytics that were being performed. The phases in our data analytics process are as follows 1. Planning In the planning stage of the engagement, the use of data analysis is considered and discussed to determine that analytics are directed and focused on accomplishing objectives within the risk assessment. Areas of focus, such as journal entries, cash disbursements, inventory, and accounts receivable are common. 2. Expectations We consider the risks facing our client and design analytics to address these risks. Through preliminary discussions with management and governance, we. develop and document expectations of financial transactions and results forth year. 'Ihese expectations will assist: in identifying anomalies and significant audit areas in order to appropriately assess risk. 3. Data Acquisition Sufficient planning, a strong initial risk assessment, and an adequate understanding of your systems will serve as the foundation necessary to prepare our draft data request list. We will initially request information in written format and conduct follow-up conversations helping CLA practitioners our staff share a mutual understanding of the type of data requested and the format required. If there are going to be any challenges/obstacles related to obtaining data, or obtaining data in the preferred format, they will generally be discovered at this point. 4. Technical Data Analysis Technical analysis of the data requires the skillful blerid of knowledge and technical capability. Meaningful technical analysis provides the engagement team with a better understanding of the organization. The additional clarity assists the engagement team to better assess what is "normal" and, in turn, be better suited to spot anomalies, red -flags and other indications of risk. Analytics generally fall into five categories, each looking into the data set in a different way and deployed with a different purpose. 5. Interpret Results and Subsequent Risk Assessment Trends and anomalies will be identified through the performance of the above referenced analytics. Comments regarding the interpretation of those trends and anomalies will be captured. When trends are identified they are reconciled against expectations. For anomalies identified, the approach to further audit procedures will be considered. 6. Response and Document The last process is to capture responses and determine that our procedures are properly documented. Abstracts, charts or summaries of both trends and anomalies are retained in the audit documentation to support our identification of risks. Our analysis can be tailored and custornized to help analyze an array of information, including client specific and proprietary data. Key benefits of data analytics include: • Built-in audit functionality including powerful, audit specific commands and a self -documenting audit trail • 100 percent data coverage, which means that certain audit procedures can be performed on entire Populations, and not just samples • Unlimited data access allows us to access and analyze data from virtually any computing environment • Eliminates the need to extrapolate information from errors (a common effort when manually auditing data) and allows for more precise conclusions The below figure illustrates typical data analytics scenarios. itnoo nM _ "'y"'. linity by month ,a.co.o. 000 ..roam a aoo a. I — rtrrt - .� Data Analytics. At the end of a series of pre- determined analytics (often retrieved from multiple proprietary accounting systems) that ore customized to the project at hand, we identify anomalies and potential errors in transactions. In every case, we review what appears to be inappropriate activity, including supporting documentation evidencing the transactions. Procedures used to understand internal fvocesscs and controls We understand with a change in the engagement principal and a different approach with CLA would require anew to develop an understanding of the City and its internal control and operating structure. We also strive to develop our understanding in the least intrusive manner possible, while still maintaining our professional responsibilities. We would utilize a combination of internal control forms and interviews with key accounting personnel to gain and document our understanding of the City. We will also use as a baseline any existing internal control processes, policies, organizational charts, etc. the City may have already documented. Tests of design and operating effectiveness would then be performed to confirm our understanding. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a framework for internal control systems. Under COSO Internal Control: the COSO framework, internal control is a process to provide reasonable Integrated framework assurance that those internal objectives, including effectiveness and efficiency of business operations, reliability of financial reporting, and compliance with applicable laws and regulations, will be met. Our audit approach is designed to evaluate and test the departmental internal controls in accordance with COSO concepts. Our procedures include a review of the overall control environment, determination of the internal controls which are determined to be direct and material to the federal program under review, determination of the adequacy of those procedures, and testing of the procedures to determine if they are functioning as designed. During the planning and internal control phases of our audit, we will develop our understanding of the City's business operations and internal control structure for financial accounting and relevant operations through observation, discussion, and inquiries with management and appropriate personnel. During this phase of the audit, we will review budgets and related materials, organization charts, accounting and purchase manuals, and other systems documentation that may be available. Once we understand your operations, we will then identify control objectives for each type of control that is material to the financial statements. The next step will be to identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. We will then determine the nature, timing, and extent of our control testing, and perform tests of controls. This phase of the audit will include extensive testing of controls over transactions, financial reporting, and compliance with laws and regulations. Whenever possible, we will use dual-purpose tests to reduce the need to select multiple samples for internal control and compliance testing. We will be as efficient as possible, thereby reducing the disruption to your operations while achieving our audit objectives. Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met: • Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets • Assets are safeguarded against loss from unauthorized acquisition, use, or disposition • Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements Our workpapers during this phase will clearly document our work through the preparation of the following for each significant transaction cycle or accounting application: • Audit program • Cycle memo and supporting documentation • Account risk analysis (ARA) • Specific control evaluation (SCE) Approach to be taken in determining laws and regulations Mat will be subject to audit test work We will obtain an understanding of the laws and regulations that have an impact on the City's operations by reviewing council minutes to identify any ordinances or resolutions that might have an impact to operations and reporting by the City, as well as interview key personnel and management of the City. Additionally, the staff assigned to the engagement attend regular trainings and are well versed in upcoming legislation, federal and state laws (i.e. Uniform Grant Guidance) and proactively discuss these upcoming changes with our clients. We will also review current operations, contracts and IGA's that may have an impact on current operations. Identification of anticipated potential audit problems In situations where authoritative guidance on a particular transaction or accounting issue is unclear or subject to interpretation, our approach is to proactively meet with management to discuss the issue and reach a conclusion that is hopefully agreed upon by both parties. We do not have specific "firm policies" that dictate our conclusions to be reached on all complex accounting issues. Rather, each issue must be evaluated independently by our engagement team. As discussed above, we will not only meet internally, but also facilitate discussion with the City's management team in order to obtain a mutual understanding of the particular accounting issue, determine the applicable authoritative guidance that most closely relates to the issue, and strive to reach an approach agreed upon by both parties. If there still remains any ambiguity or disagreement, we can explore other resources that could possibly assist, such as subject matter professionals within the Government Accounting Standards Board staff or the Government Finance Officers Association (GFOA) or perhaps other municipalities who may have dealt with similar issues. Use of technology io the audit We're reimagining the audit process through technology to elevate your experience! lil�grl�ilil�l II�iI�IIIIII�III�I�IV�IIyIIIV I�I�IgVd,�l, �I�I�Ilillljjjliii IpI i���I �Plllr�'' �IIIII�I4�I����114ipll i�l�lil III�iV��"l il��i�li�'PFVIiii lli lP 11 jiiVilll.. I' `y� jI �lil�ii�l Ili ili �iiililllll ilillllli lllllil�. ���yi�llllj�%l�illlil;llilill��lliil�ylil�}I'I'll�'�IIII I�II�l�gll lly� i V li li I i;lip:, Illiulllll. Dili 111 ip III�II I,I iIIIIIV�iII l'lll�llll�i +, p tlµ iIIJy'lll���lilll°Ilii llllli llllliilllll'iyilllllil��l�ul'' I I6 111 �l II�'�I,Iilalull iiT� iiil�Iq�IT'���1'�Ir�iar�i�W��B!'III,iIVII l 1111 I li ii liii l� l�Nll�ly, i P iiii�il iullll ilIIIIIililill ul��IIi IIIIV!u'll Assurance Information Exchange (AIE) --- To make working with CLA a seamless experience, our team utilizes a proprietary, secure web -based application to request and obtain documents necessary to complete client engagements. 'I his application allows CLA and our clients to view a live client assistance letter client, which provides detailed information, including due dates for all the open items CLA is requesting. Additionally, clients can attach electronic files and add commentary related to the document requests directly on the application. Follow the link to view a brief tutorial of the nssurzux,e Information rxchanf�e. Microsoft' Teams -- Our services approach focuses on impactful interactions. We've said goodbye to the days of setting up camp in our clients' conference rooms for weeks on end. We know our clients have organizations to run, so our interactions have purpose. To assist with communications when we are not onsite, we utilize tools such as Microsoft Teams, which allow for two-way screen sharing and video. We've found this helps minimize disruptions in our clients' environments while continuing to effectively communication with each other. TeamMate Analytics and Expert Analyzer (TeamMate) --- To analyze p and understand large data sets, we use TeamMate Analytics and Expert Analyzer. We customize the application by industry in order to perform c.nN:000:w the most applicable procedures. This allows us to go beyond sampling and instead analyze the entire general ledger for targeted anomalies.�I„�� Far beyond the audit application, our six -phase process of Risk Assessment, Data Analytics and Review (RADAR) can also provide actionable insights to help you understand your entity better. '�/A77 dAry�lcn! i/OS� PIVMe„� Commitment to Communication with Management As you will see, we are committed to ongoing communication throughout the engagement. Continual communication starts when an engagement letter is issued, continues until the completion or closeout of an engagement, and throughout the remainder of the year. We believe effective communication is critical to a successful engagement. This communication includes the exchange of ideas and advice as changes are considered or implemented by the entity or the accounting profession. During the engagement we will hold regular status meetings with the City to enhance day-to-day operations, to communicate results, and to ensure that any issues are commonly understood and addressed. The objectives of tracking and formally reporting the engagement status are to: • Provide a consistent technique for monitoring progress against plan • Identify any issues quickly to allow for timely corrective action • Provide an objective rather than subjective evaluation of status • Provide timely information on a regular basis • Assist with obtaining buy -in of any audit recommendations on a timely basis Working rernotely under special circumstances CLA exists to create opportunities for our clients, our people, and our communities. For several years now we have fostered a remote culture throughout the firm understanding that flexibility to work remotely enables us to better serve our clients under a variety of circumstances. In fact, we had already implemented a number of tools, before the Covid-19 pandemic developed, such as Assurance Information Exchange (AIE) and MicrosoftO Teams, which we utilize to provide seamless service to our clients. As we continue to navigate, these uncertain times, CLA will work with the District to determine the correct balance of in -person and remote field work to best meet the District's needs. If onsite work is performed, a senior supervising auditor will be on site for 100% of the time when procedures are performed, and the principals will be available throughout field work. Whether we are working, with the District remotely or in person, CLA is committed to performing your audit services and meeting your deadlines. L. .a 4'.f;f ila �ill_cYQIiYI, 4,I1R 4' iVdi, d[o6 4.iDB1"I pQt'il4]iY drkl E_1 "'; An important distinction between CLA and other firms is the amount of principal and manager involvement in the engagement. Because our principals and managers are directly involved in the engagement during fieldwork, we can proactively identify significant issues immediately and resolve them with management so that the engagement is essentially complete when fieldwork ends. We expect that the majority of our audit hours will be concentrated in the high -risk audit areas. Our approach is not to overwork every account: with extensive substantive testing. While substantive testing remains part of the process, we think out -of -the -box analytically, identify relationships and truly learn about your operations. Assuming that the interim fieldwork commences in late May or early June and final fieldwork commencing in October, the following is an abbreviated suggested timeline and milestones to meet the deadlines listed in the RFP: Entrance conference Principal / Manager May 31 Preliminary risk assessment and initial audit plan Principals / Manager June 30 SETA review & major program determination Manager / Senior December 1S Understanding of the City's internal controls Manager/ Senior June 30 Perform walkthroughs and internal control testing Senior/ Staff June 30 Evaluate information system controls Manager / Senior .tune 30 Final risk assessment and comprehensive audit plan Principal / Manager June 30 Exit Conference to discuss interim fieldwork results Principal/Manager June 30 Single Audit major program internal control and compliance testing Senior/Staff January31 Financial Statement substantive testing and analytical Senior/Staff November IS procedures Exit Conference to discuss final fieldwork results Principal / Manager November 15 Drafting reports (, Management Letter, Single Audit, other deliverables) and required communications Manager / Senior November 30 Detailed review of work Principal / Manager November 15 Communications with management Principal / Manager November 15 Finalization of reports and required communications Principal / Manager December 10 Reports to be issued and due dates We make a commitment to issue the reports by the due dates specified below with interim fieldwork in May/June and final fieldwork completed by NovemberiS for the June 30 year end audits Independent Auditor's Report on City of Santa Ana Financial Audit n/a December 10 Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and other matters based on an Audit of November 30 December 10 Financial Statements Performed in Accordance with Government Auditing Standards Communication to those. in charge of governance (Audit Committee November 30 December 10 Letter) Single Audit Report: Independent Auditors' Report on compliance for each major program and internal control over compliance required by Uniform Guidance, February 15 February 28 formerly OMB Circular A-133 Air Quality Improvement Fund (AQMD) November 30 December 10 GANN Limit computation November 30 December 1.0 Investment Policy Compliance Review November 30 December 10 U.S. Department of Housing of Urban Development (HUD) Real Estate Assessment Center (REAC) submission attestation and review of HUD n/a February 28 Financial Data Schedule (FDS) for the Housing Authority Annual State Controller's Report n/a January 31 Measure X (Sales Tax) Compliance Report November 30 December 10 Agreed -Upon -Procedures Report TBD TBD d. of hou' A Proposed staffing plan and segmentation of the audit hours by principal and staff level are as follows: City audit, including management and audit committee letters 50 100 610 10 770 Single Audit of Federal Grants 12 40 220 3 27S AQMD Audit of the Air Quality Improvement Fund 1 4 24 -• 29 GANN Limit Review -- 1 8 -- 9 Compliance Review of the City's Investment Policy 2 12 16 -- 30 Preparation of the Santa Ana Housing Authority's Financial Data Schedule 2 4 6 MeasureX— Agreed -Upon Procedures 4 8 36 2 50 Preparation of the City's State Controller's Report -- 8 40 -- 48 Total Hours 71 177 954 is 1,217 Two Agreed -Upon Procedures Reviews, Annually (1) 8 18 108 4 138 (.1) The hours for agreed -upon procedures are estimated and subject to negotiation once the scope of each agree -upon procedures are determined. Proposed staffing plan and segmentation of audit hours by principal and staff level by phases are as follows City audit and related reports Phases 1 and 2 Phase 3 Phase 4 Phase 5 Measure X Single Audit Total Hours 3 8 8 1 20 12 24 130 -- 166 12 32 440 484 28 65 1.20 9 222 4 8 36 2 50 12 40 220 3 275 71 177 954 15 1,217 �17l� c I �, � , i, -', 'I , V [r, c, J,)o q'dai 'I a, (b,lt hreakdov,/ii by r,ll't Wear City of Santa Ana EXHIBIT B SCHEDULE OF PROFESSIONAL FEES AND EXPENSES The compensation for financial auditing and report preparation services to be provided in each fiscal year, in accordance with this agreement, is shown below ... ....... . . ....... Option Years -Description of Services FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 City audit, including management and audit committee letters $100,850 51.04,025 5107,295 5110,66S Single Audit of Federal Grants 33,480 39,635 40,82S 12,050 AQMD Audit of the Air Quality improvement Fund . -.- ... . ...... - . ... ...... .............................. . . GANN Unit Review 3,475 895 3,580 920 21,690 . ..... ....... . . - 950 3,800 980 Compliance Review of the City's investment Policy 4,550 4,685 4,825 4,970 Preparation of the Santa Ana I ousing Authority's Financial Data schedule .. . ....... . . ..... . Measure X Agreed Upon Procedures -1111111 .......... ... ....... -- -- ---------- Preparation of the, (ity's state. Controller's Report 1,350 7,020 . . ........... .. S,600 1,390 ........ . 7,230 S"/70 1,420 . . ....... . 7,445 5,945 1,475 7,670 6,120 Two Agreed -Upon Procedures Reviews, Annually (1) 19,040 19,610 20,200 20,805 Maximum Not -to -Exceed Total Fee .... . ... . ..... $181,260 $186,8413 $192,605 $198,535 (1) The. hours and fees for the agreed -upon procedures are estimated and subject to nego tio tion once the scope of each agreed - upon procedures ore determined. The City, during the term of this agreement, may request that Consultant provide special services in accordance with the provisions of this agreement. If Consultant agrees to perform the special services, the Consultant's hourly fees to perform these services for the term of the agreement are as follows unless a lesser fee is agreed to in a separate agreement between the City and Consultant. Title FY 2020-21 FY 2021-22 Option Years FY FY 2022-23 2023-24 Partners Managers $275 200 $283 206 $292 212 $300 219 Supervisory staff ISO 155 159 164 Staff Auditor 100 103 106 109 Clerical 60 62 EA 66 Expenses: All exoenses incurred by the Consultant in nerforminis the sPrvirpq in Acrordancp with this igrPprriprit are included in the above annual fee quotes. These expenses include, but are not limited to: meals and lodging, transportation, communications, report preparation, word processing, and printing, and postage. ..... ..... ... . - - THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. Our fees are based on the timely delivery of services provided, the experience of personnel assigned to the engagement, and our commitment to meeting your deadlines. CLA understands the importance of providing our clients with value-added strategies. We propose to provide routine, proactive quarterly meetings — as part of our fee — that will allow us to review and discuss with you the impact of new accounting issues, as well as any other business issues you are facing and how they should be handled. This level and frequency of interaction will no doubt enable CLA to help you tackle challenges as they come up and take full advantage of every opportunity that presents itself. We have found over the years that our clients don't like fee surprises. Neither do we. We commit to you, as we do all of our clients, that: • We will be available for brief routine questions at no additional charge, a welcome investment in an on- going relationship. • Like most firms, we are investing heavily in technology to enhance the client experience, protect our data environment, and deliver quality services. We believe our clients deserve clarity around our t technology and client support: fee, and we will continue to be transparent with our fee structure. • Any additional charges not discussed in this proposal will be mutually agreed upon up front. • We will always be candid and fair in our fee discussions, and we will avoid surprises. h Y�c7r'>¢.,.tp:,Ver�la�,lt.,�l sc�rvic>s It is not our policy or practice to bill our clients every time we receive a phone call. In the course of providing our services to you, we will regularly consult with you regarding accounting, financial reporting, and significant business issues. If a specific project is complex or requires significant time or resources, we will discuss the scope of the project and its fee with you first to make, sure there are no surprises. While it is difficult to establish an exact policy for billing in these situations, we commit to discussing the request with you in advance of performing our services if we believe the time requirement to provide you the desired assistance is other than routine. We will discuss the scope of the project and our estimate to complete it prior to commencing work. We have a 24 to 48-hour response policy to return calls and emails from our clients to provide effective and timely communication. If the person you need to talk to is not available at the time you call, we will contact him/her and have him/herget back to you. We have a number of qualified professionals on our staff who can provide you with timely and competent assistance. Our last word on fees --- we are committed to serving you. Therefore, if fees are a deciding factor in your selection of an accounting firm, we would appreciate the opportunity to discuss our audit plan. At CLA, it's more than just getting the job done. Attachment A: References, is submitted in this proposal under the following Section 7, References. Attachments B through E: are submitted in this proposal under the Appendix. Exhibit B: Schedule of Professional Fees and Expenses, is submitted hereinabove as part of Section 5, Cost Proposal as 5a. Cost breakdown by contract year. �r RkI�",°�'(4a'�� aCITY OF SANTA AN,A ATTACHMENIA REFERENCES List and describe fully the contracts performed by your firm which demonstrate your ability to provide the supplies, equipment or services Included in the scope of the proposal specifications. M-021 additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference Custornor Name: City of Glendale Contact Individual: Shu-Jun Li Address: _.141 Nnnh Glendale 9 ilp 346.. Phone Number 818-SSL3048 Glendale, CA 91206 Facsimile Number: Contract Amount: S111,050 _ Year: 2020 _ Description of supplies, equipment, or services provided: City, Electric and Water Enterprise Fund. ]CIS and Single Audit, Reference City of Burbank Dino Balos Customer Name,: Contact individual: _ Address: 275 Easl Dlivn Ave. Phone Number: 818 238-5518------- ................._............... ............ ......._..___ Burbank. CA 9t502 Facsimile Number Contract Amount: $133.160 Year: 2020 Description of supplies, equipment, of services provided: City, AGML). Water and Utility Enterprise Fund , Measure P AUP, Investment Compliance AUP and Sinnle Audit Reference Customer Name: City of Victerville Contact Individual: Bobby Magee Address: _14343 Civic Dr. Phone. Number: '7Rn_US ,_tieti5 _ Victowille. CA 92392 Facsimile Number Contract Amount, $135.680 Year: 2020 Description of supplies, equipment, or services provided: rAy t r. iue mm.A, n,a..a. .,,ten ,,c�.dhec[vCaGfornia_Lulpist., ni.r....I n,,.��lo THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL PROPOSALS THAT DO NOT CONTAIN THIS -FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21 � 024 Professional Auditing Services Page 29 of 34 rI l� pM'f iC In1IpridaII1.,i'="iC .rV'Ilp'i( "�I,V CLA is financially stable. As one of the largest certified public: accounting and consulting firms in the nation, CLA prides itself on conducting its business in a fiscally responsible manner and has built a solid fiscal foundation. We proactively plan for fiscal challenges by monitoring operation costs, controlling expenditures, reviewing, and adjusting costs, and maintaining financial reserves. While recent turmoil in certain economic sectors has created challenging conditions for all businesses, CLA remains financially strong. CLA has annual revenues in excess of $1.1 billion and employs more than 6,200 professionals at over 1.20 locations throughout the United States. As a privately held company we do not provide financial information outside of the company. CLA is in good standing and maintains a D&B rating of 5A1. CliftonLarsonAllen LLP carries commercially reasonable amounts of general liability and malpractice (aka professional liability) insurance. If requested, the firm will provide a certificate of coverage for an amount specified by the City upon being engaged. Use of subcontractor We do not anticipate using any subcontractor, association, or affiliate member firm personnel on your engagement. Additional services In addition to the services outlined in this proposal, CLA collectively offers a wide breadth of highly customized services and capabilities to meet our clients' wants and needs, including a sampling of the following: • ACA Reporting • Financial statement and forensic audits • Fraud risk assessment and investigations • Implementation assistance for complex accounting standards • Internal audit, risk assessments, and evaluations • IT security and network vulnerability assessments + Operational and financial systems consulting • Operations and performance improvement • Organizational and financial health assessment • Outsourced accounting and public administration • Self -insured medical and PBM claim audits • Strategic, business, and capital planning • Strategic, financial, and operational consulting • Training and educational seminars • Telecom cost savings assessments We pride ourselves on taking the initiative to meet each and every need of our clients, and therefore are always prepared to take on additional projects. However, independence is our first concern when providing additional services. Independence can easily become impaired when providing consulting services; therefore, we do not provide any services to our audit clients beyond those allowed. If additional work is requested by the City outside of the scope of the audit, we will discuss with you our proposed fee for additional services prior to beginning the new services. pp f b n dix p I I g,l t- c t 1 V e 1) 1, to I rn b i o,6 a p hie', (aA ((. I i I 1 on l.a rconAllen UP) Audit and Assurance Principal Irvine, California P o fGo cr 714-795-5474 daphnie.munoz@CLAconnect.com Daphnie is an assurance principal at our CLA's Irvine office, formerly White Nelson Diehl Evans LLP (WNDE). She joined the White Nelson Diehl Evans LLP in 199& She earned her CPA designation in 2001 and became an Audit and Assurance Principal in 2011. A key figure in the firm's Government Audit Practice, Daphnie works closely with Government entities to provide thorough attestation services, including single audits. She has extensive experience with a wide range of local government related audit engagements, including cities, successor agencies/redevelopment agencies, federal grants, special districts, compliance audits and agreed -upon procedures engagements. Daphnie lives in Fullerton with her husband Joe, and their two sons. In her free time, she enjoys spending time with her family. i eC(hnic.al, ST.P"1lVCe, and m0.' uU t:y • Government entities, including nonprofits and special districts Q dul(ciElt,(I mI1 I l.r. Cife—'Il(i o;_I� jIly ?YvQ,rlJont • Bachelor of science in accounting from De La Salle University, Manila • Certified Public Accountant in the state of California • American Institute of Certified Public Accountants (AICPA), member • California Society of Certified Public Accountants (CaICPA), member • California Society of Municipal Finance Officers (CSMFO), member + Government Finance Officers Association (GFOA), member dr)cal F;overriroenl expo, feq)(e Cities: • Cerritos • Filmore • Colton • Glendale a Del Mar O Hesperia Special Districts: • El Toro Water District • Fairbanks Community Services District • Grossmont Healthcare District • I-leber Public Utilities District • Midway City Sanitary District • Placentia library District • Lake Forest • Palos Verdes Estates • Lancaster • Pico Rivera • Murrieta • Torrance • Rancho Santa Fe Community Services District • Valley Wide Recreation and Park District • Vista Irrigation District • Whispering Palms Community Services District • Yorba Linda Water District CI A (( hflonl ,vronAilr-n 1 t_P) Principal 714-795-5382 Irvine, California kassie.radermache.r@CLAconnect.com Kassie is a principal at CLA's Irvine office, formerly White Nelson Diehl Evans (WNDE). She has been practicing public accounting since 2005 and joined the firm in 2009 where she currently serves in the audit department. She is skilled in performing all phases of local governmental audits including cities, special districts, successor/redevelopment agencies, single audit of federal grants, compliance audits and agreed -upon procedures engagements. As an audit and assurance principal, Kassie is involved with planning the audit, performing fieldwork for all aspects of the audit, supervising staff accountants and preparing financial statements. dot lmk al experocn e . Local government, including cities and special districts ..(hical-ion zind Orr)$osle)lwl ItwOdeit�rrl�i a't • Bachelor's degree in forensic science with an emphasis in crime scene analysis from West Virginia University • Master of professional accountancy from West Virginia University • Certified Public Accountant in the states of California and Virginia • Certified Fraud Examiner • American Institute of Certified Public Accountants (AICPA), member • Association of Certified Fraud Examiner, member • California Society of Municipal Finance Officers (CSMFO), member • California Society of Certified Public Accountants (CaICPA), member Cities: • La Canada Flintridge • Laguna Beach Special Districts: • San Juan Capistrano • Santa Ana • Casitas Municipal Water District • Mesa Water District • Midway City Sanitary District • Orange County Mosquito & Vector Control District • Orange County Water District • Public Cable Television Authority • Stanton • West Hollywood • Laguna Hills • Victorville • Westminster • Serrano Water District • Western Municipal Water District • Western Riverside County Regional Wastewater Authority • Westside Cities Council of Governments • Yorba Linda Water District ['6NI"A'11,I%,rtl i:l't,31r�� C" "h CI_/a (C lihonl arson/AIl,�n i_LF) Manager Irvine, California N hk 71.4-795-5458 rob.perl@CLAconnect.com Bob is an assurance manager at CLA's Irvine office, formerly White Nelson Diehl Evans (WNDE). He has more than 1.4 years of experience in performing audits and J consultations for government agencies and non-profit organizations, including single audits. He is also well versed in data analytics and cybersecurity forfinance and accounting. His diverse client base includes organizations in the non-profit, governmental, financial services, manufacturing, distribution, and agriculture industries. r-t::Yo uoc:a0 expe,iefIi.i, • Local government agencies, including cities, nonprofits, and special districts • Financial services • Manufacturing and distribution • Agriculture • Data analytics • Cybersecurity for finance and accounting Edt caLiofr ar-Id Itviilvome'IefJ • Bachelor of accounting from Brigham Young University, Laie, Hawaii • American Institute of Certified Public Accountants (AICPA), member • California Society of Certified Public Accountants (CaICPA), member p r co; govei r ril 'ienl_ r xpnJ u c rtCc Cities: • Burbank • Lancaster • Santa Ana • Gilroy • Murrieta • Victorville Special District: • Monterey Peninsula Regional Park District Additionally, Mr. Perl also served as the senior audit manager on the following nonprofit audits during 2019: Nonprofit Entities-- • Catholic Charities of Orange County, Inc. • United Cerebral Palsy Association of Orange County • Child Abuse Prevention Center • Orange County Council, Boy Scouts of America • YMCA of Orange County ('LA (C Idl ml_a r;oiiAlli�n LLP) Senior Irvine, California ProfoPt" 71.4-795 5357 n icole. racine@CLAconnect-com Racine is a senior at CLA's Irvine office, formerly White Nelson Diehl Evans (WNDE). She been with the firm since 2017. Racine has performed all phases of audits including cities, single audit of federal grants, special districts, compliance audits, and agreed - upon procedures engagements. She has been involved with planning the audit, Performing fieldwork for all aspects of the audit, and preparing financial statements. Yew he-�ou Jul t°xpat�'ric'.I'tR�et • Local government, including cities and special districts dLlr;Ifl,r3to rmd pmfia'>s'Ion al mvolvf'rne�m; • Bachelor of art from California State University, Fullerton • Certified Public Accountant in the state of California • American Institute of Certified Public Accounts (AICPA), member • California Society of Certified Public Accountants (CaICPA), member Cities: • Chino • Monterey Park • Tustin • Del Mar • Palos Verdes Estates Special Districts: • Coachella Valley Water District • Laguna Beach County Water District Fri t,.0 17, 'v 0�. (h.u��g,�a, i�. �2,i�lrti �..� CLA (t illunl,drSoiiAllrrn I I.I') Principal, Business Risk and IT Services Phone 717-558-0860 Harrisburg, Pennsylvania james.kreiser@CLAconnect.com -Dr -ofIIe Jim is a principal in the Clifton LarsonAllen LLP (CLA) specialized advisory services group. He has 22 years of professional services experience in providing consulting and advisory services. Jim spent 10 years of his experience working at a Big 4 firm in their business risk and technical risk services groups. His experience also includes internal audit roles at CitiBank, AMP, and Capital BlueCross. Jim has held roles of chief risk officer, general auditor, and others. His focus has primarily been in the governmental sector, health care, and financial institutions. At CLA, Jim has focused on clients particularly on consulting, IT, internal audit, and third -party reporting services. Some of the key clients Jim has focused on include the Pennsylvania State System of Higher Education, Commonwealth of Pennsylvania, State of Rhode Island, Maryland Department of Budget and Management, West Virginia Higher Education Policy Commission, State of Delaware, 1-Iaverford College, California Housing Finance Agency, Washington State Department of Transportation, Maryland Transportation Authority, and many others. rel hni(,al rt�XBtit�tit�faG:P Jim's experience includes managing and leading projects, which include engagements related to outsourced and co -sourced internal auditing, IT audit, third -party reviews and performance audits, enterprise risk management processes, IT security and auditing services, SSAE 16 reporting (SOC 1 and SOC2), operational improvements, process solutions and implementation for those solutions across the organization. His primary focus for the firm is in the Public Sector Group (State and Local Government, Higher Education, and Non -Profit organizations). His service experience is business risk, IT, and internal audit services. Specific experience includes, but is not limited to, the following: • Internal audit outsourcing and co -sourcing, including, information technology, financial, performance audits, and operational audits. • IT security and risk consulting • Enterprise -wide risk assessments. • IIA Quality Assurance Reviews (OAR) • Vendor management and Implementation Assessment • Compliance related activities and benchmarking • Presentations and Training; including speaking at various conferences/professional organizations on 11' controls, Security, ERM, and third -party reporting, and risk management. H u tliofj ;-I,tl-0 prok'.tiJoinl hnvt1MmlcI fa • Bachelor of science, Carnegie Mellon University-. Pittsburgh, Pennsylvania o BS of managerial economics o BS of philosophy • Certified Information Systems Auditor • Certified in Risk Management Assurance • Certified Financial Services Auditor CLAconnect.com WEALTH ADVISORY I OUTSOURCING I AUDIT, TAX, AND CONSULTING "° A p[ Nexia I vcst I, iert t advisory Sery res are Offgrnrl [hrJuQh Cfiftonl xr ,,Allen Wealth AnmOrJ, LLC, •v Ir r,0 jnal an SEC we..sterea lnvesmiem anvreor_ Al f: ;A c i ry O i , P )Y � d I V> r o q, h E: ,,m"iWmffMMMEE9ftN0=L CITY OF SANTA ANA ATTACHMENT B PROPOSER'S STATEMENT Proposer understands and agrees that this written RFP (or any part thereof specifically designated and accepted by the City of Santa Ana, hereinafter City) shall constitute the entire agreement between proposer and the City only after it has been accepted by the City Council, endorsed by the Clerk of the Council with her signature and official seal noting hereon the action of approval of the Council, signed by the Executive Director or his duly authorized agent, and signed by the City Attorney, denoting his approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to proposer or deposited with the United States Postal Service property addressed to the proposer with the correct postage affixed thereto. Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish City all required bonds and certificate of liability insurance within ten (10) days (excluding Saturdays, Sundays and Citys legal holidays), or the funds, check, draft, or proposer's bond substituted In lieu thereof accompanying this proposal shall become the property of the City and shall be considered as payment of damages due to the delay and other causes suffered by City because of the failure to furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by City is difficult to ascertain; otherwise said funds, check drafts, or proposer's bond substituted in lieu thereof shall be returned to the undersigned. Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. All terms contained in the specifications, the certification of nondiscrimination by contractors, and the required insurance certificates are to be incorporated by reference into this agreement and are made specifically as part of this RFP. LLP Signed and Printed Name: Title Date M CPA THIS FORM MUST BE COMPLETED AND INCLUDED WITH THE PROPOSAL. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No. 21-024 Professional Auditing Services Page 30 of 34 CITY OF SANTA ANA ATTACHMENT D NON -LOBBYING CERTIFICATION The prospective participant certifles, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have boon paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to Influence an officer or employee of any Federal agency, a Member of Congress, an officor or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in conformance with Its instructions. "f his certification is a material representation of fact upon which reliance was placed when this transaction was made or entered Into. Submission of this certification is a prerequisite for making or entering Into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10.000 and not more than $100,000 for each such failure. The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be Included in all lower tier subcontracts, which exceed $100,000 and that all such subrecipients shall certify and disclose accordingly. Signed: Title: Printipat Firm' (;lihnn(8rsonAltpn1,1,1' Dale: THIS FORM MUST BE COMPLETED AND INCLIIDED WITH THE PROPOSAi�. PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE, RFP No. 2 f-024 Professional Auditing Services Page 32 of 34 (a CITY OF SANTA ANA ...... -..... ATTACHMENT E NON-DISCRIMINATION CERTIFICATION The undersigned consultant or corporate officer, during the performance of this contract, certifies as follows! 1. The Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Consultant agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Consultant shall, In all solicitations or advertisements for employees placed by or or. behalf of the Consultant, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin- 3- The Consultant shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Consultant's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. 1"he Consultant shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Consultant shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Consultant's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Consultant may be declared ineligible for further Government contracts or federally assisted construction contacts In accordance with procedures authorized In Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies Invoked as provided in Executive Order 11246 of September 24, 1965. or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. RFP No. 21-024 Professional Auditing Services Pago 33 of 34 y°f CITY OF SANTA ANA The Consultant shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) In every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor Issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965. so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, Including sanctions for noncompliance; provided, however, that In the event the Consultant becomes involved in, or is threatened with, litigation with a subconsultant or vendor as a result of such direction by the administering agency, the Consultant may request that the United States enter into Such litigation to protect the interests of the United States- 8- Pursuant to California Labor Code Section 1735, as added by Chapter 643 Slats. 1939, and as amended, no discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any consultant of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter. Signed: /t)„ �.,(Lm�a_, �iy�•y,iiz % _ Title: Principal Firm: CliftonLarsonr111en I_LP Date: Mark 15, 2021 THIS FORM_MUST. BE CQMPLETED AND INCLt16ED WITH THE PROPQSAL, PROPOSALS THAT DO NOT CONTAIN THIS FORM WILL BE CONSIDERED NONRESPONSIVE. RFP No, 21-024 Professional Auditing Services Page 34 of 34 Police Department https://www.santa-ana.org/pd Item # 16 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: FY 2021 Homeland Security Grant Program Funding AGENDA TITLE: Approve a Resolution, Appropriation Adjustment and Agreement for Fiscal Year 2021 Homeland Security Grant Program Funding in the Amount of $4,993,750 (Non -General Fund) RECOMMENDED ACTION 1. Adopt a resolution authorizing the City Manager and the Chief of Police, or his designee(s), to enter into an agreement with the State of California, California Governor's Office of Emergency Services (Cal OES) for the FY2021 Urban Areas Security Initiative (UASI) funding program, for the period of October 1, 2021 through September 30, 2024, in the amount of $4,993,750, of which $715,000 is obligated to the Orange County Intelligence Assessment Center. 2. Direct the City Attorney to prepare and authorize the Chief of Police and the Clerk of the Council to enter into reimbursement agreements for all grant related program and project activities, to include planning, organization, equipment, training, exercise, and management and administration costs, with the County of Orange or any of the cities located in the designated Anaheim/Santa Ana Urban Area subject to non -substantive changes approved by the City Manager and City Attorney. 3. Approve an Appropriation Adjustment recognizing $4,993,750 in the FY 2021 Urban Area Security Initiative revenue account (no. 12514002-52001) and appropriate same to expenditures accounts (nos.12514407 — various). DISCUSSION The United States Department of Homeland Security (DHS) developed the Urban Areas Security Initiative funding program (UASI), which provides funds to local emergency first responders to enhance security and overall preparedness to prevent, respond to, and recover from acts of terrorism. The grant specifically provides funding for anti -terror equipment, planning, training, exercises and technical assistance. In FY 2006 the United States Department of Homeland Security (DHS) combined the Anaheim UASI and the Santa Ana UASI into a single Urban Area. The City of Santa Ana City Council 16 — 1 5/4/2021 FY 2021 Homeland Security Grant Program Funding May 4, 2021 Page 2 will continue to be designated as an Urban Area Core City and will share grant administrative responsibilities with the City of Anaheim. The City of Santa Ana Police Department has worked with the City of Anaheim, the County of Orange, and cities within the Anaheim/Santa Ana Urban Area to determine current capabilities and needs, and have established goals and objectives for the Anaheim/Santa Ana Urban Area. The Police Department will work in collaboration with the City of Anaheim to develop projects and implement complimentary strategies for responding to acts of terrorism. In addition to new projects, much of the grant award is allocated to sustainment projects, personnel cost, and training and exercises. Total funding for the UASI Grant Program is established through an Appropriation Act set forth by Congress. Award amounts for each Urban Area are determined using a methodology assessing relative risk of terrorism, in accordance with the 9/11 Act. Over the years, Congress has steadily decreased the amount of funding allocated to DHS and subsequently the UASI Grant Program. As a result, the total number of Urban Areas and the award amounts have been greatly reduced. Santa Ana's UASI award amount has steadily decreased from a high of $25,254,334 in 2004 to the current award amount of $4,993,750 for FY2021. For the FY2021 UASI grant program, the City of Santa Ana will be awarded funding in the amount of $4,993,750 of which, $715,000 is obligated to the Orange County Intelligence Assessment Center. The FY 2021 grant will cover the period of October 1, 2021 through September 30, 2024. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The appropriation adjustment will recognize $4,993,750 in the FY 2021 Urban Area Security Initiative revenue account (no. 12514002-52001) and appropriate same to expenditure accounts (nos. 12514407-various) for the following fiscal years. Fiscal Year Accounting Unit -Account# Accounting Unit, Account Description Amount FY 2021-22 12514407 - 61040 FY21 UASI Grant Program $10,000 FY 2022-23 12514407 - Various FY21 UASI Grant Program $3,488,625 FY 2023-24 12514407 - Various FY21 UASI Grant Program $1,495,125 Total $4,993,750 EXHIBIT(S) 1. Resolution Submitted By: David Valentin, Police Chief Approved By: Kristine Ridge, City Manager City Council 16 — 2 5/4/2021 Exhibit 1 RESOLUTION NO. 2021-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER AND THE CHIEF OF POLICE OR THEIR DESIGNEE(S) TO EN I ER IN I O AN AGREEMEN I WI 1 H I HE SIAIE OF CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES FOR THE FY2021 URBAN AREA SECURITY INITIATIVE FUNDING PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS' Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The United States Department of Homeland Security has developed the Urban Areas Security Initiative funding program (UASI). UASI provides funds to local emergency first responders to purchase equipment, planning, training, exercises and technical assistance to enhance security and preparedness to prevent, respond to, and recover from acts of terrorism. B. In FY 2006, the United States Department of Homeland Security combined the Anaheim and Santa Ana Urban Areas into a single Urban Area, and provided for shared administrative responsibilities between Santa Ana and Anaheim. C. In FY 2021, the City of Santa Ana will be the lead administrative agency for UASI funding. C. The City of Santa Ana has been awarded funding from the California Governor's Office of Emergency Services (CAL OES) for the FY 2021 UASI in the amount of $4,993,750, of which $715,000 is obligated to the Orange County Intelligence Assessment Center. Section 2. The City Council of the City of Santa Ana hereby authorizes the City Manager and/or the Police Chief or their designee(s) to apply for the FY 2021 UASI grant through CAL OES and upon receiving such award, enter into an agreement with CAL OES for the FY 2021 UASI in the amount of $4,993,750, of which $715,000 is obligated to the Orange County Intelligence Assessment Center. The authorization provided herein shall also pertain to any and all grant monies awarded under this grant. Section 3. The City Council of the City of Santa Ana hereby authorizes and directs the City Attorney's Office to prepare and authorizes the City Manager to enter into reimbursement agreements for all grant related program and project activities City Council 16 — 3 5/4/2021 Resolution No. 2020-XXX Page 1 of 2 including planning, organization, equipment, training, exercise and management and administration costs with the County of Orange and any of the cities located in the designated Anaheim/Santa Ana Urban Area for use of the FY 2021 UASI grant funds. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 4th day of May, 2021. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sorr1 ++R''.��hhCary Iho, City Attorney BY: _IAnlII� --- - amara Bogosian Senior Assistant City Attorney AYES: NOES: Councilmembers Councilmembers ABSTAIN- Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2021-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana City Council 16 — 4 5/4/2021 Re-SOIntron No. 2021-XXX Page 2 of 2 Human Resources https://www.santa-ana.arg/hr Item # 17 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Partially Paid Temporary Military Leave of Absence Resolution AGENDA TITLE: Adopt a Resolution to Provide for Continuation of Partially Paid Temporary Military Leave of Absence for City Employees Called to Active Duty with the Armed Forces and Continuation of Benefits for Employees and Their Eligible Dependents RECOMMENDED ACTION Adopt a resolution authorizing the City Manager to continue to provide additional partially - paid temporary military leave of absence and benefits for City employees and their eligible dependents called to active duly with the armed forces. DISCUSSION On October 1, 2001, the Santa Ana City Council adopted Resolution No. 2001-065, providing for additional partially -paid temporary military leave of absence for full-time officers or employees of the City, with at least one year of employment, called to active military service with the Armed Forces of the United States in connection with the then- currcnt military crisis, and for continuation of employee and their eligible dependents' benefits. The resolution also provided that its terms would expire unless extended by further action of the City Council. The pay and benefits authorized by Resolution No. 2001-065 have been continued on numerous occasions. The current resolution 2020-030 will expire on June 30, 2021. The attached resolution (Exhibit 1) provides that employees deployed for more than thirty (30) continuous days in a calendar year in connection with continuing military involuntary commitments shall be granted a leave of absence from their City positions and payments to the benefits of affected employees and their dependents shall continue until June 30, 2022, unless extended by further action of the City Council or otherwise by law. ENVIRONMENTAL IMPACT there is no environmental impact associated with this action. FISCAL IMPACT Funds are already budgeted for the expected FY 2021-22 costs of the program through June 30, 2022. The proposed FY 2021-22 budget will include an allocation in the various City Council 17 — 1 5/4/2021 Partially Paid Temporary Military Leave of Absence Resolution May 4, 2021 Page 2 affected departmental salary and benefit accounts (61000 through 61180), for expected program costs from July 1, 2021 through June 30, 2022. EXHIBIT: 1. Military Leave Resolution Submitted By: Jason Motsick, Executive Director— Human Resources Approved By: Kristine Ridge, City Manager City Council 17 — 2 5/4/2021 RESOLUTION NO. 2021-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA PROVIDING FOR CONTINUATION OF PARTIALLY PAID TEMPORARY MILITARY LEAVE OF ABSENCE FOR CITY EMPLOYEES CALLED TO ACTIVE DUTY WITH THE ARMED FORCES AND CONTINUATION OF BENEFITS FOR EMPLOYEE AND THEIR ELIGIBLE DEPENDENTS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows. A. On October 1, 2001, the City Council of the City of Santa Ana adopted Resolution No. 2001-065 which provided for an additional partially -paid temporary military leave of absence for each full-time officer or employee of the City, with at least one year of City employment, who had been called to active military service with the Armed Forces of the United States in connection with the then ongoing military crisis. That Resolution was extended yearly since its initial adoption in 2001 until June 30, 2017. B. The pay and benefits authorized by Resolution No. 2001-065 inadvertently expired on June 30, 2017. However, on August 21, 2018, Resolution No. 2018-064 provided continuation of those benefits authorized in 2001-065 through March 31, 2019, and extended on March 5, 2019, Resolution No. 2019-016 through June 30, 2020 and on April 21, 2020, Resolution 2020-030 through June 30, 2021. C. It is the intention of the City Council to continue to help City employees and their families with financial hardships resulting from being called to active duty for more than thirty (30) continuous days in connection with continuing military commitments and to affirm payments of those benefits to affected employees from July 1, 2021 through June 30, 2022, unless extended by further action of the City Council. D. Section 9-144 of the Santa Ana Municipal Code ("SAMC") grants members of the reserve forces of the United States, or the National Guard, temporary leave with pay not to exceed thirty (30) calendar days in each calendar year after one year of service with the City, upon proof of orders to and from such Resolution 2021-XXX i'uncil 17 — 3 514/2021 temporary active duty, also required by the California Military and Veteran's Code section 395.02. E. However, the normal tour of duty to which a reservist may be ordered to serve, without congressional action, is normally six (6) consecutive rnonths. F. Several City employees are currently reservists on active military service. Section 2: Partial Pay, Benefit Allowances and Group Benefit Coverage for City Officers and Employees on Long -Term Active Military Service. A. In addition to the fully paid military leave provided by Section 9-144 of the SAMC, each full-time officer or employee of the City, with at least one (1) year of service with the City, who is called to active military service with the Armed Forces of the United States in connection with continuing military commitments shall be entitled to military leave with partial pay for the period of his or her absence from City employment while on military service in excess of the period covered by Section 9-144, upon presenting satisfactory proof of orders to and from such temporary active duties. B. The amount of pay that each employee shall be entitled to receive from the City for the employee's additional period of military leave shall be the difference between the military gross pay and allowances actually received by the officer or employee from the United States for such service and the regular base pay, plus regular pay additives that said employee would have received from the City of Santa Ana if he or she would not have been called to active military duty, subject to all regularly required and voluntary deductions and withholdings. C. For each full-time officer or employee of the City who has already been or will be called to active military service with the Armed Forces of the United States in connection with continuing military commitments, the City shall also provide continued health and dental benefits to the employee and the employee's eligible dependents or, for the employee's represented by the Santa Ana Police Officer's Association ("SAPOA"), the City will contribute to the SAPOA that portion of the City's current contribution to the SAPOA designated specifically towards payment of premiums for, health, dental and long-term disability insurance plans administered by the Association for the benefit of the employees represented by the Association, as described in Section 12.0 of the current SAPOA Memorandum of Understanding. Section 4: the City shall not pay any wage or benefit provided for in this Resolution until and unless the officer or employee who requests such payment provides satisfactory proof such as a copy of military orders and documentation of eligibility to receive payment in accordance with procedures established by the City Manager or his or her designee. Resolution 2021-XXX City Council 17 — 4 f 1 f 3 Section 5: This Resolution, and the pay and benefits authorized herein, shall terminate and be of no further force or effect on midnight, June 30, 2022, unless extended by further action of the City Council or otherwise required by law. ADOPTED this 4` day of May, 2021. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By. d. aWLO- A. Relv�i n� Laura A. Rossini Chief Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2021-_ to be the original resolution adopted by the City Council of the City of Santa Ana on May 4, 2021. Date: Resolution 2021-XXX Pa i v ouncil 17-5 Daisy Gomez Clerk of the Council City of Santa Ana 5/4/2021 Public Works Agency https://www.santa-ana.org/pw Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Grant Application for the Urban Flood Protection Program AGENDA TITLE Adopt a Resolution Authorizing a Grant Application Submission for Funding from the Proposition 68 Urban Flood Protection Program for the Downtown Flood Reduction and Stormwater Infiltration Project RECOMMENDED ACTION Adopt a resolution authorizing the Executive Director of the Public Works Agency to submit a grant application to the California Natural Resources Agency for the Downtown Flood Reduction and Stormwater Infiltration Project, in an amount of up to $3.805 million. DISCUSSION Downtown Santa Ana experiences significant flooding during intense rain events, which can have negative impacts on vehicle and pedestrian travel, as well as on business operations. The Downtown Flood Reduction and Stormwater Infiltration Project will alleviate flooding via a two -pronged approach. First, stormdrain infrastructure will be reconstructed and upgraded to increase capacity. Second, a large subsurface stormwater infiltration system will be constructed to divert and remove flows from the stormdrain system. As part of the project, a City -owned parking lot will also be reconstructed and additional stormdrain upgrades may be added based on funding. This multi -benefit project will not only reduce flooding Downtown, but will also increase local water supplies and improve water quality in the Newport Bay watershed via stormwater infiltration and implementation of Best Management Practices. This project is currently in the conceptual design phase and Public Works Agency staff has submitted an application for $3.805 million to the Proposition 68 Urban Flood Protection Grant Program. A resolution is a required component of successful grant applications for this funding program. Should funding be awarded, completion of the construction plans is anticipated near the end of Fiscal Year 2021-22 and construction is anticipated to commence close to the beginning of Fiscal Year 2022-23. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. City Council 18 — 1 5/4/2021 Adopt Resolution for Urban Flood Protection Program Grant Application May 4, 2021 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. If this project is awarded funding, no funding match is required because this project benefits a Disadvantaged Community (DAC) area. Staff will return to Council with a request for approval of further actions if funding is awarded. EXHIBIT(S) 1. Resolution Authorizing Grant Application for Urban Flood Protection Program Submitted By: Nabil Saba, Executive Dir Public Works Approved By: Kristine Ridge, City Manager City Council 18 — 2 5/4/2021 jmf 3/22/21 RESOLUTION NO. 2021-XXX A RESOLUTION OF TI IE CITY COUNCIL OF TI IE CITY OF SANTA ANA APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE URBAN FLOOD PROTECTION GRANT PROGRAM WHEREAS, the Legislature and Governor of the State of California have provided funds for the program shown above; and WHEREAS, the California Natural Resources Agency has been delegated the responsibility for the administration of this grant program and establishing necessary procedures; and WHEREAS, said procedures established by the California Natural Resources Agency require a resolution certifying the approval of application(s) by the Applicant's governing board before submission of said application(s) to the State; and WHEREAS, the Applicant, if selected, will enter into an agreement with the State of California to carry out the project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana as follows - Section 1. The City Council approves the filing of an application for the Downtown Flood Reduction and Stormwater Infiltration Project. Section 2. The City Council certifies that Applicant understands the assurances and certification in the application, that Applicant or title holder will have sufficient funds to operate and maintain the project consistent with the land tenure requirements or will secure the resources to do so, and that it will comply with all provisions of Section 1771.5 of the California Labor Code. Section 3. If applicable, the project will comply with any laws and regulations including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, and disabled access laws, and prior to commencement of construction, all applicable permits will have been obtained. Section 4. Applicant will work towards the State Planning Priorities intended to promote equity, strengthen the economy, protect the environment, and promote public health and safety as included in Government Code Section 65041.1. Section 5. The Executive Director of the Public Works Agency, or his or her designee, is hereby appointed as agent to conduct all negotiations, execute and submit all documents including, but not limited to, applications, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project. Resolution No. 2021-XXX City Council 18 — 3 5/49gg2I of 2 jmf 3/22/21 Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By. !ry. T.1& John M. Funk Sr. Assistant City Attorney AYES - NOES: Councilmembers Councilmembers /G1 I3IF_1I��i7.7R�TaI1iT�ii1T� NOT PRESENT: Councilmembers 2021. Vicente Sarmiento Mayor C�'.ii Cy [�7`i [�7. [+7 3�1 ilr��➢ C�7JI_1. Tt�7'.7 [d I� I1w ii7 I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2021-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2021-XXX City Council 18 — 4 5/49gg23 of 2 Public Works Agency https://www.santa-ana.org/pw Item # 19 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Westminster Avenue / 171" Street Regional Traffic Signal Synchronization AGENDA TITLE Authorize a Budget Reallocation in the Amount of $41,937 for the Grant -Funded Westminster Avenue / 171" Street Regional Traffic Signal Synchronization Project (No. 16- 6869) (Non-Gansral Fund) RECOMMENDED ACTION Authorize Reallocation of $31,306 in unspent Measure M2 Local Fairshare funds from the Bristol St. Traffic Signal Synchronization Project (No. 15-6829) and $10,631 from the Traffic Safety Project (No. 21-6905) for a total of $41,937 to fulfill the City matching funds requirement for the Westminster Avenue / 17t" Street Regional Traffic Signal Synchronization Project (No. 16-6869). DISCUSSION On April 5, 2016, the City Council approved a cooperative agreement with the Orange County Transportation Authority (OCTA) to implement a traffic signal synchronization project on the Westminster Avenue / 17t" Street corridor, with OCTA as the administrative lead agency. The project has been completed and provides inter -jurisdictional traffic signal synchronization and improvements along the corridor traversing Santa Ana and the cities of Seal Beach, Westminster, Garden Grove, Tustin, and the County of Orange. The cooperative agreement identifies the roles and responsibilities of OCTA and the participating agencies, and all participants share the total estimated project cost of $4,230,154. OCTA Measure M2 provides $3,525,128, and the participating agencies provide a combined 20-percent match, which totals $105,026. Of that amount, Santa Ana's share was estimated to be $280,352. Funds from participating agencies are payable to OCTA at the end of the project, and the amounts may be a combination of cash and value for in -kind services. Due to unforeseen construction issues including underground utility conflicts and unanticipated utility coordination fees, participating agency's cost share increased, and the final City share is $303,181. The City has a credit for in -kind services in the amount of $38,456, therefore the amount due to OCTA is $264,725. City Council 19 — 1 5/4/2021 Westminster Ave. / 17' St Traffic Signal Synchronization May 4, 2021 Page 2 The amount of funds currently available in the project account is $222,788. Staff seeks approval for the reallocation of $41,937 of unspent Measure M2 Local Fairshare funds to meet the City's cost share for the project. Upon approval of the requested reallocation, the total amount expended for construction will be $264,725, which sufficiently satisfies the required local cash match for the project. ENVIRONMENTAL IMPACT There is no environmental impact associated with the action. FISCAL IMPACT Upon approval of the requested reallocation of $41,937 in unspent Measure M2 Local Fairshare funds, funding will be available to meet the City's matching funds requirement of $264,725. The following table summarizes the funds budgeted and available to issue payment to OCTA for the City's share of the construction costs for this project: Fiscal Accounting Fund Accounting Unit, Amount Year Unit -Account # Description Account Description EXISTING PROJECT BUDGET 03217662-66220 Measure M-Street Measure M2 Local 2020-21 (16-6869) Construction Fairshare, Improvements $222,788 Other Than Building PROJECT BUDGET REALLOCATION 03217662-66220 Measure M-Street Measure M2 Local 2020-21 (16-6869 From Construction Fairshare, Improvements $31,306 15-6829) Other Than Building 03217662-66220 Measure M-Street Measure M2 Local 2020-21 (16-6869 From Fairshare, Improvements $10,631 21-6905) Construction Other Than Building Total: $264,725 Submitted By: Nabil Saba, P.E., Executive Director— Public Works Agency Approved By: Kristine Ridge, City Manager City Council 19 — 2 5/4/2021 Finance and Management Services https://www.santa-ana.org/finance Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: City Council Fiscal Year 2021-22 Budget Workshop Session AGENDA TITLE: City Council Fiscal Year 2021-22 Budget Workshop Session RECOMMENDED ACTION Provide additional direction to staff, as needed. EXECUTIVE SUMMARY This Budget Workshop Session is an opportunity for the City Council to provide staff with further direction for the FY 2021-22 budget with the updated information provided. Staff will present the draft budget to the City Council on May 18, 2021. The PowerPoint presentation for this Budget Workshop Session will include a summary of the work -in - process draft budget for the General Fund. Staff will present the draft FY 2021-22 budget and the proposed spending plan for the American Rescue Plan Act (ARPA) allocation of $143 million on May 18, after the public opinion survey closes on May 16 and the U.S. Department of Treasury publishes the spending guidelines. DISCUSSION The FY 2021-22 budget process kicked -off in November and the City Council approved a budget calendar on December 15, 2020. The City Council received early FY 2021-22 budget information on March 16, 2021 and provided initial direction to staff. The PowerPoint presentation for this Budget Workshop Session includes the following information: • Public Outreach Summary and efforts to obtain public opinion • Preliminary ARPA Spending Plan information • FY 2020-21 Third Quarter Budget Update for the General Fund • Updated Ten -Year General Fund Outlook City Council 20-1 5/4/2021 City Council Fiscal Year 2021-22 Budget Workshop Session May 4, 2021 Page 2 • Draft FY 2021-22 General Fund Budget Status • Measure X Oversight Committee Recommendations • Preliminary FY 2021-22 Measure X Spending Plan • Preliminary FY 2021-22 Capital Improvement Plan • Pension Debt Refinancing Status Public Opinion Survey An informal public opinion survey launched on April 22 and includes questions designed to understand public priorities for the ARPA spending plan and the City's budget. The survey is available in English, Spanish and Vietnamese on the City's main webpage and in English and Spanish in paper format at the City Hall public counters. The survey closes on May 16. The May 18 budget presentation will include the results of the survey. Revive Santa Ana — the American Rescue Plan Act Spending Plan Revive Santa Ana is a commitment to protect and revive our community as we emerge from the impacts of the COVID-19 pandemic. The funding source includes multiple allocations from the federal American Rescue Plan Act (ARPA). The spending plan fits within the following five goals. • Recovery from COVID-19 o Further Vaccination/Education Collaboration Public Health Equity Explore Public Health Department • Add an Equity & Inclusion Coordinator o Expansion of Critical City Communication Tools • Fixed digital boards throughout the City • Text Alert Notification System o Cleaning and Sanitization of Public Spaces • Financial Assistance and Targeted Programs c Resident Stimulus Funding for Essential Purchases o Reopening Assistance to Businesses o Water Bill Waivers o After School/Early Childhood Programs o Youth Violence/Sexual Assault Intervention Programs o Digital Literacy Education Support Food Distribution Efforts • Public Health & Safety * Enhanced Graffiti Removal and Trash Abatement o Supplemental Code Enforcement Staffing o Rapid Response Homeless Services o Replacement of Parks Restrooms o Enhanced Security/Monitoring for Community Space O Addition of Green Space: Santa Anita o Central Healthy Food Market City Council 20 — 2 5/4/2021 City Council Fiscal Year 2021-22 Budget Workshop Session May 4, 2021 Page 3 o Santa Ana Zoo Safety Renovations o Santiago Park Rehabilitation o Trail Lighting o Sports Lighting o Playground ReplacemenUShade • Critical Infrastructure • Affordable Broadband Access o Pedestrian and Mobility Improvements o Community Center Renovations • Update of Central Library o New Library Branch/Expansion of Accessibility thru kiosks n Addition Neighborhood Streetlights e Security Improvements at Fire Stations o Information Technology and Process Upgrades • City Fiscal Health c, Unemployment Fund/Employee Leave o Santa Ana Regional Transportation Center o City Downtown Parking Enterprise o General Revenue Losses The City's primary allocation is $142,974,013. The City will receive the first half of the allocation by May 10, and the second half will be available no earlier than May 10, 2022. Therefore, the plan includes spending broken out by first allotment and second allotment. The U.S. Department of Treasury expects to issue spending guidelines in advance of the first allotment on May 10. The spending plan work -in -process includes City Council input from March 16, staff input, and public input. In addition to the primary allocation, the City expects to receive the following housing allocations from ARPA. • HOME program for homeless assistance — $6,183,914 allocation from the total $5 billion program. • Emergency Rental Assistance Program — unknown allocation from the total $21.55 billion program. • Housing Vouchers — unknown allocation from the total $5 billion program. Public Works will also apply for competitive awards from the ARPA $10 billion capital project fund 'to carry out critical capital projects directly enabling work, education, and health monitoring, including remote options, in response to the public health emergency." Finally, the City will appeal to the state and county officials for pass-thru allocations from their federal ARPA allotments. ated General Fund Ten -Year Outlook City Council 20 — 3 5/4/2021 City Council Fiscal Year 2021-22 Budget Workshop Session May 4, 2021 Page 4 The updated Ten -Year Outlook includes the FY20-21 budget structure at March 31 (the third quarter update) and the draft FY21-22 budget, along with the following assumptions. • Revenues and expenditures increase annually by the CPI as forecasted by the California Department of Finance. • Savings from Pension Debt Refinancing has not yet been included in the Outlook. • City revenue makes a full recovery from the pandemic during FY22-23. • The final jail module begins producing revenue during FY22-23. • The Measure X tax rate decrease from 1.5% to 1.0% in FY28-29. • The City pays off the debt for the Police facility in 2024. Measure X Oversight Committee Recommendalions Voter approved Ordinance NS-2952 requires a "...citizen oversight committee to act in an advisory role to the City Council in reviewing the annual revenue and expenditures of funds from the tax..." Committee establishing Resolution 2019-008 requires "During its March meeting, the Committee shall prepare an annual report to City Council, including recommendations, in time for City Council consideration during the budget process for the upcoming fiscal year." The Committee met on March 10, 2021 and prepared the following recommendations for the FY 2021-22 budget, in accordance with establishing Resolution No. 2019-008. 1. Favor one-time spending from Measure X revenue. a. Remember, Measure X is temporary. b. Focusing in on one time spending will reduce reliance upon Measure X revenue for future minimum/expected service levels. 2. Consider the following pilot programs: a. Community based professionals/specialists vs. sworn Police for non- violent response such as substance abuse, mental health crisis and small neighborhood disputes in order to control costs and improve results, and/or b. Seed economic development such as community cooperatives to provide future revenue growth and stimulate the local economy. 3. Prepare a long-term plan to prepare for the Measure X rate reduction. a. Focus on the temporary nature of Measure X and prepare for the phase- out of such revenue on service levels. b. The plan should identify areas where Measure X is supporting recurring spending instead of one-time use of revenue. 4. Shift Measure X revenue to fixing streets. a. This is one of the most visual items for the public. b. This is one of the areas that has not been funded historically with Measure X. c. This is one time use of funds. 5. Use Measure X revenue increase to reduce the reliance on the General Fund Reserve to preserve service levels. City Council 20 — 4 5/4/2021 City Council Fiscal Year 2021-22 Budget Workshop Session May 4, 2021 Page 5 a. Avoid using the increase of Measure X for incremental increases of recurring services. b. If the Measure X increase is used, limit the use to one-time spending. 6. Use the pandemic as an opportunity to identify lessons learned and shifting priorities. 7. The Committee supports dedicated Measure X spending accounts within the General Fund. a. Each year, accounting for Measure X spending will become more and more difficult because of the inherent General Fund nature. Adding dedicated accounts will improve tracking, reporting and auditing of Measure X revenue. Measure X Spending Plan To improve and enhance the reporting and auditing process for Measure X spending, staff has created Measure X accounts within the General Fund forthe FY 2021-22 budget. A summary of the work -in -process spending plan is included in the PowerPoint presentation for the Workshop Session. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact directly associated with providing additional direction to staff for preparation of the draft FY 2021-22 budget. The City Council schedule includes receiving the draft budget on May 18 and conducting a public hearing for the proposed budget on June 1. Submitted By: Kathryn Downs, Executive Director Finance and Management Services Approved By. Kristine Ridge, City Manager City Council 20 — 5 5/4/2021 City Manager Office https://www.santa-ana.org/cm Item # 21 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Assembly Bill 937 (the "VISION Act") AGENDA TITLE: Resolution Declaring the City of Santa Ana's Support for Assembly Bill 937 (the "VISION Ac[") RECOMMENDED ACTION Adopt a resolution supporting Assembly Bill 937 (the "VISION Act"). DISCUSSION At the request of Mayor Sarmiento, the attached resolution (Exhibit 1) is presented for consideration by the City Council. About Assembly Bill 937 (the "VISION Act") The resolution, "A Resolution of the Santa Ana City Council Supporting Assembly Bill 937 (the "VISION Act')," declares the City's support for Assembly Bill 937 (AB 937), also referred to as the VISION Act. In summary, AB 937 prohibits state and local law enforcement agencies from cooperating with federal immigration authorities, or assisting in the detention, deportation, or interrogation of an individual by immigration enforcement. Specifically, AB 937 establishes the following. Specifies that a state or local agency shall not arrest or assist with the arrest, confinement, detention, transfer, interrogation, or deportation of an individual for an immigration enforcement purpose in any manner including, but not limited to, by notifying another agency or subcontractor thereof regarding the release date and time of an individual, releasing or transferring an individual into the custody of another agency or subcontractor thereof, or disclosing personal information, as specified, about an individual, including, but not limited to, an individual's date of birth, work address, home address, or parole or probation check in date and time to another agency or subcontractor thereof. City Council 21 — 1 5/4/2021 Assembly Bill 937 (the "VISION Act") May 4, 2021 Page 2 2. States that the prohibition described above shall apply notwithstanding any contrary provisions in the California Values Act, as specified, which allows law enforcement to cooperate with immigration authorities in limited circumstances. 3. Specifies that this bill does not prohibit compliance with a criminal judicial warrant. 4. Prohibits a state or local agency or court from using immigration status as a factor to deny or to recommend denial of probation or participation in any diversion, rehabilitation, mental health program, or placement in a credit -earning program or class, or to determine custodial classification level, to deny mandatory supervision, or to lengthen the portion of supervision served in custody. 5. Defines the following terms for purposes of this bill- a. "Immigration enforcement" includes "any and all efforts to investigate, enforce, or assist in the investigation or enforcement of any federal civil immigration law, and also includes any and all efforts to investigate, enforce, or assist in the investigation or enforcement of any federal criminal immigration law that penalizes a person's presence in, entry, or reentry to, or employment in, the United States." b. "State or local agency" includes, but is not limited to, "local and state law enforcement agencies, parole or probation agencies, the Department of Juvenile Justice, and the Department of Corrections and Rehabilitation." 6. Specifies that in addition to any other sanctions, penalties, or remedies provided by law, a person may bring an action for equitable or declaratory relief in a court of competent jurisdiction against a state or local agency or state or local official that violates this section. A state or local agency or official that violates this section is also liable for actual and general damages and reasonable attorney's fees. 7. Repeals statutory provisions directing California Department of Corrections and Rehabilitation (CDCR) to implement and maintain procedures to identify inmates serving terms in state prison who are undocumented aliens subject to deportation. 8. Repeals statutory provisions directing CDCR and California Youth Authority to implement and maintain procedures to identify, within 90 days of assuming custody, inmates who are undocumented felons subject to deportation and refer them to the United States Immigration and Naturalization Service. City Council 21 —2 5/4(2021 Assembly Bill 937 (the "VISION Act") May 4, 2021 Page 3 9. Repeals statutory provisions directing CDCR to cooperate with the United States Immigration and Naturalization Service by providing the use of prison facilities, transportation, and general support, as needed, for the purposes of conducting and expediting deportation hearings and subsequent placement of deportation holds on undocumented aliens who are incarcerated in state prison. 10. Repeals the statutory directive to include place of birth (state or country) in state or local criminal offender record information systems. 11. States that, to ensure an equitable opportunity for noncarceral, rehabilitative, and diversionary dispositions or custody status to all persons involved in the criminal legal system, irrespective of immigration status, it is the intent of the Legislature to abrogate case law that is inconsistent with this value, including, but not limited to, People v. Sanchez (1987) 190 Cal.App.3d 224, People v. Cisneros (2000) 84 Cal.App.4th 352: People v. Espinoza (2003) 107 Cal.AppAth 1069: People v. Arco (2017) 11 Cal.App.Sth 613. 12. Makes other findings and declarations. For more information on AB 937, please see the attached analyses prepared by the Assembly Committee on Public Safety (Exhibit 2) and Assembly Committee on Judiciary (Exhibit 3). About the Santa Ana Sanctuary Ordinance (Ordinance No. NS-2908) On January 17, 2021, the Santa Ana City Council adopted Ordinance No. NS-2908: An Uncodified Ordinance of the City Council of the City of Santa Ana relating to the City's Procedures Concerning Sensitive Information and the Enforcement of Federal Immigration Law following the Declaration of the City of Santa Ana as a Sanctuary for all its Residents ("Sanctuary Ordinance"). The Sanctuary Ordinance established the City's procedures concerning immigration status and enforcement of federal civil immigration laws. These procedures included the following: protecting sensitive information, prohibiting the use of City resources for immigration enforcement, preventing biased - based policing, and directing law enforcement personnel to exercise discretion to cite and release individuals in lieu of detaining there at a local detention facility or countyjail based on the nature of the alleged crime. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Resolution City Council 21 —3 5l4/2021 Assembly Bill 937 (the "VISION Act") May 4, 2021 Page 4 2. Analysis of AB 937 prepared by the Assembly Committee on Public Safety 3. Analysis of AB 937 prepared by the Assembly Committee on the Judiciary Submitted By: Kristine Ridge, City Manager Approved By: Kristine Ridge, City Manager City Council 21 — 4 5/4(2021 A RESOLUTION OF THE SANTA ANA CITY COUNCIL SUPPORTING ASSEMBLY BILL 937 (THE "VISION ACT") WHEREAS, refugees and immigrants are a vital part of California's heart and identity, and we recognize the humanity of all people who call our community home; and WHEREAS, California's criminal justice system unjustly and disproportionately harms Black, Latinx, Indigenous, and Asian and Pacific Islander American communities; and WHEREAS, with the passing of SB 260, SB 261, SB 1437, AB 1812, which amended paragraph (1) of subdivision (d) of Section 1170 of the Penal Code, and Proposition 47, the Legislature and California voters have demonstrated a strong commitment to reforming our criminal justice system and ending mass incarceration; and WHEREAS, despite these reforms, California reinforces systemic racism when its jails and prisons voluntarily and unnecessarily transfer immigrant and refugee community members eligible for release from state or local custody to Immigration and Customs Enforcement (ICE) for immigration detention and deportation purposes; and WHEREAS, jails and prisons serve as the main pipeline to fill immigration detention beds, and approximately 70 percent of people detained in ICE custody, nationally, have been funneled through our criminal justice system; and WHEREAS, California should not subject these community members to a cruel "double punishment," and disregard their humanity, records of rehabilitation, stable reentry plans, and community support, purely because they are refugees or immigrants; and WHEREAS, ending ICE transfers in California is a reflection of the state's commitment to ending racial injustice and mass incarceration, and WHEREAS, the VISION Act (Assembly Bill 937), authored by Assemblyrnember Carrillo, prohibits jails, prisons, and other public agencies from funneling community rnernbers who are eligible for release to ICE jails where they endure deplorable conditions and face permanent separation from their families and communities; and WHEREAS, through the passing of the VISION Act, California has an opportunity to set a model for the nation and advance a positive vision of a society based on care, healing, and transformation; and WHEREAS, our community refuses to use local and state resources to separate children from their parents and detain and deport millions of parents, neighbors, co-workers, and friends; and RCSOILI � t)f 21 — 5 5/4/2021 Page 1 0 WHEREAS, the City of Santa Ana values all members of our community, embraces compassion, equality, and inclusion, and proudly defends the rights of all residents, including refugees and immigrants. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana, that: Section 1. The City of Santa Ana is in strong support of the passing of the VISION Act in California. Section 2. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of May, 2021. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney -10 AYES: NOES: ABSTAIN: NOT PRESENT Councilmembers Councilmembers Councilmembers Councilmembers :a�:i�IyC�7_����7ye�i���rriG7�I•\.I�7�7:7C�7I.F\�lti'1 I, DAISY GOMEZ. Clerk of the Council, do hereby certify the attached Resolution No. 2021 -XXX to be the original resolution adopted by the City Council of the City of Santa Ana on 2021. Date: Clerk of the Council City of Santa Ana Resolution No. 2021-XXX City Council 21 — 6 5/4/202 e 2 of 2 AB 937 Page I Date of Hearing: April 6, 2021 Counsel: David Tiillingsley ASSEMBLY COMMITTEE ON PUBLIC SAFETY Reginald Byron Joncs-Sawycr, Sr., Chair AB 937 (Canillo) —As Amended March 22, 2021 SUMMARY: El¢ninnics the existing ability realer the Vahtcs Act 16r law ctllbrecirtcnl agencies (o cooperate will) federal immlignaliorr authorities by kwng them norilicarion of release for ilimatcs or facilitating inarric translers. Prohibits all state and local agencies froth assisting. in any mariner, lne detention, deportation, interro,,+ation, of an individual by inmrigration enforcement. Specifically, this bill: I ) Specifies that a state or local agency shall not arrest or assist with the arrest, confinennent, detection, transior, interrogation, or deportation of all individual for an immigration enforcement purpose ii any manner including, but not limited to, by notifying another agency or subcontractor thereof retarding the release date and time of an individual, releasing or lrauslcming an individual into the ettsLody of another agency or stdacontraclor thereof, or disclosing personal information, as specified, about all individual, including, but not luniied to, an iritlividual's date ofbirth. work address, hoiric address, or parole or probation check in date and time to another agency orsubcon(raclor thereof. 2) Slates that the prohibition deselibed above shill apply notwithstanding any contrary provisions in the California Vahres Act, as specified, which allowed law entbi-cement to cooperate with innrngration authorities ill lurlited circumstances. 3) Specitics that this bill does not prohibit compliance with a criminal judicial warrant. 4) Prohihits a state or meal agency or corns fiom using inimigrration status as a factor to deny or to reumnnend derml of probation or participation in any diversion, rehabilitaliorl, mental health program, or placement in a credit -earning program or class, or to determine custodial classification level, to deny mandatory supervision, or to lengthen the portion of supci%ision served in custody_ 5) Clarifies the following lenlis i)r ptalauses ofdus bilL- a) "hinnigration eliforeenient" inchides ..arty and all efforts to investigate, enforce, or assist in the investigation orenlbrcenrem ol'any federal civil innnigraticm law, and also inchtdes any and all eflbrts to investigate, enforce, or assist in the investigation or enioremlenl of any kxleml eranllnitl llnllnngrallon law that penaLus ape son's presence in, zntry, or reentry to, or eniployrmznL in, the United Suuzs." h) `-State or local agency' includes, buL IS not limited to, 'local and state law cuf6rccrirent agencies, parole or probation agencies, the Department of Juvenile Justice, and the City Council 21 — 7 514/2021 AB 937 Page 2 6) " Traoster" includes, "custodial transtcrs, intonual uanstcxs in which a petson's arrest is facilitated through the physical hand-off ofthat person in anonputblic area ofthe state or local agency, orally coordination between the state or local ageticy and till receiving agency about an individuul's release to efTecturate an arrest frtr immigration enfrrrcement pnnposes Upon or frrllowing their release from the state or local agency's custody." 7) Stares that ix addition to any other sanctions, penalties, orremedies provided by law, a person nv3y bring an action for equitable or declaratory relief in a court of competent jurisdiction against a state or local agency or state or local olticial that tiolalel the provisions of this bill. 8) Specilies that a stale or local ;agency or olticial that violales the provisions ol'thi% bill is ;also table for actual all bNuOral damages axul reasonable attonicy's lees. 9) Repeals statutory provisions directing Calitornin Department of Corrections and Rchablitation to implement and maintain procedures to identity inmates saving tends in state prison who are undocumented aliens ,object to deportation- 10)Repeals statutoly provisions directing (-;T)(-'R and Califrmlia Youth Authority to implement and maintain procedures to identify, withhx 90 days ofassirning custody, inmates who are uandocumx;nu;d Iclons subject to deportation and refer them Lo the United Shutt lmmiip-ation and Naturalization Service. l 1) Repeals statutory provisions directing CDCR to cooperate with the United Stales lnvnigt-ation and Naturalization Service by providing the use of prison tacdities, traiisportatiom and general Support, as needed, 1or the purposes ol'collductilg and. expediting deportation hearings and subsequent placement of deportation holds on undocumented aliens who an ir:arecrated ix state prison. 12) Repeals the statutoty directive to include place of birth (state or counay)—in state or local criminal ollcndcr record inlornotion systenns- 13) Makes Legislative findings and declarations. EXISTING FEDERAL LAW: 1) Provides that any authorized immii�nation officer may at any time issue Immigration Detaincr-Notice of Action, to any other federal, state, or local law entoreement agency. A detainer serves to advise another- law cnfin-cennent agency that the Dcpartnxnt of Horncland Security (,DI IS) seeks custody of an alien presently in the custody ofthat agency, for the purpose ofnrresting and removing, the alien. The detainer is a request that such agency advise the DTTS, prior to release of the alien, in order for the DTTS to arrange to assunne custody, rl slmations w1le1 gaining, tffi1lcdrate physical custody is cithel tllpracucable or inpossible- IS CFR Section 287-7(a)-) 2) States t1lat upon a detennination by the DHS to issue a deminer for an alien not otherwise delained by a crininal justice agency, such agency shall maintain custody orthe alien for a ucriod not to exceed 48 hours, excluding Saturdays, Sundays, alxd holiciays ix order to De tit City Council 21 — 8 5/4/2021 A-B 937 Page 3 assumption of custody by the DHS. (8 CFR Scction 287.7(d)-) 3) Authori7xs the Secretary of Homeland Security under the 287(g) program ro enter into agreements that delegate inn» gration powers to local police. The negotiated ag-eements between ICE and the local police are documented in memorandum of ageetnents (MOAS). (8 U.S.C. Scction 1357(g).) 4) States that notAithstandine anv other urovuion of Federal. State, or local law, a Federal, slate. or local eovennnent entitv or ollicial nnav not Drohtbit, or in anv wav restrict, any govennuent entrry orofficial from sending to, or receiving ham, thehiuvilration and Nattrah/al1011 Service iIbrimtion rcoardine the chi<crvhip Ormintigration stattu, lawlid or tmlawlul, ol'any individual. (8 U.S.C. 1373, sub(l. (a).) 5) Slates that not"ithstanding anv other provision ofFcdcal, Static, or local law, no state or local governln:nt entity may be prohibited, or in any way restricted, from sending to or icccNing tnbm the Immigration and Natun1117utlo❑ Service IntOrnlltlorl lcgardlllg tic innuitnation starts, lac-ful or unlawful, of an alien in the United States- (R USA'- 1644-) EXISTING LAW 1) Dclincs "inuni 7ation hold" as "an immigration dctaincr 155tted by an aullurrizcd immni�mation officer, pursuant to specified rqnrlatious, that requests That the law eliforcernelit offs[ ill to ntni Lain custody of the individual for a period not to exceed 48 hours, excluuditng Sattudays, Sundays, and holidays, and to advise the atrhorized innnni61n-ation ollice- prior to the release of than individual" (Gov. Code, § 7282, subd. (c).) 2) Defines "Notification request' as all Immigration and Customs I',ifoicement I-ecllleSt that a local law cnforoeracnt agency inform ICE of the release date and title ii advance of the public Of Lill individurll in its cutitody and includes, but is not liniued to, DHS hone 1-247N. (Gov. Code, § 7283, subd. (t).) 3) Defines' '"Transfer request" as an Tnnnigration and Customs Enforcement request that a local law enforcement agency faclitatc the transtcr of all individtill in its custody to ICE, and includes, but is not limited to, TAM Form 1-247X- ([iov. Code, § 7283, stdid- (f)-) 4) Prohibits law enl6 cement agencies (includin. school police and security deparunenls) koln using resources to i vestigite, interrogate, detain, detect, or arrest people for Illnuni,la Lion cllorcemcnt purposes. These provisions are commonly lurown as the Vahucs Act. Reslricnons include: a) Inquiring into an individual's immigration stains; b) Detaining a person basal on a hold request firm ICE: c) Providing information regarding a person's release date or responding to requests for notification by providing releasee dates or other iliOrmalitln ulnlcsS that inforrlxuion is available to the pttblir, City Council 21 — 9 514/2021 AB 937 Page 4 d) Providing personal intormatioo, as spceiticd, including, but not limited to, morn., social security number, honle or work acld-es,es, unless that fiformation is --availahle to the public;» e) Arresting a person based on a civil ilumigration wan;ant; f) Particgruing io border patrol activities, nickt(ling wan-antless searches; g) Pcrliamnng the linictions ol'an nrnnigrahon agCnt whether through a�Tccmcnts known as 287(g) agreements, or any pro :am tbat deputizes police as umnigatiun agents; h) Using ICF, agents as aalerJarelers; i) Transiia an individual to immigration authorities unless authorized by ajudicial warrant orjudicial probable cause determination, or except as otherwise specified; jl Providing ollice space exchrsively fur immigration authorities in a City or cotuily law enforcerrrent facility; and, k) Firternag nato a Contract, after June 15, 2017, with the fcdcral govennnent to hotrsC or detaua aduk or nrittor non -citizens ur a locked detention facility for purposes of imrnigration custody- (Gov. Codc, § 7284.6, subd_ (a).) 5) Describes the circurrstancCS canter which a law crilbrecmcnt agency has discretion to respond to transfer and notification requests fi-om irrno ig anoo authorities. These provisions are known as the TRUST Act Lave enforcement agencies cannot honor transfer and notification rcqucstS unlcSs one of the 16110wing apply- a) the individual has been convicted ofa serious or violent felony, as specified; b) The individual has been convicted of wy tclooy which is punishable by imprisonment in state prison; c) Tltc individual lus been convicted within the fast tivc year,; of a risdcmcanur for a crinx that is punishable either as a felony or misdemeanor (a wobbles); d) The nadividUal has been convicted within the past 15 years for any one ofa lit of Specified felonies; e) the individual is a cm-enl reknstrant on the California Sex and Arson Registry. 1) The individual has been convicted ofa ic(Icral aimc that mccts the dclirritiort ofan aggravated felony as specified in the federal Immigration and Nationality Act; or, g) The individual is identified by WE as the subject of art outstanding federal felony an-est warrant for any tederal crime; or, It) The IDd1vid mil is arrested on a charge involving? a Serious or violent felony, as specified, or a lclun�4 4aat iS nrnishabk; by ijynisotunent in state prison and a magistrate na<aLes a Cit)fir6c7hW iil'probable cause as to that charge_ (( Sk kffie, fi 7282.5.) 514/2021 A-B 937 Page S 6) Provides that law ent6rccnaent agencies are able to participate in joint taslcfincc.N with the federal government only if the primary purpose of the joint task frirce is not inronigration cutolcenxnt. Participating agencies nntst alurtally repots to the Calitomb Department in Justice (DO.I) if there were in»rtigration arrests as a result of task 4brce operations. (0ov- Cnde, § 7284.6, subds. (b) & (c).) 7) Allows law erl)rcement agencies to respond to a request front iuuingration authornr s fi)r iuforination about a person's criminal history. (Gov. Code, § 7284.6, SUM. (b)(2).) 8) Allows law enforcement agencies to make itquiies into ititorrnation necessary to certify an mdividural who hlas been identified as a potential crbr or tralliukiig victin for a T or U Visa. (Gov. Code, § 7284.6, subds'. (b)(4).) 9) Allows law enfrrecmau agencies to give in -migration authorities access to hitunicw an individual in agency custody if such access complies with the TRUTI I Act. (Gov. Code. § 7284.6, subds. (b)(5).) FISCAL EFFECT: Unknown. COMMENTS: 1) Author's Statement: According to the author, "AB 9:37 helps California realize its promise of protecting uinnigtatnt lino and rcfotnnng otu-ctittvtt<al justice ,ystctn Under current law many individuals that have completed their sentence or have been deemed eligible l6r release fintn a Californa jail or prison can lace a second punishment in the immigration detention system, solely becauue of where they were bolt. AB 937 will stop this arbitrary second punishment where one has no right to legal representation, pretrial release, or a hearing i-ona a jauy of their peers. Immigration Detainees can ihd themselves housed b counr-v jails and even private facilities anywhere in America, facilities beyond the oversight and accountability of the state of California where abuse and neglect is well documented. All Cali&mmans, rcr4rrdlcss ofeitiAM"Jilp stairs, Slaoukl get the cltamu:c to rcintcgratc back into their Connntuiitics and reunite with their families cobs,» they have paid their debt to society-" 2) California Values Act_ The Values Act, which became effective on Janurary 1, 2019, limits the involvement of state and local law enforcement agencies in federal iuiLnigration entnrcenaent- It prohibits law enl6rcernent agencies (including school police and security deparunents) from using resources to iivestig;tte, iuterrol�ate, detan detect, or arrest people for immigration en otv cinem purposes. It also places libation on the way; in which Law enforcement agencies can collaborate with federal lask forces that involve elentenl.s of inrnig ation enforcement. Under the Values Act, CDCR is not considered a Law enforcement agemy- The Values Act was an expansion of prior state Law, the TRUST Act which prolaliled Law erlforCenaent fi-ona honoring federal inanaigration holds unless the deurinee had a criminal history involvi ng a serious or violent felony. the Values Act contains sonic exceptions that allows law cnfrorcancnt agencies, to cooperate City Council 21 — 11 514/2021 A-B 937 Page 6 With immigration atlthoritics in the t6llowing ca umtances: a) Provide a pelsim's release date or peisottal uttomintion, as specified, it such utturmation is available to the public; b) Respond to notification and uanslcr requests when the individtttl lutd been convicted of specified crimes which reflected it l*Jmer public safety dagger attd are on The seriws end of (he critvnal speclrttn Specifically, those cmites itchrded serious and violent felonies, as well as ollenses requiring an individual to register as a sex ollenda; c) Make nuµurics utto ii irntltion licccssaty to ccrtily an mclividt4tl for a visa for it victim of domestic violence and hum; n trallicking; (1) Rcspannd to a rcgtu:st From nimnig,Tation atuhoniticS fcrr inf(MlIalion about a person's criminal history; e) Participate with at joint law enfr>rcement task 1 rrce, as long as the primary pwpose of the task fur> e is not immigration entorcement; or, t) (Jive utnnig ation authorities access to interview an individual i<t agency custody as long as the interview access con-plicd with the requirements ol'the TRUTH Act. This bill would elitninale those exception, for haw ai orcetn;ni to the cxtcnt tkal such exceptions would constitute assistance in immigration elibrcennenl, in any nunner- Ilse prohibitions Jul this bill on assistnig inmtigration enforeenterit i1 any tittittuer are broader in .scope than the prohibitions described in the Vahtes Act. The scope ofthis hill is also broader t1kin the Vahtes Act because the prop ibiririn on assistance applies to all state and local agencies, as opposed to being directed toward law enforcement agencies. This bill would ptohhbit any state of local agency, including htw cnlbrecnnent attincics, Burn engaging in conduct which assists, in any manner, the angst, detention, interrogation, or deportation of an individual for invnignition purposes. To the extent those broader prohibitions might create a conflict with the Values Act, it is not clear which language would control. 3) Reenactrocnt Clause of the California Constitution. "A section of a slalute may not be amended unless the section is re-enacted as annended." California Conct.. Art. 1V, § 9. Under this provision of the State Constitution, the I.egislature is required to reenact a code section when passing legislation which amends that particular code section. This is intended to cnsw-c that legislators MICTStand the scope and effcet ofthc hill they arc voting em- Tit reviewing the contents ofa bill that amends a code section, this 11110 allows That the bill reader to easily idantilq amcndrnenLS to existing law because Lhc bill will set I6r1b the changres within the context of tile cun-ent statute(s). One purpose ofthis constitutional hrciyic inn `Se to mjl-r 2lm- 1r 211tnr< err not nhrr':It m. in Th. Wind uilt.-n t11,47 arn.•n,l q4L•Ct 0kAPQAd to n-lake sure the public can becxrr-t4 ap�a&d of changes in tine 1 12(Mj, AB 937 Page 7 Gillelte Cornpany. el- aL, v- Franchise Tax Board (2015) 62 Ca14 " 468,483. Thu hill would amend the Vahles Act by repealing the portiorus of the Values Act which allow law enfi>rcenlent to cooperate under certain circuunstances- Rather than amend the Values Act, this bill creates a new statute and the repeals the portions of the Values Act by cross reference- By Bailing to amend the Values Act, it a-cates conlitsion about how this bill will change current L1ty. To the extent that the provisions, of this bill conflict with the Values Act, it is not clear which stalmlc would contr-oL One example of a potential conflict involves the directive in the Values Act for the Attorney Galcral to develop model policies. The Values Act tu)uircd that the Attorney Gencral to publish model polices Inviting assistance with nnnigration enforcement to the tallest extent possible consistent with federal and ,[Late law at public schools, public libraries, health facilities openucd by the state, coumhouses, division of i abor Standards Enlin-ecnlent liciliics, the ALnricultur:rl labor Relations hoard, the Division of Workers Compensation, and sllcllcra. iJnder the Values Act, certain agencies are rculuil-cd to adopt those polieics, and the other entities are enaluuaged to adopt them- Would the provisions of this hill take precedence over couyrli<ance with the pohcics generated by the Attorney General if there was a conflict between the policies developed by the Attonley (ienelml and the provisions Of this' bill? Fxpressly amending the Values Acl would provide legislators and the public clarily about how the provisions of this bill arcintenc9ed to iteract with current law. 4) The Language in This Bill Prohibiting a State or Local Agency From Assisting Immigration Enforcement is Quite Brad: This bill spceilics that a "state or local agency shall not an'est or assist with the arrest, confinement, detention, nanster, inten'ogation, or depcntation ofan individual for an inlmigeltion entorecnetlt purpose in any manner, ..: I'o 'assist an inonieration cntorcetlent purpose in any manna" cove's a wide range fit bchaVIOI-, including. rr akinK inlortnttion available That lanul.agc is broad enough that a slate and local agency will need to evaluate whether any action it enLAges in alight assist in ulvnij�ratiorl entoreenlalt, reguclless oftvhether the action night have a policy purpose uulanlllecled to ininitn-ation enfiwcenlent- Any vilbri ><ation that a state or local agency shares with a tederal en* makes it likely that such itAirmlation would be accessible by federal itnrnigration authorities. it could be diflicuh for a ;tale or local agency detelinne it' any i1fornlltion shared with federal agency ntiomt "asset" an immigration errfr)rcenlertt Purpose leacltrg to an interrogation. detention, of uhitrlatCly deportation. State and local iagellCleS WOuld face a stllllar problelll with 1111 1-11LIuoll that is avalaabee to the pllh11C ellller via a website or through a public records request. If such itfornration could assist with immigration cniorccnent, should the state or local ag*cnc.y Iticasc such) inloinution" This bill would expose any state or local agency to civil liability if the agency assists in»nigration ClIforcennent in any Intoner. 5) Lawsuit Challenging the Values ACT (U.S. v. California): fhc tcderal eovel•nmcnt tiled suit in Ucral court to challalge the Values Act assennlg that the VALICS Aa was pi-ccmpled and violated the sgn-enucv clause ofthe i1-S- Constitution because the Values Act r�v�wnuL vl un `S aiclarlr" In li vlr r:al lrnrrv$,rwlinn Doti ...........l City Council 21 — 13 5/4/2021 A-B 937 Page 8 A 2019 decision by the 9`t' Circuit Court of Appeal upheld the lcIgitirnacy of the Values act - (US' n_ California (2019) 921 Fad 86i) The i1-S- Suyn-ente Onrt stdxequernly declined the oppormltity to review the case. The case was tint heard it tedeml district court. 7'he Distict C.Onrt held that the Values Act was not preempted by federal law- "Califnniai s decision not to assist Icdcral immigration enlbrcement in its endeavors is not an -obstacle' to that enfrxcement ethxt. rThe United Stmes'j ragunient that SB 54 luakes immigration etiforcenent far more burdensome bed due question: norc burdensome than what? The laws make enlirrcement more burdensome than it would be if state and local law enforcement prodded intnigration officers with their assistance- But rcfsing to lolp is not the sank as i ipeditg- if such were the rule, oWacle preemption could be. used ro conm;rndeer state resources and subvert tenth Amendment principles." (California L. 314 F. Supp. 3d at 1104.) l'hc case was appealed to the 9"' District Court ofAppeal which upheld the decision ofthc district court rcg m-ding the Vahtcs Act- The 9"' District Court of Appcal stated, 'Even if SB 54 obstructs federal immigration aifin-cemait, the United States position that such obstruction is uulawfid rams directly atirul of the Tenth Amendment and the artticommandeering rule-" (US_ r- California, at 888-) The United Slates' prmnary an*Ltmclu autinst SB 54 was that I lirrc•.es Cederal authorities to expend seater resources to enforce iumigration ktws. llowever, the 911' District Court of Apical lounid Ihal would be the case reeardless of SB 54. since Calilonm would still retain the ability to decline to administer the izderal program under the anlicommandeering rule. Under the anriconunlandeering rule Congress cannot issue direct orders t state legislatures and vernits a state to refuse to adopt federal uohc•.ies- The court ltekl dint even it the absence of SH 54. Congress could not "impress into its service —and at no cost to itself —the police officers of the 50 States." (Id. at 889.) fhc 9`t' District Cows ofAppeal noted that: "Federal schemes are inevitahly frmsn-ated when states opt not to participate in f deral nroerams or enturoement ettoiu. But the choice of state to ref ain from participation cannot tie invalid under the doctrine of obstacle preengttion where, as here, it retains the rit*jnt of refitsaL Extending conflict or obstacle preemption to SB 54 would, in cfLct, dicLtlefl what a state le-fislature nxty and n-Uty not do.' lfur•nhr. 138 S- Ct- at 1478, because it would imply thirt a stags otherwise ltwfid decision motto assist federal autholvics is made t1111awful when it is codiLd as state ltw." (Id- at 890.) This bail would expand on the scope of the Values Act by extending the prolrbition on cooueration with imrnuTation authorities to all state and local agencies- The reasoning behind the 9"' Disb ict's holding in U.S. r. California would likely continue to apply to the extlansion in scope- Howc%/m this bill potctritlly cotillicts with existing lederal statutes require specific types orconnnrulication on innnio-ation status to be exchanged between immigration authorities and state and local entities. t he Values Act specifically allowed law atft>rccnrent to comply with two frdcral statutes ..,r .., :. .,..:.... .«s-..,.,...,, .,t (v rr c r l z;j, AJ .t 441 .J 4 tr c r 1444 ) -n,..P,. Qj Mtjgg6Ar A)it a state and local government fi-orrR%-Falr way restricting any ,ew"QAr AB 937 Page 9 entity or official firm sending to, or receiving front, the Immigration and Namrallmlion Service infrrmation regarding the citizenship orfirminuration status of any individual. As part of its challenge to the Values Act, the United States contended that R 11.S.C. 1373 directi_y prohibits the infornwion-sluiring restrictions of the Values Act. the 9"' Circuit Court, of appeal disagTucd and noted that the VaILICs Act expressly perurirs the sharing of such udma-ktion, and so does not appear to conflict with Section 1373. This bill does not specilically reference those federal statutes or the sections of the Valries Act concerning those stances. Therefore, to the extent the Values Act contunles to have e&ct beyond the cluncunc lit of this ball, perhaips law cli orcerrx rit agencies would still be allowed to comply with chose federal stalules. this hill does not provide an exception allowing state and local agencies (uuauding law cliorcenxnt) to comply with those Lcdcral statutes if stICh amynliance would otherwise be prohibited by this hill. The prohbinons in this hill on state and local agencies actions dui assist irr immigration enforcement would seem to include a prohibition on sending any inf nriation to immigration aulhoritics if it would assist ur iniuiCration cutoreancut. Without express movisions allowing state and local agencies to comply with those federal statutes, it does seem more likely that a coat could find that this bill is in conflict with, and preenIpted by, federal kiw. 6) Argument in Support: According to the Lrritiate.hWice, "When California's jails and prisons volimiarily and tavrhecessaril_y transfer unnrigrani and refugee comma nily incinbers eligible fin- release li-om slate or local custody to 1CF fbr innnipalion detention and deporration purposes, they subject these conummity menibers to double punishment and perpeu4al tratnna. Connrurnity members can be incarcerated by ICE, olien 16r prolonged periods and with no right to bail, and deported --permanently hanishing them from the cormay, from tutu- tanilics, their hones, their livelihoods. "As the state with the largest immigrant wnnrrnlnity in the Country, Calitbrnia has an ethical and moral obligation to step up our leadership and take action to protect tlrc tights ol'all refilgecs and immigrants who call Califunia home, including those for release from inv local jails and ,tau; prisons. if we -Atoend the cruel practice of ICE uanstcrs, Califunia will continue to actively participate in the separation of in -migrant and refirgee hrrnilies, and inflict irreparablc harm to those who cane here fleeing war and genocide or to sinnply build a better life l6r themselves and their children. "Moreover, state and local participation in federal uhaivgration enlorcctnctn prog,ins li,s rfi:;ed constilulional concerns, including anesls and detentions lhal violate the Fourth AmendnKnt to the United States Constitution, and that target i nrigrants on the basis of race or ethnicity in violation ol'the RILLal Protection Clause - ' Transferring Caifornia residents to ICE custody is costly. By ending vohrnuary ICE uanfers_, California stands to save state reotn-ce that can be invested in mental health, housing, youth development, and access to living wage-- all of which have becrl proven to tcduec clink: and stabilize arrrununitics. YdgA1gfifdl their record of rehabilitation"saable4emily plans, and community F�Si4H l AB 937 Page 10 purely because they are refugees or immigrants- Ending TCL [ranters in Califon is is it necessary step in fillfilling the state',, commitment to ending racial injustice and Ills,, uhcarecntion." 7) Argument in Opposition: Accorduig to the Peace Oft seas Research Asocicrtdon of California, `AB 937 would prolnbit any state or local agelney fi7om arreslmg or assisting with the arrest, Wrifinemenl, detention, n-ansfer, interrogation, or dehorlation of an individual for all itnndgration entorcermcirt purposes. The bill would additionally prohibit state or Local agencies or courts from using inm» gration stattu as a factor to deny or to reconmaend denial of probation or participation in any diversion, rehabilitation, mentsl health program, or placement in a credit -earning program or class, or to determine custodial classification level, to deny n> uuiauny sugnertiision, or to lengthen the portion of stgxrvision served in custody- ` -Congress defiled our nation's inm»gration laws in the Tnnniln-ation and Nationality Act (INA), which contains both criminal and civil enforcement measures. POItA(' cannot support it Stalc bill []]at l6rccs our Slates public Salcty olliccn to stand by "title our Ucial cowrterinarts are injured or killed in the perfihmiance of their dirties- To addition, if the federal govcrlr<ncnl rcquires our involvemcnl, such as Ierr7[oorarily housing all caidoctatiented anestee, then it is our responsibility to adhere to the needs of the federal government- This proposed legislation pats local law enforcement in a no -win situation, having to choose between state and federal Laws." b) Related Legislation: AB 263 (Borrta), woulel specify dvai prMic detention centers are subject to state and local health orders. AB 263 is on the Assembly Floor. 9) Prior Legislation: a) AB 2596 (Boma), ofthe 2019-2020 Legislative Session, would love elitnittated the existing ability tin- law canfi»-ecnncnt agencies to cooperate with federal immigration authoritu.s by giving them notification of release fior inmates or facithatung iilrinate. harmers- AB 2596 was never heard in Assembly Public Safety. b) AP. 2945 (Allen), of the 2017-2018 Legislative Scssiotn, would have repealed the Calil6roia Values Act SB 54, which defines the circumstances wader which law enforcement agencies n13y assist in the enforcement of federal immigration Laws and particg)ate in joint law enforcement task forces. AB 2948 flailed passage in the Assembly Public Safefy ('onrnlitlee. c) AB 2931 (Patterson), of the 2017-2018 Legislative Session, would have ex}lande(I the list of qualifying criminal convictions which permit law enforcement to cooperate with 112dClal itnn»gration aulhoritics. AB 2931 lailcd passage: in the Assembly Public Salcty t_-ohrulTitt c. d) AB 299 (Gallaghc-), of the 201 7-2019 Legislative Session, would have repealed the IRUS1 Act and required Law enforcement to cooperate with federal urunigiation by dctituting an undividurrl convicicel ofa liaony lirr up to 48 hours on an innnigration hold, as specified, after the person became eligible for release fi-om custody- AB 29N filled City Council 21 — 16 5I4/2021 AB 937 I'age I I c) AB 1252 (Allen), of the 2017-2018 Legislative Scssion, would have wpealed the TRTJST Act and prohibited state grants to coturty and local "sanctuary jurisdictions." AT3 1252 tailed passage ur this convnttcc. t) S13 54 (De Leon), C.Impter 495. Statutes of 2017. limited the involvement of state and local law cnlon:ancnt agencies in Icdcral in-unigwation enl6rccnu nt. g) AB 2792 (Boma), Chavrer 768. Statutes of 2016, ranmros local lirw enlorcemeni aecncics to provide conies ol'snecilied documentation received fi-om ICE to the nidividiml in cnstodv and to notify the individual regarding the intent of the agency to compiv with ICE rcquCsts. REGISTERED SUPPORT / OPPOSITIC)N: Support Alliance ter Boys and Men of Color (Co -Sponsor) Alliance San Diego (Co -Sponsor) Asian Americans Advancing Justice - California (Co -Sponsor) Asian Ptisoner Support Corrrrniuee (Co -Sponsor) Califomia Coalition for Women 1'risoners (Co -Sponsor) California 1lunigrant Polu;y Ccmcr (Co -Sponsor) Center for 1-mliowering Kefugees and Innnigrants (Co -Sponsor) Comnntnitics Unitcd for Restorative Youth Justice (CURYJ) (Co -Sponsor) Connnunity Unitcd Against Violcnec (Co-Sponsot') Freedom for htnnigrants (Co -Sponsor) Ice Out of Mario (Co -Sponsor) finmigrant Lcgal Rcsotn-cC Ccmcr (('o-Sponsor) Inland Coalition lirr lnunigant Justicc (Co-sponsor) Tntcrlirith MOVemUnt l6r Hunurn Tntc g61y (Co -Sponsor) Legal Services frrr Prisoners With Children (C'o-Sponsor) Long Beach lnvnigram Rights Coalition (Co -Sponsor) orange Cotuity Rapid Response Network (Co -Sponsor) Re:stofe Justice (Co -Sponsor) Sanut Barbara Comity Action Nemork (Co -Sponsor) Secure Justice (Co -Sponsor') South Bav People Powcr (Co -Sponsor) the Orange Comity Iwtice hlmd (Co -Sponsor) Vietrise (Co -Sponsor) Young Womcris Frocdom Ccmcr (Co -Sponsor) Youth Justice Coalition (Co-Sporrsor) Monza Alliance of Califirmians fin- C`onmutnity Frrrjxrwernrc rrt (ACCE) Action American Civil Liberties Union/northern California/southern California/san Diego and hnperial C UnrrhCS Asian Sohdariry Collective BoeQ'tjVQfDLIfti1ed Methodist Church Tnrrni�p-ation Mlimrih7e 5/4/2021 AB 937 Page 12 Calitnnia Public Dctondcn Association (CPDA) California United fx A Responsible Budget (CMM) Calitomiahcalth+ Advocates C.alithrmans fiw Safety and Justice Church World Service Conmumity Jniticc Exchan� Community Lepl. Services iu East Palo Alto Contra Costa hrnifigrani Riorts Alliance Coura:;e Calilimlia Critical Resistance Drug Policy Allitutcc East Yard Cotnnnrnities Ibr FIM-011111ental Justice Elb Baker Center lot Hnnk9tl Rj" IIS Empowering Pacific islander COrlminlitiCS (EPTC:) I(qual Rights Advocates Filipino Migrant Ccntcr Friends Conmrittee on Lgoslation of Califi)mia Hupe for All: Helping Odters Prosper Ec;ouonvcally TIM-un hrpact Parhren 11minn Rights Watch hnnritn-ant Dcicndati Law Center hmuigrant Defemse Advocates Indivisible Sausalito initiate .Tu.fce hvine United CotigregatiomI Church -- Advocates for Peace and Justice Kelttlla Community Synagogue Khmer Oirls in Action Lakeshore Avenue Baptist Church Long Beach Southeast Arian Anti -deportation Collective Mixteco Indiggena COmmTInrity Organizing PrOjcct (MI('OP) Nctwott in Solidarity With the. People ofCivatcnula NewTiridges Preshyterian Church Nikkei Propa•csstvcs No New SfJail Coalition Norcal Resist Oakland Privacy Or Shalom JewL4i Community Orange COttvly E'rltkallly C0,111011 Pangea Leprl Services Pico California Pillar; 01"Me Cinntnurlity San Diego; County 0f San Francisco PCritrsula People. Power San hr-aneisco Public Defender Showing Up for Racial Justice (SURJ) San Diego Showing TJp l6r Racial Justice North County Southeast Asia Resource Action Carta' Surjg6 21 — 18 5/4/2021 AB 937 Page 13 Survived and Punished Team Justice Tiludc Dignity UC Berkeley's Underground Scholais Initiative (UST) Uncotnuion Law UtIltatlan Lltuvazalisl Fellowship ol'Rcdwooel City, Social Action Conn-tuttcc Viet Rainbow of Orange County We the People - San Diego Woman INC. Women for American Vahtes and Ethics Action Feud Woolen For. Orange Cotutly Oppose California Poliec Chicts Association California Statc. Shcri85 Association Peace Officers Research Association of California (PORAC) Analysis Prepared by: David Billingsley / PTJR_ S. / (91 G) 319-3744 City Council 21 — 19 5/4/2021 AB 937 Page I Date of Hearing: April 20, 2021 ASSEMBLY COMMITTEE ON JUDICIARY Marl, Stone, Chair Ala 937 (Carrillo) —As Ameended March 22. 2021 As Proposed to be Amended SUBJECT: IMMIGRATION ENFORCEMENT KLY ISSUE: SHOULD SEVERAL PROVISIONS OF EXISTING LAW THAT LIMIT THE AHILI I OF Sl A I F; AN I) LOCAI, LAW F;NFORCF;MF;N I 10 COOPFRA I F, AND SHAKE IN[-ORMATION WITH FFDI{RAI IMMIGRATION AUTHORIIIIiS III(STRI;:NGIHI[NFD AND EXPANDED SO THAT THEY, AMONG OTHER THiNGS, ALSO APPLY TO ALL SIAII{ ANT) LOCAL GOVF;ItNMFNT AC;FNCII:S AS WI-11, AS I III[ C.AHI'ORN[A DEPARIMLNT Oh CORRECTIONS AND REHABILITATION? S) NOPSIS This bill, the Voiding lnequality and Seeking Inchrsimi f)7. Our• Immigrant Neighbors (VI,S1ON) Acl, w,ouhf prohibit (al! state cold local agencies (includink* law e)lforcenteitt agencies and the California Dcparlment o/ Corromons and Rchahilucuion) from doing any of rho following: 1) Arresairrg ur assisting with the arrest, confinement, detention. lratts/er. interrugatiort. or depot tatirnr (?tan individual for an immigration enfor(ementpu ipose in any manner'- ?) TWng itnrnigrcttion status as It factor to deny or to recontnlcnd denial of probation or pa7 tlCtpatn717 m anB dil'er.SiOn. rehabilitation. mental health prop am. 07 171aCe)nent m a credit-earrting prograil1 rrr class, or to determine ctistnd7nl -hi ssijuWho n level, to deny metttdaturvsupetvisioit, ur to lengthett (he portion u/supervision seined in cusvodv. These prohibitions would app/1" cwCordnxg to the bill, 710l1i17thct0nd77rgony Contraij' prnviSli 1IS in C.eisling htw specifically including,, those itt the California Vahaes Act which allow, for slate and local Icrw criforcernew agencies to cooperate wnh federal immigration aulhor•ilies under certain specifhed and limited circumstances. The analysis reviews the long hktory of A,E employing methods that range from inhumane to illegal, at least as earls as the Obama administration, wo senhlg during the Trump administration. and contirnting tlxrnugIt today. The analysis explctirzs whp, evert though the VahwA(t. current California law that linlits law ett i)rc ement ill volvoment in immigration enforcement activilies, wu_s adopted in reaction to the Trump administration's pur•zicularly care/ policies. even greater restrictio7rs on the use of public r<sorrr•c 4:4 to assist 101. (rs proposed by the bill, arc accessary. The octal) Sig also addresses the/act taut the bill does not amend or repeal the Falues Act, bill instead is a parallel statute, crealing less than ideal (hirr); about how the Ill laws would interact. It &SC asses why the bill almost certainly does not violate the slate cointitntion's reemactntent clause. but could possibly be subject to a conflict preemption challenge, Finally, the analysis discusses the fact that the bill imposes civil hability oil (overnnxent enxplavees and agencies' for violating the bill's probibilions, all excepliorr to the general rule ofgovernmentulirrznxuu7ity_ lit order to address the passible. but remote_ concern that some aspects of the hill could raise ro)jPihlljl%Q1UCjIIilon concerns, the antherproprrscs to2t1�c2&,o clan-tty ng amem/me51AIR'112M the A-B 937 Page 2 aulhor tntends to amend the hill to acid additional intent htrnguage, clarifving that it is the intew ofthr hill to he ronsistent with federal knv. !Sorond, the authorpropo.w.v to add a severahilirl, clause to the hill so lhat in the event (hat anv Portion of the hill should he invalidated. other hortion.v of the hill would rematll ill effect. The hill, which recently was approver] by theAssemb(v Public Safely Committee, is co -sponsored hl) a large Co alttiml of sooal jillsm eoTf;am=at7olts led hV AS1117t Amcri ims AdVan l7lg hrS7tce — Asian Law Caucus aml supported be dozens of"civil rights, criminal juslice relorm, and immigrant advocary organizations. It it opposed hi, three lair enforcement organifelaonc: Ct7lif )rnic7 Police ('hlefc Assoeialiort, Callfi)rnia .State.Sherl//r' A.rs<rclalio7t, amd Peace Offlcers Reaearch Association ofCatifornia (PORAC:)- SUMMARY: Prohibits state and local law enforcement .agencies lion cooperating with fderal inm11lTLItion authorities, or assisting in the detention, deporL<tLion, interro�;atiom ofanindividtitl by minu Jatlon etlforcentent. Specifically. this blll: 1) Specifies that it state or local agency shall not arrest or assist With the an-est, confinement, detention, tr, :angler, interr'ogition, or deportation of an individual t6r art immigration cnlbn:etlrent purpose. in any rrriuune- including, buL not limited Lo, by notifying another agency or subcontractor thereof regarding the release date and time of an individual, releasing or transtcrring an individual into the custody ofaoother agency i)r subu)ntFactor thereof, or disclosing personal infimnation, as specified, about an individUal, including, but not limited to, an individuaI's date of birth, work address, hone address or parole or probation check in date and Linnc Lo another agency or stdaconLracun- diet -cot' 2) States that the prolnbition described above shall apply notwithstanding any cotnrary provisions in the California Values Act, as specified, which allows law enlbrcennent to cooperate with immigration authorities in limited circumstances. 3) Specifies that this hill does not prohibit compliance with a criminal judicial u,arrant- 4) Prohthils it state or lord agency or anu-t tram nsnrg irrnrtig-a Lion slauty as a Iaclor to deny or to recommend denial of probation or participation in any diversion, rehabilitation, mental heallh program, or placement it a e-cdit-earning program or c) us, or to deterntuie eLutodml classification level, to deny nnan(talory supervision, or Lo lengthen the portion of supervision served it custody. S) Defines the fi)llou-ing ternrs firr putlloses of this bill_ a) "hnnnigraliun enforcement" includes "any and all elTorts (o investigate, enrlorce, or assist it the investigation or enforcement of any federal civil i imiglalion law, and also inclLalcs any and all cltort to investigate, enforce, or assist in L}lc investigation or enforcement of any teder;al criminal innmigration law that penali7eS a person'S presence in, entry, or reentry to, or employment in, the. Untied States." b) "State or local agency' iticitdes, but is not l nihed to, "local and state law ciiD.ircement agencies, parole orprobation agencies, Lhc Dcparuncm ol'7uve1ilc RbL1CC, and the Department of Corrections and RelurbAtwtion." City Council 21 — 21 5/4/2021 AB 937 Page 3 6) Spccifics that in addition to any other sanctions, penalties, or renxdics provided b-v law, a person may bring an action firr equitable or declaratory relief in a com of cornpetent jurisdiction against a state or local agency or state or local official that volates this section. A state or local agency or official that violates this section is also liable fill- acttctl and general damages and reasonable attorney's fees. 7) liepeals statulory provisions directing California Department of Correclions and Relt<abilitation (CDCR) w inplcnrcnt and maintain procedures to identify irrratcs serviig teens m state prison who are Im(1ocLurrented aliens subject to deportation. 8) Rcpcals statutory provisions di'ccting CDCR and Calituroia Youth Authority to implcancnt and naintain procedures to identify, within 90 days ofassLunin= custody, innnates who are undocumented felons subject to deportation and refer them to the United States hillnig atom and Naltnalizalion Service- 9) Repeals statttkiry provisions directing CDCR to cooperate with the United States Inn»igalion and NautraliirrLion Service by providing the use Of prison facilities, transportation, and general support, as needed, for the purposes of conducting and expediting deportation hearings and subsequent placertncnL ofdcportation holds on uttdocLun>LnLcd aliens who are incarcerated in state prison. 10) Repeals the sliauthnry directive to include place of birth (stale or cotunuy) in state or local crintittsl otfndtr recorditYormation systems. 1 1) States that, to ensure an equitable opportunity for noncarceral, rehabilitative and diversionary dispositions or custodv status to all persons irvolved it the critvrlial legal system, i-cspcctive ofinmrigration status, it is the intent of the Legislaun-c to abrogaLe case law that is inconsistent Will this vahle, including but not limited to, People v. Sarache- (1987) 190 Cal.App3d 224; People v- Cisneros (2000) 84 Cal.AppAth 352; People v. Espinoza (2003) 107 CalAppAth 1069; People v_4we (2017) 11 Cal-AppSth 613- 12) Makes other lindings and declarations - EXISTING FEDERAL LAW: 1) Provides that any authorized inviti ration officer May at ally titnc issue au hrutugration DeLainer-Notice of Action, to any other federal, skate, or local law enfi rcement agency, which serves to advise another law enfncement agency that the Department of Honnelarui SCCLIrit-y (DHS) seeks custody of an alien presently it dre eLL;tody of that agency, for the purpose of arresting and removing the alien; the detainer requests that the notified agency advise the ll11S, pror to release of the alert in order for the D11S to arrange to assume custody, In SALLaliOn5 when Mitring irrmicdiate physical etutod_y is either itrynacticable or impossible. (8 C.I',It, Section 287.7 (a).) 2) Requires that, Lrinon a detemnination by the T)TTS to issue a detainer for an alien not otherwise detained by a critniml justice agency, such agency Amfl maintain custody of The alien for a period not to exceed 4S hoLns, excluding Saturdays, Sundays, and holidays in order to pewit assmq)Tion of custody by the DIIS. (8 ('.F.It Section 287.7 (d).) City Council 21 — 22 5/4/2021 AB 937 Page 4 3) Authorizes the Secretary of Hoincland Scc uiry to carter iruo agrecrvents that delegatc inmtiLn-ation powers to local police- (8 11-S-C- Section 1357 (g)-) 4) SLues that notwithstanding any other provision ofFederal, State, or local law, it Federal, State, or local government entity or offici<a I imy not prohibit, or in any way restrict, any goverruncril entity or ollfci<al born serilitg to, or reeeiving liom, the lnutigrcatiorn and Naturalivation Service 41formalion repirding the ciliienship or immigration status, Iawfirl or urilm,fill, of any individuaL (8 U.S.C. 1373 (a).) 5) States that notwithstanding any other provision of Federal. State, or local law, no State or local govcrnuxnt entity rmy be prohbitcd, or in atty way icstrictcd, fitin scudiul; to or receiving from the TmmyTation and Nattrralimtion Service mf6 notion regtu-ding the invnigratio n slants. Lawfill or unlawful. of an alien in the United States (e U.S.C. 1644.) EXISTING 'S FATE LAW: 1) Defines a --Califiwma law enfirrccm rn aneracy" to mean a state or local law crfirrecnacnt agency, inchuding school pohce or security depaiTnxtvts, but not to inchude the Department of Corrections and Rehabilitation. (Gowninwnt Codc Scction 7284.4 (a). All liither statulory references are to the Government ('ode, unless otherwise indicated-) 2) Provides that it law enforcement official shall have discretion to cooperate with tumiganon authorities only if doing so would not violate any federal, state, or local law, or local policy, and where permitted by the Californa Values Act- (Seclion 7282.5 (a).) 3) Prohibits a California haw enforcement agency fiom perlorrning a tnunber of umnigration- rclaLed activities, inchuiing the 161lowing: a) Using apmey or departnrin moneys or persotnrtel to itvestigate, iicrrob-ate, iletaitt, detect, or arrest persons for intnrignalion enforcemenl ptnposes, including providing information regarding a person's release date or responding to requests for notification by providing releasec dates orotha- inlbrmation Lmless that information is availablec to thc public, or is in response to a notification regtust fi-om immigration authorities. (Scction 7284.6 (a)( I )(C).) b) iransicrring an individual to immigration authorities Lu4css authorized by a judicial warrant or judicial probable cause determummon, or ni accordance with esiiLing law. (Section 7284.6 (a)(4).) 4) NuLv`ithstanding 3), abo%e, allows any California Iaw enforcement agency Lo do the tollowing as long as it does not violate any policy of the law enforcement agency or any local law or policy of the jurisdiction in which the agency is operating: a) Investigating, enforcing or detaining upon reasonable suspicion of; or arresting for a \ioltttion ol'a specified innniga-ation offense LI-uL is detected dLifity an Lunelated law enforcement activity. b) Respcmding to it request fi-cmi irtn» gration authorities fin- information about a specific person's criminal history, inchuling previous criminal arrests, convictions, orsimilar r':f'Lr wi-jLd-irisLory inlina»ation acccsscd Lln-ouvliotkrc Gidif6rma Law F.nfitrccnac¢rtnrono• AB 937 Page S Telecommunications System (CLLTS), whet; othcrwisc permitted by state hew. (Section 728 11; (b).) FISCAL EFFECT: As currently in print this bill is keyed fiscal. COMMENTS: This bill, the Voiding Inequality and Seeking [nchtsion tor Our hnnigrant Neighbors (VTSION) Act, seeks to fin thcr the priorities of the State of Califinnia by prohibiting all public resources, including all state and local government agency personnel, facilities, and equipment, from being used to assist with the arrest, confinement, dCLCntion, transfer, interrogation, or deportation of all individual for an irnmigmation cn$ircennant purpose. Spcciticnlly, this bill would prohibit all state and local agettci", (including haw cntinuancnt agencies and the Califirmia Department of Corrections and Rehabilitation) fi-om doing any of the following: 1 ) Arresling or assisting with the arrest, confinement, detention, transfer, intenogrtlion, or deportation of an individual for rutinimugtation eiubreettcm purpose it arty IDaillim including the following: a) Notifying, another agency or subcontractor thereof regarding the release date and time of an individual, releasing ortransfening an individual into the custody ofannrher agency or subcortractor dtcreof b) Disclosing personal information about an individual, including, but not limited to, an individual's date of -birth, work address, home address, or parole or probation check in date and time to another agency or subcontractor thereof. 2) Using immigration stratus as a factor to deny or to rccomnntnd denial ofprobation or participation in any diversion, rehabilitation, mental health program or placement in it credit- caining pro�Tam or class, or to tictcannine custodial chtssification level, to deny ttiandatory supervision, or to lengthen the portion ofsupervision served in cusody. These prohlnitions would apply, according to the bill, notwithstanding any contrary provisions in csisting law—spccitically including those in the California Vales Act --which allow for state and local law enturce rent agencies to cooperate with federal immigration authorities tinder certain Spccificd and linlitcad ci-cunnrunceS. The bill is Iherefiare more restrictive than the Values Act in several ways. Fist, the bill prohabits disclosure orrelease ofpersoril infixmation about detrinees to federal iurnigration authorities, even when the hifornmtion is available to tlne pubie. Second, it prolnbis the transfer of detainees to federal irnniknation, including in cases where there has been a probable cattle delernnnnalion and Those iu which the detainee has been convicted of one or more crones specified it the Values Act; arid third, it applies to the California Department ol'Rchabilitatiou, and all state and local government agencies, as well as all other state and local law enforcement agencies. I inally, in order to help entorec its restrictions, the bill imposes civil liability on public abtincics and ciniployccs fin- violating its provisions. Anthor'sStuternent. According to the author, the grater protections otfcrcd by this bill because of well-docunented history of immigration enforcement authorities abusing individuals who are 11 tnev Ol k-Mriy: City Council 21 — 24 514/2021 AB 937 Page 6 AB 937 helps California realize its promise of protecting immigrant rights and teforming our criminal justice system. . _ immigration Detainees can find themselves housed in county jails and even private tacilitics anywhere in Amenea, taicilities beyond the oversight and accowrtability of the state ofCalifinnia where abuse and neglect is well docuuluented. All Californians, regardless of ciriwnship status, should get the chance to reiritegrcate back inn thou- conunwrilics and rounite with then- lan-nlics when they have paid thou- dchL to society. ICE regularly emplohs methods that range between inhumane and illegal. ICL was created in response to the Magic events of September 1 I, 2001, with a stated mission to protect the United States from cross -border crime and illeigil immigration that threaten stational sceiviry and public safcry. However, critics claim drat the agency has gained a nouaious record ofalluse, illegality, waste, and ineffectiveness fir carrying out its intended pwpose. TCR's abusive tactics are well - documented. They firclulc the separation of toddlers from thew patents, toteed sterilization, and inhumane tr-catnimt fir facilities. iCE has ther-ch e; camed a reputation amongst in>tnigration advocates as a dishonest and racist agency that regularly ignores legal lints. (,Yee. e.g., Afs. L. v. ICE (S.D. Cal.) No. 3:18-cv-00428, lilcd February 26, 2018; Flores v. (TUHLI)Id (C.D. Cal.), No. 2.85-cv-04544-DM(i-A(;R, filed Tune 26, 2020; Crew eta[ v. IC'P (T).D.(:.), No. 1 20-cv- 03120, tiled October 29, 2020.) ICE under the Obanra administration. Immigration advocates hewn criticizin£ ICI•, dtlrinp the Gcotvc W. Bush. HUWCVCr it was durinr~ the Obart a administration that intcmal rtimoval of innnitnants by WE reached what was then an all-time high. The Obania administration removed approximately 1,242,486 immigrants fi'onl the interior ofthe United States daring its hull eight years, averaging 155,311 removals per year. Data li-otn the earlier Bush administration arc more speculative. but they show an increase in deportations during the last halt of President Bush's administration. 'Mis increase continttcd daring President Obaim's titst rent bctin-c flattening and, finally, dropping rapidly in his second teen During his second temr, President Obama responcled to the outcry against the hot rates of deportation, which led to a pronounced shin in 16CUs to the renxrval ofrecent border crussers and criminals, ratter than orthiLl y status violators apprehended in the interior of the U.S. As a result. interior removals decreased sharply I�om 181,798 in FY 2009 to 65,332 fit FY 2016. Nevenheless, border removals stayed high and increased, from 207,525 to 279,022 over the same period. (See IransaclionaI Records Access Clearinghouse. Tfre Role q%ICE L)eluinery Undet-Bitsh and Obanra (Feb. 1, 2016), mWi/able ar htg7sJ/trac.syr.edu/itn111IW lliorl/reporls/458/.) President Obatnt switinarived this later policy as: "Pelops, not f�n>ilies. Criminals, not children. Gang rnernbers, not a mom who's worku� hard to provide lot her kids" (.See Bamek Obatna, Remorlcs by the President in Address to the Nation on lmmLi>rarion (Nov. 20, 2014), available, ntln),J/obamawhitehottse.atchiyes.gt)y/the-przss- ottice/7014/11 /20/remarks-president-aciclress-nation-invni i.ation.) WE'.s changed priorities under the Trump administration. The frump administration, however, changed the tcderal government's immigration entirrcemcnt priorities and tactics. Marry of those changes en>anute from Executive Order 13768:'Fnhancing Pud)IlC Safety in the Interior of the United States," which President Trump issued on Janikary 25, 2017, tive clays after Liking ollice. (Executive Ordel-No. 13769, 82 Fed. Reg. 8799.) President Trwnp largely echoed President Obarm in Itis rhetoric regarding his itnnigation enforcement priorities, stating that he tatepded n, filc'Lt5 on crinlinals. His 11cu4al polit ies, however, dralimucally expanded ate list of jpnnigrawn enfi)rcentenl priorities to include virtually every tutdocuntented person. Pursuant to CXCCutIVC orders from President TnI1I]n, on February 20, 2017, Dcoartntcpt of Homeland City Council 21 — 25 5/4/2021 AB 937 Page 7 Security Secretary John Kelly issued a pair of rrrenroianda changing immigration enforcement policy. Tn those memos, ",ecretary Kelly directed ICE to prioritise - Removable aliens who: (I) have been convicted of any criminal offense; (2) have been clanged with any critninaI offense that has not been resolved; (3) have committed acts which constitute a chargeable cril-rnnal ollcnsc; (4) have cn�rppcd in li-attd or willful nusrepresentation in connection with any official matter befiue it governmental agency; t5) lr<ave abused any program related to receipt of public bencfiis; (6) are subject to a final order ofrenxrval but have not complied widr then- lg4il obligation to depart the Tlnited States; or (7) in the judgnent of an inrrrigration officer, otherwise pose a risk To public safery or rvalional Scctav-v- (See John Kelly, Enforcement qJ the Immigrcrtion Luvcs to Serve the Narional Interest, U.S. Department ol'Homelan(i Security (Feb. 20. 2017) a( 2, as affable at httOSY/ut•ww.dlu.eov/sites/default/files/Dublicatioty/17 0220 S1 Erd��recrncnt-ol4ro- Tntrrriyni lio n-T Ar ws- to- Say c-thc-Nationa I-Tnta-cst-p(h C) ICE'.a rule ln-firrrrllJ� scrpurutions. On April 6, 2019, Attonrcy General Jctf Sessions notified all U.S. Attorney's Offices along the soutlnsest ba-der of a new "7cro-toler3nce policy" for both actual and attempted illegal entry into the United States by any individual, as provided under 8 T1.S.C- Scetion 1325(a)- The 7uro-tole anec policy directed these IT-S- Attorney's Offices (which included speciScd districts in California, Arizona. New Mexico, and Texas) To adopt a policy of prosecutnrg all Deparhrx;nt of Honx;land Security (DHS) referrals of illegal entry or atlarllted illegal entry to the extent practicable. (Atrornt'v General Announces Zcro-Tolerance Tonic- for CriminalIllegal fain ,U.S. Department ofRNUCe OIHce OfPublic Alums (Apr. 2018). available (it Ines//www.justice.goy/op r/nr/atto1-neY-6eneral-aruiounc•.es-rero-llert ice -polio criniLaal fldeeal-entry.) On May 7, 2018, Sessions elaborated on the policy by staling, "If you are snuggling a child then we will prosecute yotL, arud that child will be separated from -you as required by law. If you don'l like Thal, then don'l smuggle children over our border." (Attor•nev General Sessions Delivers Remarks Diseussirr = the Immi<_vrrtion EnJureemenI 21c tions al the Tramp Administration, t- S- Department of,ltrstice Office of Public Affairs (May 2018), available at httnsJ/www.justice._ov/opalspeech/attorney-general-,essions-delivers-renvarks- discu;sink-irimiknadon-cnforcemcnt-actions.) Unaccompanied rrvnois taker into DI IS custody arc supposed robe n-anstcrred to the custody of the 011ice ol'Relhgee Reseulen-rent (ORR) within the Department ol•Health and Htmxrn Services. )RR is then required to care for the cltildren in accordance with The Plures Settlernent Agteeinent. ' lris Agreement sets the minimum nationwide tandards fur the detention, housing, and release ofnon-cid/en juveniles who are delained by the govenrnem and, according to the North Cir tiff United StateS Coup of Appcai;, "obliges the govertrrx rn to pursue. a 'general policy favoraig release' of sru;h juveniles." (Bore-r S< ss•ions (9111 Cir. 2017) 862 F.3d 863 J 1•Yures created a presumption in filvor of release of the detained minor, and particularly favors icicasc that results in famly ramification. The Agrecmcnt provides that, unless immignrtion authorities determine the detention of a minor is required to secure the minor's timely appearance betirre the immigration court, or to ensure the Satiny of the minor irr others, the authorities mast rcicase the minor fi-nnn then- custody without unnecessary delay, to a parent, legal ettiudian, or other person or entity as specified. Ubid.) Instead, as a result of the 'lnunp admiuistratious zero -tolerance policy, thousands ofchildren were scoaralcd li•om their uarentS arui housed ill MUD faeilltiCS while their parents faced pro- itrji(lidodirvoileprl entry nnto the linited n>ity ultnilately res611`420]k1 AB 937 Page 9 deportation. In responsec to this, on February 26, 2018, the American Civil Liberties Union (ACLTT) filed Ale. T- v. TCF (..-D- Cal.), No. 1-19-cv-00d2S, a nationwide class action that sought tea Wilt and undo the 7Ytnnp admutistration's thmily separation policy. On June 26, 2018, the district court issued a preliminary injunction ordering the TJ.S. government to halt the family separation polic-_v, ;and to reunify all fintilies that had already been separated. the court also strycd the deportation ol' separated lan-rilics. The case is cUuTcntly Ongoing. However, it should be nowd that another particularly cruel form of tainily separation also occun-ed Under the Trtur,h administration due to TC.E. Many undocumented individuals lice with family members in comrrnunitics throughout the United Statcs. As a result of increased enforcement and raids by ICE otticials, such individuals have been apprrhendcd and detained in detention centers, severing their connections to their loved Ones, despite having no crmnmal record. (See Priscilla Alvarez, Familv separation mica the Tranrp admiltislralioa's imtn�l>ratiart legacy (Oct. 7, 2020), CNN, available at htg3sl/,A,ww.cnn.conn/2020/10/07/politics/n-u111P- Ermily-separation index.htrnl.) Transactional Records Access Clearinghouse. a Syracuse University -based roscarch urg.411ization, created aprolile ol'dctamccs held un 217ICE detention centers. As of June 30, 2019, WE was holding 44,435 people in cu.stndy. Out of this group, 58 percent had no crunimal convictions, wInlc abOut 21 percent had convnitled a nninor inliaction, such a uallic violation; and 16 percent had connniued winat ICE considered a serious cruaie, which included otienses such as selling marijuana. Tnavactional Records Access Clearinghouse, Profiling Who IC'EDetains -Fery Committeel Atny Crime (Oct. 9, 2018), available at httpJ/u;tc.syr.edtdimmigration/repor(s/530/.) The impact of these policies, particularly of family separation at the border, is ongoing. As of October 2020, hundreds of separated rrmilics hats still not yet been reunited. Despite court orders to reunify dtcsc rnmilics (See Ms. L v. ICE. supra), pour ttcord-keeping incrt;ascd criminal prosecutions of adult family members, and deportations of parents w¢hout their children have 1>utdered rouni ication efforts. (See Kaitlyn Dickinsor>. Parents of i4 i children separated at the border cannot be found (Oct. 21, 2020), New York Times, available at htttnsl/www.nvtimes.cnm/2020/10/21/us/nntirant-children-seaaratul.html.) For a htr more thorough review of 10E's history ol'abUuiing detainees, Uu nrg deceptive tactics to carry out its raids, mimimaging its hudgel. misleading Congress, and suuggling to carry out it core nnission to protect the safety of the nation, please sec the Conuautice's amlysis ofAJR 1 (Kalra), which proposes t) abolish 1CF,after hamslening its duties to other federal ollicer and agencies m an orderly L shion. Now that Donald Trutttp is no longer precitlent, why i.e the bill necessary? TO 2017, motivated by the Trunit) administration's cntcl and cxtrcnx utunigatiOn pOh6CS. California passed a number ofnneasures to protect residents of the state, inclUding uundocunnented immigrants - Among these were three "sanctuary bills": A13 450 (( W. ('loop. 492, Stats. 2017, dealing with irking atiun nnspcchun ufwurl:placcs), Ala 103 (Conunincc un Public Sal ty, Clutp. 17, Slats- 2017, imposing inspection requirements on farcililies lhal mouse civil innmigranoo detainees), and ST3 54, aLso known as the "Values Act" (DeLeon, Chap. 495, Stats. 2017, linuting the cooperation between state and local law enfirrcement with federal inrrnigratioar authorities). In response to a Tnn»p administration challenge to the laws, the 91h Circuit Couat of Appeals upheld must parts olall three. ultluan (LI-S. t, Culi%ornia (90' Cir. 2019) 921 Fad Sbs- cert. denied, U.S. v. California (2020) 141 S. Ct. 124.) And while DOn;dd liauTTP's presidency may have inspired the Values Act, it is also true that the suffering and abuse of immigrant City Council 21 — 27 5/4/2021 AB 937 Page 9 amnnunitics intlicied by ICE that motivated the I--gistniun: to enact SB 54 began long bef7re. the TrLunrp adnrinisnation and still persists today_ The recent rise in violence directed at the Asian Pacific islander (API) C'onnnturily is the latest development it a long history of bias and violence against margirralized communities, iv:hrding by abluc of the itntnigration system Wl&- the in diir aril the; public have focused on the recent rise ofuaun>ilic and honendotLS interpersonal acts of violence a�-,tinsl Asian and Pacific Islander American coumittnity ncnbcrs, it is also iurport<ant to also recognize the less discussed large- scale and multi-generruiotral irrlpaCt of systemic. violence against APT canmruniLies. At sLrch a tine, California would be rcrriiss to not rctlect on and address its role in the criminal i7ation, family separation, and perpcntal plinishment Of APT refitgec communities. Southeast Asian refugees have been especially irgracted by mass incarceration, ICE transfers, and deportation. U-S. involvement in the Vietnam Warand U_S_-led carpet bombing, in SOLrtheast Asia caused mass migration ofrefirgees from fauns, Cambodia, and ViettlaIn to C:al.116Mia. Southeast Asian refugees who resealed iu Cahi6rni<r were generally honied it poor, hyper-criuilialiced, aril under-rexnlrced neighborhoods with little to no cullwally competent support services. Southeast Asian refugcc children — likc other Jinatigrants -- laced incise bullying. At the saine ii<ru, all of thasc youth as well as those who were Black, indigenous, and pcoplc of color (BIPOC) a 1ggkd to survive the 1990S a decade narked by a proliferation of local and national "tough on crime" P0116cs, including mandatory nnininuun scntcnccs, the "war on drugs" and scnlencing children as adults it criminal proceedings - In 1996, IT-S. Congress passed an inrmigraLion bill that severely limited immigration rY licl' lin- non-iT.S. citizens with criminal convictions—hrchrding refirgees <urd Been card holders. I3y the time Soudtcast Asian reiof;oc children, whose lanrilies survived laritine and genocide, were teenagers, the school to prison to deportation pipeline was in full ellect. The perlcet storm of draconian criminal justice and inunigratioo laws risulted in not only the mass incarceration ofthe inrn»grant and I31POC comnntnitics, but also the mass deportation of Central American, South American, and Southeast Asian refitgees. 'I'oday, Southeast Asian refugees arc. at Icast tin -cc times more likely to be deported for past convictions than other inuiligiaut commullitics are. In 2018, at Least 16,000 of the 2.7 million Southeast Asians hr the United Slimes had received linal deportation orders, more tlurn 13,000 ol'which were based on past criminal records (Transactional Records Access Clearinghouse, `iT.S. T)epornion OuLCOnres by Charge, Completed Cases it 1nwvgration COUrLs", available at Irnp /tracsyr.edLJphptnol immigration/cotut_bLicl:log/deport_outconle_charge_php). This means that 80% of the total Southeast Asian deportation orders were linked to old crurrinal records, compared to 29%ofall innnig-anns with deportation orders. (Ihid) Between 2017 and 2018. Ihere was a 279% spike in deportation ofCanibodim refugees and a 58`) increase ui the deportations of Vic.irituricsc. refugees (Ibicn. This targetine ofthe Southeast Asian refitgec conurntnity has continued under the Iliden administration. On March 15, 2021, the same week as the horrific Adanta niaNs shunting that targeted Asian woolen and during President Biden's inoratoriunr on deportations, 33 Vietnamese refitgec cwrrrntnity incinbers were tragically deported. Among those deported wctc individuals Who fought alongside IT-S_ troops druing the Vietnam War_ Ace d-r� d to accept the fewest relitgees this y a of y modern president, ine�l{i ' AB 937 liege 10 Trvnrp. The Bidcn administration has admittcd only 2,050 tehtyecs at the halfway point of this fiscal year, according to the humanitarian nonprofit organisation, despite President Biden's promises to reverse Ttvinp-cra utuniglation policies, dnantatically raise tic cap nail refugee settlements and respond to what his officials have called "uunfiweseen and urgent SdLutions," the 1RC report noted. (Rescue,org, `More of the same: Biden to admit fewer refugees Ilan any president in U.S. history," (April 11, 2021), available at hupsl/www.rescuc.org/reporUmore- san�-bidetr admit -fewer -refugees -any -president- us-hiswry'!edme=true.) This hill seeks to_(itrther expand and strengthen twisting state lams that limit.state involvement in innrigration enforcement matters — all appropriate exercise q% state sovereignty. It is a fundamental principle oftcdcralism that state govcannknts—as partners with the federal government in the system of "dual sovereignty" created by the U-S. COnstnuLlOn in order to "reduce the risk of Iwanny and abuse" (Gregory v. dsheroll (1991) 501 U.S. 452, 457-58) — may allocatec their public nrsources as they scc tit_ As a result, states arc allowed to pnionitize the use of such resources on activities they believe serve the gre atcst need and further the trxost pressing interests of the state and its residents. (INN) The Ii deral govennlx nt cannot lance states to firrther its priorities in place of the state's_ To fact, case law snakes it clear that the iederol government can do ncithcr of the following: (1) "con7<rtandecr" local officials by rnakirig them enfin-ce federal laws (Priam_ a US_ (1997) 521 T1.S_ 999); or(2) 16rce participation in a federal progmm b_y threatening to curt o13 federal funds, unless the hinds are directly eamwked for daft progiam. (NFIB v. Sihelius (2012) 132 S. Ct. 2566 [federal government cauvwt cut off all Medicaid fianding for rerusal to parlicipale in Medicaid expansion under the Affordable Care Act].) This bill seeks to lunit this use of state resotuces to assist federal uauarigration authorities and activities, which is dearly an appropriate exercise of the slate's sovereignty. Although the bill seeks to expand and strengthen the Values Act, it duce not du so by amending (or even explicitly repealing) the Values Act_ Tnstead, it creates a new parallel statute that enacts nwre extensive restriction-- on state and local agencies assistuag with federal uiunigration enfcn-cennent ellirrts and provides that these new restrictions apply "noLwithsumding any contrary provisions in [the Values Act]." By ftilutg to amend the Values Act, the bill arguably creates conliLmon about whether and to what extent Lhe Values Act remains in etfecL. To the extent that this bill were to be enacted and Ihereby created a conflict will the Values Act, this bill should control given that it would be take preecdence because a latcr-enacted staaac enacted controls - Over an earlier -enacted one. (Cron. v_ .5ttperiorr Courr (2017) 1 1 Cal.App.51.h 305, 322.) Although this bill clearly would supersede the Values Act in the case Of a direct conflict Will) that law, it is less clear how the two laws would interact in cases where they overlapped, but did not directly conflict. For exaniple, as nx;ntioned in the Assembly Public Safer_y Corurnitrec's analysis of this bill, the Values Act requires the Aaoruey General to develop model policies firr law enfirrcement agencies to limit their assistance with unmig<ation enforcemenr to the fiillest estalt pussnblc (consistent with ILdcral and mate law), including A public schouls, public libraries, health facilities operated by the stale, courthouses, division ol'Labor Standards Lnlorcenaeni facilities, the Agricultural Labor Relations Board, the Division of Workers Compensation, and shelters_ [finder the Value,, Act, certann agencies were requn-ed to adopt those policies, and the other entities Were encoturaged to adopt them. But none of those policies Would be consistent uitl this bill (arid likely wuukl, if fact, conflict will it). FLlrllenlOrC, fuel public Agencies would not be govemed by the policies, while law enlorcennenu agencies ill the same jurisdiction would be. If this bill were to become law, would local law ent6r'eemeot agencies be [inllo�q �(}yl���tt policies than other local govcnnmcTj au2gcics`? Should those uutowoomlcl AB 937 Page II policies re tram in effect, be repealed, or updated by the AGI Should the AG be required to develop ulidated nxxlel policies firr all government agencies in light of this bill? The hill is silent on these questions. Potential State ConstitutionalConcerrccllegardingtheRcenactnxnxOanse?'fhe Eict diat this bill does not amend or repeal the Vahres Act and instead seeks to crt<act a parallel, snore restrictive slaltrle governing non-cooperalion by slate and local public agencies also mau rake state constitutional concerns. Article 1V ofdic California Consdanion provides drat, "A section Of a Slautte may y not be amended Unless the section is re-enacted as anrendecL" (California Const_, Art. IV, Section 9.) Under this provision of the Statc Constitution, the legislature is required to reenact a code section whenever passing legislation to artxrrd that particular section. One basic purpose of reenacting a statute that is being amended "is to make sure legislators are not operating in the blind when they amend legisLation, and to snake sure the public call become apprised of changes in the. law_" (The Gillette Company; er al-, v. Franchise Tar Snar•rd (2015) 62 CaL4"' 468,483.) However, the reenactment rule does nol apply to shdules that act to "amend" others only by uuplicaiion. (The Gillcm, Company. el. al., v. Franchise Tu_c Ltoord. supra, at 483.) In Gillc tic. the Calil6mia Supreme Court pointed eta that Suict enforcement of the reeiacurUeit elanee is impractical, if nothing else. In that case, it grappled with the question of whether by enacting an alternative tar apportioninent Rrrmula in ReVCntrC & Tax. Codc Section 25128 (a) alter the. Multistate Tax Compact became binding on the state withOW 'reenacting" the Comnict in stantte, the Legislature violated the reenactment clause: We reasoned long ago ... To say that every statute which thus affects the operation of another is theelore an amendment ol'it would introduce into the law an clanau oh uncertainty which no one can eslimale_ TI is impossible l6r the wisest legislator to know in advance how every statute proposed would affect the operation of eristhng laws... . Although Taxpayers note that the legisliuive bill analvses of the amenchrnent did not reler to the Compact or the election provision expressly, reference to the Compact in section 25128(a) ikell is stront evidence that the Legislal.Ure acted tiith the Compact in inind. Even without a reenactment, the legislators and the public have been reasonably notified of the changes in the law. (kd. at 483-84 [internal quotations and citations omitted].) The Califinnia Supreme Court reached a similar decision three years Inter when it held that where a statutory provision is only technically reenacted as part ol'odner changes made by a voter -approved initiative, the LepslatLtre still retains the power to anlend the partially reenacted provision tlnougti the ordinary legislative process. (C'ounip u% San Diego v. C'onimission ou State Muuclates (2018) 6 CalSth 196, 214.) Mien teclutical rcelmctnrtus are required under cuticle 1V, section 9 of the. Constitution yet involve no substantive changec in a given statutory provision—thc Logislatra c in most cases retains the power to amend the restated provision through the ordinary legislative process. This conclusion applies unless the provision is integral to acconrplkhinn the electorate's goals in enacting the initiative or other indicia stgnport the conclusion that voters reasonably intended to limit dtc LegisEtttre's ability to amcad that partof the Statute. (Ihid.) Regardless of whether the bill violites the reenactment clause by altering the Values Act witlyant than (I eouIR M? opinnally should be. — d 0 fir AB 937 Page 12 In order to avoid corfu+ion and provide the Le_r;islatnre and the public with as much flarity as po.s.sihle ahnirt how this worthy: hill affects and interacts with existing lay, , the author neap nvi.sh to amend the Values Ac t. rather than a neto t�latutori°scheme that addresses mam, of the same topics covered hp the Values Act, as this bill does in its L urrent jirnn_ PreemptionAnulysis - When Congress acts ender its cottstuutiuual powers, it tray preempt stale laws by one of [he following means: (1 ) an express preemption provision [hill "willidraw[s] specified powers from the States": (2) Yield precinixion that "precludes [States] fi-om rcgllathtg contlict in a field that ConSTess _ _ _ has deternnned nntst be regulated by its exCilL4ive governance'; or (3) contlict preemption, which occurs when either "compliance with both federal and state regulations is a physical impossibility," or the "scatc law stands as an obstacic. to the accann3)lishment and execution of the Poll purposes and objectives of Congress_" (Ari-ona v. Chtited States(2012) 567 U.S. 387, 399 [uttcnlial quotation n-arks onvned].) Elm essPrecallrtion: The Only express provisions in federal law that [unit the abilu_y of states to enact larws dealing with arntvgration appear to be 8 U.S.C. 1373 and 8 U.S.C.. 1644. The provisions are virvtaIly ide» ticaI. The only difrerence appears to be that Section 1 644 applies to states or local govcmin_nts, grid says llu;y cannot be prohibited froth sending or receiving imnnigration statics inlonrrauiun to 10E; whereas, Section 1373 states than lerlcral, Made, and local governments cannot be prohibted tiom sending or receiving Ofciti7enship or imnnigration stanis inlorrrraticn to or [from ICE. Given that the 9a1` Circuit Court of Appals only discussed Section 1373 in its evaluation of the Valtles Act, this analy-is will fi)Ct6 solely on Section 1373. Secholr 1373 prohibits .,talcs koin enacting laws or policies Hutt prohibit cooperation with and response to federal requests R)r immigration status inf)rmition: [A] Federal, Slate, or local govennarent entity Or oflicial may notProhibit, or in any way restrict, anv got'l'.r'nmcnt entity or official fi'orn sending to, or receiving from, the Immigration and Naltlrali/ation Service information regarding the citizenship or immigration status, lawful or unlawful, of any individual." (8 U.S.C. 1373 (a) [cmphati added].) While Section 1373 limits state action to expressly prohibit one type of cooperation providing; nnlurrnatiun about itattnigration .,Lehi.,) with the federal govennnent, it clues not require any action on the part ofsteltes. When it ruled that the Values Act did not violate Section 1373, the 90' Circuit made two observations about state law. First, "SB 54 ... expressly permits the shariaig of I ml6rination regarding it person's citi/vnshil) or it IT sla[Ws I, and so does not appear to conflict with [Section] 1373." (U.S. v. Cali%wnia, supra. 921 1:.3d at 890 [euphasic ut original].) Second, the Values Act clues not expressly pruhrbit or in any wary rcstriet law enforcement authorities from shaving the particular type of information described by Section 1373. The 9re Circuit dud not specify how itnpurtaut either aspect of state law was in its ultirante decision, but only mentioned the felt aspect of state law (that the Values Act perrnirs [he sharing of intornnation) in passing, and discussed the second aspect at length. fhcretore, it is reasonable to assume chat the namr-c of the infornutiun at is,;uc in the Vahtcs Act was by far the most important reason firr the 9`' Circuit's holding that the Valens Act did not run afirul of Section 1373. The 9`' Circuit pointed Out in U.S. v. C alijarnia th it the information which the Values Act pro nnlor ]a'✓ic �ouncl btnut an nndividtktl, including, but nc inn i to, [he individtltl's he ss AB 937 P;ige 13 or work address' —was' not the same information addressed by Section 1373 ("information regarding the citizenship or immigration saattt5, lawful or unlawful, of any indivi(lual"). (U-S- v- California, sti -ti. 921 F.3d. at 891.) The urtortnation governed by Section 1373, oil the other hand, is 'nnann-ally understood as it reference to a person's lead classification raider federal law," and not arekrence to snore general utfitrni;atunn about an individual. (IbO.) Therefore, the court narrowly construed the meaning ol'Section 1373 Lit relation to a.,L<tLc htw restricting the disclosure ofpersonal nilimlittion. The mftmnation that this hill seeks to prohrlrit public agencies from sharing with intnigration officials appears to be the sarnrc intormation that the Vahucs Act prohibits law cntorccmcnt agereics from sharing: information aboui a detainee's release dare and personal intorniation about the detainee. Given that the Value Act's restrictions on disclosua'e of this inffrnmation were upheld, as exphured alcove, ill U.S. v. California. supra, it would appear likely [fiat this hill's restrictions on infi>rmition sharing would also survive an express preemption challenge beeaw4e it does not conflict with Section 1373. hurthemxire, even if the bill did vioble Section 1 373 by prohibiting public agencies f-om providing ICE with "inlormaiion regarding the eilizenship or immigration staves, latilul or tnnlawfill, ol'an_y individual," it could sell he upheld against a preemption challenge- Several federal district courts have riled that Section 1373 itself is unlawful. As the 9`11Circuit observed in loomolc. 19 of U-S- v- Cafi%ornia, while citing several district court decisions, "Because we agree with the district court's IX011clu6ion, we need not address whether [Section] 1373 is itself tlnlawfll, though we note that Various district courts have questioned its eonstialtionality." (United Slates v- Calilornia, supra, at 893, tin- 19-) One of the district cow-[ cases mentioned in footnote 19, for example, tound that Section 1373 volstcs the anti-conmmandecrinn principles: Section 1373 contravenes the idea that liberly is best served by the Constitution's intended division of "authority between federal and state government', for the prolection of individuals Citations -I DO.1 argues that Section 1373 requires States and local governments to allow the disclosure of an immigrant'- address, location irrhirmation, release date, date of birth, kalnilial Status, contact information, and any other uuorination that would help ltderal intmigr-alion officials perform then- duties. [Citations.] fo conthly with that nlueipretalion, California and San Francisco would nccd to submit control of their own officials' communications to the Icdend government and Iorego passing laves contrary to Section 1373- lhcy would also need to allocate their limited law cntorccnncnt rc,"Ources to exchange irltirrmatiiro with the t &I'al govemnlcrrt whenever requested instead of to the essential services (like enfiucing generally applicable crinninal laws) they believe would most benefit their respective conitim nitics. (Cirr & Cti. of.San Francisco v- .Sessions (N.D.Cal. 2018) 349 F. SurPP- 3d 924, 950-951 [uglheld in pan, overruled in part by (City & O.Y. of San Francisco v..Sessions (N.D.Cai 2018) 349 F. Supp. 3d 924J.) Field Preemption: lie Supreme Coma and other federal covets have held that state laws seeking to regulate immiaatunn on the state level --as Arizona dui when it passed laws [flat (1) created a state -law crime tin- being unlawfully present in the ihnited States; (2) mated a state -law crimc for working or seeking work while not authorised to do so; and (3) authorized war,zntless ancsts of alicns believed to be removable hom rile United Statcs--anti ptecrnpted by tederal immigration law and its ohicctic cs. (.,cc Arizona v. United States, supra, 567 U-S. at 410.) City Council 21 — 32 5/4/2021 AB 937 I'ctge 14 This bill, unlike. the Arizona law at issue in Ari-onu v. UnitedSlalev, clean}, seeks to leave federal immigration enfincenment to federal official;. Far from attenmtxing to uswp federal duties related to invnigration, the bill seeks to rcurforec the tCLleral franuwork that prirvides state. with the power to determine whether or riot to use their resources to assist in federal immigation etiiirts, including whether to have public employees filnction as i<nunigration officers and/or assist umumugralion oflicu s. Federal law authori_es the Secretary, of Hun-rcltnd Security to enter into agreent�nts that delegate unmig ation powers to local poke. (8 U.S.C. Section 1357 (g).) But nothing requires states to drier ono such agreements with the federal govcrtnneirt. Of particular relevance to this bill, the 9"' Circuit held in U.S. v. California, .rupro. that the 10"' Amendment to the. U.S. Cirostinttion protects Californcr's right to control its own statc and local resources, nmcltlling state and local law enfin-cement resources. Specifically, the 9'' Circuit observed that the federal government cannot torce California to help its utnnigation cnfirrccnunt cffi)rts: SB 541my well 1rum ale the federal go Vernneln'i ]nningration enforcement effortti. However, whatever the wisdom of the wmderlying policy adopted by Califoria, that frustration is permissibL, bccause California has the rigJn, pcasuarn to the anti Conunandoering rule, toreliLtin from assisting with ledcral ellimrts.._ hi this context, the federal government... could not require Caliti)rnia's cooperation without miming afoul of the Tenth Arnendnrcnt. (U.S. v. California. supra, 921 Fad at f+90-91) Because states rued riot participate in federal inwligration enforcement. and because oftbe explicit non-pn cr 1ptIVC text and slnrcntre of Scction 1357 (g), above, this bill merely expresses the state's authority to determine that its public resources should be used for purposes other than assisurig will) invnigration enlorcemenl. Lay merely exercising this priority, die bfll clearly does not usurp federal authorily by "regulaling conduct in a field that Congress ... has determined nnlst be regulated by its exclusive governance" in a manner that would make it vulnerable to a field preemption challenge. Conflict Preernptkm: As described above, the bill has two main prohibitions (one ofwhich has two subparts). One, which happens to be the latter-, reads as firllows A stale or local agency or Court sball nut ttie nrnni�n-atiun statWs as a factor Lu deny orlu recommend denial ofprobation orparlicipalion in any diversion, rehabilitation, menial health program, or placement in a credit -carting prograIn or class, or to delel7nne custodial classification level, to deny mandatory supervision, or to lengthen the portion ol'sipervision served in Custody. All of the programs and purposes described by this language -- probation ... diveruon, rehabilitation. mental health program, or placewerrt in cz credit -earning program or chxas — are state and local programs and decisions. Decisions regarding such programs and placements, like decisi<ms `to determine custodial classification level, to deny mandatory -supervision, or to lengthen the portion ofsupevrimon " arc purely static and local maulers. Calilbtnia is allowed to prioritize the use of its resources on activities which serve the greatest need and further the host pressing interests of the state and its residents. (See Gregory v. Ash(roft, supra, 501 LI,S. al 457- 58.) Therefore, this provision does not raise any conflict preemption concenr.s. Tbc - 4 intelpi yewctit}frllvides as fi>llows. 21 — 3 5/4/2021 AB 937 I'rtge I S A state or local agency shall not it of assist with the arrest, confirtcntcnt, detention, transfer, interrogation, or deportation of an individual fill- an inmrilrration enforcement purpose it any n>aroer, including but not lunited to, by notifying a tooter agency or stdbcontractor thereof regarding the release date and time of an individtat I, releasing or transferring to individual into the custody of another agency or subcontractor thereof; or disclosing paronal infin-nution ... about an individ1.1tl, including, but not tintiu d to, an individual's date of birth, work address, hone address, of parole or probation check in date and time to another agency or subcontractor thereof This subdivision Shall apply notwillhslanding any contrary provisions in Section 7282-5, subparagraphs (C) and (D) of paragraph (1) o� or pamgmph (4) of; subdivision (a) of Section 7284.6, or subdivision (b) of 7284.6. Although this bill prohibits the same irr/urrnatiorr from being shared with utvnigration authorities that the Values Act prohibited fi-om being shared with them (and the 91' Circuit ruled artld be wiTheld from i<uniaation authorities under the Values Act), it diffirs fron the Values Act i<i several sigauficant ways. Furst, it provides that, "This subdivision sl-udl apply notwithstanding any contrary provisions" in the Values Act. This apparently means that the exceptions listed in the Values Act dill allow hw enforcement agencies to provide in.6rnlation to inimigralion authorities in specified circwnstances (i-e- when law enfbrcentent officials are cooperating will federal innrigration authorities in the apprehension of individuals who have been convicted of serious and violent lelutnies, sex offenses, child molestation, and child abtue, when it is available to the public, and when it is "in response to a notilicalion request. Gom immigration aulborilies") those exceptions would not apply to dc;r the bill. these particular limits on information ;haring may not result in contict preemption, thotugh. because thcy do not necessarily hake it impossblc tin- public otticials to comply with both federal law, or'�tand[) as an obstacle to the accomplishment and execution of the fill purposes and objectives of Congress." (Ari_ona v. Urriteel States, supra. 567 U.S. at 399.) While the bill's infon-tTIauion sharing provision is more restrictive that the Values Act, the bill does not specifically prohibit the disclosure ofirfornstion about a person Is innhguation status. 0iven that, the tneaning ol'Section 1373 has been narrowly construed, the bill'% greater restriction on the release of inG>nnation likely would not violate Section 1 373 or result in conflict preemption. Tlrc second significant reason why [his bill is tune restrictive than the Values Act is [hat, unlikC the Vahucs Act. it does not specifically and expressly permit the sharing of intormation regarding a Aaron's citizo:nship or invnigration stanus, which was at least mentioned by the 9't' Circuit when it tgiheld the Values Act- (See US- v- California, supra, 921 F-3d at 890-) Therefine, it is conceivable (though unlilcely) that the 9"' Circuit could reach a different conclusion about this bill's I1mILILIUlLS on infirrn-rrtion sharing Alan it nude reFirding the Values Act because of the bill's law of express permission. Ihid, and moll significant, is the ficl thal the bill's language restricting the ability of state and local agcilcics to assistwith irnnigration enorecnent efforts is extremely broad. Tle bill provides that apublic agency cannot "assist with ihearrest, Conlinernent, detemion, transfer. interrogation. or (kportafiou of an hidividuni/uran immigration enfn-cement purpose in any Milliner. " This logically Could be interprt;ted to prohibit an agency front sanding to ICE, or receiving fi-om TCT:nlliwilration rcgiurding the citi7cnsliip or immigration status, lawful or ua lawt 1, of any individual in direct violation of Section 1373. Alternatively, this provision coo i ue cc s fnc xs an o is rc c o tc a one s uncn an cxccu ton 4 A-B 937 Page 16 purposes and objectives of Congress'." (Arizona v. United Slate,•, supra, 567 U.S. at 399.). if so, this provision could raise a conflict preengrtion concern about the bill. Author•'e• amendments. in order to address the possible, but remote, concern dial some aspects of' the bill could raise conflict preemption concerns, the author proposes to make two clarifying alrendinews. Fist, du audtor intends to amend the bill to add the following additional Talent language, clarifying that it is the intent of the bill to be consistent with letleial law: (0 No federal staultes allil-rnatively require local orstate governments to tusil ICE with immigration enforcement. While one Ifedcr:al statute specifically addresses this issue, 8 U.S.C. s 1373, it only passively restricts local and state gownwicrus from pruhbiting the sharing of only infnination related to imm1ligration status or citizenship. Further, 8 LT.S-C- 1373 has been found by several tccleral court/ to be unconstitutional. The U.S. Supreme Count ndcd that the Tenth Anxndnx nt prohibits the federal govenuncnt from affirmatively compelling a state to enact Bows and policies, and also prevents the federal government from prohibiting aslatx; or local jurisdiction li-otn cnacung new, laws urpolicics. S'ee lfurphpv- Nar7 Colh Lgiactr AthietiAWn, H9 S Ct 1461, 1477 (2018). Applying this role from the U.S. Supreme Ceara, a mariber of federal district courts have held that 8 U.S.C. � 1373 is wrconstilutional under the Tends Amendment of the U.S. Constitution. The 9" Circuit Court ofAppeaLs acknowledged this filct when it upheld the Values Act against a preemption challenge in LIS v. Califbr•nia (90' Cit. 2019) 921 F.3d 865, cent. denied, US v. Calijoraita (2020) 141 S.Ct. 124. 11 is the intent of the VISION Act to beconsislenl with federal law. Second, the author proposes to add a ,everabtlity daft e to the bill so that n, due event that any portion of the bill should be invalidated, other portions of the bill would remain in effect. This hill imposes eivil liability err public agencies and enaplrryees for vialating its provisions. Ilne general nine in Cahi irnin is that a government entity (or in employee acting within scope of enlploynienl) is in-nnune from liability unless there is a statute providing otherwise. (See (jovernment Code Section 815.) Under the Government CLtins Act, "Except as provided by stattae, .. jal public entity is not liable for in injtay, whether such nljtuy alines out ol'an let or omission of the public enlity or a public employee or any osier person." (Section K1 5 (a).) Therefore, sovercign itnununit-y is the rule, and goverritrlcntal liability is Booted to exceptions specifically ,et forth by statute- (7.uniga r. Housing Awk (1995) 41 Cal. App. 4th 82.) The Government Claims Act itself sets out exceptions to the general vile of iunnnmity. For exaniple, Section 835 provides that a gover-nnxmt entity is liabiC lot injury caused by the dangerous condition on govemment property. Section 862, which is also within the (jovenunent Claims Act, makes wVernrrn:nt entities liable tor injuries caused by pesticide use to the same extent as a private person. Also, as a general ndC a public entity is liable for an injury ceased by an act or omission of its employees who are actinL within tale ;cope of their employinent, if the act would have givat rise to it cau",c of action against that employee. (Section 815.2. ) This bill would create such a statute by providing for governmental liability. Specifically, ire bill Provides that in addition to any other sanclions, penalties, or remedies provided by law, a person may brJ[lW an action for "equitable or decbratory relief' in a coon of corupetent jurisdiction against a state or local agciiey or state or local ollicial that violates the bill's provision. It llu-tlnct: provides that a state or local agency or nllicial that violates this section is liable for acltul and general damages. and reasonable attortuy's lies, which normally would be paid by each parry and Ey"1C;&FlhhR suhjcct to recovery by the prcvailin2j3art35 514/2021 AB 937 Page 17 As a practical matter, this provision would allow a pcxson who k harmed by a public otiicial violating the hill's prohibitions (by, feu- example, being taken into federal custody as a resuh of thou rcicasc date being provided to tederal urnnigration officials) to bring an action against the public. employee (and/or their employer) who provided the infrrrmation- The plaintiff could recover damages (such as lost income and medical expenses. for example), as well as injunctive rcticC (i.c. a c01.111 order fin- an agency to con-ifily with du law) and cgtutable rcticf (any n lc1 where norrml remedies, such as carriages, are inadequate). In addition to darnages, the planttiff oidd abo be entitled to recover their -reasonable auonrcy's lees" for brinpng the action against the employee and/or agency- . iRGETMCNT.SINSETPPORT: Co-sponsor Asan Ain rieans Advancing Justice. California writes that they support the hill because it is consistent with Califin-nia's recent rethinking of tough on erirn e public safety policies because those policies hurt communities and did not make them any safi:r: Calilinnia's ptnritive carceral systettt unjustly and disproportionately hams; Black, Lairox, Indigenous, and Asian and Pacific Islander American conmlunities. hr recent years . . . the l;gislaturc and Calilorni<a voters have dertxonsirated a strong cormtniunertt to reforming our criminal jtutiec system and ending ntiass incarceration- Howcver, the ;talc', rule in fitnneling Californ as residents to the custody of ICI-. undercuts our progress towards a more equitable society, and unfairly targets immigrants and refugees. Indeed, despite these rcftornL,, when Calik)rnia's jail; and prisons voluntarily at-,(] tannecessarily Lranslcr inn-nigrant and refirgec connmtunity nncnnhers eligible Ibr rcicasc from state or local custody to WE for immigration detention and deportation purposes, they subject these corrnmunit-v mciribers to double punishment and perpetual Lraunva. ... The VISION Act would ensure California's lax dollars will not be used to subject immigrants to double punishment. separate innnigrant frmilies, and violate constitutional rights. Another co-sponsor, Asian Prisoner Support Committee, cinphasi7cd the moral imperative for Calitornia to stoop all participation and assistanee in tedetal immigration entorcement activities: As the state with the largest innttigrant community in the country, California his an ethical and moral obligation to step tqb uta- leadership and take action to protect the rights of all rerugees and innnig-anls who call California home, including those eligible for release from out local jail; and state prisons. California is hoax; to au estimated 11 trillion inimigrarlts— about it qu:u-ter of the inntnig-ant populaLion nationwide- Almost one nr three CAdinnians is an ututigrant: and one iu two children in California has at least one unntigraut parent... . if we foil to end the cruel prtcticc of ICE uanslcrs, Calilbmia will continue to actively participate in the separation of innnnigrant and refirgee families, and intlict irreparable harm to those who cant here ffecung war and genocide or to supply build a better lice for themselves and then- children- itRGUifENTSINOPPOSITION- The California Policc C'hicls' As,ocutuon Noires that it opposes the bill because it will prohibit law enforcement agencies from worituig on task frorces Nith `bur federal law enforcement partners." I hest nnilti-jurisdictional task forces —m'1ny iomned in the wake of the 9/1 1 terrorist attacks l9UlfPPP[4s- Oftentinnes, ahhnunh not solely ctvL A6innnnigration ptuposes, l AB 937 Page 18 immigration violations arc used to help bring the major criminal operations to justice. P xisting law, which we helped negotiate and was greed to by all sides, allows fill- these operation, so km.as 1) the primary purpose of tile task totre is [lift unnigration entin-cement, 2) the investiptive duties are prin-u ily related to crimes uamrelated to Jimnigtation er&.rrcentent. and 3) participation in the task force does not violate state or local laws.... SB 937 undercuts these very deliberately crafted sL<tnacs and does so to the detriment of public safety. Snnilarly, Peace Officers Research Association of California (PORAC) writes that it "cannot support a State bill that tours our States public satety officers to stand by while our tbdcial cottrtterparts are injured or killed in the perfirrmanec of their duties." PORAC goes on to sav that, "if the federal government requires our involvement, such as ten>tmrarily housing an undocwriented arrestee, then it is Our responsibility to adhere to the needs of the tedemal government. Ilse Calikitnia State Sheng A_ssocWion, on the other ttmncl, takes particular issue with the bff elimination of "the requit-enment that an offender's place of birth be included in basic mforinalion stored in state or local crunitlial ollendcr record irdormation systems [bccausc it] will make that iform»atiOtm lass aecun rte and less uuclil to the stakeholders that rely r41011 that information, irrespective of whether the person is subject to army immigration enforcement action." Relater[ Prior Legislation: AB 2596 (Bonta), of the 20 19-2020 Legislative Session, would have elimhtated the. existing ability for Law enforcement agencies to cooperate with federal Immigration authorities by ping than notification of release l6r ininaws or laCilitaling inrriaLc tran:tets. All 2596 was never heard in the Assembly Public Safety Committee. A 2948 (Allen), of the 2017-2018 I egnslali%e Session, would have repealed the Califomia Values Act SR 54, which defines the circumstances under which law enforcement agencies may atssist in the atlotLcnK.nt of federal immigration laws and participate in joint law enforcement task forces A13 2948 izuiled passage in the Assembly Public Safety Conmmittec. AB 2931 (Patterson), of the 2017-2018 Legislative Session, would have expanded the list oh qualifying cruninal convicti.)ris which permit Law ellfbfCerneut to COOPerate with federal firmmigration authorities. AB 2931 failed passage in the Assembly Public Safety Cuumtnittee. AB 298 (Gallagher), of the 2017-2018 Legislative Sessior>, would have repealed du TRUST Act and requital law cnforecnxnt to cooperate with fedc al nrnnigruion by detaining an idividUal coavictcd of a felony for tap to 48 hours on an inunigr.ation hold, as specitied, after the person became eligible for release from custody. AB 298 tailed passagc in the Assembly Public Satery Committee - AB 1252 (Allen), of the 2017-2018 LegisLttive Session, would ILive repealed the TRUST Act and prolvbited state grants to county and local "sanctuary jurisdictions." AB 1252 filed passage in the Assembly Public SalLt_y Commince. S11 54 (De I con), Chapter 495, Statutes of 2017, limited the involvement of state and local law enforcement agencies in Went] irnrnigrl.ion Cmlinunx nu. City Council 21 — 37 5/4/2021 AB 937 Page 19 AB 2792 (Bond+), Chapter 768, Statures of2016, tecluacs local law ent6tecntent agencies to provide copies of specified documentation received from TCF to the individual in custody and to uotity the utdaridual reg,lldutg d1c uttent ofthe agency to cotnpty with ICG tequesis. RLGISTLRED SUPPORT /OPPOSITION: Supputt 67 SUCIlOS Aapis for Civic Entpoweniment Education Fkumd Alutnza Alliance ofCalilitrians lin-Commiumity Empowerment Action Alliance San Diego At1Li-recidivists Coalition Asian Americans Advancing Justice - Calilbrnia Asian Prisoner SUpporl CAtIllllilICC Asian Solidarity Collective (lend the Arc Calitbrn;3 BUCn VCC➢lO Ilucna Vista United Methodist Church Immigration Conmlkwe Calitornia Atrorneys for Crinmutal Justice C.alithria Atto meys fimr Cmit»nmal Justice California Coalition fmr Women Prisoners C'alilorma hmnn pant Policy Ccntcr California (muted &mr A Responsible Bkidgat Calitormahcalth+ Advocates (alifmmi ins l6r Safety and Justice Center fur Ln4)oweriug Refugees and lmsigrsnts Central Coast Alliance United for A Strstanmable Fconorny Centro Legal De LA Ran Church Work] Service City of Oakland, Cotmcil President Nikki hortwmato Has / Dis[TiCt 2 Clergy and Laity United for 1; onomic Justicc C'.oalltirlll litr HUInanC Immigrant Rights (CHIRLA) Conmmlunitics United for Restorative Youth Justice ((-'URY,I) C'.omnnutity Justice Exchange C:nmm11untity Legal Services in Fast Palo Alto Comimi fifty United Agai<Lst Violence C'.ontra C'.osla Trr migrant Rights Alliance Cntutty of San Diego CUUragc California Critical Reskiance Desert SUppon for Asyknn Seekers First Yard Conmmunities tin- F.nvironmemal Justice 1-111a Haker Center for Hunkan Riglmis Empowering PaeiCL- Islander Communitics Fyua Rights Advocate I (ssic Justice Group Evicdjlq Pbhail Collaborative Union 21 — 38 5/4/2021 AB 937 Page 20 Filipino Migrant Center Freedom for lnnrrigrtnts friends Committee on Legislation of Caliton i llope for All: ilelliing Others Prosper EconomicaIly lhunan 1111pact Parhiers HLarkm Rights Watch Ice Out ofMatui linnigr-aut Defenders Law Cettter lnm»gr-ant Defense Advocates hin igtant Legal Resource Center 1Mclivisiblc SatLSM110 Initiate Justice Libud Coalition for 1Mu7ugrant JUSUCC lntcrfaith Movcnx;nt for Human Integrity lavine United Congregational Church -- Advocates for Peace and Justicc Kchilla Community Synaf ogvc Khmer [;irk in Action Lakeshore Avenue Baptist Church Legal Services fi>r Prisoners With Children Long Beach hannigrant Rights Coalkkni Long Beach Southeast Asian Anti -deportation Collective Mixteco lndigem Comnvanity Organizing Project Naral Pro -choice California National i]ay Laborer Organising Network Neavork iM Solidarity With the People of Guaten><ala New Bridges Presbyterian Church Nikkei Progressives No Ncw SfJail Coalition Norcal Resist Oakland Privacy Oc Enacrgcncy Response Coalition ( i- Shalom Jewish Conmatmity Orange County Equality Coalition Orange C.otuity Rapid Response Network Pangea Leal Services Pica Calilornia Pillars of'1he C'onuinanity Pride hi Truth Restore Justice San Diem lMntngrant lWits Consortium San Francisco District Attorney's Oflice San Francisco Peninsula People Power San Francisco Pubh Dek-ilder San Fr-arrcisco Youth Gonm»ssion Santa Itarbara Counw Action Network Secure JLL1tiCC Showing Up 461, Racial JtLtice (SURJ) Bay Area Show IQ rr., 4m. n.., g! Aist,WG ,crroT, Sim r.:gpo Sho"�j T7 M Pikacial Justice North Cotutty 21 — 39 5/4/2021 AB 937 Page 21 Southeast Asia Resource. Action Ccntcr Suj Contra Costa County Sutj Sail Mateo Survived and PrnriSlred IeaIII Justice The Orange County Justice Fund The Translimnative In-ptison Workgraup Think Dignity Transitions Clinic. Network UC BerkekVs Underground Scholars lnitiaative Uncommon Lain Underknotmd Scholars h»tialive, University of Calilbrrria Davis Unharian Universalist Fellowship of Redwood City, Social Action Corrurnucc VCrrttn-a County Clergy and Laity TTnitcd for Economic TLLsLicc Viet Rainbow ofOianec County Vicuisc We the People - San Diego Woman INC: Women frr American Values and Ethics Action Fund Women For: Orange County Yalla hrdivisiblc Yotung Wonien's Freedom (-:enter Youth JLlf lICe Coaliton Opposition ('alifhrnia Police Chiefs Association California State Slreriffs' Association Peace 011icers Research Association ol'Calilirrnia Analysis Prepared by: Alison Morrii cs / JUD. / (916) 319-2334 City Council 21 — 40 5/4/2021 Community Development Agency https://www.santa-ana.org/cd Item # 22 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Fiscal Year 2021-2022 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs TITLE Public Hearing — Approve the Fiscal Year 2021-2022 Annual Action Plan and Budgets for the Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant, and Authorize Submission to the U.S. Department of Housing and Urban Development RECOMMENDED ACTION 1. Approve the Fiscal Year 2021-2022 Annual Action Plan and authorize the submission of the Fiscal Year 2021-2022 Annual Action Plan to the U.S. Department of Housing and Urban Development. 2. Approve the Fiscal Year 2021-2022 budgets for the Community Development Block Grant Program in the total amount of $6,171,499 that includes $5,558,720 from Grant Year 2021 allocation and a re -allocation of $612,779 in prior -year program funds; HOME Investment Partnerships grant in the amount of $1,706,231 from the Grant Year 2021 allocation; and Emergency Solutions Grant in the amount of $489,141 from the Grant Year 2021 allocation. 3. Direct the City Attorney to finalize and authorize the City Manager to execute memorandums of understanding with various City departments awarded funds as part of the approved Community Development Block Grant program budget for a term beginning July 1, 2021 through June 30, 2022, subject to non -substantive changes approved by the City Manager and City Attorney. 4. Direct the City Attorney to finalize and authorize the City Manager to execute a memorandum of understanding with the Santa Ana Police Department and agreements with non-profit homeless service providers awarded funds as part of the approved Emergency Solutions Grant program budget for a term beginning July 1, 2021 through June 30, 2022, subject to non -substantive changes approved by the City Manager and City Attorney. City Council 22 — 1 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 2 COMMUNITY DEVELOPMENT COMMISSION RECOMMENDATION At its Regular Meeting on March 3, 2021, the Community Development Commission held a public hearing to receive resident and stakeholder comments on funding priorities and needs for activities funded with the Community Development Block Grant, HOME Investment Partnerships grant, and Emergency Solutions Grant programs in the Fiscal Year 2021-22 Annual Action Plan. No comments were received during the meeting. DISCUSSION Every five years, the City of Santa Ana (City) must submit its Five -Year Consolidated Plan to the U.S. Department of Housing and Urban Development (HUD) to receive funding for the Community Development Block Grant (CDBG), the HOME Investment Partnerships (HOME), and the Emergency Solutions Grants (ESG) programs. These federal funds provide for the development of affordable housing, street improvements, park and public facilities improvements, economic development, code enforcement, public services, the expansion and retention of businesses, and for the delivery of services for individuals experiencing homelessness. In general, the Five -Year Consolidated Plan describes how the City will invest and allocate these limited federal funds for and on behalf of the community. In May 2020, the Five -Year Consolidated Plan for the period of July 1, 2020 to June 30, 2024 was submitted to HUD. As part of this five-year strategic planning process, the City is required to submit an Annual Action Plan each year that describes how the City will achieve the goals stated in the Five -Year Consolidated Plan. This document establishes a one-year investment plan that outlines the intended use of resources in the forthcoming fiscal year. The proposed Annual Action Plan covers Fiscal Year (FY) 2021-2022 and seeks to allocate funding where programs and resources will have the maximum positive impact (Exhibit1). The Annual Action Plan describes the intended use of the City's federal entitlement grants specifically for FY 2021-2022. For FY 2021-2022. the City will receive $5,558,720 in CDBG program funds, $1,706,231 in HOME program funds and $489,141 in ESG program funds from HUD: Program Allocation CDBG S5,558,720 HOME $1,706,231 ESG S 489,141 TOTAL $7 754 092 In addition, the City will re -program $612,779 of prior -year CDBG program resources. The various projects and programs covered under the FY 2021-2022 Annual Action Plan are designed to serve low-income residents. The FY 2021-2022 Annual Action Plan includes the program budgets described in detail below for the CDBG, HOME, and ESG programs respectively. In previous years, staff recommended approval of the program City Council 22 — 2 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 3 budgets for the CDBG and ESG program in two separate staff reports. This is the first year in which all three budgets for the CDBG, HOME and ESG programs have been combined into one single staff report. Since all three programs are included in the City's Annual Action Plan, staff combined all three program budgets into one staff report. This is consistent with how other similarly sized cities approve their Annual Action Plan and funding allocations for the CBDG, HOME and ESG programs. Community Development Block Grant Program Budget The Community Development Block Grant (CDBG) program provides funds to improve low to moderate -income neighborhoods, eliminate blight, and create a more stable economic base. These funds may be used for a diverse range of programs including: affordable housing, street improvements, park and public facilities improvements, economic development, code enforcement, and public services. The City's CDBG allocation for Grant Year (GY) 2021, FY 2021-2022, is $5,558,720. The proposed FY 2021-2022 CDBG Program and Funding Plan consists of the CDC funding recommendations for nonprofit public service programs from 2020 and staff's funding recommendations from this year for administration and planning, code enforcement, city capital improvements, and housing. The CDBG Program and Funding Plan can be summarized in two general categories. 1) CDBG Program Funding Plan/Capital Projects; and 2) Public Services. A summary of the process and allocation for the FY 2021-2022 CDBG Program is provided below for both general categories. Capital Projects/CDBG Program Funding Plan The FY 2021-2022 CDBG Program Funding Plan includes the funding allocations for administration and planning, code enforcement in low- to moderate -income areas of the city to address health and safety violations, economic development to provide small business grants, nonprofit public services, city capital improvement projects and single- family rehabilitation loans (Exhibit 2). The CDBG allowable cap of 20 percent for administration and fair housing services is estimated to be $1,111,744 for FY 2021-2022. Administration is necessary for staffing, compliance, reporting, fiscal management, and monitoring of the entire program. Fair housing is necessary due to CDBG requirements that the City affirmatively further fair housing. Four new city capital improvement projects are recommended for funding, which include the following: 1) $554,582 for ADA curb ramp improvements in CDBG eligible areas. 2) $1,100,000 for residential street improvement in the Heninger Neighborhood. 3) $600,000 for Phase II of the Santa Anita Park Improvements. 4) $400,000 for sidewalk improvements in CDBG eligible areas. 5) $300,000 for active transportation safety improvements to enhance the safety of the local community with the installation of pedestrian hybrid rapid flashing beacons. City Council 22 — 3 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 4 The proposed programs and capital improvement projects have been determined to be of highest priority and need by the Executive Directors of the Parks, Recreation and Community Services Agency, Public Works Agency, and Community Development Agency, following the City's internal application process. 2021 CDBG Program Budget General Activity Funding Amount CDBG Program Administration & Fair Housing $ 1,111,744 Public Facility improvements, Streets & Parks $ 2,954,582 Housing Rehabilitation — Multi -Family $ 480,000 Code Enforcement- Enforcement of Housing & Municipal Building Codes $ 800,000 Non -Profit Public Services $ 825,173 TOTALI $ 6,171,499 City Department 2021-2022 Award Community Development Agency - Administration of the CDBG Program. Proposed funding amount calculated based on 20% $1,051,744 administrative cap less Fair Housing amount. Orange County Fair Housing Council Inc. — Provides fair housing education, landlord tenant counseling and enforcement services to combat housing discrimination and city administrative support for the $60,000 residents of the City of Santa Ana. A commitment to further fair housing is a requirement of CDBG funding. Code Enforcement — Community Preservation Services $800,000 Parks, Recreation, Community Services Agency - Santa Anita $600,000 Park Phase II (Ward 1) Public Works Agency — ADA Curb Ramp Improvements (Ward 2 and 4), Residential Street Improvement Heninger Neighborhood (Ward 4). $2,354,582 Sidewalk Improvements (Ward 6) and Active Transportation Safety Improvement (Ward 4 and 6) Housing — To address rehabilitation of single-family housing program $480,000 (Citywide) TOTAL $5,346,326 Public Services A maximum of 15 percent of CDBG funding, plus anticipated program income not to exceed 15% for FY 2021-2022 ($825,173), may be used for public services. For FY 2021- 2022, the City is providing the entire estimated public service allocation to nonprofit City Council 22 — 4 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 5 organizations for programs with an emphasis on crime prevention, intervention, and/or suppression for children, youth, and families, economic development, tenant services assistance and programs, health services, and senior services (Exhibit 3). On March 3, 2020, the City Council authorized the City Manager to execute agreements with non-profit organizations awarded funds as part of the approved CDBG Program for a two-year term beginning July 1, 2020 through June 30, 2022. Therefore, funding for Public Services approved for FY 2020-2021 are being renewed for Fiscal Year 2021-2022 at the same award amount: Public Service Organizations 2020-2022 Award AIDS Services Foundation of OC dba Radiant Health Centers — $30,000 HIV Care Services America on Track — Brighter Futures for Children of Prisoners $40,000 Boys & Girls Club of Santa Ana — College Bound $37,500 Community Action Partnerships of OC — Economic Empowerment, $30,000 Your Money Your Goals Community Health Initiative Orange County - Provides outreach, education, enrollment, and case management services to vulnerable $30,000 populations Community Legal Aid SoCal - Provides free, holistic legal $37.500 assistance to survivors of domestic violence Delhi Center/Public Law Center - Family Economic Success $55,000 Initiative Program Delhi Center - Teens Engaged in Learning and Leadership Program $37,500 Girl's Inc. of Orange County — Literacy Lab $38,750 Human Options — Assisting Domestic Violence Victims $30,000 Lutheran Social Services of So. Cal. — Victims intervention Program $30,000 Nati's House (dba Neutral Ground) - Gang Prevention $30,000 Nati's House (dba Neutral Ground) — Summer Night Lights $30,000 OC Children's Therapeutic Arts Center— CARR Neighborhood $4p,000 Crime Prevention and Intervention OC Children's Therapeutic Arts Center— WILLARD Neighborhood $40,000 Crime Prevention and Intervention Public Law Center - Affordable Housing & Homelessness Prevention $40,000 Pure Game — STAR Sports $30,000 City Council 22 — 5 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 6 Relampago del Cielo — Folklorico Dance Instruction $57,325 Taller San Jose Hope Builders — Business Applications $30,000 The Cambodian Family — Plan Ahead Youth Program $34,098 Women's Journey Foundation — Next Generation, Emotional Intelligence Through the Arts $57,500 Young Men's Christian Association of OC — Financial Assistance $40,000 TOTAL $825,173 HOME Investment Partnerships Grant Program Bud( et The HOME Investment Partnerships (HOME) program provides funds for a wide range of housing -related activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership, or providing direct tenant -based rental assistance to low-income residents. The program's flexibility allows HOME funds to be used for grants, direct loans, loan guarantees or other forms of credit enhancements, or tenant -based rental assistance or security deposits. At least 15% of HOME funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). A CHDO is a private nonprofit, community -based organization that has staff with the capacity to develop affordable housing for the community it serves. In order to qualify for designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience. The City's HOME allocation for GY 2021, FY 2021-2022 is $1,706,231. The proposed Annual Action Plan for the HOME Program consists of the GY allocation, program income and prior year HOME resources. The large carryover of prior year resources ($6,883,000) is due to the lengthy development process for affordable housing developments. While funds may be pre -committed for a project, they may not be committed until certain requirements are met including underwriting, subsidy layering, and project assessment requirements. In this Annual Action Plan funds are proposed for single-family rehabilitation of mobile homes, the required set -aside for CHDOs, and funds for affordable housing development and rehabilitation. The funds for affordable housing development and rehabilitation ($8,381,309) include a pre -commitment of funds for two affordable housing projects in pre -development: $3,007,489 for the construction of 16 HOME -assisted units at the Crossroads at Washington project, and $2,003,705 for the construction of 9 HOME - assisted units at the Westview House project, as approved by the City Council. The remaining funds will be allocated through a Request for Proposals for Affordable Housing Development to be issued during FY 2021-2022. The budget below only includes those funds that are being budgeted for FY 2021-2022: City Council 22 — 6 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 7 2021 HOME Program Budget General Activity Funding Amount HOME Program Administration $ 170,623 HOME CHDO Set -Aside $ 255,935 Affordable Housing Development and Rehabilitation $1,179,673 Single -Family and Mobile Home Rehabilitation Programs $ 100,000 TOTAL $1,706,231 The FY 2021-2022 HOME Program Funding Plan is not attached as an exhibit because the funding plan is described in the table above. Emergency Solutions Gran[ The Emergency Solutions Grants (ESG) program provides funds to assist sheltered and unsheltered homeless individuals, as well as those at risk of homelessness, to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. Recipients of ESG funding in Orange County include the following entitlement jurisdictions: County of Orange, City of Anaheim, City of Irvine, City of Santa Ana and City of Garden Grove. Collectively, this group is referred to as the Orange County ESG Collaborative that was formed over five years ago. On November 7, 2019, three member cities of the Orange County ESG Collaborative released a combined ESG Request for Proposals (RFP) to support the Orange County Continuum of Care' s goal to end homelessness (the County of Orange and City of Irvine allocated their funding independent of the Collaborative this funding cycle). The Collaborative accepted applications until December 10, 2019, with supplemental applications and requirements for both the City of Santa Ana and Anaheim. The RFP included a provision for up to four one-year renewals that could be exercised independently by each Collaborative member. The Collaborative chose to exercise this renewal option for FY 2021-2022. While funding recommendations are made collaboratively, ESG funds are to be used to provide eligible activities within each jurisdiction in which they are funded. Subrecipients awarded funding in FY 2020-2021 and interested in FY 2021-2022 funding, were required to re -submit a budget and program summary for FY 2021-2022 ESG funding. The City's ESG allocation for GY 2021, FY 2021-2022 is $489,141. The proposed FY 2021-2022 ESG Program and Funding Plan includes a list of homeless service providers recommended for funding for FY 2021-2022 (Exhibit 4). The funding recommendations are based upon applications received during the 2019 RFP process, performance and current needs as identified by staff. The budget below is broken down by category to provide more detail on funds allocated to eligible ESG activities: City Council 22 — 7 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 8 2021 ESG Program Budget General Activity Funding Amount ESG Program Administration $ 36,686 Homeless Street Outreach $ 51,880 Homeless Emergency Shelter $ 110,000 Homeless Prevention $ 25,000 Rapid Re -housing $ 125,000 ESG Data Collection Management $ 140,575 TOTALI $ 489,141 Outreach and Engagement In accordance with the regulations at 24 CFR Part 91, the City of Santa Ana's Citizen Participation Plan requires two public hearings to be conducted annually for the development of the Annual Action Plan. The first public hearing was held before the Community Development Commission on March 3, 2021 to accept public comments on the funding priorities for the upcoming year that would be included in the draft Annual Action Plan: and the second public hearing will be held before the Santa Ana City Council on May 4, 2021 to accept public comments on the draft Annual Action Plan. In addition, the federal regulations for HUD requires that the draft Annual Action Plan be made available for a 30-day public review and comment period. On April 4, 2021, a public notice was published in the Orange County Register that the draft Annual Action Plan was available for review and comment beginning April 4, 2021, and that a public hearing would be held on May 4, 2021- The public hearing was also noticed in La Opinion in Spanish and Nguoi Viet in Vietnamese. The 30-day public comment period will conclude on May 4, 2021. All comments received, including all funding recommendations made by the City Council, will be included in the final document. The deadline for Submission of the FY 2021-2022 Annual Action Plan to HUD is no later than May 15, 2021, 45-days before the end of the City's Fiscal Year. FISCAL IMPACT Funds will be budgeted and available in the following grant account (nos. 13518780, 13518782, 13518783, 13018780, and 13518785,) upon execution of a grant agreement between the City and HUD and adoption of the FY 2021-2022 annual budget: Fiscal Year Grant Year Accounting Unit -Account Fund Description Accounting Unit, Account Description Amount FY 13518780- Community CDBG 2021-22 2021 various Development Administration $1,111,744 Block Grant Community FY 2021 13518782- Development CDBG Housing $480,000 2021-22 various Block Grant City Council 22 — 8 5/4/2021 Annual Action Plan for CDBG, HOME and ESG Programs May 4, 2021 Page 9 FY 13518783- Community 2021-22 2020 Development CDBG Programs $3,966,976 various Block Grant FY 2015- 13518783- Community Development CDBG Programs $612,779 2021-22 2020 66220 Block Gran[ Total for FY 2021-2022 1 $6,171,499 Fiscal Year Grant Year Accounting Unit -Account Fund Description Accounting Unit, Account Description Amount HOME FY 2021 13018780- Investment HOME Program $1,706,231 2021-22 various Partnership Grant I Total for FY 2021-2022 1 $1.706,231 1 Fiscal Grant Accounting Fund Accounting Unit, Amount Year Year Unit -Account Description Account Description FY 13518785- Emergency 2021-22 2021 various Solutions ESG Grant $489,141 Grant I Total for FY 2021-2022 1 $489,141 1 EXHIBIT(S) 1. FY 2021-2022 Annual Action Plan 2. CDBG FY 2021-2022 Program Funding Plan 3. CDBG FY 2021-2022 Program Summaries 4. ESG FY 2021-2022 Program Funding Plan Submitted By: Steven A. Mendoza, Assistant City Manager Approved By. Kristine Ridge, City Manager City Council 22 — 9 5/4/2021 g N N U A L AC 1 1"N W LA v EXHIBIT 1 This page intentionally left blank City Council 22 — 11 51412021 EXHIBIT 1 Table of Contents ExecutiveSummary...........................................................................................................................- 1 - AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)............................................................. 1 - PR-05 Lead & Responsible Agencies — 91.200(b)........................................................................... 4- AP-1 0 Consullalion — 91.100, 91.200(b), 91.215(I).......................................................................... 5 - AP-12 Participation — 91.105, 91.200(c)........................................................................................ 32 - ExpectedResources........................................................................................................................- 33- AP-15 Expected Resources — 91.220(c)(1,2)................................................................................ 33 - Annual Goals and Objectives...........................................................................................................- 36- AP-20 Annual Goals and Objectives............................................................................................. 37 - AP-35 Projects — 91.220(d)........................................................................................................... 39 - AP-38 Project Summary...............................................................................................................- 41 - AP-50 Geographic Distribution — 91.220(f).................................................................................... 50 - AffordableHousing--------------------------------------------------------------------------------------------------------------------------- 52 - AP-55 Affordable Housing — 91.220(g).......................................................................................... 52 - AP-60 Public Housing — 91.220(h)................................................................................................ 54 - AP-65 Homeless and Other Special Needs Activities — 91.220(i).................................................. 55 - AP-75 Barriers to affordable housing — 91.220(j)........................................................................... 57 - AP-85 Other Actions — 91.220(k)................................................................................................... 58 - Program Specific Requirements....................................................................................................... 60 - AP-90 Program Spocific Roquiromonts— 91.220(I)(1,2,4)............................................................. 60- Action Plan Tables Table 1 — Responsible Agencies........................................................................................................- 4- Table 2 - Agencies, groups, organizations who participated............................................................. 30 - Table 3 - Other local/regionall federal planning efforts.....................................................................- 31 - Table 4 — Citizen Participation Outreach..........................................................................................- 32 - Table 5 - Expected Resources — Priority Table................................................................................- 35 - Table6 — Goals Summary................................................................................................................ 38 - Table7 - Goals Description-------------------------------------------------------------------------------------------------------------- 39 - Table 8 - Project Information............................................................................................................- 40 - Table 9 - Geographic Distribution..................................................................................................... 51 - Table 10 - One Year Goals for Affordable Housing by Support Requirement ...................................- 52 - Table 11 - One Year Goals for Affordable Housing by Support Type ................................................ 52 - City Council 22 — 12 514/2021 EXHIBIT 1 City Council 22 — 13 51412021 EXHIBIT 1 Version History No. Summary of Changes Published Draft for Public Comment: Date Sent to HUD for 5/15121 Approval: 1 Conducted Public Hearin : Date Approved by HUD: TBD Original 2021-2022 Annual Action Plan. Published Draft for Public Comment. Sent to HUD for Approval: 2 Conducted Public Hearing: Approved by HUD: Amendment 1 (Substantial / Non -Substantial): Published Draft for Public Comment: sent to HUD for Approval: 3 Conducted Public Hearing: Approved by HUD. Amendment 2 (Substantial / Non -Substantial): Published Draft for Public Comment: Sent to HUD for Approval. 4 Cnnducted Public Hearing: Approved by HUD: Amendment 3 (Substantial / Non -Substantial): Published Draft for Public Comment: Sent to HUD for Approval. 5 Conducted Public Hearing: Approved by HUD. Amendment 4 (Substantial / Non -Substantial). City Council 22 — 14 5/4/2021 EXHIBIT 1 Executive Summary AP-05 Executive Summary- 24 CFR 91.200(c), 91.220(b) Introduction The 2021-22 Action Plan is the City of Santa Ana's Annual Plan for the investment of annual allocations of Community Development Block Grant (CDBG), Home Investment Partnerships (HOME) and Emergency Solutions Grant (ESG) funds from the U.S. Department of Housing and Urban Development (HUD) during the fiscal year 2021-2022. These grant programs are consistent with HUD's national strategy to provide decent housing opportunities, a suitable living environment and economic opportunities —particularly for low- and moderate -income people. In consideration of finite grant resources, the goals and projects within this Action Plan outline the areas and population segments with the greatest level of need for a particular program or activity and intends to invest grant resources in high leverage opportunities where data suggests that the City will be able to maximize the impact of every dollar. The Action Plan utilizes the priority needs identified in the 2020 — 2024 Consolidated Plan process, which identified the City's priority needs, including the rationale for establishing allocation priorities and specific measurable goals to be addressed during the five year period. Summarize the objectives and outcomes identified in the Plan HUD's Community Planning and Development (CPD) Outcome Performance Measurement Framework classifies objectives in three categories: decent housing, a suitable living environment, and economic opportunity. In Santa Ana's 2020-2024 Consolidated Plan, the City identified six high priority needs to be addressed through the implementation of activities aligned with seven Strategic Plan goals. The priority needs for Santa Ana include: Expand the supply of affordable housing • Preserve the supply of affordable housing • Access to and supply of public services • Increase access to and supply of homeless services and facilities Promote economic opportunity Improve City public facilities and infrastructure Consistent with HUD's national goals for HUD CPD programs to provide decent housing opportunities, maintain a suitable living environment and expand economic opportunities for low- and moderate -income City Council 22 — 15 51412021 EXHIBIT 1 residents, the priority needs listed above will be addressed through the implementation of HUD funded activities aligned with the following seven measurable Strategic Plan goals: • Affordable Housing Development, Maintenance, and Preservation • Code Enforcement • Public Service Programs • Homeless Services and Facilities • Economic Development Program • Public Facilities and Infrastructure • Program Administration and Fair Housing Services Evaluation of past performance During the 2020 program year, the City of Santa Ana prioritized program activities to address the impacts of the COVID-19 pandemic within the City of Santa Ana. Activities included rental assistance, small and microbusiness support, homeless prevention, and targeted public service activities. Additionally, during the 2020 program year, the City funded the following activities: 1. Renovation of the Santa Ana Main Library to improve weatherproofing and install new windows throughout the facility 2. Construct a new park at the corner of Raitt and Myrtle Streets 3. Graffiti and Vandalism abatement 4. Public service activities to support youth, seniors, disabled individuals, and low- and moderate - income residents within the City 5. Code enforcement in targeted neighborhoods 6. Homeless services and prevention activities 7. Housing rehabilitation activities to low- and moderate -income households 8. Downpayment assistance to low- and moderate -income households Additional funding from program year 2020 was reserved for future affordable housing developments and activities. Summary of Citizen Participation Process and consultation process City Council 22 — 16 51412021 EXHIBIT 1 To be completed. Summary of public comments To be completed. Summary of comments or views not accepted and the reasons for not accepting them To be completed. City Council 22 — 17 51412021 EXHIBIT 1 PR-05 Lead 5 Responsible Agencies — 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Annual Plan and those responsible for administration of each grant program and funding source. Department/AgencyAgency Role Name CDBG Administrator I SANTA ANA I Community Develop ment7 enc HOME Administrator I SANTA ANA I Community Development Agency ESG Administrator I SANTA ANA I Communitv Development Aaencv Table 1 — Responsible Agencies Narrative The City of Santa Ana Community Development Agency is the lead agency for overseeing the development of the Consolidated Plan. This Department is also responsible for the preparation of the Annual Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER) and CDBG, HOME, and ESG program administrations. The City of Santa Ana was supported by MDG Associates, Inc. in the development of the Annual Action Plan. Consolidated Plan Public Contact Information David Flores Community Development Analyst Community Development Agency dfloresOsanta-ana.org 714-647-65631 City Council 22 — 18 5/4/2021 EXHIBIT 1 AP-10 Consultation — 91.100, 91.200(b), 91.215(I) 1. Introduction As part of the 5-year Consolidated Planning process, the City of Santa Ana consulted with representatives from multiple agencies, groups, and organizations involved in the development of affordable housing, creation of job opportunities for low- and moderate -income residents, and/or provision of services to children, elderly persons, persons with disabilities, persons with HIV/AIDS and their families, and homeless persons. To facilitate this consultation, the City solicited feedback through the following methods: Stakeholder/resident surveys Individual stakeholder consultations Community reetings • Public hearings • 30-day public comment period • Receipt of written comments To gather the greatest breadth and depth of information, the City consulted with a wide variety of agencies, groups and organizations concerning the housing, community and economic development needs of the community. Each of the agencies, groups or organizations consulted is represented below. The input received from these consultation partners helped establish and inform the objectives and goals described in the Strategic Plan. Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1)). The City recognizes the importance of careful coordination and alignment among various service providers to maximize the effectiveness of the CDBG program. As a result, during the development of this Consolidated Plan, the City consulted with organizations that provide assisted housing, health services and other community -focused programs. Outreach efforts included surveys including specific questions associated with coordination, invitations to community meetings and follow-up phone interviews where appropriate. The City further recognizes the imporlance of continued coordination and alignment during the upcoming five-year planning period with these organizations and agencies. The City will strengthen relationships and alignment among these organizations in the implementation of the NOFA process for CDBG funds and through technical assistance provided to subrecipients of CDBG funds each year. City Council 22 — 19 5/4/2021 EXHIBIT 1 Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness Orangc County's homeless Continuum of Care (CoC) is comprised of a network of public, private, faith - based, for -profit, and non-profit service providers who utilize several federal, state and local resources to provide services and facilities for homeless people. The region's municipalities, including the City of Santa Ana, also provide resources for services that assist the homeless and those at -risk of becoming homeless. Non-profit service and facility providers play a critical role in the current CoC system and in addressing homeless needs within Santa Ana. These organizations provide a range of services throughout the County ranging from job training to creating permanent supportive housing opportunities. These services are available to homeless individuals and households. The CoC guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. In conducting the City's Needs Assessment, Santa Ana carefully reviewed the CoC's current strategy and planning documents to ensure coordination in goals and objectives. Additionally, the City provided a questionnaire to the CoC as well as key service providers operating in Santa Ana to identify the CoC's perceived needs in the county and its objectives to address the needs of different homeless persons populations, specifically chronically homeless families and individuals, families with children, veterans, unaccompanied youth and persons at risk of homelessness. The City will continue to actively work with the CoC as well as its partners throughout the County to coordinate on the planning and implementation of homeless services and programming. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS In the development of the Consolidated Plan, the City of Santa Ana consulted with numerous housing. social service, and homeless service providers whose work intersects with the goal of reducing and ending homelessness in Orange County and/ or Santa Ana. This consultation provided input on allocation methodologies and approach for ESG programs. The City of Santa Ana regularly coordinates with the Orange County CoC to align performance standards, evaluate outcomes of current initiatives, coordination program policies and procedures related to program design and HMIS administriqtion. City Council 22 — 20 5/4/2021 EXHIBIT 1 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities 1 Agency/Group/Organization Santa Arta Housing Authority Agency/Group/Organization Type Public Housing Housing What section of the Plan was addressed by Housing Need Assessment Consultation? Public Housing How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach, data of the consultation or areas for improved validation, and the web -based coordination? survey- Through this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and reconunendatiais related to the topics highlighted above from this stakeholder, 2 Agency/Group/Organization ALBI Agency/Group/Organization Type Services -Children What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. City Council 22 — 21 5/4/2021 EXHIBIT 1 3 Agency/Group/Organization Regional Center of Orange Count Agency/Group/Organization Type Services -Persons with Disabilities Regional Organization What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, San to Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 4 Agency/Group/Organization HIV Planning Council Agency/Group/Organization Type Services -Persons with HIV/AIDS What section of the Plan was addressed by Non -Housing Community Consultation? Development HOPWA Strategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 5 Agency/Group/Organization America on Track Agency/Group/Organization Type Services — Children What section of the Plan was addressed by Non -Housing Community Consultation? Development City Council 22 — 22 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 6 Agency/Group/Organization Orange County CoC Agency/Group/Organization Type Services -homeless What section of the Plan was addressed by Homelessness Strategy Consultation? Homeless Needs - Chrunically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccom anied youth How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach, data of the consultation or areas for improved validation, and the web -based coordination? survey. Through this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 7 Agency/Group/Organization Santa Ana Chamber of Commerce Agency/Group/Organization Type Business and Civic Leaders What section of the Plan was addressed by Economic Development Consultation? Market Analysis City Council 22 — 23 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach, phone of the consultation or areas for improved interview and the web based coordination? survey Through this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejunsdiction. Santa Ana sought specific input, feedback, and recoMmendations related to the topics highlighted above from this stakeholder. S Agency/Group/Organization The GREEN Foundation Agency/Group/Organization Type Services — Health Services — Education What section of the Plan was addressed by Non -Housing Community Consultation? Development Haw was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and tho City to bo an active participant in housing and community 9 Agency/Group/Organization Habilal for Humanily of OC Agency/Group/Organization Type Services — Housing Housing What section of the Plan was addressed by Housing Needs Assessment Consultation? City Council 22 — 24 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a comrnuniry/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 10 Agency/Group/Organization Community Health Initiative Agency/Group/Organization Type Services — Health What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 11 Agency/Group/Organization Latino Health Access Agency/Group/Organization Type Services — Health What section of the Plan was addressed by Non -Housing Community Consultation? Development City Council 22 — 25 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a communiry/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from Lhis stakeholder. 12 Agency/Group/Organization Neighborworks of Orange Count Agency/Group/Organization Type Services — Housing Housing What section of the Plan was addressed by Housing Needs Assessment Consultation? How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 13 Agency/Group/Organization Orange County Labor Foundation Agency/Group/Organization Type Regional Organization Services — Employment What section of the Plan was addressed by Non -Housing Community Consultation? Development Market Analysis Economic Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a cornmunity/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community City Council 22 — 26 5/4/2021 EXHIBIT 1 14 Agency/Group/Organization Greater Light Family Church Agency/Group/Organization Type Other What section of the Plan was addressed by Non -Housing Community Consultation? Development Needs Anti -Poverty rategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 15 Agency/Group/Organization The Kennedy Commission Agency/Group/Organization Type Services —Housing Housing What section of the Plan was addressed by Housing Needs Assessment Consultation? How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 16 Agency/Group/Organization Second Baptist Church of Santa Ana Agency/Group/Organization Type Other What section of the Plan was addressed by Non -Housing Community Consultation? Development Needs Anti -Poverty Strategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 17 Agency/Group/Organization HUMAN OPTIONS, INC. City Council 22 — 27 5/4/2021 EXHIBIT 1 Agency/Group/Organization Type Services -Children Services -Elderly Persons Services -Persons with Disabilities Services -Persons with HIV/AIDS Services -Victims of Domestic Violence Services -homeless Services -Employment What section of the Plan was addressed by Homeless Needs - Chronically Consultation? homeless Homeless Needs - Families with children Public Services How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 18 Agency/Group/Organization Community Legal Aid — Southern California Agency/Group/Organization Type Services — Fair Housing Services — Victims Services - Housing What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 19 Agency/Group/Organization Heritage Museum of Orange Count Agency/Group/Organization Type Services — Children Services - Education What section of the Plan was addressed by Non -Housing Community Consultation? Development City Council 22 — 28 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 20 Agency/Group/Organization Chis a OC Agency/Group/Organization Type Civic Leader What section of the Plan was addressed by Non -Housing Community Consultation? Development Housing Needs Assessment How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 21 Agency/Group/Organization YMCA Agency/Group/Organization Type Services - Children What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 22 Agency/Group/Organization Community Action Partnership of Orange Count Agency/Group/Organization Type Regional Organization What section of the Plan was addressed by Anti -Poverty Strategy Consultation? City Council 22 — 29 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 23 Agency/Group/Organization WISE PLACE Agency/Group/Organization Type Services -Victims of Domestic Violence Services - Homeless What section of the Plan was addressed by Homelessness Strategy Consultation? Homeless Needs — Families with Children Homeless Needs — Chronically Homeless How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach, phone of the consultation or areas for improved interview and the web -based coordination? survey. Through this consultation, Santa Arta opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 24 Agency/Group/Organization CSU - Fullerton Agency/Group/Organization Type Services — Education Business Leaders What section of the Plan was addressed by Non -Housing Community Consultation? Development Meeting City Council 22 — 30 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by participation in a community/ of the consultation or areas for improved stakeholder meeting. Through coordination? this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community 25 Agency/Group/Organization Santa Ana Downtown Inc. Agency/Group/Organization Type Business Leaders What section of the Plan was addressed by Market Analysis Consultation? Economic Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by phone interview. Through this of the consultation or areas for improved consultation, Santa Ana opened coordination? or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 26 Agency/Group/Organization Mercy House Agency/Group/Organization Type Services — Homeless What section of the Plan was addressed by Homeless Strategy Consultation? Horneless Needs — Veterans Homeless Needs — Chronically Homeless Homeless Needs — Unaccompanicd Youth Homeless Needs — Families with Children City Council 22 — 31 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 27 Agency/Group/Organization City Net Agency/Group/Organization Type Services - Homeless What section of the Plan was addressed by Homeless Strategy Consultation? Homeless Needs — Veterans Homeless Needs — Chronically Homeless Homeless Needs — Unaccompanied Youth Homeless Needs — Families with Children Non -Homeless Special Needs How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by phone interview. Through this of the consultation or areas for improved consultation, Santa Aria opened coordination? or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in the jurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 28 Agency/Group/Organization Orange County Emergency Management City Council 22 — 32 5/4/2021 EXHIBIT 1 Agency/Group/Organization Type Agency — Emergency Management Agency — Managing Flood Prone Areas What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach. Through this of the consultation or areas for improved consultation, Santa Ana opened coordination? or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder, 29 Agency/Group/Organization Boy's and Girl's Club of Central Orange Coast Agency/Group/Organization Type Services — Children What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. I hrough this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in the jurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 30 Agency/Group/Organization Building Heal hy Communities Agency/Group/Organization Type Planning — Organization Services — Health City Council 22 — 33 5/4/2021 EXHIBIT 1 What section of the Plan was addressed by Housing Needs Assessment Consultation? Lead -based Paint Strategy Non -Housing Community Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder 31 Agency/Group/Organization CASA of Orange Count Agency/Group/Organization Type Foster Care Agency/Facility Services — Children Child Welfare Agency What section of the Plan was addressed by Homeless Strategy Consultation? Homeless Needs — Unaccompanied Youth Non -Homeless Special Needs How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 32 Agency/Group/Organization Charitable Ventures of Orange Count City Council 22 — 34 5/4/2021 EXHIBIT 1 Agency/Group/Organization Type Regional Organization What section of the Plan was addressed by Market Analysis Consultation? Anti -Poverty rategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development planning in thejurisdiction. Santa Ana sought specific input, feedback, and recommendations related to the topics highlighted above from this stakeholder. 33 Agency/Group/Organization Com-Link Agency/Group/Organization Type Civic Leader What section of the Plan was addressed by Anti -Poverty Strategy Consultation? Housing Needs Assessment How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 34 Agency/Group/Organization Delhi Center Agency/Group/Organization Type Services — Elderly Persons Services — Health Services — Education What section of the Plan was addressed by Housing Needs Assessment Consultation? Non -Homeless Special Needs How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to he an active participant in housing and community development City Council 22 — 35 5/4/2021 EXHIBIT 1 35 Agency/Group/Organization Fair Housing Council of Orange Count Agency/Group/Organization Type Services — Fair Housing Regional Organization What section of the Plan was addressed by Housing Needs Assessment Consultation? Market Analysis Anti -Poverty Strategy Lead -based Paint Strategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 36 Agency/Group/Organization Goodwill Tierney Center Agency/Group/Organization Type Services — Veterans Services — Homeless What section of the Plan was addressed by Homeless Needs — Veterans Consultation? Homeless Needs - Chronically Homeless How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 37 Agency/Group/Organization Interval House Agency/Group/Organization Type Services — Homeless Services — Victims Services — Domestic Violence What section of the Plan was addressed by Homeless Needs — Families Consultation? with Children Homelessness Strategy City Council 22 — 36 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 38 Agency/Group/Organization KidWorks Agency/Group/Organization Type Services - Education What section of the Plan was addressed by Economic Development; Consultation? Non -Housing Community Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of Communication between the stakeholder and the City to be an active participant in housing and community development 39 Agency/Group/Organization Lutheran Social Services of Southern California Agency/Group/Organization Type Services — Housing Services — Homeless Services — Health Services — Employment Services — Education What section of the Plan was addressed by Housing Needs Assessment Consultation? Economic Development Anti -Poverty rategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 40 Agency/Group/Organization Mental Health Agency of Orange Count City Council 22 — 37 5/4/2021 EXHIBIT 1 Agency/Group/Organization Type Health Agency Services — Health Services — Persons with Disabilities Publicly Funded Institution What section of the Plan was addressed by Housing Needs Assessment Consultation? Non -Housing Community Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for Improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 41 Agency/Group/Organization Neutral Ground Agency/Group/Organization Type Services — Children Services — Education What section of the Plan was addressed by Non -Housing Community Consultation? Development Needs How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 42 Agency/Group/Organization OC Partnership Agency/Group/Organization Type Services - Homeless What section of the Plan was addressed by HomelessNeeds— Chronically Consultation? Homeless Homeless Needs — Families with Children Homeless Needs — Veterans Homeless Needs — Unaccompanied Youth City Council 22 — 38 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 43 Agency/Group/Organization OneOC Agency/Group/Organization Type Re ional Or anization What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 44 Agency/Group/Organization Orange County Business Council Agency/Group/Organization Type Business Leaders What section of the Plan was addressed by Economic Development Consultation? Market Anal sis How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 45 Agency/Group/Organization Orange County Children's Therapeutic Art Center Agency/Group/Organization Type Services — Children Services — Persons with Disabilities What section of the Plan was addressed by Non -Housing Community Consultation? Development City Council 22 — 39 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development 46 Agency/Group/Organization Oranqe County Health Care Agency Agency/Group/Organization Type Heath Agency Publicly Funded Institution What section of the Plan was addressed by Non -Housing Community Consultation? Development Lead -based Paint Strategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 47 Agency/Group/Organization Orange County Social Services Agency Agency/Group/Organization Type Child Welfare Agency What section of the Plan was addressed by Homeless —Unaccompanied Consultation? Youth I ead-based Paint Strategy Non -Housing Community Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and cornrnunity develo rrrent. 48 Agency/Group/Organization Orange County Water District Agency/Group/Organization Type Agency — Management of Public Land or Water Resources What section of the Plan was addressed by Non -Housing Community Consultation? Development City Council 22 — 40 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 49 Agency/Group/Organization Public Law Center Agency/Group/Organization Type Services —Housing Services — Victims Services — Fair Housing What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 50 Agency/Group/Organization Santa Ana Police Department Agency/Group/Organization Type Agency — Emergency Management What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community develo ment. 51 Agency/Group/Organization Santa Ana Senior Center Agency/Group/Organization Type Services — Elderly What section of the Plan was addressed by Non -Housing Community Consultation? Development City Council 22 — 41 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 52 Agency/Group/Organization Santa Ana Workforce Investment Board Agency/Group/Organization Type Planning Organization Services — Employment What section of the Plan was addressed by Economic Development Consultation? Market Analysis How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 53 Agency/Group/Organization Second Chance Orange Count Agency/Group/Organization Type Services —Persons with Disabilities Services — Health What section of the Plan was addressed by Housing Needs Assessment Consultation? Anti-Pr)vprty rategy How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and (;ornmunity develo nient. 54 Agency/Group/Organization Small Business Development Center Agency/Group/Organization Type Services — Employment What section of the Plan was addressed by Economic Development Consultation? Market Analysis City Council 22 — 42 5/4/2021 EXHIBIT 1 How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 55 Agency/Group/Organization Taller San Jose Hope Builders Agency/Group/Organization Type Services — Employment What section of the Plan was addressed by Economic Development Consultation? Market Analysis How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 56 Agency/Group/Organization Tem Io Calvano CDC Agency/Group/Organization Type Services — Education What section of the Plan was addressed by Non -Housing Community Consultation? Development How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. 57 Agency/Group/Organization VAMC Agency/Group/Organization Type Services — Homeless What section of the Plan was addressed by Homeless Needs — Veterans Consultation? How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes by email outreach and the web - of the consultation or areas for improved based survey. Through this coordination? consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and communit development. 58 Agency/Group/Organization The Cambodian Family Agency/Group/Organization Type Services — Immigrant Families City Council 22 — 43 5/4/2021 EXHIBIT 1 What section of the Plan was addressed by Consultation? Non -Housing Community Development Needs Housing Needs Assessment How was the Agency/Group/Organization The organization was consulted consulted and what are the anticipated outcomes of the consultation or areas for improved by email outreach and the web - coordination? based survey. Through this consultation, Santa Ana opened or preserved lines of communication between the stakeholder and the City to be an active participant in housing and community development. Table 2 - Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City maintains a list of agencies, organizations and other stakeholders that have expressed an interest in City's CDBG program and invited representatives from each entity to participate at multiple points in the planning process. All agencies were strongly encouraged to attend meetings and participate in surveys. Any agency or organization that was not consulted and would like to be included in the City's list of stakeholders, the agency or organization may contact the Community Development Department at the contact information provided for this Consolidated Plan - Other local/regional/state/federal planning efforts considered when preparing the Plan of Plan CEDS Lead Organization Orange County Community Investment Board .. the goals How with the goalsName Both the CEDS and Strategic Plan identify a goal of improving economic opportunities for low- and moderate -income residents 2019 CoC Funding Orange County CoC The CoC application identifies a strategy to continue to Application address homelessness through a coordinated and aligned approach Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? 10 Year Plan to Orange County CoC Both the 10-Year Plan and Consolidated Plan End Homelessness emphasize a comprehensive and coordinated approach to address homelessness Name of Plan Lead Organization How .. the goals goalswith the City Council 22 — 44 5/4/2021 EXHIBIT 1 Table 3 - Other locallregionall federal planning efforts Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(I)) The City invited regional planning organizations, state agencies and adjacent units of local government to participate in the City's surveys and community meetings. Additionally, Santa Ana conducted email outreach to all adjacent units of local government to share in the identification of regional housing and community development needs. Throughout the implementation of the Consolidated Plan process, the City of Santa Ana consults and coordinates activities with local units of government and monitors state programs and regulations to leverage local HUD funding. City Council 22 — 45 51412021 u m \0 °@2 �=7 f Q m =E �Ej S } \) [« a{)\\22) $� /\\/}\j) |/\fmC) < \ « 0 \ M \ u 3 \& 3 \ ) CL \ £ k 2 \ § ■ EXHIBIT 1 Expected Resources AP-15 Expected Resources — 91.220(c)(1,2) Introduction The City of Santa Ana anticipates that it will continue to receive CDBG, HOME, and ESG funding during the duration of this Consolidated Plan cycle. When accounting for program income and prior year resources, the City anticipates that it will have the following funding to target to its strategic goals and priorities. • CDBQ $5,558,720 HOME: $1,706,231 ESG: $489,141 The table on the following page provides more detail on anticipated funding for the 2021 program year. City Council 22 — 47 51412021 m x w U O a r c Q. 7 cc E� o L c Q �L � E o� a @ o c C pQom, C 0 @ •� �Q ) ry 7 Q 7 LL O U C@ .L--, tCO U) LL y (D -0 rOn a)@ L @ Y Ul @ Q O O O O O t7 O a06 r r teH 69 cm N @ O 6R � fj V F m to m W to a4 @ A Cl) O tD G1 N CD 2 N cli coO p co Go a m tow Of @ N to It CD O O M aI c u. v3 @ _ t4 ti r N � P C C @ 49 O Q O Ln rl — Ilj a �N _n— r�o� c �Cl m �E E c_� d to m a O z m=LL o,U N rn c C oo c O] cr cy o @ o ' o� ¢¢LLwo E ¢_ @ 3 0 Z w w w w a a a)LL LL LD W cW C o O U 2 N O N T co v i N N U C 7 O U T iJ \_ �// §kEe)�©\tQaji.0 § {)\ �R:{/0))- - k k 40 � k �j\/\\w\/\jon )=Cocf/2j3§rJ ®4%tef §-5 ° 3J\I ) 2 LU k § ■ EXHIBIT 1 Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The City recognizes that the City's annual entitlement is not sufficient to meet all of the needs of the community. It is therefore important to leverage resources to achieve the goals of the City. The City works diligently with private, state and local partners to leverage the City's HUD CPD funds. For the ESG program, matching requirements are passed to sub -recipients who demonstrate matching dollars prior to funding as well as at each quarterly invoice. ESG funds are leveraged by working with the OC Collaborative and considering other funding opportunities for various programs for the homeless population. This will include leveraging with both Housing Choice Voucher Program funding and HOME funds. The City administration recognizes that the City's annual entitlement and formula allocations are not sufficient to meet all of its needs, and that leveraging resources is critical to achieving the City's goals. The City continues to cultivate funding partners who can match the City's investment of CDBG, HOME, and ESG funds. The need remains great, and additional funds are sought to ensure that more affordable housing and important progrars and activities are available for those in need. To that end the City seeks funds from the State and grants from other entities, both public and private. Matching requirements have beer) satisfied with other eligible financial resources and/or in -kind services, and the City will continue to seek this type of matching as well as financial matches. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The Santa Ana Housing Authority owns the parcel at 302 E. Twenty -Second Street. This parcel is approximately 27,817 square feet in size. It is currently zoned R1 for single family residences, which allows one house per lot. The vacant, undeveloped lot was purchased from CalTrans and was a remnant parcel from a freeway -widening project. The properly is irregular in shape and below the minimum lot size for a residential lot. The City and Housing Authority are currently assessing the necessary variances and other approvals necessary to support development on this lot. In addition, Santa Ana will comply with new State requirements under AB1486 and AB1255 to inventory and support developers to access and utilize surplus municipal and state land for the construction of affordable housing. If such sites are identified, the City will consider the use of HUD or other resources to assist with site preparation. City Council 22 — 50 5/4/2021 0 I( § \5 § } 2 ) eC- /- j ) 4 k 05 j_ [ J \\ /5 /k /0C) 2 \\j ^ cc ( ) k 2 » _ j /( A \/ �® !\ \)®:R a=a! I \ ) 2 = ) 3 f) i / Q-C L m r §/ §1 §n §\ j\ S/ // §a ®® »®_ z>» §%} -a [-a —a }$ [ ${/a> / $}{f\@> «3®; z - 2®\ o u e 3 2 �_ /7}$-k f 3t 2t }Dw Eo 3 {} \} 2®a)o> z °3 =%3 ;;m = j c j ;■° maj j j _< \ § z \\\(\ 5} $m \ \)})))/ ±}z 2 0 a m § ■ e m 9 x L /k 3 § \ k 0 * » \ \ ) &\ \\/ D_ | \ !f\)]/ \ �\ \\\ (\ \D\k\j ] c J t 7 » @ - ?)j\§/rc _ A W`2 /\ - \§ M§ q =ae@f e 7g 6r± Y» 732 <-iID CL CD G _ / w E% LL \ \\ /\ §{ LU ee ow =r _ Z k _\\\\\\ /\ { (`�E 0 0 O J ƒ \ \(\ » ou LU \ § ))( ( ( § §®` CIP E\� @ % \j\ \/\} J ±/2 = »{/± JG 2 to § k \ x 70 \ \ / \ \ 72 \\( \ 5\) 7;{= &\Q{2 EL - 3) ;}2\2 70 A�/m) kj )( CDƒ_ mm _ k®e k§kf \ z b LU _w L) $«�u >/ ~ {~0 a /�& \\ \\ E e(2222 - }2 )57 <� \om0 /§ _\E �)'\({a$\ J«0;-J»aM §)c 2* ®}/&{\b({§\\> k- -_ # -6-0 (@ §r_M\0/k/\ )§ ®_ ®\=:\m2/=2 )c{j§]=em7i 2 »,o, I»2»k2\ ,R (\ )/)))//\/z};» 7- / �m\\��k\\\\g ){ : $co ` (® \@=\\)(\o 2 cm CD !$f)\�\I±3/\) �\ \2 0}ƒ$k 92{ ° ®®» !j =aG\(/$§«£2§f , a(m$e§ /e - m7(m%7-32/\ 6f - -6)a> :)2a /}\\\/\ � rQ\\ /f§@§n:§=om°o;� { {\\cu Q—LUa ) zLL ) j §LL rts ( a ] )§ a)§ ) \ � E cn |� \ E \ §j CL I �_ k § \ ■ EXHIBIT 1 AP-35 Projects — 91.220(d) Introduction During Program Year 2021, the City of Santa Ana will prioritize and fund the projects listed below. Projects 1 Project CDBG Program Administration 2 CDBG Fair Housing 3 CDBG Code Enforcement 4 5 CDBG Street Improvements CDBG Sidewalk Improvements 6 CDI3G Parks and Public Facilities Improvements 7 CDBG Housing Rehabilitation 8 CDBG Public Services 9 FSG-PY21 — Homeless Activities 10 HOME Program Administration 11 HOME SF Rehabilitation 12 HOME Affordable Housing 13 HOME CHDO Table 8 - Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Santa Ana uses a place -based strategy during the planning period. The geographic distribution of funding is predicated somewhat on the nature of the activity to be funded. It is the City's intent to fund activities in the areas most directly affected by the needs of low-income residents and those with other special needs. The Annual Action Plan directs investment geographically to an area benefit neighborhood. The City will continue to work closely with its partners to identify and overcome any obstacles to address the needs of underserved populations. City Council 22 — 54 51412021 EXHIBIT 1 AP-30 Project Summary Project Summary Information 1 Project Name CDBG Administration Target Area n/a — The City does not use target areas for CPD funding Goals Supported All Needs Addressed All Funding CDBG: $1,Ob1,144 Description Overall administration of the CDBG Program including. completion of grant application, oversight of citizen participation process, development of annual funding contracts with agencies, set up of projects in HUD funds disbursement system and draw down funds, implementation of projects and compliance with HUD reporting requirements. Eligibility of this activity is based on Section 105(a)(13) of HUD's regulation. Target Date 6/30/2022 Estimate the number n/a and type of families that will benefit from the proposed activities Location Description Citywide Planned Activities Planning and Administration of the CDBG Program 2 Project Name CDBG Fair Housing Target Area n/a — The City does not use target areas for CPD funding Goals Supported Program Administration and Fair Housing Services Needs Addressed Expand the supply of affordable housing, preserve the supply of affordable housing Funding CDBG: $60,000 City Council 22 — 55 5/4/2021 EXHIBIT 1 ❑escription Provide funding and resources to the Fair Housing Council of Orange County to promote fair housing and combat housing discrimination within the City of Santa Ana. Target Date 6/30/2022 Estimate the number 500 persons assisted through various fair housing activities. and type of families that will benefit from the proposed activities Location Description Citywide Planned Activities Provide funding for administrative and program staff to complete fair housing education, tenant counseling, and fair housing enforcement activities in Santa Ana. 3 Project Name CDBG Code Enforcement Target Area n/a — The City does not use target areas for CPD funding Goals Supported Code Enforcement Needs Addressed Preserve the supply of affordable housing Funding CDBG. $800,000 Description Support the Community Preservation Division's goal of improving neighborhoods through a number of facets including enforcement of laws which create life safety risks and contribute to neighborhood blight. Target Date 6/3012022 Estimate the number 2,500 households will benefit from this proposed activity. and type of families that will benefit from the proposed activities Location Description This activity will be carried out citywide in CDBG eligible neighborhoods. Planned Activities Provide funding to city staff to conduct code enforcement activities in CDBG eligible geographies. City Council 22 — 56 5/4/2021 EXHIBIT 1 4 Project Name Street Improvements Target Area n/a — The City does not use target areas for CPD funding Goals Supported Public Facilities and Infrastructure Needs Addressed Improve City public facilities and infrastructure Funding $1,954,582 Description 1. Install curb ramps on neighborhood streets to make streets more ADA accessible to the community along with the elderly, parents with strollers, and students walking to school and/ or neighborhood parks. Curb ramp installations will occur in CDBG eligible areas. 2. Improve transportation safety by installing pedestrian hybrid beacon on Main Street (at Walnut Street) and the installation of rectangular rapid flashing beacons at key areas identified as highest priority based on city analysis. 3. Residential street repair in Heninger Park neighborhoods. Target Date 6/30/2022 Estimate the number 2,000 and type of families that will benefit from the proposed activities Location Description Activities will occur in CDBG eligible areas as described in the Description Planned Activities See description 5 Project Name Sidewalk Improvements Target Area n/a — The City does not use target areas for CPD funding Goals Supported Public Facilities and Infrastructure Needs Addressed Improve City public facilities and infrastructure Funding $400,000 City Council 22 — 57 5/4/2021 EXHIBIT 1 Description Project involves replacement of existing damaged concrete sidewalks in residential neighborhoods and will include the removal and replacement of adjacent damaged concrete curbs, gutter and driveways. Project will focus on areas with the highest concentration of needed repairs, to help mitigate trip and fall hazards and reducing potential of liability claims and assist in complying with regulations sct forth by the American with Disabilities Act. After the sidewalk concrete repairs within the public right of way are completed, the public will have enhanced pedestrian and multi -modal mobility through the improved neighborhoods. For at least 50% of Santa Ana's low-income population, bicycle is the primary mode of transportation. Therefore, properly maintaining the residential sidewalks that currently have no other viable revenue source, is a direct service Target Date 6/30/2022 Estimate the number 2.000 and type of families that will benefit from the proposed activities Location Description Activities will occur in CDBG eligible areas as described in the Description Planned Activities See description 6 Project Name CDBG Park Improvements Target Area n/a — The City does not use target areas for CPD funding Goals Supported Public Facilities and Infrastructure Needs Addressed Improve City public facilities and infrastructure Funding CDBG: $600,000 Description Conduct improvements to Santa Anita Park to ensure it continues to adequately meet the needs of Santa Ana residents. Target Date 6/3012022 City Council 22 — 58 5/4/2021 EXHIBIT 1 Estimate the number 500 low- and moderate -income residents will benefit from this and type of families activity. that will benefit from the proposed activities Location Description Public parks and open spaces in CDBG eligible areas. Planned Activities The project will expand the parking lot, remove the handball court and relocate the basketball court and playground. The project will also include additional security/parking lot lighting on the eastside of the park. 7 Project Name CDBG Housing Target Area n/a — The City does not use target areas for CPD funding Goals Supported Affordable Housing Development, Maintenance, and Preservation Needs Addressed Preserve the supply of affordable housing Funding CDBG. $480,000 Description Finance the rehabilitation of single-family owner properties and multi- family rental properties for residential purposes and provide down payment assistance to eligible households Target Date 6/30/2022 Estimate the number 6 units will be rehabilitated through this project and 3 households will and type of families be assisted via down payment assistance, benefitting 9 low- and that will benefit from moderate -income households. the proposed activities Location Description Activities will be conducted citywide. Planned Activities CDBG funds to support the rehabilitation of owner and rental units within the City; down payment assistance will be offered through the City's existing Down Payment Assistance Loan Program to income - eligible households to help meet down payment and closing cost requirements. 8 Project Name CDBG Public Services Target Area n/a — The City does not use target areas for CPD funding City Council 22 — 59 5/4/2021 EXHIBIT 1 Goals Supported Public Service Programs Needs Addressed Access to and supply of public services Funding $825,173 Description The City will fund a series of nonprofits that target critical services and benefits for low- and moderate -income residents and special need residents (elderly, youth, homeless, victims of domestic violence, disabled, and other vulnerable populations) in the community. Target Date 6/30/2022 Estimate the number 2,000 low- and roderate-income residents will benefit frorn these and type of families activities that will benefit from the proposed activities Location Description Citywide through multiple nonprofit and community -oriented organizations. Planned Activities The City will provide funding for staff and organizations to provide and deliver a range of services and functions to low- and moderate - income and special need residents throughout the City. Anticipated organizations funded include: Radiant Health Centers, America on Track. Boys and Girls Club of Santa Ana, Community Action Partnerships of OC, Community Health Initiative Orange County, Community SeniorServ, Delhi Center, Girl's Inc. of Orange County, Human Options, Lutheran Social Services of So. Cal, Nati's House, OC Children's Therapeutic Arts Center, Public Law Center, Pure Game. Relampago del Cielo, Taller San Jose Hope Builders, The Cambodian Family, WISEPIace, Women's Journey Foundation, and YMCA of OC. 9 Project Name ESG PY21 — Homeless Activities Target Area n/a — The City does not use target areas for CPD funding Goals Supported Homeless Services and Facilities Needs Addressed Increase access to and supply of homeless services and facilities Funding ESG' $489,141 City Council 22 — 60 5/4/2021 EXHIBIT 1 ❑escription Emergency Solutions Grant project activities including Street Outreach and Engagement, Emergency Shelter, Homeless Prevention, Rapid Re -I lousing, Data and Administration oversight and monitoring. Target Date 6/30/2022 Estimate the number 235 homeless and/ or at risk of becoming homeless households will and type of families benefit from these activities that will benefit from the proposed activities Location Description n/a — The City does not use target areas for CPD funding Planned Activities The City will fund the following eligible services: • Street Outreach: $50,000 • Shelter Operations and Essential Services: $202,428 • Homeless Prevention: $85,000 • Rapid Rehousing: $100,000 • HMIS: $15,028 • Administration: $36,685 10 Project Name Home Program Administration Target Area n/a — The City does not use target areas for CPD funding Goals Supported Program Administration and Fair Housing Services Needs Addressed Preserve the supply of affordable housing, expand the supply of affordable housing Funding HOME: $206,027 Description Ensure compliant and efficient oversight of all HOME funded activities. The estimated funding amount includes program income Target Date 6/30/2022 City Council 22 — 61 5/4/2021 EXHIBIT 1 Estimate the number N/A and type of families that will benefit from the proposed activities Location Description N/A Planned Activities Provide funding to staff and city agencies to oversee and manage the HOME program to ensure compliance with HUD rules and regulations. 11 Project Name HOME Rehabilitation Target Area n/a — The City does not use target areas for CPD funding Goals Supported Affordable Housing Development, Maintenance, and Preservation Needs Addressed Preserve the supply of affordable housing Funding HOME: $100,000 Description The City will provide funding to single-family homeowners to complete critical rehabilitation activities to their property. Target Date 6/30/2022 Estimate the number 5 homeowner units will be rehabilitated through this activity; and type of families benefiting 5 households. that will benefit from the proposed activities Location Description Applications are open for residents citywide. Planned Activities Conduct critical rehabilitation to homeowners to ensure properties are safe and suitable and meet Federal HQS standards and health, safety, and applicable building standards. 12 Project Name HOMF Affordable Housing Target Area n/a — The City does not use target areas for CPD funding Goals Supported Affordable Housing Development, Maintenance, and Preservation Needs Addressed Preserve the supply of affordable housing; expand the supply of affordable housing City Council 22 — 62 5/4/2021 EXHIBIT 1 Funding HOME: $8,381,309 Description HOME funds will be used for activities related to new construction or acquisition and rehabilitation of affordable rental or ownership housing and provide financial assistance to low-income homebuyers. Target Date 6/3012022 Estimate the number Through this project, 24 income -eligible households will benefit from and type of families new construction and rehabilitation activities that will benefit from the proposed activities Location Description The City will identify eligible projects citywide. Planned Activities Through an RFP process, identify eligible new construction, acquisition, or rehabilitation activities to increase the supply of affordable housing within the City of Santa Ana. Projects that are tentatively identified for HOME assistance include: Crossroads at Washington — new multi -family apartment complex consisting of 85 units of affordable rental housing for households earning 30% or less of AMI. Construction is currently scheduled to be completed in December 2023. HOME assistance of approximately $3,007,489 will support the construction of 16 HOME -assisted units. Westview House — new rnulti-farnily apartment complex consisting of 85 units for large families and permanent supportive housing. Construction is currently scheduled to be completed in September 2023. HOME assistance of approximately $2,003,705 will support the construction of 9 HOME -assisted units. 13 Project Name HOME CHDO Target Area n/a — The City does not use target areas for CPD funding Goals Supported Affordable Housing Development, Maintenance, and Preservation Needs Addressed Preserve the supply of affordable housing; expand the supply of affordable housing Funding HOME. $255.935 City Council 22 — 63 5/412021 EXHIBIT 1 Description HOME funds will be used for CHDO-qualified projects within the City of Santa Ana. Target Date 6/30/2022 Estimate the number 4 households will benefit from the development or rehabilitation of and type of families rental housing. that will benefit from the proposed activities Location Description The City will identify eligible projects citywide. Planned Activities In collaboration with an eligible CHDO, the City will support the acquisition, development, or rehabilitation of affordable rental housing. AP-50 Geographic Distribution — 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed HUD resources will be prioritized throughout the City with the primary objective of meeting the needs of low- and moderate -income residents in the City. When evaluating potential projects and programs, the City will ensure that projects are structured to prioritize areas where there is a higher concentration of low- and moderate -income residents. The map below indicates Census block groups in which at least 51 % of the residents are low- or moderate -income residents. The City will prioritize funding in these block groups. City Council 22 — 64 514/2021 EXHIBIT 1 88' 99: City of Santa Ana Ai.wr G� e so Geographic Distribution Rationale for the priorities for allocating investments geographically Discussion .01 755.04 oa+ 755.04 10,12 The City of Santa Ana does not use specific target areas to guide the allocation of funding. The City prioritizes funding that meets community needs and complies with HUD regulations/ requirements. City Council 22 — 65 5/4/2021 EXHIBIT 1 Affordable Housing AP-55 Affordable Housing — 91.220(g) Introduction The Annual Action Plan specifies goals for the number of homeless, non -homeless, and special needs households to be provided affordable housing within the program year. The plan also indicates the number of affordable housing units that will be provided by program type, including rental assistance. production of new units, rehabilitation of existing units, or acquisition of existing units. For the purpose of this section, the term "affordable housing" is defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership. The City of Santa Ana does not prioritize specific housing programs for special needs populations but serves these populations through all housing programs. One Year Goals Supported for the Number of Households to be Homeless 235 Non -Homeless 42 Special -Needs 0 Total 277 Table 10 -One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 75 The Production of New Units 34 Rehab of Existing Units 15 Acquisition of Existing Units 153 Total 277 Table 11 -One Year Goals for Affordable Housing by Support Type City Council 22 — 66 51412021 EXHIBIT 1 City Council 22 — 67 51412021 EXHIBIT 1 AP-60 Public Housing — 91.220(h) Introduction The Santa Ana Housing Authority administers 1,793 Housing Choice Vouchers and does not own or operate and public housing units. The Santa Ana Housing Authority was consulted during this consolidated planning process. It is the intention of the Authority to continue to provide safe, attractive affordable housing to its HCV clients. Actions planned during the next year to address the needs to public housing Not applicable, the City of Santa Ana does not manage public housing developments. Actions to encourage public housing residents to become more involved in management and participate in homeownership SAHA increases resident involvement through resident involvement in presentations at community meetings, online communication, public notices, and public hearings. A broad citizen participation process is maintained with traditional and electronic communication being used to notify the community of ongoing planning efforts. The City of Santa Ana maintains coordination with public agencies, private entities, and community residents through the City of Santa Ana's Neighborhood Initiatives Program (NIP). This assists more than 60 neighborhood associations in Santa Ana by providing a conduit for two- way communication between residents and the City. Grant funding is administered to increase housing availability and accessibility to residents to encourage greater participation in homeownership. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable. City Council 22 — 68 51412021 EXHIBIT 1 AP-65 Homeless and Other Special Needs Activities — 91.220(i) Introduction The needs of individuals experiencing homelessness and persons with special needs are complex and require a wide range of specialized services. Numerous agencies are typically involved in the care of these individuals, providing distinct services such as housing, mental health counseling, employment training, and case management services. A number of activities and services are funded to help the needs of individuals experiencing homelessness and other special needs populations. Overall, these services address the high priority of reducing homelessness and the threat of becoming homeless, as well as providing necessary supportive services. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs Through this Action Plan, the City of Santa Ana will continue to prioritize support and assistance to homeless persons and those at imminent risk of becoring homeless. Through HUD and non -HUD resources, the City will continue to, 1. Prioritize street outreach through Quality of Life Tcams 2. Preserve existing and increase the supply of permanent supportive housing 3. Preserve existing and increase the supply of affordable housing 4. Provide housing services and assistance to special needs populations 5. Improve critical services to low-income and special needs populations 6. Coordinate services within the City as well as regionally in collaboration with the Continuum of Care 7. Collaborate with all communities in Orange County to address homelessness with coordinated, regional approaches Addressing the emergency shelter and transitional housing needs of homeless persons The County of Orange operates a year-round emergency shelter in the Civic Center of Santa Ana that provides safe sleep and emergency shelter for over 400 individuals each night, and food and supportive services for over 600 individuals on a daily basis. The ESG funded HEART outreach team, City Net and Illumination Foundation organizations provide outreach and engagement services in and around the shelter as well as other locations in the City. The County also runs an emergency cold -weather shelter City Council 22 — 69 51412021 EXHIBIT 1 in Santa Ana during the winter for approximately 200 individuals. In addition to these shelters, the one year actions will address the needs of individuals who are homeless that includes unaccompanied women, victims of domestic violence, chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth. The range of services include emergency shelter, transitional housing and permanent supportive housing. EGG funds will provide assistance for street outreach services, homeless prevention and rapid re -housing. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing Individuals and families who were recently homeless from becoming homeless again The City supports a number of programs to assist low-income individuals and families to avoid becoming homeless, including Section 8 Housing Choice vouchers. Other support services, such as job and training assistance, food assistance, and counseling are also available to help individuals recover from homelessness and to avoid becoming homeless. The City works closely with the Continuum of Care who provides oversight for the Vulnerability Index - Service Prioritization Decision Assistance Tool (VI- SPDAT) to prioritize the most vulnerable chronically homeless individuals. Case management services are offered in all programs to help prevent individuals from falling back into homelessness. In addition, the Housing Authority of the City of Santa Ana has recently been awarded VASH project -based vouchers for permanent supportive housing for Veterans experiencing homelessness. These 100 vouchers are in addition to the current Vouchers with two projects already in the pipeline. An RFP will be released shortly for these additional vouchers. Helping low-income individuals and families avoid becoming homeless, especially extremely low- income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The goals listed above will help these individuals and families to avoid becoming homelessness. The ESG program will fund homelessness prevention programs including utility and security deposit assistance as well as rental assistance. The HEART program, funded by EGG provides bus tickets for individuals interested in returning to their home, often following a release from a correctional facility. Additionally, the County of Orange is equipped to serve people discharged from publicly funded institutions or systems of care such as health care facilities or correction programs City Council 22 — 70 51412021 EXHIBIT 1 AP-75 Barriers to affordable housing — 91.2200) Introduction The City evaluated barriers and constraints to the development of affordable housing as a critical component of the Housing Element. The California Department of Housing and Community has certified Santa Ana's Housing Element. In addition, the City of Santa Ana is currently updating its Analysis of Impediments to Fair Housing Choice to ensure the City is affirmatively furthering fair housing for all residents of Santa Ana. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Santa Ana will continue to actively fund the development and preservation of affordable housing as well as identify opportunities to leverage and utilize additional state, local, or non -governmental funding resources to develop and preserve additional housing throughout the City. Through the City's compliance with Ala 1486 (Surplus Lands Act) as well as a constant monitoring of state land made available through Executive Order N-06-19, the City will look to identify potential parcels of underutilized land that can be leveraged for potential affordable housing development. Santa Ana participated in an update to the County's Regional Analysis of Impediments to Fair Housing Choice for the period of 2020 — 2024 in the spring of 2020. Through this process, the City has identified a set of city -specific and regional goals and approaches to address barriers to affordable housing and affirmatively further fair housing in the City. The City will continue to work to meeting the goals and objectives set forth in the Analysis of Impediments update. City Council 22 — 71 51412021 EXHIBIT 1 AP-05 Other Actions — 91.220(k) Introduction The City of Santa Ana will undertake a range of activities targeted to address the needs of the City's low - and moderate -income and underserved individuals and households. Underserved individuals includes elderly, persons with a disability, youth, homeless, veterans, victims of domestic violence, and extremely low-income households. The City will continue to prioritize a holistic and targeted approach to address homelessness in the City through dedicated City staff, the continued use of Quality of Life Teams, and a close partnership with local and regional organizations and stakeholders. Actions planned to address obstacles to meeting underserved needs To effectively address the obstacles to meeting the needs of underserved individuals, the City will work closely with its network of local and regional partners and nonprofits to continually identify the most pressing needs and barriers to effectively delivering public services, housing and other programs. Building off this input, the City will prioritize public and social service programs that most align with the needs of these populations. The City will rely on its partners to assist in communication and messaging to ensure that underserved households are able to access and utilize these programs and services. Actions planned to foster and maintain affordable housing To foster and maintain affordable housing in the City, Santa Ana will focus on programs and activities that support the development and preservation of affordable housing activities. Wherever possible, the City will work to leverage additional resources (including other federal, state, and local resources) to more effectively and efficiently foster and maintain affordable housing. Activities include: Construction of new rental and homeownership units Rehabilitation and/ or preservation of existing rental units Homeowner rehabilitation programs for low- and moderate -income households Actions planned to reduce lead -based paint hazards To address and reduce the problems caused by exposure to lead -based paint, the City has implemented a lad paint hazard identification and notification process as part of its housing programs. This process been designed to comply with HUD's lead -based paint hazard regulations (Title X) which became effective in September 2000 and was implemented in Santa Ana in January 2002. All owner -occupied housing units rehabilitated or constructed prior to 1979 are inspected for lead -based paint hazards. If the inspection finds potential lead -based paint hazards, the subject property is tested — the average cost per test is $450. The procedures to comply with Title X has added approximately 30 days to the typical housing rehabilitation project. City Council 22 — 72 5/4/2021 EXHIBIT 1 Actions planned to reduce the number of poverty -level families The underlying objective of this Consolidated Plan is focused on reducing the number of families and households in poverty and lessening the impact of poverty on those households. The City will take a multi -faceted approach to reduce the number of poverty -level families located within the City and improve the quality of life for extremely low-income households in the City. 1. Partner with and leverage local job training programs focused on supporting residents prepare for and access living wage job opportunities. 2. Through the City's housing programs, it will reduce the number of cost burdened households living in the City, allowing them to allocate personal resources to other critical household needs. 3. Public services will be targeted to address critical needs of low-income and vulnerable residents through the provision of programming, transportation, education, childcare and other key needs that are identified by the City and its stakeholders. Services such as these are components to assist individuals to be better suited to secure and retain living wage employment. 4. Homeless assistance, including prevention, will provide critical services to extremely low-income households in need of immediate assistance and support to be better suited and able to take steps to identify sustainable housing and employment options. 5. Improving public facilities eliminates existing facilities and infrastructure that negatively impacts residential neighborhoods. Actions planned to develop institutional structure To continue to develop the institutional structure among the City, nonprofit stakeholders and other local and regional stakeholders, the City will regularly communicate and coordinate program objectives, services and activities with all stakeholders. The City will work to expand the coordination and communication among partners through invitations to participate in the Consolidated and Action Plan process as well as working to create synergies and partnerships between different service providers during the implementation of programs and activities. Actions planned to enhance coordination between public and private housing and social service agencies Through the ESG program, the City will continue to partner closely with neighboring jurisdictions as well as service and housing providers operating in the City and County. The City will continue to strive to encourage a unified approach to the development and delivery of housing and social service programs to effectively address the needs of homeless and extremely low-income households in the community. In the coming year, the City will continue to build off these successes to integrate additional service and housing providers into this coordinated partnership. City Council 22 — 73 51412021 EXHIBIT 1 Program Specific Requirements AP-90 Program Specific Requirements — 91.220(1)(1,2,4) Introduction In the implementation of programs and activities under the 2021 Annual Action Plan, the City of Santa Ana will follow all HUD regulations concerning the program elements of the CDBG, HOME, and ESG programs. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried. 1. The total amount of prograrn income that will have been received before 130,566 the start of the next program year and that has not yet been reprogrammed 2. The amount of proceeds from section 108 loan guarantees that will be 0 used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant Tunds returned to the line of credit for which the $482.213 planned use has not been included in a prior statement or plan. 5. The amount of income from float -funded activities Total Program Income 612,779 Other CDBG Requirements 1. The amount of urgent need activities 1 0% City Council 22 — 74 5/4/2021 EXHIBIT 1 HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(1)(2) 1. A description of other fvrrns of investrrierrt being used beyond thane identified in Section 92.205 is as follows: The City of Santa Ana does not use HOME funds in any other manner other than those described in Section 92.205(b). 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: The City incorporates a recapture requirement into written agreements and long-term affordability covenants for homebuyer assistance activities administered by the City as required by 24 CFR 92.254. For any homebuyer assistance activity implemented by subrecipients or CHDOs, this recapture requirement shall also be used. HOME affordability requirements are imposed based on the amount of direct HOME subsidy pursuant to HUD regulations as follows: Assistance under $15,000: 5-year affordability period Assistance between $15,000 - $40,000. 10-year affordability period Assistance over $40,000: 15-year affordability period The amount subject to recapture is the direct HOME subsidy received by the homebuyer. Direct HOME subsidy includes the HOME investment that enabled the homebuyer to purchase the property. This includes down payment assistance, closing costs, or other HOME assistance provided directly to the homebuyer and/or the difference between the fair market value of the property (as determined by appraisal) and a reduced sales price attributable to HOME development assistance. The recapture provision ensures that the entire amount or the City's direct HOME subsidy to homebuyers is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability (e.g., the home is sold, the home is foreclosed, the assisted owner is no longer residing in the assisted residence, or for any other breach of the agreement with the City). The HOME -assisted homebuyer may sell their unit at any time during the period of affordability, to any willing buyer, and at the price the market will bear. The recapture provision requires that the City's direct HOME subsidy and any interest due under the HOME loan (that has not previously been repaid) is returned to the City from net proceeds first, subject to the limitation that if there are no net proceeds or the net proceeds are insufficient to repay the HOME investment due, the City may only recapture the net proceeds, if any. Net proceeds are defined as the sales price minus superior loan repayrrrent (other than HOME funds), and any closing costs. In the event of a mortgage default, a provision in the written agreement and long-term affordability covenant stipulates that the City has the right of first refusal before foreclosure and may use City Council 22 — 75 5f4/2021 EXHIBIT 1 additional HOME funds or other resources to acquire the housing in order to preserve the housing's affordability. Recaptured funds may be used for any HOME eligible activity. These recaptured funds are identified in the City's accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before any additional HOME funds. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows. See above. 4. Plans for using HOME funds to refinance existing debt secured by rnultifandly housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: N/A — the City will not be using HOME funds for this activity. If the City elects to refinance existing debt, it will provide its policies and procedures as par[ of an amendment to its Action Plan. Emergency Solutions Grant (ESG) Reference 91.220(1)(4) Include written standards for providing ESG assistance (may include as attachment) ESG funds will be used for eligible activities under five program components. street outreach, emergency shelter, homelessness prevention, rapid re -housing assistance, and Homeless Management Information System (HMIS) costs, as well as allowable administrative costs and activities. ESG applications go through an open and transparent proposal process. The Community Development Agency is responsible for ensuring that the CSG program is implemented in accordance with all Federal rules and regulations. 2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system. Orange County, in collaboration with the CoC and other ESG entitlement jurisdictions including the City of Santa Ana will utilize assessment and evaluation instruments developed in consultation with the HIMIS lead agency and previously funded HPRP granlees. The County ensures ongoing coordination of program design and eligibly standards. The City will provide funding for the administration of the HMIS data entry system. 3. Identify the process for making sub -awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith -based organizations). On November 7, 2019, the City of Anaheim released a combined ESG Request for Proposals (RFP) in partnership with the City of Santa Ana and City of Garden Grove to support the Orange County Continuum of Care's goal to end homelessness. This RFP was marketed to nonprofit organizations (including community and faith -based organizations) operating throughout Orange County. To minimize duplication of effort in the application process, Garden Grove accepted applications until December 10, 2019, with supplemental applications and requirements for both Santa Ana and Anaheim. The RFP included four possible one-year renewals. Should the OC Collaborative determine to exercise these annual renewals past the end of FY 20-21, an RFP will not be released. Current subrecipients awarded funding in FY 20-21 will be required to submit a new budget and program summary. New forms and information will be provided by the Collaborative at that time. In addition, the Collaborative reserves the right to redistribute funding City Council 22 — 76 5/4/2021 EXHIBIT 1 and/or issue a new RFP at its discretion 4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify ils plan for reaching out to and consulting will) homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG. The City consults and works with the County and CoC homeless services staff as well as local homeless service providers, advocacy groups, facilities and other stakeholders in determining its strategic approach, policies and funding decisions. A previously homeless individual participated on the ESG funding review panel. Individuals who were previously homeless provide assistance in outreach and engagement services and provide feedback to Staff. In addition, the CoC's strategy reflects the participation of all 34 cities in Orange County as well as individuals who are homeless or previously homeless, schools, and a host of other organizations and stakeholders. 5. Describe performance standards for evaluating ESG. The City utilizes the HUD Monitoring ESG handbook to monitor each program's performance to ensure that goals are on track and funds are used for eligible activities. On a quarterly basis, invoices are reviewed to ensure program compliance. In addition, the quarterly financial invoices are monitored by City Accounting staff. On -site monitoring of non-profit organizations is done by staff and by consultants for both program and financial records on an as -needed basis, or at least every three years. The City works closely with the CoC and other ESG jurisdictions in the County to standardize processes and approaches as much as possible. City Council 22 — 77 514/2021 2 PROGRAM RECOMMENDED FY 21-22 ADMINISTRATION & PLANNING $ 1,111,744.00 Administration and Planning $ 1,051,744.00 Fair Housing $ 60,000.00 CODE ENFORCEMENT $ 800,000.00 Community Preservation Code Enforcement $ 775,000.00 Community Preservation Legal Services $ 25,000.00 NONPROFIT PUBLIC SERVICES $ 825,173.00 AIDS Services Fdn OC dba Radiant Health Centers $ 30,000.00 America on Track $ 40,000.00 Boys & Girls Club of Santa Ana $ 37,500.00 Community Action Partnership of Orange County $ 30,000.00 Community Health Initiative Orange County $ 30,000 00 Community Legal Aid Socal (Domestic Violence Prevention Project) $ 37,500 00 Delhi Center/PLC (Family Economic Success Initiative) $ 55,000,00 Delhi Center (Teens Engaged in Learning and Leadership) $ 37,500.00 Girls Inc of Orange County (Literacy Lab) $ 38,750.00 Human Options $ 30,000.00 Lutheran Social Services of So Cal. $ 30,000 00 Nati's House (dba Neutral Ground) SNL $ 30,000.00 Nati s House (dba Neutral Ground) Gang Prevention $ 30,000.00 OC Children's Therapeutic Arts Center (CARR) $ 40,000.00 OC Children's Therapeutic Arts Center (Willard) $ 40,000.00 Public Law Center (Housing) $ 40,000.00 Pure Game $ 30,000.00 Relampago del Cielo $ 57,325.00 Taller San Jose Hope Builders $ 30,000.00 The Cambodian Family $ 34,09&00 Women's Journey Foundation $ 57,500.00 Young Men's Christian Association of Orange County $ 40,000.00 CITY CAPITAL IMPROVEMENTS $ 2,954,582.00 PWA - ADA Curb Ramp Improvements $ 554,582.00 PWA - Residential street Imp. Heninger Neighborhood $ 1,100,000.00 PWA - Active Transportation Safety Imp $ 300,000.00 PWA - Sidewalk Improvements $ 400,000.00 PRCSA - Santa Anita Park Imp Phase II $ 600,000.00 HOUSING $ 480,000.00 Single Family Rehab -City $ 480,D00.00 Multi Family Rehab Homebuyer Down Payment Assistance $ V,,41MR99.00 TOTALity Council 22 — 78 $ (y) m x w ro � E E m d m Cm. a C E d - c ri LL - G G W O o m g n w p c O O C O N U 2 ` U .� d rn E m c car o o �— g m O rn ,o m m� m Cl, E "� c a.rn c c E E E m E m o--E_ Ems, m q, to m E p ro m L U L C 5 0 d c c E m m E p ul N C CD w �" o O- w rn p _ Q_w U 4 Q to C Q m E C 1 o c c H V a m QU H QU Li L Ili L J O O E 0) Z Z C C Q U U E E U V II U m; 1O co o E o �� LL P11 U U D Q U== O m E mC m C E ¢ Q''`-' m ai E� EL B II 4 4 C U¢ u]=WUW m O 14 o C N � d c � c a> U U C L m p - Q 413 a y N m C O O Q O U `E it Y U m a ~ 3 3 c O O O N d •> fn G Q ol O 4 m `m d "I y U Q � c — 4�g m c 2 L Q C E £t � EIJ_ U N ) o o m _ L G O G H ca cm C V � d lt7 O to Z C P m ¢ U •� Y a N N O @ m a � U d in d v.• w is Pil .... 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EXECUTIVE SUMMARY Prevention of detrimental impacts to residents, the public interest, health, safety and welfare requires the immediate enactment of this ordinance. The absence of this Urgency Ordinance will create a serious threat to the orderly and effective implementation of any code amendments, General Plan amendments, or specific plan amendments which may be adopted by the City; light processing facilities permitted by -right may be in conflict with or frustrate other provisions of the SAMC intended to guarantee or preserve the public peace, health, or safety. The proposed Urgency Ordinance would amend Section 41-472 of the SAMC to remove light processing facilities as a use permitted by right in the Light Industrial (M-1). The Urgency Ordinance would also amend Section 41-472.5 of the SAMC to add light processing facilities as a conditionally -permitted use in the same zoning district, thereby allowing the Planning Commission and City Council to approve, conditionally approve, or deny applications for such facilities. DISCUSSION On January 19, 1988, the City Council adopted Ordinance NS-1946, adding Article XIV to Chapter 41 of the Santa Ana Municipal Code (SAMC) to regulate recycling facilities. The ordinance created a regulatory framework to define, allow, and regulate recycling facilities and related uses in Santa Ana, including recycling facilities, collection facilities, and processing facilities. A subsequent ordinance, Ordinance NS-2333, was adopted on October 6, 1997 to update and bring the City's existing recycling facilities ordinance into conformance with State laws in place at the Lime. City Council 23 — 1 5/4/2021 ZOA No. 2021-01 — Light Processing (Recycling) Facilities Urgency Ordinance May 4, 2021 Page 2 Recycling uses range from smaller drop-off (collection) facilities and reverse vending machines at the various commercial centers throughout Santa Ana, to processing facilities where recyclable materials are bailed, compacted, flattened, grinded and crushed, sorted, shredded, cleaned, and remanufactured. These more complex operations are defined as processing facilities, further broken down into two categories: Light and Heavy, and are permitted in Santa Ana's Industrial (M-1 and M-2) zoning districts. Processing facilities are defined in SAMC Section 41-1250 (d). As defined in the SAMC, a processing facility is a building or enclosed space used for the collection and processing of recyclable materials. Processing includes the preparation of material for efficient shipment, or to an end -user's specifications, by such means as baling, briquetting, compacting, flattening, grinding, crushing, mechanical sorting, shredding, cleaning, and remanufacturing. Pursuant to the SAMC, a light processing facility occupies an area of under forty-five thousand (45,000) square feet of gross collection, processing and storage area and has up to an average of two (2) outboard truck shipments per day. Light processing facilities are limited to baling, briquetting, crushing, compacting, grinding, shredding and sorting of source -separated recyclable materials and repairing of reusable materials sufficient to quality as a certified processing facility. Light processing facilities may not shred, compact, or bale ferrous metals other than food and beverage containers. Further, the SAMC states that a heavy processing facility is any processing facility other than a light processing facility. As presently written, the SAMC requires a CUP for heavy processing facilities, which are only permitted in the Heavy Industrial (M-2) zoning district. Section 41-1255 of the SAMC contains operational standards for all processing facilities, whether light or heavy, one of which is that such facilities may not abut a property zoned or used for residential purpose. However, due to the City's age, development patterns, and past zoning practices, there exists multiple areas of the City where Industrial (M-1 and M-2) zoning districts directly abut residentially -zoned or used properties, including in the Delhi, Logan, Cornerstone Village, Lacy, French Park, Artesia Filar, Casa Bonita, and other residential properties near Harbor Mixed -Use Transit Corridor Specific Plan (SP-2), Santa Anita, and Mar -Les neighborhoods that are not part of an established neighborhood association. In these areas and under the current SAMC regulations, a light processing facility may operate just one property away from a residential land use, without any CUP requirement. The absence of a CUP requirement does not allow the City to evaluate each submitted application for consistency with surrounding properties and neighborhoods, as well as the General Plan, to therefore recommend approval or denial of such applications subject to a discretionary review process. Moreover, the current by -right review prevents the Planning Commission and City Council from imposing conditions of approval to ensure compatible and unimpactful operations of such facilities with surrounding properties and neighborhoods. Operations typical of light processing facilities, which include preparation of material for efficient shipment, or to an end -user's specifications, by such means as baling, City Council 23 — 2 5/4/2021 ZOA No. 2021-01 — Light Processing (Recycling) Facilities Urgency Ordinance May 4, 2021 Page 3 briquetting, compacting, flattening, grinding, crushing, mechanical sorting, shredding, cleaning, and re manufacturing, are known to have detrimental effects on surrounding properties due to the noise, odor, vibration, vermin infestation, visual, and traffic impacts caused by inbound and outbound truck movements to and from such facilities. The absence of a CUP requirement for such facilities severely circumscribes the City's ability, through its administrative review process, to impose conditions on such operations that would otherwise protect the health, welfare, and safety of residents and visitors to properties abutting or in the vicinity of light processing facilities. There currently exist 12 light processing facilities in the City. Of these, six are located in the Light Industrial (M-1) zoning district and five are operating without a Conditional Use Permit. Out of the 12 light processing facilities, 11 are within 1,000 feet of property zoned or used for residential purposes. The proposed SAMC amendment would ensure continued consistency of the Zoning Code's regulations with SAMC Section 41-1, which articulates the purpose of the City's Zoning Code. The absence of a Conditional Use Permit requirement for light processing facilities is inconsistent with the goals expressed by SAMC Section 41-1 in that discretion by the Planning Commission and City Council may not be exercised to ensure that the location and operation of such facilities are compatible with the scale, character, and nature of surrounding properties and neighborhoods as specified in SAMC Sections 41-1 (a), (b), (e), and (f). Specifically, these include goals to encourage the most appropriate use of land; conserve and stabilize property value; lessen congestion on streets and highways, and; promote the health, safety and the general welfare of the people, all as part of the Santa Ana General Plan. Urgency Ordinance Pursuant to Charter Section 415 of the Santa Ana Municipal Code and California Government Code Section 65858, the City Council is authorized to adopt an interim (urgency) ordinance, without following the procedures otherwise required for the adoption of an ordinance. The ordinance will protect the public safety, health, and welfare, prohibiting a use that has been determined to be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City Council, Planning Commission or the Planning Division is considering or studying or intends to study within a reasonable time. Concurrent with this effort, the Planning Division is preparing a permanent ordinance that will require Planning Commission review before consideration by the City Council. Upon adoption, that ordinance would become effective 30 days after the City Council's second reading. ENVIRONMENTAL IMPACT Pursuant to the California Environmental Quality Act ("CEQA") and the state CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on City Council 23 — 3 5/4/2021 ZOA No. 2021-01 — Light Processing (Recycling) Facilities Urgency Ordinance May 4, 2021 Page 4 the environment. As a result, a Notice of Exemption will be filed Upon adoption of this ordinance. FISCAL IMPACT There is no direct fiscal impact associated with this action. However, adoption of this Ordinance would result in a CUP application requirement for light processing facilities. The current CUP application review fee is $6,150.89. 1. Urgency Ordinance 2. Map of Processing Facilities Operating in Santa Ana with Zoning Districts Indicated Submitted By: Minh Thai, Executive Director Approved By: Kristine Ridge, City Manager City Council 23 — 4 5/4/2021 jmf 4-28-21 ORDINANCE NO. NS-XXX AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 41-472 AND 41-472.5 OF THE SANTA ANA MUNICIPAL CODE TO REQUIRE A CONDITIONAL USE PERMIT FOR PROCESSING FACILITIES AS DEFINED IN SANTA ANA MUNICIPAL CODE SECTION 41-1250 THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows. A. On January 19, 1988, the City Council adopted Ordinance NS-1946, adding Article XIV to Chapter 41 of the Santa Ana Municipal Code (SAMC) to regulate recycling facilities. B. Ordinance NS-1946 established definitions, zoning, regulations, and operational standards for a variety of recycling -related uses, including recycling facilities, collection facilities, and processing facilities. C. On October 6, 1997, the City Council adopted Ordinance NS-2333, amending various sections of the SAMC regarding recycling regulations to update and bring the City's existing recycling facilities ordinance into conformance with State laws in place at the time. Ordinance NS-2333 remains in full effect. D. Pursuant to SAMC Section 41-1250 (d), a Processing Facility is a building or enclosed space used for the collection and processing of recyclable materials. Processing means the preparation of material for efficient shipment, or to an end - user's specifications, by such means as baling, briquetting, compacting, flattening, grinding, crushing, mechanical sorting, shredding, cleaning, and rem an ufactu ring. Such facilities are distinguished between Light Processing Facilities or Heavy Processing Facilities, as defined in SAMC Sections 41-1250 (d) (1) and 41-1250 (d) (2), respectively. E. A Light Processing Facility is permitted as a use in the Light Industrial (M- 1) and Heavy Industrial (M-2) zoning districts pursuant to Sections 41-472 (y) (3) and 41-489 of the SAMC, respectively, without the need for a conditional use permit. F. SAMC Section 41-1 (Purpose) articulates the purpose and intent of the City's Zoning Code, that because of the necessity of segregating the location of Ordinance No. NS-XXX Page 1 of 8 City Council 23 — 5 5/4/2021 jmf 4-28-21 residences, businesses, trades and industries; and regulating the use of buildings, structures, and land, and regulating the location, height, bulk, and size of buildings and structures, the size of yards and other open spaces; the city is divided into land - use districts of such number, shape and area as may be considered best suited to carry out these regulations and provide for their enforcement. The City's zoning regulations are considered necessary in order to: (a) encourage the most appropriate use of land: (b) conserve and stabilize property value, (c) provide adequate open spaces for light and air and to prevent and fight fires; (d) prevent the undue concentration of population, (e) lessen congestion on streets and highways, and (f) promote the health, safety and the general welfare of the people, all as part of the General Plan of the City. G. The absence of a Conditional Use Permit requirement for Light Processing Facilities is inconsistent with the goals expressed by SAMC Section 41-1 (Purpose) in that discretion by the Planning Commission and City Council cannot be exercised to ensure that the location and operation of such facilities are compatible with the scale, character, and nature of surrounding properties and neighborhoods as specified in SAMC Sections 41-1 (a), (b), (e), and (f). H. Heavy Processing Facilities are currently required to obtain approval of a Conditional Use Permit and are only permitted in the City's Heavy Industrial (M-2) zoning district, pursuant to SAMC Section 41-489.5. I. Due to the City's age, development patterns, and past zoning practices, there exist multiple areas of the City where Industrial (M-1 and M-2) zoning districts directly abut residentially -zoned or used properties, including in the Delhi, Logan, Cornerstone Village, Lacy, French Park, Artesia Filar, Casa Bonita, and other residential areas near Harbor Mixed -Use Transit Corridor Specific Plan (SP-2), and also the Santa Anita and Mar -Les neighborhoods that are not part of an established Neighborhood Association. J. There currently exist 12 Light Processing Facilities in the City. Of these, six are located in the Light Industrial (M-1) zoning district, five of which are operating without a Conditional Use Permit. Out of the 12 light processing facilities, 11 are within 1,000 feet of property zoned or used for residential purposes. K. Due to the nature of their operations, Light Processing Facilities often operate in outdoor settings, creating dust, noise, odor, and negative aesthetic impacts on surrounding properties and neighborhoods that generate calls for code enforcement and police services. Since 2010, the Code Enforcement Division has received and reviewed 48 complaints for such facilities. The nature of these complaints includes unpermitted storage and construction; sanitation, health, or safety concerns, operating beyond approved operations or operating standards specified by the SAMC; outdoor business activity; debris, trash, and litter; graffiti; homeless encampments; and unpermitted or excess signage. Ordinance No. NS-XXX Pagc 2 of 8 City Council 23 — 6 5/4/2021 jmf 4-28-21 L. The amendments proposed by this Urgency Ordinance are consistent with numerous Goals and Policies of the existing General Plan. These include. 1. Land Use Element: Goals 1 (Promote a balance of land uses to address basic community needs), 3 (Preserve and improve the character and integrity of neighborhoods), and 5 (Ensure that the impacts of development are mitigated); 2. Noise Element: Goal 1 (Prevent significant increases in noise levels in the community and minimize the adverse effects of currently -existing noise sources); 3. Public Safety Element. Goal 1 (Preserve a safe and secure environment for all Santa Aria residents and workers); and 4. Urban Design Element: Goals 1 (Improve the physical appearance of the City through development of districts that project a sense of place, positive community image, and quality environment) and 2 (Improve the physical appearance of districts through development that is proportional and aesthetically related to its district setting). M. The City is in the process of comprehensively updating its General Plan. Proposed new or updated Elements of the General Plan include Community, Economic Prosperity, Noise, Safety, Land Use, and Urban Design. These proposed new or updated Elements contain draft policies that have been identified and thoroughly reviewed by members of the Santa Ana community through surveys, workshops, meetings, and public hearings. These draft policies are intended to improve and maintain a high quality of life for residents, businesses, and visitors of Santa Ana and address deleterious land uses such as Processing Facilities, both Light and Heavy, in the City. N. If Light Processing Facilities remain a use permitted in the Industrial (M-1 and M-2) zoning districts without a conditional use permit, they will pose a serious threat to the public interest, health, safety and welfare for the following reasons. 1. Such uses may continue to locate in the City's Industrial zoning (M-1 and M- 2) districts without appropriate and thorough review by the City's Planning Commission and City Council. Such uses would remain subject to the City's administrative review process for administrative development projects, pursuant to Article V, Division 3 of Chapter 41 of the SAMC. This administrative review process ensures consistency with adopted development standards and design guidelines, but (1) does not allow the City to evaluate each submitted application for consistency with surrounding properties and neighborhoods, as well as the General Plan, and to therefore recommend approval or denial of such applications subject to a discretionary review Ordinance No. NS-XXX Page 3 of 8 City Council 23 — 7 5/4/2021 jmf 4-28-21 process, and (2) prevents the Planning Commission and City Council from imposing conditions of approval to ensure compatible and harmonious operations of such facilities with surrounding properties and neighborhoods. 2. Operations typical of Light Processing Facilities, which include preparation of material for efficient shipment, or to an end -user's specifications, by such means as baling, briquetting, compacting, flattening, grinding, crushing, mechanical sorting, shredding, cleaning, and remanufacturing, are known to have detrimental effects on surrounding properties due to the noise, odor, vibration, vermin infestation, visual, and traffic impacts caused by inbound and outbound truck movements to and from such facilities. The absence of a Conditional Use Permit requirement for such facilities severely circumscribes the City's ability, through its administrative review process, to impose conditions on such operations that would otherwise protect the health, welfare, and safety of residents and visitors to properties abutting or in the vicinity of Light Processing Facilities. O. Prevention of detrimental impacts to residents, the public interest, health, safety and welfare requires the immediate enactment of this Urgency Ordinance. The absence of this Urgency Ordinance will create a serious threat to the orderly and effective implementation of any code amendments, General Plan amendments or specific plan amendments which may be adopted by the City. Light Processing Facilities permitted by -right may be in conflict with or frustrate other provisions of the SAMC intended to guarantee or preserve the public peace, health, or safety. Moreover, permitting such facilities without requiring a Conditional Use Permit would create impacts on the public health, safety and welfare that the City Council, in adopting this ordinance, has found to be unacceptable. P. The Request for Council Action for this ordinance dated May 4, 2021 and duly signed by the Executive Director of the Planning and Building Agency shall, by this reference, be incorporated herein, and together with this ordinance, any amendments or supplements, and oral testimony constitute the necessary findings for this ordinance. Q. The City Council finds, determines and declares that the current and immediate threat to the public health, safety and welfare of the city and its citizens necessitates the immediate enactment of the ordinance. The facts constituting such urgency are set forth in paragraphs A through O of this ordinance. R. The City Council of the City of Santa Ana intends that nothing in this article shall be deemed to conflict with State or Federal law, nor to otherwise permit any activity that is prohibited under the California Beverage Container Recycling & Litter Reduction Act or other applicable law. Ordinance No. NS-XXX Page 4 of 8 City Council 23 — 8 5/4/2021 jmf 4-28-21 Section 2. The City Council finds and determines that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment and it is not a "project', as defined in Section 15378 of the CEQA Guidelines. Section 3. Pursuant to Santa Ana City Charter Sections 415 and 417, this Ordinance is declared by the City Council to be necessary as an emergency measure to protect and preserve the health, safety and welfare of the citizens of the City of Santa Ana and will become effective immediately if passed by the affirmative votes of at least two-thirds (213) of the members of the City Council. Section 4. Section 41-472 of Article III, Division 18 of Chapter 41 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 41-472. - Uses permitted in the M1 district. The following uses are permitted in the M1 district: (a) The compounding, processing, or treatment of raw or previously treated materials into a finished or semi -finished product, excluding those uses specified in section 41-489.5. (b) The manufacture of products from raw or previously treated materials, excluding those uses specified in section 41-489.5. (c) The assembly of products from raw or previously treated materials, excluding those uses specified in section 41-489.5. (d) The packaging or distribution of previously prepared products or materials, excluding those uses specified in section 41-489.5. (e) Wholesale establishments where the primary trade is business to business sale of products, supplies, and equipment. (f) Storage of previously prepared goods, products or materials for eventual distribution or sales where the goods, products or materials are the property of the owner or operator of the building or structure. (g) Machine shop or other metal working shops. (h) Warehousing. (i) Impound yards (storage only) with no office or dispatching operations. (j) Laundry and dry cleaning establishments in conjunction with plant operation for such establishment on the premises. (k) Eating establishments not specified in section 41-472.5. (1) Research laboratories that do not generate hazardous waste materials. (m)Service stations with no more than two thousand (2,000) square feet of the gross floor area devoted to non -automotive related product sales. (n) Truck, boat and heavy equipment sales, rental, and service. (o) Movie, photography, musical or video production studios. Ordinance No. NS-XXX Page S of 8 City Council 23 — 9 5/4/2021 jmf 4-28-21 (p) Bulk products sales (twenty-five (25) cubic feet or greater) when such products are the primary sales activity. (q) Public utility structures. (r) Blueprinting, photoengraving, screen printing and other reproduction processes. (s) Wholesale nursery and plant storage. (t) Contractor's yard. (u) Automotive repair and service, including body and fender repair, painting, and engine replacement. (v) Home improvement warehouse store- (w) Sales of industrial products, supplies and equipment used for final product manufacture. (x) Lumberyard, including mill and sash work if conducted entirely within an enclosed building. (y) Recycling facilities not in excess of forty-five thousand (45,000) gross square feet and in compliance with section 41-1253 of this Code including: (1) Small collection facilities. (2) Large collection facilities. (3) Light p g facilities (z) Adult entertainment businesses, subject to compliance with the requirements of article XVII of this chapter. (aa) Storage and distribution of hazardous materials. (bb) Passenger transportation services. Section 5. Section 41-472.5 of Article III, Division 18 of Chapter 41 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 41-472.5. - Uses subject to a conditional use permit in the M1 district. The following uses may be permitted in the M1 district subject to the issuance of a conditional use permit: (a) Principal industrial uses if occupying less than seventy (70) per cent of the gross floor area with the remainder of the floor area allocated to office use only. (b) Storage of new or used buildings or houses. (c) Child care facilities other than as permitted by section 41-472.1. (d) Trade schools which provide instruction which requires the operation of heavy equipment or machinery normally associated with manufacturing operations such as woodworking or machine shops. (e) Kennels for the temporary care and lodging of dogs and other domeslicaled household animals- (f) Eating establishments permitted in section 41-472 which operate between 12-00 and 5-00 a.m. and which are within one hundred fifty (150) feet of a residential use. Ordinance No. NS-XXX Page 6 of 8 City Council 23 — 10 5/4/2021 jmf 4-28-21 (g) Eating establishments with drive -through window service. (h) Petroleum and gas storage. (i) Freight, bus and truck terminal. Q) Industrial medical clinics which offer medical services by referral only and do not offer overnight stays. (k) Administrative office use ancillary to a permitted industrial use occupying more than thirty (30) per cent of the gross floor area. (1) Light processing facilities and Heavy processing Feeyeling ases facilities. (m)Car wash facility. (n) Banquet facilities as an ancillary use to a restaurant or eating establishment, subject to development and operational standards set forth in section 41- 199.1. (o) Cornrnercial storage not within five hundred (500) feet of an arterial street (as defined in the city's circulation element) or freeway or within one thousand (1,000) feet of a freeway intersection. (p) Mini -warehouse uses; provided that no conditional use permit shall be granted unless a written finding is made that the parcel on which the use is proposed is not within five hundred (500) feet of an arterial street (as defined in the city's circulation element) or freeway, or within one thousand (1,000) feet of a freeway intersection. (q) Recreational vehicle, vehicle and/or boat storage yard, provided that no conditional use permit shall be granted unless a written finding is made that the parcel on which the use is proposed is: riot within five hundred (500) feet of an arterial street (as defined in the city's circulation element) or freeway, or within one thousand (1,000) feet of a freeway intersection. (r) Data center uses; provided that no conditional use permit shall be granted unless a written finding is made that the parcel on which the use is proposed is: not within five hundred (500) feet of an arterial street (as defined in the city's circulation element) or freeway, or within one thousand (1,000) feet of a freeway intersection. (s) Indoor sport facility, subject to development and operational standards set forth in section 41-482. Section 6. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Ordinance No. NS-XXX Page 7 of 8 City Council 23 — 11 5/4/2021 jmf 4-28-21 Section 7. The Clerk of the Council shall certify the adoption of this ordinance and shall cause the same to be published as required by law. ADOPTED this day of APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: �41- i n M. Funk Sr. Assistant City Attorney /i\'A:ffl Vicente Sarmienlo Mayor Council members: NOES: Council members: ABSTAIN: Council members: NOT PRESENT: Councilmembers: 2021. [�7�:irl�[�7_rr�i7y_�ir��r_�r[�7r,I_\r,IrZ�7:7[ell�►_\�lti'/ I, DAISY COMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No. NS-XXX Pagc 8 of 8 City Council 23 — 12 5/4/2021 II H AV A, 1 N p r a � _ I � m 2 L; F fO +y ML FADDEN AV 4 r ®T A"j Bi VFTAAV CLARA I AV Processing Fac L-,...RNAVEN All + ST ST Ma,'w r :r oeib f i I ities 0 'A 1 Miles City Council 23 — 13 / Processing Facilities Zoning Map 1 of 6 m O t v r, i f ( 5 Star Fibers and Recycling Inc 3230 W Westminster Av Schools MAI Parks Zoning Classification M1 - I ight Industrial O-OpenSpace R1 - Single -Family Residence R2 - Two -Family Residence SPX;it) OUAO3 2 ( / i 22 � WESTMINISTER AV ( r i i n I j 49 0 0 101, pJuIIVu0V1 1- QC1t n .' A&M Metals CO 2301 W Fifth St Schools Parks Zoning Classification C1 - Community Commercial C2 - General Commercial M1 - Light Industrial O - Open Space R1 - tiinglP-Family RPsidanre R2 - Two -Family Residence R3 - Multiple -Family Residence R4 - Suburban Apartment Processing Facilities Zoning Map 3 of 6 SA Recycling 2002 W Fifth St 49 pJVplllll�llll ,n iry Sr) 00j6(QQ IIY@Rdlopment l ,rig Ji�(e r Schools Parks Zoning Classification C2 - General Commercial C4 - Planned Shopping Center CS - ArLeridl Commerical CR - Commerical Residential M1 - I ight Industrial OpenSpace R1 - Single -Family Residence R2 - Two -Family Residence SD Qiji&G(bLm3Adlopmcnt Processing Facilities Zoning Map 4 of 6 Allan Co 2540 S Main St OC Recycling 3307 S Main St , I it Rli �pp ^r y7i2;'r1W„ramilVr<lAgf O<��Iryl�iTirditJW �'..' '� 'I 1 IiR��ViwV9W0.�1 r r tlj,�holkloiii���ldll�i��� �,n � ; i� ryry tl f1�I�f7JP` �� r � �j I Jill 9 , r �-`�rl.,�ll�f; �,'0/r ��viu :��imwmn,4Y,V4�� �, • 49 0 0 101, pJuIIVu0V1 n .' Processing Facilities Zoning Map 6 of 6 f llr�E/Q i � A F l ��� �imnr rn �I �� �rr�j OC Rec clin p III V , Jlli,ill, rsa Parks Schools Zoning Classification)t �V o Pii a iiV ui il�'�p� ,SFO Al - General A(Irindture CS - Arterial Commerical M1 - Light Industrial "�i i 0 250 1 00 0- Open Space SD01Il1IDdAdl5(41 o mcnt r�r1 9921 P fir ��_��s2021 Housing Authority https://www.santa-ana.org/cd Item # 2 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Quarterly Report for Housing Choice Voucher Program AGENDA TITLE: Receive and File the Quarterly Report for the Housing Choice Voucher Program for the Period of January 2021 to March 2021 RECOMMENDED ACTION Receive and file the Quarterly Report for the Housing Choice Voucher Program for the period of January 2021 to March 2021. DISCUSSION The January 2021 to March 2021 Quarterly Report for the Housing Choice Voucher (HCV) Program provides statistics for the day-to-day activities of the Santa Ana Housing Authority. The report is divided into three (3) sections: Applicants, Participants, and Production. Applicants The Santa Ana Housing Authority accepted applications from July 1, 2015 through July 30, 2015 and received a total of 16,375 applications. A random lottery procedure was applied and the Santa Ana Housing Authority accepted 5,000 of the 16,375 applications to establish a 2015 HCV Waiting List. Charts 1 and 2 depict the characteristics of those applicants currently on the Waiting List. As of March 2021 there are 2,352 applicants on the 2015 HCV Waiting List. Chart 1 illustrates the percentage of applicants on the 201b HCV Waiting List who live or work in Santa Ana. These applicants are given a preference on the waiting list together with U.S. military veterans. 1. Rnstdena Pruforence Work in anea Ans AM, IAna 80 A City Council 2-1 5/4/2021 Quarterly Report for the Housing Choice Voucher Program May 4, 2021 Page 2 Chart 2 illustrates the number of applicants by total household size. The majority of applicants on the1 waiting list consist of only one (1) or two (2) household members. Over half of all applicants (1,246 of the 2,352 applicants or 53%) have one (1) or two (2) member households and would qualify for a one -bedroom voucher. The Santa Ana Housing Authority's occupancy standard is one (1) bedroom for every two (2) family members. Participants L Household Size 100 5fn 3�tL )L CO j^ ql At the end of the reporting period, there were 2,715 S. Family Size households receiving rental assistance from the "°P" Housing Authority. Chart 3 illustrates participating families, sorted by number of family members. Over three -fourths (85 percent) of families receiving assistance have n three (3) or fewer members. Chart 4 illustrates the family type for program 4. Family Type participants. Over half (66 percent) of participating Den households have elderly and/or disabled members. « ("Other" consists of households that are non -elderly, n, , non -disabled, with no minor children.) ,,,,Iv����� Isar. �ffffiil City Council 2-2 5/4/2021 Quarterly Report for the Housing Choice Voucher Program May 4, 2021 Page 3 Chart 5 depicts participants by percentage of Orange County median income. As of March 2021, the County's median income is $102,450 per year for a family of four. Approximately 88 percent of families on the program earn less than 30 percent of the median income, which is $38,450 per year for a family of four (4). Participants' incomes come from a variety of sources, as illustrated in Chart 6. A total of 30 percent of participating families have income from employment. Participating families pay a portion of their monthly rent based upon their income and the payment standard for their unit. The Housing Authority pays the difference between the tenant's portion and the contract rent. This payment is the Housing Assistance Payment (HAP). The average HAP for January to March was $1,300. Production S. Income as Percentage of Median 11w ob MeiY�ai 6. Source of Income r.s1Ar pt M"oj I 1 `/. ,1, oar,; 94 PIYe(Ilbn r,�/. 64% en?5 nn?5 �o^k o% 2 4 A �� maaaaaaaoo WuthAny voh wy W,Ih any Wrh any wages Wel(.uo w/SS oWwr lrer ome HQS Inspections: 7. HQs Inspections At least once every two (2) years, the Housing Authority must inspect each 1'0 assisted unit to ensure it meets 79 89 ioo Housing Quality Standards (HOS) (HQS) in compliance with the federal '41 regulations. From January to March, a total of 285 inspections and re- Jail rcb Mir inspections of our assisted units were performed, of which 52 inspections failed. Chart 7 illustrates the number of inspections performed on a monthly basis during the reporting period. City Council 2-3 5/4/2021 Quarterly Report for the Housing Choice Voucher Program May 4, 2021 Page 4 Recertifications/Interims: Each year, the Housing Authority must re- certify every assisted family to verify the family is still eligible for assistance. In addition, when a participant's income changes, an interim examination must be performed. During the reporting period, a total of 782 recertifications and interims were conducted. Chart 8 illustrates the number of recertifications and interims performed- S . Re -exams and Interims srn IN Fa j M x J�P-P.AMS 1. IMF11111' Other Change of Unit: These actions are completed when a family moves to a different rental unit. Twenty-four change -of -unit actions were processed during the reporting period. New Admissions: This action is completed when a family is admitted to the HCV Program. Eighty-five new admissions were processed during the reporting period. End of Participation: This action is completed when the family is no longer interested in participating in the program, the family becomes deceased, the family is no longer eligible for the program, or the family is terminated from the program due to program violations. Twenty-three (23) end of participations were processed during the reported period. Expired Vouchers: This action is corpleted when an applicant is unable to locate a unit within the tirnefrarne of the voucher and all extensions have been exhausted or no extension is requested. There were two (2) expired vouchers processed during the reporting period. FISCAL IMPACT There is no fiscal impact associated with this action. Submitted By: Steven Mendoza, Assistant City Manager Approved By. Kristine Ridge, City Manager City Council 2-4 5/4/2021 Housing Authority https://www.santa-ana.org/cd Item # 3 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Agreement with Happy Software, LLC AGENDA TITLE: Approve an Agreement with Happy Software, LLC for Housing Authority Management Software RECOMMENDED ACTION Authorize the Executive Director of the Housing Authority to execute an agreement with Happy Software, LLC to provide housing authority management software services beginning June 1, 2021 and expiring May 31, 2024, for a total amount not to exceed $200,000 over a three-year period, subject to non -substantive changes approved by the Executive Director and Authority General Counsel. DISCUSSION On March 1, 2021, the Housing Authority issued a Request for Proposals (RFP # 21-031) for housing authority management software from professional public housing authority software providers to provide housing authority management software services for the Housing Choice Voucher Program (Exhibit 1). Responses to the RFP were accepted until Monday, March 22, 2021. The Housing Authority received three (3) proposals prior to the deadline. Staff then conducted a minimum threshold review of each submitted proposal to determine if all minimum program and RFP requirements were met by the proposal. Following the minimum threshold review, staff formed a Review Panel consisting of three (3) employees from the Housing Authority. The Review Panel used the Scoring and Selection Criteria from the RFP to make a determination on which firm to recommend to the Housing Authority Board for approval. The firms that submitted a proposal are: Software Provider Cost for Services per Year Happy Software, LLC $52,793 Em has s $42,502 PHA -Web $19,550 Following this RFP process, the Review Panel is recommending the Housing Authority to execute an agreement with Happy Software, LLC to provide housing authority management software services beginning June 1, 2021 and expiring May 31. 2024 City Council 3-1 5/4/2021 Agreement with Happy Software, LLC May 4, 2021 Page 2 (Exhibit 2). The total cost of the agreement over a three-year period is not to exceed $200,000. This will allow staff to request for technical assistance from Happy Software, such as customizations of the software or additional services for owners, tenants and applicants. Since June 2020, the Housing Authority has used the software provided by Happy Software, LLC for the administration of the Housing Choice Voucher Program. This software is essential to the operation of the Housing Authority and its obligation to electronically transfer data to the U.S. Department of Housing and Urban Development (HUD) on a regular basis and disburse millions of dollars in rental assistance funds every month. The software tracks all program information on thousands of applicants, participants, and owners served by the program, schedules and maintains records on all Housing Quality Standards inspections; performs income and payment calculations; and creates and transmits all HUD -required reports. In addition to the day-to-day use of the software, the annual license includes system upgrades, software updates, all pertinent user manuals, staff training, as well as the Housing Authority's applicant, owner and tenant on-line portals. Staff is not recommending approval of the two lower cost proposals for two reasons. First, staff have received an outstanding quality of service from Happy Software, LLC over the last year. The software has a user-friendly interface and staff have been very satisfied with their quality of service. It is a good product being used by hundreds of other housing authorities across the country. Second, there are large hidden costs not reflected in the other proposals for staff time and training to transition to a new housing management software. Specifically, the transition to a new software would entail at least a six-month process of training and cross -training fifteen Housing Authority employees. This includes a week-long training of all fifteen employees (40 hours x 15 employees) and two weeks of additional training and assistance for two supervisory -level employees (80 hours x 2 employees). The total number of staff hours required would be approximately 680 hours. This does not include unanticipated costs for assistance from our Information Technology Department and Finance and Management Services Agency staff. Therefore, although the proposal with Happy Software, LLC is higher than the other two proposals, staff values their high quality of service and wants to avoid the large hidden costs required on the backend to switch to a new software provider. FISCAL IMPACT Funding for the Happy Software, LLC agreement is available in the FY 2020-2021 Housing Authority Other Contractual Services account (no. 14018760-62300) and will be budgeted in future fiscal years for expenditure as shown in the table below: City Council 3-2 5/4/2021 Agreement with Happy Software, LLC May 4, 2021 Page 3 Fiscal Year Accounting Accounting Unit, Account Amount Unit -Account# Description FY 20-21 14018760 62300 Housing Authority -Vouchers ADM, $ 5,550 (June) Contract Services -Professional FY 21-22 14018760-62300 Housing Authority -Vouchers ADM, $ 66,700 (July -June) Contract Services -Professional FY 22-23 14018760-62300 Housing Authority -Vouchers ADM, $ 66.700 (July -June) Contract Services -Professional FY 23-24 14018760-62300 Housing Authority -Vouchers ADM, $ 61,050 (July -May) Contract Services -Professional Total Contract Amount $ 200,000 The above spending plan is only an estimate and subject to change. Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director— Finance and Management Services Agency EXHIBIT(S) 1. Request for Proposals for Housing Authority Software 2. Agreement with Happy Software, LLC Submitted By: Steven Mendoza, Assistant City Manager Approved By: Kristine Ridge, City Manager City Council 3-3 5/4/2021 EXHIBIT 1 REQUEST FOR PROPOSALS RFP # 21-031 HOUSING AUTHORITY MANAGEMENT SOFTWARE HOUSING AUTHORITY OF THE CITY OF SANTA ANA Community Development Agency 20 Civic Center Plaza Santa Ana, CA 92701 Judson Brown Housing Division Manager (714) 667-2241 Office (714) 667-2225 Fax ibrownCa�santa-ana.ora KEY RFP DATES Issue Date: Monday, March 1, 2021 Deadline to Submit Questions: Monday, March 8, 2021 at 5:00 P.M. Response Posted on City Websile: Monday, March 15, 2021 al 5:00 P.M. Proposal Due Date. Monday, March 22, 2021 at 3.00 P.M. ...................................................................................................................................................................................................................................................................................................................................... Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 1 EXHIBIT 1 NOTICE INVITING PROPOSALS NOTICE IS HEREBY GIVEN that proposals will be received from qualified firms to provide Housing Authority Management Software for the Housing Authority of the City of Santa Ana (CA093). Responses to this Request for Proposals (RFP) will be accepted until Monday March 22, 2021 at 3:00 P.M. If further information is required, please contact Judson Brown, Housing Division Manager, at (714) 667-2241 or ibrown no santa-ana.org. MAILED, DELIVERED BY HAND or COURIERED proposals will be accepted as follows: Housing Authority of the City of Santa Ana Community Development Agency (611' Floor) Attention: Judson Brown, Housing Division Manager 20 Civic Center Plaza, M-26 Santa Ana, CA 92701 It is the responsibility of the proposer to see that any proposals submitted shall have sufficient time to be received by the Housing Authority of the City of Santa Ana prior to the proposal due date and time. Questions regarding this Request for Proposals shall be made in writing via e-mail to Judson Brown at Jbrown (d),santa- anaaorg. The receiving time at the Front Desk of the City of Santa Ana, Community Development Agency, 6' Floor. 20 Civic Center Plaza, Santa Ana CA 92701 will be the governing time for the receipt of or000sals. Late Proposals will NOT be considered and will be returned to the proposer unopened. TELEGRAPHIC. ELECTRONIC AND FACSIMILE PROPOSALS WILL NOT BE ACCEPTED ONLY SEALED RFP RESPONSES ARE ACCEPTABLE DO NOT E-MAIL RFP RESPONSES DO NOT FAX RFP RESPONSES Housing Authority of the City of Santa Ana City Council Page 2 5/4/2021 EXHIBIT 1 HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE PAGE I. INTRODUCTION 4 II. PERIOD OF CONTRACT 4 III. SCOPE OF WORK / SERVICES 4 IV. GENERAL INFORMATION 5 V. CONTRACTOR RESPONSIBILITIES 5 VI. INSURANCE REQUIREMENTS AND CITY BUSINESS LICENSE 5 VII. RULES FOR PROPOSALS 6 VIIL E-MAIL COMMUNICATIONS AND INTERPRETATIONS / 6 CLARIFICATIONS IX. ADDENDA 6 X. SUBMITTAL INFORMATION AND DEADLINE 7 XI. MINIMUM QUALIFICATIONS 7 XII. SUBMITTAL REQUIREMENTS 7 XIII. CONTRACTOR SELECTION — PROPOSALS AND EVALUATION 8 XIV. PUBLIC RECORDS 9 XV. FILING A PROTEST 9 EXHIBIT A SCOPE OF SERVICES 11 EXHIBIT B PROPOSERS STATEMENT AND FEE SCHEDULE 14 EXHIBIT C ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL 15 GENERAL LIABILITY AND BUSINESS AUTOMOBILE POLICIES EXHIBIT D REFERENCES AND RELEVANT WORK HISTORY 16 EXHIBIT E PROPOSAL AND CONTRACT AGREEMENT — PROPOSERS 18 STATEMENT EXHIBIT F PROPOSAL AND CONTRACT AGREEMENT — CERTIFICATION 19 OF NONDISCRIMINATION BY CONTRACTOR EXHIBIT G NON -COLLUSION AFFIDAVIT 21 Housing Authority of the City of Santa Ana City Council Page 3 5/4/2021 EXHIBIT 1 HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE I. INTRODUCTION The Housing Authority of the City of Santa Ana (CA093) is issuing this Request for Proposals (RFP) for Housing Authority Management Software from professional public housing authority housing software providers to provide housing management software services. The scope of work may include any and all work efforts related to the housing software per EXHIBIT A — SCOPE OF SERVICES. II. PERIOD OF CONTRACT Unless earlier terminated as allowed for in the Agreement, agreement term shall be for a period of three 3 years for a maximum contract amount of $200,000. The agreement term is anticipated to commence after City Council / Housing Authority award of this agreement and upon receipt and approval of all required insurance documents. III. SCOPE OF WORK / SERVICES The scope of work may include any and all work efforts related to the Housing Management Software per EXHIBIT A— SCOPE OF SERVICES The Contractor shall be capable of providing experienced, knowledgeable and professional staff. The Contractor shall be responsive and maintain excellent working relationships with city residents, businesses, government officials and City staff. The Contractor shall provide adequate staffing levels at all times and adhere to established schedules. The Contractor shall be knowledgeable of and comply with federal, state and local regulations, including but not limited to, • The Contractor must be thoroughly familiar with the application areas specified and have an installed base of custorners currently using the proposed products. • The Contractor shall have the staff, technical and financial resources to reliably install and support the proposed system. • The Contractor shall thoroughly document its experience in the Housing Choice Voucher Program and financial software, as well as, the qualifications of staff who will be assigned to this project and its financial resources. Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 4 EXHIBIT 1 IV. GENERAL INFORMATION A. The term of the contract will begin after the contract is awarded by the City Council / Housing Authority and upon receipt and approval of all required insurance documents.. B. When determined appropriate, the Housing Authority will provide information in its possession relevant to preparation of required information in the RFP. The Housing Authority will provide only the staff assistance and documentation specifically referred to herein- C. The Contractor shall be responsible for retaining data, records and documentation for the preparation of the required information. These materials shall be made available to the Housing Authority as requested by the Housing Authority. D. This RFP does not commit the Housing Authority to pay costs incurred in preparation of a response to this RFP. All costs incurred in the preparation of the proposal, the submission of additional information and/or any aspect of a proposal prior to the award of a written contract will be borne by the respondent. The Housing Authority reserves the right to accept or reject the combined or separate components of a proposal in part of in its entirety or to waive any informality or technical defect in a proposal. E. All data, documents and other products used, developed or produced during response preparation of the RFP will become property of the Housing Authority. All responses to the RFP shall become property of the Housing Authority. Proposer information identified as proprietary inrormation shall be maintained confidential, to the extent allowed under the California Public Records Act. F. I he Housing Authority reserves the right to reject, replace and approve any and all subcontractors. All subcontractor(s) shall be identified in the response to the RFP and the Housing Authority reserves the right to reject any subcontractor(s). Subcontractor(s) shall be responsibility of the prime Contractor and the Housing Authority shall assume no liability of such subcontractor(s). V. CONTRACTOR RESPONSIBILITIES The selected Contractor will assume responsibilities for all services in its proposal. The selected Contractor shall identify a sole point of contact for contractual matters, including payment of any and all charges resulting from the Agreement. VI. INSURANCE REQUIREMENTS AND CITY BUSINESS LICENSE CGL (Commercial General Liability) — CGL insurance is required when the Contractor will be performing services on City property or receiving City grant funds. A $1,000,000.00 per occurrence with $2,000,000.00 in the aggregate policy is required. The certificate of insurance must provide 30 day notice of cancellation or material reduction in policy limits. Additionally, the City of Santa Ana, the Housing Authority of the City of Santa Ana, its officers, agents, volunteers and employees shall be named as an additional insured via an additional insured endorsement. The additional insured endorsement, attached as Exhibit C, shall provide that the Contractor's insurance is primary to any insurance or self-insurance carried by the City as well as a separation of insured's clause. Housing Authority of the City of Santa Ana City Council Page 5 5/4/2021 EXHIBIT 1 Automobile - Automobile insurance is required when the Contractor will be driving frorn one City site to another City site in a non -City vehicle. A $1,000,000.00 per occurrence policy for owned, hired and non -owned automobiles is required. Worker's Compensation — In accordance with the provisions of Section 3300 of the California Labor Code, any Contractor with employees must maintain employer's liability insurance with limits not less than $1,000,000.00 per accident. Worker's Compensation is not required for sole proprietors or a partnership with no employees. However, these Consultants must complete a "Worker's Compensation Declaration." This form may be obtained from City staff. Professional Liability— Professional liability insurance is required for state licensed professionals, such as, engineers, architects, CPAs, attorneys and medical professionals. A$1,000,000.00 policy is required. City Business License - The selected proposer shall be required to obtain a City of Santa Ana Business license within thirty (30) days of selection and must provide a copy to the City project manager or designee prior to commencing any work in Santa Ana. VII. RULES FOR PROPOSALS The signer of the RFP must declare in writing that the only person, persons, company or parties interested in the proposal as principals are named therein; that the proposal is rnade without collusion with any other person, persons, company or parties submitting a proposal; that it is in all respects fair and in good faith without collusion or fraud; and, that the signer of the proposal has full authority to bind the proposer (EXHIBIT H). Vill. E-MAIL COMMUNICATIONS AND INTERPRETATIONS / CLARIFICATIONS To facilitate the RFP process, proposers are required to monitor and respond to e-mail requests within 48 hours. The Housing Authority will make no oral interpretations to any proposer as to the meaning of requirements identified herein including the Scope of Services. Every request for such an interpretation must be made in writing via e-mail to Judson Brown, Housing Division Manager, no later than Monday, March 8, 2021 at 5:00 p.m. Significant interpretations or clarification will be made by an addendum to this RFP, which will be posted to the website. Addenda may become part of the agreement documents. IX. ADDENDA If clarification or interpretation of this RFP is considered necessary by the Housing Authority, a written addendum shall be issued and the information will be posted on the City's website at http://www.santa- ana.org/bids-rfos/. It is the responsibility of each proposer to periodically check the City's website to ensure that they have received and reviewed any and all addenda to this RFP. Housing Authority of the City of Santa Ana City Council Page 6 5/4/2021 EXHIBIT 1 X. SUBMITTAL INFORMATION AND DEADLINE Proposals are due to the Housing Authority of the City of Santa Ana, at the date, time and location set forth on the Notice Inviting Proposals. Faxed and E-mailed nronosals will not be accented. XI. MINIMUM QUALIFICATIONS The following are the minimum qualifications to be considered as an eligible candidate to submit proposals for the requested services described in this RFP. The Contractor must have previous experience in performing services similar to those requested in the Scope of Work. Contractor is encouraged to submit relevant and concise information regarding their experience and qualifications to perform the requested services. XII. SUBMITTAL REQUIREMENTS The RFP is intended to assess and evaluate each firm's capabilities as they apply to the proposed services. Each firm must address each of the following items in its response to the RFP: 1) Statement of Qualifications— In order to maintain uniformity, the Statement of Qualifications must be limited to a MAXIMUM OF 25 PAGES (excluding front and back covers). The page limitation includes all appendices, attachments and supplemental information. The following information is required: 1. Cover Letter: A letter signed by a principal or authorized representative who can make legally binding cominitrnetits for the entity. 2. Oroanizational Backoround: A brief description of the contractor's firm, including the year the firm was established, type of organization (partnership, corporation, etc.), and a statement of the firm's qualifications for performing the subject services. 3. Scope of Services: Include a detailed description of the components of housing management software proposed and the services to be provided to meet the requirements of Exhibit A. Identify any resources expected to be provided by the Housing Authority, including their roles and responsibilities. Provide a detailed project plan that includes activities, deliverables and a responsibility matrix. List the technical requirements for the system. 4. Firm or Personnel Experience: A profile of the firm's experience, personnel and history relating to the scope of work identified in Exhibit A — Scope of Services. Include a description of the company profile, including range of the firm's capabilities and service. In addition, provide the names of all personnel who will be assigned to this project, their education and previous experience. 5. Relevant Experience: List of housing management software services, which your firm or personnel have completed within the last five (5) years. Information should include project description, year completed, client name, along with a person to contact and their telephone number. 6. Sub consultants: Identification is required of any contemplated sub consultants to be used, with the identification of personnel to be assigned, their qualifications, education, and representative experience. 7. References. The Contractor shall submit a list of at least three references comprised of a listing of work similar to that identified in the RFP. 8. Fee Schedule: The fee schedule shall include the hourly rates for each personnel category to be used on the project and/or fee for each type of service. Personnel hourly rates shall reflect all costs for office Housing Authority of the City of Santa Ana City Council Page 7 5/4/2021 EXHIBIT 1 overhead, including phones, cellular phones, vehicles, mileage and other direct and indirect costs. This fee schedule shall reflect all anticipated fee increases such as (but not limited to): Software purchases or subscription costs, hardware costs, ongoing support costs, professional services costs for project management, implementation, interfaces, data migration, training, etc. In addition, any optional services. 2) EXHIBIT B — PROPOSERS STATEMENT AND PROPOSAL ITEM PRICING 3) EXHIBIT C—ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL GENERAL LIABILITY POLICY (NOT REQUIRED UNTIL AFTER CONTRACTOR SELECTION) 4) EXHIBIT D— REFERENCES AND RELEVANT WORK HISTORY (PAST 10 YEARS) 5) EXHIBIT E — PROPOSAL CONTRACT AND AGREEMENT— PROPOSERS STATEMENT 6) EXHIBIT F — PROPOSAL CONTRACT AND AGREEMENT —CERTIFICATION OF NONDISCRIMINATION BY CONTRACTOR 7) EXHIBIT G — NON -COLLUSION AFFIDAVIT Submittal of Proposal. • Six (6) copies of the response to the RFP shall be signed by a company official with the power to bind the company. • One (1) coot/ of the submittal on a USB Flash Drive or equivalent. • Structure your proposal to include the Scope of Service response, Implementation Schedule, Fees / Contract Price and Exhibits. The proposal must be completely responsive to the RFP. The Housing Authority reserves the right to reject any or all proposals submitted and no representation is made hereby that any contract will be awarded pursuant to this RFP or otherwise. XIII. CONTRACTOR SELECTION— SCORING AND EVALUATION The criteria for evaluating the proposals submitted will take the following evaluation criteria into consideration: EVALUATION CRITERIA Qualifications & Company Experience Organizational background and overall experience (Max. 10 Points) Qualifications and experience relevant to the scope of services described in Exhibit A (Max. 15 Points) Housing Authority of the City of Santa Ana City Council Page 8 5/4/2021 EXHIBIT 1 Experience working with Housing Authorities (Max. 10 Points) SUB TOTAL (Max. 35 Points) Overall Quality and Depth of Proposal Quality and organization of proposal (Max. 15 Points) Completeness of proposal (Max. 15 Points) SUB TOTAL (Max. 30 Points) Fee Schedule Overall fee schedule (Max. 5 Points) Fee schedule related to the services requested (Max_ 10 Points) Fee schedules and timeline for implementation (Max. 20 Points) SUB TOTAL (Max. 35 Points) GRAND TOTAL (Max. 100 Points) The proposals will be reviewed by a Review Panel of Housing Authority staff members. The Panel will evaluate Proposals based on their response to the RFP. Afinal score will be calculated for each submitted proposal and used to rank the proposal. The highest scoring proposers will be informed after the scoring and evaluation is complete. The Panel will recommend award of the contract to the proposer who will provide the best quality service to the Housing Authority. The Housing Authority reserves the right to negotiate pricing and for additional interviews. The Housing Authority will notify the successful firm(s) by email of invitation for a final oral interview. demonstrations. and/or award. XIV. PUBLIC RECORDS Proposals will become public record after award of agreement. Interested offerors may submit an a-rnail request to receive results of the evaluation. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act. Submit your request to Judson Brown, I lousing Division Manager, at 'brown@santa-ana.org. XV. FILING A PROTEST Bidders may file a "protest" with the Housing Authority. In order for a contractor's protest to be considered valid, the protest must: 1. Be filed in writing within five (5) business days of either the RFP posted date or before 5:00 p.m. of the 5th business day following the posting of RFP results/Notice of Intent to Award Contract on the City's website; Housing Authority of the City of Santa Ana City Council Page 9 5/4/2021 EXHIBIT 1 2. Clearly identify the specific irregularity or accusation; 3. Clearly identify the specific City staff determination or recommendation being protested; 4. Specify, in detail, the grounds of the protest and the facts supporting the protest; and 5. Include all relevant, supporting documentation with the protest at time of filing. If the protest does not comply with each of these requirements, it will be rejected as invalid. If the protest is valid, the City's Housing Division Manager, or other designated City staff member, shall review the basis of the protest and all relevant information. The Housing Division Manager will provide a written decision to the protestor within fourteen (V) calendar days from receipt of protest. The decision from the Housing Division Manager, or her/her designee, is final and no further appeals will be considered. Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 10 EXHIBIT 1 EXHIBIT A HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE SCOPE OF SERVICES I. INTRODUCTION The Housing Authority of the City of Santa Ana ("SAHA") has issued this Request for Proposals (RFP) to solicit proposals from qualified providers for a Housing Management Software system including ongoing maintenance and support, implementation design and planning, and software implementation. The software should include housing authority -specific modules fully capable of supporting SAHA's programs. The software must clearly demonstrate the ability to conform to all requirements of the Housing Choice Voucher Program, Project -Based Voucher Program, Special Purpose Vouchers Program, Family Self -Sufficiency Program, and to all requirements of the U.S. Department of I lousing and Urban Development (HUD), and to Generally Accepted Accounting Principles (GAAP) services. II. Scope of Work The Santa Ana Housing Authority is a mid -sized Public Housing Authority located in Santa Ana, California and is operated under the U.S. Department of Housing and Urban Development, and has approximately 15 full time employees and manages 3235 Housing Choice Vouchers (Section 8). We also have a Project -Based Voucher Program, Family Self Sufficiency Program, and we administer Mainstream Vouchers, Foster Youth to Independence and Veterans Affairs Supportive Housing vouchers. The Authority's funding is fully dependent on the U.S. Department of I lousing and Urban Development (HUD). HUD's funding is dependent on annual appropriations from Congress. I he Authority currently utilizes multiple servers on a city-wide network. Workstations are running Windows 10. The current software used by the Authority is MRI Software. There are approximately 20 users on the system presently. The firm will include in their bid all necessary materials, equipment and labor to provide a fully integrated, management system, with a multi-user environment. Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 11 EXHIBIT 1 It is the Santa Ana Housing Authority's objective to administer all Authority services into the system. The systern needs to support the needs of all Programs and provide data to support all forms of administration of the Housing Choice Voucher Program. 1. Housing Management Software System —The contractor will provide a complete system with ongoing maintenance and support services that meets the requirements established by this RFP. The software selected will manage the following functions of SAHA. SAHA-specific module descriptions we are interested in, • Waiting List • Housing Choice Voucher Program • Rent Reasonableness • Report Generation • Letter and Packet Generation • HCV Program Grant Management • PIC File Generation • Scanning and Paperless Capabilities • Bank Reconciliation • Project Based Vouchers for HCV • HQS Inspections/HQS Mobile • UPCS Inspections/UPCS Mobile • Online Applications • Applicant Portal • Landlord Portal • Participant Portal • Document Imaging • Accounts Receivable • Accounts Payable 2. Implementation Planning and Design Services —The contractoi will pi ovide a scam of intplemenration experts who will work with SA11A to determine in detail how the housing management software system will be used at SAHA to meet the project goals and system requirements. The planning and design phase will determmie which nwdules are used and how each specific nwdule will be used to optimi/e workflow and process miprovcincuts. The phase kill also review Lhc order and Negaeucc of irnplernentation fnr cash rnutlule, what efl'orts including staffing and training will he necessary Lo irnplement each module, how connections Lo other systems will be designed, what data will be stored in the system, what historical data will be imported, etc. The bidder will be required to submit a fixed lee proposal for the Implementation Design and Planting Phase. The proposal should Spell out assumptions and expected estimate of eflort. Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 12 EXHIBIT 1 3. l mplenlentation Services— I lle Con tra C[CnWill povidc in9pl cmerl ration and roh;.tell 3CrViCCS IICCcssaIy to install the new software, data conversion and testing, train gaff etc. SA IA has au expectation that all end -users will he trained by the contractor, and Nvill not implement a `train -the -trainer" approach_ Housing -Related Applications • Tluusillg (''110ICC V011111Cl- Pruv,r:un • WaitiriL, List. including Project -Based Voucher Sitc-Bascd Writing Lists • Family Self Sufficiency • Special Purpoic Voucher; (VASI1, Main5tl'C&nt, FYI) • I lUD Rcporlinn through PIC and VMS • H(JS Inspections/HQS Handheld • 1TPCS lnspections/1JP('S handheld • LTliliiy Allowance and Paymctn ",iondaids • 'I chant Accounts Rcccivablc Billing • Letter Generation • Sunning and Paperless Pile C'apahilities Financial Applications • Accounts Payable • Accounts Receivable • Budgeting, and Financial Forecasting • Financial Reports • T11JD P11AS Repoffing including Financial Data Schedule (FDS) • Bank Reconciliation Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 13 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT B HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE PROPOSERS STATEMENT AND QUALIFICATION FEE SCHEDULE Certification — I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Exhibit A) and I am familiarwith the scope of work requirements. I am familiar with all of the existing conditions and limitations that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the Housing Authority for clarification prior to the submission of my proposal. FEE SCHEDULE Please provide a list of professional software services and forms that the firm has provided and can provide to the Housing Authority, along with a proposed fee schedule. LEGAL NAME OF COMPANY PHONE AND FAX NUMBER BUSINESS ADDRESS PRINTED NAME OF AUTHORIZED AGENT TITLE SIGNATURE OF AUTHORIZED AGENT DATE E-MAIL ADDRESS FEDERAL ID NO. (IF APPLICABLE) CONTRACTOR LICENSE NO. (IF APPLICABLE) Housing Authority of the City of Santa Ana City Council 4 5/4/2021 Page 1 EXHIBIT 1 EXHIBIT C ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL GENERAL LIABILITY AND BUSINESS AUTOMOBILE POLICIES Insurance Company I his endorsement modifies such insurance as is afforded by the provisions of Policy # relating to the following: The City of Santa Ana, 20 Civic Center Plaza M-26, Santa Ana, California 92701: its officers, employees, agents, volunteers and representatives are narned as additional insureds ("additional insureds") with regard to liability and defense of suits arising from the operations and uses performed by or on behalf of the named insured. 2. With respect to claims arising out of the operations and uses performed by or on behalf of the named insured, such insurance as is afforded by this policy is primary and is not additional to or contributing with any other insurance carried by or for the benefit of the additional insureds. 3. This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the company's limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. 4. With respect to the additional insureds, this insurance shall not be cancelled, or materially reduced in coverage or limits except after thirty (30) days written notice has been given to the City of Santa Ana, 20 Civic Center Plaza M-26, Santa Ana, California 92701. (Completion of the following, including countersignature, is required to make this endorsement effective.) Effective Policy # Issued to this endorsement form as part of Name Insured Countersigned by: Authorized Representative Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 15 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT D HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE List and describe fully the contracts performed by your firm which demonstrate your ability to provide the services included in the scope of services. Attach additional pages if required for additional references. The Housing Authority reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1 Customer Name: Address: Contract Amount: Description of PHA Software services provided: Reference No. 2 Customer Name: Address: Contract Amount: Contract Individual: Phone Number: Facsimile Number: Year: Contract Individual: Phone Number: Facsimile Number: Year: Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 16 EXHIBIT 1 Description of PHA Software services provided: Reference No. 3 Customer Name: Address: Contract Amount: Description of PHA Software services provided: Contract Individual: Phone Number: Facsimile Number: Year: Housing Authority of the City of Santa Ana Request for Proposals for Housing Management Software City Council - --- -- 3 — 20 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT E HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE PROPOSAL & CONTRACT AGREEMENT PROPOSER'S STATEMENT Proposer understands and agrees that this written RFP (or any part thereof specifically designated and accepted by the Housing Authority of the City of Santa Ana (hereinafter "the Authority') shall constitute the entire agreement between proposer and the Authority only after it has been accepted by the Authority, endorsed by the Recording Secretary with his/her signature and official seal noting here on the action of approval of the Council / Housing Authority, signed by the Executive Director or his/her duly authorized agent, and signed by the Authority General Counsel, denoting his/her approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to proposer or deposited with the United States Postal Service properly addressed to the proposer with the correct postage affixed thereto. Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish the Authority all required bonds and certificates of liability insurance within ten (10) days (excluding Saturdays, Sundays and the Authority's legal holidays), or the funds, check, draft, or proposer's bond substituted in lieu thereof accompanying this proposal shall become the property of the Authority and shall be considered as payment of damages due to the delay and other causes suffered by the Authority because of the failure to enter into an Agreement and/or furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by the Authority is difficult to ascertain, otherwise said funds, check drafts, or proposer's bond substituted in lieu thereof shall be returned to the undersigned. Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. All terms contained in the Specifications, the Certification of Non -Discrimination by Owners, and the Workers' Compensation Insurance Certificate are to be incorporated by reference into this Agreement and are made specifically as part of this RFP. FIRM SIGNED AND PRINTED NAME TITLE DATE Housing Authority of the City of Santa Ana Request for Proposals for Housing Management Software City Council ' --- -- 3 — 21 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT F HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE PROPOSAL AND CONTRACT AGREEMENT CERTIFICATION OF NONDISCRIMINATION BY CONTRACTOR The undersigned Contractor or corporate officer, during the performance of this contract, certifies as follows. The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or any other protected class. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, national origin or any other protected class. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or any other protected class. 3. The Contractor shall send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction/services contracts in accordance with procedures authorized in Execution Order 11246 of September24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. Housing Authority of the City of Santa Ana Request for Proposals for Housing Management Software City Council ' --- -- 3 — 22 5/4/2021 EXHIBIT 1 7. The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigalion with a subcontractor or vendor as a result of such direction by the administering agency, the 8. Contractor may request that the United States enter into such litigation to protect the interests of the United States. 9. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1039, and as amended, No discrimination shall be made in the employment of persons because of race, religious creed, color national origin, ancestry, physical handicaps, menlal condition, marital stalus, sex of such persons, or any other protecled class, except as provided in Section 1420. and any Contractor violating this Section is subject to all the penalties imposed for a violation of the Chapter. FIRM GNED AND PRINTED NAME TITLE DATE Housing Authority of the City of Santa Ana Request for Proposals for Housing Management Software City Council ' "b` -- 3 — 23 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT G HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE PROPOSAL AND CONTRACT AGREEMENT NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) To the HOUSING AUTHORITY OF THE CITY OF SANTA ANA, In accordance with I itle 23 United States Code Section 112 and Public Contract Code 7106 the PROPOSER declares that the bid is not rnade in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the PROPOSER has not directly or indirectly induced or solicited any other PROPOSFR to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived or agreed with any PROPOSER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the PROPOSER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the PROPOSER or any PROPOSER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other PROPOSER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the PROPOSER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note. The above Non -collusion Affidavit is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Non -collusion Affidavit. PROPOSERS are cautioned that making a false certification may subject the certifier to criminal prosecution. State of California County of Subscribed and sworn to (or affirmed) before me on this who appeared before me. Notary Public Signature day of 20 , by proved to me on the basis of satisfactory evidence to be the person(s) Notary Public Seal Housing Authority of the City of Santa Ana Request for Proposals for Housing Management Software City Council ' "b` `_ 3 — 24 5/4/2021 EXHIBIT 2 CONSULTANT AGRVVMF'N`I' BE I'M FEN �1'HE HOUSING AUTHORITY OF THE CITY OF SANTA ANA AND HAPPY SOFTWARE LLC. AN MRI SOFTWARE LLC COMPANY THIS AGREEMENT, made and entered into this I" day of June, 2021 (`Commencement Date"), by and between Happy Software LLC, an MRI Soliware LLC Company, a limited liability company (hereinafter "consultant"). and the housing Authority of the City of Santa Ana, a public body, corporate and politic (hereinatler "Authority"). RECITALS A. On March 1, 202L the Authority issued a Request for Proposals (RFP #21-031) for llousing Authority Management Software from professional public housing authority housing software providers to provide housing management soflware services. B. Consultant represents that Constiltartt is able and willing to provide such sottwarc services to the Authority subject to the tams of this Agreement and the terms of the SaaS Subscription Agrecment attached as Exhibit A and incorporaled by reference into (his Agreement. C. In undertaking thcc performance of this Agreement, Consttltan[ rcprescn[s that it is lntowlcitgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field - NOW THEREFORE, in consideation oh the mutual and respective pruuliscs, and sLtbjcct to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SFRVICF.S Consultant shrill providee the software licenses and related services in accordance with the terms set forth in Exhibits A and B and C (as those terms are modified by the parries in writing from time -to -time). 2. COMPENSATION a. The Authority agrees to pay, and Consultant agrees to accept as total payment for its services, the rates and charges idcntificd in lixhibit ll and C. The total sum to lie expended durin€ the'I crm of this Agreement shall not exceed Iwo hundred thousand dollars (S200,000.00) as oullined in Lhe Order Document and Stawinenl of Work attached hereto as Exhibits B and C- Consultant may, at any time after the first twelve (12) months of the Cormnencemcnt Date listed abovc, and in its sole discretion modify the fires upon ninety (90) calendar days prior written notice to Client. Notwithstanding the foregoing. the Fees shall not increase in each subsequent tN elve (12) month period by nuxe than the greater of (i) five percent (.i%); or (ii) the increase in the I JS Bureau of Labor Statistics Constuner Price Index (CPI-ll) for the most recent year. A twelve (12) month period commences on the anniversary of the Commencement Date- For purposes ol' this notice, email or fins -class mail will suffice - Fees are exclusive of, and Client is responsible for, shipping, costs. b. Payment by Authority shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to Authority accounting procedures, unless otherwise agreed in writing - City Council 3 — 25 5l412021 EXHIBIT 2 Tnterest accrues on past due balances at the lesser of a I /G% per month or the highest rate allowed by law- To dispute a charge on an invoice, Authority must identify the spceific chargec in dispute and provide a written explanation of the basis for the. dispute, widiin thirty (30) calendar days of the date of invoice. Authority may Withhold payment of a charge subject to good faith dispute provided: (i) Authority submit: the billing dispute within thirty (30) calendar days of the date ofthe invoice; (ii) Authority pays the undisputed portion of all charges; and (ill) Authority cooperates reasonably with Consultant's elTorts to jnvestigate and resolve the dispute. Tf Consultant dclernines that a disputcd charge is in error, Consultant shall issue a credit or rever,c the amount incorrectly billed. It Consultant determines that a disputed charge was billed correctly, payment shall be due from the Authority immediately, but no later than five (5) business days after the determination, Authority is responsible forproviding an accurate billing contact and updating LhaL billing contact as needed fi-onr time to Lime such that Consultant always has an accurate billing contact for Authority. C. It Client tails to make payments of any fees due under the Agrceinent, Client shall be in material breach of this Agreement. Consultant will be entitled to suspend its performance upon ten (10) days' written notice to Client and/or to modify the payment terms, and to require full payment before any additional pc formanec. is rendered by Consultant- Notwithstanding any of Consultant's rights cnuuneraLed in section 2 of the. Agreement or section 9 of Exhibit A, if Client frils to timely pay applicable fees under all Order Document, Consultant shall be entitled to collect all past and current amounts due and owing, and to accelerate all tenure amnunte to he due, such that all re naining periodic payments for the then current tam of the applicahle Order Document are immediately due and owing. Client shall be responsible Lo pay any collection expenes (including atLorneys' lees) incun-ed by Consultant- Unless expressly provided otherwise, fees paid or payable for SolTware licenses, SaaS Services or. Maintenance and Support are not contingent under any enculnstances upon the performance of any Professional Services. d- Unless expressly provided other vise, the prices in the Agreement do not include taxes- Client agrccs to pay any Laxes, other than those based on MRT's neL income, arising out of dle A, -ccmem- TI' C'licnt is tax-exempt- Client agrees to send MRl a copy of its Lax -exempt certificate prior to eXCCulion of a Schedule. Client agrees to indemnify M111 from any liability or expense incurred by MR1 as a result of Clicnt's failure or delay in paying taxes titre. e. Unless otherwise noted within the Order Document, Mltl's reasonable travel and lodging expenses incun-cd by MRI in the perlo nianec of Services on C'liarl's sjLC will be billed separaLcly at actual cost, suhjecl to preapprclval by Clicnt. 3. '1 ERM This Agreerncrlt shall commencee oil the date first %Armen above and terminate after three (3) years, oil May 31, 2024, unless terminated earlier for breach as outlined in Exhibit A. Thereafter, the term of this Agreement may be extended upon a writing executed by the Authority 1%xccutive Director and Authority Cicneral C'ourrsel. 4. INDEPENDENT CON FRAC FOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the Authority- This Agreement is not intended nor shall it be construed to create an cmployci--cmployCc relationship, a joint venun-c rclatiotlship, or to allow Llre. Authority to exercise discretion or control orcr the nrofcssional manner in which C ODS1.dtarlt ucrfornis dre services which are the subject matter of City Council 3 — 26 5/4/2021 EXHIBIT 2 this Agreement; however, the services to be provided by Consultant steal I be provided in a manner consistent with all applicablc standards and regulations bovcrning such saviccs. Consultant shall pay all ,alatics and wages, employer's social security taxes, unemplovtnent insuranec and similar taxes relating to its own employees and shall be responsible for all applicable withholding taxes. 5. TNSitRANCF. Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a- Commercial General Liability Tnsttrance. Consultant shall maintain commercial general liability insuranec naming the City, its ofliecrs, cmployccs, agents, volunteers and Icptrscntativcs as additional itnurcd(s) and shall include, but not be limited to protection against claims arising front bodily and personal injury, including death resulting therefrom and damage to property, resulting from any act or occurrence arising our of Consultant's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. I he anurunts of'imm-once shall be not less than the hallowing: single linnit coverage applying to bodily and personal iniury, including death resulting thcrcli-otn, and property damage, in the total anunun of $1,000,000 per oceun-enCC, with $2,000,000 in the aggregate. Such insurance steal I name the City, its officers, employees, agents, and representatives as additional insured(s). b. Business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence- Such insurance shall include coverage for owned, hired and non -owned anionIobilcs- e- Worker's Cotnpcnsation Insurance In accordance with the provisions of Scenon 2700 of the Labor Code, Consultant, if Consultant has an-y employees, is required to be insured against liability for worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work tinder this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accidem. d. TfConsultaunt is Orennploys a licensedprolessional such as an architectorengineer: Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim with $2,000,000 in the aggregate. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: I. Consultant shall maintain all insurance required above in full forceand effect for the entire period covered by this Agreement- ii. Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall he approved by the City- in- Consultant shall supply City with a fully executed additional insured endorsement- I'- Tf COTIStltant Mails or refuses to produce or maintain the insuranec required by this section or fails or retti.ws to fitrnish the City with required proof that insurance has been procured and is in tierce and paid for, the City shall have the right, at the City's election, to forthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notification of termination- Consutant waives the right to receive compensation and agrees to indemnify the City for any work performed prior to approval of insuranec by the City- 6. TNT-FNX4QN A T T V !l TTTTL T City Council 3 — 27 5l412021 EXHIBIT 2 7. CONF11)ENIIA1,1IN If either party receives from the other panty information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, the receiving party agrees that it shall not use or disclose such information except in the perl'orrnance of this Agreement, and Itirdler agrees to exercise the Same degree ul' care it uses to protcet its own inlimnaliun of like importance, bill in no watt less than reasonable care. "Cotitidentlal Information- sllall include all nonpublic intorniatiott. COnfldetitia1 Infut'nlatiott includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential Tnfirrmation disclosed to either party by any subsidiary anti/or agent of the Otherparty is covered by this Agreement- The fi>regoing obligations of non-use. and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources, (b) is, through no fault of the receiving party disclosed in a publicly available source; (c) is in rightful possession of the receiving party without an obligation of confidentiality; (d) is required to he disclosed by operation of law, including provisions of the California Public Records Act, or similar public records disclosure laws only to the extent mandated; or (e) is independently developed by the receiving party without reference to information disclosed by the disclosing party- For the avoidance of ally doubt, the C011tldentlallty obligations set torth In this section 7 (Confidentiality) arc Ill addltlUn to, and shall not be interpreted as conflicting with, the confidentiality obligations separately set forth in the SaaS Subscription Agreement incorporated herein as hxhibit A. S. CONFLICT OF INTEREST CLAUSE, Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 9. NOTICE Any notice, tender, demand, delivery, or other Coninnnieatiorl pursuant to this Agreement shall be in writing and shall be deemed to be properly given Wdelivered in person or mailed by lust class or certified mail, postage prepaid, in the manner provided in this Section, to the following persons_ To Authority: Housing Authority for the City of Santa Ana Community Development Agency 20 ('ivic Carter Plaza (M-27) P.O. Box 1999 Santa Ana, CA 92702-1988 And: Authority General Counsel Cily of Santa Ana 20 Civic Ccntcr Plaza (M-29) P-0. Box 1988 Santa Ana. California 92702 fo Corlsuhant: Happy Software LLC, an MR] Software I.LC: Company Attn_ Legal Department 23925 Fountain Parkway Solon, Ohio 44139 City Council 3 — 28 514/2021 EXHIBIT 2 A party may change its address by giving notice in writing to the other party. Thereafter, any notice, tender, danand, delivery, or other anrmunication shall be addressed and itaIISIIIlued to the rrcw address. If sent by mail, any notice, tender, demand, delivery, or other cotntnunication shall be effective or decrned to have, been given three (3) days after it has been deposited in the United States mail duly registered or certified, with postage prepaid, and addressed as set forth above. I -or purposes of calculating these time frames, weekends, federal, state, County or City holidays Shall be excluded. 10. EXCLUSIVITY AND AMENDMENT This Agreement, including the terms of Exhibit A, collectively represent the complete and exclusive statement between the. Authority and CorlArharrt, and supersedes any and all other agrecnlcnts, oral or written, between the parties. In the event of a conflict between the tenses of this Agreement and any auachntenu hereto. the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the Authority and by an authorized representative of Consultant. The palsies agree that any terms or conditions of any purchase order or other itlsn-wrlent that are inconsistent with, or in addition to, that terms and conditions hereof, shall not bind or obligate Consultant nor the Authority. Each party to this Agreement ackilowledge5 that no repl'esentatlons, inducements, pl'ornises or ag,l'eernetlts, orally of Otherwise, have been Inale by any party, or anyone acting on behalf of any party, which are not anbodied herein. 11. ASSIGN MFNT Consultant may assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the Authority to its parent company or other affiliated company, to a successor by Operation of law, or by reason of the sale or transfer of all or Substantially all of its stock or assets to another entity. Neither Party may otherwise assign or tri usler the Agreement without the prior written consent of the other Party. 12. INTENTIONALLY OMITTED 13. DISCRIMINATION Consultant shall not cliscriminate because. of race, color, creed, religion, sex, marital starts, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited b-v applicable law, in the rcauitlnent, selection, training, utilization, promotion, termination or other onrploynrent related activities. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 14. JURISDICTION - VENUE This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be govcnnrcnt and construed in accordance with the laws of the Statc of California- This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of soy of illo clauses of this Agreement shrill he determined and governed by the laws OHIO, State of Califomia. Holli parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement- Each Party irl'evocably waive its rights to trial by jttry in any action or proceeding, arising out of or relating to this Contract Or the U.9nsactionS relating to its Subject matter. The Parties agree that this contract is not a cots :act for the Sale Of goods, therefore, the Contract shall not be governed by any codification of Article 2 or 2A of the Uniform City Council 3 — 29 5l412021 EXHIBIT 2 Commercial Code, or any codification of the Tlnifnrm ComputerTnformation Technology Act ("UCTTA"), orany rcicrcnecs to the United National Convention on Contraets for the TmCdnatlOnal Salc o[ Goods. 15. PROFESSIONAL LICENSES Consultant shall. throughout the tenn of this Agreement, maintain all necessary licenses. permits, approvals, waive--s, and exemptions necessary litr the provision ol'the services hereunder and required by the laws and regulations of the United States, the State of Calitornia, the City of Saute Ana and all other governmental agencies. Consultant shall notify the Authority immediately and in writing of her inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions- Said inability shall be cause for termination of this Agrccmcnl. Hach undersigned represent. and wan -ants that its Si, tature hereinbelow has the power, authority and tight to bind their respective parties to each of the terms of this Agreement, and shall indemnify Authority Cully_ including, reasonable costs and attorney'; tees, for ally injuries 01 damages to Authority in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. ,.Si,rrulurcrs onJollovt�ur, pcc,e,= City Council 3 — 30 51412021 EXHIBIT 2 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written - ATTEST: lbisy Gomez Housing Authority Recording Secretary APPROVED AS TO FORM: Sonia It. Carvallho Aulborily General Counsel 13y: 4 ,l Ryan Ol 1`lod c Assistant Counsel HOUSING AUTHORITY OF T11E CITY OF SANTA ANA Steven A. Mendoza Executive Director CONSULTANT By: Roman Telerman Titles Chief Financial Otfiecr City Council 3 — 31 51412021 EXHIBIT 2 EXHTBTT A SMS SubscriptiouAgtncnicnl Attached Srparately Paginated} City Council 3 — 32 5/4/2021 EXHI MIA ;rnl MASTER AGREEMENT This MaslenAgreement is enlere(I into between Mkt Wfware LLC ("MRI") In(] the Client named in the Order DoQunenl, and the authorired I epresentatives of the Parties her execute this Master Agreement to be effective as of the COIntheneelnent Date, as defined in the 01 del Document. As used in this Agreement, "Party" means either Client or MW, as appropriate, and "Parties" means Client and MRI, Iall 3Sr}YWi7:IrEY{61dq 1.1 Master Agreement. This Master Agreement establishes the genetal terms and conditions to which the Parties have agreed in ordet to facilitate the licensing of residential and/or commercial property manavernenl enlerplise suflware, moment, other pruducls and/or the provision of related services. Additional product or service -specific terms and conditions are set forth in one or more Schedules (as further defined in Section 12 herein)_ Allrrfelcllcrs to the "Master Agreement" ShalL mean this dULUIIIOI1t, exclusive of Schedules. All references to the "Agreement" wherever found shaLL Include this Master Agreement, ML Schedules, the Order Document and any attachments incorporated in the Schedules. 1.2 Incorporation of Schedules. This Master Agreement shall fully incorporate by reference the terms and (,onditions found in eadl of the Schedules marked on the Ortla Document The Parties may execute. from time to time, additional Schedules under Lhr trans of [his Masl rr A9rcrmrn l.. 1 A Incorporation of Order Documents. "Order Document" means the document(s), regardless of its actual name, exec ited by the Parties which mr-orpnoates by reference the terms of this Master Agreement and applicable Schedules, and describes Client's order -specific information, such as description of Software or Services ordered, License scope, use and restrictions, fees, milestones, :Ind/or Third Party EULAs, if any. At any time after execution of the initial Order Document, Client may purchase additional Software licenses or Services of otherwise expand the scope of such license of Services granted undct an Ordet Document, upon MRI's receipt and acceptance of a new Order Document specifying Ole foregoing. 1.4 Incorporation of EULAs. Client's use of any Third Party Software licensed hereunder or incorporated in the SaaS Services shall be subject to, and Client shall comply with, the Agreement and any applicable EULAs, if any, the terms of which may be incorporated in the Agreement or contained in a Separate document. As between Client and MRI, to the extent any terms and conditions of this Master Agreement or a Schedule conflict with the terms and conditions of a Third Party CULA, the terms and conditions of this Master Agreement and the Schedule shall control unlrss thr Third Party CULA rxplicitly, nvrrridrs a from or condition of the Master Agreement or Schedule. However, Should a dispute arise between Client and the Third Party Software provider, the terms of the applicable Third Party EULA shall control but only to the extcoL MRI is not a party to such dispute. 8y way of example, if this Agreement is subject to Ohio Law and a Third Party EULA is subject to California law, a dispute among MRI, Client cold the hold Party Software ptuvidcr would be subject to Ohio law, but a dispute only between Client and the Third Party Sol lwar'e provider would be subject to Caliloi nia law. Each I hird Party Software provider Shall be considered a third party beneficiary of the Agreement, with rights to enforce the terms of the Agreement and the EULA, if any, against Client, pur'slant to the te1'nls of Section 10.14 below representation of the Administratotis) without father verification of authority. MRI may, from tittle to tittle, in its sole discretion, require written doullnentation of Client verifying the authority or continued authority of any Administrator, which Client shall provide upon request. Al least one (1)Ad ministrator must be a Designated Su pporl CpnLacL. An Administrator must he an crnployce of the Client. 1.6 Designated Support Contact. For the purposes of this Agreement, "Designated Support Contacts" means the Client employees so designaLed by Client on the Order Document. The Client shill have the number of Designated Support Contacts as designated on the Order Dorunlenl. Only a Designated Suppnrl. Contact shall he pennilled In con LacL MRI for any Maintenance and Support services and shall have the authority to (i) log case requests; and (if) receive status updates on cases. A Drslnnntcd Support Contnrt must hm all cnpLnymc of Thr Client. 1.7 Client User. For the purposes of this Agreement, "Client User" means a Client employee or Client Affiliate, acting directly on behalf of Client and using fhe Software or Services solely for Life purpose of the Client's internal husines; operations. If an Affiliate is a Client Use[, Client warrants that it has the authority to bind such Affiliate(s) to the terms of the Ayr eernent and any applicable Schedule and further wattants that Client shalt be jointly and severally responsible (with any surh Affiliates) fnr A hrearh of surh terms by its Affiliates. Client shall only permit Client Users to access and use any Software or Service and represents and warrants that all Client Users shall comply with the twins and conditions of use set forth in this Agreement and each Stith Client User shall be bound by a nondisclosure agreement with provisions that are at least as restrictive as the terms of this Agreement. Client shall indemnify and hold MRI harmless far all loss, damages, costs and expenses (including rcasonablc OttolncyS' (ccs) incurred by MRI for any breach or other violation of this Agreement by a Client User. An independent rnntrartor, agent or other third party acting ern hchalf of Clirnt may hr deemed a Client User upon prior wtitten consent of MRI and Client, and MRI may require such independent contractor, agent or othet third party In cerl ify with or miler cnnlrac teal Icons with MRI accrplahlr In MRI. In no event shalt the combined use of the Software or Services hereunder by Client and its Client Users exceed the Licensed Metrics authorized under the applicable Order Document. 1.8 Owner. The Software is designed to be used for residential and/or commercial property management. If the Client is not the owner of such properly, of not the owner of all suds properties for which life Software or any Service is utilized; but rather, Client is the manager for the owner of such property (with the non -Client property owner defined as "Owner"), Ilion Clienl represents Ihal Client either. (I) is enlP, rin [his Agreement directly in privity with MRI; or (if) is the duly appointed agent of the Owner and has the authority to enter into and perform the Agreement and use the Software and Services pursuant to the terms SOL forth in the Agiecinent. Client Shall at all times be solely liable for the payment of all fees and the nhseryanre of all nhhgations, terms and conditions of the Agreement, regardless of any action, inae Lion or nonpayment by any Owner. Client shall keep MRI apprised in writing at all times of thr icirntity and contact information of the Owner, and if ChOrWs Idaliulvllip changes with respecL to the Owner (by way of 1.5 Administrators. For the purposes of this Agreement, example and not by way of (imitation, such as if Client's agency or "Administrators" means the individual so designated by Client on the management rclatinnship with Owner terminates). If Client's relationship Order Document. An Administrator has full admlldstrative privileges for wish ail Owner Or a particular property terminates for any reason, Client all Software and Services, including without limitation (I) creating, shall continue to be liable for any and all fees related to such Owner or deleting m modifying databases ur user accounts, (ii) creating, deleting, properly regardless of when such fccs arc hillyd by MRI Chrnlshall copying, restoring or requesting copies of databases; (fit) requesting immediately notify MRI in the event of any change in ownership or control security and audit reporting; (iv) security class modification; and (v) site (including any change in control pursuant to a management contract) of modification. Once named, the Administrator(s) shaft have sole authority Client Owner or :my of the properties, sltms, at commurntles authurizmd to instruct MRI and make decisions on behalf of Client regarding Client's for use of any Software or SaaS Service. Client shall undertake all use at the Software or Servires. MRI Chill hP Prltl}IPA j (• r IV Ilrl,, ln,, r--- --8 800 9" R._._ A Ki tl W liilei 'Ri:.. F 410 R19*41 00 any Such sold or Client Housing'A1Rh&;9)-fir C4 City of Santa Ana MRI Confidentiaf3 - 33 i1?9�01 E transferred properties, sites and communities to use or benefit from any Software or SaaS Service. Client shall remain fully liable for the use of any Software or SaaS Service until proper notification is coin pleted. 2. DEFINITIONS "Affiliate" Incans all entity cuhtiolhng, controlled by or under common control with a Party to the Agreement where control means the ownership or control, directly or indirectly, of more than fifty percent (505r) of all this voting power of the shares (or other securities or rigfrts) entitled to vote for the election of directors or other governing authority. "Client" means the entity, that has entered r into this Agem eent with MRI. "Client" also refers to Affiliates authorized to use the Software and Services in accordance with Section 1.7. "Client Data" means any data and information that Client provides, generates, transfers or makes available to MRI antler the Agreement, whether printed, electronic, or in some other format. Client Data shall also include data and tnfunnatlon belongvlg to Owner as well as Owner's cuotwncrs and Client's custuincn. "Content" means any information, data, text, software, music, Sound, photographs, graphics, video messages Or other material to which Client is prOVitled access thr'Otigh MkI Or the. SOftWar'e. "Configurations" means, regardless of whether such Configurations are performed by MRI, Client or Client User, (i) configurations implemented flu uugh use of the MRI appliLa Liuu LuulkrL of ULher MRI approved iudmLry standard toolkit, and not through Source code change, or (if) modifications to standard services reports. Notwithstanding, any other provision to the Agreement, if Client haS Configurations performed by a third party, such third party must be qualified as a Client User pursuant TO SPdllnl 1 J prior to the disclosure of any MRI Confidential hlfnnnatinn to Such third party. "Documentation" means the user instructions, release notes, Functional $lecitir anon,, manuals and un-line help files in the form generally rnacle availahle by Mkl, regarding the use of the applicable Software. "Functional Specifications" means those specifications of the MRI Software Iunct,onaULv as set forth in Lhe MRI Software LLC and Affiliated companies Functional Specifications, which may be found on www. mrisoftware.com/MRlfunctionalsoecs. asp, which specifications maybe updated trorn time to tune by MRI upon posting new spedllcattons at such web page address. "Intellectual Property" means any and all intellectual property rights, recognized in any cuunity or Jurisdiction in Lhe world, now or hereafter existing, and whether or not perfected, filed or recorded, including without limitation inventions, technology, patents rights (including patent appUcal Ions and disclosures), copyrights, bade secrets, trademarks, service marks, trade dress, methodologies, procedures, prnrevcP�, know-how, tonlc, utilities, terhniques, various rnnreptc, ideas, methods, models, templates, software, source Lode, algorithms, the generalized features of the structure, sequence and organization of software, user interfares and srreen designs, general purpose cnnstdting and sOflwurc Luuls, ULIIILILs and ruuLincs, and logic, cuhClCnct and methods of operation of systems, training methodology and materials. which MRI has created, acquired or otherwise has rirjhtS in, and may. in connection with the performance of Services hereunder, create, employ, provide, modify, create, acquire or otherwise obtain rights in. "License Metrics" means the limitation on the usage of each of the Software and Maintcnancc and Support services as designated and/or defined in the applicable Order Document by a term such as the number of leases, units, assets, users and life like. 'Maintenance and Support" includes (1) phone assistance and workarounds so that the Software operates in material conformance with the Functional Specifications, and (ii) Updates, all of which are prrnided under MRI's Maintenance and Support Policies (as may be amended by MRI from time to time) in effect at the time the Support is provided. For the avoidance of doubt, Support excludes Professional Services. "Maintenance and Support Policies" means those policies and procedures listed in the Maintenance and Support Policies, that may also be found on MRI's website at www.mrisoftwaie.com/maiiiteiiaiiceandsupport, which may be subject to update by MRI Irom little to lime. "MRI Software" means each MRI-developed and/or MRI-owned software product in machine readable object cotle foot Source code), the Outumcu LaLiou fur such product, and ally Updates mid Upgrades LhcrLLU (if purchased by Cienq. "Owner" is defined in Section 1.8. "Professional Services" means data Lonversiun, implementation, site planning, configuration, integration and deployment of the Software or SaaS Services, training, project management and other consulting services. "Protected Materials" means SofLware, Content, Services, Configurations, license keys and MRI's or its licensorsIntellectual Property or Confidential Information. "SaaS Services" the provision of the Software and/or Content as a service which is hosted by MRI or its hosting providers ar.d which is accessed by Client via the Internet. as more fully described in the SaaS Services Schedule and associated Order DOLLrrlents). "Services" means collectively (i) Lhe Professional Services; (ii) Maintenance and Support, and (fit) SaaS Services. "Software: means culleclivefy the MRI Software and Third Party Softwnc,- "Third Party EULA" or "EULA": the end user license agreement, if any, that accompanies nr pertains to the Third Party Softwarr, and that is incorporaLed into the Agreement, appended to the Order Document or is otherwise published by the third party Supplier, and which governs the use of or access by Client to the applicable Third Party Software. A current List of Third Party EULAS may be found aL www.mrisoftware.com/EULA, which may be updated from time to time. "Third Party Software" means software in objerl node fulfil, including Documentation, Updates and Upgrades (if purchased by Client), owned by an entity other than MRI which are to be provided to Client by MRI on a pass -through, re -seller or OEM basis pursuant to the fermi of the EULA. "Updates" Incans a new version or the SOL Lware, if and when developed after the Commencement Date of the Order Document, which MRI makes generally available to its customers as part of the Maintenance and Support. Updates include bug fixes, patches, error correeuonS, non -new platform changes, or minor modifications or revisions to the Software that enhance rxisting perfnnnancc. Updairs cccludr Uppradrs and nrw Products, modules or fuuChOuallly for which MRI generally charges a separate lee. "Upgrade" means a new Software release Ural may Contain (i) new applications; (if) major functionality enhancements or improvements; andloi (fit) a new platform, which MRI designates as an Upgrade and for which MRI Charges a sepPWAle IicensP- fee or, If MRI'S elerrion, new modules or products, or major releases that include significant feature enhancements or significant architectural modifications for which MR] charges an incremental upgrade fee. 3. RESERVED. 3.1 Reserved. 3.2 Reserved. 3.3 Reserved. 4. CONFIDENTIALITY 4.1 Defined. By virtue of the Agreement, the Parties may be exposed to or be provided with certain confidential and proprietary information of the other Party or third parties, fncludfng but not limited TO information designated as confidential in writing or infonnatior, which by its nature ought to be in good faith considered confidentialand proprietary to the dieclosing Party ("Confidentiof information") - Confidential Information of MRI and/or its licensors includes but is not limited to the terms and conditions (hut not the existence) of the Agreement, including without limitation all Order Documents, fees and charges, all trade secrets, software, source cotle, object code, specifica Lions, ducurnental-ion, business pLans, LUAL)HIer lists and customer-tcLatcd information, financial information, proposals, budgets Client: Housing"A1RhQrlIR)-WC4 City of Santa Ana MRI Confidential3 - 34 WIM01 E as well as results of testing and benchmarking of the Software or tiervic:es, produ(i roadnlap, dales and other infonnallon of MRI and its licensors relating to of embodied in the Software or Documentation, vlhjert to the prnvisinns of the California Puhlir Rernrdc Art and similar public records disclosure laws only to the extent mandated. MRI's placement of a copyright notice on any portion of any Software will not hip rnnl trllPd to mBan that Sikh portion has heBn pllhllshPd and will nor derogate from any claim that such portion contains proprietary and confidential information of MRI, 4.2 Non -Disclosure. Each Party will prolecl the other Parly's CnhfidLllLial InfUlloatiun Liam uuautIorized use or dl,,urr ration and use the same degree of care that each such Party uses to protect its own cuunderlUbt ]WOrmatt Orl, but it) nO event less than a reasonabLe amount Of care. Neither Party will use Confidential Infonnatiutl of the other Party tot purposes other than those necessary to directly further the purposes of the Agreement. NeitherPally will disclose to third parties Confidential Information of the other Party without prior writtel, consent of such other Party, subject to the provisions of the California Public Retards Act and similar public recoMs disclosure laws only to the extent mandated. Notwithstanding anything in this Agreement to the contrary, Client agrees that, upon request by Owner, MRI may communicate directly with the Owner aboutall aspects of the Agreement, the (lienl Data, and any other Client Confidential Information, if applicable. 4.3 Exceptions. Information shall not be considered Confidential Information tattle extent, but only to the cxtcut, that the Icccivillg Patty can establish that such information (i) is or becomes genetally known of available to the public through no fault of the receiving Party; (ii) was rightfully in Lhc receiving ParLys possession before receipt from the disclosing Party free of any obligation to keep it confidential. (iii) is Lawfully obtained loom a third party who has the right to Make SuCh disclusuru; (Iv) is nut cunstdcrcd cunfidcotlzl under the piuvlsons of the California Public Records Act or similar public records disclosure laws only to the extent mandated; or (v) has been independently developed by the receiving Party without reference to any Confidential lofolmation of the disclosing Party. 4,4 Compelled Disclosure. The receiving Party may disclose Confidential Information of the disclosing Party if it is competed by Law to do so, provided the receiving Party gives the disclosing Party sufficient prior notice of such compelled disclosure (to the extent legally permitted) to petmit the disclosing Party a reasonable opportunity to object to the competled disclosure and to allow the disclosing Party the opportunity to seek a protective under or other applupliate remedy. The receiving Party shall provide rmsonabe, assistance, at the disclosing Partv's Cost, it the disclosing Party wishes to contest the disclosure. 4,h RemedyfInjunctive Relief. Ihr Parties neknowlcdgc that disclosure of any Confitlential Infotmatiutl may give rise to mcpatable injury to the Party whose information is disclosed, which injury may be In adequately Compensated in damages. Ther'etore, elthet Party rnoy seek injunctive relief against the other Patty's bleach or threatened bleach of this Section 4 as well as any other legal remedies that are available. 5. PRIVACY Client represents and warrants that before providing non-public personal or financial information to MRI or its agrnts, it will comply with any laws applicable to Lie dISLIUSUle of persunol into[ na Liun, i0duding pruviding notices to or obtaining permission from third parties to allow sharing of Lheir persona( inlormaton with MRI under the Agreement. Nu[wI[hsCV ldLhg anything It, this Aglectnccrit to the contrary, dutlllg the Term of this Agreement, Client hereby grants to MRI a non -cancelable, worldwide, non-exclusive right to utlf7e ally data that arises from the use of the Protected MatenaLs by Client whethet disclosed on of prior to the Commencement Date for any legitimate business purpose, including the light to sublicense such data to third parties, on on anonymous or aggregate basis only, subject to aLL Legal restrictions regarding the use and disclosure of such information. If Clienl provides personal data to MRI from dales subjects in Canada or the European Union ("EU"), then Client hereby (a) acknowledges that in ConnP[tion with any products or services provided by MRI under this Agreement, MRI may tra nsferr access/store I process personal data outside of the EU and Canada in countries (such as the United States) that under EV laws may not ensure an adequate level om data protection (the "Data Transfer"): and (b) consents to such Data Transfer, atld Client shall PnsurP that it rc iPs with all applirahlP Fit and Canadian laws that apply to Client as the data controller of such personal data In connection with the Data Transfer. MRI will take reasonable measures to Ill'otPCf fhP sPCllrlty of 91ch pPl'Snllal data trallsfPrrPd by Client to MRI. Gi•�I!lY i�r7:7Cd:Y ii/i7:IrI�1S1:I�:Li:II� 6.1 Reservation of Rights. All rights not expressly granted in the Agreement are reserved by MRI and its licensors. Client acknowledges Ihal: (i) all $oflwarP is licensed and not sold and all Content is subscribed to and not sold; (it) Client acquires only the fight to use the Protected Materials and MRI, its licensors, and Content providers shallretain sole and exclusive ownership of all rights, title, and interest in the Protected Materials, including (whether developed by MRI, Client, Client User, or other third party) (a) Intellectual Property Pnlhndied in or associated with the Protected Materials, (b) deliverables and work product associated with the Protected Materials, and IC) all copies and derivative works thereof; and (in) the Protected Materials, including the source and object codes, logic and structure thereof, constitute vaLLmble trade secrets of MRI and its licensors. Client hereby assigns to MRI all right, title and interest in and to Configurations developed by Client, Client User or by any other thitd party on behalf of Client, however, Client shall retain a license to use such Configurations for so Long as Client retains a License to use the Suftwate ul SaaS SCI VIeeS, as applicable, used in LunjunLtiun with such Configurations. Client agrees to secure and protect the Protected Materials consistent with the maintenance of MRI's and its licensors' rights herein, as Set forth in Lhis Master Avlrecmcr,L. Clicra agrees to execute such fwthet instruments, and take such further actions as MRI may reasonably request, aL MRI's expense, to apply for, register, petted, sooting, and protect MRI's rights. 6.2 Restrictions. Client shalt not itself, or through any Affiliate, Client User, employee, consultant, contractor, agent or other third Patty: (i) set, resell, distribute, [lost (except Client shall be Permitted to host the MRI Software with respect to a perpetual software license). IPasP, rent, IICPIISe nl' SnhI1CPMSP., ill whole at in part, the Protected Materials; (it) decipher, decompile, disassemhle, reverse assnnble. modify, translate. reverse engineet or otherwise attempt to derive source code, algorithms, tags, specifications, architecture, structure or other elements of the Software, including the license keys, in whole or in part, for competitive purposes or otherwise; (iii) allow access to. pluvide, divulge or make available the Protected Materials to any user other than Client Users; (iv) write or develop any derivative wotks based upon the Protected Materials, except for authpri7ed Configurations; (v) nhudify, adapt, Ltins aLe or oLhcrwise make any changes W the Pru LCL[Ld Materials of any part thereof; (vil use the Protected Materials to provide processing, services to third parties, or otherwise use the same on a `service bureau' basis, other than un behalf of Owner, if applicable, (vii) disclose or pubLish, without MRI's pilot written consent, performance or capacity statistics or the results of any benchmark test perlormed on the Protected Materials; ur Ivlli) otherWlSe use ar copy the Protected Materials except as expressly permitted herein. 6.3 Client Data. Notwithstanding anything in this Agreement to the contrary, Client and/or Owner retains sole and exclusive ownership to any and all Client Data. 6.4 License Grant by Client. DUrmgL the Term of this Agreement, Client grants Lo MRI a non-exclusive, iOyaky free License to use equipment, software, Client Data of other material of Client solely for the purpose of performing MRI'c obligations under the Agreement. 6.5 Enforcement. Client shot (I) ensure that all users or Protected Materials comply with the terms and conditions of the Agreement, (it) Promptly notify MRI of any actual or suspe-ded violation lhemof and (iii) c:ooperatc with MRI with Irspcct to 1nvcSMq,1ton and enfoiCcinelt of the Agreement. The Software contains code -based protections that serve to prevent and remedy violations of the license restrictions. If the Software is hosted on Client's technology systems, Mkl may access the Software remotely in order to ensh.ire Client's compliance with the license terms and other restrictions of the Ar!ree lent. Client: HousinC�ALRhQIR)L 1tH4 City of Santa Ana MRI Confidential3 — 35 /-?19$p1 E 7. INDEMNIFICATION 7.1 Intellectual Property Infringement. MRI will defend or seine, aL its option and expense, any action, Suit or proceeding brought agar nst Client by a third party that the MRI Software or SaaS Services infringe a Lhird parity's USA pa LCni., rCgiSLered COpyrigh L, or registered Lrademak L"IP Claim"). MRI will indemnify Client against all damages and costs finally awardrd or thosr rosts and damagrs agrcrd to in a monrtary settlement of such action, which are attributable exclusively to such IP Claim, provided that Client: T) promptly gives written notice of the IP Claim to MRI; iii) gives MRI sole control of the defense and settlement of the IP Claim, (iii) provides MRI, at MRI's expense. with all available information and assistance relating to the IP Claim and cooperates with MRI mid iLs counsel; (iv) does rIOL colnproinise or SCLLIC SLICII IP Claim; alld (v) is not in material breach of any agreement with MRI. 7.2 Indemnification Exceptions. MR1 has no obligation to the extent any IP ([,Arm IPSURS from: (1) Client having modlfled the MRI Software or SaaS Services or used a release other than a current unaltered release of the MRI Software, if such an infringement would have been avoided by the Use of a eunett unaltered release of the MRI Software, (1) Content and/or arty Third Party Software, (Fir) Configurations or Dv) the combination, operation or use of the MRI Software or SaaS Services with software or data not provided by MRI. 7.3 Infringement Remedies. If it is adjudicated that an Infringement of Lhe MRI Software or SaaS Service by itself and used in accordance with the Agrecmcnt hlfr qus any USA patent, roglstcrcd copyright, or registered trademark. MRI shall, at its option: (i) procure for Client the right to Conlrnue usng life MRI SoRware or SaaS Service; (u replace or mudlfy the same Su it becortleS oust-infiulgiug; or (Fir) MRI shall terminate the applicable license or Service and shall refund to Client (a) with respect to a perpelual License to Lhe MRI SORwaI'e, Lhe license lees for the affected Software, less 1112 thereof for each month or portioil thereof since the anginal Commencement Date, or (b) with respect to Saab SerVlces antl/or lhnited teen Software 0(enses, the pre -paid portion of the SaaS Services or term license fees paid to MRI for the affected MRI Software or -Service. SECTIONS 7.1. 7.2 AND 7.3 STATE MRI'S ENTIRE OBLIGATION TO CUENT AND CUENT'S SOLE AND EXCLUSIVE REMEDY FOR ANY CLAIM OF INFRINGEMENT. 7.4 Client Indemnification. Client shah defend MRI against ary claim, demand, suit, or proceeding made or brought against MRI by a third party arising out of or related to T) the Client Data; (if) Client's or AS Client Users' use of the Software or the SaaS Services in violation of the Agrecmcnt; (iii) Client or any Client User infringing or misapprupnating the Intellectual Property rights of a third party or violating applicable law; or liv) Client's or its Client Users' use or misuse of Lhe SufLwalc of SaaS SclviLc of Client's of iLs ClicoL Users' use of misuse of the Client Data (Including, without limitation, accessing, providing access, using or dislribuling Lhe CGenL DaLa) (each of lne above a "CIIcIIt CIaIm" ). Clteiit Shall Iiidemidfy MRI for all ddinagcs dud costs finally awarded against, and for reasonable attorneys' fees Incurred by, MRI III (ohmectlorl With any Client Clalin, or those costs and damages agreed to in a monetary settlement of such Client Claim; provided that MRI (a) promptly gives Client written notice of the Client Claim, (b) gives CUrnt solr control of fhr defrnse and setflculcnf of the CUcnt Claret (provided that Client may not settle or defend any Client Claim unless it unconditionally releases MRI of all liability), and (c) provides Client all reasonable assistan(e, if Client's cost. For purposes of This Section 7.4 only, "MRI" shall include MRI and its Affiliates, and each of their members, owners, officers, directors, employees, agents, successors and assigns. DISCLAIMERS AND LIMITATION OF LIABILITY, 8.1 Disclaimer of Warranties. THE WARRANTIES, IF ANY. SET FORTH IN II IL SCIILOULLS ARL IN LILU 01, AND MRI, I I S LIC,LNSORS AND SUPPLIERS EXPRESSLY DISCLAIM TO THE MAXIMUM EXTENT PERMITTED BY LAW, ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ORAL OR WRITTEN. INFRINGEMENT, (in) ANY WARRANTY THAT CONTENT AND/OR THIRD PARTY SOFTWARE WILL BE ACCURATE, RELIABLE AND ERROR -FREE AND Dv) ANY AND ALL IMPLIED WARRANTIES ARISING FROM STATUTE, COURSE OF DFAI ING, COI IRSF OF PFRFORMANCF OR I ISAGF OF TRAOF. NO ADVICF, STATEMENT OR INFORMATION GIVEN BY MRI, ITS AFFILIATES, CONTRACTORS OR EMPLOYEES SHALL CREATE OR CHANGE ANY WARRANTY PROVIDED HEREIN. ALTHOUGH CERTAIN OF THE SOFTWARE AND CONTENT MAY BE DESIGNED TO HELP CLIENTS COMPLY WITH APPLICABLE LAWS AND REGULATIONS, MRI HEREBY DISCLAIMS ALL WARRANTIES WITH RESPECT TO THE SUFFICIENCY OR ACCURACY OF THE SOFTWARE AND CONTENT IN THIS REGARD; MOREOVER, VARIOUS STATE LAWS MAY APPLY, AND THE SOFTWARE DOES NOT INCORPORATE STATE LAW REQUIREMENTS. ALL SUCH LAWS AND REGULATIONS MAY CHANGE FROM TIME TO TIME, AND Till SOFTWARE AND CONTENT MAY NOT BE UPDATED TO REFLECT SUCH CHANGES. CLIENT SHOULD CONSULT AN ATTORNEY WITH RESPECT TO COMPLIANCE WITH ALL APPUCABLE LAWS AND REGULATIONS. 8.2 Connection Over Internet. CLIENT ACKNOWLEDGES THAT USE OF OR CONNECTION TO THE INTERNET PROVIDES THE OPPORTUNITY FOR UNAUTHORIZED THIRD PARTIES TO CIRCUMVENT SECURITY PRECAUTIONS AND ILLEGALLY GAIN ACCESS TO THE SERVICES AND CUENT DATA. ACCORDINGLY, MRI CANNOT AND DOE$ NOT GUARANTY THE PRIVACY, SECURITY OR AUTHENTICITY OF ANY INFORMATION SO TRANSMITTED OVER OR STORED IN ANY SYSTEM CONNECTED TO THE INTERNET. 83 Limitation of Liability. TO TI IE FULLEST EXTENT PERMITTED BY LAW, MRI'S TOTAL LIABILITY (INCLUDING ATTORNEYS' FEES AWARDED UNDER THE AGREEMENT) TO CLIENT FOR ANY CLAIM BY CLIENT OR ANY THIRD PARTIES UNDER THE AGREEMENT, EXCLUDING LIABILITY PURSUANT TO SECTION 7 (Indemnification). WILL BE LIMITED TO (it WITH RESPECT TO PERPETUAL SOFTWARE LICENSES OR PROFESSIONAL SERVICES, THE FEES PAID BY CLIENT FOR THE SOFTWARE OR SERVICE WHICH IS THE SUBJECT MATTER OF THE CLAIM LESS 1/36 THEREOF FOR EACH MONTH OR PORI ION IHEREOF SINCE IHL COMMENCLMLNI DALE AND (II) WIIH RESPECT TO SAAS SERVICES, TERM LICENSES AND MAINTENANCE AND SUPPORT,THE FEES PAID FOR THE PRIOR TWELVE (12) MONTHS FOR THE SOFTWARE OR SERVICE WHICH IS THE SUBJECT MATTER OF THE CLAIM. 8.4 Third Party Software and Content. WITH RESPECT TO ANY THIRD PARTY SOFTWARE OR CONTENT PROVIDED TO CLIENT UNDER THE AGREEMENT, INCLUDING ANY MODULES OF THE SAAS SERVICES THAT MAY CONTAIN THIRD PARTY SOFTWARE OR CONTENT, CLIENT AGREES THAT (1) MRI MAY ADD AND/OR SUBSTITUTE FUNCTIONALLY EQUIVALENT PRODUCTS FOR ANY THIRD PARTY SOFTWARE IN THE EVENT OF PRODUCT UNAVAILABILITY, CND -OF -LIFE, OR Cl IANGES TO SOFTWARE REQUIREMENTS; (II) THE PROVISION OF CONTENT IS SUBJECT TO AVAILABILITY FROM THIRD PARTY CONTENT PROVIDERS AND MRI SHALL HAVE NO LIABILITY SHOULD SUCH CONTENT BECOME UNAVAILABLE FOR ANY REASON OR IS NO LONGER AVAILABLE UNDER REASONABLE COMMERCIAL TERMS; (1II) CLIENT'S USE OF ANY TI IIRD PARTY SOFTWARE SHALL BE SUBJECT TO. AND CLIENT AND USERS SHALL COMPLY WITH. THE AGREEMENT AND ANY APPLICABLE THIRD PARTY EULAS; (IV) MRI MAKES NO WARRANTY WITH RESPECT TO ANY THIRD PARTY SOFTWARE OR ANY CONTENT; AND (V) CLIENT'S SOLE REMEDY WITH RESPECT TO SUCH THIRD PARTY SOFTWARE SHALL BE PURSUANT TO THE ORIGINAL LICENSOR'S WARRANTY, IF ANY, TO MRI, TO THE EXTENT PERMITTED BY THE ORIGINAL LICENSOR. CONTENT AND THIRD PARTY SOFTWARE ARE MADE AVAILABLE ON AN "AS IS, As AVAILABLE" BASIS. 8.5 No Special Damages. 114140 EVENT WILL MRI OR CLIENT BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, FXFMPI ARV, PUNITIVF, TRFRI F OR CONSFQUFNTIAI DAMAGFS (INCLUDING, WITI OUT LIMITATION, LOSS OF BUSINESS, REVENUE, PROFITS, STAFF TIME, GOODWILL, USE, DATA, OR OTHER ECONOMIC ADVANTAGE), WHETHER BASED ON BREACH OF CONTRACT, BREACH OF WARRANTY, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE, WHETHER OR NOT THE PARTY HAS PREVIOUSLY BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. INCLUDING, WITHOUT LIMITATION, (1) ANY WARRANTY THAT ANY SOFTWARE, SAAS SERVICE, CONTENT, DEUVERABLES OR OTHER SERVICES 8.6 Time to Bring Claim. NO CLAIM ARISING OUT OF THE ARE ERROR -FREE OR WILL OPERATE WITHOUT INTERRUPTION OR THAT AGRELMLNI, REGARDLESS OF FORM, MAY BE BROUGHI AGAINSI IHL ALL ERRORS WILL RE CORRECTED; (ll) ANY AND ALL IMPLIED WARRANTIES OTI IEk PARTY MORE TI IAN TI IE SI IORTER OF ONE YEAR OR TI IE MINIMUM OF MERCHANT f' }�� �.1I AS OCCURRED. Qianr. HousinPY-1�rlf�-�F1tHA City of Santa Ana MRI Confrdennat3 - 36 1z?01 E 8.7 Survival. THIS SECTION SHALL SURVIVE FAILURE OF ANY EXCLUSIVE REMEDY. 9. TERM AND TERMINATION 9.1 Reserved. 9.2 Termination. Fither Party may terminate the Agreement including all Schedules immediately upon written OOLiCe in the event. LhnL the other Party commits a non -remediable material breach of the Aqreernent, of if the uthet Party fails to ewe any teniediable rnateiial breach or provicle a written plan of cure acceptable to the non -breaching Party within 30 days of being notified in writing of Such breach, except far breach of Section 3.1 (Fees and Payment Terms) which shall have a ten It 0) day cure period - Where a Party has a right to terminate the Agreement, the non -breaching Party rnaV at its discretion either terminate the Agreement or the applicable Schedule. Schedules that are not terminated shall continue in full force and effect under the terms of this Matter Agreement. 9.3 Post -Termination Obligations. Fulluwing termination of the Agreement or a Schedule (for whatever reason). Client shall certify that it has returned or destroyed all copies of the applicable Software, CurlLeoL and Cunfidential Infurnlaliun of MRI and acknuwledges LhaL iLs rights to use the Sarno are relinquished. Ter inination of this AgICCIMCvlt for any reason Shall not excuse Client's obligation to pay in toll any and all amOunLS due for Fees due and owing, nor Shall termination by MRI result in a refund of fees paid for Fees due and Owing. Client shall use its commercially reasonable efforts to remove all Client Data from any Suftwarc of SEES S'CIVILC pilot to tcrininatiun of the Agicctucnt or applicable Schedule. Client may engage MRI to assist Client in removing such Client Data at MRI's then standard rates. II any Client Data remains it, the Sufl.wmt of SaaS SelviLe mute than 3D days aftti the cffcct.ivc date of termination, MRI may, in its sole discretion and without notice, delete any and all Client Data. At any time before or after termination, if an Owner requests that any Client Data be provided directly to Such Owner, Client agrees that MRI may transfer Such Client Data directly to such owner, and that MRI Shall not be liable for any damages that result from the transfer of Client Data to an Owner. 10. GENERAL PROVISIONS 10.1 Publicity. Clirnt may not iar thr namr, logo or otherwisr of MRI ill airy pubIlLiLy wiLhoul- Lht pi iw wi iU.cu appiuvul of MRI, whiLh appiuvul shall not be unreasonably withheld. Each Party shall complete its review of any propnsrd ulalrrials or aclivilirs suhnlillcd by the other Party within five (5) business days of its receipt of such matenals from the other Party. Client agrees it will participate in a joint press release within odrty (30) days of the exedJtlon of this Master Agreement. 10.2 Force Majeure. Neither Party shalt incur any liability to the other Party on account of any loss, claim, damage or liability to the extent resuhirlf' front any delay ur failure to perform all or any part of this Agreement (except for payment obligations), if and to the extent such delay or failure ir caused, in whole or in part, by events, occurrences, or causes beyond Lhe Control and without any negligence on the part of the Party Seeking proteai0n under this Section. Such events, occurrenceS, or causes shall include, without limitation, acts of God, strikes, lockouts, oOLS, acts Of war, terrorism, earthquake, fire or explosions ("Force Majeure Events"). Dates by which performance obligations are sdleduled to he met will he extended for a period of time equal to the time lust duC to any delay su caused. 10.3 Reserved. 10.4 Notice of U.S. Government Restricted Rights. If the Client hereunder is the I1.S. Guvernmenl, or if the Software is acquired hereunder oil behalf of the U.S. Government with U.S. GOvel-iLT,cnt federal funding, notice is hereby given that the Software is Commercial Computer Software and documentation developed exclusively at private expense and is furnished as follows: "U.S. GOVERNMENT RESTRICTED RIGHTS. Software delivered suhjert to the FAR 52.227-19. All sae, duplication and disclosure of the Software by or on behalf of the U-S. Government shall be subject to this Agreement and the restrictions contained in siihsrction (c) of FAR 52.227-11), Commercial Computer Software - Restricted Rights (June 1987)". 10.5 Export. Client shall comply fully with all relevant export laws and regulalions of the United States and other apphcahle jurisdictions to ensure that the Software is not exported. directly or indirectly, in vinlatinn of thnse laws. 10.6 Nan-solicil-a Lion. Duriuv Lhe term of this Master Avr L'On1OI,L and for a period of one year following its LerminaLlOn, Client will not EmptOy or solicit for employment directly or through other parties, without the MRI'S w]lttcn pcnnlsslan, ally Indlvldual clfiployed by MRI. If a Party breaches this Section 10.6, such Party shall pay to the non -breaching Party a Burn equal to 150A, of fife hired employee's annual Salary while such employee was employed by the uou-brcacfnug Party, and such payment shall be made within 30 days of hiring such employee. 10.7 Compliance. During the term of this Master Agreement and for a period Of one year f011owing Its termination, Client Shall maintain cliff snake available to MRI records sufficient to permit MRI or an independent auditor retained by MRI to verify, upon ten days' written notice, Client's full compliance with the tenns and requirements Of the Agreement. SuCh audit shall be performed during regular business hours. It such verification princess reveals any material noncompliance by Client with the Agrcelnent, Client shalt reimburse MRI for the reasonable costs and expenses of Such verification process (including, but not limited to the fees of an independent auditor) incurred by MRI, and Client shall Promptly cure all nonconlptiance, including without limitation through the payment of any and all fees owed to MRI during the period of uoucOnipliaucc; provided, however, that the obligations under this Section do not constitute a waiver of MRI's termination rights. Client acknowledges that the Software may include a license manager compnucOL to track usage of Lhe Software and agrees not to impede, disable Or otherwise underinine Such license manager's operation. 10.8 Reserved. 10.9 Relationship. The Agreement is not intended to create a partnership, franchise, joint venture, agency, or a fiduciary Or employment relationship. Neither Party may bind the other Party or act III a manner which expresSCS or implies a rclatiunship other than that of independent contractor. 10.10 Invalidity. If any provision of the Agreement shall be held to be Invalfd, flhcgal or unanfarccahlc, the validity, Irgalffy and rnforrcnbihty Of the remainlrlg provisions shalt not in any way be affected or impaired. 10.11 Survival. The following provisions will Survive any termination or expiration of Lhe AgreemenL of a Schedule: SeCLiOnS 1, 2, 3, 4, 6.1, 6.2, 6.5. 7. 8. 9, and 10. 10.12 No Waiver. Any waiver of the provisions of the Agreement or of a Patty's ng]lts or relnedles Under tire Agreement uAUt be Ili wntlnq all(] include a signature by an authorized representative of each Party to be effective. Any such waiver shall constitute a waiver only with respect to tha sprc]fic nlattcx- dcscrihcd fn such wrlting and shall fn nu way impair the rights of the Party granting such waiver in any other respect or at any other time. The waiver by either of the Parties hereto of a breach or of A default under any of the provisions of the Agrennrht shall not hC construed as a waiver of any other breach or default of a similar nature, or as a waiver of any of such provisions, rights or privileges hereunder. The rights and remedies herein provided arc cumulative and none is exclusive of any other, or of any rights or remedies that any Party may otherwise have at law or in ec]uiW. Failure, neglech ur delay by a Party [O enforce the provisons of the AgrOP.]11e11t Or its rights or remedies at any time, shall not be construed and shall not be deemed to be a waiver of such Party's r ighls udder the Agreenlerll and shall [lot in any way at leC-t the validity of the whole or ally part of the Agreement arprejudice such Party's right to take subsequent action. 10.13 Entire Agreement, Client hereby releases and discharges MRI from ally and all Claims for relief, Causes Of aCLion, Of demands arising out of or in any way relating Lo any event, act or o¢ulTence prior to the [ommenremcht Date of [Ills Agreclnent. No mndlflrinnn to Hir Agreement will be binding unless in writing and includes a signature by an authorized representative of each Party. All pre-printed terms of any Chenf purchase older Or other Client huso less proccsnig doaluxmt shall have no effect. Client: HousinC�A1RhQ1P)-WC4 City of Santa Ana MRI Confidentiat3 — 37 raf4l,?9?01 E 10.14 No Third Party Beneficiaries. This Agreement is tot the benefit of the Parkes and their successors and pernlilled assigns, and cloes nol confer any lights of benefits on any third party, including any employee of a Party, any rlient of a Party, or any PmployPP of a rlient of i Party. Notwithstanding the above, the Parties acknowledge that all lights and benefits afforded to MRI under the Agreement shall apply equally to the owner of the Third Party Software with respect to the Third Party Software, and such third party is an intended third party beneficiaty of the Agreement, with respect to the Third Party Software. 10.15 Reserved. 10.16 Legal Fees and Costs. In the evenl of a dispule between the Parties fegafding the enforcement of the Agreement, the prevailing Party in such dispute will be entitled to collect from the other Party the prevaiting PortyS leasonoble Iegal fees and costs. 10.17 Reserved. 10.18 Headings and Drafting. The headings in the Agreement shall not he used to rmxtrue of interpret the Agreement. The Agreement shall not be construed in favor of or against a Party based on the author of the document. 10.19 Counterparts. The Master Agreement and each Schedule maybe ezec:uted in one or more cYrumerparls, each of which shall c:onslilute an enforceable original of the Agreement, and that facsimile and/of Pdf srnnnPd rnpiPs of signatures shall he as PffertivP and hindino m original signatures_ 10.20 Treatment in the Event of Bankruptcy of CQenL. The Par LIES acknowledge and agree that this Agreement, is an executory contract as such term Is defhred In ScctiOn 365 of the Lldted States Banki uptcy Code ("USBC). The Parties furthet acknowledge and agree that the Agreement does not provide a license of inlet ecWal property as delined In scctlan 101(3]) of the USBe aid that the pravlslois of Sectlun 365(iF) of the USBC are therefore not applicable. Client acknowledges that MRI Will be harried IT thli A8reemeflt was a"isneo to a conlpetltol, rllr'ect of indirect, or any other party whose use of MRI Software or Services Pursuant to the Agreement would be detrimental to the business and rights of MRI, and Cbenl hereby 8rants MRI Lhe right, Lo consent Lo any proposed assignment of this Agreement in a bankruptcy and that the rights of consent to the assignment provided in section 366(c)(1) of the USBC Shall be applicable Lo any proposed a"ignalenL of Lhi6 Agr'eemP-nL in airy bankruptcy, case filed by Client. END OF MASTER AGREEMENT Client: HousinC�A1RhQ1P)-WC4 City of Santa Ana MRI Confidential3 — 38 4416M?01 EXHIBIT 2 SAAS SERVICES SCHEDULE This SaaS Services Schedule is entered into between MRI Software LLC ("MRI") and the Client named in the Order Document, and the authorized rPprPSPntaflvp% of fhP Part1PC hPrPhy PSPrijtp fhix SaaS SpmirPS SrhPd111P to hP PffPfM1vP a% of the CommPnrPmPnf Date, a5 clPflnPd in the Order Document. DEFINITIONS Additional defined teens specific to this Schedule, "Frror a material failure of a hosted MRI Software to conform to its Functinnal Specifirations that n reported by Client to and rephrahle by MRI. "Malicious Code: computer viruses, worms, time bombs. Trojan horses and outer harmful or maUuous code, tiles, script, agenls or programs. 2. TERM; RENEWAL; TERMINATION. 2.1 Term and Renewal. SaaS Services commence on the Commencement Date and shall continue for the term set forth in the Agreement. For all Renewal Terms, Client shall be required to migrate to the then latest Upgrade of the hosted Software. The pricing fat the first twclvr (12) month%of any Rrnrwal Troll %hall fir providrd by MRI in writing no less than ninety (90) days ptiut to the end of the Initial Term at any Renewal Term. Notice to renew the Initial Term or any Renewal Term shall be given in accordance with section 9 of the AgienucuL end shall be deemed given upun detivcty by C1icIA Lu MRI. If Client takes no action to renew prior to the end of the teen, the Agreement shall expire. For the purposes of the pricing notice in this Section, email or first-class snail will suffice. The Initial Terin and Renewal Tel are collectively referred to as the "Term". 2.2 Termination. This Schedule may be terminated for cause by either party in accordance with Section 9 of the MaStct Agreement - Sections 1 and 2 hereof and the Surviving provisions of the Master Agreernenf shall survive expirelion or Ienninellon or Ihis SClledolP. Upon termination of the SaaS Services, and provided Client is not in breach at any Of its obligations under the Agreement, MRI wit[. Upon Client's written request and payment of the applicable fees, provide a backup copy of Client's Data (a then -decent fee schedule wit[ be provided upon requP%t)_ 3. GRANT OF USE Subject to the timely payment of the applicable fees, the tern), of this Schedule and the Master Agreement, MRI grants to Client, for the Term, the rigrt, to access and use the SaaS Services, as nuae fully described in the Order Document, solely for Client's internal business purposes. Such access and use is subject to the terns of the Master Agreement, in Eluding without limitation [Ile risuticlian5 sel forth in Section 6.2 of the Master Agreement. SaaS Services purchased may be accessed by or used Lo manage no more than the numbrr of Liernsc Mririr% sprcifird in fir Order Documrrll. Additional License Metrics may be purchased under an additional Order Document at [he pricing in ellecl at the lime [he additional License McfrIC% an- added, pnrraWd for the armmnder of thr then -current Tcrm. The added License Metrics shall have the same term as the then applicable Term. Unless stated otherwise in the Order Document, fees arc haled on Services and License MOTHCc pile IIAsed and Uof actual usage. 4. SERVICES 4.1 SaaS Environment. Clicnt is solely responsible for obtaining and maintaining at its own expense, all equipment needed to access the saas Services, i11CIUding Wl not limited to Client Internet ACC-es5. 4.2 SaaS Service Availability. MRI shall use conlnlcleally reasonable efforts to make the SaaS Services available twenty-four (24) hours a day, seven (7) days a week, except fur: (a) Scheduled Maintenance (b) Client Error Incidents; (c) Emergency Maintenance; (d) any unavailability caused by circumstances beyond MRI's reasonable control, including without limitatiun, Force Majeure Events; and (e) Internet service provider failures or delays. Scheduled Maintenance is defined as any maintenance performed during MRI's then -current starrdmd main Lcnance vinduws and any other rrminlcnance of which Client is given at least forty-eight (48) hours advance notice. MRI may perform maintenance on some or all of the SaaS Service in order to upgrade hardware or software that. operates or supports Lhc SooS Service, implement security measures, or address any other issues it deems appropriate for the continued operation of the SaaS Service. Cticnt Error IntidcnL Is dcfillcd as any SaaS SL'r Vlt L unavailability related to Client's applications, Client Data, or Client's equipment, or the acts or ornissions of any user oI the SaaS Service. Emergency Maintenance means downtime of the SaaS Service due to the application of urgent patches or fixes, or other urgent maintenance, recornrnended by MRI's vendors, (hat is perforrned ouLside of Scheduled Maintenance. Client acknowledges that MRI does not control the transfer of data over telecorneuoleatlUM facilities, including the Internet. MRI does not warrant secure operation of the SaaS Services or that it will be able to prevent third party disruptions of surh Services. Client acknowledges further that. the SaaS Services may be subjecL to liniitaLiuns, delays, and Other problems inherent in the use of the internet and electronic COmmOnications. MRI is not responsible for any delays, delivery failures, or other damage resulting from such problems. 4.3 Maintenance and Support Services. Subject to Client's timely payment of applicable SaaS Services tees, MRI will provide to Cleft the Mahltenance and Support serVlCeS tot the MaLltenance and! Support plan indicated in the Order Document, under MRI's Maintenance and Support policies in effect at the time the Services are provided for fhc Irvcl of SCrV1C,'x ordered. MRI shall manage and install all Updau>s and Upgrades of the hosted Software. Updates are provided when and if available, and MRI is Under no obligation to develop any fuLue Programs or functionaUly- MRI IS under no obligation to Provide Maintenance and Support with respect to: (i) Software that has been altered or modified by anyone Other than MRI Or its Iiecnsots; fill a tc[casc fur which MalntCnaoeC and Support has been discontinued; (in) Software used other than in accordance with the Dort mentation; (iv) dmrrepanrier. that do not significantly impair or affect Lhc operatiun of Lhc SaaS Servites; (v) ally sy,Lern, Of prugratru not Supplied by MRI; or (vi) Configurations. Client: Housi ip tI1O hure City of Santa Ana MRI Confidenti9 _ 39 8'100fzlp EXHIBIT 2 For the avoidance of doubt, Updates provided under Maintenance and Support services du not include custum development, Upgrades, or Configurations regardless of whether such Configurations arc performed by MRI or by Client. MRI reserves the neeht to charge Client for any reintegraLiun work required to make Configurations mmpa Lible with future versions/releases. If an Error was corrected or is not present in a more current version of the SOflware, MRI shall have nO Obligation to corrP.CL such Errors in prior' versions of the Software. Subject to timely payment of the applicable fees. Maintenance and Support is provided for all Software, unless otherwise noted in file Orcler Document; provided. however, that with respect to Third Party Software, MRI's obligation is limited to using commercially reasonable efforts Lo obtain Maintenance and Support. from Lhe third par Ly owner of such Software. 4.4 Backups and Restoration Services. Provided Client is not otherwise in breach of [lie Agreement, MRI will provide backup copies and/ur database testuratfun, upuw written request and subject to Client's payment of applicable fees for such service (a then -current fee schedule winbe provided upon request). 4.5 Exclusions. Fees for SaaS Services do not include impternentwitin, lrainins and other Professional Services, such as project management, conversion, report writing, and external systems interface development. It is Client's responsibility to ensure that all appropriate users receive Initial tralnhlg sehvic-e-s SufflUent to enable Client to effectively use the SaaS Services. Failure to do so could result in increased service call fees if such service calls are deemed excessive as a result of insufficient training, at MRI's discretion. 5, CERTAIN OBLIGATIONS 5.1 Passwords; Security. Cllcot Is respotahblc for mahotmnhnq the confidentiality of all passwords and for ensuring that each password is used only by Lhe authorized user. Client is entirely responsible for arty and all actfvftfes that occur wider Clients aceuu¢. Client agrees to immediately notify MRI of any unauthorized use of Clients account or any other breach of security known to Client MRI shall have no GabiGly for any loss or damage arising from Clients failure to comply Wit[, these requirements. MRI will maintain Client passwords as confidential and will riot disclose (hem to third parties. 5.2 Client Data. Client shall be solely responsible for the accuracy, quality, integrity and legality of Client Data and of the means by which it acquired Client Data. 5.3 Acceptable Use. Client acknuwledgcs and agrees that MRI does not monitor or police the content of communications or data of Client or its users tansrnitted through the Services, and that Mill shall not be responsible for the content of any such communications or transmissions. Client shall use the Services exclusively for authorized and legal purposes, consistent with all applicable laws and regulations. Client agrees not to post or upload any content or data which (a) is libelous, defamaLor y, obscene, pornographic, abusive, harassing or threatening; (b) contains Malicious Code; (c) violates the rights of others, such as data which infringes on any intellectual property rights Or v101a LeS any righL Of priyaCy Of pubh CiLy; Or (d) OLhcr'wisC viOVltcS any applicable law. Client further agrees not to interfere or disrupt networks connected to the Services, not to interfere with another enLiLyS use and enjOymeOL Of similar services and t0 Comply with art regulations, policies and procedures of networks connected to the SaaS Srr.,ccs. MRI may rcmnvr any vinlat ing controlpnslyd no Ihr Srrvirrs ur trah9nittcd through tile SCIVICCS, wlthaut rwtice to CUcht. MRI may suspend or terminate any user's access to the SaaS Services upon notice In the went that MRI masouahly drtcnnLres thaT such usrr has vholatrd the terms arid conditions of tills Schedule. 6. WARRANTIES AND DISCLAIMER 6.1 Limited Warranty. During the Term, MRI warrants that the hosted MRI Software supplied to ChenL as part of the SaaS Services will be free of Errors. 6.2 Remedies. It the hosted MRI Software does not perturm as warranted, MRI shall use Commercially reasonable efforts to correct such Errors, as Clients exclusive remedy for any claim under this warranty. Client shall promptly notify MRI in willing of its claim. Provided that such claim is cleternincd by MRI to hr MRI's responsihilny. MRI shall, within thirty (30) days of its receipt of Clients written notice, (i) correct such Error; (ii) Provide Client with a plan reasonably acceptable to Client for correcting the Error; or (fit) if neither (it. not (if) can be accomplished with reasonable commercial efforts from MRI, then MRI or Client rnav terminate I}he affected SaaS Service, and Client will be entitled to a refund of the pre -paid portion of the fees paid for thB atfBctBrl Sans SPI'vicB. ThB pl"PC2 frog warranty ctire shall ConsfltlAp MRI's enlire liahilily and Client's exChrSive. remedy (OrCure of 11)0 warranty set forth herein. If Client elects not to terminate the SaaS Service, Client waives all rights for the applicable warranty cure set forth herein. 6.3 Exclusions. MRI is not responsible for any claimed breach of any warranty set forth in Section 6.1 caused by: ill modifications made to the hosted MRI Software by anyouc other than MRI; (if) the combination, operation or use of the hosted MRI Software with any fterns riot certified by MRI; (fit) MRI's adherence to Client's specifications or instructions; (iv) Errors caused by u- related to intetilet connections; (v) Client deviating from the hosted MRI Software Operating procedures desu-ibed in the Doeumenlatiun; or (vi) Errors caused by Configurations. ....................................................................................................................................... END OF SAAS SERVICES SCHEDULE Clirnt: I Inusing Authority of thr City of Santa Ana MRI Confidrntial Pagr 8 of 10 City Council 3 — 40 51412021 EXHIBIT 2 M, This Professional Services Schedule is en Le red into between MRI SO Lwafe LLC (-MRI") and the Client named in the Order Document, and the authorized representatives of the Parties hereby execute this Professional Services Schedule to be effective as of the Commencement Date, as defined in the Order Dnniment. SERVICES 1.1 Work Authorizations/Statements of Work. MRI will per lotin the mutually agreed upon Pmfessional $mulct`s for Chrnt dc'm rihrd fu one or mote work otdets, work authorizations, statements of work or Order Documents (individually and collectively an "SOW") as the parries may agree to in writing from time to time. Each SOW, once executed by the authorized representatives of the parties, shall become a part of the AgreernenL. Except. a%expressly %Late(] elsewhere fit this Schedule, fit the event of a conflict between the terms of this Schedule and the terms of a SOW, the terms of this Schedule shall. prevail.. 1.2 Change Orders, Either party may propose a change order to add to, reduce or change the Professional Services ordered in the SOW. Each change order shall specify the change(s) to the Professional Services or drlivrrablrs, and thr rffrrt an thr timr of performance and an the fees owed to MRI, Clue to the change. Once executed by both parties, a change at shall become a part of the SOW. 1,3 Costs. Professional Services shall be provided on a time and materials ("T@M") basis at MRI'% T&M rates in effect at the time the Professional Services are performed, unless otherwise specified in the applicable Statement of Work. On a T&M engagement, if an eslirnaled total amount is stated in the applicable SOW, that amount fs solely a good faith estimate for Client's budgeting and MRI's resource scheduling purposes and nor a guarantee that the work will be completed for that amount. If Client wishes the MRI personnel to perform Professional Services at Client's site, Client agrees it shall give MRI at least two (2) weeks prior notice so MRI Carl mike. appmprii LP travel arrangPnleal S. Professional Services performed at Client's site shall be billed to Client in minimum increments of eight (R) hours per day per MRI employee. Fees are based on services, including training services, provided during normal MRI business hours, Monday through Friday, 8:00 a.m. - 7:00 p.m. LnraL time MRI holidays exdided). Professional Servires provided by MRI outside of nonnal MRI business hours will be subject to a premium service charge of one and one-half of the standard MRI list price for such services. Except as otherwise provided in Section 4.1 herein with respect to training serviees, if Client ear,ce[S a Professional Services engagement specified in an approved SOW less than ten (10) business days before the scheduled start data for ,uLh Professional Services, Client shaLL pay twenty-five percent (25ti) of the total estimated costs for Professional Services scheduled for performance between five (5) and ten (10) business days of MRI's receipt of Client's cancellation and fifty percent. (50%) of any Professional Services scheduled for performance within five (5) business days of such ieceiPL. 1,4 DelaysiCosts Overruns. In the event of any delay in Client's performance of any of the obligations set forth herein or any other delays caused by Client. the milestones, fees and date(s) set forth in the SOW shah be adjusted on o TfiM hasis as reasonably necessary to aceaunt for such delays, and the adjustment shall be made by change order in accordance with the provisions of Section 1.2 above. 2. PROJECT MANAGEMENT 2.1 Responsibility. MRI shall be responsible for securing, managing, scheduling, coordinating and supervising Mfd personnel, inducing its subc_onlradors, in performing the Professional Services. 2.2 Cooperation. Client shall provide MRI with good faith cooperation and access to such information, facilities, personnel and equipment as may be reasonably required by MRI in order to provide the Professional Services indudin but not limited to rovidin secunt connection with the Ptofessional Services. MRI shall be entitled to rely on all dreisinns and ipprnvals of Clirnt. 2.3 Subcontractors. MRI may subcontract or ddegaoT any walk under any SOW to any third party without Clients prior written consent: provided, however', thaL MRI shalt remain responsible for the performance, acts and omissions of any such subcontractors. 2.4 Client Data. Client Data must be provided to MRI in a format apprnved by MRI or additinnal rharge�. will apply. Client is respnnsihle for the accuracy and completeness of its information and Client Data. MRI's performance is dependent on Client's timely provision of accurate and complete resources and informatinn, including hit not limited to detailed, precise and clear specifications for any deliverables. 2.5 Remote Access. For installation of the System and for any Support of the System, Cherll shall ensure that MRI's assigned technical personnel are able to access the Systc ri remotely. Client shall be responsible for providing MRI access through any Client security rneaAureS. MRI alone shall decide whether access to the Jvstem is sufficient for installation purposes. Certain functionality of the System may require connections to or interaction with MRI after such System is running on Client's intiml,r rehigrees re, art(] Client ato permit and facilitate such connections and interaction. "System" means the total complement of hardware and Software furnished and/or maintained by MRI. 2.6 Testing of Projects. Client shall test any deliverables, and notify MRI of all deficiencies relative to the applicable specifications for such work set forth in the applicable SOW within thirty 130) calendar days following MRI's delivery of such deliverables to Client ("Notification Period") Subject to Client's timely notification and provided that the dcficicucics arc MRI', rc,puusibilily, MRI will IC-p,tfottn Llic apphLablL Ptofessional Services as required to meet the applicable specifications at no additional charge. 3. LICENSE AND OWNERSHIP 3.1 Ownership. Without prejudice to the provisions of Section 6 (Limited Rights and Ownership) of tale Master Agreement, all Intellectual Property including all topics thereof in any Software, other products furnished by MRI and the results of the Professional Services performed by MRI including (without limitation) all deliverables, documentation, training material,, Configurations and all IOtCRCLtual Pr uperty cmbudicd therein shall, subject to Section 3.2 below, vest solely and absolutely in MRI or its licensors. MRI may access the System remotely in order to copy CuufiguraLiuus to Lhc SufLwarc .0 to uthciwi,c cmurc Client's compliance with the terms of this Section 3.1 and the Agreement. 3.2 Limited License. MRI grants Client, upon full payment of the applicable fees and charges, during the. Term and suh]etlt to the restrictions set forth in Section 6.2 of the Master Agreement, a personal, nontransferable, nonexclusive, nonsublmensable, limited license to use the deliverables solely for Client's own internal business needs. 4. SUPPLEMENTAL TERMS FOR TRAINING SERVICES 4.1 Genera(. "Training Courses" are defined as: classroom -based, live virtual, indlor self -paced e-leaming courses provided by MRI'% training division called MRI Learning Solutions. Training Courses and their respective prices, policies and schedules are subject to change without notfcc. Training Courscs shall he provided by MRI to Ctfcnt pursuant to the terms of an SOW. "Named Users" as used herein are defined as Client g p g y Users listed in the SOW that shall be eligible to receive Training Courses. access, information, and software Interfaces to Client's applications, and 4.2 Cancellation and Transfer Policies. Client persunnul, as owy bu seasonably rrqucstcd by MRI fiuor Limc to q 2 1 Client Training Course Cancellation Policy. Client Training time. Client acknowledges and agrees that MRI's performance is Courses" means non-Pubtfdg uttered training Courses delivered dependent upon the timely and effective satisfaction of Client's specifically for Client and held at a mutually agreed upon nine and responsibilities hereunder and timely decisions and aoofovals of Client in Client: Housln",r_lErLY18t� City of Santa Ana MRI Confldentiak3 — 41 '6WA_ 2� Location. Client Training Courses may be delivered in a physical classroom at a location determined by mutual agreement or through a Live virtual classroom. Details regarding delivering Client Training Courses shall be set forth in an approved SOW. For Client Training Courses to be piuvided at an onsiLe Llasstount LhaL 'are canceled by Client: (i) ten (10) or more business days prior to the course start date, MRI will provide a full refund or credit; or (n) within the ten (10) business day period before the Course SLarL date, fifty percent (50%) Of the course fee will be forfeited and MRI will provide the remainder as a refund or credit. 4.2.2 Physical Classroom Public Training Course Cancellation Palicy. "Public Training Courses" means publicly offered Training Courses that. are not delivered specifically for Client Public Training Courses may be ddivcrod in a physical dasst from or through a live virtual classroom. Registered attendees for a physical classroom Public Training Course who raneel less than let) (10) business clays prior to the course start date WILL forfeit all applicable Training Course fees; however; transfers to another person are permitted up to one (1) business day prior to the course start date. In order to transfer a physical rlassroorn Public Training Course attendance spot, contact Mki Learning SOlutia's at 1.800.321.8770 ext. 1 or email. (ear ninenlmrisoftware. coin. MRI reserves the right to cancel any physical classroom Puhlic Training Course class up to ten (10) business days prior to the course start date for any reason. If MRI cancels a physical classroom Public Traininp Course days and is unable to reschedule [lie attendee, MRI will tefund to such attendee all applicable Training Course fees. MRI assumes no responsibility for non-refundable airline tickets or other expenses that may be incurred due to cancellation of a physical classroom Public Training Course. 4.2.3 Live Virtual Classroom Public Training Course Cancellation Policy, kegishvcd 1tn>ndecs for live virTIMI dasstoom Public Training Course program will receive a web-conferencing invitation on the day prior to the star( or the program. Registered attendees who cancel less than twenty-four (24) hours befae the scheduled start date and time will not be refunded any applicable Training Course tees. However, transfers to another pemon are permitted up to the starting time of the program. h, order to transfer a live virtual classroom Public Training Course attendance spot, contact MRI Learning Solutions at 1.800.321.8770 ext. 1 or email teaming@mrisoftware.corn. MRI reserves the right to cancel ar,y live virtual classroom Public Training Course class for any reason. It Mid cancels a Live virtual classroom Public Training Course class and is unable Lu reschedule the attendee, MRI will refund to such attendee all applicable Training Course fees. EXHIBIT 2 M, 4.2.4 Self -Paced e•I earning Training Course Cancellation Policy. "Self -Paced e-Learning Training Courses" means publicly offered Training Courses that have no set tins or location, and can be taken by any person at any time at the MRI Learning Solutions website. Self - Paced e-Leaininq Ttaininq Courses are nun -cancelable and applicable fees are non-refundable All sales of Self -Paced e-Learning Training Courses are final and non -transferable. 4,3 Use Limitations; Monitoring, Unless othorwtsc CxphCrtly agreed in writing by MRI, Client is only allowed user access rights to any Training Course up to the number of Narned Users Put chased as shown in At. executed SOW. Client and Named Users may not share access tights, or any Training Course content, with others and may only access the Training CnUISe for personal Lrairnri-. use as specifically pennil-Led. To the extcvrt permitted by Law, MRI may monitor, suspend Or ter minarr, Client's or any Named User's use of any Training Course and/or training account, or Lei nfnale this Schedule or the applicable SOW, or remove or disclose Lllent'S at any Named User's information In order to ensure CllOnt's and all Named Users' compliance with the Agreement or to otherwise protect MRI riuhts of riuhts of others. It C-lient or any Narned User dues not comply with the restrictions Set forth in this Sectinn 4.3, Client may bo charged additional fees equivalent to the resulting usage fees for the related services incurred. iiif 711z"irar] This Schedule may be terminated in accordance with Section 9 of the Master Agreement. Where the nun -breaching Par Ly has a righL to Leirnina Le this Schedule, the non -breaching Party may at its discretion either terminate this Schedule, nr the applicable SOW. Upon temmtiaton far airy reason, all worst products, uidudrng all drafts and works in progress of deliverables, shall be delivered to Client. Upon MRI's receipt of a notice of Lerrninalion, MRI shalt cease and shall cause any agent or subcontractor to cease all work under the applicable SOW and minimize any additional costs or reimbursable expenses unless otherwise- agreed in writing by Lhe Parities. Except as may be expressly set forth in the applicable SOW. Client shall pay MRI fees for services performed to the date of termination on a T&M basis together with any expenses reasonably incurred in conneclion Nlerewilii. The Paflies' obligations under this Section 5 and Section 3 of this Schedule and the surviving provisions of the Master Agreement shall. survive any Ierrminalion of this Schedule. END OF PROFESSIONAL SERVICES SCHEDULE Client: HouslnE ",r_,IErLY18t� City of Santa Ana MRI Confidentiak3 — 42 '6f4A90Q'f EXHIBIT 2 1 XHlt31"1 B Order Document {drtcrclurct .S'eparately Pagiraaterd,' City Council 3 — 43 5/4/2021 EXHIBIT 2 ORDER DOCUMENT #1 SAAS SERVICES SAAS SERVICES Products License Metric Quantity Territory Assistance Connect Named Users Up to 25 Named Users USA Units Up Lo 3.260 Units CUSLOrn Forms Named Users Up Lo 25 Named Users USA Units Up to 3,260 Units Direct Deposit Named Users Up Lo 25 Named Users USA Units Up to 2,260 Units FSS Pro Named Users Up to 25 Named Users USA Units Up to 3,)60 Units Named Users Up to 25 Named Users Housing Pro Units U1 to 3,260 Units USA iDIA (Integrated Document Imaging Archive) Named Users Up to 25 Named Users USA Units Up to 3.260 Units iFilc Named Users Up to )5 Named Users USA UniLS Up Lo 3.260 Units Inspections Named Users Up to 25 Named Users USA Units Up to 3,260 Units Occupancy Named Users Up to 25 Named Users USA Units Up Lo 3.260 Units 1099's and Payment History Named Users Up to 25 Named Users USA Units Up to 3,260 Units Payments Named Users Up Lo 25 Named Users USA Units Up to 3,260 Units Named Users Up to 25 Named Users Repnr[ Writer Units Up to 3,)60 Units USA Tenant Account Receivables (TARS) Named Users Up to 25 Named Users USA Units Up to 3,260 Units Waitlistlheck Named Users Up to 25 Named Users USA Units Up to 3,260 Units Waiting List Named Users Up to 25 Named Users USA Units Up to 3,260 Units HQS Mobile Inspections (Wad) Users Up to 2 Mobile Users USA Database Each Up to 1 Ptoductlou USA FEES, PAYMENT AND TEAM Initial Term Effective Date First Twelve Months SaaS Fees (1) (2)(3) Three (3) Years June 1, 2021 $52,793 (1) The Initlal Tetrn and any Renewal Term are non -cancelable, Subject to terrnlnatlon rights asset forth In the Agreement. (2) MRI may, at any time after the first twelve (12) months of the Effective Date listed above, and in its sole discretion, modify the Fees upon ninety (90) calendar day prior written notice to Client as outlined in the Consultant Agreement. Payment Terms: Fees are due in U.S. Dollars annually in advance. Initial payment must be received by MRI prior to the Effective Date and any Renewal I erm: MRI has no obligation to provide SaaS Services until such payment is received. Client_• 9 �rn..,y s rn,. my ,.r c....a n..a ..m r,.1.61111.r,.i uo .^ +,•f 2 City Council 3 — 44 5/4/2021 EXHIBIT 2 Definitions A "Unit" is a space rented or designed to be rented to a tenant for residential use and is characterized by a unique tenant, a unique mailing address, or a unique physical location. "Units" include without limitation AHR Units and DHCR Units. A "Named User" license permits Clients to assign User IDs only to a tixed number or specifically named employee users or Affiliates, and simultaneous access to the licensed Program is limited to those specific named users. A "Concurrent User" License permits Client to assign an unlimited number of User IDs to its employees or Affiliates' employees, but simultaneous access to the SaaS Services is limited to the number of authorized concurrent licenses paid for and held by the Client. Use Riehts: The license Lo use Lhe SaaS Service is priced based on Client's License Metrics as of Lhe Effective Dale of this Order Document and allows Client to rise the Software to manage up to the quantity set forth above. Additional licenses must be purchased by Client in the event the number of actual License Metrics exceeds such licensed quantity. If Client's actual License Metrics exceed such licensed quantity, then MRI reserves the richt to charge a premium fee for any additional License Metric used. The cost for these additional licenses will be at MRI's then -current fees. There shall be no fees adjustments or refunds for any actual License Metrics decreases. Fees (other than monthly user access fees) are based on quantity purchased, not usage. Self -Certification: Without prejudice to MRI's audit rights pursuant to the Agreement, Client will, by June 11' of each year, document and certify that. use of the SaaS Services is in full conformity with the use rights granted hereunder. The Self - Certification Document can be found in the MRI Terms and Conditions. MAINTENANCE AND TECHNICAL SUPPORT Maintenance Level: ® Standard Fees: Maintenance is included in the SaaS Fees. Desienated Su000rt Contacts: Maintenance and Support may only be requested by the two (2) Designated Support Contacts named below who must have successfully completed MRI's standard training course prior to (i) logging case requests; or (if) receiving status updates on cases. Client may change these Designated Support Contacts from time to time, to other Client employees, by promptly delivering in writing to MRI the names and contact information of the new Designated Support Contacts (email is sufficient). The SaaS Services fees arc related to the number of contacts; accesS to support by any additional contacts will be Subject to additional fees. One (1) Designated Support Contact must be the Administrator listed above in this Order Document. The initial Designated Support Contacts of Client are. Name: Name: Title Title - Phone: Phone: Address: Address: Email: Email: Client_ 9 A..1h .... .y s .h.. my „r C. ,. . ..m r,.,.r,.i..,.r,a u, .^ 0,•f 2 City Council 3 — 45 5/4/2021 EXHIBIT 2 EXHIBIT B HOUSING AUTHORITY OF THE CITY OF SANTA ANA PROPOSALS jRFP) FOR HOUSING AUTHORITY MANAGEMENT SOFTWARE PROPOSERS STATEMENT AND QUALIFICATION FEE SCHEDULE Certification - I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Exhibit A) and I am familiar with the scope of work requirements. I am familiar with all of the existing conditions and limitations that may impact work requests. I. understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the Housing Authority for clarification prior to the submission of my proposal. MRI recognizes that Housing Authority of the City of Santa Ana has several contractual provisions within the Request for Proposal. However, MRI and Housing Authority of the City of Santa Ana have already negotiated and agreed upon terms which govern the relationship, as outlined in the executed Consultant Agreement, along with its various exhibits and schedules, with. an effective date of June 1, 2020 (collectively, the "Agreement'). As such, future solution purchases will adhere to that Agreement. FEE SCHEDULE Please provide a list of professional software services and forms that the firin has provided and can provide to the Housing Authority, along with a proposed fee schedule. MRI Software LLC LEGAL NAME OF COMPANY PHONE AND FAX NUMBER 28925 Fountalh Parkway Solon, Ohio 44139 800-321.8770 BUSINES Roman T PRINTED 1.^1[Hdfa1 OF AUTHORIZED AGENT rsKigdil FEDERAL ID NO. (IF APPLICABLE) TITLE 03/1912021 legal@m rlsoftware DATE E-MAIL ADDRESS CONTRACTOR LICENSE NO. (IF APPLICABLE) ..............----'------'-"-""'....."""—'-................. ..... _.... .............................. ....................................................... _............................ Housing Authority of the GTy of Santa Ana KPgeest for Proposals for Housing Management Software Page 1. City Council q"Al46 ! I, l P"I+`tyof I, .,�[ oaIf. 0"n, f dpf lfd .p' 5/4/2021 EXHIBIT 2 W-T-W �1_ Me As a market leader in the real estate software industry with more than 48 years of experience, MRI is able to leverage an extensive knowledge base to deliver products that set the standard for affordable housing management. Included below is a price quotation to add the following products: Estimated Software Pricing Existing Housing Pro 9.3 System In The Cloud 25 Users, 2 Mobile Inspection Users, Up to 3,260 Units Modules Include: Waiting List, Occupancy, iFile, iDIA, Inspections, HQS Mobile Inspections, Tenant's Accounts Recievable, Payments, Direct Deposit, 1099's and Payment History, FSS Pro, Report Writer, Custom Forms Web Portals Include: WaitistCheck, Assistance Connect Software Estimated Total $52,792.58 This new three-year contract will apply across all your existing modules and users including. • Wailing List • Occupancy • iFile • FSS Pro • iDIA • Inspections • HQS Mobile Inspections • Payments Pricing is based on licensing metrics as follows: 25 Users • 2 Mobile Inspections User • 3,260 Units • 1099's and Payment History • Tenants Accounts Receivable (TAR's) • Direct Deposit • Report Writer • Configurable Forms • WaitlistCheck • Assistance Connect The software fees above reoccur annually. Per the RFP, MRI is proposing a three (3) year contract options that cap the maximum increase for software fees at 5%. There are no implementation fees being proposed at this time. City Council "'%'34F 47 f' , , I , , t y o f , .'�[ oa I . p�,, it , i ;dP f Ii,I , p , 5/4/2021 EXHIBIT 2 Statement Of,work 01,1ifachedSePalw1e/vPa blatedj City Council 3 — 48 5/4/2021 EXHIBIT 2 Statement of Work - Work Authorization This Order Document and Statement of Work incorporates by referenre and is governed by the terms and conditions of the Master Agreement ("Agreement') with an effective date of June 1, 2021 and the Schedule for Professional Services of swine date between HAPPY Software, an MRI Software Company ("MRI") and City of Santa Ana Community Development Agency ("Client') and is effective as of June 1, 2021 ("Effective Date."). Client Name City of Santa Ana Community Development Agency Client is engaging MRI Software ("MRI") to deliver services associated with the following: New Cloud User License and Workspace — S users • Project Management o User Account Information Collection and Delivery o User Workspace Creation and Setup o Assistance with Workspace Installation c Update of Activation Code in Housing Pro to reflect updated user count o Update of FileMaker Connections in Admin Console U I7:i■71xi��7�l:7��IU�^1���.y 1. Before MRI is able to secure/book any MRI resources, provide any targeted start and end dates for project the following must be in place. 1.1. The Master Agreement has been signed by both MRI and the Client, if applicable. 1.2. Statement of Work has been signed by the Client and returned to MRI. 2. Training and documentation will be provided in English only. 3. New computer meets all of the Hardware and Network Requirements. 4. Client needs to provide MRI with the appropriate information on the now users before Workspaces can be created. 1 . MRI has endeavored to provide the most accurate estimates for each deliverahle and activity based on the scope and budgetary information provided by the Client. All estimates at this stage in the project are subject to change. 2. The project timcscalcs for this project and related deliverables must be formally communicated and agreed upon by MRI and the Client- 3. MRI maintains a backlog of project work; therefore the start date for this project will be subject to MRI availability at the time this Statement of Work is executed. Should you have any questions regarding expected backlog for this project, please contact MRI aL gpsrequesLS@rnrisollware.com. City Council �'I 3 49 5/4/2021 EXHIBIT 2 Statement of WorkWork Authorization PROJECT ASSUMPTIONS 1. Client is responsible for providing all necessary documentation for MRI to complete the Scope- 2. Administrative user to assist in completing workspace installation will be available. fii:�S� CRI 0:T0111aTilfiyiyia ^l 1. Changes to this Statement of Work ("SOW' ) may be requested at any time, by either party. As any proposed changes to the original scope of work might affect the price, schedule changes that incur additional tees or alter the terms of the original SOW must be approved by either party's Project Manager(s) or project representative(s) "prior" to amending the SOW and implementing the change. 2. This procedure will be used by the Parties to control changes to the SOW and changes to any previously approved services or deliverables. 3. The requesting party will Create a Project Change Request ("PCR") which will serve as the vehicle for Communicating the change. The PCR shall describe the change, the justification for the change, additional fees, and the impact such changes will have on the SOW. 4. The requesting party's designated Project Manager or project representative will review the proposed change and determine whether to submit the request to the other party. S. The Parties will review the proposed PCR and will either approve, investigate it further or reject the PCR. The PCR will not be binding until signed by both parties. 1. Once the Statement of Work is executed, the assigned MRI Consultant(s) will be scheduled with project personnel at a mutually agreeable timetable. 2. Efforts around change management, business process reengineering, or project management of Client resources is considered out of scope. 3. Mutually agreed changes to specifications, whether before, during or after MIRI's performance will be handled by processing a Project Change Request. 4. MRI reserves the right to charge Client a cancellation tee in accordance with the Agreement, it applicable. S. Client shall make reasonable business efforts to deliver a stable network and computing environment prior to any services engagement. G. Client and MRI will work together to resolve all issues related to the project in a timely fashion. 7. Client and MRI will communicate any changes in schedule, availability of project personnel, hardware, software., resources or facllltles related to the project withln a reasonable tirnefrarne In advance of scheduled engagements. 8. Client will manage the availability of appropriate personnel for knowledge transfer as well as decision -making and escalation of decisions. 9. I he project team may adjust the master project plan based on real world findings and the Client's ability to secure rpquired resnurces. 10. Location of work will be remote only. The professional services fee estimates are for MRI resources (or affiliates). Client understands that professional services fees are due as incurred and are billed on a monthly basis at month end. Client agrees to pay invoices in accordance with invoice termsfailure to pay invoices will be handled in accordance with MRI collections policy. City Council 0 g r(�����, 3 50 5/4/2021 EXHIBIT 2 Statement of WorkWork Authorization 1. MRI fpps for the sfbpp of Sprvirps dpacribpd in This Statpmp tit of Wnrk will by hillpd to the Client on a timp and materials basis for hourly services and at a fixed fee basis for all other services per the Pricing Schedule below. 2. Project Change Requests (aka Change Orders) executed against this contract will be contracted at MRI standard rates. 3. Future work for MRI services not associated with this Statement of Work will be contracted at standard rates. 4. The msL esLirnaLes are for MRI personnel or affilia Les and will be billed on a rnonLhly basis. 5. Identified SCHEDULES may be modified at the request and/or acceptance of Client. Changes in SCOPE will require PCR (sec above). G. Client is responsible for payment of any applicable taxes. MRI will invoice Client for any applicable taxes in connection with performance of the Statement of Work in accordance with the Agreement. Any tax amounts are over and above the fees and expenses noted in the Statement of Work and any amounts prepaid hereunder for such fees and expenses will not be applied to taxes due. 7. Pricing schedule is subject to change if Statement of Work is not signed within 30 days of creation date at which time this Statement of Work will expire. PRICING SCHEDULE roki b�LIVI kkgLtnn kAtt ;; , q(JANTItY 0 ,IT t?STs sekv' GE REFS Installation $17S S users Fixed One Time Fee $87S /=Ic1:7AlALL4Ia►I 0MM&fL7iIak1[4wiT101:7 With my signature below and on behalf of Client, Client hereby, (i) acknowledges that this entire Statement of Work (all pages) accurately documents the terms of the work agreed upon by Client and MRI; (it) approves this Statement of Work as issued; (iii) gives approval for commencement of work as specified herein; and (iv) acknowledges that these terms are subject to change in accordance with any modification to the scope of work. City of Santa Ana Community Development Agency_ Signature: ` Narne: Date: • 11 d-pares regobed GeI,J City Council 0 4p %I, 3 - 51 5/4/2021 Housing Authority https://www.santa-ana.org/cd Item # 4 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: Agreement with Nan McKay and Associates, LLC AGENDA TITLE: Approve an Agreement with Nan McKay and Associates, LLC for Housing Authority Case Management Services RECOMMENDED ACTION Authorize the Executive Director of the Housing Authority to execute an agreement with Nan McKay and Associates, Inc. to provide case management services for the Housing Authority beginning May 4, 2021 and expiring April 30, 2024, in an amount not to exceed $300,000 over a three-year period, subject to non -substantive changes approved by the Executive Director and Authority General Counsel. DISCUSSION On February 22, 2021, the Housing Authority issued a Request for Proposals (RFP # 21- 026) for case management services for the Housing Authority from professional and certified providers (Exhibit 1). Responses to the RFP were accepted until March 8, 2021. The RFP was e-mailed to six different providers and publicized through PlanetBids to any firm that expressed an interest. The Housing Authority received one (1) proposal prior to the deadline. Many providers are working with other housing authorities and decided not to respond to the RFP. The firm that submitted a proposal is Nan McKay and Associates, Inc. Staff formed a Review Panel consisting of three (3) employees from the Housing Authority to review the proposal and used the Scoring and Selection Criteria from the RFP to make a decision whether or not to recommend the proposal to the Housing Authority Board for approval. Following this RFP process, the Review Panel is recommending the Housing Authority to execute an agreement with Nan McKay and Associates, Inc. to provide case management services for the Housing Authority beginning May 4, 2021 and expiring April 30, 2024 (Exhibit 2). The total cost of the agreement over a three-year period is not to exceed $300,000. Staff is recommending approval of an agreement with Nan McKay and Associates for various reasons. For four decades, Nan McKay has been one of the top training partners for housing authorities throughout the United States. Staff from the U.S. Department of Housing and Urban Development (HUD) rely upon Nan McKay for various certifications City Council 4-1 5/4/2021 Agreement with Nan McKay and Associates, LLC May 4, 2021 Page 2 and trainings. The company has real -life professional experience in the field and understands operational best practices and the complexities of HUD's federal regulations. Nan McKay and Associates, Inc. provides consultant services for various housing authorities across the country, including large agencies like the San Francisco Housing Authority and Chicago Housing Authority, especially when staffing shortages exist. Nan McKay and Associates, Inc. has also boon providing temporary case management services for the Housing Authority since November 2020. The Housing Authority has had two staff members leave in the last calendar year, including one retirement, and needs assistance from an outside consultant to continue its operations. Due to staff retirements and staff being out of the office on extended leave, the Housing Authority needs an agreement in place to call upon when services are needed to maintain its operations. Nan McKay and Associates, Inc. is a trusted consultant with decades of experience assisting housing authorities across the country to administer the Housing Choice Voucher Program and Low -Income Public Housing Program. This agreement will build upon lire temporary case management services that have been provided since November and ensure that Housing Authority operations continue uninterrupted on behalf of the community. FISCAL IMPACT Funding for the Nan McKay and Associates agreement is available in the FY 2020-2021 Housing Authority Other Contractual Services account (no. 14018760-62300) and will be hudneted in future fiscal vears for exnenditure as shnwn in the tnhle helnw- Fiscal Year Accounting Unit Accounting Unit, Account Amount - Account# Description FY 20-21 14018760-62300 Housing Authority -Vouchers ADM, 16,700 (May -June) Contract Services -Professional FY 21-22 14018760-62300 Housing Authority -Vouchers ADM, S 100,000 (July -June) Contract Services -Professional FY 22-23 14018760-62300 Housing Authority -Vouchers ADM, $ 100,000 (July -June) Contract Services -Professional rY 23-24 14018760-62300 1 lousing Authority -Vouchers ADM, g 83,300 (July -April) Contract Services -Professional Total Contract Amount $ 300,000 The above spending plan is only an estimate and is subject to change. EXHIBITS) 1. RFP for Case Management Services for the Housing Authority 2. Agreement with Nan McKay and Associates, Inc. Submitted By: Judson Brown, Housing Division Manager City Council 4-2 5/4/2021 EXHIBIT 1 REQUEST FOR PROPOSALS FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM HOUSING AUTHORITY OF THE CITY OF SANTA ANA Issue Date: Proposal Due Date: Community Development Agency 20 Civic Center Plaza Santa Ana, CA 92701 Judson Brown Housing Division Manager (714) 667-2241 Office (714) 667-2225 Fax ihrowni�santa-ana.ora KEY RFP DATES Monday February 22, 2021 Monday March 8, 2021 at 5:00 P.M. Housing Authority of the City of Santa Ana City Council Page 1 5/4/2021 EXHIBIT 1 NOTICE INVITING PROPOSALS NOTICE IS I IEREBY GIVEN that proposals will be received from qualified firms to provide Case Management Services for the Housing Choice Voucher Program administered by the Housing Authority of the City of Santa Ana (CA093). Responses to this Request for Proposals (RFP) will be accepted until Monday. March 8. 2021 at 5:00 P.M. For further information, please contact Judson Brown, Housing Division Manager, at (714) 667-2241 or jbrown(c08nta-nna.or(j. E-MAIL, MAILED, DELIVERED BY HAND or COURIERED proposals will be accepted as follows. Housing Authority of the City of Santa Ana Community Development Agency (601 Floor) Attention: Judson Brown, Housing Division Manager 20 Civic Center Plaza, M-26 Santa Ana, CA 92701 E-mail Proposals to: ibrownra)santa-ana.org It is the responsibility of the proposer to see that any proposals submitted shall have sufficient time to be received by the Housing Authority of the City of Santa Ana prior to the proposal due date and time. Questions regarding this Request for Proposals shall be made in wriling via e-mail to Judson Brown at Jbrowneisanla- anaorg- The receiving time at the Front Desk of the City of Santa Ana, Community Development Agency, 611 Floor, 20 Civic Center Plaza, Santa Ana CA 92701 will be the aovernina time for the receipt of physical proposals. The receiving time that the proposal sent by e-mail will be the governing time for the receipt of proposals sent by e-mail. Late Proposals will NOT be considered and will be returned to the proposer unopened. FACSIMILE PROPOSALS WILL NOT BE ACCEPTED ONLY SEALED RFP RESPONSES ARE ACCEPTABLE DO NOT FAX RFP RESPONSES Housing Authority of the City of Santa Ana City Council 2 5/4/2021 Page EXHIBIT 1 HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES PAGE I. INTRODUCTION 4 II. PERIOD OF CONTRACT 4 III. SCOPE OF SERVICES 4 IV. GENERAL INFORMATION 4 V. CONTRACTOR RESPONSIBILITIES 5 VI. INSURANCE REQUIREMENTS AND CITY BUSINESS LICENSE 5 VII. RULES FOR PROPOSALS 6 VIIL E-MAIL COMMUNICATIONS AND INTERPRETATIONS / 6 CLARIFICATIONS IX. ADDENDA 6 X. SUBMITTAL INFORMATION AND DEADLINE 6 XI. MINIMUM QUALIFICATIONS 6 XII. SUBMITTAL REQUIREMENTS 6 XIII. CONTRACTOR SELECTION — SCORING AND EVALUATION S XIV. PUBLIC RECORDS 9 XV. FILING A PROTEST 9 EXHIBIT A SCOPE OF SERVICES 10 EXHIBIT B PROPOSERS STATEMENT AND FEE SCHEDULE 12 EXHIBIT C ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL 13 GENERAL LIABILITY AND BUSINESS AUTOMOBILE POLICIES EXHIBIT D REFERENCES AND RELEVANT WORK HISTORY 14 EXHIBIT E PROPOSAL AND CONTRACT AGREEMENT — PROPOSERS 16 STATEMENT EXHIBIT F PROPOSAL AND CONTRACT AGREEMENT — CERTIFICATION 17 OF NONDISCRIMINATION BY CONTRACTOR EXHIBIT G NON -COLLUSION AFFIDAVIT 19 Housing Authority of the City of Santa Ana City Council 3 5/4/2021 Page EXHIBIT 1 HOUSING AUTHORITY OF THE CITY OF SANTA ANA REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM INTRODUCTION I he Housing Authority of the City of Santa Ana (CA093) is issuing this Request for Proposals (RFP) for a professional company who will provide case management services for the Housing Choice Voucher Program administered by the Housing Authority. The Housing Authority of the City of Santa Ana (SAHA) provides rental assistance in the form of Housing Choice Vouchers (HCV), Project Based Vouchers, Mainstream Vouchers, Foster Youth to Independence Vouchers, and Veterans Affairs Supportive Housing vouchers to 3,160 low-income households. These vouchers enable housing authority participants and applicants to rent from property owners in the private rental market. I. PERIOD OF CONTRACT Unless earlier terminated as allowed for in the Agreement, agreement term shall be for a period of three (3) years for a maximum contract amount of $300,000. The agreement term is anticipated to commence after selection of the Contractor and upon receipt and approval of all required insurance documents. II. SCOPE OF SERVICES The scope of services is provided under EXHIBIT A — SCOPE OF SERVICES III. GENERAL INFORMATION A. The Perm of the contract will begin after the contract is awarded by the Housing Authority. B. When determined appropriate, the Housing Authority will provide information in its possession relevant to preparation of required information in the RFP. The Housing Authority will provide only the staff assistance and documentation specifically referred to herein. C. The Contractor shall be responsible for retaining data, records and documentation for the preparation of the required information. These materials shall be made available to the Housing Authority as requested by the Housing Authority. D. This RFP does not commit the Housing Authority to pay costs incurred in preparation of a response to this RFP. All costs incurred in the preparation of the proposal, the submission of additional information and/or any aspect of a proposal prior to the award of a written contract will be borne by the respondent. The Housing Authority reserves the right to accept or reject the combined or separate components of a proposal in part of in its entirety or to waive any informality or technical defect in a proposal. Housing Authority of the City of Santa Ana City Council 5/4/2021 Page 4 EXHIBIT 1 E. All data, documents and other products used, developed or produced during response preparation of the RFP will become property of the Housing Authority. All responses to the RFP shall become property of the Housing Authority. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act. F. The Housing Authority reserves the right to reject, replace and approve any and all subcontractors. All subcontractor(s) shall be identified in the response to the RFP and the Housing Authority reserves the right to reject any subcontractor(s). Subcontractor(s) shall be responsibility of the prime Contractor and the Housing Authority shall assume no liability of such subcontractor(s). IV. CONTRACTOR RESPONSIBILITIES The selected Contractor will assume responsibilities for all services in its proposal. The selected Contractor shall identify a sole point of contact for contractual matters, including payment of any and all charges resulting from the Agreement. V. INSURANCE REQUIREMENTS AND CITY BUSINESS LICENSE CGL (Commercial General Liability) — CGL insurance is required when the Contractor will be performing services on City property or receiving City grant funds. A $1,000,000.00 per occurrence with $2,000,000.00 in the aggregate policy is required. The certificate of insurance must provide 30 Day Notice of cancellation or material reduction in policy limits. Additionally, the City or Santa Ana, the Housing Authority of the City of Santa Ana, its officers, agents, volunteers and employees shall be named as an additional insured via an additional insured endorsement. I he additional insured endorsement, attached as Exhibit C, shall provide that the Contractor's insurance is primary to any insurance or self- insurance carried by the City as well as a separation of insured's clause. Automobile - Automobile insurance is required when the Contractor will be driving from one City site to another City site in a non -City vehicle. A $1,000,000.00 per occurrence policy for owned, hired and non -owned automobiles is required. Worker's Compensation — In accordance with the provisions of Section 3300 of the California Labor Code, any Contractor with employees must maintain employer's liability insurance with limits not less than $1,000,000.00 per accident. Worker's Compensation is not required for sole proprietors or a partnership with no employees. However, these Consultants must complete a "Worker's Compensation Declaration." This form may be obtained from City staff. Professional Liability— Professional liability insurance is required for state licensed professionals, such as, engineers, architects, CPAs, attorneys and medical professionals. A $1,000,000.00 policy is required. City Business License - The selected proposer shall be required to obtain a City of Santa Ana Business license within thirty (30) days of selection and must provide a copy to the City project manager or designee prior to commencing any work in Santa Ana. Housing Authority of the City of Santa Ana City Council 5 5/4/2021 Page EXHIBIT 1 VI. RULES FOR PROPOSALS The signer of the RFP must declare in writing that the only person, persons, company or parties interested in the proposal as principals are named therein; that the proposal is made without collusion with any other person, persons, company or parties submitting a proposal; that it is in all respects fair and in good faith without collusion or fraud; and, that the signer of the proposal has full authority to bind the proposer (EXHIBIT H). VII. E-MAIL COMMUNICATIONS AND INTERPRETATIONS / CLARIFICATIONS To facilitate the RFP process, proposers are required to monitor and respond to e-mail requests within 48 hours. The Housing Authority will make no oral interpretations to any proposer as to the meaning of requirements identified herein including the Scope of Services. Every request for such an interpretation must be made in writing via e-mail to Judson Brown, Housing Division Manager at ibrown(a),santa ana.ora. Vill. ADDENDA If clarification or interpretation of this RFP is considered necessary by the Housing Authority, a written addendum shall be issued and the information will be posted on the City's website at http://www.santa- ana.org/bids-rfos/. It is the responsibility of each proposer to periodically check the City's website to ensure that they have received and reviewed any and all addenda to this RFP. IX. SUBMITTAL INFORMATION AND DEADLINE Proposals are due to the Housing Authority of the City of Santa Ana, at the date, time and location set forth on the Notice Inviting Proposals. Faxed and E-mailed proposals will not be accepted. X. MINIMUM QUALIFICATIONS The following are the minimum qualifications to be considered as an eligible candidate to submit proposals for the requested services described in this RFP. The Contractor must have previous experience in performing services similar to those requested in the Scope of Work. Contractor is encouraged to submit relevant and concise information regarding their experience and qualifications to perform the requested services. XI. SUBMITTAL REQUIREMENTS The RFP is intended to assess and evaluate each firm's capabilities as they apply to the proposed services. Each firm must address each of the following items in its response to the RFP: 1) Statement of Qualifications — In order to maintain uniformity, the Statement of Qualifications must be limited to a MAXIMUM OF 10 PAGES (excluding front and back covers). The page limitation includes all appendices, attachments and supplemental information. The following information is required: Housing Authority of the City of Santa Ana City Council 6 5/4/2021 Page EXHIBIT 1 1. Cover Letter. A letter signed by a principal or authorized representative who can make legally binding commitments for the entity. 2. Organizational Background: A brief description of the contractor's firm, including the year the firm was established, type of organization (partnership, corporation, etc.), and a statement of the firm's qualifications for performing the subject services. 3. Scope of Services. Include a detailed description on how services will be provided to meet the requirements of Exhibit A — Scope of Services. Identify any resources expected to be provided by the Housing Authority, including their roles and responsibilities. The Scope of Services should link directly to your fee schedule and be easily understandable relative to your fee schedule. 4. Firm or Personnel Experience: A profile of the firm's experience, personnel and history relating to the scope of work identified in Exhibit A — Scope of Services. Include a description of the company profile, including range of the firm's capabilities and service. In addition, provide the names of all personnel who will be assigned to this project, their education and previous experience. 5. Relevant Experience: List of the Public Housing Authorities that your firm or personnel have provided case management services within the last five (5) years. Information should include project description, year service was provided, client name, along with a person to contact and their telephone number. 6. Sub consultants: Identification is required of any contemplated sub consultants to be used, with the identification of personnel to be assigned, their qualifications, education, and representative experience. 7. References: I he Contractor shall submit a list of at least three references comprised of a listing of work similar to that identified in the RFP. 8. Fee Schedule: The fee schedule shall include the hourly rates for each personnel category to be used on the project and/or fee for each type of service. Personnel hourly rates shall reflect all costs for office overhead, including phones, cellular phones, vehicles, mileage and other direct and indirect costs. This fee schedule shall reflect all anticipated fee increases such as (but not limited to): Equipment purchases or subscription costs, internet and data support costs, ongoing support costs, professional training/certified costs for continued education/training, etc. In addition, the fee schedule should include any optional services. 2) EXHIBIT B — PROPOSERS STATEMENT AND PROPOSAL ITEM PRICING 3) EXHIBIT C—ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL GENERAL LIABILITY POLICY (NOT REQUIRED UNTIL AFTER CONTRACTOR SELECTION) 4) EXHIBIT D —REFERENCES AND RELEVANT WORK HISTORY (PAST 5 YEARS) 5) EXHIBIT E — PROPOSAL CONTRACT AND AGREEMENT— PROPOSERS STATEMENT 6) EXHIBIT F — PROPOSAL CONTRACT AND AGREEMENT —CERTIFICATION OF NONDISCRIMINATION BY CONTRACTOR 7) EXHIBIT G — NON -COLLUSION AFFIDAVIT Housing Authority of the City of Santa Ana City Council 7 5/4/2021 Page EXHIBIT 1 Submittal of Proposal. Four (4) copies of the response to the RFP shall be signed by a company official with the power to bind the company and one (1) copy of the submittal on a USB Flash Drive or equivalent. a. If sent by e-mail, one (1) copy of the submittal. Structure your proposal to include the Scope of Service response, Implementation Schedule, Fees / Contract Price and Exhibits. The proposal must be completely responsive to the RFP. The Housing Authority reserves the right to reject any or all proposals submitted and no representation is made hereby that any contract will be awarded pursuant to this RFP or otherwise. XII. CONTRACTOR SELECTION— SCORING AND EVALUATION The crileria for evaluating the proposals submitted will take the following evaluation criteria into consideration: EVALUATION CRITERIA Qualifications & Company Experience Organizational background and overall experience (Max. 10 Points) Qualifications and experience relevant to the scope of services described in Exhibit A (Max. 15 Points) Experience working with Housing Authorities (Max. 10 Points) SUB TOTAL (Max. 35 Points) Overall Quality and Depth of Proposal Quality and organization of proposal (Max. 15 Points) Completeness of proposal (Max. 15 Points) SUB TOTAL (Max. 30 Points) Fee Schedule Overall fee schedule (Max. 5 Points) Fee schedule related to the services requested (Max. 10 Points) Fee schedules and timeline for implementation (Max. 20 Points) SUB TOTAL (Max. 35 Points) GRAND TOTAL (Max. 100 Points) Housing Authority of the City of Santa Ana City Council Pages 5/4/2021 EXHIBIT 1 The proposals will be reviewed by a Review Panel of Housing Authority staff members. The Panel will evaluate Proposals based on their response to the RFP. A final score will be calculated for each submitted proposal and used to rank the proposal. The highest scoring proposers will be informed after the scoring and evaluation is complete. The Panel will recommend award of the contract to the proposer who will provide the best quality service to the Housing Authority. The Housing Authority reserves the right to negotiate pricing and for additional interviews. The Housing Authority will notify the successful firm(s) by email of invitation for a final oral interview, demonstrations, and/or award. XIII. PUBLIC RECORDS Proposals will become public record after award of agreement. Interested offerors may submit an a -mail request to receive results or the evaluation. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act. Please submit your request to Judson Brown, Housing Division Manager, at ibrown()santa-ana.org. XIV. FILING A PROTEST Bidders may file a "protest" with the Housing Authority. In order for a contractor's protest to be considered valid, the protest must. 1. Be filed in writing within five (5) business days of either the RFP posted date or before 5:00 p.m. of the 5th business day following the posting of RFP results/Notice of Intent to Award Contract on the City's website, 2. Clearly identify the specific irregularity or accusation, 3. Clearly identify the specific City staff determination or recommendation being protested; 4. Specify, in detail, the grounds of the protest and the facts supporting the protest, and 5. Include all relevant, supporting documentation with the protest at time of filing. If the protest does not comply with each of these requirements, it will be rejected as invalid. If the protest is valid, the City's Housing Division Manager, or other designated City staff member, shall review the basis of the protest and all relevant information. The Housing Division Manager will provide a written decision to the protestor within fourteen (14) calendar days from receipt of protest. The decision from the Housing Division Manager, or her/her designee, is final and no further appeals will be considered. Housing Authority of the City of Santa Ana City Council Page 9 5/4/2021 EXHIBIT 1 EXHIBIT A REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM SCOPE OF SERVICES The Santa Ana Housing Authority (SAHA) is a medium-sized Public Housing Authority located in Santa Ana, California and is operated wider the U.S. Department of Housing and Urban Development, and has approximately 15 full time employees and manages 3,160 Housing Choice Vouchers (Section 8). SAHA provides rental assistance in the form of Housing Choice Vouchers (HCV), Project Based Vouchers, Mainstream Vouchers, Foster Youth to Independence Vouchers, and Veterans Affairs Supportive Housing vouchers to 3,160 low-income households. These vouchers enable Housing Authority participants and applicants to rent from property owners in the private rental market. The Authority's funding is fully dependent on the U.S. Department of Housing and Urban Development (HUD). HUD's funding is dependent on annual appropriations from Congress. It is the Santa Ana Housing Authority's objective to find qualified providers to provide case management services to support the administration of the Housing Choice Voucher Program. The Agency is seeking proposals from qualified, licensed, and insured entities to provide remote case management services to a portion of the agency's Housing Choice Voucher, Mainstream Voucher, VASH, and/or Foster Youth to Independence households. The services shall include but not be limited to completing the following tasks utilizing the agency's software in a HUD-cornpliant manner: • Process reexaminations (50058 Action # 2), including collection and review of required documentation, income calculations, and calculation of tenant rent. • Process interim examinations (50058 Action # 3), including review of required documentation, income calculations, and calculation of tenant rent. • Respond to participant questions according to applicable regulation and local policies • Accurately document all processes and communications in the appropriate electronic file, concluding with the 50058 submission to HUD. All services shall be provided in accordance with all applicable laws and in a manner consistent with industry best practices. The I lousing Authority reserves the right to increase or decrease the amount of cases assigned to the Contractor on a monthly basis. Housing Authority of the City of Santa Ana City Council Page 10 5/4/2021 g EXHIBIT 1 The Contractor shall SAHA's housing software, forms, letters, systems, reports and e-mail addresses. The format of all agency forms and letters sent to Housing Authority clients shall be approved by the Housing Authority. SAHA utilizes MRI HAPPY software. The Contractor logo shall appear on formal status reporting to the Housing Authority and monthly billings; all other materials produced by the Contractor will appear as though they are Housing Authority materials. The Contractor will use HUD's five levels of verification. Contractor will access EIV to verify income. When "Up Front Income Verification" is not available, Contractor will send employment verification forms to employers via fax, mail and email. If the Contractor is unable to obtain "Written Third Party" verification, the Contractor will contact the employer via telephone for an "Oral Third Party". HUD Waivers adopted by the Housing Authority in response to COVID-19 may also he used in lieu of the income verification hierarchy until such waivers expire. Notation of waivers used must be properly notated in file. The Contractor shall assign a Project Manager to act as the point of contact for the agency regarding the services provided. The Project Manager shall manage and supervise the completion of the services to include but not be limited to the following. • Supervise and conduct quality control reviews of each Contractor -assigned housing specialist's work. • A sample of 10% of annuals/interims processed on a monthly basis shall be reviewed by the Contractor's Project Manager. If there are errors found exceeding 2% an additional 5% shall be reviewed. • Communicate with the agency's contract managers for all HCV, Mainstream, and VASH programs to provide timely updates, so Contractor can ensure that all deadlines are met and all applicable agency policies and procedures are followed. • Provide Housing Authority with a monthly status report. • Troubleshoot issues on behalf on Contractor's staff such as IT issues related to remote access to systems, and coordinate with the agency's IT staff or contract managers directly in order to resolve such issues timely when necessary. Housing Authority of the City of Santa Ana City Council Page 11 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT B REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM PROPOSERS STATEMENT AND QUALIFICATION FEE SCHEDULE Certification — I certify that I have read, understand and agree to the terms and conditions of this Request for Proposals. I have examined the Scope of Services (Exhibit A) and I am familiar with the scope of work requirements. I am familiar with all of the existing conditions and limitations that may impact work requests. I understand and agree that I am responsible for reporting any errors, omissions or discrepancies to the Housing Authority for clarification prior to the submission of my proposal. FEE SCHEDULE Please provide a proposed fee schedule. LEGAL NAME OF COMPANY PHONE AND FAX NUMBER BUSINESS ADDRESS PRINTED NAME OF AUTHORIZED AGENT TITLE SIGNATURE OF AUTHORIZED AGENT DATE E-MAIL ADDRESS FEDERAL ID NO. (IF APPLICABLE) CONTRACTOR LICENSE NO. (IF APPLICABLE) Housing Authority of the City of Santa Ana City Council Page 12 5/4/2021 EXHIBIT 1 EXHIBIT C ADDITIONAL INSURED ENDORSEMENT FOR COMMERCIAL GENERAL LIABILITY AND BUSINESS AUTOMOBILE POLICIES Insurance Company I his endorsement modifies such insurance as is afforded by the provisions of Policy # relating to the following: The City of Santa Ana, 20 Civic Center Plaza M-26, Santa Ana, California 92701: its officers, employees, agents, volunteers and representatives are narned as additional insureds ("additional insureds") with regard to liability and defense of suits arising from the operations and uses performed by or on behalf of the named insured. 2. With respect to claims arising out of the operations and uses performed by or on behalf of the named insured, such insurance as is afforded by this policy is primary and is not additional to or contributing with any other insurance carried by or for the benefit of the additional insureds. 3. This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the company's limits of liability. The inclusion of any person or organization as an insured shall not affect any right which such person or organization would have as a claimant if not so included. 4. With respect to the additional insureds, this insurance shall not be cancelled, or materially reduced in coverage or limits except after thirty (30) days written notice has been given to the City of Santa Ana, 20 Civic Center Plaza M-26, Santa Ana, California 92701. (Completion of the following, including countersignature, is required to make this endorsement effective.) Effective Policy # Issued to this endorsement form as part of Name Insured Countersigned by: Authorized Representative Housing Authority of the City of Santa Ana City Council Page 13 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT D REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM List and describe fully the contracts performed by your firm Lhat demonstrate your ability to provide the services included in the scope of services. Attach additional pages if required for additional references. The Housing Authority reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1 Customer Name: Address: Contract Amount: Description of case management services provided: Reference No. 2 Customer Name: Address: Contract Amount: Contact Individual: Phone Number: E-mail: Year: Contact Individual: Phone Number: E-mail: Year: Housing Authority of the City of Santa Ana City Council 14 5/4/2021 Page EXHIBIT 1 Description of case management services provided: Reference No. 3 Customer Name: Address: Contract Amount: Description of case management services provided: Contact Individual: Phone Number: E-mail: Year: Housing Authority of the City of Santa Ana Request for Proposals for Case Management Services City Council - --- --4 — 17 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT E REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM PROPOSAL & CONTRACT AGREEMENT PROPOSER'S STATEMENT Proposer understands and agrees that this written RFP (or any part thereof specifically designated and accepted by the Housing Authority of the City of Santa Ana (hereinafter "the Authority') shall constitute the entire agreement between proposer and the Authority only after it has been accepted by the Authority, endorsed by the Recording Secretary with his/her signature and official seal noting here on the action of approval of the Council / Housing Authority, signed by the Executive Director or his/her duly authorized agent, and signed by the Authority General Counsel, denoting his/her approval of the form of this document, and its execution, and when it or an exact copy of it has been either delivered to proposer or deposited with the United States Postal Service properly addressed to the proposer with the correct postage affixed thereto. Proposer further agrees that upon delivery (as defined above) of the accepted agreement he/she will furnish the Authority all required bonds and certificates of liability insurance within ten (10) days (excluding Saturdays, Sundays and the Authority's legal holidays), or the funds, check, draft, or proposer's bond substituted in lieu thereof accompanying this proposal shall become the property of the Authority and shall be considered as payrnent of damages due to the delay and other causes suffered by the Authority because of the failure to enter into an Agreement and/or furnish the necessary bonds and because it is distinctly agreed that the proof of damages actually suffered by the Authority is difficult to ascertain, otherwise said funds, check drafts, or proposer's bond substituted in lieu thereof shall be returned to the undersigned. Proposer understands that a proposal is required for the entire work, that the estimated quantities set forth in the RFP schedule are solely for the purpose of comparing proposals, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. All terms contained in the Specifications, the Certification of Non -Discrimination by Owners, and the Workers' Compensation Insurance Certificate are to be incorporated by reference into this Agreement and are made specifically as part of this RFP. FIRM SIGNED AND PRINTED NAME TITLE DATE Housing Authority of the City of Santa Ana Request for Proposals for Case Management Services City Council ' --- -- 4 — 18 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT F REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM PROPOSAL AND CONTRACT AGREEMENT CERTIFICATION OF NONDISCRIMINATION BY CONTRACTOR The undersigned Contractor or corporate officer, during the performance of this contract, certifies as follows: The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or any other protected class. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, national origin or any other protected class. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forrTis of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or any other protected class. 3. The Contractor shall send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4. The Contractor shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. 5. The Contractor shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders. 6. In the event of the Contractor's non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction/services contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law. Housing Authority of the City of Santa Ana Request for Proposals for Case Management Services City Council ' --- — 4 — 19 5/4/2021 EXHIBIT 1 7. The Contractor shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance, provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the 8. Contractor may request that the United States enter into such litigation to protect the interests of the United States. 9. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1039, and as amended, No discrimination shall be made in the employment of persons because of race, religious creed, color national origin, ancestry, physical handicaps, mental condition, marital status, sex of such persons, or any other protected class, except as provided in Section 1420, and any Contractor violating [his Section is subject Lo all Lhe penalties imposed for a violation of the Chapter. FIRM SIGNED AND PRINTED NAME TITLE DATE Housing Authority of the City of Santa Ana Request for Proposals for Case Management Services City Council - --- -- 4 — 20 5/4/2021 EXHIBIT 1 TO BE INCLUDED IN PROPOSAL EXHIBIT G REQUEST FOR PROPOSALS (RFP) FOR CASE MANAGEMENT SERVICES FOR THE HOUSING CHOICE VOUCHER PROGRAM PROPOSAL AND CONTRACT AGREEMENT NON -COLLUSION AFFIDAVIT (Title 23 United States Code Section 112 and Public Contract Code Section 7106) To the HOUSING AUTHORITY OF THE CITY OF SANTA ANA, In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the PROPOSER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organisation, or corporation; that the bid is genuine and not collusive or sham; that the PROPOSFR has not directly or indirectly induced or solicited any other PROPOSER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived or agreed with any PROPOSER or anyone else to put in a sham bid, or that anyone shall refrain from bidding, that the PROPOSER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the PROPOSFR or any PROPOSFR, or to fix any overhead, profit, or cost element of the bid price, or of that of any other PROPOSER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the PROPOSER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. Note- The above Non -collusion Affidavit is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Non -collusion Affidavit. PROPOSERS are cautioned that making a false certification may subject the certifier to criminal prosecution. State of California County of Subscribed and sworn to (or affirmed) before me on this day of 20 , by proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. Notary Public Signature Notary Public Seal Housing Authority of the City of Santa Ana Request for Proposals for Case Management Services City Council - --- -- 4 — 21 5/4/2021 EXHIBIT 2 CONSULTANT AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE, CITY OF SANTA ANA AND NAN MCKAY AND ASSOCIATES, INC. THTS AGREEMENT, made and entered into this 4"' day ol'Mny, 2021, by and between Nan McKay and Associates, Inc. (NMA), a Calilbrnia corporation ("Consultant"), and the Housing Authority of the City of Santa Ana, a public body, corporate and politic (hereinafter "Authority" or "City"). RF.CTTAT.S A. Can February 22, 2021, the Authority issued a Request for Proposals (Rh P #21-026) for annual reexamination with call center services Ibr the Housing Choice Voucher Program tiotn qualified, licutscd, and insurcxl entities to provide minute annual reexamination with call Center services to a portion of the agency's Housing, Choice Voucher, Mainstream Voucher, VASIL and/or roster Youth to hidependence households. The terms and requirements ofRFP #21-026 shall he incorporated herein by reference- B. Consultant represents that Consultant is able and willing to provide such annual reexamination with call center services to the Authority subject to the terms of this Agreement. C. Consultant represents that Camsultant is not listed as debarred, is able and willing to provide such services to the Authority, and will comply with the Housing, Choice Voucher Program Regulations. D- hi undertaking the per-fbnnancc of this Agectncnt, Consultant represents that it is knowledgeablec in its field and that any services perlorrned by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field. NOW THEREFORE, in consideration ul'the nuttual and respective promises, and subject to the toms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Pur"want to this Agrecrncnt, Consultant will provide annual reexamination with call ecnter services liar the Authority's Housing Choice Voucher Program, as set forth in Exhibit A auached hereto and incorporated herein. City Council 4 — 22 5/4/2021 EXHIBIT 2 2. COMPENSATION a. City a6ruus to pay, and n Cusultant a�,TCCS to accept as total payment for its services, the rates and charges identified in Exhibit A. The total sum to be expended under this Agreement shall not exceed Three Hundred I housand Dollars (.S300,000) during the tern of this Agreement b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures_ Payment need not be made for work which fails to meet the standards ofperfomrance set forth in the Recitals and Scope of Work, which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and continue for a three (3) _year [clot, through April 30, 2024, unless terminated earlier in accordance. with Section 11, below. The Term of this Agreement may be extended by a writing executed by the City Manager and the City Attorney. 4. 1NDF.PFNDFNT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not tun employee of the City, This Agreement is not intended nor shall it be construed to create an employer -employee relalionship, ajoint venttue relationship, of - to allow the Authority to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement, however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standard, and regulations governing such services. Consultant shall pay all salaries and wages, employer's social Security laxes, unemployment inSurallCe and similar taxe3 relating to employees and shall be responsible Ibr all applicable withholding taxes. S. OWNERSHIP OF MATERIALS This Agreement creates a non-cxclusivc and pClTCtual license for City to copy, use, modify, lease, or sublicense.. any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or A arks of anthnrship fixed in any tan4=ible medium of expression, including but not limited TO, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Uocurnents & Uata"). Consultant shall require all subcontracto is to agree in writing, that City is granted a nun-cxclusivc and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultanl represents and warrants lhal Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Dauunents & Data which were provided to Consultant by the City. City shall not be limited in City Council 4 — 23 514/2021 EXHIBIT 2 any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sale risk. 6. INSURANCE Prior to undertaking porlortnance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described helow. Li. Commercial General Liability Insurance. Consultmn shall maintain commercial geuctal liability insurance mating the City, its officers, agents, volunteers, and employees as additional instrred(s) and shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting lheref om and damage to properly, resulting from any act or occur-r-crnecarising out of Consultant's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The atrtourus of insurancc shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting therefi-om, and property damage, in the total amount of $I,000,f100 per occurrence. Consultant shall Supply City with a fully executed additional insured endorsement upon execution of this Agreement and shall be approved in foam by the City Attorney. b. 13usiness automobile liability insurance, or equivalent form, with a combined single limit of not less Lhan $l,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non -owned automobiles. C. Worker's Compensation lnsurance. In accordance with the provisions of Section 3300 of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for worker's compensation nr to undertake self-insurance. Prior to commencing the perlorrrnance of the work under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. If Consultant is or employs a licensed professional such as art architect or engineer: Professional liahility (errors and omissions) insurance, with a combined single limit of nor less than $1,000,000 per claim- e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section- 3 City Council 4 — 24 514/2021 EXHIBIT 2 (i) CoffiLdtam shall maintain all imurancc rxluirml abuvc in full lorcc and effect for the entire period covered by this Agreement. (ii) Certificates of insurance shall be furnished to the City upon execution of this Agreement and shall he approved in torn] by the City ALtorney- (iii) Certificates and policies shall state that the policies shall not be cancelled or reduced in coverage or changed in any other material aspect without thirty (30) days prior written notice to the City. f- Tf COUALILant fails or refuses Lo produce or maintain the insurance required by Lllis section or fails or refuses to funiish the City with required proof that insurance ha been procured and is in turce and paid for, the City shall have the Light, at the City's election, to turthwith terminate this Agreement. Such termination shall not affect Consultant's right to be paid for its time and materials expended prior to notificalion of termination. C'onsuhant waives the right to receive compensation and agrees to indenmify the City for any work performed prior to approval of insurance by the City. 7. INDEMNIFICATION Consultanl agrees to and Shall indemnify and hold harmless Lhe City, its ollicers, agents, cLLiploycc,, cunsullants, cuunscl, and representatives lions liability: (1) for persunal injury, damages, just Compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims R)r properly damage, which may arise from the direct or indirect operations of Ole COIlSnILanL or its cunu-acLorS, sLill cOil uaCMrs, agents, employees, or other persons acting on their behalf which relates to the seaviecs described in section 1 of this Agreement; and (2) from any Ckulll that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement- This indemnity and hold harmless agreement applies to all claims for damages, just urnlpensaLion, restitution, judicial or equitable relief suffered, or alleged to have been suflered, by reason of the event, referred to in this Section or by reason of the terms of, Ur eftecN, arising from this Agreement. The Consultant thither agrees to tuduromty, hold harmless, and pay all costs for the defense of the City, including tees and costs for special counsel to be ;elecled by the Cily, regarding any aclion by a third party asserting that personal injury, damages, just compensation, resLiLrrtion, judicial or equitable relief due Lo per-sonal or property rights arises by reason of the terms of, or effects arising front this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. 8. CONSULTANT'S OBLIGATIONS A. No Conflict. To the best of Consultant's knowledge, Consultant's execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any conhacl, agreement or order to which Consullant is a party or by which it k hound. 4 City Council 4 — 25 514/2021 EXHIBIT 2 B. No Bankruptcy. Cotsultant is not the subject of any current or threatened hankruptcy proceeding. C. No fending Legal Proccedings/Debarment. Consultant is not the subject of it current or threatened litigation that would or may materially affect ConstdLara's performance under this Agreement. Consultant ftuther ackilowlelges that it is not ou the list of debarred contractors. D. No Pending Investigation. Consultant is not aware that it is the subject of any current or threatened criminal or civil action investigation by any public agency, including Without limitation a police agency or prosecuting authority, which would relate to affect perfonmancc of the Agreement orprovision of services IlC-CLltrder- L. Licensing. Consultant agrees to obtain and maintain all required licenses, registrations, accreditation and inspections ftorm all agencies governing its operations. Consultant shall ensure lhm its dill)' shall also obtain and maintain all required licenses, regish-alions, accreditation and inspee ions li-om all agencies governing Consultant's operations hcrcunder. F. Audit Report Requirements. Consultant agrees that if Consultant expends Seven llundred and Fifty Thousand Dollars (5750,000-00) or more in federal finufs, C:nnsultant shall have a single audit or program specific audit amducted by it certified public accountant in accordance wish the standards as set forth and published by the United Slates Office of Management and Budget. Consultant shall provide City with it copy of said audit by October 1 of the year following the program year in which this Agreement is executed, if applicable. G. Record Keeping/Reporting- Consultant shall keep and maintain complete and adegtuuc records and reports to assist City in meeting and maintaining its rceord keeping responsibilities under Title 24, Part 570 of Code of Federal Regulations 24 CFR 570.000. O sect. 11. Access to Records. City and the United State Government and/or their rcprescntativcs shall have access for purposes of inointoring, auditing, and cxanuning Consultant's activitics and performance, to books, documents and papers, and the right to examine records of Consultant's subcontractors, bookkeepers and accountants, employees and participants in regard to said program. City and the United States Government and/or their reprtsentahves shall also schedule on -rile monitoring at their discretion. Monitoring nctivilies may also include, but arc nut limited to, qucstiuning employees and participants in said program and entering any premises or iury site in which any of the services or activities funded hereunder are conducted or in which any of the records of Consultant are kept. Nothing herein shall be construed to require access to any privileged or confidential information as set forth in federal or state law. 1. Location of Records/Required Length of Record Keeping. All accounting records, reports, and evidence pertaining to all costs, expenses and the fluids received by Consultant and all ducutnents related 10 this Agrccrnatt shall be maintained and kept available at Consultant's oftice or place of business for the duration of the Agreement and thereafter for five (5) years drier completion of an audit in conl'ornily with the Housing Choice Voucher 1'rogran s City Council 4 — 26 5/4/2021 EXHIBIT 2 regulations_ Records which relate to (u) complaints, claims, administrative proceedings or litigation arising out of the perlbrmance of this Agreement, or (b) costs and expenses oh this Agrecntcut to which City or any other govcmunental agency takes execptiun, shall be retained beyotid the tour (4) years until complete resohatiou or disposition of sucti appeals, litigation claims, or exceptions. In the event Consultant does not make the above -referenced documents available within the City of Santa Ana, Califirmia, Consultant agrees to pay Al necessary and reasonable expenses inuu-rcd by City in conducting any audit at the location where said records and books of account are maintained. J. Confidentiality. Without prejudice to any other provisions of this Agreement, Consultant shall, where applicable, maintain the confidential nattu-e of information provided to it concerning participants ill accordance with the requirements of federal and state law. However, Consultant shall submit to Cit_v and/or HUD of its representatives, all records requested, jnchuling audit, examinations, monitorin; and va'itications of reports submitted by Consultant, costs incurred and services rendered hereunder. K. Lobbying_ Consultant certifies that it will comply with federal law (3 1 U.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the recipient of a federal contract, Want, loan or cooperative agl`eement to pity any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an ollicer or employee of a Member of Congress in connection Will awarding of any lcdcral contract, the making of any lateral grant or loan, entering into any cuuperativc agrecrncnt and the extension, renewal, amendment or modification of any federal coun:tct, grant, loan or cooperative agreement. Tf any hinds other than Federal appropriated hands have been paid or will hec paid to any person for influencing or auctnpting to inlhrcncc an officer or employee of any agency, a Member of Congress, in officer or employee of Congress, or an employee of a Member of Congress in connection with this Ferieral contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions. L. Financial Interest. Consultant agrees that cXccpt tin the use of Muds to pay salaries and other related administrative or personnel costs, no parsons who exercise or have exercised any function with respect to activities assisted under the terms of this Agreement, or who are in a position to participate in a decision -making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a Ciry-assisted activity of Consultant, either for themselves or those Willi whom they have family or business ties, during Their tenure or for one year thereafter. This prohibition applies to any person who is an agent, employee, amsultant, officer, or elected or appointed official of City, or of any designated public agency, or the Consultant. M. Drug Free Norkplace. Consultant ccrtifcs that it has established the following drltc- Cree workplace policy: 0 City Council 4 — 27 5/4/2021 EXHIBIT 2 L The unlawful mtmufacttu-e, distribution, dispensing, possession or use of a controlled substance is prohibited in the workplace for any employee involved in a federally funded prutn run. 2. As an employee working in conjunction with a federally funded program, the employees ol'Consuhanl will be required ur. a) Abide by the terms above in statement 1. h) Notify appropriate officials of Consultant and City officials of any criminal drug stauue conviction for a violation occurring in the workplace not later than five clay, 11'ter such CLAMCLlOn. 3. The City and the United State Dcpartinent of Housing and Urban Development will be notified within ten d.tys after receiving notice orally such violation. 4. Within 30 days of receiving such notice, appropriatc personnel action will be takers against such employee. up to and including termination. Each such employee shall be required to participate satisfactorily in a drug abuse assistance or rehabilitation program approved lot sueh purposes by a federal, state or local health, law cnl'urccmcnl, or other appropriate agency. N. Nondiscrimination. Consultant agrees that no person on the ground ol'race, age, color, naLional origin, disability, religion, sex or other proLecLed class will he excluded tam participation in, bee denied the benefits of, or be subjected to discrimination undcr any program or activity limited in whole or in part with funds received pursuain to this Agreement. Cot SL It , inns that it is an equal opportunit-v employer and shall comply ceitlt all applicable federal, state and local law, and regulations- 0. Conflict of Inlcrest. Consultant covenants that it presently has no interests and Shall nut have interests, direct or indirect, which would contliet in any mauuer with pciformanec of services specified under this Agreement. Further, any conflict or potential conflict of interest ofany enrployeelofficer of 'onsullanl shall be filly disclosed in writing prior to the execution of this Agreement and said writing shall be attached and deemed fully incorporaLed as a part hereof. Notice shall be sent by Consultant to City regarding any changes or rnoditiemons to its board of directors and list of officers. P. Prohibition of Nepotism. Consultant agrees not to hire or permit the hiring of any person to fill a position Funded through Lhis Agreement if a member of that person's immediate tamily is cttrpluyccl in an administrative capacity by Consuhant. For the puuposcs of this section, the term "itmediate family" means spouse, child, mother, father, brother, sister, brother' -in-law, sister-in-law, father-in-law, molher-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sLepparenL and stepchild. The Lerm "administrative capacity" means having selection, hiring, SupCtvisor or managancnt responsibilitics. 7 City Council 4 — 28 5/4/2021 EXHIBIT 2 9. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statetncut between the City and Consultant, and supersedes any and all other agreements, oral or written, between the parties. In the event of, conflict beliveen the teens of Ibis Agreement and any atWchnients hereto, the terms ol' this Agrenicnt shall prevail. This Agreement may not be modified except by written inslrurnenl signed by the City and by an authorized representative of Consultant. The parties agree that any terns or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. T ach parry to this Agreement acknowledges that no representations, inducements, promises or aUleenienls, orally or odlerwi,e, have beeIl Iriade by any parLy, or anyone acting on behalf of ally party, "'llich is not embodied herein. 10. ASSIGNABILITY None of the duties of, orworlc to be performed by, Consultant under this Agreement shall be subcontracted or assigned to any agency, consultant, or person m-ithoul the prior written consent of City. Consultant must submit all subcoiitr icts and other agreements that relate t0 this Agreement to City- No subcontract or assignment shall terniinate or alter the legal obligations of Consultant pursuant to this Agi-eetnent- 11. TERMINATION A. This Agreement may be tenrrinaled on thirty (30) days' written notice by either party. Tn the event of such termination, Consultant shall only be entitled to reimbursement for approved expenses incurred to the cfketive date of termination. B3 This Agreement may he suspended or terminated by City upon five (5) days' written notice for violation by Consultant of Federal Laws governing the use of Housing Choice Voucher Program finds. In the event of such suspension or LerminaLion, Consultant ;hall only be entitled to reimbursement tilt approved expenses incurred up to the effective date of stispellsion or termination. C. Pursuant to 24 CFR 85.43, in the event Consttltant del;lulls by failing to lulfill all or any of its obligations 11CrtiLUILIcr, City may declare a dctaLdt and tcntrination of this Agreement by written notice to Consultant, which dctatllt and Icrtninatioii shall be effective on a date stated in the notice which is to be not less than ten (10) days after certified trailing or personal service of such notice, unless such default is aired before the effective date ofterminatinn Stated in such notice. Tf terminated for cause, City shall be relieved of further liability or responsibility tinder this Agreement- or as a result oh the termination thereol, including the payment ul' money, except for payment tilt approved expenses incurred till services satisfitctorily and timely pertollned prior to the mailing or service of the notice of termination, and except for reinibursen9ent of (I ) any payments made for services not subsequently perlornied in a liniely and satisfactory manner, and (2) costs ncurred by City in obtaining substinile performance- s City Council 4 — 29 5/4/2021 EXHIBIT 2 D. The grant of funds under this Agreement may he terminated for convenience in accordamce with 24 CFR 95.44_ 12. VENUEJURISDICTION This Agreement has been executed and delivered in the Salle of California and the validity, interpretation, perilormance, and enlirrcement of any of the clauses of this Agrecmchil shall be determined and governed by the laws of the State of California. Both parties htrther agree that Orange County, California, shall be the venue for any action or proceeding that may be hrought or arise out of, in connection N ith or by reason of this Agreement. 13. VALIDiTV The invalidity in whole or in part of any provision of this Agrcenhent shall not void or affect the validity of any olNn provision of this Agreement. 14. NOTiCE Any notice, tender, demand, delivery, or other contmunicatinn pursuant to this Agreement shall be in writing and shall he deemed to he properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by facsinhile or other telegraphic cottnnunicatiun in the manner provided in this Section, to the lulluwinp persona: fo Cily: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) P-0. Box 1988 Santa Ana, California 92702-1988 Facsimile (714) 647-6956 W ith cotu-tesy copies to: Community Development Agcncy City of Santa Ana 20 Civic Center Plaza (M-25) P_0. Box 1988 Santa Ana- California 92702-1988 Facsimile (714) 647-6549 City Attorney CilyofSanta Ana 20 Civic Center Plaza (M-29) P.O. Box 1988 ,h City Council 4 — 30 5/4/2021 EXHIBIT 2 Santa Ana, California 92702 Facsimile (714) 647-6515 fo Consultant: Emily Frampton, Project Manager Nan McKay and Associates, Tne_ 1810 Gillespie Way, Suite 202 El Cajon, California 92020 Phone: (R00) 7R3-3100 15. MISCELLANEOUS PROViSMNS a. 1{ach undersigned represents and warrants that its signature hercinbelow has the power. authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City tidly, including reasonable costs and attorney's fees, for any injuries or damages to City in tire event that such authority or power is not, in tact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this A g •eenr ent_ c. No delay or umissiun by either party hereto to exercise any right ur power accruing upon any noncompliance or default by the other party with respect to any of the terms of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be perfirrmed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or agreement herein contained. 10 City Council 4 — 31 5/4/2021 DncL,Slgn Envelope ID: 90E3E2Ba-A644-459F-8DF2-D5235f4CD52357 EXHIBIT 2 TN WTTNT?SS WTTTi F.OF, the parties hereto have executed this Agreement the date and year first above wtitlen. AT IWST: DATSY ( iOMF7 Housing Authority Recording Secretary APPROVED AS TO FORM: SONTA R_ CARVALTTO Author ty-{.aen :ral Counscl I'. Ryan 0' Hodge Assiti'tant Counsel HOUISNG AU'I HORITN' OF THE C1 I'Y OF SANI'A ANA STFVFN A. MRNDO7A Executive Director CONSULTANT Nan McKay and Associates, Tnc_ (NMA) 771�DOC.Signed by: T3y.-D6BAriBS Dorian lcnkins Vice president, program Management Tax ID f141-1381008 City Council 4 — 32 5/4(2021 EXHIBIT 2 EXHIBIT A SCOPE OF SERVICES 1" City Council 4 — 33 5/4/2021 EXHIBIT 2 nm:i I p0(1,. 1\ N,,, M,X,y&A_ t,cia Les, ni_ 4 r 1. SCOPE OF SERVICES • Initiate annual rccxarninatfon process 95-120 days hefirrc cffcctivc date; • (-omplee tvirisncPOn_ vinm-ad, em-ad, ov fax; • C-ontact cllcrlrs repardint., missing doclimcnrs (C.,,., t0110vv-tlp calls, cmalls, and 1Cta is/notifications); • A I-:Insfcr comhlcrcd donimcnrs to ncu 1 lousinn :Aurhoriry of ncc City of Sans Ana (S:A11A) m digital fhrmnw • (.or)[3uct thorpugrh review of Ajlj lI cation fol-(.:0rtrir)ucd I IiI'll hiliry (A( 'I • Follov I1UIYs vcrilicaiion hicrarchV to vcriCV income and assets; (,-unplCre calculations; • Dcrcrminc if rcpyinicnr nnrrcm(inr (RPA) is nccdcd, and if t�o, rcfi-r ro SAHA; • As applirAble, cotnrnunicarcr outorrnc ti via NhIA's porml, email, :ind mail at Icasr thirtc (30) (a)s bcforc the trmn :action cffcctivc dare; and • DOCnItlOL1. all rratlsaCIIOIVs iu NfVl,Virackitig cool and SAHXY soCiwarc stem. N1LA will respond dirccdy on Behalf of SAHA on rlcncral complaints and clucsrions; and Provide a dircCr line- fin- 1 RN cdicrnr3 rrr Call rc-garding their Case. City Council 4 — 34 514/2021 EXHIBIT 2 I p0( , �� N.�n McKay & A_ 't,cia Les, Ini_ 4 r 2. QUALIFICATION FEE SCHEDULE Pricing includes rcmot(- wrviC(-& onli' anti is contingcrfIT ufJofI SAl IA's ahilirt- to grant NMA adcquatc- rcmorc sysrc nns and file access. NMA will invoice M for srcntal hostage and mailing cNpcnsrs uicurred related to the performance of the proposed services. Annual Reexaminations with Call Center $106.00 per transaction plus $29.09 per hourfor call center Annual Reexamination- only $116.00 per transaction City Council 4 — 35 514/2021 Housing Authority https://www.santa-ana.org/cd Item # 5 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 4, 2021 TOPIC: First Amendment to the Memorandum of Agreement for Inter -Jurisdictional Mobility AGENDA TITLE: Approve a First Amendment to the Memorandum of Agreement for Inter -Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority, and Garden Grove Housing Authority RECOMMENDED ACTION Authorize the Executive Director of the Housing Authority to execute a First Amendment to the Memorandum of Agreement for Inter -Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority, and Garden Grove Housing Authority effective May 4, 2021, subject to non -substantive changes approved by the Executive Director and the Housing Authority General Counsel. DISCUSSION On June 6, 2017, the City Council approved a Memorandum of Agreement (MOA) for Inter -Jurisdictional Mobility with the Orange County Housing Authority, Anaheim Housing Authority and Garden Grove Housing Authority (Exhibit 1). Under the federal regulations for the Housing Choice Voucher Program, a family that has been issued a voucher by the Housing Authority of the City of Santa Ana (SAHA) has the right to use their voucher to lease a unit anywhere in the United States so long as the unit is located within the jurisdiction of a Public Housing Authority (PHA) administering a Housing Choice Voucher Program. The process by which a family obtains a voucher from one PHA and uses it to lease a unit in the jurisdiction of another PHA is known as portability. Approximately 735 families are exercising that right and reside outside of SAHA'sjurisdiction. Their rental assistance is administered by the Garden Grove Housing Authority (GGHA), Orangc County Housing Authority (OCHA), and Anahcim Housing Authority (AHA) who bill SAHA each month for their vouchers. Under the federal regulations for the Housing Choice Voucher Program, SAHA does not have the authority to deny a family their right to port -out of Santa Ana with their voucher or to ask another housing authority to absorb those families into their programs. City Council 5-1 5/4/2021 First Amendment to the Memorandum of Agreement for Inter -Jurisdictional Mobility May 4, 2021 Page 2 OCHA, AHA, and GGHA have had a Memorandum of Agreement in place for over ten years, and most recently renewed their existing five-year agreement in June 2017. SAHA has been a party to the MOA since then. This regional agreement between the four housing authorities in Orange County has proven to be successful and cost effective as a best practice recognized by the U.S. Department of Housing and Urban Development. It has even been replicated in the County of Los Angeles and staff has presented on it to housing authorities in Phoenix, Arizona. The MOA simplifies, facilitates, and improves inter -jurisdictional administration of the Housing Choice Voucher Program in Orange County by eliminating often cumbersome procedures that would otherwise be necessary under portability requirements. Under the MOA, when a family exercises their right to port - out, SAHA only needs to request an inspection of the assisted -unit requested by the family from the PHA who has jurisdiction over the geographic location of the unit, but the family's housing assistance continues to be administered by SAHA. The MOA reduces the time it takes for families to move between housing authority jurisdictions in Orange County and allow SAHA, OCHA, and AHA to more efficiently administer our housing assistance. In addition to the administrative benefits being a part of this regional agreement, SAHA also retains 100 percent of the administrative fee for a family's voucher outside of our jurisdiction in lieu of paying 80 percent of the Administrative Fee to a receiving PHA that is billing SAHA for the administration of the family's voucher. SAHA currently disburses over $697,000 per year in Administrative Fees for port -out vouchers being administered by OCHA, AHA, GGHA and other housing authorities nationwide, with the majority in Orange County. If our Housing Authority were to ever decide not to be a party to this regional agreement, voucher assisted -families will still exercise their right to portability under the federal regulations for the Housing Choice Voucher Program and these costs would increase. In order to update the roles and responsibilities of the issuing PHA and the host PHA when using Project Based Vouchers (PBV) for HCV recipients and/or for Special Purpose Voucher (SPV) recipients in the host PHA's jurisdiction, which may have different requirements than the HCV Program, SAHA is seeking approval to execute a First Amendment to the MOA (Exhibit 2). This First Amendment to the MOA is intended to update the responsibilities of the PHAs for inter -jurisdictional administration of the Housing Choice Voucher Program in Orange County by continuing to streamline procedures that would otherwise be necessary under program requirements. The First Amendment will improve coordination for the following. 1) environmental reviews and subsidy layering reviews when project -based vouchers are allocated by OCHA in the jurisdiction of the AHA, SAHA, or GGHA; 2) the inspection process for project -based vouchers in a host PHA's jurisdiction, and 3) establishing the initial rent and tenant selection process. The First Amendment to the MOA will improve upon the existing MOA between the four housing authorities. It is important to note that while the MOA is officially between OCHA, AHA, SAHA and the GGHA, the Garden Grove Housing Authority is not willing to allow mobility between City Council 5-2 5/4/2021 First Amendment to the Memorandum of Agreement for Inter -Jurisdictional Mobility May 4, 2021 Page 3 Santa Ana and Garden Grove so there is a provision in the original MCA that excludes coordination between Garden Grove and Santa Ana. The First Amendment to the MOA is contingent on approval by OCHA, AHA, and the Garden Grove Housing Authority. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this item. EXHIBIT(S) 1. Memorandum of Agreement (MOA) for Inter -Jurisdictional Mobility 2. First Amendment to MOA for Inter -Jurisdictional Mobility Submitted By: Steven Mendoza, Assistant City Manager Approved By. Kristine Ridge, City Manager City Council 5-3 5/4/2021 EXHIBIT 1 MEMORANDUM OF AGREEMENT INTER -JURISDICTIONAL MOBILITY Among ORANGE COUNTY HOUSING AUTHORITY Division of OC Housing 8 Community Development & Homeless Prevention And ANAHEIM HOUSING AUTHORITY And GARDEN GROVE HOUSING AUTHORITY And SANTA ANA HOUSING AUTHORITY This Memorandum of Agreement, hereinafter referred to as "MOA." entered into on execution date, is by and among the Public Housing Agencies (PHAs) of the Cities of Anaheim, Garden Grove, Santa Ana and the County of Orange, a political subdivision of the State of California, referred to as"PARTY," orcollectively as"PARTIES.". The Parties agree and understand that each Party is a legally authorized PHA by the State of California to operate within their respective cities and to foster inter -jurisdictional mobility in the administration of the Department of Housing and Urban Development (HUD) Housing Choice Voucher (HCV) Program. RECITALS WHEREAS, the Housing Choice Voucher (HCV) Program, established pursuant to the provisions of Section 8 of the U.S. Housing Act of 1937, as amended (42 CFR U.S.C. 1437 f) authorizes the payment of rental subsidies to a private owner of housing units on behalf of eligible families who enter into a lease agreement for an eligible unit. WHEREAS, the authority to enter into this MOA is contained in the following applicable federal regulations for the Housing Choice Voucher (HCV) Program 24 CFR Part 982. These regulations address Portability and related procedures and emphasize that PHAs must provide families with the broadest choice regarding the location of units, both within and outside their respective jurisdictions. WHEREAS, the PHAs entering into this MOA are public housing agencies located and duly authorized to operate in the State of California. WHEREAS, each PHA entering into this MOA has also entered into an Annual Contributions Contract (ACC) with HUD. Each PHA is also authorized to administer the Housing Choice Voucher (HCV) Program within its respective jurisdiction. WHEREAS, the four jurisdictions covered by the PHAs entering into this MOA are located within the geographic boundaries of the County of Orange. These PHAs desire to execute this MOA to promote mobility and freedom of choice for low-income families seeking housing assistance under the Housing Choice Voucher (HCV) Program. This MOA Is also intended to simplify, facilitate and improve inter- jurisdictional administration of the Housing Choice Voucher (HCV) Program by eliminating often cumbersome procedures that would otherwise be necessary under Portability requirements. City Council 5-4 5/4/2021 EXHIBIT 1 NOW THEREFORE, the Parties mutually agree as follows: DEFINITION OF TERMS For the purposes of this MOA, the following definitions shall apply A. The term "Administrative Plan" Is defined as the plan that describes PHA policies for the administration ofthe Housing Choice Voucher (HCV) Program. B. The term "Annual Contributions Contract" (ACC) shall mean a written agreement between HUD and a PHA to provide annual contrlbutlons for the purpose of providing Housing Assistance Payments (HAP) and other expenses pursuant to the Housing Choice Voucher (HCV) Prog ra m. C. The term "Host Jurisdiction" shall mean the jurisdiction of a PHA in Orange County where the Issuing PHA is not otherwise authorized to administer its Housing Choice Voucher Program, but to which an aliglhle family wishes to move and use a Voucher issued by the Issuing PHA. ❑. The term "Housing Quality Standards" (HOS) shall mean the minimum dwelling unit standards required to protect the health and safely of tenants. E. The term "HUD Portability Procedures" shall mean the procedures required by federal regulations governing the use of Vouchers in a jurisdiction of another PHA in the absence of a voluntary MOA between oramong these agencies. F. The term "Inspection" shall mean examination of a rental unitfor compliance with HOS. G. The term "Issuing PHA" shall mean a PHA (hat Issued d Voucher to a family participating in the Housing Choice Voucher (HCV) Program In Orange County, California that wishes to move to another PHA's jurisdiction within Orange County (Hoot PHA). H. The term "Jurisdiction" shall mean the geographical area in which a PHA has authority undor state and local lawto administer the Housing Choice Voucher (HCV) Program. I. The term "Mobility" is distinct from Portability and shall mean the rnovernent of Housing Choice Voucher Holders among the four PHAs within the geographic boundaries of the County of Orange, California, the details of which are outlined in this MOA. 1 The term "Portability" shall mean a Voucher recipient's right to move from one PHA's jurisdiction to another PHA's jurisdiction within the United States and associated territories. K. The term "quality Control Inspection" shall mean any one of the random sample inspections performed by the Host PHA upon request by the Issuing PHA pursuant to Section III (D)(3)(e) to ensure compliance with HUD HOS standards. L. The term "Voucher(s)" shall mean a HUD Housing Choice Voucher City Council 5-5 5/4/2021 EXHIBIT 1 AGREEMENT The parties to this MOA hereby find and declare that the Above Recitals and Definitions of Terms are true and correct, and Incorporated herein by this reference. In consideration Of the mutual advantages to be derived from this MOA, the PHA& entering into this MOA agree f0 the following provisions: I. InterJurisdictlongi Program Admrni fat(on A. With the exception of portability and mobility between the Santa Ana and Ga rden Grove PHAs, the Parties hereby authorize each other t0 administer the Housing Choice Voucher (HCV) Program within the Host PHA's jurisdictional boundaries, subject to the terms of this MOA. B. The Parties shall cooperate with one another to the maximum extent possible including the sharing and exchanging of the information necessary for the effective implementation of this MOA. C. The Parties agree that the flat fees Included In the Fee Schedule found in Attachment I, incorporated herein by reference, are reasonable for the performance of services required- D. Pursuant to this MOA, the Issuing PHA shall retain 100% of its administrative fees under the Housing Choice Voucher (HGV) Program. No administrative fee shall beowedto the Host PHA whenever afamily leases a unit within the Host PHA's jurisdiction. II, PHA AdmmistraBve Plans_ Gari,f�y The Parties recognize that their respective Administrative Plans may not be Identical in all respects and therefore, the Parties agree that, except as set forth in this MOA, the Administrative Plan of the Issuing PHA shall govern administration of a Voucher issued by that PHA, regardless of the PHA Jurisdiction in which it is used. Exceptions to this general rule are found in the Sections describing Payment Standards, Utility Allowances, Rent Reasonableness Standards, and Housing Quality Standards, as referenced in Section 111, Paragraphs B., C„ and D, respectively, and found below. III. Rules Regarding Payont $t?�I /tjlfty Allowances. Rent Reasonableness Standards. and Hou§trip Qt�allty Standards (HQSt A. General Provisions It is hereby agreed that whenever a Voucher Issued by an Issuing PHA is to be used in another PHA's jurisdiction, the standards of the Host PHA's Payment Standards, Utility Allowances, Rent Reasonableness Standards, and Housing Quality Standards will apply. Documentation completed by the Host PHA will verify that standards have been met and comply with HUD requirements. Failure of the Host PHA to verify that the standards stated above have met and comply with HUD requirements may result in the Host PHA's termination from the MOA. If the Host PHA does not cure the breach within 30 days, the HOST PHA will not be entitled to payment of inspection fees for the standards not met. Perry in breach shall be liable for any claims arising from this breach. City Council 5-6 5/4/2021 EXHIBIT 1 B. Payment Standards and Utility Allowances The PHAs entering into this MCA shall adopt Payment Standards and Utility Allowances in compliance with 24 CFR Parts 082.503 and 082.517 respectively. C. Rent Reasonableness Standards A Host PHA shall be required to provide a Rent Reasonableness Certification ("RRC") to the Issuing PHA at the time the HOS Inspection request is returned. The Host PHA, in issuing such information, certifies that it has conducted a diligent analysis of prevailing rents in their jurisdiction By accepting the RRC, the Issuing PHA is not responsible and shall not be held liable for any errors or omissions on the part of the Host PHA. The Host PHA agrees to assurne any and all liability for any errors or omissions on the part of the Host PHA as it relates to this Paragraph III, Section C. D. Housing Quality Standards (HQS) Inspections 1. PHAs entering Into this MCA shall maintain HOS equal to or exceeding those required by H U D . 2. When the Host PHA uses standards that exceed or are more stringent than the minimum standards required by HUD, such standards shall apply for all housing inspections performed by the Host PHA pursuant to this MCA. 3. The Host PHA is responsible for the completion of HOS inspection requests from an Issuing PHA. This includes a. Initial Inspections In order to assist an eligible family expeditiously, upon receipt of the Inspection request from an Issuing PHA, the Host PHA will complete the HOS inspection, including all related documentation, within fifteen (15) Calendar days of the date lhatthe Host PHA confirms with the owner that the unit is ready for inspection. The Host PHA will bill the Issuing PHA a fee for this service, as per the agreement detailed in Exhibit I of this MCA entitled Fee Schedule. In. Annual Inspections Requests for an annual HOS Inspection to the Host PHA will be completed within sixty (60) calendar days of the date the request was received. The Host PHA will be responsible for the scheduling and performance of an annual HOS inspection request. The Host PHA will bill the Issuing PHA a fee for this service. as per the agreement detailed in Attachment I of this MCA entitled Fee Schedule. c. Special Inspections Upon receipt of a request from the Issuing PHA for a special HOS Inspection to address non- life threatening matters the Host PHA will schedule and complete the special inspection within fifteen (15) calendar days of the date that the Host PHA has confirmed receipt of 111e request. For file -threatening emergencies, the PHAs will work together to inspect as quickly as feasible. The Issuing PHA may request that one of their staff be present at these special inspections. The Host PHA will bill the Issuing PHA a too for this service, as per the agreement detailed in Exhibit I of this MCA entitled Fee Schedule. d. Suspected Fraud Inspections The Issuing PHA, after written notification to the Host PHA, will be permitted to conduct such inspections City Council 5-7 5/4/2021 EXHIBIT 1 as deemed necessary In accordance with its own established policies and procedures. e. Quality Control Inspections and Monitoring To ensure compliance with HUD HOS standards, each Issuing PHA will select a random sample of inspections performed and "passed" by the Host PHA within the previous sixty (60) days. The Issuing PHA will then submit a request to the Host PHA for performance of quality control inspection of the sample. The Host PHA will complete the monitoring no more than thirty (30) days from the date of the Issuing PHA's request. For assisted units in the Host PHA's jurisdiction, the quantity of quality controf inspections to he performed bythe Host PHA are as follows: 5 inspections for 100 assisted units, plus 1 for each additional 25 units 10 inspections for 200 assiatad units, plus 1 for each additional 25 units • 15 inspections for 300 assisted units 1 additional inspection for every additional 100 units above 300 The Host PHA will bill the Issuing PHA a fee for this service, as per the agreement detailed in Exhibit I of this MOA entitled Fee Schedule. f. Special Programs Inspections With the mutual consent of participating agencies, the provisions of this Mobility Agreement will also apply to specialized housing programs including, but not limited to Veterans Affairs Supportive Housing and Housing Opportunities for Persons with AIDS. g. The Host PHA shall indemnify, defend with counsel appmvad In writing by Issuing PHA, and hold Issuing Pl IA, its elected and appointed officials, officers, employees, agents and those special districts and agencies which Issuing PHA's governing body ("Indemnitees") harmless from any claims, demands or liability of any kind or nature, including but not limited to personal injury or property damage, arising from or related to the services, products or other performance provided by Host PHA pursuant to this Section 111.D. If judgment is entered against Host PHA and Issuing PHA by a court of competent jurisdiction because of the concurrent active negligence of Issuing PHA or its Indemnitees, Host PHA and Issuing PHA agree that liability will be apportioned as determined by the Court. Neither party shall request a jury apportionment. b. The Issuing PHA is not responsible and shall not be held liable for any errors or omissions on the part of the Host PHA. The Host PHA agrees to assume any and all liability for any errors or omissions on the part of the Host PHA as it relates to this Paragraph III, Section D. IV. Exchange of RecorQs and Ile cuments A. In order to ensure timely transactions between the PHAs entering into this MOA, the PARTIES will utilize a mutually agreed upon file sharing and storage system to electronically deliver relevant information and documentation required to Carry out the operations outlined in this MOA. Delivery will occur between the PHAs entering into this Agreement not less than once per week, as necessary, and as agreed uporl. More frequent delivery service may occur upon arrangement by all PHAs entering into this MOA City Council 5-8 5/4/2021 EXHIBIT 1 B. The Cost of the aforementioned file sharing and storage system will not exceed$12,000/year. Each PARTY will host the system for one year on a rotating basis. On a yaady, rotating basis (effective January 1 of each year and ending December 31 of that year), the full cost of the system will be paid by the participating PHA next in rotation ("hosting PHA'). C. In the event that alternative technology or resources become avallable that Is more cost-effective or efficient than the existing servlcs In exchanging recnrds and documents, the use of the existing service may be modified, through a written amendment by mutual agreement of the PHAs. V. Performance The PHAs entering into this MOA will retain sufficient resources to meet the anticipated workload that rnay be generated as a result of this MOA. Should an unanticlpated event or emergency occur that has an impact upon the Host PHNs ability to complete an inspection within the performance criteria set forth In this MOA, the Host PHA will notify the Issuing PHA. The Issuing PHA will detormine which of the following options is to be taken: (1) Performing the inspection themselves, or; (2) Extending the timeframe that the Host PHA has to complete the inspection, based upon a mutually agreeable period by each respective PHA. VI. A-MMmM LimlM(ons, This MOA is Intended solely for the purpose of administering the Housing Choice Voucher (HCV) Program, and no other programs administered by the PHA6 entering into this MCA. This MOA will not conflict with, nor prejudice, any federal regulations governing Portabllity procedures under the Housing Choice Voucher (HCV) Program as they relate to any other PHAs who are not a party to this MOA. 1 on an annual basis, the Parties have the option of exchanging the administration of an agreed -upon number of Vouchers administered by any other PHAIParty with the appropriate Issuing PHA. It is emphasized that this yearly exchange of fileslassisted tenants is optional, and dependent upon amutual agreement between the respective Parties. If agreed upon, such yearly exchanges will occur when mutually convenient and shall represent a one -for -one exchange where feasible. PHAs will also ensure the exchange of information is granted in a uniform and complete fashion, including, but not limited to, owner tax identification of any such files exchanged. The Parties agree to maintain the exchanged files pursuant to HUD issued regulations and policy guidelines. Vill. Terming io!L2f PartiS_igPAJgn A It is hereby agreed that a PHA may terminate its participation in this MOA upon a ninety (90) calendar day written nonce to all the Parties. The termination of participation in this MCA by any PHA shall not result in the termination of the MOA in its entirety. The MOA's term shall continuo among the remaining Parties. City Council 5-9 5/4/2021 EXHIBIT 1 8. At the date of termination, the PHA will thereafter be subject to HUD Portability Procedures. The terminating PHA shall implement the HUD Portability Procedures for such Vouchers, and within a reasonable time, not to exceed ninety (90) calendar days after notification to the other PHAs of thelntent to terminate participation. IX. Term of Agreement Unless terminated as speclfied in Section Vill Paragraph A, this MCA is effective through April 30, 2022.. City Council 5 — 10 5/4/2021 EXHIBIT 1 NOW THEREFORE, as the governing board of each of the PHAe has duly authorized, and In wlmese of the foregoing, the PHAa hereby execute this MOA. AGREEMENT INTERJURISDICTIONAL ADMINISTRATION Of Housing Choice Vouchar (HCV) Program ORANGE COUNTY HOUSING AUTHORITY Concur: Jul SRWAI, Executive Olrector Date r� t/ Approved as to Form: Office of the County Counsel Orange County, California � liOepury C/ Date t2-�a *-7 Pose s of 12 City Council 5 — 11 5/4/2021 EXHIBIT 1 AGREEMENT INTERJUSRISDICTIONAL ADMINISTRATION OF HOUSING CHOICE VOUCHER (HCD) PROGRAM ANAHEIM HOUSING AUTHORITY Concur: Deputy City Attorney Attest: BY: City Clerk 1;/5A7 Date S1 11 /, Date ./t4 7 Date City Council 5 — 12 5/4/2021 Page 9 of 12 EXHIBIT 1 AGREEMENT INTERJURISDICTIONAL ADMINISTRATION Of Housing Choice Voucher (HCV) Program GARDEN GROVE HOUSING AUTHORITY Concur a . Director Approved as to Form: `C rc tt rney ATTEST' ATTEST:Glfii� TERESA POMEROY, CMC - City Clerk City of Garden Grove DATED: page 1 o or 12 D,Ole 5- Date ---..-. City Council 5 — 13 5/4/2021 EXHIBIT 1 N-2017-104 445164 . 19," AGREEMENT INTERJURISDICTIONAL ADMINISTRATION Of Housing Choice Voucher (HCV) Program SANTAANA HOUSING AUTHORITY Cynthia K,6rtz, intefi:,. City Manager z u�/ CLERK OF THE COUNCIL C+y *,P Sointq Ana Pape 11 of 12 RORERT C. CORTE(_ Deputy City Manager s o17 Date City Council 5 — 14 5/4/2021 EXHIBIT 1 AGREEMENT INTERJURISDICTIONAL ADMINISTRATION Of Housing Choice Voucher (HCV) Program ATTACHMENT FEE SCHEDULE The fees set forth under this schedule regard specific activities covered under this Agreement. Thefollowing fees may be amended at any time by mutual agreement of all participating PHAs. Such agreement may he evidenced by the written concurrence of the Executive Directors of the PHAs entering into this Agreement. The Host PHA shall be reimbursed the sum of one hundred and fifty dollars ($150.00) for each inspection requested by the Issuing PHA, including one (1) follow-up re -Inspection, d needed. 2. In the event an additional re -inspection is required, the Host PHA shall be reimbursed the sum of seventy-five dollars ($75 00) for each such additional re -inspection requested by the Issuing PHA. 3. The Host PHA may be further reimbursed for any additional expenses as may be mutually agreed upon between PHAs for services requested by the Issuing PHA that may not be covered by these inspections. 4. Payment for the file sharing and storage system not exceed $12,0001year will be paid by the participating PHA next inrotation. Expenses for the services above will be billed to the Issuing PHA and shall be paid to the Host PHA within 45 days of the datebllled. Page 12 of 12 City Council 5 — 15 5/4/2021 EXHIBIT 2 First Amendment to the Memorandum of Agreement for Interjurisdictional Mobility This First Amendment (Amendment), dated as of 2020, is made to the Memorandum of Agreement for Interjurisdictional Mobility (Agreement) previously executed by and among the Public Housing Agencies (PHAs) of the Cities of Anaheim, Garden Grove, Santa Ana, (Cities) and the County of Orange (County), which are sometimes individually referred to as "Party' or collectively as "Parties Recitals The Parties entered into this Agreement in 2017 was to foster interjurisdictional mobility in the administration of the Department of Housing and Urban Development (HUD) Housing Choice Voucher (HCV) Program. The purpose of this Amendment is to address the roles and responsibilities of the issuing PHA and the host PHA when using Project Based Vouchers (PBV) for Housing Choice Voucher (HCV) recipients and/or for Special Purpose Voucher (SPV) recipients in the host PHA's jurisdiction, which may have different requirements than the HCV Program. The Parties, recognizing the potentially different requirements for the PBV and SPV recipients in the host PHA's jurisdiction are desirous to amend the 2017 Agreement. In consideration of the mutual obligations set forth herein, Parties agree as follows: 1. The Agreement is amended to add the following terms in the form of an attachment to the Agreement, to be named as follows: "ATTACHMENT II ADDITIONAL TERMS FOR ADMINISTRATION OF PROJECT BASED VOUCHERS (PBV) FOR HOUSING CHOICE VOUCHER (HCV) RECIPIENTS AND/OR FOR SPECIAL PURPOSE VOUCHER (SPV) RECIPIENTS IN THE HOST PHA'S JURISDICTION" (Attachment II). Attachment II is attached to this amendment and incorporated herein by reference. NOW THEREFORE, as the governing board of each of the PHAs has duly authorized, and in witness of the foregoing, the PHAs hereby execute this Amendment: City Council 5 — 16 5/4 of e EXHIBIT 2 ORANGE COUNTY HOUSING AUTHORITY Julia Bidwell, executive Director Date, APPROVED AS TO FORM OFFICE OF THE COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA Deputy City Council 5 — 17 514 "e EXHIBIT 2 ANAHEIM HOUSING AUTHORITY Director Date: Approved as to Form: Assistant City Attorney Dato ATTEST: 0 City Clerk City Council 5 — 18 514 "e EXHIBIT 2 Approved as to Four] City Attorney Date ATTEST: By GARDEN GROVE HOUSING AUTHORITY , Director Dale City Council 5 — 19 514 "e EXHIBIT 2 Approved as to Form: �:%"� �r�J for city �tt me Date \ ATTEST: 0 SANTA ANA HOUSING AUTHORITY Director Date: City Council 5 — 20 514 "e EXHIBIT 2 ATTACHMENT II ADDITIONAL TERMS FOR ADMINISTRATION OF PROJECT BASED VOUCHERS (PBV) FOR HOUSING CHOICE VOUCHER (HCV) RECIPIENTS AND/OR FOR SPECIAL PURPOSE VOUCHER (SPV) RECIPIENTS IN THE HOST PHKS JURISDICTION 1. Definition of Terms: "Agreement to enter into Housing Assistance Program contract (AHAP)": The Agreement is a written contract between the PHA and the owner in the form prescribed by HUD. The Agreement defines requirements for development of housing to be assisted. When development is completed by the owner in accordance with the Agreement, the PHA enters into a HAP contract with the owner. "Environmental review": The federally required review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and related applicable federal laws and authorities in accordance with 24 CFR 58.5 and 58.6. "Family Unification Program (FUP)": FUP is a SPV program where vouchers are made available to families for whom the lack of adequate housing is a primary factor in the imminent placement of the family's child, or children, in out-of-horne care, or in the delay of discharge of the child, or children, to the family from out -of -home care. FUP vouchers are also made available to youths ages 18 to 25 who left foster care at age 16 or older who lack adequate housing. The FUP is generally administered in partnership with the Social Services Agency (SSA). "Housing Assistance Program (HAP) Contract": The housing assistance payments contract between the PHA and the owner. "Non -Elderly Disabled (NED)": Non -Elderly Disabled is a SPV program that is designed to provide assisted housing to families whose head, spouse, or co-head is disabled and under 62 as of the date of signing the HAP contract. NED Category 2 vouchers are specifically for non - elderly people with disabilities transitioning from nursing homes or other health facilities into the community. "Responsible entity (RE)"": The unit of general local government within which the project is located that exercises land use responsibility for purposes of determining to whom the required Environmental Review should be submitted. "Special Purpose Vouchers (SPV)": Special Purpose Vouchers are specifically provided for by Congress in line item appropriations which distinguish them from regular vouchers. Examples of SPV are Veteran Affairs Supportive Housing (VASH), Family Unification Program (FUP), Mainstream Vouchers, and Non -Elderly Disabled. City Council 5 — 21 5/4 of e EXHIBIT 2 "Veteran Affairs Supportive Housing (VASH)": VASH is a SPV program that combines HCV rental assistance for homeless veterans with case management and clinical services provided by the Department of Veterans Affairs at its medical centers and in the community. 2. Environmental Review and Subsidy Layering Review If the host City has funding or project -based vouchers in a project that triggers the need for an Environmental Review, the host City shall be responsible for the completion of an Environmental Review as outlined in 24 CFR part 50 and 58 for submission to the Responsible Entity(ies). The issuing PHA shall collaborate with and provide general guidance as necessary to the host City. The host City shall provide proof of submission, a copy of the Environmental Review and copy of the HUD form 7015.16 — Authority to Use Grant Funds, to the issuing PI IA within 3 business days of its submission to the Responsible Fntity(ies) and upon receipt of approval. Ir the host City does not have funding in a project, or if the host CiLy's funding in a project does not trigger an Environmental Review, the Completion of an Environmental review shall be done by the PHA whose funding triggered the Environmental Review requirement. In the event a subsidy layering review (SLR) is necessary in accordance with the requirements of the Housing and Economic Recovery Act of 2008 (HERA) or to satisfy the requirements of section 102 (d) of the Department of Housing and Urban Development Reform Act of 1989 (HUD Reform Act) and is perfnrmed by the Housing Credit Agency (HCA), the PHA with Project Rased Vnurhers in the prnject shall be responsible for the SLR requirements. If the host PHA has vouchers in the project, the review responsibility shall default to the host PHA. The issuing PHA shall collaborate with and provide general guidance as necessary to the host PHA. The host PHA, if responsible for the SLR, shall provide proof of SLR submission, along with a copy of the SLR, to issuing PHA within 3 business days of its submission to the Responsible Entity(ies). The allocation of responsibilities in the above paragraphs may be subordinate to a negotiated agreement made outside of this document. AHAP/HAP Developer shall execute a separate AHAP as required, and HAP, for each participating PHA when two or more PHAs agree to issue project based vouchers in an affordable housing project in a host PHAs jurisdiction. 4. Inspection City Council 5 — 22 5/4 of e EXHIBIT 2 Pre -HAP contract inspections of the completed contract units shall be completed by the host PHA in adherence to 24 CFR 983.103, the executed AHAP, when applicable, and the MCA (2017 Agreement). The host PHA must inform the issuing PHA within seven (7) calendar days whether the work has been completed in accordance with regulation, the AHAP and/or MOA. In the event the host PHA is unable to meet the established deadline, the host PHA will allow the issuing PHA to inspect the completed contract units in order to limit delays in development. If the host PHA determines that work deficiencies exist, the host PHA shall notify the developer of the affordable housing project within seven (7) calendar days of the extent of the deficiencies and the requirements and procedures for correction of the contract units. Upon receipt of an inspection request for a turnover inspection or a Biennial inspection for contract units from an issuing PHA, the host PHA will complete the inspection and all related documentation, per 24 CFR 983A03 and FR Notice 6/25/14, within seven (7) calendar days of the date of the issuing PHA's request. S. Initial Rent Estimated initial rent to owner shall be established within a period consistent with the MCA (2017 agreement) by the host PHA. The initial contract rents for each unit shall not exceed the amount authorized per 24 CFR 983.301. The standards of the host PHA's Payment Standards, Utility Allowances, Rent Reasonableness Standards, and HQS will apply. The Parties agree that the project developer shall maintain separate and distinct AHAP and HAP agreements for each participating PHA. 6. Tenant Selection The Parties agree that the awarded number of project -based vouchers from the awarding/issuing PHA is directly connected to a number of units within the project. To that end, the awarded project based vouchers must remain available to the issuing PHA for use upon tenant turnover. Tenant selection determined by issuine PHA criteria. 7. Post Move in Activities MCA (2017 agreement) rules regarding Payment Standards, Utility Allowances, Rent Reasonableness Standards, and Housing Quality Standards (HQS) shall remain unchanged when applied Lo Lhe use of ProjecL Based Vouchers for Housing Choice Voucher recipients and/or for Special Purpose program voucher recipients in the host PHA's jurisdiction. City Council 5 — 23 5/4 of e EXHIBIT 2 The issuing PHA shall administer any additional post move in activities. City Council 5 — 24 514 "e